Everett City Council

CITY OF EVERETT BUDGET COUNCIL COMMITTEE Date: March 19, 2025 Time: 5:30 p.m. – 6:15 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 meeting. To watch remotely, visit our YouTube channel at https://www.youtube.com/everettcity/live. Agenda Items I. Year-to-date Budget Performance Briefing from Staff II. Follow Up Council Questions Briefing from Staff III. Financial Policies Council Discussion Committee members: all members of the Council, chaired by Council President Schwab The City of Everett does not discriminate on the basis of disability in the admission or access to, or treatment in, its programs or activities. Requests for assistance or accommodations can be arranged by contacting the Everett City Council Office at 425.257.8703. For additional information, please visit our website at https://www.everettwa.gov/3129/American-Disabilities-Act-ADA-and-Title-.  City of Everett Budget & Finance Committee March 19, 2025  Agenda • Year-to-date Budget Performance • Follow Up Council Questions • Financial Policies Discussion January Financial Report General Government Revenues 2025 YTD% Budget Actual 180,000,000 Month of Budget 160,000,000 Jan 11,453,455 11,626,886 101.51% 140,000,000 Feb 20,521,872 120,000,000 Mar 28,443,371 Apr 41,116,253 100,000,000 May 69,989,819 80,000,000 Jun 82,961,130 60,000,000 Jul 97,184,419 40,000,000 Aug 106,612,099 20,000,000 Sep 114,811,802 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Oct 128,393,303 Nov 155,873,853 2025 Actual 2024 Actual 2025 Budget Dec 167,477,961 January Financial Report B&O Tax YTD Budget YTD Actual 2025 Budget Estimate Receipts Variance $ Variance % $ 21,889,108 $ 3,344,442 $ 3,735,544 $ 391,102 11.7% 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2025 Actual 2024 Actual 2025 Budget January Financial Report Sales Tax YTD Budget YTD Actual 2025 Budget Estimate Receipts Variance $ Variance % $ 40,059,930 $ 3,146,247 $ 3,037,878 $ (108,369) -3.4% 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2025 Actual 2024 Actual 2025 Budget January Financial Report Sales Tax Top Sales Tax Sectors as of January 31, 2025 Cumulative $ Cumulative % % of Total Over/(Under) Over/(Under) Sales Tax Sector Sales Tax Budget Budget Retail 39.5% $ (7,215) -0.6% Construction 13.8% $ (110,727) -20.9% Accommodation & Food Services 8.4% $ (8,848) -3.4% Wholesale Trade 8.2% $ 10,509 4.4% Manufacturing 7.6% $ 9,113 4.1% Information 4.2% $ 8,709 7.2% January Financial Report General Government Expenditures 2025 YTD % Budget Actual 180,000,000 Month of Budget 160,000,000 Jan 16,494,981 14,205,942 86.12% 140,000,000 Feb 28,868,867 120,000,000 Mar 42,766,964 100,000,000 Apr 55,896,316 80,000,000 May 69,325,406 60,000,000 Jun 83,000,119 40,000,000 Jul 97,114,651 20,000,000 Aug 111,335,000 0 Sep 126,900,506 Oct 138,928,105 2025 Actual 2024 Actual 2025 Budget Nov 152,295,067 Dec 172,166,781 Council Follow Up Questions • Aerospace Impact • December 2024 Monthly Report – Preliminary • General Government Ending Fund Balance  General Government Ending Fund Balance $60M $50M $40M $30M $20M $10M $0M 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Budgeted Ending Fund Balance $22.7M $24.7M $25.5M $26.0M $27.0M $27.9M $28.2M $31.1M $30.6M $30.6M Actual Ending Fund Balance $38.6M $39.7M $36.8M $32.6M $38.6M $46.4M $48.8M $55.2M $45.8M $49.2M  Financial Policies Discussion FUND BALANCE POLICY RESERVES POLICY • 20% of Operating Revenues (Actual ending fund balance is 31% on • Each reserve fund is dedicated to specific purpose(s) and aims average) to meet long-term liabilities and capital needs CASH MANAGEMENT POLICY GENERAL REVENUE POLICY • Invest funds in a manner that maximizes security, meets daily cash • Maintain a diversified and stable revenue base flow needs, complies with applicable laws, and provides a market • Fees and charges evaluated annually rate of return • Use one-time revenues for capital improvements and reserves • Ordinance No.3536-17 – Policy guidelines for the City of Everett’s • Grants reviewed for budget, compliance, and alignment with investments priorities GENERAL EXPENDITURE POLICY DEBT MANAGEMENT POLICY • Prioritize maintenance and replacement • Fulfill debt services obligations, remain within debt capacity, and • Capital Improvements – maintain multi-year Capital comply with bond covenants Improvement Plans and update annually • Resolution No. 7096 – Policy guidelines for the City of Everett's Debt • Operating/Capital Expenditure Accountability -compare Management Program actual expenditures to budget monthly • Unfunded Mandates Policy – Track, monitor, and advocate for funded mandates and local response options