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2026-04-21 Council FIN Committee Packet Edmonds City Council Agenda April 21, 2026 Posted: 4/17/2026 9:32 AM Page 1 Agenda Edmonds City Council Finance Committee CITY COUNCIL CONFERENCE ROOM 121 - 5TH AVENUE N, EDMONDS, WA 98020 ZOOM: HTTPS://ZOOM.US/J/95798484261 PHONE: +1 253 215 8782 MEETING ID: 957 9848 4261 APRIL 21, 2026, 1:00 PM STAFF AND COUNCILMEMBERS ATTEND COMMITTEE MEETINGS VIRTUALLY, AND MEMBERS OF THE PUBLIC ARE ENCOURAGED TO ATTEND THE SAME WAY. IF MEMBERS OF THE PUBLIC CANNOT ACCESS THE VIRTUAL COMMITTEE MEETINGS WITH THEIR PERSONAL DEVICES, A MONITOR IS PROVIDED AT THE CITY COUNCIL CONFERENCE ROOM AT 121 5TH AVE N, EDMONDS WA. 1. CALL TO ORDER 2. COMMITTEE BUSINESS 1. Financial Policy - Financial Reporting Second Reading – Finance (25 minutes) 2. February 2026 Monthly Financial Report First Reading – Finance (15 minutes) 3. Fiscal Sustainability Task Force First Reading – City Council Office (30 minutes) ADJOURNMENT For disability accommodations, materials in alternate formats, accessibility information, or language interpretation/ translation needs, please contact the City Clerk at 425-775-2525 at your earliest opportunity. Providing at least 72-hour notice will help ensure availability. City Council Agenda Item 2.1 April 21, 2026 - Finance Committee TITLE:Financial Policy - Financial Reporting (Second Reading) DEPARTMENT:Finance PRESENTER:Richard Gould NEEDED FROM COUNCIL:Input RECOMMENDATION:For Committee discussion. BUDGET: Total Dollar Amount:0.00 ☐ Approved in Budget Fund(s):n/a ☐ Budget Reallocation Required ☒ No Budget Impact PROBLEM/ISSUE STATEMENT: The City’s current financial reporting framework does not fully support the objective of providing clear, meaningful information for Council to effectively oversee the City’s financial health. While financial information is regularly provided, the structure and content of reporting can limit the ability to quickly understand performance relative to the adopted budget and prior periods, and to clearly assess the City’s overall financial position. Refining the financial reporting policy provides an opportunity to better align reporting with its core purpose: delivering transparent, consistent, and decision-useful information that supports effective financial oversight and stewardship of public funds. CONTEXT, ANALYSIS, & ALTERNATIVES: Purpose of Financial Reporting Financial reporting is the primary tool used by Council to monitor the City’s financial health and ensure responsible stewardship of public funds. To effectively support this role, financial reporting should: Clearly communicate actual financial results Provide meaningful comparisons to: Adopted budget (the City’s plan) Prior periods (historical performance) Present information in a way that is consistent, understandable, and decision-useful. RECOMMENDATION: For Committee discussion. BUDGET IMPACTS: N/A ITEM HISTORY: The Finance Committee discussed this agenda item at the March 17th meeting and reviewed the current policy and other city financial reporting policies as well.   Item 2.1       Packet pg. 2/74 ADDITIONAL INFORMATION: ATTACHMENTS: Finance Policy Financial Reporting Update Presentation. Cities current Financial Reporting Policy. Other neighbor cities financial reporting policies   Item 2.1       Packet pg. 3/74 Finance Policy Financial Reporting 1   Item 2.1       Packet pg. 4/74 Resetting Before We Refine •We began updating the financial reporting policy •Feedback quickly moved into detailed edits and additions •Before refining language, we need alignment on: •The purpose of financial reporting •What the policy is intended to govern 2   Item 2.1       Packet pg. 5/74 Purpose of Financial Reporting Financial reporting exists to provide transparent, consistent, and understandable information about: •What actually occurred •How it compares to: •Budget (plan) •Prior performance 3 Transparency + accountability for public funds   Item 2.1       Packet pg. 6/74 What This Policy Does Not Govern -Financial reporting policy does not prescribe: •Forecasting methods •Long-term projections •Scenario modeling These activities: •Support planning and decision-making •Occur in: •Budget process •Decision packages •Special analyses 4   Item 2.1       Packet pg. 7/74 How Financial Information Supports the City 5 Function Focus Where it Happens Purpose Financial Reporting Actual Results Monthly/Quarterly Reports Transparency & Accountability Forward-Looking Analysis Future Impact (decisions + external forces) Budget process, goals, objectives & priorities Planning & Policy Decisions Both are essential, but they serve different roles   Item 2.1       Packet pg. 8/74 Policy Objective The financial reporting policy should: •Define core, consistent reports •Ensure clear and transparent presentation of actuals •Focus on: •Comparisons to budget •Comparisons to prior periods •Allow flexibility for: •Context •Supplemental analysis when needed 6   Item 2.1       Packet pg. 9/74 What This Means Practically •Monthly reports = clear, high-level financial health •When something changes: •We bring forward deeper analysis •Including forward-looking insight when relevant 7   Item 2.1       Packet pg. 10/74 City of Mukilteo Budget Policy Reporting a) A revenue/expenditure report will be produced monthly so that it can be directly compared to the actual results of the fiscal year to date. (See monthly Fund Progress Report posted on City website.) b) Each quarter, staff will produce a “Quarterly Financial Report” comparing current year to past year actual revenue and expenditure and present the data to City Council. c) Semi-annually, staff will provide revenue and expenditure projections for the next five years (General Fund Projection Model.) Projections will include estimated operating costs for future capital improvements that are included in the capital budget (See the Capital Facilities Plan). This data will be presented to the City Council in a form to facilitate annual budget decisions, based on a multi-year strategic planning perspective. City of Lynnwood Reporting: General A. The Finance Department shall prepare financial reports that show and monitor actual performance in various expenditures and revenues with the adopted budget and planning forecasts. i. The reporting system shall include a financial analysis of the overall financial status of the City and of its key funds, including, but not limited to, an analysis of all available financial resources. ii. This analysis should discuss the current financial status, and the immediate and longer-term future financial status. iii. A complete analysis shall be prepared quarterly. City of Mountlake Terrace Budgeting (section of financial policies): The City Manager will present to the City Council quarterly financial reports identifying trends in revenues and expenditures for each of the City’s operating funds.   Item 2.1       Packet pg. 11/74 Multi-Year Forecast Each year the city will update expenditure and revenue forecasts for the next six years. Projections will include estimated operating costs for future capital improvements that are included in the capital budget. City of Edmonds Financial Reporting Policy Interim Financial Reports Interim financial reports of all funds of the City shall be presented to the Council Finance Committee (Committee) each month on a timely basis (preferably in the month following the month subject to the report). Such reports shall: 1.Identify any issues or items of note on the cover page 2.Provide the beginning fund balance, revenues, expenditures and ending fund balance on a modified accrual basis for all funds of the City. a.For purposes of the proprietary funds, fund balance shall be the working capital (current assets minus current liabilities). b.For purposes of the governmental funds, fund balance shall begin with the published ending fund balance from the prior fiscal year (including accruals but not reversal entries (aka: period zero) so as to approximate modified accrual). 3.Provide the unreserved and reserved cash balances for all City funds. 4.Indicate any interfund borrowing necessary to maintain positive cash balances in a manner consistent with the City's interfund loan policy. 5.Year-to-date status of all major fund revenue and expenditures of the City (major funds are those where expenditures represent at least 10 percent of the City's total expenditures). a.Such information shall be presented in both numeric and graphic form and illustrate a comparison with monthly forecast expectations. b.All departments of the City's General Fund and Enterprise Funds shall be presented in like manner. 6.A cash-flow report for the General Fund illustrating anticipated receipts and disbursements for each future month and the actual receipts and disbursements for past months. 7.Project reports shall be presented on major projects (both   Item 2.1       Packet pg. 12/74 operating and capital projects) previously identified by the Committee. 8.Investment balances along with year-to-date interest earnings. Mid-year Financial Review A review of City financial highlights shall occur approximately in the middle of the City's fiscal year. Such a review shall be provided to the full City Council and shall include: 1.A review of the prior year's audit including: a.Any findings or management letters presented to the City by the SAO, b.The Audit Opinions provided to the City by the SAO, c.Any changes or adjustments made to the published, unaudited financial reports made due to audit. 2.A review of the current biennial budget to date including: a.Any updates to beginning fund balances as a result of audit, b. Biennium-to-date budgetary performance of major revenues and expenditures compared to expectations including any resulting budget amendment recommendations. (For example, if revenues are below expectations a recommendation could be made to adjust budget authority). c.The status of any interfund loans consistent with the City's lnterfund Loan Policy. 3.A preview of the future budgetary expectations. a.In an odd-numbered year, the preview will focus on the upcoming mid-biennium review. b.In an even-numbered year, the preview will focus on the upcoming biennial budget process. c.The preview will include: i.Expectations for revenue trends and the underlying issues that influence the expectations. If changes to rates or fees are anticipated, they shall be part of this discussion. ii.Expectations for expenditures in the coming fiscal period and the underlying issues influencing these expectations. iii.A draft calendar for the upcoming process (either mid- biennium review or biennial budget process). iv.An update to the long-range financial plan as appropriate along with relevant assumptions.   Item 2.1       Packet pg. 13/74   Item 2.1       Packet pg. 14/74 City Council Agenda Item 2.2 April 21, 2026 - Finance Committee TITLE:February 2026 Monthly Financial Report (First Reading) DEPARTMENT:Finance PRESENTER:Richard Gould NEEDED FROM COUNCIL:Informational RECOMMENDATION:Review and move to full council to be received for filing. BUDGET: Total Dollar Amount:N/A ☐ Approved in Budget Fund(s):N/A ☐ Budget Reallocation Required ☒ No Budget Impact PROBLEM/ISSUE STATEMENT: N/A CONTEXT, ANALYSIS, & ALTERNATIVES: N/A RECOMMENDATION: Review and move to full council to be received for filing. BUDGET IMPACTS: N/A ITEM HISTORY: N/A ADDITIONAL INFORMATION: ATTACHMENTS: February 2026 Monthly Financial Report   Item 2.2       Packet pg. 15/74 CITY OF EDMONDS FEBRUARY 2026 FINANCIAL REPORT FY 2026 February February 28, 2026   Item 2.2       Packet pg. 16/74 1 Table of Contents Financial Status Analysis .............................. 2 Monthly Highlights ...................................... 3 2025-2026 Biennial Budget Summary ......... 4 All Funds Financial Summary ....................... 5 General Fund Summaries ............................ 6 Development Services Revenue Summary .. 8 Major Revenue Summaries ......................... 9 All Revenue Summary ............................... 12 All Expenditure Summary .......................... 14 Salaries and Benefits Summaries .............. 16 Debt Summary ........................................... 20 Interfund Loan Summary ........................... 21 Investment Portfolio Summary ................. 22 General Fund Cash Flow Report ................ 24 Appendix A ................................................ 25   Item 2.2       Packet pg. 17/74 2 2026 February/Report - Financial Status Analysis The following analysis concerns the February-2026 financial report. Provided is a summary of financial activity through February 28th. The total fund balance has decreased by $1.74m as of February 28th. In the 2026 modified budget the City is projected to see a decrease in fund balance of $17m (for the entire biennium of 2025/2026) by year end. Looking at the “All Funds Financial” summary statement you can see that the most significant reasons for this current difference can be found in the General Fund ($2.9m), Waste Wastewater Treatment Plant ($372k) and the Technology Rental (512) Fund ($407k). The total fund balance decrease was up from $3.6m in January which makes sense considering the annual single payments in January for WCIA and the like. The following comments highlight other significant activity in 2026: •Interest Income continues to decline from 2025 (as of this date), down 5.1% (approximately 23k). This is due to 2 factors: (1) Multiple bonds with higher (over 4%) interest rates maturing and (2) Interest rates dropping nearly .7% from last year at this April 11th. It is down from 2024 as of this date by nearly 1.73%. •Labor costs as of February 28th YTD (year to date) Labor costs are under budget near 1.9% for February and the General Fund is under budget by 1.2%. The General Fund is over budget in just one department by 1.2% (Public Works Admin). We came into the second year of the biennium under budget in the first year by almost 9% ($3.7m). •Revenues & Expenditures - The “All Revenue Summary” shows that the City of Edmonds is under expectations at .2% (this is expected early in the year). The 2026 appropriations budget is 2.2% below budget expectations. The General Fund is exceeding budget by 1.3% primarily due to the WCIA payment (liability insurance) as can be seen in the “All Expenditure Summary”. •Sales Tax trending – February sales taxes were up by 15.7% ($183k) from 2025. This is a nice start to 2026. We did receive March’s for 2026, and it is up from 2025 by 6.4% ($57k). For the first quarter of 2026 sales tax surged at 9% ($270k) over Q1 in 2025. Good news indeed. •Development Services – exceeded expectations by (4.4%). These revenues exceed those from the first 2 months of 2025 by 16.2% ($59.5k). This is a nice change from prior trends of 2024 to 2025. The Parks and Public Works Capital Projects reports used for tracking by the Finance Department are only included with quarterly reports due to the time it takes to prepare them and that changes do not often happen monthly. In a joint effort with Public Works, we are providing information and data on which projects were delayed and why. This is included in Exhibit “A” which will now also be included with Quarterly reports. We have begun working on a Biennial Analysis for the labor and benefits costs as well as fund revenues and expenditures through the 14th month of the 2025/2026 Biennium. Labor and Benefits are under budget by 5.8% ($5.1m). The General Fund is under budget by 4.4% ($2.8m). The City is experiencing a 1.3% ($2.2 million) shortfall in revenues compared to budget. The General Fund is below budget by .8% ($875k). As of February 2026 (Month 14), City expenditures are under budget by 7.5%, or $9.7 million. The General Fund is over its expenditures budget by .2% ($166k). We have also included a new and updated cash flow report for the General Fund. Please let me know if you have any questions. I look forward to discussing this with you at the Committee Meeting on April 21st. Thank you. Richard A. Gould Finance Director   Item 2.2       Packet pg. 18/74 3 MONTHLY HIGHLIGHTS GENERAL FUND HIGHLIGHTS •Sales Tax is up $213,389 from this point last year. We are currently trending 10.06% over 2025 for sales collections through February. •General Fund Interfund Loan – The City began repayment of this loan in January of 2026; the outstanding balance on the principal as of the end of February is $5,500,000. Total interest to date that will be charged for this loan is $307,784. •Salaries and Benefits City-Wide were $(385,752) less than 2025; with the General Fund being less by $(340,224). Through February, we expended $5,034,592 for the General Fund which is $(427,119) less than we would expect through this point. This is due to leaving additional approved and funded positions vacant in 2026. Sales Tax Property Tax Other Taxes Actual 2,335,231 243,124 2,065,738 Budget 11,700,000 11,713,393 13,222,116 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Ax i s T i t l e General Fund Tax Revenue (2026 YTD) Source 2026 Amended Budget 2/28/2025 Revenues 2/28/2026 Revenues Amount Remaining % Received TAXES $ 36,635,509 $ 4,239,616 $ 4,644,093 $ 31,991,416 13% LICENSES AND PERMITS 1,965,050 320,842 343,336 1,621,714 17% INTERGOVERNMENTAL REVENUES 1,248,653 248,979 86,553 1,162,100 7% CHARGES FOR GOODS AND SERVICES 7,733,347 1,516,550 700,009 7,033,338 9% FINES AND PENALTIES 2,888,000 83,810 463,286 2,424,714 16% MISCELLANEOUS REVENUES 838,381 102,089 76,752 761,629 9% OTHER INCREASES IN FUND RESOURCES - 6,000,000 - - 0% OTHER FINANCING SOURCES 50,000 13,345 - 50,000 0% 51,358,940$ 12,525,231$ 6,314,029$ 45,044,911$ 12% CITY OF EDMONDS REVENUES - GENERAL FUND - BY SOURCE IN SUMMARY   Item 2.2       Packet pg. 19/74 4 001 General Fund 1,336,357$ 110,525,025$ 63,597,662$ 109,490,376$ 64,034,878$ 3,956,235 3,825,656$ 009 LEOFF Medical Insurance Reserve Subfund 19,441 550,000 305,000 629,000 416,452 (50,056) (13,556) 011 Risk Management Reserve Fund - - - - - - - 012 Contingency Reserve Fund 2,228,672 - - - - 2,228,672 2,228,672 014 Historic Preservation Gift Fund 4,559 - - 11,400 - (1,141) 4,559 016 Building Maintenance Fund 2,380,534 194,410 91,329 2,714,068 258,924 448,913 2,204,843 017 Marsh Restoration & Preservation Fund 861,616 - - 85,720 - 861,616 861,616 018 Edmonds Homelessness Response Fund 200,000 - - 196,425 109,397 82,340 90,665 019 Edmonds Opioid Response Fund 456,556 100,000 77,004 450,000 - 533,560 533,560 Total General Fund 7,487,735 111,369,435 64,070,996 113,576,989 64,819,651 8,060,139 9,736,015 104 Drug Enforcement Fund 47,981 9,400 3,137 40,000 14,765 34,252 49,642 111 Street Fund 177,530 4,885,000 2,761,486 5,374,146 2,555,205 343,065 631,751 112 Street Construction Fund 3,211,126 12,153,779 3,064,283 11,206,049 2,288,507 4,247,542 3,874,833 117 Municipal Arts Acquisition Fund 671,730 548,241 179,244 768,927 231,891 388,791 620,383 120 Hotel/Motel Tax Fund 165,422 258,410 158,435 290,000 253,839 166,712 133,802 121 Employee Parking Permit Fund 12,691 110,290 34,686 65,173 2,002 44,812 23,265 122 Youth Scholarship Fund 20,769 4,750 1,950 6,000 300 21,595 22,255 123 Tourism Promotional Arts Fund 151,599 57,970 59,657 84,800 37,604 136,487 175,047 125 REET 2 2,432,519 3,787,950 2,304,285 3,047,939 1,009,325 4,560,914 3,672,943 126 REET 1 4,631,092 4,043,320 2,440,340 4,054,434 1,722,562 6,090,134 5,241,638 127 Gifts Catalog Fund 3,027,911 677,940 2,236,513 1,298,953 475,319 4,425,275 4,752,932 130 Cemetery Maintenance/Imp. Fund 130,453 675,719 577,367 671,945 335,714 243,704 384,078 137 Cemetery Maintenance Fund 1,269,638 183,761 95,781 311,124 272,174 1,157,217 1,085,293 138 Sister City Commission Fund 17,896 17,540 6,249 14,800 - 22,797 23,967 140 Business Improvement District Fund 34,037 158,418 98,905 173,320 93,276 19,368 26,034 141 Affordable Housing Fund 380,831 130,000 90,296 - - 515,913 450,913 142 Edmonds Rescue Plan Fund 833 - 9,167 - - 10,000 10,000 143 Tree Fund 135,348 141,761 319,659 150,000 101,144 363,090 379,831 Total Special Revenue Funds 16,519,406 27,844,249 14,441,438 27,557,610 9,393,625 22,791,665 21,558,604 DE B T SE R V I C E FU N D S 231 2012 LTGO Debt Service Fund - 607,060 306,203 607,760 306,203 (350) - CA P I T A L PR O J E C T FU N D S 332 Parks Capital Construction Fund 299,964 684,482 163,170 237,035 28,279 632,044 423,184 411 Combined Utility Operations - - 162,765 - - 141,155 141,155 421 Water Utility Fund 19,604,419 26,894,575 16,172,707 41,237,970 18,934,574 12,237,791 15,874,212 422 Storm Utility Fund 11,007,902 21,348,402 11,182,913 22,972,678 10,993,234 11,862,687 10,161,085 423 Sewer/WWTP Utility Fund 16,635,982 39,829,016 22,468,439 40,183,053 19,559,944 20,364,498 19,916,362 424 Utility Debt Service Fund - 2,323,310 1,149,488 2,297,790 1,149,369 119 119 Total Enterprise Funds 47,248,303 90,395,303 51,136,312 106,691,491 50,637,121 44,606,250 46,092,933 511 Equipment Rental Fund 5,380,342 4,889,190 3,327,576 4,121,587 2,382,041 6,867,368 6,336,429 512 Technology Rental Fund 906,736 5,056,171 2,805,071 5,010,600 2,736,240 1,253,018 1,382,957 Total Internal Service Funds 6,287,078 9,945,361 6,132,646 9,132,187 5,118,281 8,120,386 7,719,386 77,842,486$ 240,845,890$ 136,250,764$ 257,803,072$ 130,303,160$ 84,210,134$ 85,530,122$ TOTAL 2025 Beginning Fund Balance 2025-2026 Adopted Revenue Budget 2025-2026 Adopted Expense BudgetFund 2026 Estimated Ending Fund Balance 2025-2026 BIENNIAL BUDGET SUMMARY - ALL FUNDS GE N E R A L F U N D SP E C I A L R E V E N U E F U N D S EN T E R P R I S E FU N D S IN T E R N A L S E R V I C E F U N D S 2025 Prelimimary Ending Fund Balance 2025-2026 Actual Revenues Period 1-14 2025-2026 Actual Expenses Period 1-14   Item 2.2       Packet pg. 20/74 5 City of Edmonds All Funds Financial Summary As of February 28, 2026 Fund Beginning Fund Balance* Revenues / Sources Expenditures / Uses Revenues less Expenditures Ending Fund Balance Governmental 001 General Fund 3,825,656 6,314,029 9,240,544 (2,926,515) 899,142 009 LEOFF Medical Insurance Reserve (13,556) - 78,455 (78,455) (92,011) 012 Contingency Reserve 2,228,672 - - - 2,228,672 014 Historic Sub-Fund 4,559 - - - 4,559 016 Building Maintenance 2,204,843 12,578 4,482 8,096 2,212,939 017 Marsh Restoration 861,616 - - - 861,616 018 Homeless Response 90,665 - 62 (62) 90,603 019 Opioid Response 533,560 - - - 533,560 Total General Funds 9,736,015 6,326,607 9,323,542 (2,996,935) 6,739,080 Special Revenue Funds 104 Drug Enforcement 49,642 325 13,615 (13,290) 36,352 111 Street 631,751 333,056 580,997 (247,940) 383,810 112 Street Construction 3,874,833 277,958 165,889 112,069 3,986,902 117 Municipal Arts 620,383 4,561 5,860 (1,299) 619,083 120 Hotel / Motel 133,802 17,128 80,912 (63,784) 70,019 121 Employee Parking 23,265 22,110 - 22,110 45,375 122 Youth Scholarship 22,255 164 - 164 22,419 123 Tourism Promotion 175,047 6,655 8,048 (1,394) 173,653 125 REET 2 3,672,943 163,110 108,574 54,536 3,727,479 126 REET 1 5,241,638 174,590 67,357 107,232 5,348,870 127 Gifts Catalog 4,752,932 89,535 53,361 36,174 4,789,106 130 Cemetery Maintenance 384,078 41,461 53,432 (11,971) 372,107 137 Cemetery Trust 1,085,293 7,952 - 7,952 1,093,245 138 Sister City 23,967 178 - 178 24,145 140 Business Improvement 26,034 22,515 8,882 13,633 39,666 141 Affordable Housing 450,913 20,214 - 20,214 471,127 142 Edmonds Rescue 10,000 - - - 10,000 143 Tree Fund 379,831 7,533 33,502 (25,969) 353,862 Capital Projects 423,184 11,671 - 11,671 434,855 Debt Service - - - - - Enterprise Funds 411 Combined Utility Operation 141,155 21,610 - 21,610 162,765 421 Water Utility 15,874,212 2,553,038 1,584,698 968,340 16,842,551 422 Storm Water Utility 10,161,085 2,445,685 1,409,190 1,036,495 11,197,580 423 Sewer / Wastewater Treatment Plant 19,916,362 2,933,591 3,305,476 (371,885) 19,544,477 424 Bond Reserve Fund 119 - - - 119 Internal Service Funds 511 Equipment Rental 6,336,429 409,913 420,465 (10,552) 6,325,877 512 Technology Rental 1,382,957 396,316 803,707 (407,391) 975,567 All Funds 85,530,121 16,287,476 18,027,509 (1,740,033) 83,790,089 *All Beginning Fund Balance amounts are preliminary until the completion of the 2025 Financial Statements. $200,000 of the Fund Balance in Fund 126 has been reserved for Marsh Restoration Funding, as well as $1,200,000 for the purchase of Open Space. $250,000 of the Fund Balance in Fund 422 has been reserved for Marsh Restoration Funding.   Item 2.2       Packet pg. 21/74 6 GENERAL FUND DEPARTMENT EXPENSE SUMMARY Title 2026 Amended Budget 2/28/2025 Expenditures 2/28/2026 Expenditures Amount Remaining % Spent CITY COUNCIL 467,139$ 87,958$ 74,602$ 392,537$ 16% OFFICE OF MAYOR 498,006 67,246 68,002 430,004 14% HUMAN RESOURCES 1,107,185 172,246 159,294 947,891 14% CITY ADMINISTRATOR 633,656 - 62,553 571,103 10% CITY ATTORNEY 1,326,346 25,000 219,876 1,106,470 17% CITY CLERK 492,795 - 60,688 432,107 12% ADMINISTRATIVE SERVICES 1,817,770 394,713 308,404 1,509,366 17% NON-DEPARTMENTAL 6,768,912 3,421,005 2,164,618 4,604,294 32% POLICE SERVICES 18,318,018 2,900,629 3,204,349 15,113,669 17% MUNICIPAL COURT 2,552,457 289,391 393,024 2,159,433 15% SATELLITE OFFICE - 10,639 - - 0% COMMUNITY SERVICES/ECONOMIC DEV.- 170,999 26,139 (26,139) 0% PLANNING & DEVELOPMENT 4,324,631 572,340 611,279 3,713,352 14% HUMAN SERVICES PROGRAM - 28,305 - - 0% PARKS & RECREATION 5,281,125 788,738 801,702 4,479,423 15% PUBLIC WORKS ADMINISTRATION 882,456 112,309 153,560 728,896 17% FACILITIES MAINTENANCE 2,606,747 392,161 381,604 2,225,143 15% ENGINEERING 4,151,118 521,440 550,851 3,600,267 13% 51,228,361$ 9,955,119$ 9,240,544$ 41,987,817$ 18% EXPENDITURES - GENERAL FUND - BY DEPARTMENT IN SUMMARY CITY OF EDMONDS   Item 2.2       Packet pg. 22/74 7 GENERAL FUND SUMMARY General Fund - 2025 Revenue Summary Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 5,083,099$ 5,083,099$ 2,714,712$ 2,714,712$ -46.59% February 8,864,398 3,781,299 3,599,318 6,314,029 -28.77% March 12,726,533 3,862,135 2,750,963 9,064,993 -28.77% April 21,208,931 8,482,398 6,041,934 15,106,927 -28.77% May 25,180,718 3,971,787 2,829,067 17,935,994 -28.77% June 28,098,591 2,917,873 2,078,374 20,014,368 -28.77% July 30,749,651 2,651,060 1,888,326 21,902,694 -28.77% August 33,546,244 2,796,593 1,991,987 23,894,681 -28.77% September 36,539,778 2,993,534 2,132,267 26,026,948 -28.77% October 45,143,911 8,604,133 6,128,645 32,155,593 -28.77% November 48,515,444 3,371,533 2,401,512 34,557,105 -28.77% December 51,358,940 2,843,496 2,025,396 36,582,501 -28.77% 51,358,940$ General Fund Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 4,863,083$ 4,863,083$ 5,139,579$ 5,139,579$ 5.69% February 8,755,349 3,892,267 4,100,965 9,240,544 5.54% March 13,082,213 4,326,863 4,566,645 13,807,189 5.54% April 17,041,379 3,959,167 4,178,571 17,985,760 5.54% May 21,125,693 4,084,314 4,310,654 22,296,414 5.54% June 25,505,669 4,379,976 4,622,700 26,919,115 5.54% July 29,300,869 3,795,201 4,005,519 30,924,634 5.54% August 33,250,576 3,949,707 4,168,587 35,093,221 5.54% September 37,517,608 4,267,032 4,503,498 39,596,718 5.54% October 41,890,182 4,372,574 4,614,888 44,211,607 5.54% November 46,334,305 4,444,123 4,690,403 48,902,010 5.54% December 51,228,361 4,894,056 5,165,270 54,067,279 5.54% 51,228,361$ *The monthly budget trend columns are based on a two year trend. 2026 City of Edmonds, WA Monthly Revenue Summary-General Fund 2026 City of Edmonds, WA Monthly Expenditure Summary-General Fund *The monthly budget trend column is based on a two year trend. 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 55,000,000 60,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC General Fund Current Year Budget Prior Year 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 55,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC General Fund Current Year Budget Prior Year   Item 2.2       Packet pg. 23/74 8 DEVELOPMENT SERVICES REVENUE SUMMARY Source 2026 Amended Budget 2/28/2025 Revenues 2/28/2026 Revenues Amount Remaining % Received DEV SERV PERMIT SURCHARGE 90,000$ 19,622$ 17,461$ 72,539$ 19% RIGHT OF WAY FRANCHISE FEE 30,000 17,322 29,879 121 100% BUILDING PERMITS 40,000 16,245 27,351 12,649 68% FIRE PERMIT 5,000 - - 5,000 0% ENGINEERING PERMIT 108,300 5,937 2,848 105,452 3% ENG PERMIT - RIGHT OF WAY - 17,810 13,769 (13,769) 0% ENG PERMIT - ENCROACHMENT - - 429 (429) 0% ENG PERMIT - STREET USE - - - - 0% STREET AND CURB PERMIT - - - - 0% STREET AND CURB PERMIT W/LEASEHOLD 10,000 - - 10,000 0% ENGINEERING FEES AND CHARGES - - - - 0% FIRE CONSTRUCTION INSPECTION FEES 10,000 3,598 9,324 676 93% ZONING/SUBDIVISION FEE - - 572 (572) 0% BUILDING PLAN REVIEW AND INSPECTION 1,160,000 172,900 236,595 923,405 20% BUILDING PEER PLAN REVIEW - - - - 0% FIRE PLAN REVIEW 25,000 4,003 5,110 19,890 20% PLANNING REVIEW AND INSPECTION 110,000 17,981 19,867 90,133 18% PLANNING PEER PLAN REVIEW - - 1,422 (1,422) 0% S.E.P.A. REVIEW 6,000 2,751 - 6,000 0% ENG PLAN REVIEWS 210,000 54,529 6,855 203,145 3% ENGINEERING PEER PLAN REVIEW 200,000 20,500 30,200 169,800 15% ENG INSPECTIONS - 11,321 21,312 (21,312) 0% CRITICAL AREA STUDY 17,000 3,414 4,433 12,567 26% 2,021,300$ 367,932$ 427,427$ 1,593,873$ 21% CITY OF EDMONDS DEVELOPMENT SERVICES REVENUES SUMMARY   Item 2.2       Packet pg. 24/74 9 MAJOR REVENUE SUMMARY Property Tax 2025 total property tax collections were 2.85% higher than 2024 total collections. This is a sign of multiple indicators such as assessed valuation and possibly new construction along with the 1% allowable on property tax increases. The timing of recording property tax revenues changed in 2023 to be recorded in the month that they were for versus the month that the payment was received. This is the reason for the difference between the years 2022, and 2023-2026. $29,355 $206,364 $387,909 $355,416 $256,728 - 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 400,000.00 450,000.00 500,000.00 2022 2023 2024 2025 2026 Property Tax Revenues (January through February ) Sales Tax In the next chart, sales tax is up 10.06% from this point in time in 2025. This is up from last year when it was up 4.29% at this point. $1,464,443 $1,539,597 $1,647,058 $1,853,000 $1,908,832 $2,034,598 $2,121,842 $2,335,231 - 200,000.00 400,000.00 600,000.00 800,000.00 1,000,000.00 1,200,000.00 1,400,000.00 1,600,000.00 1,800,000.00 2,000,000.00 2,200,000.00 2,400,000.00 2,600,000.00 2019 2020 2021 2022 2023 2024 2025 YTD 2026 Sales Tax Revenues (January through February   Item 2.2       Packet pg. 25/74 10 MAJOR REVENUE SUMMARY Charges for Services $613,778 $505,733 $1,000,015 $1,516,550 $700,009 - 200,000.00 400,000.00 600,000.00 800,000.00 1,000,000.00 1,200,000.00 1,400,000.00 1,600,000.00 1,800,000.00 2022 2023 2024 2025 2026 Charges for Services Revenues (January through February ) Water Utility Tax $138,271 $143,978 $154,868 $165,810 $365,871 - 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 400,000.00 450,000.00 500,000.00 2022 2023 2024 2025 2026 Water Utility Tax Revenues (January through February )   Item 2.2       Packet pg. 26/74 11 MAJOR REVENUE SUMMARY Sewer Utility Tax $160,357 $166,439 $185,988 $205,158 $453,547 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2022 2023 2024 2025 2026 Sewer Utility Tax Revenues (January through February ) Real Estate Excise Tax Real Estate Excise Taxes (REET) are collected from all real estate transactions. The utilization of this revenue is restricted to capital projects and projects identified in the capital facilities plan. Real Estate Excise Tax is down -41.78% from this point in time last year. $922,678 $377,997 $270,799 $299,908 $387,997 $272,988 - 100,000.00 200,000.00 300,000.00 400,000.00 500,000.00 600,000.00 700,000.00 800,000.00 900,000.00 1,000,000.00 2021 2022 2023 2024 2025 2026 Real Estate Excise Taxes (January through February )   Item 2.2       Packet pg. 27/74 12 ALL REVENUE SUMMARY Fund No.Title 2026 Amended Budget 2/28/2025 Revenues 2/28/2026 Revenues Amount Remaining % Received 001 GENERAL FUND 51,358,940$ 12,525,231$ 6,314,029$ 45,044,911$ 12% 009 LEOFF-MEDICAL INS. RESERVE 275,000 - - 275,000 0% 016 BUILDING MAINTENANCE FUND 94,070 13,078 12,578 81,492 13% 017 MARSH RESTORATION & PRESERVATION FUND - - - - 0% 019 EDMONDS OPIOID RESPONSE FUND 50,000 - - 50,000 0% 104 DRUG ENFORCEMENT FUND 4,610 495 325 4,285 7% 111 STREET FUND 2,445,000 318,135 333,056 2,111,944 14% 112 COMBINED STREET CONST/IMPROVE 9,027,861 627,371 277,958 8,749,903 3% 117 MUNICIPAL ARTS ACQUIS. FUND 121,420 73,147 4,561 116,859 4% 120 HOTEL/MOTEL TAX REVENUE FUND 128,910 18,082 17,128 111,782 13% 121 EMPLOYEE PARKING PERMIT FUND 54,950 9,466 22,110 32,840 40% 122 YOUTH SCHOLARSHIP FUND 2,340 213 164 2,176 7% 123 TOURISM PROMOTIONAL FUND/ARTS 8,740 7,019 6,655 2,085 76% 125 REAL ESTATE EXCISE TAX 2 2,139,330 220,140 163,110 1,976,220 8% 126 REAL ESTATE EXCISE TAX 1 2,262,900 242,062 174,590 2,088,310 8% 127 GIFTS CATALOG FUND 332,360 31,360 89,535 242,825 27% 130 CEMETERY MAINTENANCE/IMPROVEMT 202,562 39,950 41,461 161,101 20% 137 CEMETERY MAINTENANCE TRUST FD 96,924 17,336 7,952 88,972 8% 138 SISTER CITY COMMISSION 6,230 184 178 6,052 3% 140 BUSINESS IMPROVEMENT DISTRICT 79,209 27,109 22,515 56,694 28% 141 AFFORDABLE AND SUPPORTIVE HOUSING FUND 65,000 18,255 20,214 44,786 31% 142 EDMONDS RESCUE PLAN FUND - 833 - - 0% 143 TREE FUND 58,259 269,495 7,533 50,726 13% 231 2012 LT GO DEBT SERVICE FUND 301,190 - - 301,190 0% 332 PARKS CAPITAL CONSTRUCTION FUND 335,860 68,814 11,671 324,189 3% 411 COMBINED UTILITY OPERATION - 20,315 21,610 (21,610) 0% 421 WATER UTILITY FUND 15,030,903 1,945,266 2,553,038 12,477,865 17% 422 STORM UTILITY FUND 12,074,888 2,011,307 2,445,685 9,629,203 20% 423 SEWER/WWTP UTILITY FUND 20,499,448 2,960,893 2,933,591 17,565,857 14% 424 BOND RESERVE FUND 1,148,390 115 1 1,148,389 0% 511 EQUIPMENT RENTAL FUND 2,512,920 409,149 409,913 2,103,007 16% 512 TECHNOLOGY RENTAL FUND 2,652,589 409,197 396,316 2,256,273 15% 123,370,803$ 22,284,016$ 16,287,476 107,083,327$ 13% CITY OF EDMONDS REVENUES BY FUND - SUMMARY   Item 2.2       Packet pg. 28/74 13 ALL REVENUE SUMMARY Fund No.Title 2025-2026 Adopted Revenue Budget 2025-2026 Actual Revenues Period 1-14 Amount Remaining % Received 001 GENERAL FUND 110,525,025$ 63,597,662$ 46,927,363$ 58% 009 LEOFF-MEDICAL INS. RESERVE 550,000 305,000 245,000 55% 016 BUILDING MAINTENANCE FUND 194,410 91,329 103,081 47% 017 MARSH RESTORATION & PRESERVATION FUND - - - 0% 019 EDMONDS OPIOID RESPONSE FUND 100,000 77,004 22,996 77% 104 DRUG ENFORCEMENT FUND 9,400 3,137 6,263 33% 111 STREET FUND 4,885,000 2,761,486 2,123,514 57% 112 COMBINED STREET CONST/IMPROVE 12,153,779 3,064,283 9,089,496 25% 117 MUNICIPAL ARTS ACQUIS. FUND 548,241 179,244 368,997 33% 120 HOTEL/MOTEL TAX REVENUE FUND 258,410 158,435 99,975 61% 121 EMPLOYEE PARKING PERMIT FUND 110,290 34,686 75,604 31% 122 YOUTH SCHOLARSHIP FUND 4,750 1,950 2,800 41% 123 TOURISM PROMOTIONAL FUND/ARTS 57,970 59,657 (1,687) 103% 125 REAL ESTATE EXCISE TAX 2 3,787,950 2,304,285 1,483,665 61% 126 REAL ESTATE EXCISE TAX 1 4,043,320 2,440,340 1,602,980 60% 127 GIFTS CATALOG FUND 677,940 2,236,513 (1,558,573) 330% 130 CEMETERY MAINTENANCE/IMPROVEMT 675,719 577,367 98,352 85% 137 CEMETERY MAINTENANCE TRUST FD 183,761 95,781 87,980 52% 138 SISTER CITY COMMISSION 17,540 6,249 11,291 36% 140 BUSINESS IMPROVEMENT DISTRICT 158,418 98,905 59,513 62% 141 AFFORDABLE AND SUPPORTIVE HOUSING FUND 130,000 90,296 39,704 69% 142 EDMONDS RESCUE PLAN FUND - 9,167 (9,167) 0% 143 TREE FUND 141,761 319,659 (177,898) 225% 231 2012 LT GO DEBT SERVICE FUND 607,060 306,203 300,858 50% 332 PARKS CAPITAL CONSTRUCTION FUND 684,482 163,170 521,312 24% 411 COMBINED UTILITY OPERATION - 162,765 (162,765) 0% 421 WATER UTILITY FUND 26,894,575 16,172,707 10,721,868 60% 422 STORM UTILITY FUND 21,348,402 11,182,913 10,165,490 52% 423 SEWER/WWTP UTILITY FUND 39,829,016 22,468,439 17,360,577 56% 424 BOND RESERVE FUND 2,323,310 1,149,488 1,173,822 49% 511 EQUIPMENT RENTAL FUND 4,889,190 3,327,576 1,561,614 68% 512 TECHNOLOGY RENTAL FUND 5,056,171 2,805,071 2,251,100 55% 240,845,890$ 136,250,764$ 104,595,126$ 57% CITY OF EDMONDS REVENUES BY FUND - SUMMARY   Item 2.2       Packet pg. 29/74 14 ALL EXPENDITURE SUMMARY Fund No.Title 2026 Amended Budget 2/28/2025 Expenditures 2/28/2026 Expenditures Amount Remaining % Spent 001 GENERAL FUND 51,228,361$ 9,955,119$ 9,240,544$ 41,987,817$ 18% 009 LEOFF-MEDICAL INS. RESERVE 311,500 53,207 78,455 233,045 25% 011 RISK MANAGEMENT RESERVE FUND - - - - 0% 014 HISTORIC PRESERVATION GIFT FUND 5,700 - - 5,700 0% 016 BUILDING MAINTENANCE FUND 1,850,000 2,637 4,482 1,845,518 0% 017 MARSH RESTORATION & PRESERVATION FUND - - - - 0% 018 EDMONDS HOMELESSNESS RESPONSE FUND 8,325 13,345 62 8,263 1% 019 EDMONDS OPIOID RESPONSE FUND 50,000 - - 50,000 0% 104 DRUG ENFORCEMENT FUND 20,000 - 13,615 6,385 68% 111 STREET FUND 2,733,686 478,641 580,997 2,152,689 21% 112 COMBINED STREET CONST/IMPROVE 8,655,152 305,502 165,889 8,489,263 2% 117 MUNICIPAL ARTS ACQUIS. FUND 353,012 29,795 5,860 347,152 2% 120 HOTEL/MOTEL TAX REVENUE FUND 96,000 2,170 80,912 15,088 84% 121 EMPLOYEE PARKING PERMIT FUND 33,403 - - 33,403 0% 122 YOUTH SCHOLARSHIP FUND 3,000 - - 3,000 0% 123 TOURISM PROMOTIONAL FUND/ARTS 47,300 - 8,048 39,252 17% 125 REAL ESTATE EXCISE TAX 2 1,251,359 43,476 108,574 1,142,785 9% 126 REAL ESTATE EXCISE TAX 1 1,414,404 185 67,357 1,347,047 5% 127 GIFTS CATALOG FUND 660,017 47,857 53,361 606,656 8% 130 CEMETERY MAINTENANCE/IMPROVEMT 342,936 40,313 53,432 289,504 16% 137 CEMETERY MAINTENANCE TRUST FUND 25,000 - - 25,000 0% 138 SISTER CITY COMMISSION 7,400 - - 7,400 0% 140 BUSINESS IMPROVEMENT DISTRICT 85,875 5,573 8,882 76,993 10% 142 EDMONDS RESCUE PLAN FUND - - - - 0% 143 TREE FUND 75,000 223 33,502 41,498 45% 231 2012 LT GO DEBT SERVICE FUND 301,540 - - 301,540 0% 332 PARKS CAPITAL CONSTRUCTION FUND 127,000 - - 127,000 0% 421 WATER UTILITY FUND 18,667,324 4,565,091 1,584,698 17,082,626 8% 422 STORM UTILITY FUND 10,373,286 3,304,866 1,409,190 8,964,096 14% 423 SEWER/WWTP UTILITY FUND 20,051,312 2,335,239 3,305,476 16,745,836 16% 424 BOND RESERVE FUND 1,148,390 - - 1,148,390 0% 511 EQUIPMENT RENTAL FUND 1,981,981 325,256 420,465 1,561,516 21% 512 TECHNOLOGY RENTAL FUND 2,782,528 745,971 803,707 1,978,821 29% 124,690,791$ 22,254,465$ 18,027,509 106,663,282$ 14% CITY OF EDMONDS EXPENDITURES BY FUND - SUMMARY   Item 2.2       Packet pg. 30/74 15 ALL EXPENDITURE SUMMARY Fund No.Title 2025-2026 Adopted Expenditure Budget 2025-2026 Actual Expenditures Period 1-14 Amount Remaining % Spent 001 GENERAL FUND 109,490,376$ 64,034,878$ 45,455,498$ 58% 009 LEOFF-MEDICAL INS. RESERVE 629,000 416,452 212,548 66% 011 RISK MANAGEMENT RESERVE FUND - - - 0% 014 HISTORIC PRESERVATION GIFT FUND 11,400 - 11,400 0% 016 BUILDING MAINTENANCE FUND 2,714,068 258,924 2,455,144 10% 017 MARSH RESTORATION & PRESERVATION FUND 85,720 - 85,720 0% 018 EDMONDS HOMELESSNESS RESPONSE FUND 196,425 109,397 87,028 56% 019 EDMONDS OPIOID RESPONSE FUND 450,000 - 450,000 0% 104 DRUG ENFORCEMENT FUND 40,000 14,765 25,235 37% 111 STREET FUND 5,374,146 2,555,205 2,818,941 48% 112 COMBINED STREET CONST/IMPROVE 11,206,049 2,288,507 8,917,542 20% 117 MUNICIPAL ARTS ACQUIS. FUND 768,927 231,891 537,036 30% 120 HOTEL/MOTEL TAX REVENUE FUND 290,000 253,839 36,161 88% 121 EMPLOYEE PARKING PERMIT FUND 65,173 2,002 63,171 3% 122 YOUTH SCHOLARSHIP FUND 6,000 300 5,700 5% 123 TOURISM PROMOTIONAL FUND/ARTS 84,800 37,604 47,196 44% 125 REAL ESTATE EXCISE TAX 2 3,047,939 1,009,325 2,038,614 33% 126 REAL ESTATE EXCISE TAX 1 4,054,434 1,722,562 2,331,872 42% 127 GIFTS CATALOG FUND 1,298,953 475,319 823,634 37% 130 CEMETERY MAINTENANCE/IMPROVEMT 671,945 335,714 336,231 50% 137 CEMETERY MAINTENANCE TRUST FUND 311,124 272,174 38,950 87% 138 SISTER CITY COMMISSION 14,800 - 14,800 0% 140 BUSINESS IMPROVEMENT DISTRICT 173,320 93,276 80,044 54% 142 EDMONDS RESCUE PLAN FUND - - - 0% 143 TREE FUND 150,000 101,144 48,856 67% 231 2012 LT GO DEBT SERVICE FUND 607,760 306,203 301,558 50% 332 PARKS CAPITAL CONSTRUCTION FUND 237,035 28,279 208,756 12% 421 WATER UTILITY FUND 41,237,970 18,934,574 22,303,396 46% 422 STORM UTILITY FUND 22,972,678 10,993,234 11,979,444 48% 423 SEWER/WWTP UTILITY FUND 40,183,053 19,559,944 20,623,109 49% 424 BOND RESERVE FUND 2,297,790 1,149,369 1,148,421 50% 511 EQUIPMENT RENTAL FUND 4,121,587 2,382,041 1,739,546 58% 512 TECHNOLOGY RENTAL FUND 5,010,600 2,736,240 2,274,360$ 55% 257,803,072$ 130,303,160$ 127,499,912$ 51% CITY OF EDMONDS EXPENDITURES BY FUND - SUMMARY   Item 2.2       Packet pg. 31/74 16 SALARIES AND BENEFITS SUMMARY Below is a comparison of the total staff labor related costs (salaries and benefits) for 2019 through 2026. $4,819,414 $5,002,798 $5,165,363 $5,312,220 $7,436,991 $7,117,164 $7,062,368 $6,676,616 - 1,000,000.00 2,000,000.00 3,000,000.00 4,000,000.00 5,000,000.00 6,000,000.00 7,000,000.00 8,000,000.00 9,000,000.00 10,000,000.00 2019 2020 2021 2022 2023 2024 2025 2026 Salaries & Benefits (January through February ) Department 2026 Approved "Regular" positions 2026 Modification Reductions 2026 Total (with modification) 2026 Active (as of 3/5/26) 2026 Vacant but funded (as of 3/6/26) City Council 8.00 8.00 8.00 - Mayor 5.00 5.00 5.00 - City Administrator 2.00 2.00 Human Resources 4.00 4.00 4.00 - Court 11.67 11.67 11.00 0.67 Administrative Services 10.00 10.00 9.00 1.00 Information Services 6.00 6.00 5.00 1.00 Police 61.50 (2.00) 59.50 58.50 1.00 Planning & Development 20.40 20.40 19.40 1.00 Parks, Recreation and Human Services 30.32 (2.00) 28.32 26.00 2.32 Public Works Admin/Facilities 15.03 15.03 11.03 4.00 Engineering 18.50 18.50 14.50 4.00 Streets/Storm 20.00 20.00 17.00 3.00 Water/Sewer/Treatment Plant 38.00 38.00 30.00 8.00 Equipment Rental 4.00 4.00 4.00 - Total City Employee Count 254.42 (4.00) 250.42 222.43 25.99 The above chart only reflects approved and funded "regular" positions. Unfunded "Regular" PositionsUnfunded "Irregular" Positions Mayor 1.00 Human Resources 0.63 - Court 1.00 - Administrative Services 2.00 - Information Services 1.00 0.25 Police 26.00 - Community Services & Economic Development 1.75 - Planning & Development 1.60 - Parks, Recreation and Human Services 10.94 2.87 Public Works Admin/Facilities 1.00 - Engineering - 1.00 46.92 4.12   Item 2.2       Packet pg. 32/74 17 Page 1 of 3 Title 2026 Amended Budget 2/28/2025 Expenditures 2/28/2026 Expenditures Amount Remaining % Spent CITY COUNCIL SALARIES AND WAGES 265,506$ 43,207$ 39,200$ 226,306$ 15% OVERTIME - - 813 (813) 0% BENEFITS 135,028 35,838 25,463 109,565 19% 400,534$ 79,045$ 65,476$ 335,058$ 16% OFFICE OF MAYOR SALARIES AND WAGES 298,357$ 39,761$ 46,782$ 251,575$ 16% OVERTIME - - - - 0% BENEFITS 77,027 11,782 14,818 62,209 19% 375,384$ 51,543$ 61,600$ 313,784$ 16% HUMAN RESOURCES SALARIES AND WAGES 626,019$ 94,138$ 98,742$ 527,278$ 16% OVERTIME - - - - 0% BENEFITS 221,541 33,670 35,252 186,289 16% 847,560$ 127,807$ 133,993$ 713,567$ 16% CITY ADMINISTRATOR SALARIES AND WAGES 368,025$ 48,471$ 319,554$ 13% OVERTIME - - - 0% BENEFITS 97,691 14,025 83,666 14% 465,716$ -$ 62,496$ 403,220$ 13% CITY CLERK SALARIES AND WAGES 261,548$ 37,835$ 223,713$ 14% OVERTIME - - - 0% BENEFITS 94,617 9,945 84,672 11% 356,165$ -$ 47,780$ 308,385$ 13% ADMINISTRATIVE SERVICES SALARIES AND WAGES 1,225,806$ 271,883$ 206,414$ 1,019,392$ 17% OVERTIME 8,000 1,360 9,470 (1,470) 118% BENEFITS 447,639 79,995 59,722 387,917 13% 1,681,445$ 353,238$ 275,606$ 1,405,839$ 16% NON-DEPARTMENTAL SALARIES AND WAGES 249,063$ -$ -$ 249,063$ 0% OVERTIME - - - - 0% BENEFITS 48,607 20,417 14,297 34,310 29% 297,670$ 20,417$ 14,297$ 283,373$ 5% POLICE SERVICES SALARIES AND WAGES 9,364,798$ 1,717,145$ 1,442,279$ 7,922,519$ 15% OVERTIME 764,747 78,874 122,107 642,640 16% HOLIDAY BUYBACK 287,420 490 - 287,420 0% BENEFITS 3,281,907 604,770 575,971 2,705,936 18% 13,698,872$ 2,401,278$ 2,140,357$ 11,558,515$ 16% MUNICIPAL COURT SALARIES AND WAGES 1,455,523$ 184,801$ 221,654$ 1,233,869$ 15% OVERTIME 10,000 647 2,013 7,987 20% BENEFITS 418,948 57,497 70,714 348,234 17% 1,884,471$ 242,945$ 294,381$ 1,590,090$ 16% COMMUNITY SERVICES/ECON DEV. SALARIES AND WAGES -$ 111,194$ 10,793$ (10,793)$ 0% OVERTIME - 1,394 - - 0% BENEFITS - 37,141 2,970 (2,970) 0% -$ 149,730$ 13,763$ (13,763)$ 0% PLANNING & DEVELOPMENT SALARIES AND WAGES 2,421,740$ 374,334$ 368,631$ 2,053,109$ 15% OVERTIME - - - - 0% BENEFITS 919,886 114,533 140,409 779,477 15% 3,341,626$ 488,867$ 509,040$ 2,832,586$ 15% HUMAN SERVICES PROGRAM SALARIES AND WAGES $ - $ 22,068 $ - $ - 0% OVERTIME - - - - 0% BENEFITS - 5,918 - - 0% $ - $ 27,986 $ - $ - 0% CITY OF EDMONDS GENERAL FUND - SALARIES AND BENEFITS - BY DEPARTMENT IN DETAIL   Item 2.2       Packet pg. 33/74 18 Page 2 of 3 PARKS & RECREATION SALARIES AND WAGES 2,571,512$ 438,523$ 422,030$ 2,149,482$ 16% OVERTIME 10,000 667 1,798 8,202 18% BENEFITS 1,025,458 167,538 154,128 871,330 15% 3,606,970$ 606,728$ 577,956$ 3,029,014$ 16% PUBLIC WORKS ADMINISTRATION SALARIES AND WAGES 489,335$ 58,053$ 91,173$ 398,162$ 19% OVERTIME - - - - 0% BENEFITS 194,326 22,930 30,887 163,439 16% 683,661$ 80,983$ 122,060$ 561,601$ 18% FACILITIES MAINTENANCE SALARIES AND WAGES 1,038,037$ 191,565$ 156,195$ 881,842$ 15% OVERTIME 9,000 1,137 442 8,558 5% BENEFITS 453,470 75,506 60,294 393,176 13% 1,500,507$ 268,208$ 216,931$ 1,283,576$ 14% ENGINEERING SALARIES AND WAGES 2,665,936$ 348,555$ 380,997$ 2,284,939$ 14% OVERTIME 5,857 1 - 5,857 0% BENEFITS 957,890 127,486 117,859 840,031 12% 3,629,683$ 476,041$ 498,856$ 3,130,827$ 14% TOTAL GENERAL FUND SALARIES AND BENEFITS 32,770,264$ 5,374,816$ 5,034,592$ 27,735,672$ 15% LEOFF-MEDICAL INS. RESERVE (009) BENEFITS 167,000$ 28,519$ 26,357$ 140,643$ 16% 167,000$ 28,519$ 26,357$ 140,643$ 16% STREET FUND (111) SALARIES AND WAGES 1,026,728$ 119,147$ 113,878$ 912,850$ 11% OVERTIME 41,700 3,007 6,106 35,594 15% BENEFITS 449,049 50,971 41,721 407,328 9% 1,517,477$ 173,125$ 161,706$ 1,355,771$ 11% MUNICIPAL ARTS ACQUIS. FUND (117) SALARIES AND WAGES 97,365$ -$ -$ 97,365$ 0% BENEFITS 44,247 - - 44,247 0% 141,612$ -$ -$ 141,612$ 0% EMPLOYEE PARKING PERMIT FUND (121) SALARIES AND WAGES 23,718$ -$ -$ 23,718$ 0% OVERTIME - - - - 0% BENEFITS 7,585 - - 7,585 0% 31,303$ -$ -$ 31,303$ 0% REAL ESTATE EXCISE TAX 1 (125) SALARIES AND WAGES -$ -$ 20,006$ (20,006)$ 0% OVERTIME - - - - 0% BENEFITS - - 6,953 (6,953) 0% -$ -$ 26,958$ (26,958)$ 0% GIFTS CATALOG FUND (127) SALARIES AND WAGES 288,125$ 33,618$ 33,474$ 254,651$ 12% OVERTIME - - 331 (331) 0% BENEFITS 146,862 9,039 12,174 134,688 8% 434,987$ 42,657$ 45,980$ 389,007$ 11% CITY OF EDMONDS NON GENERAL FUND - SALARIES AND BENEFITS - BY DEPARTMENT IN DETAIL CITY OF EDMONDS GENERAL FUND - SALARIES AND BENEFITS - BY DEPARTMENT IN DETAIL   Item 2.2       Packet pg. 34/74 19 Page 3 of 3 CEMETERY MAINTENANCE/IMPROVEMENT (130) SALARIES AND WAGES 198,453$ 21,169$ 25,942$ 172,511$ 13% OVERTIME 3,500 281 - 3,500 0% BENEFITS 75,188 8,830 16,711 58,477 22% 277,141$ 30,280$ 42,654$ 234,487$ 15% WATER FUND (421) SALARIES AND WAGES 1,278,765$ 167,855$ 162,420$ 1,116,345$ 13% OVERTIME 27,500 5,235 6,796 20,704 25% BENEFITS 546,838 75,233 70,408 476,430 13% 1,853,103$ 248,323$ 239,624$ 1,613,479$ 13% STORM FUND (422) SALARIES AND WAGES 1,078,536$ 152,389$ 176,604$ 901,932$ 16% OVERTIME 28,552 4,787 3,455 25,097 12% BENEFITS 450,180 69,831 79,319 370,861 18% 1,557,268$ 227,006$ 259,379$ 1,297,889$ 17% SEWER FUND (423) SALARIES AND WAGES 891,334$ 477,263$ 125,798$ 765,536$ 14% OVERTIME 32,438 35,067 6,011 26,427 19% BENEFITS 353,292 178,509 47,266 306,026 13% 1,277,064$ 690,839$ 179,075$ 1,097,989$ 14% SEWER FUND (423) - WWTP SALARIES AND WAGES 2,383,116$ 263,927$ 2,119,189$ 11% OVERTIME 125,000 55,557 69,442.73 44% BENEFITS 907,763 109,392 798,371.25 12% 3,415,879$ -$ 428,876$ 2,987,003$ 13% EQUIPMENT RENTAL FUND (511) SALARIES AND WAGES 472,509$ 76,188$ 80,770$ 391,739$ 17% OVERTIME 5,000 - - 5,000 0% BENEFITS 166,475 25,887 26,948 139,527 16% 643,984$ 102,075$ 107,718$ 536,266$ 17% TECHNOLOGY RENTAL FUND (512) SALARIES AND WAGES 674,757$ 105,812$ 93,130$ 581,627$ 14% OVERTIME - 243 - - 0% BENEFITS 251,096 38,673 30,568 220,528 12% 925,853$ 144,728$ 123,698$ 802,155$ 13% TOTAL SALARIES AND BENEFITS - ALL FUNDS 45,012,935 7,062,368 6,676,616 38,336,319 15% CITY OF EDMONDS NON GENERAL FUND - SALARIES AND BENEFITS - BY DEPARTMENT IN DETAIL   Item 2.2       Packet pg. 35/74 20 DEBT SUMMARY *This 1st table only reflects the total outstanding principal payments (does not include interest). 2024 Outstanding Fund 001 Fund 111 Fund 112 Fund 126 Fund 421 Fund 422 Fund 423 PFD 2012 LTGO 505,000 505,000 2019 LTGO 2,715,000 2,715,000 2021 LTGO (A)9,015,000 3,410,000 1,270,000 2,640,571 1,260,961 433,468 2021 LTGO (B)2,230,000 2,230,000 2015 Revenue Bond 12,920,000 3,911,810 2,583,269 6,424,921 2020 Revenue Bond 13,875,000 13,875,000 2024 Revenue Bond 19,600,000 11,470,000 2,695,000 5,435,000 PWTFL 06-692-012 32,882 32,882 DOE L1400002 294,776 294,776 Sno Co Loan #03-2016 383,862 383,862 2016 (2007 Refinance) Chase Bank 343,056 59,485 4,597 26,758 3,088 112,729 136,399 64,653,920 3,677,827 9,105 65,763 4,868,002 18,878,331 7,551,663 27,258,229 2,345,000 Total Debt Outstanding 64,653,920 *This 2nd table reflects both the principal and interest portions of the debt payments. 2026 2027 2028 2029 2030 2035 2040 2045 2012 LTGO 131,063 83,663 81,975 80,288 83,600 81,800 - - 2019 LTGO 236,475 233,725 235,725 232,225 233,475 1,169,656 935,875 - 2021 LTGO (A)1,212,750 1,215,250 1,215,500 1,213,500 1,209,250 2,662,050 1,801,000 357,000 2021 LTGO (B)170,115 167,715 170,315 167,815 170,315 841,188 845,055 169,290 2015 Revenue Bond 1,148,369 1,148,119 1,147,269 1,149,925 1,145,875 5,741,250 5,739,200 - 2020 Revenue Bond 304,044 304,044 304,044 304,044 304,044 1,520,219 3,634,019 12,541,456 2024 Revenue Bond 1,395,000 1,389,250 1,392,750 1,390,000 1,391,250 10,885,500 8,815,000 3,406,500 PWTFL 05-691-015 - - - - - - - - PWTFL 06-692-012 33,046 - - - - - - - DOE L1400002 40,570 40,570 40,570 40,570 40,570 121,710 - - Sno Co Loan #03-2016 35,286 34,843 34,400 33,957 33,514 160,927 91,241 2016 (2007 Refinance) Chase Bank 348,785 - - - - - - - Total Principal and Interest Debt Outstanding 85,039,379$ Annual Principal and Interest Debt Payments   Item 2.2       Packet pg. 36/74 21 INTERFUND LOAN SUMMARY Below are details of the Interfund Loans from Funds 421 and 422 to the General Fund in 2025. Month Beginning Balance Loan Repayment Total Balance Interest Rate (%)Monthly Interest 2026-01 3,500,000 (145,833) 3,354,167 4.45%12,440 2026-02 3,354,167 (145,833) 3,208,334 4.45%11,899 2026-03 3,208,334 3,208,334 4.45% 2026-04 3,208,334 3,208,334 4.45% 2026-05 3,208,334 3,208,334 4.45% 2026-06 3,208,334 3,208,334 4.45% 2026-07 3,208,334 3,208,334 4.45% 2026-08 3,208,334 3,208,334 4.45% 2026-09 3,208,334 3,208,334 4.45% 2026-10 3,208,334 3,208,334 4.45% 2026-11 3,208,334 3,208,334 4.45% 2026-12 3,208,334 3,208,334 4.45% (291,666) 24,339 *The "Monthly Interest" is the interest charged on the outstanding balance in each month of 2026. Fund 421 - Principal Repayment Schedule Month Beginning Balance Loan Repayment Total Balance Interest Rate (%)Monthly Interest 2026-01 2,500,000 (104,167) 2,395,833 4.45%8,881 2026-02 2,395,833 (104,167) 2,291,666 4.45%8,495 2026-03 2,291,666 2,291,666 4.45% 2026-04 2,291,666 2,291,666 4.45% 2026-05 2,291,666 2,291,666 4.45% 2026-06 2,291,666 2,291,666 4.45% 2026-07 2,291,666 2,291,666 4.45% 2026-08 2,291,666 2,291,666 4.45% 2026-09 2,291,666 2,291,666 4.45% 2026-10 2,291,666 2,291,666 4.45% 2026-11 2,291,666 2,291,666 4.45% 2026-12 2,291,666 2,291,666 4.45% (208,334) 17,376 *The "Monthly Interest" is the interest charged on the outstanding balance in each month of 2026. Fund 422 - Principal Repayment Schedule Month Beginning Balance 25 Int. payment Total Balance 2026-01 155,771 (12,981) 142,790 2026-02 142,790 (12,981) 129,809 2026-03 129,809 129,809 2026-04 129,809 129,809 2026-05 129,809 129,809 2026-06 129,809 129,809 2026-07 129,809 129,809 2026-08 129,809 129,809 2026-09 129,809 129,809 2026-10 129,809 129,809 2026-11 129,809 129,809 2026-12 129,809 129,809 (25,962) *The $155,771 is the total interest owed to Fund 421 for 2025. Fund 421 - 2025 Interest payment Month Beginning Balance 25 Int. payment Total Balance 2026-01 110,297 (9,191) 101,106 2026-02 101,106 (9,191) 91,915 2026-03 91,915 91,915 2026-04 91,915 91,915 2026-05 91,915 91,915 2026-06 91,915 91,915 2026-07 91,915 91,915 2026-08 91,915 91,915 2026-09 91,915 91,915 2026-10 91,915 91,915 2026-11 91,915 91,915 2026-12 91,915 91,915 (18,382) *The $110,297 is the total interest owed to Fund 422 for 2025. Fund 422 - 2025 Interest payment   Item 2.2       Packet pg. 37/74 22 INVESTMENT PORTFOLIO SUMMARY Years Agency/Investment Purchase to Par Market Maturity Coupon Issuer Type Price Maturity Value Value Date Rate FHLMC Bonds 993,661 0.39 1,115,000 1,102,537 07/22/26 0.830% Farmer Mac Bonds 2,057,309 0.72 2,305,000 2,264,007 11/17/26 1.150% First Financial - Waterfront Center CD 245,000 0.83 245,000 245,000 12/27/26 2.469% US Treasury Note Note 1,003,690 1.00 1,000,000 1,005,479 02/28/27 4.125% First Financial - ECA CD 2,803,516 1.71 2,803,516 2,803,516 11/15/27 2.956% Resolution Funding Corporation Bonds 999,192 4.13 1,220,000 1,048,192 04/15/30 4.482% FFCB Bonds 1,002,270 5.05 1,000,000 1,020,501 03/17/31 4.125% FFCB Bonds 991,753 5.41 1,165,000 1,028,402 07/28/31 1.310% TOTAL SECURITIES 10,096,392 2.41 10,853,516 10,517,634 Washington State Local Gov't Investment Pool 60,427,961 60,427,961 Demand 3.74% 71,281,477$ 70,945,595$ US Bank Account 10,211,433 81,492,910$ As of February 28, 2026 City of Edmonds Investment Portfolio Detail TOTAL PORTFOLIO Farmer Mac, 21% First Financial - CD, 28% FFCB, 20% FHLMC, 10% US Treasury Note, 9% Issuer Diversification Checking, $10.21 , 13% State LGIP, $60.43 , 74% CD's, $3.05 , 4% Note, $1.00 , 1% Bonds, $6.81 , 8% Cash and Investment Balances (in $ Millions)   Item 2.2       Packet pg. 38/74 23 INVESTMENT PORTFOLIO SUMMARY $947,931 $950,684 $1,091,709 $1,683,872 $3,044,847 $2,914,584 $434,964 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2020 2021 2022 2023 2024 2025 YTD 2026 Annual Interest Income 173,472 200,645 226,451 74,622 418,521 458,423 434,964 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2020 2021 2022 2023 2024 2025 YTD 2026 Interest Income (January through February )   Item 2.2       Packet pg. 39/74 1,400,777 899,130 339,867 3,507,663 3,798,358 3,043,686 2,445,681 1,863,125 1,490,616 5,053,833 4,775,903 3,194,741 3,825,645 2,037,314 1,660,613 1,101,349 4,269,145 4,559,841 3,805,169 3,207,163 2,624,608 2,252,099 5,815,316 5,537,385 3,956,224 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Beginning Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budgeted vs Projected Fund Balance Projected Fund Balance Budgeted Fund Balance 24   Item 2.2       Packet pg. 40/74 25 APPENDIX A   Item 2.2       Packet pg. 41/74 26 GENERAL FUND DEPARTMENT EXPENSE SUMMARY City Council Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 46,281$ 46,281$ 36,151$ 36,151$ -21.89% February 93,767 47,486 38,451 74,602 -20.44% March 131,999 38,232 30,418 105,020 -20.44% April 170,890 38,891 30,942 135,962 -20.44% May 217,805 46,914 37,326 173,288 -20.44% June 251,744 33,940 27,003 200,291 -20.44% July 287,585 35,840 28,515 228,806 -20.44% August 323,246 35,661 28,373 257,178 -20.44% September 358,236 34,990 27,839 285,017 -20.44% October 396,060 37,823 30,093 315,110 -20.44% November 432,728 36,668 29,174 344,283 -20.44% December 467,139 34,411 27,378 371,661 -20.44% 467,139$ Office of Mayor Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 37,112$ 37,112$ 34,566$ 34,566$ -6.86% February 76,213 39,101 33,436 68,002 -10.77% March 119,559 43,346 38,676 106,678 -10.77% April 162,726 43,167 38,516 145,193 -10.77% May 218,379 55,654 49,658 194,851 -10.77% June 254,833 36,454 32,526 227,377 -10.77% July 295,364 40,531 36,164 263,542 -10.77% August 334,749 39,385 35,141 298,683 -10.77% September 373,340 38,591 34,433 333,116 -10.77% October 415,197 41,857 37,348 370,464 -10.77% November 451,655 36,457 32,529 402,993 -10.77% December 498,006 46,351 41,358 444,351 -10.77% 498,006$ *The monthly budget trend columns are based on a two year trend. 2026 City of Edmonds, WA Monthly Expenditure Summary-City Council 2026 City of Edmonds, WA Monthly Expenditure Summary-Office of Mayor 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC City Council Current Year Budget Prior Year 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Office of Mayor Current Year Budget Prior Year   Item 2.2       Packet pg. 42/74 27 GENERAL FUND DEPARTMENT EXPENSE SUMMARY Human Resources Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 117,174$ 117,174$ 82,364$ 82,364$ -29.71% February 210,057 92,883 76,930 159,294 -24.17% March 298,803 88,746 67,299 226,593 -24.17% April 385,486 86,683 65,735 292,328 -24.17% May 470,433 84,946 64,418 356,746 -24.17% June 558,476 88,043 66,766 423,512 -24.17% July 659,647 101,171 76,721 500,233 -24.17% August 743,350 83,704 63,475 563,709 -24.17% September 829,180 85,830 65,088 628,797 -24.17% October 918,408 89,228 67,664 696,461 -24.17% November 1,015,642 97,234 73,736 770,197 -24.17% December 1,107,185 91,543 69,420 839,617 -24.17% 1,107,185$ Municipal Court Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 189,077$ 189,077$ 196,947$ 196,947$ 4.16% February 391,212 202,135 196,077 393,024 0.46% March 585,244 194,032 194,931 587,955 0.46% April 778,270 193,025 193,919 781,874 0.46% May 978,908 200,638 201,567 983,441 0.46% June 1,183,551 204,643 205,591 1,189,032 0.46% July 1,393,679 210,128 211,101 1,400,133 0.46% August 1,619,233 225,554 226,599 1,626,732 0.46% September 1,850,650 231,417 232,489 1,859,221 0.46% October 2,088,251 237,601 238,701 2,097,922 0.46% November 2,321,780 233,529 234,610 2,332,532 0.46% December 2,552,457 230,677 231,745 2,564,277 0.46% 2,552,457$ *The monthly budget trend columns are based on a two year trend. 2026 City of Edmonds, WA Monthly Expenditure Summary-Human Resources 2026 City of Edmonds, WA Monthly Expenditure Summary-Municipal Court 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1,100,000 1,200,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Human Resources Current Year Budget Prior Year 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 2,600,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Municipal Court Current Year Budget Prior Year   Item 2.2       Packet pg. 43/74 28 GENERAL FUND DEPARTMENT EXPENSE SUMMARY Administrative Services Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 167,804$ 167,804$ 152,119$ 152,119$ -9.35% February 319,854 152,050 156,285 308,404 -3.58% March 470,708 150,853 145,453 453,856 -3.58% April 614,409 143,701 138,557 592,413 -3.58% May 809,489 195,080 188,096 780,509 -3.58% June 941,299 131,810 127,092 907,601 -3.58% July 1,070,865 129,566 124,927 1,032,528 -3.58% August 1,207,049 136,184 131,309 1,163,837 -3.58% September 1,344,774 137,725 132,795 1,296,632 -3.58% October 1,507,147 162,372 156,559 1,453,191 -3.58% November 1,672,825 165,678 159,747 1,612,938 -3.58% December 1,817,770 144,945 139,756 1,752,695 -3.58% 1,817,770$ *The monthly budget trend columns are based on a two year trend. 2026 City of Edmonds, WA Monthly Expenditure Summary-Administrative Services 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Administrative Services Current Year Budget Prior Year   Item 2.2       Packet pg. 44/74 29 GENERAL FUND DEPARTMENT EXPENSE SUMMARY City Attorney Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 110,529$ 110,529$ 144,832$ 144,832$ 31.04% February 221,058 110,529 75,044 219,876 -0.53% March 331,586 110,529 109,938 329,814 -0.53% April 442,115 110,529 109,938 439,752 -0.53% May 552,644 110,529 109,938 549,690 -0.53% June 663,173 110,529 109,938 659,627 -0.53% July 773,702 110,529 109,938 769,565 -0.53% August 884,230 110,529 109,938 879,503 -0.53% September 994,759 110,529 109,938 989,441 -0.53% October 1,105,288 110,529 109,938 1,099,379 -0.53% November 1,215,817 110,529 109,938 1,209,317 -0.53% December 1,326,345 110,529 109,938 1,319,255 -0.53% 1,326,345$ Police Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 1,448,757$ 1,448,757$ 1,421,817$ 1,421,817$ -1.86% February 2,906,891 1,458,134 1,782,532 3,204,349 10.23% March 4,491,917 1,585,027 1,747,220 4,951,570 10.23% April 5,969,167 1,477,250 1,628,415 6,579,985 10.23% May 7,644,307 1,675,140 1,846,556 8,426,540 10.23% June 9,230,967 1,586,660 1,749,021 10,175,562 10.23% July 10,705,940 1,474,973 1,625,905 11,801,467 10.23% August 12,118,098 1,412,157 1,556,662 13,358,129 10.23% September 13,563,261 1,445,164 1,593,045 14,951,174 10.23% October 15,123,250 1,559,989 1,719,621 16,670,795 10.23% November 16,784,873 1,661,623 1,831,654 18,502,450 10.23% December 18,318,018 1,533,145 1,690,030 20,192,480 10.23% 18,318,018$ *The monthly budget trend columns are based on a two year trend. 2026 City of Edmonds, WA Monthly Expenditure Summary-City Attorney 2026 City of Edmonds, WA Monthly Expenditure Summary-Police 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 1,100,000 1,200,000 1,300,000 1,400,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC City Attorney Current Year Budget Prior Year 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Police Current Year Budget Prior Year   Item 2.2       Packet pg. 45/74 30 GENERAL FUND DEPARTMENT EXPENSE SUMMARY Planning & Development Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 328,337$ 328,337$ 308,580$ 308,580$ -6.02% February 700,643 372,306 302,699 611,279 -12.75% March 1,108,494 407,852 355,832 967,112 -12.75% April 1,507,308 398,814 347,947 1,315,059 -12.75% May 1,867,024 359,716 313,836 1,628,895 -12.75% June 2,237,643 370,618 323,348 1,952,243 -12.75% July 2,566,182 328,539 286,636 2,238,878 -12.75% August 2,870,595 304,413 265,587 2,504,465 -12.75% September 3,318,139 447,544 390,462 2,894,927 -12.75% October 3,632,413 314,274 274,190 3,169,117 -12.75% November 3,976,012 343,599 299,775 3,468,892 -12.75% December 4,324,631 348,619 304,154 3,773,046 -12.75% 4,324,631$ Parks & Recreation Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 425,181$ 425,181$ 409,190$ 409,190$ -3.76% February 853,429 428,249 392,512 801,702 -6.06% March 1,341,593 488,164 458,576 1,260,278 -6.06% April 1,752,303 410,710 385,816 1,646,094 -6.06% May 2,184,681 432,378 406,171 2,052,265 -6.06% June 2,614,635 429,954 403,894 2,456,159 -6.06% July 3,076,586 461,951 433,952 2,890,111 -6.06% August 3,557,215 480,629 451,498 3,341,609 -6.06% September 3,998,615 441,400 414,647 3,756,255 -6.06% October 4,413,096 414,481 389,359 4,145,614 -6.06% November 4,822,266 409,170 384,370 4,529,984 -6.06% December 5,281,125 458,859 431,047 4,961,031 -6.06% 5,281,125$ *The monthly budget trend columns are based on a two year trend. 2026 City of Edmonds, WA Monthly Expenditure Summary-Planning & Development 2026 City of Edmonds, WA Monthly Expenditure Summary-Parks & Recreation 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Planning & Development Current Year Budget Prior Year 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 5,500,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Parks & Recreation Current Year Budget Prior Year   Item 2.2       Packet pg. 46/74 31 GENERAL FUND DEPARTMENT EXPENSE SUMMARY Facilities Maintenance Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 242,473$ 242,473$ 211,604$ 211,604$ -12.73% February 490,971 248,498 170,000 381,604 -22.28% March 733,425 242,455 188,447 570,051 -22.28% April 987,110 253,684 197,174 767,225 -22.28% May 1,185,395 198,285 154,116 921,341 -22.28% June 1,535,749 350,354 272,311 1,193,652 -22.28% July 1,738,024 202,275 157,217 1,350,869 -22.28% August 1,765,212 27,188 21,132 1,372,001 -22.28% September 1,985,460 220,248 171,186 1,543,187 -22.28% October 2,191,154 205,694 159,875 1,703,062 -22.28% November 2,386,521 195,367 151,848 1,854,910 -22.28% December 2,606,747 220,226 171,169 2,026,079 -22.28% 2,606,747$ Engineering Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 359,555$ 359,555$ 303,830$ 303,830$ -15.50% February 713,632 354,077 247,021 550,851 -22.81% March 1,045,025 331,392 255,801 806,652 -22.81% April 1,388,340 343,315 265,004 1,071,655 -22.81% May 1,725,547 337,207 260,289 1,331,944 -22.81% June 2,111,199 385,652 297,684 1,629,628 -22.81% July 2,432,015 320,816 247,637 1,877,265 -22.81% August 2,785,781 353,766 273,071 2,150,336 -22.81% September 3,136,985 351,204 271,093 2,421,429 -22.81% October 3,472,951 335,966 259,331 2,680,760 -22.81% November 3,804,125 331,175 255,633 2,936,393 -22.81% December 4,151,118 346,993 267,843 3,204,235 -22.81% 4,151,118$ *The monthly budget trend columns are based on a two year trend. 2026 City of Edmonds, WA Monthly Expenditure Summary-Facilities Maintenance 2026 City of Edmonds, WA Monthly Expenditure Summary-Engineering 0 300,000 600,000 900,000 1,200,000 1,500,000 1,800,000 2,100,000 2,400,000 2,700,000 3,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Facilities Maintenance Current Year Budget Prior Year 0 400,000 800,000 1,200,000 1,600,000 2,000,000 2,400,000 2,800,000 3,200,000 3,600,000 4,000,000 4,400,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Engineering Current Year Budget Prior Year   Item 2.2       Packet pg. 47/74 32 GENERAL FUND DEPARTMENT EXPENSE SUMMARY Non-Departmental Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 982,771$ 982,771$ 1,686,468$ 1,686,468$ 71.60% February 1,318,318 335,547 478,150 2,164,618 64.20% March 1,767,509 449,191 737,551 2,902,169 64.20% April 2,131,057 363,549 596,931 3,499,099 64.20% May 2,453,970 322,912 530,208 4,029,307 64.20% June 2,981,104 527,134 865,530 4,894,837 64.20% July 3,297,961 316,857 520,265 5,415,102 64.20% August 3,875,730 577,769 948,670 6,363,772 64.20% September 4,509,750 634,020 1,041,032 7,404,804 64.20% October 5,207,370 697,620 1,145,461 8,550,265 64.20% November 5,872,477 665,107 1,092,075 9,642,340 64.20% December 6,768,912 896,435 1,471,906 11,114,246 64.20% 6,768,912$ City of Edmonds, WA Monthly Expenditure Summary-Non-Departmental 2026 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Non-Departmental Current Year Budget Prior Year *The monthly budget forecast columns are based on a five-year average.   Item 2.2       Packet pg. 48/74 33 FUND SUMMARIES Fund 016 - Building Maintenance Fund Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 154,167$ 154,167$ -$ -$ 0.00% February 308,333 154,167 4,482 4,482 -98.55% March 462,500 154,167 2,241 6,722 -98.55% April 616,666 154,167 2,241 8,963 -98.55% May 770,833 154,167 2,241 11,204 -98.55% June 925,000 154,167 2,241 13,445 -98.55% July 1,079,166 154,167 2,241 15,685 -98.55% August 1,233,333 154,167 2,241 17,926 -98.55% September 1,387,499 154,167 2,241 20,167 -98.55% October 1,541,666 154,167 2,241 22,408 -98.55% November 1,695,833 154,167 2,241 24,648 -98.55% December 1,849,999 154,167 2,241 26,889 -98.55% 1,849,999$ 2026 City of Edmonds, WA Monthly Expenditure Summary-Fund 016 - Building Maintenance Fund 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Fund 016 -Building Maintenance Fund Current Year Budget Prior Year *The monthly budget forecast columns are based on a five-year average.   Item 2.2       Packet pg. 49/74 34 FUND SUMMARIES Real Estate Excise Tax 1 & 2 Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 180,699$ 180,699$ 102,307$ 102,307$ -43.38% February 369,890 189,191 170,681 272,988 -26.20% March 620,117 250,227 184,674 457,662 -26.20% April 968,775 348,659 257,319 714,981 -26.20% May 1,339,598 370,823 273,677 988,657 -26.20% June 2,004,973 665,375 491,063 1,479,721 -26.20% July 2,359,988 355,015 262,010 1,741,731 -26.20% August 2,738,388 378,400 279,269 2,020,999 -26.20% September 3,038,181 299,793 221,255 2,242,254 -26.20% October 3,439,573 401,392 296,237 2,538,492 -26.20% November 3,713,484 273,912 202,154 2,740,645 -26.20% December 4,000,000 286,516 211,456 2,952,101 -26.20% 4,000,000$ Fund 512 - Technology Rental Fund Expenses Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 839,016$ 839,016$ 695,433$ 695,433$ -17.11% February 983,800 144,784 108,274 803,707 -18.31% March 1,165,508 181,708 148,445 952,152 -18.31% April 1,316,718 151,209 123,529 1,075,682 -18.31% May 1,506,526 189,808 155,062 1,230,744 -18.31% June 1,655,173 148,647 121,436 1,352,180 -18.31% July 1,872,333 217,160 177,407 1,529,587 -18.31% August 2,040,789 168,456 137,619 1,667,206 -18.31% September 2,227,781 186,992 152,761 1,819,967 -18.31% October 2,409,853 182,073 148,743 1,968,710 -18.31% November 2,572,514 162,661 132,884 2,101,594 -18.31% December 2,782,528 210,014 171,569 2,273,163 -18.31% 2,782,528$ *The monthly budget trend columns are based on a two year trend. City of Edmonds, WA Monthly Revenue Summary-Real Estate Excise Tax 1 & 2 2026 City of Edmonds, WA Monthly Expenditure Summary-Fund 512 - Technology Rental Fund 2026 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 2,600,000 2,800,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Fund 512 -Technology Rental Fund Expenses Current Year Budget Prior Year 0 400,000 800,000 1,200,000 1,600,000 2,000,000 2,400,000 2,800,000 3,200,000 3,600,000 4,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Real Estate Excise Tax 1 & 2 Current Year Budget Prior Year   Item 2.2       Packet pg. 50/74 35 FUND 421 – WATER UTILITY FUND SUMMARY Fund 421 - Water Utility Fund Revenues Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 958,926$ 958,926$ 1,419,376$ 1,419,376$ 48.02% February 1,588,753 629,828 1,133,661 2,553,038 60.69% March 2,517,448 928,694 1,492,360 4,045,398 60.69% April 3,193,768 676,320 1,086,809 5,132,207 60.69% May 4,118,581 924,813 1,486,122 6,618,329 60.69% June 4,874,074 755,494 1,214,036 7,832,365 60.69% July 5,979,594 1,105,520 1,776,508 9,608,873 60.69% August 10,988,128 5,008,534 8,048,434 17,657,308 60.69% September 12,357,871 1,369,743 2,201,100 19,858,408 60.69% October 13,273,924 916,053 1,472,046 21,330,454 60.69% November 14,275,600 1,001,676 1,609,637 22,940,092 60.69% December 15,030,903 755,303 1,213,730 24,153,821 60.69% 15,030,903$ Fund 421 - Water Utility Fund Expenses Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 2,438,923$ 2,438,923$ 933,217$ 933,217$ -61.74% February 3,071,564 632,641 651,481 1,584,698 -48.41% March 3,765,937 694,372 358,244 1,942,942 -48.41% April 4,498,284 732,347 377,836 2,320,779 -48.41% May 5,102,424 604,140 311,691 2,632,470 -48.41% June 6,386,351 1,283,927 662,410 3,294,881 -48.41% July 7,647,492 1,261,141 650,655 3,945,535 -48.41% August 12,382,855 4,735,363 2,443,094 6,388,629 -48.41% September 14,100,725 1,717,870 886,293 7,274,922 -48.41% October 15,252,589 1,151,864 594,276 7,869,198 -48.41% November 16,168,803 916,214 472,698 8,341,896 -48.41% December 18,667,324 2,498,521 1,289,051 9,630,947 -48.41% 18,667,324$ *The monthly budget trend columns are based on a two year trend. 2026 City of Edmonds, WA Monthly Revenue Summary-Fund 421 - Water Utility Fund 2026 City of Edmonds, WA Monthly Expenditure Summary-Fund 421 - Water Utility Fund 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Fund 421 -Water Utility Fund Revenues Current Year Budget Prior Year 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Fund 421 -Water Utility Fund Expenses Current Year Budget Prior Year   Item 2.2       Packet pg. 51/74 36 FUND 422 – STORM UTILITY FUND SUMMARY Fund 422 - Storm Utility Fund Revenues Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 701,478$ 701,478$ 823,415$ 823,415$ 17.38% February 2,281,792 1,580,315 1,622,271 2,445,685 7.18% March 2,982,974 701,181 751,545 3,197,230 7.18% April 3,622,071 639,097 685,001 3,882,231 7.18% May 4,409,302 787,230 843,774 4,726,005 7.18% June 5,042,798 633,497 678,999 5,405,004 7.18% July 5,823,677 780,878 836,966 6,241,970 7.18% August 9,008,589 3,184,913 3,413,673 9,655,643 7.18% September 9,720,915 712,325 763,489 10,419,132 7.18% October 10,695,619 974,705 1,044,714 11,463,846 7.18% November 11,398,319 702,699 753,172 12,217,018 7.18% December 12,074,888 676,569 725,165 12,942,182 7.18% 12,074,888$ Fund 422 - Storm Utility Fund Expenses Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 602,625$ 602,625$ 873,709$ 873,709$ 44.98% February 1,960,241 1,357,616 535,481 1,409,190 -28.11% March 2,562,611 602,370 433,036 1,842,226 -28.11% April 3,111,646 549,035 394,694 2,236,920 -28.11% May 3,787,940 676,293 486,178 2,723,098 -28.11% June 4,332,164 544,224 391,235 3,114,334 -28.11% July 5,003,000 670,836 482,255 3,596,589 -28.11% August 7,739,092 2,736,092 1,966,940 5,563,528 -28.11% September 8,351,036 611,944 439,918 6,003,447 -28.11% October 9,188,385 837,349 601,959 6,605,405 -28.11% November 9,792,059 603,674 433,973 7,039,378 -28.11% December 10,373,286 581,227 417,836 7,457,214 -28.11% 10,373,286$ *The monthly budget trend columns are based on a two year trend. City of Edmonds, WA Monthly Revenue Summary-Fund 422 - Storm Utility Fund 2026 City of Edmonds, WA Monthly Expenditure Summary-Fund 422 - Storm Utility Fund 2026 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000 13,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Fund 422 -Storm Utility Fund Revenues Current Year Budget Prior Year 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Fund 422 -Storm Utility Fund Expenses Current Year Budget Prior Year   Item 2.2       Packet pg. 52/74 37 FUND 423 – SEWER UTILITY FUND SUMMARY Fund 423 - Sewer Utility Fund Revenues Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 1,433,083$ 1,433,083$ 1,606,318$ 1,606,318$ 12.09% February 2,737,085 1,304,002 1,327,273 2,933,591 7.18% March 4,238,410 1,501,325 1,609,111 4,542,702 7.18% April 5,924,788 1,686,378 1,807,450 6,350,152 7.18% May 8,041,804 2,117,016 2,269,005 8,619,157 7.18% June 9,165,000 1,123,196 1,203,835 9,822,992 7.18% July 10,743,639 1,578,639 1,691,975 11,514,968 7.18% August 14,811,596 4,067,957 4,360,012 15,874,980 7.18% September 16,280,297 1,468,701 1,574,145 17,449,125 7.18% October 17,524,918 1,244,621 1,333,977 18,783,102 7.18% November 19,202,434 1,677,516 1,797,952 20,581,053 7.18% December 20,499,448 1,297,014 1,390,132 21,971,185 7.18% 20,499,448$ Fund 423 - Sewer Utility Fund Expenses Cumulative Monthly Monthly YTD Variance Budget Trend Budget Trend Actuals Actuals % January 1,435,442$ 1,435,442$ 2,219,216$ 2,219,216$ 54.60% February 2,409,722 974,280 1,086,260 3,305,476 37.17% March 4,001,110 1,591,388 2,182,947 5,488,423 37.17% April 5,403,943 1,402,834 1,924,302 7,412,725 37.17% May 6,545,160 1,141,217 1,565,436 8,978,161 37.17% June 8,094,094 1,548,934 2,124,711 11,102,872 37.17% July 9,267,050 1,172,956 1,608,973 12,711,846 37.17% August 13,636,809 4,369,759 5,994,108 18,705,954 37.17% September 15,001,984 1,365,175 1,872,645 20,578,599 37.17% October 16,219,443 1,217,459 1,670,019 22,248,618 37.17% November 17,498,841 1,279,398 1,754,983 24,003,601 37.17% December 20,051,312 2,552,471 3,501,289 27,504,889 37.17% 20,051,312$ *The monthly budget trend columns are based on a two year trend. City of Edmonds, WA Monthly Revenue Summary-Fund 423 - Sewer Utility Fund 2026 City of Edmonds, WA Monthly Expenditure Summary-Fund 423 - Sewer Utility Fund 2026 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 22,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Fund 423 -Sewer Utility Fund Revenues Current Year Budget Prior Year 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 22,000,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Fund 423 -Sewer Utility Fund Expenses Current Year Budget Prior Year   Item 2.2       Packet pg. 53/74 City Council Agenda Item 2.3 April 21, 2026 - Finance Committee TITLE:Fiscal Sustainability Task Force (First Reading) DEPARTMENT:City Council Office PRESENTER:Council President Dotsch, Mayor Rosen, Acting City Administrator Tatum NEEDED FROM COUNCIL:Informational RECOMMENDATION:Review and discuss the approach of Council and Administration’s efforts to plan for long-term fiscal sustainability practices using the GFOA Financial Foundations combined with the Baker Tilly analysis and guidance. BUDGET: Total Dollar Amount:149,500 ☐ Approved in Budget Fund(s):General Fund ☒ Budget Reallocation Required ☐ No Budget Impact PROBLEM/ISSUE STATEMENT: The administration intends to enter a professional services contract with Baker Tilly to develop a long-range financial forecast, identify budget strategies, and facilitate a community-based Fiscal Sustainability Task Force to advise the City on a long-term financial plan. CONTEXT, ANALYSIS, & ALTERNATIVES: Over the past 24 months, the administration and Council have engaged in substantive discussion about Edmonds’ long-term fiscal outlook. That process drew on the Mayor’s 2024 Blue Ribbon Panel recommendations, public testimony at 2025 town halls and Council meetings, local media commentary, and resident correspondence. A consistent message emerged: residents want to preserve city service levels and are willing to contribute their expertise toward shared goals of fiscal responsibility and sustainability. At a February 6th Council retreat, the Mayor, Council, and Directors collaborated to explore priorities for the coming year and beyond, which included community priorities. City Council used that work as a basis to develop their Council Priorities moving forward. Among those priorities: financial stability and economic development, community engagement and transparency. Adherence to Government Finance Officers Association (GFOA) budget planning principles were also highlighted as a best practice. In 2025, the City of Mountlake Terrace engaged Baker Tilly to address structural fiscal challenges and develop a community-inclusive sustainability plan. February 8, 2026 article in My Edmonds News covering that work — “Government and you: How Mountlake Terrace involved community in addressing City budget deficit” — generated significant   Item 2.3       Packet pg. 54/74 interest among Edmonds residents and Council members. That interest led to a March 5th special Council meeting, where Baker Tilly was invited to present their community engagement process. Council response was positive, reflecting interest in applying a similar approach in Edmonds. Baker Tilly’s scope proposes a three-phase engagement. Phase 1 develops a 10-year long- range financial forecast covering the General, Capital Improvement, and Enterprise funds, including analysis of unfunded infrastructure, fleet, and technology needs. Phase 2 identifies and evaluates budget strategies across four dimensions — expenditure controls, service delivery alternatives, revenue enhancements, and service reductions — benchmarked against up to six peer cities. Phase 3 facilitates up to six meetings of a community-based Fiscal Sustainability Task Force, bringing together residents, Council representatives, and City staff to develop consensus recommendations for presentation to the full Council. The not-to-exceed contract value is $149,500, with an anticipated project duration of 9–12 months. This engagement represents a collaborative path toward a sustainable fiscal trajectory that is grounded in rigorous analysis, community inclusion, and a clear framework for near- and long-term decision-making. RECOMMENDATION: BUDGET IMPACTS: 149,500 ITEM HISTORY: TBD ADDITIONAL INFORMATION: ATTACHMENTS: Baker Tilly Proposal for Long-Range Financial Sustainability Task Force GFOA Financial Foundations   Item 2.3       Packet pg. 55/74 1 April 13, 2026 City of Edmonds Proposal to provide consulting services for the City’s long-range financial sustainability task force   Item 2.3       Packet pg. 56/74 Contents The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly US, LLP and Baker Tilly Advisory Group, LP and its subsidiary entities provide professional services through an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. Baker Tilly US, LLP is a licensed independent CPA firm that provides attest services to clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and business advisory services to their clients. Baker Tilly Advisory Group, LP and its subsidiary entities are not licensed CPA firms. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are independent members of Baker Tilly International. Baker Tilly International Limited is an English company. Baker Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each describes itself as such. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP are not Baker Tilly International’s agent and do not have the authority to bind Baker Tilly International or act on Baker Tilly International’s behalf. None of Baker Tilly International, Baker Tilly Advisory Group, LP, Baker Tilly US, LLP nor any of the other member firms of Baker Tilly International has any liability for each other’s acts or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited. APPROACH ...................................................................................................................... 1 ORGANIZATIONAL EXPERIENCE .................................................................................. 6 KEY PERSONNEL............................................................................................................ 8 FEE ................................................................................................................................. 10 SCHEDULE..................................................................................................................... 11 APPENDIX A: RESUMES .................................... ERROR! BOOKMARK NOT DEFINED. APPENDIX B: FISCAL SUSTAINABILITY AND COMMUNITY ENGAGEMENT CLIENTS ........................................................................................................................................ 12 I was not convinced we would be able to pull community members together to develop a fiscal sustainability plan. I was dead wrong and mesmerized by your meetings and your outcomes. Washington state city councilmember | Baker Tilly client “   Item 2.3       Packet pg. 57/74 0 April 3, 2026 Mike Rosen, Mayor City of Edmonds 121 5th Ave N, Edmonds, WA 98020 Delivered electronically Dear Mayor Rosen: The City of Edmonds is taking steps to ensure it can provide the services community members value within realistic and sustainable budgets and is interested in forming a financial sustainability task force composed of community members to advise the City on a long-term financial plan. The task force would take on the following responsibilities: • Gather community input to understand values, challenges and opportunities from residents' perspectives. • Analyze data through review of past planning documents, community survey results, financial trends, and budget projections. • Learn about revenue and services by studying revenue sources, limitations, service levels and future impacts. • Develop recommendations on service levels, cost reductions, new revenue options and key messages. • Engage with community by testing recommendations in forums and finalizing suggestions for the City Council. Baker Tilly brings a combination of long-range financial modeling, policy analysis, and community-based facilitation that is critical to the success of this effort. Below are the highlights of everything we’ll bring to the City. WE UNDERSTAND THE CHALLENGES WASHINGTON CITIES ARE FACING We have been assisting the City of Mountlake Terrace to develop an understanding of its current financial situation and future scenarios through interim Chief Financial Officer services and recently helped them develop a Fiscal Sustainability Plan through the use of a Task Force process similar to the one proposed. We’ve also helped many other cities, including the Washington cities of Kenmore, Sammamish and Newcastle, with similar services. OUR TEAM MEMBERS SPECIALIZE IN A RANGE OF RELEVANT SERVICES Our public-sector advisory team includes specialists in municipal finance, facilitation and strategic communication who will bring multiple perspectives to ensure the best possible outcome for the City. Baker Tilly Advisory Group, LP 1000 Second Ave Suite 3400 Seattle, WA 98104-1022 +1 (206) 621 1900 bakertilly.com   Item 2.3       Packet pg. 58/74 1 APPROACH The approach and ideas shared in our proposal show how important your needs continue to be to us. We are committed to work with City officials to forge new paths for success. If you have questions or need additional information, please let us know how we can help support your decision-making process. Sincerely, BAKER TILLY ADVISORY GROUP, LP Brock Bowsher, Principal Matt Bubness, Director +1 (317) 465 1665 | brock.bowsher@bakertilly.com +1 (312) 228 7336 | matt.bubness@bakertilly.com   Item 2.3       Packet pg. 59/74 1 Approach Understanding the engagement The City of Edmonds (the “City”) is a non-charter code city under Title 35A RCW of state law and operates with a Mayor-Council governance structure. It serves nearly 43,000 residents and a diverse business community with police protection, street maintenance, parks and recreation, and building/planning development services. The City, like many in Washington state, is experiencing serious fiscal challenges due to its constrained ability to raise revenues to keep pace with rising costs. To address its fiscal challenges by more sustainable means, the City is interested in developing a long term financial forecast, forming a task force to advise on budget strategies and creating a fiscal sustainability plan. This task force will require guidance, facilitation, and an independent analysis of the City’s fiscal outlook to provide informed recommendations to City leaders. With our extensive experience in strategic planning and fiscal sustainability, we are prepared to support the City in achieving its goals. Proposed plan of work Combining our breadth of experience in municipal financial and budget management, fiscal sustainability planning, and facilitation and strategic communication, we will support the City in accomplishing the goals described below. We have developed a three-phased approach to addressing the City’s fiscal sustainability needs, and this framework is amenable to refinement based on your input. Phase 1 – Develop a long-range financial forecast Activity 1 – Start project Baker Tilly will begin this project with a launch meeting with you and others designated as the City’s project leadership team. During this meeting, we will refine the schedule, discuss project objectives, and review the tasks to be completed. After this initial launch meeting, we will submit a document and data request to the City’s project team. Activity 2 – Gather information Next, we will conduct a structured assessment of the City’s current fiscal status. Key tasks include: • Gathering data to be used throughout the analytical phase of the project. This will include budgets, budgetary recommendations, long-range capital improvement plans, enterprise fund rate studies, budget vs. actual revenue and expenditure data, financial reports, reserve policies, analytical work, interagency agreements, labor agreements and other pertinent information. • Reviewing multi-year budget information, including revenue sources and amounts, expenditure allocations, reserves and other funds, budgetary reductions and cost shifts that have been made to date. • Deepening our understanding of the local community served, the City’s labor environment, and other relevant factors that have changed over the past five years. • Reviewing previous budgets and any short- to long-range financial planning that has been performed in recent years to understand the key drivers of financial decisions made by City staff. • Reviewing budgeting approaches and testing budget assumptions against actual experience and reviewing and factoring in the City’s inventory of unmet or deferred infrastructure and maintenance needs to the extent the information is available. • Speaking with City leaders and budget/finance staff to learn about key economic/demographic drivers and assumptions in the development of the fiscal model. Activity 3 – Conduct high-level analysis of unfunded/underfunded needs In developing a long-range forecast, it is essential for decision-makers to understand the impact of unmet needs that pose future financial risks to the City’s sustainability. These include facility infrastructure, fleet replacement, information technology reinvestment, and other core service needs. For some agencies,   Item 2.3       Packet pg. 60/74 2 APPROACH these may also include unfunded pension or post-employment benefits (OPEB) obligations. This evaluation should be part of the long-range financial forecast process. We will analyze these unfunded/underfunded needs by reviewing documents such as fee schedules, capital improvement plans, facilities master plans, maintenance project plans, equipment inventories, and actuarial analyses of pension and OPEB obligations. Interviews with City finance, engineering, and facilities staff, as well as analyses from other consultants, will further inform our review. Using this information, we will perform a high-level fiscal gap analysis to estimate funding requirements for capital projects and post-retirement obligations, comparing them with available and projected resources. These needs will be assessed to determine if they should be included in the City’s General Fund forecast when other funding sources are unavailable. Including these needs as estimates will provide officials with a clearer view of future costs, enabling informed decisions about maintenance standards, service delivery, and fiscal gaps. Activity 4 – Develop baseline fiscal trend model Next, we will analyze the data we have gathered through the previous activities and prepare a long-range fiscal model. While the fiscal model is one tool, it will include separate forecasts for the General, Capital Improvement and Enterprise funds within the scope of the project. Key tasks include: • Identifying historical trends and updating the forecast to provide a comprehensive perspective of the factors affecting the financial capacity of the City. This analysis will provide a sound basis for understanding the City’s financial ability to fund services during the next 10 years. • Developing the multi-year fiscal model based on this information. The model will tie back to accounting and payroll records and provide a fiscal model that will allow City staff to update it in the future. • Developing a set of assumptions and future trends based on local, regional and statewide socio-economic trends. • Developing a draft forecast and then reviewing it via videoconference with project team members to refine and validate our new assumptions. We are careful to tie back all model data to the City ’s source documents and to fully explain the assumptions underlying the model. • Making refinements and revising the final model suitable for presentation. We will conduct periodic check-ins with staff as the fiscal model is developed. Activity 5 – Present model and provide support During this activity, we will develop a draft slide deck presentation and finalize it based on your feedback. We will present the fiscal model to the City ’s leadership team as soon as the model is finalized. The slide deck will help decision-makers understand the current fiscal condition of the agency and what the long- range forecast indicates in terms of the ability to fund existing services over the next five to ten years. Our presentations of financial data are created so that those that are not municipal finance experts can easily grasp the concepts and that tells the story regarding the ability to service the community based on existing and projected financial resources. We are committed to ensuring City staff have a tool to use in preparing forecasts in future years. We will continue to provide on-call assistance during the next year to address any questions staff might have as they use the model. This support does not include updating the fiscal model for future years but provides support and guidance to the City as it implements the tool in subsequent forecasts.   Item 2.3       Packet pg. 61/74 3 APPROACH Phase 2 – Evaluate and identify budget strategies for consideration Activity 6 – Analyze data and prepare initial matrix of strategies Leveraging the work conducted in Phase 1, we will analyze the data gathered, including the historical trends and the fiscal gap, if any, identified in the long-range forecast to gain a comprehensive perspective of the factors affecting the financial capacity of the City. It will serve as a starting point for understanding the revenue/expenditure gap that will need to be solved in the fiscal sustainability plan. We will identify budget optimization opportunities for the fiscal sustainability plan. As part of this analysis, we will: • Assess the strategies employed to date to ascertain which have been most effective in reducing costs and increasing revenues • Identify budget-balancing approaches used by other municipalities in Washington state and in other agencies throughout the United States that may be appropriate for the City Since we work with many cities, we have a robust knowledge base of alternative approaches that are being applied successfully in the current economic environment. Evaluate and identify budget strategies for consideration We will review the budget strategies that have been identified to date by the City, including supporting documentation or analyses that informed the City’s development of those strategies. We will consider the fiscal impact, implementation timelines, short- vs. long-term nature of identified strategies, and the City’s initial thoughts regarding implementation feasibility and requirements. Next, we will leverage the work conducted in Phase 1 and our experience with other agencies in Washington state to identify other budget strategies that were either not considered or passed over. We will consider fiscal impact, implementation timeline and feasibility. While our focus is primarily on the General Fund, we will consider budget strategies that may affect the total cost of service delivery to the community, including enterprise fund operations and other tax-based funding sources upon which property owners/ratepayers evaluate the total price of government services provided by the City. We will place all identified strategies in four dimensions which, taken together, comprise a range of alternatives for closing the deficit gap and creating a stabilized and sustainable budget. • Expenditure controls and cost shifts. This refers to strategies that cap or reduce expenditures either through operating efficiencies or by shifting costs to other funds or service providers to reduce the cost of services borne by the General Fund. • Service delivery alternatives. This includes looking at alternative, lower-cost service delivery approaches such as shared services, outsourcing or insourcing with other agencies, public/private partnerships, and contracting for services with private sector service providers. • Revenue enhancements. This involves identifying new revenue sources or enhancing/ increasing existing revenue sources, based on best practices, and comparisons with neighboring communities. • Service delivery reductions. This involves reductions based on prioritizing core services and reducing non-core services. Since we assume that preserving services is a priority, this is typically a fallback strategy when other approaches to restoring the balance between revenues and expenditures are not possible. Gather comparative data from other agencies While we evaluate and identify budget strategies, we will gather comparative data from up to six other agencies to which the City compares itself. The data we gather will include such things as population and geographic area served, services funded by their respective General Funds, tax rates (e.g., property,   Item 2.3       Packet pg. 62/74 4 APPROACH sales, utility, gambling, admission), tax revenues by type and in total on a per capita basis, staffing levels funded by the General Fund, and expenditures per capita. We will rely on publicly available data from the identified agencies. To the extent that critical data are not available from agency websites, we will seek assistance from City staff to obtain such data from those agencies to provide a full set of data upon which to analyze and evaluate. We will summarize the results of this comparative data for future City Council and task force meetings, but at this phase we will use this data to inform the development of budget strategies for consideration. Prepare matrix Following our analysis of the data, we will develop a preliminary matrix of short- and long-term strategies to address the City’s structural deficit. The initial matrix will be organized into the categories established above. It will include estimated timeframes (short- vs. long-term) and expected order of magnitude financial results. We will meet with the project leadership team to present our preliminary matrix of strategies to obtain feedback. During this meeting, we will receive feedback and answer questions that will assist in identifying strategies to be analyzed in greater detail. Activity 7 – Prepare draft budget strategies and analysis slide deck Budget strategies assessment Incorporating the feedback received, we will perform a high-level analysis of strategies offering the greatest potential for reducing the fiscal challenges documented in the previous activities in the form of a memorandum that will serve as the basis for a draft fiscal sustainability plan. We will consider the following factors and information for each strategy: • Estimated fiscal impact • Potential impacts on total cost of government services and equitable service delivery • Potential for success using an evaluation matrix based on fiscal impact and implementation factors • Impact on achieving the priorities established through the priority-based budget process • Implementation schedule (short- vs. long-term) • Any one-time costs for implementation. We will take care to qualitatively weigh the importance of various implementation barriers using the evaluation matrix. Such barriers could range from relatively simple changes in policies or procedures to more complex contract, organizational or policy changes. The differences in barriers are likely to dictate both. Scenario packages The strategies will then be grouped into sample scenario packages for consideration, ranging from revenue-centric to expenditure-focused packages and various combinations in between. This will assist City leaders and task force members in considering and deciding on the right blend of revenue and expenditure options for the City to be exercised as part of a fiscal sustainability plan. City staff meeting Baker Tilly will present the draft analysis of budget strategies and scenario packages to City staff at a meeting to be determined by the project team. The purpose would be to provide the City with the opportunity to understand the mix of strategies being presented and answer questions. Many of our clients prefer this meeting to take place after the agenda has been published but before the task force and/or Council workshop. The timing of this meeting will be at your discretion.   Item 2.3       Packet pg. 63/74 5 APPROACH Phase 3 – Facilitate the Fiscal Sustainability Task Force Activity 8 – Support creation of the Fiscal Sustainability Task Force We envision the City taking a lead role in the initial creation of the task force, including recruiting, selecting, and communicating with task force members. Baker Tilly can assist with these efforts by providing consultation throughout the process and by drafting a curriculum and timeline for the task force’s series of meetings, to be approved by the City. Activity 9 – Facilitate Fiscal Sustainability Task Force meetings Baker Tilly will serve as independent facilitator and subject-matter specialist in these meetings to provide independent perspective and insights to the task force regarding the City’s projected fiscal gap. To the extent that other speakers are necessary to support the curriculum that is developed in the previous activity, we will leverage existing City relationships and our connections in Washington state to identify others to inform task force’s meetings and deliberations. This proposal accounts for facilitating up to six meetings with the task force to include the following topics (proposed number of meetings noted in parentheses): • Introduction and launch (1). Welcome and introductions; review the task force charter; provide historical background and context; brief overview of City services and how they are funded. • Edmonds financial context (1). Review municipal finance and budgeting in the City and for Washington municipalities; define the fiscal problem and review the financial forecast; review public engagement plan. • Review budget strategies (2). Review budget strategies and the included comparative research; review budget strategies identified; discuss budget scenario packages. • Formulate task force recommendations (2). Review public engagement results; obtain task force feedback; facilitate discussions towards building a consensus recommendation from the task force on the approach(es) to address the fiscal gap. We will prepare slide decks and/or supplementary materials in support of the presentations provided during these meetings. We assume that all these meetings will require our participation in person. Should the task force decide it needs to conduct more meetings to accomplish its work, we will participate in those meetings as necessary until the task force formulates its recommendations, as we recognize how critical this project is to the City, and we are committed to supporting the City and the task force as it finalizes its work in this phase of the project. Additional meetings beyond the six noted above may require an amendment to the agreement’s scope and not-to-exceed amount in order to account for the extra staff hours and travel expenses required to facilitate the additional meetings. Activity 10 – Present the output of the Fiscal Sustainability Task Force Once the task force finalizes its recommendations, we will prepare a slide deck presentation that summarizes the options identified and the consensus recommendation from the task force and present them to the City Council in person during a Council meeting. The task force would have an opportunity during the meeting to reflect on its recommendations. If the task force is reporting directly to the Mayor rather than the City Council, the Mayor would take the recommendations from the task force to inform the Mayor’s recommendation to the Council and present the recommendations to them. We suggest that the meeting be in the form of a study session workshop where Council, task force, and City leadership team members can engage with one another thoroughly as part of the presentation. The goal of the workshop is for Councilmembers to understand the various strategies identified and their impact on resolving the fiscal gap, and to provide direction on what strategies to include in the City’s fiscal sustainability plan. Upon conclusion of the workshop, the combination of budget strategies selected to be pursued and/or explored further by the Council will form the basis for the draft fiscal sustainability plan.   Item 2.3       Packet pg. 64/74 6 ORGANIZATIONAL EXPERIENCE Organizational experience Delivering specialized expertise to our public sector clients State and local government is a complex, unique environment shaped by fiscal, regulatory and operational considerations not found in other industries/sectors. Recognizing this complexity and eager to serve as a true valued advisor to the public sector, Baker Tilly formalized its dedicated public sector specialization more than 50 years ago. Today, more than 350 Baker Tilly professionals — including nearly 30 principals — focus directly on serving governments and provide hundreds of thousands of client service hours annually to organizations like the City of Edmonds. Similar engagements with other government entities Over the past 10 years, we have served over 60 clients across the United States in preparing long-range financial forecasts, over 20 of whom we have supported in developing fiscal stability plans. We know you are familiar with Mountlake Terrace and our recent work there. Below, we have provided additional references for clients with whom we have completed fiscal sustainability plan projects within the past two years and encourage you to connect with them to learn more about the value of their relationship with Baker Tilly. We have also included a list of former clients in the Appendix. CITY OF SAMMAMISH, WASHINGTON Name Scott MacColl Title City Manager Phone 425-295-0500 Email smaccoll@sammamish.us Dates 2022-2023 Engagement partner Steve Toler Description Baker Tilly was engaged for a two-phased project with the City: 1) to develop a new long-term financial forecast for the City’s General Fund, and 2) develop a fiscal sustainability plan. The comprehensive fiscal model allowed for a dynamic dashboard to test various assumptions and provide a better storytelling model to help elected officials, staff and community members better understand the City’s fiscal health. The model, using realistic assumptions, identified a long-range fiscal gap that would deplete General Fund reserves within the ten-year forecast if left unabated. In Phase 2, we identified 25 budget strategies including revenue enhancements, expenditure controls/cost shifts, service delivery changes, and service level reductions that would eliminate the structural deficit and packaged them into various scenarios for Council to consider. We, then facilitated meetings with the City’s appointed fiscal sustainability task force to review budget strategies and provide input into recommendations with the goal of developing a consensus recommendation from the task force. Unanimous consensus was achieved and a separate report from the task force was presented to the Council along with Baker Tilly’s independent report Council members reviewed the task force’s recommendations and requested that the City Manager prepare a recommended implementation action plan for Council’s consideration in late 2023. CITY OF KENMORE, WASHINGTON Name Rob Karlinsey Title City Manager   Item 2.3       Packet pg. 65/74 7 Phone 425-984-6170 Email rkarlinsey@kenmorewa.gov Dates 2019-2020 Engagement partner Steve Toler Description We were engaged by the City of Kenmore to analyze its six-year General Fund financial forecast, including the Streets Operating Fund. Our analysis improved forecast methods and assumptions for sales tax, development fees, salary and benefits, and recession impacts. We recommended updated reserve policies and developed a “what if” dashboard to show how revenue, expenditure, and recessionary changes would affect the fiscal gap and reserves. The baseline forecast revealed structural deficits exceeding 10% of annual expenditures, with reserves projected to deplete within four years without action. We developed a fiscal sustainability plan with nearly 30 strategies for Council consideration and worked with the resident fiscal stability committee to review options and provide input. A separate report on the committee’s work was presented with the City Manager’s recommendations. The Council adopted 10 strategies, and we created an implementation plan to support staff. Kenmore received the 2021 Association of Washington Cities Municipal Excellence Award for its financial stability plan.   Item 2.3       Packet pg. 66/74 8 KEY PERSONNEL Key personnel Aligning key engagement team members with your goals Your handpicked team of professionals offers a collaborative focus supported by the breadth and depth of our firm’s national resources. We believe in strong personal relationships, and this means a personal interest in the City of Edmonds from some of our most experienced team members. Engagement team members are introduced below. Complete resumes are available upon request. INTENTIONALLY SELECTED ENGAGEMENT TEAM FOR THE CITY OF EDMONDS Brock Bowsher, Principal Project role: Principal in Charge Brock specializes in financial strategy, long-range planning, and operational analysis. Prior to joining Baker Tilly, he served more than 14 years as a chief financial officer for public school districts, where he led budgeting, capital planning, financial and operational management functions in complex public sector environments. At Baker Tilly, Brock advises public sector clients on financial sustainability, capital planning, and debt management. He has extensive experience supporting operating and capital referenda, as well as developing data-driven financial models and analytics to inform decision-making. His work focuses on helping clients align financial resources with long-term service and infrastructure needs. Brock is a registered municipal advisor with the U.S. Securities and Exchange Commission and holds Series 50 and Series 54 licenses. Matt Bubness, Director Project role: Project Lead Matt joined Baker Tilly in 2021, bringing 20 plus years of experience serving and working for a variety of entities across the public sector. At Baker Tilly, Matt focuses on a broad range of financial management related areas, including budget analysis, staffing analysis, process improvements, financial forecasting, and strategic planning. Prior to joining Baker Tilly, Matt led initiatives at the Government Finance Officers Association’s to improve budgeting practices, particularly alignment between strategic planning and budgeting. In addition, Matt led consulting engagement for GFOA across a broad range of governments related to budgeting and process improvements. Matt also led presentations and trainings for local governments across the country on budgeting and other financial best practice topics. Before GFOA, Matt worked for Chicago Public Schools (CPS) and the City Colleges of Chicago. Matt served as the operations and finance director for all special education programming and previously held roles in operating and capital budgeting for CPS. Matt is a registered municipal advisor with the U.S. Securities and Exchange Commission and holds a Series 50 license.   Item 2.3       Packet pg. 67/74 9 KEY PERSONNEL Michael Perkins — Senior manager Project role: Project Manager, Facilitator Michael has more than 14 years of experience working directly in and consulting for public sector and not-for-profit organizations, including K-12 school districts, state and county health departments, city executive offices, government contractors, and social impact focused not-for-profits. He specializes in strategy development, process facilitation, project management, organizational assessment, and green energy project financing. Michael brings several years of experience leading strategic initiatives and organizational improvement efforts in internal roles within public sector agencies as well as in a consulting capacity serving public sector organizations. Matt Stark — Manager Project role: Fiscal Model Engineer Matt has been providing analytical tools and expertise to help local governments solve problems and plan for the future for more than 16 years. He has managed projects and built financial models and analytical tools to facilitate long-term financial and capital planning, utility rate structures and rate adjustments, fiscal impacts of development and land use, cost-benefit analysis of development incentives and public investments, cost of service calculations for municipal services, employee classification and compensation systems and annexation studies. He has developed a portfolio of Microsoft® Excel-based tools used both internally and by Baker Tilly’s clients for their ongoing planning and problem solving. Don Rhoads, CPA – Special Advisor Project role: Subject-matter Specialist Don is a credentialed CPA, with more than 29 years of public sector experience including serving as finance director for the City of Monterey and chief financial officer for the City of Beverly Hills. Don is experienced in operational and capital budgeting, strategic financial planning, accounting and financial reporting, capital improvement planning, analysis and strategies related to unfunded liabilities, as well as staff development and teambuilding. He is well regarded by city councils, managers, and community members as a person who takes complex financial information and presents it in a way that is understandable and relevant. In Beverly Hills, he led the Mayor’s Financing Task Force to successfully develop a financing plan for major upcoming capital projects and established an innovative Conference Center Financing District in Monterey to provide funding for the renovation and expansion of the Monterey Conference Center. Prachi Patel— Senior Consultant Project role: Research, analysis and report preparation Prachi joined Baker Tilly with 5 years of experience working with or for various local governments. She has experience working for the New York City office of management and budget and the city of Alameda along with internships in various cities such as San Francisco, Berkeley and Simi Valley. Prachi is deeply committed to using her skillset to help impact positive change within the public sector.   Item 2.3       Packet pg. 68/74 10 KEY PERSONNEL In addition to our core project team, we have a deep bench of subject-matter specialists in all aspects of local government to call on as needed for this engagement, as detailed in the chart below. CITY CLERK CITY MANAGER COMMUNITY DEVELOPMENT FINANCE FIRE HUMAN RESOURCES INFORMATION TECHNOLOGY LIBRARY PARKS AND RECREATION POLICE PUBLIC WORKS UTILITIES   Item 2.3       Packet pg. 69/74 11 FEE Fee Baker Tilly proposes to complete the task force facilitation and fiscal model as described herein for a not to exceed professional services fee of $149,500. This fee reflects custom financial modeling, Washington-focused benchmarking, in-person facilitation, and Council-ready presentation materials. If our project plan and budget do not align with your expectations, we will be happy to review and adjust both to achieve an appropriate balance between your desired results and consulting fees. SERVICES FEE ESTIMATE Phase 1 – Develop long-range financial forecast $47,500 Phase 2 – Evaluate and identify budget strategies for consideration $25,000 Phase 3 – Facilitate the Fiscal Sustainability Task force $77,000 TOTAL $149,500 Schedule We anticipate the duration of this project to be 9-12 months, depending significantly on the frequency of the series of task force meetings. Once we have the opportunity to discuss in greater detail any timeline- specific objectives and constraints on the part of the City, we can lay out a detailed, phase by phase project timeline.   Item 2.3       Packet pg. 70/74 12 Appendix A: Fiscal sustainability and community engagement clients Financial and business planning is an important part of our work, and we have a long history of developing fiscal models for our clients. The following list shows jurisdictions that we have assisted in the recent past with financial planning and budgeting. We have also provided a representative list of clients our firm has provided facilitation services to over the past few years. They include strategic planning, goal setting and other kinds of related services. This experience providing facilitation services to numerous public sector clients will translate into a broad perspective and meaningful insights for the City. Fiscal sustainability and financial forecasting clients • City of Kenmore, Washington • City of Newcastle, Washington • City of Sammamish, Washington • City of Beaverton, Oregon • City of Cloverdale, California • City of Concord, California • City of Daly City, California • City of El Cerrito, California • City of Garden Grove, California • Hayward Area Recreation and Park District, California • City of Healdsburg, California • City of Montgomery, Ohio • Town of Paradise, California • City of Richmond, California • City of Sacramento, California • City of Santa Cruz, California • Santa Cruz Public Library, California • Scappoose Rural Fire District, Oregon • City of Scotts Valley, California • City of Tigard, Oregon • City of Union City, California • Town of Westlake, Texas • Town of Windsor, California Facilitation clients • City of Anaheim, California • City of Ankeny, Iowa • City of Burlington, North Carolina • City of Hesperia, California • City of Seal Beach, California • City of Clearwater, Florida • City of Commerce City, Colorado • City of Corvalis, California • City of El Cerrito, California • City of Folsom, California • City of Fort Wayne Utilities, Indiana • City of Huntington Beach, California • City of La Mesa, California • City of Lake Worth, Texas • City of Pinole, California • City of Pleasanton, California • City of Santa Cruz, California • City of Scotts Valley, California • City of Sheboygan, Wisconsin • City of Suisun City, California • City of Union City, California • City of Vallejo, California • City of Victorville, California • City of Wauwatosa, Wisconsin • City of Wichita Falls, Texas • City of Windsor, California • Economic Development Corporation of Lancaster County, Pennsylvania • Guadalupe-Blanco River Authority, Texas • Monterey County, California • Orange County, California • Parish of Baton Rouge, Louisiana • Richland County, South Carolina • Rock County, Wisconsin • Rockwall County, Texas • San Jacinto River Authority, Texas • Town of Kenneth City, Florida • Town of Northlake, Texas • Town of Westlake, Texas   Item 2.3       Packet pg. 71/74 13 FINANCIAL AND BUSINESS PLANNING IS AN IMPORTANT PART OF OUR WORK, AND WE HAVE A LONG HISTORY OF DEVELOPING FISCAL MODELS FOR OUR • City of Palm Bay, Florida • Delaware County, Pennsylvania • Western Association of Schools and Colleges As the lists above would suggest, the Baker Tilly team will bring a breadth of experience and expertise in many aspects of facilitating a task force, including stakeholder engagement. Whether helping clients develop strategic plans, launching new initiatives, or assessing their effectiveness over time, stakeholder engagement is a frequent priority in our work with our clients. We are practiced in engaging stakeholders in a variety of forms and formats, be it interviews, focus groups, surveys, town hall-style meetings, or participation in existing forums. We have the experience and ability to do all, in both virtual and in-person formats, whether the objective is soliciting input, generating insights or delivering information to external audiences.   Item 2.3       Packet pg. 72/74 Give people a reason to cooperate. Pillar 1ESTABLISHLONG-TERM VISION Create the conditions for cooperation. Pillar 2BUILD TRUSTAND OPEN COMMUNICATION Develop forums for participation. Pillar 3USE COLLECTIVEDECISION MAKING Reinforce constructive behavior. Pillar 4CREATE CLEAR RULES Promote and protect mutual trust and respect. Pillar 5TREATEVERYONEFAIRLY gf o a . o r g / f i n a n c i a l f o u n d a t i o n s FINANCIAL FOUNDATIONS FOR THRIVING COMMUNITIES   Item 2.3       Packet pg. 73/74 ESTABLISH ALONG-TERMVISION Give people a reason to cooperate. Promote Collaboration The only thing better than an inspiring vision is an inspiring shared vision. Turn stakeholders into co-creators as you define the long-term vision. Balance Long-Term Goals with Short-Term Needs In all things, seek balance. Advocate for both the big picture and day-to-day needs. Break long-term goals into shorter-term milestones to maintain momentum. BUILD TRUSTAND OPENCOMMUNICATION Create the conditions for cooperation. Create Open Lines of Communication Communication is key. Create and promote two-way channels to connect elected officials and staff with the public. Cultivate Trustworthy Reputations Trust is everything. Build trust through transparency—say what you mean, mean what you say and follow through. CREATE CLEAR RULES Reinforce constructive behavior. Well-Defined Boundaries When the game has clear rules, everyone’s set up to win. Create and share expecta- tions about how decisions get made, who has the final say, and timelines. Monitoring Everyone must follow the same rules. Hold people accountable. When they understand their reputations are at stake, they’re more likely to play fair. Maintain Oversight Cooperation is key to thriving communi- ties. Reinforce the importance of cooperation through the power of the purse strings. Encourage a culture of shared values. Sanctions and Rewards Incentives can encourage both good and bad behaviors. Know the difference and design institutions accordingly. TREAT EVERYONE FAIRLY Promote and protect mutual trust and respect. Proportional Equivalence Between Benefits and Cost People must get what they pay for and pay for what they get. Be proactive— make sure citizens know what they stand to gain for their tax dollars. Conflict-Resolution Mechanisms We can’t please everyone all the time. Disputes around financial decisions will happen. Anticipate that. Prevent destruc- tive conflict. Promote constructive debate. Minimum Recognition of Rights Local governments must have autonomy. Use collective decision-making to develop policies and procedures for protecting local choices and addressing unfunded mandates and grants. USE COLLECTIVEDECISION MAKING Develop forums for participation. Engage Key Stakeholders Building a sturdy financial foundation is a team effort. We must be proactive and responsive. Let people voice their concerns. Ask for their feedback. Adjust as needed. Collective Choice Arrangements Give citizens a seat at the table. They’re more likely to support decisions when they have a say in how public resources are used. Prioritize public feedback. Networked Enterprises We’re stronger together. Share services across local governments to save costs. Build collaborative, cross-sector networks to pool resources for address- ing community challenges. 21 54 3 Government Finance Oicers Association 203 N. LaSalle Street, Suite 2700 Chicago, Illinois 60601-1210 (312)977-9700 gfoa.org   Item 2.3       Packet pg. 74/74