Renton finance staff outline mid‑biennial budget adjustments; recommend ending in‑house electronic home detention program

Carrie Roller, finance administrator for the City of Renton, presented the city’s mid‑biennial budget adjustments at a Committee of the Whole meeting, saying the package covers updated revenue forecasts, a property‑tax levy estimate and several proposed staffing and capital funding changes.

Roller said next year’s property tax levy is estimated at about $26,600,000 — an increase equal to the 1% allowed by law — and that the city must have the levy communicated to King County by Nov. 30. She estimated that, using current assessed values, the levy would add roughly $5 per year in city property taxes for a median Renton home she quoted as $722,000 in assessed value.

The changes Roller proposed would raise general‑fund revenues by about $19,500,000 across the biennium, including a $1,000,000 increase to sales‑tax revenue each year, a proposed increase to business (B&O) tax collections of $4,000,000 in 2025 and $3,000,000 in 2026, and higher projected utility tax receipts tied to electricity. Roller said investment earnings are performing better than previously budgeted and proposed raising those revenue estimates as well.

Roller proposed expenditure changes that include a $13,000,000 transfer from the general fund to capital to complete a parks property purchase near the community center and a $1,500,000 annual transfer to reserves. She noted the city is required to maintain a general‑fund reserve equal to 12% of costs and said staff are planning to slowly increase reserves toward industry guidance near 17%.

On public safety funding, Roller included the revenue from a public safety sales tax the council approved last week and proposed a placeholder $3,200,000 expenditure next year tied to that revenue; she said staff will return to council next quarter with a comprehensive plan for spending that revenue. She also proposed allocating $350,000 of that new sales tax revenue to fund an additional prosecuting attorney and a paralegal in the city attorney’s office to meet immediate needs.

Roller recommended discontinuing the city’s in‑house electronic home detention program, saying the program costs roughly $600,000 annually in equipment rental and staffing and that the city’s collection rate on home‑monitoring fees is low. “We’re 1 of the last cities to have this program in house,” Roller said, adding the city collects about 20% of fees and currently carries more than $500,000 in outstanding receivables for the program, which she said could rise to about $550,000 by year end. She told council that other jurisdictions outsource the program and that private providers are available.

Staffing proposals include creating a code compliance manager and an assistant building official (both reporting to the building official); converting an administrative secretary position in Community & Economic Development into an engineering specialist; removing two non‑commissioned positions in the police department as part of the home‑detention change; replacing a vacant museum manager position with a recreation supervisor in Parks & Recreation; and creating a human services director position to replace the human services manager and add community outreach responsibilities.

Roller also presented the results of a nonrepresented employee salary study. She said the study reduced pay grades from 53 to 32, identified pay compression issues and proposed increasing next year’s budget for nonrepresented salaries by about $1,500,000. David Topaz, human resources administrator, explained “compression” as a narrowing in pay between supervisors and subordinates caused over time by differing pay adjustments and new positions.

Other adjustments in the proposal include capital additions for Legacy Square Phase 2, transportation projects (Oakesdale Avenue SW, SW 40th Street and a Sound Transit pedestrian signal), a surface‑water pump station at Rainier Avenue and Oaksdale, and a taxiway Alpha rehabilitation at the airport. Roller said the special capital fund created for the Family First Community Center is proposed for removal because that project is complete. Fee changes proposed include an increase in golf green fees, an increase in fire impact fees per the Renton Regional Fire Authority request, and setting the school district impact fee to $0 per school district direction. Roller also noted higher than expected fleet fuel and repair costs and proposed raising related budget lines.

Roller closed by noting the council will hold the first of two public hearings on the adjustment at the council meeting that evening, with a second hearing next week, and that staff will return with final ordinance language; she reiterated the deadline to set the property tax levy with King County is Nov. 30.