County Council continues discussing levy lid lift to maintain services

This week, the San Juan County Council continued to discuss seeking a levy lid lift to support the County’s ability to maintain existing services funded by property taxes. During the upcoming February 10 meeting, Council will be considering a resolution to place a levy lid lift ballot initiative on the April special election that would reset the County’s property tax rate to $0.85, which was the same rate last approved by voters in 2019.

Council has recently discussed the need for a levy lid lift during the Council retreat on Jan 13, as well as subsequent meetings on Jan 20, Feb 2, and Feb 3, in addition to meetings through the fall and winter of 2025. Final discussions are expected to occur during their February 10 meeting. The public is invited to attend in-person or online and provide comment during public access time: County Council Regular Session Meeting • CivicClerk.

“During the 2026 budget process, our focus was on balancing the budget by making targeted cuts. We made cuts across nearly all departments of the County and were still left with a budget that relied on spending cash-on-hand to maintain critical and essential services,” said Council Chair Justin Paulsen.  “For 2027 and beyond, in order to maintain many of the services the County provides, it is clear that in addition to continued efficiencies, we need to look at additional revenue streams.”

Budget Background

In 2025, the County worked to reduce the originally projected $6.6M deficit in the 2026–27 status quo biennial budget. The deficit could have been even larger – up to $10M- if all new spending requests had been approved.

Through a series of strategic cuts to operating expenses, eliminating staff positions, and instituting a hiring freeze, among other cost-saving measures, the County worked to reduce the deficit. At that point, Council determined that focusing on a one-year budget for 2026 would allow the organization to maintain some additional personnel and services while allowing more time to address changes for 2027 and beyond.

Balancing the 2027 Budget

Additional cuts or revenue adjustments are needed to maintain a balanced budget in 2027 and into the future. Currently, increasing expenses and rising inflation outweigh revenues in the County’s Current Expense Fund. At the current spending rate, the County’s cash reserves will fall below the required minimum by 2027.

The Council continues to engage in conversations about how the organization can realign its finances and shape the impact these financial constraints have on staffing and levels of public service.

Next Steps

On February 10, the Council will discuss and potentially adopt a resolution to place a levy lid lift on the April special election ballot. The public is invited to attend in-person or online and provide comment during public access time: County Council Regular Session Meeting • CivicClerk.

Do you have thoughts or questions? Email us at: council@sanjuancountywa.gov

Past Updates

• County Council Passes 2026 Budget but Prepares for Ongoing Financial Discussions in 2027
• County Council Opts for One-Year Budget; Focuses on Adopting 2026 at December 9 Public Hearing
• County Cuts Budget Deficit by More Than Half; Still Seeks $2M in Strategic Service & Personnel Cuts
• How Does the New State Budget Impact San Juan County Funding & Programs? Council Reviews Highlights
• Council Sets Priorities for 20206-27 Biennial Budget Amidst Funding Challenges  
• Federal Shutdown Impacts on Local Public Health
• Federal Shutdown Update: Supporting Food Access During the Shutdown

The County will publish an Adopted Budget Book for 2026 in the coming weeks. The Preliminary 2026 Budget is available upon request. You can review the County’s budget process, past documents (including past budget books), quarterly reports, and more on the Auditor’s webpages here: https://www.sanjuancountywa.gov/2030/San-Juan-County-Budget.