New Longview finance director outlines city budget basics, reserve policy and possible levy measure

Aaron Hill, Longview's new finance director, told a public Longview 101 workshop that the city's budget is a plan of estimates and appropriations and that residents can shape priorities by engaging in the budget process.

"I'm the finance director here," Hill said as he opened the session, which he framed as an overview of two core topics — the biennial budget and the Annual Comprehensive Financial Report (ACFR), the accounting of what actually happened. He urged attendees to ask questions and said, "There are no stupid questions. Only stupid presenters." (Aaron Hill, Finance Director.)

Hill explained the basic structure of municipal finances. He said the general fund is the primary operating fund covering services that are not otherwise restricted, while other funds (special revenue funds, debt service funds, capital project funds, enterprise funds and internal service funds) exist to keep designated revenue and expenses separate. Using a simple analogy, Hill said special revenue funds are like money set aside to buy a neighbor's milk: the funds must be spent only for their intended purpose.

On revenue and spending, Hill said taxes make up about three‑quarters of the general fund's revenue, and salaries and benefits are the largest expense. He described enterprise funds (utilities, transit, recreation facilities) as often the largest by dollar value because they provide fee‑based services to run the city.

The presentation emphasized the difference between the budget and the ACFR. "The budget is what we think is going to happen; our ACFR is what actually happened," Hill said, explaining that the ACFR reconciles original and final budgets with actual revenues and expenditures.

Reserve policy and fund‑balance management drew sustained attention. Hill described a four‑stage policy the city uses to govern responses when revenues and expenses diverge: from allocating surplus to reserves and strategic initiatives to ordering cuts and seeking revenue enhancements when the ending fund balance falls below policy thresholds. The city uses a 15% target for ending fund balance as a minimum policy threshold, he said, while noting national recommendations vary. A workshop participant and staff members noted the city currently reports a strong ending fund balance (participants cited roughly 30–38% in discussion) but cautioned that is a point‑in‑time snapshot and projections show pressure from expenses that grow faster than some capped revenue streams.

Hill reviewed the annual budget cycle. Internal service and capital requests are prepared in spring; staff runs baseline revenue projections and presents them to the council for direction; enhancements and capital projects are scored and prioritized; and workshops continue through the summer and fall before levy certifications and a final presentation for approval in December.

On the question of whether the city can spend money freely, staff explained that fund accounting rules, state law and council priorities impose constraints: some revenues are legally restricted to specific funds, and grants or voter‑approved levies require that funds be used as approved. The speakers referenced Washington rules and state law standards that guide municipal finance.

Attendees asked about audits, reconciliations and procurement safeguards. Hill and fiscal manager Ryan Maple said the city performs monthly reconciliations of purchase‑card activity, maintains an audit checklist, and undergoes external audits (including single audits tied to federal grants). "I handle essentially the reporting side," Maple said, describing his role in ensuring accounting entries and financial statements meet state requirements. (Ryan Maple, Fiscal Manager.)

Participants also raised questions about charitable giving to departments, claims on council agendas (invoices the council approves for payment), debt and how utility funds operate differently from the general fund; staff answered that utility operations run on user fees and are generally required to be self‑sustaining while the general fund can supplement utilities but not vice versa.

Hill encouraged residents to follow the city's budget calendar online, attend council and committee meetings, and write to their councilmembers to voice priorities. Organizers also reminded the audience about the next Longview 101 session and a public open house at Station 81.

Next steps: staff will continue preparing the biennial budget for council workshops this summer and fall, with a formal presentation for approval scheduled in December; council is also preparing a community discussion about voter measures to address revenue gaps and public safety needs.