EXPLAINER · BUDGET

Kirkland's proposed 2027-28 budget is out. Here's what it means for your household.

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The City's two-year plan keeps every current service and opens a new community center. For most households, the bigger costs arrive on the utility bill and at the register. The City's property tax line barely moves, but the budget leans on savings that won't be there next time.

In short:

  • The council already approved higher utility rates on October 20. The City's sample household bill goes up $22 a month in 2027 and about $46 a month in 2028, compared with today.

  • The budget assumes the usual 1% property tax increase. On the City's part of your bill, that's about $9 a year for every $1 million of assessed value.

  • On January 1, the sales tax in Kirkland rises from 10.4% to 10.51% because of two new King County taxes. A separate 0.1% City sales tax for public safety is not in the budget, but the council will discuss it November 17.

  • The budget is balanced and the City's general reserves are full. To get there it uses about $20 million in one-time money, mostly savings from the last two years, to pay for services that continue. That money won't be there next time, and the City projects a $24.3 million gap for 2029-2030.

  • Homeowners 61 or older, or with a disability: if you might have qualified for King County's exemption in 2023 (that year's income limit was $58,423), Saturday, October 31 is the last day to apply for a refund of the second half of 2023's taxes.

  • A possible local minimum wage comes up November 4. Nothing is decided, and the budget assumes none.

What 2027 looks like for two households

  • A homeowner with a $1 million assessed home and the City's sample utility bill pays about $264 more for utilities over the year, about $9 more in City property tax, and about $1.10 more per $1,000 of taxable shopping.

  • A renter gets no property tax bill, though those costs tend to reach rent over time, and utility increases may show up in rent or in charges from the owner. Sales tax rises the same $1.10 per $1,000.

  • Either one may qualify for the City's Kirkland Cares program if household income is at or below 80% of the area median: $81,700 for one person or $116,650 for a family of four in 2026. It discounts City water and sewer bills (and garbage for low-income seniors and people with disabilities), or pays a monthly rebate when utilities are included in rent.

What changes on your bills

Utilities, already decided

The council voted 6–0 on October 20 to raise water, sewer, surface water and garbage rates for 2027 and 2028. For the City's sample household, the monthly bill goes from $262.09 today to $284.12 in 2027 and about $308 in 2028. Water and sewer rates change with usage starting December 1, and surface water (the drainage charge) and garbage on January 1.

The City says the main drivers are the agencies it pays for service, such as King County for sewage treatment, whose part of the sewer charge alone rises 13.29% in 2027. Kirkland is also rebuilding several utility reserves, phased in through 2032, and projects the sample bill at $423.69 by then. The City also taxes utility bills, so that tax grows with every increase; our taxes guide explains how.

Property tax and the usual 1%

The budget assumes Kirkland takes the full 1% increase state law allows in both 2027 and 2028, plus what new construction adds. The City has no unused increases saved from earlier years to add on.

In 2026 the City's rate is about $0.86 per $1,000 of assessed value (the King County Assessor's estimate of what your property is worth). That's roughly 10% of the typical total Kirkland rate of $8.46. On a home assessed at $1 million, the City's line is about $864 a year, so a 1% increase adds about $9 (our arithmetic). Schools, the county and other districts set their own rates and make up about 90% of the bill. Your own bill can rise more or less than 1%, even in a year when home values fall, and our property tax guide explains why under "Why your bill rises even with a 1% cap."

Because it's owed every year whether or not income rises, property tax can be hard on people with fixed incomes. King County's exemption for homeowners 61 or older, or with a disability, helps; our property tax guide covers who qualifies under "Could you qualify for a reduction?"

The council holds a hearing November 4 on the 2027 levy (the total property tax the City will collect next year) and is scheduled to adopt it November 17.

Sales tax from the county, and one the City could add

On January 1, 2027, the sales tax rate in Kirkland goes from 10.4% to 10.51%. The County Council adopted a new 0.1% countywide transportation tax in June 2026, and the County also added a 0.01% tax for children and family services. Kirkland's council took no action on either. Together they add about $1.10 to every $1,000 of taxable purchases (our arithmetic).

Kirkland shoppers already pay three small public safety and criminal justice sales taxes, including one voters approved in 2018. A 2025 state law lets the City add its own 0.1% without a public vote if the council acts by June 30, 2028. That would take Kirkland's rate to about 10.61%, roughly $1 more per $1,000 you spend.

That City tax is not in the proposed budget. Staff estimate it would raise about $4.2 million a year, possibly from 2027. The City Manager presents it as a way to make several one-time human services and criminal justice programs permanent and to narrow the 2029-2030 gap by about $5 million, and his draft work program lists it as something to "implement." His message also calls sales tax regressive, since everyone pays the same rate whatever their income, and says the tax "would further burden" residents who are already struggling. The council gets a fuller briefing November 17.

Parking and fines

These are proposals; the council hasn't voted.

  • The City's two paid downtown lots, Lakeshore Plaza by Marina Park and Lake & Central, go from $1 to $2 an hour, and Sundays would no longer be free. Street parking and the Peter Kirk garage stay free for now.

  • Summer paid parking starts in 2027 at the Houghton Beach and Juanita Beach park lots. After setup costs, the City expects about $435,000 by the end of 2028 and about $421,000 a year after that, which helps run the new community center.

  • In 2028, staff would ask the public about charging for street parking downtown.

  • The lowest school zone camera fine goes up, from $136 to $145 under the September proposal, and two more cameras would go in at a new school zone. The City's evaluation found that the speed most drivers stay under fell by 3 to 9.5 mph at all eight current camera locations.

The parking plan aims for turnover that helps downtown businesses but doesn't estimate the effect on their sales. In July a council member asked for more than a theory on that, and staff said they'd watch whether lots stay full after any price change.

What the money buys

Police, fire and the regional crisis response agency get $180.2 million over the two years, and the teen center keeps its programs. Human services grants to local nonprofits total $5.22 million, and $1.27 million of that is one-time money, as it was last budget, so it has to be found again next time. Kirkland's contribution to the housing trust fund run by ARCH, the regional housing coalition, rises to $888,657 a year, with the increase paid from one-time sources.

The biggest new piece is the community center inside the Kraken Iceplex, which the Kraken are financing and building. The City will run the second floor, scheduled to open in January 2028 with almost 2,500 classes and programs a year. Over the two years the City's costs for it come to about $5.3 million. About $1.9 million of that comes from the General Fund, the City's main account for everyday services like police, fire, parks and public works; fees, beach parking, the county parks levy and capital funds cover the rest. The budget also pays to renovate Peter Kirk Pool, plan a community center at the Kingsgate church site the City bought October 6, and replace the 1971 South Reservoir, partly with bonds (borrowing repaid over many years).

Overall, the General Fund's two-year total is $361.9 million, 5.8% more than last budget's $341.9 million. The budget adds eight regular staff positions, most of them in parks for the new community center.

Balanced now, harder in 2029

By the City's own measures, the budget is in good shape. It balances, keeps the rainy day fund and other general reserves full, and protects Kirkland's AAA credit rating. The City also tracks what it calls the Price of Government, all the taxes, fees and utility rates it collects compared with residents' total income. That figure is 3.01% in 2027, and the City says most cities fall between 5% and 6%.

How it balances matters for later. Before adding anything new, the City's ongoing costs already run $10.6 million ahead of ongoing revenue over two years, mostly because of labor costs. That's up from $6.4 million in the City's May forecast (by our reading the two figures compare), and the budget doesn't reconcile the two figures. Add the community center, teen center and carried-over programs, and the shortfall is $19.7 million.

The budget covers that with about $20.4 million in one-time money, which is a bit like paying monthly bills from savings. About $14.8 million is left over from cautious budgeting in 2025-2026, when revenue came in above budget and spending below. Another $5.2 million comes from a reserve built from federal payments for ambulance trips, and smaller sources make up the rest. That reserve drops from $6.0 million in 2026 to $1.4 million by 2028, and staff don't expect it to refill. The City Manager weighed targeted cuts and chose not to make them, writing that "the need for community services in this time of uncertainty is great." He writes that there is "less margin for error" than in past years, and that keeping current services in 2029-2030 will be "much more challenging."

The City's forecast shows the gap returning at $24.3 million in 2029-2030 and $26.9 million in 2031-2032. With the 0.1% sales tax and the services the City Manager would add with it, the 2029-2030 figure is $19.2 million. Every Kirkland forecast since 2016 has opened with a gap that was closed before adoption, through some mix of cuts, new revenue and money left over. The $24.3 million is best read as the size of the choices ahead. Other options the budget names for later include higher car-tab fees, a 0.1% transportation sales tax, more paid parking in parks and measures that would go to voters.

Warning lights, in plain English

Each comes with what the City has built against it.

  • Wages and benefits. Pay and benefits make up about two-thirds of General Fund spending and are growing faster than revenue. As of September, some employee contracts for 2027 and 2028 were still being negotiated. Against that, the City budgets every position as filled all year, so turnover usually leaves money unspent, and it keeps a reserve for raises.

  • A cooling local economy. Citing Zillow, the budget book reports that Kirkland home values fell 8.88% between March 2025 and August 2026. Construction has leveled off. Sales tax is expected to grow only about 0.5% this year. Office vacancy is a bright spot at 10.4%, against 21% across the Eastside. Falling home values don't shrink the City's property tax collection, which is set in dollars, but slower sales cut the real estate excise tax, a tax on property sales that pays for park and street projects. The budget plans for this by holding sales tax flat at this year's level and budgeting the real estate tax cautiously at $11 million a year, instead of counting on growth.

  • Federal and state money. A federal rule proposed in May could sharply cut the ambulance payments as early as January 2029. Kirkland has kept that money mostly out of ongoing costs, which limits the damage. A state grant for six police officers hadn't been awarded when the budget was written, and as of October 21 the state had not listed an award for Kirkland; the budget doesn't count on it.

  • The Houghton Village sale. The budget expects the City to sell the Houghton Village shopping center in 2027-2028 and use the money to repay what it borrowed from its own funds to buy the property in 2022. That repayment was first expected in 2025-2026. A sale agreement is on the council's November 17 calendar. If the sale brings in less, the City plans to cover the rest with bonds it already plans to issue for Peter Kirk Pool and the Kingsgate site.

  • A new building to run. The Iceplex community center's finances rest on fees covering more than 67% of operating costs, and the General Fund covers any shortfall. The City calls that estimate conservative, and because the Kraken are paying to build the facility, the City carries no construction debt for it.

By the City's measures, Kirkland isn't in trouble. Still, the 2029-2030 budget starts with less cushion, and this fall's decisions on one-time programs and a possible sales tax will shape how hard it is.

A minimum wage would touch the budget too

The council takes up options for a possible local minimum wage on November 4. Nothing is decided, and the budget includes no cost for one. A local wage would raise pay for many lower-paid workers. It would also reach the City's budget, through the 200 to 300 seasonal workers it hires every summer and the nonprofits it funds. The consultant's white paper, presented October 6, says it did not estimate effects on City finances.

Questions worth asking this fall

  • If the $1.27 million in one-time human services grants isn't renewed in 2029, which programs would shrink?

  • The September grant list showed dollars by program, and staff say past performance was reviewed. Could results be shown program by program?

  • How much of the human services money goes to preventing problems, such as job training, and how much to helping once a crisis hits?

  • Were existing programs reviewed for combining or ending before the City considered new revenue? (The City Manager turned down seven department requests worth $1.6 million, including park security cameras and a speed limit pilot.)

  • How would the council close a 2029-2030 gap of $19.2 million with the sales tax, or $24.3 million without it?

When to weigh in

  • Thursday, October 29, 3 PM: council budget work session.

  • Wednesday, November 4: first public hearing on the budget, plus a hearing on the 2027 property tax levy. Minimum wage options are on the same agenda.

  • Tuesday, November 17: second budget hearing, a study session on the public safety sales tax, and adoption of the 2027 levy.

  • Tuesday, December 8: scheduled adoption of the budget.

Write to the whole council at CityCouncil@KirklandWA.gov, or see our guides to commenting in writing and speaking at a meeting. Dates can shift; our Meetings & Deadlines page is updated every Monday.

Sources & city records

Last updated: October 2026.

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