2024-10-15 Council FIN MinutesFINANCE COMMITTEE MEETING
October 15, 2024
Elected Officials Present Staff Present
Councilmember Will Chen (Chair) Kim Dunscombe, Acting Finance Dir.
Councilmember Jenna Nand Scott Passey, City Clerk
Council President Vivian Olson (ex-officio)
Mayor Mike Rosen
Councilmember Susan Paine
CALL TO ORDER
The Edmonds City Council Finance Committee meeting was called to order virtually and in the City
Council Conference Room, 121 — 5th Avenue North, Edmonds, at 5:30 pm by Councilmember Chen.
2. COMMITTEE BUSINESS
1. September Quarterly Financial Report
Ms. Dunscombe advised the trends in property, sales and utility taxes continue. She highlighted interest
charged to the General Fund for negative cash balance in 2024 of $58,222 to date, the Street Fund has
a positive cash balance September YE, and cash balance in Capital Fund 332 is positive following
receipt of the Snohomish County grant in September.
She reviewed the Monthly Expenditure Summary -General, advising the underrun has been decreasing
as the year progresses, the fire contract will be paid out of the General Fund, and there are some
expenditures that are paid November and December so she forecasts being slightly over budget in
2024. She reviewed revenue trends, relaying property tax will likely finish the year under budget by
approximately $130,000, the 2024 year-end estimate for sales and use tax is $12.2M with a 3% increase
in 2025.
She reviewed Expenditures — General Fund — by Department, relaying most departments are within
75% spent with the exception of Non -Departmental due to not fully realizing the $3.2M vacancy rate.
She reviewed the 2024 General Fund Cash Flow Report, relaying the difference between budget and
forecasted spending is about $550,000 and the forecasted ending General Fund fund balance is about
$900,000.
Questions and discussion followed regarding why the $3.2M vacancy rate was not allocated by
department, whether expenditures from the Building Maintenance Fund are anticipated to increase by
yearend, report to the PPW Committee regarding building maintenance projects, interest charged to the
General Fund for negative cash balance, $3.2M targeted vacancy rate cost savings in Non -Department,
increase due to settling the EPOA contract, Police Department overtime and benefits, and changes
made in the 2025 Police Department budget (moving expenses out of Non -Department and into Police
Department).
Committee recommendation: Received for Filing
2. 2024 October Budget Amendment Ordinance
Ms. Dunscombe reviewed:
10/15/24 Finance Committee Minutes, Page 2
Department
Amendment
HR
City of Edmonds' Employee Picnic ($8,169), Labor Relations training ($890)
and Public Risk Management Association Training ($3,670). The training
expenditures received reimbursement from WCIA, and the Employee picnic
was funded with a private donation
Police Department
Police department received three grants to cover additional services or
equipment for officers and community (ARTG grant covers the salary and
benefits from July 2024 - February 2025 including the supervision costs,
WSCJTC Wellness Grant which provided a massage chair and professional
services for nutritional counseling and recovery and stretching instruction for
officers, WATPA grant covers two years of Flock services
Non -Departmental
*Increase General Fund spending authority to offset vacancy rate adjustment
Community, Culture
Creative District capital grant and donation for Gateway art project
& Econ. Dev.
Finance
ARPA funds for fire contract
Admin Services
Record the 2024 bond issue for water and storm funds along with funding to
refinance 2023 revenue bonds
Admin Services
Record the 2024 revenue bond issue debt payment for December 2024 and
remove the 2013 that was originally budgeted
Public Works -Fleet
Complete the upfitting of the 20 police vehicles received in September 2023
Questions and discussion followed regarding disappointment the original recipients of ARPA funds were
unable to spend the money to help people in need, appreciation for the donation for the employee
picnic, costs covered by WATPA grant for Flock services, labor costs associated implementing
programs and services, vacancy rates burdening existing staff, audit finding if the City spends more
than was appropriated, unknowns that affected 2024 (EPOA contract, overestimated beginning
balance, separation agreements, and overestimated revenue projections), preference not to increase
General Fund spending authority until yearend, amount of 2025 internal borrowing, potentially lowering
utility reserve levels, demonstrating how refinancing creates savings for the City, and purchase of police
vehicles from Fund 511 in 2023 instead of using ARPA funds.
* Councilmember Chen preferred to remove this amendment for further research before forwarding the
2024 October Amendment to council
Committee recommendation: Full council
3. ADJOURNMENT
The meeting was adjourned at 6:39 pm.
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SCOTT PASSEY, L CLERK