Budget and Finance Committee

The Budget and Finance Committee unanimously approved three related budget ordinances that collectively adjust Bellingham's 2025 budget by reconciling estimated versus actual reserve balances, reappropriating unspent funds from the previous budget cycle, and making necessary corrections. The three ordinances work in tandem: the first updates beginning reserve balances using actual 2024 year-end data rather than estimates, the second brings forward $104.6 million in unspent budget authority from 2023-2024, and the third makes $32.9 million in corrections and adjustments. Finance Director Andy Asbjornsen highlighted several financial concerns during the presentation. Two funds - Medic One and Workers' Compensation - now show negative beginning reserve balances despite ending 2024 with positive cash, due to year-end expense accruals. The Medic One fund will receive a new $200,000 interfund loan to maintain positive cash flow, adding to previous loans totaling $1.5 million over three years. The combined effect of all budget adjustments reveals a structural deficit in the General Fund, with expenses of $125.7 million against revenue of $121.1 million - a $4.6 million gap that depletes reserves by 2028 if unaddressed. The city is already discussing 3% budget reductions with department heads and planning for revenue-expense rebalancing in 2026. The committee addressed a clerical error in the reappropriation ordinance, correcting the total revenue figure from $10,331,421 to $10,131,421. All three ordinances advance to the full City Council for final approval. #