City finance staff presented the second-quarter 2025 financial report to the Chehalis City Council on Aug. 11, 2025, offering a midyear snapshot of revenues, expenditures and cash balances through June 30.

Finance director Nikki (presenter) said the city began the year with about $35 million in cash, received roughly $17 million and spent about $17 million, leaving the city near its opening cash position. Citywide revenues stood at approximately 46.2% of the annual budget, a shortfall of about $1.4 million the presenter attributed mainly to timing differences in grant reimbursements; summer is typically the period of heavier capital spending and associated grant drawdowns.

The general fund ended the quarter with about $2.8 million in cash and a projected year-end balance of roughly $1.3 million after normal activity and anticipated budget amendments, staff said. Major revenue lines such as property tax were on target; sales tax receipts lagged the budget in the period but showed signs of recent uptick. Enterprise funds (water, wastewater, stormwater and airport) showed typical seasonality: water and wastewater revenues were in roughly the 40'50% range and capital outlay remained below seasonal milestones because many projects occur later in summer.

Staff also noted that the city's investments in the state Local Government Investment Pool (LGIP) were earning above 4%, producing stronger-than-expected interest revenue for funds that had previously been invested in lower-yielding bonds. Finance staff told council the airport is pursuing grant reimbursements in Q3 that should boost airport revenues later in the year.

Council members used the presentation to question timing and to request additional detail; one member moved earlier in the meeting to postpone action on a separate personnel pay item until the Q2 revenue projection review was completed. The financial report itself was received for information and will be the basis for any required budget amendments later this year.