Shelton council adopts 2026 budget and property tax, approves code changes and rate adjustments

Shelton City Council adopted the city’s 2026 budget and set the 2026 ad valorem property tax at its Nov. 18 meeting, while approving an update to the municipal code for special events and signing off on a waste-hauler rate increase.

The council voted to adopt Ordinance 2035-1025, which formalizes the 2026 budget with total expenditures unchanged from the proposal at $37,528,770. Council also adopted Ordinance 2034-1025, allowing the city to increase property tax collections by the 1% limit tied to the state implicit price deflator. Finance Director Terry Schnitzer said the city’s favorable revenue and lower-than-budgeted expenditures have raised the general reserve: “That brings our reserve fund balance up to about $4.2 million,” he said.

The council approved Ordinance 2036-1025 to amend Chapter 5.46 of the Shelton Municipal Code governing special events and use of buildings. Interim community development director Jason Doss said the change creates administrative guardrails so staff can evaluate events such as indoor markets and seasonal attractions while addressing fire- and building-related life-safety requirements.

On solid waste, the council approved Resolution 1409-1025 authorizing Mason County Garbage Company to implement a pass-through rate increase effective Jan. 1, 2026. Company representative Chad White told the council the change stems from a state carbon fee and CPI-driven contract adjustments, estimating the city-level impact at roughly $7,000 and about $0.12 per resident per month.

Several other measures were moved to the Dec. 2 action agenda for final action after first reading or briefing. Those items include a public utility easement request (Resolution 1406-1025), a stormwater A&E consultant pool work order for plan updates (Resolution 1414-1025), the 2026 master fee schedule updates (Resolution 1408-1025), the city’s 2026 legislative agenda (Resolution 1410-1025), a proposed municipal court judge contract confirmation (Resolution 1411-1025) and a proposed two-year public defense contract (Resolution 1412-1025).

Council members who spoke during budget and fees discussion asked whether recent revenue gains were linked to development and noted some of the savings are tied to unfilled positions. Staff said sales and business-and-occupation tax lines have outperformed earlier estimates, and vacancies have reduced expenditures while the city remains focused on refilling critical roles.

What’s next: the items forwarded to the Dec. 2 agenda will return for final council votes; the adopted ordinances and the approved garbage-rate resolution take effect per the dates specified in those documents.