Officials report that the city of Tacoma’s revenues are lower than forecasted and its expenses are higher than expected, as the city continues to contend with a structural budget deficit amid an economic downturn.
Tacoma finance director Andy Cherullo outlined for council members the state of the city’s budget as of June 2025 at a study session late last month. The council approved Tacoma’s 2025-2026 biennial budget in December 2024. The presentation came as an early step in a process of mid-biennial review and modification – a requirement cities must meet, according to state law.
Cherullo said that the city’s revenues can be divided into four categories: business tax, property tax, sales tax and utility tax. Revenue in each category is down, he said, by a total of about $3.5 million. The city’s expenses in the first half of 2025 are largely below what it budgeted for, but excluding money that is soon to be spent on neighborhood and community services, the city’s expenses are roughly $2.5 million higher than expected…