2024-07-02 Council Packet1
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Agenda
Edmonds City Council
REGULAR MEETING
COUNCIL CHAMBERS
250 5TH AVE NORTH, EDMONDS, WA 98020
J U LY 2, 2024, 7:00 PM
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CALL TO ORDER/FLAG SALUTE
LAND ACKNOWLEDGEMENT
WE ACKNOWLEDGE THE ORIGINAL INHABITANTS OF THIS PLACE, THE SDOHOBSH
(SNOHOMISH) PEOPLE AND THEIR SUCCESSORS THE TULALIP TRIBES, WHO SINCE TIME
IMMEMORIAL HAVE HUNTED, FISHED, GATHERED, AND TAKEN CARE OF THESE LANDS. WE
RESPECT THEIR SOVEREIGNTY, THEIR RIGHT TO SELF-DETERMINATION, AND WE HONOR THEIR
SACRED SPIRITUAL CONNECTION WITH THE LAND AND WATER.
3. ROLL CALL
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APPROVAL OF THE AGENDA
AUDIENCE COMMENTS
THIS IS AN OPPORTUNITY TO COMMENT REGARDING ANY MATTER NOT LISTED ON THE
AGENDA AS CLOSED RECORD REVIEW OR AS A PUBLIC HEARING. SPEAKERS ARE LIMITED TO
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RECEIVED FOR FILING
1. Written Public Comments (0 min)
APPROVAL OF THE CONSENT AGENDA
1. Approval of Committee Meeting Minutes June 18, 2024
2. Approval of Council Special Meeting Minutes June 25, 2024
3. Approval of claim checks and wire payment.
Edmonds City Council Agenda
July 2, 2024
Page 1
4. Authorization to purchase (1) 2024 Freightliner 800 Series Jet Truck
8. COUNCIL BUSINESS
Blue Ribbon Panel Report (60 min)
A Resolution Regarding the Landmark 99 Property (30 min)
9. COUNCIL COMMENTS
10. MAYOR'S COMMENTS
ADJOURNMENT
Edmonds City Council Agenda
July 2, 2024
Page 2
6.1
City Council Agenda Item
Meeting Date: 07/2/2024
Written Public Comments
Staff Lead: City Council
Department: City Council
Preparer: Beckie Peterson
Background/History
N/A
Staff Recommendation
Acknowledge receipt of written public comments.
Narrative
Public comments submitted to the web form for public comments
<https://www.edmondswa.gov/publiccomment>
between June 18, 2024 and June 24, 2024.
Attachments:
Public Comment July 2, 2024
Packet Pg. 3
6.1.a
Edmonds City Council Public Comments —July 2, 2024
Online Form 2024-06-24 04:03 AM(MST) was submitted by Guest on 6/24/2024 7:03:16 AM (GMT-
07:00) US/Arizona
FirstName Jason
LastName Rowsell
Email
CityOfResidence Everett
AgendaTopic Inbred basic city council members
Comments Thank your coward politicians for letting the Winco parking lot turn into a violent war
zone. Maybe a consent decree would get your elected idiots to wake up and do their jobs for a
change? Please stop acting like arrogant cowards. Jason
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Packet Pg. 4
7.1
City Council Agenda Item
Meeting Date: 07/2/2024
Approval of Committee Meeting Minutes June 18, 2024
Staff Lead: Council
Department: City Clerk's Office
Preparer: Scott Passey
Background/History
N/A
Recommendation
Approval of Council Meeting minutes as part of the Consent Agenda.
Narrative
Council meeting minutes are attached.
Attachments:
2024-06-18 Council PPW Minutes
2024-06-18 Council PSPHSP Minutes
2024-06-18 Council FIN Minutes
Packet Pg. 5
7.1.a
PARKS & PUBLIC WORKS COMMITTEE MEETING
June 18, 2024
Elected Officials Present Staff Present
Councilmember Susan Paine (Chair) Oscar Antillon, Public Works Director
Councilmember Michelle Dotsch Todd Tatum, Comm., Culture & Econ. Dev. Dir.
Council President Olson (ex-officio) Rob English, City Engineer
Bertrand Hauss, Transportation Engineer
Mike De Lilla, Senior Utilities Engineer
Frances Chapin, Arts & Culture Program Mgr.
Scott Passey, City Clerk
CALL TO ORDER
The Edmonds City Council PPW Committee meeting was called to order virtually and in the City Council
Conference Room, 121 — 5t" Avenue North, Edmonds, at 1:30 pm by Councilmember Paine.
2. COMMITTEE BUSINESS
1. Creative District Gateway Art RFQ
Ms. Chapin relayed the City received a capital grant from the Washington State Arts Commission to
create a public art installation at Anway Park as a gateway to the Creative District and the Edmonds
Arts Festival Foundation provided a cash match. The City's public art process requires council approval
to advertise the request for qualifications (RFQ)/call for artists for significant projects.
Questions and discussion followed regarding the site selection, advantages to the site as a gateway to
ferry users, opportunity to provide information about the Creative District at the site, activating the space
in the future, funding for interpretative signage about the Creative District and Edmonds as an arts and
culture destination, concern other areas of the City do not get the same focus as the Creative District,
and requirement for the grand funds to be used in the Creative District.
Committee recommendation: Consent Agenda
2. Presentation of Perrinville Flow Reduction Study Update - Interlocal Agreement
(ILA) between the Cities of Edmonds and Lynnwood
Mr. De Lilla explained this is the culmination of various studies and the Stormwater Management Action
Plan in which Perrinville is identified as a basin of interest. Edmonds and Lynnwood were able to secure
a $469,200 grant to update the 2015 Perrinville Flow Reduction Study, verify assumptions and find
additional sites where stormwater discharge from MS4 (pipe system into Perrinville) can be decreased.
The focus of this project will be on the storm pipe network; work being done on the culvert at the bottom
of Perrinville Creek related to fish passage is completely separate from this study. The grant is split
50/50 between the cities; Edmonds will manage the grant with Ecology and Lynnwood will contribute
half of the required match.
Questions and discussion followed regarding issues in the Perrinville watershed, collaborating with
Lynnwood, whether Snohomish County is involved in this project, erosion in County Park that impacts
the creek, mitigating flows from Lynnwood, providing information to the public about Perrinville Creek,
and the difference between MS4 pipe system and the creek.
Packet Pg. 6
7.1.a
06/18/24 PPW Committee Minutes, Page 2
Committee recommendation: Consent Agenda.
3. Presentation of Professional Services Agreement for Perrinville Flow Reduction
Study Update
Mr. De Lilla explained the City issued an RFQ at the end of 2023; Herrera was the only respondent
likely because they did the Stormwater Management Action Plan. Edmonds and Lynnwood reviewed
Herrera's qualifications and agreed they were qualified. The first phase will include review of original
sites and identifying and prioritizing 6-10 additional sites where work will be done such as geotechnical
engineering. The second phase will be additional due diligence and exploratory work on those sites.
The fee for the first phase is $140,538 which includes a $14,234 management reserve.
Questions and discussion followed regarding Herrara's fees, changing the date in Task 2 in the scope
of work from January 2024 to January 2025, number of additional sites to be identified, and staff making
a presentation to council once the study is completed.
Committee recommendation: Consent Agenda.
4. Presentation of Subaward Safety Action Plan Agreement between Puget Sound
Regional Council and City of Edmonds
Mr. English explained last summer the City partnered with PSRC and ten other cities on a $2.87 million
grant application through U.S. Department of Transportation's Safe Streets and Roads for All (SS4A)
grant program, funded through the Bipartisan Infrastructure Law, to prepare a safety action plan.
Edmonds' share of the grant award is $300,000 and requires a 20% local match. Exhibit A outlines
tasks for developing the plan which include developing a Vision Zero policy that looks at reducing
roadway accidents for all users and identifying projects and priorities to meet the target of a significant
reduction in accidents. Development of the plan is the first step to access implementation funding from
the Bipartisan Infrastructure Law as the City cannot request funding until the safety action plan is
developed and approved. The schedule is to begin the work in fall 2024 and conclude summer 2025.
Due to receipt of the grant notification in late 2023, the match was not included in the 2024 budget.
Staff's requests for this item include, 1) approve the subaward agreement, 2) authorize expenditures of
staff time and professional services (a second quarter budget amendment will program the grant
revenues and expenditures in 2024), and 3) approve issuing the RFQ. The funding source will be the
112 Street Fund, and not REET.
Questions and discussion followed regarding updating the Complete Streets Ordinance, funding in 2024
and 2025, estimated staff time and professional services, whether the start date could be delayed until
2025, impact of delaying the start, Washington State's Safety Action Plan, inability to acquire SS4A
funds until the plan is approved, potential projects, lighting analysis study, whether this effort could
include analysis of bike pedestrian bridge across SR-104, entities that would be involved with a bike -
pedestrian bridge, and the public's interest in a Highway 99 pedestrian overpass.
Committee recommendation: Full council with clarification on the funding source
5. Presentation of Supplemental Agreement with WSP for Construction Management
Services on the 76th Ave Overlay Protect
Mr. English relayed this is a time extension of the agreement with WSP from June 30, 2024 to June 30,
2025; construction of the 76t" Ave overlay project is complete and is in the process of close out. There
is no additional cost to the City of extending the agreement to complete the close out and ensure the
consultant can participate if this project is selected by WSDOT for a project management review (PMR).
Packet Pg. 7
7.1.a
06/18/24 PPW Committee Minutes, Page 3
Committee recommendation: Consent Agenda.
6. Presentation of Supplemental Agreement with SCJ for Hwy 99 Revitalization Stage
3
Mr. English explained the project limits for Stage 3 are 244th Street to 238th Street. The original
agreement for approximately $3.2 million with a $150,000 management reserve was approved
November 2022. In March 2023, following discussion with the state, the cross section was changed to
include a bike path adjacent to the sidewalk Highway 99 and to extend the project limits on 238th to 841h
so there would be connectivity to the 84th Street corridor. This supplement adds design work related to
those two changes including survey, storm drainage work on 238th (designed to the 2024 DOE
stormwater manual which will be adopted by the time this project is constructed in 2028), and
preparation of a cultural resources report.
An addition to the supplemental agreement in the packet, the project includes conducting a level 1
environmental site assessment for several properties prior to right-of-way acquisition. The site
assessment is estimated to cost $20,000, bringing the total supplement to approximately $390,000. The
funding source for design and right-of-way acquisition for Stage 3 is Connecting Washington;
construction funds are from Move Ahead Washington funds. Staff will come back with a Stage 4
supplement later this summer.
Questions and discussion followed regarding whether cultural resources have ever been found in a
Public Works construction site in the City, Highway 99 being a good candidate for SS4A grants, potential
for a RAISE grant, location of properties where right-of-way acquisition is anticipated, and design of the
northbound left turn from Highway 99 to 238th
Committee recommendation: Full council
7. Presentation of 7317 Lake Ballinger Way Property Purchase
Mr. English reviewed:
• Vicinity Map
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Ballinger Way
• Site Plan
Packet Pg. 8
7.1.a
06/18/24 PPW Committee Minutes, Page 4
Q 7317 Lake Ballinger Way
❑ Stormwater Catch Basin
Stormwater Line
Imo► 30" Concrete Sewer
® FEMA Flood Zone A
Building Footprints
• - - • Asphalt/Dirt Driveway
X *-X Fence
• RAI Flags (6-28-23)
Wetland Boundary
OHWM
- Wetland Unit
IM Significant Tree
Erosion Hazard Areas 15%-40% Slope
Property Details
0 0.55 acre parcel
o Vacant single family residential property
o Partially demolished home (original size 2,413 sf; built in 1944)
o Lies within Lake Ballinger floodplain
o Existing nonfunctional boat dock
o Wetland on site
0 42-inch stormwater pipe
0 36-inch stormwater pipe (City of Shoreline)
Reports and Appraisal
o Completed Reports
■ Phase 1 Environmental Site Assessment
■ Hazardous Building Materials Survey
■ Wetland Delineation
■ Inadvertent Discovery Plan
■ Baseline Inventory
■ Appraisal (Initial $480k Value)
■ Appraisal Review (Revised Value $520K)
Stewardship Plan
o Required by Department of Ecology
o Current Conditions
o Land Management Goals & Objectives
■ Short-term:
- Demolish structures
- Remove impervious surfaces
- Restore to green space.
■ Long-term:
- Stormwater Management
- Restoration & Maintenance
Water Quality Deed of Right
o Required by Department of Ecology (DOE)
o City Requirements
■ Protect and maintain property
■ Provides access to DOE for inspections
■ Comply with specific prohibitions
■ Comply with permitted uses and activities
Packet Pg. 9
7.1.a
06/18/24 PPW Committee Minutes, Page 5
Benefits
o Improve water quality in Lake Ballinger and downstream creeks
■ Remove existing structure and pollution generating surfaces from site
■ Restore natural floodplain area
■ Improve condition of wetland and buffer
■ Opportunity for stormwater treatment facility for runoff from SR-104
Purchase & Sale Agreement
o Purchase & Sale Agreement with purchase price of $520,000
■ $10,000 Escrow
■ Initiate
- 30-day title review
- 75-day inspection period
■ Seller Disclosure Statement
■ City Council resolution approving purchase of property (future City Council meeting)
Funding
o Acquisition
■ $500k Grant secured in 2022
- Funding Agreement approved by City Council (April 18, 2023)
■ Local match Stormwater Utility funds
o Land Management Goals & Objectives
■ Stormwater Utility funds
■ Future grants
■ Community engagement
Questions and discussion followed regarding whether the title review and inspection period can occur
concurrently, vegetation on the site, DOE's prohibition on any recreational use on the site, City of
Shoreline's access and maintenance of their stormwater pipe, and hazardous materials in the buildings.
Committee recommendation: Full council
8. 84th Ave W Walkway (234th St SW - 238th St SW) Project Update
Mr. English explained during the CIP/CFP process last fall, council programmed $75,000 for a predesign
study to add a walkway between 238' and 234' on 84', the fifth highest scoring long walkway project
in the 2015 Transportation Plan. Following an RFQ process David Evans & Associates was selected to
do a preliminary assessment and estimate. He reviewed:
• 2024-2029 CIP/CFP PWT-32
Project proposes approx. 1,300 LF of new sidewalk on east side of 84th Ave W
ADA compliant pedestrian curb ramps
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• Photographs of existing conditions
• Project Limits
Packet Pg. 10
7.1.a
06/18/24 PPW Committee Minutes, Page 6
o 84t" Ave W between 238t" St SW and 23411 St SW
• Cross Section
84TH AVE W WALKWAY (238TH ST SW - 234TH ST SW)
CONCEPT DESIGN CROSS SECTION
EAST WEST
7' 11' I 6' I I TOWTCH
SGFYALLIf l7JO$CapE EY.F- NFWU.PUiPO3E GEIFRI M.RIVEF WMF LMF. E.Gllsi
FWIDNYG GV'TMA -49 USE GU^CRb
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• Planninq Level Cost Estimates
East and \Vest Side Improvements (Bike
Lane Installation on Both Sides)
Fast Side Improvements Onh (Bike
Lane Installation East Side)
'1'0'1'AL 1'R0.IE( 'I' ( 0S'1'
S 3,741.9111
S 3.325.889
Design
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443.970
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o New concrete walkway only on east side of 84th Ave W
o Right of way acquisition will be required regardless of selected design alternative
• Preliminar Conceptual Desi n
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84`h Ave W N �
(238th St SW — 234th St SW)
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• Staff recommendation
o Option 1 — sidewalk on one side and bike lane on both sides
Questions and discussion followed regarding the 234' to 220' section in Snohomish County,
Transportation Plan project for a sidewalk on 2361h, cost of concrete versus asphalt sidewalks, school
bus stops on 84t", sidewalk connections to Community Transit bus stops, a person in wheelchair that
uses the street on 84t", and cost of the project without a bike lane.
Committee recommendation: Full council
Packet Pg. 11
7.1.a
06/18/24 PPW Committee Minutes, Page 7
9. Authorization to purchase (1) 2024 Freightliner 800 Series Jet Truck
Mr. Antillon relayed this truck has been previously budgeted and approved as a planned replacement
in the 2024 Fleet Replacement Budget purchased with B-Fund monies. The truck was ordered last year
and delivery is anticipated next month which will require the mayor's signature authorizing the expense.
Mr. Antillon responded to council questions regarding the vehicle this jet truck replaces and auction of
the old truck.
Committee recommendation: Consent Agenda
Mr. Antillon requested an item be added to next week's consent agenda, a third extension of the
agreement for HKA's services at the WWTP and requesting the mayor obligate another $130,000. Half
the cost is the City's responsibility and the other half is paid by the WWTP partners. This extension is
similar to the second amendment to the contract in September 2023. Discussion followed regarding
whether to have the item on the consent agenda or the full council agenda.
10. Council Rules of Procedure Section 1 & 2 Authority and Council Organization
Councilmember Dotsch requested the language that was removed in Section 2.5.C, Filling a Council
Vacancy, regarding asking applicants to remain outside the Council Chambers while other applicants
are being interviewed, be restored. Following a brief discussion, Councilmember Paine suggested
Councilmember Dotsch email City Clerk Scott Passey regarding why that language was removed.
Committee recommendation: Consent Agenda.
3. ADJOURNMENT
The meeting was adjourned at 3:27 pm.
Packet Pg. 12
7.1.b
PUBLIC SAFETY, PLANNING, HUMAN SERVICES & PERSONNEL
COMMITTEE MEETING
June 18, 2024
Elected Officials Present Staff Present
Councilmember Neil Tibbott (Chair) Susan McLaughlin, Planning & Dev. Dir.
Councilmember Chris Eck Amber Brokenshire, Associate Planner
Council President Vivian Olson(ex-officio) Ally Ahlert, Executive Assistant
Councilmember Susan Paine Emily Wagener, Senior HR Analyst
Councilmember Will Chen Jesse Curran, Parks Maintenance Mgr.
Scott Passey, City Clerk
1. CALL TO ORDER
The Edmonds City Council PSPHSP Committee meeting was called to order virtually and in the City
Council Conference Room, 121 — 511 Avenue North, Edmonds, at 3:30 pm by Councilmember Tibbott.
COMMITTEE BUSINESS
1. Committee Updates
a. Emergency Response - EOC - Police/ Chief Bennett
No staff was available to provide an update.
b. Comprehensive Plan - Planning/ Director McLaughlin
Ms. McLaughlin advised of plans to publish a newsletter/briefing memo under council agenda item
Received for Filing. She anticipated an initial staff review of the EIS prepared by Herrera in late June
and release to the public the third week of July following staff revisions. She reported on work being
done on a waterfront vision, refining the content goals and policies for each element, public meetings
held in late May to review key goals and policies, plans to present the updated elements to the planning
board in June and July, involvement of Community Champions who represent under -represented
communities within the City, collaboration on the Transportation element to identifying project lists for
the comprehensive plan and the CIP, and June 27 webinar on HB 1110 regarding middle housing.
In response to emailed questions, Ms. McLaughlin advised the comprehensive plan update is on
schedule and on budget. Consultant costs have been reduced with the receipt of a $62,000 Department
of Commerce grant. The consultant contract is being amended to refine their work and recognize repeal
of Ordinance 4079 regarding the planned action EIS. With regard to facilitating a successful public
process, she assured Edmonds goes well beyond community engagement requirements which requires
incredible staff resources. The interested party email list has 900+ people. Jeff Levy, the term limited
employee who has been assisting with the comprehensive plan, has accepted a full-time position
elsewhere.
Questions and discussion followed regarding ways to get the word out, support for a newsletter on
Received for Filing, the comprehensive plan email list, information available on Everyone's Edmonds
webpage, the DEIA Commission's appreciation for outreach, including a timeline of outreach on the
Everyone's Edmonds webpage, incorporating the Climate Action Plan into the Sustainability and
Environment Element.
Packet Pg. 13
7.1.b
06/18/24 PSPHSP Committee Minutes, Page 2
2. Arlington Airport Use Agreement
Ms. Ahlert advised the PSPHSP committee previously recommended moving this agreement to the
consent agenda; however, due to a $30 rate increase, the agreement with the $30 rate increase had to
be reconsidered. Arlington has not had a contract related to use of the airport prior to 2024.
Committee recommendation: Consent Agenda
3. Municipal Employees Benefit Trust (MEBT) Updates
Ms. Wagener provided an introduction, explaining employees and councilmembers contribute to MEBT
in lieu of social security.
Mr. Curran, MEBT committee member for 9 years and Edmonds' MEBT president since 2019, reviewed
the history of MEBT; started in October 1972 by the City of Bellevue to manage assets of employees in
the retirement system in lieu of social security, partners municipalities include Bellevue, Edmonds,
Federal Way, Kirkland, Mill Creek, Redmond, and Woodinville and Norcom. MEBT has 5,800 members
and approximately $1 billion in assets. The portfolio is managed by UBS Institutional Consulting Group
Northwest. In addition to MEBT, employees also have Public Employees Retirement System (PERS).
Employees and the City contribute to MEBT what would have paid to Social Security. MEBT is a 401A
plan, mandatory participation by all employees. Employees are also offered an optional 457 deferred
compensation plan. The City's MEBT plan currently has a 7-year vesting schedule for employee
contributions; over the past decade, some cities have reduced their schedule. He reviewed the
investment advisory committee, quarterly MEBT committee meetings, and MEBT performance in 2024.
Questions followed regarding whether employment with a partner municipality can be added to vesting,
whether a change in the vesting period affects all participants, UBS's investment portfolio, number of
participants in MEBT, employee eligibility for MEBT, and number of vested employees in Edmonds.
Ms. Wagener relayed at their May 2024 meeting, the MEBT committee voted to change the vesting
period from 7 years to 3 years with a schedule matching Bellevue. This change does not result in an
additional cost to the City, but will likely affect forfeitures, the amount not vested when an employee
separates. The MEBT committee also voted to provide the option for MEBT enrollment for limited term
employees whose work assignment is expected last more than five months. This change does not result
in an additional cost to the City.
Questions and discussion followed regarding term limited employees currently not being eligible to
enroll in MEBT, and information to include in the packet and in the presentation to council.
Committee recommendation: Full council
4. Proposed Listing of 428 3rd Ave N on the Edmonds' Register of Historic Places
PLN 2024-0018
Ms. Brokenshire reviewed
Effects of listing on the register
o Honorary designation denoting significant association with the history of Edmonds
o Prior to commencing any exterior work on a register property (excluding repair and
maintenance), owner must request and receive a certificate of appropriateness from HPC
o HPC may review removal if the owner does not receive a certification of appropriateness
o May be eligible for special tax valuation on their rehabilitation
Designation criteria
o Significantly associated with the history, architecture, archeology, engineering or cultural
heritage of Edmonds
Packet Pg. 14
7.1.b
06/18/24 PSPHSP Committee Minutes, Page 3
o Has integrity
o At least 50 years old, or has exceptional important if less than 50 years old
o Falls into at least one of designation categories ECDC 20.45.010.A-K
o Formal listings only require the property owner's consent and approval by city council per
20.45.020. E
428-3rd Ave N
o Constructed in 1926
o Significance: an intact representation of Dutch Colonial residential construction from the
early 20`" Century. The house illustrates local building techniques and materials. Style of
Merritt Homes
o The HPC held public hearing on April 11, 2024; forwarded a recommendation to the city
council to list the house on the Edmonds' Register of Historic Places
Excerpt from HPC April 11, 2024 meeting minutes and the HPC unanimously recommendation
for approval to the Register of Historic Sites.
Conclusion and Recommendation
o HPC found property met the criteria and eligibility for designation on the Edmonds Historic
Register
o HPC recommends the property be listed on the Edmonds Register of Historic Places
o The ordinances would be included on council Consent Agenda in July.
Questions and discussion followed regarding whether the house was a "kit house," whether the house
is a Merritt Home, minor upgrades that are permitted such as solar panels, other historic buildings with
solar panels, the detached garage, and support for listing the house on the Edmonds' Register of
Historic Places.
Committee recommendation: Consent Agenda.
3. ADJOURN
The meeting was adjourned at 4:46 pm.
Packet Pg. 15
7.1.c
FINANCE COMMITTEE MEETING
June 18, 2024
Elected Officials Present Staff Present
Councilmember Will Chen (Chair) Kim Dunscombe, Deputy Admin. Serv. Director
Councilmember Jenna Nand Todd Tatum, Comm., Culture & Econ. Dev. Dir.
Council President Vivian Olson (ex-officio) Scott Passey, City Clerk
Mayor Mike Rosen
CALL TO ORDER
The Edmonds City Council Finance Committee meeting was called to order virtually and in the City
Council Conference Room, 121 — 5` Avenue North, Edmonds, at 5:30 pm by Councilmember Chen.
2. COMMITTEE BUSINESS
1. ERP Update
Ms. Dunscombe reported she, Information Services Manager Brian Tuley, and legal have reviewed the
contract and it is ready to come to council. Once the City is in the queue for implementation for the new
ERP system, the new annual maintenance fee applies. The wait time for implementation is 6-8 months
as all the entities currently using Eden are transitioning to the new ERP. Tyler Technologies is
dedicating less staff to respond to inquiries related to Eden. Councilmember Chen explained the new
ERP is also a Tyler Technologies software, just a different platform.
Questions and discussion followed regarding the City not having a choice related to upgrading because
Eden is being sunsetted, increased rates in the 2024 technology fund related to implementation,
inclusion of new rates in the 2025/2026 budget, and Tyler's practice of starting the new maintenance
fee when an entity signs the contract.
Committee recommendation: Informational Update
2. May 2042 Monthly Financial Report
Ms. Dunscombe referred to General Fund highlights, advising the trends and themes haven't changed
much. She highlighted:
• General Fund positive cash balance
• Negative cash balance in streets
• Negative cash balance in capital Fund 332 due to timing of the receipt of the grant for the Mee
property
• General Fund revenues are 6.5% above the monthly budget forecast in 2024 due to a $385,000
transfer from Fund 016, Building Maintenance Bond Fund for interest paid on the bonds.
• Year-to-date school zone camera revenue is approximately $216,000.
• Increase in General Fund revenue primarily due to building and development revenue from
large, one-time projects
Questions and discussion followed regarding appreciation for the monthly highlights page, interest
charged to the General Fund and Street Fund for negative cash balance, the interest rate charged for
internal borrowing, a suggestion to add a footnote to the report regarding the interest rate charged for
internal borrowing, offsetting expenses and labor associated with some revenues, whether school zone
camera revenue can be reported as a special revenue fund or subfund of General Fund, accounting for
Packet Pg. 16
7.1.c
06/18/24 Finance Committee Minutes, Page 2
labor as an offset to school zone camera revenue, assigning a project number to school zone cameras,
actual REET and property tax revenue compared to budget, effect on the Finance Department of moving
committee meetings to the third week of the month, and appreciation for the up-to-date financial
information.
Ms. Dunscombe continued her review of General Fund expenses, highlighting settlement of the EPOA
contract and retro paid in May, sale of Utility Fund bonds that will show in the June report, reduced
Water Utility expenses, and timing of the receipt of large Storm Utility grants.
Questions and discussion continued regarding whether the state's transportation budget will impact
grants the City has been awarded, Administrative Services expenditures in May, settlement of EPOA
contract that affected Police Department expenditures, $3.2 million vacancy rate adjustment in the 2024
non -departmental budget, observation that the Police Department is understaffed but expenditures
exceed budget, allocating the vacancy rate adjustment to departments, funds included in the 2024
budget for the EPOA contract, whether allocating the vacancy rate adjustment would affect future
negotiations, having union contracts terminate mid -year in the future, investment portfolio summary,
appreciation to administration for reallocating the Snohomish County investment pool to the State
investment pool which has higher rate of return, and the importance of up-to-date and transparent
information.
Committee recommendation: Received for Filing
3. Resolution Budget Calendar
Ms. Dunscombe commented on the upcoming biennial budget, zero based budget, and priority based
budgeting for the General Fund and Street Fund. She reviewed the 2025-2026 Budget Schedule,
highlighting:
• July 2 Mayor Rosen presentation about priority based budgeting
• August 13 mid -year report
• August 16 Council retreat
• September 24 CIP/CFP presentations
• October 1 Mayor's Message and presentation of preliminary biennial budget
• Opportunities to schedule special council meetings for budget deliberations
• Goal to pass budget by Thanksgiving
• November 27 Property tax levy filed with county
Questions and discussion followed regarding details that are not included on the calendar, including
special meetings on the budget schedule, concern community outreach is not included in schedule, and
the need for a monthly newsletter to inform the public.
Committee recommendation: Consent Agenda
4. Community Survey Info Brief
Mr. Tatum advised this is an informational briefing; development of the survey has not been completed.
With priority based budgeting, cities commonly do a budget priorities survey to measure performance
and importance. The survey will be a piece of the priority based budgeting process. The City has
contracted with EMC Research who has done surveys for several cities including Redmond and
Kirkland. The survey will be a web or phone based survey, approximately 1,200 calls to generate about
400 responses which will provide a statistically significant sample, +/- 3-5% confidence rate.
Directors, the mayor and EMC are working to develop questions. The survey will reviewed by the
Community Budget Advisory Panel being developed by the mayor, and possibly the Finance
Packet Pg. 17
7.1.c
06/18/24 Finance Committee Minutes, Page 3
Committee. He reviewed the projected timeline: survey out late June, results by late July, and council
briefing regarding the result on August 13. As a lot of community members will be interested in
expressing opinions and not everyone will have an opportunity to take the statistically valid survey,
consideration is being given to a separate collector of responses from community partners and
underrepresented communities. Mayor Rosen advised up to six community focus group meetings will
be held where the public can provide input.
Questions and discussion followed regarding a request for administration to bring survey questions to
council before the survey is disseminated to the public to avoid biased questions that lead to an
outcome, ensuring geographic and age diversity, including cell phones and landlines, outreach to
underrepresented communities, and the value of a biennial community survey.
Committee recommendation: Information
3. ADJOURNMENT
The meeting was adjourned at 6:49 pm.
Packet Pg. 18
7.2
City Council Agenda Item
Meeting Date: 07/2/2024
Approval of Council Special Meeting Minutes June 25, 2024
Staff Lead: Council
Department: City Clerk's Office
Preparer: Scott Passey
Background/History
N/A
Recommendation
Approval of Council Meeting minutes as part of the Consent Agenda.
Narrative
Council meeting minutes are attached.
Attachments:
2024-06-25 Council Special Minutes
Packet Pg. 19
7.2.a
EDMONDS CITY COUNCIL
SPECIAL MEETING
DRAFT MINUTES
June 25, 2024
ELECTED OFFICIALS PRESENT
Mike Rosen, Mayor
Vivian Olson, Council President
Neil Tibbott, Councilmember
Will Chen, Councilmember
Michelle Dotsch, Councilmember
Susan Paine, Councilmember
Chris Eck, Councilmember
Jenna Nand, Councilmember
1. CALL TO ORDER
STAFF PRESENT
Sharon Cates, City Attorney
Jeff Taraday, City Attorney
Rob English, City Engineer
Ross Hahn, Wastewater Treatment Plant
Nate Gockel, HKA
Scott Passey, City Clerk
The Edmonds City Council special meeting was called to order at 5:45 pm by Mayor Rosen in the Council
Chambers, 250 5th Avenue North, Edmonds, and virtually.
2. EXECUTIVE SESSION
The Council then convened in executive session for one hour to discuss pending or potential litigation per
RCW 42.30.110(1)(i).
3. RECONVENE IN OPEN SESSION
The meeting reconvened at 6:45 p.m.
ADJOURNMENT
With no further business, the Council meeting was adjourned at 6:45 p.m.
Edmonds City Council Draft Minutes
June 25,2024
Page 1
Packet Pg. 20
7.3
City Council Agenda Item
Meeting Date: 07/2/2024
Approval of claim checks and wire payment.
Staff Lead: Kimberly Dunscombe
Department: Administrative Services
Preparer: Nori Jacobson
Background/History
Approval of claim checks #263097 through #263163 dated June 20, 2024 for $641,733.71 (re -issued
check #263127 $300.00) and wire payment of $12,647.62.
Staff Recommendation
Approval of claim checks and wire payment.
Narrative
The Council President shall be designated as the auditing committee for the city council. The council
president shall review the documentation supporting claims paid and review for approval by the city
council at its next regular public meeting all checks or warrants issued in payment of any claim, demand
or voucher. A list of each claim, demand or voucher approved and each check or warrant issued
indicating the check or warrant number, the amount paid and the vendor or payee shall be filed in the
city council office for review by individual councilmembers prior to each regularly scheduled public
meeting.
Attachments:
Claims 06-20-24 Agenda copy
Packet Pg. 21
7.3.a
apPosPay Positive Pay Listing Page: 1
6/20/2024 10:57:28AM City of Edmonds
Document group: jacobson
Vendor Code & Name Check # Check Date Amount
061029
ABSOLUTE GRAPHIX
263097
6/20/2024
929.50
074143
AFFORDABLE WA BACKFLOW TESTING
263098
6/20/2024
2,390.00
067736
AMERICANS FOR THE ARTS
263099
6/20/2024
100.00
073573
ANIXTER
263100
6/20/2024
595.60
074718
AQUATIC SPECIALTY SERVICES INC
263101
6/20/2024
2,087.08
074714
BUELL RECREATION LLC
263102
6/20/2024
91.30
073029
CANON FINANCIAL SERVICES
263103
6/20/2024
572.56
003510
CENTRAL WELDING SUPPLY
263104
6/20/2024
252.64
073249
CG ENGINEERING, PLLC
263105
6/20/2024
14,107.50
075384
CONOM LAW FIRM PLLC
263106
6/20/2024
1,455.00
073823
DAVID EVANS & ASSOC INC
263107
6/20/2024
1,992.45
064531
DINES, JEANNIE
263108
6/20/2024
820.00
079616
DUARTE, RAEANN
263109
6/20/2024
213.06
076610
EDMONDS HERO HARDWARE
263110
6/20/2024
271.74
008705
EDMONDS WATER DIVISION
263111
6/20/2024
10,112.39
008812
ELECTRONIC BUSINESS MACHINES
263112
6/20/2024
1,073.13
009350
EVERETT DAILY HERALD
263113
6/20/2024
58.48
072493
FIRSTLINE COMMUNICATIONS INC
263114
6/20/2024
292.83
078226
GEIGLE SAFETY GROUP INC
263115
6/20/2024
191.91
071845
GENERAL PACIFIC INC
263116
6/20/2024
3,094.00
012199
GRAINGER
263117
6/20/2024
253.00
012560
HACH COMPANY
263118
6/20/2024
514.93
066575
HERC RENTALS INC
263119
6/20/2024
1,328.61
079287
HERITAGE PROF PRODUCTS GROUP
263120
6/20/2024
713.79
072647
HERRERA ENVIRONMENTAL
263121
6/20/2024
2,884.21
074966
HIATT CONSULTING LLC
263122
6/20/2024
200.00
078923
HKA GLOBAL INC
263123
6/20/2024
18,480.00
067862
HOME DEPOT CREDIT SERVICES
263124
6/20/2024
104.85
061013
HONEY BUCKET
263125
6/20/2024
581.90
073548
INDOFF INCORPORATED
263126
6/20/2024
230.83
078250
KAUFER DMC LLC
263127
6/20/2024
300.00
072650
KCDA PURCHASING COOPERATIVE
263128
6/20/2024
232.26
074158
LASER UNDERGROUND & EARTHWORKS
263129
6/20/2024
498,935.05
074263
LYNNWOOD WINSUPPLY CO
263130
6/20/2024
373.97
020900
MILLERS EQUIP & RENTALL INC
263131
6/20/2024
217.93
075266
MORGAN MECHANICAL INC
263132
6/20/2024
1,966.90
079564
MOTOXOXO COMMAND CENTER
263133
6/20/2024
177.00
067834
NATIONAL CONSTRUCTION RENTALS
263134
6/20/2024
39.78
024960
NORTH COAST ELECTRIC COMPANY
263135
6/20/2024
856.82
078127
OWENS PUMP & EQUIPMENT
263136
6/20/2024
2,236.36
027060
PACIFIC TOPSOILS
263137
6/20/2024
1,443.00
027450
PAWS
263138
6/20/2024
2,752.00
072507
PEACE OF MIND OFFICE SUPPORT
263139
6/20/2024
232.00
008350
PETTY CASH
263140
6/20/2024
231.38
029117
PORT OF EDMONDS
263141
6/20/2024
4,567.65
079270
PRINTING PLUS
263142
6/20/2024
1,296.71
079613
R&R FOUNDATION SPECIALISTS LLC
263143
6/20/2024
159.47
074712
RAINIER ENVIRONMENTAL LAB
263144
6/20/2024
750.00
079174
SAVANNAH POWERS
263145
6/20/2024
514.50
079519
SECURITE GUN CLUB LLC
263146
6/20/2024
550.50
063306
SHERWIN-WILLIAMS
263147
6/20/2024
224.76
037375
SNO CO PUD NO 1
263148
6/20/2024
7,306.84
006630
SNOHOMISH COUNTY
263149
6/20/2024
245.00
Page: 1
Packet Pg. 22
apPosPay Positive Pay Listing
6/20/2024 10:57:28AM City of Edmonds
Document group: jacobson
Vendor Code & Name Check # Check Date Amount
079185
SYSTEMS FOR PUBLIC SAFETY INC
263150
6/20/2024
28,691.89
027269
THE PART WORKS INC
263151
6/20/2024
1,815.25
072649
THE WIDE FORMAT COMPANY
263152
6/20/2024
232.05
068141
TRANSPO GROUP
263153
6/20/2024
8,543.75
043935
UPS
263154
6/20/2024
24.53
064423
USA BLUE BOOK
263155
6/20/2024
6,331.39
069751
VESTIS
263156
6/20/2024
539.84
069751
VESTIS
263157
6/20/2024
230.87
069816
VWR INTERNATIONAL INC
263158
6/20/2024
569.49
075853
WAGENER, EMILY
263159
6/20/2024
213.73
067917
WALLY'S TOWING INC
263160
6/20/2024
842.76
075635
WCP SOLUTIONS
263161
6/20/2024
1,823.25
063008
WSDOT
263162
6/20/2024
40.70
011900
ZIPLY FIBER
263163
6/20/2024
531.04
GrandTotal:
642,033.71
Total count:
67
Page: 2
Packet Pg. 23
7.4
City Council Agenda Item
Meeting Date: 07/2/2024
Authorization to purchase (1) 2024 Freightliner 800 Series Jet Truck
Staff Lead: Oscar Antillon
Department: Public Works & Utilities
Preparer: Royce Napolitino
Background/History
The Sewer Division operates Unit #98-SWR, a 2007 Sterling Jet Truck. Pre -authorization recommended
for the consent agenda by Parks and Public Works Committee June 8, 2024.
Staff Recommendation
It is recommended that pre -authorization be given to the Department of Public Works to purchase (1)
2024 Freightliner Sewer Equipment Company of America 800 Series Jet Truck from SWS Equipment.
Sourcewell contract #101221-SCA.
The Mayor is authorized to approve the purchase amount when presented upon receipt of the 2024
Freightliner 800 Series Sewer Jet Truck.
Narrative
Unit #98-SWR a 2007 Sterling Jet Truck has been previously budgeted and approved for $340,000 as a
replacement in the 2024 Fleet Replacement Budget purchased with B-Fund monies. Delivery of this
Sewer Jet Truck is anticipated in June of 2024 and will require the Mayor's signature authorizing the
expense.
Pre -authorization to order this truck was given in July 2023 when presented as a budget amendment,
and again in the 2024 15T quarter budget amendment as a carryforward item.
Unit #98 will go to auction and the proceeds will be deposited back into the B-Fund.
Packet Pg. 24
8.1
City Council Agenda Item
Meeting Date: 07/2/2024
Blue Ribbon Panel Report
Staff Lead: Carolyn LaFave
Department: Mayor's Office
Preparer: Carolyn LaFave
Background/History
During the 2024 budget process, the Edmond's City Council declared a fiscal emergency in response to
the continuing deterioration of the financial condition in the City's General Fund. Upon taking office,
Mayor Rosen established a "Blue Ribbon Panel" (The Panel) to advise him on the issues related to this
matter. The Panel made a preliminary report covering the first two items of the four-part scope of The
Panel's work on February 20, 2024.
Staff Recommendation
No action, informational.
Narrative
The Panel has concluded the remainder of its work and is ready to provide advice and recommendations
to the Mayor and to the City. This presentation will briefly review the topics previously discussed in
February and provide information on the remaining elements of the scope of the project.
Along with the presentation, at the July 2"d meeting, The Panel will provide electronic copies of the
following items representing the Panel's work:
1. Executive Summary - Conclusions and Recommendations
2. Strategic Approach to Fiscal Resiliency
3. Fiscal First Aid 12 Step Project Plan
4. Financial Health Model
5. Memorandum to Mayor Rosen from Mike Bailey
re: Report of Findings to Date (February 20, 2024)
6. "Price of Government", "Priority Based Budgeting" descriptions
Attachments:
BRP Report to Council July 2
Memo re recommendations and conclusions final
Strategic Approach to Fiscal Resilence for the City of Edmonds Final
Fiscal First Aid Project Plan Final
The Price of Government
Packet Pg. 25
8.1.a
Mayor Rosen's Blue Ribbon Panel
Report to City Council
Presented by Mike Bailey, Financial Consultant
July 2, 2024
Packet Pg. 26
Mike Bailey, CPA
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Carl Zapora
Blue -Ribbon Panel
Rick Canning
Erin Monroe, CPA
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8.1.a
The Panel's Work Products
1. Executive Summary
2. Strategic Approach to Fiscal Resiliency
3. Fiscal First Aid 12 Step Project Plan
4. Financial Health Model
5. Memo to Mayor Rosen — February 20, 2024
6. Price of Government Description
Packet Pg. 28
8.1.a
Our Charge
1. What is the current status of the City's finances
2. How did this problem occur
3. Make recommendations to correct the situation
4. Make recommendations that return the City to long-term
financial health
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Packet Pg. 29
8.1.a
Our Methods
1. Utilize the GFOAs 12 steps to Fiscal First Aid
2. Reviewing past and current budgets
3. Requested and reviewed information that enabled deeper
analytics of the situation
4. Reviewed the Fire and EMS service issues the City is currently
considering and their implications
5. Explored various "what -if" scenarios
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8.1.a
Specific Responses to Our Charge
What is the current status of the City's finances
1. 2023 ending fund balance in the General Fund is $2.492 million
2. This compares unfavorably to the budgeted EFB of $3.047 million
3. The budget imbalance in 2024 is about $12.5 million
(as illustrated on the next slide)
Packet Pg. 31
8.1.a
DECISIONS
RFA funding from ARPA
Contra -Account $3.20
Examples include: Negotiated union contract,
additional police cars and technology,
replenishing deferred bldg. Maint. fund, library
repairs, new financial software, staff additions,
staff salaries.
Revised Sub Total "Problem" $12.5
Using the reserve Funds $8.00
Total "Problem" $20.50
Packet Pg. 32
8.1.a
Specific Responses to Our Charge
How did this problem occur
1. Budgeted expenditures exceeded revenues in 3 of the past 4 years
1. Amendments to the budgets made this worse in each year
2. Revenues were over -estimated (enabling budgeted expenditures to be
higher than actual revenues in 3 of the past 4 years.
ACTUAL Final Budget Actual
(thousands) 2019 2019
Final Budget Actual
2020 2020
Final Budget Actual
2021 2021
Final Budget Actual
2022 2022
Final Budget Actual*
2023 2023
Revenues 41,113
42,263
42,576
40,937
42,190
43,697
45,080
41,637
52,599
50,005
Expenditures 44,151
FB effect (3,038)
41,212
1,051
46,693
(4,117)
43,332
(2,395)
45,864
(3,674)
41,726
1,971
53,791
(8,711)
45,422
(3,785)
63,984
(11,385)
59,677
(9,672)
* unaudited / preliminary
Revenue differences
1,150
(1,639)
1,507
(3,443)
(2,594)
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8.1.a
I
Illustration of Fund Balance Decline
60,000
50,000
40,000
30,000
10,000
2018 2019 2020 2021 2022 2023 2024*
Revenues Expenditures — — — Expenditures (revised) Ending Fund Balance
Packet Pg. 34
8.1.a
0
Specific Responses to Our Char e_
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Make recommendations to correct the situation
1. New sources of non -tax revenues: increased fees, red light cameras,
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and other revenue increases; o
2. Expense reductions: head count reductions, furloughs, professional
service and other non -compensation reductions;
21
3. New taxes: The 1% annual increase for EMS, and General Fund (GF)
should be done. Additional property levy for GF and / or joining SCF will =
0
require a vote and would not impact the revenues until 2026.
(Note: with the lag of significant revenue increases until 2025, The Panel recommends
"bridging" the 2025 budget with borrowing internally from available surplus resources
in other City funds)
Packet Pg. 35
8.1.a
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Specific Responses to Our Charge -
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Make recommendations that return the City to long-term financial health
(informed by the GFOA's Fiscal First Aid framework) m
1. Continue generic treatments (hiring, scrutinize expenses, begin streamlining) 0
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2. Develop and use a financial health model (a draft is provided)
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3. Develop model and monitor cash-flow(done) _
4. Review and develop relevant financial policies (in process) _
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5. Understand future operating budget impacts from capital improvements
6. Implement Priority Based Budgeting (PBB) to right -size (in process)
7. Evaluate revenues in the context of the "Price of Government"
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8.1.a
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Specific Responses to Our Char e continued_
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Make recommendations that return the City to long-term financial health
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8. Make updating related technology a priority
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9. Evaluate deferred maintenance on City assets and address
10. Address the risks associated with this work N
21
11. Develop a communication plan to keep stakeholders informed
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12. Determine if the General Fund is subsidizing other funds
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13. Review investment rates of return to maximize value
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14. Evaluate capital funding options and develop a capital spending plan
15. Forecast the capital budget impacts for a rolling five -years Moti
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Illustration of Future Fund Balances
60,000
40,000
20,000
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8.1.a
0
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Fire and EMS Service Issues
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The Panel is aware of the current issues related to providing fire and
emergency medical services to the City.
While there are clear budgetary implications related to alternatives, .0
the Panel did not specifically address what the City should do to
provide these services. N
21
We felt that it wasn't within the scope of the Mayor's request.
Clearly, the alternatives should be evaluated from provision of °
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service, costs and sustainability of the chosen model perspectives. Q
The Financial Health Model facilitates such a review and illustrates
the impact on taxpayers and rate -payers in the City. °°
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8.1.a
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Conclusion
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The magnitude of financial challenges facing the City cannot be
underestimated.
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Community confidence in the City's leadership will be essential.
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The work to remedy the situation will be difficult — and important.
The overall impact on the City's tax and ratepayers should be of =
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significant concern in identifying solutions.
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Our work took time to do properly — we feel we were given adequate
time and resources to provide helpful feedback to the Mayor.
We appreciate the support provided by the Mayor and staff. Moti
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8.1.a
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8.1.b
MEMORANDUM
TO: Mayor Mike Rosen, City of Edmonds, WA
FROM: The Mayor's Blue -Ribbon Panel
SUBJECT: Executive Summary - Recommendations and Conclusions
DATE: June 28, 2024
This memorandum represents our recommendations and conclusions as we complete the tasks
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that you have asked of us in our work with the City of Edmonds (City). We appreciate your support
for this work, the openness to our questions and the transparency with which you and your staff
have approached these challenging issues.
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Our Charge
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You convened the "Mayor's Blue -Ribbon Panel" (the Panel) in response to the Edmond's City
Council's declaration of a "fiscal emergency" in the context of their financial policies. In forming the
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Panel you asked that we:
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1. Ascertain the City's financial condition with a focus on the City's General Fund,
2. Determine how the City found itself with this problem,
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4. Make recommendations for the City's financial and budgetary practices that would help N
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return the City to long-term financial health.
Our Methods
The Mayor and Panel determined to use the Government Finance Officers Association (GFOA)
Fiscal First Aid methodology. This is a "12 step" process and serves as the construct for the "12
Step Project Plan" which is one of the work products attached to this memorandum. The Panel
worked through the topics and issues that the 12-step approach raises. This represents a very
comprehensive method to evaluate issues such as this. The Panel's work included reviewing past
and current budgets, requested and reviewed additional deeper analytics of certain expenses
(professional services, employee additions, compensation, etc.), review of the fire & EMS service
options, and various "what if scenarios".
The topics and issues incorporated into the 12-step approach led the Panel to investigate many and
numerous elements of the City's fiscal planning and management practices.
Specific Responses to the Charge to the Panel
1. Ascertain the condition of the City's financial condition with a focus on the City's General
Fund,
The City's actual ending fund balance in the General Fund at the end of 2023 is $2.492
million. This is compared to the budget estimate of $3.047 million.
2. Determine how the City found itself with this problem,
As illustrated in the table below, expenditures were in excess of revenues in years 2020
through 2023 by a total of $13.9 million. More information about the details of this element
Packet Pg. 42
8.1.b
Memorandum to Mayor Rosen re: Blue Ribbon Panel — Executive Summary
is both below in this memo and in the original memo dated February 20, 2024.
ACTUAL
(thousands)
Revenues
Expenditures
FB effect
* unaudited / i
Final Budget
2019
Actual
2019
Final Budget
2020
Actual
2020
Final Budget
2021
Actual
2021
Final Budget
2022
Actual
2022
Final Budget
2023
Actual*
2023
41,113
42,263
42,576
40,937
42,190
43,697
45,080
41,637
52,599
50,005
44,151
41,212
46,693
43,332
45,864
41,726
53,791
45,422
63,984
59,677
(3,038)
1,051
(4,117)
(2,395)
(3,674)
1,971
(8,711)
(3,785)
(11,385)
(9,672)
xeliminary
Revenue differences 1,150 (1,639) 1,507 (3,443) (2,594)
Budget deficits have continued with current expenditures in the 2024 budget being
approximately $12.5 million more than expected revenues as illustrated in the table below.
Decisions
Impact (millions)
RFA funding from ARPA
$6.25
Contra -Account*
3.20
Sub -Total "Problem"
$9.45
Additional Unbudgeted Impacts
Examples: Negotiated union contract, additional
police cars and technology, replenishing deferred
bldg. maintenance fund, library repairs, new financial
software, staff additions, staff salaries
3.05
Revised Sub -total "Problem"
$12.50
Used Reserve Funds**
$8.00
* The non -departmental budget included an off -set to authorized expenditures, a negative
budget amount of $3.2 million which represented open staff positions at the time, as a
budget balancing action.
** Reserve Funds to be replenished up to required Reserve Funds levels as prescribed by
current City Council policy
3. Make recommendations with regard to correcting the situation -
See below
4. Make recommendations for the City's financial and budgetary practices that would help
return the City to long-term financial health -
See below and the detailed Fiscal First Aid 12 Step Project Plan.
Summary of Observations and Recommendations
The following is a summary of our observations and recommendations. More detail on each is
found in the attachments. The attachments include:
1. Fiscal First Aid 12 Step Project Plan —this describes the responses of the Panel in the
context of the GFOA's detailed Fiscal First Aid 12 step methodology elements. This Plan has
attachments as well which document answers to certain questions within the Project Plan.
2. Strategic Approach to Fiscal Resiliency — A series of recommendations for future steps to
help resolve the current fiscal emergency and set the stage for assuring the City avoids
similar problems in the future.
3. Financial Health Model —A financial planning model that provides historical context and
enables modeling various alternative approaches to financial planning for the future. The
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8.1.b
Memorandum to Mayor Rosen re: Blue Ribbon Panel — Executive Summary
Panel recommends that the City makes a habit of evaluating decisions of significance that
have fiscal implications with this model.
Observations —
Fund Balances in the General Fund are Far Below Required Policy Targets. The City finds itself
with fund balances in its General Fund below policy target levels largely due to additions to
authorized expenditures which occurred in the 2022 and 2023 budget processes. Additionally,
these increased expenditures were augmented with additional authorized expenditures in budget
amendments in both years. Revenues were not increased nor were sources of funding for the
budgeted increases in expenditures identified at the time of the proposed budget amendments. As
a result, expenditure budgets have exceeded revenue estimates by almost $20 million during the
most recent two-year period.
Revenue Estimates Were Overstated. Revenue estimates were overstated in 2020, 2022 and
2023 in a cumulative amount of $7.6 million. Revenue estimates are the basis for balancing a
budget against authorized expenditures. Therefore, if it weren't for staff underspending the
authorized budgets, deficits in these three years could have been as high as $27.6 million.
Spending was less than budgeted amounts by $16 million during these three years which meant
that expenditures exceeded revenues by $11.6 million — still a significant problem.
Sufficient Information Was Not Available to the Council to Make Proper Decisions. Revenue
estimates were not adequately documented which limited the potential for scrutiny of the
estimates. Long-range forecasts were provided but contained no insights into the assumptions
(which proved to be unrealistic). Inadequate documentation and discussion occurred when budget
amendments were proposed. Amendments in 2020-2023 amounted to a net increase of
expenditures above revised revenues of $11.3 million.
The Budget Process and Related Software Systems are Antiquated. The City has been
embarking on an update to their core financial systems for years (the system was purchased by
another company in 2004 and subsequently discontinued). The City financially committed to a
contemporary budget development and transparency system two years ago but never implemented
the software. The software subscription costs are being paid by the City with no benefit from the
systems. No centralized procurement systems are in place. No methods to evaluate the
effectiveness of City programs using program metrics exists. An apparent lack of collaboration
within City operations at several levels likely contributed to inefficient services to the community.
Recommendations —A detailed series of recommendations are incorporated into the project
documents attached to this memorandum.
The current budget imbalance needs to be resolved with a combination of:
1. New sources of non -tax revenues: Red light cameras, increased fees, and other revenue
increases,
2. Expense reductions: head count reductions, furloughs, professional service and other non -
compensation reductions,
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8.1.b
Memorandum to Mayor Rosen re: Blue Ribbon Panel — Executive Summary
3. New taxes: The 1% annual increase for EMS, and GF should be done for 2025 and
2026. Additional property levy for GF and / or joining SCF will require a vote and would not
impact the revenues until 2026.
(Note: with the lag of significant revenue increases until 2025, The Panel recommends
"bridging" the 2025 budget with borrowing internally from available surplus resources in
other City funds).
A summary of detailed recommendations include:
1. Continue generic treatments already implemented
a. Scrutinize hiring and limit to only essential positions; C
a
b. Monitor overtime use and limit as appropriate;
d
c. Evaluate transfers to reserve replacement funds until fiscal stability is achieved;
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d. Scrutinize expenditures above a prescribed threshold, currently at a recommended
a
$1,000;
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e. Do not increase budget authority (amendments) without a corresponding increase
in anticipated revenues unless absolutely necessary;
2. Develop a Financial Health Model
a�
a. Such a model has been developed by the Panel and is attached,
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b. Determine if it is in the community's best interest to have relatively high reserve
c
level targets for the City's general government, especially in the context of the
current challenge to rebuild them;
3. Develop and evaluate a monthly cash -flow model
a. Such a model is developed and is now in use by the Finance Committee;
4. Develop financial policies that clarify boundaries and guidelines
a. Certain financial policies have been developed and are being considered by the
Finance Committee;
b. Develop citywide procurement policies that improve the efficiency, clarify City
systems and improve accountability,
c. Once policies are in place, illustrate the status of compliance in future budgets and
determine how best to hold parties accountable for compliance;
5. Incorporate future operating budget impacts into the evaluation of capital improvements
and ensure adequate resources will be available to support the operations and
maintenance of capital improvements before they are approved;
6. Utilize a contemporary approach to budget development such as Priority Based Budgeting
(PBB)
a. Incorporate a method to stratify City programs to inform budget choices and stop or
reduce low priority services,
b. Improve internal collaboration,
c. Obtain objective evaluations of the value to City programs and related costs to the
community,
d. Scrutinize certain expenditures using a "zero -based" model (do not assume the
current level of funding is correct),
e. Develop performance measures that enable evaluation of the effectiveness of City
programs and incorporate into the budget process;
7. Evaluate revenues in the context of the "price of government" (POG)
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8.1.b
Memorandum to Mayor Rosen re: Blue Ribbon Panel — Executive Summary
a. Emphasize the taxpayer / ratepayer perspective when evaluating alternative revenue
scenarios,
b. Improve transparency in revenue forecast estimates;
c. Understand the level of general government subsidy for each City program,
d. Determine if the available general government revenues are sufficient to provide for
the desired service levels where gaps exist between program revenues and program
costs,
e. Evaluate current City assets and determine the most effective means of meeting the
City's needs with these assets (some might be sold, consolidated or repurposed), c
f. Propose enhancing general government revenues if necessary;
8. Make updating related technology a priority; m
9. Evaluate the degree to which maintenance has been deferred on City assets such as M
buildings, roadways and systems,
a
a. Consider a funding strategy that maintains City assets properly,
b. Develop a bond strategy to address the long-term capital needs of the City;
10. Incorporate risk assessment and management while implementing these
recommendations CO
a. The level of change being recommended is high which increases risk,
b. The nature of the changes are complex and increase risk,
c. Insufficient training and technology tools are in place which raises risk; r_
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11. Develop a communication plan to achieve a high level of transparency of this work and the 3
implementation of recommendations
a. Consider establishing a standing City commission or committee to observe and
advise the City on financial matters,
b. Rebuild public trust in the City's ability to manage fiscal health.
12. Evaluate if costs (including payroll) are being incurred in the general fund to oversee and
supervise activities of other funds, such as the utility funds. Such costs should be
transferred to the specific fund and then considered in determining needed revenue of the
specific fund
13. Investments:
a. Review performance returns of each of the cities investments and strive to increase
returns without incurring more risk. Example, A substantial balance until very
recently was invested in the Snohomish County LGIP earning less than half the rate
of the Washington State LGIP at 5.41 %.
14. Budgeting and future year forecasts should include investment in capital expenditures that
are anticipated to be funded by general fund revenues.
15. Capital Budgets, including all funding sources and impacts on general and other funds
ongoing maintenance of such investments should be forecast for a 5 year period and
updated each budget cycle.
A significant community service involves fire and Emergency Medical Services (EMS). The City has
moved from an in-house model to a contract with the South Snohomish County Regional Fire
Authority (RFA). While the contract has become more expensive overtime the RFA has determined
that the contract payments are insufficient to cover the costs. Consequently, the RFA provided
notice that the contract would be terminated at the end of 2025. While this is a significant
Packet Pg. 46
8.1.b
Memorandum to Mayor Rosen re: Blue Ribbon Panel — Executive Summary
community service and a large budgetary expense, the Panel does not believe the problems it was
asked to evaluate were significantly impacted by the contract with the RFA. The Panel recommends
that these matters be resolved independently of each other.
Conclusion
It was appropriate for the City Council to declare a fiscal emergency last October. The severe
depletion of the City's fund balances and reserves is a legitimate concern. The degree of the
financial challenges that the City is facing should not be underestimated. The work to restore
financial stability will be difficult and it will be important for the administration and the Council to
C
do the difficult work in a timely fashion to achieve that goal. The impact on taxpayers and
°a
ratepayers could be significant if the City chooses to propose revenue increases and the impacts of
d
services level reductions need to be weighed should the City include expenditure reductions. These
decisions should be considered carefully.
a
Even though the complexity of the fiscal emergency presented a significant challenge to the panel
c
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to conduct its work in a timely and thorough manner, we were determined to be systematic and
complete in our efforts.
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In closing, we want to express our appreciation for the support and space provided in order for us to
complete these tasks and we encourage the City to stay diligent in its efforts to improve the long- _
term fiscal health of our City. Edmonds has a lot to offer and we recognize this can only be realized c
with a fiscally strong and stable city government.
Attachments:
1. Strategic Approach to Fiscal Resiliency
2. Fiscal First Aid 12 Step Project Plan
3. Financial Health Model
4. Memorandum to Mayor Rosen from Mike Bailey
re: Report of Findings to Date (February 20, 2024)
5. "Price of Government" descriptions
6. Blue -Ribbon Panel Members
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8.1.c
Proposed Strategic Approach to Fiscal Resilience for the City of Edmonds
Here is the proposed path forward.
1. Utilize a Priority Based Budget process (PBB). (Note: the BRP examined the potential of
recommending that the City engage ResourceX, an experienced service provider of PBB and
decided that the advantages of this facilitated approach were not worth the additional costs
when budgets are already in distress).
a. A priority -based budget process which the council and community has expressed
interest in will serve as a strong foundation for the future.
b. Staff will develop budget programs to express their budget requests and relate these
programs to council and community priorities.
c. Program descriptions will be community focused and clearly illustrate the degree to
which the program requires a governmental subsidy (e.g. from property or other taxes)
d. Programs will be scored by a cross department staff team and the mayor's community
budget advisory committee against criteria to be developed (such as level of mandate,
fee recovery, alignment with equity goals, etc.)
e. Care should be taken to identify the impacts of state or federal mandates that imposed
financial obligations to the city (no associated resources came with the mandates).
2. "Zero -base" certain accounts in the budget process.
a. Any new positions originally authorized in budgets beginning in 2020 as well as any
positions currently not filled.
i. Positions should be assessed as to need in the context of the PBB approach
b. Ask staff to identify all expenditures anticipated within certain budget accounts (such as
professional services, training, travel, intergovernmental services, overtime
compensation, funding to outside organizations).
c. Consider circumstances where a volunteer or community -based organization can
provide the service.
d. Consider partnering with other organizations for non -core City programs.
3. Facilitated community meetings will be provided to brief on the issues and enable participants to
share their opinions on the tradeoffs we will confront with this upcoming biennial budget
process.
a. Conduct a community survey to learn from the community its priorities and assessments
of city efforts. (note: the survey schedule will be an important consideration)
b. The survey will be an important way to ground the city's budget work in the
community's priorities. Conduct community forums / focus groups which will be
informed by the survey results.
c. Use the decision units (programs) as a focus.
d. Compile the input into a framework for priorities and strategies that inform the budget
process. Share this work -product with the council as a starting point for their budget
priority setting retreat.
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8.1.c
e. Use this budget process to identify what the city should fund, and as a consequence
what the city won't fund —this reduces our current cost either by partnering with
others, outsourcing or eliminating / reducing programs. Again, this will be supported by
community input.
4. Based on the recommendations from the fire and EMS responsibility study make a
a
recommendation to the council with regard to a public vote regarding the property tax.
d
a. Considerations with respect to future fire and EMS services include:
i. Annexation to the South Snohomish County Regional Fire Authority,
c
a
ii. Explore contracting with neighboring fire / EMS service providers,
c
iii. Reinstating an Edmonds Fire / EMS Department, in-house,
iv. Conduct a longer -term analysis of the various cost option models to ensure
making a good long-term decision.
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v. If recommendation is to annex to the RFA, the BRP supports that effort.
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1. The BRP recommends Council consider a "revenue neutral" approach to
the city, which would create clear separation between the issue of
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providing fire and EMS service to the community from the fiscal distress
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that is not related to this issue.
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2. Alternatively, the City would benefit from an annexation to the RFA in an
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amount of about $6 million. Care should be taken to illustrate the ways
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in which City taxpayers would be impacted under either scenario.
b. If recommendation is to reinstate fire responsibility then a property tax levy lid lift effort
would be necessary.
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i. Such a levy could occur at any time.
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5. Develop a long-range financial planning model to clearly illustrate the assumptions and test
various scenarios that achieve fiscal resiliency.
a. Evaluate various revenue assumptions.
b. Model property tax levy options and fund balance rebuilding scenarios.
i. Such models can illustrate various assumptions related to the fire and EMS
service model decision in 4 above.
c. Make recommendations for timing, size and nature of changes to the base model that
achieve fiscal resiliency.
d. The BRP recommends that the City rebuild reserves to policy levels over time and not
bundle this aspect of the financial challenge into a revenue increase.
i. Additionally, the BRP recommends the City review the financial policy minimum
reserve levels for the General Fund to determine if it is too high.
6. Start the biennial budget process with steps 1 and 2 above.
a. Begin working with the department directors on the expectations for this upcoming
budget process.
i. Introduce the idea that program performance metrics will be essential in this
work — a new concept in Edmonds.
ii. Engage the department directors in their responsibilities for contributing to
fiscal resiliency and foster their active participation in the budgeting process.
Packet Pg. 49
8.1.c
b. Develop a calendar with the details of how we are going to build the budget.
i. Include the public's role (the research / surveys and community meetings
described in 2 above), the council's role starting with their policy direction at the
beginning of our work (but after the community meetings), the department
director's role and the finance office's role.
ii. Include specific dates for each element of this work
1. Submit the calendar to the council for their input and adoption.
c. Utilize the Priority -Based Budget approach which will deliver a process to follow, clear
alignment with community and council priorities. (see flow -chart description below)
i. Develop spreadsheets to facilitate the process and present clear opportunities
into the various levels (as defined by us) such as mandated service, core service,
important to have, nice to have, etc.
1. Clearly document the assumptions
2. Include an assumption of no cuts so that we can illustrate the larger
impact of the property taxes
3. Illustrate alternative scenarios
ii. Build the budget in a way that presents the priority -oriented choices for
council's consideration.
1. Illustrate general government subsidies for programs.
d. Propose alternative approaches to rebuilding the reserves
i. Consider recommending changes to the level of fund balances in the policy.
Financial Planning Schedule
Rough Outline for the 2025-26 Biennial Budget
March
1. Brief council / labor / staff
2. State of the City 281n
April
1. Begin Priority Based Budgeting (PBB) program development
a. Beginning implementing PBB by importing data, etc.
May
1. Community survey
2. Community meetings to identify community priorities
a. 4-6 meetings of about 15-20 people to meet in groups
(including boards and commission members)
3. Council retreat on budget development approach
4. Department use PBB approach to begin building budgets
June
1. Identify the scoring criteria for city program evaluation within PBB
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8.1.c
July
2. Build a program inventory for the PBB effort
3. Begin to develop performance measures for city programs
1. Detailed forecasts for internal purposes which informs budget decision making and related
actions
August
1. Mid -year financial review— council meeting
a. Review of current year budget status
b. Preliminary review of revenues (for next biennium)
i. Both general government and utilities
2. Preliminary review of long-range financial plan (assumptions) Proposed Preliminary Budget (not
balanced)
3. Internal budget balancing work by the mayor and staff leadership team
September
1. Mayor's preliminary budget recommendation
October
1. Council budget workshops & first public hearing
November
1. Council budget workshops & second public hearing
2. Adopt 2025-26 biennial budget
Flow -chart of the Priority Based Budgeting Process
1. Determine priorities and attributes (these will be used to "score" or evaluate city programs.
2. Identify City programs (programs are community facing service units as contrasted to City
organizational units)
a. Correlate the current City budget to the program budget (associate existing revenues
and expenditures with the programs)
3. Staff prepares budget requests in the context of the program budget.
a. Both revenues and expenditures associated with programs should be identified.
b. Narrative descriptions of the program, the purpose the program exists and benefits to
the program's customers should be included.
c. Performance expectations for programs should be developed.
d. Staff prepares explanations of the expenditures requested for the items identified as
"zero based".
4. Evaluate how strongly the programs align with the priorities and the attributes.
a. A cross -department staff team and the mayor's citizen budget committee will each
evaluate proposed program budgets independently.
i. As part of the scoring process, each team will recommend adjustments to the
budget requests as appropriate.
5. Compare programs to available resources to identify the budget gap.
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8.1.c
a. Consider changes to current revenues, taxes, fees, etc.
b. Make decisions with regard to property tax levy lid increase requests as appropriate.
6. Propose a balanced budget, inclusive of anticipated increases in revenues based on a request to
the community for a levy lid increase to the property tax.
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8.1.d
City of Edmonds, Fiscal First Aid Project Plan
12 Steps to Financial Resiliency
Recognition
A. Make a rapid determination of the problem and assess its severity.
o Where do revenues stand currently and what can we expect for the next six months?
On -going revenues are realistically about $10 million below budgeted expenditures.
Revenues were under -collected compared to budget in 2023 by about $2.5m. The scale of
the immediate problem is set at $12.5 million and reserves are below policy thresholds by
about $8 million. This equates to a $20.5 million problem. In addition, many
maintenance items have been deferred for several years.
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a
o Are expenditures within budget? Yes, departments tend to spend within budget however
salary savings from vacant positions are spent elsewhere. Additionally, budget
amendments complicate this as they are approved against fund balance and authorize
a
expenditures beyond resources even after a deficit funded budget is approved.
c
■ Can we "rein in" expenditures? The mayor's office is implementing measures to
control expenditures. Both a hiring review and a spending review are in place.
The 2024 budget sets a salary savings level of $3.2 million however the mayor's
_4)
goal is $4 million.
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o Are we collecting all revenues as appropriate in a timely fashion?
Under -collection of revenues due and owing to the city do not appear to be a problem.
That said, fines and forfeitures have been declining significantly and are well below
historical averages and budget estimates. Council may want to consider a policy decision
regarding the nature of this revenue source (and set estimates at levels that align with
policy).
o Are current plans for revenue growth realistic?
Revenue has been under -collected compared to budget for three of the past four years.
This under -collection has been significant and could occur again in 2024.
Revenue growth is limited by Washington State law and has not kept pace with
authorizations in expenditures. The City has added positions and provided raises in
compensation without corresponding increases in revenues. The budget amendment that
approved this was utilizing fund balance. Revenue growth over the past five years has
averaged about 5% annually.
o What is the size of the imbalance we are anticipating?
The fund balance is anticipated to be almost $6 million below policy target at year-end
2023 and $8.2 million below at the end of 2024. Additionally, a contra account in the
adopted 2024 budget for compensation exceeds $3m.
o What funds are at risk?
It appears that the General Fund is the primary concern. Related funds (internal service
funds that receive payments from the General Fund may have a related impact) Transfers
to other funds was largely suspended in 2024.
o The Street Fund finished the year in a deficit as well. It accounts for both maintenance
and significant repair. The underfunding of roadway maintenance is a concern.
The other (non -General) funds have not been deeply analyzed.
B. Consider deeper questions about financial distress.
Packet Pg. 53
8.1.d
City of Edmonds — Fiscal First Aid Project Plan
o Is this temporary or long-term (structural or cyclical)?
This is long-term and structural, and without being addressed in a significant way will
become much worse over time (a short amount of time).
o Is the government "rightsized"?
It is unclear at this point as there is no data as to service levels or effectiveness.
Comparisons of staff levels compared to neighboring cities seems consistent.
Compensation compared to neighboring cities seems in line.
C. Enlist others in the process?
o Craft a message to help in understanding of the problem
An initial diagnosis of the situation is being developed and was shared by the mayor at
the State of the City address. Additionally, a council meeting on April 2"d discussed the
diagnosis. �ff
o Develop confidence that there is a clear understanding of the problem.
o Engage the audience(s)
Council was informed of the plan to identify the issues and recommendations to remedy
them. a
o Develop graphics and simulation to help with understanding the problem c
A report has been developed and related graphics and simulation will be developed (see
exhibit 1). The mayor has assembled an interested group of citizens known as the "Blue -
a)
Ribbon Panel". They have done a good job of illustrating the problem with graphics. 3
Mobilization 00
A. Building a Core Recovery Team
My experience suggests that the staff leadership team will need to step up to this challenge.
However, they need to form a new team as they now have a new leader / mayor.
o Look for existing teams which may meet this need
The Mayor has appointed a "Blue -Ribbon Panel" to assist with the evaluation and
recommendations. Additionally, recommendations are being made to engage the key
stakeholders: council, mayor's office, city staff leadership. A very public discussion about
the future financial operations of the City is recommended to occur this summer
o Identify potential participants
Mayor has appointed a Blue -Ribbon Panel of qualified residents to advise and engage on
this topic. The community, staff leadership team and City Council are integral
participants.
o Consider the role of elected officials on the team
The mayor's Blue -Ribbon Panel is appointed by the mayor and is advisory to him in this
work.
o Cover day-to-day operations
The 2024 budget has numerous flaws for long-term financial resilience however it will
provide for the day-to-day operations in 2024. Caution should be taken in the approval
of any amendments to the budget. A cash flow for 2024 has been developed to manage
the ability to remain solvent during the year. Several months reflect a cash flow deficit
for the City's General Fund.
o Consider the need for personnel replacements
Under review and is the prerogative of the mayor.
o Consider the need for legal advice
B. Developing other teams
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8.1.d
City of Edmonds — Fiscal First Aid Project Plan
o Develop a realistic priority for the team's work
The team will work using the GFOA' 12 steps to fiscal resiliency. The work is to be
completed by the end of June 2024.
o Share expectations
Council will be notified at public meetings and the mayor will provide press notices
o Clarify goals
The goal is long-term financial resiliency for the City as a whole.
o Formulate operating guidelines
A charter for the Blue -Ribbon Panel has been developed
■ How will decisions be made
■ How will work be performed
■ How can concerns / issues be raised
■ How will differences be resolved
■ How will accountability for completing the work be created
■ Take minutes for each meeting
■ How to keep major stakeholders in formed
A periodic update on this work will be provided by the Mayor's office to the
Council. A recommendation to the City Council by the BRP has been made to
make an update on this work a standing council meeting item.
C. Analyze Stakeholders — the mayor will address stakeholders either directly or through the
State of the City address.
o Identify critical stakeholders (internal and external)
o Diagnose the stakeholders position
o Engage stakeholders
■ Communicate thoroughly
■ Articulate a vision
■ Balance transparency with discretion
■ Engage people
3 Generic treatments
• Characteristics include: short time to benefit, not complex, reversible
o Hiring freeze (or chill)
All hiring of permanent staff requires the Mayor's prior approval
o Deferring capital projects
Under review
o New fees for service
Traffic cameras for busy intersections have been previously proposed. Traffic
cameras in school zones has already been approved and a conservative estimate of
revenues has been included in the 2024 adopted budget.
Annexing to the Regional Fire Authority has been previously proposed and the
council has initiated a study of this issue with implications beginning in 2026.
o A comprehensive review offees will be part of the 2025-26 budget process. The Blue -
Ribbon Panel recommends the mayor analyze all cost recovery options for City
programs.
o More aggressive revenue collections
Revenue collections do not appear to be a contributing factor
4 Initial diagnosis
A. Engage others in the diagnosis
Packet Pg. 55
8.1.d
City of Edmonds — Fiscal First Aid Project Plan
o Seek additional perspectives of the diagnosis
Blue -Ribbon Panel has conducted a diagnosis which clarified that staff additions,
compensation increases and increases in services costs (including fire service costs)
have contributed to the fiscal emergency.
o Consider consulting with other department directors and city leaders
Discussions with the department directors have occurred. It was insightful.
Discussions with the department directors are on -going.
B. Forecasting is essential
o Establish a detailed short-term forecast (cash position)
Such a cash flow plan has been developed.
o Develop a long-term forecast (3 to 5 years)
A long-term forecast is developed by the city however no assumptions are
documented. A long-term forecast "Financial Health " model is being created by the
BRP and will be used to make target budgeting recommendations.
■ Develop various scenarios (or an interactive model for scenario planning)
An interactive model with clear scenarios has been developed and will serve
a
as a basis for fundamental recommendations.
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■ Develop a clear set of assumptions for each scenario
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Assumptions for the scenarios are clearly documented. Alternative scenarios
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are incorporated into the model.
a)
C. Develop a "Financial Health Model"
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o Describe fiscal stability for the city
The council, mayor's office and staff leadership team will be asked to interact with
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the financial health model.
Near term treatments
a
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o Control personnel costs
■ Vacancy control
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a
Vacancies are only being filled upon prior approval of the mayor.
a
■ Monitor and limit overtime use
a
The mayor and leadership team should review and discuss all expenditures and
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focus on both overtime and the use of resources originally budgeted for positions.
The BRP recommends that overtime be "zero -based" for the 2025-26 budget.
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■ Address healthcare costs
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The city is a member of the AWC healthcare program — likely the most
economical choice.
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■ Review the use of consultants and temporary staff
Professional services costs have increased substantially. A zero based approach
a
to these expenditures should be used for the 2025-26 budget. The RFA (a
contributor to professional services increases) has advised that they are ending
the relationship with the City of Edmonds. Afire -serve model is under review by
the city council.
o Enhance purchasing practices
■ Audit routine expenditures
A pre -audit of all expenditures occurs however it is focused on legal and policy
compliance. The pre -audit can be expanded to evaluate the merits of
expenditures though it is too late to prevent the expense from being incurred.
Packet Pg. 56
City of Edmonds — Fiscal First Aid Project Plan
8.1.d
■ Develop a procurement process that enables pre -approval of expenses under
certain circumstances (such as larger expenses or those that will create future
obligations).
The city' financial systems are antiquated and do not support modern business
practices intended to help scrutinize obligations. While the system appears to
provide reliable data and information it is not efficient and contributes to
problems such as those noted in the audit related to payroll documentation.
■ Investigate risk management practices and worker's compensation claims
The city belongs to riskpools — common to most Washington cities. It is unclear
the degree to which the City retains some of this exposure.
Workers compensation is a potential area for further study.
o Pooling resources and partnering
■ Cooperate with other governments to achieve economies of scale
The city currently in engaged with many other governments and is analyzing
annexing to the Regional Fire Authority. Several regional service relationships
exist already. Additional local government partnerships are a potential
alternative. These opportunities should be explored during the budget process.
■ Pool department resources
Mayor is considering a reorganization.
■ Look for ways to partner with private enterprise / volunteers
A potential lens for the 2025126 budget process.
o Better manage capital spending, equipment and debt
Capital contributions from the General Fund are minimal — which is a longer -term
problem as it has contributed to deferred maintenance of City assets.
■ Better align capital spending with resources.
Incorporate support for capital maintenance needs into the Financial Health
Model. One concern is the lack of planning for operating budget impacts from
completed capital projects such as in parks.
■ Use long-term capital improvement planning to make better decisions
The City does not develop a capital improvement plan. The CIP will be a
collaboration between Public Works, Parks and Administrative Services in the
2025-26 budget.
Develop an equipment replacement schedule
Such a schedule exists however consider reducing the replacement budget
temporarily if necessary.
Improve fleet management
An option for review as fleet increases were significant in recent years. —
reducing the replacement budget as a temporary alternative should be
considered.
Review opportunities to refinance debt
Higher interest rate environment today. Utility revenue backed is being
refinanced to achieve savings.
o Enhancing revenues
■ Obtain state or federal aid
Not likely
Examine fees for service
Under consideration:
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City of Edmonds — Fiscal First Aid Project Plan
8.1.d
• Traffic enforcement cameras at intersections
Cost recovery ratios will be reviewed as part of the 2025-26 budget
process which may lead to recommendations to revise fees.
• Other (?)
New taxes with a strong connection to a desired service
Considering ballot measure(s):
• Annexing to the RFA — essentially shifting the propery tax burden for fire
service and freeing up tax capacity within the city.
o Alternatively retain fire & EMS service and propose a public
safety levy for this purpose.
• Levy lid lift to realign property taxes with past inflation
• Public safety levy if a case can be made that public safety would be
impacted unless a levy is approved.
Improve billing and collection methods
Likely not a contributing factor
Audit tax revenue sources
This is an option however it is not likely to have a significant impact.
6 Detailed diagnosis / Fiscal First Aid
o Political / internal causes
■ Governance Crisis
Prior administrations proposed budgets and budget amendments that caused this
problem. The council essentially adopted the proposed financial plans that
included both current year and future deficits.
■ Excessive Personnel Costs
Increases in both employee counts and compensation were added without
corresponding increases in ways to pay for them. Either no analysis was done on
the future impacts of these decisions or it wasn't considered.
That said, compensation does not appear to be excessive.
■ Past Awards of Unsustainable Retirement Benefits
Not applicable in WA state for the City of Edmonds
■ Poor Morale and Commitment
A lack of leadership within the administration likely contributed to this condition.
A cohesive leadership team should be built and engaged in the long-term fiscal
well-being of the City.
■ Overexpansion
This is a fundamental cause. Increases in staff counts and city programs were
approved and funded by one-time resources (namely fund balance).
■ Economic Development Incentives
Based on the conversation with department directors there appears to be
conflicting policy around economic development. Recommend that council clarify
the policy goals regarding economic development.
■ Implicit Development Subsidies
The level of development subsidies should be analyzed as part of the 2025-26
budget. The PBB process will illustrate the degree of subsidy for all city
programs.
o Internal, economic / technical causes
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8.1.d
Management Challenges
Management turn -over in key roles was negligible during this time.
Weak Budget Development Practices
Budget development practices were indeed weak. Limited information about
revenue estimates is provided. Revenue estimates were aggressive. The
consequences of current decisions on future fiscal solvency is not explored.
(There is a long-term financial forecast for the General Fund, but the
assumptions that it is built on are not revealed in the budget). No means to
determine the feasibility of City programs (i.e. performance metrics) are
presented to provide context for budget decisions.
■ Lack of Innovation and Adaptability
Department directors expressed a lack of awareness with regard to the financial
problems. They suggested that they would welcome being included in future
discussions about innovation and adaptability.
■ Poor Performance
No program performance information is available. There appears to be little,
effective personnel performance evaluation occurring as well.
■ Ineffective Information Technology Systems
This is a significant shortcoming. The financial systems are antiquated leaving a
largely paper -based system and no procurement best practices. Access to
information is limited at best. Budget systems were subscribed to some years ago
at a significant cost but not utilized.
■ Failure to Fund and Manage Retirement Benefits Prudently
Largely not applicable — one potential risk is payouts upon separation.
■ Deteriorating Infrastructure
Deferred maintenance is a significant long-term problem that our efforts are not
intended to address.
■ Overbuilding Infrastructure
This does not appear to be a concern however the future operating costs of
completed capital improvements are contributing to the fiscal stress.
■ Low Bang -for -the -Buck Development Decisions
Unsure that this is a contributing factor
o External, political causes of financial distress
■ Poor Communication With the Public
The public was largely unaware of this issue though some in the community have
been expressing concern regarding city finances vocally and for quite some time.
Interest Groups
No interest groups have been involved to this point.
Decline in Local Fiscal Autonomy
State imposed limits are a factor but not new nor the cause of the decline which
has essentially occurred over the past two to three years.
o External, economic / technical
■ Economic Stagnation
Not a contributing factor. The city and community are vibrant.
Shifting Demographics
Not a contributing factor.
7 Recovery Plan
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8.1.d
City of Edmonds — Fiscal First Aid Project Plan
o A portfolio of strategies
■ External environment analysis
The City of Edmonds continues to be a vibrant and desirable community.
Businesses tend to thrive and it is a very desirable place to live in the Puget
Sound. The external environment will support a vibrant city government that
meets the needs of its community. This is a very engaged community.
■ Financial projections
Revenue growth is generally sufficient in the context of Washington State law (i.e.
limitations on property tax growth). It appears that revenue projections have
been optimistic in the past however still not utilized as a constraint in approving
new spending and on -going commitments.
■ Description of goal
�ff
The goal is long-term fiscal resiliency, including long-term needs such as
infrastructure. A Financial Health Model will be developed that the BRP hopes
will become an important tool for the Council to use in making future financial
c
obligation decisions.
a
■ Recovery strategies
c
Recovery will essentially be a restart of the budget building process and long-
term financial plan (The Financial Health Model). A capital improvement plan
will be developed. A zero -based approach utilizing Priority -Based Budgeting will
a)
rebuild the City' budget and overall financial plan.
00
■ Budget process analysis
A very traditional, incremental budget process utilizing "decision packages" has
been used in the past. Until about four years ago, this served the City' needs.
During more recent times this obscured the financial problems that were being
introduced into the budget. Rather than present the bigger fiscal picture, the
process focused on micro issues that distracted from fiscal health.
■ Budget reform plan
A new, zero -based budget process utilizing PBB will start with community
conversations about the priorities to be funded by city programs. Consideration
of a new capital improvement plan will also be considered.
■ Operational analysis
Operations of the City will be evaluated as part of the 2025-26 budget process.
New performance standards will be developed and a program of performance
evaluation will be implemented.
■ Operational action plan
The PBB process will utilize performance management to inform an on -going
program evaluation plan. This will inform future budget discussions.
Budget amendments will also utilize this approach.
■ Risk assessment
Risks in introducing so much process change at one time exists. The risk of
"business as usual" are higher.
■ The Blue -Ribbon Panel has expressed concerns about risks and potential risk
mitigation strategies.
o Communicate effectively
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8.1.d
City of Edmonds — Fiscal First Aid Project Plan
■ Communicate upward
City Council is an essential partner in this work. A proposed standing council
agenda item to stay aware of theses issues should be considered.
■ Communicate to outside groups
City Boards and Commission should be a specific audience for this work. The
recovery plan will be community based with significant public involvement.
■ The mayor is preparing to survey the community to help develop a baseline for
budget development.
■ The proposed plan includes community meetings to both create awareness and
inform future budget priorities.
■ of the BRP recommends forming a "Citizen Budget Advisory Committee " which
is underway. �E
■ Communicate with surrounding jurisdictions (�ai
A communication plan for the larger region and state legislators should be
developed.
■ Communicate downward a
Department Directors are an essential part of a successful implementation and c
should be developed into a strong partner. M_
Labor leaders and City employees should be kept informed.
a)
o Use a team approach
■ Develop a Realistic Priority of the Teams Work 00
The mayor will lead the development of implementation teams. _
■ Share Expectations U_
Mayor began sharing expectations with the Council and community at the State
of the City. Department directors and staff will be engaged as they are essential
to success.
Clarify Goals
The goal is a successful path to fiscal resilience both for now and the future.
Formulate Operating Guidelines
Largely based on the PBB process, including upcoming budget process will be
the foundation for a new culture complete with operating guidelines.
Long Term Treatments
o Financial foundations
Leadership strategies
• Develop an inspiring, shared vision for the community in order to
convince stakeholders of the benefits of working together for a strong
financial foundation and thriving community.
A combination of the "right price ofgovernment" and priority -based
budgeting will help to set a vision for a strong financial foundation in the
future.
• Build long time horizons into fiscal planning to circumvent short-term
thinking that may have adverse consequences in the long run.
Updating and activating the long-range financial plan as a context for
all future decision making by the administration and the council is
recommended. The plan should incorporate scenarios to explore
resiliency.
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8.1.d
City of Edmonds — Fiscal First Aid Project Plan
• Help people recognize their shared interest in a financially healthy local
government by creating open communication between people.
Consider a tool like `Balancing Act" to illustrate community trade-offs
and engage on city financial decision making.
• Make a concerted effort to improve trust. Trust is essential for a local
government to perform at its best, to provide high -quality services, and
to have a strong financial foundation.
The above actions will help to improve trust. Building trust through
transparency is a commitment by the mayor.
• Keep key stakeholders and employees engaged in the decision -making
process.
The priority -based budget approach will engage city leaders, the citizen
budget committee and the council.
• Use formal and informal power to provide oversight, reinforce
financially constructive behavior, and to encourage collaborative
behaviors through organizational culture.
Leadership will be essential to the success of these efforts.
Institutional designs
• Develop new and better approaches to public engagement. The public
will be more likely to sustain it when it is engaged in deciding how the
budget will be used.
Consider `Balancing Act"; implement a citizen budget committee and be
proactive in discussing long-term implications of current decisions.
• Form and maintain relationships with other public, non -private, and
private organizations in order to direct more resources and capabilities to
solving pressing community challenges.
This is the on -going work of the mayor and other organizational leaders.
• Financial policies should be used to define boundaries around who shares
and controls public resources and how resources can be used.
Some financial policies exist however a new framework offinancial
policies has been developed and recommended to the Council via the
Finance Committee.
• Create a system to monitor the process of financial decision -making
and the outcomes of those decisions.
Timely and relevant financial information will be provided to the
councils Finance Committee monthly and reviewed periodically by the
full council.
The Financial Health Model should become the context for evaluating
decisions by the Mayor and Council.
• Develop a system of rewards and penalties that apply a lighter touch at
first, and only resorts to weightier options in more extreme
circumstances.
• Be clear about where money comes from and where it goes.
A "Budget in Brief' will be developed and used to help communicate
city financial dynamics at a high-level.
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8.1.d
City of Edmonds — Fiscal First Aid Project Plan
Develop decision -making systems that are perceived to be fair by the
participants.
Priority -based budgeting is intended to be this system.
Develop systems to manage relationships with higher levels of
governments that can influence the local government's financial position.
Not a significant element.
Technical Treatments
• Control Employee Benefits Costs
A subject of collective bargaining
• Contain Employee Health Care Costs. Local governments need to
design their employee health plans to contain costs. _
The City belongs to the Association of Washington Cities Healthcare
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plans which are likely to the most cost effective. Q-
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• Don't budget incrementally
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The city has used incremental budgeting in the past and this has =
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contributed to the problems. Future budgets will analyze all non- a
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compensation expenditures (not just the increments) and be evaluated 0
based on performance. M
Several elements of the budget should be `zero -based" in the upcoming 0
budget process. 2
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• Stop or reduce lower priority services
One of the key objectives of PBB is to identify lower priority services and =
consider alternatives. U_`
• Improve / simplify work processes
This should be considered as an on -going element of city management.
• Overcome limits of local government fragmentation
• Ensure capital assets are affordable
Analysis of the effects of capital improvements on future operating costs
has not occurred and the recommendation is to use the Financial Health
Model to evaluate these issues.
9 Long-term financial planning
Long-term financial planning will be essential to understanding the future implications of todays
decisions. A focus on long-term financial planning by developing a Financial Health Model for
major operating funds is proposed.
10 Recovery Leadership
o Leadership is essential to financial recovery
Leadership on the part of the Mayor and Council is essential.
o Leadership behaviors
■ Trust and credibility
■ Emotional intelligence
■ Collaborative
■ Action -oriented
■ Detail -oriented
■ Vision
■ Enthusiasm for public service
■ Fairness
■ Respect
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8.1.d
City of Edmonds — Fiscal First Aid Project Plan
■ Honesty and forthrightness
■ Skepticism
■ Courage
o Leadership credibility
■ Articulate a vision
■ Be consistent in words and actions
■ Be flexible in solutions
■ Be honest
■ Give the personal touch
■ Show empathy
■ Demonstrate expertise
■ Trust followers
■ Encourage followers
o Communication
■ Be direct, honest, accessible and forthright
■ Acknowledge the concerns of others
■ Be realistic
■ Find and convert key influencers
■ Repeat3
o Communications plan
■ What
■ How
■ Whom
■ Where
■ When
o Don't play the blame game
After developing a clear understanding of what contributed to these problems the BRP
recommends that participants avoid placing blame and to look forward rather than
backward. The Mayor and Council may want to state this affirmatively as many active
citizens are continuing to discuss the past and assess blame.
o Help others deliver key messages
Clear communication about the nature of the problems and the recommendations to
resolve them should enable others to deliver sound information (rather than rumors or
speculation).
o No surprises
Participants are committed to honesty, and clarity. Now is the time to put all the issues on
the table in a factual way.
o Inspire the organization to take action
Given the severity of the fiscal emergency, the participants appear inspired to address the
issues appropriately. We have worked to keep the issue of a "fiscal emergency" in front of
the participants to maintain urgency.
11 Manage the Recovery Process
o Governance
The Mayor as CEO of the City and Council as the policy board are responsible for the
governance of the recovery process. They have engaged others to support this effort.
o Project Management Plan
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8.1.d
City of Edmonds — Fiscal First Aid Project Plan
■ Scope
General Fund and Street Fund initially.
■ Requirements
■ Stakeholder engagement
Active stakeholder engagement is a priority for the Mayor and Council
■ Resource
Resources have been evaluated and generally not recommended as they present
additional costs at a time when additional costs are counter productive.
■ Communications
Proactive communication is important to success as a long-term solution will
require support from the community through higher taxes.
■ Risk Management
Riskfor the implementation of these recommendations should be considered. A
lot will be required from all participants — especially finance staff— to
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accomplish all that is being recommended.
o Project portfolio
a
The project portfolio is essentially the recommendations contained in this plan and
c
summarized in the Strategic Approach to Fiscal Resiliency (attached)
■ Goal achievement
The goal is to achieve fiscal resiliency for the long-term. That involves restoring
a)
3
fund balances and resetting levels of service by the City to the community. This
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will take several years.
■ Risk
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Several recommendations are being made. So much change in a small amount of
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time will result in risk which should be monitored and managed by the City.
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■ Resources
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The BRP has analyzed the availability of outside resources as part of this work
°
a
and is recommending a limited number of outside resources in order to contain
a
costs.
a
■ Impact on fiscal distress
L
As a result of the desire to limit the number of "asks " of support from the
community through votes to increase resources, the short-term fiscal distress will
increase before these remediations take effect. The City will have to borrow to
iL
support City programs in 2025 with the expectation of being able to repay said
borrowing from increased community support through additional revenues.
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o Communications
R
■ Establish clear chain of command to manage tasks
a
The Mayor's office will manage communication tasks.
■ Control rumors
■ Be as transparent as possible
■ Remote workers
12 Outcomes of the Recovery Process
o Bankruptcy
Bankruptcy could occur if the City does not develop and execute a successful long-term
fiscal recovery plan. Bankruptcy is defined as the inability of the City to meet its financial
obligations over time.
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8.1.d
City of Edmonds — Fiscal First Aid Project Plan
1.
o A strong financial foundation and resiliency
It is the expectation of the Blue Ribbon Panel that the Mayor develop and propose a
Financial Health Model as well as a 2025-26 biennial budget that includes a clear
definition of anticipated costs for on -going costs to provide the right level of service to
the community and a corresponding revenue model that would support such a plan.
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8.1.e
The Price of Government
"The Price of Government" presents a radically different approach to budgeting. Rather than
focusing on cutting or adding to last year's spending programs, it emphasizes buying results for
citizens. The book of the same name advocates consolidation, competition, customer choice, and
a relentless focus on outcomes to save millions while improving public services. It offers specific
solutions based on the authors' experience applying reinvention strategies, demonstrating how a
budget process that starts with results has transformed governments at all levels. The "Price"
itself is a ratio of "community income" (per -capita income times population) divided by
revenues. While difficult to compare among jurisdictions due to a variety of differences, the
comparison of the "Price" over time can be a valuable tool to assess the adequacy of public
funding.
The Price of Government: Getting the Results We Need in an Age of Permanent Fiscal Crisis, David
Osborne (Author), Peter Hutchinson (Author)
Basic Books —February 20, 2006
Priority Based Budgeting
A model that local governments and public sector agencies use to make budgetary decisions and
allocate funds based on community needs. Traditional budgeting's use -it -or -lose -it mentality and
across-the-board budget cuts don't consider factors other than a percentage make it difficult to
connect funding with strategic goals or performance metrics. Instead, priority -based budgets
focus on aligning resources with community priorities and outcomes. Here's how it works:
1. Community Needs: Priority -based budgeting starts by identifying the most critical
community needs based on Citizen led surveys and focus groups. These needs can
include areas like housing, transportation, sanitation, education, and healthcare.
2. Program -Centric Approach: Instead of allocating funds based on departmental
structures, priority -based budgets allocate funding to specific programs or services. This
approach ensures that resources directly address community needs rather than being tied
to historical spending patterns.
3. Accountability and Transparency: Priority -based budgets emphasize accountability for
program results. By linking funding to outcomes, local governments create transparency
and a better understanding of the true cost of each program. Residents gain confidence in
government spending, and leadership remains accountable.
4. Flexible Funding: Rather than applying across-the-board cuts, priority -based budgets
adjust funding based on the value of individual programs. Programs aligned with
community priorities receive continued support, while those less effective may see
reduced funding.
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8.2
City Council Agenda Item
Meeting Date: 07/2/2024
A Resolution Regarding the Landmark 99 Property
Staff Lead: Todd Tatum and Susan McLaughlin
Department: Economic Development
Preparer: Todd Tatum
Background/History
On June 271h, 2023, Council voted to authorize Mayor Nelson to enter into an option agreement to
purchase the 10.6 acre site, referred to as the Landmark Property at the Southern gateway of the
Highway 99 subarea. This action resulted in a community planning process, a Request for Proposals
(RFP) for a development partnership, and the selection of a preferred developer by the RFP selection
committee.
City staff, members of City Council, and previous administrations have worked for years to create
redevelopment opportunities along the Highway 99 corridor. These efforts have yielded limited results
and are far from the outcomes described in, for example, the Highway 99 Subarea Plan. The Landmark
99 option to purchase is an extension of that previous work, and an action which was hoped to have the
potential result in a signature community -oriented development.
This opportunity prompted actions, conversations, and education to shape this project, and the
corresponding work plan. Council, staff, several of our boards and commissions, and the mayor's office
have all taken part in exploring how other cities are managing similar projects, the funding and legal
mechanisms behind their actions, and potential avenues for our own project.
Unfortunately, as the year has progressed, our city's financial position remains critical. This budget
uncertainty leaves this project at great risk without dedicated funding to invest in the project, nor with
contingency reserves to manage risk as the project progresses.
Staff Recommendation
Staff recommends that Council adopt the resolution attached to tonight's agenda.
Narrative
The Landmark acquisition was intended to accomplish several things:
1. Create public space in an area of parks deficiency
2. Foster place -based redevelopment on neighboring parcels as a catalyst for positive change
3. Improve safety and security by applying crime prevention through environmental design
strategies
4. Increase the city's sales and property tax bases and, thereby, improve the sustainability of tax
revenues over time
Staff recommends that City Council continue pursuit of those objectives by supporting the following
efforts in the Highway 99 subarea:
1. Consider the establishment of a Community Renewal Area as proposed in 2023
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8.2
2. Study the feasibility of Tax Increment Financing (TIF)
3. When feasible, create an account in the Capital Improvement Program (CIP) to fund acquisition
and/or community -focused investments in the subarea
Community Renewal, governed by RCW 35.81, is a powerful tool for municipalities to revitalize areas of
their cities which suffer from lack of investment.
Tax Increment Financing, governed by RCW 39.114 and recently adopted by the state, is a tool which
allows municipalities to use the incremental increase in property taxes due to redevelopment to repay
bond costs for infrastructure improvements which spur positive redevelopment in a tax increment area
(TIA). Investigation into the creation of a TIA along the Highway 99 corridor will inform city leaders of
the risks, benefits, and projects associated with TIF and allow for thoughtful decision -making about the
use of this tool.
The third recommendation is to create, and fund, an account in the CIP when feasible that could provide
the resources for acquisition, partnership, and/or construction in the Highway 99 subarea.
Finally, staff recommends that we monitor the Landmark site and be willing to engage in discussions
with the current landowner, and any future landowners, to identify opportunities for infrastructure
improvements, community -oriented development, and the creation of public space.
Attachments:
Landmark 99 Resolution 20240702
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8.2.a
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS,
WASHINGTON, RELATED TO COMMUNITY INVESTMENT IN THE
HIGHWAY 99 SUBAREA AS AN ALTERNATIVE TO PURCHASING THE
LANDMARK PROPERTY.
WHEREAS, the Comprehensive Plan (including the PROS plan) and the draft Community Renewal
Plan recommend investment strategies to stimulate positive redevelopment in the Hwy99 subarea;
and
WHEREAS, a draft Community Renewal Plan (CRP) will soon be ready for Council consideration
and action; and
WHEREAS, under the draft CRP recommendations, Edmonds would be become a Community
Renewal Agency and would be able to unlock additional tools to stimulate redevelopment and
investment; and
WHEREAS, the draft CRP recommends engaging in a tax increment financing (TIF) feasibility
study for the corridor; and
WHEREAS, the draft CRP recommends that partnerships should be explored to achieve multi-
faceted benefits, including community priorities such as open space and a community center; and
WHEREAS, these civic investments should be added to the CIP; and
WHEREAS, a pool of available funds to support community renewal investments in the subarea
would allow the City to act on opportunities as they arise, and can be used to further encourage
outside investments through grants and appropriations; and
WHEREAS, the City's interest in the Landmark property was intended to stimulate positive
redevelopment in the Hwy99 subarea and to realize community priorities such as open space and a
community center; and
WHEREAS, the City's current financial situation creates a prohibitive environment in which to
pursue this purchase; now therefore,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, HEREBY
RESOLVES AS FOLLOWS:
Section 1. City's Option to Purchase Landmark Will Not Be Exercised. The City's option to
purchase the Landmark property will not be exercised. The city council supports the mayor's
recommendation to cease immediate work related to the Landmark property.
Section 2. Future Commitments to the Hwy99 Subarea.
The City will demonstrate its continuing commitment to making future investments in the Hwy99
subarea by pursuing the following courses of action in 2024 and 2025:
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8.2.a
A. Monitor the Landmark site and, if appropriate, engage in discussions with current or future
landowners to identify potential opportunities;
B. The city council will consider the proposed designation of a community renewal area in the
Hwy99 subarea;
C. The administration should analyze the feasibility of using TIF to stimulate investments
within the Hwy99 subarea and return to the city council recommended actions related to
TIF; and
D. When feasible, the city should establish a Community Renewal Fund to fund future
investments in the Hwy99 corridor.
RESOLVED this day of July, 2024.
CITY OF EDMONDS
MAYOR, MIKE ROSEN
ATTEST:
CITY CLERK, SCOTT PASSEY
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
RESOLUTION NO.
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