City Staffer Says Development Has Slowed, Will Remain Flat

Opinion:  Yoder

Redmond city staffer states "development in the City has slowed down compared to previous years and will remain relatively flat in the coming years."  

Overall, development in the City has slowed down compared to previous years, and this has had a noticeable impact on revenue. The decline in development activity became evident in 2023, and based on current trends, we anticipate that revenue from development will remain relatively flat in the coming years. Development revenue plays a crucial role in covering the full costs associated with the development staff. This includes salaries, benefits, and other operational expenses tied to the personnel who manage and oversee development projects within the City. Given the importance of development revenue in supporting these staff members, any fluctuations or declines in development activity directly impact our ability to maintain these roles at their current levels. To mitigate the impact of these fluctuations and protect against downturns in development revenue, we maintain a reserve within the Development Review Services fund (listed below). These reserves are designed to provide a financial buffer, ensuring that we can continue to support the necessary staffing and maintain service levels even during periods of lower development activity.

-- E.Z. Interim Financial Planning Manager, 11/6/2024

The 2025 estimated beginning fund balance for the General Fund is $51.9 million, which is used to fund reserves and contingencies that will be carried over and replenished each budget cycle. The remaining surplus is utilized to fund one-time (money) operating service enhancements, capital investments, and technology projects. The following General Fund reserves and contingencies are included in the preliminary budget:

 

• Economic Contingency ($4,645,228,000)  ("One-time money" is used exclusively for non-recurring expenses.)  
• Salary & Benefit Contingency ($5,365,000)
• Fire Overtime Contingency ($1,600,000)
• Body Worn Camera Program Reserves ($1,340,144)
• Opioid Funding Reserves ($557,000)
• Development Review Services Reserves ($3,619,750)

Source:   2025-26 Preliminary Budget / Expenditures 

Posted:  12/15/2024