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
Second Quarter 2026 Financial Report
OVERVIEW STATEMENT:
recommendation
Review the City's financial performance from January 2025 to June 2026.
? 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 June 30, 2026, include the following:
REVENUE:
Total General Fund revenue is 12%, or $24.5 million, above target.
Property Tax is 0%, or $156,000, below target. The next Property Tax payment is expected in November 2026.
Sales & Use Tax is 37% ($22.5 million) above target, driven primarily by growth in retail and information industries.
Utility & Other Taxes are 5%, or $1.0 million, above target.
Development Permits and Fees are 11%, or $2.4 million, above target. Development fees were updated in 2024.
Business License Fees are 2%, or $170,000, below target.
Other Revenues are 2%, or $9.6 million, under target.
EXPENDITURES:
Total General Fund and TIS expenditures are 3%, or $9.6 million, under target.
Spend rate for some departments above/below target:
Executive Department is 11%, or $1.8 million, below target primarily due to position vacancies and timing of spending one-time projects.
Planning Department is 11%, or $3.4 million, below target primarily due to position vacancies and timing of one-time expenditures.
Overtime Expenditures: Total overtime expenditures are 22% ($2.8 million) over the expected target. Overages are primarily s...
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