Washington council approves FY2026 budget, phases in final salary-study increase

The Washington City Council approved the city’s FY2026 budget on Sept. 22, endorsing the second phase of the McGrath salary study and adopting conservative revenue assumptions while noting stronger-than-expected FY2025 closeout figures.

City staff said the FY2026 proposal includes phase two — the final phase — of a city employee pay study (McGrath). Staff also presented revenue projections that assume a 1.5% increase in sales-tax revenue and a 5% increase in use tax for the budget year; staff noted that the FY2025 closeout outperformed earlier estimates, rising to 3.1% in sales-tax receipts compared with the 2% figure used in last year’s budget.

The council conducted a public hearing on the budget (no members of the public asked questions during the hearing) and then moved to advance and adopt the ordinance approving the FY2026 budget. During the meeting staff thanked department heads and highlighted funds for the general fund, local use tax fund, water, wastewater, solid waste, capital improvements and transportation sales tax, as well as projected marijuana-tax revenue.

Council approved the ordinance on the second reading and roll-call vote (ordinance referenced as '3 c' in the packet). Council members complimented Tammy and her staff for the preparation of the budget materials. The city administrator said the budget and the ongoing capital program are tied to a series of grant-funded projects and infrastructure work coming online in the next one to two years.