This week, Mayor James Mayhew released his proposed 2027–28 biennial budget, which would add city employees and increase service levels while using accumulated city funds in 2027.
Beginning in 2028, the financial plan also relies on approximately $3.6 million in additional annual property tax revenue from a levy lid lift that voters have not approved.
The City Council has not approved a date to put such a measure before voters. In August 2026, the Council voted 6–1 against Mayhew’s proposal to place a levy lid lift on the November 2026 general election ballot.
During his preliminary budget presentation, Mayhew identified the August 2027 primary election as the “opportunity” for a levy lid lift to go to voters. The Council has not yet approved placing a levy on that ballot. A levy lid lift allows voters to authorize an increase in a local government’s property tax levy beyond the annual growth limit that would otherwise apply.
The preliminary budget would increase citywide staffing from 106.3 full-time equivalent positions to 116.8, a net increase of 10.5 positions. New staffing is proposed in several departments, including Finance, Legal, Police, Fire and Emergency Management, Community and Economic Development, and Parks and Streets Maintenance.
Mayhew says the additional staffing is needed to address service shortfalls and deferred work. The city does not currently have enough recurring revenue — money it receives on an ongoing basis — to support all of the proposed service levels. The budget acknowledges that directly, stating that available ongoing revenue “does not support all of the service levels proposed in this budget.”
Using City Savings as a Bridge
The mayor’s proposal would use accumulated money from previous years, known as fund balance, to help pay for the proposed service levels in 2027. In 2028, the budget assumes approximately $3.6 million in additional annual property tax revenue.
“The proposed budget uses accumulated fund balance to support services in 2027, with additional levy revenue assumed to begin in 2028,” Mayhew states in his budget message. The budget also acknowledges the limits of using savings to pay ongoing expenses: “Fund balance can bridge that timing, but it cannot pay for ongoing services indefinitely.”
The city’s available funds would decline during 2027. The combined balances of the General Fund and Reserve Fund are projected to decline from approximately $6.24 million to $3.82 million during 2027 — a 38.8% decrease.
City Policy Addresses Using Savings for Ongoing Costs
The preliminary budget also points to the city’s own policy on using accumulated fund balance. That policy states that the city “shall endeavor to avoid appropriating fund balance for ongoing expenditures.”
Another section of the city’s Financial Management Policy states that “the objective of the operating budget is to pay for all current expenditures with current revenues.”
The policy does not prohibit using fund balance for ongoing expenditures. If fund balance is needed to maintain a defined service level, the city is expected to explain the circumstances and show, through its long-term financial model, how the balance would be restored. It would then be deliberated by the council.
Mayhew’s proposal uses fund balance to support proposed service levels in 2027 and includes a forecast showing the city’s financial position beginning to improve in 2028. That improvement assumes approximately $3.6 million in additional annual levy revenue beginning in 2028.
Financial Forecast Relies on Levy
The budget is explicit about the levy’s role in its financial forecast. “This forecast relies on a drawdown of governmental funds during 2027 and a levy lid lift of approximately $3.6 million effective in 2028,” the budget states.
With the levy revenue included, the city projects recurring revenues would exceed recurring expenditures by approximately $681,000 in 2028, allowing it to begin rebuilding reserves.
The city would add employees and take on other ongoing costs before voters decide whether to approve the additional property tax revenue. If voters approve a levy that generates the revenue assumed in the budget, and the city’s other projections hold, the forecast shows the financial position beginning to improve in 2028. If voters do not approve the levy, that additional revenue would not be available after the city had already used a substantial portion of its accumulated funds and taken on higher ongoing expenses.
The budget addresses that possibility, stating that without additional ongoing revenue, “the city will need to reduce the proposed service levels or defer work intended to address existing shortfalls.”
The General Fund is projected to fall from approximately $3.56 million at the end of 2026 to about $4,000 at the end of 2027 and $3,000 at the end of 2028. That does not mean Snoqualmie would be without reserves. The city maintains a separate Reserve Fund projected at approximately $3.82 million at the end of 2027 and $4.21 million at the end of 2028.
City policy calls for that Reserve Fund to equal between 15% and 20% of annual General Fund operating expenditures. The preliminary budget projects it at approximately 14.7% at the end of 2027 and 15.8% at the end of 2028.
Councilmembers Raise Legal Questions
The inclusion of revenue from a levy lid lift prompted legal questions during the Sept. 28 Council meeting.
Councilmembers Wotton and Murphy raised questions about whether the mayor’s proposed budget could include revenue that had not yet received voter approval and whether the Council could adopt a budget containing revenue from a source that had not been approved.
The city attorney discussed the respective legal roles of the mayor and Council in developing and adopting the budget but did not provide an answer to those specific questions.
Washington law allows code-city budgets to include estimated revenues, including amounts to be raised through property taxes. However, a levy lid lift requires voter approval before the city can collect the additional property tax revenue.
Mayhew said the city attorney would provide the entire Council with a more detailed response to the councilmembers’ questions later.
Council Considers Budget Tradeoffs
The proposed budget includes increased city services and relies on projected levy revenue.
Mayhew says current staffing levels have contributed to deferred maintenance, reduced capacity and work that is delayed or left unfinished. His budget seeks to address those issues by adding staff and increasing service capacity.
Doing so would also reduce the city’s accumulated financial cushion in 2027 while assuming additional property tax revenue becomes available the following year.
If voters approve the levy and the city’s other projections hold, the forecast shows the financial picture beginning to improve. If that revenue does not materialize, the city could enter 2028 with higher ongoing costs and less accumulated money, requiring additional budget decisions.
As the Council works through the 2027–28 budget, it will consider the proposed staffing and service increases and the uncertainty surrounding approximately $3.6 million in annual property tax revenue that the city’s financial forecast assumes beginning in 2028.
Next Steps
The budget is now in the Council’s hands. The City Council must adopt a new biennial budget by December 31, 2026. Over the next two months, councilmembers will deliberate and can change the mayor’s proposed budget.
For more information about Snoqualmie’s 2027–28 biennial budget process, including upcoming City Council budget development meetings, October community meetings, and a budget survey, visit the City of Snoqualmie’s biennial budget page.
The city has scheduled two public meetings, titled “The Choice Before Snoqualmie,” to discuss the proposed budget and service-level options. Meetings are scheduled for Oct. 10 and Oct. 14.
