Chelan County Using $4.4 Million From Reserve Funds To Make Up Budget Gap

In the face of a significant budget deficit for 2025, the Chelan County Commissioners are turning to their reserve fund to make up the difference.

Projections for next year's budget show the County has roughly $55.1 million in revenues and about $59.5 million in expenses.

Commissioner Kevin Overbay says the $4.4 million draw from the County's reserve accounts is cause for concern, but necessary due to extraordinary circumstances.

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"It's very concerning since it's the largest amount we've taken since I've been in office for the past eight years. But we did have sort of a perfect storm with labor contracts that came up for renewal, along with not coming in for our projections regarding sales or property tax revenues, as well as just the cost of doing business that's continuing to go up."

Overbay says the County's tort claim insurance premiums also rose by 30% for next year.

He adds that the shortfall in property tax revenues from this year are expected to be partially remedied during 2025, with approximately $1 million coming in to help backfill the overall budget gap, and that the County hopes to be able to make up even more throughout next year.

The County's reserve account currently has a balance of about $18 million, but the upcoming draw is expected to see that number drop to below $14 million.

Going into its final round of budget meetings, the County had been facing a shortfall of roughly $6 million, but was able to reduce that figure by $1.6 million thanks to reductions in some of the expenses its various departments had been seeking.