The city’s 2026 budget is squared away and ready for the new year.
The Enumclaw City Council passed the budget during its Nov. 24 meeting and after two public hearings.
Jan Molinaro made a couple of notes on the budget in his introduction.
First, this budget was made with a new software that staff is still learning how to operate.
Second, this is his last budget being presented to the council, as Molinaro is handing the reins off to Council member and Mayor-elect Anthony Write come January.
And finally, Molinaro says this budget comes with “a decent ending balance,” a positive turn from previous budgets; he called last year’s budget the “most challenging” in years and three employee positions had to be eliminated to prevent a deficit (no employees were laid off). On top of that, the last two budgets saw declining gains and loss of tax revenue.
It’s looking like that trend is being reversed.
“Revenue projections for 2025 were based on weaker economic activity, both in commerce and new construction,” Molinaro wrote. “Inflation declined in the first half of 2025; signs are apparent that lending rates will be going down and residential subdivision activity continues to progress at a slow but steady pace and as a result, permit revenue from development activity has exceeded projections. Utility tax revenue has also outpaced expectations.”
City staff are predicting operating revenue to come in at 4.6% over budget — money that is planned to be put into reserves, as opposed to funding more operating expenses.
The 2026 budget funds services at current levels, with no staffing increases currently included,” he continued. “The [general fund] is balanced, meets the 12% minimum reserve set by policy, and will increase reserves.”
Here are the revenue sources that will primarily contribute to that boost in funds.
REVENUE OUTLOOK
The city is assuming the local economy “will be flat,” as commerce-related taxes are expected to have only increased 1.1% in 2025 over the previous year.
A pattern of diminishing growth started in 2022, when retail sales tax revenue only increased 5.9% — half of the increase in 2021.
Growth shrank to 5% in 2023, and although a further dip of -2.2% was expected in 2024, unexpected revenue brought it up to a 0.9% growth.
Sales tax growth is expected to come out about to the same this year, about $4.47 million in revenue for the city.
PROPERTY TAX
With a property tax levy rate of $1.06 per $1,000 in assessed property value, the city expects to collect a about $3.17 million, one percent more than the previous year.
ULILITY TAXES
The city estimates it will collect $2.95 million in utility taxes — close to $98,000 over 2025.
The budget notes that while telecommunication tax revenue is decreasing, the electric utility tax revenue is increasing “significantly and is expected to continue to increase in future years as space and water heating for new residential construction are required to be electric by the state Energy Code. Electric rates have increased by 61% since January 2021, presumably due to the CCA and/or the Clean Energy Transformation Act (CETA).”
OTHER REVENUE
Other revenue sources like real estate excise taxes (REET), utility connection fees, and developer impact fees are all used to pay for various capital projects related to population growth, like improving transportation and parks.
New development has slowed in recent years, but the city expects two subdivisions to reach the final plat stage by mid-year, meaning new homes may start being built next year.
In total, the city estimates $993,000 will come in from secondary revenue sources.
GENERAL FUND
In total, the city expects to collect a total of $17.9 million in revenue, with total fund availability over $23.2 million — about $2.5 million more than last year.
Expenses are estimated to nearly hit $18 million, about $1.5 more than what was budgeted in 2025.
The leftover funds are deposited back into the city’s end reserve, which is estimated to grow by $1 million to total more than $5.2 million.
EXPENSES
Anyone used to budgets knows that personnel uses most of the general funds; salaries account for $7.29 million, or about 40% of the budget.
More interesting are the various capital projects the city wants to tackle next year, most of which are water and wastewater utility upgrades, facility maintenance, and street and pavement preservation and repairs.
Some of the major projects highlighted in the budget include $2.37 million to renovate a wastewater treatment plant bulk chemical storage building; $860,000 to replace a wastewater treatment plant influent screen; and $664,000 for pavement preservation and hard surface repairs, just to name the more expensive ones.
Enumclaw also earmarks funds for various entities and nonprofits that operate in the city.
This includes $60,000 to the Rainier Foothills Wellness Foundation’s in-school counselor program, and a further $12,000 for its senior hot meals program; $60,000 to Plateau Outreach Ministries, which operates the More Pennies from Heaven thrift store; $12,000 to the Enumclaw Chamber of Commerce to operate its visitor’s center; $9,000 to the Plateau Kids Network, which runs a large toy drive every holiday season; $5,500 to the Enumclaw Expo Center’s 4H Junior Livestock group; $5,000 to the Enumclaw Plateau Farmer’s Market to fund its food stamps program; $1,000 to the Plateau Historical Society; and $600 from a fund to the Friends of the Enumclaw Library group.
Not considered in this budget were several projects requested by various city departments.
These include a $350,000 project to begin the process of replacing the sandstone tiles along Cole Street; another $150,000 requested to start the replacement of the sandstone paver at Logger Legacy Park; $100,000 requested to hire a consultant that would help them study future stormwater facility retrofit requirements; and a $23,600 request from the Enumclaw Police Department for a software to aid in the managing of evidence.
