Everett finance staff report stronger January revenues, council debates 20% fund-balance policy and reserve use

City of Everett finance officials reported stronger-than-expected January revenues and reviewed year-end accounting adjustments on March 19 as the Budget Finance Committee discussed the city’s 20% fund-balance policy and the structure of reserve funds.

Heidi Relantez, finance director, and Jamie Lee Graves, assistant finance director, told the committee that January general government revenues exceeded projections by $173,430, bringing total collections to just over $11,600,000 for the month. “January revenues came in stronger than expected with total general government revenues exceeding projections by $173,430 bringing us to just over $11,600,000 for the month,” Relantez said. Graves added that business-and-occupation receipts were a primary driver: “B and O tax receipts are up $391,102 or, 11.7%.”

The increase followed mixed results across other revenue streams. Utility taxes were 8.8% above budget, while sales tax receipts were $108,369 (about 3.4%) below budget; staff reminded the committee that sales tax has a two-month reporting lag, so January receipts reflect November economic activity. Building-permit activity declined from 91 permits in January 2024 to 52 in January 2025, but staff said several projects remain in the pipeline and they do not currently regard the decline as a concern.

Why it matters: the committee reviewed how those monthly results feed into longer-term forecasting and the council’s…