Council places levy-lid lift measure on Nov. 3 ballot after finance briefing and mayoral statement

Director Beach told the council the city's general fund projections show reserves running out within a few years without new revenue. "We will have depleted the reserves and general fund in 2028 if we don't find another source of revenue," Director Beach said while presenting graphics that modeled revenues and expenditures.

Mayor Kennedy Horstman delivered a prepared statement that framed the lift as a response to long-term constraints on revenue and rising legal liabilities. "Addressing one lawsuit will consume the savings we've built since I became the mayor," the mayor said, arguing the city has cut services and must ask voters whether they want to retain current services.

Council members discussed the scope and timing of the proposed increase, including the Finance Personnel Legislative Commission's recommendation to limit the average household impact to under $500 per year. The council also noted an exemption option for qualifying seniors and property owners with disabilities under state programs administered by Island County.

After discussion the council moved to adopt the ordinance that submits the proposition to voters. Motion to "approve the 2nd reading of ordinance 1151 as presented" was made, seconded, and the council voted in favor; the presiding officer declared the motion passed.

Next steps: the ordinance directs the Island County auditor to place the proposition on the Nov. 3, 2026 general-election ballot and sets the effective timing should the measure pass. The council indicated it will continue annual budget reviews and could revisit levy strategy in future years.

Provenance: topic introduced at SEG 628 with Director Beach's presentation and concluded with the ballot-motion vote at SEG 1313.