West Richland releases second-quarter 2025 financial report; sales tax and utility revenue up, permit revenue falls

Erin Gwyn, the city’s finance director, presented West Richland’s second-quarter 2025 financial report at the Aug. 19 City Council meeting, saying the general fund is tracking to budget despite uneven revenue sources.

Gwyn said the city’s unemployment indicator sits at 3.7% for Benton County and that the national consumer price index rose 2.7% year-over-year through June 2025. “This evening, I'm presenting the 20 25 second quarter financial report,” she told the council.

The nut of the report: general fund revenues are roughly on pace with budgeted expectations for the first half of the year, but the composition is shifting. Sales tax collections rose about 20% year-over-year, and overall utility tax revenue was up about 7%, driven largely by rate increases. Water accounts billed numbered about 5,942 at June 2025, Gwyn said.

At the same time, building activity and permit revenue fell. Single-family permits were down 11% through the second quarter (39 permits), and multifamily permits were zero compared with 39 in the same period the prior year. Gwyn said the city received about 50% less building-permit revenue and roughly 40% less in charges for services tied to plan review and permitting.

Gwyn walked council through department and fund-level detail. Public safety remained the largest general fund expenditure (about 42%). She said the city has collected about 25% of budgeted general fund revenue through the second quarter, “so we are on track to meet projections.”

Capital and special funds showed mixed results. Fund 301 activity rose due to the State Route 224 project, with reimbursements from the state driving spending. The city’s REET (real estate excise tax) receipts were down about 3% year-to-date compared with 2024. The park-impact fund declined 62%, the finance director said, largely because two large developers are building parks as mitigation rather than paying impact fees.

On utilities, Gwyn reported: water revenue up about 4%, sewer up about 8% (attributed to new residents and rate changes), stormwater up 12%, irrigation roughly flat, and solid waste up about 10% tied to contract costs. The solid-waste increase correlates with the city’s EDDS disposal contract, she said.

Council and staff did not take action on the report; Gwyn invited questions and received none.

The finance presentation will remain on the council’s public record and council members said they appreciated the level of detail.