MOSES LAKE — While Moses Lake city officials have reduced expenses and revenues are projected to increase by about 7.9% in the city's preliminary budget, proposed expenditures are projected to go up by about 9.5%.

Assistant City Manager James Richmond emphasized the preliminary budget presented earlier this month is not cast in stone.

"The projected figures are not finalized. They are requests from departments based on projected 2027 operational costs. Largely, the figures are based on guidance from the city council during the financial sustainability plan analysis," Richmond wrote in answer to questions from the Columbia Basin Herald.

Moses Lake City Council members have been going over the funding requests from different city departments, the most recent meeting being Monday. Finance Director Sheila Danielson said projected revenues for all city operations in 2027 would be about $127.7 million. Revenue was projected at $118.3 million in 2026.

Richmond emphasized that revenues are also projections.

"Finance takes a conservative forecasting approach, but actual revenues may come in higher or lower, depending on money spent at city businesses (sales tax), property valuations (property tax), utility utilization (utility tax), permit and parks activities (direct fees, success with federal and state grants, and so on," he said. 

Preliminary funding requests totaled about $136.1 million, Danielson said. That's an increase from $124.3 million projected in the 2026 budget. 

In a presentation to the council, City Manager Rob Karlinsey said some of the increase in expenses reflects inflation, which he estimated increases expenditures by about $1.5 million. In addition, city officials are transferring about $1.8 million from the general fund to help pay for capital improvement projects, he said, and are reconfiguring some city services. That has added some expense as well.

Karlinsey said employees implemented substantial cuts, but not enough to meet city goals.

"While the reductions in the 2027 budget are significant, noteworthy and not easy, the financial sustainability plan concludes that those reductions for 2027 will not be enough for the long term," he said.

The financial sustainability plan grew out of general fund budget deficits in 2025 and 2026. The general fund pays for most city services, including the police and fire departments, parks and recreation and the Moses Lake Public Library, among others. 

The general fund spent more than it took in 2025, requiring a transfer from city reserves. There is a deficit in 2026 as well, although it’s smaller, and it too required a transfer from city reserves. In light of that, city officials hired a consultant during the spring to make a six-year revenue forecast.

The study concluded that the general fund deficit would grow – and eventually drain the city’s reserves – if city officials didn’t make some changes.  The fiscal sustainability plan was the result. 

Danielson said that while personnel expenses are forecast to increase, that's mostly because benefit costs are increasing.

"Benefits are expected to increase based on the information that we've received about a 10% increase on our medical insurance and 4% on our dental insurance," Danielson said. 

More employees are projected to enroll in the city's retirement program, and Danielson said that means employer contributions will increase.

The city's last audit suggested additional funding for the city's equipment replacement account and its information technology. According to the auditors, city officials have not put aside as much money for those services as they were supposed to, she said. 

    The Moses Lake preliminary budget projects a revenue increase, but also an increase in expenses.