Finance director presents 2026 budget amendment noting $2.4M variance in beginning fund balances

Finance Director Kristen Reed told the Enumclaw City Council on June 22 that the city is presenting its first 2026 budget amendment to reconcile estimated and actual beginning fund balances.

Reed said the variance between estimated and actual beginning balances was "almost $2,400,000," primarily because projects expected to finish by fiscal year-end were not completed and funds rolled over into the current year. She said the amendment increases revenues by about $1,400,000 (largely grant rollovers) and increases expenses by about $2,600,000, producing an increase in the projected ending fund balance of just over $1,000,000.

The amendment includes temporary staffing adjustments to support the city's implementation of new financial software: increasing a media services technician position from 0.5 FTE to 1.1 FTE and adding a 0.5 FTE administrative specialist in finance while the rollout completes. Reed said most items in the amendment had been previously visible through the consent agenda but highlighted the staffing and fund-balance changes for council attention.

Why it matters: The amendment updates the city's fiscal plan for 2026 to reflect actual project timing and grant rollovers and includes temporary personnel changes. Because this was the first reading, council members may ask questions or propose changes before final adoption.

Next steps: The ordinance was presented by title for its first reading; staff offered to answer questions and will return with the ordinance for final consideration at a later meeting.