City Council Retreat - February 5, 2026 (Discrepancy: Agenda and Minutes Indicate February 3, 2026)

This retreat of the Puyallup City Council covered three major agenda items: the 2027-2028 biennial budget forecast, a progress report on the 2025-2026 Strategic Plan, and discussion of council initiatives. The meeting was held at Pierce College Puyallup and included presentations from the Finance Director and the Performance Management Analyst, followed by extended council deliberation on various proposals. No formal votes were taken, but several directions were set for future action.

Discussion Items

2027-2028 Biennial Budget

• Finance Director Barbara Lopez presented a budget forecast based on the city's budget stability policy, which uses core revenues to fund three tiers: core services, capital replacement, and one-time uses. Revenue forecasts for 2027 and 2028 show moderate increases, but ongoing challenges include persistent inflation, job market uncertainty, rising public defender costs, facility maintenance funding, and street funding shortfalls. The general fund is projected to have $3.5 million in net revenue in 2027 and $2.5 million in 2028 after transfers, barely balancing. Council discussed the need to maintain 15% reserves, potential use of affordable housing funds (HB 1406, $1.2 million) and opioid settlement funds ($630,000) for targeted programs. Councilmember Kastama noted that pooled contributions to the South Sound Housing Affordability Partners capital fund could be matched by Pierce County, and Councilmember King cautioned that legislators may reclaim unspent 1406 dollars. Director Lopez also reported that Tier 3 one-time funds stood at approximately $10 million, with $5.1 million available after commitments.

2025-2026 Strategic Plan Progress Report

• Performance Management Analyst Tulika Makharia presented the first KPI-based progress report. Key highlights: commercial permit approval times dropped from an average of 109 days in the first half of 2025 to 61 days in the second half after setting a 65-day target; residential permit times improved from 91 to 52 days, with 88% issued within target. The value of new commercial construction increased significantly. Emergency response times for priority one calls remained within the 3–4 minute target, and the city has the fastest response time among peers. Resident satisfaction with police services and parks (83%) exceeded benchmarks. However, transportation infrastructure ratings declined slightly due to improved AI-based assessment methods. City newsletter engagement dropped after expanding the subscriber base, and employee engagement improved to 20% above the national average. Council praised the improvements and noted the need for continued data collection refinement, particularly in neighborhood engagement and diverse group outreach.

Council Initiatives

• Councilmembers discussed multiple proposals. Mayor Witting proposed a citizen recognition award beyond the existing keys to the city and coins. After discussion, council leaned toward utilizing current tools (proclamations, coins) more intentionally, possibly with a monthly proclamation and a year-end appreciation event, rather than creating a new award. A formal policy may be developed.
• A second proposal for a structured citizen input board or survey evolved into a broader conversation about civic engagement. Councilmembers expressed mixed views: some favored using existing boards and commissions, others supported district town halls or neighborhood forums. No consensus was reached; the mayor will continue individual discussions.
• Councilmember Gilliam requested updating the downtown neighborhood plan given upcoming developments (AOB, Bell property, brewery) and the Meeker Festival Street project. Council unanimously agreed to move that update forward in the schedule.
• Councilmember Smolko proposed a review of council rules and development of a procedures manual, including a code of ethics. Council agreed to move forward with this.
• Councilmember King proposed three ideas: a youth advisory council, quarterly neighborhood forums with specific themes, and a multicultural community belonging fair. These were received positively and will be further explored.
• Councilmember Kastama requested $100,000 for city hall cleaning and repairs, and $200,000 for America 250 celebration items (a 100-foot flagpole by the river bridge and banners). Discussion noted that the flagpole height may be limited by code (~68 feet) and that the chamber is already planning a $83,000 event using LTAC funds. Councilmember King expressed concern about spending $200,000 on decorations. No decisions were made; these will be considered during budget discussions.

Key Outcomes

• Council directed staff to bring forward a recommendation for increasing street maintenance funding beyond the current $1.1 million annually.
• Council will revisit the use of affordable housing (HB 1406) and opioid settlement funds in future meetings.
• Council agreed to continue using existing recognition tools (proclamations, coins) and to develop a policy for monthly recognitions.
• The downtown neighborhood plan update will be accelerated to 2026.
• A council subcommittee will be formed to review council rules and develop a procedures manual and code of ethics.
• The traffic impact fee discussion was postponed to the following day (February 6 session).
• No formal votes were taken on budget or funding requests; these will be addressed in the formal budget process later in the year.