Finance Committee

City of Lynnwood Finance Committee – Regular Finance Committee Meeting Minutes February 18, 2026 1. Call to Order 2. Roll Call Present at the meeting were: Nick Coelho-Chairperson/Council President, Derica Escamilla-Council Vice President, Robert Leutwyler-Councilmember, Lynn Sordel-Interim Assistant City Administrator, Michelle Meyer-Finance Director and Estee Milburn-Council Executive Assistant. 3. Financial Reports 3.A. Sales Tax Report Director Meyer shared the January sales tax report. Revenues from January 2026 for November 2025 sales remained below budget, reflecting ongoing declines and resulting in a year-to-date shortfall. Note there is a two-month delay on reporting. Revenue trends show a steady decline driven largely by slowed construction activity, significantly impacting sales tax and DBS permit fee revenue in the General Fund. Retail and food service sectors remain strong. Month-to-month comparisons were reviewed, noting January reflects November sales. Sales tax for the past two quarters compared to the same period one year ago is up 8% year over year, primarily due to a large, one- time payment. 4. Discussion Item 4.A. Finance Committee Claims Review Process Director Meyer reviewed the payroll and accounts payable process. The Finance Committee receives detailed reports, while the full Council approves the aggregate total on the Consent Agenda, during Business Meetings. All items are internally approved by departments prior to review. Recent reporting adjustments and key areas of focus were discussed. Payroll remains generally stable, while claims may vary due to operational expenses. The Committee discussed continuing questions as needed and the potential for quarterly deeper review. 4.B. 2026 Finance Committee Meeting Calendar The Finance Committee meetings will be moved to the third Tuesday, with the time remaining 3:30–5:00 p.m. The meeting ordinance will be brought forward for approval at a future Council Business Meeting. 4.C. Budget Calendar Review Reviewed the budget calendar, noting added municipal deadlines aligned with state requirements. A proposed preliminary budget is expected in September, with the final preliminary budget delivered in October. Personnel costs remain the largest portion. The year 2025 will close by late April, with final numbers posted after a 60-day period. Moving into the next biennium, limited resources will shape conservative forecasts. The calendar from 2025-2026 was reviewed as an example to guide upcoming planning, and the Committee will revisit minimum fund balance policy soon. 5. Adjourn The meeting was adjourned at 5:04 pm.