Cowlitz County reviews water, sewer, stormwater and solid-waste budgets; reserves, ARPA projects highlighted

County staff presented a detailed mid-cycle review of the water, sewer, stormwater and solid-waste funds during the Cowlitz County Board of Commissioners meeting.

Sean Roe, a county finance presenter, told commissioners that year-to-date water and sewer operating revenues are roughly $2.3 million compared with a $2.58 million budget and that about $400,000 in accruals remain to be posted. He said personnel costs have been lower than budgeted because of open FTEs and that supplies include about $330,000 for purchased water and roughly $30,000 for treatment chemicals. "Today, we're here to talk about water, sewer, stormwater, and solid waste for budget review," Roe said.

Commissioners asked about treatment additives and reserve adequacy. A staff member described standard treatment chemicals — "chlorine for treatment" and flocculants for wastewater — and confirmed the county does not add fluoride. Roe reported an operating cash balance of about $2,350,000 and reserves just over $5,300,000 for water/sewer and said staff will review reserve targets as capital planning progresses.

On capital projects, staff said reclassified ARPA receipts (~$3.8 million) were recorded as intergovernmental revenue and that several ARPA-funded projects are moving toward closeout or rebid. Notable projects and funding cited include a Camelot loss-replacement project (ARPA allocation $900,000), the Shadow Mountain extension and pump station (property secured; final EPA grant permitting nearly complete; bid planned for April), and the Riderwood Emergency Water Supply (USDA funding pending; archaeological work underway; April bid planned).

Solid-waste staff reported strong cash and accrual positions but flagged large upcoming transfers and capital needs. The operating fund reported accruals of about $3.8 million and interest income of roughly $398,000 in 2025. Major expense drivers included diesel fuel (~$666,000), rock and gravel (~$378,000), lease payments and vendor payments (including a multi-million-dollar payment to Waste Control). Staff said a 2026 transfer of approximately $9.12 million is expected soon and that the current cash balance (reported at about $13.0 million) will be reduced when those transfers occur. Planned capital work includes a Cell 10 expansion estimated at about $14.5 million, a compactor on order for more than $2 million in 2026, and later rebuilds for compactors.

Staff also reported post-closure and closure funds are funded for projected liabilities; the headquarters closure fund was reported at about $25.5 million with a post-closure balance of roughly $9.0 million. Commissioners expressed concern that state-level policy changes could increase local costs, and staff said the county continues to monitor funding sources and interest income to offset future obligations.

The board closed the budget review portion with no motions recorded on the floor during this presentation. Staff said several items will return for formal action on upcoming agendas, including contract executions and project bids.