About two months after receiving a preliminary copy of the 2025-2026 Biennial Budget, Mercer Island City Council adopted the final budget at its Dec. 3 regular meeting.

The final 307-page budget — which council passed on its consent agenda at the meeting — will be available for public perusal on the city’s website no later than Jan. 31, 2025 at www.mercerisland.gov/budget. Council didn’t make any amendments to the budget during the meeting.

Divided into six sections, the budget features a city manager message and budget overview, recap by fund, revenue sources, operating budget by department, Capital Improvement Program (CIP) and an appendix delving into the history of Mercer Island, a glossary of budget related terms, and an explanation on accounting and budgeting.

A city document distributed prior to the meeting notes that the estimated 2025-2026 revenues are $225,057,990 and estimated 2025-2026 expenditures are $221,952,922.

On the revenue front, the subtotal general purpose funds amount is an estimated $76,466,381; in the expenditure realm, the subtotal general purpose funds amount is an estimated $75,930,257.

Estimated revenue and expenditure totals in key sections are of the exact amount for the capital improvement fund ($20,437,481), water fund ($48,122,996), sewer fund ($31,456,238), street fund ($10,398,798) and Firefighters Pension Fund ($282,000). There are slight revenue and expenditure monetary differences in the technology and equipment fund, development services fund and others. For a complete rundown of monetary figures, residents can visit the city website when the final budget is released.

For the 2023-2024 biennial budget, estimates rolled in at: total revenues of $211.8 million and expenditures of $201.5 million; and general fund revenues and expenditures both sitting at $71 million each.

“In spite of unprecedented cost increases in this volatile market, we’ve passed a balanced budget that will serve Mercer Island well,” said Mayor Salim Nice. “This outcome means we can sustainably charge ahead with operations and critical investments in the Island’s infrastructure over the next two years, and I’m proud of the hard work that got us to this positive position.”

City councilmembers and a city staff team made adjustments to the budget during workshops and there were two public hearings scheduled for input on the preliminary budget.

Added City Manager Jessi Bon within the preliminary budget: “It is my privilege to present a balanced and strategic two-year budget for the city of Mercer Island. While market fluctuations and high inflationary pressure continue nationally and across the globe, Mercer Island is fortunate to stand in a sound financial position due to the prudent investment of federal funds, completion of major policy initiatives, and careful year-over-year fiscal management. These efforts paved the way for a sustainable and efficient city budget.”

At city council’s Oct. 15 meeting, Bon noted that some of the city’s major achievements in 2023-2024 were securing a partnership with Eastside Fire & Rescue, maintaining strong mental health and family counseling services, completing major investments in the water system, sewer system, streets and parks.

Also at that meeting, Bon said the city’s paramount priorities in its work plan for the next two years are identifying and meeting future facility needs, continuing reinvesting in crucial water, sewer, stormwater, streets and parks capital projects and more.

The Reporter will follow up on more components of the final budget when it is released.