Title
Approval of an Ordinance Adopting the 2025 Operating, Special Funds, Capital Budget and Capital Facilities Plan: 2025-2030 Financial Plan
Recommended Action
Committee Recommendation:
The Finance Committee recommends adoption of the 2025 Operating, Special Funds, Capital Budget and Capital Facilities Plan.
City Manager Recommendation:
Move to approve on second reading, the Ordinance adopting the 2025 Operating, Special Funds, Capital budgets and the Capital Facilities Plan: 2025-2030 Financial Plan.
Report
Issue:
Whether to approve on second reading, the Ordinance adopting the 2025 Operating, Special Funds, Capital budgets and the Capital Facilities Plan: 2025-2030 Financial Plan.
Staff Contact:
Joan Lutz, Budget and Finance Manager, 360.753.8760.
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Background and analysis did not change from first to second reading.
State law requires the City Manager to present a balanced Preliminary Operating Budget and Capital Budget to Council each year. By State law, the budget must be adopted no later than December 31. The City Council’s Finance Committee met throughout the year to review, discuss and provide direction to the City Manager on the 2025 Preliminary Operating Budget, Capital Budget and the Capital Facilities Plan (CFP) which includes the 2025-2030 Financial Plan.
Operating Budget
The Preliminary Operating Budget was presented to Council on October 8, 2024. A public hearing on Ad Valorem was held on November 12, 2024, amended on November 19, 2024, and a public hearing on the Operating Budget on October 29, 2024, and November 12, 2024. Finance Committee met on November 18, 2024, to prepare a final recommendation which was presented to the full Council on November 19, 2024. Since the Preliminary Operating Budget was presented adjustments in revenues and expenditures were made. Major changes to the Operating Budget were discussed with Council on November 19, 2024, and are included in the Ordinance.
Capital Budget and Capital Facilities Plan: 2025-2030 Financial Plan
The Capital Facility Plan (CFP) is a chapter in the City’s 20-year Comprehensive Plan adopted by Council in 2014. The CFP portion of the Plan is updated annually. The first year of the six-year financial plan serves as the City’s annual Capital Budget.
Council received a briefing on utility rates, general facility charges and impact fees, including the Olympia School District and North Thurston School District’s impact fees on October 29, 2024. Major changes to the Preliminary Capital Budget and 2025-2030 Financial Plan were discussed with Council on November 19, 2024, and are included in the Ordinance.
Special Funds
The budget also includes Special Funds, such as Home Fund, Lodging Tax, Parking & Business Improvement Area, Farmers Market Repair and Replacement and Hands on Children’s Museum. Since the Preliminary Operating Budget was presented on November 19, 2024, changes in revenue and expenditures were adjusted and are included in the Ordinance.
Climate Analysis:
No specific climate impacts are identified. However, the 2025 Operating Budget contains funding to continue our Climate Work Plans.
Equity Analysis:
No specific equity impacts are identified. However, the 2025 Operating Budget contains funding to continue our internal/external Equity Work Plans.
Neighborhood/Community Interests (if known):
City Council held public hearings on October 29, 2024, to hear testimony on the Capital Facilities Plan and 2025-2030 Financial Plan. Council also held public hearings on October 29,2024, and November 29,2024, to hear testimony on the Preliminary Operating Budget.
Financial Impact:
Total 2025 Appropriations
Operating Funds $ 220,547,256
Special Funds $ 21,974,019
Capital Funds $ 66,729,718
Total $ 309,250,993
Options:
1. Move to approve the Ordinance adopting the 2025 Operating, Special Funds and Capital budget and the Capital Facilities Plan: 2025-2030 Financial Plan.
2. Direct staff to make changes to the Ordinance and/or the Capital Facilities Plan: 2025-2030 Financial Plan and move to approve with amendments.
Attachments:
Ordinance