Council Recap: State of the City & Financial Performance

EVERETT, MARCH 22: This recap of the Wednesday, March 19th Everett City Council meeting was provided by the Everett City Council office.

March 19 – City Council Meeting Overview

Agenda – 03/19/2025

• Mayor Franklin shared several updates:
  • The State of the City event is scheduled for March 27, 2025, at 4 p.m. hosted by the Greater Everett Chamber of Commerce at APEX Everett, with virtual attendance options available
    • Tickets: everettchamber.org
    • Streaming options: everettwa.gov/SOTC
  • New, free event hosted by Mayor Franklin: Community Edition of the State of the City will occur on March 31, 2025 at Everett Station starting at 6 p.m. featuring a community engagement fair.
  • March is designated as Women’s History Month, with appreciation expressed for women in leadership roles within the council and community.
  • It’s also National Social Worker Month and Mayor Franklin highlighted the contributions of the CARE (Community Alternative Response in Everett) team.
• A proclamation was made for Youth Art Month, emphasizing the importance of visual arts education.
• Council Member Updates
  • Council members provided updates on various community meetings and initiatives, including discussions on neighborhood associations and transportation policies.
• Council approved several consent items including a call for bids for the Port Gardner Storage Facility Site Construction Project and a new agreement with Vera Whole Health that will save the City money on staff benefits.
• Four action items were approved including ordinances related to the issuance of bonds for city facilities, parks and water and sewer projects (see 3/5 meeting for the full briefing)
• Comprehensive Plan Briefing – slides
  • The council received a briefing on the Comprehensive Plan update, focusing on proposed goals and policies for housing, urban development, and transportation.
  • The planning director, Yorik Stevens-Wadja, outlined the timeline for public comment periods and the submission of the draft to the state.
  • Discussions included zoning changes and the importance of community input on development regulations.
• Budget Discussion – materials
  • The council discussed the upcoming budget, emphasizing the importance of including a six-year financial forecast and additional information about staffing changes.
  • Suggestions were made to improve the clarity of budget documents and enhance public understanding of financial decisions.
• Conclusion
  • The meeting concluded with a motion to enter an executive session, with no further business to follow.

Budget and Finance Committee

<a href=""https://www.everettwa.gov/Agenda

• The Budget and Finance Committee is a meeting of the whole Council.
• The meeting included a presentation from the Finance Director, Heide Brilliantes, and the Assistant Finance Director, Jamielee Graves, focusing on the year-to-date budget performance and responses to previous council inquiries.
• Financial Performance
  • As of January 31, 2025, total General government revenues exceeded projections by $173,400, totaling over $1.6 million for the month
  • Utility taxes performed well, coming in 8.8% above budgeted revenues, indicating a positive start to the year.
  • Business and occupation tax (B&O tax) receipts were up by $91,200, although still 3.4% below budget.
  • A breakdown of sales tax categories showed that while wholesale trade and manufacturing exceeded budget expectations, sectors like retail and construction fell short.
• Expenditures and Budget Adjustments
  • General government expenditures were lower than budgeted, with January showing reduced spending.
  • The impact of the Boeing strike in late 2024 led to adjustments in the budget, including a $2 million reduction in B&O tax revenue
  • The preliminary December 2024 report indicated that revenues were under budget by $6.4 million, primarily due to timing issues with grants
• Fund Balance and Financial Policies
  • The city maintains a budgeted ending fund balance of no less than 20% of budgeted operating revenues, which is crucial for fiscal stability
  • The actual ending fund balance is $49 million, exceeding the required amount
  • Discussions emphasized the importance of maintaining the current conservative approach to fund balance due to potential economic uncertainties
• Reserve Policies
  • The city has various reserve funds for specific purposes, including Capital Improvement Programs and self-insurance funds
  • The health benefit reserve and self-insurance funds are particularly restrictive, requiring careful management to ensure solvency
  • The committee discussed the implications of real estate excise taxes on funding for capital projects
• Conclusion
  • The meeting concluded with plans to reconvene after the regular council meeting to further discuss budget information structuring