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Redmond first-quarter financial report shows modest projected general-fund deficit, large capital program ahead
Summary
Deputy City Manager/CFO Jason Neff told council the city had spent 25% of its operating budget through Q1 and projects a roughly $150,000 operating deficit for the year while highlighting ~$360M in near-term major projects and planned debt issuance for airport-related work.
Deputy City Manager and Chief Financial Officer Jason Neff presented the city’s first-quarter financial report, telling the council that overall operations are tracking near expectations but that several large capital projects are driving the multi-year budget outlook.
Neff said the city had spent about 25% of its operating budget through the first quarter and that the general fund is projecting an operating deficit of approximately $150,000 (less than 1% of operating expenses) but that historical performance suggests the city is likely to work back toward breakeven by year-end. He noted the wastewater fund is intentionally surplussing to prepare for future debt service on the Redwood Wetlands complex and that the airport is trending with a projected operating surplus (he cited a roughly $7 million surplus and year-over-year passenger increases of about 6%).
Neff highlighted that five major projects will drive roughly $360 million in spending over the next few years and that capital spending this year is forecasted at around $106–$129 million depending on scope. He reiterated the city’s plan to posture for debt issuance next summer to support airport and other capital needs.
Councilors asked about long-term airport passenger growth forecasts; staff said the long-term forecast was near 2.7% and reviewed assumptions behind the airport’s planning numbers.
