Lacey City Council reserves $53.6M for roads, recreation, social programs and more

Motorists, park users and residents stand to benefit after the Lacey City Council locked in $53.6 million in committed reserves under Ordinance No. 1691. 

The money covers projects and services residents rely on daily. Arterial streets claimed the biggest win at $22.5 million for major roads that connect neighborhoods to schools, stores and workplaces. 

The Regional Athletic Complex (RAC) received $4.5 million for facility maintenance and upgrades, while city operations pulled in $16.2 million for services ranging from social programs to disaster response. 

The council unanimously adopted the ordinance at a meeting on Dec. 16. 

Acting Financial Services Manager Chelsea Knight told the council that the measure "reflects those discussions and the priorities of council at this point in the process." The $53.6 million "will be committed in alignment with the council's stated priorities," she added. 

The council reviewed the reserve designations at work sessions on Oct. 28 and Dec. 9. The Oct. 28 session centered around the current economic environment and importance of realigning organizational priorities with the city's lower available fund balance, the city noted. 

Since the current designations took effect, the city explained available fund balances have changed, some designations have been spent as intended, and new priorities have emerged. 

The reserves cannot shift to other uses easily. Committed fund balance constraints can only be changed or removed by the same formal action. Budget adoption does not count given that the authorization covers only one year. 

Fund balances must be dedicated to a clearly defined purpose, and a general rainy day or stabilization reserve without a clearly defined purpose does not satisfy that criteria. 

Allocating funds for a specific project, such as replacement of an aging city building, would meet the necessary criteria. 

The city commits fund balances annually under Governmental Accounting Standards Board Statement No. 54, the national standard for municipal reserve reporting that took effect in February 2009. It sorts fund balances into five categories: nonspendable, restricted, committed, assigned and unassigned. 

Fund breakdown 

For roads: Fund 102, Arterial Street, received $22.5 million for Capital Facility Plan Priorities. 

Fund 101, City Streets, received $500,000 for Capital Maintenance and Asset Preservation, and $1 million for Capital Facility Plan Priorities. 

Fund 302, Capital Equipment, received $1.2 million for Capital Maintenance and Asset Preservation, and $100,000 for Innovation.  

Fund 304, Capital Project Revenue, received $2.2 million for Capital Facility Plan Priorities. 

For parks and recreation: Fund 007, RAC Maintenance and Operations, received $1.25 million for Capital Maintenance and Asset Preservation. 

Fund 307, RAC Capital, received $500,000 for Capital Maintenance and Asset Preservation, and $2,729,249 for Capital Facility Plan Priorities. 

Fund 303, Parks and Open Space, received $35,000 for Capital Facility Plan Priorities. 

For city buildings: Fund 005, Community Buildings, received $583,777 for Capital Maintenance and Asset Preservation. 

Fund 301, Building Improvement, received $1.1 million for Capital Maintenance and Asset Preservation, and $3,650,418 for Capital Facility Plan Priorities. 

Knight noted the public art reserve "would be moving from the Building Improvement Fund to the Current Expense Fund" but the city "decided that it makes more sense to do that in 2026." 

For city operations: Fund 001, Current Expense, received $16,214,304 across eight categories: Budget Policy at $6 million, Capital Maintenance and Asset Preservation at $3,177,075, Economic Development Strategy/Investments at $2,657,400, Capital Facility Plan Priorities at $3 million, Human and Social Services at $629,829, Catastrophic Events at $250,000, Sustainability Initiatives at $350,000 and Innovation at $150,000. 

The ordinance grants City Manager Rick Walk and Finance Director Troy Woo the authority to allocate remaining funds after final 2025 balances are known.