Chehalis, Lewis County hold public hearing on annexation ILA; commissioners recess to November for more analysis

CHEHALIS, Wash. — The Lewis County Board of Commissioners and the Chehalis City Council held a joint public hearing in October 2025 on a proposed interlocal agreement (ILA) to annex a large portion of the Chehalis Urban Growth Area (UGA), hearing detailed staff presentations and mixed public testimony before recessing the hearing to allow more information to be gathered.

Mindy Brooks, director of community development for Lewis County, opened the staff report, saying: "The purpose, tonight is to hear testimony on the proposed interlocal agreement for annexation for a portion of the Chehalis Urban Growth Area." Brooks explained that the county sets UGA boundaries to ensure sufficient land for projected housing and jobs and that cities are expected to annex UGA lands over roughly a 20‑year horizon.

Stacy Denham, Chehalis city manager, reviewed the UGA’s history and state-law changes that prompted the current proposal. Denham said the city is pursuing annexation now because earlier approvals and state law changes in 2018 (and permitting restrictions adopted more recently) created conflicts for permitting and long delays: "[T]hat was gonna be very problematic for everybody involved, to include, anybody wanting to get a permit to remodel their house, to builders, to developers." She described two ILAs: one that would effectuate the annexation once approved, and a second co-management ILA intended to extend existing permitting arrangements during the statutory lag period while boundary review and other procedural steps occur.

City and county staff emphasized that signing the county manager’s and city manager’s approval of an ILA does not make annexation immediate. Staff explained the boundary review board may review a proposal against state law during the statutory review period and that the co-management ILA is intended to preserve permitting continuity while that review is pending.

Fire-district officials and the city discussed potential revenue impacts and options to preserve service. Chehalis Fire Chief Adam Fulbright described a committee drafting a "functional consolidation" ILA to study operational alignment and the possibility of a voter-approved merger or regional fire authority (RFA) after annexation. Staff gave the levy figures used in planning: District 6 levies about $1.22 per $1,000 assessed value and District 5 levies about $1.66 per $1,000; county and city staff said those district revenues would remain with the districts through 2026 if annexation occurs after Aug. 1 and that revenue shifts would take effect Jan. 1, 2027.

Sewer and public‑works questions drew specific answers. City public‑works staff said Sewer District 4 is at the plant’s design capacity for purchased service but that there is roughly room for about 800–1,000 additional hookups before plant upgrades would be required; customers outside the city currently pay about a 30% surcharge on wastewater service that would be removed for customers once annexed into the city system.

Residents asked about road maintenance, tax impacts and development capacity. County and city staff said road maintenance responsibility and costs shift with annexation; staff cited county planning‐board estimates for rural road maintenance (county road administration board figures referenced in discussion ranged roughly between $10,000 and $20,000 per mile) and said urban maintenance is more expensive to run long term. Regarding taxes, staff said some county levies would no longer apply in an annexed area but that overall the city expected some residents in annexed areas to see a net reduction in combined bills (for example, the wastewater surcharge would be removed).

Public testimony was mixed. Greg Cole, a Chehalis resident in fire District 6, said: "As a resident of fire District 6, we fully support the ILA that all the chiefs and the committee are currently working on. It makes sense." John Braun, representing Raindrop Properties, said his northeast parcel could support roughly 4,000 homes and backed annexation as enabling housing development. Other residents urged caution: Bud Goodwillie (fire District 5 resident) disputed remarks that District 5 was "broke" and said mutual-aid arrangements already exist; Tim Potter (county resident) urged smaller, phased annexations, saying he believed the current proposal would incorporate more than 1,300 parcels and risk increased costs for taxpayers and infrastructure.

After public testimony, a motion to close the hearing to further testimony and recess the hearing was moved and seconded. The Lewis County Board of Commissioners voted 3–0 to recess the hearing and set continuation for Nov. 25, 2025; the Chehalis City Council set its continuation dates and indicated it will consider first reading on Nov. 10 and a subsequent council action Nov. 24. Commissioners and council members said the delay is intended to give staff time to provide more detailed fiscal and service‑level information to elected officials and the public before a final decision.

Next steps: the county and Chehalis will gather additional fiscal and service-impact information on fire-district revenue timing, sewer capacity, road-maintenance liabilities and potential impact-fee structures. Written comments already submitted will remain part of the official record for the annexation hearing.