Olympia’s operating budget is up about $7.5 million from last year. Here’s why.

The Olympia City Council adopted a 2018 operating budget of more than $150 million Tuesday night — a $7.5 million increase over the 2017 operating budget.

Much of next year’s budget increase is due to a property tax increase passed by Olympia voters in November, which will raise about $2.8 million per year to fund public safety-related programs. An additional $2.3 million will fund wage and benefit increase. Medical insurance increases alone will cost the city about $500,000.

The remainder will go to various other city departments and programs — including $500,000 for the city’s Parks, Arts and Recreation Department, and more than $100,000 that will go to the Downtown Ambassadors program.

Overall, Olympia’s financial outlook is good in 2018, said City Manager Steve Hall at a November budget briefing. No city programs will be cut in the coming year, and no city staff will be laid off.

But there are a few unfunded needs — including a $75,000 homelessness response strategy, and replacement of both police and fire equipment.

Early in the budget process, city officials identified a $100,000 climate action plan as an unfunded need, but now Olympia is attempting to partner with neighboring Tumwater and Lacey to take a more regional approach. Hall said in late November that he hopes that Olympia and Lacey would each contribute $80,000 to the effort, and that Tumwater would contribute $40,000.

The 2018 budget includes a few utility increases. Water rates will increase 4.4 percent to pay down debt related to capital projects. And Waste Resources needs a 2 percent drop box services increase, a 2 percent residential services increase, and a 6 percent organic services increase.

Next year’s budget is the final one put together by Administrative Services Director Dean Walz, who plans to retire in 2018 after more than 40 years with the city of Olympia.

“He’s been doing this for a long time, he’s the expert,” said city spokeswoman Kellie Purce Braseth. “He will be missed.”

This story was originally published December 20, 2017 at 4:51 PM with the headline "Olympia’s operating budget is up about $7.5 million from last year. Here’s why.."