City of Kenmore Adopts 2025-2026 Biennial Budget and Financial Sustainability Plan

Kenmore City Council
Back: CM Jon Culver, Mayor Nigel Herbig, CM Joe Marshall, CM Nathan Loutsis.
Front: CM Debra Srebnik, Deputy Mayor Melanie O'Cain, CM Valerie Sasson

Kenmore, WA — On November 25, 2024, the Kenmore City Council adopted a two-year City budget for 2025 and 2026. The budget and accompanying Financial Sustainability Plan (FSP) reflect the City’s commitment to enhancing quality of life for residents and fostering long-term sustainability.

The total budget for the two years is $111,024,995, which includes $62,624,402 in one-time capital projects that are substantially grant-funded. 

The City’s main operating fund, known as the General Fund, was approved at $38,164,176 in expenditures for 2025-2026 and reflects a 16.6% increase from the prior 2023-2024 biennium. 

This increase is largely due to a temporary decrease in a portion of the police budget that was funded separately with one-time federal American Rescue Plan Act (ARPA) funds in 2023. 

One-time special projects funding (also made possible by ARPA) in 2025 and 2026 is also contributing to this increase. 

The City’s other operating fund, the Street Fund, was adopted at $3,078,724 in expenditures for 2025-2026, which is a 18.6% decrease compared to the prior biennium.

The 2025-2026 Biennial Budget sets forth an ambitious and strategic workplan for providing essential public services, infrastructure improvements, and community projects. Notably, the budget continues to advance the City Council’s top policy priority for the biennium, which is implementing the Climate Action Plan and promoting environmental restoration and stewardship.

The budget also includes plans for utilizing the remaining $2 million of one-time "Special Projects" funding indirectly made possible by the federal COVID-era American Rescue Plan Act. 

Among those Special Projects are a utility tax rebate program for low-income residents and funding for a case worker (a.k.a. navigator) to help Kenmore residents find and access social, health, and housing services.

Multi-Year Financial Sustainability Plan

On November 25, the City Council also adopted the Financial Sustainability Plan (FSP) following a collaborative process that began in May with the formation of a FSP Task Force of nine Kenmore residents. 

After a thorough review of the Task Force’s recommendations and feedback from the City Council, a modified version of the plan was presented to the City Council on November 12, and the City Council adopted the final version of the FSP on November 25. 

The FSP outlines key strategies for balancing both revenues and expenditures, ensuring Kenmore’s future financial health.

The plan incorporates most of the Task Force’s original recommendations, with a focus on creating sustainable funding sources and aligning financial resources with the City’s long-term goals. 

“We can’t thank the Task Force enough,” said Finance Director Melinda Merrell. “This was a phenomenal group of Kenmore residents who worked tirelessly through many meetings to create a healthy and meaningful financial plan for the City. It was my privilege to work with them.”

Bringing It All Together

“The adoption of both the 2025-2026 Biennial Budget and the Financial Sustainability Plan demonstrates our commitment to building a resilient and financially stable future for Kenmore,” said Mayor Nigel Herbig.

“With these critical steps, we are ensuring that our community continues to thrive while maintaining the fiscal discipline necessary to meet future challenges.”

The budget provides vital public safety services, including police, municipal court, and jail. Other core programs in the budget include street maintenance and surface water system maintenance for cleaner rivers and streams and flood prevention. 

Enhanced programs, including summer concerts and movies in the town square will continue to be funded. The summer farmers market will continue but will be largely funded and operated by a nonprofit organization that will be taking it over from the City.

The City Council’s deliberative process, which included public hearings and multiple budget discussions throughout October and November, ensured that the adopted budget reflects the priorities and needs of the Kenmore community.

Residents can view the full 200+ page budget document and keep up to date with the latest budget and financial sustainability news by visiting kenmorewa.gov/budget and kenmorewa.gov/fsp.