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Issaquah council adopts mid‑biennium budget adjustments, rejects cut to housing implementation funding
Summary
The Issaquah City Council on Nov. 17 adopted amendments to the 2025–26 biennial budget (Ordinance No. 3125) by a 6–1 vote, endorsing one‑time transfers and program realignments intended to move the general fund toward the council’s 15% reserve target. An amendment to remove $150,000 for Eco Northwest housing‑strategy consulting failed 4–3.
Issaquah officials on Nov. 17 approved mid‑biennium changes to the city’s 2025–26 budget, moving a set of one‑time adjustments and reauthorizations intended to improve projected ending fund balances.
After Finance Director Kristen Garcia laid out updates and line‑by‑line changes, the council debated transfers, grant reauthorizations and several one‑time reductions the administration said would help move the general fund toward its 15% reserve policy. Key items included reallocation of ARPA funds, authorization of a $50,000 human services allocation, the removal of previously proposed employee leave payout amendments, and several one‑time reductions to transfers for IT, streets and turf replacement that staff said should not affect planned 2026 operations.
Councilmember discussion focused on sustainability and long‑term fiscal health. Several members urged a follow‑up long‑term financial planning exercise; Director Garcia said staff will pursue that work next year and committed to additional follow‑up on specific questions raised during the hearing.
The council considered an amendment to strip $150,000 proposed for Eco Northwest consultant work to implement parts of the city’s housing strategy. Council Member Chang moved the amendment, saying the city should cultivate in‑house capacity and postpone consultant spending amid tight finances. The motion was seconded by Council Member Martz and failed on a 3–4 vote.
With the amendment defeated, the council then voted to adopt Ordinance No. 3125, amending the 2025–26 budget; the motion passed 6–1. The council recorded that the mid‑biennium package increases the city’s projected reserve from the originally presented 7% toward an estimated 13% by the end of the biennium, based in part on an estimated $500,000 general‑fund underspend identified by staff.
The ordinance also included direction to reallocate some public‑safety and fleet costs into a newly created public‑safety sales tax fund (revenue from a sales tax measure that begins in 2026) and to move some Metroflex transit costs to the Transportation Benefit District fund for 2026, contingent on council funding approval.
The council did not approve any immediate new staffing for transit or housing implementation as part of the mid‑biennium action; staff said they will use existing resources to refine goals and bring proposals back next year if additional work is recommended.
The ordinance passed after extended council discussion and a public hearing that included earlier comments raising concerns about multimodal design and light‑rail integration for a separate I‑90 crossing study.
Next steps: staff will implement the budget ordinance changes and return with follow‑ups and the long‑term financial planning work recommended by council.
