University Place reports Q4 revenues above budget as council presses for clarity on street‑funding uses

University Place officials presented their fourth‑quarter 2025 financial report at a May 4 study session, telling council that revenues exceeded budget estimates while spending lagged.

Finance Director Leslie Blazdale introduced the report and Deputy Finance Director Grace (Grace O) walked the council through key figures: general government revenues were 7.03% above the 2025 budget estimate and fourth‑quarter expenditures were 12.56% below budget. Sales tax revenue exceeded 2025 estimates by 15.6%, utility taxes were 6.45% above estimates, and investment interest earnings rose 24.25%, a figure staff attributed in part to ARPA dollars remaining invested longer than planned because sewer projects spent later than expected.

"Overall, the city's fourth quarter general government revenues came in 7.03% above budget estimates," Grace said during the presentation.

Council members used the presentation to press staff for additional breakdowns. Council Member Figureroa asked about the so‑called "1406" funds restricted for affordable and supportive housing; staff said those receipts amount to roughly $25,000–$28,000 annually and are being allowed to accumulate because small annual amounts are limited in purchasing power.

Figuro (Council member) also raised concern about parking meter receipts, which were below budget expectations, and asked economic development staff to investigate whether patrons are opting for free parking options instead.

Miscellaneous revenues showed a large year‑over‑year increase; staff explained the spike included IRS clean energy credits tied to electric vehicle chargers purchased in 2024 and sponsorship receipts for the city's 30th birthday festivities. Development services fees were 6.39% over budget and expenditures in that fund ran below estimates.

On the expenditure side, staff said several departments were under budget because planned travel and professional services were postponed, and public works carryforward is expected for pavement management work and street‑light deliveries delayed into the new year.

Council asked for clearer reporting on Transportation Benefit District (vehicle license fee/TBD) uses after questions about whether TBD funds are limited to pavement maintenance. Staff reminded the council that Resolution 1054 (adopted Oct. 7, 2024) created the fee with a primary emphasis on pavement maintenance on residential streets, with secondary emphasis on collectors and non‑grant projects; the resolution also included broader language allowing council to authorize transportation improvements as needed. City staff read section three of that resolution aloud to clarify allowable uses.

"The revenue received from the vehicle license fee shall only be expended on transportation projects and activities authorized by the city council with a primary emphasis on pavement maintenance on residential streets," a staff speaker read from the resolution.

Councilmembers asked staff to provide a future line‑item or project‑level breakdown showing how many TBD dollars are spent on residential streets versus other eligible uses and requested a report on parking‑meter performance and the accumulated 1406 housing funds.

Next steps: staff said they will provide follow‑up reports with more detailed allocations for TBD spending, a status update on REET and carryforward CIP items, and the city manager noted a June 16 groundbreaking for the Grand View Senior Living Project.