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 vacanc...
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