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Buckley staff warn of roughly $1.1M biennial shortfall; council weighs tax and cost options
Summary
City staff presented a 2027–2032 baseline forecast showing a roughly $1.1 million deficit across the upcoming two‑year biennial budget and outlined options including modest business fees, a B&O tax, voter‑approved sales tax measures and a levy‑lid lift. Council asked for modeled cut scenarios before asking voters for new revenue.
Staff presented a baseline 2027–2032 general fund forecast at the Buckley City Council study session on July 7, saying the two‑year biennium faces about a $1.1 million shortfall under current assumptions.
"The 2 the 2 years, 1,100,000 for the 2 year biennial budget coming up as a deficit," said the finance staff presenter (Staff member, S6). He also said the baseline reaches roughly a $914,000 annual shortfall by 2032 under conservative revenue assumptions.
Why it matters: the council must adopt a balanced budget, and most of Buckley’s general fund revenue is constrained by a 1% statutory limit on annual levy increases. Staff modeled property tax growth as the 1% statutory increase plus modest new‑construction valuation growth, modest sales‑tax growth and differentiated utility assumptions; on the expenditure side, staff assumed a 4.5% average annual salary increase and 6% annual medical‑benefit growth.
What staff proposed: the presentation laid out revenue and expenditure levers the council can consider. On the revenue side, staff described councilmanic options such as restoring a business‑and‑occupation (B&O) gross‑receipts tax (a prior local B&O was repealed in 2006 and could generate an estimated $180,000–$380,000 at a 0.2% rate), modest increases to the flat $90 business license fee (estimated $9K per $10 increase), and voter‑approved sales taxes. The staff also outlined levy‑lid‑lift parameters and estimated roughly $130,000–$140,000 in additional revenue per 10¢ of levy lift.
Council reaction: several council members pressed staff for more specificity on cuts before pursuing new revenue. "What would those options look like? Like 2%, 5%, 10%?" asked one council member (Committee member, S1), requesting tables showing both percentage and dollar impacts so the council can judge which choices are meaningful.
Staff emphasized the need for department input: departmental budget submissions are due in August, internal reviews will follow, and committee meetings are planned in September with a target adoption in December. Staff also noted available one‑time resources such as a cumulative reserve (balance slightly above $5 million), which requires a resolution and a two‑thirds council majority for use, and a more restrictive contingency reserve governed by statute.
What’s next: staff will provide modeled expenditure‑reduction scenarios and department‑level options after the kickoff with departments; the council may consider a mix of one‑time solutions, restructured fees, targeted voter measures or a levy‑lid lift depending on the department analyses and public feedback.
Sources: Presentation and Q&A at the Buckley City Council study session, July 7, 2026. All direct quotes are attributed to meeting speakers listed in the council packet and transcript.
