Chehalis council adopts $402,303 amendment to 2025 budget on single reading

The Chehalis City Council on Sept. 8 passed Ordinance 1114-b on first and final reading, amending the 2025 fiscal-year budget by a combined total of $402,303 across multiple operating and capital funds.

Finance Director Nikki (first name used in transcript) presented a line-by-line summary and called out several large items that drove the amendment: a roughly $100,000 net decrease to the general fund; a $1.7 million swing in the Transportation Benefit District fund related to the Safe Routes to School project; removal of a drinking-water loan (about $500,000) from the water fund; and a $1.2 million removal of the pinch-point capital project from the water capital fund because it has been deferred beyond 2026.

Nikki told council the general-fund revenue side was reduced by about $380,000 because of a retroactive property-tax adjustment granted to a large local business by the Lewis County assessor’s office; that adjustment applied back five years and reduced the city’s 2025 tax receipts. The wastewater fund saw a revenue increase tied to previously discussed Dairy Gold discharge fees; the city’s 14% utility tax on wastewater revenues will return roughly $100,000 to the general fund to offset part of the loss, Nikki said.

Nikki also identified several internal cost-control and one-time savings: in-house certification of a building official (James) eliminated about $140,000 in professional-service fees; street superintendent Fritz drove equipment savings that reduced the equipment reserve fund by about $90,000; purchase of a $40,000 truck for biosolids hauling is projected to save ongoing contractor fees; and some capital and park projects were deferred from 2025 into 2026.

Council discussed whether to allow a single reading. Nikki said she preferred a one-reading adoption so the amendment could be entered into the ledger in time for the council’s upcoming budget workshop and to reflect the full retroactive tax adjustment. The mayor moved to suspend the two-reading rule and pass Ordinance 1114-b on first and final reading; the motion was seconded and passed by voice vote.

The ordinance text read into the record states the budget revision ‘‘revising the budgeted amounts by a combined total of $402,303 for the general fund, street fund, compensated absences reserve fund, federal grant control fund, automotive equipment reserve fund, park improvement fund, wastewater fund, water fund, storm and surface water fund, airport fund, wastewater capital fund, water capital fund, storm and surface water capital fund, and airport capital fund.’’

What’s next: the council scheduled a budget workshop Sept. 17 to review the 2026 planning documents and the updated ledger balances; staff will reflect the amendment in the city’s financial records.