LANGLEY: City Council resumes budget talks
Kira Erickson reports from the Langley City Council meeting of Aug. 26, 2024 for the South Whidbey Record.
City officials are learning more about Langley’s budget, and where things went astray financially.
During a city council workshop meeting on Aug. 26, Mayor Kennedy Horstman gave a presentation on the city’s current financial state and key takeaways, with assistance from Councilmember Chris Carlson, who delved into expenditures and revenues from the past six years.
As Horstman pointed out, much of the concern surrounds the city’s general fund, which has had the most challenges. She explained that for four of the last six years, the city has planned for a deficit, which means budgeting to spend more than the projected revenue. For the past three years, revenue was inaccurately inflated, and as a result the city has consistently spent more than was made and more than was budgeted.
They Said It
Councilmember Craig Cyr wondered how Langley planned for a deficit when the city is legally required to pass a balanced budget every year. Horstman responded that the city has been planning to spend revenue plus what was believed to be the starting balance.
“When you couple that with the fact that our revenue was inaccurately projected and we overspent what we budgeted anyway, it’s not a great picture,” she said.
The intention, Carlson said, is to start a conversation about the big picture trends of the city’s budget.
“We’ve been kind of overly optimistic in projecting our revenue, and we haven’t been keeping to a conservative plan that spends what we’re bringing in and no more than that,” he said.
Councilmember Rhonda Salerno pointed out that American Rescue Plan Act funds also added to the city’s budget.
Horstman said it’s important to base the budget on expenses and revenues, not balances.
“In theory, if we keep our belt tightened with mission critical purchases only in the general fund, we should end up with about $37,000,” she said. “Now, $37,000 makes me feel better than a negative number, but it doesn’t make me very comfortable.”
The good news, she said, is if spending is kept under control, the city should break even.
