Mid-Biennium Budget Modification (Mid-Mod) Update Frequently Asked Questions

Mid-Biennium Budget Modification (Mid-Mod) Update FAQ

Background

When was the City of Tacoma’s Biennial Budget was adopted? 

At the December 10, 2024, City Council meeting, the Tacoma City Council approved the 2025-2026 Biennial Budget. 

What is a Mid-Biennium Budget Modification? 

State Law requires a mid-biennium modification occur during the first year of the biennium. Budget modifications are changes to the City’s spending plan that account for new or updated Council policies, as well as trends in revenue or expenses.  

Current Revenues and Expenditures

How do General Fund revenues look so far this year?
General Fund revenues are approximately on projections, after correcting for an overstatement in license revenues. However, there is some concern that three of the City’s four major revenue sources are under projections.   

Which major revenue sources are under projections?
Of the four major sources — Business, Sales, and Utility Taxes are under projections. Property tax is right on its projection.  

Are other revenues affected too?
Most other revenues sources are at or near their projections. 

How do expenditures compare to the budget?
While they appear underspent by $5.2 million, after adjusting for timing issues of payments, the underspent amount is approximately $2.5 million. 

Mid-Biennium Budget Modification (Mid-Mod)

What additional budget pressures are expected?
City revenues do not grow as fast as expenditures, which is a constant source of pressure on the budget. Heading into Mid-Mod, there is roughly $30 million+ more in potential costs, including: 

• Police and Fire overtime 

• Several large settlements that total in excess of $10 million

• Infusions for Workers’ Compensation and Third-Party Liability funds 

• Other corrections and adjustments 

What is the overall approach to Mid-Mod this year?
The Mid Biennium modification process will be focused on essential services like public safety, budget corrections and limited other needs.  

Timeline

What are the steps before Council review? 

• August – early September 2025: Departments and the Office of Management & Budget (OMB) review proposed changes to the biennial budget 

• Mid-September – early October 2025: City Manager review of proposals 

• Early October 2025 – City Council Study Sessions to review the proposed Mid-Mod 

When will Council consider Mid-Mod? 

• October 7, 2025: Study Session 

• October 14, 2025: Committee of the Whole 

• October 21, 2025: Public Hearing and Expected 1st Reading 

• October 28, 2025: Expected 2nd Reading and Adoption 

For more information on the Management and Budget Office, visit https://tacoma.gov/budget.