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 |
TITLE:
title
Third Quarter 2024 Financial Report
OVERVIEW STATEMENT:
recommendation
Review the City’s financial performance from January 2023 through September 2024.
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☒ Receive Information ☐ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
N/A
• Required:
N/A
• Council Request:
N/A
• Other Key Facts:
N/A
OUTCOMES:
The key financial highlights from January 1, 2023, through September 30, 2024, include the following:
REVENUE:
Total revenue is 7.4%, or $14.5 million, over the budget.
• Property Tax is 1.1%, or $432,000, below target.
• Sales & Use Tax is 16.6%, or $11.5 million, above target, partially due to increased wholesale and retail sales. While the main driver of this increase is development activity, there is a decline in 2024 compared to previous years. The total one-time sales tax from construction amounts to $23.0 million.
• Utility & Other Taxes are 16.9%, or $3.1 million, above target primarily due to increased electricity rates by Puget Sound Energy.
• Development Permits and Fees are 5.2%, or $1.1 million, below target, due to a decrease in construction activity compared to previous years. Development fees were updated in 2024.
• Business License Fees are 19.5%, or $2.1 million, below target in 2024 due to the timing of license renewals.
• Other Revenues are 87.0%, or $6.0 million, above target due to high Annual Percentage Yield (APY) on short term investments.
EXPENDITURES:
• Total expenditures are 3%, or $8.6 million, under the target.
• Spend rate for some departments is over/below the target:
o The Finance Department is 9.0%, or $989,000, under the target primarily due to position vacancies.
o The Fire Department is 1.0%, or $289,000, over the target primarily due to overtime driven by firefighter backfill while new recruits attend the Fire Academy.
o The Planning Department is 11.0%, or $3.2 million, under the target primarily due to position vacancies and reduced spending in travel and training.
o The Parks Department is 4.0%, or $1.1 million, under the target primarily due to the late opening of the Redmond Senior & Community Center.
o The TIS Department is 4.0%, or $700,000, under the target primarily due to timing of the annual subscription payments.
• Capital Investment Program (CIP): Total expenditures are at 61.6%, or $216.0 million, below target, largely due to the delayed initiation of significant projects, including the Evans Creek Relocation project and CFD initiatives such as the Overlake Accessibility Improvements, Pedestrian and Bicycle Improvements, and the 150th Avenue Improvement project. This delay is primarily the result of postponed approvals from granting agencies regarding specifications, permits, and traffic control plans.
• Business Technology Investment Program (BTIP): Total expenditures are currently at 28.4%, or $5.0 million, below target due to the delayed initiation of significant projects, including the Workforce Management and CIP Project/Portfolio Management tools.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• 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 |
|
N/A |
Item has not been presented to Council |
N/A |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
N/A
ANTICIPATED RESULT IF NOT APPROVED:
N/A
ATTACHMENTS:
Attachment A: Third Quarter 2024 Financial Report
Attachment B: Third Quarter 2024 Financial Report Presentation