Sequim council waives second‑touch on 2025 budget amendments; staff to hold public hearing

Sequim Finance Director Sue Hegener told the City Council on Oct. 13 that the city’s beginning General Fund balance and permitting revenues came in higher than expected, and staff is proposing one‑time uses and transfers to address service and capital needs.

Hegener said the proposed amendments would increase transfers to the Street Operations Fund, roll forward unused budget for the Spruce Street parking lot, boost the equipment reserve for planned IT and machinery purchases, expand funding for growth‑planning professional services tied to the Comprehensive Plan and COTA updates, and add appropriations for higher WCIA insurance assessments and several unanticipated software subscriptions and IT salary changes.

“We tend to be very conservative when we budget our resources,” Hegener said. “As it turned out, we have a much bigger beginning fund balance in our General Fund than we expected, and we have some unexpected permitting revenue.”

The presentation said the amendments would also increase police overtime appropriations and carry forward prior‑year purchases that will be paid this fiscal year. Hegener said staff recommends renumbering and appropriating an employee flexible spending fund to comply with state audit guidance and the BARS manual.

City Attorney Christina Nelson Gross explained the city’s recent WCIA (Washington Cities Insurance Authority) assessment increases result from both poolwide actuarial calculations and a rolling five‑year average of member claims. Gross said the recent spike in assessments should not be the new normal after adjustments by WCIA and its executive committee.

The City Manager’s office also told council it would pause the Civic Center second‑floor remodel and instead prioritize temporary improvements to public works staff workspaces. City Manager Matt Huish said the pause is intended to address immediate health and safety concerns; staff are evaluating portable building options to provide dry, heated workspaces for crews through the winter while the department develops plans for a long‑term shop remodel.

Councilors moved and seconded a motion to waive the council’s second‑touch requirement and direct staff to schedule a public hearing on the amendments at the next regular meeting. No councilor voiced opposition and the motion passed.

The city’s staff packet and Hegener’s presentation outline specific line‑item requests; council was reminded that formal adoption of the amendments will require five affirmative votes at the hearing per statute and council rule. Staff will present the amendments for public comment and a formal vote at the scheduled hearing.