Cowlitz County reviews law-enforcement and solid-waste budgets, affirms landfill valuation method

County finance officials presented the Board of Commissioners with a snapshot of several operating funds and the assumptions that underlie landfill rent income. Kathy Baxter, finance director, said the law-enforcement records fund bills surrounding cities and the county under contract-based per-FTE quotes and that revenues are nearly matching budgeted amounts. "They're based upon a contract," Baxter said when asked whether city billings were volume-based or contract-based.

The board then received a detailed update on the solid-waste fund, where Baxter said customer billings are reported on an accrual basis and that receivables were about $3.45 million heading into late October. "We're pretty confident that this budget is a pretty solid budget," Baxter said, while noting that some large transfers and lease payments will be booked later in the year.

A central policy question for commissioners was how the county values its landfill and sets annual "rent" paid to the county. Staff explained the county uses the remaining landfill volume as the basis for valuation and applies a 6% return on that valuation to set the annual rent. Baxter said attorneys and auditors recommended the 6% return and that the county has used it consistently. "They gave a range, and ... the chief of staff consulted with the board, and they came up with the 6%." she said. Commissioners asked why the county does not charge the theoretical maximum (about $8 million) instead of the current $7.5 million figure; staff responded that charging more would require more outside waste or other operational changes and that the 6% figure was last rechecked during the 2025 budget process.

Staff also reviewed closure and post-closure funds used to meet long-term liability obligations. Baxter said the county currently holds about $19 million across closure-related trust accounts and that interest earnings on those balances support smaller transfers with the goal of eventually reducing the annual operating transfer burden.

What happens next: commissioners asked staff to calculate per-city subsidy amounts for transfer-station fees and to continue monitoring receivables and the effects of large year-end transfers. No formal vote was required on these informational budget items.