Commentary: Tough budget choices ahead for City of Chehalis

Chehalis is entering the 2026 budget cycle with serious financial headwinds.

The recent change in the Darigold property valuation will cost the city roughly $390,000 in lost property tax revenue. That alone is a major hit to our bottom line — but it is not the whole story. Our own spending priorities are just as much a factor in the fiscal challenge we now face. At the recent budget projection workshop, we reviewed numbers that should give every resident pause.

The city’s projected ending fund balance for 2026 is just $506,000 — a 66% decrease from the previous year.

In plain terms, that leaves almost no cushion for unexpected costs, emergencies or new investments. When reserves shrink that dramatically, the city’s ability to respond to crises — whether it’s a major storm, infrastructure failure or public-safety need — shrinks with it.

This is why I voted no on the $470,000 downtown revitalization study.

Unfortunately, the measure passed. We now find ourselves spending nearly half a million dollars on a plan that has zero chance of being implemented in the near future.

I believe every dollar in this budget should be measured against our ability to maintain essential services and protect taxpayers. A study that cannot move forward for years simply doesn’t meet that standard.

The path forward will not be easy.  To keep Chehalis financially healthy, we must make across-the-board cuts — not just in one department or favored project, but citywide. Every program, contract and discretionary expenditure must be reexamined.

That is not a call to abandon our ambitions for growth or improvement; it is a recognition that financial stability must come first.

Chehalis is a resilient community. We have weathered floods, recessions and other challenges because we confront hard truths directly. The hard truth today is that both declining revenues and spending choices are driving us toward a dangerous deficit.

My commitment is to fight for a budget that prioritizes core services, preserves a responsible reserve and respects the taxpayers who fund our city government.

The numbers are clear. Now it’s up to us — council, staff and residents alike — to make the responsible decisions that keep Chehalis strong. Increasing taxes cannot be the go to answer.

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Kevin Carns is a Chehalis city councilor.