Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Financial Report topic
No spam. Unsubscribe anytime.
Sequim finance director: Q1 shows cyclical cash outflows but property taxes and rising permits should restore balances
Summary
Finance Director Sue Hegener told council that first‑quarter results showed typical seasonal cash outflows and a general‑fund starting balance about $670,000 below budget, but a $715,000 property‑tax receipt and recent permit invoicing have brought the fund back into policy compliance and may improve projections for Q2.
Finance Director Sue Hegener presented Sequim's Q1 2026 financial report at the May 11 meeting, telling council the first three months of the year are often volatile because many annual payments fall early in the fiscal year.
“We started off the year a lot lower than we thought,” Hegener said, noting the general fund began roughly $670,000 below what had been budgeted because of year‑end amendments and timing differences. She emphasized that first‑quarter positions can be misleading and the city has nine months to pivot if trends change.
Hegener flagged two near‑term items that improved the outlook: permitting staff have recently generated a significant number of invoices that, once paid, will increase cash inflows; and Clallam County property‑tax receipts of $715,000 arrived in late April/May, which returned the fund balance to compliance with the city's fund‑balance policy.
On expenditures, Hegener reported that most expenses remain under budget but intergovernmental costs—principally a criminal‑justice contract with Clallam County—are an explainable pressure that likely will require a budget amendment later in the year. She also said equipment reserves and the sewer fund are healthy, while the water fund's balance looks "a little wonky" but is expected to correct by second quarter.
Hegener closed by urging council that the report represents a short‑term view: "any single large event can have a significant impact" in a three‑month window, and she said staff will return updated reports as quarter‑two closes.
