Shoreline staff outline $83.4M in carryovers, project a $61.5M general fund balance; ordinance slated for May 5 vote

Shoreline city staff on Monday discussed Ordinance No. 1030, a combined carryover and budget‑amendment ordinance for the 2025–26 biennium, and presented the city’s unaudited 2024 year‑end financial results.

Joe Branstetter, Administrative Services Director, and Christy Hopkins, the city’s budget and tax manager, told the City Council the staff package consolidates prior separate carryover and amendment ordinances and would be scheduled for formal action on May 5.

Hopkins said carryovers are largely for unfinished projects that require one‑time funding into the new biennium. “Carryovers are used for 1 time purchases of projects that were not completed in the last biennium and need to be carried over into the current biennium,” she said. In aggregate, staff reported a total change in appropriation of about $83,400,000 and additional resources of roughly $88,500,000; capital project carryovers alone were described as being on the order of $63,000,000.

The presentation showed the city’s projected general fund ending balance at about $61,500,000; after reserves, contingencies and amounts set aside for one‑time projects included in the amendment, staff projected an available ending balance near $19,250,000.

The report also summarized 2024 activity across funds: sales tax and business‑and‑occupation receipts were close to 2023 levels, while development revenues were down. Hopkins said the city ended 2024 with expenditures below budget largely because many capital projects remain unfinished and are being carried into the 2025–26 biennium.

Councilors asked several follow‑up questions during the discussion. Council member Ramso asked about a Washington State Department of Ecology e‑bike grant that must be spent by June 30, 2025, noting the short timeline and asking how much of the grant has been expended. Hopkins and Branstetter said staff are still sourcing suppliers to accelerate procurement. Ramso asked, “what has... where does that program stand right now? ... how much of that money has been spent so far.”

Councilor Muscovy asked about the “Westside transformation project,” and staff confirmed this refers to work in the 140th–170th area. Councilor Robertson and other councilors praised the clarity of the financial presentation.

On public safety and justice costs, John Norris, assistant city manager, explained that the city contracts with King County District Court for municipal court services. “The city pays, through contract for municipal court services to King County District Court, so judge, clerk, all of that is 1 contract,” Norris said. Councilors probed whether recent reductions in court‑related costs reflected a drop in services such as probation; staff said some savings in court services were due to caseload and staffing patterns and that probation costs could increase as the county completes a time study.

On sales tax trends, the staff packet anticipates a 6.5% drop in sales tax receipts for 2025 compared with 2024; staff noted a two‑month reporting lag and that January receipts showed about a 3.5% decrease versus 2024. Staff said they are monitoring economics and would return to council if early 2025 data signaled a need to adjust assumptions for the biennial budget.

Other details in the presentation: REET (real estate excise tax) was up roughly 13% year‑over‑year in 2024 but is budgeted lower for 2025; general fund grants were carried over because many are cost‑reimbursement projects (Sound Transit was cited as an example); and the Shoreline self‑storage project remains revenue neutral, though staff will return with a discussion about extending a bond‑anticipation note.

There was no formal action on Ordinance No. 1030 at Monday’s meeting; the council will consider the ordinance on May 5.

Earlier in the meeting the council adopted the agenda and approved the consent calendar by roll‑call vote (6–0).