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HomeMy WebLinkAbout2025.05.12 Council Workshop Packet AGENDA City Council Workshop Meeting 7:00 PM - Monday, May 12, 2025 Pasco City Hall, Council Chambers & Microsoft Teams Webinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would like to provide public comment remotely, may continue to do so by filling out the online form via the City’s website (www.pasco-wa.gov/publiccomment) to obtain access information to comment. Requests to comment in meetings must be received by 4:00 p.m. on the day of this workshop. The Pasco City Council Workshops are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. To listen to the meeting via phone, call 1-332-249-0718 and use access code 923129920*. Audio equipment available for the hearing impaired; contact the Clerk for assistance. Servicio de intéprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos dias antes para garantizar la disponiblidad. (Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) 2. CALL TO ORDER 3. ROLL CALL (a) Pledge of Allegiance 4. VERBAL REPORTS FROM COUNCILMEMBERS 5. ITEMS FOR DISCUSSION WITH OPPORTUNITY FOR PUBLIC COMMENT – the public may comment on each topic scheduled for discussion, up to 2 minutes per person with a total of 8 minutes per item. If Page 1 of 91 opposing sides wish to speak, then both sides receive an equal amount of time to speak or up to 4 minutes each side. 4 - 28 (a) Transportation Impact Fee Study (5 minutes) 29 - 39 (b) Presentation - Pasco Resource Navigator Program (15 minutes) 40 - 49 (c) General Fund Monthly Report - February 2025 (2 minutes) 50 - 82 (d) Financial Reports - Year To Date through First Quarter 2025 (10 minutes) 83 - 89 (e) Resolution - Surplus and Sale of City Personal Property (5 minutes) 6. MISCELLANEOUS COUNCIL DISCUSSION 7. CLOSED SESSION (a) Discuss Collective Bargaining Unit Negotiations (IAFF- Uniformed) per RCW 42.30.140(4)(a) (10 minutes) 8. EXECUTIVE SESSION (a) To consider site selection or acquisition of real estate purchase or lease if likelihood that disclosure would increase price per RCW 42.30.110(1)(b) (5 minutes) 9. ADJOURNMENT 10. ADDITIONAL NOTES 90 - 91 (a) Adopted Council Goals (Reference Only) (b) This meeting is broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive. Audio equipment available for the hearing impaired; contact the City Clerk for assistance. Servicio de intérprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos días antes para garantizar la disponibilidad. (Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) Page 2 of 91 Page 3 of 91 AGENDA REPORT FOR: City Council April 25, 2025 TO: Dave Zabell, Interim City Manager City Council Workshop Meeting: 5/12/25 FROM: Richa Sigdel, Deputy City Manager Community & Economic Development SUBJECT: Transportation Impact Fee Study (5 minute staff presenation) I. ATTACHMENT(S): Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Policy Guidance III. FISCAL IMPACT: N/A, report on study only. IV. HISTORY AND FACTS BRIEF: The purpose of the study is to assess City's transportation network, identify key critical capital projects and associated costs needed to accommodate future growth, determine the impact of future growth on these key projects, account for other funding sources, and equitably determine the financial impact of growth due to new development on City’s transportation infrastructure. The intent of Transportation Impact Fees (TIF) is to ensure that new growth funds its new related growth serve to transportation facilities of share adequate development, that growth pay for growth, and to avoid degradation in level of service to all residents. Short of an adequate traffic impact fee, the City has had to rely on proportionate shares to fund critical transportation projects through SEPA which has proven to be an unreliable and sometimes inconsistent approach. This study is part of a long-term strategy to create a more sustainable system by which new development can be fairly and effectively mitigated. The City's current TIF applies to all development west of 20th Avenue. This fee was implemented in March, 2005 and then updated in February, 2009. The Page 4 of 91 impact creating 2009, since been not updated list project and fee have challenges for the City to fund the construction of adequate transportation infrastructure, and assure new growth is adequately mitigating its impacts. Since its inception, the City has collected close to $6 million in traffic impact fees. Current Traffic Impact Fees Residential developments $709.00 Multifamily units $435.00 Commercial $43.00 per daily vehicle trip The Traffic Impact Fee Study was accomplished with the assistance of Fehr & Peers, a transportation engineering firm in close collaboration with senior City staff from the CMO, CED and PW. V . DISCUSSION: The needs of a growing City like Pasco is significant. In the case of an analysis such as this, the project list could exceed 30 projects. City staff have worked diligently with the consultants and community to produce a project list that represents the most critical projects needed to ensure a satisfactorily functioning transportation system capable of accommodating anticipated growth. The table below list of projects included in the Traffic Impact Fee Analysis. Page 5 of 91 It is important to keep in mind that the TIF is calculated per vehicle trip generated during the PM peak hour, which is determined by (a) the use of the property, (b) the location of the property, and (c) based on trip generation data from the Institute of Transportation Engineers. Currently, a single family residential is .94 PM peak hour trip. Hence, if the residence was to be built within the North District, TIF fee is estimated to be $2,082.89. As discussed with Council at a recent Workshop meeting, with above projects in mind and significant traffic modeling completed by Fehr & Peers, the most reasonable TIF options available for Council's consideration are as follows: Page 6 of 91 1. Two District Program North - $2,215.84 Remaining City - $1,651.89 2. Five District Program North - $2,215.84 West - $1,395.77 South - $3,862.46 Central - $2,694.78 East - $812.06 Page 7 of 91 Per Council's guidance, staff conducted a hybrid (in-person and virtual) outreach event on May 7th and have provided online forms to receive additional feedback from the community. Feedback was limited as expected, however staff heard a common theme of increased development costs and the impact on the cost of housing, coupled with an understanding that the City cannot allow the transportation system to fail. Further, from those participating, there is full support for the projects list and even some interest in seeing additional projects added. Comments from the public included a sentiment of growth paying for growth impacts. While the feedback was very limited, we have heard support for the five-district model. Staff will need Council's preference on the district model to prepare the final report and necessary ordinance to implement the changes. Barring significant deviance from either of the two alternatives, staff is confident that it can be ready to bring this matter back to Council for action late May or early June. Page 8 of 91 Transportation Impact Fee (TIF) Update May 7, 2025 Pasco Community Outreach Meeting Pa g e 9 o f 9 1 Tonight’s Discussion Background Review Program Options for Pasco Your Feedback 01 02 03 Pa g e 1 0 o f 9 1 Background Review 3 Pa g e 1 1 o f 9 1 Pasco TIF Update Schedule Milestones Develop Prelim TIF Project List January Council Updates February- March TIF Analysis February Council Meeting March 17 Draft Rate Calculation March-April Council Meeting April 28 Outreach May 7 Finalize Report May Council for Approval June Pasco TIF Update Schedule Milestones - 2025 Pa g e 1 2 o f 9 1 List of Projects Capacity Projects Portion Due to New Growth Cost Allocated to Impact Fees Eligible Cost Growth in Trips Cost Per Trip allocated to Impact fees Non-Capacity Projects (maintenance/safety- only) Portion Due to Existing Deficiency Cost Paid by City or Others TIF Project list identified from adopted TIP. Projects evaluated for impact fee eligibility. Non-capacity investments/ maintenance/ improvements are removed From remaining projects, projects or portions of project addressing existing deficiency and non city growth are removed. Remaining eligible program cost is divided by Pasco’s expected growth in PM peak hour trips for next 20 years. Development of Fee Schedule for Land Uses Development of fee schedule to associate trip rate to individual land uses either citywide or within "service areas" or districts. TIF Required Methodology: Pa g e 1 3 o f 9 1 Eligible Impact Fee Cost Calculation Project Cost* 1- Existing Deficiency Percentage Percentage of Growth within City Impact Fee Eligible Cost To ensure that impact fees have a strong nexus with development projects, the City may establish multiple geographic service areas or districts for the updated TIF program. *Project Cost can include consideration for other potential or anticipated funding sources. Pa g e 1 4 o f 9 1 7 Impact Fee Cost Calculation Example: Rainier Ave & Kartchner St Intersection Improvements TIF Project Cost ($1.7M) 1- Existing Deficiency Percentage (22%) Percentage of Growth within City (83%) Impact Fee Eligible Cost ($306K) 13% of total project cost *Project Cost can include consideration for other potential or anticipated funding sources. Total Project Cost ($2.4M) This is done for each TIF project, and the proportion of cost is assigned to each district based on relative impact. Pa g e 1 5 o f 9 1 Pasco’s Current TIF Program Established by Ordinance 3719 in 2005 Updated by Ordinance 3905 in 2009 PMC Chapter 3.40 & 3.35.230 Development Type Fee Residential Development (Single Family Detached) $709.00/unit Multifamily $435.00/unit Commercial $43.00/daily vehicle trip Pa g e 1 6 o f 9 1 TIF Rates in Washington In 2024 MRSC compared TIF rates of 74 cities and 5 counties in Washinton State •Citywide rates ranged from $907 - $15,427 per PM Peak Hour Trip •Average Rate was $5,717 Neighboring City Programs •Richland –$1,816 - $4,952 per PM Peak Hour Trip •Kennewick –$434 - $1,692 per PM Peak Hour Trip •West Richland – $1,935 per PM Peak Hour Trip Pa g e 1 7 o f 9 1 Kennewick – Updated 2018 $1,692 $1,108 $1,267 $434 Zone 1 Zone 2 Zone 3 Zone 4 Cost Per PM Peak Trip Pa g e 1 8 o f 9 1 Richland – Updated 2024 $2,647 $2,453 $4,952 $1,816 Zone 1 Zone 2 Zone 3 Zone 4 Cost Per PM Peak Trip Pa g e 1 9 o f 9 1 TIF Program Update for Pasco 12 Pa g e 2 0 o f 9 1 Proposed TIF Project List 13 Pasco TIF Project List 1 Rd 40 E Extension 2 Burns Rd Extension 3 Road 76 Overpass 4 Sandifur Pkwy/Rd 76 5 Burden Blvd/Rd 60 6 Burden Rd/Madison Ave 7 Burden Rd/Rd 44 8 Lewis St/Heritage Blvd 9 Rainier Ave/Kartchner St 10 Sandifur Pkwy/Rd 84 11 Rd 76 Improvements 12 Sandifur Pkwy/Convention Dr 13 Argent Rd Widening (Phase 4) 14 Court Street/Road 60 15 Burns Rd Extension to Glade Road 16 Harris Rd/Crescent Rd Overpass 17 I-182/Broadmoor Blvd I/C 18 Burns Rd/Rd 68 19 Court Street/Road 100 20 Harris Rd Realignment Pa g e 2 1 o f 9 1 1425% of total Project Cost Proposed TIF Project List Pa g e 2 2 o f 9 1 Two District Program 15 District TIF Rate North $2,215.84 Remaining City $1,651.89 Fee per PM Peak Hour TripPa g e 2 3 o f 9 1 Five District Program 16 District TIF Rate North $2,215.84 West $1,395.77 South $3,862.46 Central $2,694.78 East $812.06 Fee per PM Peak Hour Trip Pa g e 2 4 o f 9 1 Two District Program Five District Program District TIF Rate North $2,215.84 Remaining City $1,651.89 District TIF Rate North $2,215.84 West $1,395.77 South $3,862.46 Central $2,694.78 East $812.06 Fee per PM Peak Hour Trip Fee per PM Peak Hour Trip Pa g e 2 5 o f 9 1 The TIF Program and the Development Review Process TIAs still need to happen While Pasco will still require TIAs, the threshold for when developments are required to complete a TIA will be reviewed. Reduced scope of analysis Impact fees mean that development’s contribution to TIF projects is known. Analysis can be focused on other facilities not covered by TIF program. More expedited process Fewer and more focused TIAs speed up the development process. Pa g e 2 6 o f 9 1 Next Steps •Districts – May 12th - Provide public input to Council and receive guidance on path forward. •Final Report and Ordinance – May/Early June - Prepare final report and ordinance. •Traffic Impact Analysis Process Revision – June/July - Staff will be recommending changes to current process. •Reduced scope from current process •In house review for smaller & less complex projects •Review of thresholds for types of analysis Pa g e 2 7 o f 9 1 Questions & Feedback Pa g e 2 8 o f 9 1 AGENDA REPORT FOR: City Council May 6, 2025 TO: Dave Zabell, Interim City Manager City Council Workshop Meeting: 5/12/25 FROM: Kevin Crowley, Fire Chief Fire Department SUBJECT: Presentation - Pasco Resource Navigator Program I. ATTACHMENT(S): PowerPoint Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The purpose of this report is to provide an update on the Pasco Resource Navigator (PRN) Program, highlighting its ongoing impact on public health and safety, and its effectiveness in reducing non-emergency EMS utilization while improving community wellbeing. The ability to staff the program with a PRN allows patients to be helped and directed to resources, resulting in better lives for those individuals. The PRN program was implemented to address the increasing number of non- emergency 911 calls and recurring contacts involving individuals with complex social, medical, and behavioral health needs. Traditional EMS responses are often limited to acute medical care and transport, leaving many root causes of frequent service use unaddressed. The PRN program was established to help bridge this gap by providing individualized, ongoing support and resource navigation to services tailored to each client’s needs. Since its inception, the program has grown to include a multi-disciplinary team that includes a licensed clinical social worker, community health workers, and access to a psychiatric advanced nurse practitioner. This team works in collaboration with the Pasco Fire Department, Police Department, area hospitals, shelters, and other community partners. Page 29 of 91 V. DISCUSSION: This presentation is for informational purposes. Page 30 of 91 May 12, 2025 Pasco City Council Workshop Pa g e 3 1 o f 9 1 Pasco Resource Navigator Program May 12th, 2025 Pasco City Council Pa g e 3 2 o f 9 1 Stephen Whitfield-MSW Hanna Beckwith-CHW 3 Pa g e 3 3 o f 9 1 •Reduce the number of unnecessary emergency room visits. •Address repeated contacts with the same patients, that are not usually solved by our emergency personnel (EMS) or the hospital. •Help patients obtain appropriate care •Address any barriers. •Navigating and understanding community resources that are available. PRN PROGRAM GOALS 4 The overall goal of the program is to assist individuals in the community with meeting needs that are contributing to excessive contact with emergency services or experiencing issues that cannot be addressed by emergency services. EMS personnel’s main goal is to address the immediate medical issue; whereas the Pasco Resource Navigator (PRN) team can help identify any unmet needs and address barriers that are preventing them getting appropriate assistance. There is no timeline for PRN services. The PRN team may work with patients briefly or over a longer period until any unmet needs are addressed. Pa g e 3 4 o f 9 1 Examples of common trends where PRN referrals come from include: •Fall risk/mobility •Chronic pain •Isolation •Suicidal ideation/attempts •Overdoses •Family support PROGRAM POPULATION 5 GROUPS SERVED •Homeless •Mental health •Substance use •Elderly •Youth •Low income •Frequent callers •Uninformed Pa g e 3 5 o f 9 1 •Pasco Fire Department •Pasco Police Department •Hospitals •Shelters •Community Partners Outside of referrals, the PRN team actively reviews EMS calls to identify any potential patients needing additional support. REFERRAL SOURCES 6 ADVANTAGES TO PRN TEAM •Responding to active calls •Quick access to follow up care •No barriers to accessing assistance from PRN •Ex: Intakes, Appointments, Insurance •Access to call history with PFD •Documentation in the same system as EMS Pa g e 3 6 o f 9 1 •Housing •Transportation •Financial Strain •Food Insecurity •Safety Concerns •Employment •Lack of social support •Substance Use •Mental Health/Crisis •Physical Health •Health Literacy MOST COMMON PROBLEMS 7 OVERCOMING ISSUES Patients are most often not aware of the resources available to them in the community or have struggled with trying to navigate the system themselves. The PRN team aims to overcome these issues by assisting patients with accessing appropriate community resources. This results in simplifying the process for patients and helping them understand the services available, what to expect from them, and ultimately getting connected. Patients are typically seen in their residences, hospitals, or in the community if unhoused. Pa g e 3 7 o f 9 1 1,729 Total contacts for 2024 Face to Face, Phone, & Collaterals 766 Medical/Physical needs 963 Mental Health/Substance Use 226 Total Patients Served Avg monthly contacts 145 Avg monthly referrals 15-20 Avg monthly open cases 25-40 2024 PROGRAM DATA 8 NOTABLE ACHIEVMENTS •Accessing outpatient services •Inpatient behavioral health treatment •Getting patients housed who have been homeless •Facilitating placement into safer housing options •Starting or renewing medical insurance •Obtaining income •Starting in home services for elderly fall risk patients •Providing medical equipment to allow patients to continue living at home independently Pa g e 3 8 o f 9 1 Pa g e 3 9 o f 9 1 AGENDA REPORT FOR: City Council May 7, 2025 TO: Dave Zabell, Interim City Manager City Council Workshop Meeting: 5/12/25 FROM: Griselda Garcia, Interim Director Finance SUBJECT: General Fund Monthly Report - February 2025 (2 minute staff report) I. ATTACHMENT(S): February General Fund Report February Report at a Glance II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: N/A III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Attached is the monthly General Fund financial update through February 2025, the City's major governmental fund. The administration will provide quarterly reports to Council for other funds. General Fund reporting runs couple of months behind actuals due to the timing of the receipt of various taxes and accounting for expenditures at the latter part of the reporting period. V. DISCUSSION: As of the end of February, elapsed time for budget is 8.3%. This is a linear metric that does not always align with City's non-labor costs and revenue. For example, on the revenue side property taxes are distributed to the City in April and October, on the expenditure side, the City's liability insurance premium is paid in one installment in January, supplies and services are charged as they are received. At this time, Staff does not expect any significant variance from the adopted budget for General Fund. Page 40 of 91 Attached to this agenda report is a list of contracts over $100,000 and under $300,000 executed administratively in the month of February. Donations made to the City during the same period are included in the report as well. Page 41 of 91 Monthly General Fund Report February 2025 Financial Highlights The intent of this report is to provide an overview of activity in the City's General Fund through February 28, 2025. This is a snapshot in time, projections and analysis for decision making will prove valuable further in the year as data is collected. Where it came from: Where it went: Page 42 of 91 Budget to Actuals (Elapsed Time: 8.3%) Category 2025-2026 Adopted Budget 2025 Actuals 2025 Encumbrance % Actuals to Budget Expense 169,209,410 11,274,868 1,042,303 7% Operational Capital 576,850 103,271 184,339 18% Debt Interest 7,082,921 - - 0% Debt Principal 3,896,450 - - 0% Personnel Benefits 23,181,518 1,519,219 - 7% Salaries and Wages 67,851,635 4,151,710 - 6% Overtime 3,407,711 161,418 - 5% Services 50,097,711 5,053,577 625,240 10% Supplies 7,339,614 107,534 232,725 1% Transfers Out-Subsidy 2,875,000 130,719 - 5% Transfers Out-UT Taxes to Streets 2,900,000 47,420 - 2% Revenue 158,674,724 8,448,847 - 5% Charges for Goods and Services 21,194,237 482,316 - 2% Fine and Penalties 2,440,300 162,545 - 7% Intergovernmental 7,519,082 58,222 - 1% Licenses & Permits 6,584,940 342,185 - 5% Miscellaneous 5,624,666 310,697 - 6% Taxes 114,384,039 7,089,562 - 6% Transfer In - Subsidy 295,000 3,320 1% Transfer In-Grants 632,460 - 0% Net Profit (loss)(10,534,686) (2,826,021) Operational Category 2025-2026 Adopted Budget 2025 Actuals 2025 Encumbrance % Actuals to Budget Expense 2,662,000 - - 0% Transfer Out - CIP 2,662,000 - - 0% Revenue - 760,722 - 0% Sale of assets - 760,722 - 0% Net Profit (loss)(2,662,000) 760,722 Capital / Non Operational Page 43 of 91 During the reporting period, operating expenditures exceeded operating revenues, resulting in a net loss of $2,826,021. It is important to note that the timing of revenue receipts and expenditures does not always align. Several key revenue sources—including property taxes, gambling taxes, and admission taxes—are received on a quarterly basis which can temporarily impact the General Fund's cash flow. Additionally, certain expenditures, particularly in the Services and Supplies categories, do not occur evenly throughout the year. As of end of February 10% of the total Services budget was expended which is at an expedited pace given end of February represents 8.3% of elapsed time in the biennium. Some of the largest services expenses were related to the library contract and Police Department services such as vehicle leases, body camera contract and dispatch contract. Page 44 of 91 Expenditures Jan-Feb. 2023 Jan-Feb. 2024 Jan-Feb. 2025 373,157 293,853 161,418 3-Year Trend Overtime As previously mentioned, the first two months included large one-time payments within the services expense category as well as long-term contracts related to public safety. $625,240 is encumbered for upcoming services. Encumbering funds is a beneficial financial practice that allows the City to reserve budgeted amounts for known future obligations. This ensures that funds are available when large, irregular, or contract- based expenses arise later in the fiscal period, supporting more accurate budget tracking and financial planning. The adjacent table highlights wages specific to overtime which were mainly for Public Safety needs. This represents 5% of the biennial budget for overtime. This has historically been a high expense for the City and efforts are underway to reduce expenses in this category. This will be closely monitored throughout the biennium. Page 45 of 91 Revenues The table above reflects tax revenue received thru end of February for 2025 and 2024 for comparison purposes. During January, taxes made up 84% of total revenue received. As seen in the table, sales tax makes up the majority of that revenue. The sales tax rate is 8.9%. The City receives a share of regular sales tax, criminal justice and public safety which are distributed by the State and Franklin County. Growth in the commercial base of the City is providing residents the opportunity to spend their income within the community. Further, the Destination Sales Tax State rule coupled with increase in online retail has contributed to steady growth in sales tax revenue. The bulk of revenues from property tax are received in two installments as the deadlines for timely payment are April 30th and October 31st of each year. While the City received a small amount of payments for property taxes thus far, all were for 2024 tax levy or prior. Contracts between $100,000 and $300,000 During February, staff entered into a contract for Annual Physicals for the Fire Department with Life Scan Wellness. The contract amount is to not exceed $267K. Tax Type 2025 YTD 2024 YTD Sales Tax*4,706,446 4,532,948 Property Tax*90,217 79,915 Utility Tax 1,948,928 1,670,113 Gambling, Admission, Leasehold 343,972 347,900 *Received in Jan./Feb. for prior year activity Page 46 of 91 Permits A variety of economic factors influence the overall health of the community and, by extension, the vitality of the General Fund. One key indicator is permitting activity, which reflects both the growth and desirability of the community, as well as contributes to building-related sales tax revenue. Permitting activity has begun the year at a slower pace, which may be attributed to broader external influences, including the current political and economic climate. Additionally, seasonal factors such as weather conditions can also affect the timing and volume of permit issuance. Staff will continue to monitor permitting trends closely and provide updates as conditions evolve to ensure timely awareness of potential impacts on revenue forecasts. Donations Purpose Donor Amount First Responder of the Month Toyota of Tri-Cities $500 Cinco de Mayo Celebration Gesa Credit Union 5,150 Total Donations $5,150 Permit Type YTD 2025 Count YTD 2025 Value YTD 2024 Count YTD 2024 Value Commerical 56 16,578,949 98 38,087,716 Industrial 9 299,777 9 89,425,937 Residential (Incl. mobile homes)212 13,484,728 276 20,167,047 Page 47 of 91 84%0% 4%6% General Fund Report February 2025 A monthly snapshot of Pasco’s General Fund through February 28, 2025 2025 F I N A N I C A L S U M M A R Y A T A G L A N C E Net Position: -$2,826,021 (temporary due to timing of revenues) Revenue Sources: 84% from taxes Services Budget Used: 10% (large, early payments for public safety and library contracts) Overtime Budget Used: 5% (mostly Public Safety) Encumbered Funds: $625,240 (reserved for future services) W H E R E R E V E N U E C A M E F R O M Parks & Rec Sponsorships Received (February)$5,150 Taxes Transfer & Subsidy - Revenue Licenses & Permits Charges for Goods & Services 2% 5% Fines & Penalties Misc. & Intergovernmental In February, taxes accounted for 84% of total revenue, predominantly from an 8.9% sales tax. The City benefits from shares of regular sales tax, criminal justice, and public safety funds distributed by the State and Franklin County. Growth in the City's commercial base allows residents to spend locally, while the Destination Sales Tax State rule and increased online retail have led to steady sales tax revenue growth. Property tax revenues are primarily collected in two installments due by April 30th and October 31st, with only a small amount received in February 2025 for the 2024 tax levy or earlier. Tax Type 2025 YTD 2024 YTD Sales $4,706,446 $4,532,948 Property $90,217 $79,915 Utility $1,948,928 $1,670,113 Gambling, Admission, Leasehold $343,972 $347,900 Page 48 of 91 5%2%56% A variety of economic factors influence the overall health of the community and, by extension, the vitality of the General Fund. One key indicator is permitting activity, which reflects both the growth and desirability of the community, as well as contributes to building-related sales tax revenue. Permitting activity has begun the year at a slower pace, which may be attributed to broader external influences, including the current political and economic climate. Additionally, seasonal factors such as weather conditions can also affect the timing and volume of permit issuance. Staff will continue to monitor permitting trends closely and provide updates as conditions evolve to ensure timely awareness of potential impacts on revenue forecasts. 5%11% Residential 76.5% Commercial 20.2% Industrial 3.2% Permit Type YTD 2025 Count YTD 2025 Value YTD 2024 Count YTD 2024 Value Commercial 56 $16,578,949 98 $38,087,716 Industrial 9 $299,777 9 $89,425,937 Residential (incl. mobile homes) 212 $13,484,728 276 $20,167,047 E X P E N S E C A T E G O R I E S Transportation Transfers Public Safety C O N T R A C T S P E R M I T T R E N D S Contracts Executed K E Y H I G H L I G H T S Some revenues (like property & gambling tax) are received quarterly Some expenditures are paid early in the year (e.g., insurance) This report reflects a point-in-time snapshot—not final outcomes These insights guide decision-making throughout the biennium Annual Physicals for the Fire Department Vendor: Life Scan Wellness Amount: Not to exceed $267,000 Natural & Economic Cultural & Community During the reporting period, operating expenditures exceeded operating revenues, resulting in a net loss of $2,826,021. It is important to note that the timing of revenue receipts and expenditures does not always align. Several key revenue sources—including property taxes, gambling taxes, and admission taxes—are received on a quarterly basis which can temporarily impact the General Fund's cash flow. Additionally, certain expenditures, particularly in the Services and Supplies categories, do not occur evenly throughout the year. As of end of February 10% of the total Services budget was expended which is at an expedited pace given end of February represents 8.3% of elapsed time in the biennium. Some of the largest services expenses were related to the library contract and Police Department services such as vehicle leases, body camera contract and dispatch contract. P E R M I T S 22% General Government Page 49 of 91 AGENDA REPORT FOR: City Council May 8, 2025 TO: Dave Zabell, Interim City Manager City Council Workshop Meeting: 5/12/25 FROM: Griselda Garcia, Interim Director Finance SUBJECT: Financial Reports - Year To Date through First Quarter 2025 (10 minutes) I. ATTACHMENT(S): Financial Report First Quarter 2025, ending March 31, 2025 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: N/A III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Quarterly reports on the major funds allow staff to communicate the larger financial picture of the City to the Council and its residents. Attached is the Financial Report for all City Funds through March 31, 2025. The General Fund is a major fund of the City. It is the primary governmental fund of the City and reflects all revenues and expenditures not accounted for in another fund. All other fund types exist for a specific program or purpose. The budget to actual activity is outlined in the attached report with supporting discussion. V. DISCUSSION: The financial report does not include fund balances that are authorized by Council during each budget year. The exclusion fund balance amounts is to present a clear picture of funds being received and expended by the City without reliance on reserves. Page 50 of 91 As three months of the biennium have passed, the expected benchmark for expenditures is approximately 13% of the adopted budget. The report indicates that major funds are generally aligning with revenue and expenditure expectations. However, the timing of large capital outlays and service contract payments often deviates from standard quarterly pacing, resulting in some expenditure categories exceeding the 13% expectation. In many cases, this variance is balanced by lower spending in other areas. City staff continues to closely monitor budget-to-actual figures to identify potential needs for supplemental budget adjustments. Where possible, minor unanticipated costs are managed within existing budget allocations. However, the budget may not have the capacity to absorb more significant, unforeseen expenses. In the interest of transparency and timely decision-making, any anticipated budget amendments are detailed within this report. Please view the attached report for details. Page 51 of 91 MARCH 2025 Quarterly Financial Report Prepared by Griselda Garcia, Interim Finance DirectorPage 52 of 91 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 2 Overview The intent of this report is to provide an overview of activity in all of the City’s major funds through March 31, 2025. This financial report does not reflect fund balances that have been authorized by Council during the current budget cycle. These fund balances are excluded in order to provide a clearer representation of revenues received and expenditures made by the City, without the influence of reserve fund. As three months of the biennium have passed, the expected benchmark for expenditures is approximately 13% of the adopted budget. The report indicates that major funds are generally aligning with revenue and expenditure expectations. However, the timing of large capital outlays and service contract payments often deviates from standard quarterly pacing, resulting in some expenditure categories exceeding the 13% expectation. In many cases, this variance is balanced by lower spending in other areas. This report presents financial data as of a specific point in time and should not be interpreted as a forecast for year-end results. Revenues typically follow cyclical patterns, while many expenditures—such as salaries— remain consistent throughout the year. As of the end of the quarter, expenditures in the General Fund and Internal Service Funds exceeded revenues. However, both are expected to meet their budgeted ending fund balances by year-end. City staff continues to closely monitor budget-to-actual figures to identify potential needs for supplemental budget adjustments. Where possible, minor unanticipated costs are managed within existing budget allocations. However, the budget may not have the capacity to absorb more significant, unforeseen expenses. In the interest of transparency and timely decision-making, any anticipated budget amendments are detailed within this report. Page 53 of 91 Budget Comparison by Fund Type Budget Actual % Utilities Revenue 168,281,921 32,478,622 19% Expense 186,281,536 12,294,966 7% Net Impact (17,999,615) 20,183,656 Internal Service Revenue 28,719,208 3,238,428 11% Expense 27,817,305 4,738,071 17% Net Impact 901,903 (1,499,643) Budget Actual % General Fund Revenue 158,674,724 15,023,180 9% Expense 171,871,410 16,942,550 10% Net Impact (13,196,686) (1,919,370) Special Revenue Funds Revenue 71,195,217 6,764,477 10% Expense 70,748,810 5,700,704 8% Net Impact 446,407 1,063,773 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 3 O v e r a l l , t h e G e n e r a l F u n d e n d e d f i r s t q u a r t e r w i t h a n e t i m p a c t o f n e g a t i v e $1 .9 M d u e t o e x p e n s e s e x c e e d i n g r e v e n u e s . T h i s i s m a i n l y d u e t o t i m i n g o f r e v e n u e s a s s i g n i f i c a n t r e v e n u e s t r e a m s , s u c h a s p r o p e r t y t a x e s , d o n o t c o m e i n o n a m o n t h l y b a s i s . M a j o r i t y o f t a x r e v e n u e r e c e i v e d w i t h i n f i r s t q u a r t e r i s f r o m p r i o r y e a r a c t i v i t y . T h e i m p a c t o f n a t i o n a l e c o n o m i c c l i m a t e , c o n s u m e r u n c e r t a i n t y a n d t a r i f f s i s n o t r e f l e c t e d i n s a l e s t a x r e v e n u e r e c e i v e d t h u s f a r . S a l e s t a x r e v e n u e i s r e c e i v e d a b o u t t w o m o n t h s t r a n s a c t i o n s o c c u r . F u r t h e r , f a c t o r s s u c h a s a m i l d w i n t e r i m p a c t r e v e n u e s s u c h a s U t i l i t y T a x e s . T h e I n t e r n a l S e r v i c e F u n d s r e s u l t e d i n a n e t i m p a c t o f n e g a t i v e $1 .5 M d u e t o s i g n i f i c a n t u n a n t i c i p a t e d r e p a i r s f o r v e h i c l e s a n d i n f l u x o f m e d i c a l c l a i m s . S p e c i f i c a l l y , t h e m e d i c a l f u n d r e s u l t e d i n a n e t l o s s o f $1 .9 M l a r g e l y d u e t o r e s i d u a l d e l a y s i n c l a i m p r o c e s s i n g f r o m c h a n g i n g i n s u r a n c e p r o v i d e r s . H o w e v e r , t h e f u n d h a s a d e q u a t e f u n d b a l a n c e t o c o v e r t h e c l a i m s . T h e U t i l i t i e s F u n d e n d e d f i r s t q u a r t e r w i t h a n e t g a i n o f $2 0 M , l a r g e l y d u e t o r e c o g n i t i o n o f a p p r o x i m a t e l y $1 5 M o f r e v e n u e f o r L I D 1 5 2 E a s t U G A a s s e s s m e n t s . Elapsed time within biennium is 13%, thus general expectation of revenues andexpenditures. Page 54 of 91 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 4 FUND LIST: General Fund Special Revenue Funds Street Arterial I-182 Impact Street Overlay CDBG HOME MLK Center Ambulance ARPA Cemetery Blvd Maintenance Athletics Golf Animal Control Senior Center Multi Modal School Impact Marina Lodging Littler Abatement Revolve Abate HAPO Center Park Development Real Estate Excise Tax Economic Develop Stadium/Conv Center Hotel/Motel Excise Tax Internal Service Fund Equipment Replacement - Governmental Equipment Replacement - Utilities Equipment O&M - Governmental Equipment O&M - Utilities Medical Dental Vision Enterprise Fund Utility Water Irrigation Sewer PW Reuse Facility Storm Water Page 55 of 91 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 5 Revenue City wide revenue by type for all funds 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Charges for goods and services Capital contributions (connections) Fines and penalties Intergovernmental Licenses & permits Miscellaneoues Investment Interest Sales Tax Property Tax Utility Tax Gambling, Admission, Leasehold Proactive steps have been taken in response to the current economic environment, particularlythe challenges posed by inflation . Through strategic timing of investments and a focus onliquidity management, the department has been able to generate increased interest income.These additional earnings have helped offset some of the financial pressures caused by risingcosts. This approach reflects a prudent and responsive financial strategy aimed at maintainingthe city’s fiscal stability during a period of economic uncertainty. As of the end of first quarter,the City earned $1.2M in investment interest earnings. This reflects 39% of the biennialbudget for investments. Intergovernmental revenue category is related to funds received from other local, state andfederal agencies. This category is largely tied to capital efforts. Property taxes received within this timeframe was 2% of budgeted revenue due to majority ofpayments received in April and October. Majority of revenue received within first quarter are forpayments received related to prior year property levies. The elapsed time for the biennium is 13% which is a general gauge for being on track withprojections. Charges for services and fines/penalties are at the 13% range in relation to thebudget. Page 56 of 91 1ST QTR 2025 1ST QTR 2024 SALES PROPERTY UTILITY Gambling & Admissions0 2000000 4000000 6000000 8000000 Majority of tax revenue received within first quarter is from prior year activity. The impact of national economic climate, consumer uncertainty and tariffs is not reflected in sales tax revenue received thus far. Sales tax revenue is received about two months transactions occur. Permit volumes in the first quarter of 2025 are consistent with the same period in 2024. However, total permit valuation has decreased by approximately 28%, indicating a potential shift toward smaller-scale construction projects. This trend may reflect the ongoing impact of economic uncertainty and inflationary pressures. As construction activity typically increases in late spring and summer, staff will continue to monitor permit trends closely throughout the year. Revenue Building Permit Activity Taxes By Type Permit Type 2024Count 2024 PermitValue(In Millions)2025Count 2025 Permit Value(In Millions) Commercial 136 $89.6 100 $33.7 Industrial 13 93.4 13 0.56 Residential 446 34.9 363 26.9 Total 595 $217.9 476 $61.2 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 6Page 57 of 91 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 7 Expenditures 0 5,000,000 10,000,000 15,000,000 20,000,000 Capital Outlays Debt Interest Debt Principal Personnel Benefits Salaries and Wages Overtime Services Supplies Actuals Expense Type City-wide Expenses by Expense Type Wages and benefits account for 34% of total expenditures, reflecting the City'songoing investment in essential staff and public services. These costs aregenerally consistent and predictable, forming the backbone of day-to-daymunicipal operations. In addition, contracted services represent the largest share of the City’sexpenditures at 49%. This category includes a broad range of essential servicessuch as maintenance, public safety support, consulting, and professionalservices. These contracts are vital for maintaining service levels acrossdepartments and responding to community needs. Capital outlays also make up a substantial portion of the City’s budget,comprising 35% of the total biennial budget. However, only about 3% of thebudgeted capital expenditures have been spent to date. This low percentage istypical for this point in the budget cycle, as the bulk of capital project spendingoccurs during the late spring and summer months, when weather conditions aremore favorable for construction. As we progress through the year, we will continue to monitor expenditure trendsclosely to ensure alignment with budget expectations and to proactively addressany emerging variances. Page 58 of 91 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 8 Expenditures Key Expense Categories Public Safety Water Sewer Natural & Economic Transportation Irrigation Storm PWRF Cultural & Community Activities General Government 0 100,000 200,000 300,000 400,000 Overtime General Government PWRF Public Safety Natural & Econ. Water Cultural & Community Activities Sewer Transportation Storm Irrigation 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Services by Function O v e r t i m e e x p e n d i t u r e s a c r o s s a l l C i t y d e p a r t m e n t s t o t a l e d $4 6 0 ,9 3 0 f o r t h e r e p o r t i n g p e r i o d . O f t h i s a m o u n t , 8 2 % w a s a t t r i b u t e d t o t h e P o l i c e , F i r e , a n d A m b u l a n c e d i v i s i o n s , w h i c h f a l l u n d e r t h e P u b l i c S a f e t y r e p o r t i n g f u n c t i o n . T h i s c o n c e n t r a t i o n r e f l e c t s t h e e s s e n t i a l a n d o f t e n u n p r e d i c t a b l e n a t u r e o f p u b l i c s a f e t y o p e r a t i o n s , w h e r e o v e r t i m e i s f r e q u e n t l y n e c e s s a r y t o m a i n t a i n 2 4 /7 e m e r g e n c y r e s p o n s e c o v e r a g e , a d d r e s s s t a f f i n g s h o r t a g e s , a n d s u p p o r t c r i t i c a l i n c i d e n t s . N a t u r a l & E c o n o m i c c a t e g o r y c o n s i s t s o f d e p a r t m e n t s s u c h a s C E D d e p a r t m e n t , A n i m a l C o n t r o l a n d C D B G . C u l t u r a l & C o m m u n i t y i n c l u d e s P a r k s & R e c d e p a r t m e n t , S e n i o r C e n t e r a n d M L K . Service-related expenditures totaled $19.9 million in the first quarter, primarily driven by long- term contractual obligations. Of this amount, 29% supported General Government functions, including medical and dental claims, Library service contract, and City-wide IT expenditures. An additional 21% was allocated to public safety contracts, which include recurring expenses for vehicle leases, body cameras, dash cameras and jail services. Page 59 of 91 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 9 Budget Comparison for key Special Revenue Funds Key Special Revenue Fund Budget Comparison The Street Fund is primarily supported by fuel taxes and a portion of utility taxes,both of which are received with a two-month delay. An additional source ofrevenue is the Street Preservation Program, which typically takes place during thesummer and early fall. We will continue to closely monitor revenues andexpenditures to maintain a balanced fund. The Ambulance Fund is supported by transport fees and monthly service rates. Arecent transition in key personnel at our third-party billing provider caused delaysin billing; however, this issue was nearly resolved by late March, and we anticipaterevenue will begin to catch up accordingly. In addition, staff has initiated anambulance rate study in collaboration with a contracted consultant to evaluateand potentially update our current rate structure. Page 60 of 91 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 1 0 Financial Outlook P e r m i t a c t i v i t y i n t h e f i r s t q u a r t e r o f 2 0 2 5 r e m a i n s c o n s i s t e n t w i t h t h e s a m eperiod i n 2 0 2 4 i n t e r m s o f v o l u m e ; h o w e v e r , t h e t o t a l p e r m i t v a l u a t i o n h a sdeclined b y a p p r o x i m a t e l y 2 8 %. T h i s s u g g e s t s a s h i f t t o w a r d s m a l l e r -s c a l econstruction p r o j e c t s , l i k e l y i n f l u e n c e d b y o n g o i n g e c o n o m i c u n c e r t a i n t y a n dinflationary p r e s s u r e s .O v e r t i m e c o s t s h a v e s h o w n a d o w n w a r d t r e n d c o m p a r e d t o p r e v i o u s y e a r s . W h i l ethis r e d u c t i o n i s a p o s i t i v e s t e p , o v e r t i m e r e m a i n s a s u b s t a n t i a l b u d g e t i t e m f o rthe C i t y . C o n t i n u e d m o n i t o r i n g a n d p r o c e s s e v a l u a t i o n w i l l b e e s s e n t i a l t omaintain t h i s d o w n w a r d t r a j e c t o r y a n d m a n a g e c o s t s e f f e c t i v e l y .T h e f i n a n c i a l i m p a c t o f r e c e n t l y i m p l e m e n t e d t a r i f f s h a s n o t y e t m a t e r i a l i z e d i nfirst q u a r t e r , a s s a l e s t a x r e v e n u e l a g b y a b o u t t w o m o n t h s . T h a t s a i d , t h e C i t y i sclosely t r a c k i n g p o t e n t i a l i n f l a t i o n a r y e f f e c t s a n d w i l l p r o v i d e t i m e l y u p d a t e s a smore d a t a b e c o m e s a v a i l a b l e .H i s t o r i c a l l y , t h e C i t y h a s b e e n h i g h l y e f f e c t i v e i n l e v e r a g i n g e x t e r n a l f u n d i n gsources, s e c u r i n g a n a v e r a g e o f $2 4 .7 m i l l i o n a n n u a l l y i n F e d e r a l g r a n t s a n d $6 .3million f r o m S t a t e g r a n t s o v e r t h e p a s t t h r e e y e a r s . H o w e v e r , w i t h p o t e n t i a lreductions i n F e d e r a l f u n d i n g o n t h e h o r i z o n , t h e C i t y w i l l n e e d t o r e a s s e s scapital p r o j e c t p r i o r i t i e s a n d p r o a c t i v e l y s e e k a l t e r n a t i v e f u n d i n g o p p o r t u n i t i e s t omaintain p r o g r e s s .T h e C i t y c o n t i n u e s r o b u s t p l a n n i n g e f f o r t s t o i d e n t i f y l o n g -t e r m n e e d s a n d m e a n sto f u n d t h e m w i t h t h e l e a s t i m p a c t o n t h e c o m m u n i t y . C o n t i n u o u s e f f o r t t oexplore a d d i t i o n a l r e v e n u e s t r e a m s , u p d a t e r a t e s a n d e v a l u a t e p r o c e s s a n d /o rprograms f o r e f f i c i e n c y w i l l b e c r i t i c a l f o r g o o d f i n a n c i a l h e a l t h . T h i s i n c l u d e scontinued p a r t n e r s h i p a n d p r o m o t i o n o f e c o n o m i c g r o w t h w i t h i n t h e B r o a d m o o rArea a n d c i t y -w i d e . Page 61 of 91 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 1 1 LEAN Process Improvements The Finance team continues to advance its commitment to efficiency and innovation by collaborating across departments and embracing technology-driven solutions. These enhancements reflect the department’s commitment to continuous improvement, cost reduction, and delivering greater value to the City through LEAN principles. Virtually all divisions within the Department have embraced the LEAN principles and are actively working on various initiatives. Utility Billing Division •Receipting Lockbox Service: By leveraging the bank’s lockbox service, we have effectively streamlined the handling of mailed payments. This outsourced solution reduces internal processing time and overhead, aligning with LEAN principles of minimizing waste while delivering consistent service at minimal cost to the City. •Proposed PMC Updates: We are proposing changes to the PMC that will simplify workflows, reduce non-value-added steps, and enhance both operational efficiency and customer service—ensuring staff time is focused where it adds the most value. •Enhanced Communication Strategy: We are implementing proactive communication tools —such as updated FAQs, redesigned utility bills, informational magnets, and additional online forms. These efforts are designed to reduce call volume and improve responsiveness, consistent with a LEAN approach to reduce rework and increase first- contact resolution. •Integrated Online Payment Processor: Transitioning to a fully integrated online payment platform will eliminate redundant manual tasks, reduce errors, and improve data accuracy. This change represents a significant LEAN improvement by streamlining the payment process end-to-end. Page 62 of 91 Q U A R T E R L Y F I N A N C I A L R E P O R T / P A G E 1 2 LEAN Process Improvements With the ubiquity of smartphones nowadays, we cannot deny the huge impact of social media in driving consumer behavior. That’s why brands both big and small tap digital platforms in a bid to capture market share. But being online simply isn't enough—brands need to have insights of their consumers’ online behavior, and use that data to drive revenue for their business. This is where social media reports come in. By tinkering with some data points here and there, social media marketers can tell middle managers and top-level executives how their brands are perceived by their customers.  More than just the numbers, digital marketers must also create a concise yet effective social media report that is meaningful for all stakeholders involved. Before even typing your report, first take the time to consider who the report is for. One good rule of thumb to remember is that the higher up the stakeholder is in the organizational ladder, the more succinct the report needs to be. With the myriad of metrics social media marketers have access to, it’s tempting to drown your audience in numbers. While figures aren't bad per se, you do have to make sure that these are relevant to the role of those receiving the report. Strive to tell the story behind the numbers by including learnings or insights.  Page 63 of 91 Pasco City Council Meeting May 12, 2025 Pa g e 6 4 o f 9 1 Financial Report through March 31, 2025 Pa g e 6 5 o f 9 1 Budget Actual %Elapsed Time Utilities Revenue 168,281,921 32,478,622 19%13% Expense 186,281,536 12,294,966 7%13% Net Impact (17,999,615)20,183,656 Internal Service Revenue 28,719,208 3,238,428 11%13% Expense 27,817,305 4,738,071 17%13% Net Impact 901,903 (1,499,643) Local Improvement Districts Revenue 219,941 23,002 10%13% Expense 219,941 18 0%13% Net Impact - 22,984 Budget Actual %Elapsed Time General Fund Revenue 158,674,724 15,023,180 9%13% Expense 171,871,410 16,942,550 10%13% Net Impact (13,196,686)(1,919,370) Governmental Capital Revenue 64,402,563 690,079 1%13% Expense 64,402,562 1,679,611 3%13% Net Impact 1 (989,532) Special Revenue Funds Revenue 71,195,217 6,764,477 10%13% Expense 70,748,810 5,700,704 8%13% Net Impact 446,407 1,063,773 Pa g e 6 6 o f 9 1 Expense Type Budget Actual % of Budget Elapsed Time Capital Outlays 188,918,242 5,315,242 3%13% Debt Interest 20,108,843 548,284 3%13% Debt Principal 40,298,940 74,026 0%13% Personnel Benefits 35,870,047 3,664,398 10%13% Salaries and Wages 103,996,771 9,836,771 9%13% Overtime 4,841,628 460,930 10%13% Services 127,398,676 19,958,751 16%13% Supplies 19,296,422 949,544 5%13% Pa g e 6 7 o f 9 1 Major Expense Drivers Function 25/26 Budget 1st Qtr Actuals % of Total Public Safety 4,072,740 376,374 82% Water 188,448 33,455 7% Sewer 136,499 22,342 5% Natural & Economic 160,757 15,020 3% Transportation 69,605 4,058 1% Irrigation 17,208 2,971 1% Storm 42,120 2,610 1% PWRF 38,133 2,194 0% Cultural & Community Activities 84,179 1,269 0% General Government 31,939 637 0% Total 4,841,628 460,930 100% Overtime Services Function 25/26 Budget 1st Qtr Actuals % of Total General Government 37,469,278 5,773,338 29% PWRF 4,363,545 4,485,597 22% Public Safety 24,001,818 4,222,771 21% Natural & Economic 17,191,776 1,401,467 7% Water 13,925,973 1,259,005 6% Cultural & Community Activities 11,451,679 1,188,559 6% Sewer 9,301,537 772,435 4% Transportation 5,731,364 579,498 3% Storm 1,279,233 167,984 1% Irrigation 2,512,172 100,173 1% Total 127,228,375 19,950,827 100% Pa g e 6 8 o f 9 1 Revenue Type Budget Actual % of Budget Elapsed Time Charges for goods and services 163,392,036 21,876,568 13%13% Capital contributions (connections)4,775,966 336,821 7%13% Fines and penalties 3,030,246 416,595 14%13% Intergovernmental 40,801,758 4,579,710 11%13% Licenses & permits 7,794,349 606,822 8%13% Miscellaneoues 59,637,009 596,174 1%13% Investment Interest 3,098,354 1,219,320 39%13% Sales Tax 60,706,176 7,718,492 13%13% Property Tax 29,303,575 445,976 2%13% Utility Tax 30,906,041 3,008,898 10%13% Gambling, Admission, Leasehold 2,368,247 346,219 15%13% Pa g e 6 9 o f 9 1 Tax Trend Tax Type 1st Qtr 2025 1st Qtr 2024 Sales Tax*7,718,492 7,263,285 Property Tax*445,976 417,811 Utility Tax 3,008,898 2,754,165 Gambling, Admission, Leasehold 346,219 351,532 Total 11,519,585 10,786,794 * Received in Jan/Feb for prior year activity Majority of tax revenue received within first quarter is from prior year activity. The impact of national economic climate, consumer uncertainty and tariffs is not reflected in sales tax revenue received thus far. Sales tax revenue is received about two months transactions occur. Pa g e 7 0 o f 9 1 34.9 26.9 595 $217.9 Pa g e 7 1 o f 9 1 Pa g e 7 2 o f 9 1 General Fund 2025-2026 Budget YTD 2025 Actuals % of Budget Revenue 158,674,724 15,023,180 9% Charges for Goods and Services 21,194,237 1,488,598 7% Fine and Penalties 2,440,300 372,835 15% Intergovernmental 7,519,082 444,623 6% Licenses & Permits 6,584,940 602,422 9% Miscellaneous 4,799,666 242,515 5% Investment Income 825,000 266,093 32% Taxes 114,384,039 10,635,116 9% Sale of asset - 757,669 0% L&I & other insurance recovery - 47,199 0% Transfer in - Subsidy 295,000 33,163 11% Transfer in Grants 632,460 132,947 21% •Staff is actively monitoring cash flow to maximize on high interest rates. This has resulted in 32% of the budgeted interest income for the biennium to be achieved within the first quarter. •Majority of tax revenue received within first quarter is from prior year activity. •Grant related activity from existing grant awards is strong thus far in the year. Pa g e 7 3 o f 9 1 General Fund 2025-2026 Budget YTD 2025 Actuals % of Budget Expense 171,871,410 16,942,550 10% Operational Capital 576,850 163,705 28% Debt Interest 7,082,921 - 0% Debt Principal 3,896,450 - 0% Personnel Benefits 23,181,518 2,397,379 10% Salaries and Wages 67,851,635 6,508,902 10% Overtime 3,407,711 237,702 7% Services 50,097,711 6,533,693 13% Supplies 7,339,614 163,781 2% Transfer UT Taxes to Streets 2,900,000 375,004 0% Transfer CIP Related (bond)2,662,000 431,666 16% Transfer Animal Shelter 1/3 2,875,000 130,719 5% •Operational capital is higher than expected, however these expenses are one-time expenses related to improvements. •Transfer out – CIP related reflect use of bond proceeds received prior years. Pa g e 7 4 o f 9 1 Utilities Budget Actual % of Budget Elapsed Time Revenue 168,281,921 32,478,623 19%13% Expense 186,281,536 12,294,967 7%13% Net Impact (17,999,615)20,183,656 Utilities Budget Actual % of Budget Revenue 168,281,921 32,478,623 19% Charges for Goods and Services 78,884,805 13,166,752 17% Debt Interest 4,775,966 336,821 7% Fine and Penalties 289,946 43,110 15% Intergovernmental 140,000 2,939,100 2099% Licenses & Permits 539,409 - 0% Investment Interest 536,364 327,976 61% Miscellaneous 13,995,076 26,595 0% LID Assessment & Loan Proceeds 69,120,355 15,638,268 23% Expense 186,281,536 12,294,967 7% Capital Outlays 83,854,024 2,851,175 3% Debt Interest 10,000,174 511,789 5% Debt Principal 34,861,499 74,026 0% Personnel Benefits 5,726,280 501,889 9% Salaries and Wages 13,832,427 1,211,254 9% Overtime 422,408 63,572 15% Services 31,382,460 6,785,195 22% Supplies 6,202,264 296,068 5% Pa g e 7 5 o f 9 1 Fund Budget Actual %Elapsed Time Street Fund Revenue 4,677,189 342,864 7%13% Expense 5,909,486 482,323 8%13% Net Impact (1,232,297)(139,459)13% Ambulance Fund Revenue 26,974,216 2,981,988 11%13% Expense 28,168,507 3,192,667 11%13% Net Impact (1,194,291)(210,679)13% Real Estate Excise Tax Revenue 5,725,000 707,838 12%13% Expense 3,304,569 19,546 1%13% Net Impact 2,420,431 688,292 13% Pa g e 7 6 o f 9 1 Internal Service Funds Budget Actual % of budget Elapsed Time Revenue 28,719,208 3,238,428 11%13% Expense 27,817,305 4,738,072 17%13% Net Impact 901,903 (1,499,644) Budget Actual % of budget Revenue 28,719,208 3,238,428 Charges for Goods and Services 27,693,708 2,978,283 11% Miscellaneous 1,025,500 260,145 25% Expense 27,817,305 4,738,072 Capital Outlays 1,537,566 129,837 8% Personnel Benefits 735,571 73,247 10% Salaries and Wages 1,887,791 181,972 10% Services 20,740,821 4,103,644 20% Supplies 2,915,556 249,372 9% Pa g e 7 7 o f 9 1 Potential Budget Amendments Pu Potential Budget Amount PD Interpretation services 16,000 Software to control irrigation system 7,165 Unanticipated repairs to vactor related to transmission and drive train 30,255 Unanticipated failure of grit classifier 21,200 Pa g e 7 8 o f 9 1 •Permit activity in the first quarter of 2025 remains consistent with the same period in 2024 in terms of volume; however, the total permit valuation has declined by approximately 28%. •Overtime costs have shown a downward trend compared to previous years for the same period. However, it is expected to escalate in the coming months. •The financial impact of recently implemented tariffs has not yet materialized in first quarter, as sales tax revenue lag by about two months. That said, the City is closely tracking potential inflationary effects and will provide timely updates as more data becomes available. •Historically, the City has been highly effective in leveraging external funding sources, securing an average of $24.7 million annually in Federal grants and $6.3 million from State grants over the past three years. However, with potential reductions in Federal funding on the horizon, the City will need to reassess capital project priorities and proactively seek alternative funding opportunities to maintain progress. Pa g e 7 9 o f 9 1 • • • • • • Pa g e 8 0 o f 9 1 •Receipting Lockbox Service: By leveraging the bank’s lockbox service, we have effectively streamlined the handling of mailed payments. This outsourced solution reduces internal processing time and overhead, aligning with LEAN principles of minimizing waste while delivering consistent service at minimal cost to the City. •Proposed PMC Updates: We are proposing changes to the PMC that will simplify workflows, reduce non-value- added steps, and enhance both operational efficiency and customer service—ensuring staff time is focused where it adds the most value. LEAN Process Improvements – Utility Billing Division •Enhanced Communication Strategy: We are implementing proactive communication tools— such as updated FAQs, redesigned utility bills, informational magnets, and additional online forms. These efforts are designed to reduce call volume and improve responsiveness, consistent with a LEAN approach to reduce rework and increase first-contact resolution. •Integrated Online Payment Processor: Transitioning to a fully integrated online payment platform will eliminate redundant manual tasks, reduce errors, and improve data accuracy. This change represents a significant LEAN improvement by streamlining the payment process end-to-end. Pa g e 8 1 o f 9 1 Accounts Payable: •Vendor portal service through the bank significantly reduces administrative workload city-wide related to new vendors or reactivating vendors. •Implementation of electronic payments will reduce costs associated is printing and mailing checks as well as quicker payments to vendors. •Implementation of credit card activity import process will reduce administrative work city-wide related to data entry. This will also help with timely and accurate reporting. •Creation of vendor catalog will likely reduce the number of new vendors and will likely strengthen vendor relationships. Lean Process Improvements – Accounting Division Accounting: •Partnering with IT and HR to automate majority of duties related to creation of new employee in payroll system. •Partnering with IT to streamline payroll reporting to external agencies (IRS, DRS, etc.). This ensures compliance while minimizing administrative burden and turnaround times. •Implementation of bank reconciliation software is projected to cut our current processing time nearly in half. This improves both timeliness and accuracy in financial reporting which will reduce current process by almost half. •Partnering with IT to automate key financial forms and related processes. These enhancements support faster approvals, better tracking, and reduced redundancy. Pa g e 8 2 o f 9 1 AGENDA REPORT FOR: City Council May 6, 2025 TO: Dave Zabell, Interim City Manager City Council Workshop Meeting: 5/12/25 FROM: Maria Serra, Director Public Works SUBJECT: Resolution - Surplus and Sale of City Personal Property (5 minute staff presentation) I. ATTACHMENT(S): Resolution Transaction Documents II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: The sale of the identified surplus equipment is expected to generate approximately $33,000 in revenue, which will be deposited into the appropriate City fund (Fund 470 Stormwater):  2011 Elgin Whirlwind Street Sweeper (Stormwater - Vehicle Number 7434):  Minimum estimated value – $13,000  2005 Ford F550 Sewer Inspection Truck (Stormwater): Estimated value – $20,000 Total Estimated Revenue: $33,000 IV. HISTORY AND FACTS BRIEF: Pursuant to Pasco Municipal Code, disposal of City-owned personal property with an estimated value exceeding $10,000 per item must be authorized by the City Council, including approval of the disposal method. Page 83 of 91 The following surplus vehicles have been identified by the Public Works Department as no longer needed for operational purposes:  2005 Ford F550 Sewer Inspection Truck  2011 Elgin Whirlwind Street Sweeper Both vehicles have reached the end of their useful service lives within City operations and have been replaced with newer, more efficient equipment. Staff has determined that retaining these units is no longer in the City’s best interest, and disposal through sale is appropriate. V. DISCUSSION: Staff recommends approval of the Resolution to formally declare the listed vehicles as surplus and authorize their sale. The proposed method of disposal will be through a public surplus auction or other appropriate means that ensures transparency and maximizes return to the City. Approval of this resolution authorizes the Interim City Manager to proceed with the necessary steps to complete the sale, in accordance with municipal code and of deposit the directing surplus property any applicable procedures proceeds into the corresponding City fund. Page 84 of 91 Resolution – Surplus City Personal Property - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE SALE OF PERSONAL PROPERTY SURPLUS TO CITY NEEDS AND APPROVING THE METHOD OF ITS DISPOSAL. WHEREAS, RCW 35A.11.010 authorizes code cities to dispose of personal property for the common benefit; and WHEREAS, the Pasco Municipal Code Section (PMC) 2.120.090 authorizes the City to sell surplus personal property not needed for public use; and WHEREAS, the PMC Section 2.120.090(2) specifically states that personal property valued in excess of $10,000, per item, may be declared surplus and disposed of with authorization from the City Council, including minimum sale price, if any, and the manner of disposal; and WHEREAS, the PMC Section 2.120.100 specifically states that personal property declared surplus may be disposed of through one of the following methods: (1) By transfer to a governmental agency; (2) In trade as credit toward the purchase of a like article; (3) By sale through competitive sealed bid, public, consignment or internet auction. WHEREAS, the City has determined that it has certain personal property items which are surplus to City needs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That Vehicle Number 7434, a 2011 Elgin Whirlwind Sweeper, Serial Number MV3355D and Vehicle Number 7807, a 2005 Ford F450 CCTV Truck are hereby declared to be surplus to the City needs. Be It Further Resolved, that the Interim City Manager and/or his designee is hereby authorized to provide for the disposal of the items in accordance with any of the methods in PMC 2.120.100, as may be determined in the best interests of the City. Be It Further Resolved, that this Resolution shall take effect immediately. Page 85 of 91 Resolution – Surplus City Personal Property - 2 PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 2025. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, MMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 86 of 91 Page 87 of 91 From:Jason Etzler To:Kim Holst Subject:FW: Unit#7434 2011 Elgin 3300 Whirlwind MV 3000 Date:Friday, April 25, 2025 1:24:27 PM Importance:High Here you go Kim, thank you. From: Cliff Smith <cliff@trucksandauto.com> Sent: Friday, April 25, 2025 1:22 PM To: Jason Etzler <etzlerj@pasco-wa.gov> Cc: Josh Musser <jtmusser@mbauction.com> Subject: Unit#7434 2011 Elgin 3300 Whirlwind MV 3000 [NOTICE: This message originated outside of City of Pasco -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] This unit with vin#JNAPC81L2AAF80205 will be listed in the Auction on May 27th with a Reserve Amount of $13000.00. If it does not bring that amount we will take offers and present them to the City of Pasco to decide if it would be an acceptable amount. Thank You Cliff Smith General Manager image image Office: 509.282.8466 Cell: 509.727.3153 3135 Rickenbacker Drive, Pasco Wa www.trucksandauto.com facebook instagram map Page 88 of 91 Page 89 of 91 Promote a high-quality of life through quality programs, services and appropriate investment and re- investment in community infrastructure. City Council Goals QUALITY OF LIFE 2024-2025 Enhance the long-term viability, value, and service levels of services and programs. FINANCIAL SUSTAINABILITY Promote a highly functional multi-modal transportation system. COMMUNITY TRANSPORTATION NETWORK Implement targeted strategies to reduce crime through strategic investments in infrastructure, staffing, and equipment. COMMUNITY SAFETY Promote and encourage economic vitality. ECONOMIC VITALITY Identify opportunities to enhance City of Pasco identity, cohesion, and image. CITY IDENTITY Page 90 of 91 METAS DEL CONCEJO MUNICIPAL 2024-2025 Promover una alta calidad de vida a través de programas, servicios y inversion apropiada y reinversión en la comunidad infraestructura comunitaria. CALIDAD DE VIDA Promover viabilidad financiera a largo plazo, valor, y niveles de calidad de los servicios y programas. SOSTENIBIILIDAD FINANCIERA Promover un sistema de transporte multimodal altamente funcional. RED DE TRANSPORTE DE LA COMUNIDAD Implementar estrategias específicas para reducir la delincuencia por medios de inversiones estratégicas en infraestructura, personal y equipo. SEGURIDAD DE NUESTRA COMUNIDAD Promover y fomentar vitalidad económica. VITALIDAD ECONOMICA Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen. IDENTIDAD COMUNITARIA Page 91 of 91