Kennewick reviews 2024 finances; council told $55.8 million in capital carryovers and elevated reserves

Kennewick Finance Director Jessica Platt told the Kennewick City Council at a May 27 workshop that the city ended the 2023–24 biennium in a stronger financial position than projected, with higher revenues, elevated reserves and roughly $55.8 million in recommended carryovers and spring budget adjustments.

Platt said the presentation was “a high level overview of the 2024 financial results for the city,” and she highlighted three central points: revenues finished above budget, operating reserves exceed policy targets, and significant capital projects will be carried into 2025 for which the council will be asked to appropriate funds.

The review covered the city’s fund structure, operating results, enterprise funds and capital program. Platt said the city’s adjusted 2023–24 budget covers 27 funds and that taxes remain the largest revenue source citywide. In the general and street funds she reported modest revenue growth year-over-year and said property tax collections increased in 2024 — driven largely by new construction — while utility-tax receipts fell about 2 percent, which staff attributed in part to a milder winter.

Platt reported that the city’s ending general-fund balance was higher than estimated: “We were estimating that we would end the biennium with $11,700,000, and we’re ending the biennium at $15,600,000,” she said. The city’s budget policy target is a 7.5 percent reserve; Platt said, “we have a budget policy of 7.5% reserve target which we’re definitely meeting and well exceeding,” and that a strategic…