Everett finance staff report small 2024 revenue shortfall; reserves remain above 20% policy

City of Everett finance staff told the city—s Budget and Finance Committee on July 16, 2025, that 2024 general government revenues fell short of the forecast by $928,000 while expenditures came in about $8.3 million below the adopted budget, and that the city—s reserves remain well above the city—s 20% fund balance policy.

Jamie Lee Graves, assistant finance director, said the city budgeted $161,621,239 in general government revenues for 2024 and recognized $160,638,928, a shortfall of about $928,000 (0.61%). Graves attributed part of that gap to timing: the 2024 COPS grant check for about $928,000 arrived in April 2025 and therefore was not recognized in the 2024 cash-based accounting year. She said actual 2024 expenditures were $163,784,203 compared with a budgeted $172,151,255, approximately $8.3 million (4.16%) under budget.

Why it matters: the presentation framed the shortfall and underspending together as factors shaping the city—s available resources for capital projects, pension contributions and equipment replacement. "We remain committed to good financial stewardship and appreciate the proactive efforts administration and our teams have made," Graves said.

Staff walked the committee through several reserve and capital funds. Highlights included: - CIP 1 (major repairs and renovations): typically funded by a $3,000,000 annual general-fund contribution; the city deferred 2024 contributions and staff forecast a 2025 ending balance of about $15,300,000. - CIP 2 and CIP 3 (real estate excise tax–funded capital): these funds are supported by the city—s real estate excise tax (REET). CIP 3, which is restricted primarily to parks, streets and utilities, had a…