Flood Control District previews $304 million capital carryover and midyear reallocations for 2025 budget

District staff presented an in-depth briefing May 13 on a proposed midyear budget amendment that would carry over $304,000,000 in capital expenditure authority from 2024 into 2025 and make a series of reallocations across the 2025 operating and capital budgets.

Michelle Clark, the district's executive director, told the board the midyear package responds to two main objectives: carry over capital authority from 2024 and adjust expenditure authority to reflect updated project needs, technical amendments, and project closeouts. "The $304,000,000 carryover detailed in the staff report differed by 9% from the carryover amount forecasted in the December 2024 financial plan," Clark said, noting that carryover patterns were broadly consistent with prior forecasts but that timing shifts have changed the out-year fund balance projections.

Clark said 65% of the requested carryover is for grants and agreements managed by other agencies or service providers and 35% is for projects managed by King County Water and Land Resources Division. She highlighted project-specific reasons for carryover, including delayed negotiations or land acquisition (Gunter Flood Wall/Tekwala 205), construction delays for the Black River Pump Station, and property owners declining offers for the Lower Jones Road neighborhood improvements on the Cedar River.

Examples Clark cited include:

- Tekwala 205 (Gunter Flood Wall): $9.3 million carryover due to development-agreement negotiations and land-acquisition delays. - Black River Pump Station: $5.0 million carryover owing to construction delays related to engines. - Hurstmann Levee setback (Cedar River): $7.4 million delayed to 2026 because of permit timing. - Green River pre-construction acquisitions: $8.6 million to preserve opportunities to purchase multi-benefit properties as sellers become willing.

Clark said grant programs (Opportunity Fund, Bridal grants, Lake Sammamish Flood Mitigation Grant, Flood Reduction Grant programs) together have $74 million in carryover, in part because some jurisdictions bank subregional opportunity funds until sufficient money is available for a project and because new grant programs authorized in 2020 are now reaching implementation and reimbursements.

The proposed resolution would reduce unneeded 2025 budget authority in some projects, increase authority for projects nearing construction, raise the Subregional Opportunity Fund by $2.5 million to meet a board policy that returns at least 10% of tax revenue to each jurisdiction or a $10,000 floor, and remove remaining authority for 16 projects that are complete. Clark said staff will present the matter again for a final vote at the June 10 board meeting; the May 13 presentation was for discussion only.

Clark noted the updated financial plan shows the district's fund balance will not move into the red until 2027, giving the board additional time to review financial policy and reprioritization options.