CAMAS — The city of Camas faces an almost $8 million shortfall in the 2025-26 budget.
While the city’s general fund expenses increased by $12.9 million from 2021 to 2025, general fund revenues did not keep pace, increasing by just $5 million over the same time period.
Finance Director Cathy Huber Nickerson told city council members that Camas has experienced decreases in its general fund, with sales tax revenue dropping $78,000 and other tax revenue dropping $466,350.
General fund expense increases have outstripped revenue gains since 2021, including a $2.98 million jump for salaries; $2.44 million for new staff positions; $2.15 million for Camas’ contributions to the Camas-Washougal Fire Department; $1.68 million for streets; $1 million for employee benefit cost increases; and $400,000 for police body-worn cameras and other police services, among others.
Revenue increases included $2.3 million in charges for services; $1.9 million in property taxes; $645,735 from permits and licenses; $245,626 from miscellaneous revenues; and $626,732 from utility taxes in 2024, including the city’s new 2 percent utility tax on water, stormwater, sewer and solid waste utilities, though that tax will expire at the end of the year.
The city’s general fund budget for the 2023-24 biennium was $76.3 million.
Huber Nickerson reiterated that Camas — with its sales, property and utility taxes — has a “three-legged stool” revenue model for the general fund, which pays for the bulk of the city’s services, including police, fire, streets, parks and recreation, and library services.
Adding the utility tax to the city’s funding model in 2022 helped increase the city’s Standard and Poor’s Global Ratings to AAA in 2023, meaning the city has a low risk of default.
The AAA rating saved the city $1.5 million when it issued the 2023 general obligation bond that helped finance parks redevelopment, facilities and street construction.
The 2 percent utility tax on Camas’ water, sewer, garbage and stormwater utilities was expected to add about $1 million to the city’s general fund over the 2023-24 biennium.
But the new tax isn’t popular with everyone.
Councilors Leslie Lewallen and Jennifer Senescu voiced opposition to continuing the tax past its Dec. 31 sunset date.
“We went round and round on the utility tax, and there’s a lot of pushback, folks saying they did not want this,” Lewallen said. “We put a sunset provision in, … knowing how many folks are really struggling to buy groceries and put gas in their car at the same time. … We’ve made it more difficult for folks to live in this community because of that tax.”
Councilor Marilyn Boerke said she wanted to help the city move past its history of delaying capital projects and maintenance needs due to a lack of revenues.
Huber Nickerson said the city is still facing a revenue shortfall.
“Even with the utility tax, we’re not up to where other cities use their utility tax,” she said.
Huber Nickerson said the city may want to consider having revenue coming from charges for services to help alleviate its reliance on property taxes.
Camas Mayor Steve Hogan said other cities in Clark County are grappling with similar revenue issues.
“Everybody is behind, and we’re all looking at how we can stabilize,” Hogan said. “The legs on the stool are pretty important. And if we don’t get more ways to get revenue in, then (the city is facing) pretty severe cuts.”
Hogan said he is trying to find ways that Camas can “increase revenue, decrease expenses and prioritize whatever staff says are the main needs.”
If the council decides it does not want to approve the revenue sources included in the mayor’s proposed 2025-26 budget, Hogan added, he will come back to the council and ask what services council members want to cut.
“If we’re not going to have other ways of getting that revenue that closes the gap … there will be a long list of services we provide that will be on the chopping block,” Hogan said. “We’ll present it to you and ask what you want to take out of it.”
Huber Nickerson said she intends to bring a long-range budget forecast, as well as a list of 2025-26 capital projects, to the city council’s Monday workshop.
