Sequim posts strong 2024 finances, spends nearly $10 million on capital projects

Finance Director Sue Hagener presented an overview of the City of Sequim’s fiscal-year 2024 performance to the Sequim City Council, saying the citywide budget finished the year with higher-than-expected revenues and reserves and “a very robust capital improvement program.”

Hagener said the city’s operational funds — including the general fund, street operations, and water and sewer utilities — finished 2024 with strong revenues and expenditures below budget. The general fund reported $13,100,000 in revenues, about $416,000 (3%) over budget, and an ending fund balance of $3,971,000, she said.

The surplus and capital spending matter because they give the city options for paying down debt or advancing projects. Hagener told council members that Sequim’s capital spending accelerated in 2024 after staffing and supply-chain constraints eased: the city expended almost $10,000,000 on capital projects, the largest single-year total she has seen in her time with the city.

Hagener outlined the revenue drivers. Sales tax — the largest tax source for the general fund — generated about $4,500,000 in 2024 and accounted for roughly 53% of general-fund tax receipts. Utility taxes produced about $2,000,000. Other revenues affecting the general fund included intergovernmental grants (about $86,000 over budget, tied to comprehensive-planning work and police-accreditation grants), licenses and permits (182 permits issued in…