Redmond finance committee advances six items to Nov. 18 consent agenda, including utility fee updates and 2026 property-tax ordinance

The Committee of the Whole — Finance, Administration and Communications advanced six items to the Nov. 18 consent agenda on Wednesday, Nov. 12, including updates to utility connection charges and an ordinance to set the 2026 property tax levy.

Haley Zurcher, the city’s financial planning manager, told the committee the city is proposing updates to one-time connection and capital facility charges that apply to new development. Zurcher said the city and its rate consultant, FCS Group, recommend using a single, consistent methodology across water, wastewater and stormwater that counts total system cost (including replacement and repair projects) divided by total system capacity. “It is best practice for these charges to be reviewed and updated every two years,” Zurcher said, adding that Redmond’s last update was 2018.

The proposed change shifts the cost basis for some charges, producing mostly increases because of a larger, updated capital improvement program (CIP) cost basis; Zurcher said some larger water-meter charges and downtown stormwater charges fall, due to methodology and denominator changes. She said the analysis was presented to 1 Redmond business stakeholders on Oct. 23 and that most business questions were logistical; she also noted developers connecting to Redmond’s system may also pay Cascade Water Alliance regional charges.

On the budget side, Zurcher described 2025–26 budget adjustment No. 4 as a cleanup step recognizing revenues for previously approved projects and correcting account allocations. The adjustment also creates a new Business Technology Investment Program (BTIP) capital fund to account for capitalized technology assets more clearly; staff said the change will be effective Jan. 2025 so comparative data will be ready for the next biennial budget.

Deputy Director Haritha Nara presented the ordinance establishing the 2026 property tax levy and requested it be placed on the Nov. 18 consent agenda. Citing the city’s 2025–26 budget decision to assume a 1% annual increase, Nara said the ordinance implements that 1% increase and recognizes new revenue from construction and assessed-value growth. Using preliminary King County numbers, she estimated a levy rate of $0.82 per $1,000 of assessed value and a total 2026 levy of roughly $34.5 million — an increase of approximately $1.2 million from 2025. Nara said the levy splits roughly as follows: about $27.6 million to the general fund, $5.3 million to the public-safety levy (fire and police), about $759,000 to the parks levy and about $825,000 to parks maintenance and operations. She noted final King County assessed-value figures were still pending and will be submitted by the Dec. 1 deadline required by state law (RCW 84.55.012).

Council members asked whether the committee could decline the 1% increase. Nara confirmed that the council could opt not to take that 1% step and instead rely on growth from new construction, but reminded the committee the adopted biennial budget assumes the 1% and that omitting it could leave a budget shortfall.

David Amble, city real-estate staff, presented several lease items bundled for consent. He described three wireless-telecommunication lease amendments: an AT&T equipment/antenna modification at a Novelty Hill water tank, a Crown Castle ground-station expansion at Fire Station 14, and a 10-year renewal option for Verizon at Education Hill. Amble also presented a proposed lease amendment with Northwest Restaurants Inc. (the KFC franchisee at a Redmond Way site) that would add initial multi-year options and a modest rent escalation combined with a profit-sharing arrangement intended to help fund a required remodel to keep the franchise in operation. Amble said the city’s current arrangement includes a profit-share component (6% of sales after rent) that supplements rent revenue.

Finally, Amble summarized a small WSDOT “trail lease” (operation and maintenance agreement) for a short segment of trail connecting SR 202 to the Redmond Central Connector/Eastrail. He said Sound Transit built the trail segment, the city has operated it for months, and the signed agreement and the mayor’s signature are needed to formalize operations.

No formal votes were taken at the committee meeting; each item was slated for the Nov. 18 consent agenda with no objections raised during the Nov. 12 committee discussion. Items that move forward on Nov. 18 will be subject to the council’s consent process and, for the property levy ordinance, to King County’s submission deadline.

Next steps: all six items were placed on the Nov. 18 consent agenda for City Council consideration; staff will finalize King County numbers for the levy and return any requested follow-up information to council members prior to that meeting.