Council discusses preliminary 2026 budget

During the Monday, Oct. 20 session of Cathlamet Town Council, Town Clerk/Treasurer Sarah Clark presented a preliminary budget proposal for 2026. The proposed budget totals $3,726,265, which, according to Clark "is approximately 16 percent lower than the comparative adopted budget" for the current year. "Budgeting is a comprehensive planning process for the future of the Town, setting forth the maximum expenditures of a particular fund while ensuring that expenses do not exceed revenues," stated Clark. "A conservative budget supports the fiscal integrity of the Town. Operating costs should be in line with actual revenues received during the year, with beginning and ending fund balances limited to emergencies and capital expenditures."

According to Clark, the Town "is projecting an operating budget deficit of $328,190." This would need to be funded from reserves. Also, $318,599 "is being allocated from reserves to support capital expenditures." Combining the two, the Town anticipates $646,789 be drawn from reserves, which would result in an estimated year-end reserve balance of $1,042,979. Accounting for 30 percent of the total budgeted expenses, end balance and reserves are second only to capital, which, at a total of $1,387,776, accounts for 40 percent of total budgeted expenses. The third-highest expense is salaries and benefits, which, at $409,615, accounts for 12 percent of total budgeted expenses for 2026. "In 2026, personnel costs are projected to account for approximately 67 percent of total operating revenues, which is above the target range of 40 to 50 percent," Clark stated "While a higher percentage may be justified, given the reduction in revenue generating services, it should still be reduced to no more than 60 percent going forward. Achieving this will require increasing revenues, reducing expenses, or a combination of both." During the Oct. 20 meeting, Clark said, "When we had utilities, we kept [it] just between 40 and 50 percent."

One noticeable change, though not great, is projected and budgeted salaries and benefits between 2025 ($400,194) and 2026 ($409,615), with the increase only being $9,421. "We actually didn't increase that much when we got rid of utilities," said Clark. "That's a good thing. We still have the same level of staffing charged to the general funds."

At the beginning of the workshop, Clark said, "We're just estimating right now based on the engineers' estimates." Later, Clark conceded there are projects "that weren't budgeted." Among these projects are a leak in the library's roof and a door at the pool that won't close properly. "I didn't have costs for those yet," said Clark. "So we're working on those and we'll bring them back and let you know."

Another part of Clark's workshop was centered around the pool, specifically days scheduled, hours, and daily entries. One of Clark's recommendations included "eliminating all alternative entry types." These include punch and season passes. Clark recommended "per-entry fee only" for attendees. "This would allow for more accurate tracking of attendance and improved accounting data, giving us a clearer picture of pool usage and enabling better-informed decisions going forward," said Clark. "I am also working towards developing plans to improve overall administrative/operational functions, with a focus on enhancing communications, scheduling and preseason preparation, while also identifying opportunities to strategically reduce staffing where appropriate to manage costs."

For more info on the proposed budget, visit townofcathlamet.com.