Tacoma City Council Study Session - November 12, 2025

The Tacoma City Council convened on November 12, 2025, for a study session focused primarily on developing a comprehensive revenue strategy, with detailed discussions on a new state-authorized public safety sales tax, a "Year of Belonging" initiative, and the implementation of a centralized grant tracking system. The session also included an update on the ongoing search for a new City Manager and a review of upcoming procedural changes regarding the Transportation Benefit District.

Consent Calendar

• No specific consent calendar actions were recorded in the transcript; the items discussed were presented as study and discussion agenda items.

Public Comments & Testimony

• No public comments were transcribed. The session focused on internal council deliberation and presentation by staff.

Discussion Items

• Revenue Strategy & Public Safety Sales Tax (House Bill 2015):

  • Director Andy Chirulo presented a review of revenue actions from the last decade, noting over $18 million in new general fund revenues and $36 million in dedicated fund revenues previously authorized.
  • Proposal: Council members discussed a potential 0.1% councilmanic sales tax to fund criminal justice and public safety initiatives (including alternative response, domestic violence support, and mental health crisis response).
  • Positions & Concerns:
    • Mayor Woodards expressed full support for the initiative due to community needs but emphasized the urgency to act within the current legislative window to ensure the tax is effective by April 2027. She raised concerns about the strict compliance requirements (e.g., de-escalation training, Keep Washington Working Act adherence). Staff confirmed the Police Department is not yet fully compliant but expects to be within 60 to 90 days. The Mayor expressed a desire to pass the tax before year-end to maximize the effective date.
    • Councilmember Bushnell expressed support for the tax but raised concerns about the regressive nature of sales taxes impacting low-income residents. She advocated for future state-level reforms toward progressive revenue options. She also questioned the use of funds for capital improvements (statute is silent) and the volatility of sales tax revenue, suggesting the need for reserves to smooth "peaks and valleys" in funding.
    • Councilmember Walker clarified that a funding plan detailing the expenditure of dollars must accompany the tax ordinance before council vote. She expressed strong support for ensuring "Alternative Response" programs are included in the spending plan.
    • Councilmember Diaz inquired about using funds for workforce development (specifically for domestic violence co-responders) and mental health teams. Staff confirmed there is statutory flexibility to define "public safety" to include workforce development if linked to criminal justice outcomes.
    • Councilmember Sidalgay questioned the connection between the state grant program and the sales tax (clarified as separate but sharing compliance requirements) and expressed concern about maintaining future spending flexibility to avoid binding successive councils to specific programs.
    • Councilmember Hines raised concerns about potential future state mandates changing compliance requirements annually, potentially creating unfunded obligations. Staff noted the statute requires annual reporting but is silent on retroactive rule changes.
  • Fiscal Impact: Revenue is estimated at $7 million to $7.5 million annually, comparable to the "Tacoma Creates" tax.

• "Year of Belonging" Initiative:

  • Councilmember Bushnell introduced a Contingency Request (CCR) for $25,000 to Tacoma Community House (TCU) to support the "Year of Belonging" campaign, aimed at immigrant, refugee, BIPOC, and LGBTQIA+ communities.
  • Positions:
    • Councilmember Diaz voiced strong support, noting the initiative's alignment with city values and the immediate need to foster unity amid uncertainty for vulnerable communities.
    • Councilmember Sidalgay supported the co-sponsorship, emphasizing the importance of visual cues of belonging in the city.
  • Key Details: TCU will receive an additional $25,000 from remaining Robert Wood Johnson Foundation funds, totaling $50,000 for community events and outreach. Councilmember Diaz suggested exploring future arts funding eligibility for the initiative.

• Centralized Grant Tracking System & Policy:

  • Councilmember Diaz introduced a CCR to create a centralized grant tracking system and policy, aiming to increase transparency regarding the over $70 million in annual grants the city receives.
  • Positions & Proposals:
    • Councilmember Walker supported the transparency goals but questioned the fiscal impact ($390,000 in initial costs and 281 year-over-year costs plus an FTE). Staff clarified these are estimates for the next biennium budget process and that an FTE may or may not be needed; the CCR directs the City Manager to create the system and report back.
    • Councilmember Sidalgay highlighted the potential for operational efficiencies and knowledge sharing across departments, suggesting the system could help leverage more grants.
    • Councilmember Bushnell noted the system could assist in maximizing grant applications and administrative cost recovery.
    • Councilmember Hines raised concerns about the exclusion of Tacoma Public Utilities (TPU) from the current policy, requesting that the utility's large grant approvals also eventually be subject to similar transparency measures.
  • Key Details: The policy proposes thresholds for council consent agenda approval: grants over $100,000 for operations or over $500,000 for capital projects.

• City Manager Search Update:

  • Cheryl Bidelman (OSAC Liaison) provided an update on the Interim City Manager search.
  • Timeline: The job profile opens this Friday, November 14, and closes December 12. The goal is to conduct first-round interviews in late January with a new City Manager potentially starting March 30.
  • Positions: Council members expressed gratitude to the OSAC (Councilmember Walker, Bushnell, Scott) and staff for the progress.

Key Outcomes

• No formal votes were taken on any measures during this study session, as the discussions were for deliberation and preparation.
• Directives:
  • Public Safety Tax: Staff were directed to provide a timeline for full compliance with state requirements (Keep Washington Working Act, de-escalation training, etc.) within 60-90 days. The Mayor stated a strong intent to pursue the tax before year-end.
  • Grant Tracking: The City Manager is directed to develop a centralized grant tracking system and policy, with fiscal impacts to be presented in the next budget cycle. The thresholds and scope are subject to further iteration.
  • City Manager Search: The OSAC is directed to release the job profile on Friday, November 14, and continue stakeholder engagement.
• Next Steps:
  • A full report on the Public Safety Sales Tax requirements and a detailed implementation plan are expected in the coming weeks before a potential vote.
  • Staff will revisit the transparency policy to include Tacoma Public Utilities grants.
  • The Council is scheduled for a special meeting later that day (3:00 PM) for the Transportation Benefit District, followed by a celebration of the City's sesquicentennial (150th anniversary).