Washougal reports near break‑even 2024, shifts remaining ARPA funds to Town Center project

Daniel, a city finance presenter, told the Washougal City Council on April 14 that the city’s 2024 finances finished close to budget after accounting for programmed uses of reserves and one‑time items.

The finance presentation said total 2024 revenues were about $19 million and expenditures were roughly $20 million, producing a roughly $1.1 million operating deficit before the programmed use of reserves. Once previously programmed uses of reserves and grant transfers are applied, Daniel said the city finished the year essentially near break‑even and with an ending general fund balance of about $5.6 million.

Daniel emphasized the difference between budgeted uses of reserves and amounts actually transferred: the council had programmed about $2.8 million of reserves for one‑time items (facilities, capital and programmatic uses) but only roughly $1.15 million had been transferred and spent by year‑end. “Only the portions that were spent were transferred,” he said.

Why it matters: council members were focused on structural projections that follow the one‑time uses. Daniel’s long‑range projection showed reserves falling as the city programs ARPA funds and capital projects into 2025 and beyond; the presentation flagged a structural deficit in later years if revenues follow conservative growth assumptions.

Key details and supporting items

- Utility billing and payments: Finance reported 6,220 active utility accounts in 2024 (an increase of about 2.15% from 2023). The billing system generated 36,859 bills and printed 39,496 paper statements, the latter a larger number because landlord/tenant duplicate prints. Daniel said the city is encouraging electronic billing and is exploring incentives to reduce printing and postage costs; “I would actually love to see it below the number above,” he said. The department reported taking in about $13.36 million in payments in 2024, a roughly 3.3% increase from 2023, with about 61% of payments made online (card, portal or automatic bank debit).

- Customer assistance and operations: Water‑meter checks totaled 1,168 in 2024. The city received 35 emergency assistance applications and approved 24 of them; denials included missing income verification or applicants who were later able to make payments.

- Audits, awards and staffing: The finance office received a clean opinion on the 2023 financial and accountability audits, and Daniel said the city recently received the Government Finance Officers Association (GFOA) distinguished budget award for 2024 — Washougal’s tenth year to receive the recognition. The department added one full‑time position in 2024 and filled several accounting roles in December; Daniel noted ongoing recruitment for a utility billing specialist.

- ARPA reallocation and Town Center: Council was shown the programmatic use of American Rescue Plan Act funds. Five projects were previously identified (facilities security wall, Columbia River Veil lighting, the public works operations center, railroad crossing improvements and the Town Center revitalization). Daniel said the first three projects are essentially complete under budget in parts, leaving a balance that the administration proposes to obligate for the Town Center project. He reported the proposed ARPA budget to the Town Center at about $3.886 million and reminded the council the remaining ARPA funds must be spent by Dec. 31, 2026 to avoid repayment to the federal government.

- Capital and utilities: The finance summary included a utilities section noting that water and sewer revenues closely matched budgeted expectations in 2024 but system development charges (SDCs) varied substantially year‑to‑year because of timing of large building permits. The 2024 budget had programmed a large treatment plant upgrade that will shift more spending into 2025.

- Investments and debt: Daniel reviewed the city’s portfolio and said the finance advisor manages a mix of bonds, treasuries and the state LGIP, noting about $22.2 million in longer‑term instrument holdings and interest earnings in 2024.

Council follow‑up and next steps

Council asked for additional detail on why some projects came in under budget and for clearer contingency explanations; Daniel said some projects were conceptualized early during COVID and later went to bid with different market conditions and varying contingencies. He also said the administration will bring LTAC and other fund allocations back for council action in upcoming supplemental budgets.

Ending

Daniel closed the finance portion by saying staff will continue work on enhanced forecasting and the city’s first biannual 2025–26 budget, and that council should expect more detailed funding plans for the Town Center and other capital projects in supplemental budgets later this year.