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Tenino council adopts 2026 budget, approves interfund loan and transfers
Summary
The Tenino City Council unanimously adopted the fiscal-year 2026 budget and approved a $300,000 interfund loan and budget transfers to the quarry pool and street funds meant to correct year-end balances. Council also approved consent payroll and claims and discussed levy and audit items.
The Tenino City Council on Dec. 9 adopted the 2026 city budget and approved related financial adjustments intended to correct beginning- and ending-balance discrepancies.
Clerk/finance staff presented a replacement interfund loan request — Resolution 2025-08 — to move $300,000 from the sewer fund to the general fund to ensure the city's 12/31/2025 ending balances and 2026 beginning balances are accurate. The staff summary said a previously approved $500,000 interfund loan from 2024 was never used.
Council also approved an ordinance (referred in packet as Ordinance 937) transferring $25,000 from the general fund to the quarry pool fund and $150,000 to the city street fund to bring those fund balances to appropriate beginning-year amounts. Council members warned that apparent surpluses cited in budget summaries largely reflect sewer and water funds and are not discretionary for general spending.
During the work session and budget hearing, staff highlighted the overall revenue picture and flagged that the sewer and water funds account for the bulk of reported revenue increases; council members emphasized that those dedicated funds cannot be repurposed for general operations.
The council approved the consent calendar, which included payroll EFTs of $68,296.21 and claims checks totaling $28,070.12 (combined as read in the meeting), and the treasurer's report. Staff also reported the city's levy certification changed slightly after a correction and that the levy amount now reads $346,344.79.
Motion and votes: Council moved to accept the second reading and adopt Ordinance 09/2026, the fiscal-year 2026 budget; the motion passed unanimously. Resolution 2025-08 (interfund loan) and Ordinance 937 (budget transfers) were both moved, seconded and approved by voice vote.
What happens next: Staff said they will send updated documents, pursue needed grant extensions where applicable, and implement the adopted budget beginning Jan. 1, 2026. The council also agreed to opportunities for additional budget work sessions earlier in the cycle next year to solicit more council input.
