Olympia approves funding about 65% of fund balance for various programs; holds off BLS and CARES startup

On Tuesday, June 20, the Olympia City Council approved the allocation of $4.3 million from the city's fund balance of $6.6 million to finance various programs, including the Homeless Response initiative, and two new items such as the establishment of the Dispute Resolution Center for landlord and tenant issues and a federal lobbyist.

However, the city council decided to hold off on the recommendation to allocate $2.2 million for the Basic Life Support (BLS) Program and Olympia Fire Department Community Assistance, Referrals and Education Services (OFD CARES) start-up costs.

Councilmember Lisa Parshley supported the BLS and CARES programs startup but cautioned her colleagues before committing the funds.

Before making a final decision, Parshley, the Finance Committee chair, suggested waiting until they hear from the investment advisors and the information about the recession.

Parshley also suggested putting the $2.2 million into reserve for fund stabilization.

During the city council meeting, Olympia City Manager Jay Burney explained that the fund balance over policy represents the funding available after accounting for and fully funding the city's reserves. He said the amount could fluctuate from year to year due to factors such as departmental spending, unexpected revenue, and the overall financial performance of the previous year.

Councilmember Lisa Parshley supported the BLS and CARES programs startup but cautioned her colleagues before committing the funds.

City manager’s recommendations

Burney recommended directing the fund balance over policy toward financing the programs:

• Homeless Response - $1.3 million.
  • Burney said this one-time funding would help fund the Homeless Response program gaps. He added the city has contracts for Plum Street Village and Quince Street Village, and new housing support programs are coming in. "We still have some gaps, and this helps us with that."
    Burney also mentioned that Olympia Housing Director Darian Lightfoot is working with the Department of Commerce to get funding for Plum Street Village.
• Building repair and replacement - $500,000
• Court Space Transition Seed Funding - $500,000
  • Early this year, the city closed the jail portion of a building on Plum Street, which resulted in insufficient space for all community court providers. Burney said they are working with City Attorney Mark Barber and his team and Diane Whaley of the Community Court to explore alternative space options for those housed in the building. He suggested leasing space to meet the needs of community providers.
• Workers' compensation - $500,000
• Sidewalks - $300,000
• Development Fee Fund Seed (CP&D underspend) - $250,000
• LERMS Records Management System - $250,000
  • The Olympia Police District and other partners have a regional records management system that requires an upgrade. Burney said the cost of an upgrade is shared among all partners. The Olympia share amounts to $500,000. Recently, the city council set aside half of the required funds, completing the upgrade funding.
• Public Defense - $158,000
  • Citing his conversation with Diane Whaley of Community Court, Burney said the public defense case counts are increasing, and her budget is running low. He proposed additional funding for the city's public defenders. " would get them through this year and gives us some time to reevaluate our case counts as part of looking at our 2024 budget."
• Asset Management (Olympia Fire Department) - $100,000
  • According to the city manager, the funding would go to the OFD for their bunker gear and other needs. He told the city council they needed to fund the program yearly. "We've got more work to shore up funding within our public safety [in fire and police]."
• RFA election cost - $100,000
• The city covered the costs for the RFA election held in April.
• Wayfinding signage - $100,000
• Outside legal services - $85,300
• Salary survey - $75,000
  • Burney said it is time to conduct a salary survey for non-representative employees to ensure competitive pay. He talked about bringing a consultant on board to start the work on a salary survey, which would give them information on future budget conversations.
• Dispute Resolution Center - $50,000
  • The center previously received state funding to conduct a pilot program for landlord-tenant rent dispute mediation, but the funding was discontinued.
    The city agreed to support them with the additional pilot budget.

"We can do this on a one-time basis, but it would be difficult to support a long haul. That would buy some time for a conversation about how we can stand this up and make this successful over the long term," Burney said.

• Federal lobbyist - $50,000
• Olympia Police District (OPD) staffing study - $50,000

Proposed funding list