Well, welcome.

I'd like to thank everyone for attending the City of Everett Budget and Finance Committee, July 16th, 2025.

So we'd like to begin with a presentation from our finance department.

Good evening, Mayor.

I'm City Council, Jamely Graves, Assistant Finance Director.

Unfortunately, Heidi is unable to join us this evening, but I'd like to introduce our budget manager E.

Liu, who is joining me today.

Tonight we will present how the general government performed in 2024.

We will then go over CIP Special Revenues, Left One Police and Fire Pension Fund Reserves, and conclude with an overview of fund balance.

Starting with general government revenues, our revenue forecast for 2024 was 161,621,239, and our year-to-date actual revenues came in at 160,638,928.

Revenues were under budget by $928,000 or 0.61%.

The shortfall was in part due to the timing of grant funds received, specifically the 2024 COPS grant allocation of just over 928,000, which was anticipated in 2024, but not received until April of this year.

Moving on to general government expenditures.

Although the 2024 budget estimated $172,151,255 in expenditures, actual expenditures in 2024 totaled $163,784,203, $8.3 million, below budget or 4.16%.

We saw savings from all departments.

Their continued focus on managing expenses responsibly has helped us to keep spending below budgeted levels.

We remain committed to good financial stewardship and appreciate the proactive efforts administration and our teams have made.

Next is our capital improvement program funds, starting with CIP1.

CIP1 was established in 2016 to accumulate resources to fund major repairs, renovations, and replacements of existing city facilities.

The projects in the cash flow were identified in the Meng Facilities Needs Study as critical deficiencies, which are prioritized by facility staff.

All projects funded all or in part with CIP funds come before council for approval via plans and systems ordinances.

CIP1 is primarily funded by general fund contributions, $3 million annually.

However, we did defer contributions to CIP1 in 2024.

Per the cash flow model, we forecast the 2025 ending fund balance to be $15.3 million.

Each year, the facilities team reassesses and prioritizes projects to keep spending within available resources.

Major projects for the next five years include the Everett Municipal Building Remodel, Maine Library Renovations, and HVAC replacements for various general government facilities.

Revenue varies each year because REIT is highly sensitive to economic cycles.

Currently, CIP2 is funding the debt service on the Angel of the Winds Arena and LTGO bonds.

As shared earlier this year, we issued a bond to help fund the Edgewater Bridge Replacement, Eclipse Mill Project, and Lowell Riverfront Trail Improvements and the EMB remodel.

In addition, council approved $3 million for design services related to the outdoor event center.

Based on our cash flow model, we project an ending fund balance of $12.2 million for 2025.

REIT 2 is subject to the same volatility as REIT 1.

Historically, REIT 2 has been allocated between parks and streets.

We rely on REIT 2 to pay for new park construction, playground equipment replacements, restroom renovations, and a variety of other park investments.

On the street side, REIT 2 funds a portion of the annual street overlay program.

Per the cash flow model, we forecast a 2025 ending fund balance to be approximately $7.7 million.

In 2025, there are $3.3 million worth of projects approved by council.

These include the Walter E.

Hall Access Trail, the Clark Park Offleash Dog Area, the Drew Nielsen Playground Replacement Project, and the Lowell Park Playground Project.

And lastly, CIP4 accumulates resources for major renovations, expansions, and new facilities.

Per the cash flow model, we forecast the 2025 ending fund balance to be approximately $14,000.

In 2024, expenses totaled approximately $2.7 million, with $2.5 million allocated to the weights property purchase.

For 2025 council approved projects include the later phase Eclipse Mill Park Project and Riverfront Trail Improvement and the Outdoor Event Center.

This year.

Other revenue sources include interest earnings and proceeds from the sale of surplus general government vehicles and equipment.

According to the cash flow model, the projected ending fund balance for 2025 is approximately $2.5 million.

By 2027, the fund balance is expected to decrease to $450,399, primarily due to $8 million in planned equipment and vehicle replacements, including pyre vehicles and fire engines.

From 2028 to 2030, the fund balance begins to recover as expenses decline, allowing for a gradual rebuild.

This is a strategic approach in preparation for significant anticipated costs in future years.

The table summarizes certain planned purchases between this year through 2031.

Under the current funding plan, the largest costs are $7.7 million for fire vehicles and engines and $6.7 million for police cars.

Moving on to fund $145, the cumulative reserve for real property acquisitions fund.

This fund has two subfunds, real property acquisitions and street and alley vacation funded capital projects.

Starting with real property acquisitions, the 2021 ending fund balance was notably higher than in previous years, largely due to $903,000 in revenue from the vacation of city property.

By 2024, the actual ending fund balance decreased to $716,000, primarily driven by the professional services agreement for the outdoor event center.

Looking ahead, the 2025 forecasted ending fund balance is $175,342, which reflects an appropriation of $292,000 to cover those same professional services.

As noted on the slide, the street and alley vacation subfund is restricted for use specifically on the acquisition, improvement, development, and related maintenance of public open space or transportation capital projects.

The 2025 ending fund balance is forecasted at $654,397, primarily due to three projects happening this year.

The 18th Street Sidewalk between Maple and Jackson Park, the West Marine View Drive, Alverson Boulevard Pedestrian and Bicycle Safety Improvements, and the Silver Lake Trail.

The Fund for Animals is a cumulative reserve fund that supports veterinary care, capital equipment supplies, and other services that benefit animals.