Mount Rainier council splits proposed Gateway funding as part of first reading of FY2026 budget

The City of Mount Rainier’s mayor and council held the first reading of the proposed FY2026 budget and tax-rate ordinance at a virtual meeting on April 1, 2025, and spent substantial time resolving how to fund the Gateway Community Development Corporation.

Councilmember Valerie Woodall read the ordinance materials and led a discussion of a requested contribution to the Gateway CDC. Woodall said the Gateway organization has helped bring outside funding to the corridor and noted recent grant activity: “they were awarded $400,000 to help Joe’s Movement … finish their stormwater work,” she said, arguing the nonprofit brings resources into Mount Rainier.

City Manager Kamali and finance staff presented line-item changes made since the council’s March 22 review. Ron Wilson, staff presenter, said correcting an unemployment-insurance calculation saved about $20,000 and that adjustments to other line items (reducing city-sponsored meetings and trimming professional-services entries) produced additional savings. Wilson summarized the net effect as a small increase in contingency after the revisions.

Council debate centered on whether to approve a $30,000 amount for the Gateway CDC’s operations or to split that sum into two lines: $25,000 for Gateway CDC operations and $5,000 earmarked specifically for a Gateway Arts District management plan. Valerie Woodall urged fidelity to an existing memorandum of understanding that she described as allowing $0–$25,000 for the management plan and asked the council to ensure Mount Rainier’s contributions and sponsorship were visible to the public.

Several councilmembers said a separate $5,000 line would be a modest, administrative way to ensure funds were available for district management without expanding the budget’s bottom line. Councilmember Luke suggested the split would not change the total budget and could be adjusted administratively; Danielle Carr and Jared supported the compromise. The mayor took a roll-call-style check and recorded broad agreement to split the line and have staff create an administratively labeled subline (identified in discussion as 5558A) for the management plan.

The council also reviewed the ordinance’s tax-rate proposals, which were read aloud as part of the packet: a blended constant-yield reference of 0.76 per $100 of assessed valuation and proposed rates including 75¢ per $100 for single-family and townhouse residential property, 86¢ per $100 for multifamily residential, 79¢ per $100 for commercial property, $2.50 per $100 for vacant developed property, 99¢ per $100 for business personal property, and $2.75 per $100 for operating railroad and utility property.

No final budget vote was taken at the meeting. City Manager Kamali confirmed an additional budget review meeting would be held the following week and that the council is scheduled to vote on the ordinance on April 15, 2025.

What’s next: staff will incorporate the administrative split (25/5) into the packet for the next meeting; the council expects a final vote on the FY2026 budget and tax-rate ordinance at the April 15 meeting.