Lacey's 2027 budget: $245.5 million plan draws $3.31M from reserves and proposes utility rate increases

The City of Lacey has published a proposed 2027 budget of $245.5 million, down 10.6 percent from the amended 2026 budget of $274.6 million.

The plan closes a General Fund deficit with a $3,312,882 withdrawal from the Budget Policy Implementation Reserve. If approved, 2027 would be the third consecutive year the city has used reserves to balance its budget.

Where the money goes

• General Fund: $80.9 million
• Utilities: $121.3 million for water, wastewater and stormwater
• Capital projects: $30.4 million
• Internal service funds: $9.6 million
• Debt: $2.2 million
• Special revenue funds: $1.04 million

Public safety accounts for $27.1 million of General Fund spending, including $22.77 million for the Lacey Police Department.

Rate changes proposed

Utility customers would see higher monthly bills under the proposal: 5.25 percent for water (about $2.12 a month at 700 cubic feet), 9.5 percent for wastewater (about $3.45 a month) and 9.5 percent for stormwater (about $1.46 a month). LOTT Clean Water Alliance separately anticipates a $1.47 monthly increase.

Capital design work funded

The first three allocations are for design: $10.9 million for Regional Athletic Complex improvements, $2.06 million for a College Street and 16th Avenue roundabout, and $840,000 for a College Street and 29th Avenue roundabout. A College Street and Seventh Avenue roundabout is funded at $720,000.

What happens next

Public hearings are scheduled for Nov. 2, Nov. 17 and Dec. 1. The Lacey City Council is expected to adopt the budget in December. The full document is posted on the city's website and physical copies are available at Lacey City Hall.

Source: The JOLT News, reporting on the City of Lacey's proposed 2027 budget (Oct. 27, 2026).