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Controller: proposed budget shows $11.2 million general fund gap, $147.1 million total expenses
Summary
Controller McClellan presented a general fund snapshot showing $54.0 million in proposed revenues and $65.2 million in proposed expenditures (an $11.2M gap), described personnel as the main budget driver, and outlined timing and constraints for bonds and budget adoption.
Controller (Comptroller) McClellan presented the city's budget numbers and fiscal context at the Aug. 18 hearing, saying the proposed general fund revenues for the coming year are "$54 million" with proposed expenditures of "$65.2 million," yielding an $11.2 million difference. She described personnel costs as the primary driver of the budget and summarized enterprise‑level totals: personnel $82.1 million, supplies $8.5 million, other services $41.7 million and capital outlays $14.9 million for total expenses of $147.1 million.
McClellan highlighted revenue composition: an estimated $44.8 million in property taxes (including bond funds), local income tax (LIT/"lit") contributing roughly $39.7 million (about 33% of total revenues) and user fees about $13.1 million. She also stated that bank interest estimates were reduced from current levels (projected $4.7 million versus recent higher actuals) and that previous supplemental LIT and interest windfalls had boosted 2024 actuals.
McClellan outlined calendar and legal constraints tied to SEA1: the city cannot issue new short‑term GO debt until at least 2027 and must adopt new rates by Oct. 1, 2027, with rates defaulting to zero if not readopted. She said the controller's office moved several interfund transfers into its budget for bookkeeping clarity (Jack Hopkins, sidewalk committee, vehicle replacement and a new Fiber Connectivity fund). McClellan said staff and council would continue to examine revenue options (sanitation rate adjustments, user fees and a municipal wheel tax or surtax) and that departments would present the detailed tradeoffs behind recommended cuts and reallocations in subsequent hearings.
Councilmembers asked follow‑up questions on COLA assumptions, reserve levels and budgetary basis schedules; McClellan said the controller's office will provide supplemental schedules and more detailed analyses on request.
