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Cowlitz County staff propose centralizing interest earnings to shore up general fund
Summary
County finance staff told commissioners they may recommend a policy change to stop special revenue and capital funds from investing separately and instead pool earnings for the general fund; staff warned the shift could reduce revenue available to funds such as roads, mental‑health programs and opioids.
County finance staff on Monday urged the Cowlitz County Board of Commissioners to consider a policy that would stop special revenue and capital funds from holding their own investment earnings and instead have the treasurer invest pooled cash for the benefit of the general fund.
"At that point, any of the uninvested funds could be invested by the treasurer's office for the benefit of the general fund," Commissioner Sean Rowley said while reviewing recent interest‑earning totals. He framed the change as a board policy decision that would take effect on a date set by the board.
Why it matters: staff presented a multi‑year view of interest earnings that rose from about $623,000 in 2022 to roughly $2.7 million in 2024 and about $2.4 million in 2025 (figures exclude interest belonging to the general fund and some internal service or enterprise balances). Rowley said sweeping those earnings could bolster the county’s budget gap as the board works toward a $69 million revenue target for 2027.
Potential impacts: finance flagged several funds that could see reduced resources under the proposal: the road fund (about $832,000 of interest in 2025), chemical dependency/mental‑health funding (~$200,000), the opioid fund (~$122,000) and budget stabilization (~$126,000). Staff cautioned the amounts are volatile and depend on market returns.
How it would work: staff said the proposal could be implemented by policy change and would apply from the effective date chosen by the board; departments that had counted interest as revenue this year would need transitional guidance because some budget decisions already assume those earnings.
Next steps: staff recommended further review with the finance committee, coordination with the auditor and treasurer, and a return to the board with a formal policy recommendation. Commissioners asked staff to provide departments with preliminary estimates so program managers have a starting point for 2027 planning.
