Committee places beginning fund-balance ordinance on July 15 consent; staff flags roughly $1 million unallocated

The Redmond City Council Committee of the Whole on Finance, Administration and Communication agreed to place an ordinance to adjust 2025 beginning fund balances on the July 15 consent agenda after staff said preliminary year-end figures show roughly $1 million in unallocated general-fund balance.

Deputy Director Nara introduced the item and Finance Manager Haley Zurcher told the committee the adjustment is a technical "truing up" of beginning balances using 2023 ending balances plus actual 2024 revenues and expenditures. "This is going to be the first of hopefully two beginning fund balance adjustments that we plan to bring to you," Zurcher said, adding the department plans a second adjustment in the autumn after audits are final.

The adjustment uses audited 2023 closing balances and 2024 actuals to compute the beginning balance for 2025, Zurcher said. She told the committee the city does not usually change the general-fund beginning balance as part of these adjustments but provided a preliminary figure that the general fund is "looking to have just under a million dollars available to spend." Zurcher and Deputy Director Nara said they do not expect major changes after completion of the audit but left open the possibility of further technical changes.

Committee members asked for clarifications. Councilwoman Stewart asked whether large line-item differences—such as in advanced life support or wastewater—were timing issues or reflected substantive changes; Zurcher said some differences are timing-related and others reflect updated audited 2023 actuals that differed from earlier estimates. Council Member Nueva Camino asked whether staff track the delta between projected and actuals as a percentage of the overall budget; Zurcher said the city has not routinely tracked that percentage but can provide it if council wants the data. Council Member Anderson asked whether the city’s Transportation Benefit District (TBD) affects the unallocated sales-tax amount; staff clarified the TBD is reported in a special revenue fund and would not be reflected in the general-fund unallocated balance.

There was no roll-call vote in the committee; members raised no objections to placing the ordinance on the July 15 consent agenda. Staff said any decisions about allocating the newly identified unallocated balance would take place during the next budget cycle after final audited numbers are available.

The committee closed the agenda item after confirming the consent placement and asking for any follow-up data requested by council members.