Cowlitz County reviews $3.1M facilities budget and five‑year capital plan as REET rules loosen

Cowlitz County commissioners heard details of the public services facilities maintenance budget and a five‑year capital plan that staff say will require choices to avoid a projected shortfall.

Mike Moss, public services director, opened the presentation and introduced the facilities maintenance crew that services roughly 30 county buildings — about a half‑million square feet of space. "We're doing a team effort today to talk about the 26 20 27 facilities budget," he said, laying out staffing and operational coverage.

Sean (budget staff) told commissioners the 2026 facilities maintenance account is budgeted at $3,100,000. "Just shy of a million of that is labor and benefits," he said, and supplies and services make up the remainder: roughly $137,000 for supplies and about $2,000,000 for services such as utilities, insurance and repairs.

The staff presentation also described the county's capital reserve funding: about $1 million per year in real‑estate excise tax (REET) revenue, a $1 million annual general fund transfer and nearly $73,000 a year from two cell‑tower leases on the Hall of Justice roof.

Staff highlighted a state law change — House Bill 1791 — that removed prior REET spending caps. Sean said HB 1791 equalized REET 1 and REET 2 spending authorities, raised the allowable share for maintenance from 25% to 35%, and removed the $1 million annual maintenance cap, giving the county more flexibility to use REET for maintenance activities.

Even with those changes, staff said the five‑year forecast (2026–2030) shows a roughly $1.5–$2.0 million deficit if the county proceeds with every project currently listed. To manage that risk, staff asked the board to prioritize recurring maintenance (items 1–9 in the plan) and identify which larger projects to defer, fund by debt, or pursue with other revenue sources.

Staff identified several large projects and cost estimates: the Hall of Justice HVAC replacement is estimated at about $6.5 million (with debt financing scheduled and remaining payments in 2026), the juvenile facility roofing and related infrastructure work are estimated in the millions (staff cited a roughly $3,000,000 roof estimate plus additional control and infrastructure work), and a museum parking lot repaving is estimated at about $200,000.

Commissioners and staff discussed janitorial contracting for the Hall of Justice and other county facilities. Two bids from regional companies were cited at about $333,000 and $311,000. Staff proposed pursuing a smaller, lower‑cost scope limited to shared common areas and asking state‑contract vendors to price that narrower work; commissioners asked staff to get refined quotes to fit the budget.

Staff also reviewed several smaller, prioritized tenant improvement requests (a CTIP list) totaling roughly $138,000 that include juvenile projects such as an atrium repair and new flooring. Example estimates: an atrium repair and flooring at the juvenile entrance was estimated at about $33,000, courtroom and lobby flooring at about $43,000, and a work‑crew shed rehab at roughly $20,000.

On several items commissioners signaled they were comfortable giving staff flexibility to begin urgent repairs — particularly where continuing leaks or water intrusion could raise future costs — and staff said they would proceed with emergency or urgent fixes and return formal CIP/budget paperwork with the regular December budget package.

Staff also noted several line items where costs remain uncertain: a facade repair placeholder of about $750,000 is based on preliminary review and will be refined after investigative work; staff said they expect a more precise ballpark later in the year and will use the budget amendment process if the number changes.

The county will consider debt, prioritized deferrals and alternative revenue sources as it finalizes the December budget. The commissioners scheduled follow‑up discussion options for the next Wednesday meeting and during the formal budget adoption process in December.

Ending: The presentation closed with staff asking for direction rather than votes; commissioners urged staff to return refined cost estimates and vendor quotes and to move forward with immediate repairs where delay would worsen conditions.