Mayor Ralph Proposes 2027-2028 Budget

Mayor Dana Ralph proposed her 2027-2028 Biennial Budget to the Kent City Council at a special council meeting on Tuesday, September 29, 2026. See her proposal letter to the council and community below.

Council President Kaur

Members of the City Council

Kent Residents

I am proud to present my proposed 2027-2028 biennial budget. I am thankful for the continued collaboration of our community members, City Council, and City staff as we work together to provide the services our residents, businesses, and visitors depend upon while maintaining the financial stability of our City.

The proposed 2027-2028 biennial budget totals $944,215,080, with $474,610,570 proposed for 2027 and $469,604,510 proposed for 2028. The General Fund's portion of that budget for the biennium is $291,115,510.

Developing this proposed budget has required us to carefully consider the needs of our community, the services we are responsible for providing, and the financial resources available to us. We continue to experience many of the same financial pressures that affected our previous biennium. Inflation remains a concern, with the Seattle-Tacoma-Bellevue Consumer Price Index for Urban Wage Earners and Clerical Workers at 3.8 percent. At the same time, the cost of labor, contracted services, utilities, materials, insurance, and other necessities continues to increase.

At the Council retreat earlier this year, we discussed the City's challenge of expenditures growing faster than ongoing revenues. We have a budget gap, and we cannot add new expenditures without identifying how those costs will be paid for.

I would like to thank the Council for agreeing to maintain a status quo budget for this biennium. This direction was used by departments as we worked to prepare the budget being presented to you.

A status quo budget does not mean that there are no new expenditures. It means that when we identify a new need or request additional resources, we must identify a responsible way to pay for it. That may be through additional revenue, a reduction in another expenditure, or other funding source such as a grant. There are a number of examples of this throughout this proposed budget.

In December 2025, the City faced a flooding incident that brought to light the need to take a close look at how we handle Emergency Management within the City. Emergency Management is a core health, safety, and welfare obligation of the City, and state law requires cities to provide for this function. For years, the City has contracted with the Puget Sound Regional Fire Authority (PSRFA) for these services. As Kent and the PSRFA have grown, it has become clear that the City needs an in-house Emergency Manager to ensure emergency planning is tailored to Kent, that staff training remains up to date, and that the City is ready to respond to the various major emergencies we may be confronted with.

This budget includes hiring an Emergency Manager in mid-2027. Importantly, we are able to do this without adding a new ongoing burden to the City's budget. The position will be funded by reducing the City's contract with the PSRFA for Emergency Management services, resulting in a net-zero fiscal impact.

Another example is our Business License and Tax Compliance Enforcement project. The Washington State Department of Revenue (DOR) identifies a substantial number of businesses located within Kent that have a state business license but do not have a City business license. This budget includes a two-year temporary limited-term position to look more closely at this discrepancy. In many cases, it may simply be that a business is unaware of its obligation to have a City business license in addition to its state license. Through education and enforcement efforts, we can increase compliance with the business licensing requirement. This will not only generate additional business license and B&O tax revenue to cover the cost of the position, but it will also provide meaningful data for our Economic and Community Development team to better understand the business activities taking place in Kent.

In 2018, ordinance 4423 was adopted which authorized a series of increases to the City's B&O gross receipts tax and square footage tax. The final increase will take place effective January 1, 2028, with an increase in square footage tax from $0.48 per square foot per year to $0.60. This will generate an additional $3.4 million in tax revenue for 2028.

The Kent Senior Activity Center is another important investment in our community. It serves as a critical community resource that helps older adults remain active, healthy, connected, and independent. The Senior Center provides recreation, education, nutrition, social engagement, volunteer opportunities, information and referral services, and access to community resources that support overall well-being and quality of life. It is a valuable resource for a growing population. For the last several years, we have assigned a temporary limited-term position to the Senior Center to help meet the service demand. The need is not diminishing. Therefore, this budget converts the existing temporary limited-term position at the Senior Center to a regular full-time position. This additional cost will be supported through increased Parks revenue.

The use of citywide field space has also been on the rise. With the addition of the Canyon Ridge and Kentridge Athletic Complexes, we have seen significant expansion in athletic field access for residents, user groups, and community organizations. This partnership brings additional field inventory to help support Kent Parks programming and address community demand for practices, games, tournaments, and rentals while reducing scheduling constraints throughout the athletic field system. This budget includes an additional full-time position and temporary support to manage the expansion of athletic complex operations. These costs are also supported by increased Parks revenue.

We are also providing additional temporary staff to assist with the increased maintenance obligations associated with new municipal facilities and park assets. This will provide additional citywide park and facility maintenance capacity. A full-time employee was recommended for this work in addition to temporary staffing. However, we remained mindful of the ongoing budgetary impact that a regular full-time position would have on the budget, and we did not add that permanent position at this time.

These are examples of the approach we have taken throughout this budget process. We have identified needs in our community, but we have also looked carefully at how those needs can be addressed responsibly within our financial resources.

There are services the City is required by law to provide, and there are essential services that must continue if the City is going to fulfill its responsibilities to the community. When the cost of those services increases due to unfunded mandates or increased demand, we do not have the option of simply eliminating them. This is one of the most difficult aspects of this budget.

Public defender costs are one example. The proposed budget already includes an additional $1 million to address the increased costs of current caseloads. As the allowable caseload for public defenders is reduced to new levels, the City will face an additional General Fund impact of more than $4 million annually. This is a significant financial pressure that we must begin planning for now.

Corrections medical care presents another substantial challenge. The City's current medical provider has provided notice that they are no longer going to be providing these services because of the significant risk associated with correctional medical care. The City must find a new provider. Medical care is an essential requirement for operating our correctional facility. The proposed budget includes an additional $1 million per year, or $2 million over the biennium, in additional General Fund resources for inmate medical care. We are anticipating double-digit increases in these costs in future years.

Similarly, the City has historically used other financial resources to pay for overflow inmate housing at the Yakima County Jail. Those resources are now running out. The proposed budget therefore includes $700,000 per year, or $1.4 million over the biennium, in General Fund resources to continue this existing service.

These are examples of expenditures that we must fund because they are necessary to meet our obligations and continue providing essential services, even though they do not come with an offsetting revenue source.

Public safety remains a major priority for the City of Kent. House Bill 2015 provided the City with an important dedicated resource for criminal justice services. Kent adopted a 0.1 percent sales and use tax for criminal justice purposes, effective January 1, 2026. This is expected to generate approximately $3.9 million annually. Those revenues will be used for criminal justice services, including police and corrections officers, as well as prosecution and court personnel. There has been an increased workload in our Law Department. This dedicated revenue will allow us to add a much needed additional attorney without placing that cost on the General Fund.

The City was awarded grant funding under HB 2015. As was presented previously to Council, this grant funding will allow us to hire ahead 20 police officers in anticipation of upcoming retirements. These 20 temporary limited-term positions are included in this budget for your approval. We expect a significant number of officers to retire over the next three years. Hiring ahead of those retirements allows us to prepare for that workforce transition rather than waiting until vacancies occur.

The proposed budget includes $1 million per year for anticipated retirement leave cashouts. We do not typically budget for retirement leave accrual payments, but the number of anticipated retirements over the next three years makes it necessary to plan for this expense. Together, these investments demonstrate that we are planning not only to ensure the safety of our community today, but also into the future.

The proposed budget also includes the use of $100,000 of criminal justice funding over the biennium for investigative DNA analysis for violent crimes. DNA analysis is a cornerstone of successful criminal prosecution for violent crimes. Advances in this technology have enabled the City to effectively solve crimes, some of which have languished for decades. In the past, some of these costs were covered by federal entities and grants. That funding has proven to be unreliable, necessitating the dedication of City resources to this important work.

The financial pressures facing the City come from many directions. Puget Sound Energy (PSE) has proposed significant increases to electric rates as part of its three-year rate plan. While those proposed rates remain subject to review, the impact of rising energy costs is already something we must consider when planning our budget. The City's electric budget illustrates the magnitude of that pressure. In 2026, the City's electric budget is approximately $2.8 million. For 2027, that amount is projected to increase to approximately $4.29 million, an increase of approximately $1.49 million. A significant portion of this cost is street lighting. Estimated street-lighting costs are expected to be over $2 million in 2027. These increases are another example of costs that are largely outside the City's control but must nevertheless be incorporated into our financial planning.

We know that maintaining the appearance and condition of our streets, rights-of-way, and public spaces is important to our community. The proposed budget includes $800,000 over the biennium for the extension of right-of-way and encampment cleanup contracted services. This will provide continued capacity to address litter, illegal dumping, encampments, and other cleanup needs throughout major City arterials.

We are also proposing a two-year Transportation Corridor Maintenance Crew pilot program. Work will be performed by way of a contract with an existing 501(c)(3) that provides paid employment to individuals who are rebuilding their lives after incarceration or who have experienced or are at risk of experiencing homelessness and substance abuse disorder. This team will perform routine and targeted cleanup of streets, sidewalks, and public areas. The crew will be responsible for removing litter and debris, clearing vegetation overgrowth, addressing illegal dumping, maintaining landscaped areas, cleaning around rights-of-way and intersections, and graffiti removal. The goal is to help maintain safe and accessible corridors, improve neighborhood aesthetics, and enhance overall community quality of life. The pilot will be funded through the City's annual capital allocation, allowing us to test this approach for two years and evaluate its effectiveness before determining whether it should become a permanent program.

We are also proposing a one-time $300,000 General Fund investment in 2027 for an Urban Forest Stewardship and Risk Management Program. This program will assess, monitor, mitigate, and remove trees of concern throughout the park system and other City-owned properties.

A responsible budget must also recognize the importance of maintaining and modernizing the systems and infrastructure that allow the City to serve our community.

The proposed capital program totals approximately $80,566,800 over the biennium and includes investments in technology, transportation, utilities, and other City infrastructure.

We are finalizing the work to modernize the City's permitting system, Amanda, by providing additional funding to complete the remaining work.

Investments in the Business License System and City Tax System will improve the way businesses and taxpayers interact with the City while also making our internal processes more efficient.

Our water utility is beginning the transition toward automated meter reading infrastructure. The budget includes setting aside an initial $4 million contribution from the Water Fund toward the project while the City determines the final scope and cost. Ultimately, this program will replace existing water meters with automated meter-reading technology, creating smoother connectivity with the City's utility billing system, improving efficiency and customer service, and improving our ability to identify potential leaks and other issues.

We are investing in the technology used to manage our infrastructure and operations, including the Cityworks cloud migration and the replacement of outdated systems that are approaching the end of their useful or supported life. These investments may not always be visible to our residents, but they are essential to maintaining reliable and efficient City services.

Transportation continues to be an important part of maintaining and improving our community. The proposed budget also includes funding for the Reith Road West Shared Use Path from 42nd Avenue South to South 253rd Street. Completing this segment will enable pedestrians to travel safely and continuously from Pacific Highway to the Kent-Des Moines corridor, improving access to Meeker Street, Kent Station, and our downtown. Completing this work will advance the City's pedestrian and bicycle network and position the project to compete for future construction funding.

There were many worthwhile requests that we could not include in the proposed budget. The City's financial position requires us to make difficult choices. Requests that were not included in my proposed budget include converting the Facilities Project Manager temporary position to full time, converting the Litter Task Team temporary position to a permanent FTE, creating a Street Hardscape Special Emphasis Crew, and converting the Environmental temporary position to a permanent position.

Not approving a request does not mean that the need isn't there. It means that, given the resources available today, we cannot responsibly add that ongoing expense to the budget. That discipline is necessary to protect the long-term financial health of the City.

As we prepare for the 2027 legislative session, we will continue working with our state partners to address many of the financial pressures reflected in this budget. Our priorities are focused on reducing costs to the city, protecting local revenues, and securing state investment for costs and projects that should not fall solely on Kent taxpayers. We will seek state funding to transform our new Administrative Services Building into a clean energy demonstration project for the Kent Industrial Valley, using solar energy and small local battery storage to lower the City's long-term energy costs, improve energy resilience, and return power to the grid when possible. We will advocate for a more sustainable local government funding structure that protects and grows state-shared revenues and strengthens Kent's tax base; support Washington's aerospace and space industries and the jobs and economic activity they bring to the Kent Valley; seek permanent state funding to offset the significant new costs associated with state public defense standards; and pursue reasonable liability reforms, particularly for cities operating municipal jails, to help address rapidly rising insurance and liability costs. These priorities are directly connected to the City's long-term financial health. A strong partnership with the state can help reduce pressure on the General Fund, protect essential services, strengthen our local economy, and ensure Kent taxpayers are not asked to shoulder costs that extend beyond our community.

My proposed 2027-2028 biennial budget reflects the reality that we are operating in a challenging financial environment. We are experiencing rising costs for public defense, corrections medical care, jail housing, utilities, labor, and other essential services. At the same time, ongoing revenues are not keeping pace with expenditures.

Yet this budget also reflects our ability to make strategic investments. We are investing in public safety and preparing for the retirement of members of our police force. We are using dedicated criminal justice revenues and grant funding where available. We are bringing Emergency Management in-house at a net-zero fiscal impact. We are using increased Parks revenues to support additional Parks services. We are investing in transportation, technology, water infrastructure, and the stewardship of our rights-of-way and public spaces.

My proposed 2027-2028 biennial budget is a reflection of the collaboration of City leadership, City Council, City staff, and our Kent community. I am grateful to everyone who has worked through this process with the understanding that every dollar we spend represents resources entrusted to us by the people we serve.

There will always be more needs than resources. Our responsibility is to make thoughtful decisions about where those resources can do the most good, while protecting the City's ability to provide essential services today and in the future. Kent is a strong and growing community with tremendous opportunities ahead. By remaining disciplined with our finances, investing strategically, and continuing to work together, we can meet the challenges before us and continue to move Kent forward.

Thank you to our City Council, our employees, and our community for your continued partnership and commitment to Kent. Our residents, businesses, and visitors are counting on us, and we are committed to serving them well.

Respectfully Yours,

Dana Ralph, Mayor