Milton's preliminary 2024 fourth'quarter finance report: revenues above budget, targeted overages noted

Director Robick presented the City of Milton's preliminary fourth'quarter financial report March 10, reporting that many funds closed the year with revenues above budget and several major projects continuing into 2025.

"These are preliminary numbers and some amounts will change as we do our review of the year's activity and prepare the final annual financial statements that are submitted to the state auditor's office by May," Director Robick told council. He said the general fund showed revenues exceeding budget (reported in the presentation as 17% over budget) while expenditures ran at about 91.7% of budget; the largest revenue driver was licenses and permits, driven by a few large building permits.

Robick said facilities and other central services exceeded budgets because of higher wages, professional services, utilities and insurance, and that an indirect cost allocation calculation will be adjusted for categories more than 15% over or under budget. He said that adjustment will change the administrative line that currently appears negative in the draft statements.

Other highlights Robick presented: - Asset replacement, street, and rainy day funds showed positive fund balances and revenues above budget in part because of higher interest and occasional asset sales. - The parks impact fee fund had revenues at about 65.1% of budget with no budgeted expenditures, allowing the fund balance to grow. - The Capital Improvement Fund recorded work in progress on major projects including SR 99 and Porter Way intersection improvements and TIB street overlays; Robick said $1,700,000 has been received to date in 2025 related to those projects. - Electric, water and stormwater operating and asset replacement funds were generally within or under budget for expenditures, with transfers in increasing in line with improved utility revenues. - The vehicle repair and maintenance fund remains under budget but Robick noted outstanding 2024 work orders are still being entered and may increase recorded expenditures before final statements are submitted to the state auditor.

Council members asked whether known overages were carried into the 2025 budget. Robick said staff reviewed trends while preparing the 2025 budget and increased some line items, particularly in facilities and central services, to reflect anticipated costs. Council member White asked whether similar overages were expected in 2025; Robick said staff had increased budgets in certain line items in anticipation of continued pressure but it was too early to see full trends.

On a separate operational question, Director Robick said the city will bring a consultant contract to council on April 7 to finalize an electric rate study and to revisit transfer station and substation siting and interconnection options with PSE.

Ending

Robick and council agreed the numbers will be finalized as staff completes year'end entries and prepares the audited financial statements for submission to the state auditor's office. Council members thanked staff for the detailed report and asked for any follow'up detail as the final statements are prepared.