Everett council approves $7.55 million transfer to reserve accounts, defers $3 million Everett Square borrowing to special meeting

The Everett City Council voted to move $7,552,930 from the city’s budgetary fund balance (free cash) into three stabilization funds and agreed to hold a later special meeting to review a separate $3 million borrowing request for Everett Square improvements.

At a public meeting, residents repeatedly urged the council to reject or examine borrowing for Everett Square and pressed for greater financial transparency. Peggy Sereno, a resident identified in the record, said she did not know how the $3,000,000 would be spent and accused the administration of prioritizing developers. John Pablo and other speakers criticized the mayor’s administration and asked for audits and more public involvement.

Finance director (Mr. Demas) told the council the transfers are to existing funds: general stabilization ($2,265,879), other post‑employment benefits (OPEB) trust ($2,265,879) and capital improvement stabilization ($3,021,172). He said the move follows the city’s financial policy and noted that the OPEB liability was identified following Governmental Accounting Standards Board requirements.

Councilors debated whether to refer the Everett Square borrowing to Ways and Means or to hold a special meeting for an administration presentation. Several members asked that any presentation be separate from an immediate vote to allow time for review. The council ultimately voted to refer the Everett Square borrowing item to a special council meeting for a presentation by the administration and deferred the vote.

On the stabilization fund transfer (Item 12), the council accepted the committee report and approved the transfer by roll call, 9 yeas to 2 nays. Members asked staff for current fund balances and for clarity on how and when the funds would be tapped; staff said any future expenditures from these stabilization accounts would require additional council approval.

The council chair said transferring certified free cash into stabilization accounts does not itself appropriate spending; it only sets aside funds. The action was presented as part of a longer-term plan to build reserves and address obligations such as retiree health liabilities.

The council referred the Everett Square borrowing request (Item 7) to a special meeting where the administration will present details; several public speakers urged rejection of that borrowing until residents are given specifics. The council did not take the borrowing vote at the same meeting.

The council’s next steps: staff committed to providing additional balance information on the stabilization funds, and the administration will present detailed Everett Square plans at the special meeting before any vote.