Okay, well, um, we'll begin.

This is a City of Everett Budget and Finance Committee for July 15th, 2026.

Um, I'd like to begin with a presentation um from Chris Kidwin, our brand new finance director.

Or maybe I'll pass it over to Candy for an introduction.

That's great.

Thank you.

Good evening, counsel.

I'm so pleased to introduce Chris Godwin, our new finance director.

Chris has an extensive public sector finance background.

He previously spent nearly five years as finance manager at the Seattle Department of Transportation, where he led long-range financial planning and budget development.

Before that, Chris held senior finance roles with Seattle Public Utilities, San Francisco's budget and legislative analyst uh office, and the Maryland Department of Budget and Management.

Um, and he also worked for the Washington State Senate.

Chris holds a master's in public administration from the University of Washington, and he has a bachelor's in political science from Oregon State University.

His track record and financial modeling, multi-year forecasting, and translating technical data into clear insight, make him especially well suited to support tonight's discussion on the city's budget.

Please welcome Chris.

Thank you, Chris.

Thank you, Candy.

Um, Council members, it's nice to meet all of you.

And for the record, I'm Chris Godwin, the finance director for the city of Everett.

Um our first presentation tonight.

I'm just gonna kick uh launch the presentation.

So we have two subjects um for the agenda.

One is the budget performance.

Yep.

And then the 2027 budget budget process.

Um and there is a calendar in the budget process, and each of you should have a handout that we gave you in a larger format so you can play along at home.

Um as we this is a typical step in our budget process where I come and present uh a high-level summary of what our 25 performance was and then in process, and and we'll start with performance.

Um in 2025, our revenue forecast was 169.6 million dollars, and that was measured against the performance of 170 million.

Um, as you all know, which is a variance of 424,000 or 0.25%, which for our purposes here is you know spot on.

As you all know, the the beneath that number is a constellation of revenue streams, each of which performed to varying levels of overperformance or underperformance.

In 2025, um, we saw higher than anticipated revenues and grants and in internal service charges that offset some shortfalls in sales tax revenues.

And you would have heard about that in the monthly reporting last year that our sales tax revenues fell about 1.3 million dollars short.

The good news is that we ended the year in a slightly better position.

And in our year-to-date monitoring of the sales tax, we have not seen a significant drop-off like we did last year.

We are right on track to meet our projection for 2026.

Moving on to expenditures.

That's a variance of 8.5 million or 4.81%.

This is um in line with the performance that we've seen in prior years and is largely reflective of every department's initiative to monitor their budget and to try to pinch pennies as much as possible where possible.

Um, we saw uh savings across the board, um, and we remain committed to good financial stewardship as we move forward.

All right, getting into the CIP a little bit.

Um all CIP projects come before the council for approval and are included in whole or in part in one of the four funds that you see on the screen.

Um going through them one by one.

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

We contribute $3 million in general funds to that CIP every year.

Um in 2024, we did have to defer that, but we anticipate making the same contribution in 2026 and 27.

Heaven, um we currently estimate that we will end the year with a fund balance of 21 million to pay um as after paying for current year costs and to pay for future year projects that are already approved by the council.

Major projects in that CIP include the main library and HVAC replacement, uh, the police and some police projects, including the property room renovation, the bathroom renovations and headquarters, and the boathouse replacement.

Uh moving on to CIP two, CIP2 is funded with the first quarter percent of real estate excise tax revenues.

Um and at this point, CIP2 is wholly paying for debt service that we have incurred on prior issued bonds and debt.

Um you may recall that last year we issued long-term general obligation debt to pay for things like the Edgewater Bridge replacement, the Eclipse Mill Park Project, low lowell riverfront trail improvements in the every municipal building.

Um that fund is also paying for the debt service on the Angel of the Winds Arena.

CIP3 is uh funded by the second quarter percent of real estate excise tax.

We anticipate that that fund is going to end the year with about 9.1 million in fund balance to after paying for this year's costs and to pay for future uh costs on projects already approved.

The main projects that are in that one or the or the projects of note include the Edgewater Park playground and sport court renovation.

I dare anyone to say sport court 10 times fast, um, and the Garfield Playground renovation.

CIP four is funded through lease revenues, mostly from the village theater lease.

Um and at this point, that project is also contributing to the Eclipse Mill Park project.

We anticipate that that project will end the year with a 737,000 fund balance.

Thank you.

Uh thanks, Chris.