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Poulsbo staff outlines $37M to $31M fund balance drop, property tax mechanics for 2025'26 budget
Summary
Finance staff told the City Council the beginning fund balance drops from about $37 million in 2025 to roughly $31 million in 2026, driven mainly by capital spending; staff outlined revenue sources, new streams (car tabs, affordable-housing tax) and the mechanics of the Nov. levy certification process.
Debbie, the city's finance presenter, walked council through the 2025'26 revenue outlook and what drives the projected decline in reserves. She said the all-funds beginning balance is about $37,000,000 in 2025 and is expected to fall to roughly $31,000,000 in 2026 as capital projects are completed. “We start with the beginning balance in '25 of about $37,000,000 and it's reduced to about $31,000,000 in '26,” she said, describing how capital spending and grant timing affect fund balances.
Debbie broke the general fund into its major revenue categories and highlighted new or recently enacted local revenue streams. She told council the general fund is projected at roughly $17 million in 2025 and $16 million in 2026, and cited recent local options the city has adopted or is collecting: a $20 car-tab fee (with an option later to raise it), a 0.1% sales-tax increment, an affordable housing excise whose proceeds are directed in part to the Nordic Cottages project, and a new traffic-camera revenue stream. On property tax, she explained the levy process and estimated the city's 2025 levy (including new construction) would be certified next month, saying, “we are looking to assess a levy of $3,208,164 and we will have the ordinance coming up or the resolution coming up in November to pass that and certifying that levy.”
The presentation included comparative county data showing Poulsbo has the smallest population among local cities but has been a relatively fast-growing jurisdiction by percent. Council members asked technical questions about mark-to-market reporting for bonds and the mechanics for raising car-tab fees; Debbie confirmed the city marks investment values once a year and that any increase in car-tab fees would require subsequent council action and public hearings. The presentation concluded as a public hearing (opened and closed the same evening with no public testimony) and council confirmed no formal action was required at the meeting; the property-tax ordinance and certification will return in November for adoption.
