Jacob Dimond / jake@yelmonline.com
City of Yelm finance director Stephanie Nanavich had a busy evening during the Tuesday, Oct. 27, Yelm City Council meeting, as she held public hearings for both the 2027-28 biennial budget and the fiscal year 2027 ad valorem property tax.
No council action was taken during either hearing.
According to Nanavich, the City of Yelm’s estimated expenditures during the 2027-28 biennium is $83,319,504.
“I will remind you, as is required in the body of the ordinance, we do have to outline the positions,” Nanavich said. “We are proposing to add one court clerk, one deputy clerk and one parks maintenance position. Those are all general fund positions. We are proposing to add one street maintenance worker. The general fund supports the street fund. And then, a collections assistant, which would support the WRF and that is in the sewer fund.”
She added that Yelm Police Department also wants to promote two patrol officers to the rank of sergeant to have leadership present during its nighttime patrol units. Additionally, it has requested the promotion of one police records specialist to the role of police executive assistant.
According to Nanavich, those are the proposed changes in the preliminary budget.
No public comment was offered during the hearing.
Councilor Brian Hess asked if the City of Yelm is looking to increase revenue in order to cover the additional requested positions?
According to Nanavich, there is no new revenue source. With the sources that Yelm does have, the city anticipates slight increases but does not anticipate any new revenue streams.
“We are planning on having some budget discussions on Nov. 10,” Nanavich said. “ I have a short powerpoint explaining how the property tax works and I think we will bring that on the 10th and just go through how that property tax works, just for the public and council members to revisit that topic. If there are any other questions about the biennium budget, we can revisit it then.”
She added that the City of Yelm doesn’t have the final numbers from the county assessor’s office yet.
In the second public hearing, held in relation to the fiscal year 2027’s ad valorem property tax, Nanavich said there is a regular property tax valued at $1,963,641, plus $12,980 from a levy refund.
With those numbers combined, Nanavich said Yelm is looking at an estimated levy of $1,976,621 for the 2027 fiscal year.
“Like I said, that’s kind of a moving target until we get those final numbers from the assessor’s office,” Nanavich said. “We’re hoping to have those by our final reading and adoption at the end of November.”
There was no comment from the public during the hearing on the ad valorem property tax.
Councilor Stephanie Kangiser told her fellow councilors and Nanavich that she has some concerns.
“As we look at the city’s long-term financial sustainability and the increasing cost of providing all of the essential services, such as talking about the five new positions that are coming, the amenities that we keep adding on, such as the dog park, the Yelm to Tenino trail, the other trail leading into Pierce County — this is revenue authority already available to us, correct,” Kangiser asked. “I just think it’s worth considering that we utilize this as our growth continues. Our growth is not going to sustain us forever. To lean on that, I wonder if now is not the time.”
Councilor Griselda Arias asked if the City of Yelm took the 1% increase, what would the total number be? According to Nanavich, roughly $18,000 would be added to the total.
“Obviously our cost increases dramatically more than 1%. Our cost roughly increases between 3% and 5% in total, every year. Our revenues, maybe, increase by 2% to 3%,” Nanavich said. “This would be another small piece to keep up with that increased cost of doing business as a city.”
Councilor Joseph Richardson asked what the best timing to take the 1% increase would be? What would be ideal in order for the timing to be successful?
“Definitely if you’re having a budget deficit. It would be very helpful,” Nanavich said. “We are ahead right now. We are meeting our reserve levels. We are able to add some positions, but it’s just based on so many factors. It’s your economy, not only locally but globally. There’s so many factors. There’s no equation to tell you when you should add that 1%.”
Richardson says it would be wise, if the City of Yelm is adding positions, to take that 1% increase in order to find more cushion.
“You’re doing a fine job of what you’re doing,” Richardson said, to Nanavich. “But, as councilmatic measures are, maybe we need to consider, for the future, taking care of that so we don’t fall behind and can’t pay our employees to do their job.”
