Mercer Island City Council continued its journey into the review process of the 2025-2026 Biennial Budget with a second workshop and initial public meeting of the budget development process on Oct. 15.
Council received a copy of the preliminary budget at its Oct. 1 meeting following the document’s filing with the city clerk on Sept. 25. The 307-page budget is available for review at www.mercerisland.gov/budget.
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.
City Manager Jessi Bon’s robust message within the budget informs residents that the document supports everything the city does.
“It’s built upon significant progress and a sustained practice to enhance City services and operations with each biennium. City staff is committed to carrying out the City Council’s direction encompassed in the budget,” Bon notes. “I am confident this blueprint will lead us well in carrying out major investments in our community and sustaining our core services as we set a course for the next two years, and beyond.”
In the general fund revenues realm, the 2024 adopted budget’s amount was situated at $33.7 million and this year’s forecast rolls in at $39.6 million — a jump of $5.8 million largely due to higher-than-expected sales tax revenues, development service revenues, and interest earnings, according to the document. In coming years, the city projects general fund revenues to reach $37.4 million in 2025 and $38.6 million in 2026.
On the revenue forecast front, the city addresses the General Fund, the Youth and Family Services Fund, the Development Services Fund and the Contingency Fund — all primary operating funds — as well as key revenues that support the CIP.
Regarding total sales tax in the general fund revenue forecast from 2024 and then moving onward, city finance director Matthew Mornick explained at the Oct. 15 meeting: “Other than the construction sector, which is where we are seeing a bit of a slow down in the first six months of 2024, most sectors where we track sales tax revenue activity, it remains strong. So it’s on this basis that staff projects that sales tax revenues are going to come in about $7.3 million by the end of the year and experience modest growth in 2025 with a growth rate of 3.7% and then 4% in 2026.”
Bon stepped into the budget presentation at the meeting and focused on the operating budget, work plan and staffing levels, noting about the latter element that she proposes to maintain those levels.
“You know my style is an adaptive staffing model. As things are changing, as positions are vacated through retirements or departure, we always evaluate that position and the need and that will continue to be our approach into the biennium,” she said.
To supplement her budget talk, Bon noted that some of Mercer Island’s major achievements in 2023-2024 were securing a partnership with Eastside Fire & Rescue, maintaining strong mental health and family counseling services, and completing major investments in the water system, sewer system, streets and parks.
Moving on to the highest priorities in the city’s work plan for 2025-2026, Bon listed identifying and meeting future facility needs, continuing reinvesting in crucial water, sewer, stormwater, streets and parks capital projects and more.
Forthcoming in the budget process, city council will hold the second public hearing on the document and review any budget changes at its meeting at 5 p.m. on Nov. 19. A first public hearing was scheduled for Oct. 15, but didn’t occur.
The final budget and 2025 master fee schedule are slated for adoption at council’s Dec. 3 meeting.
