While the Tenino City Council meeting on Tuesday, Oct. 14, was a brief one as no major resolutions or ordinances were on the agenda, councilors discussed a number of issues during the work session leading up to Tuesday’s meeting — including drafting Tenino’s 2026 budget and ongoing assessments of previous year’s finances by the Office of the Washington State Auditor.
Last year, it was revealed budget misreporting resulted in the city’s expenditures outpacing budget revenues by an estimated $1.4 million going back to 2021 — leading to the city’s restricted water and sewer funds being tapped for budget items outside of water and sewer services.
Because using restricted funds on non-fund related items is a violation of state law, the city council had to retroactively approve use of the funds as an interfund loan. The City of Tenino is now paying back the loan into the sewer and water restricted funds over the next few years at a 4% interest rate.
Because of this, cuts will be coming to the 2026 budget in order to balance it, according to Tenino Clerk Treasurer Nancy Reddick.
“The budget is coming along. When you ask how it’s going, it depends on what you mean by that — because it’s not going to be pretty next year,” Reddick said. “... We’re getting together this week to try and get the rest of the budget numbers in. But, we’re gonna have to do a lot of cuts for next year unfortunately, if we want to be able to balance our budget.”
Per state law, municipal governments are required to draft and approve annual balanced budgets. While many other neighboring municipalities are also facing tough budget choices due to ongoing inflation and the U.S. dollar still losing value this year, the loan repayment further compounds the situation in Tenino.
The Tenino city government isn’t the only Tenino entity struggling right now either, as Tenino Mayor Dave Watterson announced the Tenino Community Service Center/Tenino Food Bank Plus is currently embattled, according to Tenino Food Bank Plus Executive Director Jody Stoltz.
“I did talk to Jody the other day … The food bank’s really struggling I just think, overall. Because they’re finding some of their funding is kind of going away with the shutdown, and also they’ve had a pretty large increase (in food bank usage),” Watterson said.
CT Publishing called Stoltz on Wednesday, Oct. 15, to find out more about the issues currently facing the food bank.
It had already been facing funding and supply issues stemming from cuts made by U.S. President Donald Trump’s administration at the federal level back in March, which included The Emergency Food Assistance Program (TEFAP) and Local Food Purchase Assistance (LFPA) funding. TEFAP and LFPA assist low-income families or individuals buying groceries.
According to Stoltz, the cuts earlier this year also affected voucher funding the Tenino Food Bank Plus used to be able to offer for low-income families needing help paying for gas and utilities.
Neither of which have been getting cheaper, either. The U.S. Bureau of Labor Statistics recently announced the Consumer Price Index inflation rate rose another 0.4% in August, and inflation has driven consumer prices up 2.9% overall from August 2024 to August 2025.
Outside of federal budget cuts, this inflation has been hitting the Tenino Food Bank, as they also deliver meals to many seniors throughout the region.
“We have to go get and deliver this food somehow,” Stoltz added.
With the ongoing federal government shutdown, funding which used to fund the food bank for gas for deliveries for home-bound seniors has now dried up, further squeezing the food bank’s budget.
“It’s cutting into our budget quite heavily because every week we serve home-bound seniors,” she said. “... It’s hard to recoup that money, and with everybody having to take the hit from inflation, now we’re pinching pennies to see that we can still serve our people.”