Everett staff report stronger-than-expected early revenues; outreach finds residents prioritize public safety

Jamie Lee Graves, assistant finance director, told the City of Everett Budget and Finance Committee on April 16 that general government revenues through Feb. 28 “exceeded projections by approximately $1,200,000,” with “total revenues for the month reaching just over $983,000.”

Graves said the increase was driven in part by the timing of operating transfers and stronger collections in miscellaneous revenues, business-and-occupation (B&O) tax and sales tax. “Receipts through February reflect an increase of 360,546, or 8.3%,” she said of the B&O tax; she added sales-tax collections were $17,389, or 0.3%, above budget and reminded the committee that sales tax is received on a two-month lag.

Heidi Broulantes, finance director, said the year-to-date revenue uptick should not yet be taken as a recurring trend because collections can vary seasonally and by timing of payments. She also told the committee that overall departmental spending remained below budget but that expenditures will rise related to a collective bargaining agreement the council approved March 18, when retroactive pay adjustments are processed.

Council members asked staff several clarifying questions. Councilman Tewi asked whether owners of apartment buildings pay B&O tax; staff replied that applicability depends on how the property owner’s activity is classified and would require specific analysis. In response to questions about construction-related sales tax, staff noted that sales-tax figures reported through February reflect December activity but that building permits recently processed had increased sharply, creating a pipeline that may raise future construction-related collections: “permits processed are like we went up by 340%,” a staff speaker said.

The committee also reviewed a staff presentation summarizing community outreach conducted after the failure of Proposition 1 in 2024. Communications-led outreach in August 2024 included three public meetings, a listening session with Mayor Franklin and Council President Schwab, and a citywide survey that collected 482 responses. Staff reported the survey showed residents ranked the city’s strategic priorities with “safe community” first, followed by housing, transportation and infrastructure; responsive and responsible government; economic, workforce and cultural vitality; and an engaged, informed community.

When asked where residents thought the city could tolerate the largest budget reductions, staff said respondents most frequently named neighborhood group support, parking enforcement, business support, police community outreach, and events/arts/culture.

Bader and Zalmingo, both council members who spoke during the meeting, urged clearer public presentation of budget materials. Council member Bader asked if the budget book could be presented in ways that make trade-offs and program-level details easier for the public to parse; staff said personnel summaries and department narratives already break out full-time and seasonal FTEs and labor totals by activity and that the team would consider additional ways to present high-level summaries when the mayor’s message is released.

Zalmingo said outreach also revealed that residents want confidence the city is on a sustainable fiscal path and that some services deliver strong value per dollar, making deep cuts both difficult and only modestly productive.

Staff told the committee they do not plan to repeat a large-scale community survey this year because of the depth of the recent engagement and typical municipal practice of conducting such surveys about every two years; they emphasized that residents can still provide input year-round by phone, email, public hearings and written comment.

The Budget and Finance Committee concluded the meeting after brief discussion of how to provide council members a high-level packet when the mayor releases the budget message, so councilors have time to review summaries before the full book becomes available.