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County finance director: auditor's office revenues tracking but timing lags complicate year-to-date picture
Summary
Cowlitz County finance staff told commissioners that sales tax is the auditor’s largest single revenue source and that timing of receipts and accounting accruals makes early-year comparisons misleading. Staff also reviewed property-tax collection, intergovernmental revenue from the PUD privilege tax, and personnel and miscellaneous variances.
Cowlitz County Finance Director Kathy Funk Baxter told commissioners Monday that the auditor’s office’s largest revenue source is sales tax, budgeted this year at $11,530,600, and that timing and accrual rules mean only a limited number of 2025 sales-tax receipts are included in the year-to-date totals.
The auditor’s office “has sales tax revenue as the number 1 item,” Funk Baxter said during the county’s budget review session. She and auditor staff cautioned that January and February receipts are often booked back to the prior year and that, for the report presented, only March and April collections were posted for 2025.
That timing created an appearance of being below target on a simple year-to-date comparison even though staff said the county’s sales-tax receipts are roughly in line with expectations for this stage of the year. “We’re right on track,” Funk Baxter said.
Why it matters: sales tax is the single largest revenue line for the auditor’s general fund, so monthly posting and accrual rules substantially affect early-year budget-to-actual comparisons. Commissioners pressed staff for clarity on which months were included and how one-time or annual receipts are recognized.
Key figures and program notes given at the meeting: - Sales-tax budget: $11,530,600 (2025). Staff cautioned posted receipts through April reflect a limited set of collections due to accruals. - Property taxes: staff said the county typically collects “about 99% of what we bill out.” Property-tax collections are handled on the treasurer’s financials, not the auditor’s report. - Intergovernmental revenue: budgeted $2,379,000; year-to-date receipts reported at $229,000. Auditor staff said the bulk of this to date is the PUD privilege tax, paid once a year. - Goods and services (internal billings): budgeted $1,300,000; year-to-date receipts $373,815. Staff noted large, lump-sum internal billings later in the year affect the month-to-month pattern. - Miscellaneous revenue: budgeted $12,550; received $30,377 year-to-date. Auditor staff member Kaylee explained miscellaneous includes “little things like notary fees” and occasional printing fees. - Auditor personnel: budgeted $1,700,000; year-to-date actuals $453,000. Staff reported 15 filled positions and one vacancy as of April; payroll posting timing (paydays on the 10th and 25th) also affects the monthly appearance of personnel costs.
Discussion versus decisions: the presentation was informational; no policy changes were adopted. Commissioners and staff discussed the role of accrual accounting and timing of receipts, and staff agreed to provide additional memos and backup spreadsheets that explain the PUD allocation calculation and the treatment of lump-sum receipts.
What comes next: staff offered to provide the PUD calculation spreadsheet and a memo explaining how the county allocates the PUD privilege tax among the county and cities. Commissioners asked for that detail to better interpret year-to-date variances in future reports.
