Only small portion available Chen clarifies his thinking on availability of city reserve funds
Edmonds City Councilmember Will Chen clarified that the city has limited access to over $70 million in reserve funds amidst financial challenges. During a recent interview, he addressed public inquiries about the city's budget crisis and the implications of his earlier remarks. Chen explained that while some funds might be accessible, many are legally restricted for specific purposes, such as the General Fund, which currently holds about $3. 6 million. He emphasized that only approximately $1.
5 million could be used freely, as indicated by City Finance Director Richard Gould. The city’s various funds, including Enterprise and Special Reserve Funds, have specific legal requirements that must be adhered to. Chen cautioned that accessing these funds without proper legal advice and council approval could jeopardize future obligations. He also voiced his opposition to a proposed $14. 5 million levy lift, highlighting the potential tax burden on property owners.
Chen's clarifications aim to address misconceptions regarding the city's financial resources and their availability for immediate use.