Edmonds Finance Director Gould presented the city's June 2025 quarterly financial report on Aug. 4, telling the council the city is showing a better-than-expected fund balance at midyear but cautioning that the pattern includes timing anomalies that require conservative budgeting.

Gould said the city's overall funds were up about $5.6 million year-to-date while budgeted to be down $8.2 million, largely because several capital projects were delayed and staffing levels remained below budgeted positions. He noted a $6 million interfund loan from utilities had been recorded and that real estate excise tax (REET) produced an unusually large June payment ' about $944,000 ' a spike that materially increased fund balances for the month.

The report highlighted an underperformance in fines and penalties year-to-date; collection from automated traffic enforcement arrived later than budgeted, producing only about $241,000 through June. Gould said July receipts were stronger and that the city will track the stream closely to determine true run rates and to inform the mid-biennium modification for 2025-26.

Gould told council members that after accounting adjustments, expenditures are down roughly 7.8 percent compared with 2024, noting that in 2024 the city used ARPA funds to defer roughly $5.8 million in general fund costs for fire services. He said labor costs remain about 3 percent under budget but that vacancy patterns and timing of hires explain much of the line-item variances.

Council members asked for clarification on specific lines, including a non-departmental difference driven by the ARPA payment timing, police department expenditures (noting higher jail costs), and lingering lease costs tied to a prior satellite office. Gould said staff will prepare additional breakdowns, including a future report showing capital project budgets, expenditures, and grant reimbursements to improve transparency ahead of budget discussions.

Councilmembers also asked about debt and investments. Gould said the city holds approximately $72 million in cash and investments and about $90 million in principal and interest obligations on debt; he recommended a deliberate strategy rather than ad hoc paydowns because some debt instruments include penalties for early payoff and cash balances are tied to specific funds and projects.

Councilmembers requested additional information before the mid-biennium modification: (1) projected net revenue from the automated camera program (gross receipts do not yet reflect net lease and operating costs); (2) clearer breakouts of police and non-departmental expenditures; and (3) a status report on the capital improvement program showing budget, expenditures-to-date and grant reimbursement status. Gould agreed to provide those materials to council.