Lakewood reports modest revenue gains in Q3, outlines major 2025 road and park projects
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Summary
Deputy City Manager Todd Krause told the council that third‑quarter revenues are up about $980,000 year‑to‑date and that permit revenue will likely exceed budget; staff outlined a pipeline of 2025 transportation and parks construction projects and flagged a Pierce County sewer main emergency on Bridgeport Way.
Deputy City Manager Todd Krause presented Lakewood’s third‑quarter financial report to the City Council on Jan. 6, reporting year‑to‑date revenue gains and a robust capital project pipeline for 2025.
Krause said revenues through Q3 were roughly $980,000 (2.5%) above the year‑to‑date budget and about $2.6 million (7%) higher than the same period in 2023. She reported operating expenditures are higher year‑to‑date than 2023 — about $3.2 million more — and slightly over budget ($384,000, roughly 1.1%). Development services permit revenue is the largest single windfall currently driving revenue growth; staff now estimate permit revenue could finish the year about $670,000 over budget. Overall, Krause said the city is looking at roughly $790,000 more in revenues than anticipated but cautioned that many revenue and expenditure items finalize late in the fiscal year.
Council members asked for clarification about ending fund balance percentages; Krause said carryforward budget requests and year‑end adjustments will be presented so the council can see the revised ending balance and any reserves carried forward into 2025 and 2026.
Capital projects and other operational items - WSDOT shared‑use path: Staff will present an operations and maintenance (O&M) agreement with the Washington State Department of Transportation (WSDOT) for a shared‑use path connecting neighborhoods; the city is proposing to accept some maintenance responsibilities to ensure prompt upkeep. - Pierce County sewer emergency: Pierce County notified the city of an emergency repair need for a large sewer main under Bridgeport Way between 75th (Lakewood) and 67th (University Place). County staff are evaluating options ranging from internal pipe repairs to full replacement; the city expects to coordinate on traffic control and restoration where trenching may occur. - Road and signal projects: The city plans several major 2025 construction projects, including the Silicon Boulevard work, South Tacoma Way overlays, and a new traffic signal at South Tacoma Way and 92nd (a construction contract for the signal was on the consent agenda). Several residential pavement and sidewalk projects (Idlewild/112th, Interlochen segments, Nyanza/Gravely Lake) are also in design or early procurement. - Parks: American Lake Park improvements, Wards Lake Park work (already under contract), Oakwood Park shelter and pathway, Primley Park playground and ADA improvements, and earlier phases of H Barn planning and engineering are expected in 2025.
Krause and City Manager Caulfield told the council the city will continue to monitor revenues and discretionary spending, and staff will bring carryforward and budget‑adjustment requests to the council in coming months.
Ending Council members praised staff for the conservative approach to discretionary spending and asked for a more detailed report on ending fund balance calculations when carryforwards and year‑end adjustments are prepared.