Pasco council adopts budget amendment to adjust 2025–26 biennial operating plan

The Pasco City Council voted to adopt Ordinance 4807 on a motion by Mayor Pro Tem Grimm, approving supplemental appropriations to the 2025–2026 biennial operating budget.

Interim Director Garcia told the council the amendment increases projected citywide revenues by about $130 million — driven largely by energy tax credits, investment income and a recent utility tax rate change — and increases expenses by roughly $80,000,000 across city funds. Garcia said the reuse facility rate-model changes were a major driver, affecting both revenues and expenses for the utilities fund.

Council members pressed staff on the size of the general fund shortfall for the biennium. Councilmember Perales said the general fund deficit is “roughly 10 and a half million dollars” and urged the council to start hard conversations about revenue and possible spending cuts. Garcia and staff answered questions about fund-level carryover, capital debt restrictions and items that had already been approved earlier in the year.

With no speakers during the public hearing portion on the budget, Mayor Pro Tem Grimm moved adoption; the motion was seconded and passed on roll call. The ordinance authorizes the city manager to implement the approved supplemental appropriations and publication by summary.

Council members said they appreciated staff briefing sessions offering line-by-line explanations ahead of the vote. Several council members signaled a need for more work on structural revenue options and noted this amendment does not eliminate the need for further budget choices in 2026.

Next steps: the ordinance will be published by summary and the city will proceed with the amended appropriations as described by staff.