2027 – 2028 Biennial Budget Development

Proposed Budget

• October 6: Proposed Budget and updated forecast presented at Study Session

Council Study Sessions Department Presentations

• October 13: Climate and Environment & Transportation and Mobility with Tacoma Public Utilities, Environment and Public Works
• October 20: Placemaking and Experiences & Jobs and Economy with Community and Economic Development, Planning and Development Services, and Tacoma Venues and Events
• October 27: Community Safety & Housing and Homelessness with Neighborhood and Community Services, Tacoma Fire Department, and Tacoma Police Department
• November 3: Operational Excellence with Internal Services (City Manager’s Office, Finance, Human Resources, and Information Technology)

Council Meetings, Public Hearings, and Adoption

• November 3: First public hearing on the 2027–2028 Biennial Budget
• November 10: Second public hearing and expected first reading of ordinance for the 2027-2028 Biennial Budget
• November 17: Expected second reading of ordinance and adoption of the 2027-2028 Biennial Budget

Council Study Sessions are held on Tuesdays at noon, and Council meetings are held on Tuesdays at 5 p.m.

They can be viewed live in person at the Tacoma Municipal Building (747 Market Street, 1st Floor, Council Chambers), on TV Tacoma, and on Zoom.

TV Tacoma is currently carried on both the Lightcurve and Comcast Cable systems.

• On Lightcurve, TV Tacoma is available via Cable TV on Channel 512 in High Definition and on Channel 12 in Standard Definition within the Tacoma City limits and in Pierce County. In the City of University Place, our Standard Definition Channel is 21. TV Tacoma is also available on Ch. 12 with Lightcurve’s StreamTV Service.
• On Comcast, TV Tacoma is available in High Definition on Channel 321 in Tacoma and Pierce County. Our Standard Definition Channel is 12 within the Tacoma City limits and Channel 21 in Pierce County. TV Tacoma is not available on the Comcast system in University Place.

Full agendas – as well as Zoom access details – for Council Study Sessions and Council Meetings are available on our City Council Meetings web page.

The City develops its budget through a process that includes financial forecasting, community engagement, departmental planning, and City Council review. Every two-year (biennial) budget goes through stages: baseline analysis, development of proposals, public discussion, final adoption, and ongoing adjustments.

Work on the 2027–2028 Proposed Budget takes place throughout 2026. A balanced proposed budget will be presented by the City Manager in accordance with City Council priorities in early October 2026, with City Council reviewing, discussing, amending, and adopting the final budget by the end of the year. Budget adoption typically happens in November.

• Ongoing: Community engagement
• Spring: Early year forecasting 
• Spring – Summer: Staff development of a proposed budget  
• Fall: Department work sessions and proposed budget presentation  
• November: Council adoption
• Late Fall – Winter: Final budget published 

The Roadmap to Recovery is the City Manager’s long-term plan to build a more financially resilient Tacoma. It includes short-term work in 2026 to stabilize operations and longer-term strategies through 2030 to improve city services and financial stability. For more information, visit tacoma.gov/roadmaptorecovery. 

The 2027–2028 Proposed Budget is one of the first major steps in a multi–biennium recovery plan. Decisions made now set the foundation for long-term improvements in City services and financial sustainability. 

The economy shows both strengths and challenges. Advantages include steady employment, population growth, credit rating improvements, and investment activity. Challenges include inflation, consumer uncertainty, higher fuel costs, and local pressures such as growth-related service demands and construction slowdowns.

The General Fund is the City’s main operating fund and pays for many core services such as public safety and libraries. It is also the most flexible fund in the City. While dollars from many other funds can only be spent on specific purposes, General Fund dollars can be allocated to any City program or service.

A structural gap occurs when ongoing expenses grow faster than ongoing revenues. For 2027–2028, the City forecasts a $40 million gap in the baseline budget, with the gap increasing over time if no action is taken. The baseline budget consists of expected revenues and expenses, but does not include any proposed budget adjustments.

Key cost drivers include wage increases, rapidly rising healthcare costs, inflation in goods and services, and increased demands on internal services.

Overall revenue growth is slower than expense growth.

• Sales tax is sensitive to economic conditions.
• Property tax growth is legally limited to 1% per year, plus certain exceptions such as new construction.
• Business and utility taxes face downward or uncertain trends.

Community engagement is a key part of budget development. Residents can:

• Use the Balancing Act Tool (launching July) to explore budget tradeoffs.
• Review updated budget information available on this page. 
• Read results of the community survey (publishing June 2026).
• Participate in City events and targeted online engagement opportunities. List of opportunities with dates and times still to come.  

Through summer/fall 2026, the City will review department proposals, refine forecasts, and incorporate community and Council input. A balanced proposed budget will be delivered to Council in October 2026.