Tacoma Interim Budget Officer presents 2024 financials and $21M reappropriation plan

The Tacoma City Council convened for a special meeting on May 6, 2025, to discuss the year-end financials and reappropriation of funds, highlighting significant fiscal developments that will impact the community. Interim Budget Officer Reed Bennion presented a comprehensive overview of the city’s financial performance for 2024 and outlined necessary adjustments for the upcoming biennium.

A key takeaway from the meeting was the city’s general fund revenues, which exceeded projections by nearly $20 million. However, Bennion cautioned that this figure is largely inflated by one-time occurrences, including transfers from the American Rescue Plan Act (ARPA) and the sale of city property. These exceptional revenues will not recur, raising concerns about the sustainability of the city’s financial health moving forward.

The discussion also revealed that while utility and business taxes performed better than expected, sales tax revenues fell short, indicating potential challenges for the local economy. The council noted that the growth in general fund revenues, while appearing robust, is misleading without considering the significant contributions from miscellaneous revenues, which have been bolstered by ARPA funds in recent years.

In terms of expenditures, most city departments managed to save money, primarily due to personnel vacancies. However, the meeting highlighted specific areas of concern, such as the Neighborhood and Community Services (NCS) department, which faced delays in contract invoicing, and the fire department, which exceeded its budget due to overtime costs.

Looking ahead, the council will consider a budget modification ordinance on May 13, which includes a reappropriation of $21 million for the 2025-2026 budget cycle. This reappropriation is essential for covering delayed expenses and existing commitments, including funding for community projects like the rescue mission expansion and participatory budgeting initiatives.

The meeting underscored the importance of careful financial planning as Tacoma navigates its fiscal landscape. With the city’s reliance on one-time revenues diminishing, council members emphasized the need for strategic budgeting to ensure long-term stability and continued support for community services. As Tacoma prepares for the next biennium, the outcomes of these discussions will play a crucial role in shaping the city’s financial future and its ability to meet the needs of its residents.