Bothell budget briefing was scheduled to show General Fund spending outpacing revenue, with sales tax $1.8 million below projections
Materials for the Sept. 1, 2026 City Council meeting included a staff briefing on the 2025-2026 biennium budget showing General Fund revenues $2.3 million below projections through May 31, 2026, driven largely by weak sales tax collections 1.
What the records say
The agenda for the Sept. 1, 2026 Bothell City Council meeting scheduled a staff briefing on the city's budget status, with an attached 2025-2026 Biennium Budget Report covering the period through May 31, 2026 1. The briefing materials show the city recorded $234.7 million in citywide revenues and $231.2 million in expenditures from January 1, 2025 through May 31, 2026. General Fund revenues totaled $107.8 million against $115.0 million in expenditures — revenues came in $2.3 million (2.1%) below the $110.2 million projected, while expenditures ran $2.4 million (2.1%) under budget, mainly due to position vacancies 1. Sales and use tax revenues were $1.8 million, or about 6.3%, below projections, and retail sales tax fell 1.2% in 2025 and was down 0.6% year-over-year as of May 31, 2026, against a budget that forecast 8.7% growth for 2026. School zone camera fine collections were also $731.5 thousand short of estimates 1. The available records are pre-meeting materials and do not establish what was discussed or decided at the meeting.
- A staff briefing on the Budget Status Report, with an attached 2025-2026 Biennium Budget Report, was scheduled for the Sept. 1, 2026 City Council meeting.
- Through May 31, 2026, the city recorded $234.7 million in revenues and $231.2 million in expenditures citywide; General Fund revenues of $107.8 million were $2.3 million (2.1%) below projections, while expenditures of $115.0 million were $2.4 million (2.1%) under budget, mainly due to position vacancies.
- Sales and use tax revenues were $1.8 million, about 6.3%, below projections; retail sales tax fell 1.2% in 2025 and was down 0.6% year-over-year as of May 31, 2026, versus a forecast 8.7% increase for 2026. School zone camera fines were $731.5 thousand short of estimates.
- Staff stated they would present additional financial detail and 2027-2028 biennial budget recommendations at a planned September 15 City Council study session, with the audited 2025 financial report expected in mid-September.
Why it matters
The briefing materials attribute the revenue gap largely to flat sales tax collections, one of the city's main General Fund revenue sources, and staff flagged that consumer spending could weaken further amid slow wage growth, inflation, and high borrowing costs 1. Staff also stated they would provide additional details and recommendations for the 2027-2028 biennial budget at a planned September 15 City Council study session, and that the State Auditor's Office was expected to publish the city's audited 2025 financial report in mid-September 1.
What changed / what's next
- The Sept. 1, 2026 agenda added a Budget Status Report staff briefing covering the biennium budget report, including sales tax collections running below projections 1.
- The September 15 study session on the city's financial position and 2027-2028 biennial budget recommendations, and the mid-September release of the audited 2025 financial report, are the next documented milestones in the packet 1. The supplied records are pre-meeting materials and do not establish the outcome of the Sept. 1 briefing.
- The available records do not establish the meeting's outcome.