Finance director says midyear revenues lag budget; staff reduced $3.1M in operating costs

Jeff Albrook, Finance Administrative Services Director, presented Pullman’s midyear financial update and told the council the city’s general-fund revenues are “about a little over $800,000 under budget” through the first six months of the year. He said roughly 40% of city revenue comes from taxes and that sales- and permit-related receipts have fallen primarily because local construction activity has slowed.

Albrook walked through internal controls and fund accounting and explained timing differences that make grant-funded projects appear to push expenses ahead of reimbursements. “Construction has probably had the biggest impact,” he said, adding that sales-tax declines linked to construction and permit activity explain much of the revenue shortfall. He noted the city reduced or delayed capital projects and that staff implemented operating reductions: “We reduced operating expenses by about $3,100,000,” Albrook said, and described additional staffing actions including a voluntary separation program in which six employees completed the program and four had already separated.

Councilors asked for clarification on timing versus permanent reductions and on how the city compares with peer university towns. Albrook directed members to the state auditor’s FIT tool for comparisons and said some revenue increases (utility rate changes and a criminal-justice tax) will show up later in the year. He recommended continued monitoring and said expense-control measures have yielded savings but that revenue limits will require reassessment during the 2027–28 budget cycle.

Next steps: staff will continue monitoring revenue timing and bring refinements to the budget process as the council prepares for the next biennial budget.