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Lacey closes final 2026 budget hearing with $225M plan, reserves to bridge shortfall
Summary
City staff presented a final 2026 budget just under $225 million, citing lower capital spending and a general fund of about $74.4 million; council closed the hearing after staff explained three small adjustments funded from reserves and described a $2.99 million reserve balance.
City finance staff presented the final proposed 2026 budget of just under $225,000,000 and closed the public hearing Dec. 2.
In the presentation, Troy said the overall decrease from the current year is driven largely by lower capital spending. He reported the general fund proposal at about $74,400,000, a roughly $14.5 million reduction primarily tied to lower capital work. Troy identified three net changes since the prior draft that increased the proposal by a combined $331,000: an assessed‑valuation update that reduced revenue by about $3,400, expansion of the Olympic Health and Recovery Services mobile outreach team (adding one staff for about $96,000), and a higher annual debt payment on a $10,000,000 Public Works Board loan (about $70,000 annually). He said the budget gap would be covered, in part, by using the city’s budget policy reserves, which stood at about $2,991,304.
No public testimony was offered during the hearing on the budget, and council members thanked staff for the public process and the months of work that led to the final numbers. The mayor closed the final 2026 budget hearing at 06:12 p.m. with the record noted for the city reserve level and the staff commitments to monitor and report further as needed.
Next procedural steps: council has closed the public hearing and will consider any remaining ordinance or adoption motions as required by the city’s budget schedule.
