TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Kelley Cochran |
425-556-2748 |
DEPARTMENT STAFF:
|
Finance |
Haritha Narra |
Deputy Finance Director |
|
Finance |
Hailey Zurcher |
Financial Planning Manager |
|
Finance |
Ryan Edwardsen |
Principle Revenue Analyst |
|
Finance |
Adam O’Sullivan |
Finance Manager |
|
Finance |
Nida Hermoso |
Accounting Manager |
TITLE:
title
Budget Process: Long-Range Financial Strategy & Fiscal Policies
OVERVIEW STATEMENT:
recommendation
As part of the City’s ongoing commitment to sound financial stewardship, the Long-Range Financial Strategy and Fiscal Policies documents are currently being updated to reflect changing economic conditions, emerging community priorities, and best practices in municipal finance. Council will be provided with an overview of the draft recommendations that incorporate updated assumptions, clearer policy direction, and enhanced alignment with the City’s strategic goals.
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☒ Receive Information ☐ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
o City of Redmond Long-Range Financial Strategy
o City of Redmond Fiscal Policies
• Required:
o City policies require routine updates to the Long-Range Financial Strategy
o City and State policies require routine updates to Fiscal Policies
• Council Request:
N/A
• Other Key Facts:
The review and update process for the Long-Range Financial Strategy and Fiscal Policies is included in the biennial budget process. The current update is significant, and it is important to discuss the recommended changes with City Council.
OUTCOMES:
The City’s Long-Range Financial Strategy and Fiscal Policies serve as the foundation for responsible governance, ensuring that Redmond remains financially resilient, transparent, and well-positioned to meet both current and future community needs. The guiding documents establish principles for budgeting, revenue management, expenditures, reserves, and long-term planning. Together, they help the City balance priorities such as infrastructure investment, service delivery, economic vitality, and sustainability.
Explanation of the Documents and Importance
The Long-Range Financial Strategy provides a forward-looking framework that forecasts revenues and expenditures over multiple years. It helps identify potential gaps, assess financial risks, and guide decision-making to maintain structural balance. Fiscal Policies establish the rules and standards that govern how financial decisions are made and implemented. The policies cover areas such as reserve levels, debt management, and revenue diversification.
These documents are essential because they:
• Promote financial stability and predictability
• Support transparent and accountable decision-making
• Protect the City’s creditworthiness and fiscal health
• Enable proactive planning for economic uncertainty and growth
• Ensure alignment between community priorities and available resources
Study Session Outcomes
By the end of the study session, Council will:
• Gain a clear understanding of the purpose, scope, and structure of the updated Long-Range Financial Strategy and Fiscal Policies
• Review key changes and proposed updates based on current financial conditions and best practices
• Provide any immediate feedback on policy direction, priorities, and assumptions, and/or
identify any areas requiring further refinement
• Understand next steps for the review and updates to the documents.
This discussion represents an important step in strengthening the City’s financial framework and ensuring that Redmond continues to deliver high-quality services in a fiscally responsible manner.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
Public Hearings for the Budget Process
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
N/A
Approved in current biennial budget: ☐ Yes ☐ No ☒ N/A
Budget Offer Number:
N/A
Budget Priority:
Strategic and Responsive
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
N/A
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
11/12/2025 |
Study Session |
Receive Information |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
5/12/2026 |
Committee of the Whole - Finance, Administration, and Communications |
Provide Direction |
Time Constraints:
The final documents will be proposed for approval as part of the budget adoption packet in November.
ANTICIPATED RESULT IF NOT APPROVED:
The City will continue to utilize the existing strategies and policies.
ATTACHMENTS:
Attachment A: Draft Long-Range Financial Strategy
Attachment B: Draft Fiscal Polices
Attachment C: Study Session Presentation