HomeMy WebLinkAbout2026.10.13 Council Meeting Packet
AGENDA
City Council Workshop Meeting
7:00 PM - Tuesday, October 13, 2026
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 273049441#
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.
request. upon be provided service interpreter language (Spanish may
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 for scheduled topic each comment may public the on –
discussion, up to 2 minutes per person with a total of 8 minutes per item. If
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opposing sides wish to speak, then both sides receive an equal amount of
time to speak or up to 4 minutes each side.
3 - 31 (a) Resolution & Ordinance - Washington Traffic Safety Commission
(WTSC) Interagency Grant Agree. for DUI OT
Discussion
32 - 112 (b) Presentation - 2027-2028 Budget
Discussion
6. MISCELLANEOUS COUNCIL DISCUSSION
7. EXECUTIVE SESSION (10 minutes)
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)
8. ADJOURNMENT
9. ADDITIONAL NOTES
113 - 114 (a) Adopted Council Goals (Reference Only)
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AGENDA REPORT
FOR: City Council September 1, 2026
TO: Harold Stewart, City Manager City Council Workshop
Meeting: 10/13/26
FROM: Brent Cook, Police Chief
Police Department
SUBJECT: Resolution & Ordinance - Washington Traffic Safety Commission
(WTSC) Interagency Grant Agree. for DUI OT (5-minute staff
presentation)
I. ATTACHMENT(S):
Resolution
Ordinance Amending the Budget
Interagency Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Pasco is estimated to receive up to $19,500 in reimbursement for eligible
officer staffing costs associated with High Visibility Enforcement activities. No
local match or new position is required.
The estimated $19,500 allocation is divided as follows:
Impaired Driving: $8,000
Speed Enforcement: $6,500
Distracted Driving: $2,500
Seat-Belt Enforcement: $2,500
Total: $19,500
The funding is reimbursement-based. The City will incur eligible staffing costs
while conducting approved patrol activities and then request reimbursement
from WTSC after the work is completed and properly documented. The City will
provide vehicles and normal enforcement equipment used during the patrols.
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IV. HISTORY AND FACTS BRIEF:
Background:
The Washington Traffic Safety Commission (WTSC) provides federal traffic-
safety funding to local law enforcement agencies through regional task forces.
The law other with 14 Region participates Department Police Pasco in
enforcement agencies in Benton and Franklin Counties.
The funding supports coordinated High Visibility Enforcement patrols focused
on impaired driving, speeding, distracted driving, and seat-belt violations.
Officers participate in approved enforcement activities, and the City requests
reimbursement for eligible personnel costs after the work is completed and
documented.
For Federal Fiscal Year 2027, WTSC has allocated $82,700 to Region 14.
Pasco's estimated share is $19,500, compared with an estimated $17,500
allocation in the prior year.
Impact (other than fiscal):
The funding allows Pasco Police officers to participate in coordinated regional
traffic-safety enforcement activities without creating a new City program or
position.
The HVE patrols focus on traffic violations associated with serious and fatal
collisions and support efforts to improve roadway safety in the community.
V. DISCUSSION:
Recommendation:
Staff is presenting this item to Council for discussion and direction regarding
the proposed $19,500 WTSC High Visibility Enforcement budget amendment.
Following the workshop discussion, staff will prepare the appropriate ordinance
and bring it forward for formal Council consideration at a subsequent meeting.
Constraints (Time or other considerations):
The WTSC funding operates on a federal fiscal-year schedule. The agreement
and related budget action should be completed in sufficient time for Pasco to
participate in the scheduled 2026–2027 enforcement activities.
Reimbursement is limited to approved work that meets WTSC training,
documentation, and reporting requirements.
Next Steps:
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Following Council's discussion and direction:
Staff will finalize the proposed budget amendment ordinance.
Staff will coordinate the ordinance with the City Attorney and Finance
Department.
The ordinance will be presented to Council for formal consideration at a
future meeting.
Upon approval, the City will recognize and appropriate the $19,500
WTSC reimbursement funding.
The Police Department will coordinate eligible patrols through the
Region 14 traffic-safety task force.
Alternatives:
Council may provide direction to staff regarding the proposed budget
amendment, including requesting additional information or revisions before the
ordinance is brought forward for formal consideration.
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Resolution - _____ ILA - 1
Version 1.9.26
RESOLUTION NO. ____
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERAGENCY
AGREEMENT BETWEEN WASHINGTON TRAFFIC SAFETY COMMISSION
AND PASCO POLICE DEPARTMENT FOR TRAFFIC SAFETY EMPHASIS
PATROLS FOR FISCAL YEAR 2026-2027.
WHEREAS, RCW 39.34, INTERLOCAL COOPERATION ACT, authorizes political
subdivisions to jointly exercise their powers, privileges, or authorities with other political
subdivisions of this state through the execution of an interlocal cooperative or interagency
agreement; and,
WHEREAS, the Washington Traffic Safety Commission (WTSC) has offered grant
funding under Assistance Listing #20.608 to support high visibility DUI enforcement, officer
development, and community outreach efforts by the Pasco Police Department; and
WHEREAS, the Pasco Police Department has been awarded funding under Interagency
Agreement No. ____ in the amount of ___ to carry out dedicated DUI enforcement patrols, officer
development, and community outreach activities during the period of ____ through ____; and
WHEREAS, the grant funding will enhance the Police Department's ability to conduct
targeted DUI enforcement, mentor officers in impaired driving investigations, and educate the
public regarding the dangers of impaired driving; and
WHEREAS, the City Council of the City of Pasco, Washington, has determined that it is
in the best interest of the City to enter into the Interagency Agreement with the Washington Traffic
Safety Commission to support these public safety efforts.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
the of and conditions terms the Pasco approves City the of Council the That City of
Interagency Agreement between the Washington Traffic Safety Commission and the Pasco Police
Department; a copy of which is attached hereto and incorporated herein by reference as Exhibit
A.
Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby
authorized, empowered, and directed to sign and execute said Agreement on behalf of the City of
Pasco.
Be It Further Resolved, that this Resolution shall take effect immediately.
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Resolution - _____ ILA - 2
Version 1.9.26
PASSED by the City Council of the City of Pasco, Washington, on this ____ day of
________________, 2026.
Charles Grimm
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Gabriela Sanchez Ogden Murphy Wallace, PLLC
City Clerk City Attorney
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Ordinance – 2025 – 2026 Operating Budget Amendment - 1
Version 3.6.26
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
AMENDING THE 2026-2027 BIENNIAL OPERATING BUDGET
(ORDINANCE NO. 4749), BY PROVIDING SUPPLEMENT THERETO; TO
CITY’S IN THE APPROPRIATION ADDITIONAL PROVIDE GENERAL
FUND, ALLOCATING FUNDING FOR HIGH VISIBILITY ENFORCEMENT
PATROLS THROUGH THE WASHINGTON TRAFFIC SAFETY
COMMISSION; PROVIDING FOR SEVERABILITY AND ESTABLISHING
AN EFFECTIVE DATE.
WHEREAS, on December 9, 2024, the Pasco City Council approved Ordinance No. 4749,
adopting the 2025–2026 Biennial Operating Budget; and
WHEREAS, the 2025–2026 Biennial Operating Budget has been amended through the
mid-biennial budget amendment and by other budget amendments adopted by the City Council;
and
WHEREAS, the Washington Traffic Safety Commission ("WTSC") provides federal
traffic-safety funding to local law enforcement agencies through regional task forces, and the
Pasco Police Department participates in Region 14 with other law enforcement agencies in
Benton and Franklin Counties; and
WHEREAS, for Federal Fiscal Year 2027, WTSC has allocated $82,700 to Region 14 for
High Visibility Enforcement activities, with Pasco's estimated share of up to $19,500 in
reimbursement for eligible officer staffing costs; and
WHEREAS, Pasco's estimated $19,500 allocation consists of $8,000 for impaired-driving
enforcement, $6,500 for distracted speed enforcement, $2,500 for -driving enforcement, and
$2,500 for seat-belt enforcement; and
WHEREAS, the funding reimburses eligible officer straight-time or overtime salary and
limited employer-paid benefits for approved traffic-safety patrols, with the City completing and
documenting the work before requesting reimbursement; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON DO ORDAIN AS FOLLOWS:
Section 1. the following appropriations and Pursuant to RCW 35A.34.200(1)(d),
revenues are hereby authorized:
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Ordinance – 2025 – 2026 Operating Budget Amendment - 2
Version 3.6.26
Fund EXPENDITURE REVENUE
GENERAL FUND $19,500.00 $19,500.00
Total $19,500.00 $19,500.00
Section 2. That the additions in appropriations and expenditures are hereby declared
to exist in the above funds for the said uses and purposes as shown above, and the proper City
officials are hereby authorized and directed to issue warrants and transfer funds in accordance
with the provision of the Ordinance.
Section 3. Except as amended herein, Ordinance No. 4749 as previously adopted
heretofore shall remain unchanged.
Section 4. Severability. If any section, subsection, sentence, clause, phrase or word
of this ordinance should be held to the invalid or unconstitutional by a court of competent
validity or affect not the unconstitutionality thereof jurisdiction, such invalidity or shall
constitutionality of any other section, subsection, sentence, clause phrase or word of this ordinance.
Section 5. Corrections. Upon approval by the city attorney, the city clerk or the code
reviser are authorized to make necessary corrections to this ordinance, including scrivener’s errors
or fe or clerical local, other reference to mistakes; state, deral or regulations; laws, rules, or
numbering or referencing of ordinances or their sections and subsections.
Section 6. Effective Date. This Ordinance, being an exercise of a power specifically
delegated to the City legislative body, is not subject to referendum, and shall take full force and
effect five (5) days after approval, passage, and publication as required by law.
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Ordinance – 2025 – 2026 Operating Budget Amendment - 3
Version 3.6.26
PASSED by the City Council of the City of Pasco, Washington this ___ day of _____,
2026.
Charles Grimm
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Gabriela Sanchez Ogden Murphy Wallace, PLLC
City Clerk City Attorney
Published: _____________________________
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HVE_IAA_Agreement_Pasco Police Department INTERAGENCY AGREEMENT BETWEEN THEWashington Traffic Safety CommissionANDPasco Police DepartmentTHIS AGREEMENT is made and entered into by and between the Washington Traffic Safety Commission,hereinafter referred to as “WTSC,” and SUB RECIPIENT NAME Pasco Police Department, hereinafterreferred to as “SUB-RECIPIENT.”NOW THEREFORE, in consideration of the authority provided to WTSC in RCW 43.59 and RCW 39.34,terms, conditions, covenants, and performance contained herein, or attached and incorporated and madea part hereof, the parties mutually agree as follows:
1.PURPOSE OF THE AGREEMENT:The purpose of this Agreement is to provide funding, provided by the United States Department ofTransportation (USDOT) National Highway Traffic Safety Administration (NHTSA) and allowed under theAssistance Listings Catalog of Federal Domestic Assistance (CFDA) numbers 20.600 and 20.616 fortraffic safety grant project 2027-HVE-6085-Region 14 HVE, specifically to provide funding for the lawenforcement agencies in WTSC Region 14 to conduct straight time or overtime enforcement activities(traffic safety emphasis patrols) as outlined in the Statement of Work (SOW), in support of Target Zeropriorities. The Target Zero Manager (TZM) and/or the Law Enforcement Liaison (LEL) shall coordinate theSOW with the SUB-RECIPIENT with the goal of reducing traffic crashes.WTSC grant 2027-HVE-6085-Region 14 HVE was awarded to the WTSC Region 14 to supportcollaborative efforts to conduct HVE activities. By signing this agreement, the SUB-RECIPIENT can seekreimbursement for straight time or overtime for approved law enforcement activity expenses incurred asa participant in the region’s HVE grant.2.PERIOD OF PERFORMANCEThe period of performance of this Agreement shall commence upon the date of execution by both parties,but not earlier than October 1, 2026, and remain in effect until September 30, 2027, unless terminatedsooner, as provided herein.3.SCOPE OF WORK3.1.1 Problem ID and/or OpportunityAlthough Washington has experienced encouraging declines in traffic fatalities since the record-high yearof 2023, traffic deaths remain substantially above pre-pandemic levels, and risky driving behaviorscontinue to claim hundreds of lives each year. After reaching 809 fatalities in 2023, the highest annualtotal since 1990, fatalities declined to 737 in 2024 and an estimated 659 in 2025. Despite this progress,Page 1 of 21
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Washington has not yet returned to pre-COVID fatality levels, and the primary behavioral factors targetedthrough High Visibility Enforcement remain major contributors to fatal and serious injury crashes.In 2025 alone:•382 fatalities involved an impaired driver.•189 fatalities involved speeding.•115 fatalities involved distracted driving.•122 fatalities involved unrestrained vehicle occupants.•103 motorcyclists were killed.•160 pedestrians and other active transportation users lost their lives, representing the third-highestannual total on record despite recent declines.While many traffic safety measures improved during 2024 and 2025, several areas remain concerning.Fatalities involving drivers age 70 and older increased for the second consecutive year, heavy truck-involved fatalities also increased in 2025, and active transportation fatalities continue to remainhistorically high. In addition, fatal crashes continue to occur statewide, with every county experiencing atleast one fatal crash during the previous three-year period.This project will fund coordinated High Visibility Enforcement mobilizations focused on impaired driving,speeding, distracted driving, occupant protection, motorcycle safety, and pedestrian and bicycle safety.Enforcement activities will be organized through local Target Zero Managers (TZMs), the statewide LawEnforcement Liaison (LEL) network, local Target Zero Task Forces, and the Washington State Patrol tomaximize visibility, improve interagency coordination, and reduce crashes caused by high-risk drivingbehaviors.3.1.2 Project Purpose and StrategiesThis project will fund High Visibility Enforcement (HVE) and Traffic Safety Enforcement Program (TSEP)patrols to prevent impaired driving, distracted driving, seat belt use, speeding, and motorcycle safety.High Visibility Enforcement (HVE) and Traffic Safety Enforcement Program (TSEP) patrols are designedto create deterrence by increasing the expectation of a citation/fine/arrest. Officers may also removehigh risk (impaired) drivers when encountered. So together, this countermeasure works by preventingdangerous driving behaviors and stopping those who still decide to engage in those behaviors.Funding and events will be organized by local TZMs, LELs, and their local Target Zero Task Force. Taskforces will use local data and professional judgement to determine enforcement priorities for theirjurisdictions and will schedule and plan enforcement and outreach activities.Regional participation in the following National Campaigns is mandatory:•Impaired driving enforcement during the Holiday DUI campaign (December 2026).•Distracted driving enforcement during the Distracted Driving campaign (April 2027)•Seat belt enforcement during the Click It or Ticket campaign (May 2027).•Impaired driving enforcement during the Summer DUI campaign (August 2027).These patrols will also be coordinated with the Washington State Patrol (WSP). Target Zero Managerswill establish or strengthen relationships with key WSP district personnel to improve interagencyPage 2 of 21
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coordination with the WSP.3.1.3 Requirements for National Mobilizations and Traffic Safety Enforcement Program (TSEP)3.1.3.1.HVE events will be data informed; based on crash data, anecdotal evidence, and the professionaljudgement of task force members. WTSC strongly believes in the expertise of local officers to understandthe highest priority areas in their communities to focus their efforts.3.1.3.2.The SUB-RECIPIENT will ensure that all officers participating in these patrols are BAC certifiedand have received and passed the SFST training.3.1.3.3.SUB-RECIPIENT will ensure all officers participating in Impaired Driving patrols have receivedAdvanced Roadside Impaired Driving Enforcement (ARIDE) training.3.1.3.4.WTSC recommends that the SUB-RECIPIENT ensures that officers use TraCS to issue writtenwarnings instead of delivering them verbally. Recording each stop within the TraCS system not onlyformalizes the warning but also provides valuable information for future reference. This documentationallows subsequent officers to quickly review a driver’s prior interactions, fostering greater awareness andcontinuity in enforcement efforts. By maintaining this record, officers can make more informed decisionsduring future stops and contribute to a consistent approach in managing driver behavior.3.1.3.5.Impaired driving enforcement is a multifaceted process, requiring officers to recognize riskydriving behaviors, carry out thorough investigations, and handle arrests and processing efficiently. WTSCadvises that officers assigned to impaired driving HVE patrols should have completed at least 10 DUIarrests in the past two years. By setting this standard, WTSC ensures that participating officers possessthe necessary experience and skills to accurately identify and apprehend impaired drivers during thesespecialized patrols.3.1.3.6.SUB-RECIPIENT shall ensure all participating personnel will use the WEMS system provided bythe WTSC to record all activities in digital activity logs conducted by their commissioned officerspursuant to the HVE events. Participating officers will fill out all applicable fields of the digital activity logand use the comments field to provide details on irregularities, challenges or other details that would helpexplain what was encountered during their shift. SUB- RECIPIENT will also ensure all supervisors andfiscal staff have the ability to review and edit those activity logs.3.1.3.7.If an officer's contacts per hour rate falls below 2.0, the officer must provide a commentexplaining the circumstance. However, this requirement does not apply in cases where a DUI arrest hasbeen made.3.1.4 Project Intent and Best Practice3.1.4.1.SUB-RECIPIENT is encouraged to help their Region Task Force fulfill the requirement toparticipate in the four mandatory National Campaigns. (Holiday DUI campaign in December 2026,Distracted Driving campaign in April 2027, Click It or Ticket campaign in May 2027 and Summer DUIcampaign in August 2027).Page 3 of 21
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NOTE: Agencies must participate in speed or impaired driving enforcement under this agreement to beeligible to receive funding under the WASPC equipment grant.3.1.4.2.SUB-RECIPIENT is strongly encouraged to participate in their task force to plan and executeenforcement events.3.1.4.3.Regional task force will be submitting quarterly progress reports and SUB-RECIPIENT isencouraged to participate to the fullest extent possible. Quarterly progress reports are due January 15,April 15, July 15, and October 15.3.1.4.4.WTSC encourages participating officers to prioritize violations that directly contribute to the injuryand death of road users, such as impaired driving, speeding, distracted driving, non-restraint, etc.3.1.4.5.SUB-RECIPIENT should promote patrol events through all earned, owned and, if funded, paidmedia that is available so that the public is made aware of the event before, during, and after theenforcement takes place. It is best practice to translate messages as needed and invite local mediainvolvement in the effort to reach communities in which HVE will occur.3.1.4.6.SUB-RECIPIENT should strive to actively enforce traffic safety laws focused on collision causingbehaviors in priority areas throughout the year outside of HVE events.3.1.4.7.When participating in motorcycle patrols SUB-RECIPIENT should focus on the illegal and unsafedriving actions of all motor vehicles interacting with motorcycles. This includes speeding, failure to yieldto a motorcycle, following too closely to a motorcycle, distracted driving, etc.3.1.4.8.When participating in motorcycle patrols SUB-RECIPIENT should ensure that enforcement willfocus on the illegal and unsafe driving actions of motorcycles that are known to cause serious and fatalcrashes. This includes impaired driving, speeding, and following too closely.3.1.4.9.Performance will be monitored by the regional TZM, LEL, and Task Force, as well as WTSC. WTSCreserves the right to designate specific officers as ineligible for cost reimbursement. This will occur if anofficer is determined to not have not met the purpose/intent of this grant in multiple emphasis patrols.3.1.4.10.Funds can be used to support the mentoring of officers in traffic enforcement. This can befocused on impaired driving, or general traffic enforcement.For DUI mentorship, WTSC has found it to be best practice to include a mix of instruction and practicalexperience. The mentor should be a DRE when possible, or a highly effective DUI emphasis patrol officerwith a minimum of ARIDE training. Mentor/mentee activities will be pre-approved by the TZM or LEL afterthe mentee submits their interest. Mentees are eligible to participate in impaired driving HVE patrolswithout ARIDE certification.
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3.1.4.11.Community outreach/collaboration: Funds can be used to pay for traffic safety focusedcommunity outreach and collaboration activities. The operational approach for regional communityoutreach and collaboration activities should be developed at the Task Force level and be approved by theWTSC. WTSC recommends that these activities include an opportunity for the audience to providefeedback on local traffic safety priorities and activities, which ideally will influence the region's plan fortraffic safety programming.3.1.4.12.In order to receive funding from this grant, agencies must participate with the regional trafficsafety task force/coalition in the planning efforts for these activities.3.1.4.13.WTSC also encourages all law enforcement agencies in Washington to utilize WTSC's dataanalysis resources, such as interactive dashboards and data from a statewide attitudinal survey, as welltheir regional Target Zero Manager to identify priorities for engaging with the community.3.1.4.14.WTSC will provide tools for documenting community collaboration activities, such as the WEMSactivity log.3.1.5 NATIONAL AND STATE-WIDE MOBILIZATIONSNot all agencies are required to participate in all of the mobilizations listed below. However, the regionmust have some law enforcement participation in all of the mobilizations listed. Dates are tentative andmay change when NHTSA publishes their FFY2027 mobilization calendar.Mobilization Dates•Holiday DUI December 14, 2026 – January 3, 2027•Put the Phone Away or Pay April 5 – 12, 2027•Click It or Ticket May 17 – June 6, 2027•Ride Safe Ride On (optional if funded)July 2027 (Dates TBD)•DUI Drive Sober or Get Pulled Over August 11 – September 5, 20273.2 PROJECT GOALSPrevent traffic crashes to reduce traffic related deaths and serious injuries through active, visible,consistent, and targeted traffic law enforcement, law enforcement training, and community outreach. Lawenforcement can have a profound effect on traffic safety and this project aims to increase participationto accomplish that.3.3 COMPENSATION3.3.1 The Compensation for the straight time or overtime work provided in accordance with thisAgreement has been established under the terms of RCW 39.34. The cost of accomplishing the workdescribed in the SOW will not exceed dollar total from amounts listed below. Payment for satisfactoryperformance shall not exceed this amount unless the WTSC and SUB-RECIPIENT mutually agree to ahigher amount in a written Amendment to this Agreement executed by both the WTSC and SUB-RECIPIENT. Comp-time is not considered overtime and will not be approved for payment. All lawenforcement agencies who are active members of the Region’s traffic safety task force with a fullyPage 5 of 21
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executed grant agreement are eligible to participate in this grant.3.3.2 WTSC will reimburse for personnel straight time or overtime expenses at 150 percent of theofficer’s normal salary rate plus SUB-RECIPIENT’s contributions to employee benefits, limited to thefollowing:•FICA•Medicare•Any portion of L&I that is paid by the employer (SUB-RECIPIENT)•Retirement contributions paid by the employer (SUB-RECIPIENT) can be included if the contribution isbased on a percentage of their hours worked.Health insurance, or any other benefits not listed above, are not eligible for reimbursement.The SUB-RECIPIENT will provide law enforcement officers with appropriate equipment (e.g., vehicles,radars, portable breath testers, etc.) to participate in the emphasis patrols.3.3.3 Funding alterations are permitted as follows: Upon agreement by the regional TZM and all otherparties impacted by a proposed budget alteration, the budget category amounts may be increased ordecreased without amending this agreement, so long as the total grant award amount does not increase.HVE grant funds should be managed collaboratively by the SUB-RECIPIENT and the TZM.These alterations must be requested through email communication between the regional TZM andassigned WTSC Program Manager. This communication shall include details of the requested budgetmodifications and a description of why these changes are needed. The TZM will also send an updatedquarterly Operations Plan to the WASPC representative monitoring the project if the budget modificationwill result in changes to the previously submitted plan.3.3.4 These funds, designated for salaries and benefits, are intended to pay for the hourly straight time orovertime costs and proportional amounts of fringe benefits of commissioned staff pursuing the activitiesdescribed in the statement of work. These funds may not be used for any other purpose for example anywork required to maintain a law enforcement commission including recertification trainings like firearmqualification. This agreement is expressly designated to fund salaries and benefits. By signing thisagreement, SUB-RECIPIENT agrees to supply all necessary equipment and vehicles needed to accomplishthe work in the scope of work. WTSC is not responsible for any equipment that is lost, stolen, ordestroyed in the execution of the scope of work.3.3.5 Dispatch: WTSC will reimburse communications officers/dispatch personnel for work on thisproject providing SUB- RECIPIENT has received prior approval from their region’s TZM. This activity mustbe overtime and only the expenses listed in section 3.2 and its subsections will be reimbursed.3.3.6 Transport Officers: WTSC will reimburse transport officers for their work on this project providingSUB-RECIPIENT has received approval from their regions TZM. The TZM will work with the regional LEL todetermine if need is warranted for the type of HVE activity. This activity must be overtime and only thePage 6 of 21
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expenses listed in section 3.2 and its subsections will be reimbursed.3.3.7 The law enforcement agency involved will not schedule individual officer overtime shifts for longerthan eight hours. WTSC understands there may be instances when more than eight hours are billed dueto DUI processing or other reasons and an explanation should be provided on the WEMS Officer ActivityLog.3.3.8 The law enforcement agency involved will ensure that any reserve officer for whom reimbursementis claimed has exceeded his/her normal weekly working hours when participating in an emphasis patroland is authorized to be paid at the amount requested. Reserve officers may only be paid at the normalhourly rate and not at the 150 percent overtime rate.3.4 PROJECT COSTSThe WTSC has awarded $82,700.00 to the WTSC Region 14 Traffic Safety Task Force for the purpose ofconducting coordinated HVE enforcement and community outreach/collaboration activities. The fundingmust be used for traffic safety purposes in the areas of impaired driving, distracted driving, occupantrestraint use, speeding, and motorcycle safety. See the project in WEMS for an updated distribution offunding by specific emphasis area.By signing this agreement, the SUB-RECIPIENT can seek reimbursement for approved straight time orovertime expenses incurred as a participant in this grant. Funds are expressly designated for staffingactivities and may not be used for other expenses that may be incurred, such as vehicle damage, supplyreplacement, etc. All activity must be coordinated by the region’s traffic safety task force and TZM to beeligible for reimbursement.APPLICABLE STATE AND FEDERAL TERMS AND CONDITIONS:4.ACTIVITY REPORTSThe SUB-RECIPIENT agrees to have all personnel who work HVE patrols submit a WEMS Officer ActivityLog within 24 hours of the end of all shifts worked. These same logs will be associated with invoices asdetailed in the “BILLING PROCEDURE” section. Use of the Officer Activity Log in the WTSC’s online grantmanagement system, WEMS, is required. Supervisor review and accuracy certification will also be done inWEMS.5.ADVANCE PAYMENTS PROHIBITEDNo payments in advance of or in anticipation of goods or services to be provided under this Agreementshall be made by the WTSC.6.AGREEMENT ALTERATIONS AND AMENDMENTSThis Agreement may be amended by mutual agreement of the Parties in the form of a written request toamend this Agreement. Such amendments shall only be binding if they are in writing and signed bypersonnel authorized to bind each of the Parties. Changes to the budget, SUB-RECIPIENT’S PrimaryPage 7 of 21
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Contact, and WTSC Program Manager can be made through email communication and signatures are notrequired.7.ALL WRITINGS CONTAINED HEREINThis Agreement contains all the terms and conditions agreed upon by the parties. No otherunderstandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed toexist or to bind any of the parties hereto.8.ASSIGNMENTThe SUB-RECIPIENT may not assign the work to be provided under this Agreement, in whole or in part,without the express prior written consent of the WTSC, which consent shall not be unreasonably withheld.The SUB-RECIPIENT shall provide the WTSC a copy of all third-party contracts and agreements enteredinto for purposes of fulfilling the SOW. Such third-party contracts and agreements must follow applicablefederal, state, and local law, including but not limited to procurement law, rules, and procedures. If any ofthe funds provided under this Agreement include funds from NHTSA, such third-party contracts andagreements must include the federal provisions set forth in this Agreement in sections 32 through 40.9.ATTORNEYS’ FEESIn the event of litigation or other action brought to enforce the Agreement terms, each party agrees tobear its own attorney fees and costs.10.BILLING PROCEDUREAll invoices for reimbursement of HVE activities will be done using the WTSC’s grant managementsystem, WEMS. WEMS Officer Activity logs will be attached to invoices, directly linking the cost of theactivity to the invoice. Because the activity, approval, and invoicing are all done within WEMS, no back updocumentation is required in most cases.Once submitted by the SUB-RECIPIENT, invoices are routed to the regional TZM for review and approval.The TZM will submit all approved invoices to the WTSC via WEMS within 10 days of receipt.Payment to the SUB-RECIPIENT for approved and completed work will be made by warrant or accounttransfer by WTSC within 30 days of receipt of such properly documented invoices acceptable to WTSC.Upon expiration of the Agreement, any claim for payment not already made shall be submitted within 45days after the expiration date of this Agreement. All invoices for goods received or services performed onor prior to June 30, 2027, must be received by WTSC no later than August 10, 2027. All invoices for goodsreceived or services performed between July 1, 2027 and September 30, 2027, must be received by WTSCno later than November 15, 2027.11.CONFIDENTIALITY / SAFEGUARDING OF INFORMATIONThe SUB-RECIPIENT shall not use or disclose any information concerning the WTSC, or information whichmay be classified as confidential, for any purpose not directly connected with the administration of thisPage 8 of 21
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Agreement, except with prior written consent of the WTSC, or as may be required by law.12.COST PRINCIPLESCosts incurred under this Agreement shall adhere to provisions of 2 CFR Part 200 Subpart E.13.COVENANT AGAINST CONTINGENT FEESThe SUB-RECIPIENT warrants that it has not paid, and agrees not to pay, any bonus, commission,brokerage, or contingent fee to solicit or secure this Agreement or to obtain approval of any applicationfor federal financial assistance for this Agreement. The WTSC shall have the right, in the event of breachof this section by the SUB-RECIPIENT, to annul this Agreement without liability.14.DISPUTES14.1.Disputes arising in the performance of this Agreement, which are not resolved by agreement of theparties, shall be decided in writing by the WTSC Deputy Director or designee. This decision shall be finaland conclusive, unless within 10 days from the date of the SUB-RECIPIENT’s receipt of WTSC’s writtendecision, the SUB-RECIPIENT furnishes a written appeal to the WTSC Director. The SUB-RECIPIENT’sappeal shall be decided in writing by the Director or designee within 30 days of receipt of the appeal bythe Director. The decision shall be binding upon the SUB-RECIPIENT and the SUB-RECIPIENT shall abideby the decision.14.2.Performance During Dispute. Unless otherwise directed by WTSC, the SUB-RECIPIENT shallcontinue performance under this Agreement while matters in dispute are being resolved.14.3 In the event that either Party deems it necessary to institute legal action or proceedings to enforceany right or obligation under this Agreement, the Parties hereto agree that any such action or proceedingsshall be brought in the superior court situated in Thurston County, Washington.15.GOVERNANCE15.1.This Agreement is entered into pursuant to and under the authority granted by the laws of the stateof Washington and any applicable federal laws. The provisions of this Agreement shall be construed toconform to those laws.15.2.In the event of an inconsistency in the terms of this Agreement, or between its terms and anyapplicable statute or rule, the inconsistency shall be resolved by giving precedence in the following order:15.2.1.Applicable federal and state statutes and rules15.2.2.Terms and Conditions of this Agreement15.2.3.Any Amendment executed under this Agreement15.2.4.Any SOW executed under this Agreement
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15.2.5.Any other provisions of the Agreement, including materials incorporated by reference16.INCOMEAny income earned by the SUB-RECIPIENT from the conduct of the SOW (e.g., sale of publications,registration fees, or service charges) must be accounted for, reported to WTSC, and that income must beapplied to project purposes or used to reduce project costs.17.INDEMNIFICATION17.1.To the fullest extent permitted by law, the SUB-RECIPIENT shall indemnify and hold harmless theWTSC, its officers, employees, and agents, and process and defend at its own expense any and all claims,demands, suits at law or equity, actions, penalties, losses, damages, or costs of whatsoever kind(“claims”) brought against WTSC arising out of or in connection with this Agreement and/or the SUB-RECIPIENT’s performance or failure to perform any aspect of the Agreement. This indemnity provisionapplies to all claims against WTSC, its officers, employees, and agents arising out of, in connection with,or incident to the acts or omissions of the SUB-RECIPIENT, its officers, employees, agents, contractors,and subcontractors. Provided, however, that nothing herein shall require the SUB-RECIPIENT to indemnifyand hold harmless or defend the WTSC, its agents, employees, or officers to the extent that claims arecaused by the negligent acts or omissions of the WTSC, its officers, employees or agents; and providedfurther that if such claims result from the concurrent negligence of:(a) the SUB-RECIPIENT, its officers, employees, agents, contractors, or subcontractors, and(b) the WTSC, its officers, employees, or agents, or involves those actions covered by RCW 4.24.115, theindemnity provisions provided herein shall be valid and enforceable only to the extent of the negligence ofthe SUB- RECIPIENT, its officers, employees, agents, contractors, or subcontractors.17.2.The SUB-RECIPIENT agrees that its obligations under this Section extend to any claim, demandand/or cause of action brought by, or on behalf of, any of its employees or agents in the performance ofthis agreement. For this purpose, the SUB- RECIPIENT, by mutual negotiation, hereby waives with respectto WTSC only, any immunity that would otherwise be available to it against such claims under theIndustrial Insurance provisions chapter 51.12 RCW.17.3.The indemnification and hold harmless provision shall survive termination of this Agreement.18.INDEPENDENT CAPACITYThe employees or agents of each party who are engaged in the performance of this Agreement shallcontinue to be employees or agents of that party and shall not be considered for any purpose to beemployees or agents of the other party.19.INSURANCE COVERAGE19.1.The SUB-RECIPIENT shall comply with the provisions of Title 51 RCW, Industrial Insurance, ifrequired by law.19.2.If the SUB-RECIPIENT is not required to maintain insurance in accordance with Title 51 RCW, prior toPage 10 of 21
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the start of any performance of work under this Agreement, the SUB-RECIPIENT shall provide WTSC withproof of insurance coverage (e.g., vehicle liability insurance, private property liability insurance, orcommercial property liability insurance), as determined appropriate by WTSC, which protects the SUB-RECIPIENT and WTSC from risks associated with executing the SOW associated with this Agreement.20.LICENSING, ACCREDITATION, AND REGISTRATIONThe SUB-RECIPIENT shall comply with all applicable local, state, and federal licensing, accreditation, andregistration requirements and standards necessary for the performance of this Agreement. The SUB-RECIPIENT shall complete registration with the Washington State Department of Revenue, if required, andbe responsible for payment of all taxes due on payments made under this Agreement.21.RECORDS MAINTENANCE21.1.During the term of this Agreement and for six years thereafter, the SUB-RECIPIENT shall maintainbooks, records, documents, and other evidence that sufficiently and properly reflect all direct and indirectcosts expended in the performance of the services described herein. These records shall be subject toinspection, review, or audit by authorized personnel of the WTSC, the Office of the State Auditor, andfederal officials so authorized by law. All books, records, documents, and other material relevant to thisAgreement will be retained for six years after expiration. The Office of the State Auditor, federal auditors,the WTSC, and any duly authorized representatives shall have full access and the right to examine any ofthese materials during this period.21.2.Records and other documents, in any medium, furnished by one party to this Agreement to the otherparty, will remain the property of the furnishing party, unless otherwise agreed. The receiving party will notdisclose or make available this material to any third parties without first giving notice to the furnishingparty and giving them a reasonable opportunity to respond. Each party will utilize reasonable securityprocedures and protections to assure that records and documents provided by the other party are noterroneously disclosed to third parties.22.RIGHT OF INSPECTIONThe SUB-RECIPIENT shall provide right of access to its facilities to the WTSC or any of its officers, or toany other authorized agent or official of the state of Washington or the federal government, at allreasonable times, in order to monitor and evaluate performance, compliance, and/or quality assuranceunder this Agreement. The SUB-RECIPIENT shall make available information necessary for WTSC tocomply with the right to access, amend, and receive an accounting of disclosures of their PersonalInformation according to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) or anyregulations enacted or revised pursuant to the HIPAA provisions and applicable provisions of WashingtonState law. The SUB- RECIPIENT shall upon request make available to the WTSC and the United StatesSecretary of the Department of Health and Human Services all internal policies and procedures, books,and records relating to the safeguarding, use, and disclosure of Personal Information obtained or used asa result of this Agreement.23.RIGHTS IN DATA23.1.WTSC and SUB-RECIPIENT agree that all data and work products (collectively called “WorkPage 11 of 21
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Product”) pursuant to this Agreement shall be considered works made for hire under the U.S. CopyrightAct, 17 USC §101 et seq., and shall be owned by the state of Washington. Work Product includes, but isnot limited to, reports, documents, pamphlets, advertisement, books, magazines, surveys, studies,computer programs, films, tapes, sound reproductions, designs, plans, diagrams, drawings, software,and/or databases to the extent provided by law. Ownership includes the right to copyright, register thecopyright, distribute, prepare derivative works, publicly perform, publicly display, and the ability tootherwise use and transfer these rights.23.2.If for any reason the Work Product would not be considered a work made for hire under applicablelaw, the SUB- RECIPIENT assigns and transfers to WTSC the entire right, title, and interest in and to allrights in the Work Product and any registrations and copyright applications relating thereto and anyrenewals and extensions thereof.23.3.The SUB-RECIPIENT may publish, at its own expense, the results of project activities without priorreview by the WTSC, provided that any publications (written, visual, or sound) contain acknowledgment ofthe support provided by NHTSA and the WTSC. Any discovery or invention derived from work performedunder this project shall be referred to the WTSC, who will determine through NHTSA whether patentprotections will be sought, how any rights will be administered, and other actions required to protect thepublic interest.24.SAVINGSIn the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way afterthe effective date of this Agreement and prior to completion of the SOW under this Agreement, the WTSCmay terminate the Agreement under the "TERMINATION FOR CONVENIENCE" clause, without the 30-daynotice requirement. The Agreement is subject to renegotiation at the WTSC’s discretion under any newfunding limitations or conditions.25.SEVERABILITYIf any provision of this Agreement or any provision of any document incorporated by reference shall beheld invalid, such invalidity shall not affect the other provisions of this Agreement which can be giveneffect without the invalid provision, if such remainder conforms to the requirements of applicable law andthe fundamental purpose of this Agreement, and to this end the provisions of this Agreement aredeclared to be severable.26.SITE SECURITYWhile on WTSC premises, the SUB-RECIPIENT, its agents, employees, or sub-contractors shall conform inall respects with all WTSC physical, fire, or other security policies and applicable regulations.27.TAXESAll payments of payroll taxes, unemployment contributions, any other taxes, insurance, or other suchexpenses for the SUB- RECIPIENT or its staff shall be the sole responsibility of the SUB-RECIPIENT.
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28.TERMINATION FOR CAUSEIf the SUB-RECIPIENT does not fulfill in a timely and proper manner its obligations under this Agreementor violates any of these terms and conditions, the WTSC will give the SUB-RECIPIENT written notice ofsuch failure or violation, and may terminate this Agreement immediately. At the WTSC’s discretion, theSUB-RECIPIENT may be given 15 days to correct the violation or failure. In the event that the SUB-RECIPIENT is given the opportunity to correct the violation and the violation is not corrected within the 15-day period, this Agreement may be terminated at the end of that period by written notice of the WTSC.29.TERMINATION FOR CONVENIENCEExcept as otherwise provided in this Agreement, either party may terminate this Agreement, withoutcause or reason, with 30 days written notice to the other party. If this Agreement is so terminated, theWTSC shall be liable only for payment required under the terms of this Agreement for services renderedor goods delivered prior to the effective date of termination.30.TREATMENT OF ASSETS30.1.Title to all property furnished by the WTSC shall remain property of the WTSC. Title to all propertyfurnished by the SUB- RECIPIENT for the cost of which the SUB-RECIPIENT is entitled to be reimbursed asa direct item of cost under this Agreement shall pass to and vest in the WTSC upon delivery of suchproperty by the SUB-RECIPIENT. Title to other property, the cost of which is reimbursable to the SUB-RECIPIENT under this Agreement, shall pass to and vest in the WTSC upon (i) issuance for use of suchproperty in the performance of this Agreement, or (ii) commencement of use of such property in theperformance of this Agreement, or (iii) reimbursement of the cost thereof by the WTSC in whole or in part,whichever first occurs.30.2.Any property of the WTSC furnished to the SUB-RECIPIENT shall, unless otherwise provided hereinor approved by the WTSC, be used only for the performance of this Agreement.30.3.The SUB-RECIPIENT shall be responsible for any loss or damage to property of the WTSC whichresults from the negligence of the SUB-RECIPIENT or which results from the failure on the part of theSUB-RECIPIENT to maintain and administer that property in accordance with sound managementpractices.30.4.If any WTSC property is lost, destroyed, or damaged, the SUB-RECIPIENT shall immediately notifythe WTSC and shall take all reasonable steps to protect the property from further damage.30.5.The SUB-RECIPIENT shall surrender to the WTSC all property of the WTSC upon completion,termination, or cancellation of this Agreement.30.6.All reference to the SUB-RECIPIENT under this clause shall also include SUB-RECIPIENT'semployees, agents, or sub- contractors.31.WAIVERA failure by either party to exercise its rights under this Agreement shall not preclude that party fromPage 13 of 21
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subsequent exercise of such rights and shall not constitute a waiver of any other rights under thisAgreement.APPLICABLE CERTIFICATIONS AND ASSURANCES FOR HIGHWAY SAFETY GRANTS (23 CFR PART 1300APPENDIX A):In all future references to sub-recipients, the term "SUB-RECIPIENT" shall also apply to its agents,employees, sub-contractors, and other participants of Federal financial assistance under such program.SUB-RECIPIENT, its agents, employees, sub-contractors, and other participants will comply with allrequirements imposed or pursuant to the Acts, the Regulations, and this Assurance.32.FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA)In accordance with FFATA, the SUB-RECIPIENT shall, upon request, provide WTSC the names and totalcompensation of the five most highly compensated officers of the entity, if the entity in the precedingfiscal year received 80 percent or more of its annual gross revenues in federal awards, received$25,000,000 or more in annual gross revenues from federal awards, and if the public does not haveaccess to information about the compensation of the senior executives of the entity through periodicreports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 or section 6104 of theInternal Revenue Code of 1986.33.FEDERAL NONDISCRIMINATION (Title VI, 42 U.S.C. § 2000d et seq.)Instructions for Lower Tier Certification33.1.By signing this Agreement, the SUB-RECIPIENT (hereinafter in this section referred to as the “lowertier participant”) is providing the certification set out below and agrees to comply with the requirementsof 2 CFR part 180 and 23 CFR part 1200.33.2.The certification in this section is a material representation of fact upon which reliance was placedwhen this transaction was entered into. If it is later determined that the lower tier participant knowinglyrendered an erroneous certification, in addition to other remedies available to the federal government, thedepartment or agency with which this transaction originated may pursue available remedies, includingsuspension and/or debarment.33.3.The lower tier participant shall provide immediate written notice to the WTSC if at any time thelower tier participant learns that its certification was erroneous when submitted or has become erroneousby reason of changed circumstances.33.4.The terms covered transaction, civil judgement, debarment, suspension, ineligible, participant,person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and1200.33.5.The lower tier participant agrees by signing this Agreement that it shall not knowingly enter into anylower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpartPage 14 of 21
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9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this coveredtransaction, unless authorized by WTSC.33.6.The lower tier participant further agrees by signing this Agreement that it will include the clausetitled “Instructions for Lower Tier Certification” including the “Certification Regarding Debarment,Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transaction,” without modification,in all lower tier covered transactions and in all solicitations for lower tier covered transactions, and willrequire lower tier participants to comply with 2 CFR part 180 and 23 CFR part 1200.33.7.A participant in a covered transaction may rely upon a certification of a prospective participant in alower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4,debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows thatthe certification is erroneous. A participant is responsible for ensuring that its principals are notsuspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibilityof its principals, as well as the eligibility of any prospective lower tier participants, each participant may,but is not required to, check the System for Award Management Exclusions website(https://www.sam.gov/).33.8.Nothing contained in the foregoing shall be construed to require establishment of a system ofrecords in order to render in good faith the certification required by this clause. The knowledge andinformation of a participant is not required to exceed that which is normally possessed by a prudentperson in the ordinary course of business dealings.33.9.Except for transactions authorized under paragraph 33.5. of these instructions, if a participant in acovered transaction knowingly enters into a lower tier covered transaction with a person who is proposedfor debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excludedfrom participation in this transaction, in addition to other remedies available to the Federal government,the department or agency with which this transaction originated may pursue available remedies, includingsuspension or debarment.Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier CoveredTransactions33.10.The lower tier participant certifies, by signing this Agreement, that neither it nor its principals arepresently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded fromparticipation in this transaction by any federal department or agency.33.11.Where the lower tier participant is unable to certify to any of the statements in this certification,such participant shall attach an explanation to this Agreement.34.THE DRUG-FREE WORKPLACE ACT OF 1988 (41 U.S.C. 8103)34.1.The SUB-RECIPIENT shall:
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34.1.1.Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing,possession, or use of a controlled substance is prohibited in the SUB-RECIPIENT’s workplace, and shallspecify the actions that will be taken against employees for violation of such prohibition.34.1.2.Establish a drug-free awareness program to inform employees about the dangers of drug abuse inthe workplace; the SUB- RECIPIENT’s policy of maintaining a drug-free workplace; any available drugcounseling, rehabilitation, and employee assistance programs; and the penalties that may be imposedupon employees for drug violations occurring in the workplace.34.1.3.Make it a requirement that each employee engaged in the performance of the grant be given acopy of the statement required by paragraph 34.1.1. of this section.34.1.4.Notify the employee in the statement required by paragraph 34.1.1. of this section that, as acondition of employment under the grant, the employee will abide by the terms of the statement, notifythe employer of any criminal drug statute conviction for a violation occurring in the workplace no laterthan five days after such conviction, and notify the WTSC within 10 days after receiving notice from anemployee or otherwise receiving actual notice of such conviction.34.1.5.Take one of the following actions within 30 days of receiving notice under paragraph 34.1.3. ofthis section, with respect to any employee who is so convicted: take appropriate personnel action againstsuch an employee, up to and including termination, and/or require such employee to participatesatisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by afederal, state, or local health, law enforcement, or other appropriate agency.34.1.6.Make a good faith effort to continue to maintain a drug-free workplace through implementation ofall of the paragraphs above.35.FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA)In accordance with FFATA, the SUB-RECIPIENT shall, upon request, provide WTSC the names and totalcompensation of the five most highly compensated officers of the entity, if the entity in the precedingfiscal year received 80 percent or more of its annual gross revenues in federal awards, received$25,000,000 or more in annual gross revenues from federal awards, and if the public does not haveaccess to information about the compensation of the senior executives of the entity through periodicreports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 or section 6104 of theInternal Revenue Code of 1986.36.FEDERAL LOBBYING36.1.The undersigned certifies, to the best of his or her knowledge and belief, that:36.1.1.No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned,to any person for influencing or attempting to influence an officer or employee of any agency, a Memberof Congress, an officer or employee of Congress, or an employee of a Member of Congress in connectionwith the awarding of any federal contract, the making of any federal grant, the making of any federal loan,Page 16 of 21
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the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, ormodification of any federal contract, grant, loan, or cooperative agreement.36.1.2.If any funds other than federal appropriated funds have been paid or will be paid to any person forinfluencing or attempting to influence an officer or employee of any agency, a Member of Congress, anofficer or employee of Congress, or an employee of a Member of Congress in connection with this federalcontract, grant, loan, or cooperative agreement, the undersigned shall complete and submit StandardForm-LLL, Disclosure Form to Report Lobbying, in accordance with its instructions.36.1.3.The undersigned shall require that the language of this certification be included in the awarddocuments for all sub- awards at all tiers (including sub-contracts, sub-grants, and contracts under grant,loans, and cooperative agreements), and that all sub- recipients shall certify and disclose accordingly.36.2.This certification is a material representation of fact upon which reliance was placed when thistransaction was made or entered into. Submission of this certification is a prerequisite for making orentering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to filethe required certification shall be subject to a civil penalty of not less than $10,000 and not more than$100,000 for each such failure.37.FEDERAL NONDISCRIMINATION (Title VI, 42 U.S.C. § 2000d et seq.)37.1.The State highway safety agency [and its SUB-RECIPIENTs] will comply with all Federal statutes andimplementing regulations relating to nondiscrimination (“Federal Nondiscrimination Authorities”). Theseinclude but are not limited to:37.1.1.Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibitsdiscrimination on the basis of race, color, national origin);37.1.2.49 CFR part 21 (entitled Non-discrimination in Federally-Assisted Programs of the Department ofTransportation—Effectuation of Title VI of the Civil Rights Act of 1964);37.1.3.28 CFR section 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the CivilRights Act of 1964);37.1.4.The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C.4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because ofFederal or Federal-aid programs and projects);37.1.5.Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), and Title IX of the EducationAmendments of 1972, as amended (20 U.S.C. 1681-1683 and 1685-1686) (prohibit discrimination on thebasis of sex);37.1.6.Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibitsdiscrimination on the basis of disability) and 49 CFR part 27;Page 17 of 21
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37.1.7.The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibitsdiscrimination on the basis of age);37.1.8.The Civil Rights Restoration Act of 1987, (Pub. L. 100-209), (broadens scope, coverage andapplicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or activities" toinclude all of the programs or activities of the Federal aid SUB-RECIPIENTs, subrecipients andcontractors, whether such programs or activities are Federally-funded or not);37.1.9.Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) (prohibitsdiscrimination on the basis of disability in the operation of public entities, public and privatetransportation systems, places of public accommodation, and certain testing) and 49 CFR parts 37 and38;During the performance of this contract/funding agreement, the SUB-RECIPIENT agrees:37.1.10.To comply with all Federal nondiscrimination laws and regulations, as may be amended fromtime to time;37.1.11.Not to participate directly or indirectly in the discrimination prohibited by any Federal non-discrimination law or regulation, as set forth in Appendix B of 49 CFR part 2l and herein;37.1.12.To permit access to its books, records, accounts, other sources of information, and its facilitiesas required by the State highway safety office, US DOT or NHTSA;37.1.13.That, in event a SUB-RECIPIENT fails to comply with any nondiscrimination provisions in thiscontract/funding agreement, the State highway safety agency will have the right to impose suchcontract/agreement sanctions as it or NHTSA determine are appropriate, including but not limited towithholding payments to the SUB-RECIPIENT/funding recipient under the contract/agreement until theSUB-RECIPIENT/funding recipient complies; and/or cancelling, terminating, or suspending a contract orfunding agreement, in whole or in part; and37.1.14.To insert this clause, including paragraphs a through e, in every subcontract and subagreementand in every solicitation for a subcontract or sub-agreement, that receives Federal funds under thisprogram.38.POLITICAL ACTIVITY (HATCH ACT)The SUB-RECIPIENT will comply with provisions of the Hatch Act (5 U.S.C. 1501-1508), which limit thepolitical activities of employees whose principal employment activities are funded in whole or in part withfederal funds.39.PROHIBITION ON USING GRANT FUNDS TO CHECK FOR HELMET USAGE
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The SUB-RECIPIENT will not use 23 U.S.C. Chapter 4 grant funds for programs to check helmet usage orto create checkpoints that specifically target motorcyclists. This Agreement does not include any aspectsor elements of helmet usage or checkpoints, and so fully complies with this requirement.40.STATE LOBBYINGNone of the funds under this Agreement will be used for any activity specifically designed to urge orinfluence a state or local legislator to favor or oppose the adoption of any specific legislative proposalpending before any state or local legislative body. Such activities include both direct and indirect (e.g.,“grassroots”) lobbying activities, with one exception. This does not preclude a state official whose salaryis supported with NHTSA funds from engaging in direct communications with state or local legislativeofficials, in accordance with customary state practice, even if such communications urge legislativeofficials to favor or oppose the adoption of a specific pending legislative proposal.41.CERTIFICATION ON CONFLICT OF INTERESTGENERAL REQUIREMENTS41.1.No employee, officer or agent of the SUB-RECIPIENT who is authorized in an official capacity tonegotiate, make, accept or approve, or to take part in negotiating, making, accepting or approving anysubaward, including contracts or subcontracts, in connection with this grant shall have, directly orindirectly, any financial or personal interest in any such subaward. Such a financial or personal interestwould arise when the employee, officer, or agent, any member of his or her immediate family, his or herpartner, or an organization which employs or is about to employ any of the parties indicated herein, has afinancial or personal interest in or a tangible personal benefit from an entity considered for a subaward.41.2.Based on this policy:41.2.1.The SUB-RECIPIENT shall maintain a written code or standards of conduct that provide fordisciplinary actions to be applied for violations of such standards by officers, employees, or agents. Thecode or standards shall provide that the SUB- RECIPIENT’s officers, employees, or agents may neithersolicit nor accept gratuities, favors, or anything of monetary value from present or potential sub-awardees, including contractors or parties to subcontracts and establish penalties, sanctions or otherdisciplinary actions for violations, as permitted by State or local law or regulation.41.2.2.The SUB-RECIPIENT shall maintain responsibility to enforce the requirements of the written codeor standards of conduct.DISCLOSURE REQUIREMENTS41.3.No SUB-RECIPIENT, including its officers, employees or agents, shall perform or continue toperform under a grant or cooperative agreement, whose objectivity may be impaired because of anyrelated past, present, or currently planned interest, financial or otherwise, in organizations regulated byNHTSA or in organizations whose interests may be substantially affected by NHTSA activities.41.3.1.The SUB-RECIPIENT shall disclose any conflict of interest identified as soon as reasonablypossible, making an immediate and full disclosure in writing to WTSC. The disclosure shall include aPage 19 of 21
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description of the action which the recipient has taken or proposes to take to avoid or mitigate suchconflict.41.3.2.NHTSA will review the disclosure and may require additional relevant information from therecipient. If a conflict of interest is found to exist, NHTSA may (a) terminate the award, or (b) determinethat it is otherwise in the best interest of NHTSA to continue the award and include appropriateprovisions to mitigate or avoid such conflict.41.3.3.Conflicts of interest that require disclosure include all past, present or currently plannedorganizational, financial, contractual or other interest(s) with an organization regulated by NHTSA or withan organization whose interests may be substantially affected by NHTSA activities, and which are relatedto this award. The interest(s) that require disclosure include those of any SUB-RECIPIENT, affiliate,proposed consultant, proposed subcontractor and key personnel of any of the above. Past interest shallbe limited to within one year of the date of award. Key personnel shall include any person owning morethan a 20 percent interest in a SUB-RECIPIENT, and the officers, employees or agents of a recipient whoare responsible for making a decision or taking an action under an award where the decision or actioncan have an economic or other impact on the interests of a regulated or affected organization.42.DESIGNATED CONTACTSThe following named individuals will serve as designated contacts for each of the parties for allcommunications, notices, and reimbursements regarding this Agreement:
The Contact for the SUB- RECIPIENT is:The Contact for WTSC is:Matthew DeckerLieutenantDeckerm@pasco-wa.gov509-727-8538 Mark MedalenWTSC Program Managermmedalen@wtsc.wa.gov360-725-9878
AUTHORITY TO SIGNThe undersigned acknowledge that they are authorized to execute this Agreement and bind theirrespective agencies or entities to the obligations set forth herein.IN WITNESS WHEREOF, the parties have executed this Agreement.SUB-RECIPIENT:
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______________________________Signature
______________________________Printed Name ______________________________Title ______________________________Date
WASHINGTON TRAFFIC SAFETY COMMISSIONName: Mark MedalenTitle: Program Manager
______________________________Date
Page 21 of 21
Page 31 of 114
AGENDA REPORT
FOR: City Council October 6, 2026
TO: Harold Stewart, City Manager City Council Workshop
Meeting: 10/13/26
FROM: Kevin Hebdon, Finance Director
Finance
SUBJECT: Presentation - 2027-2028 Budget
I. ATTACHMENT(S):
Budget Message
2027-2028 Budget Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
N/A
IV. HISTORY AND FACTS BRIEF:
The City is developing its 2027–2028 biennial budget amid a structural General
Fund ongoing than faster growing expenses ongoing with imbalance,
revenues. In recent years, reserves have been used to help maintain existing
services, but continued reliance on one-time funds is not sustainable.
Staff reviewed expenses, identified efficiencies and potential reductions, and
developed multiple scenarios using different levels of service reductions,
reserves and revenue. The proposed budget reflects that work and includes
significant impacts to staffing and City services.
V. DISCUSSION:
Page 32 of 114
Honorable Mayor and City Council, Pasco residents, business owners/operators, and interested parties:
I am pleased to present you the City of Pasco’s preliminary biennial budget for the years 2027 -2028. Staff
developed this budget in furtherance of the adopted City Council Goals , Citizen Satisfaction Survey, and
consideration for a sustainable financial future . If adopted, this budget would bring the General Fund close to
structural balance for the first time in several years, with no use of reserves in 2027 and $2.5 million in 2028. In
the last two biennium's, the City planned to use an average $6.5 million per year in reserves to balance the budget.
This proposal builds on hard choices the City Council has already made and adopting it will require more. This
message explains why the proposal is necessary, what it would do, and the decisions now before Council.
General Fund Budget at Glance
General Fund 2026 Projected* 2027 Proposed 2028 Proposed
Revenues $78.64M $79.97M $80.30M
Expenditures $85.77M $80.05M $82.07M
Planned use of reserves $7.13M $0.08M $1.77M
How We Got Here
Pasco is one of the fastest-growing cities in Washington. With about 82,900 residents, we are now nearly the
size of Kennewick and larger than Richland. Growth brings opportunity, but it also brings more calls for service,
more streets and parks to maintain, and more demand for every City department.
In the 2023–2024 budget, the City added 52.4 General Fund positions. Those additions were based on strong
projections for retail growth, anchored by major commercial development and the businesses it was expected
to attract. High interest rates, inflation, loss of a major prospective retailer, and a cooling economy slowed that
growth. Sales tax, our largest General Fund revenue, leveled off to $20.1 million in 2022. Spending, meanwhile,
continued to rise. The gap was filled with reserves since 2023; that path is not sustainable.
General Fund Reserves
The graph below shows the reserve growth and usage in the last seven years and anticipated balance at the end of
this biennium. Government Finance Officers Association (GFOA) recommends a minimum of two months
operating expenses ($13.4 million) and best practice of 3-6 months of operating expenses ($20 -40M) for all local
governments. It is also important to note that by end of this biennium the reserves will be at the minimum
recommended reserves. A $12 million transfer was made from General Fund to Economic Development Fund in
2021 for a land purchase to accommodate needed land capacity for the Process Water Reuse Facility being
constructed. The purchase fell through last minute and the funds have been kept in the Economic Development
Fund with a plan to purchase land. With a new revenue source available to purchase such land, the $12 million
could be used for other purposes with Council action. However, with the discussions around a potential Softball
field purchase, staff will be asking for more clarity and direction on this topic in coming months.
Even with the significant cuts proposed in this recommended budget, the City would still be looking to use
reserves in 2028; a fact highlighting the systemic revenue challenge for cities in Washington State where property
taxes revenues are restricted to an increase of 1%, but expenses increase more rapidly.
Page 33 of 114
The Big Picture: Ongoing Revenue vs. Ongoing Costs
The clearest way to see the problem is to separate ongoing activity from one -time capital and bond activity.
$ in
Millions
‘15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 ‘26 Bud ‘27
Prop
‘28 Prop
Operating
revenue
41.3 43.0 46.0 49.4 55.7 58.4 68.1 70.7 72.0 79.5 78.8 78.5 79.7 80.1
Operating
expense
37.2 38.5 44.0 45.5 46.2 47.7 53.8 58.1 70.9 75.9 72.7 75.4 69.1 71.1
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
2019 2020 2021 2022 2023 2024 2025 2026 Proj 2027 Prop 2028 Prop
Uncommitted Fund Balance
Economic Development Fund Balance General Fund Unrestricted
30
40
50
60
70
80
90
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Bud
2027 P 2028 P
Ongoing revenue vs. ongoing costs ($ millions
Operating revenue (#31–#36)Operating costs + debt service + recurring transfers
Page 34 of 114
$ in
Millions
‘15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 ‘26 Bud ‘27
Prop
‘28 Prop
Debt
service
0.8 1.2 1.2 1.2 1.3 2.4 1.9 2.6 3.8 5.5 5.5 5.1 5.6 5.6
Recurring
transfers
1.2 1.1 1.4 0.7 2.7 2.4 2.7 1.8 2.8 3.2 4.7 4.8 5.4 5.4
Structural
result
2.0 2.2 (0.5) 2.0 5.5 5.9 9.6 8.1 (5.6) (5.2) (4.0) (6.8) (0.3) (2.0)
Capital &
land
transfers
3.4 6.0 1.0 0.2 1.5 8.9 19.1 2.0 9.2 12.1 14.1 0.4 — —
GO bond
proceeds
9.1 — — — 20.2 — — — 12.3 39.3 — — — —
In 2018, City swept its banked property tax capacity of $1.8M to build three new fire stations. During 2019-2024,
there were significant construction projects like Amazon, Darigold, schools, that brought one time Construction
Sales Tax revenue to the City. Until 2023, the General Fund generated ongoing surpluses. Those surpluses, and
the reserve they built, were used to pay for fire stations, the $12M Council-approved land purchase transfer to
the Economic Development fund mentioned previously, and other capital projects.
In 2023, the City added 53.4 General Fund positions increasing costs $12.8M in a single year. In the same
period, all agencies began experiencing higher inflation caused by the pandemic, resulting in significant labor,
supplies, services, and capital cost increases; in many cases inflation was much higher than the general
inflation. Revenue grew only $1.3M during this same period. The General Fund has run an ongoing deficit every
year since.
+2.1 +2.2
(0.5)
+2.0
+5.5 +5.9
+9.6
+8.1
(5.6)(5.2)
(4.0)
(8.0)
(0.3)
(2.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Bud
2027 P 2028 P
Structural surplus / (deficit) before capital ($ millions)
Page 35 of 114
The Big Picture: Operating Revenues
$ millions '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 ‘26
Proj
‘27
Prop
‘28
Prop
Taxes 30.2 31.0 33.3 34.5 41.0 41.0 47.4 51.8 52.0 56.2 58.2 59.2 60.2 60.3
Permits &
licenses
1.7 2.0 2.2 2.6 2.8 2.6 3.6 2.9 3.2 3.3 2.5 3.0 3.9 3.6
Intergovernmental 2.1 2.1 2.1 2.4 2.6 5.4 6.2 3.1 3.7 5.0 4.3 2.9 2.6 2.6
Charges & fees 6.0 6.3 6.9 7.3 7.4 7.3 8.8 10.6 10.0 10.0 9.3 9.9 9.0 9.3
Fines & penalties 0.8 0.7 0.8 0.9 1.0 1.0 1.1 1.0 0.9 1.4 1.3 1.1 1.2 1.2
Miscellaneous 0.5 0.8 0.7 1.6 1.0 1.2 1.0 1.3 2.3 3.4 3.2 2.4 2.9 3.1
Operating
revenue
41.3 43.0 46.0 49.4 55.7 58.4 68.1 70.7 72.0 79.5 78.8 78.5 79.7 80.1
Loan Proceeds 0.2 — (0.2) — 2.0 1.7 0.8 3.4 0.3 (0.5) (2.7) — — —
#39 Bonds &
other
9.2 1.1 0.6 0.4 21.5 0.2 0.8 2.6 15.2 43.1 1.6 0.1 0.2 0.2
0
10
20
30
40
50
60
70
80
90
100
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Bud
2027 P 2028 P
Operating revenue by roll-up, excluding bonds and loans ($ millions)
Taxes (#31)Charges & admin fees (#34)Intergovernmental (#33)
Permits & licenses (#32)Miscellaneous (#36)Fines (#35)
Page 36 of 114
Taxes
• Sales tax grew steadily from $10.3M (2015) to $13.9M (2019), then surged to $21.5M by 2022. It peaked at
$23.1M in 2024 and fell to $22.0M in 2025. Staff projects revenues to be $20.7M in 2027 and $20.1M in
2028.
Sales tax is the General Fund’s largest revenue stream and includes regular Retail Sales Tax, as well as
Criminal Justice and Public Safety Sales Tax. The latter two taxes are mandated to provide public safety
services to the residents of Pasco, while the regular retail tax funds all general services. Since 2014, sales
tax revenues have trended upward, averaging more than 5% growth annually. This growth has been fueled
by new construction and supported by a expanding commercial inventory, auto, and large eq uipment sales.
Even during the COVID pandemic, the City received strong sales revenue due to increased activity in
construction and vehicles sales. It should be noted City has high exposure to industries like vehicle sales
that are sensitive to national economic trends like recession and interest rates. City needs to ensure that it
is properly mitigating for the negative trends in future by maintaining healthy reserves.
• Property tax grew from $7.1M (2015) to $14.0M (2025). The largest step was 2019 (+$2.3M). when the
property tax increases that were deferred/banked for nearly two decades were implemented, increasing
the annual property tax allocation by nearly $1.8M. State law limits property tax revenue to 1% a year plus
new construction.
A major challenge faced by the City is to manage the real world increases in the costs of providing essential
services and increasing demands with the limitations of Initiative 747 (I -747). I-747 limits yearly property
tax increases to the lessor of 1% (excluding new construction) or the Implicit Price Deflator (IPD). This
means that even though the City’s assessed valuation has been increasing significantly, the increase in
property tax revenue across the City cannot follow the same trajectory. Property ta x revenue for the City
has been increasing higher than 1% due to new construction; however, a recession c ould significantly
affect future revenues.
• Utility (B&O) taxes grew from about $9.1M (2015) to $15.5M (2025). Council also increased the utility tax
rate from 8.5% to 10% for City owned utilities in 2026. Cable and telephone taxes continue to decline.
An 8.5% tax on gross revenues of all public utilities is paid to the City on a monthly basis by system users.
The City’s Water, Sewer, Irrigation, Stormwater, and Reuse utilities are subject to utility tax at 10% rate.
0
5
10
15
20
25
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Major Taxes ($ millions)
Local sales tax Property tax Utility (B&O) taxes
Page 37 of 114
Companies who provide natural gas, electricity, phone, cable, and garbage services in the City limits pay
8.5%. The General Fund receives 88.23% of utility tax revenue s collected, the Street Fund receives 2.35%,
and the Overlay Fund receives 9.42%.
Permits and Licenses
Permits and licenses grew from $1.7M (2015) to a peak of $3.7M in 2021, then fell to $2.5M in 2025 as
development slowed. Plan check fees followed the same pattern, peaking at $1.5M in 2021 and falling to $0.6M.
Staff are currently conducting a comprehensive development fees study. The study’s initial results indicate the
City is subsidizing 50% of development fees it could charge to developers. This recommended budget includes
raising permit fees to reduce the 50% subsidization to 20%, resulting in approximately an additional $1.3 million
in general fund revenue.
Grants and Intergovernmental
This roll-up held at about $2.1–2.6M from 2015 to 2019. It more than doubled in 2020–2021 with one-time
federal pandemic aid ($2.8M and $2.6M), then fell back. It is budgeted at $2.6M in 2027 –2028, about where it
was a decade ago.
Charges and Admin Fees
Charges grew from $6.0M (2015) to a peak of $10.6M (2022). The largest item is interfund administrative
charges to other funds, which grew from $2.2M to about $3.2M. Engineering CIP chargebacks peaked at $2.9M
in 2024, and police service reimbursements gre w to $1.3M in 2025. The drop in 2027 reflects Public Works
Engineering charges moving out of the General Fund ; the cost for Engineering team is also removed from the
General fund.
Fines and Miscellaneous
Fines are stable at about $0.8-1.4M. Miscellaneous revenue grew mainly from investment interest, which rose
from about $0.1M a year prior to 2022 to $1.4M in 2025. That interest is earned on reserves and bond proceeds,
so it will fall as those balances are spent.
Loans and Bond Receipts
These are one-time financing sources, not ongoing revenue. They include GO bond proceeds (2015, 2019, 2023
and 2024), interfund loan repayments (mostly 2019–2022), and asset sales. They inflate total revenue in the
years received and should not be used to judge whether the budget is balanced.
Page 38 of 114
The Big Picture: Operating Expenses
$
millions
‘15 ‘16 ‘17 '18 '19 '20 '21 '22 '23 '24 '25 26 proj ‘27
Prop
‘28
Prop
#51
Wages
18.2 18.0 20.2 21.3 22.1 22.7 24.3 26.9 31.8 35.0 34.1 33.3 29.6 30.7
#52
Benefits
6.9 6.9 7.4 7.5 7.9 7.8 8.3 8.9 10.5 11.7 11.4 13.3 11.6 12.3
#53
Supplies
1.3 1.3 1.3 1.4 1.2 1.4 1.9 2.0 2.8 2.3 1.3 1.3 4.2 3.9
#54
Services
10.8 12.1 14.8 15.1 15.0 15.5 19.0 19.8 24.4 25.9 25.2 27.5 23.5 24.1
#56
Capital
outlay
0.1 0.3 0.2 0.2 0.2 0.3 0.2 0.6 1.4 1.0 0.7 0.4 0.1 0.0
#57
Principal
0.5 0.8 0.8 0.8 0.8 1.3 0.8 1.3 2.4 3.3 1.6 1.8 2.4 2.5
#58
Interest
0.3 0.4 0.4 0.4 0.5 1.1 1.1 1.4 1.4 2.2 3.8 3.3 3.2 3.1
Total 38.1 39.7 45.2 46.6 47.5 50.1 55.7 60.8 74.7 81.4 78.2 80.9 74.7 76.7
Wages
Wages rose from $18.2M in 2015 to $35.0M in 2024, up 92%. Growth averaged 4.9% a year from 2015 to 2019
but accelerated to 8.2% a year from 2022 to 2025. The largest growth was in 2023 (+$4.9M), when 53.4 General
Fund positions were added. Overtime peaked at $2.4M in 2023-2024 and has since fallen to $1.9M. The
proposal reduces wages to $29.6M in 2027, $4.5M below 2025 actual and $7.1M below the 2026 budget.
Benefits
Benefits grew only 3-4% a year through 2022, then 8.8% a year from 2022 to 2025. Key drivers:
• Employer medical premiums rose from $3.5M (2022) to $4.0M (2025). Through September 2026, they are
already $4.5M, signaling a sharp 2026 increase.
• Employer medical premiums rose from $3.9M (2023) to $6.0M (2026 Forecasted)
• Workers' compensation rose from $0.5M to $1.4M (+162%).
• Deferred compensation contributions doubled, from $0.7M to $1.4M.
Page 39 of 114
Supplies
Supplies were steady at about $1.3–1.4M from 2015 to 2020, peaked at $2.8M in 2023, and fell back to $1.3M in
2025. This category has already been reduced and is too small to close the gap.
Services
Services more than doubled, from $10.8M (2015) to $25.9M (2024). Drivers include organizational services
($2.7M to $3.8M since 2022), legal services ($1.0M to $1.8M), insurance premiums ($0.9M to $2.0M, and $2.3M
through September 2026), and new long-term lease costs for police and fire vehicles and equipment ($1.7M in
2025). At times, the cost outpaces general inflation significantly. For example, cost for voter registration and file
maintenance cost increased by 300%, increasing from $94K to $312K.
Capital outlay
Equipment, servers and other capital outlay are small and one -time, generally $0.1-0.3M a year, with a peak of
about $1.4M in 2023. They are budgeted at only $0.1M in 2027.
Debt service
Each bond issue has added a new layer of annual debt service: about $0.8M in 2015, $2.4M after the 2019
bonds, and $5.5M after the 2023 and 2024 bonds. Bond interest alone rose from $0.2M (2015) to $3.8M (2025).
Debt service is budgeted at $5.6M a year in 2027 and 2028 and must be paid before any service.
A Revenue Structure That Lags Our Neighbors
Pasco's revenue challenge is structural. Our property tax rate is the lowest of the three Tri -Cities, even though
our assessed valuation is highest. While the City’s portion of the property tax collection remains one of the
lowest to comparable cities, the graph below gives a complete picture of the property taxes that property
owners pay in City of Pasco. It illustrates as why Pasco property owners feel they are taxed proportionally to
other cities and expect similar level of services; however, the portion of property tax coming to the City is lower
than the other cities, impacting our ability to provide same level of service.
Page 40 of 114
Our sales tax base is smaller than Kennewick's, partly because more of our economy is agricultural and
industrial rather than retail. However, important to remember that our sales tax has nearly doubled in the last
decade and Pasco has ability to grow similarly in the next decade with prudent governance.
City (Data
from 2024)
Population Assessed
Valuation
Levy
Rate
Property
Tax
Sales Tax Combined
Pasco 82,500 12,331,147,293 $1.08 $13.3M $20.5M $33.8M
Kennewick 84,750 11,625,611,226 $1.33 $15.4M $28.0M $43.4M
Richland 63,320 11,675,343,501 $1.78 $20.8M $17.0M $37.8M
Together, property and sales tax bring Pasco about $410 per resident. Kennewick collects about $512 per
resident and Richland about $597. If Pasco's revenue matched Kennewick's, the City would have roughly $9.6
million more each year to serve residents.
Pasco has experienced rapid growth over a prolonged period that has transformed the City into a dynamic and
vibrant community of over 82,000 people. Today Pasco is a regional hub of commerce with a diverse population,
quickly rising education levels and household incomes. As part of this transformation, Pasco has experienced
changing demographics, infrastructure challenges, increased demands for services in all sectors: social,
education, emergency response, utilities, transportation, etc. Limited growth in revenue and increasing demand
in services has strained the City’s finances, but the community is still expected to grow and the City government
is regulatorily required to plan for this growth.
The Big Picture: Recommended Solution to the Structural Deficit
City of Pasco is providing services that it can no longer afford to provide. This recommended budget implements
difficult decisions to cut many services in public safety, parks, recreation, streets, permitting and planning are now
necessary to rebalance the General Fund to projected revenues, without further depleting reserves or increasing
taxes on citizens. While activity in Broadmoor area will help, even when fully built, it will not generate enough new
revenue to mitigate the current deficit levels. Further increases in interest rates and inflation could slow down
housing and other economic activities. Additionally, the City has drawn down on its reserve fund balance for the
past four consecutive years. Council has directed me to balance the budget to ensure City’s financial
sustainability. I directed staff to bring back recommendations that cut 20% of their respective General Fund
department budget, amounting to nearly $14.6M. Each department head met that directive . A difficult
prioritization effort followed, but unfortunately, almost all cuts had to be accepted to bring forth a balanced
budget. Some areas like Municipal Court, Human Resources and Safety were not reduced significantly because
their size and regulatory requirements which cannot be met if staffing and resources are reduced further, or there
are significant operational impacts if the programs were reduced.
The proposed budget includes significant cuts to positions
• 41 FTE reduction Citywide under the no-reserves scenario, even after accounting for 8 required Sewer
Utility positions
• Police: 22 FTE reductions — 18 commissioned, 2 non-commissioned and 2 management positions
• Fire: 15 FTE reductions — 14 staff and 1 management position
Page 41 of 114
• Additional position reductions in Community & Economic Development, City Manager’s Office,
Finance, Parks & Recreation and Information Technology
Reduction of services
• Public Safety: Close one fire station and remove an engine and medic unit; reduce Police support
operations and lobby hours; close the Lewis Street and Alderwood police stations; and reduce community
engagement and other programs
• Parks & Recreation: Close Memorial Aquatic Park year-round; discontinue the Senior Center and after-
school programs; remove portable restrooms from parks and recreation facilities; and reduce parks and
open-space maintenance
• Community Events: Discontinue City-supported events including Fiery Foods Festival, Grand Old 4th
Parade and Fireworks, Cinco de Mayo, Winterfest, Music & Movies, Memorial Day, Veterans Day and
Spooky Hall
• Development & Code Enforcement: Longer permit wait times and reduced Code Enforcement
responsiveness
Staffing
The table below shows the City of Pasco's historical full-time equivalent (FTE) allocations. For 2025 –2026 and
2027–2028, it separates authorized FTEs from budgeted FTEs to identify positions that have been, or are proposed
to be, frozen.
This proposed budget reduces nearly 49 FTEs across all funds and adds 8 FTEs to the Sewer Utility to meet
Department of Ecology minimum staffing requirements, for a net reduction of nearly 41 FTEs. Fire Department
reductions appear in two funds, the General Fund and the Ambulance Fund. Human Resources, Parks and
Recreation, and Public Works are also split across multiple funds. The table excludes positions reimbursed
through the Pasco Public Facilities District; additional work is needed to properly reflect the position allocation for
PPFD activities.
FTE Allocation
General Fund-Departments 2021 2022 2023 2024 2025-2026 2027-2028
Auth Budget Auth Budget
City Council 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Municipal Court 15.85 15.85 17.85 17.85 17.85 15.85 18.00 15.85
City Manager 5.00 5.00 9.00 9.00 9.50 8.50 9.50 6.50
Human Resources 5.50 6.50 7.00 7.00 7.00 6.00 7.00 6.00
Police 92.00 96.00 110.00 110.00 114.00 108.00 114.00 86.00
Fire 38.00 38.50 47.50 47.50 47.00 44.50 47.00 38.20
Parks & Recreation 23.55 24.55 30.55 30.55 30.55 27.55 30.55 27.00
Information Technology 11.00 11.00 14.40 14.40 14.40 13.40 14.40 10.40
Facilities 5.00 5.00 9.00 9.00 9.00 7.00 9.00 7.00
City Clerk 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Finance 17.05 19.05 21.55 21.55 21.55 18.55 22.30 17.30
Community & Economic Development 25.00 28.00 32.00 32.00 32.00 29.00 32.00 26.00
Engineering & PW Admin 10.65 13.65 16.65 16.65 15.80 15.80 0.25 0.25
Sub-Total General Fund 257.60 272.10 324.50 324.50 327.65 303.15 313.00 249.50
Other Funds
Streets 7.50 7.50 7.50 7.50 7.67 7.67 16.64 15.64
CDBG 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Page 42 of 114
Martin Luther King Center 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.00
Ambulance 43.75 44.25 56.85 56.85 57.35 56.85 56.60 47.40
ARPA 0.00 1.00 0.50 0.50 0.50 0.50 0.50 0.50
Animal Shelter Operations 0.00 0.00 20.00 20.00 22.00 22.00 22.00 21.50
Cemetery 1.50 1.50 1.50 1.50 2.00 2.00 2.00 2.00
Senior Center 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.00
Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Water/Sewer Utility 63.36 65.36 78.86 79.86 78.93 77.99 95.16 95.16
Equipment RR 6.69 6.69 10.19 10.19 9.30 8.30 9.30 6.95
Internal Medical Insurance 0.50 0.50 1.00 1.00 1.00 1.00 1.00 1.00
Sub-Total Other Funds 127.25 130.75 180.35 181.35 182.70 180.26 207.15 193.15
Total, City-wide 384.85 402.85 504.85 505.85 510.35 483.41 520.15 442.65
*Staff is conducting a full audit of temporary, seasonal, and part-time employees for compliance with state and federal laws.
Staff will present a revised headcount once the audit is completed, including the headcount approved for PFD later if needed.
Summary for General Fund
For most of the past decade, the City's General Fund lived within its means. From 2015 to 2022, ongoing
revenue exceeded ongoing costs by a combined $35 million, and that strength helped Pasco build new police
and fire stations and invest in strategic land . Since 2022, that picture has changed. Revenue growth slowed from
about 8% a year to under 4%, as sales tax leveled off and federal pandemic aid ended. Costs continued to grow
at nearly 8% a year, driven by staffing added in 2023, rising benefit costs, an d debt payments that are now nearly
seven times what they were in 2015. Since 2023, the City has drawn on reserves every year to cover the gap.
That cannot continue. Because wages and benefits make up nearly two -thirds of General Fund operating costs,
and debt payments are fixed, closing a gap of this size requires reducing positions and services.
Ambulance Services
Access to sustainable, reliable, and efficient ambulance service for its residents, businesses and visitors has been
a top priority for the Council and the community. The needs and structure of this fund are unique; as in, this is a
highly regulated area with high equipment standards, constantly increasing and sometimes widely fluctuating
costs for medical supplies, and a specialized workforce requiring significant ongoing training and advance d
certifications. Furthermore, the fund shares much of its resources with Fire services which is funded out of
General Fund.
The Ambulance Fund pays for the City's emergency medical services and ambulance transport. It is funded mainly
by the monthly ambulance utility fee, transport fees, and the federal Ground Emergency Medical Transportation
(GEMT) program. The General Fund also provides a $420,000 annual subsidy.
It is important to note that the fund experiences a high population of Medicare, Medicaid and uninsured patients.
In the case of Medicare and particularly Medicaid, this demographic composition results in lower reimbursement
revenue reimbursement. insurance private to compared the government federal These from as lower
reimbursements, coupled with the high number of uninsured patients, have an adverse impact on revenues to the
fund, which in turn has necessitated increases in monthly rates. During the 2019 -2020 biennium, Washington
State and ambulance service providers have made considerable progress in implementing the Ground Emergency
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Medical Transport (GEMT) program, which in part provides reimbursement to local ambulance providers for
service to Medicaid patients, including transport. 70% of the calls for services received by City’s Fire/Ambulance
department are ambulance related. Historically, City has subsidized the fund directly and indirectly. Directly, in
form of a $420,000 annual subsidy that gets transferred from General to Ambulance Fund; this is a regulatory
requirement. Indirectly; by funding much of the personnel and infrastructure needed to sustain the Ambulance
fund. In the past decade, City has actively implemented measures like evaluating ambulance utility fee on a regular
basis, proportionately charging high demand users, offsetting expenses with grant programs like GEMT etc. to
increase the financial independence and sustainability of this fund.
During its most recent rate study, Council guided staff to implement the policy of the fund sustaining itself up to
80% of it costs; allowing for a 20% subsidy from General Fund. This allowed staff to move personnel, supplies
and services costs from General Fund to Ambulance Fund in this biennium. As a conservative measure,
Firefighters and Paramedic positions are budgeted with a 60/40 split between Ambulance and General Fund;
getting close to the policy goal of 80%.
$ Millions 2022 2023 2024 2025 2026 Proj. 2027
Prop.
2028 Prop.
Ambulance utility
fee
5.58 5.84 6.27 6.90 10.27 10.00 10.30
Transport fees, net
of Medicare
discounts
1.51 2.25 2.61 2.25 2.58 2.50 2.70
GEMT, net of
discounts
3.66 2.14 2.90 3.26 2.4 3.80 3.80
Federal grants
(DHS)
0.01 0.92 1.09 1.12 0.00 0.00 0.00
General Fund
subsidy & other
transfers
0.43 0.57 0.56 0.94 0.45 0.42 0.42
Total revenue 11.33 11.81 13.61 14.57 15.70 16.76 17.26
Total expense 10.40 12.45 13.78 14.45 13.65 15.59 16.24
Net result 0.92 (0.64) (0.18) 0.13 2.05 1.18 1.02
The Big Picture: Operating Revenues
Ambulance Utility Fee: The fund has stabilized after two years in the deficit. It ran deficits of $0.64M in 2023 and
$0.18M in 2024. It is projected to end 2026 with a $1.1M surplus, and surpluses of $1.2M in 2027 and $1.0M in
2028. The turnaround is driven by Council's recent rate increase. Council raised the ambulance utility fee to
account for inflation, the added cost of operating more fire stations, and the fund's reliance on the federal GEMT
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program. Utility fee revenue rose from $6.9M in 2025 to $10.0M in 2027, and it is the fund's largest and most stable
revenue source.
GEMT: GEMT is a significant source of revenue but an uncertain one. Net GEMT revenue has ranged from $2.1M
to $3.7M a year and is budgeted at $3.8M, about 23% of fund revenue. Because it depends on federal Medicaid
rules and annual reconciliations, it can change with little notice. The rate increase was designed in part to reduce
this risk. GEMT helps us mitigation the transport revenue is eroded by Medicare discounts. Gross transport fees
grew from $2.5M to $5.8M (2022–2025), but Medicare discounts grew faster, from $1.0M to $3.6M. Bad debt
adds $0.2–0.7M a year.
Federal Grant: SAFR grant to fund Station 85 has ended.
The Big Picture: Operating Expenses
Personnel costs make up for more than 75% of the funds expenses, and this cost continues to climb. Wages
and overtime grew from $5.4M (2022) to $10.7 (2025); with overtime expenses averaging nearly $700K in the
last five years. Workers' compensation rose from $160k to $700k and employer medical premiums from $0.65M
to $1.53M. The 2027-2028 budget includes a distinct reduction of $1.8-1.9M a year in negative budget
adjustments to wages and benefits.
The Big Picture: Policy and Its Impact
The reduction in personnel costs in ambulance fund is related to our proposal to reduce the number of fire-
station. This option is separate and distinct from the policy decision to move the Ambulance fund to be more
self-reliant. While this is not the desired option, staff have evaluated the call volumes and response times and
believe that we can still serve the community at NFPA standards. However, there will be impact to such action
in the response to overlapping calls, response times, overtime cost, and increased reliance on mutual aid for
significant events. It is rare for a community to close a fire station; most cities relocate a fire station as
development patterns and population distribution changes. City could, at a later time, open this Fire Station at a
different location when the funding situation is improved. Closing of a Fire Station reduces 12 FTEs, equipment
costs like fire trucks and ambulances, utilities, supplies etc. The impact on the community and our staff is
significant, including the timeline to open a new Station and train and recruit new Firefighters. However, the
financial challenge of the City makes this difficult option an important one to consider.
Street Fund
Pasco's streets are among the most visible services the City provides. Every resident, business and visitor
depends on them. This section of the 2027–2028 Proposed Budget describes the condition of the Street Fund, the
changes proposed for the coming biennium, and the challenges that remain.
The Big Picture: Operating Revenues
The Street Fund pays for day-to-day street maintenance, including pavement repair, striping, signs, traffic signals
and street lighting. For years, it has relied on revenue sources that do not grow with the City:
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• Motor vehicle fuel tax, the fund's largest dedicated revenue, has been flat at about $1.0 million a year since
2022. The state distributes it on a per-gallon basis, so it does not rise with inflation and falls as vehicles
become more fuel-efficient.
• Franchise fees have declined by more than half, from $355,000 in 2022 to $170,000 in 2025.
• Utility tax transfers from the General Fund have grown modestly, from $220,000 to about $360,000.
Meanwhile, Pasco has kept growing, adding new streets, signals and streetlights that must be maintained. The
fund ran deficits of $58,000 in 2023 and $487,000 in 2024, and is projected to end 2026 about $350,000 short.
General Fund has provided subsidy to this fund over the years, including a $1.0 million subsidy in 2025.
$ Millions 2022 2023 2024 2025 2026 Proj. 2027
Prop.
2028
Prop.
Motor vehicle fuel tax 0.97 0.99 0.96 0.96 0.96 1.10 1.10
Franchise fees & permits 0.38 0.33 0.31 0.19 0.19 0.26 0.26
Interfund maintenance charges 0.62 0.63 0.62 0.68 0.75 1.25 1.27
General Fund subsidy — — — 1.00 — 1.00 1.00
Utility tax & other transfers 0.53 0.28 0.31 0.36 0.36 0.36 0.36
Total revenue 2.51 2.29 2.24 3.41 2.30 4.01 4.02
Total expense 2.47 2.35 2.72 3.13 2.65 4.00 3.99
Net result 0.04 (0.06) (0.49) 0.28 (0.35) 0.01 0.03
The Big Picture: Operating Expenses
The proposed budget balances the Street Fund in both years, with total revenue and expense of about $4.0 million
a year. Key changes include:
• Engineers move to the funds they serve. As part of a citywide change, all engineers are moving out of the
General Fund and into the funds whose work they support. The Street Fund will host the engineers who
have historically worked on transportation infrastructure. As a result, personnel costs in the Street Fund
rose from about $0.9 million in 2025 to about $1.8 million in 2027, net of budget adjustments.
• Reimbursement for capital work. When these engineers work on capital projects, the projects and other
funds will reimburse the Street Fund for their time. The proposed budget includes about $500,000 a year in
reimbursements from capital projects, in addition to existing interfund mainte nance charges.
• Clearer cost of operations. Placing staff in the funds they serve makes the true cost of each program
visible. Council and the community will be able to see what it costs to operate and engineer the street
system, separate from General Fund services.
• A continued General Fund subsidy of $1.0 million a year. Street fund has proposed reduction of some staff
that will have limited impact to crew work.
• From Council direction on October 5 th Council Meeting, some but not significant, cost from this fund will be
bore by Transportation Benefit District fund.
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The Big Picture: Policy and Its Impact
There is no margin for error. The fund is balanced by only $6,000 in 2027 and $33,000 in 2028. A cold winter, a
signal failure or higher electricity costs could push it into deficit . The $1.0 million annual subsidy competes directly
with police, fire, parks and other General Fund services. The budget assumes engineers will charge their capital
project time to the projects they support. If capital work slows or is delayed, the Street Fund will absorb more of
their cost. Streetlight electricity is budgeted at $393,000 in 2027, up from $268,000 in 2022. Employer medical
premiums and insurance continue to climb. With new funding structure that provides for transparency in service
cost, staff recommends the budget as is prepared with continued monitoring and discussion on how this fund can
be stabilized for future. Important to note that much of Street services are in similar positions and are heavily
subsidized by General Fund.
Conclusion
The 2027–2028 preliminary budget reflects a difficult but necessary step toward a more sustainable financial
future for the City of Pasco. For several years, the City has used reserves to maintain services as ongoing costs
grew faster than ongoing revenues. That approach provided time and helped limit immediate impacts to the
community, but it cannot be sustained indefinitely. The proposed budget substantially reduces that reliance on
reserves and moves the General Fund closer to structural balance.
Getting there requires difficult choices. The City has reviewed expenses from the ground up, evaluated staffing,
contracts, vehicles and other major costs, and considered where efficiencies could be achieved. However, a
financial gap of this size cannot be addressed through efficiencies alone. Because personnel represents a
significant share of General Fund operating costs and many other expenses are fixed or necessary to maintain
services, the preliminary budget includes reductions that would affect positions, programs and service levels.
These are not reductions we take lightly, nor should their inclusion in the preliminary budget diminish the value of
the employees or services affected. Our employees have helped Pasco serve a rapidly growing community
through a period of significant change, and the services they provide matter. At the same time, we have a
responsibility to present a budget that recognizes the resources available to the City and what it will take to
provide those services sustainably over the long term.
There is no scenario that resolves this challenge without tradeoffs. Greater reductions would have greater
impacts on employees and services. Greater use of reserves could reduce those impacts in the near term but
would leave fewer resources available for future needs. Additional ongoing revenue could preserve services but
would carry its own impacts for residents and businesses. Those are policy choices that must ultimately be
considered by the City Council on behalf of the community.
The preliminary budget is therefore not the end of the conversation. It provides Council and the community with
a clear picture of the City's financial position, the choices available, and the consequences associated with
those choices. As Council reviews the proposal, staff will continue to provide the information and analysis
necessary to support informed decisions and will communicate openly with employees and the community as
that process moves forward.
Pasco remains a growing and resilient community with significant opportunities ahead. The decisions made
through this budget process will help determine how we continue providing essential services, investing in our
community and positioning the City for t he future. Our responsibility is not simply to balance the next budget, but
to put Pasco on a financial path that can be sustained for the years ahead.
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Page 48 of 114
Budget
Presentation
October 13th, 2026
Pasco City Council
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The Budget Story
Municipal Budgeting Overview
Council Priorities
Budget Pressures
Revenues & Expenses Projections
Scenario #1
Additional Scenarios & Options
Other Funds
Council Direction & Path Forward
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Municipal Budgeting 101
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•Five Major Funds
•Each Fund Has Its Own Revenue Sources
•Each Fund Has Spending Rules
•Funds are Not Interchangeable
•All Funds Support City Services
By keeping funds separate and
using them as intended, the City
maintains financial transparency,
meets legal requirements and
ensures long-term stability for
essential services.
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Municipal Budgeting 101
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General Fund
•Funded by: Primarily property taxes, sales
taxes, utility taxes, permits, fees and other
general revenues.
•Spent on: Core City services, including
Police, Fire, Parks & Recreation,
Community Development,Municipal Court
and general City administration.
Special Revenue Funds
•Funded by: Revenues that are designated
for a specific purpose, including taxes,
grants, fees and other restricted revenue
sources.
•Spent on: The specific service or purpose
for which the revenue was collected, such
as streets, ambulance services, animal
services, park development and other
programs.
Enterprise Fund (Utilities)
•Funded by: Primarily rates and charges
paid by utility customers.
•Spent on: Operating, maintaining and
improving Water, Irrigation, Sewer,
Stormwater and Process Water Reuse
services and infrastructure.
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Municipal Budgeting 101
6
Internal Service Funds
•Funded by: Charges paid by City
departments for services provided
internally.
•Spent on: Shared internal services such as
vehicle maintenance, equipment
replacement and employee medical/dental
insurance.
Other Funds
•Funded by: Dedicated revenues, transfers,
investment earnings or other sources
depending on the fund.
•Spent on: Specific purposes such as capital
projects, debt obligations, old fire
pension/OPEB obligations and long-term
cemetery care.
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Current Sales Tax Breakdown
7
Where Does Pasco's Sales Tax Go?
Of the 8.9¢ collected in sales tax on every $1 taxable purchase:
Total — 8.9¢ = 100% of the sales tax collected
Transportation Benefit District - 1/10 of a percent coming in 2027
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Current Property Tax Breakdown
8
Where does Pasco's Property Tax Go?
For every $1 of property tax, the approximate breakdown is:
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Community Funding Costs
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Frequency Entity Description Amount Funding Source Total
Annual TRIDEC Hanford Community Fund Assessment $22,000.00 Econ. Deve.$22,000.00
Annual BFCOG Local Match Annual Assessment & Operational
Base Annual Assessment $57,084.00 Econ. Deve.$57,084.00
Annual BFCOG Tri-City Regional Public Facilities District $2,200.00 Econ. Deve.$2,200.00
Annual First Night Tri-Cities Annual Event Sponsorship $3,700.00 Econ. Deve.$3,700.00
Annual TC Regional Chamber of
Commerce Annual Leader Level Investment $6,000.00 Econ. Deve.$6,000.00
Annual AWC Annual Membership $67,048.00 Econ. Deve.$67,048.00
Monthly TRIDEC Shoreline Reconveyance 1/6th Agreement ($3 -7k
monthly)$5,000.00 Econ. Deve.$60,000.00
Quarterly Pasco Chamber of
Commerce Membership Dues & Event Support (LTAC)$9,750.00 LTAC $39,000.00
Quarterly TRIDEC Industrial Recruitment Participant Agreement
Resolution 4439 $7,500.00 Econ. Deve.$30,000.00
Monthly Visit Tri-Cities Monthly Contract Dues (LTAC)$19,632.80 LTAC $235,593.60
$522,625.60
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11
FTE Allocation
General Fund-Departments 2021 2022 2023 2024 2025-2026 2027-2028
Auth Budget Auth Budget
City Council 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Municipal Court 15.85 15.85 17.85 17.85 17.85 15.85 18.00 15.85
City Manager 5.00 5.00 9.00 9.00 9.50 8.50 9.50 6.50
Human Resources 5.50 6.50 7.00 7.00 7.00 6.00 7.00 6.00
Police 92.00 96.00 110.00 110.00 114.00 108.00 114.00 86.00
Fire 38.00 38.50 47.50 47.50 47.00 44.50 47.00 38.20
Parks & Recreation 23.55 24.55 30.55 30.55 30.55 27.55 30.55 27.00
Information Technology 11.00 11.00 14.40 14.40 14.40 13.40 14.40 10.40
Facilities 5.00 5.00 9.00 9.00 9.00 7.00 9.00 7.00
City Clerk 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Finance 17.05 19.05 21.55 21.55 21.55 18.55 22.30 17.30
Community & Economic Development 25.00 28.00 32.00 32.00 32.00 29.00 32.00 26.00
Engineering & PW Admin 10.65 13.65 16.65 16.65 15.80 15.80 0.25 0.25
Sub-Total General Fund 257.60 272.10 324.50 324.50 327.65 303.15 313.00 249.50
FTE Allocation- General Fund
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Other Funds
Streets 7.50 7.50 7.50 7.50 7.67 7.67 16.64 15.64
CDBG 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Martin Luther King Center 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.00
Ambulance 43.75 44.25 56.85 56.85 57.35 56.85 56.60 47.40
ARPA 0.00 1.00 0.50 0.50 0.50 0.50 0.50 0.50
Animal Shelter Operations 0.00 0.00 20.00 20.00 22.00 22.00 22.00 21.50
Cemetery 1.50 1.50 1.50 1.50 2.00 2.00 2.00 2.00
Senior Center 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.00
Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Water/Sewer Utility 63.36 65.36 78.86 79.86 78.93 77.99 95.16 95.16
Equipment RR 6.69 6.69 10.19 10.19 9.30 8.30 9.30 6.95
Internal Medical Insurance 0.50 0.50 1.00 1.00 1.00 1.00 1.00 1.00
Sub-Total Other Funds 127.25 130.75 180.35 181.35 182.70 180.26 207.15 193.15
Total, City-wide 384.85 402.85 504.85 505.85 510.35 483.41 520.15 442.65
*Staff is conducting a full audit of temporary, seasonal, and part -time employees for compliance with state and federal laws. Staff
will present a revised headcount once the audit is completed, including the headcount approved for PFD later if needed.
FTE Allocation- Other Funds
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2027-2028
Council Priorities from the
Strategic Retreat
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•Look for efficiencies before reducing services
•Evaluate workload along with staffing
•Be strategic about vacancies
•Protect Public Safety
•Determine an appropriate role for reserves
•Continue investing where doing so reduces
future costs
Council Priorities from Strategic Planning Session
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2027-2028
Budget Pressures & Trends
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•Inflation and rising cost of goods and services
•Increasing utility, fuel and technology costs
•Construction and materials cost increases
•Population growth and increased demand for
services
•Property tax revenue limitations under Washington
law
•Revenue growth not keeping pace with expenses
•State and federal mandates and regulatory
requirements
•Community expectations for services and
infrastructure
•Limited public appetite for increased taxes and fees
•Increases to borrowing costs and its impact to real
estate
•Debt Costs Increased – Investments in facilities
and infrastructure added ongoing debt -service
obligations
•The Gap Became Structural – Ongoing expenses
are now exceeding ongoing revenues, meaning one -
time reserves cannot provide a long -term solution
Budget Pressure: External Factors
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•Employee wages and market competitiveness
•Rising health insurance and benefit costs
•Maintaining appropriate staffing levels
•Maintaining current service levels
•Aging City facilities, infrastructure and
equipment
•Deferred maintenance and replacement needs
•Growth in workload and demand for City
services
•Maintaining adequate financial reserves
•Previous use of reserves to balance operating
needs
•Need to invest in and retain existing
employees
Pasco did not arrive here because of one project,
expense or decision. Several years of rising costs,
slower revenue growth and increased service
demands created an ongoing imbalance that now
must be addressed.
Budget Pressures: Internal Factors
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As the City considers significant budget
reductions, we must balance financial
sustainability with our ability to recruit and retain
the workforce needed to provide City services.
•Market competitiveness
•Recruitment and retention
•COLAs vs targeted market adjustments
•Internal Equity and pay compression
•Affordability
Wage freeze consideration
A wage freeze may provide short-term savings, but
impacts vary across employee groups and classifications.
Freezing compensation can widen existing market gaps;
increase pay compression and create larger catch-up
adjustments in future years.
Employee Compensation & Market Competitiveness
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Pasco is not alone:
•Costs are growing faster than many traditional
municipal revenues.
•Employee wages and benefits are more
expensive as cities compete for qualified staff.
•Aging infrastructure requires greater
investment in maintenance and replacement.
•Inflation continues to increase the cost of
materials, equipment, construction and
contracted services.
•Federal pandemic-era funding has ended,
leaving cities to absorb ongoing costs locally.
•Nationally, only 45% of surveyed city finance
officers expected to be better able to meet
their fiscal needs in FY2026 than the year
before. (NLC 2025)
Pasco vs State & National Budget Trends
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Frozen/Unfunded Positions from
2025-2026 Biennium
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General Fund-Departments
Auth Budget
City Council 7.00 7.00
Municipal Court 17.85 15.85
City Manager 9.50 8.50
Human Resources 7.00 6.00
Police 114.00 108.00
Fire 47.00 44.50
Parks & Recreation 30.55 27.55
Information Technology 14.40 13.40
Facilities 9.00 7.00
City Clerk 2.00 2.00
Finance 21.55 18.55
Community & Economic Development 32.00 29.00
Engineering 15.80 15.80
Sub-Total General Fund 327.65 303.15
Other Funds
Streets 7.67 7.67
CDBG 1.00 1.00
Martin Luther King Center 0.45 0.45
Ambulance 57.35 56.85
ARPA 0.50 0.50
Animal Shelter Operations 22.00 22.00
Cemetery 2.00 2.00
Senior Center 1.50 1.50
Economic Development 1.00 1.00
Water/Sewer Utility 78.93 77.99
Equipment RR 9.30 8.30
Internal Medical Insurance 1.00 1.00
Sub-Total Other Funds 182.70 180.26
Total, City-wide 510.35 483.41
2025-2026
•Over 26 FTEs were frozen from the 2025-2026
from various departments and majority of the
frozen positions directly reduced General Fund
expenses.
•Two of the positions were management
positions.
•Nine of the positions were union.
•All positions were frozen via attrition.
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Finishing 2026
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•Overall General Fund Budget:
Approximately $84.2 million in 2026
•2026 Actuals:
Current revenues and expenditures are being
tracked against the amended budget as the year
closes
•Reserves Used to Balance the Budget:
Approximately $6 million in reserves were
budgeted annually during the current biennium to
maintain existing services
•Projected Ending Reserve Balance:
Approximately $16.1 million at the end of 2026
•Looking Ahead:
The 2027–2028 budget must reduce reliance on
reserves and bring ongoing revenues and
expenses closer into balance
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2027-2028
Projections for General,
Ambulance, & Street Funds:
Revenues & Expenses
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Projections: General Fund
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•Pasco Standard: Maintain at least 2 months
of General Fund operating expenses
•GFOA Minimum:2 months
•Best Practice:3-6 months
•Not Statutorily Required: Reserve levels are
a financial policy and best practice, not a
state-mandated minimum
•Financial Safety Net: Provides flexibility for
emergencies, revenue declines and
unexpected costs
•Supports Creditworthiness: Strong reserves
are one factor considered by credit-rating
agencies and lenders
•Protects Borrowing Ability: Financial
strength can help the City access financing at
more favorable rates
•Using Reserves Has Tradeoffs: Drawing
them down can reduce financial flexibility and
potentially increase future borrowing costs
GFOA Standards & Bonding Capacity
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Reserves Thermometer
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•Projected General Fund Expenses: $80.5 M
•One Month General Fund Operating Expenses:
$6.708 M
Establishing a Reserves Policy (Restricted Reserve)
•Supports Financial Strength: Maintains
creditworthiness and favorable borrowing costs
•Provides Greater Stability: Protects against
economic downturns, emergencies and unexpected
revenue or expenditure changes
•Creates Clear Guardrails: Defines when reserves
may be used and how they should be replenished
•Staff Recommendation: Establish a 3–6 month
reserve policy and formally adopt it by ordinance
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How We Built the Scenarios
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•Zero -Based Budgeting (ZBB)
Reviewed expenses from the ground up
•WAW Initiative
Identified efficiencies and opportunities to
work differently in Labor, Vehicle & Contract
Assessments
•Department Review
Asked management to identify potential
20% General Fund reductions
•Line-by-Line Review
Evaluated proposed reductions and their
impacts
•Scenario Development
Built multiple scenarios using different
levels of reductions, reserves and revenue
•Impact Analysis
Considered effects on employees, services
and the community
•Bottom line: The scenarios presented to
Council are the result of multiple rounds of
review, not across-the-board cuts.
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2027-2028
Scenario #1
Using $0 in Reserves
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Scenario #1- No Reserves Used
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2027 Amount
Revenue $88.6M
Expense $88.3M
Reserves -
Surplus
$255K
2028 Amount
Revenue $86.4M
Expense $89.1M
Reserves -
Deficit
$2.7M
*Based on 38 Directors/Managers and 412 Staff
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•Reduces staffing across all funds by more 50 FTE.
•This excludes addition of 8 FTEs for Sewer
Utility that is regulatorily required and paid by
ratepayers.
•Reduces FTEs:
•Police – 22 (2 Mgmt.)
•Fire – 15 (1 Mgmt.)
•IT – 3 (1 Mgmt.)
•CED – 3
•Finance – 2
•Parks & Recreation – 2
•City Manager’s Office – 2
•PW – 1.5 throughout various funds
Staffing Impact
31
General Fund-Departments
Auth Budget Auth Budget
City Council 7.00 7.00 7.00 7.00
Municipal Court 17.85 15.85 18.00 15.85
City Manager 9.50 8.50 9.50 6.50
Human Resources 7.00 6.00 7.00 6.00
Police 114.00 108.00 114.00 86.00
Fire 47.00 44.50 47.00 38.20
Parks & Recreation 30.55 27.55 30.55 27.00
Information Technology 14.40 13.40 14.40 10.40
Facilities 9.00 7.00 9.00 7.00
City Clerk 2.00 2.00 2.00 2.00
Finance 21.55 18.55 22.30 17.30
Community & Economic Development 32.00 29.00 32.00 26.00
Engineering 15.80 15.80 0.25 0.25
Sub-Total General Fund 327.65 303.15 313.00 249.50
Other Funds
Streets 7.67 7.67 16.64 15.64
CDBG 1.00 1.00 1.00 1.00
Martin Luther King Center 0.45 0.45 0.45 0.00
Ambulance 57.35 56.85 56.60 47.40
ARPA 0.50 0.50 0.50 0.50
Animal Shelter Operations 22.00 22.00 22.00 21.50
Cemetery 2.00 2.00 2.00 2.00
Senior Center 1.50 1.50 1.50 1.00
Economic Development 1.00 1.00 1.00 1.00
Water/Sewer Utility 78.93 77.99 95.16 95.16
Equipment RR 9.30 8.30 9.30 6.95
Internal Medical Insurance 1.00 1.00 1.00 1.00
Sub-Total Other Funds 182.70 180.26 207.15 193.15
Total, City-wide 510.35 483.41 520.15 442.65
FTE Allocation
2025-2026 2027-2028
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•Total Department Budget: $5,839,047
•Development Fee Increase: $1.38M
•Department Reduction: $1,209,585 (20%)
•Service Impacts
•Increase development fees to 80% Cost Recovery
(currently recovering 50%)
•Increased permit wait time
•Decrease Code Enforcement responsiveness/ case
resolution effectiveness
•Employee Impacts
•FTE Reductions: 3 Staff
•What will we do with the remaining budget?
•Continue to carry out our core mission in facilitating
development applications
•Create efficiencies in operational processes across
the organization
•Continue to streamline the development review
process
•Municipal Code updates to improve clarity and
efficiency
•Prioritize nuisance and life-safety code
enforcement cases with Council input and available
resources
Scenario #1 No Reserves Used:Department Impacts- CED
32
Pa
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•Total Department Budget: $3,282,668
•Department Reduction:$324,322 (10%)
•Service Impacts
•LEAN process improvement
•Advertising
•2028 special elections
•Other legal services
•Broadmoor Development Service
•Federal Legislative Liaison
•Employee Impacts
•FTE Reductions: 2 Staff
•Continuing education, conferences, professional
memberships
•Reduced executive recruitment
•Reduced Council clothing, supplies, catering &
travel
•Employee moral: awards, recognition programs
•What will we do with the remaining budget?
•Prioritize core Citywide communications and
essential public information
•Increase use of earned media, organic social
media and City-owned communication channels
•Focus community engagement efforts, including
outreach to Spanish-speaking residents
•Maintain essential City Council and executive
support
•Use in-house resources where possible to reduce
reliance on advertising, consultants and contracted
services
•Streamline internal processes and use existing
technology to maintain essential services with
fewer resources
Scenario #1 No Reserves Used:Department Impacts- CMO
33
Pa
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1
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1
4
•Total Department Budget:$1,860,663 (excludes Utility
Billing that is supported by the Utility Funds)
•Department Reduction: $402,531 (21.6%)
•Service Impacts
•Professional Services
•Financial System Training
•Banking Efficiencies
•Employee Impacts
•FTE Reductions: 2 Staff
•Delays in supporting and responding to internal
and external customers
•What will we do with the remaining budget?
•We have prioritized meaningful professional
development opportunities for all staff in a budget
friendly way
•Finance will continue to provide the following
services to the community and internal
departments:
•Accounts Receivable & Payable
•Payroll
•Budgets, Financial Forecasting/Reporting, &
Audits
•Asset & Cash Management (Banking)
•Debt Service
•Utility & misc Billing & Receipting
•General Accounting & Compliance
Scenario #1 No Reserves Used:Department Impacts- Finance
34
Pa
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2
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1
4
•Total Department Budget: $11,539,806
•Department Reduction: $2,211,680 (19%)
•Service Impacts
•Close one station (remove engine & medic unit)
•Vehicle & Machinery Program
•HAZMAT Team
•Community Outreach Program
•Extrication tools
•Darkhorse Emergency Software
•Fire Impact Fee consultant
•Strategic Plan development
•First Due software
•Chaplaincy services
•Employee Impacts
•FTE Reductions: 14 Staff & 1 Management
•Reduce operational overtime
•Remove IMT overtime
•Reduce Technical Rescue Team training overtime
•Reduce Water Rescue Team training overtime
•Remove Peer Support & Fitness Programs
•Remove Fire Training: Journeyman Academy,
Pump Academy, Tri-Cities Regional Academy,
truck training
•Defer ARFF training costs to the Port of Pasco
•What will we do with the remaining budget?
•Provide core 911 Fire and EMS services
•Maintain BCES / SECOMM dispatch and 800MHz
and microwave radio systems
•Maintain basic fire and EMS equipment and
provide required maintenance and service needs
•Maintain required PPE (fire, active shooter, EMS)
•Maintain minimum required fire and EMS training
Scenario #1 No Reserves Used: Department Impacts- Fire
35
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3
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1
1
4
•Total Department Budget: $1,594,457
•Department Reduction: $122,270 (.07%)
•Service Impacts
•Reduced legal capacity may slow bargaining,
grievances, Civil Service and complex employee
matters as HR prioritizes the highest -risk issues.
•More investigations and high-risk HR matters
handled internally.
•Reduced executive recruitment support may extend
hard-to-fill positions.
•Personnel file conversion will continue more slowly
as existing HR staff absorb the work alongside core
HR responsibilities.
•Employee Impacts
•FTE Reductions: 0
•What will we do with the remaining budget?
•Core HR, benefits, leave, recruitment and
compliance
•Labor relations, bargaining and grievance support
•Performance management and compensation
resources
•HR support for Citywide organizational changes
Scenario #1 No Reserves Used: Department Impacts- HR
36
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8
4
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1
1
4
Benefits Funds
Total 2027 Budget: $12,538,656
Primary function: Funds medical, prescription, and dental benefits for eligible employees, retirees,
and covered family members.
2027 budget drivers:
•Current 2026 funding level, adjusted for expected healthcare and prescription-drug cost trend
•Continued reserve rebuilding and repayment of the $6.5 million interfund loan
•Stop-loss insurance, plan administration, and large-claim volatility
Constraints:
•A self-funded plan pays actual claims as they occur; a few high-cost claims can materially change
annual costs
•The July report reflects favorable early experience, not a final-year forecast
•Disputes over plan interpretation can affect the City’s ability to apply coverage rules and manage
plan costs consistently.
37
Pa
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5
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1
4
•Total Department Budget: $5,004,884
•Department Reduction: $784,595 (15%)
•Service Impacts
•Software programs (Monday.com, caselle ,
Tabuleau )
•E-Recycling
•Hardware NAS Upgrade
•Reduced Printers
•Employee Impacts
•FTE Reductions: 1 Management & 2 Staff
•Training and on -site tech support
•What will we do with the remaining budget?
•Sustain essential operations and support critical
infrastructure needs: maintaining existing systems,
addressing unavoidable break fix issues,
supporting cybersecurity requirements, and
funding foundational modernization efforts that
reduce long term costs and operational risk. As
resource constraints remain, spending will focus
on stability, efficiency, and tools that improve
service delivery without adding significant ongoing
workload.
•Prioritize High Priority requests and essential day
to day operations to ensure core services remain
reliable and secure. Process improvement and
foundational stabilization will be a major focus,
such as citywide file cleanup, standardization of
systems and procedures, and expanding
automation opportunities using currently available
tools and AI.
•Special requests, non urgent issues that do not
interrupt work, and requests for new systems that
are not considered essential may not be
accommodated at this time. To protect staff
capacity and safeguard critical operations, after
hours support may need to be limited to essential
break fix situations only.
Scenario #1 No Reserves Used: Department Impacts- IT
38
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6
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Total Department Budget: $2,335,629
Department Reduction: $0
Why no Municipal Court reductions?
•Already Managing a Significant Caseload
The Court is currently challenged to keep
pace with existing workload
•Reductions Could Shift Costs Elsewhere
Court reductions can create additional
workload and costs for Police and other parts
of the criminal justice system
•Programs Help Prevent Repeat Issues
Probation and other Court programs support
accountability and reduce recurring demands
on City services
•Potential Public Safety Impacts
Reducing programs such as graffiti
enforcement and probation could contribute
to increased calls for service and other
downstream impacts
•Limited Net Savings
Savings within the Court could be offset by
increased costs elsewhere in the City
Scenario #1 No Reserves Used: Department Impacts-
Municipal Court
39
Pa
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7
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1
4
Total Department Budget: $8,002,459
Department Reduction: $2,054,366 (25%)
Service Impacts
•Stop Fiery Foods Festival, GO4 Parade, GO4
Fireworks Event,Cinco de Mayo, Winterfest, Music
& Movies,Memorial Day, Veteran's Day, Wreaths
Across America & Spooky Hall
•Close Memorial Aquatic Park year round
•Park Usability: All portable bathrooms from parks &
recreation facilities removed
•Stop Programs: Senior Center & After School
•Downtown: stop Farmers Market, PSK & Clean -Up
Services
•PROS Plan update (do in-house)
•Fence rental for Columbia property
Employee Impacts
•FTE reductions: 3 Staff
What will we do with the remaining budget?
•Parks & open space maintenance (reduced)
•Cemetery services
•Community facility rentals
•Softball Complex
•Sports fields management
•Adult & youth athletics
•Youth/adult/senior programming (reduced)
•Pasco Aquatic Center operation
Scenario #1 No Reserves Used: Department Impacts- Parks
& Rec
40
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1
4
Total Department Budget for 2027: $31,701,078
Department Reduction for 2027: $5,310,703 (17%)
Service Impacts
•Transition Field Operations (FOD) to a 12 -hour
shift
•Response time impact
•Reduce Support Operations and Lobby Hours
•Accreditation programs
•Axon "Draft One" service
•Do not replace two retiring K9s
•Community engagement programs
•No Citizen Academy
•Limit use of car washes
•Flock program
•Close Lewis Street & Alderwood area stations
•Public Records Request Delays
Employee Impacts
•22 FTE Reductions: 18 Commissioned, 2 Non-
Commissioned, and 2 Management.
•All outside training
What will we do with the remaining budget?
•Respond to and manage 911 or emergency calls
for service.
•Direct operational resources toward essential
department and City objectives.
•Investigate crimes and complete required reports,
including arrest, evidence, property, accident,
offense, and investigative documentation.
•Serve and enforce civil processes and court
orders; execute arrest and search warrants.
Scenario #1 No Reserves Used: Department Impacts- Police
41
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4
Total Department Budget:
PW Streets: $5M (Gen Fund subsidy: $1M/year)
Fleet (Equipment Rental): $2.8M
Department Reduction:
PW Street $1.3M (26% reduction)
Fleet (Equipment Rental): $184,000 (7%)
Service Impact
STREET
•Deferred studies: Ped/bike Masterplan +Traffic
study for US 12
•Reduced Snow and Ice supplies
•Reduced street sign and signal repair supplies
•Limited traffic analyses
•Eliminate grant application efforts
•Eliminated paid training/travel
•Eliminated traffic calming program
•No overtime authorized except for emergency
response
FLEET ER
•Limited outsourced repairs
•No asphalt patching truck
•Reduced tools, parts and small equipment
Employee Impacts
•FTE Reductions:3 Staff & 1.5 Management
What will we do with the remaining budget?
•Crack Seal program
•Striping and signage (reduced)
•Potholes repair
•Limited sidewalk repair program
•Snow and ice response (Reduced)
•Safe and functioning vehicles/equipment in fleet
Scenario #1 No Reserves Used: Department Impacts- PW
42
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1
4
2027-2028
Enterprise Funds
43
Pa
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1
4
Enterprise Funds
44
•Water Utility Budget: $26,535,000
Primary function:Treatment and Distribution of Potable
water
•Sewer Utility Budget: $16,316,000
Primary function:Collection and Treatment of Municipal
wastewater
•PWRF Budget: $34,973,000 Subsidy needed:
$9,700,000
Primary function:Collection and Treatment of Process
Water from Food Processing Industries
•Irrigation Budget: $3,855,000
Primary function:Provide filtered water for irrigation during
warmer months
•Stormwater Budget: $2,675,000
Primary function: Manage stormwater runoff
Enterprise Funds and Capital Funds will be discussed at the
Council Meeting on October 19th.
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4
2027-2028
Special Fund- Ambulance
45
Pa
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9
3
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1
1
4
Budget Strategies - Ambulance Fund
46
•Ambulance Utility Rate
•80% Total EMS Cost Recovery
•$420,000 General Fund Subsidy per RCW 34.21.766(4)(i)
•Ground Emergency Medical Transport (GEMT)
•Wage Restructure
•60% Ambulance Fund / 40% General Fund
Rate 2026 2027 2028 2029 2030
Monthly Rate $28.17 $29.57 $31.03 $32.55 $34.12
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Ambulance Utility Rate
47
Account 2025 Actual 2026 Amended 2027 Proposed 2028 Proposed
Monthly
Utility Fee $ 6,898,560.41 $ 6,000,000.00 $ 10,000,000.00 $ 10,300,000.00
Transport
Fee $ 5,799,288.90 $ 5,400,000.00 $ 5,700,000.00 $ 5,900,000.00
Pa
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5
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GEMT
48
•Provides Medicaid Reimbursements
•Not included in the 80% Total EMS Cost Recovery
Amount 2026 2027 2028 2029 2030
Projected $3,016,730 $5,000,000 $5,000,000 $5,150,000 $5,304,500
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6
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Wage Restructure- Ambulance Fund
49
Account 2025 Actual 2026 Amended 2027 Proposed 2028 Proposed
Wages $ 7,203,893.55 $ 7,341,838.00 $ 8,240,506.00 $ 8,623,042.00
Overtime $ 829,561.08 $ 441,061.00 $ 830,475.00 $ 896,971.00
Pa
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Major Expenses- Ambulance Fund
50
•EMS Billing
•Required EMS training
•EMS supplies and equipment
•Medical Program Director Services
•Franklin County Emergency Management Services
•Resource Navigator Program
Pa
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8
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4
Revenue: $88,600,000
Expenses: $88,300,000
Total Budget Reduction: $14,634,705 (16%)
Cost of Unfunded Positions
If positions are unfunded effective January 1, 2027 , there
will be one-time and related costs associated with
implementation, including:
•Employee Leave Payouts
Payment of eligible accrued leave balances
•Collective Bargaining Impacts
Costs or obligations resulting from required labor
negotiations
•Unemployment Costs
Potential unemployment benefit expenses
•Severance & Final Pay
Applicable severance and other required compensation
•Retirement Incentives
Potential costs associated with incentives used to
reduce workforce impacts
Scenario #1 No Reserves Used: Implementation
51
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4
2027-2028
Additional Scenarios & Options
for Consideration
52
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4
•Increase CED Development Fees up to 100% Cost
Recovery
•HB 2015: Public Safety Sales Tax
•Council-authorized 0.1% sales and use tax
•Revenue restricted to public safety purposes
•Estimated Pasco revenue: estimated $2.3
million annually
•Property Tax Levy Lid Lift
•Pasco's 2026 general levy rate:$1.14 per $1,000
AV
•Voters can authorize an increase above the City's
normal annual levy -growth limit
•Amount/rate would be established in the ballot
measure
•Statutory levy limits and other property -tax
limitations still apply
•Fire Protection District / RFA
•Could shift fire-service funding from the City's
General Fund to a separate fire -service taxing
entity
•Could reduce City General Fund responsibility for
fire services
•Requires a separate governance, funding and
voter -approval process
•City's available property-tax levy capacity would
also be affected
•Metropolitan Park District
•Separate taxing district dedicated to parks and
recreation
•Could shift some parks and recreation costs
outside the General Fund
•Requires voter approval
•State law provides levy authority of up to $0.75
per $1,000 AV through two regular levies ($0.50 +
$0.25), subject to applicable property -tax limits.
Potential Cost Savings & Revenue Options
53
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4
2027-2028
Scenarios #2: $3M in Reserves
54
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2
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4
Scenario #2- $3M in Reserves:
55
2027 Amount
Revenue $88.6M
Expense $91.6M
Reserves –
Deficit
$3.0M
2028 Amount
Revenue $86.4M
Expense $92.1M
Reserves -
Deficit
$5.7M
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3
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Scenario #2- $3M in Reserves
56
•Unfunded Positions:41.5 FTE (3.5 Mgmt.)
•Services & Programs added back into the budget (not a
complete list):
•HR:
•Automation of performance evaluation
•Parks & Rec:
•GO4 Parade
•Fire:
•Vehicle Machinery Program
•Peer Support Program
•HAZMAT Team
•Off duty Technical & Water Rescue trainings
•Extrication Tools
•Police:
•Alternate 12-Hour Schedule for Police
•Towing/destruction of boats & RVs
•Outside training
•Axon "Draft One" service
•Reduces FTEs:
•Police – 17
•Fire – 14
•IT – 2
•CED – 2
•Finance – 1
•Parks & Recreation – 2
•City Manager’s Office – 2
•PW – 1.5 throughout various funds
Pa
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4
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4
2027-2028
Scenarios #3: $4M in Reserves
57
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4
Scenario #3- $4M in Reserves:
58
2027 Amount
Revenue $88.6M
Expense $92.5M
Reserves –
Deficit
$3.9M
2028 Amount
Revenue $86.4M
Expense $93.4M
Reserves -
Deficit
$7.0M
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6
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Scenario #3- $4M in Reserves
59
•Unfunded Positions: 37.5 FTE (3 Mgmt.)
•Services & Programs Added Back Into the Budget, plus
most options from Scenario #2:
•HR:
•Compensation software
•Parks & Rec:
•Farmers Market
•Fire:
•Peer Fitness Program
•Darkhorse Emergency & First Due Software
•Fire Impact Fee Consultant
•Chaplaincy Services
•Police:
•Transition to an 8 -Hour Schedule for Police
•Police accreditation programs
•Community engagement programs
•Reduces FTEs:
•Police – 15
•Fire – 14
•IT – 1
•CED – 2
•Finance – 1
•Parks & Recreation – 2
•City Manager’s Office – 1
•PW – 1.5 throughout various funds
Pa
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7
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1
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4
2027-2028
Scenarios #4: $5M in Reserves
60
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8
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1
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4
Scenario #4- $5M in Reserves:
61
2027 Amount
Revenue $88.6M
Expense $93.5M
Reserves –
Deficit
$4.9M
2028 Amount
Revenue $86.4M
Expense $93.4M
Reserves -
Deficit
$7.0M
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9
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Scenario #4- $5M in Reserves
62
•Unfunded:34.5 FTE
•Services & Programs Added Back Into the Budget, plus
most items from Scenario #3:
•Public Works:
•Pavement rating assessment
•Street signs installation
•Fire:
•Apprenticeship Pump Training
•Police:
•Transition to a 10:40 Schedule for Police patrol
•Police accreditation programs
•Towing/destruction of boats & RVs
•Reduces FTEs:
•Police – 11
•Fire – 15
•IT – 1
•CED – 2
•Finance – 1
•Parks & Recreation – 2
•City Manager’s Office – 1
•PW – 1.5 throughout various funds
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4
Scenario Comparisons 2027
63
Scenarios FTEs
Unfunded
Expenses General Fund Use
#1 -
No Reserve Use
55 $88.3M +$255,000
#2 -
$3M Reserves
47 $91.6 -$3.0M
#3 -
$4M Reserves
39.5 $92.5 -$3.9M
#4 -
$5M Reserves
34.50 $93.5 -$4.9M
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Questions &
Discussion
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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 113 of 114
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 114 of 114