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Lakewood posts healthy general‑fund balance in 2024; council reviews carryforward requests and mid‑biennium items
Summary
City staff told the council the 2024 year‑end general fund balance stands well above the council’s 12% reserve policy and reviewed proposed 2025 carryforward budget adjustments that include a $250,000 per‑year estimate for public defender costs and a $2 million carryforward for economic development opportunity funds.
City finance staff presented the 2024 year‑end financial report on April 21 and reviewed proposed carryforward budget adjustments for 2025, telling the council the general fund ended 2024 with reserves above the council’s 12% contingency target.
Deputy City Manager K. Krause summarized the highlights, directing council members to a packet summary that focuses on the general and street fund. She said the general fund’s ending balance equaled about 25.1% of operating revenues, well above the council’s 12% policy. Krause reported mixed revenue results: modest decreases in property tax, some sales tax declines in retail and public‑safety related sales tax, offset by higher development‑services fees (up nearly $800,000) and an increase in admissions tax. Utility tax revenues were down, which staff attributed in part to milder weather reducing energy demand.
Krause noted revenues expected from a major permit (the Western State project) were not yet included in 2024 numbers but estimated the first‑quarter 2025 activity could bring substantial permits and fees (an earlier staff estimate of $3 million was discussed for 2025 permitting activity). She also highlighted development‑services cost recovery at 144% for 2024 (five‑year average about 103%), and parks and recreation cost recovery at roughly 46%, slightly above the 45% policy target.
On carryforward requests, Krause said staff added a $250,000 per‑year placeholder for public‑defense costs and recommended carrying forward unspent Economic Development Opportunity funds—about $2 million at the time of the presentation. She described a range of other carryforward items, many grant‑funded or tied to capital projects, and said staff would return with mid‑biennium budget adjustments for council consideration on May 19 after a public hearing on May 5.
Council members asked questions about the composition of parks revenues, franchise and utility tax trends, and whether one‑time gains from development should be used to rebuild some reserves or fund ongoing programs. Finance staff said the administration expects to bring recommendations during the mid‑biennium process that balance one‑time and ongoing priorities.
No final budget actions were taken April 21; the carryforward and mid‑biennium adjustments will return to council for public hearing and adoption in May.
