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Lacey council adopts midyear budget amendment to cover park, street and police station costs
Summary
The Lacey City Council on June 17 adopted Ordinance 1679, a midyear amendment to the 2025 budget that shifts reserves to several capital projects, accounts for newly issued police-station debt service and authorizes contingency transfers for Quayo Park and other one‑time capital needs.
The Lacey City Council adopted Ordinance 1679 on June 17 to amend the city’s 2025 budget, reallocating reserves and adding budget authority for several one‑time capital projects and debt service.
City accounting manager Chelsea Arwood told the council the amendment reflects updated cost information and a recently rescinded interfund loan. She summarized the largest items: the Rainier Vista tennis‑court resurfacing (quote closer to $100,000, fully funded by the Thurston County Pickleball Club); a $1.3 million transfer to the Arterial Street Fund to start design for the College Street/Seventh Avenue roundabout; 2025 debt service of $1,040,000 for the recently financed Lacey Police Station and training center (to be funded from REIT revenue); and a request to set aside up to $519,000 from the general fund for QEO/Quayo Park cash‑flow needs if required.
The ordinance also records a $329,040 latecomer charge payment tied to North Thurston Public Schools sewer extension (RAC Phase 3) and notes that the midyear amendment is primarily to manage cash flow; staff said a more complete set of adjustments will return in September. Arwood said the council had previously authorized a memorandum of understanding for the roundabout and that the amendment enables design work to begin.
Council members asked staff for clarifications about the latecomer charge, police‑station debt and the city’s participation in a labor‑and‑industries (L&I) insurance pool. Arwood and the city manager explained the police‑station debt was not in the original 2025 budget because the bonds had not yet been issued when the budget was finalized; the $1,040,000 figure is the 2025 annual debt‑service payment. On the Quayo Park standby‑loan item that triggered the earlier draft resolution, staff said recently received grant reimbursements and a project delay removed the cash‑flow emergency that had prompted the standby‑loan authorization.
A council motion to adopt Ordinance 1679 passed by voice vote with no recorded opposition. Councilmembers said they expect a fuller, final midyear amendment in September covering utility project adjustments and other anticipated changes.
The amendment does not appropriate money that must be spent immediately; staff said transfers will occur only if needed and that they will return with any additional required actions. The council voted unanimously to approve the ordinance.
