Kenmore council directs staff to prepare 2026 levy lid lift to shore up budget

Kenmore’s City Council voted 5–2 on a direction to staff to prepare a November 2026 levy lid lift that would raise 36 cents per $1,000 of assessed value for six years and be permanent if approved by voters.

City Manager Terry Kilgore opened the study session by framing the fiscal challenge: Kenmore’s updated financial forecast shows the city would begin drawing on reserves in 2028–29 without new revenue. “This evening we are continuing our discussion of a potential revenue measure … needed to address the structural deficit in our budget,” Kilgore said, noting that if the council gives direction staff could return as early as June 8 but no later than June 29 to meet King County’s August 4 filing deadline for a November 2026 ballot.

Administrative Services Director Melinda Morurell walked council through options and scenarios. She said the city remains eligible for a 0.1 percent public‑safety sales tax previously modeled as a transportation tax, and presented three property‑tax levy scenarios: a 36¢ levy that makes currently one‑time special projects permanent and addresses the structural gap through roughly 2032; a 24¢ levy focused on…