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Tacoma Business Journal coverage

  • Tacoma’s Mid-Biennium Budget Reset: How the City Closed a $24 Million Gap Without Gutting Public Safety

    Tacoma’s Mid-Biennium Budget Reset: How the City Closed a $24 Million Gap Without Gutting Public Safety

    When the Tacoma City Council gaveled through its Mid-Biennium Budget Modification on October 28, 2025, it did something every business owner in Pierce County understands intuitively: it looked at the books halfway through the cycle, saw that the numbers had moved, and adjusted before the gap got worse. For a $4.7 billion organization, that is not a small course correction. It is the difference between a managed slowdown and a crisis.

    If you run a storefront on Pacific Avenue, manage a warehouse in the Tideflats, or sign the checks for a contracting crew that bids on city work, the way Tacoma balanced its 2025-2026 budget at the midpoint tells you a great deal about the next eighteen months. Here is what actually changed, why it changed, and what it means for the people who keep this city’s economy moving.

    The Numbers Behind Tacoma’s 2025-2026 Budget

    Tacoma operates on a two-year (biennial) budget. The 2025-2026 plan that the Council adopted in December 2024 totaled roughly $4.7 billion across all funds, with about $635 million committed to the General Fund — the discretionary pot that pays for police, fire, parks, libraries, and the day-to-day services residents actually touch.

    That General Fund figure is worth sitting with. At roughly $635 million for the biennium, it represents about a 4% increase over the $615.2 million in the 2023-2024 budget and a 21% jump from the 2021-2022 cycle, according to the city’s Budget in Brief. Spending has been climbing steadily. The question Tacoma had to answer in October was whether revenue could keep pace — and the honest answer was that it could not, at least not without adjustments.

    Why a Mid-Biennium Modification Was Necessary

    Washington cities are required to revisit their budgets at the midpoint of each biennium. But Tacoma’s 2025 modification was driven by more than statutory housekeeping. The city was staring down a structural deficit — the built-in gap between ongoing costs and the revenue that reliably comes in to cover them.

    Reporting from The Center Square pegged that lingering gap at roughly $24 million as the city worked through its planning. To close it, the city leaned on a mix of staff reductions and one-time savings: about $5.6 million was tied to 26 position cuts, most of them filled rather than vacant, with another $1.4 million pulled from projected vacancy savings. Even after those moves, the city still had to identify additional cuts to bring the ledger into balance.

    This is the part local operators should not gloss over. A structural deficit is not a one-time hole you patch and forget. It signals that the city’s baseline obligations — wages, benefits, contracts, debt service — are growing faster than its baseline revenue. When that happens, the pressure does not disappear after one budget cycle. It carries forward, and it shapes how aggressively the city pursues fees, taxes, and code enforcement in the years ahead.

    Where the Money Is Going: Public Safety Leads

    Even with the belt-tightening, Tacoma protected its core. Roughly two-thirds of the General Fund goes to the Police and Fire departments, and the adopted budget added funding to both, according to the city’s budget materials. The mid-biennium modification continued that emphasis, directing money toward public safety, community health, and housing stability while pushing for internal efficiencies elsewhere.

    The city also folded in newer approaches to safety. Alternative response programs — sending the right responder to the right call rather than defaulting to an armed officer for every situation — remained a funded priority, alongside resources for mental health and chemical dependency treatment and enhanced crisis intervention. For business owners in districts that deal with street-level challenges, these programs are not abstractions. They shape how quickly a call gets answered and what kind of help shows up.

    Capital Projects and the Six-Year Horizon

    Tacoma plans its big-ticket investments — road reconstruction, facility upgrades, utility infrastructure — through a six-year Capital Facilities Plan. The 2025-2030 CFP lives inside the larger budget book and represents the city’s long-range bet on where physical investment should flow.

    The mid-biennium modification touched the capital side as well, with the Council adopting both operating and capital budget ordinances to reflect new grants, revised revenue projections, and updated Council priorities. New grant dollars matter enormously here: when the city captures outside funding for a watershed, a corridor, or a facility, those dollars stretch local money further and often open bid opportunities for Pierce County contractors. If your firm does any work that touches public infrastructure, the CFP is the document you should be reading before your competitors do.

    The Liability Fund and Other Quiet Line Items

    Not every budget adjustment grabs headlines, but some carry real weight. Among the larger new expenses in the modification was an additional roughly $8 million directed to the city’s third-party liability fund — the reserve Tacoma draws on to cover claims and settlements against the city. A growing liability reserve is a defensive line item; it reflects either rising claim costs, a deliberate move to shore up reserves, or both. Either way, it is $8 million that cannot go to a new program, and it underscores how much of a modern municipal budget is consumed by obligations that have nothing to do with new services.

    What This Means for Tacoma Businesses

    Strip away the accounting language and a few practical signals emerge for anyone operating in Tacoma or the broader Pierce County market.

    First, revenue pressure tends to flow downhill. When a city faces a structural deficit, it scrutinizes every revenue stream — including the business and occupation (B&O) tax, sales tax remittances, and licensing fees that local employers pay. Tacoma’s combined sales tax rate sits at 10.4% for 2026, near the top of the state. That rate shapes consumer behavior and your margins, and in a tight budget year the city has little appetite for cutting it.

    Second, the public-safety emphasis is a stabilizing signal. A city that protects police, fire, and alternative-response funding even while cutting elsewhere is one that understands a safe commercial district is an economic asset, not a line item to gut. That is a reasonable bet for business owners to factor into their own location and investment decisions.

    Third, the grant-funded capital pipeline is where opportunity lives. The contractors and suppliers who track the Capital Facilities Plan and the city’s active projects portal position themselves for work that the rest of the market only learns about after the bid closes.

    Frequently Asked Questions

    What is Tacoma’s total 2025-2026 budget?

    Tacoma’s 2025-2026 biennial budget totals roughly $4.7 billion across all funds, with approximately $635 million allocated to the General Fund that pays for core services like police, fire, parks, and libraries. The budget was originally adopted by the City Council in December 2024 and modified at the midpoint in October 2025.

    What was the Mid-Biennium Budget Modification?

    It was a set of operating and capital budget ordinances the City Council adopted on October 28, 2025, amending the 2025-2026 budget to reflect updated revenue and expense projections, new grants, and revised Council priorities. The modification emphasized public safety, community services, and infrastructure while addressing the city’s structural deficit.

    How big is Tacoma’s budget deficit?

    The city was working through a structural deficit estimated at roughly $24 million — the gap between ongoing costs and ongoing revenue. To help close it, Tacoma cut about 26 positions (saving roughly $5.6 million) and applied additional one-time savings, while still needing to identify further reductions.

    Did Tacoma cut public safety funding?

    No. Despite the deficit, the city preserved and in some areas increased public safety funding. Roughly two-thirds of the General Fund goes to the Police and Fire departments, and the budget continued investing in alternative response programs and crisis intervention services.

    How can local contractors find Tacoma capital project opportunities?

    Tacoma plans capital investments through its six-year Capital Facilities Plan, available in the city budget book, and publishes active work through its projects portal at projects.tacoma.gov. Monitoring both — along with new grant awards announced in budget modifications — is the most direct way for Pierce County firms to spot upcoming bid opportunities.


    Reporting compiled from City of Tacoma budget documents, the October 2025 Mid-Biennium Budget Modification, and local coverage by The Center Square and Hoodline. Figures reflect the city’s published budget materials as of the 2025-2026 biennium.

  • Tacoma’s Neighborhood Pulse: A New Burger Joint in Stadium, Farmers Markets in Full Swing, and a Packed June Calendar

    Tacoma’s Neighborhood Pulse: A New Burger Joint in Stadium, Farmers Markets in Full Swing, and a Packed June Calendar

    Tacoma’s Neighborhood Pulse: A New Burger Joint in Stadium, Farmers Markets in Full Swing, and a Packed June Calendar

    If you want to know how a city is actually doing, skip the macro headlines for a minute and walk its business districts. Tacoma’s neighborhoods are where the real economy lives — the storefront that just got a fresh coat of paint, the market stall that draws a line by 10 a.m., the festival that fills a park on a Saturday. Heading into summer 2026, those signals are pointing up. A well-known regional burger brand is moving into the Stadium District, both of the city’s flagship farmers markets are back in full rhythm, and the early-June events calendar is dense enough to fill several weekends. Here’s what’s moving on the ground.

    Stadium District Lands Lil Woody’s Burgers & Shakes

    The most concrete neighborhood retail news of the season is the arrival of Lil Woody’s Burgers & Shakes in the Stadium District. The Seattle-born burger brand is taking over the former Harvester Restaurant space at 29 N. Tacoma Ave., bringing its menu of quarter-pound, grass-fed beef burgers — with the trademark cheeky names like The Fig and The Pig and The New Mexican — to one of Tacoma’s most walkable corridors, according to industry outlet What Now Seattle.

    The location matters as much as the name. The Stadium District is exactly the kind of dense, pedestrian-first business district that rewards a casual, fast-casual concept — foot traffic from Stadium High School, the surrounding apartments, and the Wright Park crowd all feed the same few blocks. Filling a previously occupied restaurant space, rather than leaving it dark, is a healthy sign for a corridor. Empty restaurant boxes have a way of dragging down the blocks around them; a new tenant with a regional following does the opposite.

    Why Neighborhood Business Districts Are the Real Tell

    Tacoma formally recognizes a network of neighborhood business districts — Stadium, Sixth Avenue, Proctor, Hilltop, the Dome District, and more — each with its own character and its own merchant base. These districts are where small operators take their shot, and watching which storefronts turn over tells you more about local confidence than almost any single statistic. A burger shop choosing Stadium over a suburban strip is a vote for the walkable-neighborhood model that Tacoma has been leaning into for years.

    Both Flagship Farmers Markets Are Back in Full Swing

    Few things signal neighborhood vitality like a busy farmers market, and Tacoma’s two anchors are both well into their 2026 seasons.

    The Broadway Farmers Market runs Thursdays from 10 a.m. to 2 p.m., April 2 through September 24, 2026, at 925 Broadway between 9th and 11th in downtown Tacoma. This is a milestone year — the market is celebrating its 36th season, making it one of the longest-running community institutions downtown. For office workers, residents of the growing number of downtown apartments, and anyone who works nearby, it’s a midweek ritual.

    Up in the North End, the Proctor Farmers’ Market — billed as Tacoma’s only year-round farmers market — sits at North 27th and North Proctor and runs its regular season Saturdays from 9 a.m. to 2 p.m., April 4 through December 19, 2026, before shifting to a reduced winter schedule into 2027. The Proctor market is woven tightly into the Proctor District’s merchant identity; it’s as much a neighborhood gathering point as a grocery run.

    Both markets accept EBT/SNAP and WIC, which matters in a year when household food budgets remain stretched. A market that takes federal nutrition benefits isn’t just a lifestyle amenity — it’s part of the neighborhood’s food access infrastructure.

    An Unusually Dense Early-June Events Calendar

    The community calendar this June is stacked, and the lineup leans hard into the free, family-friendly, park-based events that define a Tacoma summer.

    Point Defiance Flower & Garden Festival (June 6–7)

    The headline weekend event is the Point Defiance Flower & Garden Festival, returning to Point Defiance Park at 5400 N. Pearl St. on June 6 and 7 with free admission. Parks Tacoma is programming the festival as a full showcase of Pacific Northwest gardening: guided tours of the Japanese Garden, hands-on lectures, food trucks, plant and garden-goods shopping, live music, and ticketed add-ons like a beer-and-wine tasting and a paint-and-sip. For a free gate, it’s a remarkably full day — and it pulls visitors from across the South Sound into one of Tacoma’s signature green spaces.

    Juneteenth Celebration (June 19)

    On June 19, Stewart Heights Park hosts a Juneteenth Celebration featuring live music, entertainment, and more than 100 vendors, per regional event guides including Seattle Refined. A 100-plus-vendor footprint is a meaningful platform for local makers, food entrepreneurs, and community organizations — the kind of event where a side-hustle table can turn into a storefront conversation.

    Looking Ahead to Mid-Summer

    The neighborhood event drumbeat continues past June. MOSAIC: Tacoma’s Arts & Culture Festival lands at Wright Park July 25–26 as a free celebration of traditional dance, music, art, and food. And the North End’s signature street party, the Proctor Arts Fest, returns Saturday, August 1, 2026 — an event that the Proctor District Association says draws roughly 10,000 visitors and around 160 art and craft vendors, with three stages of live music, a kids’ area, a farmers market, and a merchant sidewalk sale. For Proctor’s small businesses, Arts Fest is one of the biggest single-day traffic drivers of the year.

    Reading the Signals: What This Season Says About Tacoma

    Put the pieces together and a picture forms. New retail tenants are choosing dense, walkable districts over the periphery. The two flagship farmers markets are not just surviving but marking anniversaries and holding year-round footprints. The events calendar is leaning into free, vendor-heavy gatherings that double as launchpads for small operators. None of these is a blockbuster on its own. Together, they describe a neighborhood economy that is active, pedestrian-oriented, and still betting on its own main streets.

    Community signal: Local discussion forums such as r/Tacoma and neighborhood Facebook groups remain the fastest place to catch storefront turnover — soft openings, closures, and “what’s going in there?” threads — often weeks before they hit formal channels. We treat those as leads to verify, not confirmed reporting, and we’ll continue to geo-verify each before it lands here.

    Frequently Asked Questions

    What new restaurant is opening in Tacoma’s Stadium District?

    Lil Woody’s Burgers & Shakes, a Seattle-founded burger brand, is opening in the Stadium District at 29 N. Tacoma Ave. in the former Harvester Restaurant space, per What Now Seattle. The menu features quarter-pound, grass-fed beef burgers.

    When does the Broadway Farmers Market run in 2026?

    The Broadway Farmers Market runs Thursdays from 10 a.m. to 2 p.m., April 2 through September 24, 2026, at 925 Broadway between 9th and 11th in downtown Tacoma. 2026 marks its 36th season, according to the Tacoma Farmers Market.

    Is the Proctor Farmers’ Market open year-round?

    Yes. The Proctor Farmers’ Market at North 27th and North Proctor is Tacoma’s only year-round farmers market. Its regular season runs Saturdays 9 a.m. to 2 p.m., April 4 through December 19, 2026, followed by a reduced winter schedule.

    What free community events are happening in Tacoma in June 2026?

    The Point Defiance Flower & Garden Festival (June 6–7 at Point Defiance Park) offers free admission, and a Juneteenth Celebration with 100-plus vendors takes place June 19 at Stewart Heights Park. Details are available through Parks Tacoma.

    When is the 2026 Proctor Arts Fest?

    The Proctor Arts Fest returns Saturday, August 1, 2026, in Tacoma’s Proctor District. The Proctor District Association reports the event typically draws about 10,000 visitors and roughly 160 art and craft vendors.

  • Tacoma Schools Won Their February Levies — But Enrollment and a Recurring Budget Gap Still Set the Terms for 2026-27

    Tacoma Schools Won Their February Levies — But Enrollment and a Recurring Budget Gap Still Set the Terms for 2026-27

    Tacoma Schools Won Their February Levies — But Enrollment and a Recurring Budget Gap Still Set the Terms for 2026-27

    In February, Tacoma voters did something that funding-strapped school districts across Washington can only envy: they said yes, and they said it loudly. Both replacement levy measures on the February 10, 2026 ballot cleared with roughly seven in ten votes — Proposition 1 at 70.8% and Proposition 2 at 69.6%. For a district that has spent three straight years patching multimillion-dollar holes in its operating budget, that vote of confidence matters. But anyone reading the headline as “crisis averted” is reading it wrong.

    The levies kept the lights on. They did not close the structural gap that keeps reopening every spring. And as Tacoma Public Schools heads into its 2026-27 budget cycle, the numbers that will actually decide class sizes, program offerings, and staffing aren’t on the ballot — they’re in the enrollment count and the gap between what Olympia funds and what it actually costs to run a school. Here’s where the district stands, beat by beat.

    What Tacoma Voters Actually Approved in February

    The two measures on the February ballot were replacement levies, not new taxes — the existing levies expire in 2026, and these renew them for another four years. That distinction is the whole ballgame for understanding why they passed so comfortably, and why the district leaned on it so hard in its messaging.

    Proposition 1, the Educational Programs and Operations (EP&O) levy, is the workhorse. According to Tacoma Public Schools, it funds roughly 17% of the district’s operations — including about 500 staff positions — at a rate of $2.23 per $1,000 of assessed value, averaged over four years. This is the money that pays for the things the state’s basic-education formula simply doesn’t cover in full: classroom support staff, athletics, arts, counselors, and the day-to-day operating costs of every neighborhood school.

    Proposition 2, the Technology and Capital Improvements levy, runs at $0.79 per $1,000 of assessed value over the same four years and funds technology access for all K-12 students along with building improvements. For the average Tacoma homeowner, the district projected the renewal cost at roughly $36 a month for the EP&O measure and about $11 a month for the technology measure.

    Both are four-year measures, and both replace levies already on the books — which is why the practical effect of a “yes” vote was continuity rather than expansion. A “no” vote, by contrast, would have pulled 17% of operating revenue out from under a district already running a deficit. The stakes explain the margins.

    The Enrollment Story Behind the Budget

    If you want to understand why Tacoma keeps running deficits despite winning its levies, start with enrollment — because in Washington, state funding follows the student. Fewer students means fewer state dollars, and Tacoma’s enrollment has not fully recovered from the pandemic.

    The district’s pre-pandemic peak was 30,406 students. Enrollment then sank to a low of 28,353 in the 2023-24 school year before rebounding modestly to 29,010 in 2024-25, according to reporting on the district’s budget shortfall. That’s a partial recovery — roughly 1,400 students below the peak — and every one of those missing students represents state revenue the district no longer receives but still carries fixed costs to serve.

    The pressure showed up directly in board action. When the Tacoma School Board met in the fall to place the February levies on the ballot, it was working against an October head count that came in below projections, with a fund balance well under the district’s 5% reserve target. In the same set of actions, the board authorized a $42 million interfund loan — a temporary transfer from the capital projects fund into the general fund — to manage cash flow. That is not the move of a district that has solved its money problem. It’s the move of a district buying time.

    A Budget Gap That Keeps Coming Back

    The recurring nature of Tacoma’s shortfall is the part that deserves attention from anyone who cares about the long-term health of the district. This isn’t a one-time hit from a single bad year. The district faced roughly a $10 million shortfall in 2023-24, a $40 million shortfall in 2024-25, and a $30 million shortfall for 2025-26. Three consecutive years of deficits in the tens of millions is a structural problem, not a cash-flow blip.

    The district’s own explanation points squarely at the state funding model. According to Tacoma Public Schools, 86% of the general budget goes to staff salaries and benefits — but the state provides only about 65% of what those salaries and benefits actually cost. That gap, multiplied across thousands of employees, is the engine of the deficit. Levy dollars help fill it, but state law caps how much districts can raise locally, which is why winning a levy doesn’t make the structural problem disappear.

    The Human Cost of Closing the 2025-26 Gap

    Closing the $30 million gap for the current school year was not painless. An estimated 431 staff — full and part-time — were affected by displacements, program changes, and cuts. More specifically, 107 certificated staff were displaced and reassigned to different roles, 105 provisional certificated staff did not receive contracts for 2025-26, and 12 administrative positions were eliminated, per reporting on the cuts. Every elementary instructional coach was displaced, though those employees remained with the district in reassigned roles.

    Those are the kinds of decisions that don’t show up on a ballot but shape what a classroom feels like — larger caseloads for counselors, fewer coaches supporting new teachers, thinner administrative bandwidth at the building level. The district issued its 2026-27 budget update on April 16, 2026, the next chapter in a process that has become an annual exercise in difficult math.

    The Bright Spot: Graduation Rates Keep Climbing

    It would be easy to read all of this as a district in decline. The graduation data argues otherwise. The Class of 2024 posted an on-time graduation rate of 91.7% — a district record, up 0.6 points from the prior year, according to Tacoma Public Schools. That figure sits comfortably above the Washington state average, a pattern that has held since 2014.

    The community organization Graduate Tacoma, which has tracked the district’s high school graduation data for more than a decade as a community signal alongside the official numbers, frames this as the payoff of a long, coordinated push across schools, nonprofits, and families. The takeaway for parents weighing where to enroll: the financial turbulence at the district office has not, so far, dragged down the outcome that matters most — students crossing the stage on time. For the official, disaggregated numbers by school and student group, the OSPI Washington State Report Card remains the authoritative source.

    What to Watch in the 2026-27 Cycle

    With the levies secured, the variables that will define next year are now mostly out of voters’ hands and back in the district’s. Three things are worth watching. First, the fall enrollment count — if it again lands below projection, the revenue math gets harder regardless of the levy win. Second, whether the district can rebuild its fund balance back toward the 5% reserve target after leaning on a $42 million interfund loan. And third, whether the 2026-27 budget can close its gap without another round of staff displacements on the scale of 2025-26.

    The levy result bought stability for the operating budget. It did not change the underlying equation — a state funding model that covers about two-thirds of salary costs, a local levy cap that limits how much Tacoma can backfill, and an enrollment base still recovering toward its pre-pandemic peak. Those are the terms Tacoma’s schools will be operating under for the next four years, and they’re the numbers worth keeping an eye on long after the February confetti is swept up.

    Frequently Asked Questions

    Did Tacoma’s February 2026 school levies pass?

    Yes. Both measures on the February 10, 2026 ballot passed comfortably. Proposition 1, the Educational Programs and Operations levy, passed with 70.8% approval, and Proposition 2, the Technology and Capital Improvements levy, passed with 69.6% approval. Both are four-year replacement levies that renew measures expiring in 2026.

    How much will the Tacoma school levies cost homeowners?

    Proposition 1 (EP&O) is set at $2.23 per $1,000 of assessed property value, averaged over four years, and Proposition 2 (technology and capital) at $0.79 per $1,000. The district projected the renewal cost to the average Tacoma homeowner at roughly $36 per month for the EP&O measure and about $11 per month for the technology measure.

    Why does Tacoma Public Schools keep facing budget shortfalls?

    The district has faced deficits of roughly $10 million (2023-24), $40 million (2024-25), and $30 million (2025-26). The core driver is that about 86% of the general budget goes to staff salaries and benefits, while the state funds only about 65% of those costs. Declining and slowly recovering enrollment compounds the problem, because Washington funds schools on a per-student basis.

    What is Tacoma Public Schools’ current enrollment?

    Enrollment was 29,010 students in 2024-25, a modest rebound from a pandemic-era low of 28,353 in 2023-24 but still below the pre-pandemic peak of 30,406. A fall head count below projections was one of the pressures that led the school board to approve a $42 million interfund loan and place the February levies on the ballot.

    What is Tacoma Public Schools’ graduation rate?

    The Class of 2024 achieved a record on-time graduation rate of 91.7%, up 0.6 points from the prior year and above the Washington state average — a pattern the district has maintained since 2014. The official, disaggregated figures by school and student group are published on the OSPI Washington State Report Card.

  • Tacoma’s $320 Million Street Levy Heads to August Ballot: What the Connect Tacoma Vote Means for Local Businesses

    Tacoma’s $320 Million Street Levy Heads to August Ballot: What the Connect Tacoma Vote Means for Local Businesses


    The Vote That Sets Up August’s Biggest Local Decision

    On April 14, 2026, the Tacoma City Council voted unanimously to place the Connect Tacoma: Safe Streets and Sidewalks levy on the August 4 primary election ballot. The measure asks Pierce County voters to authorize a 10-year, approximately $320 million infrastructure investment — the city’s most ambitious transportation funding push since the now-expired Tacoma Streets Initiative.

    If it passes, Connect Tacoma reshapes the physical fabric of the city. If it fails, Tacoma faces a growing backlog of deferred maintenance on roads and sidewalks with no dedicated replacement funding in sight. For local business owners, property owners, and anyone who moves goods or customers through Tacoma streets, this vote is worth understanding before ballots arrive in July.

    What Exactly Is on the Ballot

    The levy is structured around two overlapping revenue mechanisms. The first is a property tax levy-lid lift of 20 cents per $1,000 of assessed value — roughly $101.52 per year for the average Tacoma homeowner. The second is a 1.5 percent Gross Earnings Tax (GET) applied to natural gas, electric, and telephone utility providers, costs that utilities pass through to ratepayers at an estimated $23.64 annually for a typical household.

    Together these mechanisms are projected to generate approximately $20 million per year in dedicated street funding. Combined with anticipated federal grants and regional partnership contributions, the city projects a total program value of $320 million over 10 years — roughly $32 million annually flowing into Tacoma’s transportation infrastructure.

    The council’s April study session and formal vote were unanimous, a rare alignment signaling broad political consensus. Councilmembers framed Connect Tacoma as the direct replacement for the Tacoma Streets Initiative, the prior voter-approved levy that has since expired and left a dedicated funding gap in the city’s transportation budget.

    How the Money Gets Spent

    The $320 million program divides into three investment categories, each with a defined share of total funding.

    Safe Streets for Everyone — $159 Million (50%)

    Half the levy targets safety: dangerous intersection redesigns, pedestrian crossings, school zone infrastructure, and high-injury corridor improvements. Tacoma has documented corridors — including stretches of Pacific Avenue, 6th Avenue, and South Tacoma Way — where crash rates and pedestrian injuries consistently exceed city and state averages. This is where the most visible physical changes would occur.

    Better Neighborhood Streets — $85 Million (26%)

    This category covers arterial and residential street repair: pavement resurfacing, pothole elimination, and ADA-compliant curb ramp upgrades. For business districts in Hilltop, the Dome District, and East Tacoma, this is the bucket most directly tied to daily customer access and freight movement.

    Improved Connections — $76 Million (24%)

    The remaining quarter funds multimodal infrastructure: sidewalk gap closures, protected bike lanes, and transit access improvements. This work connects neighborhoods to the T Line, Sound Transit infrastructure, and the broader Pierce Transit network — all of which affect workforce access in a metro area where not every employee drives.

    The Business Case For and Against

    Proponents — including Mayor Anders Ibsen’s office and the full council — argue the math is straightforward. Deferred street maintenance doesn’t disappear; it compounds. Industry estimates consistently show that a dollar spent on preventive pavement maintenance saves four to seven dollars in future reconstruction costs. With Tacoma’s street condition index declining in areas that haven’t seen levy-funded work in years, the cost of inaction is measurable.

    For business owners specifically, road quality translates directly to delivery reliability, customer experience, and employee commute friction. Tacoma’s manufacturing and logistics sector — anchored in Frederickson and the Tideflats Manufacturing and Industrial Center — depends on trucks moving efficiently on city arterials connecting to SR-167, I-5, and the Port of Tacoma. Deteriorated streets mean vehicle wear, delivery delays, and liability exposure for fleet operators.

    The case against centers on cost and accountability. Critics note that the utility GET adds to a growing stack of recent municipal cost increases — including the 0.1% criminal justice sales tax (Ordinance 29087) that took effect April 1, 2026, pushing Tacoma’s total sales tax rate to 10.4%. Some residents and small business advocates argue the city needs better demonstrated project delivery before asking for another decade of dedicated revenue.

    Community signal from Tacoma-area forums reflects this tension: residents express genuine support for fixing streets while voicing skepticism about whether project prioritization will reach their neighborhood’s most urgent needs first.

    Context: Tideflats Growth Raises the Infrastructure Stakes

    The levy’s timing isn’t incidental. Tacoma’s Tideflats Subarea Plan — adopted by the council in December 2025 and effective January 5, 2026 — has unlocked new development frameworks for one of Washington’s most critical industrial zones. With approximately 9,800 employees and the highest concentration of manufacturing and industrial activity in Pierce County, the Tideflats is on the cusp of significant redevelopment pressure.

    New zoning districts, updated use allowances, and revised shoreline standards under Ordinances 29075, 29076, and 29077 all point toward increased freight movement, new industrial build-out, and more workers moving through the corridor. The arterials serving the Tideflats — East D Street, Portland Avenue, the 11th Street Bridge approach — are precisely the infrastructure that Connect Tacoma would need to prioritize to keep pace with industrial growth. The city is, in effect, rezoning for growth and simultaneously asking voters to fund the streets that growth requires.

    Mayor Ibsen’s Infrastructure Posture

    Mayor Anders Ibsen, sworn in at the first council meeting of 2026 after defeating incumbent councilmember John Hines, has made infrastructure investment a stated priority alongside public safety, housing production, and regional homelessness response. His office has framed Connect Tacoma as consistent with a “data-driven” and “results-focused” approach to city operations — language Ibsen has used repeatedly since taking office in January.

    The unanimous council vote to place the levy on the ballot is the clearest legislative signal yet of where the new administration’s infrastructure priorities land. Whether voters agree will be known on August 4.

    What to Watch Between Now and August 4

    The levy campaign enters its active phase in coming weeks. Key things to monitor:

    • Project prioritization details. The levy framework references safety data and equity criteria, but specific project lists haven’t been published. Community engagement sessions will be where those lists face public scrutiny.
    • Business community positioning. The Tacoma-Pierce County Chamber and allied organizations have historically weighed in on infrastructure measures. Their formal positions will shape the organized business community’s voice.
    • Council community forum testimony. The Tacoma City Council holds community forums on the second and fourth Tuesday of each month at the end of the regular meeting (5 p.m. at Tacoma Municipal Building). Written comments can be submitted to cityclerk@cityoftacoma.org at least 24 hours before any meeting.
    • Ballot logistics. Ballots for the August 4 primary mail in late July. Pierce County operates 28 drop box locations. Voters not yet registered should check the Pierce County Elections registration deadline.

    Frequently Asked Questions

    What is the Connect Tacoma: Safe Streets and Sidewalks levy?

    Connect Tacoma is a 10-year, $320 million transportation levy placed on the August 4, 2026 primary ballot by the Tacoma City Council. If approved by voters, it funds street repairs, sidewalk improvements, and multimodal infrastructure projects across the city, replacing the expired Tacoma Streets Initiative.

    How much will the Connect Tacoma levy cost property owners?

    The levy adds a property tax rate of 20 cents per $1,000 of assessed value — roughly $101.52 per year for the average Tacoma homeowner — plus a 1.5% Gross Earnings Tax on utility providers, adding about $23.64 annually for a typical household.

    When will Tacoma residents vote on the Connect Tacoma levy?

    The levy is on the August 4, 2026 Pierce County Primary Election ballot. Ballots are mail-in, with 28 drop box locations across Pierce County.

    What happens if the levy fails?

    Without levy funding, Tacoma’s street repair backlog grows with no dedicated replacement revenue. The prior Tacoma Streets Initiative has expired, leaving a significant gap. City officials warn that deferring maintenance multiplies long-term costs and leaves dangerous intersections and sidewalk gaps unaddressed.

    Which Tacoma neighborhoods and streets would get funded first?

    The $320M program splits into Safe Streets for Everyone ($159M, 50%), Better Neighborhood Streets ($85M, 26%), and Improved Connections ($76M, 24%). Specific project prioritization follows safety data, traffic volumes, and equity criteria outlined in the levy framework.

  • Tacoma’s 2026 Code Update Cleared Its Council Hearing: What the New Zoning Rules Mean for Day Cares, Shelters, and Builders

    Tacoma’s 2026 Code Update Cleared Its Council Hearing: What the New Zoning Rules Mean for Day Cares, Shelters, and Builders

    Most of what City Hall does to your business does not happen with a ribbon cutting. It happens in a stack of code amendments that move through the Planning Commission, land on the City Council’s desk, and quietly change what you can build, where you can build it, and how long your permit stays alive. Tacoma’s 2026 Annual Amendment to the One Tacoma Comprehensive Plan and Land Use Regulatory Code is exactly that kind of package, and it just cleared its City Council public hearing on Tuesday, May 19, 2026. It is now in front of the Council for final adoption.

    If you run a day care, develop housing, operate a shelter, or own land on the city’s edge, this is the document that matters more than the next press release. Here is what is in it, in plain English, and what each piece means for operators in Tacoma and Pierce County.

    What the 2026 Annual Amendment Actually Is

    Every year, Tacoma runs an Annual Code Update through its Planning and Development Services department. It is the city’s regular, predictable channel for changing the Comprehensive Plan (the long-range policy map) and the Land Use Regulatory Code in Title 13 of the Municipal Code (the rules that actually govern permits). Applications can come from city staff, the Planning Commission, or the public.

    The 2026 cycle bundles several separate applications into one amendment package. The Planning Commission held its own informational meeting and public hearing earlier in the year, took written comment through early March, and then forwarded its recommendations to the City Council. The Council took public testimony at its May 19 public hearing and is now positioned to vote on adoption. You can follow the legislative record and final vote through the city’s Legistar portal.

    The takeaway: this is not a proposal floating in a think tank. It has cleared the public-comment stages and is at the last gate before it becomes enforceable code.

    The Proposals, One at a Time

    Special Needs Housing: Permanent Shelters Move Into Hotel Zones

    The most consequential business change in the package is the Special Needs Housing application. It does three things at once. First, it allows permanent shelters in the same zoning districts that already permit hotels. Second, it reorganizes the code standards for temporary shelters. Third, it consolidates the city’s various special needs housing classifications and streamlines the Conditional Use Permit process for them.

    For operators, the headline is the hotel-zone alignment. If a parcel is already zoned to allow a hotel, the city is signaling that a permanent shelter belongs in the same conversation. That widens the map of where behavioral health providers, nonprofits, and assisted-living operators can site facilities, and it reduces the discretionary permitting friction that has historically made these projects slow and uncertain. The city has framed this as making shelter and enhanced service facilities accessible across more of Tacoma rather than concentrating them, according to the city’s own announcement of the 2026 code modernization proposals.

    Day Care Facilities: No More Conditional Use Permit in Urban Residential Zones

    This one is a direct win for child care operators and for the working parents who depend on them. Under the amendment, day care facilities would be permitted outright in the Urban Residential zones (UR-1, UR-2, and UR-3) without first having to secure a Conditional Use Permit, and earlier enrollment caps tied to those zones are being eased.

    A Conditional Use Permit is not a rubber stamp. It means a public hearing, staff review, neighbor notification, and the real possibility of conditions or denial. Removing that requirement in residential zones cuts months and meaningful cost out of opening or expanding a licensed day care. In a region where child care supply is one of the hardest constraints on the labor market, the city is treating day care as a by-right residential use rather than a special exception. If you have been sitting on a child care expansion because of the permitting overhead, this changes your math.

    Binding Site Plans: The Permit Clock Doubles to Ten Years

    For developers, the quietest line in the package may be the most valuable. The amendment extends the permit expiration window for binding site plans tied to multi-dwelling residential subdivisions from five years to ten years.

    Binding site plans are the mechanism used to divide land for multi-building residential projects. A five-year clock has been a real problem in a market where financing, infrastructure, and construction timelines routinely stretch past five years, especially through a high-interest-rate cycle. Doubling the window to ten years gives a project room to phase, to wait out capital markets, and to avoid re-permitting an entitlement you already earned. It is a low-drama change that materially de-risks larger residential development.

    McKinley Avenue Pre-Annexation: Zoning the City’s Edge Before It Joins

    The package also sets pre-annexation land use designations for roughly seven acres along McKinley Avenue East, at parcels in the 8600 to 8800 block (addresses including 8615, 8717, and 8801 McKinley Ave E). The proposal would apply a Low-Scale Residential designation in the Comprehensive Plan and Urban Residential-1 (UR-1) zoning if and when those properties are annexed into the city.

    Pre-annexation planning is the city deciding in advance what the rules will be, so that property owners and the city are not negotiating zoning from scratch at the moment of annexation. For anyone holding or eyeing land on Tacoma’s northeastern fringe, it removes a layer of uncertainty about future use.

    Minor Plan and Code Amendments: The Cleanup

    Finally, the package includes a set of minor technical revisions across Title 13 to correct inconsistencies, fix errors, and clarify regulatory language. These are not glamorous, but they are the kind of fixes that prevent a permit from getting hung up on a contradictory code section. If you have ever had a project stall because two parts of the code said different things, you understand why this matters.

    What It Means for Operators, Developers, and Residents

    Read together, the 2026 amendment leans in one consistent direction: less discretionary friction, more by-right certainty. The city is removing Conditional Use Permit hurdles for day care, aligning shelters with existing hotel zoning, and giving residential developers a longer runway. For an operator, the practical effect is fewer public hearings standing between you and a use the code already contemplates.

    That cuts both ways for residents. By-right approvals mean less neighborhood input on individual day care or shelter sitings, because the discretionary hearing that used to be the venue for that input is being removed. The trade is faster, more predictable development against fewer case-by-case veto points. Whether that is good policy depends on where you sit, but it is the bargain the package makes.

    One caution worth stating plainly: until the Council formally adopts the ordinance and it takes effect, none of this is enforceable. Do not file a permit assuming the new rules are live. Confirm the effective date first.

    Where It Stands and How to Track It

    As of early June 2026, the Planning Commission has forwarded its recommendation, the Council has held its May 19 public hearing, and the package is in final consideration. The next milestone is the Council’s adoption vote and the ordinance’s effective date. The authoritative places to watch are the city’s Annual Code Update page for the substance and the Legistar legislative portal for the vote, ordinance number, and effective date. For the actual code text once it is adopted, the Tacoma Permits land use code library is where the changes will land.

    Frequently Asked Questions

    Has the Tacoma City Council already adopted the 2026 code amendments?

    Not as a final ordinance yet. The Council held its public hearing on the 2026 Annual Amendment on May 19, 2026, and the package is in final consideration. The adoption vote and the ordinance’s effective date are the next steps. Track them on the city’s Legistar portal before relying on any of the new rules.

    Do I still need a Conditional Use Permit to open a day care in a Tacoma residential zone?

    Under current code, yes, in many cases. The 2026 amendment proposes to remove the Conditional Use Permit requirement for day care facilities in the Urban Residential zones UR-1, UR-2, and UR-3, and to ease enrollment caps there. Once adopted and effective, day care would be a permitted use in those zones without a CUP. Confirm the effective date with Planning and Development Services before filing.

    What changes for shelter and special needs housing operators?

    The amendment would allow permanent shelters in the zoning districts that already permit hotels, reorganize the temporary shelter standards, and streamline the Conditional Use Permit process for special needs housing. In short, it widens where these facilities can locate and reduces the discretionary permitting burden.

    Why does the binding site plan change matter to developers?

    The amendment extends the permit expiration window for binding site plans on multi-dwelling residential subdivisions from five years to ten years. That gives larger, phased residential projects more time to secure financing, build infrastructure, and complete construction without losing and re-applying for an entitlement they already earned.

    Where can I read the official documents and follow the final vote?

    Start with the City of Tacoma Annual Code Update page for the proposals and staff materials, and use the Legistar portal at cityoftacoma.legistar.com for the agenda, public hearing record, adoption vote, ordinance number, and effective date. Adopted code text appears in the Tacoma Permits land use code library and in Title 13 of the Tacoma Municipal Code.


  • Pierce County Sheriff Budget 2026: $406M Record & 15.8% Deputy Raise

    Pierce County Sheriff Budget 2026: $406M Record & 15.8% Deputy Raise

    The Pierce County Sheriff’s Department is operating on the largest budget in its history and, after more than a year of stalled negotiations, its deputies have won a substantial pay raise through binding arbitration. Both developments land at the same time, and both are aimed at the same stubborn problem: a staffing shortage that county leaders, the sheriff, and the deputies’ union all agree has stretched patrol coverage thin across Pierce County’s rural and suburban reaches.

    Here is what the public record shows about the money, the vacancies, and the fight over deputy pay heading into the summer of 2026.

    A record budget built around public safety

    When the Pierce County Council adopted its 2026-2027 biennial budget, it funded the Sheriff’s Office at the highest level the department has ever seen. Including the Corrections Bureau, the office’s two-year budget is roughly $406 million, an increase of about $25.7 million over the prior biennium, according to county budget documents and reporting by Gig Harbor Now.

    That figure reflects a broader county priority. Public safety accounts for roughly 77 percent of Pierce County’s general spending, and the Sheriff’s Office and its Corrections Bureau consume more than 40 percent of that public safety share. In other words, no single function commands more of the county’s discretionary dollars than the sheriff and the jail.

    Yet a bigger budget has not, by itself, put more deputies on the road. County officials have been candid that the new money was structured to first stabilize the existing workforce before adding new positions, a sequencing decision that shaped much of the past year’s debate.

    The vacancy problem, by the numbers

    According to the arbitration ruling issued this spring, the Sheriff’s Office had 40 vacant deputy positions at the beginning of March 2026. That is not a small gap for an agency responsible for unincorporated Pierce County, where patrol detachments cover the Gig Harbor Peninsula, the Foothills, the Mountain detachment, and other rural areas that can sit far from the nearest available unit.

    The shortage did not appear overnight. During the 2024-2025 budget cycle, the county eliminated 21.9 full-time-equivalent positions, all of them vacant at the time, a move that trimmed the payroll on paper but left the department with fewer funded slots to grow back into. Councilmember Dave Morell summarized the longer arc bluntly, noting that in his time on the council, “we’ve never filled our positions.”

    To keep minimum staffing on every shift, the agency has leaned heavily on mandatory overtime, a practice that union leaders argue accelerates burnout and pushes experienced deputies toward the exits. Before the contract was settled, the guild reported that roughly 11 additional deputies were already planning to leave.

    Why deputies were leaving

    The central driver, the guild argued throughout negotiations, was pay. Deputies’ wages were reported to be 30 to 35 percent behind the Tacoma Police Department, and most departments in the county started new officers at least $5 an hour higher than Pierce County. Neighboring Clark County’s starting pay ran about 12 percent above Pierce. A qualified Pierce County deputy, the union contended, could earn as much as 30 percent more simply by transferring to another agency, a dynamic deputies described as a “death spiral” of departures.

    Inside the arbitration award

    Contract talks between County Executive Ryan Mello’s office and the Pierce County Deputy Sheriffs’ Independent Guild, Local 1889, dragged on for more than a year before reaching binding interest arbitration. The two sides were far apart. The county’s offer landed around 6.5 percent over three years, while the guild sought 25 percent over the same period. In a June membership vote, deputies rejected an earlier county offer by a margin of 290 to 1.

    The arbitrator’s decision, reported in early May 2026, awarded deputies roughly 15.8 percent over three years, covering January 2025 through January 2027 and including back pay. That is more than double what county leaders had put on the table. The award also added education incentives, 2 percent for an associate’s degree and 4 percent for a bachelor’s degree, and allowed deputies to accrue up to 80 hours of compensatory time for overtime.

    The arbitrator did not frame pay as the only issue. The ruling concluded that while wages were not the sole retention problem, “the simple fact” was that the county’s compensation offer was insufficient and would hinder recruitment and retention. The decision pointed to testimony from the department’s recruiting staff that candidates had withdrawn from the hiring process citing the financial gap with other agencies.

    Sgt. Shaun Darby, president of the guild, called the award a substantial increase, especially for new recruits, while cautioning that it does not solve the entire staffing and retention picture. “It’s a start,” he said.

    The recruiting and retention push

    Money settled in arbitration is only one lever. The Sheriff’s Office has paired the new wage scale with an aggressive package of hiring and retention incentives, including:

    • A $10,000 hiring incentive for entry-level deputy sheriff and corrections deputy new hires.
    • A $25,000 incentive for lateral deputy and lateral corrections deputy hires who come in with prior experience.
    • A $12,000 incentive for corrections deputies converting to the deputy sheriff track.
    • A $5,000 referral bonus.
    • A one-time $5,000 retention bonus, approved in December 2025, for deputies with at least 90 days of service, totaling about $1.5 million.

    Undersheriff Cyndie Fajardo has described recruiting as “a national endeavor,” reflecting how widely the agency is casting for candidates in a market where every Washington department is competing for the same pool. The department has also signaled it is investing in a marketing program it believes will meaningfully lift the number of applicants who give Pierce County a serious look.

    What happens next on staffing

    The Sheriff’s Office had asked the council to restore 12 deputy positions and two patrol sergeants assigned to swing shifts, the slots most directly tied to filling out thin rural and overnight coverage. For now, leadership is deferring those additions until existing vacancies are filled, reasoning that authorizing positions the department cannot staff would not put more deputies on the street.

    The council, for its part, held off finalizing the staffing side of the budget until the union contract was resolved, since labor costs drive the math on how many positions the county can sustainably fund. With arbitration now concluded, council members including Robyn Denson, who has pressed the case that “all of our rural detachments are very low-staffed,” have signaled a willingness to revisit the staffing request through a budget amendment.

    The open question is whether the new pay scale and incentives slow the departures enough to let recruiting gain ground. Det. Sgt. Brad Van Dyke and the background and recruiting unit now have a more competitive offer to make, but hiring, backgrounding, and academy training take many months, meaning the staffing relief, if it comes, will arrive gradually rather than all at once.

    The bottom line

    Pierce County has put record dollars behind its Sheriff’s Office and, through arbitration, closed a meaningful share of the pay gap that deputies blamed for the exodus. Whether that combination reverses the staffing slide will not be clear until the next round of hiring numbers comes in. For residents in the county’s rural detachments, the practical measure is simpler than any budget line: how long it takes for a deputy to arrive when they call.

    Related Reading

    Frequently Asked Questions

    How big is the Pierce County Sheriff’s Department budget for 2026-2027?

    The Sheriff’s Office, including its Corrections Bureau, is funded at roughly $406 million for the 2026-2027 biennium, an increase of about $25.7 million over the previous two-year budget. County officials have called it the largest budget in the department’s history.

    How many deputy positions are vacant in Pierce County?

    According to the spring 2026 arbitration ruling, the Sheriff’s Office had 40 vacant deputy positions at the beginning of March 2026. The department has relied on mandatory overtime to maintain minimum staffing across its patrol detachments.

    What pay raise did Pierce County deputies receive?

    A binding arbitration award reported in early May 2026 granted deputies roughly 15.8 percent over three years, covering January 2025 through January 2027 with back pay. The union had sought 25 percent; the county had offered about 6.5 percent.

    What hiring incentives is the Pierce County Sheriff’s Office offering?

    The office is offering a $10,000 incentive for entry-level deputy and corrections deputy hires, $25,000 for lateral hires with prior experience, $12,000 for corrections deputies converting to deputy sheriff, a $5,000 referral bonus, and a one-time $5,000 retention bonus for deputies with at least 90 days of service.

    Why has Pierce County struggled to keep deputies?

    The deputies’ guild attributed departures largely to pay. Pierce County wages were reported to be 30 to 35 percent behind the Tacoma Police Department, and deputies could often earn significantly more by transferring to neighboring agencies. The arbitrator found the county’s compensation offer insufficient to support recruitment and retention.


  • Tacoma Power’s Clean Energy Buildout: Cushman II Turbines, EV Charging Expansion, and the Green Hydrogen Rate Reshaping Pierce County

    Tacoma Power’s Clean Energy Buildout: Cushman II Turbines, EV Charging Expansion, and the Green Hydrogen Rate Reshaping Pierce County

    If you spend any time tracking Pierce County’s economic development conversations, you’ll notice that Tacoma Power keeps coming up — not just as a utility, but as an active player in where jobs land, which industrial tenants choose Tacoma, and how the city positions itself inside Washington’s accelerating clean energy mandate. In 2026, that role is getting harder to ignore.

    Three concurrent initiatives are reshaping what Tacoma Power looks like heading into the next decade: a major turbine refurbishment at the Cushman II hydroelectric facility that will keep the dam running for another century, an EV charging buildout targeting 85 public ports by year-end, and a first-in-the-nation green hydrogen tariff that has put Tacoma on the radar of electrolysis companies from Europe to the Pacific Rim. Each thread is worth pulling on independently. Together, they tell a story about a municipal utility actively engineering its future rather than waiting for state policy to dictate it.

    Cushman II: A 96-Year-Old Dam Gets a 100-Year Extension

    The Cushman II hydropower plant sits in Mason County, just west of the Pierce County line on the Skokomish River system — close enough that Tacoma residents have been drawing power from it since 1930. The facility’s three turbine-generator units produce a combined 81 MW, enough renewable electricity to serve approximately 40,500 Northwest homes. That output has been reliable, but the hardware is aging. Tacoma Power moved to address that head-on.

    In late 2023, Tacoma Power selected GE Vernova’s Hydro Power business to refurbish two of the three 27 MW turbine-generator units. The scope covers new generator stators, refurbishment of rotor poles and shaft thrust bearings, replacement of turbine distributors, and rehabilitation of the turbine runners and draft tubes. As of mid-2026, the project remains on schedule for completion this year, according to public reporting from Renewable Energy World and the American Public Power Association.

    The expected outcome: increased availability and reliability at a plant that provides the foundational renewable generation underpinning Tacoma Power’s carbon-free supply mix. Hydroelectric power already constitutes the overwhelming majority of Tacoma Power’s generation portfolio — a structural advantage that becomes more valuable as Washington’s Clean Energy Transformation Act tightens requirements on utilities statewide.

    Why Dam Maintenance Is a Business Story, Not Just an Engineering One

    Every megawatt-hour that Cushman II produces is a megawatt-hour Tacoma Power doesn’t have to source from the market. For industrial customers — the manufacturers, data centers, and electrolysis operators the city is actively recruiting — rate stability is a primary site-selection criterion. A more reliable Cushman II means a more predictable cost base for everyone on the system. For Pierce County economic development, that’s not a footnote. It’s a selling point.

    EV Charging: 85 Ports and a Rebate Program Worth Understanding

    Washington’s electric vehicle adoption rate ranks among the highest in the nation, and Pierce County’s charging infrastructure is scrambling to keep pace. Tacoma Power is targeting 85 public charging ports by the end of 2026, including additions to its DC Fast Charging network — stations capable of adding 100+ miles of range in roughly 20 minutes.

    The buildout is complemented by one of the more thoughtfully designed utility rebate programs in the state. Through Tacoma Power’s Community EV Charging Rebate, businesses and multifamily property owners installing Level 2 networked chargers can receive $5,000 per port, capped at $50,000 per project. Projects in designated underserved or overburdened areas qualify for enhanced incentives: $10,000 per port, up to $70,000 total. The equity lens embedded in that tiered structure reflects both federal program requirements and a genuine local priority — parts of South Tacoma and East Tacoma have historically been underserved by charging infrastructure despite high rates of commuter vehicle dependency.

    Non-networked Level 2 chargers remain eligible for a $2,000 per-port rebate, capped at $15,000. Tacoma Power also covers utility infrastructure upgrade costs up to $10,000 for networked projects or $7,000 for non-networked ones — a detail that matters for older commercial properties where panel capacity is the real barrier to charger installation.

    Residential Customers Are In the Mix Too

    For Tacoma Power residential customers, the rebate structure is simpler: up to $600 in bill credits for installation of a qualifying Level 2 charger, smart splitter, or 240-volt outlet. Paired with Washington’s existing sales tax exemption on EV purchases and federal IRA incentives, the stacked value proposition for a Pierce County resident going electric in 2026 is meaningfully better than it was two years ago.

    One note: as of this writing, the Community EV Charging Rebate program’s funding is temporarily paused, but Tacoma Power is accepting applications in priority order for when funding resumes. If you’re a business or property manager planning an installation, getting your application in now preserves your place in line.

    The Green Hydrogen Tariff: Tacoma’s National First Is Still Drawing Interest

    Of all Tacoma Power’s clean energy programs, the electrofuels tariff is the one that generates the most interest from outside Pierce County. When the utility’s board approved the rate in December 2020 and it went into effect in April 2021, Tacoma Power became the first consumer-owned utility in the United States to offer a rate specifically designed for green hydrogen producers.

    The mechanics are straightforward. Industrial customers operating electrolyzers — equipment that uses electricity to split water into hydrogen and oxygen — can access a discounted energy rate of $0.033147/kWh and a demand rate of $5.72/kW-month, plus a monthly administrative charge of $7,445. In exchange, Tacoma Power reserves the right to curtail service up to 1,300 hours per year — about 15% of annual hours — with just 10 minutes’ notice.

    That interruptibility is the key. Green hydrogen production via electrolysis is inherently flexible: you can dial it up when cheap, surplus hydroelectric power is available and ramp it down when the grid is constrained. From Tacoma Power’s perspective, it’s demand response at industrial scale. From an electrolyzer operator’s perspective, it’s access to some of the cleanest and most affordable power in the country, from a utility whose generation is overwhelmingly carbon-free.

    According to Utility Dive, since the tariff launched Tacoma Power has fielded numerous inquiries from domestic and international companies considering locating electrolysis operations in its service territory. The Blue Sky Maritime Coalition has also flagged Tacoma’s green hydrogen potential in the context of decarbonizing Puget Sound ferry and port operations — a use case that would put Pierce County at the intersection of maritime decarbonization and clean power production.

    Why the Rate Structure Matters for Pierce County Jobs

    An electrolyzer operation large enough to be commercially meaningful might draw 10–50 MW continuously. At Tacoma Power’s electrofuel rate, that’s a significantly lower operating cost than what industrial customers pay in most U.S. markets — and the power comes from a utility whose carbon intensity is near zero. For companies with clean-fuel mandates from European automotive OEMs, aerospace supply chains, or Port of Tacoma shipping customers, that combination is genuinely differentiated.

    The Port of Tacoma handled over 2.6 million TEUs in recent years and sits adjacent to one of the only U.S. utility territories with a purpose-built green hydrogen industrial rate. The alignment between Tacoma Power’s tariff structure and the port’s long-term decarbonization obligations deserves more local attention than it typically receives.

    Washington’s Clean Energy Mandate and Tacoma Power’s Compliance Roadmap

    Washington’s Clean Energy Transformation Act requires all utilities to eliminate coal power by 2025 and achieve 100% clean electricity by 2045. For most utilities in the state, that’s a heavy lift. For Tacoma Power, it’s closer to a formality — the utility’s hydroelectric-dominated generation mix is already more than 90% carbon-free.

    That doesn’t mean there’s no work ahead. Tacoma Power is currently developing its 2026 Integrated Resource Plan, a 20-year roadmap required under state law that guides resource investment decisions. The IRP will determine how Tacoma Power balances load growth from electrification — EVs, heat pumps, potential hydrogen facilities — against its existing hydro resource base and any new generation it needs to acquire. Rate adjustments effective April 1, 2026 reflect the cost pressures of that transition; Tacoma Power’s board-approved rate schedule is publicly available through mytpu.org.

    Community Solar: The Gap Between Potential and Availability

    One area where Tacoma Power has room to grow is community solar — shared programs that allow renters and homeowners without suitable rooftops to subscribe to a portion of an off-site solar array and receive bill credits. Tacoma Power’s original offering, launched in 2016 with 300 kW across four arrays on the TPU campus, sold out quickly — a clear signal of unmet demand.

    Washington State’s Community Solar Expansion Program has since reached $25 million in obligated funding for the FY2026–FY2029 biennium, per Washington State Department of Commerce reporting, creating financial pathways for utilities to expand shared solar access. For a city with a significant renter population and substantial multifamily housing stock, community solar is one of the cleaner equity tools available. Whether Tacoma Power moves aggressively on that opportunity in the next IRP cycle will be worth watching.

    The Bigger Picture: Tacoma Power as Economic Development Asset

    Municipal utilities don’t often get framed as economic development assets, but Tacoma Power increasingly functions as one. The combination of low-carbon hydroelectric power, a first-in-the-nation green hydrogen tariff, competitive industrial rates, and an EV infrastructure buildout gives Pierce County something genuinely differentiated to market to site selectors and clean-industry investors.

    The Cushman II refurbishment isn’t just about keeping the lights on — it’s about preserving the generation reliability that makes the electrofuel rate credible to international industrial customers evaluating a 20-year facility investment. The EV charging buildout isn’t just about convenience — it’s about making Tacoma a viable destination for a workforce that is increasingly buying electric vehicles and expects charging at work, at multifamily housing, and at transit nodes.

    These programs don’t exist in isolation. They’re threads in the same fabric, and Tacoma Power is one of the quieter but more consequential institutions weaving them together.


    Frequently Asked Questions

    What is Tacoma Power doing to upgrade its hydroelectric dams in 2026?

    Tacoma Power selected GE Vernova to refurbish two of the three 27 MW turbine-generator units at the Cushman II hydropower plant in Mason County. The work — covering new generator stators, refurbished rotor poles, new turbine distributors, and draft tube rehabilitation — is expected to complete in 2026 and extend the plant’s operational life by 100 years while improving reliability for the 81 MW facility.

    How is Tacoma Power expanding EV charging infrastructure in Pierce County?

    Tacoma Power is on track to reach 85 public charging ports by end of 2026, including new DC Fast Charging stations. Through its Community EV Charging Rebate program, businesses and multifamily properties can receive up to $5,000 per networked Level 2 port ($10,000 per port in designated underserved areas), with project caps up to $70,000. Residential customers can claim up to $600 in bill credits for L2 charger installations.

    What is Tacoma Power’s green hydrogen interruptible rate and how does it work?

    Tacoma Power launched the nation’s first electrofuels tariff in April 2021. It offers green hydrogen producers a discounted energy rate of $0.033147/kWh (roughly 15% below standard industrial rates) in exchange for allowing Tacoma Power to curtail service up to 1,300 hours per year — about 15% of annual hours — with just 10 minutes’ notice. This lets Tacoma Power dispatch around grid constraints while attracting clean-fuel industrial customers.

    Is Tacoma Power on track to comply with Washington’s Clean Energy Transformation Act?

    Tacoma Power is currently developing its 2026 Integrated Resource Plan (IRP), a 20-year roadmap guiding investment in energy resources aligned with Washington’s Clean Energy Transformation Act, which requires utilities to eliminate coal power by 2025 and achieve 100% clean electricity by 2045. Tacoma Power’s predominantly hydroelectric generation base — over 90% carbon-free — gives it a significant compliance head start compared to most utilities in the state.

    Does Tacoma Power offer a community solar program for residents who can’t install rooftop solar?

    Tacoma Power has offered community solar since 2016, when its initial 300 kW sold out quickly. Washington State’s Community Solar Expansion Program reached $25 million in obligated funding for FY26–FY29, creating additional pathways for shared solar subscriptions for renters and homeowners who cannot host rooftop panels.


    Related Reading

  • Port of Tacoma in 2026: Tariff Headwinds, Rail Resilience, and What the Numbers Actually Mean for Pierce County

    Port of Tacoma in 2026: Tariff Headwinds, Rail Resilience, and What the Numbers Actually Mean for Pierce County

    If you run a business in Tacoma — whether you’re warehousing goods in Fife, managing a logistics operation near the tideflats, or importing materials through a freight broker — the Port of Tacoma is part of your cost structure whether you know it directly or not. In 2026, that port is navigating one of the more turbulent trade environments in recent memory, and the numbers tell a story worth understanding.

    Container Volumes: Down, But Context Is Everything

    Through April 2026, the Northwest Seaport Alliance (NWSA) — the joint venture managing marine cargo for both the Port of Tacoma and the Port of Seattle — handled 932,958 twenty-foot equivalent units (TEUs) year-to-date. That’s a decline of approximately 16% compared to the same stretch in 2025.

    The headline number sounds rough. But the context is critical: 2025 was an anomaly. Shippers across the country front-loaded massive volumes of cargo in late 2024 and early 2025, racing to beat anticipated tariff hikes. Full imports surged 26.6% year-over-year at their peak. That artificial spike created a sky-high baseline that 2026 volumes are now measured against. You’re not comparing normal to normal — you’re comparing normal to a frenzy.

    In January 2026, NWSA processed 228,166 TEUs, down 13.9% from January 2025. February came in at 207,725 TEUs, a 19.4% year-over-year decline. April held at 218,239 TEUs, off 21.4%. Each monthly report looks grim on paper until you account for what happened twelve months prior.

    For Pierce County businesses tracking freight costs and lead times, the practical takeaway: capacity at the port is currently looser than it has been in years. That’s actually favorable for shippers — less congestion, more predictable dwell times, and terminals with room to operate efficiently.

    Breakbulk Is the Story No One Is Covering

    While container headlines have been dominated by volume declines, breakbulk cargo — the heavy, oversized, and project-type freight that doesn’t fit in standard boxes — is having a genuinely strong year at Tacoma.

    NWSA handled 125,411 metric tons of breakbulk through April 2026, up 24% year-over-year, according to data from the NWSA newsroom. January alone saw breakbulk volumes jump 42.2%. The alliance attributes the growth to strong industrial demand, pointing to infrastructure investment, renewable energy projects, and manufacturing supply chains that rely on heavy-lift and project cargo.

    This matters for Tacoma specifically because breakbulk operations are concentrated on Tacoma’s side of the gateway. Pierce County industrial businesses in sectors like construction materials, agricultural equipment, and manufacturing components are seeing this activity directly — and it’s a counter-narrative to the broader volume-decline story.

    Rail: The BNSF Intermodal Play and What It Means for the Inland Network

    The Port of Tacoma’s rail infrastructure is one of its most significant competitive advantages over other West Coast gateways, and 2026 is putting that advantage to the test.

    The BNSF Tacoma South Intermodal Facility — opened in 2022 under a 16-year lease at Harbor Lot M — is a dedicated domestic intermodal hub built to handle more than 50,000 container lifts per year. BNSF operates the facility in partnership with NWSA, connecting Tacoma directly to Chicago via container-only rail service. Union Pacific also operates out of Tacoma, with Tacoma Rail’s Tidelands Division providing switching services to all four intermodal terminals within the port.

    The tariff environment has reshaped how that rail network is being used. With trans-Pacific container volumes suppressed, intermodal traffic from Tacoma to inland markets has moderated. But both BNSF and Union Pacific are actively building capacity ahead of what they expect to be a significant cargo rebound. BNSF has added nearly 93 miles of double-track across its network and expanded production tracks and parking at West Coast intermodal facilities, according to reporting from the Journal of Commerce.

    The expectation — widely shared among rail carriers, port operators, and freight analysts — is that the pause in U.S.-China tariffs will trigger a mid-2026 surge as delayed shipments finally move. Tacoma’s rail infrastructure positions it well to absorb that volume without the congestion that plagued Southern California ports during the 2021-2022 supply chain crunch.

    Tacoma Rail: The Local Connector

    Tacoma Rail, the city-owned short-line railroad, is the connective tissue between port terminals and the Class I railroads. Its Tidelands Division serves all four intermodal terminals and acts as the switch carrier for both BNSF and Union Pacific within the port. For businesses moving freight in or out of the tideflats, Tacoma Rail is often the last mile of the rail equation that doesn’t get enough attention.

    Tariff Impacts on Tacoma Trade Routes

    China is the port’s largest trading partner — by a wide margin. According to NWSA data, China accounts for roughly 40% of imports and 52% of exports flowing through the Seattle-Tacoma gateway. Asia overall represents 91% of total port trade. That concentration means U.S.-China tariff policy isn’t a background variable for this port — it’s the dominant driver of volume.

    The tariff timeline has been disorienting for shippers. The 2024 frontloading surge, tariff implementation, the subsequent volume collapse, and now the pause-and-potential-rebound cycle have made it genuinely difficult to plan freight movements more than 90 days out. Local freight brokers and logistics providers working the Tacoma market have noted (community signal: Pacific Northwest logistics forums) that booking visibility has compressed significantly compared to pre-2023 norms.

    The Choose Tacoma-Pierce County economic development office published analysis noting that tariff uncertainty has forced local businesses to hold higher inventory buffers and renegotiate supplier terms — real costs that show up in working capital requirements even when they don’t appear in port statistics.

    Capital Investment: $77 Million in 2026 Alone

    Despite the volume headwinds, infrastructure investment at the gateway continues. The Port of Tacoma’s share of NWSA capital investment is budgeted at $77.1 million for 2026, with approximately $228 million projected over the subsequent multi-year period, according to Port of Seattle budget documents. These represent terminal upgrades, equipment, and infrastructure improvements designed to keep Tacoma competitive as a top-six North American container port.

    The port’s 2021-2026 Strategic Plan has prioritized modernization of on-dock rail, terminal efficiency, and environmental compliance — the latter increasingly a factor in shipper routing decisions as major cargo owners set emissions targets that include port selection criteria.

    What Pierce County Businesses Should Be Watching

    If you’re operating in Pierce County with any supply chain exposure to the port, here are the signals worth tracking in the second half of 2026.

    The Rebound Timing

    The pause in U.S.-China tariffs is expected to release a wave of pent-up shipments. BNSF and UP are both positioning for a July-August surge. If your business imports goods with Chinese origin, expect tighter capacity and potentially higher spot rates as that wave moves through West Coast ports. Tacoma’s position as a less-congested alternative to LA/Long Beach could work in your favor if you have flexibility in port of entry.

    Breakbulk and Project Cargo Opportunity

    The 24% year-over-year growth in breakbulk through April signals sustained industrial activity in the region. If your business is adjacent to construction, energy infrastructure, or heavy manufacturing — as a supplier, contractor, or service provider — the port’s breakbulk momentum is a reasonable leading indicator of sector health in Pierce County.

    Rail as a Cost Lever

    With the BNSF Tacoma South facility operating with capacity headroom right now, intermodal rail to Chicago and Midwest markets is competitively priced relative to over-the-road trucking. Pierce County shippers moving heavy goods east should be getting current quotes from intermodal providers — the current environment favors rail economics in ways that won’t persist once volume returns at scale.

    The Bigger Picture: Tacoma’s Structural Position

    The Port of Tacoma supports more than 42,000 jobs and generates approximately $2.8 billion in labor income in the region, according to port economic impact data. Combined with the Port of Seattle under the NWSA structure, the gateway supports an estimated 265,000 jobs and $55 billion in regional economic benefits. Average wages in port-related industries run around $95,000 annually — one of the highest-paying sectors in Pierce County.

    That economic footprint doesn’t fluctuate dramatically with a bad quarter of container volumes. The port’s role as a Pacific Rim gateway — positioned closer to Asian ports via the Great Circle Route than East Coast alternatives — is structural, not cyclical. The tariff volatility of 2025-2026 is real and it’s affecting local businesses, but it’s playing out against a backdrop of long-term infrastructure investment and a rail network that few competing ports can match.

    For the operators, logistics managers, and business owners working in Pierce County’s industrial corridors: the port is navigating a difficult patch, but it’s doing so from a position of structural strength. The numbers look worse than they are — and the second half of 2026 is likely to look meaningfully better than the first.

    Frequently Asked Questions

    How much have container volumes dropped at the Port of Tacoma in 2026?

    Through April 2026, the Northwest Seaport Alliance handled 932,958 TEUs year-to-date, a decline of roughly 16% compared to the same period in 2025. The drop follows a period of aggressive frontloading in early 2025 when importers rushed cargo ahead of anticipated tariffs, creating a high baseline that 2026 volumes are now measured against.

    What is the BNSF Tacoma South intermodal facility and why does it matter?

    The BNSF Tacoma South facility, located at Harbor Lot M on the Port of Tacoma, is a dedicated domestic intermodal hub capable of handling more than 50,000 container lifts per year. Opened in 2022 under a 16-year lease, it provides direct container service to Chicago and connects Tacoma to the national rail network alongside Union Pacific. It’s a core piece of Tacoma’s strategy to compete as a West Coast logistics gateway.

    How are tariffs affecting trade through the Port of Tacoma?

    Tariffs have created significant volatility. China accounts for roughly 40% of imports and 52% of exports through NWSA, making the gateway highly sensitive to U.S.-China trade policy. The 2025 frontloading surge inflated year-over-year comparisons, and tariff implementation caused import volumes to fall sharply in early 2026. A pause in China tariffs is expected to trigger a cargo rebound in mid-2026, with both BNSF and Union Pacific actively preparing network capacity for the surge.

    What is happening with breakbulk cargo at the Port of Tacoma?

    Breakbulk is the standout bright spot in 2026. NWSA handled 125,411 metric tons of breakbulk cargo through April, up 24% year-over-year, driven by strong industrial demand. January alone saw breakbulk volumes jump 42.2%. This recovery reflects growing project cargo and heavy-lift activity — sectors less affected by consumer-goods tariff disruption.

    How many jobs does the Port of Tacoma support in Pierce County?

    Port of Tacoma operations support more than 42,000 direct jobs and generate approximately $2.8 billion in total labor income in the region. Combined with the Port of Seattle under the NWSA umbrella, the two ports support an estimated 265,000 jobs and $55 billion in regional economic benefits. The average annual wage for port-related positions is $95,000 — among the top-earning sectors in Pierce and King counties.


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