OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Tacoma City Council Study Session on IT, Revenue, SDCs, and OASIS Youth Center - February 10, 2026

City Council Study Session — Tuesday, February 10, 2026
BodyTacoma, Washington
SessionCity Council Study Session
DateTuesday, February 10, 2026
StatusFILED
Video Record
0:00 / 1:42:59

Transcript — Verbatim
0:00

The City Council study session of February 10th, 2026.

0:02

Clerk, will you please call the roll?

0:04

Deputy Mayor Bushnell.

0:06

President.

0:06

Councilmember Diaz.

0:08

Councilmember Hines.

0:10

Councilmember Palmer.

0:11

Councilmember Rumba.

0:12

Here.

0:13

Councilmember Sidalgay.

0:14

Here.

0:14

Councilmember Scott.

0:15

Here.

0:16

Councilmember Walker.

0:17

Here.

0:17

Mayor Ibsen.

0:19

Here.

0:19

Welcome.

0:20

Our first agenda item is the IT department overview.

0:22

I'd like to call on Department of Information Technology, Daniel Key to begin the presentation.

0:27

Welcome.

0:28

Good afternoon.

0:28

Thank you, Mayor, Deputy Mayor, and Council for this opportunity to present to you an overview of the Information Technology Department as part of your onboarding and prep for the budget this year.

0:38

I do not have cool swag like you did last time, but I do like to point out that you have a lot of wonderful devices in your hands.

0:44

And so whether that's a positive or negative, I'll leave to you about how we're doing with that.

0:49

So next slide, please.

0:51

So who you are, the information technology department is organized as a captive service provider for the broader city of Tacoma, including Tacoma Public Utilities.

1:00

And we provide a range of shared services and operate a number, probably about two dozen different products on behalf of the business to increase uh operational effectiveness, uh capacity and ensure the value and resilience of our technology systems.

1:15

Um we have extensive practices for both governance and decision making that help us stay in line with the rest of the city.

1:23

And by the numbers, we're about 10,000 devices and over 100 million transactions every year, each of those throwing off interesting data for you to incorporate in your policy making and operation of city services.

1:35

Next slide.

1:37

Moving on to some recent accomplishments, uh, we have a very active technology portfolio.

1:42

Uh, the city is really moving forward and increasing its operational effectiveness and transforming how we operate.

1:47

Um, these things range from generational software application uh migrations to weekly security patching and everything in between.

1:55

We typically manage about 20 to 30 named projects with project managers, scopes, schedules, and budgets, about three to four hundred new system features or capabilities every year, and 60 to 65,000 service desk tickets and requests for new items and service.

2:11

So there's a lot of volume coming through the IT department.

2:14

2025 was a historically large year in investment as far as the number of things that finished.

2:19

Not all these things started in 2025, but we had a lot of successes, including a migration of our city's enterprise resource planning system.

2:28

This is the large software platform that tracks all your money, your people, and your assets and interfaces with about 150 other services.

2:36

Originally implemented in 2003.

2:38

Uh, we finished late last year with an on-time and on-budget migration to a new system that should support us out through 2040.

2:45

Um, you've seen the new city website and the new city domain, giving us more security and trust and transparency under the Tacoma.gov domain, with that a new open data portal and access to maps, data, and applications for transparency and government, uh, increases in our internet bandwidth, including a 10x uh increase in our uh throughput, and including security uh capabilities around that, migration to Windows 11, permitting process improvements uh for both the home and Tacoma and utilities processes.

3:14

Uh, we also operate the public safety radio system for police fire and others and coordinate with other providers in the region.

3:21

And as you're all familiar with, uh, generative AI has been a topic, so there've been a lot of policy development, piloting, and exploration of those technologies just on our 2025 work plan.

3:32

So, plenty going on.

3:33

Next slide.

3:35

So, where we fit into the bigger picture of Tacoma 2035 and the council and communities goals.

3:41

Uh, as an internal service, uh, we're in the business of building capability and contributing to the operational excellence of the city.

3:48

Some have referred to us as the handle on the umbrella, and I'm starting to warm up to that concept.

3:53

Through partnership with other city departments, we do contribute to the full breadth of your strategies and goals.

3:59

I'll highlight just a couple here for you.

4:01

Uh, under the climate goals, we provide all your telework and hybrid capabilities for your workforce and the public, online business portals, including utilities 311 and permitting, and data analysis and presentations for things such as tide flats planning and uh urban canopy.

4:18

Under community safety, uh we provide the information around the dashboards for the Tacoma Public Police Department's crime dashboard and alternative response.

4:27

Uh we implement and operate body and vehicle cameras.

4:30

Uh we operate the public safety radio and interfaces with South Sun 911 and other data sources.

4:36

Around housing, we are involved in mapping and data analysis as well as the permitting process.

4:42

And around jobs in the economy, we have partnerships and edge for both employment and education with other regional entities such as UW Tacoma, the state of Washington through Maritime Blue, Tacoma Community College, Tacoma Public Schools, and Startup 253.

5:00

And not to leave out payroll and HR systems to make sure our employees receive their benefits and pay on time every couple weeks.

5:08

Regarding place making and experiences, we support backend infrastructure and front of house for both Tacoma venues and events and Tacoma Public Libraries to ensure that they have secure and sustainable services for their mission.

5:21

And we provide regional interoperation with parks, Tacoma Public Schools, and some limited public Wi-Fi access at city facilities.

Discussion Breakdown — Share of Meeting
Water And Wastewater Management█████████████████████████25%
Technology and Innovation████████████████████20%
Fiscal Sustainability████████████████████20%
Affordable Housing█████████9%
Public Engagement████████8%
Public Safety███3%
Digital Equity Initiatives███3%
Engineering And Infrastructure███3%
Environmental Protection██2%
Summary of Proceedings

Tacoma City Council Study Session - February 10, 2026

The City Council held a study session on February 10, 2026, covering presentations from the Information Technology Department, a revenue strategy and budget forecast update, a joint proposal for system development charges (SDCs) from Environmental Services and Tacoma Water, and a council consideration request for HIV/STI self-testing at the OASIS Youth Center. The meeting concluded with an agenda review and a motion to convene an executive session.

IT Department Overview

  • Director Daniel Key presented an overview of the IT Department, which operates as a captive service provider for the city and Tacoma Public Utilities, managing approximately 10,000 devices and over 100 million transactions annually.
  • Key 2025 accomplishments included: on-time, on-budget migration of the enterprise resource planning (SAP) system (originally implemented in 2003), launch of the new Tacoma.gov website and open data portal, a 10x increase in internet bandwidth, migration to Windows 11, and policy development for generative AI.
  • Priorities for 2026 include cybersecurity, generative AI integration, public-facing dashboards, utility asset management, and continued SAP investment.
  • Funding for IT is 100% from internal subscribers, with about 25% contributed from the general fund.
  • Councilmembers asked about the completed SAP migration, future asset management projects, digital equity initiatives (including 2,000 device distributions during COVID, website accessibility), and upcoming AI policy formalization expected in Q2 2026.

Revenue Strategy and Budget Forecast Update

  • Finance Director Andy Charulo and Budget Officer Teresa Green presented preliminary 2025 general fund results: revenues exceeded projections by $3.6 million, but with caveats (an estimated $1 million in uncollected license and permit revenue, and continued weakness in the four largest revenue sources: business tax, property tax, sales tax, and utility tax).
  • Expenditures were under budget by $15.5 million, but most of that is expected to be spent in 2026 (including $6 million in neighborhood/non-departmental funds, $3 million for police and fire overtime).
  • A timeline for the 2027-2028 budget was provided: a preliminary six-year forecast in May 2026, community engagement via survey and online tool, city manager's proposed budget in October, and adoption by late November.
  • Councilmembers discussed volatility in utility tax (driven by power wholesale fluctuations), sales tax timing, and requested a chart showing historical revenue vs. expenditure growth to illustrate the structural gap.

System Development Charges

  • Environmental Services Director Ramiro Chavez, Nathan Crane (analyst), and Tacoma Water economist Andrew Zaremba presented a joint proposal for new wastewater and stormwater SDCs and an update to existing water SDCs.
  • Rationale: multiple capital funding gaps due to aging infrastructure, growth/densification (e.g., solid process upgrades at the Central Treatment Plant by 2040, increased stormwater flooding), and pending regulatory requirements (nutrient limits, PFAS, pipeline pressurization).
  • A 2022 survey of 500+ residents found strong support for growth paying for growth.
  • The proposed SDC amounts place Tacoma toward the lower end of comparable cities for an 8-plex multifamily development, when including transportation impact fees.
  • For affordable housing waivers: state law (RCW 35.92.385) allows waivers only if funded by non-utility sources. Staff proposed using CHIP grant funds (Connecting Housing to Infrastructure Program) to reimburse waived SDCs, and recommended developing a separate waiver ordinance later in 2026 after adoption of the three SDC ordinances.
  • Water SDCs include $225 million in capital projects, about half regulatory-mandated. Key projects include pipeline one pressurization ($100M+), PFAS treatment, and capacity expansion (wells, reservoirs).
  • Councilmembers questioned the tension between increasing housing costs and stated goals for affordability. Staff noted that if growth does not materialize, capacity projects would be deferred. The deputy mayor asked about alternative funding sources; staff listed rates, SDCs, grants, bonds, and partnerships.

Council Consideration Request: OASIS Youth Center HIV/STI Testing

  • Councilmember Rumbaugh, co-sponsored by Councilmembers Diaz and Walker, requested $30,000 from the council contingency fund to support OASIS Youth Center in providing HIV and STI self-testing for LGBTQ+ youth aged 14 and older in Pierce County.
  • Key statistics: Pierce County is a high STI jurisdiction, ranking second in the state for chlamydia, gonorrhea, and syphilis cases, with youth 15-24 accounting for the majority of chlamydia cases. The funding would allow administration of 300 tests.
  • Councilmember Rumbaugh noted this addresses a gap left after the Pierce County AIDS Foundation left the city. The request is scheduled for a vote on February 24, 2026.
  • Councilmembers discussed sustainability; Rumbaugh plans to approach Pierce County for future funding.

Agenda Review and City Manager's Weekly Report

  • Deputy City Manager Alison Griffith noted there is a ceremonial proclamation of Tuesday, February 17th as Lunar New Year. No modifications to the agenda. Two opportunities for public comment. The executive session motion was passed to discuss qualifications of an applicant for public employment (RCW 42.30.110(1)(g)).

Key Outcomes

  • The IT Department presentation was informational; no formal action taken.
  • The revenue strategy and budget forecast update was informational; staff will provide a six-year forecast in May 2026 and incorporate council feedback.
  • The system development charge proposal will have a second reading and possible adoption on February 24, 2026. If adopted, Environmental Services SDCs will take effect July 1, 2026; Water SDCs will be effective upon passage. A separate affordable housing waiver ordinance will be developed later in 2026.
  • The council consideration request for OASIS Youth Center ($30,000) will be voted on February 24, 2026.
  • An executive session was convened (motion carried unanimously) to discuss a public employment applicant.

Meeting Transcript

The City Council study session of February 10th, 2026. Clerk, will you please call the roll? Deputy Mayor Bushnell. President. Councilmember Diaz. Councilmember Hines. Councilmember Palmer. Councilmember Rumba. Here. Councilmember Sidalgay. Here. Councilmember Scott. Here. Councilmember Walker. Here. Mayor Ibsen. Here. Welcome. Our first agenda item is the IT department overview. I'd like to call on Department of Information Technology, Daniel Key to begin the presentation. Welcome. Good afternoon. Thank you, Mayor, Deputy Mayor, and Council for this opportunity to present to you an overview of the Information Technology Department as part of your onboarding and prep for the budget this year. I do not have cool swag like you did last time, but I do like to point out that you have a lot of wonderful devices in your hands. And so whether that's a positive or negative, I'll leave to you about how we're doing with that. So next slide, please. So who you are, the information technology department is organized as a captive service provider for the broader city of Tacoma, including Tacoma Public Utilities. And we provide a range of shared services and operate a number, probably about two dozen different products on behalf of the business to increase uh operational effectiveness, uh capacity and ensure the value and resilience of our technology systems. Um we have extensive practices for both governance and decision making that help us stay in line with the rest of the city. And by the numbers, we're about 10,000 devices and over 100 million transactions every year, each of those throwing off interesting data for you to incorporate in your policy making and operation of city services. Next slide. Moving on to some recent accomplishments, uh, we have a very active technology portfolio. Uh, the city is really moving forward and increasing its operational effectiveness and transforming how we operate. Um, these things range from generational software application uh migrations to weekly security patching and everything in between. We typically manage about 20 to 30 named projects with project managers, scopes, schedules, and budgets, about three to four hundred new system features or capabilities every year, and 60 to 65,000 service desk tickets and requests for new items and service. So there's a lot of volume coming through the IT department. 2025 was a historically large year in investment as far as the number of things that finished. Not all these things started in 2025, but we had a lot of successes, including a migration of our city's enterprise resource planning system. This is the large software platform that tracks all your money, your people, and your assets and interfaces with about 150 other services. Originally implemented in 2003. Uh, we finished late last year with an on-time and on-budget migration to a new system that should support us out through 2040. Um, you've seen the new city website and the new city domain, giving us more security and trust and transparency under the Tacoma.gov domain, with that a new open data portal and access to maps, data, and applications for transparency and government, uh, increases in our internet bandwidth, including a 10x uh increase in our uh throughput, and including security uh capabilities around that, migration to Windows 11, permitting process improvements uh for both the home and Tacoma and utilities processes. Uh, we also operate the public safety radio system for police fire and others and coordinate with other providers in the region. And as you're all familiar with, uh, generative AI has been a topic, so there've been a lot of policy development, piloting, and exploration of those technologies just on our 2025 work plan. So, plenty going on. Next slide. So, where we fit into the bigger picture of Tacoma 2035 and the council and communities goals. Uh, as an internal service, uh, we're in the business of building capability and contributing to the operational excellence of the city. Some have referred to us as the handle on the umbrella, and I'm starting to warm up to that concept. Through partnership with other city departments, we do contribute to the full breadth of your strategies and goals.

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