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FOR IMMEDIATE RELEASE City of Kenmore Communications
October 22, 2020 communications@kenmorewa.gov
425-398-8900
Kenmore City Council to consider adopting Financial Sustainability Plan to balance Kenmore’s budget for the next six years
Kenmore, WA – The Kenmore City Council will consider the adoption of the Financial Sustainability Plan at their next meeting on October 26, 2020 at 7:00 p.m. via the Zoom online platform. The Financial Sustainability plan was developed by a task force of community members to balance the City of Kenmore’s budget for the next six years.
The task force considered data and public input over the last year and initially presented their recommendations to the City Council in September. Key recommendations include adding revenue sources, reducing expenses, and rebalancing the budget to better reflect Kenmore’s priorities. Once adopted, the six-year Financial Sustainability Plan will provide guidance for the City’s biennial budgets. The 2021-2022 biennial budget planning process is currently underway and there are opportunities for public input: see www.kenmorewa.gov/budget for more information.
The development of the plan started in 2019 when Kenmore City Council approved a process for creating a Financial Sustainability Plan and a charter for a task force of seven community members to assist in solving a forecasted $2 million per year structural deficit by 2026. Although the City of Kenmore has a record of adopting balanced budgets, the pre-pandemic forecast showed operating expenditures exceeding operating revenues as soon as 2022. This problem has been further exacerbated by decreased revenues and budget shortfalls caused by the pandemic.
The City’s construction projects (aka capital projects) are funded separately and independently of the City’s operating budget. Capital projects are paid for with one-time capital revenues, such as grants, voter-approved bonds, and impact fees from new construction. The City’s general operating fund (police, parks maintenance, etc.) does not have access to these capital revenues and is funded from separate revenues such as property tax and sales tax.
Throughout the Financial Sustainability Plan process, public input was gathered through surveys, emails, and comments at Task Force meetings. Additionally, the City of Kenmore deployed an online interactive tool known as “Balancing Act” to get hands-on input on how to balance the City’s budget. Over 200 people submitted feedback through the Balancing Act tool.
For more information, visit www.kenmorewa.gov/FSP. The October 26 City Council meeting agenda is available on the City’s website.
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