2025-01-21 Council FIN MinutesFINANCE COMMITTEE MEETING
January 21, 2025
Elected Officials Present Staff Present
Councilmember Will Chen (Chair)
Councilmember Jenna Nand
Councilmember Michelle Dotsch
Councilmember Vivian Olson
CALL TO ORDER
Kim Dunscombe, Interim Finance Director
Scott Passey, City Clerk
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. December Preliminary Finance Report
Ms. Dunscombe emphasized the preliminary nature of the report, noting that the ending fund balance
will change based on inherent uncertainty in several areas. While expenditures are still below
projections, property tax and sales/use tax revenues are underperforming.
Questions and discussion followed regarding ending fund balance, failure to meet the $3.2M projected
savings target, furlough accounting, cash flow, and timing of the interfund loan. It was noted that savings
will be in salaries and benefits spread over the course of the year. Staff will be requesting the majority
of the interfund loan in January, but the General Fund should balance out and be self-supporting by mid
to late 2025.
Discussion touched on non -department Fund 39 and overruns in public defensive services, conflict
resolution, insurance, jail services, and other transfers and payments. The city needed $550K additional
spending authority due to the EPOA contract coming in at a higher rate than the adopted budget. While
margins are tighter than expected, the theory was to get through 2024, make informed decisions about
reducing services through priority -based budgeting (PBB), and use that principle and interfund loan to
get through 2025-2026. Though savings in the police department were projected through vacant/open
positions, it was neutralized by the EPOA contract. The discussion concluded with comments about
SnoCom 911, WCIA premiums, and utility/capital fund spending and accruals.
Committee recommendation: Full council
2. Interfund Loan Utility Analysis
Ms. Dunscombe explained that this analysis is to evaluate the health of utility funds, ensure sufficient
liquidity to cover our interfund loan policy requirements, and ensure funding for capital projects and
liquidity across the board. She shared a spreadsheet outlining the analysis and questions/discussion
touched on operating expenses, target reserve amounts, budgeted capital needs, restricted and
unrestricted net totals, and net position of both water and stormwater utility fund to determine that the
funds can sustain the loan. She noted that Finance will be tracking the water fund closely year by year.
1/21/2025 FIN Committee Minutes, Page 2
Discussion concluded with comments about utility tax revenues and authority to use the $2.2M
contingency reserve. A budget amendment would need to be adopted to utilize the reserve.
Committee recommendation: For information only
ADJOURNMENT
The meeting was adjourned at 6:24 pm.
SCOTT PASSEY; CLERK