Everett City Council reviews $25.8M fire pension fund and liquidity management policies

Everett City Council's Budget Committee meeting on July 16, 2025, highlighted significant financial strategies aimed at ensuring the city's fiscal health and community service sustainability. A key focus was the city's proactive approach to funding its pension programs, particularly the LEFT 1 fire pension fund, which is projected to have an ending fund balance of $25.8 million by the end of 2025. This fund, along with the police pension fund, benefits from various revenue sources, including state contributions from fire insurance premiums.

The committee emphasized the importance of maintaining a robust fund balance, which is required to be at least 20% of the city's revenues. Current projections indicate that Everett's actual ending fund balance averages 31% of operating revenues, significantly exceeding the minimum threshold. This financial cushion is crucial for managing the city's cash flow and addressing unforeseen expenses.

During the meeting, council members discussed the implications of recent investments, including a $4.7 million allocation to the capital improvement program and $3.7 million to pension funds. These one-time investments were made to enhance community services and mitigate revenue losses, particularly from the Boeing 787 production shift.

The committee also addressed the importance of responsible budgeting practices, ensuring that total expenditures do not exceed available resources, thus avoiding deficit spending. This approach aligns with state laws and reflects the city's commitment to fiscal responsibility.

As the council continues to navigate financial challenges, the discussions from this meeting underscore Everett's dedication to maintaining a strong financial foundation while investing in essential community services. The ongoing negotiations regarding the sale of the Waits Motel property were also noted, indicating potential future funding opportunities for the city.