Finance director says Sequim finished 2025 with strong revenues, reserves and record capital spending

Finance Director Sue Hagener told the Sequim City Council that the city “performed very well in 2025,” reporting stronger-than-expected revenues, reserves within policy and record capital spending, while noting the figures are unaudited and will be reviewed by the state auditor.

Hagener said the general fund began the year with $3,900,000 and finished with about $3,200,000 in reserves (approximately 91% of the policy maximum). She said overall general fund revenues exceeded budget by roughly $217,000 and highlighted one-time and volatile sources—lodging tax and real estate excise tax—as contributors to the strong result: lodging tax came in about $60,000 over budget and real estate excise tax was nearly $400,000 above expectations.

The presentation emphasized sales tax as the largest single general-fund tax source, with retail making up about 60% of sales-tax receipts; Hagener reported…