Pasco staff outline mid‑biennium budget adjustments totaling $130 million in revenue, $75 million in expenses

Interim Finance Director Garcia presented the City of Pasco’s proposed mid‑biennium adjustments at the Nov. 24 council workshop, reporting proposed citywide revenue increases of about $130,000,000 and increased expenditures of about $75,000,000 across all funds.

Garcia said a substantial portion of the revenue change reflects investment income gains and a one‑time receipt of energy tax credits that total roughly $66,000,000 but "that funding...comes with some liabilities," so staff treat it as constrained in use. She also flagged a $900,000 increase tied to a recent utility tax change and a $3,000,000 estimate to cover increased employer medical premiums across funds.

On the expense side, staff highlighted pressures in the ambulance fund tied to a recent contract agreement and declining permitting revenues in development funds. Garcia said the reuse facility fund and the economic development fund reflect large technical adjustments tied to rate model updates and prior transfers: "So that increases revenues by 42,000,000 and also increases expenses by 45,000,000," Garcia said of the reuse fund adjustments.

Council members asked clarifying questions about the composition of available fund balances, restricted versus assigned funds, and the city’s minimum fund balance policy. Staff explained a portion of the apparent total is restricted by bond covenants or designated for specific liabilities and that the displayed citywide numbers combine multiple funds. Garcia said staff will provide additional detail and that the package will return for formal action on a future consent or regular meeting agenda.

Next steps: staff will provide detailed fund‑by‑fund breakdowns and return to council for formal budget amendments.