City of Yelm finance director presents mid-biennium budget review

Jacob Dimond / [email protected]

Yelm Finance Director Stephanie Nanavich announced there will be two public hearings next month on Tuesday, Nov. 12, and Tuesday, Nov. 25, in regards to City of Yelm property taxes and the city’s amended 2025-26 budget.

“With those public hearings, I’ll also have a presentation, and we’ll be able to have a discussion about the changes we’re bringing forward, some items in that budget amendment,” Nanavich said. “Hopefully by Nov. 12, I’ll have solid numbers from the Thurston County Assessor’s Office as to the exact property tax levy to bring forward.”

This announcement came during a Yelm City Council meeting on Tuesday, Oct. 14, when Nanavich presented a mid-biennium budget review to council and attendees.

She identified several city-wide budget goals during the presentation, including safe neighborhoods, sustainable and cost effective infrastructure, a strong and diverse economy, clean and vibrant public places, and a strongly ran government.

Nanavich also identified several budget policies, which included maintaining a balanced budget for ongoing programs, along with maintaining the general fund ending balance “at a minimum” of 15% of annual expenditures.

Additionally, Nanavich claimed that Yelm’s budget objectives are to ensure the city’s financial integrity, feature solid and prudent financial management, maintain programs to ensure long-term ability to pay associated costs, and to promote openness and transparency.

“We’ve been very happy with the progress in fiscal 2025 with our budget, and going forward into 2026, we don’t have a lot of changes to bring forward to you — other than we do have changes based on contract negotiations with salaries and benefits,” Nanavich said. “We’ve got some increases in some of our benefit providers we’ll be bringing forward as we work through this mid-biennium process.”

Nanavich also highlighted statutory maximum property tax rates and noted that the City of Yelm, the local fire agency and local library must stay under a combined rate of $3.60. According to the finance director, the city is capped at a rate of $1.60, while the local fire district is capped at $1.50 and the library is capped at $.50 cents.

“Right now, when I look at numbers, we are calculating out at about $.94 cents per $1,000,” Nanavich said. “The difference between $1.60 and $.94 cents, that’s the amount the city still has to grow over time.”

Additionally, Nanavich said capital expenditures were the most costly for Yelm in 2025 due to the completion of the Water Reclamation Facility. She noted as that phases down in 2026, capital expenditures will noticeably decrease.
Some of the ongoing expenditures in 2026, according to Nanavich, include the overall cost of insurance increasing by 3% in 2026. Additionally, cost of living adjustments (COLA) will also increase by 3% based on labor negotiations, along with an anticipated increase in employee medical and dental benefits.

L&I rates for law enforcement will increase by 15%. Funding for two additional police officers is projected for 2026 as well, due to the public safety tax passed in 2023. Lastly, funding for Yelm Senior Center, outside agencies, beautification programs and art programs will continue in 2026.