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Ocean Shores finance committee reviews general fund timing as erosion project reimbursements arrive
Summary
City finance staff told the committee that insurance payments and an ongoing beach erosion project have reduced early-year cash balances but the city has secured a Department of Commerce grant and received the first reimbursement, leaving the erosion account roughly $410,938 positive against submitted bills.
City Clerk Sarah, speaking to the Ocean Shores Finance Committee on a range of early-year finance issues, said the city had set aside $700,000 to cover the Southern Erosion Project and had received a $688,000 grant from the Washington State Department of Commerce. She told the committee the city got its first reimbursement from the Department of Commerce of about $78,000 and that, after reimbursements are posted against outstanding claims, the erosion account would show roughly $410,938 available against the bills submitted so far.
The committee was told the city’s general fund began the year with a surplus of about $4.1 million and that the February financial report showed roughly $2.86 million in the general fund balance. Sarah cautioned the early-year dip reflected large, routine insurance payments, a series of project bills and the timing of property tax receipts, which do not arrive until May or June. Lodging-related tax receipts (LTAC) typically recover between July and November, she added.
Why it matters: The timing of reimbursements and tax receipts affects cash available for regular operations while the erosion work and other large expenditures are underway. Committee members were given the context to expect early-year fund declines and to anticipate recovery once reimbursements and tax receipts post.
Details and context: Sarah said the city had anticipated a negative balance in the erosion account while reimbursements were pending. “We’ve put aside $700,000 for the 2 years just to get us started into the year with something,” she said. She described engineering work slowing on the cobble portion of the project and noted that work to “stockpile a little bit” had also paused; logs had begun to accumulate at the burn site, which staff said was performing as expected.
Staff flagged two other routine cash drivers: a large annual insurance payment and a large payment related to a local improvement district (LID) payoff. Committee members were reminded that timing — not necessarily new or unbudgeted spending — explained the early-year decrease in reported balances.
What’s next: Finance staff will continue to monitor reimbursements from the Department of Commerce and the flow of property tax and LTAC receipts. The finance committee, public works and staff were asked to watch erosion project invoices and reimbursements as the city moves into the mid‑biennium review and budgeting for 2026.
Ending: Committee members agreed to continue receiving monthly financial reports and to raise specific questions with staff as reimbursements hit the ledgers.
