Olympia City Council Finance Committee Meeting - October 20, 2026

The Finance Committee of the Olympia City Council met on October 20, 2026, at 4:30 p.m. All three members were present. The meeting covered a report from the Washington Center for the Performing Arts, a budget snapshot on property tax, and an update on the 2027 operating budget. Key topics included the Washington Center's financial health, subscriber growth, community impact, and the city's budget balancing efforts.

Consent Calendar

• Approved the agenda unanimously.
• Approved the minutes of the September 21, 2026, Finance Committee meeting unanimously.

Discussion Items

Washington Center for the Performing Arts Annual Report

• Presented by Tim Coley, Board Chair, and Jill Barnes, Executive Director.
• 2025 fiscal year audit: clean opinion, unmodified opinion; $2.5 million in unrestricted cash at year end; healthy organization with no debt and positive operating cash flow.
• Net income of $387,000 before depreciation and non-operating items; unaudited 2026 shows similar trends.
• Board-designated fund balances: $916,000 in operating reserves (goal of 12 months of basics), $151,000 for new technology and equipment, and $200,000 restricted plus $151,000 unrestricted for education and community engagement.
• Current operating budget: $3.8 million revenue, $3.8 million expenses, net of $10,000.
• Subscriber growth: 456 subscribing households (23% growth over last year, 70% over four years); subscribers buy 6% more shows than last year.
• 30% of ticket sales from outside Thurston County (~15,600 tickets); patrons from 34 states and 3 countries. Tourism impact: 86% of long-distance visitors said attending a Washington Center event was primary trip purpose; 63% stayed overnight; 41% used paid accommodations; 35% stayed in hotels/motels.
• Artistic partners supported: over a dozen local nonprofits; partners represent 49% of ticket revenue; rates subsidized by over $365,000 (30-50% off commercial rates).
• Community engagement: blood drives, flu shot clinic, Dolly Day (250 attendees, 330 books donated), student matinees (1,210 students from Olympia School District in 2024-25, focus on middle/high school), and other events.
• Staff expressed the unique value of balancing touring shows with community partner priority. Councilmember Green highlighted the importance of the center's role in the community.
• On LTAC funding: Jill Barnes noted challenges in the application process because all applicants are compared equally despite different purposes. Councilmember Vanderpool acknowledged the issue and suggested future policy work.
• On potential land sale: no imminent sale; active conversations but likely not within six months.

Budget Snapshot: Property Tax

• Presented by Joan Nut, Senior Finance Manager.
• Washington state property tax system is budget-based with a 1% annual growth limit (or IPD, whichever is less). For 2027, IPD is 3.88%, so the city will take the 1% limit.
• City of Olympia’s share of total property tax is 17%; schools account for 62%.
• Current levy rate: $1.82 per $1,000 assessed value (state statutory maximum is $3.32). A levy lid lift or legislative change would be needed to increase the rate.
• 2026 collection: total assessed value $11.9 billion; highest lawful levy $20.9 million; after 1% increase and new construction, levy amount set at $21.7 million.
• Impact on property owners: $400,000 home pays about $1,200 annually in city property tax.
• Preliminary 2027 numbers shown; final certification to county by November 30.
• Councilmember Vanderpool and Green sought clarity on state-assessed property and the mechanics of levy rate.

2027 Operating Budget Update

• Presented by Mike Githon, Finance Director, and City Manager Bernie.
• 2026 year-end estimated balance above 10% reserve: just over $3.5 million (revenues stronger than forecast).
• Current balancing gap: $3.8 million (recurring revenue vs. expenses). Steps taken to reduce gap: budgeting for salary savings, correcting duplicated positions, delaying vehicle purchases, reducing liability insurance, moving one fire truck payment to 2028, reducing development fee fund contribution, increasing basic life support revenue, adjusting risk management transfers, and recognizing higher sales tax.
• Late-breaking news: a benefits calculation error in the 2027 budget (two employee groups not loaded into the budgeting system) will widen the gap; exact amount pending.
• Positive progress: county rate study saved ~$1 million; released $1.5 million from workers' comp reserve; Parks closing a $400,000 gap; additional sales tax revenue of $1.7 million (mostly from new categories like security services and IT, which sunset in 2029).
• Net after these adjustments: positive $1.9 million position, but pending benefit error.
• Prioritized budget enhancements:
  • First priority (revenue-supported): Public Works engineering position (funded by drinking water program), event planning support (two seasonal transportation workers, potentially offset by LTAC), and CARES position ($46,000 gap for grant retention). Total ~$133,000.
  • Second priority (general fund): Signs and Signals Operations Supervisor (restore cut), additional prosecutor, downtown strategy or Plum Street Corridor consultant ($150,000), HR position, climate funding ($100,000-$500,000). Committee expressed support for using REET for the supervisor position and economic development reserves for the downtown/Plum Street study.
• City manager proposed using $1 million of year-end fund balance for one-time fire truck payment, but may not be necessary if balancing holds.
• Committee members voiced support for the priority order and noted the importance of staff capacity and climate funding.

Key Outcomes

• No formal votes were taken; the committee expressed consensus on the reports and budget direction.
• The December Finance Committee meeting will be cancelled as budget work will be complete.
• City Manager will return on November 10, 2026, with a final balancing proposal addressing the benefits calculation error and potential enhancements.
• The next steps include a first public hearing on the budget on October 27, a second hearing on November 17, and final ordinances in December.