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Pullman reports flat revenues, leans on reserves after midyear financial review
Summary
City finance director told the council midyear revenues have flattened and expenses rose, creating a budget gap that will rely on cash reserves unless trends reverse in 2026.
Jeff Albrecht, Pullman’s finance and administrative services director, told the City Council on Aug. 12 that general fund revenues have flattened after post‑COVID growth and that the city is using cash reserves to balance a deficit budget for 2025.
Albrecht said the city’s general fund stood at about $14.7 million through midyear, roughly $200,000 more than the same time last year but about $1.7 million below the 2025 budget because of timing and underperforming receipts. He cited timing differences of roughly $1.3 million and a remaining variance of about $400,000. Property tax—a stable revenue that makes up about 31% of general fund revenue—was essentially flat, he said, while sales tax, Pullman’s second‑largest revenue source, showed a slight dip compared with the budgeted figure.
The finance director warned that much of the city’s operating expenses have continued to grow and that partners and vendors are passing along cost increases for utilities, insurance and other services. Albrecht reported $15.5 million in general fund expenditures through midyear, slightly under the budgeted pace, but added that overall expenses have outpaced revenues since capital spending returned to more normal levels after COVID reductions.
Albrecht told council members the city budgeted for $2.5 million in capital projects in 2025 and had spent about $800,000 of that so far. He noted public safety and parks are the largest general fund cost drivers and that about 71% of operating expenses are personnel. The finance director said the city’s cash balances remain above policy targets today but cautioned that if current revenue trends continue into 2026 the city may fall below target reserves.
Council members asked for clarifying details. Councilmember Wright requested the reserve percentage; Albrecht estimated the city’s reserves were in the mid‑teens to about 20% of operating expenses, “still above our target” but trending downward. Councilmember Weller asked about the capital improvement program (CIP); Albrecht said the CIP budget spans multiple funds and noted that the six‑year CIP includes only the first year as a budgeted amount. Councilmembers also discussed possible budget amendments later in 2025 if revenues do not improve.
Albrecht and Mayor Weller said staff will continue to monitor revenues and expenses over the next three to six months and that department heads are actively pursuing expense controls. The city will consider whether a midyear budget amendment is necessary before finalizing 2026 budget planning.
