Tenino council adopts 2025 budget amid warnings of a $600,000 shortfall

Tenino — The City of Tenino adopted its 2025 budget at a Nov. 26 council meeting after a heated discussion over the city’s financial footing and reliance on interfund transfers and potential grant revenues.

Mayor (name not stated) presented a simplified summary of fund balances, saying, “we'd have an ending balance in the general fund of $635,000,” after transfers from other funds to carry the city through the start of the year. Clerk Treasurer Jen Sharber told the council the budget projections reflect higher insurance and utility costs and noted the capital improvement fund will include two large grants: a $589,000 RCO ballfield award and a $367,000 EV‑charging grant.

Council reviewed the numbers in detail: the clerk treasurer reported total revenues for all funds of roughly $8,632,000 and total expenditures of about $6,844,005 (figures presented to the council in the budget packet). Several councilors and members of the public warned the document masks a recurring deficit. Councilmember Jeff said he would oppose adopting the budget, arguing it relies on borrowed beginning balances and uncertain grants and calling it “not a real budget” and “a paper exercise.” Despite that objection, the council voted to adopt Ordinance 933 (the 2025 budget) on a second reading, and the motion passed 4–1.

Council also approved on first reading Ordinance 932, a budget amendment that moves funds to zero out several accounts with long‑standing negative balances. The mayor and clerk treasurer said the amendment reflects interfund transfers and bookkeeping corrections made to stabilize accounts ahead of the new fiscal year.

Councilors described near‑term next steps as twofold: (1) monitor cash flow and reimbursements tied to state grants (for the Ag Park and other projects) and (2) hold detailed budget discussions early in 2025 to identify deeper expense reductions or revenue options. The clerk treasurer reminded the council that some line‑item increases are driven by known cost pressures, including a reported $37,000 increase in insurance for 2025.

What happens next: the council will implement the adopted budget for 2025 and said it will return in January to work through harder choices about ongoing cuts or revenue measures if anticipated grants or reimbursement timing do not materialize.