Everett City Council

CITY OF EVERETT BUDGET & FINANCE COMMITTEE Date: September 25, 2024 Time: 5:00 p.m. – 6:00 p.m. Location: Everett City Council Chambers The public is welcome to attend in person or remotely. There will be no public comment during committee meetings. To watch remotely: You may call in or listen to the meeting by dialing: 425-616-3920, Conference ID: 724 887 726#. View on YouTube: https://www.youtube.com/everettcity/live Agenda Items I. Budget Balancing Measures Update The City of Everett does not discriminate on the bas is of dis ability in the admis sion or acces s to, or treatment in, its programs or activities. Reques ts for as sis tance or accommodations can be arranged by contacting the Everett City Council Office at 425.257.8703. For additional information, pleas e vis it our website at https://www.everettwa.gov/3129/American-Disabilities-Act-ADA-and-Title-. Budget and Finance Committee September 25, 2024  Agenda • General Government 2025 Budget Development Update 2  General Government Six-Year Forecast as of July 21, 2024 General Government Deficit Forecast (in millions) $0.0 -$5.0 General Government Deficit (in millions) -$10.0 -$12.6 Revised -$16.8 Annual Budget Annual -$15.0 Deficit Variance Deficit -$21.5 2025 Forecast -$19.6 $7.0 -$12.6 -$20.0 -$25.8 2026 Forecast -$23.8 $7.0 -$16.8 -$25.0 2027 Forecast -$28.5 $7.0 -$21.5 -$30.4 2028 Forecast -$32.8 $7.0 -$25.8 -$30.0 -$35.4 2029 Forecast -$37.4 $7.0 -$30.4 -$35.0 2030 Forecast -$42.4 $7.0 -$35.4 -$40.0 FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST 2025 2026 2027 2028 2029 2030 3  Budget Balancing Update Current Labor Reductions: -$4.6 million Reductions through the voluntary separation incentive program (VSIP), layoffs, partial layoffs, furloughs, elimination of vacant positions, and transfers Departments Impact City Council and Mayor offices Delays response time to address residents’ requests; less support available to Council members and Administration; reduces ability to pursue new initiatives Internal support labor - Legal, Human Resources, IT, and Finance Delays response time to address internal requests; less support to operating departments; may delay recruitment and hiring of vacant positions needed to support resident needs Communication & Engagement Reduces ability to keep the public informed and engaged; reduces social media presence, publications, and community outreach; suspends Everett TV programming Economic Development Reduces capacity to recruit and retain businesses 4  Budget Balancing Update Current Labor Reductions (cont.) Reductions through the voluntary separation incentive program (VSIP), layoffs, partial layoffs, furloughs, elimination of vacant positions, and transfers Departments Impact Police, Emergency Management, and Code Enforcement Maintains and preserves current levels of response services; less support to Police administration; limits residents’ in-person contact with desk officers; reduces parking and code enforcement in neighborhoods Parks & Community Services Eliminates park ranger program; delays response time and may limit our ability to address some park issues Facilities and Property Management Delays custodial services (including public restroom cleaning), building maintenance, and repairs Library Reduces library hours and adult services Employee benefit programs Eliminates some employee benefit programs 5  Budget Balancing Update Department M&O Reductions: -$1.9 million Eliminate departments’ 2% annual M&O growth plus: Additional M&O Reductions Impact Street overlay Dramatically reduces street overlay projects; unsustainable in the long-term due to street deterioration Library Reduces library material purchases and hot spot loans Parks & Community Services capital program Reduces budget for small repairs to playgrounds and other park amenities Council & Administration Reduces budgets Municipal Arts Fund - Cultural arts grants Suspends arts and culture grant program Human Needs Related Programs Reduces Human Needs grants and Clare’s Place support; transfers VOA Community Center contract to Senior Center Reserve Fund 149 – a Non-General Government Finance Reduces supplies and materials budget to support operations in Clerk’s, Procurement, and all other Finance teams 6  Budget Balancing Update Notable M&O Costs Balancing Measure 2021-2023 2024 2025 Average Original Budget Costs Budget General insurance premiums $2,217,419 $2,287,881 $2,483,454 Workers’ compensation 1,288,216 2,166,791 2,248,592 Central dispatch and radio services (SNO911) 2,643,659 2,515,101 2,697,108 Jail fees* 3,136,421 4,365,622 6,180,000 Indigent defense* 1,593,514 1,700,000 2,530,700 *Increase due to unfunded mandates 7  Budget Balancing Update Other Budget Balancing Measures Balancing Measure 2025 Budget 2023 Budget Variance $7,014,685 Suspend contributions to Police and Fire LEOFF 1 Pension funds 4,969,180 Support Community Development’s Alternative Response Program with one-time Federal grant 1,362,762 Total grant is $4.5 million; some will be spent in 2024 Recommended to use Lodging Tax revenues to fund City special events, including labor and M&O; continues to support 596,624 external grant program Support Public Veterinary Services with Animal Reserve Fund contributions 457,021 8  General Government Six-Year Forecast as of September 23, 2024 General Government Deficit Forecast (in millions) $0.0 $0.0 -$5.0 -$6.8 General Government Deficit (in millions) -$10.0 Revised Annual Budget Annual -$15.5 Deficit Variance Deficit -$15.0 2025 Forecast -$7.0 $7.0 $0.0 -$20.0 2026 Forecast -$13.8 $7.0 -$6.8 -$23.7 2027 Forecast -$22.5 $7.0 -$15.5 -$25.0 -$28.3 2028 Forecast -$30.7 $7.0 -$23.7 2029 Forecast -$35.3 $7.0 -$28.3 -$30.0 -$32.9 2030 Forecast -$39.9 $7.0 -$32.9 -$35.0 FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST 2025 2026 2027 2028 2029 2030 9 Discussion 2025 Budget Community outreach update Overview of survey and other community outreach 1 Category 1: Public Information  Category 2: Sensitive information Budget community outreach in August • Hosted 3 community meetings, including one listening session with elected officials • Launched budget community survey • Accepted feedback via email and mail 2 Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Budget community survey • Majority of respondents were between 35 and 54 years old • Nearly 90% of respondents live in Everett • Received the most responses from people who reported living in Council District 1 3 Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Budget community survey - responses Which areas do you believe should be considered for the most significant cuts? 4 Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Budget community survey - responses Please identify opportunities of budget reductions in the coming year 5 Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Budget community survey - responses Please rank these priorities from most important to least important. Percentages 6 Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Budget community survey - responses What City of Everett services and/or amenities do you most frequently use? 7 Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Budget staff survey - responses Received over 100 responses from staff! Three frequently mentioned ideas: • Reduce staffing costs through shortened workdays/ work weeks or unpaid time off • Reduce staffing by cutting or consolidating positions • Reduce printing 8 Category 2: For official use only / disclosure permissible by law.  Category 2: Sensitive information Budget staff survey - responses Other budget reductions or revenue generation ideas from employees: • Pursue more grants • Increase fire inspection fees • Merge with South County Fire • Medical coverage opt out • Merge Everett Transit with CT • Cut overtime • Merge library into Sno-Isle • Reduce studies • Invest in energy cost savings of city buildings • Improve project cost forecasts • Defer projects • Charge for parking • Reduce contract with Advanced Life Support and increase • Comp time for police officers Everett Medical Service Transportation • Turn over street lighting work to PUD • Reduce road maintenance/snow removal/street sweeps • Revenue from animal shelter • Earn revenue from wildfire fighting contracts • Increase permitting and related fees • Rent out/sell equipment and vehicles • Non-compliant commute trip reduction fines • Shared communications tools with other departments • Charge for police reports • Reduce boards and commissions • Adopt Snohomish County sick bank compensation • Reduce events or identify non-profit partners to take them on • Reduce cost of park rentals • Reduce or eliminate seasonal/day labor positions • Reduce steps and processes • Vendor management fees • Limit certified mailing 9 Category 2: For official use only / disclosure permissible by law.