Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Council hears carryover and B&O update; staff to return with carryover amendment
Summary
Finance staff reported a stronger-than-expected 2024 closing, presented proposed 2025 carryover/beginning-balance allocations and updated the council on the city’s newly implemented business (B&O) tax; staff will bring a carryover amendment to the council for approval next week.
Finance staff presented the city’s year‑end closing and proposed carryover (beginning balance) adjustments for 2025 and provided an update on the city’s newly implemented business and occupation (B&O) tax.
City finance staff said the city closed 2024 with an ending general‑fund balance slightly above $10 million — higher than the amount assumed in the 2025 budget. Because revenues exceeded earlier estimates, staff proposed allocating part of the surplus to capital reserves and carrying program‑specific funds forward into 2025 where expenditures remain unfinished. The mayor and council discussed options including moving $1.5 million to capital reserves to reduce future debt needs.
Why it matters: Staff said the stronger closing gives the city flexibility to fund immediate capital needs without increasing debt, but council members stressed they want deliberation before approving new recurring staff or policy changes in the middle of the year.
Key figures and program notes from the presentation: staff reported a 2024 general fund ending balance slightly above $10.0 million and proposed carryover items including park projects, Knoll Road work and design for the Poulsbo Event and Recreation Center. Staff proposed sending a comprehensive carryover amendment (the formal budget beginning‑balance update) to council for placement on the June consent agenda. Council generally supported moving routine carryover items to consent while asking for separate, focused discussion of substantive new budget requests (for example, a proposed code‑enforcement position).
B&O tax update: Finance staff reviewed year‑one activity on the city’s B&O tax. For 2024 (partial year of collection) the city collected roughly $504,000, exceeding the mid‑year estimate. For early 2025 staff reported roughly $347,000 received to date (timing differences apply) and said the council’s 2025 B&O budget projection ($1.0 million) is conservative but achievable. Staff described outreach, the file-local online filing system, the city’s decision to waive penalties for late 2024 filings during the transition and the complexity of local apportionment rules for businesses with multijurisdictional customers.
