Shoreline City Council Regular Meeting: Budget Transmittal and Affordable Housing Policy Tools - October 12, 2026

The Shoreline City Council met on Monday, October 12, 2026, at 7:00 PM in the Council Chamber at Shoreline City Hall. Mayor Betsy Robertson presided over the flag salute, an Indigenous Peoples' Day proclamation, roll call, agenda approval, city manager and council reports, a public comment period, and unanimous approval of the consent calendar. The council then received two study items: the 2027-2028 proposed biennial budget and 2027-2032 Capital Improvement Plan (CIP), and a discussion of policy tools from the Affordable Housing Feasibility Study. No formal votes were taken on either study item.

Indigenous Peoples' Day Proclamation

• Mayor Robertson read and signed a proclamation designating October 12, 2026, as Indigenous Peoples' Day in Shoreline, honoring Indigenous nations of the Salish Sea region, including the Duwamish, Muckleshoot, Snoqualmie, Snohomish, and Tulalip peoples.
• Pamela Sea Monster, a Shoreline resident and advocate, thanked the council, acknowledged Chief Seattle's great-great-great grandnieces Desiree Fagan and Veronica Ramirez and a visitor from Pine Ridge, South Dakota, and spoke about the cultural significance of Ronald Bog Park. She expressed a desire to work with Duwamish women to restore cranberries to the bog and create a historical site, saying the city should create "friends, not allies" and move forward together.

City Manager's Report and Council Reports

• City Manager Mr. Ellington reported community updates: the Seattle Latino Film Festival is coming to Shoreline's Crest Cinema, Hamlin Halloween Haunt will take place October 16, and a community emergency response team (CERT) training exercise will be held at City Hall October 16-18, including a simulated disaster exercise on October 18 from noon to 4 p.m. He reminded residents the exercise is planned, not an actual emergency.
• Councilmember Mork reported on the Solid Waste Advisory Committee, noting the draft environmental impact statement is open for comment and includes three alternatives: shipping trash by rail, incineration with energy recovery, and a half-and-half option. He encouraged councilmembers to attend the related lunch-and-learn.
• Councilmember Adamasu reported attending the Realtor's Housing Initiative briefing and an anti-racist organizers convening. Mayor Robertson reported attending the small business forum at City Hall, which was well attended.

Public Comments & Testimony

• No public comments were offered. The sign-up sheet was blank, and the public comment period was closed.

Consent Calendar

• The consent calendar was approved unanimously by roll-call vote. It included:
  • Approval of the regular meeting minutes of September 14, 2026, and September 21, 2026.
  • Approval of expenses and payroll as of September 25, 2026, in the amount of $6,621,752.79.
  • Adoption of Ordinance No. 1071, amending the 2025-2026 final biennial budget to accept a $600,000 Washington State Department of Commerce grant for the Home Electrification and Appliance Rebate Grant Program.
  • Authorization for the City Manager to execute amendments with Resicon and Gensco to implement Washington's Home Electrification and Appliance Rebates (HEAR) Program funds for the Energize Shoreline program.
  • Authorization for the City Manager to extend the interlocal agreement with Lynnwood for jail services through December 31, 2027.

Discussion Items

2027-2028 Proposed Biennial Budget and 2027-2032 CIP

• Administrative Services Director Joseph Brandstadter and Budget and Tax Manager Christy Hopkins presented the City Manager's proposed biennial budget. The budget totals just over $434 million and is balanced in all funds.
• The city has received the highest possible S&P Global bond rating upgrade, from AA+ to AAA, along with 28 consecutive unmodified financial statement audit opinions and 25 years of Government Finance Officers Association budget awards.
• The 10-year forecast assumes spending 99% of expenditures. The original forecast assumed a 1% decline in assessed value, but King County's latest data shows about a 4.8% decline. Under the forecast, which assumes voter approval of a levy lid lift beginning in 2028, the city projects about a $14.7 million deficit over the six years of the next levy lid lift through 2034, requiring one-time funds and cost-cutting.
• Property tax remains the largest general fund revenue source, estimated at $55.4 million for the biennium. The 2027 rate is currently projected at $1.63 per $1,000, based on a 4.53% June-to-June Seattle CPI-U increase plus new construction and refunds. The 2022 park bond excess levy is about $2.95 million per year, or about 18 cents per $1,000.
• Budgeted one-time investments include sidewalks at 200th Street and 25th Avenue, Aurora Avenue landscaping improvements, wire theft prevention, small business outreach, and continued implementation of the modern permitting system. Ongoing additions include a school zone automated traffic enforcement program and continued funding for Shoreline Pride and Juneteenth celebrations.
• The budget adds 4.5 ongoing FTE positions, with 1.58 FTE from operating funds partially backed by revenue; limited-term staffing remains net zero, with six reductions and six additions.
• Wastewater utility costs reflect a 12.75% increase in King County treatment charges in 2027, while surface water and wastewater increases are also driven by capital projects and a one-time transfer to the city maintenance facility.
• During council discussion, Councilmember Adamasu asked about enterprise fund increases; staff cited capital projects and King County charges. Councilmember Snyder asked about a 2026 expenditure spike; staff explained it was use of fund balance for one-time projects such as the maintenance facility and park bond contributions. Councilmember Scully raised concerns about deferred maintenance for sidewalks, landscaping, and streets, noting the need for a mechanism such as a set-aside or redirecting some funding from new projects; staff noted the $10 increase in the Transportation Benefit District vehicle fee is dedicated to asphalt maintenance and that asset management work is underway.
• The budget document is approximately 500 pages and was distributed to the council; it was posted online the next day. Department-level budget presentations are scheduled for October 16 and October 23, and council adoption is anticipated in November.

Affordable Housing Feasibility Study: Analysis of Policy Tools

• Community Services Manager Bethany Wahlberg Dunn and Kevin Ramsey of BERC Consulting presented preliminary findings from the study, funded with $100,000 in one-time council funding. The study goals are to produce new income-restricted affordable housing at 50% of area median income (AMI) and support permanent affordable homeownership for households below 80% AMI.
• The study reviewed three groups of policy tools: affordable housing requirements and incentives, regulatory changes to expand housing options, and funding tools. Overall, BERC found that incentives and requirements are unlikely to succeed in the current market due to high construction, borrowing, investor-return, and economic uncertainty, and modeled policy options remained below feasibility thresholds.
• BERC concluded the most impactful city actions would be funding affordable housing or providing land donations to serve as local match. Average local funding contribution per low-income housing tax credit project in Washington over the past year was $5.8 million.
• An affordable housing levy could generate $4.5 million to $6.7 million annually, costing the median homeowner roughly $200 to $300 per year, and could support roughly 90 to 140 rental units or 30 to 50 ownership units per year as local match. Similar levies have passed in Seattle, Vancouver, and Bellingham, with no unsuccessful housing levies identified in Washington.
• A large-home fee on square footage above a threshold such as 2,500 square feet could generate an estimated $200,000 to $500,000 annually. Typical rental project costs were estimated at about $400,000 per unit with $44,000 local match per unit, while ownership townhomes cost about $730,000 to build with $125,000 local match per unit.
• BERC also discussed extending inclusionary zoning to homeownership to close a loophole in areas where ownership projects currently avoid affordability requirements; this would require a city homeownership program, potentially through a nonprofit partner such as Homestead Community Land Trust or Habitat for Humanity. Regulatory changes such as streamlined permitting, pre-approved plans, modular construction, and tiny homes on wheels could also reduce costs.
• Councilmember Scully said the report was helpful and clarifying, expressed full support for requiring homeownership units within inclusionary zoning, and was excited about streamlined permitting. She questioned the townhome cost assumption and raised condominiums as a possible alternative, but concluded rentals may be the more realistic approach. She was skeptical of affordable housing levies as regressive and said government at the state or federal level, rather than the city, may need to build a significant portion of affordable housing.
• Councilmember Roberts said the report showed the city's limitations, argued that deep subsidies from federal and state government are needed especially for households at 30% AMI, and expressed concern that inclusionary zoning could reduce total housing production and that the MFTE program has a 20-year property tax cliff.
• Councilmember Snyder preferred nonprofit partnerships and land-lease models, and said the city's property tax burden was already high compared with neighboring cities, making additional levies unattractive. Councilmember Adamasu asked for clarification that impact fee waivers would apply only to the affordable portion, asked about King County partnerships, noted the city's housing trust fund currently has zero dollars, supported adding a homeownership option but suggested looking at middle housing rather than only townhomes, and asked whether the city could do anything immediate on vouchers; staff said a city-run basic-income or voucher-style program would require a significant ongoing commitment but rough cost estimates could be prepared by December.
• Councilmember Mork was interested in modular housing as a cost-saving approach. Mayor Robertson expressed interest in further exploring the large-home fee, the lodging tax, and ADUs/tiny homes on wheels, while Councilmember Roberts cautioned that homeowners would bear inclusionary zoning costs, large-home fees could be gamed, and impact fee waivers would require the city to fund its own impact fee accounts.

Key Outcomes

• The agenda was adopted by unanimous consent.
• The consent calendar was approved unanimously.
• The 2027-2028 budget transmittal and 2027-2032 CIP were received as a study item; no formal action was taken. The budget process will continue with department presentations on October 16 and October 23, with adoption anticipated in November.
• The Affordable Housing Feasibility Study discussion was for council input only; no formal action was taken. Staff and BERC will return in December with the final report and staff recommendations.
• The meeting adjourned after the housing discussion and no further council business.