Pasco finance update: revenues lag seasonally, building permit values down; city wins $3.8M federal grant for Road 76 overpass design and right‑of‑way

Pasco, Wash. — City finance staff on Monday reviewed February monthly and first‑quarter financials and announced a $3.8 million federal grant for preliminary work on the Road 76 overpass.

Interim Director Garcia told the council that taxes typically comprise about 84% of general‑fund revenue and that tax receipts have a two‑month lag (for example, sales tax reflects activity roughly two months earlier). The department remains in a reporting catch‑up phase after year‑end close and expects to issue the March report within weeks.

Building‑permit activity in first quarter showed a comparable permit count to prior years but a lower total value: Garcia said construction value is “28% less than it has been in the past,” mainly because recent years included large industrial projects that skew totals. The finance presentation noted construction activity often picks up in summer months.

At the all‑fund level, utilities showed a significant net positive largely attributable to Local Improvement District 152 in the BCGA area, which the presentation identified as approximately $14 million in activity contributing to the variance. Garcia also flagged timing issues that drive apparent shortfalls in the street fund and ambulance fund early in the year, including a lag in pavement preservation revenue and a billing delay for ambulance collections that staff said has been resolved.

Garcia told council the finance team is monitoring the broader economic picture and possible reductions in federal grant opportunities. “Historically, the city has been very successful in obtaining grants…we’re keeping an eye on that and exploring other funding options,” she said. Staff listed several near‑term priorities including updates to utility and ambulance rates, a public financial dashboard, and development‑service rate reviews.

Separately, staff announced a $3,800,000 award from the Federal Highway Administration’s Surface Transportation Block Grant (STBG) program for design and right‑of‑way work on the Road 76 overpass. The award will fund early phases of a major transportation project; the city staff said a check‑presentation ceremony is scheduled for June 5 at 1:30 p.m. at the Richland Public Library.

Council members asked about potential budget amendments for unanticipated equipment repairs and interpreter services. Garcia said the city adopted a lean baseline budget in the most recent biennium and that staff will try to absorb unexpected costs where possible but will communicate potential amendments promptly.

No formal council action was required at the workshop. Staff said they will circulate March reports and continue monitoring revenues, grant prospects and potential budget amendments.