Everett City Council

CITY OF EVERETT BUDGET COUNCIL COMMITTEE Date: August 20, 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 General Government Budget Performance – June 2025 II. Financial Forecasting and Impact on the Budget Deficit III. Contingency Reserve – Rainy Day Fund Review 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 everettwa.gov/ADA  City of Everett Budget & Finance Committee August 20, 2025 June Financial Report General Government Revenues 2025 YTD% Budget Actual 180,000,000 Month of Budget 160,000,000 Jan 11,835,629 11,861,464 100.22% 140,000,000 Feb 21,084,047 21,744,090 103.13% 120,000,000 Mar 29,257,660 30,517,419 104.31% 100,000,000 Apr 42,201,586 45,065,002 106.79% 80,000,000 May 71,355,594 72,778,363 101.99% Jun 79,884,696 82,137,873 102.82% 60,000,000 Jul 94,375,420 40,000,000 Aug 104,146,783 20,000,000 Sep 112,638,006 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Oct 126,386,942 Nov 153,814,557 2025 Actual 2024 Actual 2025 Budget Dec 167,992,557 June Financial Report B&O Tax YTD Budget YTD Actual 2025 Budget Estimate Receipts Variance $ Variance % $ 21,889,108 $ 9,332,078 $ 10,066,349 $ 734,271 7.9% 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 June Financial Report Sales Tax YTD Budget YTD Actual 2025 Budget Estimate Receipts Variance $ Variance % $ 40,059,930 $ 19,248,772 $ 18,965,283 $ (283,489) -1.5% 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 June Financial Report Sales Tax Top Sales Tax Sectors as of June 30, 2025 Cumulative $ Cumulative % % of Total Over/(Under) Over/(Under) Sales Tax Sector Sales Tax Budget Budget Retail 37.8% $ (58,117) -0.8% Construction 14.1% $ (466,290) -14.8% Accommodation & Food Services 8.6% $ (18,272) -1.1% Wholesale Trade 9.8% $ 190,765 11.5% Manufacturing 7.5% $ 87,725 6.6% Information 4.2% $ 46,629 6.2% June Financial Report General Government Expenditures 2025 YTD% Budget Actual 180,000,000 Month of Budget 160,000,000 Jan 16,528,420 14,205,942 85.95% 140,000,000 Feb 28,936,271 25,752,465 89.00% 120,000,000 Mar 42,896,836 38,778,984 90.40% 100,000,000 Apr 56,075,772 52,497,073 93.62% 80,000,000 May 69,539,420 65,977,163 94.88% 60,000,000 Jun 83,266,679 78,445,232 94.21% 40,000,000 Jul 97,513,191 20,000,000 Aug 111,889,967 - Sep 127,583,222 Oct 139,674,887 2025 Actual 2024 Actual 2025 Budget Nov 153,107,846 Dec 173,624,352 Contingency Reserve - Rainy Day Fund • Rainy Day Fund was established to gather resources for times of extraordinary need, primarily intended for unusual circumstances requiring immediate budget adjustments • Supplemental reserve to the 20% General Government ending fund balance • 2025 estimated Rainy Day ending balance is $3,873,676 Financial Forecasting and Impact on the Budget Deficit Why the Budget Deficit Outlook Changes The budget forecast is not Economic conditions drive static revenue volatility • Forecasts reflect a point in time and are • The General Fund’s primary revenue source adjusted regularly for current and future is taxes, which are highly sensitive to the years economy • Revenue growth is usually modest Impact of prior year budget cuts Structural cost pressures • Cuts made in prior years affect future • Expenses outpace revenues baseline spending and positively impact the deficit QUESTIONS/COMMENTS