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Cowlitz County capital-improvements fund buoyed by one-time REIT payments; major CIP spending expected later this year
Summary
Finance staff told commissioners the capital improvements fund showed one-time Real Estate Investment Trust (REIT) windfalls tied to ownership transfers, while $5.9 million in capital projects are budgeted with most spending expected later in the year.
Cowlitz County finance staff told the Board that the capital improvements fund is on track but shows volatility from one-time real-estate related payments.
"It has taxes that's budgeted at 1,025,000," Kathy Funk Baxter said, and noted actuals through the reporting period were $620,002.71. Baxter attributed April's higher-than-expected receipts to a WestRock ownership-transfer refund she described as a one-time bump: "that alone contributed about $226,000 to the fund."
Finance staff showed earlier spikes linked to ownership changes — one roughly $287,000 and another about $98,000 in a previous year — and noted revenue peaked near $1.5 million in 2021 and fell to about $979,000 last year. Baxter described the revenue source as 0.25% on real estate transactions in Cowlitz County outside city jurisdictions.
On the expense side, Baxter said capital projects are largely planned later in the year: the county budgeted about $5.9 million for capital-related work and had expended $38,111 so far. She listed projects in the five-year plan that will drive near-term spending, including an administration roof replacement, parking-lot pavement, courtyard drainage work, sheriff's evidence storm improvements, inmate housing HVAC work and other maintenance items.
Baxter also said the county expects to use $1 million of ARPA funds this year on the courthouse project, and an annual transfer from the general fund provides the remaining project support. She said a $300,000 transfer primarily pays debt service on morgue equipment and building costs and that the equipment financing runs about 10 years while the building portion runs about 20 years.
Asked about project timing, Sean Reedy, Public Works, said public-works projects often require prevailing-wage affidavits and take longer to process through state systems, which delays payouts.
Ending: Staff said they will provide an updated five-year plan to the board soon; most large capital expenditures are expected later in the fiscal year.
