Cowlitz County reports $3.6 million general-fund shortfall but flags accruals that could narrow gap

Cowlitz County finance staff reported a year-to-date general-fund deficit of about $3.6 million through November but said several timing items could materially change the final result.

Kathy Funk Baxter, the county's finance director, told the Board of Commissioners that general-fund revenues recorded through the period totaled roughly $54.9 million against about $58.5 million in expenditures. "We're currently sitting at a deficit for general fund about $3,600,000," she said, and noted the report did not yet include some expected accruals.

Those accruals include roughly three months of sales-tax receipts that arrive in arrears and a fourth-quarter landfill rent payment of about $1.8 million; Baxter said those additions were posted after the snapshot was pulled and will reduce the apparent shortfall. She also noted two remaining payroll runs that, when booked, typically change expenditure percentages but did not expect the items to eliminate the deficit entirely.

Other major funds showed mixed results. County Road had year-to-date revenues near $22 million and expenses around $20 million, producing a reported surplus of about $1.4 million; solid-waste operations showed revenues of roughly $22.8 million against significantly higher expenses, producing an account-level deficit the county estimated at about $5.6 million before additional receipts and accruals are posted.

Finance staff emphasized the solid-waste shortfall reflected some higher-than-normal, one-time catch-up expenditures tied to landfill retirement obligations and a larger-than-usual transfer this year related to cell-expansion work. "We knew that we'd be running at a deficit this year based upon that transfer," a county official said, and staff forecast the program should move closer to breakeven in coming years as one-time project costs normalize.

On revenues, property taxes were near 98% of budget year-to-date, and sales tax collections through September were slightly ahead of last year (8.7 vs. 8.5) and at about 76% of the seasonal target. Recording fees and transactions were up versus prior years — the county reported roughly $2.9 million in recording-fee receipts so far — and intergovernmental revenues were slightly above budget.

The county also discussed timing and classification items that will affect final results, such as implementation of new sales-tax categories on certain services and how contractual start dates delay recognition in some cases. Commissioners asked staff to confirm a handful of interlocal and service agreements that affect near-term budgets and to provide updated accruals as they post.

The board did not take any formal budget action during the briefing; commissioners were notified of a public hearing and a finance-related workshop scheduled for the next day.