10/06/2026 - Mercer Island - City Council Regular Meeting

Mercer Island City Council regular meeting, October 6, 2026: staff presented the preliminary 2027–2028 biennial budget and 2027–2032 Capital Improvement Program (CIP). The proposed two-year spending plan totals $265 million, including about $90 million for capital improvements. Staff described reduced capital resources due to the completion of outside funding agreements—including a Sound Transit settlement of just over $10 million and $7.23 million in ARPA funds—and declining real estate excise tax revenue. Following review with the Finance Ad Hoc Committee, the proposed CIP prioritizes keeping critical facilities operational, completing active work, and preparing projects to compete for grants. Projects discussed included sewer-system improvements, water and pedestrian infrastructure, phased work on the city-owned 9655 building, and the community center HVAC replacement. The city has secured $1 million in state funding for the HVAC project; a nearly $2 million community center generator project is proposed for 2027 design to position it for grant funding. Dean’s Play Area has $650,000 proposed for 2027, including $400,000 from the parks levy and $250,000 in grant funding, with additional funding shown for 2028. Staff also reported that the Luther Burbank waterfront project had been awarded; no contractor or award amount was stated. The budget and CIP presentation was for feedback, not final adoption.

Council directed the city manager to prepare an ordinance restructuring the Planning Commission, including a five-member, resident commission and no compensation, with relevant professional experience encouraged; it also voted to defer filling a vacancy while considering the changes. In a separate post-executive-session vote, council authorized the city manager to proceed with the settlement in City of Mercer Island v. Campbell; settlement terms were not provided. The consent agenda, containing 12 items, was approved, but the transcript does not specify their contents.