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City finance manager reports better-than-expected 2024 opening balances; some 2025 spending areas exceed midpoint
Summary
Budget Manager Jenna Walker briefed council on second-quarter 2025 financials: 2024 closing balances were stronger than projected (general fund ~ $1.3M favorable), capital spending lagged in some projects, while water fund expenditures were higher than anticipated due to taxes, pump repairs and equipment purchases.
Budget Manager Jenna Walker presented Snoqualmie's 2025 second-quarter financial update to council on July 14, reporting that the City started 2025 with stronger opening balances than anticipated in the budget process, while flagging several spending areas to monitor through the rest of the year.
The update matters to council because it summarizes fund balances, project timing and areas where year-to-date expenditures exceed the expected 50% mark at midyear, information the council can use to guide internal budget decisions and any needed adjustments.
Walker said combined opening balances across funds were about $3.4 million better than estimates used when forming the budget. For the general fund, she said an earlier-than-expected settlement on a lawsuit and higher-than-anticipated interest and GEMT (Ground Emergency Medical Transport) revenues contributed to roughly $1.3 million more than the budget assumption. She cautioned that backlog and processing of revenues because of a new ERP also affected timing.
Capital funds for non-utility and utility projects were under budgeted spending expectations, Walker said, largely because some projects (for example, community center design, Meadowbrook Trail and river-trail work) did not start or were not completed in 2024 as expected and will likely expend during 2025. In contrast, the water fund showed a significant negative variance she attributed to unaccrued taxes and assessments (~$350,000), capital equipment purchases and pump repairs, plus an underestimation of some employee costs; Walker said she expected corrective measures and anticipated utility-related tax adjustments and refunds from prior periods that could offset some pressure.
Walker also described revised internal budget numbers reflecting the end of the North Bend police services agreement and said combined police expenditures for Snoqualmie and North Bend were running above the midpoint at 56.9%. She said turnover and staffing changes related to the ending agreement are expected to change those figures and staff will continue to monitor department expenditures closely.
Councilors asked for more detail on the water fund variance; Walker explained plans to amend returns going back to 2021 for tax corrections and said the water fund retains a buffer above the minimum fund balance required by policy. No formal budget adjustments were adopted at the meeting; Walker said staff will continue to monitor spending and bring further updates or revisions through Finance and Administration (FNA) committee and future council reports as needed.
