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Building Unity and Collaboration in Times of Crisis: How AI Legalese Decoder Eases Communication between Administrations and City Councils

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This commentary is submitted from my perspective as an individual councilmember, and my views are entirely my own.

The City of Edmonds is in a financial crisis and a fiscal emergency as I am writing this article; in fact, according to the 2023 Monthly Financial Reports published on the cityÔÇÖs administrative service webpage, the city has been using the general fund reserve and contingency fund reserve to fund day-to-day operations since January of 2023.

Overview of the City’s General Fund Reserve and Contingency Fund Reserve

Here is a summary of the cityÔÇÖs general fund reserve and contingency fund reserve required by the Fund Balance Reserve Policy and their actual deployment from January to August 2023.

general reserve analysis Instantly Interpret Free: Legalese Decoder - AI Lawyer Translate Legal docs to plain English
Legend: 1- Dec 2022, 2-Jan 23, 3-Feb 23, 4-Mar 23, 5-Apr 23, 6-May 23, 7-Jun 23, 8- Jul 23, 9-Aug 23
contingency reserve analysis Instantly Interpret Free: Legalese Decoder - AI Lawyer Translate Legal docs to plain English
Legend: 1- Dec 2022, 2-Jan 23, 3-Feb 23, 4-Mar 23, 5-Apr 23, 6-May 23, 7-Jun 23, 8- Jul 23, 9-Aug 23.

According to the proposed 2024 budget, the City of Edmonds will end 2023 with record revenues ($51.6 million) and expenditures ($56.9 million). The expenditures have been outpacing revenues to a point where more than $2.2 million of the reserve funds will have to be deployed to cover general fund expenditures. This trend of expenditures outpacing revenues continues into 2024 and the outyears forecasted.

The AI legalese decoder can help in this situation by analyzing the city’s financial reports and identifying the specific areas where expenditures are exceeding revenues. By understanding the root causes of this financial crisis, the city council can make informed decisions and create strategies to address the issue effectively. Additionally, the AI legalese decoder can provide recommendations on how to improve financial management, optimize resource allocation, and explore alternative options to ensure efficient and cost-effective delivery of services to Edmonds residents.

Upon closer study of the 2024 proposed budget, one can discover that the mayorÔÇÖs proposed budget assumes Edmonds will be annexed into the Regional Fire Authority (RFA) by 2025. However, the council is now studying this issue further to determine what other options may be available to ensure Edmonds residents receive the highest possible level of fire/EMS services at the lowest possible cost. The administration and the city council will need to work collaboratively to look at all possible options before the RFA annexation issue is brought to the Edmonds residents for a vote.

How did we get into this financial crisis? Recent inflation is a factor; however, the fact that our city has a net gain of 47 employees in the first nine months indicates that the city administration has expanded quickly in a short period of time. Despite the repeated warnings and attempts to review and strengthen the Fund Balance Reserve Policy, the city continues to spend down reserves.

This trend of expenditures outpacing revenues canÔÇÖt continue any more. The administration and the city council must unite to face this financial crisis together. When we find ourselves in the hole, we must stop digging to expand our government. Here is a workable solution to get us out of this fiscal emergency.

First, the city council needs to declare a de facto fiscal emergency. We need to declare a fiscal emergency because the fact that the city is using reserves to fund day-to-day operations, we are in an emergency.

Second, the city council can authorize the administration to use American Rescue Plan Act (ARPA) funds for general fund usage in 2023 to get through 2023 and not start 2024 with a general fund reserve deficit.

Knowing that using ARPA funds is not a long-term solution, we now need to look at all reasonable options to control costs in 2024 and beyond to ensure our budget is balanced while continuing to deliver quality services to our residents and businesses.

As a city, we are committed to ensuring excellent fire/EMS services for our residents and businesses. Our contract with South County Fire for these services continues until 2030 (however, the RFA does have the option of terminating the contract upon a two-year notice to the city), so we do have some time to explore all reasonable options, including joining the Regional Fire Authority, establishing a contract with a different agency, or re-initiating an Edmonds Fire Department.

Third, the city council will work with the administration on a public safety levy in 2024 and possibly RFA annexation matters in 2025.

The 2024 budget is a challenging one. It requires the collaboration between the city administration and the city council more than ever to produce a balanced budget within our financial means while ensuring excellent services for our residents and businesses.

ÔÇö By Will Chen

Will Chen is an Edmonds city councilmember, finance committee chair and taxpayer

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