Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Forecast Utilities topic
No spam. Unsubscribe anytime.
City staff outline cautious revenue forecast, propose utility rate adjustments and development fee work
Summary
Finance, development services and utilities staff told council the revenue outlook is modest, cited cost pressures from inflation and wholesale utility costs, outlined potential fee adjustments and forecasted utility bill increases for 2027–28; staff flagged a TBD package as an optional funding source.
City finance, development-services and utilities staff presented a three-part briefing on June 23 that framed the upcoming 2027–28 budget around a cautious revenue forecast, development‑pipeline activity and multi‑year utility rate adjustments.
Chief Financial Officer John Risha said the city enters the biennium with stable reserves and relatively steady revenues but warned of persistent inflation and state legislative changes that complicate revenue projections. He described a slower rate of revenue growth and a conservative forecast that expects recovery in permit- and construction-driven revenues to materialize around 2029.
Ray Fleishman summarized the city’s budget survey (1,278 responses) and outreach plan and noted priority themes: public safety, transportation and infrastructure. Staff presented a potential optional transportation-benefit-district (TBD) package — shown as illustrative only — estimating that a one‑tenth‑of‑a‑percent sales‑tax TBD could generate about $66,000,000 over a 10‑year period and a vehicle‑fee option might yield about $2,000,000 per year.
Development Services reported a robust permit pipeline and an annual cost‑of‑service study to keep fees regionally competitive. Acting director Jake Hesselgeser said building valuation and tenant‑improvement activity are strong; staff will return with recommended 2027 fee adjustments (routine increases were described as likely up to historical inflation ranges, with an example of up to 9% illustrated for some fee categories).
Utilities staff warned that wholesale costs and capital needs are the primary rate drivers. Lucy Liu, director of utilities, and her team presented a multi‑year forecast that would raise typical monthly bills for single‑family customers by about $22 in 2027 and about $24 in 2028, and raise the typical multifamily bill by roughly $10.50 in 2027; the forecast also includes steps to expand bill‑assistance eligibility and a proposed 35% rebate for qualifying households under an expanded program.
Councilmembers used the Q&A to probe affordability protections, the proposed expansion of bill assistance to households up to 80% area median income, how indirect billing (multifamily) would be handled, and the sensitivity of revenue assumptions to national economic factors and recent state legislation.
What happens next: staff will return with a preliminary budget package in September, including recommended fee adjustments, a detailed TBD proposal only if council chooses to advance it, and rate recommendations informed by the cost‑of‑service work.
