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File #: 26-0126    Version: 1
Type: discussion Status: Filed
File created: 2/12/2026 In control: Finance Committee
Agenda date: 2/23/2026 Final action: 2/23/2026
Title: Budget Spotlight: Quarterly Report Items
Title
Budget Spotlight: Quarterly Report Items

Recommended Action
Committee Recommendation:
Not referred to a committee.

City Manager Recommendation:
Receive a Budget Spotlight presentation related to Quarterly Report Items.

Report
Issue:
Whether to receive a Budget Spotlight presentation related to Quarterly Report Items.

Staff Contact:
Joan Lutz, Senior Budget and Finance Manager, 360.753.8760.

Presenter(s):
Joan Lutz, Senior Budget and Finance Manager.

Background and Analysis:
The quarterly financial report serves as the City's fiscal early warning system. These reports allow the City Manager and Department Directors to make real-time course corrections before a fiscal issue becomes unmanageable.

The quarterly financial report includes:

General Fund Overview - Provides the "Big Picture"
* High-Volatility Focus Areas
o Jail Contract Costs: This is a "demand-driven" cost. Tracking arrest rates as well as sentencing lengths. If demand is high, this could lead to budget overage in the Police Department.
o Municipal Court Contract Costs: 2026 is the inaugural year for this regionalized model. The report ensures accountability and validation of contract fixed and per cases costs.
o Overtime Costs: High overtime costs can be a signal of several problems (examples would be staff shortage, increased injuries, call volume demand, or training costs).

* Revenue Integrity
o Sales Tax: Tracking sales tax projects against actual performance. Sales tax performance can indicate consumer confidence and other marketplace indicators.
o Basic Life Support (BLS) Revenues & Ground Emergency Medical Transportation (GEMT): 2025 was the first full year of BLS transport capabilities. We bill private insurance companies and submit for additional Medicaid reimbursement to the GEMT Program. The GEMT is a supplemental payment program designed to cover the funding gap between a provider's actual costs per transport and the allowable amount received from Medicaid.

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