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Burien finance staff warn of multiyear general-fund shortfall; sales-tax option could raise about $2.5M
Summary
Finance Director Casey Henley told council the general fund will operate on negative cash flow through the forecast period and could drop below reserve policy by 2028. Staff outlined options: cuts, another levy attempt, or adoption of House Bill 2015 local sales/use tax (estimated $2.5 million) tied to criminal-justice and crisis response uses.
Finance Director Casey Henley and Senior Finance Analyst Caitlin Graham presented the 2026–2032 general fund forecast and warned the council that the city will likely operate on negative cash flow in coming years and could fall below policy-required fund balances by 2028 unless corrective steps are taken.
Key figures and context presented by staff included: the city’s minimum reserve policy (~$7 million, defined as 20% of recurring general-fund revenues), designated capital reserves at $10 million, typical revenue growth assumptions near 3% annually (with property tax limited to about 1% annual growth), and major expense pressures from insurance, software, and the police contract. Henley said roughly 42% of the general fund is used for the police contract and 31% for personnel costs overall.
Staff outlined options for the council to consider: targeted budget cuts, attempting a future levy to restore structural balance, or adopting the authority under House Bill 2015 to impose a 0.1% local sales-and-use tax dedicated to criminal-justice and crisis-response services. Henley estimated that implementing the HB 2015 option could produce about $2.5 million in annual sales-tax revenue and noted that adopting the tax would enable the city to apply for designated grant programs tied to those revenues.
Henley said the city faces fiscal constraints through 2032 without action and recommended a combination of approaches be considered during an upcoming Feb. 2 budget work session. Council members asked staff to model multiple scenarios, including impacts of long lead times on any police-contract changes (an 18-month notice requirement was noted).
Quote: "By the end of 2027, we will be slightly above that, but we will be operating on a negative cash flow," Henley said, summarizing the forecast.
What happens next: Staff will present a deeper budget work session on Feb. 2, with modeling of cuts, levy options, and revenue alternatives for council direction.
