Pasco presents biennial financial review: $64 million ending fund balance with major portions committed to capital

Director Buckley presented the biennial financial review for the city on March 24, describing adopted budgets, subsequent amendments and actual activity through the end of the biennium. “As of now, the ending fund balance is $64,000,000,” Director Buckley said, adding that roughly $38,700,000 of that balance is dedicated to capital spending or restricted for specific programs.

Director Buckley told council the apparent citywide fund balance includes substantial portions that are either restricted, dedicated to capital or otherwise not available for routine operations; staff separated operational and capital impacts in their presentation to avoid mixing results. She said revenues were generally ahead of operational budget primarily because of retail sales tax and higher interest earnings, and operational expenses were slightly under budget due to tighter hiring and cautious spending on supplies, services and repairs.

Staff flagged several funds for further review in 2025, including the water, sewer, irrigation and stormwater utilities (each slated for rate or revenue‑requirement studies), and the streets fund, where motor fuel tax and franchise fees have not kept pace with needs. Director Buckley said the irrigation fund showed net expense in 2024 and that recent rate increases are expected to improve its position.

Council members pressed for clarification of the $64 million figure and how much is available for operations versus reserved or dedicated funds. Director Buckley responded that current balances will carry forward and that the mid‑biennium review will present carryover requests and further detail by fund. She also said the American Rescue Plan Act (ARPA) funds have been fully obligated and will be closed out in 2026.

No formal council vote was taken; the item was an informational review in preparation for upcoming budget work and possible retreats.