Washougal City Council Workshop – September 14, 2026

The City of Washougal City Council held a workshop on Monday, September 14, 2026, from 5:00 PM to 6:52 PM. Mayor David Stuebe presided. Present were Councilmembers Tia Robertson (arrived at 5:02 PM), Ernie Suggs, Michelle Wagner, Marty Swofford, and David Szyplinski; Student Representative Jake Larzalere was also present. Mayor Pro Tem David Fritz was absent. Staff presentations covered updated park and transportation impact fees, the first-half 2026 financial report, and the six-year Transportation Improvement Program. No formal council votes were taken; direction and next steps were discussed.

Public Comments & Testimony

• Port Commissioner Larry Keister reported that he and Cassie would attend the Washington Public Ports Environmental Seminar in Seattle and tour the Port of Seattle to learn about successful initiatives. He said topics would include industrial symbiosis related to the Port's 41st Street development, alternative power options, electric truck charging, and examples such as data center heat reuse in Finland. He expressed commitment to working with the city on these efforts.

Discussion Items

• Community Development: Park & Transportation Impact Fees Updates — Mitch Kneipp, Jessica Herceg (DOWL), and Michaela Jellicoe (CAI) presented. The presentation covered impact fee background, 2026 data updates, methodology changes required by state law, and implementation considerations.
  • Under the updated data alone, the transportation impact fee cost per trip would rise from $860.93 to $889.58, an increase of $28.65 (3.3%); the park impact fee cost per person would rise from $2,577.75 to $2,582.75, an increase of $5 (0.2%). The park figure was corrected during the meeting from the slide.
  • The Washington State Legislature's amended RCW requires impact fee schedules to reflect the proportionate impact of housing units based on square footage, bedrooms, or trips generated, producing proportionately lower fees for smaller units. Adoption is required within six months of the comprehensive plan update.
  • Using state Commerce guidance and American Housing Survey data for the Portland-Vancouver MSA (2019), staff derived 2.81 average persons per dwelling unit, 2,001 sq ft average unit size, a 712 sq ft statistical minimum, and a 3,084 sq ft statistical maximum.
  • Maximum allowable park fee proposed: $3.63 per sq ft, with a minimum fee of $2,582.75 for units 712 sq ft or smaller and a maximum of $11,187.91 for units 3,084 sq ft or larger. For transportation: $3.81 per sq ft, with a minimum of $2,710.89 and a maximum of $11,743.
  • Council discussed that this approach incentivizes smaller units and multifamily housing. Some members expressed concern that larger homes would see higher fees passed on to buyers; others noted the change is required by state law.
  • For ADUs, state law caps impact fees at 50% of the primary dwelling unit's fee. Washougal currently charges 35% of the single-family rate. Staff recommended keeping an adopted reduction approach, and the planning commission was reported to favor retaining the 35% reduction. An example showed that a 525 sq ft ADU with a 2,150 sq ft primary unit would pay $903.96 under the park fee at the 35% reduction, while the alternative calculation would be compliant at the $2,582.75 minimum because it is below the 50% threshold of $3,902.25.
  • The council discussed exemptions for replacements, alterations/expansions, ADUs, and additions. Because the new fee is based on square footage, staff sought direction on when additions should trigger fees. Planning commission had discussed 25%; council members suggested zero, 20%, 25%, or a "500 sq ft or 25%, whichever is greater" approach. Staff agreed to return in a few weeks with examples showing fee impacts on different home sizes.
• Finance: Q1 & Q2 Financial Report — Finance Director/City Clerk Daniel Layer presented key economic indicators and first-half financial results.
  • U.S. real GDP grew at about 1.5% annualized in Q2 2026; unemployment averaged 4.3% in the first half; PCE inflation was 3.7% annually (3.34% excluding food and energy); the Fed held rates between 3.5% and 3.75% since December.
  • Washington State had the best GDP growth in the nation in Q1 2026 at 4.5%; state unemployment averaged 5.13%; CPI rose 2.9% from June to June. Clark County unemployment averaged 4.93%, with about 1,100 jobs added over the year, mostly in private education and health services.
  • As of June 30, general fund revenues were 48.4% of the amended budget, down 14.7% from the same point in 2025. Utility taxes/franchise fees were down 18% due to the milder winter; licenses/permits and subdivision/zoning/planning fees were down 77.8% due to one-time high-point building permits in 2025; retail sales tax collections were up 23% due to waterfront construction.
  • General fund expenditures were 43.9% of budget, down 20.3% from 2025, partly due to the prior year's approximately $1 million fire truck purchase. Fire/EMS and police together account for about 50% of the general fund budget. Layer also noted the Regional Fire Authority transition will remove about $5.2 million from the city budget, making police the largest cost center starting in 2027.
  • Water and sewer revenues were 44% of budget, up 2%; stormwater revenues were 47.3%, up 7.1%. A $2.2 million debt service payment was made at the end of August.
  • The city's overall opening balance increased from $52.6 million to an estimated $54.3 million. About $2.5 million in federal grant reimbursements was still pending. The transportation fund was temporarily supported by the transportation impact fee balance of more than $4.5 million.
  • Investments: $12.7 million in LGIP earning about 3.7%; $7.8 million in Riverview R&T earning about 3.25%; bonds/treasury notes maturing quarterly with returns ranging from about 1-2% to 4.5%.
  • Council asked about TIFF balance/cash flow risk and investment limits; Layer said the city tracks revenue sources carefully and public funds investment options are risk-limited.
• Public Works: 6-Year Transportation Improvement Program — Jonathan Boehme presented the state-required, annually updated six-year plan. It includes 22 projects aligned with the Transportation Capital Facilities Plan and comprehensive plan update. The plan distinguishes funded, partially funded, and unfunded projects; unfunded projects remain listed because grants often require projects to be on the TIP.
  • Spotlight projects: 32nd Street sidewalk (Safe Routes to School, entering design); Shepherd Road pedestrian connection (TIB-funded, in design toward 60%); systemic stop improvements (100% federally funded, 10 intersections); and ADA curb ramp upgrades (new project, $100,000 per year, supporting the ADA transition plan).
  • A council question clarified that a grant listed for Crown Road was a planned funding source, not a secured grant. Another question clarified that Shepherd Road would use a mix of typical sections A, B, and C along the corridor.
  • Staff recommended scheduling a public hearing for September 28, 2026, to consider adoption.

Key Outcomes

• No formal votes or ordinances were adopted at the workshop.
• Council gave informal direction on impact fees: continue with the square-foot methodology, retain the ADU reduction approach at 35%, and consider an addition exemption threshold such as 25% or a "500 sq ft or 25%, whichever is greater" option. Staff will bring examples and code language back in a few weeks.
• Staff was directed to schedule a public hearing for the six-year Transportation Improvement Program at the September 28, 2026 council meeting.
• City Manager, Mayor, and Council reports were deferred; the meeting adjourned at 6:52 PM.