Melinda Morel, Kenmore’s finance and administration director, presented the city’s mid‑biennial budget amendments during a Nov. 10 public hearing, telling the council the changes respond to updated revenues and program needs under state law (RCW).

Morel said the amendments recommend $1,500,000 in additional general‑fund revenue — largely from building permits and higher development activity — and $954,000 in increased expenditures, leaving a net positive impact of about $511,000 to the general fund. Major expenditure additions include $300,000 for consulting services to cover staff departures and workload, an adjustment for higher police costs (including an estimate for body‑worn cameras), and a proposed fully loaded information‑technology position (~$180,000 annually).

The presentation outlined fund‑level adjustments across the budget. Morel described significant photo‑enforcement revenues added to the CAPE fund (roughly $1 million in actuals for the year and a forecasted $1 million annually), which are being allocated to court costs, VeriMobility vendor costs, and transportation/pavement preservation. She also noted a sizable conservation‑fund grant included in the CIP (about $7 million) and other right‑sizing changes across impact‑fee and capital funds.

On compensation, Morel recommended adjusting the salary plan by 2.7% effective Jan. 1, 2026, tied to the regional CPI‑W index the city uses each year. Councilors asked whether that recommendation was regional and how it related to the budgeted 5% cushion; Morel confirmed the recommended increase is 2.7% and the budget had conservatively included 5% earlier to account for uncertainty in health‑care costs.

Morel said the council will see more detailed work plans on some projects — notably electric‑vehicle infrastructure — in January after staff formalize priorities and funding. She also told the council the city has supplemented its accounting for interest allocations and adjusted transfers between funds to correct prior allocations.

The public hearing on the amendments closed with no in‑person testimony. No final adoption vote was taken that night; Morel said she will return to the council at the scheduled adoption date (Nov. 24) with the ordinance and any additional clarifications.

What’s next: The council will consider formal adoption of the mid‑biennial amendments and the updated salary plan at the planned Nov. 24 meeting.