Finance director reports 2024 year-end: most funds positive, CIP affected by grant timing

Martin Shaw, the city’s finance director, presented the North Bend City Council with the 2024 year-end financial status report on Jan. 21, 2025, saying that “all funds ended with a positive fund balance” while noting the Capital Improvements Fund finished the year with a slight negative balance because of the timing of grant reimbursements.

Shaw told the council that the general fund reported about $12,600,000 in total revenues versus $12,800,000 in operating expenses for 2024, leaving a year-end fund balance of roughly $5,300,000 compared with $5,600,000 at the start of the year. He said those figures are preliminary in part because staff had to estimate December sales tax and property tax amounts pending final distributions.

Shaw highlighted several funds and trends: the impact‑fee fund closed 2024 at about $9,100,000, down from a beginning balance of $9,800,000; the Capital Improvements Program (CIP) fund ended with a deficit of about $300,000 tied to grant reimbursement timing (Shaw said about $1,500,000 in grant revenues had been collected against roughly $4,000,000 in total revenues and about $5,000,000 in capital expenses to date); and the municipal real estate excise tax (REET) program closed slightly under budget (Shaw described a seasonal pattern of higher activity in spring and summer and noted that a single large sale affected July 2024 averages). For example, Shaw said June 2023 showed 18 transactions with an average sales price just over $1,000,000, while July 2024 reflected 17 transactions with an average sales price of about $854,000.

Enterprise utilities (water, sewer and stormwater) all ended 2024 with positive fund balances but at lower levels than the start of the year, Shaw said. He noted the water utility implemented a 5.5 percent rate increase in 2024 but revenues remained roughly flat, and the city is undertaking a utility rate study with results expected in late Q1 2025. Internal service funds were described as healthy: the equipment operations fund ended slightly above budget at about $275,000 and the equipment reserve at about $1,900,000 versus a budgeted $1,500,000.

Shaw recommended continued monitoring of economically sensitive revenue sources — notably sales taxes, real estate excise taxes and development fees — and cooperation with public works as the city completes the utility rate study. Council members had no further questions after the presentation.