Budget and Finance Committee

**Emergency Reserve Crisis:** The most significant policy concern emerged around the general fund's emergency reserves falling below the 18% target to approximately $17.43 million, roughly $700,000 below the emergency reserve floor. Finance Director Asbjornsen acknowledged this puts the city "just under that floor" and requires action in the 2026 budget process. City Manager Minkin revealed department heads are preparing 3% reduction scenarios to address the structural imbalance. **Medic One Fund Challenges:** The Medic One fund faces continued financial distress, projected to end 2025 with only $46,207 in reserves despite receiving previous interfund loans. Asbjornsen explained the fund has been paying back $500,000 annually from a previous $1.5 million loan, but expenses continue exceeding revenues. A contingent $200,000 interfund loan is proposed to prevent the fund from going into negative ter…

**Finance Director Andy Asbjornsen:** Emphasized the routine nature of reserve reconciliation while acknowledging the concerning general fund reserve position. Stressed that departments are "happy to meet with any of you at any time" to explain complex budget details. Confirmed no significant project delays despite large reappropriations. **Council Member Daniel Hammill:** Led the motion to postpone, stating he needed "just a little bit more time to look through this." Expressed desire to understand "the whole picture" including Justice Project obligations. Showed concern about reserve balance levels and housing fund activities. **Council Member Michael Lilliquist:** Used the budget data as "a window into the city," seeking to unders…

**Andy Asbjornsen, on general fund pressures:** "There is definitely continued pressure on the general fund with so many of the departments within the general fund and the growing needs and within the general fund, it's it is one of the more challenging." **Shane Minkin, on emergency reserves:** "I would just highlight for emphasis that in the first ordinance before you today, the final general fund ending reserve balance, which right now we have pegged at $17,430,000 in change that would be…

After this meeting, the three major budget ordinances remain in limbo for at least two more weeks, delaying critical budget adjustments that impact city operations and financial stability. The general fund's emergency reserve crisis is now publicly acknowledged and documented, creating urgency for budget reduction measures. Department heads are actively …

### Meeting Overview The Bellingham Budget and Finance Committee met on April 14, 2025 to consider three ordinances adjusting the 2025 budget: reconciling actual versus estimated beginning reserve balances, reappropriating unused 2023-2024 budget authority, and making various budget corrections and additions. ### Key Terms and Concepts **Reserve Reconciliation:** The annual process of updating estimated fund reserve balances with actual year-end figures after closing the books. **Reappropriation:** The process of carrying forward unused budget authority from one budget cycle to the next for ongoing projects and commitments. **Encumbered Funds:** Money already committed to contracts or purchase orders but not yet spent. **Unencumbered Funds:** Budgeted money that was approved but not put under contract in the previous year. **Emergency Reserve Floor:** The city's minimum fund balance requirement, set at 15% for the general fund, with a goal of maintaining 18%. **Interfund Loan:** A temporary transfer of money from one city fund to another, typically with repayment terms. **Budget Amendment:** Formal changes to the adopted budget to address errors, new needs, or changed circumstances. **General Fund:** The city's main operating fund that pays for basic services like police, fire, and parks. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Lisa Anderson | Budget and Finance Committee Chair | | Daniel Hammill | Committee Member | | Michael Lilliquist | Committee Member | | Andy Asbjornsen | Finance Director | | Eric Johnson | Budget & Treasury Manager | ### Background Context This meeti…