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 |
TITLE:
title
First Quarter 2026 Financial Report
OVERVIEW STATEMENT:
recommendation
Review the City's financial performance from January 2025 to March 2026. Please note that the 2025 year-end process is still in progress, and the figures presented here are preliminary due to the impact on December figures.
☒ 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:
Council is provided with quarterly financial reports via staff reports during business meetings.
OUTCOMES:
The key financial highlights from January 1, 2025, through March 31, 2026, include the following:
Revenue:
Total General Fund revenue is 9%, or $13.8 million, above target.
• Property Tax is 3%, or $697,000, below target. The next Property Tax payment is expected in May 2026.
• Sales & Use Tax is 30% ($15.2 million) above target, driven primarily by growth in retail and information industries.
• Utility & Other Taxes are 3%, or $437,000, above target.
• Development Permits and Fees are 10%, or $2.0 million, above target. Development fees were updated in 2024.
• Business License Fees are 2%, or $245,000, below target.
• Other Revenues are 8%, or $2.9 million, under target.
Expenditures:
• Total General Fund and TIS expenditures are 3%, or $10.7 million, under target.
• Spend rate for some departments above/below target:
• Executive Department is 10%, or $1.6 million, below target primarily due to position vacancies and timing of spending one-time projects.
• Planning Department is 10%, or $2.9 million, below target primarily due to position vacancies and timing of one-time expenditures.
• Overtime Expenditures: Total overtime expenditures are 17% ($2.2 million) over the expected target. Overages are primarily seen in the Fire department, due to the backfilling of department vacancies to maintain daily staffing levels, and the Police department, due to the review of body-worn camera footage and community outreach.
• Capital Investment Program (CIP): Total expenditures are 21%, or $42.6 million under budget, reflecting the continuation of several major projects and the commencement of new initiatives, including the Evans Creek Relocation project, Pedestrian and Bicycle Improvements, Downtown Adaptive Signals, Pavement Repairs, MOC Predesign, and ADA Facility Improvements.
• Business Technology Investment Program (BTIP): Total expenditures are 42%, or $4.4 million under budget, reflecting the continuation of some major projects and the commencement of new initiatives, including Workforce Management Phase 2, and Dynamics 365.
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: First Quarter 2026 Financial Report Presentation