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West Richland adopts mid‑biennium budget amendments after first‑quarter financial review
Summary
City council unanimously passed a mid‑biennium budget amendment after the finance director reported first‑quarter 2025 revenues and outlined capital and utility fund changes, including a $3.8 million federal grant for Keene Road with a $2.357 million local match and a $920,000 increase for a municipal facility backup generator.
West Richland — The City Council on June 17 unanimously approved Ordinance 16-25, a mid‑biennium amendment to the 2025–26 budget that recognizes new grant awards, adjusts beginning fund balances following the 2024 closeout, and updates project appropriations for several capital projects and water system improvements.
The action followed a first‑quarter financial presentation by Finance Director Erin Glenn, who told the council the city “collected 6% less revenue in 2025 compared to 2024,” driven largely by a 72% drop in building permit revenue and a 35% decline in charges for services tied to plan review fees. Glenn said general‑fund receipts through the first quarter were about 10% of the biennial budget versus an expected 12.5% per quarter, and noted the city expects property tax receipts to increase in the second quarter.
Why it matters: The amendment obligates local matching funds for a federally funded Keene Road widening grant and increases project budgets tied to planned construction, while preserving operating stability amid lower permitting activity.
Most important changes approved
- Keene Road grant: The council recognized a federal grant of $3,796,870 for the Keene Road widening project and committed a local match of $2,357,130. The amendment allocates $1,122,130 from Real Estate Excise Tax (REIT) Fund 301, $700,000 from REIT Fund 302, and $230,000 from Transportation Improvement Fund 355 (staff clarified an existing $305,000 previously budgeted for the project covers part of the match).
- Municipal services facility generator: Appropriations increased by $920,000 for backup power at the municipal services facility, funded by a $300,000 state grant and $620,000 from available fund balance.
- Well projects and water funds: Contract awards for well 2 and well 3 required project budget updates. The amendment reduced a previously budgeted transfer of $432,000 from the Water System Development Fund (441) to the Water/Sewer Fund (401) and reallocated $379,000 between the two well projects to reflect final bid amounts.
- Small grants and technical items: The amendment recognized $2,300 in state grant revenue for a police radar unit and recorded journal corrections from the 2024 annual financial close; the net impact to beginning balances was $0, the finance director said.
Financial context and trends
Glenn said unemployment in Benton County has risen to 6.3% and national consumer price inflation (12‑month CPI) was 2.4% as of March 2025. Locally, single‑family permits through the first quarter were down 27%, with 19 new single‑family permits issued; no multifamily permits were recorded in the first quarter. Sales tax revenue was up 25% year‑over‑year, with retail up 18% and construction up 65% (the city attributed much of the construction sales tax to supplier activity such as lumber and cabinet companies). Utility taxes overall rose 8% year‑over‑year, driven by rate increases.
Glenn summarized fund balances and expenditures: public safety accounts for 42% of general‑fund expenditures; total general‑fund expenditures were 11% of the biennial budget through the first quarter. Capital project activity was light in the first quarter but is expected to increase in the second quarter with work on Keene Road and State Route 224.
Council discussion and next steps
Council members asked clarifying questions about REIT funding and the Keene Road match breakdown. Council member Ken Stoker requested confirmation of the fund sources for the match; Glenn and staff confirmed the split among REIT 301, REIT 302 and TIP 355 and noted existing budgeted amounts that partially covered the match. Council members unanimously passed the ordinance to amend the budget.
The ordinance increases 2025–26 appropriations by $4,364,560 and recognizes an increase in resources of $1,699,439, yielding a revised total budget of $154,446,081, according to the finance director’s presentation.
Sources and attribution
This account is based on the city council meeting presentation by Finance Director Erin Glenn and the council’s recorded motions and votes on June 17, 2025. Direct statements in this article are attributed to the listed speakers.
