Quincy preliminary budget projected at $113M

QUINCY — The city of Quincy is projected to spend about $113.49 million in 2025, according to its preliminary budget. Being a preliminary budget it’s still subject to changes, and Finance Director Carrie Lnenicka said some changes are in the works. 

Quincy City Council members voted Tuesday to increase the city’s utility tax to 6%, the maximum amount allowed under state law, from 4%. The tax is levied against gross income of electrical and natural gas utilities, with an exemption for any monthly bill over $40,000.  

Lnenicka told council members the increase should generate about $500,000 in additional revenue. Council member Andrew Royer said the city has levied the tax since the 1980s.  

The preliminary budget projected Quincy would have to use about $530,000 of its current expense reserves to balance its 2025, but Lnenicka said the utility tax increase would offset most of the difference. 

“Now that the utility tax increase is approved, that revenue will increase and will offset the expenses that seem to dip into the reserves as projected. The reality is we have received more revenue than our 2024 budget projected, and our expenses are under budget as well, so our actual ending fund balance (reserves) will be greater once the year actually ends,” Lnenicka wrote in response to a question from the Columbia Basin Herald. 

The current expense fund for the city is projected at $13.74 million in the preliminary budget. The current expense fund pays for most city operations, including part or all of the salaries for most city staff, supplies and expenses for most city operations.  

Before any adjustments the street reserve fund projects about $8.9 million in carryover and revenue and about $8.46 million in expenses. Lnenicka said that reflects the city’s effort to save some money over the last couple years to work on street projects, some of which are scheduled for 2025.  

The situation is similar in the city’s utility fund, with $14.21 million in projected revenues and $13.27 in projected expenses. The water system is in need of repair and expansion, and some of those projects are scheduled for 2025. 

Revenues in the industrial sewer utility operating fund were projected at $14.31 million, with expenses at $12.7 million. The domestic sewer utility operating fund was projected to have about $13.7 million in revenue and $13.57 million in expenses.  

Bob Davis, Quincy water program manager, said at the council meeting Tuesday that the sewer system is in need of repair, and that the city has been notified that sections of it are out of compliance with Washington Department of Ecology regulations. 

Davis was asking council members to allow city officials to look for additional funding sources.  

“There’s quite a bit of physical work that needs to be done to repair and replace broken parts and pieces to the wastewater treatment system, the industrial wastewater treatment system,” Davis said.  

The recreation center project fund is budgeted at $18.925 million in revenue and $17.09 million in expenses. The indoor recreation center will be built in Lauzier Park on 13th Avenue Southwest; planning and design are scheduled for 2025.  

Voters in Quincy, George and the rural areas around them approved the establishment of a parks and recreation district in 2023 to build the rec center, called the Q-Plex, and a new Quincy Aquatic Center. Quincy Administrator Pat Haley said in an earlier interview that the parks district was formed too late in 2023 to file the paperwork necessary to levy taxes in 20204. The first year the district can levy taxes, and therefore generate revenue, will be 2025. 

Projects also are scheduled for the city’s water reuse facility. Its operating fund revenues were projected at $11.82 million, expenses at $10.84 million.