On the agenda: Black Diamond City Council Meeting — Data Center (Sep 15)

CITY OF BLACK DIAMOND
September 15, 2026 Council Meeting Agenda
Council Chambers, 25510 Lawson St.
Black Diamond, WA 98010
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7:00 P.M. CALL TO ORDER, FLAG SALUTE, ROLL CALL
AGENDA REVIEW AND APPROVAL:
PUBLIC COMMENTS: Persons wishing to address the City Council regarding items of new business are encouraged to do so at this time. When
recognized by the Mayor, please come to the podium and clearly state your name. Please limit your comments to 3 minutes. If you desire a formal
agenda placement, please contact the City Clerk at 360-851-4500. Thank you for attending.

APPOINTMENTS, ANNOUNCEMENTS, PROCLAMATIONS AND PRESENTATIONS:
COMMITTEE REPORTS:
DEPARTMENT REPORTS:
1) AB26-115 – 2nd Quarter Financial Report

Mr. Mason

CONSENT AGENDA:
2) Claim Checks – September 15, 2026, Check No. 57722 through Check No. 57768 in the amount of $183,434.77
3) Minutes –Council Meeting of September 1, 2026
4) AB26-116 – Resolution Regarding Utility Truck Purchase

Mr. Hanis

5) AB26-117 – Resolution Regarding Interpreter Grant

Ms. Parks

6) AB26-118 – Resolution Authorizing Professional Services Agreement with Parametrix, Inc. to Update
the City’s Stormwater Management Action Plan

Mr. Hanis

PUBLIC HEARINGS: - None
UNFINISHED BUSINESS:
NEW BUSINESS:
7) Hometown Heroes Banner Program

Councilor Nielsen & Mr. Boje

8) Purple Heart City

Councilor Nielsen & Mr. Boje

9) AB26-119 – Resolution Adopting the City’s Strategic Plan
Americans with Disabilities Act – Reasonable Accommodations Provided Upon Request (360-851-4500)

Mr. O’Neill

MAYOR'S REPORT:
COUNCIL REPORTS:
•

Councilmember Young

•

Councilmember Dal Santo

•

Councilmember Reed

•

Councilmember Deady

•

Councilmember Nielsen

•

Councilmember Peterson

•

Councilmember Sorci

CITY ADMINISTRATOR REPORT:
ATTORNEY REPORT:
PUBLIC COMMENTS:
EXECUTIVE SESSION:
ADJOURNMENT:

Americans with Disabilities Act – Reasonable Accommodations Provided Upon Request (360-851-4500)

CITY COUNCIL
AGENDA BILL

City of Black Diamond
Post Office Box 599
Black Diamond, WA 98010
ITEM INFORMATION

SUBJECT:
Black Diamond 2026, 2nd Quarter
Financial Report

Cost Impact (see also Fiscal Note): N/A
Fund Source: N/A
Timeline: 2026

Agenda Date: September 15, 2026
Mayor - John Adler
City Administrator - Kevin O’Neill
City Attorney - David Linehan
City Clerk – Brenda L. Martinez
Com Dev – Hal Hart
Finance – Xavier Mason
MDRT/Ec Dev – Michelle Wright
Police – Chief Kiblinger
Public Works – Scott Hanis
Court – Judge Swain/Tawnya Parks

AB26-115

X

Agenda Placement:
Mayor
Two Councilmembers
Committee Chair
City Administrator
Attachments: Black Diamond’s 2026, 2nd Quarter Financial Report, 2nd Quarter Financial Report
Presentation
SUMMARY STATEMENT:

The Black Diamond 2026, 2nd Quarter Financial Report summarizes the 2026 budgeted
revenues and expenditures compared to the actual revenues and expenditures received
through June 30th, 2026. This report includes statements for the General Fund, Street Fund,
Water Fund, Sewer Fund, Stormwater Fund, a city-wide balance sheet, and Black Diamond’s
investment portfolio.
General Fund Summary
The General Fund earned $6,173,826 in 2026, equaling approximately 48.8% of projected
revenues for the year. The pace of revenues earned was considerably strong throughout the
year; especially considering that some revenues have seasonal variations in the pace of their
earnings throughout the year. The General Fund operating expenditures are $6,072,639 as of
June 30, 2026, equaling approximately 46.5% of budgeted expenditures for the entire year.
Street Fund Summary
The Street Fund earned $97,896 in total revenue for 2026, or 18% of projected revenues of
what was budgeted for the year. The total expenditures for the Street Fund for 2026 was
$434,216 or 47% of projected expenditures for the year. This fund is unique in that its revenues
are heavily supplemented by internal transfers, so the difference between operating revenues
and operating expenditures are usual for this fund, more information could be found on pages
10 and 14 of the attached Black Diamond 2026, 2nd Quarter Financial Report.
Water Fund Summary
The Water Fund earned $1,106,169 in 2026, or 38% of projected revenues for the year. Like the

General Fund, some revenues have some seasonal variation in the pace at which they are
earned. This year’s revenues were very strong. Total expenditures for 2026 were $852,211 or
32% of the budgeted expenditures for the year.
Sewer Fund Summary
The Sewer Fund revenue earned $1,497,678 or 51.4% of the projected revenues for 2026. The
Sewer Fund’s expenditures totaled $1,419,529 or 49% of the budgeted expenditures for the
year. After all expenditures are considered, the Sewer Fund ended the 2nd quarter of 2026 with
a surplus of $78,149.
Stormwater Fund Summary
The Stormwater Fund earned $641,865 in 2026, or 56.5% of projected revenues. This fund is
unique in that the City receives revenues earned from King County primarily within two
tranches throughout the course of the year, mirroring the payment schedule of property taxes.
Stormwater operating expenditures were $544,312 or 51.6% of budgeted operating
expenditures for the year. After all expenses are considered, the Stormwater Fund ended the
2nd Quarter of 2026 with a surplus of $97,553.
Balance Sheet Summary
Across all funds, the City has a total balance of reserves and cash in the amount of $22,445,224
an increase of $1,199,674 since December 31, 2025, as detailed on page 18 of the Black
Diamond 2026, 2nd Quarter Financial Report.
Investment Report Summary
The City continues to benefit from high interest rates with an average return of 3.69% from the
LGIP and 4.15% from longer-term investments. In 2026, the City has earned $377,577
(rounded) from investments that are being utilized to support operational and capital
expenditures.
Recent Additions
Debt Activity
This section has always been a component within this report; however, it was somewhat empty
due to the lack of activity since 2024. During the 1st Quarter of 2026, the General Fund issued a
Interfund Loan to the Public Works Department. The details of that loan and its amortization
schedule are detailed in the Debt Activity section on page 26.
FISCAL NOTE (Finance Department): N/A
COUNCIL COMMITTEE REVIEW AND RECOMMENDATION: Reviewed by the Budget, Finance, and
Administration Committee on September 8th, 2026
RECOMMENDED ACTION: N/A

RECORD OF COUNCIL ACTION
Meeting Date
September 15, 2026

Action

Vote

City of Black Diamond, Washington

City of Black Diamond
Quarterly Financial Report for the 2nd Quarter of
2026

Page 1

This page is intentionally left blank.

Page 2

Table of Contents
Financial Report: 4th Quarter 2025 Overview............................................................................................... 4
The General Fund Overview..................................................................................................................... 4
2025 Fourth Quarter Operating Funds Financial Report ...................................................................... 4
General Fund Operating Revenues ....................................................................................................... 4
General Fund Revenue Analysis........................................................................................................... 5
General Fund Operating Expenditures.................................................................................................. 9
General Fund Performance Summary................................................................................................... 9
Operational Fund Summaries: Special Revenue and Enterprise Funds .................................................... 9
Street Fund Performance..................................................................................................................... 10
Water Fund Performance .................................................................................................................... 10
Sewer Fund Performance .................................................................................................................... 10
Stormwater Fund Performance ........................................................................................................... 11
Summary of Cash and Investment Balances - 2019 through December 31, 2025.................................. 11
Fund Balance Classifications Summary ................................................................................................. 11
Black Diamond Investment Portfolio Summary ..................................................................................... 12
General Fund Income Statement................................................................................................................. 13
Street Fund Income Statement .................................................................................................................... 14
Water Fund Income Statement.................................................................................................................... 15
Sewer Fund Income Statement ................................................................................................................... 16
Stormwater Fund Income Statement........................................................................................................... 17
Cash and Investment Balance Report ......................................................................................................... 18
Black Diamond Investment Report............................................................................................................. 19
Portfolio Benchmark Yield and Maturity ............................................................................................... 21
Economic Outlook .................................................................................................................................. 22
Debt Activity........................................................................................................................................... 26
City of Black Diamond Distribution of Cash and Investments............................................................... 28
Black Diamond Investment Portfolio Earnings ...................................................................................... 29
Restricted and Committed Portion of Ending Cash and Investments ..................................................... 33
Summary of Fund Balances .................................................................................................................... 43

Page 3

City of Black Diamond
24301 Roberts Drive ~ PO Box 599
Black Diamond, WA 98010

Phone: (360) 851-4500
Fax: (360) 851-4507

August 28th, 2026

Financial Report: 2nd Quarter 2026 Overview
The General Fund Overview
2026 Second Quarter Financial Report
This report provides a comprehensive overview of the City’s financial performance through June 30,
2026. It compares budgeted figures against unaudited actual revenues and expenditures for the second
quarter of fiscal year 2026. To provide historical context, 2025 data is included for year-over-year
analysis. This summary encompasses the General, Street, Water, Sewer, and Stormwater Funds, as well as
the City’s balance sheet and investment portfolio.

General Fund Operating Revenues
General Fund operating revenues for the second quarter of 2026 totaled $5,045,803, reaching 52.7% of
the annual projection. This performance aligns with budget expectations, especially when accounting
for seasonal revenue fluctuations. Overall, General Fund revenue streams remain robust and consistent
with fiscal targets.
The following analysis highlights key revenue drivers and explains notable variances from the 2026
adopted budget.

Page 4

General Fund Revenue Analysis
Revenue

Property Tax

Sales Tax

Utility & Gambling Tax

Percentage

Comparison to Budget (50%)

56.4%

King County assesses and issues property taxes in
February, with the City receiving the bulk of these
remittances in April and November. After these
peak periods, the remaining revenue is distributed
throughout the fiscal year according to the County’s
schedule. While 2025 collections concluded in
alignment with budget projections, 2026 data
indicate a similar trend of stability and consistency.

59%

The City has maintained strong sales tax growth for
several consecutive years. Building on the positive
trends of 2025, year-end revenue reached
$1,549,628, exceeding the annual budget by 12.3%.
This momentum has carried into the first quarter
and second quarters of 2026, where revenue is
currently 9% above the 50% benchmark.

58.9%

Utility taxes are receipted monthly; however,
collections often reflect seasonal variances in utility
usage. In 2025, combined utility and gambling
taxes outperformed expectations, generating 8%
more than the annual budget. This trend continued
into 2026; at the close of the first quarter, these
revenues are 8.9% above the 50% threshold. Given
these seasonal fluctuations, it is highly probable that
this revenue stream will once again exceed the
annual budget, with some revenue sources slowing
down in the 3rd Quarter.

Page 5

General Fund Revenue Analysis (Continued)
Revenue

Cable Franchise Fees

Business Licenses

Liquor Tax & Profits

Percentage

Comparison to Budget (50%)

43.4%

Cable franchise fees continue a multi-year
decline. In 2025, revenues totaled $73,797,
reaching only 83.9% of the annual projection, a
notable drop from 89.3% collected in 2024. In
response to this consistent contraction, the 2026
budget was proactively "right-sized" to better
align with realized earnings. Despite these
downward adjustments, the 2026 second
quarter revenues remain below the 50%
benchmark.

52.5%

46.3%

Business license revenue for 2025 totaled $52,220,
finishing just 3.3% below the annual projection. For
2026, this revenue stream is currently at 52.5% of
its target, performing essentially on par with
budgeted projections and the 50% benchmark.

Liquor tax and profit revenues closely tracked
quarterly milestones throughout 2024 and 2025, a
trend that continues into 2026, reaching 46.3% at
the halfway mark of the year. Although 2025
revenues finished slightly below projections, total
earnings reached $100,416, representing a minor
variance of just 3.4% under the budgeted amount.

Page 6

General Fund Revenue Analysis (Continued)
Revenue

Investments, Recycle Grants,
and Miscellaneous Revenue

Court Fines, Fees, and
Therapeutic Court Grant

Police Department Revenue

Percentage

Comparison to Budget (50%)

70.6%

The "Investments, Recycle Grants, and
Miscellaneous" category comprises several distinct
revenue streams. In 2025, these sources generated
$413,355, or 97.4% of the budgeted amount,
primarily driven by interest earned on General Fund
reserves. At the end of the 2nd Quarter, the General
Fund has earned $190,587 in interest, with
additional grant funding expected to arrive as the
year progresses.

24.8%

Municipal Court revenues totaled $222,178 in 2025,
finishing the year at 103.6% of the budgeted
amount. Currently, 2026 revenues stand at 24.8%,
which is significantly below the 50% benchmark.
This variance is primarily due to the $200,000
budgeted as a placeholder for the Maple Valley
contract. As the contract has not yet taken effect,
the revenues for this service revenues have not been
realized. This will continue to impact the
"percentage earned" metric until the services for
that contract is provided.

48.6%

Building on the strong performance observed in
2024, Police Department revenues remained
consistently above quarterly benchmarks
throughout fiscal year 2025. By the close of the
fourth quarter, total earnings reached $581,333, or
112.9% of the annual budget. At the end of the 2nd
Quarter of 2026, revenues stand at 48.6% of
projections.

Page 7

General Fund Revenue Analysis (Continued)
Revenue

Land Use & Permitting Fees

Parks Revenue

Cemetery Fees & Charges

Percentage

Comparison to Budget 25%

40.4%

Land Use and Permitting revenue experienced a
significant rebound in 2025, totaling $3,108,400.
This marked a sharp reversal from 2024, when fees
fell 21% below projections. By outperforming the
2025 budget by 106.1%, this stream generated a
surplus of approximately $1.6 million. This
substantial variance is attributed to external market
factors and accelerated development activity,
highlighting the inherent volatility of growthdependent revenues. Through the first quarter of
2026, this revenue stream has reached 40.4% of
budgeted projections, approximately 9.6% below
the 50% benchmark.

60.4%

342.6%

Park revenues remained strong through the end of
2025, totaling $75,752 and exceeding the annual
budget by 1%. For 2026, Parks Department revenue
is currently higher than projections at this point in
the year at 60.4%. Given the anticipated surge in
activity during the summer months, this revenue
stream is well-positioned to exceed budgeted
expectations by year-end, while slowing down
activity in the third and fourth quarters, due to
decreased activity in Lake Sawyer.
Revenue from cemetery fees remained well below
projections in 2025, with only $250 generated for
the year. However, in the second quarter of 2026, a
several services were provided totaling $2,141,
bringing year-to-date revenue to 342.6% of the
annual budget. While this percentage significantly
exceeds the 50% quarterly benchmark, it is
important to note that the total dollar amount
remains insignificant to the General Fund’s overall
health.

Page 8

General Fund Revenue Analysis (Continued)
Revenue

Developer Funding Agreement

Percentage

26.9%

Comparison to Budget 50%
As this is a cost-recovery revenue stream, the
realized amount remains directly contingent upon
the volume of eligible expenditures incurred
throughout the year. Currently, the earnings for
this revenue stream is significantly, beneath the
50% benchmark.

General Fund Operating Expenditures
At the close of the second quarter, General Fund operating expenditures totaled $5,260,257, representing
47.5% of the annual budget. Consistent with previous years, several annual obligations, such as insurance
premiums and software subscriptions, are paid in full during the first quarter. Under the City’s cash-basis
accounting system, these costs are expensed at the point of payment rather than being amortized over the
fiscal year. Consequently, while the full cost of 2026 insurance was recognized in January, the operational
benefits extend throughout the year. This front-loading of expenses results in an initial spending spike in
January, followed by a projected reduction in monthly expenditures for the remainder of the year.

General Fund Performance Summary
Overall, the General Fund concluded 2025 in a strong position, with total operating revenues significantly
exceeding operating expenditures. For the second quarter of 2026, the General Fund continues to have a
strong operating position, breaking even in the second quarter and developing a surplus of $101,187. The
expectation is that throughout the remainder of the year, the pace of revenues will remain similar to what
they are now, and expenditures will decrease as there is only one scheduled transfer to another fund.

Operational Fund Summaries: Special Revenue and Enterprise Funds
The following sections provide a detailed analysis of the City’s primary operational funds outside of the
General Fund, including the Street Special Revenue Fund and the Water, Sewer, and Stormwater
Enterprise Funds.

Page 9

These funds are managed as self-sustaining operations, apart from the Street Fund, relying on user fees,
utility charges, and dedicated transfers to maintain critical infrastructure. While most funds remain stable,
the Stormwater Fund continues to require close monitoring due to ongoing structural challenges. It may
need a cash injection via a General Fund loan to sustain operations and infrastructure maintenance.
However, this loan will address temporary cash-flow hurdles rather than underlying structural deficits.
Consequently, the primary fiscal goal for the Stormwater Fund this year is to enhance stability by
reducing operating expenses and eliminating discretionary transfers out of the fund, as was done this year.

Street Fund Performance
Street Fund revenues for 2025 totaled $881,984, reaching 99.9% of the annual budget. This performance
was significantly bolstered by a $200,000 budget amendment transferred from the General Fund. Building
on this momentum, the Street Fund has realized 55% of projected operating revenues in the second
quarter of 2026. Notably, this fund is currently operating at a deficit, this deficit will reduce once transfers
from the Transportation Benefit District and REET II occur at the end of the year.
The fund maintains a diversified revenue structure, utilizing General Fund transfers, REET II resources,
and Transportation Benefit District (TBD) fees. On the expenditure side, the fund demonstrates
disciplined fiscal management, ending the quarter at 47% of the total appropriation. This favorable
position is particularly noteworthy as several large, non-recurring annual expenses have already been
recognized.

Water Fund Performance
The Water Fund concluded 2025 in a strong fiscal position, with total revenues of $2,575,409, exceeding
the annual budget by 5% and yielding a $531,016 surplus. Maintaining this momentum, the fund achieved
a net surplus of $253,958 in the second quarter of 2026. While operating revenues stand at 38% of the
annual budget, operating expenditures remain well-managed at 40%. Due to the seasonality of water
revenues, it is likely that the operational revenues, particularly irrigation, will continue to increase in the
third quarter.

Sewer Fund Performance
The Sewer Fund concluded 2025 with a deficit of $90,132, which was notably favorable as it represented
approximately half of the projected budgetary deficit. For 2026, the fund is positioned for further
recovery, with a budgeted year-end surplus of $10,753. At the close of the first quarter, the fund broke
even and now has a minor surplus of $78,149. If conditions remain the same, the Sewer Fund will end the
year with a modest surplus.

Page 10

Stormwater Fund Performance
The Stormwater Fund concluded 2025 with operating revenues of $837,614, or 88.2% of the annual
budget. This variance primarily stems from a $139,409 culvert grant that was reallocated to the Street
Fund due to a change in project scope. This shift negatively impacted on the fund’s overall stability,
resulting in a $81,968 deficit for the year.
Entering 2026, the fund continues to manage structural cash-flow challenges, evidenced by the first
quarter ending cash and investment balance of -$23,614. This liquidity issue is inherent to the fund’s
revenue cycle: while operating expenditures are incurred daily, revenues are remitted by King County
only twice per year, following the property tax distribution schedule. Consequently, the fund must bridge
daily operational costs until these semi-annual cash infusions occur. While the fund is showing
improvement over the prior year, achieving long-term fiscal stability remains a primary objective and
unlikely due to rising costs and stagnant revenues. Fortunately, this fund did end with a surplus of $97,
553 for the first half of the year. The expectation is that this surplus will dwindle for the duration of the
year, then receive a boost with the second receipt in November and then decline again and potentially
reaching a deficit before the next cash infusion.

Summary of Cash and Investment Balances - 2020 through June 30, 2026
The Cash and Investment Balance Report serves as a modified balance sheet tailored to the City’s cashbasis accounting. As of June 30, 2026, the City maintained a robust total cash and investment balance of
$22,445,224.
Since the close of fiscal year 2025, the City’s total cash position has increased by $1,199,674. This
growth occurred across several funds, including the General Fund, Fire Impact Fees, Transportation
Benefit District, REET I, and the Water Operating Fund. Conversely, the Water Reserve and Capital Fund
saw a significant decrease in valuation. Overall, the City has strengthened its cash position through strong
revenues and disciplined spending.

Fund Balance Classifications Summary
To ensure the City’s financial reporting aligns with the Washington State Auditor’s Office (SAO) BARS
Manual and GASB Statement No. 54, the following definitions categorize cash and investment balances
based on the "hierarchy of constraint." These classifications provide the Council and the public with a
transparent view of the City's $21.24 million (2025) total treasury, distinguishing between legally
restricted assets and funds available for discretionary use. The specific allocations for each category are
detailed in the table below, with further granular data available in the dedicated Fund Balance
Classifications section of the Black Diamond Investment Report.

Page 11

Ending Cash and Investment Balances according to Classification
(as of December 31, 2025)
Total for All Funds
Non-spendable

$0

Restricted

$4,844,139

Committed

$945,000

Assigned

$6,311,221

Unassigned

$9,145,190

Total Ending Cash and Investments

$21,245,550

Black Diamond Investment Portfolio Summary
The City’s investment portfolio yielded strong results in 2025, generating $801,237.53 in total interest
income. While initial market forecasts suggested a reduction in interest rates, persistent macroeconomic
factors, including stubborn inflation, have shifted expectations. It is now anticipated that rates will remain
near current levels throughout the remainder of 2026. In the first half of 2026, the City realized $377,576
in interest earnings.
As of June 30, the portfolio remains strategically balanced: 54% is maintained in the highly liquid Local
Government Investment Pool (LGIP), and 32% is allocated to longer-term investments. This "laddered"
approach ensures sufficient liquidity for daily operational needs while capturing higher yields on stable
reserves. Overall, the City maintains a stable and positive financial position.
If you have any questions about this report, please contact Xavier Mason, Finance Director, at
[email protected].

Xavier Mason
Finance Director
City of Black Diamond

Page 12

2026 General Fund 2nd Quarter Finance Report
1

Revenues

2

Property Taxes
Sales Taxes
Utility & Gambling Taxes
Cable Franchise Fees
Business Licenses
Land Use and Permitting Fees
Liquor Tax & Profits
Investments, Recycle Grants, and Miscellaneous Revenues
Parks Revenue
Cemetery Fees & Charges
Police Department Revenue (Grants, Traffic School, etc.)
Court Fines, Fees and Therapeutic Court Grant

2nd Quarter Variance from
2026 Actuals
Budget

% Collected

2025 Actual

2026 Budget

3,201,536
1,549,628
1,326,893
73,797
52,220
3,108,400
100,416
413,355
75,752
250
581,333
222,178

3,321,799
1,551,500
1,325,586
80,000
54,000
1,672,800
110,000
297,500
71,000
625
671,031
425,150

1,873,239
915,447
781,176
34,729
28,325
675,500
50,932
210,142
42,900
2,141
325,831
105,440

(1,448,560)
(636,053)
(544,410)
(45,271)
(25,675)
(997,300)
(59,068)
(87,358)
(28,100)
1,516
(345,200)
(319,710)

56.4%
59.0%
58.9%
43.4%
52.5%
40.4%
46.3%
70.6%
60.4%
342.6%
48.6%
24.8%

Subtotal Operating Revenue
16 Funding Agreement-MDRT

10,705,758
1,161,205

9,580,991
1,218,985

5,045,803
588,289

(4,535,188)
(630,696)

52.7%
48.3%

Total Operating Revenue

11,866,963

10,799,976

5,634,092

(5,165,884)

52.2%

6,750
1,201,979

1,855,000

5,725
534,010

5,725
(1,320,990)

N/A
28.8%

3
4
5
6
7
8
9
10
11
12
13
14
17

AWC Insurance and Flex Deposit
20 Developer Reimb-MDRT Consultants
19
21

Total Revenue

13,075,692

12,654,976

6,173,826

(6,481,150)

48.8%

22

Beginning Cash & Investment Balance

7,659,424

8,686,137

9,171,113

484,976

105.6%

23

Total General Fund Sources

20,735,116

21,341,113

15,344,940

(5,996,173)

71.9%

2nd Quarter Variance from
2026 Actuals
Budget

% Expended

24

Expenditures

25

2025 Actual

2026 Budget

Legislative-Council

17,546

22,521

10,935

11,586

48.6%

26

Mayoral Department

14,979

16,272

7,491

8,782

46.0%

27

City Administrator

109,689

272,282

100,734

171,548

37.0%

28

General Government Services ( Clerk/Fin/IT/HR/Cnt Svc)

755,964

827,930

544,344

283,586

65.7%

29

Legal Services - Includes Pros. Atty & Public Def.

450,689

293,000

166,072

126,928

56.7%

30

Municipal Court

575,056

835,577

306,809

528,768

36.7%

31

Police Department

3,478,663

3,985,015

1,812,215

2,172,800

45.5%

32

Fire Department

1,301,326

1,396,586

709,624

686,962

50.8%

33

Recycle/Animal Cont/Air Qual/Mntl Hlth

77,799

158,900

14,543

144,357

9.2%

34

Master Develpoment Review Team

1,059,775

1,218,985

574,990

643,995

47.2%

35

Community Development

1,466,635

1,609,327

691,488

917,840

43.0%

302,516
62,803

364,077
69,675

262,624
58,390

101,454
11,285

72.1%
83.8%

9,673,441

11,070,148

5,260,257

5,809,891

47.5%

Parks Department
37 Cemetery
36

38

Total Operating Expenditures

39

Transfer to Street Fund

350,000

-

-

-

N/A

40

Transfer to Future Campus

350,000

147,393

-

(147,393)

0.0%

41

Interfund Loan

-

-

327,641

327,641

0.0%

42

AWC Insurance and Flex Deposit
43 Developer MDRT-Consultants

6,493
1,184,364

1,855,000

1,810
482,931

1,810
(1,372,069)

N/A
26.0%

44

Total Expenditures
45 Total Surplus/(Deficit)

11,564,298
1,511,395

13,072,541
(417,565)

6,072,639
101,187

(6,999,902)
518,752

46.5%
124.2%

Ending Cash and Investment at 35% of Budgeted Expenditures
47 Ending Cash and Investment Developer Funds
48 Ending Restricted Police Buy Funds
49 Ending Unreserved Funds for Future Growth Related costs

3,385,704
63,000
25,923
4,184,797

3,874,552
63,000
25,923
3,832,015

1,841,090
63,000
25,923
6,580,137

2,033,462
(0.36)
2,748,122

47.5%
100.0%
100.0%
171.7%

46

50

Total Ending Cash and Investments

7,659,424

7,795,490

8,510,150

714,660

109.2%

51

Total General Fund Uses

20,735,116

21,341,113

15,344,940

5,996,173

71.9%

Page 13

2026 Street Fund 2nd Quarter Finance Report
2nd Quarter Variance from
2026 Actual
Budget

1

REVENUES

2025 Actual

2

Street Gas Tax

122,391

120,000

67,210

(52,790)

56.0%

3

Right of Way Permits

13,185

14,000

6,720

(7,281)

48.0%

4

Other Revenue

37,666

32,100

17,262

14,838

53.8%

5

Total Operating Revenue

173,242

166,100

91,192

(45,232)

55%

6

Interest

10,528

8,000

6,501

1,499

81.3%

7

Transfer in REET II

100,000

100,000

-

100,000

0.0%

8

Transfer in from General Fund

350,000

-

-

-

N/A

9

Transfer in TBD

248,214

280,000

-

280,000

0.0%

10

Property Rent

-

-

203

203

N/A

11

Total Other Revenue

708,743

388,000

6,704

381,499

2%

12

Total Revenue

881,984

554,100

97,896

336,267

18%

13

Beginning Cash and Investments

405,754

384,350

546,173

161,823

142.1%

14

Total Street Fund Sources

1,287,738

938,450

644,069

498,090

68.6%

15

EXPENDITURES

2025 Actual

2026 Budget

2nd Quarter Variance from
2026 Actual
Budget

% Expended

16

Total Salaries and Benefits

428,394

430,274

224,544

205,730

52.2%

17

Office and Operating Supplies

18,333

29,600

13,300

16,300

44.9%

18

Professional Services

204,639

231,307

85,471

145,836

37.0%

19

Total Operating Expenses

651,366

691,181

323,315

367,867

47%

20

Building and Property Lease

18,511

15,813

6,534

9,279

41.3%

21

Copier Lease

1,098

1,043

368

674

35.3%

22

Water Cooler Lease

42

-

149

(149)

N/A

23

Land Acquisition

-

-

103,850

(103,850)

N/A

24

Transfer to Equipment Replacement

10,000

-

-

-

0.0%

25

Total Expenditures

681,017

708,037

434,216

273,821

61%

26

Total Surplus/(Deficit)

200,967

(153,937)

(336,320)

(182,383)

-218%

27

3 Months Operating Cash Balance

162,841

172,795

161,657

(11,138)

93.6%

28

Unreserved Cash and Investments

443,880

57,617

48,196

(9,422)

-19.5%

29

Total Ending Cash and Inv

606,721

230,413

209,853

(20,560)

91%

30

Total Street Fund Uses

1,287,738

938,450

644,069

(294,381)

68.6%

2026 Budget

% Collected

Page 14

2026 Water Fund 2nd Quarter Finance Report
Variance from
Budget

% Collected

1

REVENUES

2025 Actual

2026 Budget

2nd Quarter 2026
Actuals

2

Water Charges

1,730,224

2,168,887

798,951

(1,369,936)

36.8%

3

Irrigation Sales

314,562

240,000

37,121

(202,879)

15.5%

4

Hydrant Sales

21,125

62,000

9,774

(52,226)

15.8%

5

Meter Purchases, Setting Fees, Inspections, and Misc.

450,591

360,480

102,333

(258,147)

28.4%

6

Total Operating Revenue

2,516,502

2,831,367

948,179

(1,883,187)

33%

7

Interest

41,589

19,000

26,053

7,053

137.1%

Miscelllaneous Non-Operating Revenue

17,318

10,000

16,385

6,385

163.9%

-

40,000

-

(40,000)

0.0%

-

-

115,552

115,552

N/A

58,907

69,000

157,990

88,990

229%

2,575,409

2,900,367

1,106,169

(1,794,198)

38%

951,250

1,592,753

1,482,266

(110,487)

93.1%

3,526,659

4,493,120

2,588,435

(1,904,685)

58%

2025 Actual

2026 Budget

2nd Quarter
2026 Actuals

Variance from
Budget

% Expended

560,146
510,443
548,402
1,618,991
20,402
-

636,472

1,804,001
16,856
-

287,891
146,024
293,677
727,593
7,915
-

348,581
201,256
526,571
1,076,408
8,941
-

45.2%
42.0%
35.8%
40%
47.0%
N/A

40,000

-

40,000

0.0%

(1,152)
835,000

0.0%
0.0%

767,237
1,843,646
49,448
(87,204)
(133,526)
(220,730)
(2,064,376)

13.97%
32%
124%
80.7%
90.1%
88%
54%

8

Permitting-Deposits for consultants
General Fund Loan

9

Total Other Revenue

10

Total Revenue

11

Beg Cash and Investment Unreserved

12

Total Water Fund Sources

13
14
15
16
18

EXPENDITURES
Total Salaries and Benefits
Total Supplies
Total Services and Charges
Total Operating Expenditures

19

Building & Equipment Leases
Debt Service - Water P & I

20

Consultant and Permitting Expenses

21

Hydrant Meter Deposit Refunds
Transfers Out - Equipment/Capital Res.
Land Acquisition
Subtotal Other Expenditures
Total Expenditures
Total Surplus/(Deficit)

17

22
23
24
25
26
27
28
29
30

3 Month Operating Cash Balance
Unreserved Cash and Investments
Total Ending Cash and Investments
Total Water Fund Uses

405,000
425,402
2,044,393
531,016
404,748
1,077,518
1,482,266
3,526,659

347,280
820,249

835,000
891,856
2,695,857
204,510
451,000
1,346,263

1,797,263
4,493,120

1,152
115,552
124,619
852,211
253,958
363,796
1,212,737
1,576,533
2,428,744

Page 15

2026 Sewer Fund 2nd Quarter Finance Report
2026 Budget

2026 2nd
Quarter Actual

Variance from
Budget % Collected

1

REVENUE

2025 Actual

2

Sewer User Charges-K.C Metro

1,766,642

1,962,000

947,403

(1,014,597)

48.3%

3

Sewer User Charges-City

792,573

872,000

409,709

(462,291)

47.0%

4

Permits & Miscellaneous Revenue

79,531

62,238

20,388

(41,850)

32.8%

5

Total Operating Revenue

2,638,746

2,896,238

1,377,500

(1,518,738)

47.6%

6

Interest

20,998

16,000

8,064

(7,937)

50.4%

7

Property Rent

-

-

219

219

N/A

8

General Fund Loan

-

-

111,895

111,895

N/A

9

Total Revenue

10

Beginning Cash and Investments

11

2,659,744

2,912,238

1,497,678

(1,414,560)

51.4%

602,074

531,730

511,943

(19,787)

96.3%

Total Sewer Fund Sources

3,261,818

3,443,968

2,009,620

(1,434,347)

58.4%

12

EXPENDITURES

2025 Actual

2026 Budget

2026 2nd
Quarter Actual

13

Total Salaries and Benefits

499,590

534,521

260,324

274,197

48.7%

14

Total Supplies

27,356

17,100

13,240

3,860

77.4%

15

Total Services and Charges

334,891

371,008

167,399

203,609

45.1%

16

King County Metro Sewer Charges

1,698,221

1,962,000

859,633

1,102,367

43.8%

17

Total Operating Expenditures

2,560,057

2,884,629

1,300,596

1,584,033

45%

18

Leases

19,818

16,856

7,038

9,818

41.8%

19

Transfers

170,000

-

-

-

N/A

20

PW Land Acquisition

-

-

111,895

(111,895)

N/A

18

Subtotal Other Expenditures

189,818

16,856

118,933

(102,077)

706%

19

Grand Total Expenditures

2,749,875

2,901,485

1,419,529

1,481,956

49%

20

Total Surplus/(Deficit)

(90,132)

10,753

78,149

67,396

727%

21

3 Months Operating Cash Balance

640,014

721,157

650,298

(70,859)

90.2%

22

Unreserved Cash and Investments

(128,072)

(178,675)

(60,206)

118,469

33.7%

23

Total Ending Cash & Investments

511,943

542,483

590,092

47,609

108.8%

24

Total Sewer Fund Uses

3,261,818

3,443,968

2,009,620

(1,434,347)

58.4%

Variance from
Budget % Collected

Page 16

2026 Stormwater Fund 2nd Quarter Finance Report
2nd Quarter Variance from
2026 Actuals
Budget

1

REVENUE

2

Stormwater Charges

792,161

978,043

439,749

538,294

45.0%

3

Stormwater Inspection and Review Fees

45,452

33,931

16,180

17,751

47.7%

4

Total Operating Revenue

837,614

1,011,974

455,929

556,045

45.1%

5

Other Miscellaneous Revenue

2025 Actual

2026 Budget

% Collected

252

-

726

726

N/A

Interest Earned

4,965

3,750

501

3,249

13.4%

6

Grants

83,164

120,000

84,515

35,485

70.4%

7

General Fund Loan

-

-

100,194

100,194

N/A

8

Total Other Revenue

88,380

123,750

185,935

62,185

150.3%

9

Total Revenue

925,994

1,135,724

641,865

493,859

56.5%

10

Beginning Cash and Investments

168,936

265,933

86,950

178,983

32.7%

11

Total Stormwater Fund Sources

1,094,930

1,401,657

728,814

672,842

52.0%

2nd Quarter Variance from
2026 Actuals
Budget % Expended

12

EXPENDITURES

2025 Actual

2026 Budget

13

Total Salaries and Benefits

525,386

567,447

271,932

295,515

47.9%

14

Office and Operating Supplies

21,177

11,280

8,667

2,613

76.8%

15

Total Services and Charges

348,624

397,485

153,469

244,016

38.6%

16

Total Operating Expenditures

895,187

976,212

434,068

542,144

44.5%

17

Leases

19,630

16,856

10,050

6,806

59.6%

18

Land Purchase

-

-

100,194

(100,194)

N/A

22

Transfers

93,164

62,000

-

(62,000)

0.0%

23

Total Other Expenditures

112,794

78,856

110,244

62,000

139.8%

24

Total Expenditures

1,007,981

1,055,068

544,312

510,757

51.6%

25

Total Surplus/(Deficit)

(81,987)

80,656

97,553

16,897

120.9%

26

3-Month Operating Cash Balance

223,797

244,053

217,034

27,019

88.9%

27

Unreserved Cash and Investments

(136,847)

102,536

(32,531)

(135,067)

N/A

28

Total Ending Cash and Investments

86,950

346,589

184,503

(108,048)

53.2%

29

Total Stormwater Fund Uses

1,094,930

1,401,657

728,814

672,842

52.0%

Page 17

Cash & Investment Balance Report 2nd Quarter 2026
GOVERNMENTAL FUNDS
General Fund Ending Fund Balance
Capital and Special Revenue Funds
Street Fund
Fire Impact Fees
TBD-Car Tabs
Traffic Mitigation/Impact Fees
Transferrable Development Rights
ARPA Recovery Funds
School Impact Fee Fund
REET I & Gen Govt Cap Proj
REET II, PW-Streets, and Retainage
Police Equipment Replacement
Other Government, Street & Capt.

2020
6,022,285

2021
8,346,574

2022
7,506,059

2023
7,880,874

2024
7,659,424

2025
9,171,113

2026
9,272,300

188,158
1,135,891
33,607
170,342
0
0
0
1,856,948
915,195
168,868
4,469,009

292,205
1,623,301
53,427
216,654
0
568,288
0
1,606,887
1,275,958
115,771
5,752,491

325,924
1,239,869
78,497
288,438
0
151,212
0
4,246,747
1,034,878
103,780
7,469,345

450,146
1,142,030
60,907
118,986
0
0
0
4,586,993
1,334,676
76,793
7,770,531

405,754
1,302,154
0
77,287
945,000
0
0
4,858,663
1,525,454
109,237
9,223,550

546,173
1,415,578
0
192,238
945,000
0
0
3,440,026
1,402,455
196,151
8,137,620

209,991
1,644,793
134,414
181,891
945,000
0
0
3,766,976
1,845,100
201,703
8,929,868

Total Government Ending C&I
UTILITY FUNDS
Water Operating
Water/WSFFA
Water Reserve & Capital
Sewer Operating
Sewer Reserve & Capital
Stormwater Operating
Stormwater Reserves & Capital
PW Equipment Replacement
Total Util Funds Ending C&I

10,491,294

14,099,065

14,975,404

15,651,405

16,882,974

17,308,733

18,202,168

660,141
1,240,281
602,226
419,155
272,463
344,919
39,730
136,577
3,715,492

626,793
498,658
521,335
494,625
325,312
428,667
12,878
183,239
3,091,507

704,394
257,340
2,251,540
627,875
372,446
414,572
82,913
72,304
4,783,383

951,250
178,152
1,202,184
602,074
367,819
168,936
300,857
119,393
3,890,665

1,482,266
79,977
989,247
511,943
408,394
86,950
265,972
81,895
3,906,643

1,736,224
178,079
760,351
590,092
401,262
184,503
270,555
79,888
4,200,954

Trust Funds-due to others*
Total Ending-Cash & Inv.**

4,322
14,211,108

8,215
17,198,787

2,475
19,761,262

1,010,250
212,868
1,169,849
678,789
391,799
488,320
231,314
133,340
4,316,529
16,132
16,132
19,984,067

8,003
20,781,642

30,174
21,245,550

42,102
22,445,224

Ending Fund Balances
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2018

2019

2020
General Fund

2021

2022

2023

Other Govt Street & Capt. Funds

2024

2025

2026

Total Utility Funds EFB

City Wide -Balance Sheet as of June 30, 2026
2020

2021

2022

2023

2024

2025

2026

Cash & Investments
14,211,108
Accounts Receivable (2019 excluded Permit-Trax)
776,719
Fixed Assets & Depreciation (cash cities do not record this) $0
Insured Assets (excl Str & Uti land & infra)
Vehicles
916,827
Off Road- Mowers, Boats & trailers
396,755
Buildings
12,526,300

17,198,787
276,103
$0

19,761,262
269,123
$0

19,984,067
301,237
$0

20,781,642
301,237
$0

21,245,550
160,655
$0

22,445,224
64,790
$0

1,973,498
416,093
12,608,615
$32,473,096

2,001,289
574,694
12,608,615
$35,214,983

2,051,793
881,889
12,608,615
$35,827,601

2,074,507
1,030,483
12,608,615
$36,796,484

2,388,174
666,602
24,890,487
$49,351,468

2,666,546
666,602
24,890,487
$50,733,650

($306,739)
($306,739)
$0
$0
$1,817,930
$2,124,669
($284,235)
$0
$1,511,191
$1,817,930
($284,235)
$0
$ 36,726,174 $ 37,645,531 $ 36,512,249 $ 49,351,468

$0
$00
$0
$ 50,733,650

Total Assets

$28,827,709

Outstanding Accounts Payable (bills paid when due)
Debt
Water Public Works Trust Fund Loan-short
($306,739)
($306,739)
Water Public Works Trust Fund Loan-long term payable
$1,204,452
Long Term $1,511,191

$897,713
$1,204,452
Black Diamond Fund Position (equity or retained
$ 29,725,422
earnings)
$ 33,677,548

Total Liabilities

Page 18

Black Diamond Quarterly Investment Report

City of Black Diamond Investment Report
2nd Quarter of 2026

Page 19

Black Diamond Quarterly Investment Report

Black Diamond Investment Report: 2nd Quarter of 2026

This quarterly investment report details the City’s cash position and investment activity for the quarter
just ended. Each investment follows the City’s investment policy, state statutes, and the Black Diamond
Municipal Code. The City’s investment policy was approved by Mayor Benson and then reviewed by City
Council on February 1st, 2024. Subsequently, in April 2026 the Washington Public Treasurers’
Association awarded the City of Black Diamond the Certification of Excellence Investment Policy award.
Total Cash and Investments at the end of the second quarter of 2026, the City had a total of $23,262,942:
$3,222,942 in depository banks, $12,539,320 in the State LGIP, and $7,500,000 (par value) invested in
long-term securities (this amount varies from the City’s financial statements due primarily to outstanding
checks and the usage of Par value/Face Value rather than market value for the long-termed investments).
The City’s Investment Portfolio
The City’s investment activities are governed by State regulations and the City of Black Diamond’s
Investment Policy.
Calls or Maturities: During the last quarter, a security from Federal Farm bank matured on June 23, 2026.
Purchases: The following are the City’s current list of investments:
Issue

Face Value

Issuer

Date of Maturity Yield to
Maturity

001

$1,000,000

Federal Farm Credit Bank

02/13/2029

4.16%

002

$1,000,000

Federal Home Loan Bank

06/09/2028

4.14%

003

$1,000,000

U.S. Treasury

01/31/2028

4.20%

004

$1,000,000

U.S Treasury

06/30/2027

4.23%

005

$1,000,000

Federal Farm Credit Bank

03/21/2029

4.165%

006

$500,000

U.S. Treasury

01/15/2027

4.23%

007

$1,000,000

Federal Home Loan Mortgage Corporation

12/11/2030

4.01%

008

$1,000,000

U.S. Treasury

05/31/2031

4.10%

Page 20

Black Diamond Quarterly Investment Report
Portfolio and Benchmark Yield and Maturity (as of June 30 , 2026):
th

Avg. weighted yield of

06-2026

03-2026

12-2025

09-2025

12-2025

4.15%

4.28%

4.28%

4.28%

4.24%

3.69%

4.4052%

4.38%

4.29%

3.88%

2.47 Years

2.73 Years

2.48 Years

2.235 Years

2.35 Years

34 Days

15 Days

27 Days

39 Days

43 Days

City investments,
excluding LGIP:
LGIP State Pool 30-day
yield Gross Earnings:
Weighted average
maturity of City
investments,
excluding LGIP:
Weighted average
maturity of LGIP State
Pool
30-day yield:

When securities are chosen for purchase, there are several factors taken into consideration before a
decision is reached. Some of those factors include cash flows from City operations, debt obligations,
liquid and maturing securities.
The City’s Investment Portfolio consists of three general tiers which coincide with the primary
considerations of prudent investing:
1. The safety portion of the Portfolio consists of funds invested in the Local Government Investment
Pool (LGIP, or State Pool) managed by the Washington State Treasurer. Funds from this
investment pool can be deposited or withdrawn generally within 48 hours. The liquidity that this
investment vehicle provides has significant cash flow advantages for the City’s operations. This
allows us to adjust to unanticipated fluctuations in revenues and expenditures.
2. The liquidity portion of the Portfolio consist of demand deposit (checking) accounts at banks,
Columbia Bank and U.S. Bank which are qualified public depositaries, that are protected above
the FDIC-insured balances through the actions of the Washington State Public Deposit
Protection Commission (PDPC).
3. The long-term security segment of the portfolio consists of an array of Agencies, Treasuries,

Page 21

Black Diamond Quarterly Investment Report
and/or authorized investments with staggered maturities of up to five years. Based on an analysis
of historical cash reserves and budgetary planning, this segment will not be subject to seasonal
spending and will continue to be safely invested in the long term.
Economic Outlook
The federal funds rate is the interest rate for overnight loans set by the Federal Open Market Committee
(FOMC). Rates offered by Local Government Investment Pools (i.e., LGIP) and money market funds
correlate closely with this rate, primarily because the average maturity for LGIP investments is typically
short, often around 15 days. However, as of June 30, 2026, the average maturity reduced to 34 days. This
change reflects the State Treasurer’s Office's diligent strategy of increasing the average length of their
short-term investments to maximize returns. The graph below illustrates the upper bound limit of the
federal funds rate over the last 12 years.

Source: https://fred.stlouisfed.org/series/DFEDTARU
As illustrated in the graph, the current federal funds rate remains high compared to recent historical norms.
This elevated level reflects the Federal Reserve’s ongoing dual effort to curb inflation and address
emerging weaknesses in the labor market. Historically, the Fed reduces the federal funds rate as inflation
cools, a trend that began in late 2025.

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Black Diamond Quarterly Investment Report
The Federal Open Market Committee (FOMC) typically meets eight times per year to determine interest
rate levels. As shown in the table below, the Committee implemented four consecutive 0.25% cuts during
the second half of 2025 (specifically at the July, September, October, and December meetings). These
actions lowered the target range from 4.0%–4.25% to the current 3.5%–3.75%. Since December 2025, the
rate has remained unchanged as the Fed evaluates shifting global and domestic market activity.

Source: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
The nearly unanimous consensus among FOMC members regarding the U.S. economic outlook
underscores a unified approach to the Fed's dual mandate of price stability and maximum employment.
Current projections reversed course and now suggest that rather than rate cuts, rates will likely remain
the same for the duration of 2026. As illustrated in the Target Rate Table below, the Committee
anticipates further easing toward a long-run terminal rate of 3.375% by 2028.

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Black Diamond Quarterly Investment Report

Source: https://www.federalreserve.gov/monetarpolicy/fomcprojtabl20251210.htm
Current Rates.
As of June 30, 2026, the yield curve is no longer inverted, as it has been for over three years, it is now,
for the most part, back to the “normal” yield curve with a gentle slope going up and to the right where
the further out the year, the higher interest rates become. The normalization of the yield curve is driven
by a combination of short-term rate cuts by the Federal Reserve last year and the recent rise in longerterm interest rates due to a higher level of uncertainty in the markets. The shape of the yield curve could
strengthen its “normal” trajectory further if interest rates cool and the bond market begins to anticipate
further near-term cuts to the federal policy rate, though the Federal Reserve’s specific timeline remains
uncertain.
Despite these trends, recent geopolitical 'black swan' events introduce significant uncertainty. These
factors could keep rates elevated or even push them higher if inflation triggers widespread economic
concern. Consequently, yields from the LGIP may remain stable or increase in the coming months. As a
point of comparison, the City’s interest earnings have shifted from 5.44% in September 2023 to 3.69%
today. Had the LGIP not strategically extended its average investment maturity, months ago, returns
would be lower, at approximately 3.5%. Currently, long-term securities are yielding nearly 0.46% more
than the LGIP.

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Black Diamond Quarterly Investment Report

Source: https://www.treasury.gov/resource-center/data-chart-center/interestrates/pages/textview.aspx?data=yield

Strategy Notes. The City of Black Diamond’s investments are not typically actively traded, meaning that
there are no attempts to “buy low and sell high” or efforts to “time the market” are being made.
Investments are purchased with the intent of providing investment income are intended to be held to
maturity,relying on following a prudent course of action for income rather than predicting market
direction.

Black Diamond Investment Portfolio (as of June 30, 2026)

LGIP

$12,539,320

63%

Treasuries

$3,500,000

17%

Agencies

$4,000,000

20%

Totals

$20,039,320

100%

*note: percentages are rounded to the nearest whole number

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Black Diamond Quarterly Investment Report
Debt Activity
The City’s last debt payment took place in May 2024. The City of Black Diamond is completely debt free
to external issuers. However, the Enterprise Funds are indebted to the General Fund due to the acquisition
of land on Lawson Street. A comprehensive city-wide debt report is attached with current balances.
Interfund Borrowings and Investments
Borrowing between funds is temporary in nature, reviewed periodically by staff and is amended as
circumstances change.
Within the 2026 – 2031 Capital Improvement Plan (Reference: Page 74), designated a priority to purchase
the property located on 26202 Lawson Street for the purpose of enlarging Public Works physical footprint for
storage and operational usage. With the passage of Ordinance No. 26 – 1247 the Black Diamond City
Council authorized an interfund loan from the General Fund to the Public Works Department to facilitate the
acquisition of the property located at 26202 Lawson Street. This transaction utilized existing General Fund
reserves to facilitate a Capital Improvement Project. Per the terms of the ordinance, the General Fund will be
made whole through the receipt of principal and interest earnings payments over the course of a three-year
period. The interest rate of the interfund loan will be set as the yearly average gross earnings rate for each
year of payment, for the purposes of the repayment schedule below the interest rate is estimated to be 3.7%.
26202 Lawson Street Interfund Loan Debt Payment Schedule & Allocations
Interfund Loan Cost Allocation
Fund
General Fund
General Fund
Street Fund
Water Fund
Sewer Fund
Stormwater Fund

General Fund Payment
Total Amount of Loan

Department
Parks Department
Cemetery Department
Street Fund
Water Fund
Sewer Fund
Stormwater Fund
Total Costs

Allocation
11.6%
4.1%
20.3%
22.6%
21.9%
19.6%
100.0%

Cost
$61,205.43
$21,900.65
$107,334.32
$119,395.55
$115,639.64
$103,525.51
$529,001.09
$190,440.39
$338,560.70

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Black Diamond Quarterly Investment Report

The following table outlines the Interfund Loan Payment Schedule issued to the Public Works Department
for the Water, Sewer, and Stormwater Enterprise Funds. Notably, the Parks and Cemetery departments are
excluded from this schedule; as they operate within the General Fund, their allocated costs did not require an
interfund loan. Similarly, the Street Special Revenue Fund did not receive a loan, as its operations are already
heavily supplemented by General Fund transfers.

Interfund Loan Payment Schedule
Water Fund
Principle Payment
Remaining Principle
Interest Payment
Total Payment

Year 1
Year 2
Year 3
$39,798.52
39798.52
39798.51
$79,597.03 $39,798.51
$0.00
$4,417.64 $2,945.09 $1,472.54
$44,216.15 $42,743.61 $41,271.05

Total
Payment
$119,395.55
$8,835.27
$128,230.82

Total
Payment
$115,639.64

Sewer Fund
Principle Payment
Remaining Principle
Interest Payment
Total Payment

Year 1
Year 2
Year 3
$38,546.55 $38,546.55 $38,546.55
$77,093.09 $38,546.55
$0.00
$4,278.67 $2,852.44 $1,426.22
$42,825.21 $41,398.99 $39,972.77

Stormwater Fund
Principle Payment
Remaining Principle
Interest Payment
Total Payment

Year 1
Year 2
Year 3
$34,508.50 $34,508.50 $34,508.50
$69,017.01 $34,508.50
$0.00
$3,830.44 $2,553.63 $1,276.81
$38,338.95 $37,062.13 $35,785.32

Total
Payment
$103,525.51
$103,525.51
$7,660.89
$111,186.40

Year 1
$12,526.75

Total Profit
$25,053.49

General Fund Profit
*Estimate 3.7% interest

Year 2
$8,351.16

Year 3
$4,175.58

$8,557.33
$124,196.97

Prior to the current interfund loan that was made to acquire 26202 Lawson Street, the most recent one was
issued in 2017 for $160,000 to the Police Department (General Fund) from the Equipment Replacement
Fund (510). The General Fund repaid the Equipment Replacement Fund $160,000 in principle and $4,000
in interest at a 2.5% interest rate, totaling $164,000 in payments.

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Black Diamond Quarterly Investment Report

City of Black Diamond Distribution of Cash and Investments

Page 28

Black Diamond Quarterly Investment Report

Investment Portfolio – Inventory by Agency
Investment Portfolio - Inventory by Agency
Agency

Inv#

Face Value

Price

Coupon

Settle

Maturity

Callable

Federal Farm Credit Bank

001

$1,000,000

$999,462

4.16

2/21/2024

2/13/2029

No

Federal Home Loan Bank

002

$1,000,000

$971,840

4.14

2/21/2024

6/9/2028

No

United States Treasury

003

$1,000,000

$976,921

4.2

2/21/2024

1/31/2028

No

United States Treasury

004

$1,000,000

$974,347

4.23

2/21/2024

6/30/2027

No

Federal Farm Credit Bank
United States Treasury

005
006

$1,000,000
$500,000

$955,014
$506,376

4.165
4.23%

3/06/2024
4/18/2024

3/21/2029
1/15/2027

Yes
No

Federal Home Loan Mortgage
Corporation
United States Treasury

007

$1,000,000

$997,500

4.008%

12/11/2025

12/11/2030

Yes

008

$1,000,000

$1,003,672

4.1%

6/23/2026

05/31/2031

No

Page 29

Black Diamond Quarterly Investment Report

Black Diamond Investment Portfolio Earnings
Fund

2026

2025

2024

2023

2022

2021

2020

$190,587.28
$6,501.44
$26,184.98

$339,018.91
$10,528.28
$69,590.80

$300,917.64
$18,517.77
$65,119.85

$493,212.29
$13,281.65
$64,183.52

$181,420.21
$4,433.97
$31,727.35

$8,680.34
$142.43
$1,451.63

$26,701.59
$242.55
$7,345.30

$932.36

$2,416.15

$3,303.91

$4,447.15

$1,418.98

$66.09

$278.48

109
110
112
310
311
320

General Fund
City Street Fund
Fire Impact Mitigation Fee
Fund
Transportation Benefit District
Fund
Traffic Mitigation Fund
ARPA Recovery Federal Funds
Traffic Impact Fees
CIP Fund: General Government
REET 1 Fund
CIP Fund: Streets

$0.00
$0.00
$1,458.28
$49,756.27
$9,332.10
$17,379.85

$1.86
$0.00
$6,482.09
$139,734.84
$17,328.40
$40,151.06

$465.64
$0.00
$3,711.35
$204,740.31
$24,972.30
$53,276.94

$3,751.68
$7,451.79
$1,702.81
$97,137.04
$28,977.58
$16,998.50

$4,515.09
$4,968.60
$29.15
$0.00
$3,911.81
$0.00

$181.88
$333.36
$0.00
$0.00
$544.74
$0.00

$937.15
$0.00
$0.00
$0.00
$2,665.46
$0.00

321
401

REET 2 Fund
Water Fund

$8,442.85
$26,052.95

$6,414.74
$41,589.13

$16,384.89
$43,298.23

$24,239.44
$26,330.88

$12,979.40
$7,367.87

$726.74
$727.13

$2,919.73
$4,223.62

402
404

WSFFA Fund
Water Capital Fund

$1,240.60
$15,070.09

$6,134.72
$49,767.11

$10,346.55
$54,762.98

$11,164.14
$74,066.44

$3,698.01
$14,194.74

$1,126.18
$618.67

$1,420.71
$2,441.84

407
408

Sewer Fund
Sewer Capital Projects

$8,063.50
$7,038.11

$20,997.98
$15,274.86

$30,165.77
$18,119.16

$28,365.94
$15,953.45

$8,320.99
$4,768.75

$427.16
$240.10

$1,719.56
$1,348.21

410
412

Stormwater Fund
Stormwater Capital Projects

$501.25
$4,583.65

$4,964.63
$11,225.23

$17,280.99
$7,735.90

$16,818.44
$1,256.94

$5,475.08
$0.00

$388.80
$0.00

$1,563.67
$0.00

510

Internal Service Fund

$4,451.21
$377,576.77

$19,434.70
$801,237.53

$11,703.41
$884,823.59

$8,916.52
$938,256.20

$2,883.54
$292,113.54

$293.40
$15,948.65

$1,644.92
$55,452.79

001
101
107
108

Grand Total

Page 30

Black Diamond Quarterly Investment Report

Black Diamond Investment Portfolio Yearly Earnings

Page 31

Black Diamond Quarterly Investment Report

Long Term Debt Schedule
Long Term Debt Schedule
Date Issued

Maturity
2005

May 2024

Description
Water Debt Service

Note

Amount of Issue

Current Balance
$5,447,820

$0

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Black Diamond Quarterly Investment Report

Restricted and Committed Portion of Ending Cash and Investments
To ensure the City’s financial statements align with the Washington State Auditor’s Office (SAO)
BARS Manual and GASB Statement No. 54, the following definitions categorize the City's cash and
investment balances based on the "hierarchy of constraint." These classifications inform the Council
and the public exactly how much of the City's funds are legally restricted, committed, assigned, or
unassigned.

Fund Balance Classifications & Definitions
The City of Black Diamond reports fund balances in five specific categories (Non-spendable,
Restricted, Committed, Assigned, and Unassigned). The following four are most relevant to our
current cash position:
1. Restricted Fund Balance
•

Definition: Resources that are subject to constraints imposed by external parties or legal
mandates.

•

Authority: Constraints are established by Washington State law (RCW), federal grant
agencies, or bond covenants.

•

City Context: This includes REET (I & II), Impact Fees, and the Street Fund (Gas Tax),
which are legally "locked" for specific capital or transportation purposes and cannot be
diverted to general operations.

2. Committed Fund Balance
•

Definition: Resources that can only be used for specific purposes pursuant to constraints
imposed by formal action of the City Council.

•

Authority: A commitment is the City’s most binding constraint and requires a formal
Ordinance or Resolution to establish or rescind.

•

City Context: This represents "self-imposed" restrictions, such as the Water System
Facility Funding Agreement (WSFFA) deposits or specific reserves the Council has
legislatively set aside for future equipment replacement.

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Black Diamond Quarterly Investment Report
3. Assigned Fund Balance
•

Definition: Resources that reflect the City’s intended use for a specific purpose but do not
meet the criteria of Restricted or Committed.

•

Authority: Unlike commitments, assigned funds do not require a formal Ordinance. The
Council or an authorized City official (e.g., Finance Director) may assign these funds
through the budget process or a simple Motion.

•

City Context: This includes "encumbrances" (funds set aside for open purchase orders) or
amounts designated in the budget for specific one-time projects that have not yet begun.

4. Unassigned Fund Balance
•

Definition: The residual classification for the General Fund representing all amounts not
contained in the other classifications.

•

Authority: These funds are fully discretionary and available for any valid municipal
purpose.

•

City Context: This is the City's "True Surplus." It serves as the primary safety net for
emergency expenditures or as a funding source for future Council priorities.
Summary of Funding Constraints

Classification

Source of Constraint

Level of Flexibility

Restricted

External (State Law/Grantors)

None (Legally Mandated)

City Council
Committed

(Ordinance/Resolution)

Low (Requires Legislation)

Management/City Council

Moderate (Budgetary

Assigned

Intent

Intent/Emergency Reserves)

Unassigned

Residual Fund Reserves

High (Full Discretion)

The following section provides a comprehensive breakdown of the City’s fund balance classifications
as of December 31, 2025. In accordance with GASB Statement No. 54 and the Washington State
BARS Manual, these balances are categorized as Restricted, Committed, Assigned, or Unassigned
based on the extent to which the City is bound to observe constraints on specific purposes.

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Black Diamond Quarterly Investment Report
Each entry details the respective fund, the year-end balance, and the specific legal or legislative
authority, that governs the use of these resources. This hierarchy ensures that the City remains in full
compliance with external mandates while maintaining the necessary transparency regarding the
Council’s discretionary fiscal capacity.1

Restricted Fund Balances2
On December 31, 2025, the City of Black Diamond had the following Restricted Fund Balances3:
1. General Fund
•

Fund: General Fund, 001

•

Amount: $25,923

•

Note: Police Drug Funds

•

Authority: RCW

2. Fire Impact Fee Fund
•

Fund: Fire Impact Fee Fund, 107

•

Amount: $1,415,578

•

Note: Fire Impact Fees collected by the City are legally restricted to fund specific capital
projects and improvements necessitated by new development.

•

Authority: RCW 82.02.050-110

3. General Fund Capital Improvement Plan Fund

1

These fund balance designations, are consistent with the following reports that are regularly reviewed by the

Black Diamond City Council: (1) Income Statements, (2) the Audited Annual Financial Report, (3) the Annual
Report; additionally, (4) they are thoroughly discussed during the annual budget process. This information has
been added to the Quarterly Investment Report to increase accessibility to this information.
2
3

Numbers are rounded to the nearest whole dollar.
The ending fund balances are unaudited as of June 2026.

Page 35

•

Black Diamond Quarterly Investment Report
Fund: General Fund Capital Improvement Plan Fund, 310

•

Amount: $1,829,467

•

Note: Real Estate Excise Tax (REET) revenues are subject to specific statutory
restrictions and are dedicated primarily to the City’s Capital Improvement Plan (CIP).
Unlike General Fund operating revenues, REET collections are restricted for "capital
projects and outlay," which includes the planning, construction, and improvement of
public infrastructure.

•

Authority: RCW 82.46.010

4. Street Fund Capital Improvement Plan Fund
•

Fund: Street Fund, Capital Improvement Plan Fund, 320

•

Amount: $1,270,785

•

Note: Real Estate Excise Tax (REET) revenues are subject to specific statutory
restrictions and are dedicated primarily to the City’s Capital Improvement Plan (CIP).
Unlike General Fund operating revenues, REET collections are restricted for "capital
projects and outlay," which includes the planning, construction, and improvement of
public infrastructure.

•

Authority: RCW 82.16.035

5. Water Utility Reserve and Capital Funds
•

Fund: Water Utility WSSFA Fund, 404

•

Amount $79,977

•

Note: A key component of the City’s capital strategy is the Water System Facility
Funding Agreement (WSFFA). Under this agreement, developers provide pre-funding
deposits specifically designated for the design and construction of major water
infrastructure projects.

•

Authority: Black Diamond City Council/Developer Agreement

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Black Diamond Quarterly Investment Report
6. King County Treasurer’s Trust
•

Fund: King County Treasurer’s Trust and Washington State Treasurer’s Trust, 633

•

Amount: $30,174

•

Note: The City of Black Diamond partners with the King County Treasurer for the
collection and distribution of certain assessments such as community development
related fees, pet licenses, and municipal court fees and other assessments.

•

Authority: RCW

7. Other Special Revenue Funds
Special Revenue Funds are established to collect and account for revenues that are legally
restricted or committed to specific purposes. These funds provide an added layer of
accountability and transparency, ensuring that taxpayer dollars are used solely for their
intended projects or services.
By segregating these revenues from the General Fund, the City can clearly demonstrate how
specific taxes, fees, grants, or other dedicated sources are being applied to meet public
objectives such as transportation improvements, parks development, and other projects.
•

The following are other funds that are generally restricted in usage but are not listed
because their balances were equal to zero at the end of December 2025. These are
generally special revenue funds, which represent a significant portion of the City’s
funds. These funds are often transferred to appropriate operational funds or transferred to
a third party such as the Enumclaw School District who would then use these funds for
the purpose intended generally by either King County or Washington State.
i.

•

Transportation Benefit District, 108
Note: Transportation Benefit District Revenues are dedicated exclusively to
maintaining and improving City streets. Funded activities include but are not
limited to: roadway striping and pavement maintenances; pothole repair and
should grading; maintenance of streetlights, signals, and sidewalks; vegetation
control and traffic signage; and general street safety enhancements. This
dedicated fund source plays a critical role in supplementing limited gas tax

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Black Diamond Quarterly Investment Report
revenues, helping the City preserve a safe and functional transportation
infrastructure.
ii.
•

American Rescue Plan Act (ARPA) Federal Recovery Funds, 110
Note: From 2021 through 2024, the City of Black Diamond utilized one-time
federal funding provided through the American Rescue Plan Act (ARPA) to
support community resilience and essential government services following the
COVID-19 pandemic. These funds were strictly governed by U.S. Treasury
Department regulations, which required all resources to be obligated and
expended within specific federal timelines.

As of the 2023 fiscal year-end, the City successfully deployed 100% of its allocated ARPA
recovery funds toward eligible infrastructure and public safety initiatives. While
this fund now carries a zero balance and is considered "fully sunset," it remains
in our financial reports for historical continuity and to document the City’s
compliance with federal close-out and audit requirements.
iii.
•

School Impact Fee Fund, 111
Note: In 2020, the Black Diamond City Council enacted legislation authorizing
the collection of school impact fees from new developments within the city
limits. These fees are collected on behalf of the four school districts serving our
community: Enumclaw, Kent, Tahoma, and Auburn.
In accordance with Washington State Auditor’s Office (SAO) requirements,
these resources are tracked within a dedicated Special Revenue Fund. This
ensures full transparency and distinct separation from City operating funds. The
City acts as a fiduciary agent for these districts; fees are collected during the
permitting process and subsequently transferred to the respective school districts
to fund growth-related infrastructure. These accounts function as "pass-through"
or "sweep" accounts and do not represent discretionary City revenue.

Committed Fund Balances
On December 31, 2025, the City of Black Diamond had the following Committed Fund Balances:
1. Transferable Development Rights Fund
•

Fund: Transferable Development Rights, 113

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Black Diamond Quarterly Investment Report
•

Amount: $945,000

•

Note: Funds received for the Sale of Development Right Certificates and can be used for
the purpose of developing, preserving, and enhancing public properties and open spaces.

•

Authority: Black Diamond City Council

2. Traffic Impact Fee Fund
•

Fund: Traffic Impact Fee Fund, 112

•

Amount: $192,236

•

Note: Traffic Impact Fees are collected by the City and are legally restricted to fund
specific capital improvements necessitated by new development.

3.

Assigned Fund Balances
On December 31, 2025, the City of Black Diamond had the following Assigned Fund Balances:
1. Street Fund
•

Fund: Street Fund, 101

•

Amount: $546,173

•

Note: The Street Fund’s reserves are all earned or transferred to the Street Fund. Though
the Street Fund does operate, it is still considered a special revenue fund; hence, its
entirety of its reserves is assigned towards Street Fund usage.

•

Authority: Black Diamond City Council/Administration

2. Traffic Mitigation
•

Fund: General Fund, 109

•

Amount: $2

•

Note: As a special revenue fund, the entirety of this fund’s balance is assigned towards
traffic mitigation purposes. With this fund being a “pass-through” of sorts, the funds that
this fund generates are assigned towards passing towards that transaction.

•

Authority: Black Diamond City Council/Administration

3. General Fund Capital Fund
•

Fund: General Fund Capital Fund, 310

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Black Diamond Quarterly Investment Report
•

Amount: $1,610,559

•

Note: These funds have been assigned, generally, during the approval of the annual
budget and Capital Improvement processes

•

Authority: Black Diamond City Council/Administration

4. Street Fund Capital Fund
•

Fund: Street Fund Capital Fund, 320

•

Amount: $103,297

•

Note: These funds have been assigned, generally, during the approval of the annual
budget and Capital Improvement processes

•

Authority: Black Diamond City Council/Administration

5. Public Works Retainage Fund
•

Fund: Public Works Retainage Fund, 322

•

Amount: $28,374

•

Note: The entirety of this amount has been assigned to Retainage Funds and tracked
within a separate special revenue fund in accordance with the Washington State
Auditor’s Office.

•

Authority: Black Diamond City Council/Administration

6. Water Reserve Operating, Reserve, and Capital Fund
•

Fund: Water Reserve and Capital Funds, 401-404

•

Amount: $2,471,513

•

Note: These funds have been assigned, generally, during the approval of the annual
budget and Capital Improvement processes

•

Authority: Black Diamond City Council/Administration

7. Sewer Operating, Reserve, and Capital Fund
•

Fund: Sewer Operational and Capital Funds, 407-408

•

Amount: $920,337

•

Note: These funds have been assigned, generally, during the approval of the annual
budget and Capital Improvement processes.

•

Authority: Black Diamond City Council/Administration

8. Stormwater Operating, Reserve, and Capital Fund

Page 40

•

Black Diamond Quarterly Investment Report
Fund: Stormwater Operational and Capital Funds, 410-412

•

Amount: $352,921

•

Note: These funds have been assigned, generally, during the approval of the annual
budget and Capital Improvement processes

•

Authority: Black Diamond City Council/Administration

9. General Fund and Public Works Equipment Funds
•

Fund: General Fund, 510

•

Amount: $278,045

•

Note: These funds have been assigned, generally, during the approval of the annual
budget and Capital Improvement processes

•

Authority: Black Diamond City Council/Administration

Unassigned Fund Balances
On December 31, 2025, the City of Black Diamond had the following Unassigned Fund Balances:
1. General Fund
•

Fund: General Fund, 001

•

Amount 1: $9,145,190

•

Note: The Developer Funds of $63,000 part of the agreement with the Master Developer,
these funds are categorized as unassigned. Additionally, the unassigned fund balance for
the General Fund includes the 35% emergency reserves.

•

Authority: Black Diamond City Council/Administration

Overview of Fund Balances
The City’s cash and investment balances are classified as restricted or committed when use is
constrained by external parties (such as grantors or state law) or by formal action of the City Council.
To ensure the most efficient use of City resources, Black Diamond follows a "restricted-first" spending
priority. When an expenditure is incurred for purposes for which both restricted and unrestricted
resources are available, the City’s policy is to apply restricted resources first. This approach ensures
that dedicated funds are utilized for their intended purposes while preserving the City’s flexible,
unrestricted reserves. The following table details each funds allocation towards restricted, committed,
assigned, and unassigned fund balances respectively.

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Black Diamond Quarterly Investment Report

Summary of Fund Balances Table, as of December 31, 2025
Fund

Restricted

Committed

Assigned

Unassigned

Total

Primary Usage

General Fund

$25,923

-

-

$9,145,190

$9,171,113

General Operations/Public
Safety

Street Fund

-

-

$546,173

-

$546,173

Transportation and Street
Maintenance related
expenditures

Fire Impact Fees

$1,415,578

-

-

-

$1,415,578

Growth-related expenditures

Transportation
Benefit District

-

-

-

-

-

Transportation and Street
Maintenance related
expenditures

Traffic
Mitigation Fees

-

-

$2

-

$2

Growth-related expenditures

School Impact
Fee Fund

-

-

-

-

-

Fiduciary agent on behalf of
school districts

Traffic Impact
Fees

-

$192,236

-

-

$192,236

Growth-related expenditures

-

$945,000

-

-

$945,000

Developing, preserving, and
enhancing public properties

-

-

-

-

$0

Eligible infrastructure and
public safety initiatives

Transferable
Development
Rights
American
Rescue Plan Act
(ARPA)

Page 42

Black Diamond Quarterly Investment Report

Summary of Fund Balances Table, as of December 31, 2025 (continued)

Fund

Restricted

Committed

Assigned

Unassigned

Total

Primary Usage

$1,829,467

-

$1,610,559

-

$3,440,026

Capital Improvement Projects

$1,270,785

-

$131,671

-

$1,402,455

Retainage and REET Fund
Revenues

-

-

$278,045

-

$278,045

Capital Outlay

Water Operating

-

-

$1,482,266

-

$1,482,266

General Operations

Waster/WSFFA

$79,977

-

-

-

$79,977

Developer pre-funded Water
Capital Projects

Water Reserve
and Capital

-

-

$989,247

-

$989,247

Capital Outlay and Capital
Projects

Sewer Operating

-

-

$511,943

-

$511,943

General Operations

Real Estate
Excise Tax &
General
Government
Capital Projects
Real Estate
Excise Tax II,
Streets, and
Retainage
Police and
Public Works
Equipment
Replacement

Page 43

Black Diamond Quarterly Investment Report

Summary of Fund Balances Table, as of December 31, 2025 (continued)

Fund

Restricted

Committed

Assigned

Unassigned

Total

Primary Usage

Sewer Reserve
and Capital

-

-

$408,394

-

$408,394

Capital Outlay and Capital
Projects

Stormwater
Operating

-

-

$86,950

-

$86,950

General Operations

-

-

$265,972

-

$265,972

Capital Outlay and Capital
Projects
Fiduciary agent on behalf of the
State of Washington and King
County

Stormwater
Reserves and
Capital
Trust Funds
(combined)

$30,174

-

-

-

$30,174

Total for All
Funds

$4,651,903

$1,137,236

$6,311,221

$9,145,190

$21,245,550

Page 44

Black Diamond 2026 2nd Quarter
Financial Report

Overview

The 2nd Quarter Financial Report summarizes the 2026 budgeted revenues
and expenditures compared to the actual revenues and expenditures received
through June 30, 2026.

Page 2

Overview, Continued

This report includes statements for the General Fund, Street Fund, Water
Fund, Sewer Fund, Stormwater Fund, balance sheet, and Black Diamond’s

investment portfolio.
Page 3

Agenda

1. Fund Performance Summaries, 2nd Quarter
2. Cash and Investment Balances Summary
3. Fund Balance Classification of Ending Cash and Investments
Page 4

nd
Fund Performance Summaries, 2

Quarter 2026

Page 5

General Fund Summary
The General Fund ended the 2nd Quarter of

General Fund Summary
7,000,000

5,000,000

2026 with the following:
3,000,000

Amount

% of Budget

Total Revenues

$6,173,826

48.8% of budget

Total Expenditures

$6,072,639

46.5% of budget

Surplus/Deficit

1,000,000

(1,000,000)

$101,187
Revenues

Expenditures

Surplus (Green)/Deficit (Red)

The General Fund broke even towards the end of the second quarter. The General Fund breaking so early in the

year, was due to strong revenues, particularly sales taxes and property taxes.

Page 6

Street Fund Summary

Street Fund Summary

$600,000

The Street Fund ended the 2nd Quarter of 2026

$400,000

with the following:

$200,000

Amount
Total Revenues

$97,896

Total Expenditures

$434,216

Surplus/Deficit

$336,320

% of Budget
18% of budget
47% of budget

$0

($200,000)

($400,000)

Revenues

Expenditures

Surplus (Green)/Deficit (Red)

The Street Fund is heavily supplemented by internal transfers. This fund is heavily reliant upon transfers from

other funds such as the TBD and REET Funds, those transfers have not transpired, yet; hence, the larger than
budgeted deficit.
Page 7

Water Fund Summary

Water Fund Summary

1,200,000

The Water Fund ended the 2nd Quarter of

800,000

2026 with the following:
400,000

Total Revenues

Total Amount

% of Budget

$1,106,169

38% of budget
0

Total Expenditures

$852,211

Surplus/Deficit

$253,958

40% of budget
Revenues

Expenditures

Surplus (Green)/Deficit (Red)

Of the enterprise funds, the Water Fund is fiscally the healthiest. Beginning in January, it has operated at a

surplus; however, that surplus will drastically diminish once the fund fulfills its capital maintenance obligations.
Overall, the fund is performing well and tracking closely to its budgeted projections (revenues surge in the 2nd
and 3rd quarters due to increased water usage).

Page 8

Sewer Fund Summary

Sewer Fund Summary

1,600,000

The Sewer Fund ended the 2nd Quarter of

1,200,000

2026 with the following:
800,000

Total Amount

% of Budget

400,000

Total Revenues

$1,497,678

51.4% of budget

0

Total Expenditures

$1,419,529

49% of budget

Surplus/Deficit

$78,149

(400,000)

Revenues

Expenditures

Surplus (Green)/Deficit (Red)

The Sewer Fund ended the first quarter with a minor deficit of $12,362. While financially constrained, the fund
is tracking closely to its budgeted projections and will likely end the year in a surplus. This projected surplus is

primarily due to deferred capital transfers, to maintain baseline operations.
Page 9

Stormwater Fund Summary
The Stormwater Fund ended the 2nd Quarter of

Stormwater Fund Summary
800,000

600,000

2026 with the following:

400,000

Total Amount

% of Budget

200,000

Total Revenues

$641,865

56.5% of budget

0

Total Expenditures

$544,312

51.6% of budget

Surplus/Deficit

$97,553

(200,000)

Revenues

Expenditures

Surplus (Green)/Deficit (Red)

The Stormwater Fund ended the first quarter with a deficit of $110,563. Because the fund collects the bulk of its
revenue in two distinct tranches throughout the year, this deficit represents a timing-related cash-flow issue
rather than an operational one. With the current conditions, this fund may end in a deficit due to expenditures
outpacing the growth of revenues in recent years further drawing down the fund’s reserves.

Page 10

Cash and Investment Balances

Page 11

Cash and Investment Balance Report

*Note: The Cash and Investment Balances includes reserve funds; whereas the earlier fund summaries do not.

Page 12

Cash and Investment Balance Report

Page 13

Black Diamond Investment Portfolio Earnings

Page 14

Black Diamond Investment Earnings, by Fund

Page 15

Fund Balance Classifications and
Ending Cash and Investments

Page 16

Fund Balance Classification of Ending Cash and
Investments

Page 17

Fund Balance Classification of Ending Cash and
Investments

Page 18

CERTIFICATION
Finance Committee: September 8, 2026
Council Date: September 15, 2026
Check No.'s / EFT

Batch Name

Check / EFT Date

Amount

57722

August 2026 Early Batch 3

08/20/26

$

488.72

57723-57768

September 2026 Regular Batch 2

09/16/26

$

182,946.05

TOTAL: $

183,434.77

I, THE UNDERSIGNED DO HEREBY CERTIFY UNDER THE PENALTY OF PERJURY, THAT THE MATERIALS HAVE
BEEN FURNISHED, THE SERVICES RENDERED AND OR THE LABOR PERFORMED AS DESCRIBED HEREIN AND
THAT THE CLAIM IS A JUST, DUE AND UNPAID OBLIGATION AGAINST THE CITY OF BLACK DIAMOND, AND
THAT I AM AUTHORIZED TO AUTHENTICATE AND CERTIFY TO SAID CLAIM.

Xavier Mason, Finance Director
DATE:

09/03/2026

John Adler, Mayor
DATE

Register
Fiscal: 2026
Deposit Period: 2026 - September, 2026 - August
Check Period: 2026 - September - 09/26 Regular Batch 2, 2026 - August - 08/26 Early Batch 3
Name

Print Date

Neil Wilson

8/20/2026

$488.72

AHBL, Inc.

9/16/2026

$5,101.50

Alexis Elton

9/16/2026

$297.50

Alsco

9/16/2026

$235.50

Art Gamblin Motors

9/16/2026

$469.18

Big Mountain Electric, Inc

9/16/2026

$12,099.00

Bill's Locksmith Service Inc.

9/16/2026

$1,745.42

Black Diamond Gun Club

9/16/2026

$187.50

Bryant's Tractor & Mower Inc.

9/16/2026

$312.93

CenturyLink (WA)

9/16/2026

$736.47

Cities Digital, Inc. "CDI"

9/16/2026

$3,541.12

City of Black Diamond/Retained Funds

9/16/2026

$281.82

Civic Forge LLC

9/16/2026

$2,000.00

Cummins Sales and Service

9/16/2026

$2,031.54

DCW - Data Center Warehouse

9/16/2026

$5,754.41

Debbie Gill

9/16/2026

$3.78

Ditch Witch West

9/16/2026

$90.58

Federal Eastern International

9/16/2026

$1,392.63

Ferguson #3156

9/16/2026

$10,621.64

Financial Consultants International Inc

9/16/2026

$25,454.52

Firestone Complete Auto Care

9/16/2026

$842.46

HWA GeoSciences Inc.

9/16/2026

$1,475.00

Joann Sloss

9/16/2026

$2.74

Johnsons Home & Garden

9/16/2026

$34.72

Les Schwab - Maple Valley

9/16/2026

$173.44

LN Curtis & Sons

9/16/2026

$628.29

Madrona Law Group LLC

9/16/2026

$3,168.00

Mountain View Auto Supply, Inc (NAPA)

9/16/2026

$1,239.65

Northstar Chemical Inc.

9/16/2026

$4,157.85

Olympic Environmental Resources

9/16/2026

$1,000.00

Orkin Commercial Services

9/16/2026

$581.63

Palmer Coking Coal Company

9/16/2026

$939.19

Pape Machinery

9/16/2026

$14.01

Parametrix, Inc.

9/16/2026

$19,493.33

Snyder, Jordan

9/16/2026

$50.00

Register

Clearing Date

Amount

Printed by db2\\cbrealey on 9/3/2026 8:55:19 AM
Page 1 of 1

Pye-Barker Fire & Safety LLC

9/16/2026

$4,262.85

Raedeke Associates Inc

9/16/2026

$2,075.00

RH2 Engineering Inc.

9/16/2026

$12,744.61

Scheibmeir, Kelly & Nelson , P.S.

9/16/2026

$1,550.00

Scott Hanis

9/16/2026

$268.76

Severson's Building Maintenance

9/16/2026

$2,650.00

SHI International Corp.

9/16/2026

$43.58

State Auditor's Office

9/16/2026

$10,582.50

Tracey Redd

9/16/2026

$888.47

Treat's Heating & Cooling

9/16/2026

$3,286.13

Varius Inc.

9/16/2026

$38,316.80

Water Management Laboratories, Inc.

9/16/2026

$120.00

Grand Total

Register

$183,434.77

Printed by db2\\cbrealey on 9/3/2026 8:55:19 AM
Page 1 of 1

BLACK DIAMOND CITY COUNCIL MINUTES
Council Meeting of September 1, 2026
Hybrid Meeting Via Zoom and In-Person
Council Chamber, 25510 Lawson Street, Black Diamond, Washington
CALL TO ORDER, FLAG SALUTE:
Mayor Adler called the regular meeting to order at 7:00 p.m. and led us all in the Flag
Salute.

ROLL CALL:
PRESENT: Councilmembers Deady, Nielsen (Zoom), Peterson, Young, Dal Santo, Reed
Councilmember Deady moved to excuse Councilmember Sorci from the meeting; second
Councilmember Reed. Motion passed with all voting in favor (6-0).
ABSENT: Councilmember Sorci (excused)
Staff present: Xavier Mason, Finance Director; Scott Hanis, Public Works Director; Hal H.
Hart, Community Development Director; Jessica Zielinski, Assistant Planner/Permit Tech;
Rob Reed, IS Manager; Commander Martinez; David Linehan, City Attorney; Kevin O’Neill,
City Administrator; Brenda L. Martinez, City Clerk/HR Manager.

AGENDA REVIEW AND APPROVAL:
City Administrator O’Neill stated that staff is requesting to pull item #5 and bring back at
the next meeting with updated information.
Councilmember Deady moved to add an executive session on real estate acquisition;
second Councilmember Reed Motion passed with all voting in favor (6-0).
Councilmember Peterson moved to approve the agenda as amended; second
Councilmember Deady. Motion passed with all voting in favor (6-0).

PUBLIC COMMENTS:
Tom Ekberg, Black Diamond spoke to Council.
Vicky Shulter, Black Diamond spoke to Council.
Monica Mancini, Black Diamond spoke to Council.
Greta Flores, Black Diamond spoke to Council.

APPOINTMENTS,
ANNOUNCEMENTS,
PRESENTATIONS: None
COMMITTEE REPORTS:
Black Diamond City Council Meeting Minutes – September 1, 2026
Page 1 of 5

PROCLAMATIONS

AND

Councilmember Young reported on items discussed at the Public Works Committee
meeting.
Councilmember Deady reported on the items discussed at the Planning and Community
Services Committee meeting.
Councilmember Peterson updated everyone on additional information that was obtained
regarding Lake Sawyer Regional Park.
Councilmember Reed reported on items discussed at the Budget, Finance, and
Administration Committee meeting.
Councilmember Nielsen reported on items to bring forward at the next Public Safety
Committee meeting.

DEPARTMENT REPORTS:
CONSENT AGENDA:
Councilmember Deady moved to approve the Consent Agenda; second Councilmember
Peterson. Motion passed with all voting in favor (6-0). The Consent Agenda was approved
as follows:
1) Claim Checks – September 1, 2026, Check No. 57670 through Check No. 57721 and
EFTs in the amount of $349,950.98
2) Minutes – Special Meeting of August 18, 2026, Council Meeting of August 18, 2026
3) AB26-108 – Resolution Authorizing Purchase of New Police Vehicle
4) AB26-109 – Monthly Financial Report for June 2026
5) AB26-110 – Resolution Regarding Utility Truck Purchase

PUBLIC HEARINGS: None
UNFINISHED BUSINESS: None
NEW BUSINESS:
6) AB26-111 – Resolution Authorizing Design Contract with Parametrix, Inc., for the
Ginder Creek Trails Project
Public Works Director Hanis shared information on this item.

Black Diamond City Council Meeting Minutes – September 1, 2026
Page 2 of 5

Councilmember Peterson moved to adopt Resolution No. 26-1773, authorizing the Mayor
to execute a professional services agreement with Parametrix, Inc, for the Ginder Creek
Trails project; second Councilmember Reed. Motion passed with all voting in favor (6-0).
7) AB26-112 – Ordinance Amending Chapter 10.32 and 10.34 of the Black Diamond
Municipal Code Regarding Penalty Amounts and Permitted Uses
Commander Martinez shared the changes to the ordinance with the Council.
Councilmember Reed moved to adopt Ordinance No. 26-1257 amending Black Diamond
Municipal Code Chapter 10.32 as shown in attachment A; Chapter 10.34 as shown in
attachment B, providing for severability; and establishing an effective date; second
Councilmember Young. Motion passed with all voting in favor (6-0).
8) AB26-113 – Ordinance Regarding (BESS) Battery Energy Storage System Interim Zoning
Controls
Assistant Planner/Permit Tech Zielinski provided an update on this item.
There was discussion on the proposed residential carve out, with consensus to have it at 20
kilowatts rather than the 15 kilowatts proposed in the ordinance.
Councilmember Peterson moved to adopt Ordinance No. 26-1258 establishing an
extension of interim zoning controls to prohibit the siting of battery energy storage within
the City for a period of six months, with a carve out for BESS systems of 20 kilowatts or
less; providing for severability; and establishing an immediate effective date if approved by
a majority-plus-one of the Council; second Councilmember Reed.
City Attorney Linehan outlined for the record the changes in the ordinance that need to
reference 20 kilowatts.
Motion passed with all voting in favor (6-0).

MAYOR’S REPORT:
Mayor Adler reported attending the Key Bank ribbon cutting ceremony and noted it was
great to see such a large turnout as well as Councilmember Deady. He mentioned that
during the ceremony Key Bank was generous to hand out two large donations of 10,000 to
the Black Diamond Community Center and Black Diamond Historical Society. He thanked
Key Bank for joining our community in such a strong way and giving back in the manner
that they did.

COUNCIL REPORTS:
Councilmember Young thanked the four residents for coming out and discussing the traffic
issues in areas of Black Diamond. He noted that some traffic calming measures should be
looked at. He shared that a good time to bring this up is during the public comment period
Black Diamond City Council Meeting Minutes – September 1, 2026
Page 3 of 5

when notices go up and go directly to the Hearing Examiner and the developer which could
possibly lead to a traffic mitigation before bequeathing these roads to the city.
Councilmember Dal Santo complimented the residents for coming out to address the
safety concerns. He wondered if there was any pressure on the developer to correct some
of these and what their responsibility is since they have vested plats.
Councilmember Reed thanked the residents for coming out and speaking about the
troubles in their neighborhoods and he stated that it was nice to see new faces as well as
the old ones.
Councilmember Deady reminded everyone that Labor Days is coming up this Sunday and
Monday and noted the activities for each day. She reported attending the Key Bank ribbon
cutting and shared that the Mayor did a great job with his speech. She noted hearing the
concerns out at Ten Trails and commented that OakPointe listens to these as well and
everyone is trying to figure out how to solve these issues. She also mentioned regarding
Lake Sawyer Regional Park, for staff to look at other siting options that we could explore
and come back with that information.
Councilmember Nielsen - no report.
Councilmember Peterson - no report.

CITY ADMINISTRATOR REPORT:
City Administrator O’Neill reported that staff is excited about Labor Days and will have a
booth, and invited Councilmembers to join staff at the booth. He shared that the scope of
work for the comp plan went out yesterday, and staff is making a lot of progress on the
budget with the process being more interactive for Council. Lastly, he began talks with the
City Managers from Maple Valley and Covington to form an agenda for the Tri-City
meeting. He mentioned that it’s our turn to host this meeting and he is working on a
venue to hold it here in Black Diamond in February.

ATTORNEY REPORT: None
PUBLIC COMMENTS: None
EXECUTIVE SESSION: Potential Real Estate Acquisition Pursuant to RCW 42.30.110(1)(b)
At 8:43 p.m. Mayor Adler announced that Council would be going into executive session
pursuant to RCW 42.30.110(1)(b) for potential real estate acquisition. The executive
session was anticipated to last 20 minutes with no action to follow.
At 9:03 p.m. Mayor Adler called the meeting back to order.

Black Diamond City Council Meeting Minutes – September 1, 2026
Page 4 of 5

ADJOURNMENT:
Councilmember Peterson moved to adjourn the meeting; second Councilmember Deady.
Motion passed with all voting in favor (6-0). The meeting ended at 9:03 p.m.
ATTEST:

John Adler, Mayor

Black Diamond City Council Meeting Minutes – September 1, 2026
Page 5 of 5

Brenda L. Martinez, City Clerk

City of Black Diamond
Post Office Box 599
Black Diamond, WA 98010

CITY COUNCIL
AGENDA BILL

ITEM INFORMATION
SUBJECT:

Agenda Date: September 15, 2026

Authorization to purchase a Chevrolet
1500 Utility Truck or similar for the Public
Works Department

Cost Impact (see also Fiscal Note): $67,500
Fund Source: PW Equipment Replacement
Timeline: September 2026

Mayor John Adler
City Administrator - Kevin O’Neill
City Attorney - David Linehan
City Clerk – Brenda L. Martinez
Com Dev – Hal Hart
Finance – Xavier Mason
MDRT/Ec Dev – Michelle Wright
Police – Chief Kiblinger
Public Works – Scott Hanis
Court – Judge Swain/Tawnya Parks

Agenda Placement:
Mayor
Two Councilmembers
Attachments: Resolution; Sample Quote
SUMMARY STATEMENT:

Committee Chair

AB26-116

X

City Administrator

Public Works has planned and budgeted to replace a utility truck this year. One truck is now at
the end of its useful life and will need to be surplused. Staff had explored purchasing the larger
Chevrolet 2500, but the maintenance team would prefer a smaller truck for this purchase.
Some of these trucks can be available on state bid or other cooperative purchasing contract,
however, Public Works does solicit quotes to get the best deal.
This utility truck will need to be outfitted with a utility truck box or other locking toolboxes,
along with emergency lights and other truck needs, after purchase. The overall cost impact
includes the price of the truck. The truck listed in the sample quote attached might be available
to us but shows the potential cost for just the truck ($54,574.76).
FISCAL NOTE (Finance Department): The 2026 budget has sufficient funds in the Public Works
Equipment Replacement Fund to cover this purchase.
COUNCIL COMMITTEE REVIEW AND RECOMMENDATION:
Public Works Committee recommends consideration by the full City Council on the consent agenda.
RECOMMENDED ACTION: MOTION to adopt Resolution No. 26-1772 authorizing the

purchase of a 2026 Chevrolet Silverado 1500 or similar, along with associated
equipment, in an amount not to exceed $67,500.
RECORD OF COUNCIL ACTION
Meeting Date
September 1, 2026
September 15, 2026

Action
Pulled from Agenda

Vote

RESOLUTION NO. 26-1772
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BLACK DIAMOND, KING COUNTY, WASHINGTON
AUTHORIZING THE PURCHASE OF A 2026 CHEVROLET
SILVERADO 1500 OR SIMILAR FOR USE BY THE PUBLIC
WORKS DEPARTMENT
WHEREAS, the Public Works Department needs to replace one of its utility trucks; and
WHEREAS, the 2026 Public Works equipment budget anticipated and has sufficient
funds to cover the purchase of a new utility truck; and
WHEREAS, staff solicited quotes for Chevrolet Silverado 1500s; and
WHEREAS, pickup trucks can sell quickly before City Council authorization is obtained;
and
WHEREAS, the new utility truck will need to be outfitted with necessary equipment,
such as toolboxes, emergency lights, etc.; and
WHEREAS, Public Works staff requests authorization to purchase a new utility truck,
which cost will include necessary equipment, for an amount up to $67,500 as trucks
become available from dealerships;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND,
WASHINGTON, DOES RESOLVE AS FOLLOWS:
Section 1. The Mayor is hereby authorized to purchase a new utility truck along with
necessary equipment for the Public Works Department in an amount not to exceed
$67,500.
PASSED BY THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND,
WASHINGTON, AT A REGULAR MEETING THEREOF, THIS 15TH DAY OF
SEPTEMBER, 2026.
CITY OF BLACK DIAMOND:
________________________________
John Adler, Mayor
Attest:
____________________________
Brenda L. Martinez, City Clerk

City of Black Diamond
Post Office Box 599
Black Diamond, WA 98010

CITY COUNCIL
AGENDA BILL

ITEM INFORMATION
SUBJECT:
Resolution authorizing the acceptance of
funding reimbursement agreement
between the Washington State
Administrative Office of the Courts
(AOC) and Black Diamond Municipal
Court for Interpreter Services.
Cost Impact (see also Fiscal Note): $3,506
Fund Source: Administrative Office of the
Court (AOC) AOC3542
Timeline: July 01,2026 to June 30, 2027

Agenda Date: September 15, 2026

AB26-117

Mayor John Adler
City Administrator - Kevin O’Neill
City Attorney - David Linehan
City Clerk – Brenda L. Martinez
Com Dev –Hal Hart
Finance – Xavier Mason
MDRT/Ec Dev – Michelle Wright
Police – Chief Kiblinger
Public Works – Scott Hanis
Court – Judge Swain/Tawnya Parks

Agenda Placement:
Mayor
Two Councilmembers
Attachments: Resolution, Reimbursement Agreement

Committee Chair

X

City Administrator

SUMMARY STATEMENT:

Request that the City accept funding for interpreter services reimbursements up to the amount
of $3,506.00
These funds are intended to address the court's following needs:
1. Financial Need – i.e., the gap between the court’s available financial resources and the
costs to meet its need for credentialed, and qualified interpreters, and the
implementation of the Court’s language access plan; and
2. Need for Court Interpreters – i.e., the public’s right to access the court, and the court’s
responsibility to provide court credentialed, and qualified interpreters as required by
RCW Chapters 2.42 and 2.43.
3. Need for Language Access in General – i.e., translations, customer service, technology
enabling remote interpreting, and other necessities for court to provide fair and
equitable access justice for limited language
FISCAL NOTE (Finance Department): This resolution would approve interpreter costs up to the
amount of $3,506 from the Administrative Office of the Courts.
COUNCIL COMMITTEE REVIEW AND RECOMMENDATION:
RECOMMENDED ACTION: MOTION to adopt Resolution No. 26-1774, authorizing the

acceptance of interpreter funds reimbursements from the Administrative Office
of the Courts and allow Court Administrator, Tawnya Parks to execute

Agreement AOC3542 with the Washington State Administrative Office of the
Courts for the Interpreter Services Reimbursement Program.
RECORD OF COUNCIL ACTION
Meeting Date
September 15, 2026

Action

Vote

RESOLUTION NO. 26-1774
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BLACK DIAMOND, KING COUNTY, WASHINGTON
AUTHORIZING THE CITY COUNCIL TO ACCEPT THE
ALLOCATED FUNDS AND AUTHORIZING COURT
ADMINISTRATOR, TAWNYA PARKS TO SIGN THE
AGREEMENT WITH THE ADMINISTRATIVE OFFICE OF
THE COURTS FOR AN INTERPRETER SERVICES
REIMBURSEMENT PROGRAM
WHEREAS, the Black Diamond Municipal Court applied for reimbursement of funds with
the Administrative Office of the Courts for Interpreter Services; and
WHEREAS, the Administrative Office of the Courts awarded Black Diamond Municipal
Court funds to be used to reimburse funds for interpreter services before Black Diamond
Municipal Court; and
WHEREAS, funding begins July 1, 2026, and continues through June 30, 2027. At that
time, the court will have the opportunity to continue this funding request;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND,
WASHINGTON, DOES RESOLVE AS FOLLOWS:
Section 1. The City Council hereby accepts the Administrative Office of the Court’s
reimbursement in funds up to $3,506.00
Section 2. Court Administrator, Tawnya Parks is authorized to execute this Agreement
AOC3542 between the Washington State Administrative Office of the Courts and the
Black Diamond Municipal Court for the Interpreter Reimbursement Program.
PASSED BY THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND,
WASHINGTON, AT A REGULAR MEETING THEREOF, THIS 15TH DAY OF
SEPTEMBER, 2026.
CITY OF BLACK DIAMOND:
________________________________
John Adler, Mayor
Attest:
____________________________
Brenda L. Martinez, City Clerk

Docusign Envelope ID: 87066698-9BA1-8458-81E3-12FA089D0D1B

INTERAGENCY AGREEMENT
BETWEEN

WASHINGTON STATE ADMINISTRATIVE OFFICE OF THE COURTS
AOC3542
AND

BLACK DIAMOND MUNICIPAL COURT
FOR

LANGUAGE ACCESS AND INTERPRETER REIMBURSEMENT PROGRAM (LAIRP)
1. PARTIES TO THE AGREEMENT
This Interagency Agreement is made and entered into by and between the State of
Washington acting by and through the Washington State Administrative Office of the
Courts, hereinafter referred to as “AOC or Procuring Agency,” and
Black Diamond
Whatcom
CountyMunicipal
SuperiorCourt
Court, referred to as “Court”. The AOC and the Court may
be referred to individually as a “Party” and collectively as the “Parties”.
2. DEFINITIONS
For purposes of this agreement, the following definitions shall apply:
a. “Credentialed Interpreter” means an interpreter who is Credentialed by the
Administrative Office of the Courts, as defined in RCW 2.43.020 (1) or an
interpreter certified by the Office of the Deaf and Hard of Hearing (ODHH)
pursuant to WAC 388-818-500, et. seq. The names and contact information of
AOC-certified interpreters are found, and incorporated herein by reference, at
http://www.courts.wa.gov/programs_orgs/pos_interpret/ The names and contact
information of ODHH-certified interpreters are found, and incorporated herein by
reference, at:
https://fortress.wa.gov/dshs/odhhapps/Interpreters/CourtInterpreter.aspx
b. “Qualified Interpreter” means a non-credentialed interpreter who is qualified on
the record by a judicial officer.
c. "Legal proceeding" means any proceeding in any court, and in any type of
hearing before a judicial officer, an administrative law judge, or before an
administrative board, commission, agency, or licensing body of the state or
any political subdivision, as defined in RCW 2.43.020 (4).
d. “Qualifying Event” means a proceeding or event for which an interpreter is
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appointed by an appointing officer pursuant to RCW 2.42 and/or RCW 2.43.
3. PURPOSE
The purpose of this Agreement is to partner with individual local courts in improving
access to the Court for Limited English Proficient (LEP), deaf, hard of hearing, and
deaf/blind (D/HH/DB) individuals in accordance with RCW Chapters 2.42 and 2.43.
a. These funds are intended to address each court's following needs:
i.
Financial Need – i.e., the gap between the court’s available financial resources
and the costs to meet its need for credentialed, and qualified interpreters, and
the implementation of the Court’s language access plan; and
ii.
Need for Court Interpreters – i.e., the public’s right to access the court, and the
court’s responsibility to provide court credentialed, and qualified interpreters as
required by RCW Chapters 2.42 and 2.43.
Need for Language Access in General – i.e., translations, customer service,
technology enabling remote interpreting, and other things that are necessary for courts
to provide fair and equitable access for LEP and D/HH/DB individuals.
THEREFORE, IT IS MUTUALLY AGREED THAT:
4. STATEMENT OF WORK
The Court shall:
a. Ensure that the interpreter funding is used only for language access purposes and
for reimbursement of costs paid to credentialed and qualified interpreters for
Qualifying Events pursuant to Appendix A, which is incorporated in this
agreement.
b. Track and provide interpreter cost and usage data through the web application
provided by the AOC LAIRP, reflecting information about the Court’s interpreter
and language access costs and services.
c. Provide the AOC Project Manager with a list of all users who require access to
submit data to the Language Access and Interpreter Reimbursement Program web
application.
d. Work with the AOC Language Access Team, the Interpreter and Language Access
Commission, and neighboring courts to identify and implement best and promising
practices for providing language access and interpreter services.
e. Encourage its staff overseeing interpreter services at the court to attend trainings
(in person and/or online) provided by the AOC Interpreter and Language Access
Commission and Language Access Team.
f. Elect to pay for interpreter services, if necessary, that are not in accordance with
the provisions of Appendix A as set forth; while such payments will not be
reimbursed, Court still commits to entering data into the application for these
interpreter services, irrespective of their eligibility for reimbursement.

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g. Have a Language Access Plan (LAP) in place to receive reimbursement funds
under this program.
i.
The Court must submit the most recent version of their LAP to the AOC
Project Manager.
a. Court that submitted an approved LAP in FY2026 is deemed in
compliance with this program requirement and does not need to
submit a new plan for FY2027.
b. Court that did not submit a LAP in FY2026 must submit the LAP to
the AOC Project Manager at [email protected] by December 1,
2026.
ii.
The Court agrees to work with the AOC LAP Coordinator to update and
revise the LAP for final approval by the AOC.
iii.
The Court certifies that they will exercise reasonable due diligence in
maintaining and updating their LAP as required by law.
5. PERIOD OF PERFORMANCE
Subject to its other provisions, the period of performance of this Agreement shall
commence on July 1, 2026, and end on June 30, 2027, unless terminated sooner or
extended, as provided herein.
6. COMPENSATION
AOC will reimburse the Court a total compensation not to exceed $3,506
$100,000 for
payments made during the period from July 1, 2026, through June 30, 2027, related
to the purpose of this agreement.
Procuring Agency may extend the term of this Contract or increase funds by mutual
written amendment. Such amendment shall be on the same terms and conditions as
set forth in this Contract.
7. INVOICES; BILLING; PAYMENT
The Court will submit properly prepared itemized invoices quarterly through the web
application on an A19 form to AOC Program Manager. The Data shall be submitted
electronically to the AOC as described in Subsection 4.b., above, and in conjunction
with the quarterly invoice. The Court shall maintain sufficient backup documentation
of expenses under this Agreement observing the following:
a. The Court shall receive payment for its costs for interpreter and language access
services as set forth in Appendix A and incorporated herein.
b. The Court shall not be reimbursed for interpreter services costs for Qualifying
Events or other goods and services set forth in Appendix A until properly
completed A19 invoices, corresponding data (See subsection 4.b.), and the AOC

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approved LAP (See subsection 4.g.), are received and approved by AOC, pursuant
to the following schedule:
i.

Reflecting Qualifying and non-qualifying Events and any goods or services
purchased, between July 1, 2026, and September 30, 2026, must be
received by the AOC no later than December 31, 2026.
ii.
Reflecting Qualifying and non-qualifying Events and any goods or services
purchased, between October 1, 2026, and December 31, 2026, must be
received by the AOC no later than February 28, 2027.
iii.
Reflecting Qualifying and non-qualifying Events and any goods or services
purchased, between January 1, 2027, and March 31, 2027, must be
received by the AOC no later than April 30, 2027.
iv.
Reflecting Qualifying and non-qualifying Events and any goods or services
purchased, between April 1, 2027, and June 30, 2027, must be received by
the AOC no later than July 15, 2027.
c. The Court shall submit documents related to reimbursement claims upon request
by the AOC, including but not limited to translated materials or invoices for goods
and services.
d. The Court shall make reasonable efforts to submit invoices by the due date. Any
supplemental invoices submitted after the due date must be reported to the AOC
for approval, which may be processed at the discretion of the AOC Project
Manager.
e. Payment to Court for approved and completed work will be made by warrant or
account transfer by AOC within 30 days after each quarterly deadline, provided
that the invoice and data report are complete and accurate.
Incorrect or incomplete A19s shall be returned by AOC to the Court for correction
and resubmission.
f. Payment will be considered timely if made by the AOC within thirty (30) calendar
dates after each quarterly deadline. No A19 shall be submitted until after a
deliverable has been accepted by the AOC Program Manager.
The AOC will not make any advanced payments or payments in anticipation of
services or supplies under this Contract.
8. REVENUE SHARING
a. AOC, in its sole discretion, may initiate revenue sharing. If AOC determines the
Court may not spend all funds or spend more funds available under the
Agreement, then AOC may reduce or increase the Agreement amount. AOC PM
will notify the Court that funding will be reallocated.

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b. If the AOC initiates revenue sharing, then the Court must submit the final revenue
sharing A19 to AOC Program Manager by July 15, 2027.
9. AGREEMENT MANAGEMENT
The Program Manager and Court Program Manager noted below shall be responsible
for and shall be the contact people for all communications and billings regarding the
performance of this Contract. The parties may change administrators by written
notice.
AOC Program Manager

Court Program Manager

Tae Yoon
PO Box 41170
Olympia, WA 98504-1170
[email protected]
(360) 705-5281

Tawnya Parks
Court Administrator
25510 Lawson Street
Black Diamond, WA 98010
[email protected]
(360) 851-4490

10. RECORDS, DOCUMENTS, AND REPORTS
a. Records Retention. The Court shall maintain books, records, documents and other
evidence of accounting procedures and practices which sufficiently and properly
reflect all direct and indirect costs of any nature expended in the performance of
this contract. These records shall be subject at all reasonable times to inspection,
review, or audit by personnel duly authorized by the AOC, the Office of the State
Auditor, and federal officials so authorized by law, rule, regulation, or contract. The
Court will retain all books, records, documents, and other material relevant to this
contract as required, a minimum of six (6) years after end of period of performance
(including all amendments to extend) or termination of the agreement or as
otherwise specified and make them available for inspection by persons authorized
under this provision. If any litigation, claim, or audit is commenced prior to the
expiration of the required retention period, such period shall extend until all such
litigation, claims, or audits have been resolved.
b. Public Records. It is the policy of the Administrative Office of the Courts to facilitate
access to its administrative public records. This Agreement and related records
are subject to disclosure under General Court Rule 31.1. For additional
information, please contact the AOC Public Records Officer.

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11. RIGHTS IN DATA
Unless otherwise provided, data which originates from this Agreement shall be "works
for hire" as defined by the U.S. Copyright Act of 1976 and shall be owned by the AOC.
Data shall include, but not be limited to, reports, documents, pamphlets,
advertisements, books magazines, surveys, studies, computer programs, films,
tapes, and/or sound reproductions. Ownership includes the right to copyright, patent,
register, and the ability to transfer these rights.
12. RESPONSIBILITY OF THE PARTIES
Each party to this Agreement assumes responsibility for claims and/or damages to
persons and/or property resulting from any act or omission on the part of itself, its
employees, or its agents. Neither party assumes any responsibility to the other party
for any third-party claims.
13. DISPUTE RESOLUTION
To the extent practicable, the Parties shall use their best, good faith efforts
cooperatively and collaboratively to resolve any dispute that may arise in connection
with this Agreement as efficiently as practicable, and at the lowest possible level with
authority to resolve such dispute. The Parties shall make a good faith effort to
continue without delay to carry out their respective responsibilities under this
Agreement while attempting to resolve any such dispute. If, however, a dispute
persists and cannot reasonably be resolved, it may be escalated within each
organization. In such circumstance, upon notice by either party, each party, within
five (5) business days shall reduce its description of the dispute to writing and deliver
it to the other party. The receiving party then shall have three (3) business days to
review and respond in writing. In the event the parties cannot agree on a mutual
resolution within fifteen (15) business days, the parties shall appoint a member of a
dispute resolution board within Thurston County, and those two appointed members
will select a third. The Board shall employ dispute resolution measures and its result
is binding. Both parties agree that the existence of a dispute notwithstanding, the
Parties will continue without delay to carry out all respective responsibilities under this
Agreement that are not affected by the dispute.
14. GENERAL PROVISIONS
a. Amendment or Modification. Except as set forth herein, this Agreement may not
be amended or modified except in writing and signed by a duly authorized
representative of each party hereto. In revenue sharing procedures AOC will issue
a unilateral amendment.
b. Appendix. All appendices referred to herein are deemed to be incorporated in this
Agreement in their entirety.
c. Assignment. The work to be provided under this Agreement, and any claim arising
thereunder, is not assignable or delegable by either party in whole or in part,

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without the express prior written consent of the other party, which consent shall
not be unreasonably withheld.
d. Authority. Each party to this Agreement, and each individual signing on behalf of
each party, hereby represents and warrants to the other that it has full power and
authority to enter into this Agreement and that its execution, delivery, and
performance of this Agreement has been fully authorized and approved, and that
no further approvals or consents are required to bind such party.
e. Captions & Headings. The captions and headings in this Agreement are for
convenience only and are not intended to, and shall not be construed to, limit,
enlarge, or affect the scope or intent of this Agreement nor the meaning of any
provisions hereof.
f. Conformance. If any provision of this Agreement violates any statute or rule of law
of the State of Washington, it is considered modified to conform to that statute or
rule of law.
g. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and all of which counterparts together
shall constitute the same instrument which may be sufficiently evidenced by one
counterpart. Execution of this Agreement at different times and places by the
Parties shall not affect the validity thereof so long as all the Parties hereto execute
a counterpart of this Agreement.
h. Electronic Signatures. An electronic signature or electronic record of this
Agreement or any other ancillary agreement shall be deemed to have the same
legal effect as delivery of an original executed copy of this Agreement or such
other ancillary agreement for all purposes.
i.

Entire Agreement. This Agreement constitutes the entire agreement and
understanding of the Parties with respect to the subject matter and supersedes
all prior negotiations, representations, and understandings between them. There
are no representations or understandings of any kind not set forth herein.

j.

Governing Law. The validity, construction, performance, and enforcement of this
Agreement shall be governed by and construed in accordance with the laws of
the State of Washington, without regard to its choice of law principles that would
provide for the application of the laws of another jurisdiction.

k. Independent Capacity. The employees or agents of each party who are engaged
in the performance of this Agreement shall continue to be employees or agents
of that party and shall not be considered for any purpose to be employees or
agents of the other party.
l.

Jurisdiction & Venue. In the event that any action is brought to enforce any
provision of this Agreement, the parties agree to exclusive jurisdiction in Thurston

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County Superior Court for the State of Washington and agree that in any such
action venue shall lie exclusively at Olympia, Washington.
m. No Agency. The parties agree that no agency, partnership, or joint venture of any
kind shall be or is intended to be created by or under this Agreement. Neither
party is an agent of the other party nor authorized to obligate it.
n. Right of Inspection. The Court shall provide right of access to its facilities to the
AOC, or any of its officers, or to any other authorized agent or official of the State
of Washington at all reasonable times, in order to monitor and evaluate
performance, compliance, and/or quality assurance under this agreement.
o. Severability. If any provision of this Agreement or any provision of any document
incorporated by reference shall be held invalid, such invalidity shall not affect the
other provisions of this Agreement which can be given effect without the invalid
provision, if such remainder conforms to the requirements of applicable law and
the fundamental purpose of this agreement, and to this end the provisions of this
Agreement are declared to be severable.
p. Termination for Cause. If for any cause, either party does not fulfill in a timely and
proper manner its obligations under this Agreement, or if either party violates any of
these terms and conditions, the aggrieved party will give the other party written
notice of such failure or violation. The responsible party will be given the opportunity
to correct the violation or failure within 15 working days. If failure or violation is not
corrected, this Agreement may be terminated immediately by written notice of the
aggrieved party to the other.
q. Termination for Convenience. Except as otherwise provided in this Agreement,
either party may terminate this Agreement upon thirty (30) calendar days prior
written notification. Upon such termination, the parties shall be liable only for
performance rendered or costs incurred in accordance with the terms of this
Agreement prior to the effective date of such termination.
r. Termination for Non-Availability of Funds. AOC’s ability to make payments is
contingent on availability of funding. In the event funding from state, federal, or other
sources is withdrawn, reduced, or limited in any way after the effective date and prior
to completion or expiration date of this Agreement, AOC, at its sole discretion, may
elect to terminate the Agreement, in whole or part, for convenience or to renegotiate
the Agreement subject to new funding limitations and conditions. AOC may also
elect to suspend performance of the Agreement until AOC determines the funding
insufficiency is resolved. AOC may exercise any of these options with no notification
restrictions, although AOC will make a reasonable attempt to provide notice.
In the event of termination or suspension, AOC will reimburse eligible costs incurred
by the Court through the effective date of termination or suspension. Reimbursed

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costs must be agreed to by AOC and the Court. In no event shall AOC’s
reimbursement exceed AOC’s total responsibility under the agreement and any
amendments.
s. Suspension for Convenience. AOC may suspend this Agreement or any portion
thereof for a temporary period by providing written notice to the Court a minimum of
seven (7) calendar days before the suspension date. Court shall resume
performance on the first business day following the suspension period unless
another day is specified in writing by AOC prior to the expiration of the suspension
period.
t. Waiver. A failure by either party to exercise its rights under this Agreement shall
not preclude that party from subsequent exercise of such rights and shall not
constitute a waiver of any other rights under this Agreement unless stated to be
such in a writing signed by an authorized representative of the party and attached
to the original Agreement.
EXECUTED AND EFFECTIVE as of the day and date first above written.

WASHINGTON STATE ADMINISTRATIVE

Black Diamond Municipal Court

OFFICE OF THE COURTS

LAIRP

________________________________
Signature
Date

_______________________________
Signature
Date

Dawn
Marie Rubio
________________________________

Tawnya Parks
____________________________

Name

Name

WA
State Court Administrator / AOC Director
________________________________
Title

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APPENDIX A
WASHINGTON STATE LANGUAGE ACCESS AND INTERPRETER
REIMBURSEMENT PROGRM FUNDING
FUNDING CONDITIONS AND PAYMENT STRUCTURE
The Language Access and Reimbursement Program funding conditions and payment
structure shall be as follows:
1. GENERAL FUNDING CONDITIONS
The Washington State Administrative Office of the Courts (AOC) will reimburse
Courts under this Agreement for the cost of spoken language interpretation and
sign language interpretation and other goods and services that improve language
access in the courts for Limited English Proficient (LEP), deaf, and hard of hearing
persons. This includes interpreters credentialed by AOC (certified or registered),
or otherwise court-qualified interpreters appointed pursuant to RCW 2.42 and
RCW 2.43 under the following conditions listed under Section 2 “Qualifying
Interpreter Events.”
It also includes goods and services that improve language access, listed under
Section 3 “Language Access Goods and Services”.
Courts shall work with AOC staff in determining whether an expense that is not
explicitly mentioned below, qualifies as a reimbursable expense under the
Agreement.
2. QUALIFYING INTERPRETING EVENTS
A. Spoken Language Interpreters Qualifying Events
AOC will reimburse the Court50% of the actual expenses for services of WA
state AOC-credentialed or otherwise court-qualified interpreters pursuant to
RCW 2.43 that meet one of the following conditions:
a) If there is at least one WA state AOC credentialed interpreter in the
language being used, then reimbursement will only be provided for using
an AOC credentialed interpreter who is credentialed in that language.
b) Compensation for interpreters for languages for which neither a certified
interpreter nor registered interpreter is offered will be reimbursed where
the interpreter has been qualified on the record pursuant to RCW 2.43.
c) Courts will not be reimbursed for events using non-AOC credentialed
interpreters if there is one or more WA state AOC credentialed
interpreter listed for the language being used.

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B. Sign Language Interpreters Qualifying Events
AOC will reimburse the Court 50% of the actual expenses for services of
American Sign Language (ASL) interpreters and Certified Deaf Interpreters
(CDI) pursuant to RCW 2.42 when the interpreter is listed with the Department
of Social and Health Services, Office of Deaf and Hard of Hearing (DSHS,
ODHH) as a court-certified interpreter.
The Office of Deaf and Hard of Hearing (ODHH) at the Department of Social
and Health Services (DSHS) maintains a list of Certified Court Sign Language
Interpreters. This list includes American Sign Language (ASL) interpreters and
Certified Deaf Interpreters (CDI). To qualify for reimbursement, and event using
an ASL and/or CDI interpreter from this list must be used.
Certified interpreters are listed under three categories:
• Specialist Certificate: Legal – SC: L
• RID Certification with SC: L written test
• Intermediary Interpreters (Deaf Interpreter)
The
most
up
to
date
list
can
be
found
here:
https://fortress.wa.gov/dshs/odhhapps/Interpreters/CourtInterpreter.aspx
C. Out of State Court Credentialed Interpreters Qualifying Events
AOC will reimburse the Court 25% of the actual expenses for services of out of
state court credentialed or otherwise court-qualified interpreters pursuant to
Exhibit I, Out of State Interpreter Reimbursement Policy, and Guidelines that
meet all of the following conditions:
a) Interpreter service is provided for a designated High Priority Language.
b) Court has made reasonable efforts to secure a WA state court
credentialed interpreter.
c) A WA state court credentialed interpreter was not reasonably available
for the assignment.
d) The out of state interpreter holds credential status that aligns with WA
state’s court credential standards.
e) The out of state interpreter has been provided with the Code of
Professional Responsibility for Judiciary Interpreters. (GR11.2)
D. Staff Interpreters (Salaried Staff)
Reimbursement will be provided for salaried staff meeting the Qualifying Event
conditions for 50% of the payment of credentialed spoken and sign language
interpreters, as referenced in subsections 2.A and 2.B above.

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E. Telephonic and Video Remote Interpreting and Services for Legal
Proceedings
AOC will reimburse 50% of the costs for using certified, registered, or otherwise
qualified interpreters operating by telephone or video for court proceedings.
The services must meet the Qualifying Event conditions for the payment of
credentialed spoken and sign language interpreters, as referenced in
subsections 2.A and 2.B above.
3. LANGUAGE ACCESS GOODS AND SERVICES
Courts can request reimbursement for 100% of the costs for goods and services
that will help increase language access in the Court.
Courts shall submit documents related to reimbursement claims under goods and
services, including original and translated materials for translation services, and
applicable invoices for other goods and services, upon request by the AOC.
The items listed below are common goods and services that courts have used to
increase language access and will be improved for reimbursement.
•

Translation services

•

Telephonic interpreter services for events outside of court proceedings

•

Portable video device(s) for video remote interpreting

•

Equipment used for simultaneous interpretation

•

Staff training on language access, interpreting, or bilingual skills
improvement

•

Interpreter scheduling software fees

• Printed signage for language assistance purposes
Items or services not listed above must be pre-approved (via email) by Language
Access and Interpreter Reimbursement Program Coordinator prior to purchase or
they may not qualify for reimbursement under the Program.
4. SCOPE OF REIMBURSEMENT FUNDING
Reimbursement payment under this Agreement will only be made to the Court
when the cost is paid out of the budget or budgets, in the case of multi-court
collaborative applicants of the Court responsible for full payment.
5. PAYMENT STRUCTURE
A. Reimbursement Rate
a) Spoken Language Interpreters
AOC will reimburse the Court 50% of the cost of AOC credentialed, or
otherwise court-qualified interpreters providing services under this
Agreement.
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b) Sign Language Interpreters
AOC will reimburse the Court 50% of the cost of certified interpreters
providing services under this Agreement.
c)

High Priority Language Out of State Interpreters
AOC will reimburse the Court 25% of the cost of court credentialed, or
otherwise court-qualified interpreters that meet WA standards providing
services under this Agreement.

d) Staff Interpreters (Salaried Staff)
AOC will reimburse the Court 50% of the cost of AOC credentialed staff
interpreters.
e) Contracted Interpreters
The cost of credentialed or otherwise qualified contract interpreters who
are paid other than on an hourly basis, for example, on a half-day or flat
rate basis, will be reimbursed at 50%.
f)

Remote Interpreting
AOC will reimburse the Court 50% of the cost of using credentialed or
otherwise qualified interpreters providing interpretation by telephone or
video for legal proceedings.

g) Cancellation Fees
AOC will reimburse the Court 50% of cancellation fees paid to interpreter.
h) Goods and Services
AOC will reimburse the Court 100% of the approved cost of goods and
services related to language access in courts. These services must not be
part of a legal court proceeding.
B. Travel Time and Mileage
AOC will reimburse the Court 50% of the cost of interpreter travel time and
mileage.
Interpreter travel time is reimbursable if a required party fails to appear. “Failure
to appear” means a non-appearance by the LEP or deaf or hard of hearing
client, attorneys, witnesses, or any necessary party to a hearing, thereby
necessitating a cancellation or continuance of the hearing. The Court can be
reimbursed for 50% of the cancellation fees paid to the interpreter.

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EXHIBIIT I
OUT OF STATE INTERPRETER REIMBURSEMENT POLICY
I.Policy Statement
The Language Access and Interpreter Reimbursement Program (LAIRP) establishes
this policy to expand reimbursement eligibility for interpreter services provided by out of
state court credentialed interpreters for designated High Priority Languages when a
Washington state court credentialed interpreter is not readily available. Reimbursement
is subject to the eligibility requirements, reimbursement rate, and other terms and
conditions established in this policy.
II.Purpose
The purpose of this policy is to strengthen statewide language access support for
Washington courts by establishing an equitable, sustainable, and data-driven framework
for reimbursing eligible out of state interpreter services under LAIRP. The policy is
designed to promote meaningful language access in courts by expanding
reimbursement support while reaffirming Washington state court credentialed
interpreters as the preferred resource whenever reasonably available.
III.Scope
This policy applies to:
•
•
•
•

Courts participating in the LAIRP;
Interpreter services provided by court credentialed out of state interpreters;
Languages designated as High Priority Languages;
Interpreter events occurring on or after July 1, 2026.

This policy does not apply to languages for which Washington state does not have a
court credentialed interpreter. Reimbursement for interpreter services in those
languages continues to be administered as outlined in the Interagency Agreement.
IV.Definitions
For the purpose of this policy:
Court Credentialed Interpreter means an interpreter who holds an active court
interpreter credential issued by a state’s administrative office of the courts or a
nationally recognized credentialing body.

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In State Court Credentialed Interpreter means an interpreter who acquired
Washington state court credential (either certified or registered) by completing the steps
required by Washington State Administrative Office of the Courts (AOC).
Out of State Court Credentialed Interpreter means an interpreter credentialed by
another state’s court system who does not currently hold a Washington state court
interpreter credential through certification, registration, or reciprocity.
Reciprocity means the process by which an interpreter who is court credentialed in
another state and in good standing may apply to obtain a court credentialed interpreter
status in Washington state. Their credential was initially obtained from a nonWashington state and AOC grants reciprocity credentialing status through a
requirement standard verification process.
High Priority Language means a language designated by the AOC as eligible for
reimbursement under this policy based on an assessment of language access needs. A
high priority language is identified as requiring additional reimbursement support to
address a significant gap between language demand and interpreter supply.
Reasonable Effort means a documented process taken by the court to secure a
Washington state court credentialed interpreter before utilizing an out of state court
credentialed interpreter.
V.High Priority Languages
AOC shall annually designate High Priority Languages using LAIRP data and
established evaluation criteria.
The criteria may include interpreter utilization, statewide interpreter availability,
language demand, and other factors determined by the AOC to ensure equitable
resource distribution.
High Priority Languages shall be reviewed periodically, and the list of included
languages may be revised by AOC based on available data and program needs.

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For Fiscal Year 2027, the following languages are designated as High Priority
Languages.
Certified
Languages
Arabic
Hmong

Registered Languages
Burmese
Dari
Hungarian
Kurdish - Kurmanji
Laotian
Marshallese
Nepali
Swahili
Tigrinya
Ukrainian
Urdu

VI.Eligibility Requirements
To qualify for reimbursement, all of the following conditions must be met:
A. Interpreter service is provided for a designated High Priority Language.
B. Court has made reasonable efforts to secure a Washington state court
credentialed interpreter.
C. A Washington state court credentialed interpreter was not reasonably available
for the assignment.
D. The out of state interpreter holds credential status that aligns with Washington
state’s court credential standards.
E. The out of state interpreter has been provided with the Code of Professional
Responsibility for Judiciary Interpreters (GR11.2).
VII.Court Responsibilities
To claim reimbursement for interpreter services provided by an out of state interpreter,
the Court is responsible for:
A. Verifying the out of state interpreter’s credential based on the Out of State
Interpreter Credential Verification Guideline (Exhibit II).
B. Providing the interpreter with the Code of Professional Responsibility for
Judiciary Interpreters (GR11.2).
C. Attesting interpreter’s court credential status through the LAIRP application
portal.
D. Maintaining documentation supporting eligibility requirements.

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E. Submitting complete, accurate, and timely invoices in accordance with LAIRP
requirements and applicable deadlines.
At any point, if an interpreter’s credential attestation is determined to be inaccurately
reported by the court even after the invoice has been paid, AOC reserves the right to
revoke the reimbursement approval. In such cases, if reimbursement has occurred,
courts shall be required to return the applicable reimbursement payment to AOC.
VIII.Reimbursement
Subject to court’s available budget and overall program funds, LAIRP shall reimburse
twenty-five percent (25%) of the total out of state interpreter services eligible expenses.
Reimbursement rate may be revised at the discretion of the AOC to meet program
needs.
Eligible expenses include:
A. Interpreter service fees;
B. Travel expenses, including accommodation, mileage, per diem, and other travel
related costs consistent with applicable Washington state travel regulations; and
C. Other AOC pre-approved expenses directly related to the provision of interpreter
services.
Reimbursement may be limited by reimbursement caps, program funding, or other fiscal
requirements established by the AOC.
IX.Exceptions
AOC may approve exceptions to the policy on a case-by-case basis to support critical
language access needs.
Requests for exception shall be submitted in writing prior to scheduling the interpreter.
Courts may submit the request to the Program Manager, Tae Yoon at
[email protected].
X.Review and Updates
AOC may periodically review this policy to ensure continued alignment with program
objectives, statewide interpreter needs, and fiscal sustainability.
Revisions may be adopted as necessary. AOC shall notify the courts via email
notification of any revisions.

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EXHIBIT II
OUT OF STATE INTERPRETER CREDENTIAL VERIFICATION
I.Purpose
This document provides Washington courts with standardized procedures for
implementing the Out of State Interpreter Reimbursement Policy. Its purpose is to
ensure that language access provided by out of state court credentialed interpreters
meets established Washington state standards and qualifications. It serves as a stepby-step resource for courts to verify out of state court interpreter credentials, document
compliance with policy requirements, and submit reimbursement requests under the
Language Access and Interpreter Reimbursement Program (LAIRP).
II.Washington State Court Credentialed Standards
Washington state has two court credential types depending on the language:
•
•

Certified Interpreter
Registered Interpreter

In order for an interpreter to be credentialed in Washington state, the interpreter must:
1. Successfully pass the National Center for State Courts (NCSC) written exam with
a minimum score of 80% or higher
2. Complete the interpreter orientation provided by the AOC
3. Successfully pass the oral requirement
• Certified Interpreter: A passing score of 70% or higher on the NCSC oral
exam on all three sections; sight, consecutive, and simultaneous
interpretation
• Registered Interpreter: English Oral Proficiency Interview (OPI) score 49 and
above, Foreign Language OPI score superior and above from WA AOC
approved testing companies for languages that do not have an NCSC oral
exam
4. Complete the mandatory Ethics and Protocol Training provided by the AOC
5. Successfully pass a background check performed by WA State Patrol and
complete the Interpreter Oath
WA state court credentialed interpreters need to fulfill a biennial compliance
requirement to maintain an active WA AOC credential status.
An interpreter who acquired credential status originally in another state may become
court credentialed in Washington state once they complete the required reciprocity

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process. In such case, the interpreter is considered a Washington state court
credentialed interpreter regardless of their current place of residence.
III.Verifying an Out of State Court Interpreter Credential
Prior to scheduling an out of state interpreter, the Court is responsible for verifying the
interpreter’s credentials. Because credentialing systems vary among states, courts
should further verify that the interpreter’s credential in another state aligns with
Washington state credential standards.
The following process is intended to assist courts in completing the interpreter
credential verification;
Step 1- Identify Language
Identify language and determine whether it is considered a certified or registered
language. A list of credentialed languages can be found on the AOC website.
Step 2 - Identify Interpreter’s Credential
•
•

Identify the interpreter’s credential type and the issuing state.
Credential types across states include, but are not limited to, Master,
Certified, Registered, Qualified, Conditionally Approved, Advanced,
Journey, Provisionally Approved, Authorized, Proficient.

Step 3 - Verify the Credential
Verify whether the credential is active and in good standing. This may be
completed by:
•

•
•

Checking the official court interpreter registry maintained by the issuing
state. Courts may refer to each state’s interpreter roster link, if available,
on the Nationwide Interpreter Resource List (Exhibit III).
Contacting a court from the issuing state the interpreter has worked in.
Requesting official documentation issued by the credentialing authority.

Step 4 - Evaluate Credential Equivalency to Washington standards
Evaluate whether the interpreter’s credential from the issuing state is comparable
to Washington state court credential standards outlined in Section II.
•
•

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When making this determination, courts should evaluate the credentialing
requirements as a whole.
Difference in credential types, titles, or structure does not necessarily
indicate that a credential is not comparable to Washington standards.

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•
•

Similarly, the use of the same credential title such as ‘certified’ or
‘registered’ does not automatically mean that the credential is equivalent
to Washington state’s credential requirements.
Courts may refer to each state’s language access website link on the
Nationwide Interpreter Resource List (Appendix B).
If additional guidance is needed regarding a credential or an unfamiliar
credentialing structure, courts may contact the AOC Language Access
team before scheduling the interpreter and submitting a reimbursement
request.

Step 5- Maintain Documentation
Retain any documentation supporting the credential verification process.
•

•

Documentation may include registry searches, credential verification
records, correspondence, or other information used during the verification
process.
Courts may be requested to provide supporting documentation as part of
the LAIRP reimbursement review or program administration.

IV.Submitting Reimbursement Request
To request reimbursement, Courts must report the interpreter event through the LAIRP
application portal in accordance with established reporting procedures.
Specifically, to claim reimbursement under the Out of State Interpreter Reimbursement
Policy, Court shall attest that:
•
•
•

The out of state interpreter’s credential has been verified.
Interpreter’s credentials align with Washington state standards.
A Washington state court credentialed interpreter was not reasonably available
for the interpreter event.

By submitting the reimbursement request and required attestation, the Court certifies
that the verification was completed in accordance with these guidelines and necessary
supporting documentation has been retained. Courts are not required to submit
supporting documentation through the LAIRP application portal.

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EXHIBIT III
NATIONWIDE INTERPRETER RESOURCE LIST
This list can also be found on the LAIRP Application Portal
The links provided below are intended as a general reference to assist courts in locating publicly available
information about interpreter rosters and language access websites in other states. These links are
maintained by each state and may change without notice. Courts should verify interpreter credentials,
qualifications, and other applicable requirements directly with the relevant state.

State

Interpreter Roster

Alabama

Alabama Administrative Office of Courts Alabama Administrative Office of Courts

Alaska

Verification by email

Arizona

Verification by email

Arkansas

https://arcourts.gov/directories/courtinterpreters-registry

Office of Court Interpreter Services (OCIS) |
Arkansas Judiciary

California

Search for an Interpreter | Language
Access Services

Home | Language Access Services

Colorado

Managing & Staff Interpreter Contact
Information

Interpreters & Translators | Colorado Judicial
Branch

Connecticut

Verification by email

Delaware

Available upon request

Limited English Proficiency - CT Judicial
Branch
Delaware Court Interpreter Program Administrative Office of
the Courts - Delaware Courts - State of
Delaware

Florida

Certified Interpreter Registry / Find an
Interpreter / Court
Court Interpreting / Court Services / Services
Interpreting / Court Services / Services - - - Florida Courts
- Florida Courts

Georgia

gcr.onegovcloud.com/public/directory/

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Website

Language Interpreter Services - Alaska Court
System
AZCourts.gov > Arizona Language Access
Information and
Interpreter Resources

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Hawaii

Find a Court Interpreter Hawaii

Idaho

https://isc.idaho.gov/administrative/roster https://isc.idaho.gov/about-thes/other-court-rosters
courts/language-access
Find a Language Interpreter/Language
Access Program in the
Illinois Interpreter Registry
Illinois Courts system

Illinois

Judiciary | Judiciary Language Assistance
Policy

Indiana

Interpreters - Search

Office of Judicial Administration: Language
Access

Iowa

Find an Interpreter | Iowa Judicial
Branch

Court Interpreters | Iowa Judicial Branch

Kansas

No certification requirements

https://kscourts.gov/Public/Become-anInterpreter

Kentucky

https://www.kycourts.gov/CourtPrograms/LanguageLanguage Access - Kentucky Court of
Access/Pages/Find-an-Interpreter.aspx Justice

Louisiana

Maine

Maryland

Massachusetts

https://www.lasc.org/court_interpreters/L
ASC_Interpreter_Regis
Office of Language Access - Louisiana
try.pdf
Supreme Court

Interpreter and Translation Services: State of
Maine Judicial
Branch

Verification by email

https://secure.scheduleinterpreter.com/
marylandcourts/cgiLanguage Services | Maryland Courts
bin/reports.cgi?action=publicListing
https://www.mass.gov/infodetails/massachusetts-trial-courtTrial Court Office of Language Access |
interpreters-public-release-roster-prrMass.gov
introduction

Michigan

Certified Interpreters

Foreign Language Interpreter Certification
Program

Minnesota

Court Interpreters Search

mncourts.gov

Mississippi

https://courts.ms.gov/aoc/courtinterpret Court Interpreters - State of Mississippi
er/registry.php
Judiciary

Missouri

Missouri Foreign Language Court
Interpreter Roster

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Montana

Nebraska

Nevada

New Hampshire

New Jersey

Verification by email

Interpreters | District of Montana | United
States District Court

https://nebraskajudicial.gov/programsservices/interpreters/statewide-register- Language Access | Nebraska Judicial
interpreters
Branch
Nevada Certified Court Interpreter Program
Overview |
NVCCIP Roster 5.2026
Administrative Office of the Courts
Language Access/Interpreter Services | New
Hampshire Judicial
Verification by email
Branch
https://www.njcourts.gov/sites/default/fil
es/public/languagehttps://www.njcourts.gov/public/getservices/registry.pdf
help/request-interpreter

New Mexico

https://nmcenterforlanguageaccess.org/
cms/en/services/langu
Online Multilingual Language Access
age-interpreter-services-directory
Training

New York

Verification by email

North Carolina

Verification by email

North Dakota

None

Ohio

https://www.supremecourt.ohio.gov/doc
s/JCS/interpreterSvcs/
Language Services Section » Supreme Court
certification/roster.pdf
of Ohio

Language Access & Court Interpreters | New
York Courts
Office of Language Access Services | North
Carolina Judicial
Branch
North Dakota Court System - Court
Interpreters

Oklahoma

https://www.oscn.net/static/forms/aoc_f Forms | Certified Courtroom Interpreters
orms/interpreter.asp

Oregon

Oregon Credentialed Court Interpreter
Roster.pdf
Interpreter Roster | Interpreter Program |
Operations | Judicial
Administration | Unified Judicial System
of Pennsylvania

https://www.courts.oregon.gov/languages/Pa
ges/default.aspx
Language Access | Operations | Judicial
Administration |
Unified Judicial System of Pennsylvania

Rhode Island

Not publicly available

Programs and Services

South Carolina

Interpreter Directory - South Carolina
Judicial Branch

Court Access - South Carolina Judicial
Branch

Pennsylvania

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South Dakota

Verification by email

Tennessee

https://tncourts.gov/programs/courtinterpreters/find-courtinterpreter

Language Access Resources | SD Unified
Judicial System | SD
UJS
Court Interpreters | Tennessee Administrative
Office of the
Courts

Texas

Find a Court Interpreter Texas

TJB | Interpretation & Translation

Utah

Find a Court Interpreter

Court Interpreters
Language Access: Interpreters and
Translators | Vermont
Judiciary
https://www.vacourts.gov/courtadmin/aoc/djs/p
rograms/interpreters/home

Vermont

Available upon request

Virginia

Foreign Language Services | Virginia
Court System

Washington

Washington State Courts - Court
Interpreters

Washington State Courts - Court Interpreters

West Virginia

Verification by email

Access to Justice | West Virginia Judiciary

Wisconsin

https://www.wicourts.gov/services/inter Wisconsin Court System - Court services preter/search.htm
For interpreters

Wyoming

Court Interpreter Services - Wyoming
Judicial Branch

Court Interpreter Services - Wyoming Judicial
Branch

District of
Columbia

For Interpreters | District of Columbia
Courts

ADA and Language Accessibility | District of
Columbia Courts

Virgin Islands

Verification by email

https://www.vid.uscourts.gov/interpreterservices

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GR 11.2
CODE OF PROFESSIONAL RESPONSIBILITY FOR
JUDICIARY INTERPRETERS
(a)
Preamble. As officers of the court, interpreters must maintain high standards of
professional conduct that promote public trust and confidence in the administration of
justice. The purpose of this code is to establish standards of conduct that interpreters
must abide by in order to preserve the integrity and independence of the judicial system.
It establishes core ethical principles of interpreter conduct in all aspects of their
profession.
(b)
Scope. The text of each rule is authoritative, while the comments provide
important guidance in understanding the rules.
(c)
Applicability. All interpreters serving in the judicial system must abide by this
Code of Professional Responsibility.
(d)
Compliance. Interpreters who violate the provisions of this code are subject to
disciplinary action and/or any other sanction that may be imposed by law.
(e)

Definitions.

(1)

Source language – the original language of the writer or speaker.

(2)

Target language – the language of the receiving reader or listener.

(3)

Register – the degree of formality of language.

(4)
Sight translation – the rendering of a written document directly into a spoken or
signed language, not for purposes of producing a written document.
(f) Canons.
(1) Accuracy. Interpreters must reproduce in the target language the closest natural
equivalent of the source language message without altering it by means of addition,
omission, or explanation.
Comment
(1)[1] Interpreters are obligated to conserve every element of information contained in the
source and target languages. In doing so, they fulfill a twofold duty: (1) to ensure that
legal proceedings reflect in English precisely what is said or signed by limited English
proficient individuals and (2) to place limited English proficient individuals on an equal
linguistic footing with those who are fully proficient in English.

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(1)[2] Interpreters are required to apply their best skills and judgment to render, as
faithfully as reasonably possible, the meaning of what is said or signed, preserving the
style and register of speech, and the ambiguities and nuances of the source statement.
Everything must be interpreted, even if it appears nonresponsive, obscene, rambling, or
incoherent. This includes false starts and apparent misstatements. However, verbatim,
"word for word," or literal interpretation is inappropriate if it distorts the meaning of what
is said or signed.
Spoken language interpreters should convey the speaker’s tone without reenacting or
mimicking the speaker’s emotions or dramatic gestures. Sign language interpreters, on
the other hand, should employ visual cues, including facial expressions, body language,
and hand gestures, which are structural elements of sign languages.
(1)[3] Interpreters have the duty to immediately address any situation or condition that
impedes their ability to accurately interpret. Examples include, but are not limited to,
linguistic ambiguities, unfamiliar terms, inaudible speech, inability to see a speaker,
background noise or distraction, and pace of speech.
(1)[4] The obligation to preserve accuracy includes the interpreter’s duty to correct any
substantive errors of interpretation as soon as possible. Interpreters should be prepared
to accept feedback, including challenges to their interpretation, in a professional and
impersonal manner.
(1)[5] Due to the difficulty of extemporaneously interpreting recordings (such as 911 calls),
the practice of doing so in court should be discouraged at all times. Rather, proper
transcripts and corresponding written translations should be prepared in advance. If
ordered by the presiding officer to interpret a recording in court, interpreters should
comply but state, on the record, that they cannot guarantee the accuracy of the
interpretation.
(1)[6] Interpreters should refrain from sight translating documents for the record. Rather,
written translations of documents offered in an evidentiary hearing should be prepared in
advance. If ordered by the presiding officer to sight translate such documents, interpreters
should comply but state, on the record, that they cannot guarantee the accuracy of the
sight translation.
(1)[7] The ethical responsibility to interpret accurately includes being prepared for
assignments. Interpreters are encouraged to obtain documents and other information
necessary to familiarize themselves with the nature and purpose of an assignment. Prior
preparation is described below; it is especially important when testimony or documents
include highly specialized terminology and subject matter.
Preparation may include but is not limited to:

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(i)
reviewing relevant documents, such as criminal complaints, police reports, briefs,
witness lists, jury instructions, prior depositions, etc.;
(ii)
asking interpreters previously involved in the case for information on language use
or style; or
(iii)

asking attorneys involved in the case for additional relevant information.

(2) Competence. Interpreters must not knowingly accept any assignment beyond their
skill level. If at any point, before or during an assignment, they have reservations about
their ability to satisfy an assignment competently, they must immediately disclose this to
all parties and, if applicable, to the court.
In their professional capacity, interpreters must not give legal or other advice or engage
in any activity that may be construed as a service other than interpreting or translating.
Comment
(2)[1] Interpreters are duty bound to inquire about the assignment in advance and assess
their competence to render services.
(2)[2] Interpreters are not qualified to give written or oral counsel about a legal matter that
could affect the rights and responsibilities of the person receiving the advice. GR 24 sets
forth what constitutes the practice of law.
(2)[3] Interpreters should maintain and expand competence in their field through
professional development. Professional development includes steady practice,
professional training, ongoing education, terminology research, regular and frequent
interaction with colleagues and specialists in related fields, and staying abreast of new
technologies, current issues, laws, policies, rules, and regulations that affect their
profession.
(2)[4] Interpreters should know and follow established protocols for delivering interpreting
services. When speaking in English, interpreters should speak at a volume that enables
them to be heard throughout the courtroom. They should interpret in the first person and
refer to themselves in the third person.
(3) Honesty and Integrity. Interpreters have an inviolable duty to provide honest services
in which their behavior upholds the values outlined in this code. They must accurately
represent their credentials, training, and relevant experience. Interpreters must not
engage in conduct that impedes their compliance with this code or allow another to induce
or encourage them to violate the law or this code.

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Comment
(3)[1] It is essential that interpreters present a complete and truthful account of their
credentials, training, and relevant experience prior to an assignment so that their ability
to satisfy it competently can be fairly evaluated.
(4) Impartiality and Neutrality. Interpreters must faithfully render the source message
without allowing their own views to interfere. They must refrain from conduct that may
give an appearance of bias and must disclose any real or potential conflict of interest to
all parties and the court, if applicable, as soon as they become aware of it.
Comment
(4)[1] Interpreters should strive for professional detachment. They should uphold
impartiality by avoiding verbal and nonverbal displays of personal attitudes, prejudices,
emotions, or opinions. Interpreters must faithfully render all statements, even those they
find personally objectionable, without allowing their own views or opinions to interfere.
(4)[2] As officers of the court, interpreters serve the court and the public, regardless of
whether publicly or privately retained. Interpreters must uphold neutrality by avoiding any
behavior that creates the appearance of favoritism toward anyone. Interpreters should
maintain professional relationships with persons using their services, discourage
personal dependence on the interpreter, and avoid participation in the proceedings in any
capacity other than providing interpreter services. During the course of the proceedings,
interpreters should not converse with parties, witnesses, jurors, attorneys, or friends or
relatives of any party, except in the discharge of their official functions.
(4)[3] Interpreters must not serve in any matter in which they have an interest, financial
or otherwise, in the outcome, unless a specific exception is allowed by the judicial officer
for good cause and noted on the record. Interpreters must not solicit or accept gifts or
gratuities from any of the parties, even as a social courtesy, in order to maintain the
appearance of neutrality. Interpreters must disclose to the parties and/or the court any
circumstance that creates a potential conflict of interest, including but not limited to the
following:
(i)
the interpreter is a friend, associate, or relative of a party, witness, victim, or
counsel;
(ii)
the interpreter or the interpreter’s friend, associate, or relative has a financial
interest in the case at issue, a shared financial interest with a party to the proceeding, or
any other interest that might be affected by the outcome of the case;
(iii)
the interpreter has served in an investigative capacity for any party involved in the
case;

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(iv)
the interpreter has previously been retained by a law enforcement agency to assist
in the preparation of the criminal case at issue;
(v)

the interpreter is an attorney in the case at issue; or

(vi)

the interpreter has previously been retained for employment by one of the parties.

The existence of any one of the abovementioned circumstances should be evaluated by
the parties and the court but should not automatically disqualify an interpreter from
providing services. If an actual or perceived conflict of interest exists, the appropriate
authorities should determine whether it is appropriate for the interpreter to withdraw based
on the totality of the circumstances.
(5) Confidentiality. Interpreters must not divulge privileged or other confidential
information obtained in their professional capacity. They must refrain from making any
public statement on matters in which they serve.
Comment
(5)[1] Privileged communications take place within the context of a protected relationship,
such as that between an attorney and client, a husband and wife, a priest and penitent,
and a doctor and patient. The law often protects against forced disclosure of such
conversations. Interpreters are bound to maintain the confidentiality of all privileged
communications.
(5)[2] Interpreters are also routinely privy to communications that, while not necessarily
privileged by law, are conveyed in confidence. In order to preserve the integrity of the
judicial process, interpreters have an ongoing duty to refrain from disclosing information
obtained in their professional capacity. This duty is consistent with CJC 2.10.
[Adopted effective November 17, 1989. Original Rule 11.1 was renumbered as Rule 11.2
effective September 1, 2005; Amended effective April 26, 2016; December 18, 2018;
March 12, 2019.]

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City of Black Diamond
Post Office Box 599
Black Diamond, WA 98010

CITY COUNCIL
AGENDA BILL

ITEM INFORMATION
SUBJECT:
Professional services agreement with
Parametrix, Inc. to update the City’s
Stormwater Management Action Plan
(SMAP).
Cost Impact (see also Fiscal Note): $28,690
Fund Source: Stormwater Capacity Grant
Timeline: Now through April 2027

Agenda Date: September 15, 2026
Mayor John Adler
City Administrator Kevin O’Neill
City Attorney David Linehan
City Clerk – Brenda L. Martinez
Com Dev – Hal Hart
Finance – Xavier Mason
MDRT/Ec Dev – Michelle Wright
Police – Chief Kiblinger
Public Works – Scott Hanis
Court – Tawnya Parks

Agenda Placement:
Mayor
Two Councilmembers
Committee Chair
Attachments: Resolution; Professional Services Agreement; Scope of Work
SUMMARY STATEMENT:

AB26-118

X

City Administrator

The City has stormwater grant funds to enlist the services of Parametrix in drafting an update
to the City’s Stormwater Management Action Plan (SMAP). This Action Plan update is required
as part of the City’s National Pollutant Discharge Elimination System (NPDES) permit which is
administered by the Department of Ecology.
This project requires specialized engineering expertise in developing plans of this scope and
complexity. Parametrix was selected as a candidate based on their proven track record of
delivering these plans to a high standard, as well as their extensive expertise supporting similar
efforts for a number of other jurisdictions. Parametrix also did the engineering and analysis for
the City’s original SMAP report in 2023.
The proposed cost of these services appears reasonable considering the scope of work and
necessary levels of analysis when compared to the SMAP study Parametrix conducted in 2023.
FISCAL NOTE (Finance Department):
The necessary funding for this project of $28,690.00 will be covered by the Stormwater
Capacity Grant. There will be a budget amendment at year end to account for the expenditure.
COUNCIL COMMITTEE REVIEW AND RECOMMENDATION:
Public Works Committee recommends taking to full Council for consideration on the consent agenda.

RECOMMENDED ACTION: MOTION to adopt Resolution No. 26-1775 authorizing the

Mayor to execute a Professional Services Agreement with Parametrix, to
provide the City’s Stormwater Management Action Plan (SMAP).

RECORD OF COUNCIL ACTION
Meeting Date
September 15, 2026

Action

Vote

RESOLUTION NO. 26-1775
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BLACK DIAMOND, KING COUNTY, WASHINGTON
AUTHORIZING THE MAYOR TO IMPLEMENT A
PROFESSIONAL
SERVICE
AGREEMENT
WITH
PARAMETRIX, INC. TO DRAFT AN UPDATE TO THE
CITY’S STORMWATER MANAGAMENT ACTION PLAN
(SMAP)
WHEREAS, the City is required to update our Stormwater Management Action Plan
(SMAP) as part of its National Pollutant Discharge Elimination System (NPDES) Permit
from the Department of Ecology; and
WHEREAS, the project requires specialized watershed and stormwater engineering
analysis; and
WHEREAS, the City has grant funds for the expense of this project; and
WHEREAS, the City’s Public Works Department recommends authorizing a
Professional Services Agreement with Parametrix, Inc. to assist with this project;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND,
WASHINGTON, DOES RESOLVE AS FOLLOWS:
Section 1. The Mayor is hereby authorized to execute a Professional Services
Agreement with Parametrix, Inc. to provide the City’s Stormwater Management Action
Plan and related services.
PASSED BY THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND,
WASHINGTON, AT A REGULAR MEETING THEREOF, THIS 15TH DAY OF
SEPTEMBER, 2026.
CITY OF BLACK DIAMOND:
________________________________
John Adler, Mayor
Attest:
____________________________
Brenda L. Martinez, City Clerk

CITY OF BLACK DIAMOND PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (the or this “Agreement”), for reference purposes
only, is dated September________, 2026 and is entered into by and between
CITY OF BLACK DIAMOND, WASHINGTON (the “City”)
Physical Address: 24301 Roberts Drive
Mailing Address: PO Box 599
Black Diamond, WA 98010
Contact:
Phone: 360-851-4500

Fax: 360-851-4501

and
Parametrix, Inc
____________________________ (“Consultant”)
____________________________
____________________________
Contact: Nikki Redden
Fax: 800-542-6353

Phone: 206-649-9262

Tax Id No.: ________________________
for professional services in connection with the
Title
Update the City of Black Diamond’s Stormwater Management Plan
TERMS AND CONDITIONS
1.

Services by Consultant

1.1
Consultant shall perform the services described in the Scope of Work attached to
this Agreement as Exhibit "A." The services performed by Consultant shall not exceed the
Scope of Work nor shall the Consultant be entitled to a greater amount of compensation as that
provided in this Agreement without the prior written authorization of the City.
1.2
The City may from time to time require changes or modifications in the Scope of
Work. Such changes, including any decrease or increase in the amount of compensation, shall
be agreed to by the parties and incorporated in written amendments to this Agreement.
1.3
Consultant represents and warrants that it, its staff to be assigned to the Project,
and its subconsultants and their staff have the requisite training, skill, and experience necessary
to provide the services required by this Agreement and are appropriately accredited and licensed
by all applicable agencies and governmental entities. Services provided by Consultant and its
subconsultants under this Agreement will be performed in a manner consistent with that degree

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of care and skill ordinarily exercised by members of the same profession currently practicing in
similar circumstances.
2.

Schedule of Work

2.1
Consultant shall perform the services described in the Scope of Work Exhibit “A”
in a timely manner with the goal to following City review and approval. Delays due to unforeseen
circumstances (i.e., additional meetings or extended review periods) may result in additional effort
necessary for project management and administration.

2.2
Consultant will work within the project schedule and will proceed with the work
and shall assure that it, and its subconsultants, will have adequate staffing at all times in order to
complete the Scope of Work in a timely manner. If factors beyond Consultant's control that
could not have been reasonably foreseen as of the date of this Agreement cause delay, then the
parties will negotiate in good faith to determine whether an extension is appropriate. The
Consultant shall provide the City with written notice of any delay, or potential delay, that may
trigger the need for a time extension within 3 business days after the Consultant becomes aware
of the delay or potential delay.
2.3
agreement.

Consultant is authorized to proceed with services upon execution of this

3.

Compensation



LUMP SUM. Compensation for the services provided in the Scope of Work shall be a
Lump Sum of $______28,690.00___________.



TIME AND MATERIALS NOT TO EXCEED. Compensation for the services provided
in the Scope of Work shall not exceed $28,690.00without the written authorization
of the City and will be based on the list of billing rates and reimbursable expenses
attached hereto as Exhibit “C.”
TIME AND MATERIALS. Compensation for the services provided in the Scope of
Work shall be on a time and materials basis according to the list of billing rates and
reimbursable expenses attached hereto as Exhibit “C.”

4.

Payment

4.1
Consultant shall maintain time and expense records and provide them to the City
monthly, along with monthly invoices, in a format acceptable to the City for work performed to
the date of the invoice.
4.2
All invoices shall be paid by City warrant within sixty (60) days of actual receipt
by the City of an invoice conforming in all respects to the terms of this Agreement.

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4.3
Consultant shall keep cost records and accounts pertaining to this Agreement
available for inspection by City representatives for three (3) years after final payment unless a
longer period is required by a third-party agreement. Consultant shall make copies available to
the City on request.
4.4
If the services rendered do not meet the requirements of the Agreement,
Consultant will correct or modify the work to comply with the Agreement. The City may
withhold payment for such work until the work meets the requirements of the Agreement.
5.

Discrimination and Compliance with Laws

5.1
Consultant agrees not to discriminate against any employee or applicant for
employment or any other person in the performance of this Agreement because of race, creed,
color, national origin, marital status, sex, age, disability, or other circumstance prohibited by
federal, state, or local law or ordinance, except for a bona fide occupational qualification.
5.2
Consultant and its subconsultants shall comply with all federal, state, and local
laws and ordinances applicable to the work to be done under this Agreement.
5.3
Any violation of this Section 5 shall be a material breach of this Agreement and
grounds for immediate cancellation, termination, or suspension of the Agreement by the City, in
whole or in part, and may result in Consultant’s ineligibility to conduct further work for the
City.
6.

Suspension and Termination of Agreement

6.1
The City reserves the right to terminate or suspend this Agreement at any time,
without cause, by giving Consultant notice in writing ten (10) days prior to the termination or
suspension date. In the event of termination, all finished or unfinished reports, or other material
prepared by Consultant pursuant to this Agreement, shall be submitted to the City. In the event
the City terminates this Agreement prior to completion without cause, Consultant may complete
such analyses and records as may be necessary to place its files in order. Consultant shall be
entitled to compensation for any satisfactory work completed on the Project prior to the date of
suspension or termination.
6.2
Any notice from the City to Consultant regarding the suspension of this
Agreement shall specify the anticipated period of suspension. Any reimbursement for expenses
incurred due to the suspension shall be limited to Consultant's reasonable expenses and shall be
subject to verification. Consultant shall resume performance of services under this Agreement
without delay when the suspension period ends.
7.

Standard of Care

7.1
Consultant represents and warrants that it has the requisite training, skill,
and experience necessary to provide the services under this Agreement and is appropriately

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accredited and licensed by all applicable agencies and governmental entities. Services
Consultant provides under this Agreement will be performed in a manner consistent with that
degree of care and skill ordinarily exercised by members of the same profession currently
practicing in similar circumstances. Consultant understands and agrees that the services rendered
pursuant to this Agreement are for the sole exclusive benefit of the City and that no third party
shall have authority to authorize, approve, direct or control any of the services rendered to the
City pursuant to this Agreement.
8.

Ownership of Work Product

8.1
Ownership of the originals of any reports, data, studies, surveys, charts, maps,
drawings, specifications, figures, photographs, memoranda, and any other documents which are
developed, compiled, or produced as a result of this Agreement, whether or not completed, shall
be vested in the City and shall be submitted to the City upon termination of this Agreement. Any
reuse of these materials by the City for projects or purposes other than those that fall within the
scope of this Agreement and the Project to which it relates, without written concurrence by
Consultant, will be at the sole risk of the City.
8.2
The City acknowledges Consultant’s documents as instruments of professional
service. Nevertheless, the documents prepared under this Agreement shall become the property
of the City upon completion of the work. The City agrees to hold harmless and indemnify
Consultant against all claims made against Consultant for damage or injury, including defense
costs, arising out of the City’s reuse of such documents beyond the use for which they were
originally intended without the written authorization of Consultant.
8.3
Methodology, software, logic, and systems developed under this Agreement are
the property of Consultant and the City and may be used as either Consultant or the City see fit,
including the right to revise or publish the same without limitation.
9.

Indemnification/Hold Harmless

9.1
Consultant shall indemnify, and hold the City, its officers, employees, agents and
volunteers harmless from all reasonable claims, injuries, damages, losses or suits including
attorney fees, arising directly or indirectly out of or resulting from the negligent acts, errors, or
omissions of Consultant or its sub-consultants in performance of this Agreement, except for
injuries and damages caused by the concurrent negligence of the City. Provided, however, that
if any such claims, injuries, damages, losses or suits result from the concurrent negligence of
Consultant and the City, and the City’s officers, employees, agents or volunteers it is expressly
agreed that Consultant’s obligations and indemnity under this paragraph shall be effective only
to the extent of Consultant’s negligence.
10.

Insurance

10.1 Consultant shall procure and maintain for the duration of the Agreement, and
shall provide proof satisfactory to the City that such insurance is procured and maintained by
each of its subconsultants, insurance against claims for injuries to persons or damage to
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property which may arise from or in connection with the performance of the work hereunder by
Consultant, its agents, representatives, employees or subconsultants.
10.2
insurance:

Consultant shall procure and maintain the following types and amounts of

a.
Automobile Liability insurance covering all owned, non-owned, hired, and
leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01
or a substitute form providing equivalent liability coverage. If necessary, the policy shall be
endorsed to provide contractual liability coverage. This insurance shall have a minimum
combined single limit for bodily injury and property damage of $1,000,000 per accident.
b.
Commercial General Liability insurance shall be written on ISO
occurrence form CG 00 01 or a substitute form providing equivalent liability coverage and shall
cover liability arising from premises, operations, independent contractors, personal injury, and
advertising injury. This insurance shall be written with limits no less than $1,000,000 each
occurrence, $2,000,000 general aggregate.
c.
Workers’ Compensation coverage as required by the Industrial Insurance
laws of the State of Washington.
d.
Professional Liability insurance appropriate to Consultant’s profession,
with limits no less than $1,000,000 per claim.
10.3 The Automobile Liability, Commercial General Liability, and Professional
Liability insurance policies are to contain, or be endorsed to contain, the following provisions:
a.
Consultant’s insurance coverage shall be primary insurance vis-à-vis the
City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be
excess over Consultant’s insurance and shall not contribute with it.
b.
Consultant’s insurance shall be endorsed to state that coverage shall not be
cancelled, except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given to the City.
10.4 The City shall be named as an additional insured under Consultant’s Automobile
Liability and Commercial General Liability insurance policies with respect to the work to be
performed for the City pursuant to this Agreement.
10.5
than A:VII.

Insurance shall be placed with insurers with a current A.M. Best rating of not less

10.6 Declaration pages issued by the insurance carriers for the policies mentioned in
this Section 10 showing such insurance to be in force shall be filed with the City not less than ten
(10) days following both parties signing this Agreement and before commencement of the work.
In addition, the City may request, in writing, a full copy from Consultant of any insurance policy
Consultant must procure and maintain pursuant to this Agreement and Consultant must provide
such copy to the City within ten (10) days of Consultant’s receipt of the City’s request. Any
policy or required insurance written on a claims-made basis shall provide coverage as to all
claims arising out of the services performed under this Agreement and for three (3) years

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following completion of the services to be performed. It shall be a material breach of this
Agreement for Consultant to fail to procure and maintain the insurance required by this Section
10 or to provide the proof of such insurance to the City as provided for in this Agreement.
11.

Assigning or Subcontracting

11.1 Consultant shall not assign, transfer, subcontract, or encumber any rights, duties,
or interests accruing from this Agreement without the express prior written consent of the City,
which consent may be withheld at the sole discretion of the City.
12.

Independent Contractor

12.1 Consultant and its subconsultants are and shall be at all times during the term of
this Agreement, independent contractors.
13.

Notice

13.1 All notices required by this Agreement shall be considered properly delivered
when personally delivered, when received by facsimile, or on the third day following mailing,
postage prepaid, certified mail, return receipt requested to:
City:
City of Black Diamond
P.O. Box 599
Black Diamond, WA 98010
Fax: 360-851-4500
With a copy to:

Consultant:

14.

City Attorney
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
Fax:

Disputes

14.1 Any action for claims arising out of or relating to this Agreement shall be
governed by the laws of the State of Washington. Venue shall be in King County Superior
Court, Kent, Washington.

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15.

Attorney Fees

15.1 In any suit or action instituted to enforce any right granted in this Agreement, the
substantially prevailing party shall be entitled to recover its costs, disbursements, and
reasonable attorney fees from the other party.
16.

General Administration and Management on Behalf of the City

16.1 The City Administrator for the City, or his/her designee (the contract
Administrator) shall review and approve Consultant's invoices to the City under this Agreement
and shall have primary responsibility for overseeing and approving work or services to be
performed by Consultant. . Consultant understands and agrees that any and all work to be
performed pursuant to this Agreement must be approved in advance by the contract
Administrator. No third party, including the project applicant, shall have any direct control or
influence over the services performed under this Contract.
17.

Extent of Agreement/Modification

17.1 This Agreement, together with any attachments or addenda, represents the entire
and integrated Agreement between the parties hereto and supersedes all prior negotiations,
representations, or agreements, either written or oral. This Agreement may only be amended,
modified, or added to by written instrument properly signed by both parties. The parties
acknowledge the general contract rule that a clause in a contract, such as this one, prohibiting
oral modifications is itself generally subject to oral modification. However, in order to ensure
certainty as to the terms and conditions of this Agreement, the parties waive this general
contract rule.
18.

Conflict of Interest; Non-Collusion

18.1 No officer, employee or agent of the City, nor any member of the immediate
family of any such officer, employee or agent, shall have any personal financial interest, direct
or indirect, in this Contract, either in fact or in appearance. The Consultant shall comply with
all federal, state, and City conflict of interest laws, statutes and regulations. The Consultant
represents that the Consultant presently has no interest and shall not acquire any interest, direct
or indirect, in the project to which this Contract pertains which would conflict in any manner or
degree with the performance of the Consultant’s services and obligations hereunder. The
Consultant further covenants that, in performance of this Contract, no person having any such
interest shall be employed by the Consultant. The contractor’s officers, employees or agents
shall neither solicit nor accept gratuities, favors or anything of monetary value from the project
applicant or any affiliate or agent of the project applicant.
18.2 The Contractor warrants and represents that the Contractor has not, nor has any
other member, employee, representative, agent or officer of the Contractor, entered into or

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offered to enter into any combination, collusion or agreement with any person or entity to
receive or pay, and that he has not received or paid, any sum of money or other consideration
for the execution of this Contract other than the consideration offered pursuant to the terms and
conditions hereof.

CITY OF BLACK DIAMOND

CONSULTANT

By: _________________________
John Adler
Its: Mayor

By: __________________________
Printed Name: _________________
Its: __________________________

Date: ___________________

Date: ___________________

Attest:
By:
_______________________________
Brenda L. Martinez
City Clerk
Approved as to form:

By:
_______________________________
City Attorney

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Exhibit B

City of Black Diamond On-Call Task Request
Task Name:

City Staff Contact: Scott Hanis
Stormwater Management Action Plan
Phone: 360-851-4521

Consultant Project No.:

234-3043-040-29

Consultant Contact Name:

Nicole Redden

Consultant Phone:

206-649-9262

Consultant Fax:

800-542-6353

Date:

08-18-2026

Fax: 360-851-4501

Scope of Task Request Including Deliverables and Schedule
Please see scope and budget attached.

Budget Estimate: $28,690.00
The budget estimate has been set at a reasonable amount for the anticipated level of assistance. Parametrix will notify
City staff if requested work under this task order will exceed the authorized budget amount. The total budget estimate
includes applicable administrative costs and reimbursable expenses.

Task Request Approval:
City of Black Diamond:
Written Name

Title

Signature

Date

Austin Fisher

Vice President

Written Name

Title

Signature

Date

Consultant:

*Costs are billed on a time and materials basis, the Consultant shall notify the City should additional funds be necessary to complete
the task order. Additional work beyond that which is ordered by the City shall not commence until written notification is received from
the City.

Scope of Work

City of Black Diamond
Stormwater Management Action Plan
2025-2029 Western Washington Phase II Municipal Stormwater Permit

Introduction
The City of Black Diamond (City) is contracting with Parametrix under the City of Black Diamond
Professional Services Agreement for Civil Engineering Services for Stormwater, Streets, and
Transportation, and City Parks, to support preparation of a new Stormwater Management Action Plan
(SMAP) in accordance with the requirements of the 2025–2029 Western Washington Phase II
Municipal Stormwater Permit. The City will continue to focus on its previously selected high-priority
basin (Rock Creek Northeast) and will update the existing SMAP to satisfy permit requirements.
Parametrix previously supported the City's SMAP development effort in 2022 and 2023, including
preparation of the Receiving Water Assessment, Receiving Water Prioritization, and the final SMAP
for the Rock Creek Northeast Catchment Area. Through that effort, receiving waters and drainage
basins throughout the City were evaluated, catchments were prioritized using watershed condition,
water quality, stormwater management coverage, development potential, and community
considerations, and Rock Creek Northeast was selected as the City's high-priority basin. The resulting
SMAP identified a suite of stormwater facility retrofit projects, land management strategies, and
stormwater program actions intended to improve and protect water quality within the basin,
including the 2nd Avenue Stormwater Park, Morgan and Baker Street retrofit, and Railroad Avenue
Pond projects.
This update will build upon the previous planning effort by reviewing implementation progress,
incorporating updated watershed and stormwater system information, evaluating the status of
previously identified projects and actions, and preparing an updated SMAP that satisfies current
permit requirements while maintaining focus on the Rock Creek Northeast catchment area.

Task 01 – Project Management
Objectives
Provide overall project management of the consultant contract with the City.
This task includes general management functions that include the following:


Project Planning – Document and communicate the scope of work, budget, and schedule as
a road map for the project team. Coordinate project team and issues throughout the project.



Budget and Schedule Tracking – Track the project budget using Parametrix in-house tools to
verify that progress is keeping pace with spending.



Bi-weekly design team meetings with an issues list to document project design decisions.



Monthly Progress Reports – Prepare a monthly invoice for services performed by Parametrix.



Correspondence – Prepare written correspondence as needed to document project
management issues and/or concerns.

City of Black Diamond
Stormwater Management Action Plan
2025-2029 Western Washington Phase II Municipal
Stormwater Permit

1

August 2026

Scope of Work

Deliverables
Deliverables for this task include:


Monthly progress reports enclosed with invoices.

Assumptions
Assumptions for this task include:


Project duration is 6 months.



Budget assumes six monthly 30-minute virtual meetings with the City and two Parametrix
staff.

Task 02 – SMAP Basin Review and Data Update
Review the existing SMAP basin, identify changes since the previous SMAP, and update watershed
information necessary to support the revised SMAP.

Approach
Kickoff Meeting: Parametrix will prepare for and facilitate a project kickoff meeting. Parametrix will
lead the meeting, which will include introduction of the project team, definition of the project
objectives, and review of the scope of work and schedule milestones.
Data Collection: Parametrix will obtain Geographic Information System (GIS) data updated by the City
since the previous SMAP and comprehensive plan work completed, if any, to complete the basin
information collection elements to conduct the SMAP and update the receiving water assessment
and prioritization documents. A meeting with the City and Parametrix staff will occur to review any
changes that occurred within the basin since the previous SMAP submittal and confirm existing GIS
data is still accurate. Examples of available data to be collected or confirmed are:


Watershed catchment delineations



Drainage system maps



Stormwater treatment coverage



Impervious surfaces



Vacant land maps (if available)



Future proposed land use

Deliverables
Deliverables for this task include:


Agenda for kickoff meeting.



Meeting notes from the data collection coordination meeting.

Assumptions
Assumptions for this task include:

City of Black Diamond
Stormwater Management Action Plan
2025-2029 Western Washington Phase II Municipal
Stormwater Permit

2

August 2026

Scope of Work


The City will provide Parametrix with all needed information in electronic format via email,
FTP site transfer, or file share platform such as OneDrive/SharePoint or ProjectWise.



The City will provide the following information for review:
→ GIS data described above.
→ Most recent NPDES Annual Reports and Stormwater Management Program documents.
→ Water quality data from City-led or available surface water or stormwater monitoring
programs.
→ Existing modeling data on the City’s stormwater system and drainage basins within the
City, if available.
→ Results of any stormwater system needs evaluations, including map of problem areas
and basic project sheets developed to-date.



Up to four Parametrix staff members will participate in the virtual kickoff meeting. One onehour meeting is assumed.



The City will identify and invite other City staff to participate in the kickoff meeting. The City
will coordinate the kickoff meeting time and have key City staff at the meeting based on
planned topics.



Up to four Parametrix staff members will participate in the virtual data collection meeting.
One one-hour meeting is assumed.



The City will request available information from other public entities, such as WRIAs, King
County, the U.S. Army Corps of Engineers, or Washington State Department of Ecology, as
needed, and provide to Parametrix.



Parametrix effort for this task is limited to the budgeted level of effort and assumes no
substantial revisions to basin boundaries, receiving water assessment results, basin
prioritization analyses, or watershed modeling.

Task 03 – SMAP Update and Action Evaluation
Prepare an updated Stormwater Management Action Plan (SMAP) for the Rock Creek Northeast
Catchment Area that satisfies the requirements of the 2025–2029 Western Washington Phase II
Municipal Stormwater Permit and documents updated implementation actions for the basin.

Approach
Parametrix will perform the following services:


Coordinate with City staff to document implementation progress for actions identified in the
previous Rock Creek Northeast SMAP.



Document the basis for continued use of the Rock Creek Northeast Catchment Area as the
City's priority basin.



Evaluate retrofit opportunities, including transportation-related runoff retrofit opportunities
where applicable through a desktop evaluation.



Develop planning-level descriptions and cost opinions for up to two new or revised priority
projects.

City of Black Diamond
Stormwater Management Action Plan
2025-2029 Western Washington Phase II Municipal
Stormwater Permit

3

August 2026

Scope of Work


Review previously identified stormwater management actions, land management strategies,
programmatic actions, and long-range planning recommendations, and update them as
necessary to reflect implementation status, current conditions, and permit requirements.



Update implementation schedules, potential funding sources, adaptive management
recommendations, and future assessment recommendations, as needed.



Prepare draft and final SMAP documents incorporating one round of City review comments.

Deliverables
Deliverables for this task include:


Draft SMAP report for City review.



Final SMAP report in Microsoft Word and PDF formats.

Assumptions
Assumptions for this task include:


Work will focus on desktop evaluation.



Field investigations will be performed by City staff, if needed.



Rock Creek Northeast Catchment Area remains the City’s highest-priority SMAP basin.



Existing receiving water assessment and prioritization documents will be used as background
information and will not be substantially revised.



No basin re-prioritization, public outreach, Planning Commission presentations, or City
Council presentations are included.



The City will provide one consolidated set of comments on the draft report within three
weeks.



Up to two new or revised project concepts are included.

City of Black Diamond
Stormwater Management Action Plan
2025-2029 Western Washington Phase II Municipal
Stormwater Permit

4

August 2026

Task
01
01
02
02
03
03

8/18/2026

Subtask
01
01
01

Description
Project Management
Project Management
SMAP Basin Review and Data Update
SMAP Basin Review and Data Update
SMAP Update and Action Evaluation
SMAP Update and Action Evaluation
Labor Totals:
Totals:

162
$28,690.00

Project Total

$28,690.00

5
5
2
2
10
10
17
$5,185.00

0
20
20
0

20
$3,000.00

155.00 $ 150.00 $

11
11
8
8
20
20

0

0

8
8
60
60

0

39
$7,605.00

68
$10,200.00

145.00 $

Jean Johnson

150.00 $

Sr Contract Administrator

Lauren Jones
Project Controls Specialist

195.00 $

Juliann Manke

Debbie Featherston
Publications Supervisor

150.00 $

Sr. Project Accountant

Analise Chiu
Engineer I

Fully Burdened Rates: $
Labor Dollars Labor Hours
$5,905.00
31
$5,905.00
31
$6,370.00
38
$6,370.00
38
$16,415.00
93
$16,415.00
93

Nikki Redden
Engineer IV

Parametrix, Inc.
Budget Estimate
Black Diamond On-Call
Task 29

Chad Tinsley

305.00 $

John Featherstone

Sr. GIS Analyst

Black Diamond
554-3043-040
29

Sr. Consultant

Client:
Project No:
Task Order:

170.00

7
7
0

7
7
0

1
1
0

3
3

0

0

0

3
$465.00

7
$1,050.00

7
$1,015.00

1
$170.00

Black Diamond SMAP 2026_Budget 08.18.26.xlsx

City of Black Diamond
Post Office Box 599
Black Diamond, WA 98010

CITY COUNCIL
AGENDA BILL

ITEM INFORMATION
SUBJECT:
Adoption of the City of Black Diamond
Strategic Plan 2027–2031

Cost Impact (see also Fiscal Note):
Fund Source:
Timeline:

Agenda Date: September 15, 2026

AB26-119

Mayor John Adler
City Administrator - Kevin O’Neill
City Attorney David Linehan
City Clerk – Brenda L. Martinez
Com Dev – Hal Hart
Finance – Xavier Mason
MDRT/Ec Dev – Michelle Wright
Police – Chief Kiblinger
Public Works – Scott Hanis
Court – Judge Swain/Tawnya Parks

Agenda Placement:
Mayor
Two Councilmembers
Attachments: Resolution; Proposed Strategic Plan

Committee Chair

X

City Administrator

SUMMARY STATEMENT:
The City of Black Diamond is in a period of significant transition and growth. The Strategic Plan
recognizes the opportunity to strengthen community amenities, support local businesses,
improve infrastructure, and invest in the City’s long-term sustainability while also preparing for
increased demands on City services, facilities, staffing, and systems.
The City engaged Berk Consulting to facilitate development of a Strategic Plan for 2027–2031.
The planning process included input from the public, City leadership, City staff, and elected
officials and was designed to establish a shared direction for the City and identify the actions
necessary to advance that direction.
The proposed Strategic Plan identifies four interconnected priorities for the 2027–2031 period:
1.
2.
3.
4.

Build a Connected and Distinct Community
Provide Parks and Recreation Amenities for Residents and Visitors
Strengthen Black Diamond’s Economic Vitality and Financial Sustainability
Enhance City Capacity and Operations

The plan also establishes a recurring implementation cycle in which Council and staff review
progress, identify priorities, translate those priorities into actions and resource needs,
implement and track those actions, and report progress to the community.
FISCAL NOTE (Finance Department):
COUNCIL COMMITTEE REVIEW AND RECOMMENDATION:
RECOMMENDED ACTION: A MOTION to Approve Resolution No. 26-1776 adopting the

City of Black Diamond Strategic Plan 2027-2031 as the City’s strategic
framework for establishing priorities and guiding City operations, budgeting,
and implementation efforts during the 2027-2031 planning period.
RECORD OF COUNCIL ACTION
Meeting Date
September 15, 2026

Action

Vote

RESOLUTION NO. 26-1776
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BLACK DIAMOND, KING COUNTY, WASHINGTON
ADOPTING THE CITY OF BLACK DIAMOND STRATEGIC
PLAN 2027-2031
WHEREAS, the City of Black Diamond is experiencing significant growth and change
that presents opportunities to strengthen community amenities, support local
businesses, improve infrastructure, and invest in the City's long-term sustainability; and
WHEREAS, continued growth also presents challenges and increased demands on City
services, facilities, staffing, systems, and financial resources; and
WHEREAS, the City Council recognizes the importance of establishing a shared
strategic direction to guide the City's response to growth and changing community
needs; and
WHEREAS, the City engaged Berk Consulting to facilitate the development of a
Strategic Plan for the 2027–2031 planning period, incorporating input and feedback
from City staff; and
WHEREAS, the proposed City of Black Diamond Strategic Plan 2027–2031 establishes
four interconnected priorities:
1. Build a Connected and Distinct Community;
2. Provide Parks and Recreation Amenities for Residents and Visitors;
3. Strengthen Black Diamond’s Economic Vitality and Financial Sustainability; and
4. Enhance City Capacity and Operations; and
WHEREAS, the Strategic Plan establishes desired long-term outcomes and specific
commitments for 2027–2031 intended to provide direction for the City's planning,
budgeting, departmental workplans, operations, and future decision-making; and
WHEREAS, the Strategic Plan provides for regular progress reporting and a formal
implementation update every two years to assess progress and identify priorities and
next steps for the subsequent two-year period; and
WHEREAS, adoption of the Strategic Plan does not itself authorize expenditures or
appropriate funds, and individual actions necessary to implement the Strategic Plan will
be considered through the City's normal legislative, budgeting, contracting, and planning
processes;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND,
WASHINGTON, DOES RESOLVE AS FOLLOWS:
Section 1. The City Council adopts the City of Black Diamond Strategic Plan 2027–
2031 attached hereto as Exhibit A and incorporated herein by this reference, as the
City's strategic framework for the 2027–2031 planning period.

Section 2. The Mayor, City Administrator and City staff are authorized to undertake
appropriate administrative actions to maintain, implement, and report on the Strategic
Plan consistent with the City's adopted budgets, policies, ordinances, and applicable
law.
Section 3. Nothing in this Resolution shall be construed as an appropriation,
authorization of expenditures, approval of a capital project, or authorization to enter into
a contract. Specific actions and expenditures necessary to implement the Strategic Plan
shall be brought forward for consideration through the City's applicable budgetary,
legislative, contracting, and planning processes.
Section 4. The City Administrator shall provide regular progress updates regarding
implementation of the Strategic Plan and shall coordinate a formal implementation
update every two years consistent with the implementation framework established in the
Strategic Plan.
Section 5. This Resolution shall take effect immediately upon its adoption.
PASSED BY THE CITY COUNCIL OF THE CITY OF BLACK DIAMOND,
WASHINGTON, AT A REGULAR MEETING THEREOF, THIS 15TH DAY OF
SEPTEMBER, 2026.
CITY OF BLACK DIAMOND:
________________________________
John Adler, Mayor
Attest:
____________________________
Brenda L. Martinez, City Clerk

City of Black Diamond
Strategic Plan 2027-2031

Setting the Stage for
Purposeful Growth
DRAFT September 9, 2026

Mayor
John Adler
Councilmembers
Dan DalSanto
Tamie Deady
Sara Nielsen
Darcey Peterson
Ryan Reed
Mario Sorci
Jesse Young
Staff
Thank you to the many Black Diamond staff
members who contributed ideas and feedback to
inform the development of this plan.

2200 Sixth Avenue, Suite 1000
Seattle, Washington 98121
(206) 324-8760
www.berkconsulting.com

Helping Communities and Organizations Create Their Best Futures
Brian Murphy | Lead Facilitator
Maddie Immel | Co-Facilitator
Ruby Barnes | Graphic Designer

Black Diamond’s Next Chapter
Black Diamond is entering a period of significant transition. Continued population growth will bring
new opportunities to strengthen community amenities, support local businesses, improve infrastructure,
and invest in our long-term sustainability. At the same time, this growth will create pressure on City
services, facilities, staffing, and systems.
Population growth is already well underway. Black Diamond’s population increased by 60% between
2000 and 2026, making it one of the fastest-growing communities in Washington, according to a 2026
analysis by The Seattle Times.
This Strategic Plan charts a course for Black Diamond's future that embraces the projected growth
while protecting the qualities that make this community special. It focuses on four interconnected
priorities:

▪

Articulating a shared vision for each of the city's distinct features and initiating the land use and
infrastructure planning needed to guide where and how public and private development occurs.

▪

Planning for growth of Black Diamond’s park and recreation amenities.

▪

Advancing the community’s economic and fiscal health.

▪

Strengthening the organizational foundation that will allow the City to deliver on its commitments.

The plan takes a start-with-the-end-in-mind approach. By first sketching the future we want, we can
work backwards to identify the concrete steps needed to get there.

Guiding Themes
The following ideas inform the focus of this plan.

▪

One Black Diamond. As our community grows, we have an opportunity to strengthen connections
across neighborhoods, generations, and areas of town. This includes fostering a shared community
identity and improving physical and social connectivity.

▪

Lead During a Period of Change. Periods of growth and transition require leadership, long-term
thinking, and willingness to take the first step. The City has an important role in setting a vision,
building partnerships, communicating with residents, and proactively preparing for the future rather
than reacting to change after it has happened.

▪

Build Step by Step. Black Diamond cannot accomplish every priority at once. The City will take a
phased approach to implementation, recognizing that investments in staffing, infrastructure, parks,
and services will evolve alongside population growth and available resources.

▪

Collaborate Regionally. Black Diamond’s future is connected to that of the broader region.
Partnerships with Covington, Enumclaw, Maple Valley, and others will be essential to advance
infrastructure, recreation opportunities, and economic development.

Black Diamond Strategic Plan 2027-2031: Setting the Stage for Purposeful Growth | DRAFT September 9, 2026

3

Summary of our Priorities for 2027 to 2031

I.

Build a Connected and Distinct Community

II. Provide Parks and Recreation Amenities for Residents and Visitors
III. Strengthen Black Diamond’s Economic Vitality and Financial Sustainability
IV. Enhance City Capacity and Operations

Black Diamond Strategic Plan 2027-2031: Setting the Stage for Purposeful Growth | DRAFT September 9, 2026

4

I. Build a Connected and Distinct Community
What we’re working toward: 20-year desired outcomes
A strong sense of place reflects a distinctive Black Diamond character as a small, family-friendly town
with a strong connection to our beautiful natural environment. The community is well-planned with
distinct features that include:

▪

A strong gateway along SR-169 that welcomes residents home and visitors to Black Diamond.

▪

A robust network of roads, sidewalks, and trails that facilitates travel across the community.

▪

A distinct, walkable downtown with services and gathering places for residents and visitors.

▪

Celebrated historic assets.

▪

Commercial development that meets residents’ daily needs, serves visitors, and provides space for
small-scale light industrial and manufacturing uses.

▪

Highly functional spaces for community events that build social cohesion and a sense of One Black
Diamond.

▪

A central location for City offices and functions.

Our 2027-2031 commitments
Establish and communicate visions and plans that describe the desired development of key
opportunity areas within Black Diamond, including:


Lake Sawyer



Roberts Drive



Lawson Hills



SR-169 Corridor



Old Town



Ten Trails



Pipeline Road

Update the City’s land use plans, development
regulations, and infrastructure investment
priorities to advance the vision for each
opportunity area.
Develop gathering spaces for community
events and everyday use.
Strengthen the City’s ability to communicate
with residents and establish a strong identity
that conveys Black Diamond’s desired future.

Black Diamond Strategic Plan 2027-2031: Setting the Stage for Purposeful Growth | DRAFT September 9, 2026

5

II. Provide Parks and Recreation Amenities for
Residents and Visitors
What we’re working toward: 20-year desired outcomes
Black Diamond’s robust parks and recreation offerings draw visitors from the region. Each park has a
distinctive flavor and a special feature. Lake Sawyer Regional Park is a well-visited and well-loved
regional asset with open spaces and recreation opportunities. Black Diamond is well-connected to
regional trails and has an interior network of local trails that connect various parts of the community,
including from Lake Sawyer to the new downtown.
A significant portion of the community is preserved as a connected network of open spaces maintained
by City, regional, and homeowner association contributions.

Our 2027-2031 commitments
Establish a vision and clear plan for a robust system of future parks and trail connections.
Develop a shared vision and invest in Lake Sawyer Regional Park to establish it as a major asset to
the community and region.
Explore regional partnerships to provide more recreation options for residents.
Preserve open spaces, wetlands, and riparian buffers as the City develops.

Black Diamond Strategic Plan 2027-2031: Setting the Stage for Purposeful Growth | DRAFT September 9, 2026

6

III. Strengthen Black Diamond’s Economic Vitality and
Financial Sustainability
What we’re working toward: 20-year desired outcomes
Black Diamond features a vibrant economy, with strong local businesses that contribute to a sense of
place and a distinctive Black Diamond character. Residents can meet their daily needs through a mix of
local businesses, regional or national retailers, and professional service providers, including a satellite
hospital or urgent care facility. Visitors have compelling reasons to stop, shop, and eat in Black Diamond.
Economic vibrancy supports the sustainable delivery of high-quality city services.

Our 2027-2031 commitments
Raise community awareness of the City’s financial position and its ability to provide sustainable
municipal services while investing resources in Strategic Plan priorities.
Explore partnerships and programming options to support small business development.
Model the City’s projected revenues and expenditures as it grows to ensure fiscal responsibility
while investing in additional staff and services.

Black Diamond Strategic Plan 2027-2031: Setting the Stage for Purposeful Growth | DRAFT September 9, 2026

7

IV. Enhance City Capacity and Operations

What we’re working toward: 20-year desired outcomes
The City of Black Diamond is a high-performing organization with a strong and positive culture,
opportunities for staff development, and a reputation as a great place to work. It is a mature, missionand data-driven municipal operation with appropriate organizational structure, capacity, and internal
systems. City services are co-located on a new civic campus that enhances services for residents and the
efficiency and effectiveness of staff collaboration.

Our 2027-2031 commitments
Strengthen the City as a data-driven organization, committed to continuous improvement, with
strong internal systems and processes.
Foster strong internal communication and coordination.
Begin planning for a new civic campus.

Black Diamond Strategic Plan 2027-2031: Setting the Stage for Purposeful Growth | DRAFT September 9, 2026

8

Implementing the
Strategic Plan
Black Diamond is committed to keeping the community
informed as it implements the priorities established in this
Strategic Plan. The City will provide regular progress updates
and conduct a formal implementation update every two years.
Each update will assess progress made and identify next steps
for the coming two years.
These implementation steps will shape the City's budget,
departmental workplans, and day-to-day operations, keeping the
Strategic Plan responsive to changing needs and opportunities.

Implementation Roles
▪

City Council guides the strategic direction of the City.

▪

The City Administrator is responsible for maintenance of
and reporting on the Strategic Plan.

▪

The City’s Leadership Team will collectively review progress
and manage implementation.

▪

Leads will be established for each task, along with
supporting roles, resource needs, and target milestones.
This information will be captured in detailed two-year
Implementation Plan.

Implementation Cycle
▪

Review and prioritize. Every two years, Council and staff
review progress and identify priorities for the coming
biennium.

▪

Plan and align. The Leadership Team then translates
priorities into actions, responsibilities, milestones, and
resource needs, which inform the City's budget and
departmental workplans.

▪

Implement and track. Throughout the biennium,
departments advance identified actions and track progress.

▪

Report and adjust. Along the way, the City provides regular
progress updates to the community and adjusts
implementation to reflect progress, lessons learned, and
changing conditions.

Black Diamond Strategic Plan 2027-2031: Setting the Stage for Purposeful Growth | DRAFT September 9, 2026

9

Annual Implementation Cycle

Black Diamond Strategic Plan 2027-2031: Setting the Stage for Purposeful Growth | DRAFT September 9, 2026

10