The City of Vader passed its recent Office of the Washington State Auditor’s accountability audit, Vader Mayor Joe Schey announced during the final Vader City Council meeting of 2025 on Dec. 17.
Schey also announced the previously discussed Water Utility Action Plan had been submitted to Lewis County and Washington state Department of Health (DOH) officials for review and approval. If approved, the plan allows the county to transfer back control of the water system to the City of Vader.
During the meeting, councilors discussed some details pertaining to a draft ordinance which, if approved, will permit residents with off-road vehicles such as side-by-sides or golf carts to drive them on city streets.
Councilors also approved the 2026 budget on its final reading. The beginning general fund balance was estimated at $77,494, with projected revenues next year totalling $995,673 and projected expenditures totalling $1,041,510. This leaves the city with an estimated ending general fund balance of $31,657.
All funds combined, including the general fund, had an estimated beginning balance of $627,582 with revenues projected at $1,342,270 and expenditures projected at $1,604,723, leaving an ending balance of $365,128.
To view Vader’s 2026 budget, along with previous years, visit the city’s website at https://www.vaderwa.org/city-departments/city-budget--financials.
Accountability audit and Water Utility Action Plan
As for the accountability audit, during his mayor’s report Schey stated not only did the city pass, but it passed “with flying colors,” which he attributed to the work of Vader City Clerk-Treasurer Kristyn Miller.
“Last week, we had the exit conference, and we passed the audit with flying colors,” Schey said. “That’s our eighth in a row starting back in 2013. So good job to the city and great job, especially to Kristyn for getting all that information that was buried in so many places to the auditors and pleasing them the entire time.”
Auditors looked at the areas within the city’s finances with the highest risk of fraud, loss, abuse or noncompliance — including utility billing, cash receipting, city staff payroll, overall financial condition, tracking theft-prone city assets and Open Public Meetings Act violations from Jan. 1, 2022, through Dec. 31, 2024, according to the accountability audit report available on the auditor’s website.
The accountability audit report added separate audit reports specific to the City of Vader’s financial statement and compliance with federal grant programs were also made; however, they had yet to be made publicly available on the auditor’s website as of Jan. 2.
As for the water system receivership process outlined in the city’s Water Utility Action Plan, Schey said the plan had been submitted on Dec. 4 to both the county and DOH.
“We’re still awaiting a response, but we got it all in well in advance of the deadline, which was the goal,” Schey added.
While county staff were to submit the plan to the DOH after reviewing it, Schey stated they went ahead and sent the draft to DOH officials on their own to give them a heads up that the process had been started.
“The date of completion for the transfer is set in the agreement for six months from the date that we submitted it to them, which is the beginning of June,” said Schey. “They really need to get back to us soon, so we can get going on the next steps. There’s a lot of asset transfers, ownerships and things like that, that need to happen.”
Lewis County has operated Vader’s water system since 2010, when a Lewis County Superior Court order gave county officials control of Vader’s water system due to the city’s financial instability — on top of an inability to secure grants or loans to fund badly needed water system upgrades, as previously reported by The Chronicle.
Vader experienced at least 17 boil water advisories between 2006 and 2010.
Off-road vehicles driving in town
Councilors once again discussed the possibility of approving an ordinance allowing residents to drive off-road vehicles in town, though Schey stressed the ordinance was still only being discussed.
If approved, the ordinance establishes guidelines requiring the off-road vehicles to be properly registered, insured and driven only by those 16 and older.
“The wheeled all-terrain vehicles, all the occupants must sit side-by-side, it must have a steering wheel, so you can’t have quads and things of that nature,” Schey said. “Basically, at that point, they’re just little cars. Seat belts, the whole thing, headlights. Same thing with golf carts … They’d have to adhere to all the rules of the roads, the speed limits, it’s not a free-for-all.”
Muffler requirements were also included.
Vader City Councilor Jason Dailey asked if he could get the chance to review the draft ordinance and make highlighter changes.
The council moved to review the draft and discuss it further at the next Vader City Council meeting on Wednesday, Jan. 7, at 6 p.m. inside Vader City Hall.
