Edmonds holds public hearing on mid‑biennium budget modification as residents press for transparency

The Edmonds City Council opened a public hearing on proposed mid‑biennium modifications to the 2025‑26 budget on Oct. 7, after a finance presentation and a series of public comments urging greater transparency about revenues and service reductions.

Finance staff presented an August financial report showing sales tax roughly flat with a modest uptick from last year and an ongoing review of capital project reporting. Director Gould told the council the general fund picture is affected by one‑time actions, including an interfund loan, and said staff are working to clean up capital project dates and cost allocations in follow‑up reports.

Residents who testified pressed several concerns. "In the modified budget, there's a $2,300,000 shortfall in revenue for the general fund in the interfund service charges line item," said Jim Oganowski, a resident participating remotely. Other commenters echoed demands for a publicly available recovery plan and asked the city to explain how it would identify a previously announced target of $5 million in net new non‑tax revenue.

Mayor Rosen and the City Administrator described the modification as an amending process that adjusts the two‑year budget to reflect new information and priorities. The proposed revisions package includes targeted restorations and new positions in police, parks, planning, public works and the court, plus transfers to support overlays and sidewalk work.

Council members pressed staff for more detail about the interfund service charges and capital project timing; Director Gould said staff are working with Public Works and Finance to identify which delayed projects shifted revenue and expense between years and that some revenue timing may push into 2027. Several council members said they want updated monthly reports and a clearer breakdown of restricted revenues.

The council began deliberations on department packages the same night and approved or amended several department requests (see separate items). Non‑departmental items were tabled for additional written documentation. Council scheduled a continuation of deliberations for Oct. 8 at 5 p.m.

The city posted the modification booklet, supporting spreadsheets and slides online and on the meeting table; staff said they will return with more detailed capital project and interfund charge reconciliations.