City budget process to kick off in September

Every two years, the City of Sammamish adopts a biennial budget that sets funding levels for City operations and services over the next two-year period. While the formal process begins in September, City staff and the City Council have spent the past several months reviewing long-term financial sustainability and future budget challenges.

The City faces a structural budget challenge: ongoing expenses are projected to grow faster than ongoing revenues. This is largely due to state limits on the City’s primary revenue source, property taxes, which can only increase by 1% annually unless voters approve additional funding. The cost of delivering services has risen significantly due to inflation and higher labor costs. Sammamish is not alone in facing these pressures, but difficult decisions will be needed during this budget cycle.

Property taxes are shared among multiple jurisdictions, including the City, schools, emergency services, libraries, and others. Depending on the school district, the City receives approximately 8% - 12% of residents’ total property tax bill. The majority of property taxes, more than 60%, support local and state school funding, with over half coming from voter-approved levies for schools, emergency services, and libraries.

The portion of property taxes received by Sammamish makes up more than 50% of the City’s General Fund budget, making it our largest ongoing revenue source. The City also receives about 8% of sales tax collected locally, with the vast majority of sales tax revenue going to the state. A utility tax implemented earlier this year, now common among Washington cities, helps address immediate needs but does not fully resolve the long-term gap. All utility tax revenue stays with the City of Sammamish’s General Fund to help pay for police, fire, parks and recreation, and other general government services.

The City Council will evaluate options to address the funding challenge while continuing to deliver essential services. This includes reviewing program costs, considering service adjustments, and exploring future revenue strategies. State law requires the City to adopt a balanced budget by Dec. 31.

Sammamish residents are encouraged to participate by attending Council meetings, following budget updates online, and providing public comment.

Learn more and stay informed: www.sammamish.us/projects/2027-2028-budget