On the agenda: Cheney Packet — flock camera (Nov 10)

REGULAR CITY COUNCIL MEETING
October 27, 2026
A. Call to Order – Mayor Martin called the Regular City Council meeting to order at 6:00 p.m.
B. Roll Call – Excused Absences Councilmembers present included Councilmember Hahn, Councilmember
Barthels, Councilmember Posthuma, Councilmember Long, Councilmember Nazzaro, Councilmember Belock,
and Councilmember LaBar. Staff members present included Ms. Klinkenberg, Mr. Kapaun, Mr. Rouse, Ms.
Gomez, Mr. Curly, Mr. Ferguson, Mr. Jenkins, Mr. Lucas, Mr. Oakes, Mr. Schulte, Mr. Sanchez, Ms. Walters,
Mr. Anderson, Ms. Meyers, Mr. Hunt, Ms. Bridges, Mr. Young, Mr. Holmquist, Mr. Hand, Mr. Lawton, Mr.
Quintanilla, Ms. Schmidt, Mr. Smith-Rainsberry, Mr. Velikodnyy, Ms. Baken, Mr. Christianson, Mr. Davies,
Ms. Fell, Mr. Campbell, Mr. Nikkola, Mr. Brantingham, Ms. Irwin and Ms. Snider. Mayor Martin stated that
Councilmember LaBar requested to be excused for the September 22, 2026 meeting. Councilmember Posthuma
moved to excuse. Councilmember Barthels seconded. Carried unanimously.
Mayor Martin noted that she would be excusing herself after the Executive Session and Mayor Pro Tem
Posthuma would conduct the remainder of the meeting.
Councilmember Posthuma motioned to move Informational Items before Citizen Comments. Councilmember
Barthels seconded. Carried unanimously.
C. Information Items Mayor Martin stated she had presented Mr. Harold McCandless with his proclamation
earlier in the day. Chief Oakes introduced 4 newly hired officers, Mr. Quintanilla, Ms. Schmidt, Mr. Smith
Rainsberry, and Mr. Velikodnyy. Each officer was sworn in. Chief Jenkins introduced Firefighter Young, who
has recently been promoted from probation. Mr. Curly introduced Recreation Supervisor, Mr. Kylar Hunt. Mr.
Lucas introduced Deputy Court Clerk, Sarah Meyers. Mr. Ferguson introduced Mr. Danny Groby
D. Citizen Comments Citizen Buck spoke about the 50 acre park drainage into Harvest Bluff Subdivision.
Citizen Dalluge spoke about road work, noise ordinance, and the flag. Citizen Corinna Donnerberg Mayor’s
signature authority ordinance and the cost of flock cameras.
E. Minutes of the Special Joint City Council / Planning Commission meeting of October 12, 2026. The Regular
City Council Minutes of October 13, 2026 were approved. The Special City Council Meeting minutes of October
19, 2026, were approved as amended.
F. Claims and Vouchers were approved as listed.
2026 Vouchers
10-27-2026
$880,826.30
Direct Deposits
10-9-2026
Claims
Transfer to Benefits Payable

$295,701.74
$232,711.63
$124,421.26

178737 – 178820, 178736
64115 - 64127, 178571 - 178585

G. Small Contracts None
H. Appointments None
I. Executive Session None
Mayor Martin recessed the meeting at 6:33 pm per RCW 42.30.110 (1)(g) to review the performance of a public
employee. Mayor Martin stated that the meeting would be reconvened at 6:53 pm. She stated action will be
taken upon return. Mayor Martin extended the executive session until 7:05 pm. Mayor Pro Tem Posthuma
reconvened the meeting at 7:05 pm
J. Action Items
1. 26-082 – Public Hearing – 2027 Proposed Property Tax Levy Mayor Pro Tem Posthuma opened the
public hearing at 7:05 pm. Mr. Rouse spoke about the property tax levy. Mayor Pro Tem Posthuma closed the
public hearing at 7:16 pm.

2. 26-083 – Public Hearing – 2026 City of Spokane Mayor Pro Tem Posthuma opened the public hearing at
7:16 pm. Mr. Rouse spoke about the revenues. Mayor Pro Tem Posthuma closed the public hearing at 7:24 pm.
3. 26-084 – Public Hearing – Governmental Department Presentations Mayor Pro Tem Posthuma opened
the public hearing at 7:24 pm. Mr. Rouse, along with Mr. Lucas, Mr. Curly, Mr. Oakes, and Mr. Jenkins
presented the budget, accomplishments and goals for the Municipal Court, Parks and Recreation, Police, Fire,
Administration, and Finance. Mayor Pro Tem Posthuma closed the public hearing at 8:31 p.m.
4. 26-080 – Resolution F-526 City of Spokane Solid Waste Interlocal Agreement Mr. Ferguson spoke about
the agreement. Councilmember Barthels moved for passage of Resolution F-526. Councilmember Long
seconded. Carried unanimously.
5. 26-081 – Resolution F-527 Wellhouse 1 And 2 Building Rehabilitation Project Mr. Ferguson spoke
about the project. Councilmember Barthels moved for passage of Resolution F-527. Councilmember LaBar
seconded. Carried unanimously.
6. 26-088 – Resolution F-528 Local 77 IBEW Letter of Agreement 2027 - 2028 Mr. Schulte spoke about
the agreement. Councilmember Barthels moved for passage of Resolution F-528. Councilmember LaBar
seconded. Carried unanimously.
7. 26-089 – Resolution F-529 Local 270-C AFSCME 2027 – 2029 Contract Mr. Ferguson spoke about the
contract. Councilmember Barthels moved for passage of Resolution F-529 with noted clerical modifications.
Councilmember LaBar seconded. Carried unanimously.
8. 26-090 – Resolution F-530 Separation Agreement Mr. Rouse spoke about the agreement. Councilmember
Hahn moved for passage of Resolution F-530. Councilmember Barthels seconded. Carried with Mayor Pro Tem
Posthuma abstaining.
9. 26-085– Ordinance Z-10 2027 EMS Levy Mr. Rouse spoke about the ordinance. Councilmember Barthels
moved for the first reading of Ordinance Z-10 in title and summary form only and it be brought back to council
at a subsequent meeting. Councilmember LaBar seconded. Carried unanimously.
10. 26-086– Ordinance Z-11 2027 Regular Property Tax Levy Mr. Rouse spoke about the ordinance.
Councilmember Barthels moved for the first reading of Ordinance Z-11 in title and summary form only and it
be brought back to council at a subsequent meeting. Councilmember LaBar seconded. Carried unanimously.
11. 26-087– Ordinance Z-12 New Large Single Electric Load Mr. Schulte spoke about the ordinance.
Councilmember Long moved for the first reading of Ordinance Z-12 in title and summary form only and it be
brought back to council at a subsequent meeting. Councilmember LaBar seconded. Carried unanimously.
K. Staff Reports Mr. Lucas spoke about the recent Stake Holders meeting and the upcoming Legislative
Luncheon. Mr. Rouse spoke about the work Ms. Gwinnup has been doing. Mr. Jenkins talked about current
training. Ms. Gomez spoke about proposed L&I rates. Mr. Schulte presented the benefits of Conservation
Voltage Reduction (CVR). Mr. Curly shared year end Aquatic Center numbers. Mr. Oakes spoke about the recent
Honor Flight with Mr. McCandless. Mr. Ferguson spoke about recent completed street projects.
L. Mayor’s Report Mayor Pro Tem Posthuma spoke the Special Joint meeting for the Comprehensive Plan
and budget presentations.
M. Council Reports Councilmember Barthels spoke about the Joint Council and Planning Commission
meeting to review the Comprehensive Plan and the budget presentations. Councilmember Long spoke about the
recent General Government committee meeting and election day. Councilmember Belock spoke about the recent
Trunk or Treat event and election day. Councilmember LaBar spoke about the budget presentations and the
upcoming Sterling Moorman meeting.
P. Closed Session None
N. Conclusion of Meeting Mayor Martin concluded the meeting at 9:13 pm.

City Clerk

Mayor

SPECIAL CITY COUNCIL MEETING
October 28, 2026
Mayor Martin called the Special Joint City Council and Planning Commission meeting to order at 6:00 p.m. at
the City Council Chambers, 609 2nd Street.
Councilmembers present were Councilmember Hahn, Councilmember Barthels, Councilmember Long,
Councilmember Belock, and Councilmember LaBar. Planning Commissions present were Commission
Valencia, Commissioner McCormick, Commissioner Nilles, and Commissioner Ricketson. Staff members
present were Ms. Klinkenberg, Mr. Mourning, Ms. Beeman, Mr. Bonwell, Mr. Rouse, Mr. Ferguson, and Mr.
Curly.
Comprehensive Plan
The City Council and Planning Commission finished reviewing the 2026 – 2046 Comprehensive Plan
The meeting was concluded at 7:38 p.m.

City Clerk

Mayor

SPECIAL CITY COUNCIL MEETING
November 4, 2026
Mayor Martin called the Special City Council meeting to order at 5:05 p.m. at the City Council Chambers, 609
2nd Street.
Councilmembers present were Councilmember Hahn, Councilmember Barthels, Councilmember Posthuma,
Councilmember Long, and Councilmember LaBar. Staff members present were Ms. Klinkenberg, Mr. Rouse,
Mr. Ferguson, Mr. Schulte, Mr. Curly, and Ms. Gomez.
City Council 2027 Budget Workshop
The City Council held a discussion regarding the 2027 budget.
The meeting was concluded at 7:24 p.m.

City Clerk

Mayor

City Of Cheney
Light Department
112 Anderson Road
Cheney, Washington 99004
Phone: (509) 498-9230
Fax: (509) 498-9249
www.cityofcheney.org

ELECTRIC SERVICE DISCONNECT POLICY
The City of Cheney Light Department is committed to providing safe, reliable, and
affordable energy to our Citizens and neighbors. From time to time there will be
instances, due to the non-payment of utility bills, where the Light Department must
disconnect services until such a time as all invoices and penalties are paid by the
customer. To comply with City of Cheney Code (14.04.160) and to limit the unintended
interruption of service, the following steps should be followed.
Following the failure to pay for City services, The City of Cheney will provide a minimum
of two separate disconnection notices prior to the disconnection of electric service.
Whenever possible the notices will be sent via USPS mail and electronically if available.
*Disconnects unless otherwise communicated will be scheduled to start on the first
Wednesday of the first full week of each month.
The First Disconnection Notice will be sent to the customer at least eight days
prior to the planned date of disconnection.
 The Second Disconnection Notice will be sent to the customer at least two days
prior to the planned date of disconnection. This will be the last notice sent prior
to disconnection of services. A disconnection fee will apply if the electric service
is ultimately disconnected.
 Each Disconnection Notice should include all relevant information about the
action;
a. The cause for disconnection, the amount owed for electric service, how to
avoid disconnection, how to apply for energy assistance, low-income
assistance, etc.
b. Information about additional charges and reconnect fees if applicable.
c. City of Cheney utility billing contact information.
 The Finance Department will provide a list of disconnect orders for the Light
Department to complete.
 The Light Department will either perform a remote disconnect if available, or a
physical disconnect if the remote option is unavailable.


City Of Cheney
Light Department
112 Anderson Road
Cheney, Washington 99004
Phone: (509) 498-9230
Fax: (509) 498-9249
www.cityofcheney.org

General Notes :
1. Disconnects of service may be suspended or rescheduled during times of
extreme seasonal weather changes. These are typically in the summer and
winter months where sustained overnight or daytime temperatures are
expected to be less than 35 OF or greater than 95 OF.
2. If the service can be disconnected remotely, a Cheney Light Department
representative will not make a final visit to the site.
3. Remote disconnects should be made between the hours of 8:00 a.m. and
12:00 p.m. but may take place at any time.
4. Physical disconnects will take place during regular City of Cheney business
hours.
5. Disconnect extensions are only available prior to the date of disconnection
and are subject to the disconnect extension fee.
6. Service can only be restored following the payment of all invoices, late fees,
and penalties.
7. Reconnect requests after business hours will only be completed if the afterhours reconnect fee is also collected.
8. This policy will be updated as needed.

AGREEMENT
BETWEEN
THE CITY OF CHENEY
AND

TEAMSTERS UNION LOCAL 690
JANUARY 1, 2027
THROUGH

DECEMBER 31, 2029

TABLE OF CONTENTS
PREAMBLE .................................................................................................................... 2
ARTICLE 1. PURPOSE ................................................................................................... 3
ARTICLE 2. DEFINITIONS ............................................................................................ 3
ARTICLE 3. RECOGNITION ..........................................................................................3
ARTICLE 4. UNION SECIRUTY CLAUSE ..................................................................... 4
ARTICLE 5. EMPLOYER RIGHTS ................................................................................ 5
ARTICLE 6. PERFORMANCE OF DUTY .......................................................................6
ARTICLE 7. HOURS OF WORK .....................................................................................6
ARTICLE 8. OVERTIME ................................................................................................ 7
ARTICLE 9. SALARIES .................................................................................................. 9
ARTICLE 10. HEALTH BENEFITS .............................................................................. 10
ARTICLE 11. CLOTHING .............................................................................................12
ARTICLE 12. HOLIDAYS ............................................................................................. 12
ARTICLE 13. VACATION, EDUCATION, SICK, AND MILITYAR LEAVE; LEAVE
WITHOUT PAY; ATTENDANCE AND EXCESSIVE ABSENTEEISM; JURY DUTY ....13
ARTICLE 14. TRAINING SESSIONS AND DEPARTMENTAL MEETINGS ................ 18
ARTICLE 15. ENTIRE AGREEMENT .......................................................................... 18
ARTICLE 16. GRIEVANCE PROCEDURE ................................................................... 19
ARTICLE 17. UNION PARTICIPATION ....................................................................... 23
ARTICLE 18. OTHER DUTIES AND PROVISIONS ..................................................... 23
ARTICLE 19. SAVINGS CLAUSE ................................................................................. 25
ARTICLE 20. DURATION OF THIS AGREEMENT ..................................................... 25
ATTACHMENT A ..........................................................................................................26

PREAMBLE
This Agreement is made by and between the City of Cheney, a municipal corporation of the
State of Washington, hereinafter referred to as the “Employer” and the Teamsters Union Local
690, hereinafter referred to as the “Union.”

1

ARTICLE 1. PURPOSE
The purpose of the Employer and the Union in entering into this agreement is to set forth their
complete agreement with regard to wages, hours, and public safety, the morale and security of
persons covered by this agreement, and harmonious relations, giving recognition to the rights
and responsibilities of the City and the Union.
ARTICLE 2. DEFINITIONS
As used herein, the following terms are defined:
A. “Employer” means the City of Cheney, Washington.
B. “Union” means Teamsters Union Local 690.
C. “Employee” means all probationary, regular full-time, and regular part-timepersonnelin the
bargaining unit (as described in subparagraph “D” hereof) covered by this Agreement.
D. “Bargaining Unit” as used herein means all probationary, regular full-time, regular part-time,
and relief personnel who are not excluded under the definition of “Employee.”
E. “Hourly Wages” means the rate of pay so identified and set forth in Article 9 of this
Agreement and the City of Cheney’s most recent Compensation Ordinance.
F. “Department” means the Cheney Police Department.
ARTICLE 3. RECOGNITION
A. The Employer agrees to recognize the Union as the exclusive bargaining representative on
matters concerning wages, hours, and working conditions for the employees in the bargaining
unit (as defined in Article 2, Subparagraph “D”).
B. Work involving the performance of services within the classification contained herein is
recognized as bargaining unit work and shall not be performed by any person not a member
of the bargaining unit, except in cases of emergency where bargaining unit employees are
unavailable to perform said services..
ARTICLE 4. UNION SECURITY CLAUSE
The Employer recognizes the Teamsters Local 690 (hereinafter UNION) as the sole and
exclusive bargaining representative in all matters concerning wages, hours, and other conditions
of employment for all employees described in the recognition clause.
The Employer shall remain neutral when communicating with employees about Union
membership and direct the employee to discuss union membership with a Union Staff
2

Representative and or contact the Washington State Public Employment Relations Commission
(“PERC”).
The Employer agrees to deduct an amount equal to the membership dues from the compensation
of employees who request such deduction in writing within thirty (30) calendar days of receipt of
a properly completed request submitted to the appropriate agency payroll office. Such requests
will be made on a Union payroll deduction authorization card. The Union shall provide the
Employer copies of the blank payroll deduction authorization card for distribution to new
employees.
Upon receipt of the employee’s written authorization, the Employer will deduct from the
employee’s compensation an amount equal to the dues required to be a member of the Union.
The Employer will provide payments for the deductions to the Union at the Union’s official
headquarters each pay period.
Forty-five (45) calendar days prior to any change in dues, the Union will provide the Human
Resources Department and Payroll Department, the percentage and maximum dues to be
deducted from the employee’s compensation.
Union payroll authorization cards are valid whether paper or electronic and either way the
Employer agrees to keep a copy in a secure location which shall be made available for review to
the Union.
An employee may revoke his or her authorization for payroll deduction of payments to the Union
by written notice to the Union and the Employer in accordance with the terms and conditions of
their signed authorization card. If the employee has revoked his or her authorization for payroll
deduction in accordance with the terms and conditions of their signed authorization card, every
effort will be made to end the deduction effective on the first payroll period following their
revocation, and not later than the second payroll period. The Union has the right to challenge any
Employer action to revoke a dues deduction authorization by filing a grievance under this
Agreement’s grievance procedure.
The Union agrees to indemnify and hold the Employer harmless against any liability which may
arise by reason of any action taken by the Employer to comply with the provisions of this
Article, including reimbursement for any legal fees or expenses incurred in connection with such
action. The Employer will promptly notify the Union in writing of any claim, demand, suit or
other form of liability asserted against it relating to its implementation of this article.

ARTICLE 5. EMPLOYER RIGHTS
Any and all rights concerned with the management and operation of the Department are
exclusively that of the Employer unless otherwise provided by the terms of this Agreement.
Nothing in this Agreement shall be construed as delegating to others the authority conferred by
law on the Employer, or in any way abridging or reducing such authority. The Union recognizes
that
3

Employer retains all management rights granted by the Common Law, Statutes, and City of
Cheney Rules and Policies and further, that all rights concerned with the management and
operation of the City of Cheney are exclusively that of the Employer, unless otherwise
specifically provided by the terms of this Agreement. The City of Cheney also possesses the sole
right and authority to establish public policy and direct the operation of the City in all aspects,
including, but not limited to, all rights and authority exercised by the City prior to the execution
of this Agreement.
The Employer shall be responsible to maintain discipline and efficiency; and the management
rights include, but are not limited to the following:


Determining the City of Cheney’s mission and policy, and setting forth all standards of
service offered to the public



Determining the methods, means, and number of personnel needed to carry out the City of
Cheney’s mission



Planning, directing, controlling, and determining the operation of services to be conducted by
the employees of the City of Cheney



Determining which services are going to be performed



Establishing work methods



Establishing staffing levels



Establishing qualifications for employment



Directing the work force



Making, publishing, and enforcing personnel rules and regulations



Introducing new or improved methods, equipment, or facilities



Contracting out for goods as provided by the policies and procedures of the City of Cheney,
state law, or ordinance



Maintaining work schedules and starting times



Assigning work



Disciplining, suspending, or discharging employees

4

ARTICLE 6. PERFORMANCE OF DUTY
Employees shall perform their assigned duties to the best of their ability. The Union and
Employer agree that there shall be no strikes, lockouts, slowdown, stoppage of work, or any
interference with efficient operation of the Department during the term of this Agreement.

ARTICLE 7. HOURS OF WORK
A. Employees shall work an eight- (8) hour shift including a 30-minute paid lunch break. A
normal shift shall consist of eight (8) consecutive hours.
B. Employees working three (3) or more hours longer than a normal eight- (8) hour workday
shall be allowed at least one thirty- (30) minute meal period during the overtime period. The
work week (Monday through Sunday), allowing consecutive days off, shall be composed of
forty (40) hours per week, either in five (5) consecutive eight- (8) hour days or four (4)
consecutive ten- (10) hour days, at the discretion of the Chief of Police. Full-time regular
employees shall be offered forty (40) hours’ work or pay each work week. Any program
change that may affect the hours worked will be discussed with the employees prior to
implementation. The Employer agrees to consider information given by employees but will
make the final decision. Rest periods shall be provided at the rate of not less than ten (10)
minutes for each four (4) hours of working time.
C. Employees who work a scheduled four- (4) day, ten (10) hours per day shift shall be entitled
to a total of seventy-five (75) minutes in break time, including the thirty- (30) minute paid
lunch break referenced above, for each ten- (10) hour shift. Employees working two (2) or
more hours longer than their scheduled shift shall be allowed at least one thirty- (30) minute
additional meal period prior to or during the overtime period.
D. The Employer agrees that in the event of a routine work week or shift change, a one- (1)
week notice of such change shall be given to each employee before such change is made,
except for a shift change of one (1) hour or less or unless an emergency exists as determined
by the Chief of Police. Shift changes other than described above can be made by mutual
agreement with the Employer and employees.
E. Unless otherwise provided for call-ins or call-backs, an employee required to report for work
may be offered no less than two (2) hours’ work or pay. The seniority list will be used when
overtime is used to fill an absence of greater than two (2) hours.
F. Each employee shall provide a current address and phone number(s) to the Department.
Employees will be expected to return phone messages for shift coverage and other
Department matters in a timely manner. Employees will be given a period of time to respond
to the offer that is reasonable to the situation before the next person on the list will be
contacted. Any shifts that cannot be filled will then be offered to part-time or temporary
employees, then supervisory employees. If the absence is still not filled, it will be
management’s right to deny the request.
5

G. Pursuant to a Memorandum of Understanding previously executed by the Parties,
employees shall be paid on the following schedule: : employee hours earned 1st – 15th
of each month will be paid on the 25th of that month and employee hours earned 16th –
(last day of the month) will be paid on the 10th of the following month.

ARTICLE 8. OVERTIME
A. Daily and Weekly Overtime
1. All compensable hours (work) which has been authorized by the Chief of Police and is
performed in excess of forty (40) hours at straight time in a work week (Sunday through
Saturday) shall constitute overtime and shall be paid for at one and one-half (1.5) times
the employee’s regular hourly rate of pay unless otherwise provided herein.
2. Employees attending contract negotiation meetings outside of their regularly scheduled
shift shall be paid at one and one-half (1.5) times in compensatory time. The number of
bargaining unit members compensated for any contract negotiation meetings shall not
exceed two (2).
B. Pay for Court Appearance and Department of Licensing
1. In the event an employee receives a direct order from the Chief of Police to appear
outside their regularly scheduled work hours, they shall be paid at the rate of one and
one-half (1.5) times their regular hourly rate of pay for the actual time with a minimum of
two (2) hours.
2. In the event an employee receives a competent subpoena to appear and give testimony in
any matter (excluding private civil matters not involving government agencies) which
arose out of the employee’s actions as an employee of the City, or on behalf of the City of
Cheney, they shall be paid at the rate of one and one-half (1.5) times their regular hourly
rate of pay for actual time with a minimum of two (2) hours.
3. Any fees or other compensation paid to the employee for testimony given in their
capacity as an employee of the City shall be remitted to the Employer.
4. In the event the above-included appearances are held on an employee’s regularlyscheduled day off and cancelled less than twenty-four (24) hours prior to the scheduled
appearance time, the City will guarantee a minimum of two (2) hours at one and one-half
(1½) times the regular hourly rate.
C. Compensatory Time
The following shall constitute conditions which will be followed in the use of compensatory
time.

6

1.

Employees may only carryover fifty-five (55) hours of compensatory time from
one year to the next. A year is defined as the period of December 1st through the
following November 30th. In the event an employee has more than the allowable
number of carryover hours, the excess will be automatically cashed out in the
final December pay period.

2.

Employees may cash out accrued compensatory time by providing written request
to either Human Resources or Payroll.

3.

The maximum amount of compensatory time an employee may have in the bank
at any point during the fiscal year is fifty-five (55) hours.

4.

Compensatory time may be carried over the maximum carryover of fifty-five (55)
hours, yearly, with a scheduled time off plan approved by the Chief of Police.

5.

Employee may choose:
a.
b.

6.

Overtime pay at one and one-half (1.5) the normal rate of pay; or
Compensatory time at time and one-half (1.5).

Any and all requests for compensatory time use must receive prior approval from
the Chief of Police.

ARTICLE 9. COMPENSATION
A. The hourly wages of the employees covered by this Agreement will be set forth in the
Employer’s most recent Compensation Ordinance. The position of Senior Police Support
Specialist will be 10% above the Police Support Specialist.
B. For the year 2027, employees of the Union shall receive an increase to their regular hourly
rate of pay of 6.00%. For the years 2028-2029, employees of the Union shall receive an
annual Cost of Living Adjustment (“COLA”) increase to their regular hourly rate of pay
based on the CPI-W (West B/C) index from July to July within a range of no less than 3.00%
and no more than 6.00%. Beginning in the year 2029, a new Step 6 shall be added to the
employees’ pay scale table. The regular hourly rate of pay for Step 6 shall be 3.00% greater
than the 2029 regular hourly rate of pay for Step 5.
C. All employees shall receive a one-to-one (1:1) match from Employer into the
employee’s Deferred Compensation account on the following schedule:
2027 - Up to 3.25% of regular hourly rate of pay
2028 - Up to 3.50% of regular hourly rate of pay
2029 - Up to 3.75% of regular hourly rate of pay
Employees must make changes prior to the first day of the month they want the change to be
effective.
7

The Employer currently offers five companies for employees to invest with. To simplify the
process for both HR and Payroll, the Employer will be removing the option to invest with
Empower and Voya for any new hires. Employees that are currently invested with Empower
or Voya will still be able to make contributions to their accounts, including the Employer’s
matching funds. At this time, no Union employees are invested with Empower or Voya.
D. Upon hire, bargaining unit members will be assigned a step within the assigned wage range
commensurate with their education and experience related to the position. The bargaining
unit member will receive a step increase at six (6) months after their date of hire, assuming
they are meeting performance standards. Additional step increases will be every twelve (12)
months from the date of their previous increase until the member reaches the top step of their
wage range, assuming they are meeting the performance standards as determined by the
Chief of Police.
E. Longevity.Upon completion of five (5) years of service to the Employer, employees will be
eligible for a five percent (5%) increase to their regular hourly rate of pay. Upon completion
of ten (10) years of service to the Employer, employees will be eligible for an additional
three percent (3%) increase to their regular hourly rate of pay. Upon completion of fifteen
(15) years of service to the Employer, employees will be eligible for an additional three and
one-half percent (3.5%) increase to their regular hourly rate of pay.

ARTICLE 10. HEALTH BENEFITS
The City agrees to pay a portion of health benefits for all regular full-time employees. Part-time
regular employees are entitled to prorated benefits per the City of Cheney Policies and
Procedures.
A. Medical Benefits
The City agrees to pay 85% of premium and the employee pays 15% of premium. The City
and Union acknowledge that the current Association of Washington Cities (“AWC”) and
Group Health plans shall be maintained for the term of this Agreement; further, that the
Affordable Care Act may affect coverage. In the event of significant changes to current
coverage, the City and Union shall meet to discuss the effects and consider options. Such
meetings shall occur not less than sixty (60) days prior to a proposed change(s).
B. Dental Insurance
The City will pay the premium of the Teamster Dental Plan “B” for full family for the term
of this agreement.
C. Optical/Vision Insurance

8

The City will pay the premium of the Teamster Optical Plan “V” for full family for the term
of this agreement.
D. Life Insurance
The City will pay the premium of the AWC Group Life Insurance Term Policy for $50,000
coverage for the employee for the term of this agreement. Additional insurance can be
purchased by the employee at the employee’s expense.
E. Long-Term Disability Insurance
1. The City will pay the premium of the AWC Long-Term Disability Plan for the employee
for the term of this agreement. The Plan will provide up to 60% after a ninety- (90) day
waiting period, as per AWC requirements.
2. The City agrees to apply sick and vacation leave as a match to State Industrial Insurance
payments to make a 100% paycheck for employees for injuries incurred in the line of
duty only, for employees with more than two years with the City of Cheney who have
carried an average of one hundred twenty (120) hours of sick leave over the past twelve
(12) months. For employees with less than two (2) years’ employment, this provision will
be based on a sliding scale and the employee must have averaged carrying a minimum of
50% of sick leave accrual they were eligible over their employment.
F. Employee Assistance Program
The City will pay the premium for the Employee Assistance Program, through the AWC, for
full family coverage for the life of this contract.
G. Voluntary Employee Beneficiary Association (VEBA) Accounts
The Employer will provide a monthly VEBA contribution for each employee of $130.00 for
2027, $140.00 for 2028, and $150.00 for 2029.
H. Employer Dental and Optical Payment
The Employer shall pay each month into the Employee Benefits Trust Fund for dental and
optical insurance as designed in B and C of this article, the amounts indicated on behalf of
each employee who was compensated for eighty (80) hours or more in the month preceding
the month in which the contribution is due. Benefits are prorated for part-time employees.
I. Extension of Insurance Benefits
Any employee eligible for sick leave and annual leave benefits, who is unable to resume the
duties of his/her employment by the City because of proven illness or injury, shall, for a
period of six (6) months after exhaustion of said leave benefits, continue to be provided the
City contribution toward group insurance benefits provided that for employees with more
9

than two (2) years with the City of Cheney who have carried an average of one hundred
twenty
To ensure
(120) hours
fairness
of sick leave over the past twelve (12) months. For employees with less
thanand
twoconsistency
(2) years’ employment, this provision will be based on a sliding scale and the
employee
between
must have averaged carrying a minimum of 50% of sick leave accrual they were
eligible
employees,
over their employment. An employee must have returned to work for a minimum of
one Holidays
hundred eighty
and (180) calendar days to qualify for another extension of benefits as
provided
Floating
in this
Holidays
section.
shall be paid at the
employee’s regular
rate of pay for a
ARTICLE 11. CLOTHING
total of eight (8)
All employees
shall report
hours, regardless
offor duty in a neat and presentable manner. Should the Employer
require the
uniforms,
such apparel shall be furnished by the Employer with a reasonable number of
employee’s
uniforms
given
the
employees to accommodate this order.
regularly scheduled
shift length
(“Holiday Pay”). If
an employee is
ARTICLE 12. HOLIDAYS
working a shift
A. Holidays Observed by the Employer are:
longer than eight
(8) hours, the
New Year’s Day
January 1
employee may
Martin Luther King, Jr. Day
Third Monday in January
either: (a) use
President’s Day
Third Monday in February
accrued vacation or
Memorial Day
Last Monday in May
compensatory time
Juneteenth
June 19th
to make up the
Independence Day
July 4
difference in shift
Labor Day
First Monday in September
hours, (b) request a
Veteran’s Day
November 11
leave of absence so
Thanksgiving Day
Fourth Thursday in November
those hours in
Day After Thanksgiving
Friday after Thanksgiving
excess of the eight
Christmas Day
December 25
(8) Holiday Pay
Two Floating Holidays
At Employee’s Choice
hours are unpaid, or
Any holiday declared by the City Council
(c) amend their
work schedule to
B. The date each Floating Holiday is taken will be determined by the employee’s request,
make up any
subject to the approval of the department. The Floating Holidays shall be scheduled
unworked shift
on a first-come basis and taken in the applicable calendar year (may not be carried
hours on the
over).
Holiday that are not
compensated with
An additional (third) Floating Holiday can be earned by each employee through
Holiday Pay. An
participation in Employer wellness activities counting towards the Employer’s Well City
employee regularly
Award through the AWC Benefit Trust. To earn the additional Floating Holiday,
assigned to a fouremployees that receive medical benefits from the Employer must earn 350 points within
day, ten-hour
the AWC Benefit Trust’s Health Central Program and participate in two wellness
schedule who
activities during the calendar year. For those bargaining unit members that do not receive
receives eight hours
medical benefits from the Employer, the employee must participate in three wellness
of Holiday Pay for
activities throughout the year.
10

a recognized Holiday that falls on a regularly scheduled workday may, by mutual
agreement with the Chief of Police, adjust the employee’s remaining scheduled hours
within the same Monday -Sunday workweek so that the employee receives forty hours of
combined work and Holiday Pay. Hours worked pursuant to an approved schedule
adjustment shall be compensated at the employee’s normal rate of pay unless overtime
compensation is otherwise required under Article 8 or applicable law. Nothing in this
provision authorizes the nonpayment of overtime required by state or federal law.
Whenever any of the holidays listed above shall fall on a Sunday, the following Monday
shall be observed as the holiday. Whenever any of the holidays listed above shall fall on
a Saturday, the preceding Friday shall be observed as the holiday. If a holiday is
observed on an employee’s scheduled day off, the employee shall be entitled to observe
the holiday on the following or preceding regularly scheduled work day. If an employee
works on any of the holidays listed, he/she shall be paid at the rate of time and one-half
(1.5) for hours worked on the holiday, plus regular Holiday Pay. Floating Holidays must
be utilized as a single day off and may not be broken up or utilized in increments.
C. In the event the Mayor of the City of Cheney declares a holiday, it shall be granted or equally
compensated.

ARTICLE 13. VACATION, EDUCATION, SICK, AND MILITARY LEAVE; LEAVE
WITHOUT PAY; ATTENDANCE AND EXCESSIVE ABSENTEEISM; JURY DUTY
A. Vacation
1. Each bargaining unit employee shall accrue vacation time as set forth below, based on
continuous length of service accumulated as of the most recent anniversary date of
employment.
2. Vacation time shall accrue on the following basis:
Length of Service

8 hours

0 through 3 years

10 hours

3 years completed

12 hours

6 years completed

14 hours

9 years completed

16 hours

12 years completed
Monthly Accrual of Vacation Leave
3. The rate of vacation leave pay shall be the employee’s regular hourly rate of pay.

11

4. Vacation leave shall be granted at the time requested by the employee with the
concurrence of the Chief of Police and dependent upon workload.
5. The Employer will consider requests for vacation leave in relation to staffing needs.
These requests will be determined on a first-come, first-serve basis.
6. Any employee who is laid off, discharged, retired, or separated from the service of the
Employer for any reason, prior to taking his/her accrued vacation, shall be compensated
in cash for the unused vacation he/she has accumulated at the time of separation, up to
the maximum accrual of two hundred forty (240) hours. However, in the event an
employee fails to give the Employer at least ten (10) calendar days’ written notice before
quitting, the foregoing vacation pay cashout shall be forfeited.
7. Compassionate Leave. Employees will be allowed five (5) days off with pay due to a
serious illness in an employee’s immediate family. Such time will be deducted from the
employee’s sick leave or vacation account at the employee’s discretion. The definition of
immediate family shall include mother, father, spouse, sister, brother, children, father-inlaw, mother-in-law, grandparents and grandchildren, domestic partner or others residing
in the employee’s household. All employees are covered under the Employer’s Family
Medical Leave Policy. The Employer’s Family Medical Leave Policy, if any, shall state
that employees may retain forty (40) hours of sick leave and forty (40) hours of vacation
leave during the medical leave.
8. Bereavement Leave.
a.

Bereavement leave entitles an employee up to five (5) working days off with pay,
not chargeable to sick leave balance, if an employee suffers a death of a member
of his/her immediate family as defined below. Bereavement leave in the case of a
spouse or a child is allowed up to ten (10) working days.

b.

Immediate family shall be defined as follows: Spouse, State Registered Domestic
Partner, parent, step-parent, child (biological, adopted, step or foster) regardless
of age or dependency status, sibling, grandparent, grandchild, father-in-law,
mother-in-law, brother-in-law, sister-in-law, daughter-in-law, son-in-law, or a
more distant relative if living as a member of the employee’s immediate family.

c.

If the employee requires additional bereavement time, they may request additional
time off chargeable to accrued compensatory time, vacation leave, or sick leave.

B. Education Leave
With thirty (30) days’ notice the Employer may grant up to four (4) months’ leave of absence
without pay for the purpose of educational study at a recognized college or university. The
Employer will consider paying the employee’s tuition for a specific class that will show
benefit to the Employer as well as the employee. Such class or program must be approved by

12

the Mayor or his/her designee. The employee need not be on leave to participate. This benefit
is to be considered nongrievable.
C. Sick Leave
1. Sick leave shall accrue at the rate of eight (8) hours for each full month of service. Sick
leave shall accrue for each month in which the employee is compensated for eighty (80)
or more hours of work and shall be prorated commensurate with hours worked. Sick
leave shall accrue to a maximum of nine hundred sixty (960) hours.
2. Upon retirement or full disability or in the case of death of the employee, employees can
cash out accrued sick leave up to the maximum accrual of nine hundred sixty (960) hours
at the following rate: Zero (0) hours to two hundred forty (240) hours at 100% and the
remainder at 25%. For purposes of this Agreement, “retirement” shall have the same
meaning as that provided by the Washington State Department of Retirements Systems
(“DRS”), which is currently defined as an employee’s separation from employment with
Employer and collecting monthly pension.
3. Employees may convert accrued sick leave in excess of nine hundred sixty (960) hours to
vacation at the same rate of twenty-five percent (25%) The sick leave cap shall remain at
nine hundred sixty (960) hours.
D. Military Leave
1. Any employee of the City who is a member of the State National Guard or federal reserve
military unit shall be entitled to be absent from his/her duties with the City with full pay
for up to twenty-one (21) calendar days during each calendar year while engaging in the
performance of officially ordered military duty and while going to or returning from such
duty in accordance with the laws of the State of Washington (RCW 38.40.060). Such
leaves shall be in addition to any other leave or vacation benefits. In addition, all regular
full-time or part-time employees (who have completed their first three months of
employment) receive unpaid military leave of up to two (2) weeks for each instance of
military service in compliance with the federal Uniformed Services Employment and
Reemployment Rights Act (“USERRA”).
2. Employees who are called or volunteer for service with the armed forces of the United
States or the Washington National Guard shall be entitled to reinstatement in accordance
with the provisions of the State Law (Ch. 73.16 RCW) and USERRA.
3. An employee promoted to fill a vacancy created by a person serving in the armed forces
shall hold such position subject to the return of the veteran. The employee affected by the
return shall be restored to the position he/she had previously held or any other equivalent
position.
4. A new employee hired to fill a vacancy created by a person serving in the armed forces
shall hold such position subject to the return of the veteran. The employee affected by the
13

return shall be placed in as nearly equal a vacant position as may exist, or if no such
position exists, may be subject to layoff.
E. Leave Without Pay
Upon written request of the employee, the Mayor or his/her designee, after consultation with
the respective department head, may grant a regularly scheduled employee leave of absence
without pay not to exceed six (6) months. Approval of such leave shall be in writing and
signed by the Mayor or his/her designee. No vacation or sick leave benefits or any other
fringe benefits shall accrue while an employee is on leave of absence without pay; moreover,
the employee’s anniversary date will be adjusted by the length of the leave granted. Upon
expiration of a regularly approved leave without pay, the employee shall be reinstated in the
position held at the time the leave was granted or to another equivalent position. The
employee may continue medical, dental, optical, and other insurances by paying the
premiums.
F. Washington State Paid Family and Medical Leave Benefit/Insurance Program.
The Employer and employee shall pay required premiums established by the Washington
State Employment Security Department (“ESD”) for the Paid Family and Medical Leave
Benefit / Insurance Program.
After the Employment Security Department (ESD) has approved an employee’s request for
PFML, hours claimed by the employee as PFML are considered a leave of absence from the
Employer since no wage is earned and no compensation is paid. Sick and vacation leave will
be earned by an employee for any pay period where the employee is compensated for forty
(40) or more hours. These hours shall be prorated per hours compensated by the Employer.
Anniversary dates will be adjusted for time claimed as PFML. Deferred compensation will
be computed on hours compensated by the Employer. Employees on PFML are not eligible
for standby pay or holiday pay during the time not compensated by the Employer.
Employees are responsible for making arrangements to pay for benefits, union dues, existing
loans, and any other required items while they are on PFML. Per Department of Retirement
Systems (DRS) rules, service credit will not be earned for any leave of absence without pay,
including PFML
G. Attendance and Excessive Absenteeism
1. Attendance and punctuality are important to the efficient operation of the City’s Police
Department. Good attendance and punctuality are essential components of good
employee performance and are measured by objective standards. Poor attendance and
tardiness disrupt the City’s ability to deliver necessary services in a timely and effective
manner.
2. Each employee shall be responsible for being present at the correct time for each day. On
occasion employees may have reason to be absent from work. On these occasions
employees are expected to contact their supervisor at least two (2) hours before their
14

scheduled starting time on the first day and each subsequent day of an unscheduled
absence, i.e., due to personal or dependent illness or an emergency. Employees must
indicate the reason and probable duration of the absence.
3. If the Employer has reason to believe an employee may be abusing his or her sick leave,
the following steps will be initiated:
a. The Chief of Police shall take the appropriate and necessary steps to identify the basis
for the leave and attempt to resolve the problem without resorting to disciplinary
action.
b. The Employer may call a labor management meeting among the employee suspected
of abusing sick leave, the employee’s supervisor, the employee’s Union
representative, and the City Administrator (or his/her designee), at which time a
documented account of the employee’s sick leave use will be presented to him or her.
c. The employee shall then have five (5) working days to research the information
provided to him or her to substantiate and justify or not justify the excessive use of
sick leave.
d. If the employee is unable to show justification or cause for the excessive use of sick
leave, he or she shall be given up to ninety (90) days to correct the performance
and/or to bring the use of sick leave under control. If it is to be less than ninety (90)
days, the amount of time necessary shall be mutually agreed upon between the
Employer and the Union.
e. If, after the expiration of the time period described above, the employee does not
succeed in bringing his or her sick leave use under control, the Employer may then
implement any necessary and appropriate disciplinary action up to and including
discharge.
H. Jury Duty
It is the civic obligation of each employee to serve on jury duty if he/she is called. Upon
notice, a Union employee shall provide the Chief of Police written notice that he/she has
been directed to report for jury duty. Should Employer service needs require it, the
Employer may request that the employee ask the court to excuse him/her from jury duty.
While on jury duty or while appearing as a legally required witness, an employee will receive
full pay from the Employer.

ARTICLE 14. TRAINING SESSIONS AND DEPARTMENTAL MEETINGS
A. Training which requires an employee to attend during his/her off-duty hours will be
compensated at one and one-half (1.5) times the employee’s regular wage.
15

B. The Employer will make provisions for such annual training, when annual training is
required.
C. Department meetings requiring attendance outside of an employee’s scheduled shift, but
which is for purposes other than training, shall be paid at a premium of two (2) hours for
each employee
D. The Employer shall make available and offer a reasonable number of paid hours, up to forty
(40) hours (recognizing that there are a limited number of appropriate training workshops
available) per contract year for the purpose of an employee educational advancement
program to enhance their performance on behalf of their employment with the City of
Cheney.
ARTICLE 15. ENTIRE AGREEMENT
A. The Agreement expressed herein in writing constitutes the entire agreement
between the parties and no oral statement shall add to or supersede any of its
provisions.
B. The parties acknowledge that each has had the unlimited right and opportunity to
make proposals with respect to any matter deemed a proper subject for collective
bargaining. The results of the exercise of that right are set forth in the agreement.
ARTICLE 16. GRIEVANCE PROCEDURE
A. General Conduct, Discipline, Termination, and Appeal; Personnel Rules and
Regulations
1. Personal Appearance and Conduct. It shall be the responsibility of all
employees to represent the Employer to the public in a manner that shall be
courteous, efficient, and helpful.
a. All employees shall be neat and clean in appearance, and shall conduct
themselves in a manner which is appropriate for an employee in the public
service.
b. Employees shall be courteous, efficient, and helpful to everyone in their work and
shall do the best job possible on every assignment.
2. Purpose of Disciplinary Action. The Employer will attempt at all times to operate its
business in the most efficient, economical, and orderly manner consistent with good
management practices. All employees shall conduct themselves in a manner that will be
consistent with established rules and regulations. Disciplinary action is not intended

16

primarily to be punitive, but rather to maintain the efficiency of day-to-day operations
and to keep sound principles of human relations in City service.
3. Causes for Disciplinary Action. All appointed employees may be subjected to
disciplinary action for cause, including but not limited to:
a. Drinking intoxicating beverages or the use of restricted drugs on the job, or arriving
on the job under the influence of intoxicating beverages or drugs
b. Violation of a lawful duty
c. Insubordination
d. Breach of discipline
e. Being absent from work without first notifying and securing permission from the
employee’s supervisor
f. Being habitually absent or tardy for any reason
g. Misconduct which, in the judgment of the appointing official, is sufficient to show the
offender to be an unsuitable and unfit person to be employed in the public service
h. Conviction of a felony; conviction of a misdemeanor involving moral turpitude
i. Using religious, political, or fraternal influence in duty-related matters
j. Accepting fees, gifts, or other valuable items in the performance of the employee’s
official duties for the Employer
k. Inability to perform the assigned job
l. Misstatements on an application for employment with Employer
m. Sexual harassment
n. Violation of any ordinance, directives, or policy of the City or department operating
procedure or regulations
o. Violation of safety rules; personal conduct at work that is dangerous to others
p. Conviction of a felony or misdemeanor which could adversely impact the employee’s
ability to perform the duties of his/her position

17

q. Interfering with or disrupting the work of other employees on the job
r. Negligent or willful damage to the City’s property; waste of supplies and equipment;
theft
s. Fighting on the job
t. Discourteous treatment of the public or other employees
4. Forms of and Procedure for Disciplinary Action. The degree of discipline administered
must depend on the severity of the infraction and must be in accordance with any
appropriate labor contracts, and if applicable, Civil Service Rules and Regulations. It is
the responsibility of the Chief of Police to evaluate thoroughly the circumstances and
facts as objectively as possible. The Chief of Police will then apply the most suitable
form of discipline to the best of his/her knowledge and discretion.
There are several types of disciplinary action which may be applied to discourage
detrimental behavior or actions.
a. Oral Warning
1) Talk to the employee in private.
2) This type of discipline should be applied for infractions of a relatively minor
degree. The Chief of Police should inform the employee that he/she is
administering an oral warning and that the employee is being given an
opportunity to correct the condition. If the condition is not corrected, the person
will be subject to more severe disciplinary measures.
3) A notation that an oral warning was given should be made for the employee’s
personnel file.
b. Written Warning
1) This notice will be issued by the Chief of Police in the event the employee
continues to disregard an oral warning, or if the infraction is severe enough to
warrant a written record in the employee’s personnel file.
2) The Chief of Police will set forth in the warning notice form the nature of the
infraction in detail and will sign the notice. He/she will discuss the warning notice
with the employee, to be certain that the employee understands the reasons for the
disciplinary action.
3) A copy of the warning notice is to be handed to the employee at the time of the
discussion of the discipline. The original copy is to be placed in the employee’s
personnel file.
18

c. Suspension
1) This form of discipline is administered as a result of a severe infraction of rules,
standards, or for excessive violations after the employee has received a written
warning and has not shown satisfactory improvement in his/her performance. This
is the most severe form of discipline given by the Employer short of termination.
It should be applied only after a thorough evaluation by the Chief of Police or
his/her designated representative. The Chief of Police recommending such
disciplinary action should discuss the suspension with the City Administrator.
2) Suspension may occur without written warnings if the incident is so severe as to
jeopardize the health and safety of others or for a severe violation of statutes,
laws, ordinances, or rules.
3) The Chief of Police shall set forth all facts leading to the reason for the
disciplinary suspension, and the duration of the suspension on a disciplinary
action form. He or she shall then inform the employee of the disciplinary action,
making certain that the employee is fully aware of the reasons for such action.
The original copy of the disciplinary action form is to be placed in the employee’s
personnel file with a copy given to the employee.
4) When the employee returns from a period of disciplinary suspension, the Chief of
Police should make certain that the employee returns to the job with as little
injury to his/her self-respect as possible.
5) The Mayor or his/her designee must approve all suspensions.
d. Discharge
1) Prior to the Chief of Police taking action on the discharge of an employee, he/she
must discuss his/her recommendation for discharge with the Mayor or designated
representative, to be certain that all facts have been reviewed and that there is
thorough justification for the discharge action. The Chief of Police must be certain
of all facts influencing his/her decision to discharge an employee, and should
attempt at all times to be as objective as possible in the evaluation of the
circumstances leading to the discharge.
2) If, in the opinion of the supervisor, the infraction is so severe as to necessitate
immediate termination, the supervisor should take action by placing the employee
on suspension until circumstances are reviewed with the Mayor or his/her
designated representative prior to final discharge action.
3) The
employee
19

must be given an opportunity to meet with the Chief of Police, City
Administrator, or Mayor to give an explanation of the undesirable behavior or
violation. The employee may be accompanied by a responsible person of his/her
choosing to act as a representative or witness.
4) A final decision to discharge an employee will be made only by the Mayor.
B. Grievance Definition, Procedure, and Time Limits
1. Definition. A grievance is defined as a claim or dispute by an employee with respect to
the interpretation or application of the provisions of this Agreement.
2. Procedure. Grievances shall be settled in the following manner.
a. The Union, upon receiving a complaint, shall determine if a grievance exists. If, in the
Union’s opinion, no grievance exists, no further action is necessary.
b. If the Union determines that the grievance does exist, the Union shall reduce the same
to writing. The written grievance shall be signed by the employee and, with or
without the employee, shall be presented to the Chief of Police within thirty (30)
calendar days of the alleged occurrence giving rise to the grievance.
c. If within ten (10) calendar days of presentment to the Chief of Police, the grievance
has not been settled, it shall then be immediately submitted to the Mayor for his/her
written response within (30) thirty calendar days.
d. If the grievance is still not resolved, both parties agree to refer the matter to
arbitration.
e. The arbitrator shall be a member of the American Arbitration Association (AAA) or
Federal Mediation Conciliation Service (FMCS) and shall be selected in accordance
with the established procedures of the AAA or FMCS, depending on which agency is
used. The cost of the arbitrator shall be borne by the losing party; in the event there is
no loser the costs shall be borne equally. Each party shall be responsible for its own
expenses of representation. In the event there is a cost associated with the rental of a
facility to conduct any arbitration proceedings the parties shall mutually agree to
share such expenses equally. The arbitrator shall render his decision based on the
interpretation and application of the agreement. The arbitrator’s decision shall be final
and binding.
f. The arbitrator shall confine him/herself to the issue submitted for arbitration and shall
have no authority to determine any other issue not so submitted to him or her. The
arbitrator shall not have any authority to change or modify the provisions of this
Agreement, but shall be authorized only to interpret existing provisions of this
Agreement as they may apply to the specific facts of the issue in dispute. The
arbitrator shall identify the loser (if there is one) in his or her decision.
20

3. Time Limits. The Employer and Union can, by mutual agreement, extend the time limits
of any of the above steps.

ARTICLE 17. UNION PARTICIPATION
Prior to the submission of the preliminary budget to the City Council the Mayor or his/her
authorized representative may meet with the Union at reasonable times each year to discuss
fringe benefits and wage rates of members of the bargaining unit, in order to give full
consideration to such items.

ARTICLE 18. OTHER DUTIES AND PROVISIONS
A. New Duties
The Employer agrees to discuss with the Union any other new duties assigned to or requested
of the employees. In the event that no agreement is reached between the two parties
concerning new duties, the matter will be brought before the Civil Service Commission for
resolution or may be submitted to Article 16, Grievance Procedure.
B. Seniority
1. Probationary Period. No person shall be appointed to a regular position until he/she has
satisfactorily served a probationary period of one (1) year. Persons reemployed who have
formerly acquired regular status in the class shall be subject to probation under the same
conditions of employment as any other beginning employee.
2. Seniority List. Once an employee has completed the probationary period, his or her name
shall be added to the seniority list and his/her seniority shall be dated back to the most
recent date of hire.
3. Seniority Schedule. The Employer agrees to the following seniority schedule as of the
date of this Agreement. Seniority shall prevail by order of listed names for those
employees whose hire date is the same.
Senior Police Support Specialist
Benjamin James

Date of Hire
11/12/2012

Police Support Specialist
Franciso Rivera III

Date of Hire
2/5/2024

21

The Employer agrees to recognize the principle of seniority when laying off, rehiring,
increasing, and reducing work hours with due consideration given to the ability of the
employees involved to perform the available work.
The City will require two or more positions to support the records division of the Cheney

Police Department. The two positions will be titled Police Support Specialist and/or
Senior Police Support Specialist.

22

4. Controversy Resolution. Should controversy arise from the application or interpretation
of this clause, the Employer and Union agree to meet and attempt to settle the matter
within seven (7) work days. Should the matter remain unresolved, it may be submitted to
the grievance procedure, as provided under Article 16 of this Agreement.
5. Breaking Seniority. Seniority (and hours worked towards accruing seniority) will be
broken by termination, failure to report within three (3) days of notice to return to work
after a layoff, or when laid off for longer than twelve (12) months, or absent from work
by any reason of sickness or injury for longer than twelve (12) months, unless extended
by mutual agreement between the Employer and the Union.
C. Drug-Free Workplace and Alcohol Testing Policy
It is understood that federal regulations make certain requirements for municipal employers
to follow and enforce. The Employer presently has a policy that meets minimal requirements.
It is also understood that these policies are subject to bargaining and such will continue
outside of this Agreement.
D. Tobacco Policy
It is understood that the Employer operates a tobacco-free worksite, and the Union agrees to
abide by the “No Tobacco” policy of the City of Cheney.

ARTICLE 19. SAVINGS CLAUSE
Should any provision of this Agreement be found to be in violation of any federal, state, or local
law, all other provisions of this Agreement shall remain in full force and effect for the term of
this Agreement.

ARTICLE 20. DURATION OF THIS AGREEMENT
This Agreement shall become effective January 1, 2027, and shall remain in effect through
December 31, 2029. In the event negotiations for a new agreement have not been completed by
January 1, 2030, the provisions contained in this agreement may remain in effect by mutual
agreement until the conclusion of the negotiations for a new agreement.

Signed this ______ day of _____________, 2026.

City of Cheney

Teamsters Union Local 690

_____________________________________

____________________________________
23

Mayor

_____________________________________
City Administrator

____________________________________

____________________________________

24

CITY OF CHENEY
RETURNED PAYMENTS POLICY
Adopted November 10, 2026

Page 1 of 10

I.

POLICY

The purpose of this policy is to document the procedures used to identify, research, reverse, and resolve
returned payments of any kind, while ensuring proper accounting, strong internal controls, and timely
customer notification.
II.

DEFINITIONS


“ACH / E-Check Return” means an electronic payment returned by the payor’s financial
institution, whether or not a bank-provided return code or reason is stated (e.g., incorrect account
or routing numbers).



“Adjusting Journal Entry (AJE)” means an entry prepared to reverse the original receipt of a
returned payment to the appropriate fund and account in the City’s financial system. AJEs are
processed as set forth in Section V.B.



“Chargeback” means the reversal of a credit card payment through the City’s card processor.



“Disconnect Order Notice Fee” means the fee established in the City’s adopted fee schedule and
assessed in connection with a utility disconnection order, in accordance with the City’s adopted
utility billing and disconnection procedures.



“Non-Utility Returned Payment” means a returned payment that was not applied to a City utility
account. Non-utility returned payments are governed by Section V.



“Returned Item Fee” means the fee added to a utility account when a utility-related payment is
returned, as provided in Section VI.B. The amount is established in the City’s adopted fee schedule
and listed in Appendix A.



“Returned Payment” means any payment received by the City that is subsequently returned,
reversed, or charged back, including those listed in Section III.A.



“Utility Billing Adjustment” means an adjustment entered in the utility billing system to reverse
a returned utility payment and apply any applicable fees.



“Utility-Related Returned Payment” means a returned payment that was applied to a City utility
account. Utility-related returned payments are governed by Section VI.

III.

GENERAL PROVISIONS

A.

Scope

This policy applies to all returned payments, including but not limited to:


Returned checks (e.g., NSF, closed account, stop payment);



Returned ACH / e-check payments, including returns with bank-provided return codes or no stated
reason (e.g., incorrect account or routing numbers);



Credit card chargebacks;



Other receipted payments; and

Page 2 of 10


B.

Utility-related returned payments.
Responsibilities

Treasurer
The Treasurer is responsible for:


Centralized receipt of all returned payments;



Research and classification of returned payments;



Determination of appropriate corrective action;



Preparation of adjusting journal entries (AJEs);



Approval and posting of utility adjustments; and



Oversight of documentation retention.

Finance Director
The Finance Director is responsible for:


Approval of one-time returned item fee exceptions under Section VI.B; and



Approval of one-time returned item fee removals requested during a customer dispute under
Section VI.F.

City Administrator
The City Administrator is responsible for:


Approval of one-time returned item fee removals requested during a customer dispute under
Section VI.F.

Finance Committee
The Finance Committee is responsible for the final decision on customer appeals under Section VII.
Accounting Manager
The Accounting Manager is responsible for:


Review and approval of all adjusting journal entries; and



Approval of one-time returned item fee exceptions under Section VI.B.

Clerks
Clerks are responsible for:


Entry of approved AJEs into the financial system; and



Updating and finalizing transactions, when not involved in the initial entry.

Page 3 of 10

Departments
Departments are responsible for:


Billing or rebilling customers for non-utility returned payments; and



Applying applicable returned payment fees in accordance with departmental procedures.

Utility Clerks
Utility Clerks are responsible for:


Preparation of utility billing adjustments;



Customer notification related to returned utility payments; and



Follow-up and coordination of service orders.

Light Department
The Light Department is responsible for:

C.

Execution of service orders related to utility disconnection notices.
Internal Controls



All returned payments are centrally processed through the Treasurer;



Separation of duties is maintained between preparation, approval, entry, and posting;



Supervisory review is required for all adjusting entries; and



Supporting documentation is retained for audit purposes.

D.

Record Retention

All records related to returned payments shall be retained in accordance with the applicable records
retention schedule.
IV.

RECEIPT AND CLASSIFICATION OF RETURNED PAYMENTS

A.

Receipt of Returned Payments

All returned payments, regardless of type or originating department, shall be routed to the Treasurer.
Documentation may include bank return notices, ACH / e-check return reports (with or without return
codes), credit card processor reports, or other supporting documentation. All documentation shall be
retained.
B.

Research and Classification

The Treasurer shall research each returned payment to determine:


Payment type;



Amount;

Page 4 of 10



Payor;



Date of original receipt; and



Originating department or system.

For ACH / e-check returns, available bank-provided return reasons or codes shall be reviewed when
provided. Returned ACH / e-check payments shall be processed in the same manner as other returned
payments, regardless of whether a return reason is stated.
Each returned payment shall be classified as either:


A non-utility returned payment (Section V), or



A utility-related returned payment (Section VI).

V.

NON-UTILITY RETURNED PAYMENTS

A.

Department Coordination

For non-utility returned payments, the Treasurer shall:


Identify the originating department;



Notify the department of the returned payment;



Coordinate with the department to determine the appropriate course of action; and



Provide guidance on the correct account number(s) for reversal.

B.

Recording and Reversal

The Treasurer shall prepare the necessary AJEs to reverse the original receipt to the appropriate fund and
account.
AJEs shall be processed as follows:
1. The Accounting Manager reviews and approves the AJEs;
2. A Clerk enters the approved AJEs into the financial system; and
3. A different Clerk updates and finalizes the transaction.
C.

Customer Billing

The originating department shall:


Bill or rebill the customer for the returned payment; and



Apply any applicable returned payment fees in accordance with departmental procedures.

Page 5 of 10

VI.

UTILITY-RELATED RETURNED PAYMENTS

A.

Research and Documentation

For utility-related returned payments, the Treasurer shall:


Research the returned amount using credit card reports and other payment reports;



Identify the payor name, payment date, and associated utility account;



Verify the payment in the utility billing system; and



Compile and provide all supporting documentation to the Utility Clerk.

B.

Utility Adjustment Preparation

The Utility Clerk shall:


Prepare a utility billing adjustment to reverse the returned payment; and



Add the returned item fee, as established in the City’s adopted fee schedule (Appendix A), unless
an exception applies.

Returned Item Fee Exceptions
The returned item fee shall not be added when:


The customer contacted the City prior to the return to inquire why the payment had not cleared;
and



The account was noted in advance as a potential returned payment.

In certain cases:


The customer may repay the amount before the payment is officially returned; or



The City may contact the customer once the return occurs to request payment.

In these situations, the utility adjustment shall be prepared without the returned item fee.
The City may grant a one-time exception to the returned item fee for a customer with no late payment
history. Staff may request the exception, which requires approval of the Accounting Manager or Finance
Director, and shall note it on the customer’s account.
C.

Review, Entry, and Posting

Utility adjustments shall be processed as follows:


The prepared adjustment is returned to the Treasurer for approval;



A different Utility Clerk enters the approved adjustment into the utility billing system; and



The Treasurer reviews and posts the completed adjustment.

If a returned item fee is included, the utility billing system automatically posts the fee during the evening
system update, and it will appear on the utility account the following day.

Page 6 of 10

D.

Customer Notification

The Utility Clerk who prepared the adjustment shall:


Prepare the customer notice for accounts with a returned payment that remains unpaid, including
the applicable returned item fee;



Mail the notice to the customer at least one week before the scheduled disconnection date;



Send the notice by email and/or text message at the same time it is mailed, when it is available; and



Generate a service order for the Light Department if payment is not received by the disconnection
date stated in the notice.

Alternative Door Hanger Process
The City may use the door hanger process as an alternative method of notifying the customer of a returned
utility payment.
When the door hanger process is used, the Utility Clerk who prepared the adjustment shall:


Prepare a customer notification letter for the account receiving a returned item fee;



Generate a service order for the Light Department;



Assemble the notification letter in an envelope and clear hanging bag; and



Attach the service order and hanging bag together for door hanging.

The returned payment notice shall provide the customer with a minimum of one week to make payment
before disconnection. The disconnection date shall be scheduled no earlier than one week after the notice
is issued and shall comply with the City’s requirements for scheduling disconnections, including the
requirement that service be capable of being restored the following day.
E.

Payment Deadlines and Disconnection Process

When a utility payment is returned, the applicable returned item fee, as established in the City’s adopted
fee schedule (Appendix A), shall be added to the customer’s account and the customer shall be notified.
Regardless of whether the returned payment applies to a delinquent balance or the customer’s most recent
bill, the customer shall be given a minimum of one week from the date of notice to make payment before
disconnection.
Returned Payment on a Delinquent Account
If the returned payment applies to an existing delinquent balance, the returned-payment notice shall serve
as the notice of pending disconnection. The notice shall state the date by which payment must be received
to avoid disconnection.
The disconnection date shall be scheduled no earlier than one week after the notice is issued and shall be
scheduled on a day that allows service to be restored the following day if payment is received.
If payment is not received by the date stated in the notice, service shall be disconnected in accordance with
the applicable disconnection date. The disconnect order notice fee, as established in the City’s adopted fee

Page 7 of 10

schedule (Appendix A), shall be assessed in accordance with the City’s adopted utility billing and
disconnection procedures.
Returned Payment on the Most Recent Bill
If the returned payment applies to the customer’s most recent bill and the account has not yet entered the
standard disconnection process, the customer shall be given a minimum of one week from the date of
notice to make payment.
Disconnection shall occur on the later of:


One week after the returned payment notice is issued; or



The applicable date established by the City’s regularly scheduled disconnection process for the
month.

The disconnection date shall be scheduled in accordance with the City’s requirements for scheduling
disconnections, including the requirement that service be capable of being restored the following day.
If payment is not received by the applicable deadline, service shall be disconnected in accordance with
the applicable disconnection date. The disconnect order notice fee, as established in the City’s adopted fee
schedule (Appendix A), shall be assessed in accordance with the City’s adopted utility billing and
disconnection procedures.
F.

Authorization for Returned Item Fee Removal Requests

Requests for the removal or waiver of returned item fees or other fees associated with returned payments
shall only be accepted from authorized individuals. Authorized individuals include:


The account holder of record; or



A designated decision maker formally noted on the account within the billing or customer
information system.

City staff shall:


Verify the requester’s authorization before processing or approving any fee removal request;



Decline requests made by third parties, including family members, tenants, employees, or other
representatives not documented on the account, unless proper authorization is added to the account
in advance or provided in accordance with established customer authorization procedures;



Document each fee removal request by preparing a fee removal request form with detailed notes;
and



Retain the completed form, including the approval for any approved fee removal, with the returned
payment records.

One-Time Removal During a Customer Dispute
During a customer dispute, City staff may request a one-time removal of the returned item fee. The request
requires approval of the Finance Director or City Administrator. Approval is discretionary and is not
guaranteed, and an approved removal shall be documented on the customer’s account and retained with the
returned payment records.

Page 8 of 10

VII.

APPEAL PROCESS

A.

Request for Appeal

A customer who disagrees with the City’s finding on a disputed returned payment, or on any fee assessed
under this policy, may appeal that finding. The appeal shall be submitted in writing to the Finance
Department and shall state the basis for the customer’s disagreement.
B.

Finance Committee Review

The Finance Department shall compile all materials related to the dispute and present them to the Finance
Committee. The materials shall include:

C.



The customer’s written appeal and any documentation the customer provides;



The returned payment documentation, including bank, ACH / e-check, or card processor return
records;



The customer’s account history and the fees assessed; and



The City’s research, findings, and any prior decisions on the dispute.
Final Decision

The Finance Committee shall review the materials and issue a decision. The decision of the Finance
Committee is final. The Finance Department shall notify the customer of the decision in writing, process
any resulting account adjustments in accordance with this policy, and retain the appeal materials and
decision with the returned payment records.
ADOPTED by this 10th day of November, 2026.
_____________________________________
Mayor
ATTEST:
_____________________________________
City Clerk
[End of Policy]

Page 9 of 10

APPENDIX A – RETURNED PAYMENT FEE SCHEDULE
Fee amounts are established in the City’s adopted fee schedule. This table is a reference aid only; the City’s
adopted fee schedule controls in the event of any discrepancy.
Fee

When Charged

Policy Section

Amount

Returned Item Fee

Added to the utility account when a utility-related
payment is returned, unless an exception applies.

VI.B

$40.00

Disconnect Order
Notice Fee

Assessed in connection with a utility disconnection
order in accordance with the City’s adopted utility
billing and disconnection procedures.

VI.E

$30.00

Page 10 of 10

Accountability Audit Report

City of Cheney
For the period January 1, 2025 through December 31, 2025

Published November 5, 2026
Report No. 1040783

Scan to see another great way
we’re helping advance
#GoodGovernment

Office of the Washington State Auditor
Pat McCarthy
November 5, 2026
Mayor and City Council
City of Cheney
Cheney, Washington

Report on Accountability
Thank you for the opportunity to work with you to promote accountability, integrity and openness
in government. The Office of the Washington State Auditor takes seriously our role of providing
state and local governments with assurance and accountability as the independent auditor of public
accounts. In this way, we strive to help government work better, cost less, deliver higher value and
earn greater public trust.
Independent audits provide essential accountability and transparency for City operations. This
information is valuable to management, the governing body and public stakeholders when
assessing the government’s stewardship of public resources.
Attached is our independent audit report on the City’s compliance with applicable requirements
and safeguarding of public resources for the areas we examined. We appreciate the opportunity to
work with your staff and value your cooperation during the audit.
Sincerely,

Pat McCarthy, State Auditor
Olympia, WA

Americans with Disabilities
In accordance with the Americans with Disabilities Act, we will make this document available in
alternative formats. For more information, please contact our Office at (564) 999-0950, TDD
Relay at (800) 833-6388, or email our webmaster at [email protected].
Insurance Building, P.O. Box 40021  Olympia, Washington 98504-0021  (564) 999-0950  [email protected]

TABLE OF CONTENTS
Audit Results................................................................................................................................... 4
Related Reports ............................................................................................................................... 5
Information about the City .............................................................................................................. 6
About the State Auditor's Office ..................................................................................................... 7

Office of the Washington State Auditor

sao.wa.gov

Page 3

AUDIT RESULTS
Results in brief
This report describes the overall results and conclusions for the areas we examined. In those
selected areas, City operations complied, in all material respects, with applicable state laws,
regulations, and its own policies, and provided adequate controls over the safeguarding of public
resources.
In keeping with general auditing practices, we do not examine every transaction, activity, policy,
internal control, or area. As a result, no information is provided on the areas that were not
examined.

About the audit
This report contains the results of our independent accountability audit of the City of Cheney from
January 1, 2025 through December 31, 2025.
Management is responsible for ensuring compliance and adequate safeguarding of public resources
from fraud, loss or abuse. This includes the design, implementation and maintenance of internal
controls relevant to these objectives.
This audit was conducted under the authority of RCW 43.09.260, which requires the Office of the
Washington State Auditor to examine the financial affairs of all local governments. Our audit
involved obtaining evidence about the City’s use of public resources, compliance with state laws
and regulations and its own policies and procedures, and internal controls over such matters. The
procedures performed were based on our assessment of risks in the areas we examined.
Based on our risk assessment for the year ended December 31, 2025, the areas examined were
those representing the highest risk of fraud, loss, abuse, or noncompliance. We examined the
following areas during this audit period:
•

Payroll – gross wages, overtime, and leave cash outs

•

Compliance with state grants

•

Contract compliance – cash receipting and deposit timeliness

•

Treasury activities – bank reconciliations and monitoring of banking activity

•

Self-insurance – unemployment

•

Financial condition – reviewing for indications of financial distress

•

Open public meetings – compliance with minutes, meetings and executive session
requirements

Office of the Washington State Auditor

sao.wa.gov

Page 4

RELATED REPORTS
Financial
Our opinion on the City’s financial statements and compliance with federal grant program
requirements is provided in a separate report, which includes the City’s financial statements. That
report is available on our website, https://portal.sao.wa.gov//ReportSearch.
That report includes a finding regarding a significant deficiency in internal controls for financial
reporting.

Federal grant programs
We evaluated internal controls and tested compliance with the federal program requirements, as
applicable, for the City’s major federal program, which is listed in the Schedule of Findings and
Questioned Costs section of the separate financial statement and single audit report. That report
includes a federal finding regarding significant deficiencies in internal controls for allowable costs
and
reporting
requirements.
That
report
is
available
on
our
website,
https://portal.sao.wa.gov//ReportSearch.

Other reports
We issued an examination report on the City’s compliance with the state of Washington’s Clean
Energy
Transformation
Act.
That
report
is
available
on
our
website,
http://portal.sao.wa.gov/ReportSearch.

Office of the Washington State Auditor

sao.wa.gov

Page 5

INFORMATION ABOUT THE CITY
The City of Cheney was incorporated in 1883 and currently serves approximately 12,650 Spokane
County residents. It provides public safety, Municipal Court, fire protection, emergency medical,
building code enforcement, street improvement, parks and recreation and general administrative
services. The City also provides utility services including water, sewage collection and disposal,
light and sanitation.
An elected, seven-member Council with a separately elected Mayor governs the City. The Mayor
oversees the City’s daily operations as well as approximately 95 full-time and 70 part-time
employees. The Council sets policy, budget and utility rates. For fiscal year 2025, the City operated
on a total annual budget of approximately $62.4 million.

Contact information related to this report
Contact:
Telephone:
Website:

James Rouse, Finance Director
(509) 498-9215
www.cityofcheney.org

Information current as of report publish date.

Audit history
You can find current and past
https://portal.sao.wa.gov//ReportSearch.

audit

reports

Office of the Washington State Auditor

sao.wa.gov

for

the

City

of

Cheney

at

Page 6

ABOUT THE STATE AUDITOR’S OFFICE
The State Auditor’s Office is established in the Washington State Constitution and is part of the
executive branch of state government. The State Auditor is elected by the people of Washington
and serves four-year terms.
We work with state agencies, local governments and the public to achieve our vision of increasing
trust in government by helping governments work better and deliver higher value.
In fulfilling our mission to provide citizens with independent and transparent examinations of how
state and local governments use public funds, we hold ourselves to those same standards by
continually improving our audit quality and operational efficiency, and by developing highly
engaged and committed employees.
As an agency, the State Auditor’s Office has the independence necessary to objectively perform
audits, attestation engagements and investigations. Our work is designed to comply with
professional standards as well as to satisfy the requirements of federal, state and local laws. The
Office also has an extensive quality control program and undergoes regular external peer review
to ensure our work meets the highest possible standards of accuracy, objectivity and clarity.
Our audits look at financial information and compliance with federal, state and local laws for all
local governments, including schools, and all state agencies, including institutions of higher
education. In addition, we conduct performance audits and cybersecurity audits of state agencies
and local governments, as well as state whistleblower, fraud and citizen hotline investigations.
The results of our work are available to everyone through the more than 2,000 reports we publish
each year on our website, www.sao.wa.gov. Additionally, we share regular news and other
information via an email subscription service and social media channels.
We take our role as partners in accountability seriously. The Office provides training and technical
assistance to governments both directly and through partnerships with other governmental support
organizations.

Stay connected at sao.wa.gov
•
•
•
•
•
•

Other ways to stay in touch

Find your audit team
Request public records
Search BARS Manuals (GAAP and
cash), and find reporting templates
Learn about our training workshops
and on-demand videos
Discover which governments serve you
— enter an address on our map
Explore public financial data
with the Financial Intelligence Tool

Office of the Washington State Auditor

sao.wa.gov

•

Main telephone:
(564) 999-0950

•

Toll-free Citizen Hotline:
(866) 902-3900

•

Email:
[email protected]

Page 7

Financial Statements and Federal Single
Audit Report

City of Cheney
For the period January 1, 2025 through December 31, 2025

Published November 5, 2026
Report No. 1040781

Scan to see another great way
we’re helping advance
#GoodGovernment

Office of the Washington State Auditor
Pat McCarthy
November 5, 2026
Mayor and City Council
City of Cheney
Cheney, Washington

Report on Financial Statements and Federal Single Audit
Please find attached our report on the City of Cheney’s financial statements and compliance with
federal laws and regulations.
We are issuing this report in order to provide information on the City’s financial activities and
condition.
Sincerely,

Pat McCarthy, State Auditor
Olympia, WA

Americans with Disabilities
In accordance with the Americans with Disabilities Act, we will make this document available in
alternative formats. For more information, please contact our Office at (564) 999-0950, TDD
Relay at (800) 833-6388, or email our webmaster at [email protected].

Insurance Building, P.O. Box 40021  Olympia, Washington 98504-0021  (564) 999-0950  [email protected]

TABLE OF CONTENTS
Schedule of Findings and Questioned Costs................................................................................... 4
Schedule of Audit Findings and Responses .................................................................................... 6
Schedule of Federal Award Findings and Questioned Costs ........................................................ 12
Summary Schedule of Prior Audit Findings .................................................................................. 17
Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ................................................................................................... 19
Independent Auditor's Report on Compliance for Each Major Federal Program and Report on
Internal Control Over Compliance in Accordance With the Uniform Guidance ......................... 22
Independent Auditor's Report on the Financial Statements .......................................................... 26
Financial Section........................................................................................................................... 30
Corrective Action Plan for Findings Reported Under Uniform Guidance ................................... 86
About the State Auditor's Office ................................................................................................... 91

Office of the Washington State Auditor

sao.wa.gov

Page 3

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
City of Cheney
January 1, 2025 through December 31, 2025
SECTION I – SUMMARY OF AUDITOR’S RESULTS
The results of our audit of the City of Cheney are summarized below in accordance with Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Financial Statements
We issued an unmodified opinion on the fair presentation of the basic financial statements of the
governmental activities, the business-type activities, each major fund and the aggregate remaining
fund information in accordance with accounting principles generally accepted in the United States
of America (GAAP).
Internal Control over Financial Reporting:
• Significant Deficiencies: We identified deficiencies in the design or operation of internal
control over financial reporting that we consider to be significant deficiencies.
• Material Weaknesses: We identified no deficiencies that we consider to be material
weaknesses.
We noted no instances of noncompliance that were material to the financial statements of the City.

Federal Awards
Internal Control over Major Programs:
• Significant Deficiencies: We identified deficiencies in the design or operation of internal
control over major federal programs that we consider to be significant deficiencies.
• Material Weaknesses: We identified no deficiencies that we consider to be material
weaknesses.
We issued an unmodified opinion on the City’s compliance with requirements applicable to its
major federal program.
We reported findings that are required to be disclosed in accordance with 2 CFR 200.516(a).

Office of the Washington State Auditor

sao.wa.gov

Page 4

Identification of Major Federal Programs
The following program was selected as a major program in our audit of compliance in accordance
with the Uniform Guidance.
ALN
15.504

Program or Cluster Title
Water Recycling and Desalination Construction Programs

The dollar threshold used to distinguish between Type A and Type B programs, as prescribed by
the Uniform Guidance, was $1,000,000.
The City did not qualify as a low-risk auditee under the Uniform Guidance.

SECTION II – FINANCIAL STATEMENT FINDINGS
See Finding 2025-001.

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED
COSTS
See Finding 2025-002.

Office of the Washington State Auditor

sao.wa.gov

Page 5

SCHEDULE OF AUDIT FINDINGS AND RESPONSES
City of Cheney
January 1, 2025 through December 31, 2025
2025-001

The City did not have adequate internal controls to ensure accurate
financial reporting.
Background
State and federal agencies, the City Council, and the public rely on information
included in the financial statements and reports to make decisions. Management is
responsible for designing and following internal controls that provide reasonable
assurance its financial reporting is reliable and the financial statements, schedules
and notes to financial statements are accurate. The City prepares its financial
statements in accordance with generally accepted accounting principles (GAAP).
Local governments that spend federal funds must prepare a Schedule of
Expenditures of Federal Awards (SEFA) and SEFA notes as part of their annual
financial report. Federal regulations require grantees to identify on the SEFA all
federal money they spent. Under Uniform Guidance, governments that spend $1
million or more in federal grant awards in a year are required to obtain a federal
single audit. Further, governments must submit audit results to the Federal Audit
Clearinghouse within 30 calendar days after issuance of the audit report, or within
nine months after the audit period, whichever is earlier.
Our audit found deficiencies in internal controls over accounting and financial
reporting that affected the City’s ability to produce reliable and accurate financial
statements, schedules and notes. Government Auditing Standards requires the State
Auditor’s Office to communicate significant deficiencies in internal controls as a
finding.

Office of the Washington State Auditor

sao.wa.gov

Page 6

Description of Condition
We identified deficiencies in internal controls that, when taken together, represent
a significant deficiency.
The City prepared the SEFA to document the federal award funding it spent during
2025. Our Office uses this schedule to determine which federal programs require
additional audit procedures. The City did not have effective processes to identify
all federally funded expenditures and to prepare and review the SEFA to ensure it
reported all federal programs and related expenditures on its SEFA, as required.
Additionally, although City staff had established procedures to prepare the annual
financial report using various accounting records, its preparation and review
processes were not detailed enough to detect and correct misstatements before
audit.

Cause of Condition
Staff responsible for preparing the SEFA incorrectly reported federal expenditures
for one program on the state financial assistance schedule rather than the SEFA.
Additionally, the City experienced staffing changes in positions responsible for
preparing and reviewing the annual financial report. New staff were still training
on how to properly report the financial statements, notes, and schedules. When
preparing them, they misunderstood how to use certain accounting records,
misinterpreted accounting guidance, and/or incorrectly calculated balances
reported.

Effect of Condition
SEFA reporting
The original SEFA submitted for audit did not include one of the City’s federal
programs and related expenditures, understating ALN 21.027 by $246,018. The
City subsequently corrected this error, and the final SEFA includes federal
expenditures exceeding the $1 million single audit threshold.
The error resulted in the City incorrectly concluding that it did not need a single
audit for fiscal year 2025, and the City missed the required single audit deadline.

Office of the Washington State Auditor

sao.wa.gov

Page 7

Financial statement preparation
The City’s financial information contained errors that management did not detect.
Specifically, the City:
•

•

•

Misclassified capital assets, overstating other improvements and
understating infrastructure assets in the following funds:
o Light fund by $12,024,200
o Water fund by $13,645,605
o Sewer fund by $20,830,458
Did not retain sufficient documentation to support fund balance
classifications and misclassified fund balances in the parks and recreation
fund, understating assigned fund balance by $302,463 and overstating
restricted fund balance by $18,494 and committed fund balance by
$283,969
Misclassified revenues for the water fund in the Statement of Activities,
overstating operating grants and contributions and understating general
revenues by $348,805

The City corrected these errors. Additionally, we identified other, less significant
errors in the financial statements, notes and required supplementary information
that the City corrected.

Recommendation
We recommend the City strengthen internal controls over financial statement
preparation to ensure financial statements and schedules are accurate, complete and
in compliance with GAAP. Specifically, we recommend the City:
•

•

•
•
•

Provide staff responsible for preparing and reviewing the financial
statements, schedules and notes with the necessary resources and training
to ensure they are accurate and complete
Prepare its SEFA following the Budgeting, Accounting and Reporting
System (BARS) Manual and other current guidance to ensure accurate and
complete financial reporting
Correctly classify and report its capital assets and revenues based on
supporting documentation
Retain documentation to support the calculation and classification of fund
balance
Perform an effective review of the financial statements, notes and schedules
to identify and correct errors before submitting them for audit

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City’s Response
The city concurs with the finding. The misstatements identified during the audit
were corrected in the financial statements submitted for 2025.
The city is committed to addressing this finding through corrective actions,
strengthened review procedures, improved documentation, and better coordination
among Finance Department staff and other responsible departments.
During the period relevant to the audit, the city experienced the departure and
retirement of key personnel within the City and Finance Department. These staffing
transitions resulted in changes in personnel responsible for financial reporting and
compliance activities. Remaining and newly assigned staff were required to become
familiar with the City’s established policies, procedures, internal controls, and
reporting requirements while assuming these responsibilities.
The city recognizes that these transitions presented challenges in maintaining
continuity of institutional knowledge and contributed to the need for additional
training and procedural guidance. The City acknowledges its responsibility to
ensure that financial reporting and compliance obligations are met accurately and
timely, regardless of staffing changes. Accordingly, the City is committed to
strengthening staff training, documenting procedures, improving knowledge
transfer, and establishing consistent review practices to support continuity of
operations and compliance with applicable requirements.
SEFA Reporting: A member of finance reconciles grant expenditures and reports
federal expenditures on the SEFA. Corrective measures will include:
•

•

•
•

Maintain a centralized federal award register listing the awarding agency,
pass-through entity where applicable, ALN, award identification number,
award period, expenditures, and responsible department. Require
departments and grant administrators to notify Finance of every new
federal award and any changes to existing awards.
At year-end, reconcile federal expenditures reported in the general ledger
and grant records to the proposed SEFA. Review state financial assistance
schedules to identify federal expenditures incorrectly classified as state
assistance.
Require a preparer and an independent reviewer to sign and date the
completed SEFA reconciliation before submission for audit.
Document the determination of whether a single audit is required based on
the total federal awards expended during the fiscal year and the applicable
Uniform Guidance threshold.

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The single audit for fiscal year 2025 is being completed and will be submitted to
the Federal Audit Clearinghouse upon issuance of the audit report.
Financial Statement Preparation: The city will establish and maintain a
standardized year-end closing and financial reporting checklists and review
process. Corrective measures will include:
•

•
•
•

•
•
•
•

•

Develop a standardized annual financial reporting checklist aligned with
the current BARS Manual and applicable GAAP requirements covering
account reconciliations, financial statements, notes, schedules, and
required supplementary information.
Prepare a detailed closing calendar with assigned preparers, reviewers,
due dates, and required supporting documentation.
Require reconciliations of accounts and schedules to the general ledger and
supporting records.
Retain documentation supporting the calculation and classification of each
fund balance category, including the Council of Finance Committee action
establishing any committed or assigned amounts.
Use a disclosure checklist to verify completeness and consistency of
financial statement notes and required supplementary information.
Require a documented second-level review by a qualified individual who
did not prepare the report, to the extent practicable.
Maintain an error log recording identified misstatements, corrections, root
causes, and preventive actions.
Complete a final management certification that the reporting package has
been reviewed and that identified discrepancies have been resolved or
documented before submission to the auditor.
Provide staff responsible for preparing and reviewing the financial
statements, schedules and notes with training on BARS and GAAP reporting
requirements

Auditor’s Remarks
We appreciate the City’s commitment to resolve this finding and thank the City for
its cooperation and assistance during the audit. We will review the status of the
City’s corrective action during our next audit.

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Applicable Laws and Regulations
Government Auditing Standards, paragraphs 6.40 and 6.41 establish reporting
requirements related to significant deficiencies or material weaknesses in internal
control, instances of fraud, and noncompliance with provisions of laws, regulations,
contracts, or grant agreements.
The American Institute of Certified Public Accountants defines significant
deficiencies and material weaknesses in its Codification of Statements on Auditing
Standards, section 265, Communicating Internal Control Related Matters Identified
in an Audit, paragraph 7.
The Budgeting, Accounting and Reporting System (BARS) Manual, 3.1.3, Internal
Control, requires each local government to establish and maintain an effective
system of internal controls that provides reasonable assurance that the government
will achieve its objectives.
RCW 43.09.200 Local government accounting – Uniform system of accounting,
requires the State Auditor to prescribe the system of accounting and reporting for
all local governments.
Government Accounting Standards Board Statement No. 34, Basic Financial
Statements – and Management’s Discussion and Analysis – for State and Local
Governments.
Government Accounting Standards Board Statement No. 54, Fund Balance
Reporting and Governmental Fund Type Definitions
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance), section 302 – Financial management, requires recipients to
identify, in their accounts, all Federal awards received and expended and the
Federal programs under which the awards were received.
Title 2 CFR Part 200, Uniform Guidance, section 510, Financial statements,
requires the auditee to prepare a schedule of expenditures of federal awards that
includes the total federal awards expended during the period, and notes that
describe the significant accounting policies and whether the auditee elected to use
the de minimis indirect cost rate.
Title 2 CFR Part 200, Uniform Guidance, section 514 – Standards and scope of
audit, requires the audit be conducted in accordance with Generally Accepted
Government Auditing Standards (GAGAS) and encompass the financial statements
and Schedule of Expenditures of Federal Awards (SEFA).

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SCHEDULE OF FEDERAL AWARD FINDINGS AND
QUESTIONED COSTS
City of Cheney
January 1, 2025 through December 31, 2025
2025-002

The City did not have adequate internal controls for ensuring
compliance with federal allowable costs and reporting
requirements.
Assistance Listing Number and Title:

Federal Grantor Name:
Federal Award/Contract Number:
Pass-through Entity Name:
Pass-through Award/Contract
Number:
Known Questioned Cost Amount:
Prior Year Audit Finding:

15.504, Water Recycling and
Desalination Construction
Programs
U.S. Department of the Interior,
Bureau of Reclamation
R24AP00088-00
N/A
N/A
$46,288
Yes, Finding 2024-001

Description of Condition
During fiscal year 2025, the City spent $819,917 in federal funding from the Water
Recycling and Desalination Construction Program. The program provided funding
through a cost-sharing agreement for infrastructure improvements and upgrades to
the City’s wastewater treatment and reclamation plant.
Federal regulations require recipients to establish, document and maintain effective
internal controls that ensure compliance with program requirements. These controls
include understanding program requirements and monitoring the effectiveness of
program controls.
Allowable costs
Federal regulations require recipients to ensure costs charged to federal programs
have not been included as a cost of any other federally financed programs in the
current or prior periods.

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Our audit found the City’s internal controls were inadequate for ensuring it charged
only allowable costs to the program. Specifically, the City charged construction
costs to the program that it had already charged to another federal program.
We consider this internal control deficiency to be a significant deficiency.
Reporting
Federal regulations require the City to submit a Federal Financial Report (SF-425)
semiannually. The City’s SF-425 reports for the program were due 30 days after
the reporting periods ending March 31, 2025, and September 30, 2025.
Our audit found the City’s internal controls were inadequate for ensuring it
submitted all required SF-425 reports that were due in 2025.
We consider this internal control deficiency to be a significant deficiency.

Cause of Condition
Allowable costs
City staff responsible for managing the program tracked and reviewed project costs
when preparing reimbursement requests but did not know the City had already been
reimbursed for part of the costs under another federal program.
Reporting
City staff responsible for managing the program did not monitor reporting
requirements and were not aware that one of the required reports due in 2025 had
not been submitted.

Effect of Condition and Questioned Costs
Allowable costs
The City charged $46,288 of costs to the program that were unallowable because it
had already charged them to another federal program. Therefore, we are
questioning these costs.
Federal regulations require the State Auditor’s Office to report known questioned
costs that are more than $25,000 for each type of compliance requirement.

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Reporting
The City did not prepare and submit one of the required SF-425 reports due in 2025
to its grantor. Failing to submit the required reports diminishes the federal
government’s ability to ensure accountability and transparency of federal spending.

Recommendation
We recommend the City establish and follow internal controls to:
•
•

Ensure it charges only allowable costs to federal programs
Identify and submit all required reports for its federal programs

City’s Response
The City concurs with the finding.
The City is committed to addressing this finding through corrective actions,
strengthened review procedures, improved documentation, and better coordination
among Finance Department staff and other responsible departments.
During the period relevant to the audit, the City experienced the departure and
retirement of key personnel within the City and Finance Department. These staffing
transitions resulted in changes in personnel responsible for financial reporting and
compliance activities. Remaining and newly assigned staff were required to become
familiar with the City’s established policies, procedures, internal controls, and
reporting requirements while assuming these responsibilities.
The City recognizes that these transitions presented challenges in maintaining
continuity of institutional knowledge and contributed to the need for additional
training and procedural guidance. The City acknowledges its responsibility to
ensure that financial reporting and compliance obligations are met accurately and
timely, regardless of staffing changes. Accordingly, the City is committed to
strengthening staff training, documenting procedures, improving knowledge
transfer, and establishing consistent review practices to support continuity of
operations and compliance with applicable requirements.

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Allowable Cost: Departments currently prepare and submit federal reimbursement
requests and copy the Finance Department. The City will strengthen internal
controls over costs charged to federal programs. Corrective measures will include:
•

•

•

•

Completing a review of project expenditures, invoices, and reimbursement
requests on awards funding the same project to identify any other costs
charged to more than one federal award.
Establishing a cross-program reconciliation, performed before each
reimbursement request is submitted, verifying that the costs in the request
have not previously been charged to or reimbursed by another federal
award.
Routing reimbursement requests to the Finance Department for
documented review and approval before submission to the awarding
agency.
Providing written guidance and training to employees who manage federal
awards and preparing reimbursement requests, including how to identify
state-administered awards that carry federal funding.

The City will resolve the questioned costs with the Bureau of Reclamation under 2
CFR 200.521.
Federal Financial Reporting: The City will establish and maintain a centralized
compliance calendar for federal awards that identifies required reports, reporting
periods, due dates, responsible employees, and review and submission
requirements. Corrective measures will include:
•
•
•
•

Reviewing grant agreements and applicable federal requirements to
identify all required reports for each award.
Requiring documented supervisory review before submission.
Reviewing outstanding reporting obligations at each month-end close.
Providing training to employees responsible for federal award
administration and reporting.

The City is working with the Bureau of Reclamation to submit the outstanding
SF-425.

Auditor’s Remarks
We appreciate the City’s commitment to resolve this finding and thank the City for
its cooperation and assistance during the audit. We will review the status of the
City’s corrective action during our next audit.

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Applicable Laws and Regulations
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance), section 516, Audit findings, establishes reporting
requirements for audit findings.
Title 2 CFR Part 200, Uniform Guidance, section 303, Internal controls, describes
the requirements for auditees to maintain internal controls over federal programs
and comply with federal program requirements.
The American Institute of Certified Public Accountants defines significant
deficiencies and material weaknesses in its Codification of Statements on Auditing
Standards, section 935, Compliance Audits, paragraph 11.
Title 2 CFR Part 200, Uniform Guidance, section 403, Factors affecting
allowability of costs, describes the cost principles for how direct costs should be
charged to federal programs.
Title 2 CFR Part 200, Uniform Guidance, section 328, Financial reporting,
describes requirements for recipients to submit financial reports to awarding
agencies.

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SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
City of Cheney
January 1, 2025 through December 31, 2025
This schedule presents the status of findings reported in prior audit periods.
Audit Period:
January 1, 2024 through
December 31, 2024

Report Reference
No.:
1038128

Federal Program Name and Granting Agency:
Water Recycling and Desalination Construction
Programs.
Department of the Interior, Bureau of
Reclamation

Finding Ref. No.:
2024-001

ALN(s):
15.504

Pass-Through Agency Name:
N/A

Finding Caption:
The City did not have adequate internal controls for ensuring compliance with federal
allowable costs, matching and reporting requirements, and it did not comply with federal
allowable costs and matching requirements.
Background:
Allowable Costs and Matching
The City had inadequate internal controls and charged construction costs to the program that
it had already charged to another federal program, and it used costs reimbursed under the other
federal program to meet part of its matching requirement. Additionally, it charged the program
for pre-award costs incurred before the program start date without prior written approval. We
questioned $2,595,103 of program costs.
Reporting
The City had inadequate internal controls and did not prepare and submit one SF-425 report
that was due in 2024.

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Status of Corrective Action: (check one)

☐ Fully
Corrected

☒ Partially
Corrected

☐ Not Corrected

☐ Finding is considered no longer
valid

Corrective Action Taken:
The 2024 audit finding was discovered during mid-2025, therefore the city acknowledges the
same occurrences in 2025. However, since the audit findings, the city has taken the following
action.
The City has strengthened its internal controls to prevent the recurrence of these issues.
Effective immediately, reimbursement requests will receive an additional review by the
Finance Department prior to submission. This review will include verification that costs are
allowable under the applicable federal award, have not been charged to another federal
program, meet applicable matching requirements, and were incurred within the authorized
grant period or have received the required prior written approval. Supporting documentation
will also be reviewed to ensure that matching funds are from eligible sources and have not
been reimbursed by another federal program.
These additional review procedures are intended to provide a secondary level of oversight
and ensure compliance with federal award requirements before reimbursement requests are
submitted.
The City acknowledges the finding related to the untimely submission of the required SF-425
report. During the transition of multiple City positions and responsibilities, the second SF425 report was not submitted by the required deadline.
The City has implemented additional oversight procedures to ensure that all required federal
reports are identified, reviewed, and submitted timely. The Finance Department will provide
a secondary review of required federal reports prior to submission and will monitor reporting
deadlines to ensure that required reports, including SF-425 reports, are submitted within the
applicable reporting period.
The City will complete and submit all outstanding required reports in 2026 and will maintain
documentation of the review and submission process. These enhanced internal controls are
intended to improve accountability and prevent future missed or late federal reporting
requirements.

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INDEPENDENT AUDITOR’S REPORT
Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
City of Cheney
January 1, 2025 through December 31, 2025
Mayor and City Council
City of Cheney
Cheney, Washington
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, each major fund and the aggregate remaining
fund information of the City of Cheney, as of and for the year ended December 31, 2025, and the
related notes to the financial statements, which collectively comprise the City’s basic financial
statements, and have issued our report thereon dated October 29, 2026.

REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
In planning and performing our audit of the financial statements, we considered the City’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the City’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.

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Our consideration of internal control was for the limited purpose described above and was not
designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore, material weaknesses or significant deficiencies may exist
that were not identified.
Given these limitations, during our audit we did not identify any deficiencies in internal control
that we consider to be material weaknesses. However, we identified certain deficiencies in internal
control, described in the accompanying Schedule of Audit Findings and Responses as Finding
2025-001, that we consider to be a significant deficiency.

REPORT ON COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the City’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required
to be reported under Government Auditing Standards.

CITY’S RESPONSE TO FINDINGS
Government Auditing Standards requires the auditor to perform limited procedures on the City’s
response to the findings identified in our audit and described in the accompanying Schedule of
Audit Findings and Responses. The City’s response was not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on the
response.

PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose. However, this

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report is a matter of public record and its distribution is not limited. It also serves to disseminate
information to the public as a reporting tool to help citizens assess government operations.

Pat McCarthy, State Auditor
Olympia, WA
October 29, 2026

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INDEPENDENT AUDITOR’S REPORT
Report on Compliance for Each Major Federal Program and Report on Internal
Control over Compliance in Accordance with the Uniform Guidance
City of Cheney
January 1, 2025 through December 31, 2025
Mayor and City Council
City of Cheney
Cheney, Washington

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM
Opinion on Each Major Federal Program
We have audited the compliance of the City of Cheney, with the types of compliance requirements
identified as subject to audit in the U.S. Office of Management and Budget (OMB) Compliance
Supplement that could have a direct and material effect on each of the City’s major federal
programs for the year ended December 31, 2025. The City’s major federal programs are identified
in the auditor’s results section of the accompanying Schedule of Findings and Questioned Costs.
In our opinion, the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended December 31, 2025.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America (GAAS); the standards applicable to financial audits contained in
Government Auditing Standards issued by the Comptroller General of the United States; and the
audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our
report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
compliance for each major federal program. Our audit does not provide a legal determination on
the City’s compliance with the compliance requirements referred to above.

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Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements
applicable to the City’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS, Government Auditing Standards and the Uniform Guidance will always
detect a material noncompliance when it exists. The risk of not detecting a material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material, if there
is a substantial likelihood that, individually or in the aggregate, it would influence the judgement
made by a reasonable user of the report on compliance about the City’s compliance with the
requirements of each major federal program as a whole.
Performing an audit in accordance with GAAS, Government Auditing Standards and the Uniform
Guidance includes the following responsibilities:
•
•

•

•

Exercise professional judgment and maintain professional skepticism throughout the audit;
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered
necessary in the circumstances;
Obtain an understanding of the City’s internal control over compliance relevant to the audit
in order to design audit procedures that are appropriate in the circumstances and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but
not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control over compliance. Accordingly, no such opinion is expressed; and
We are required to communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and any significant deficiencies
and material weaknesses in internal control over compliance that we identified during the
audit.

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Other Matters
The results of our auditing procedures disclosed an instance of noncompliance which is required
to be reported in accordance with the Uniform Guidance and which is described in the
accompanying Schedule of Federal Award Findings and Questioned Costs as Finding 2025-002.
Our opinion on each major federal program is not modified with respect to these matters.
City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s
response to the noncompliance findings identified in our compliance audit described in the
accompanying Schedule of Federal Award Findings and Questioned Costs. The City’s response
was not subjected to the other auditing procedures applied in the audit of compliance and,
accordingly, we express no opinion on the response.

REPORT ON INTERNAL CONTROL OVER COMPLIANCE
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed. Our consideration of internal
control over compliance was for the limited purpose described in the Auditor’s Responsibilities
for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in
internal control over compliance and therefore, material weaknesses or significant deficiencies
may exist that were not identified.
Given these limitations, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses. However, we identified certain
deficiencies in internal control over compliance, described in the accompanying Schedule of
Federal Award Findings and Questioned Costs as Finding 2025-002, that we consider to be
significant deficiencies.

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City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s
response to the internal control over compliance findings identified in our audit described in the
accompanying Schedule of Federal Award Findings and Questioned Costs. The City’s response
was not subjected to the other auditing procedures applied in the audit of compliance and,
accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose. However, this report is a matter of public record and its distribution is not limited. It also
serves to disseminate information to the public as a reporting tool to help citizens assess
government operations.

Pat McCarthy, State Auditor
Olympia, WA
October 29, 2026

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INDEPENDENT AUDITOR’S REPORT
Report on the Audit of the Financial Statements
City of Cheney
January 1, 2025 through December 31, 2025
Mayor and City Council
City of Cheney
Cheney, Washington

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinions
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of the City
of Cheney, as of and for the year ended December 31, 2025, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the
financial section of our report.
In our opinion, the accompanying financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities, the business-type
activities and the aggregate remaining fund information of the City of Cheney, as of December 31,
2025, and the respective changes in financial position and, where applicable, cash flows thereof,
and the respective budgetary comparison for the General, Parks and Recreation and Pool
Construction funds for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are required to be independent of
the City and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.

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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America, and
for the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City’s
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
Performing an audit in accordance with GAAS and Government Auditing Standards includes the
following responsibilities:
•
•

•

•

Exercise professional judgment and maintain professional skepticism throughout the audit;
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements;
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion
is expressed;
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements;

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Page 27

•

•

Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City’s ability to continue as a going
concern for a reasonable period of time; and
Communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and required supplementary information listed in the
financial section of our report be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We do not express an opinion or provide any assurance
on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The accompanying Schedule of
Expenditures of Federal Awards is presented for purposes of additional analysis as required by
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). This
supplementary information is not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated, in all material respects, in relation to the
basic financial statements as a whole.

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Page 28

OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated
October 29, 2026 on our consideration of the City’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the City’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City’s internal control over financial reporting and
compliance.

Pat McCarthy, State Auditor
Olympia, WA
October 29, 2026

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Page 29

FINANCIAL SECTION
City of Cheney
January 1, 2025 through December 31, 2025
REQUIRED SUPPLEMENTARY INFORMATION
Management’s Discussion and Analysis – 2025

BASIC FINANCIAL STATEMENTS
Statement of Net Position – 2025
Statement of Activities – 2025
Balance Sheet – Governmental Funds – 2025
Reconciliation of Total Governmental Fund Balances to Net Position of Governmental
Activities – 2025
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental
Funds – 2025
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities – 2025
General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget to Actual – 2025
Parks and Recreation Fund Statement of Revenues, Expenditures, and Changes in Fund
Balance – Budget to Actual – 2025
Statement of Net Position – Proprietary Funds – 2025
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds
– 2025
Statement of Cash Flow – Proprietary Funds – 2025
Statement of Fiduciary Net Position – Fiduciary Funds – 2025
Statement of Changes Fiduciary Net Position – Fiduciary Funds – 2025
Notes to the Financial Statements – 2025

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Proportionate Share of the Net Pension Liability – PERS 1, PERS 2/3,
LEOFF 1, LEOFF 2 – 2025
Schedule of Employer Contributions – PERS 1, PERS 2/3, LEOFF 2 – 2025
Schedule of Changes in Total OPEB Liability and Related Ratios – LEOFF 1 Retirees –
2025

SUPPLEMENTARY AND OTHER INFORMATION
Schedule of Expenditures of Federal Awards – 2025
Notes to the Schedule of Expenditures of Federal Awards – 2025

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Page 30

CITY OF CHENEY, WASHINGTON
Management's Discussion and Analysis
For the Year Ended December 31, 2025
As management of the City of Cheney, we offer the readers of its financial statements this narrative overview and
analysis of the City's financial activities for the fiscal year ended December 31, 2025.

FINANCIAL HIGHLIGHTS
Ɣ

The assets and deferred outflows of the City of Cheney exceeded its liabilities and deferred inflows at
the close of the most recent fiscal year by $81,847,482. Of this amount, $23,136,558 may be used to
meet the government's ongoing obligations to citizens and creditors.

Ɣ

The government's net position increased in 2025 by $3,474,548, or 4.4%. The change in net position is in
large part due to:

Ɣ

Governmental property taxes increased $363,000, reflecting a full year of the general obligation bond
assessment for the aquatic center and the continuation of the voter-approved levy lift.

Ɣ

Business-type charges for services increased $1,296,292 under the five-year council-approved plan to
adjust utility rates.

Ɣ

Capital grants and contributions to business-type activities declined $9,743,000 as the large Department
of Commerce grant recognized in 2024 was not repeated; governmental capital grants rose $1,383,000,
principally for street projects.

Ɣ

Culture and recreation expense increased $648,000 and interest expense increased $414,000, both
reflecting the opening of the Cheney Aquatic Center in July 2025 and a full year of general obligation
bond debt service.

Ɣ

At the close of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $11,878,837, a decrease of $1,721,330, or 13%, compared to the prior year. $5,640,686 is
available for spending at the City's discretion. Governmental capital additions were $9,399,378, of which
the aquatic center and street infrastructure represented the substantial majority.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is designed to introduce the basic financial statements of the City of Cheney. The City's
financial statements consist of three main components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. Additionally, this report includes information
beyond the basic financial statements.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City of
Cheney's finances, similar to that of private-sector businesses.
The statement of net position presents information on all the City's assets, deferred outflows, liabilities, and
deferred inflows, with the difference reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the City's financial position is improving or deteriorating.
The statement of activities presents information showing how the government's net position changed during the
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will result in cash flows in future periods.
The government-wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions intended to recover all or a

Page 31

significant portion of their costs through user fees (business-type activities). The governmental activities include
general government, finance, police, fire, streets, planning, building, municipal court, and culture and recreation.
The business-type activities include electricity, water, garbage, and sewer.

Fund Financial Statements
A fund is a grouping of related accounts used to control resources that have been segregated for specific activities
or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements. All the funds of the City can be divided into three categories:
governmental, proprietary, and fiduciary.
Governmental Funds. Governmental funds account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources and balances of spendable resources available at the end of the fiscal year. Such information may help
evaluate a government's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities. The governmental funds balance sheet and the governmental funds statement of
revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison.
The City maintains 15 individual governmental funds. The General Fund, Parks and Recreation Fund, and Pool
Construction Fund were reported as major governmental funds in 2025. Data from the other 12 governmental
funds are considered non-major and are combined into a single, aggregated presentation.
The City adopts an annual appropriated budget for all governmental and proprietary funds. To demonstrate
compliance with this budget, a budgetary comparison statement has been provided for the City's major
governmental funds.
Proprietary Funds. The City maintains two types of proprietary funds. Enterprise funds report the same functions
as business-type activities in the government-wide financial statements; the City uses enterprise funds for its
electric, water, solid waste, and sewer operations. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the City's various functions; the City uses internal service funds
for equipment rental, mechanical shop, and unemployment. Because these funds predominantly benefit
governmental rather than business-type functions, they have been included within governmental activities in the
government-wide financial statements
Fiduciary Funds. Fiduciary funds account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of those
funds are not available to support the City's programs.

Notes to the Financial Statements
The notes provide additional information essential to fully understanding the data provided in the governmentwide and fund financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may be a valuable indicator of a government's financial position over time. In the
case of the City of Cheney, assets and deferred outflows exceeded liabilities and deferred inflows by $81,847,482
at the close of 2025, an increase of 4.4% over 2024.
By far the largest portion of the City's net position (66%) reflects the investment in capital assets, less any related
outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in capital assets

Page 32

is reported net of related debt, the resources needed to repay that debt must be provided from other sources,
since the capital assets themselves cannot be used to liquidate these liabilities.
The table below illustrates a comparative view of net position for governmental and business-type activities for
the fiscal years ending 2025 and 2024.
City of Cheney, Washington – Condensed Statement of Net Position
Governmental Activities
Current and Other Assets

Business-Type Activities

Total

2025

2024

2025

2024

2025

2024

$15,476,635

$16,886,661

$17,736,192

$15,686,761

$33,212,827

$32,573,422

Capital Assets

31,017,341

23,525,149

48,673,797

39,604,921

79,691,138

63,130,070

Total Assets

$46,493,976

$40,411,810

$66,409,989

$55,291,682

$112,903,965

$95,703,492

Total Deferred Outflows of
Resources

$3,620,104

$3,016,256

$1,232,661

$1,142,157

$4,852,765

$4,158,413

Long-Term Liabilities
Outstanding

$16,273,706

$11,918,728

$14,177,613

$3,874,328

$30,451,319

$15,793,056

Other Liabilities

1,111,410

1,355,441

2,420,280

3,156,582

3,531,690

4,512,023

Total Liabilities

$17,385,117

$13,274,169

$16,597,893

$7,030,910

$33,983,010

$20,305,079

Total Deferred Inflows of
Resources

$1,451,500

$715,385

$474,740

$449,203

$1,926,240

$1,164,588

Net Investment in Capital Assets

$52,644,590

$18,226,052

$15,950,203

$35,504,310

$36,694,387

$53,730,362

Restricted

1,529,645

1,750,023

3,450,916

2,623,346

4,980,561

4,373,369

Unrestricted

11,521,767

11,738,286

11,614,792

9,635,993

23,136,558

21,374,279

Total Net Position

$31,277,464

$29,438,512

$50,570,018

$48,953,726

$81,847,482

$78,392,238

In addition to the 66% of the City's net position invested in capital assets, 6% represents resources subject to
external restrictions on their use. The remaining balance of unrestricted net position, $23,136,558 (28%), may be
used to meet the government's ongoing obligation to citizens and creditors.
Net investment in capital assets increased in governmental activities notwithstanding the completion of the
aquatic center, because the second series of general obligation bonds increased the related outstanding debt by
more than the corresponding increase in capital assets during the year.

Governmental Activities
Governmental activities increased the City's net position by $1,864,730 in 2025. The Cheney Aquatic Center was
completed and opened to the public in July 2025, and the second series of general obligation bonds was issued in
March 2025. Capital grants and contributions of $1,446,479 supported arterial and residential street projects.
Key elements of this change in net position are displayed in the following table:
City of Cheney, Washington – Condensed Statement of Activities
Governmental Activities

Business-Type Activities

Total

2025

2024

2025

2024

2025

2024

Charges for Services

$1,902,682

$2,121,485

$18,629,999

$17,333,707

$20,532,681

$19,455,192

Operating
Grants/Contributions

845,492

1,043,159

0

1,673,895

845,492

2,717,054

Revenues:

Capital Grants/Contributions

1,446,479

63,413

1,543,907

11,286,918

2,990,386

11,350,331

Property Tax

4,394,626

4,031,772

–

–

4,394,626

4,031,772

Retail Sales/Use Tax

3,147,154

2,832,178

–

–

3,147,154

2,832,178

Utility Tax

2,847,719

2,660,150

–

–

2,847,719

2,660,150

Excise Tax

846,310

–

–

–

846,310

–

Other

545,593

1,580,718

1,166,123

493,525

1,711,716

2,074,243

Page 33

Total Revenue

$15,976,055

$14,332,875

$21,340,029

$30,788,045

$37,316,084

$45,120,920

$1,033,163

$1,313,154

$–

$–

$1,033,163

$1,313,154

543,591

594,823

–

–

543,591

594,823

Public Safety

7,767,286

7,679,837

–

–

7,767,286

7,679,837

Transportation

Expenses:
General Government
Judicial

1,396,817

1,767,864

–

–

1,396,817

1,767,864

Economic Environment

655,164

653,954

–

–

655,164

653,954

Mental/Physical Health

3,778

3,812

–

–

3,778

3,812

Culture and Recreation

2,185,190

1,537,198

–

–

2,185,190

1,537,198

Interest

526,335

112,511

–

–

526,335

112,511

Electric

–

–

10,866,151

10,109,819

10,866,151

10,109,819

Water

–

–

2,462,665

2,322,759

2,462,665

2,322,759

Solid Waste

–

–

1,763,420

1,797,719

1,763,420

1,797,719

–

–

4,637,974

3,832,768

4,637,974

3,832,768

Total Expenses

Sewer

$14,111,324

$13,663,153

$19,730,211

$18,063,065

$33,841,535

$31,726,218

Change in Net Position

$1,864,730

$669,722

$1,609,818

$12,724,980

$3,474,548

$13,394,702

Beginning Net Position, as
previously reported

$29,438,512

$27,334,702

$48,953,485

$37,577,834

$78,391,997

$64,912,536

Error Correction (Note 2)

(25,778)

1,434,088

6,716

(1,349,088)

(19,062)

85,000

Beginning Net Position, as
restated

$29,412,734

$28,768,790

$48,960,201

$36,228,746

$78,372,935

$64,997,536

Net Position – December 31

$31,277,464

$29,438,512

$50,570,018

$48,953,726

$81,847,482

$78,392,238

Error correction. During 2025 the city identified three errors affecting balances reported at December 31, 2024. Each was
corrected as a restatement of beginning fund balance and beginning net position under GASB Statement No. 100:
• Fund 001 General — accounts payable invoices of $12,866 applicable to 2024 were not recorded until 2025, overstating
beginning fund balance and beginning net position.
• Fund 104 Fire (nonmajor governmental) a wildfire brush-truck reimbursement receivable of $12,912 recognized at
December 31, 2024, was determined not to be collectible, overstating beginning fund balance and beginning net
position.
• Fund 401 Light — contributed capital of $6,716 was not recorded on December 31, 2024, understating beginning net
position.

The graphs below illustrate the breakdown of governmental revenues and expenses and the specific allocation of
all governmental revenues.

Page 34

Business-Type Activities
The net position of business-type activities increased in 2025 by $1,609,818. Charges for services increased across
all four utilities under the council-approved rate plan. The decrease in capital grants and contributions reflects the
substantial completion of the Purple Pipe Wastewater Project and the exhaustion of American Rescue Plan Act
funding, both of which drove the unusually large 2024 amount. Sewer expense increased $805,000, reflecting a
full year of operation of the purple pipe facilities.

Page 35

FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City of Cheney uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.

Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances
of non-spendable, restricted, committed, assigned, and unassigned resources. An unassigned fund balance may
be a useful measure of a government's net resources available for spending at the end of the fiscal year.
At the close of 2025, the City's governmental funds balance sheet reported combined ending fund balances of
$11,878,837, a decrease of $1,721,330 compared to the prior year. The decrease reflects the expenditure of

Page 36

general obligation bond proceeds on the construction of the aquatic center. The voter-approved renewal of the
six-year levy lift continues to provide essential funding for public safety purposes.

General Fund
The General Fund is the City's primary operating fund and supports services such as administration, police,
fire, and municipal court. The fund reported an ending fund balance of $6,093,374 in the budgetary
comparison, including $5,640,686 in unassigned resources available for general purposes.
Actual expenditures and other financing uses totaled $9,673,714, which was $2,381,986 below the final
budget. The favorable variance primarily reflects the allocation of finance and executive costs to the utility
funds that benefit from those services. The General Fund's ending balance exceeded the budgeted amount
by $2,286,174. The City continues to maintain a target operating reserve of 25% to help cover unexpected
costs and revenue fluctuations.
Parks and Recreation Fund
The Parks and Recreation Fund supports the City's parks and recreational services. Government-wide
culture and recreation expenses increased by $647,992 in 2025, primarily due to the opening of the Cheney
Aquatic Center in July. The new facility expands recreational services but also increases ongoing operating
and maintenance costs. The fund's revenues, expenditures, and ending balance should be considered when
evaluating its ability to support these costs.
Pool Construction Fund
The Pool Construction Fund accounts for resources used to construct the Cheney Aquatic Center.
Governmental capital asset additions totaled $9,399,378 in 2025, with the aquatic center and street
projects representing the substantial majority. The City issued the second $5 million series of general
obligation bonds in March 2025, bringing total bond issuances for the project to $13 million. The use of
bond proceeds for construction contributed to the decline in governmental fund balances. With the aquatic
center open, the City must also plan for its ongoing operating and maintenance costs.
Proprietary Funds
The City's proprietary funds provide the same information as the government-wide financial statements, but in
more detail. The net position at the close of 2025 for the four utilities and the internal service funds is as follows:
City of Cheney, Washington – Recap of Proprietary Funds Net Position
Fund

Unrestricted Net Position

Total Net Position

Light

$6,594,299

$14,674,954

Water

1,272,056

9,451,955

Solid Waste

1,309,932

2,246,908

Sewer

2,438,504

24,196,201

Internal Service Funds (combined)
Total

107,077

439,802

$11,721,869

$51,009,820

Light (Electric) Fund
The Light Fund reported total net position of $14,674,954, including $6,594,299 in unrestricted net
position, at December 31, 2025. Electric utility expenses were $10,866,151, up from $10,109,819 in

Page 37

2024. The City should continue monitoring operating costs, rates, and infrastructure needs to maintain
reliable electric service.
Water Fund
The Water Fund reported total net position of $9,451,955, including $1,272,056 in unrestricted net
position. Water utility expenses increased from $2,322,759 in 2024 to $2,462,665 in 2025. Continued
attention to operating costs, water system improvements, and rate sufficiency will help support
reliable service.
Solid Waste Fund
The Solid Waste Fund reported total net position of $2,246,908, including $1,309,932 in unrestricted
net position. Expenses decreased from $1,797,719 in 2024 to $1,763,420 in 2025. The City should
continue evaluating service costs and revenues to ensure that rates support ongoing operations and
equipment needs.
Sewer Fund
The Sewer Fund reported total net position of $24,196,201, including $2,438,504 in unrestricted net
position. Expenses increased from $3,832,768 in 2024 to $4,637,974 in 2025, primarily reflecting a full
year of operation of the Purple Pipe facilities. The City also had $12,970,332 in Department of Ecology
loans outstanding at year-end, including financing for the Purple Pipe project. Future planning should
consider operating costs, loan repayments, and infrastructure maintenance.
Internal Service Funds
The City's internal service funds support equipment rental, mechanical shop, and unemployment
activities. At year-end, these funds reported total net position of $439,802, including $107,077 in
unrestricted net position. The City should continue monitoring internal charges, operating costs, and
equipment replacement needs to ensure that these funds have adequate resources.
GENERAL FUND BUDGETARY HIGHLIGHTS
The following table illustrates the General Fund budget, including the original budget, amendments, final budget,
and actual amounts. For this disclosure, other financing uses are included in the table, as is the ending fund
balance. A detailed budget-to-actual statement is presented later in this document.
General Fund
Expenditures and Other Financing
Uses
Ending Fund Balance
Totals

Original Budget

Amendments

Final Budget

Actual

Budget Variance

$11,980,500

$75,200

$12,055,700

$9,673,714

$2,381,986

3,807,200

–

3,807,200

6,093,374

(2,286,174)

$15,787,700

$75,200

$15,862,900

$15,767,088

$95,812

The budget was amended twice during 2025, by Ordinance Y-87 in May and Ordinance Y-97 in December,
increasing General Fund appropriations by $75,200. The positive expenditure variance primarily results from
allocating finance and executive charges to proprietary funds. The cost is transferred to those funds, removing the
expense from the General Fund. Because budgeted expenditures were not fully expended, the actual ending fund
balance exceeded the budgeted amount by $2,286,174.

Page 38

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The City's net capital assets for its governmental and business-type activities as of December 31, 2025 amount to
$79,691,138, net of accumulated depreciation. Capital assets include land, buildings, improvements,
infrastructure, machinery and equipment, and park facilities. The total increase in net capital assets for the current
fiscal year was 26%.
Capital asset additions totaled $21,517,344, of which $9,399,378 related to governmental activities and
$12,117,966 to business-type activities. Significant additions during 2025 include the Cheney Aquatic Center,
arterial and residential street projects, water and sewer infrastructure improvements, and the Purple Pipe
reclaimed water distribution system.
City of Cheney, Washington – Capital Assets (net of depreciation)
Governmental Activities
Land
Capital Assets Being
Depreciated, Net
Construction in Progress
Total

Business-Type Activities

Total

2025

2024

2025

2024

2025

2024

$952,550

$952,550

$1,529,195

$1,521,891

$2,481,745

$2,474,441

30,064,791

22,564,879

47,131,155

38,054,946

77,195,946

60,619,825

–

7,720

13,447

28,084

13,447

35,804

$31,017,341

$23,525,149

$48,673,797

$39,604,921

$79,691,138

$63,130,070

Please see Note 5 – Capital Assets for additional detailed capital asset information.

Long-Term Debt
The citizens of Cheney approved a general obligation bond issue in 2023 to construct a new aquatic center, with
property tax assessment beginning in 2024. The maximum approved bond limit is $13,000,000, to be repaid over
a maximum term of 25 years. The bonds were issued in two series: $8,000,000 in 2024 and $5,000,000 in 2025.
The aquatic center opened to the public in July 2025.
An AA+ credit rating was received from S&P Global Ratings before the first series, and was affirmed for the second
series issued in March 2025.
At the end of 2025, the City of Cheney had long-term debt totaling $25,841,033. General obligation bonds of
$12,388,000 comprise $11,695,000 of par value and $693,000 of unamortized premium. Department of Ecology
loans of $12,970,332 include the Purple Pipe Clean Water State Revolving Fund loan (CWSRF-SFY22), which bears
an effective rate of 1.2% and on which the first repayment is due in 2028. The Public Works Trust Fund loan was
repaid in full during 2025.
City of Cheney, Washington – Outstanding Debt
Governmental Activities

Business-Type Activities

Total

2025

2024

2025

2024

2025

2024

General Obligation Debt

$12,388,000

$7,467,600

$–

$–

$12,388,000

$7,467,600

Public Works Trust Fund

–

–

–

23,674

–

23,674

Department of Ecology

–

–

12,970,332

2,870,810

12,970,332

2,870,810

Financed Purchases

319,620

365,379

–

–

319,620

365,379

Leases / SBITA

83,669

79,732

79,412

16,050

163,081

95,782

$12,791,289

$7,912,711

$13,049,744

$2,910,534

$25,841,033

$10,823,245

Total

The City's long-term debt increased by $15,017,788, or 139%, principally as a result of the second series of general
obligation bonds and the drawdown of the Purple Pipe loan.

Page 39

For detailed long-term debt information, including short-term debt payable in 2026, please see Note 9 – LongTerm Debt and Note 13 – Changes in Long-Term Liabilities.

ECONOMIC FACTORS AND CHENEY IN THE FUTURE
The City's economy remains anchored by Eastern Washington University and by the retail, healthcare, and light
industrial activity along the State Route 904 corridor. Assessed valuation continued to grow in 2025, and the City's
utility customer base expanded modestly. The five-year council-approved utility rate plan remains in effect and
continues to fund operations and capital reinvestment across the four enterprise funds.
The aquatic center opened in July 2025 and represents the City's largest capital undertaking in recent history. Debt
service on the general obligation bonds is supported by a voter-approved excess property tax levy and does not
draw on general governmental resources.
Proposition F-488, a renewal of the City's residential street utility tax, was approved by voters on August 4, 2026.
The measure preserves the dedicated funding source for residential street maintenance and reconstruction.
Because the measure was approved after December 31, 2025, no effect has been recognized in the accompanying
financial statements.
Management considered these factors in preparing the City's 2026 budget.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Cheney's finances for all those with
an interest in the government's finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to:
James Rouse, Finance Director
City of Cheney, Washington
609 Second Street
Cheney, WA 99004
[email protected]
(509) 498-9215

Page 40

CITY OF CHENEY, WASHINGTON
Statement of Net Position
December 31, 2025

Governmental

Business-Type

2025

Activities

Activities

Total

Assets
Cash and Cash Equivalents

$

10,770,480 $

11,488,378 $

22,258,858

Receivables:
Taxes(Utility and Property)

1,125,296

1,654,777

2,780,073

Other

262,004

605,435

867,439

Lease

4,589

208,977

213,566

Internal Balances

(58,750)

58,750

(0)

Due from Other Governments
Inventory

520,939
6,172

2,564
2,963,945

523,503
2,970,117

Prepaid Expenses

198,016

113,456

311,472

Land

952,550

1,529,195

2,481,745

Construction in Progress

13,447

13,447

30,064,791

-

47,131,155

77,195,946

$

2,647,888
46,493,976 $

639,911
66,409,989 $

3,287,799
112,903,965

$

45,775 $

-

-

288,426

288,426

$

3,574,329
3,620,104 $

944,235
1,232,661 $

4,518,564
4,852,766

$

1,418,583

Depreciable Capital Assets, Net
Net Pension Asset
Total Assets
Deferred Outflows of Resources
Related to OPEB
Related to Asset Retirement Obligations
Related to Pensions
Total Deferred Outflows of Resources

$

45,775

Liabilities
283,686 $

1,134,898 $

Retainage Payable

Accounts Payable

-

119,744

119,744

Unearned Revenue

66,105

56,489

122,595

17,161

61,211

631,976

661,576

Lease/SBITA Liability - Current

44,050

Financed Purchases - Current

45,770

External Debt Payable - (Due in one year)

29,600

Wages Payable

45,770

-

21,177

21,177

Compensated Absences - Current

502,199

438,836

941,034

Total Post Employment Liability - Current

140,000

-

140,000
101,870

Long-Term Liabilities:
Lease/SBITA Liability

39,618

62,251

Asset Retirement Obligations

30,000

400,000

430,000

12,358,400

12,338,356

24,696,756

Long Term Debt
Financed Purchases

273,850

-

273,850

Compensated Absences Payable

699,008

736,284

1,435,292

2,692,007

-

2,692,007

180,823

154,035

334,858

17,385,117 $

486,687
16,597,893 $

486,687
33,983,009

Total Post Employment Liability - Public Safety
Net Pension Liability
Deposits
Total Liabilities

$

Deferred Inflows of Resources
Deferred Inflows Related to Leases
Deferred Inflows Related to Pensions
Total Deferred inflows of Resources

$

-

$

197,754 $

197,754

$

1,451,500
1,451,500 $

276,986
474,740 $

1,728,486
1,926,240

$

18,226,052 $

35,504,310 $

53,730,362

3,077,401

3,280,731

Net Position
Net Investment in Capital Assets
Restricted for:
Capital Purposes

203,329

Opioid Settlement

117,497

-

117,497

Net Pension Asset

1,208,819

373,514

1,582,333

11,521,767
31,277,464 $

11,614,792
50,570,018 $

23,136,558
81,847,481

Unrestricted (deficit)
Total Net Position

$

The Notes to the Financial Statements are an Integral Part of this Statement

Page 41

CITY OF CHENEY, WASHINGTON
Statement of Activities
For the Fiscal Year Ended December 31, 2025

Net (Expenses) Revenue and
Changes in Net Position

Program Revenues

Expenses
Governmental Activities:
General Government
Judicial
Public Safety
Transportation
Economic Environment
Mental and Physical Health
Culture and Recreation
Interest
Total Governmental Activities
Business-Type Activities:
Light
Water
Solid Waste
Sewer
Total Business-Type Activities
Total Government

Operating
Grants and
Contributions

Charges for
Services

Capital
Grants and
Contributions

Governmental
Activities

Business-Type
Activities

$

1,033,163
543,591
7,767,286
1,396,817
655,164
3,778
2,185,190
526,335

$

67,871
79,572
919,682
16,663
198,325
620,569
-

$

14,256
265,427
339,665
10,263
215,881
-

$

1,446,479
-

$

(951,036)
(198,592)
(6,507,940)
76,588
(456,839)
(3,778)
(1,348,740)
(526,335)

$

14,111,324

$

1,902,682

$

845,492

$

1,446,479

$

(9,916,672) $

$

10,866,151
2,462,665
1,763,420
4,637,974

$

11,034,954
2,139,719
1,902,270
3,553,056

$

-

$

$

19,730,211

$

18,629,999

$

-

$

283,739
94,735
1,165,433
1,543,907

$

-

$

33,841,535

$

20,532,681

$

845,492

$

2,990,386

Total

$

(951,036)
(198,592)
(6,507,940)
76,588
(456,839)
(3,778)
(1,348,740)
(526,335)

$

(9,916,672)

$

452,542 $
(228,211)
138,849
80,514

452,542
(228,211)
138,849
80,514

$

443,695

$

443,695

$

(9,916,672) $

443,695

$

(9,472,977)

$

4,394,626
3,147,154
2,847,719
846,310
35,390
34,439
475,764

$

445,629
348,805
371,689

$

4,394,626
3,147,154
2,847,719
846,310
481,020
383,244
847,453

Total General Revenues

$

11,781,402

$

1,166,123

$

12,947,525

Change in Net Position

$

1,864,730

$

1,609,818

$

3,474,548

Property Taxes
Retail Sales & Use Tax
Utility Taxes
Excise Taxes
Disposition of Capital Assets
Insurance Proceeds/Settlements
Interest

Beginnning Net Position, as previously reported
Error Correction (see Note 2)
Beginning EĞƚWŽƐŝƚŝŽŶ͕ as restated
Ending Net Position

29,438,512
(25,778)
29,412,734
$

31,277,464

-

48,953,484
6,716
48,960,200
$

50,570,018

78,391,996
(19,062)
78,372,934
$

81,847,482

The Notes to the Financial Statements are an Integral Part of this Statement

Page 42

CITY OF CHENEY, WASHINGTON
Balance Sheet
Governmental Funds
December 31, 2025
Major Funds

General

Assets and Outflows of Resources
Cash and Cash Equivalents
Receivables
Taxes - Property/Utility
Contracts/Lease
Municipal Court
Interfund
Other
Inventories
Prepayments
Due from Other Governments
Total Assets

Other
Total
Parks &
Pool
Governmental Governmental
Recreation Contruction
Funds
Funds

$ 5,300,739 $ 567,040 $

-

740,584
87,285
4,589
100,764
37,705
110,327
180,151
718
353,477
$ 6,718,008 $ 765,370 $

-

$

178,857 $ 14,543
61,105
178,857 $ 75,649 $

-

228,380 $
136,554
80,843
445,778 $

$

Nonspendable $ 180,151 $
Restricted
117,497
112,077
Committed
Assigned
155,039
577,644
Unassigned
5,640,686
$ 6,093,374 $ 689,721 $

Liabilities and Fund Balances
Liabilities:
Accounts Payable
Retainage Payable
Wages Payable
Interfund Loan Payable
Other Payables/Current Liabilities
Unearned Revenue
Total Liabilities

Deferred Inflows of Resources
Opioid Settlement
Unavailable Tax
Unavailable Court Receivable
Total Deferred inflows of Resources

$

$

$

-

$

4,736,616 $ 10,604,394
297,428

$

84,781
13,209
6,032
17,147
167,463
5,322,675

$

1,125,296
4,589
100,764
84,781
161,240
6,032
198,016
520,939
$ 12,806,052

90,026 $
84,781
5,000
179,807 $

283,426
84,781
5,000
61,105
434,313

$

$
47,124

-

$

47,124 $

228,380
183,678
80,843
492,901

-

$

$

23,178 $
203,329
2,375,047
2,604,621
1,008,198
1,008,198
1,689,320
2,422,003
5,640,686
5,095,743 $ 11,878,837

-

$

5,322,674 $ 12,806,052

$

Fund Balances

Total Fund Balance

Total Liabilities and Fund Balance

$ 6,718,008 $ 765,370 $

The Notes to the Financial Statements are an Integral Part of this Statement
Page 43

CITY OF CHENEY, WASHINGTON
Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities
December 31, 2025

Amounts reported for governmental activities in the statement of net position are different because:

Total Governmental Fund Balances:

$ 11,878,837

Capital Assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds. These assets consist of:
Land
952,550
Buildings and structures
4,849,381
Improvements
1,765
Infrastructure
55,047,511
Machinery and Equipment
6,338,722
Leases/SBITA
149,955
WIP
Less: Accumulated Depreciation
37,265,543
Deferred Outflows related to Pension and OPEB - not presented in fund
financial statements.
Property tax revenue not collected within the availability period is deferred in the
governmental funds but is recognized as revenue in the government-wide statements.
Court Receivable
Opioid Settlements were recorded in 2022, corrected and restated in 2023. Receivable and
Deferred Inflow recorded at the fund level, Deferred Inflow removed from government-wide
statements.
Net Pension Assets are reported in the government-wide statements of Net Position, not in
the individual fund statements.
Long-term liabilities, asset retirement obligations are not due and payable in the current
period and, therefore, are not reported in the governmental funds.
Long-term liabilities, including lease payable not due and payable in the current period and,
therefore, are not reported in the governmental funds.
Long-term liabilities, including compensated absences payable are not due and payable in
the current period and, therefore, are not reported in the governmental funds.
Long-term liabilities, including other post employment benefits payable are not due and
payable in the current period and, therefore, are not reported in the governmental funds.
Long-Term liabilities, including financed purchases payable , are not due and payable in the
current period and, therefore, are not reported in the governmental funds.
Long-Term liabilities, including external general obligation debt , are not due and payable in
the current period and, therefore, are not reported in the governmental funds.
Long-Term liabilities, including net pension liability, are not due and payable and in the
current period and, therefore, are not reported in the governmental funds.
Deferred Inflows related to Pension - not presented in fund financial statements.
Internal service funds are used by management to charge the costs of certain activities to
individual funds. Total assets and liabilities of the internal service funds are included in
governmental activities in the statement of net position.

Net Position of Governmental Activities

30,684,756
3,620,104
183,678
80,843

228,380
2,647,888
(30,000)
(83,669)
(1,201,207)
(2,832,007)
(319,620)
(12,388,000)
(180,823)
(1,451,500)

439,802

$ 31,277,463

The Notes to the Financial Statements are an Integral Part of this Statement

Page 44

CITY OF CHENEY, WASHINGTON
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended December 31, 2025
Major Funds

General

Other

Total

Parks &

Pool

Governmental

Governmental

Recreation

Construction

Funds

Funds

2,553,983 $

10,531,733

Revenues
Taxes

7,289,498 $

688,252 $

-

Licenses and Permits

$

173,810

-

-

43,605

217,415

Intergovernmental

973,758

5,983

-

1,720,600

2,700,341

Charges for Services

1,040,714

620,569

-

44,744

1,706,027

Fines and Forfeits

71,328

-

-

-

71,328

Miscellaneous

255,225

238,969

58,562

196,815

749,571

9,804,332 $

1,553,773 $

4,559,747 $

15,976,414

1,546,799 $

-

44,165 $

1,590,964

6,870,841

-

Total Revenues

$

$

58,562 $

Expenditures
General Government

$

Public Safety
Physical Environment

44,976

Economic Environment

576,838

Mental and Physical Health

3,778

Culture and Recreation

17,422

Transportation

$

-

$

-

1,295,151

8,165,992

-

44,976
645,003

-

-

68,165

-

-

-

3,778

-

-

1,693,006

-

612,577

612,577

1,675,584

-

-

Principal

55,919

-

-

77,770

133,688

Interest

21,063

-

-

505,272

526,335

-

1,699,562

1,699,562

282,279

7,651,924

7,224,582 $

4,584,941 $

22,767,806

(180,796) $ (7,166,020) $

(25,194) $

(6,791,391)

Debt Service:

Capital Outlay:
Street Construction
Capital Assets

-

-

86,078

58,985
1,734,569 $

Total Expenditures

$

9,223,714 $

Excess of Revenues over Expenditures

$

580,619 $

Proceeds from Sale of Capital Assets

$

9,200 $

Insurance Recoveries

$

9,248

7,224,582

Other Financing Sources (Uses)

Transfers In

-

Transfers Out

(450,000)

$

-

100,000

99,078

GO Bond Proceeds

-

-

4,695,000

Premiums on Bonds Issued

-

-

305,000

Leases

-

$

-

$

$

-

$

350,000

9,200
9,248
549,078

(99,078)

(549,078)

222

4,695,222

-

305,000

51,391

51,391

Total Other Financing Sources (Uses)

$

(431,552) $

100,000 $

5,099,078 $

302,535 $

5,070,061

Net Change in Fund Balances

$

149,067 $

(80,796) $ (2,066,942) $

277,340 $

(1,721,330)

Beginning Fund Balance, as previously reported

$

13,625,946

5,957,173 $

770,518 $

2,066,942 $

4,831,313 $

Error Correction (see Note 2)

(12,866)

-

-

(12,912)

(25,778)

Beginning Fund Balance, as restated

5,944,307

770,518

4,818,401

13,600,168

6,093,374 $

689,722 $

5,095,741 $

11,878,838

Total Fund Balance End of Year

$

2,066,942
0 $

The Notes to the Financial Statements are an Integral Part of this Statement
Page 45

CITY OF CHENEY, WASHINGTON
Reconciliation of Statement of Revenues, Expenditures and Changes
In Fund Balances of Governmental Funds to the Statement of Activities
For the Fiscal Year Ended December 31, 2025

Net Change in Fund Balance - Total Governmental Funds

$

(1,721,330)

Amounts reported for Governmental activities in the statement of
activities are different because:
Internal Service Funds are not included in the Statement of Revenues, Expenditures
and Changes in Fund Balances. Those Internal Service Funds are included in the
governmental Activities section of the Statement of Activities because they directly
benefit governmental funds. This is the net change in position for Internal Service
Funds.
Depreciation Expense, and Compensated Absences for Governmental Funds are not
included in the Governmental Funds Statement of Revenues, Expenditures, and
Changes in Fund Balance. They are included in the Governmental Funds on the
Statement of Activities.
Other Post Employment Benefits Payable for Governmental Funds are not included in
the Governmental Funds Statement of Revenue, Expenditures, and Changes in Fund
Balance. The difference in OPEB Liability and actual amount paid on the "pay as you
go basis" is included in the Statement of Activities.

50,218

(1,909,147)

315,631

Debt Service for financed purchases are removed from governmental expenditures
and a reduction of the Long-Term Liability is made.
Amortization of Governmental Activity Debt Premium
Issued General Obligation Debt, debt proceeds are removed from the Statement of
Activates and Liability is reported in the Statement of Net Position.

90,000
35,370
(5,000,221.85)

Leases are shown as a liability on the Statement of Net Position, debt payments and
new lease financing sources are removed from the Statement of Activities.
Capital Items are included on the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balance. These expenses are moved to capital
assets on the Statement of Net Position and are not shown on the Statement of
Activities. Annual Depreciation is reported in the Statement of Activities to record the
assets as they are "used".

13,529

9,355,705

New Opioid Revenue reported in fund statements, removed from Statement of
Activities, amounts received are reported as a reduction of receivable and deferred
inflow on the Statement of Net Position.
Accounts payable of $12,866 and a receivable write-off of $12,912 applicable to 2024
were corrected as a restatement of beginning net position (see Note 2) and are
excluded from current year activity in the statement of activities.
Pension Expense and LEOFF 2 state contribution for Pensions are not included in the
Governmental funds but included in the Statement of Activities.
Change in Net Position of Governmental Activities

34,439

25,778
574,758
$

1,864,730

The Notes to the Financial Statements are an Integral Part of this Statement
Page 46

CITY OF CHENEY, WASHINGTON
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual
For the Year Ended December 31, 2025

Variance with

Budgeted Amounts
Original

Final

Actual

Final Budget -

Amounts

Positive (Negative)

Revenues
Taxes

6,771,600 $

6,771,600 $

7,289,498

Licenses and Permits

$

156,300

156,300

173,810

$

517,898
17,510

Intergovernmental

701,100

751,400

973,758

222,358

Charges for Services

3,515,100

3,515,100

1,040,714

(2,474,386)

Fines and Forfeits

82,600

82,600

71,328

(11,272)

Miscellaneous

317,600

336,000

255,225

(80,775)

11,544,300 $

11,613,000 $

9,804,332 $

(1,808,668)

2,448,001

Total Revenues

$

Expenditures
General Government

$

3,994,800 $

3,994,800 $

1,546,799

6,277,500

6,352,700

6,870,841

(518,141)

Physical Environment

653,600

653,600

44,976

608,624

Economic Environment

516,000

516,000

576,838

(60,838)

Mental and Physical Health

4,500

4,500

3,778

722

Culture and Recreation

38,600

38,600

17,422

21,178

Public Safety

Capital

$

-

-

86,078

(86,078)

Debt Service: Principal

40,000

40,000

55,919

(15,919)

Debt Service: Interest

17,300

17,300

21,063

(3,763)

Unallocated Contingency/Reserves

88,200

88,200

-

88,200

9,223,714 $

2,481,986

580,619

$

673,319

-

$

Total Expenditures

$

11,630,500 $

11,705,700 $

Excess of Revenues over Expenditures

$

(86,200) $

(92,700) $

Leases

-

-

$

Insurance Recoveries

-

-

$

Sale of Capital Asset

-

-

Operating Transfer In

-

-

Operating Transfer Out

(350,000)

Other Financing Sources (Uses)
-

9,248 $

9,248

9,200

9,200

(350,000)

(450,000)

(100,000)

-

Total Other Financing Sources (Uses)

$

(350,000) $

(350,000) $

(431,552) $

(81,552)

Net Change in Fund Balances

$

(436,200) $

(442,700) $

149,067 $

591,767

Fund Balance - Beginning of Year

$

4,821,100 $

4,821,100 $

5,957,173 $

1,136,073

Error Correction (see Note 2)

(12,866)

(12,866)

Beginning Fund Balance, as restated

$

4,821,100 $

4,821,100 $

5,944,307 $

1,123,207

Total Fund Balance - End of Year

$

4,384,900 $

4,378,400 $

6,093,374 $

1,714,974

The Notes to the Financial Statements are an Integral Part of this Statement
Page 47

CITY OF CHENEY, WASHINGTON
Parks and Recreation Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual
For the Year Ended December 31, 2025

Budgeted Amounts
Original

Variance with

Final

Actual

Final Budget -

Amounts

Positive (Negative)

Revenues
Taxes

$

660,200 $

660,200 $

688,252 $

Licenses and Permits

28,052

-

-

Intergovernmental

10,500

47,700

5,983

(41,717)

Charges for Services

961,000

961,000

620,569

(340,431)

Miscellaneous

56,000

56,000

238,969

182,969

$

1,687,700 $

1,724,900 $

1,553,773 $

(171,127)

$

1,725,100 $

1,709,600 $

1,675,584 $

34,016

10,000

162,700

58,985

103,715

Total Revenues
Expenditures
Culture and Recreation
Capital
Total Expenditures

$

1,735,100 $

1,872,300 $

1,734,569 $

137,731

Excess of Revenues over Expenditures

$

(47,400) $

(147,400) $

(180,796) $

(33,396)

Operating Transfer Out

$

-

$

-

$

100,000

$

100,000

Sale of Capital Asset

$

-

$

-

$

-

$

-

Total Other Financing Sources (Uses)

$

-

$

-

$

100,000

$

100,000

Net Change in Fund Balances

$

(47,400) $

(147,400) $

(80,796) $

66,604

Beginning Fund Balance, as previously reported

$

864,900 $

944,900

$

770,518

$

(174,382)

Total Fund Balance - End of Year

$

817,500 $

797,500

$

689,722 $

(107,778)

Other Financing Sources (Uses)
Insurance Recoveries

-

-

-

-

The Notes to the Financial Statements are an Integral Part of this Statement
Page 48

CITY OF CHENEY, WASHINGTON
Statement of Net Position
Proprietary Funds
December 31, 2025

Solid
Light

Water

Waste

Sewer

Total

Internal

Enterprise

Service

Funds

Funds

Assets
Cash and Cash Equivalents

$

6,138,183

$

1,766,009

$

1,196,657

$

2,387,530

$

11,488,378

$

166,086

Investments
Receivables
Utility

1,063,903

128,887

164,410

297,576

1,654,777

-

Other

156,895

12,970

-

435,570

605,435

-

-

208,977

Lease
Governmental Units
Interfund loan
Inventories
$

-

-

-

2,564

-

-

-

-

403,190

-

375,294

84,174

Total Current Assets

208,977

247

2,443,361

Prepaid Expenses

-

2,316
403,190

10,292,022

-

11,217
$

2,503,602

145,290

4,699
$

1,365,766

2,963,945

13,366
$

3,279,332

140

113,456
$

17,440,721

$

166,226

Noncurrent Assets
Restricted cash, cash equiv, & Invest
NIES Credit Reserve

-

Consumer Deposits

-

-

-

-

-

-

-

-

-

-

-

Total Restricted Assets

$

-

$

-

$

-

$

-

$

-

$

-

Net Pension Asset

$

294,359

$

89,588

$

63,991

$

191,973

$

639,911

$

-

175,534

$

22,386

$

-

$

1,331,275

$

1,529,195

$

Capital Assets
Land

$

-

13,447

Building and Structures

4,566,261

3,999,274

751,162

27,344,524

36,661,220

-

Other Improvements

285,803

36,535

194,324

1,926,750

2,443,412

128,542

2,115,390

814,458

Machinery and Equipment

2,792,624

888,093

Infrastructure

12,024,200

13,645,605

-

-

13,447

-

Construction in Progress

-

8,720,581

14,516,688

-

20,830,458

46,500,263

-

Right to Use Lease Assets

16,867

-

-

10,847

27,713

-

Right to Use Subscription Assets

40,512

49,618

-

-

90,130

(14,490,339)

(10,866,981)

Less: Accumulated Depr

(2,165,951)

(25,585,001)

-

(53,108,272)

(610,415)

Total Capital Assets
(net of accumulated depr)

$

5,424,908

$

7,774,530

$

894,925

$

34,579,434

$

48,673,797

$

332,585

Total Noncurrent Assets

$

5,719,267

$

7,864,118

$

958,916

$

34,771,407

$

49,313,708

$

332,585

Total Assets

$

16,011,289

$

10,367,720

$

2,324,682

$

38,050,739

$

66,754,429

$

498,811

$

288,426

$

$

-

Deferred Outflows
Related to Asset Retirement Obligations

$

Related to Pensions
Total Deferred Outflows

434,348

132,193

-

$

94,424

$

288,426

283,270

-

$

1,232,661

$

-

382,078

$

1,134,898

$

260

283,270

$

434,348

$

420,619

$

94,424

$

$

631,809

$

45,651

$

75,359

$

944,235

-

Liabilities
Current Liabilities
Accounts Payable
Retainage Payable

5,091

-

Interfund (due in 2026)

-

114,652

119,744

23,161

Loans Payable: Short Term
-

344,440

-

-

344,440

External (due in 2026)

-

-

-

631,976

631,976

-

Accrued Interest Payable

-

-

-

-

-

-

Lease Liability - Short Term

8,287

6,773

-

2,101

17,161

-

Unearned Revenue

56,489

-

-

-

56,489

-

Wages Payable

21,177

Compensated Absences: Short term
Total Current Liabilities

-

200,104
$

-

73,797

-

47,822

922,958

$

470,661

$

-

$

400,000

$

21,177

117,112

123,182

$

-

$

1,247,919

-

438,836

-

$

2,764,720

$

23,421

$

400,000

$

-

Noncurrent Liabilties
Asset Retirement Obligations

$

Lease Liability - Long Term
Loans Payable
Interfund Loan Payable

-

30,227

26,662

-

5,363

62,251

-

-

-

12,338,356

12,338,356

-

-

-

-

-

-

35,589

Consumer Deposits Payable

486,687

-

-

-

486,687

-

Compensated Absences: Long Term

132,541

180,963

5,914

416,867

736,284

-

Net Pension Liability

70,856

21,565

15,404

46,210

154,035

-

Total Noncurrent Liabilities

$

720,310

$

629,190

$

21,318

$

12,806,795

$

14,177,613

$

35,589

Total Liabilities

$

1,643,269

$

1,099,851

$

144,499

$

14,054,714

$

16,942,333

$

59,009

$

197,754

$

-

$

$

197,754

$

-

Deferred Inflows
Related to Leases

$

Related to Pensions
Total Deferred Inflows

127,414

38,779

27,699

83,094

276,986

-

$

127,414

$

236,533

$

27,699

$

83,094

$

474,740

$

-

$

5,381,303

$

7,741,096

$

894,925

$

21,486,986

$

35,504,310

$

332,585

Net Position
Net Investment in Capital Assets
Restricted
Capital Purposes

2,527,535

Net Pension Asset
Unrestricted
Total Net Position

$

386,511

4,699

158,656

3,077,401

140

171,817

52,292

37,351

112,054

373,514

-

6,594,299

1,272,056

1,309,932

2,438,504

11,614,792

107,077

14,674,954

$

9,451,955

$

2,246,908

$

24,196,201

$

50,570,018

$

439,802

The Notes to the Financial Statements are an Integral Part of this Statement

Page 49

CITY OF CHENEY, WASHINGTON
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Fiscal Year Ended December 31, 2025

Solid
Light

Water

Waste

Sewer

Total

Internal

Enterprise

Service

Funds

Funds

Operating Revenues:
Charges for Services

$

Other Operating Revenues

10,798,811

$

23,083

Total Operating Revenues

$

2,109,588

$

6,770

10,821,894

$

6,059,690

$

2,116,358

1,894,015

$

7,355
$

1,901,370

3,541,047

$

11,821
$

3,552,869

18,343,460

$

220,352
220,352

49,030

-

$

18,392,490

$

$

6,059,690

$

Operating Expenses:
Purchased Power

$

Administration

-

$

-

$

-

-

1,059,746

935,219

115,620

1,979,867

4,090,452

172,406

484,597

639,042

186,900

1,743,530

3,054,069

39,633

3,578

2,026

-

2,169

7,773

ARO Amoritization

-

19,615

-

-

19,615

-

Recycling Center/Litter Control

-

-

20,691

-

20,691

-

-

1,199,598

-

Depreciation and amoritization
Lease/SBITA Amoritization

Solid Waste Collection

-

Maintenance
Customer Accounting/Cost Allocation
Fiber Operations

-

1,199,598

2,279,694

388,041

-

396,555

3,064,290

-

868,800

463,564

240,610

514,285

2,087,259

-

25,029

-

-

-

Total Operating Expenses

$

10,781,133

$

2,447,506

$

1,763,420

$

4,636,406

Operating Income (Loss)

$

40,761

$

(331,149) $

137,949

$

$

261,109

$

60,396

36,080

$

25,029
$

19,628,466

$

212,039

(1,083,538) $

(1,235,976) $

8,312

14,104

371,689

NonOperating Revenues (Expenses)
Investment Earnings
Interest Expense

$

$

$

8,057

(165)

(15,159)

-

(1,568)

(16,891)

(1,542)

Miscellaneous Revenue

213,061

23,361

900

188

237,509

-

Operating Transfer In

-

-

-

-

-

-

Intergovernmental

-

-

-

-

-

-

Sale of Surplus

-

-

-

-

-

-

Disposition of Capital Asset

20,029

-

-

425,600

445,629

35,390

Conservation

(84,854)

-

-

-

(84,854)

-

-

348,805

-

-

348,805

-

Transfer In

-

-

-

-

-

Increase/Decrease in Net Position

-

-

-

-

-

Judgements and Settlements

Total Nonoperating Revenue/

$

409,180

$

417,403

$

36,980

$

438,323

$

1,301,886

$

41,906

Income (loss) before contributions

$

449,941

$

86,254

$

174,930

$

(645,214) $

65,911

$

50,218

Capital Contributions

$

283,739

$

94,735

$

-

$

1,165,433

$

1,543,907

$

-

Increase (Decrease) in Net Position

$

733,680

$

180,990

$

174,930

$

520,218

$

1,609,818

$

50,218

Beginning Net Position, as previously reported

$

13,934,558

$

9,270,967

$

2,071,978

$

23,675,982

$

48,953,485

$

389,583

(Expenses)

Error Correction, See Note 2

6,716

-

6,716

Beginning Net Position, as restated

$

13,941,274

$

9,270,967

$

2,071,978

$

23,675,982

$

48,960,201

$

389,583

Ending Net Position

$

14,674,954

$

9,451,957

$

2,246,908

$

24,196,201

$

50,570,019

$

439,801

The Notes to the Financial Statements are an Integral Part of this Statement

Page 50

CITY OF CHENEY, WASHINGTON
Statement of Cash Flow
Proprietary Funds
For the Fiscal Year Ended December 31, 2025

Solid
Light

Water

Waste

Sewer

Total

Internal

Enterprise

Service

Funds

Funds

Cash Flow from Operating Activity
Receipts from customers

$

10,823,696

$

2,133,694

$

1,885,972

$

3,536,382

$

18,379,744

Payments to suppliers

(8,247,120)

(992,043)

(1,032,494)

(1,815,370)

(12,087,027)

Payments to employees

(2,558,599)

(1,061,855)

(581,926)

(1,715,736)

(5,918,116)

Payments to/from other funds

-

Net cash provided (used) by operating

-

$

17,978

$

$

125,880

$

-

-

79,796

$

271,551

$

-

$

8,000

$

$

-

-

5,276

$

-

$

41,500
(177,375)
180,043

374,601

$

133,880

$

44,169

activities
Cash Flow Non Capital Financing Activities
Non-capital interfund debt
Misc not related to operating activities

-

Net cash provided(used) by noncapital

$

349,181

125,880

$

-

349,181

$

-

8,000

$

-

349,181
$

483,061

-

$

-

financing activities
Cash Flow from Capital and Related Financing
Proceeds from capital debt

$

-

$

-

$

-

$

10,755,199

$

10,755,199

$

-

Capital grants and contributions

$

162,319

$

93,020

$

-

$

1,854,401

$

2,109,740

$

-

Purchases of capital assets

(565,508)

(388,771)

(11,131,955)

(12,086,233)

Principal paid/rcvd capital debt and leases

(8,550)

-

-

(654,979)

(663,529)

-

Principal paid on interfund capital loans

-

-

-

-

-

-

Interest paid on capital debt

-

(15,159)

-

(1,637)

(16,796)

(32,703)

Disposition of capital assets

-

-

-

-

-

$

(411,739) $

(310,910) $

Net cash investing activity

$

244,500

$

76,130

$

36,080

$

14,104

$

Cash and Equivalents, January 1

$

6,161,564

$

1,571,811

$

881,024

$

1,547,122

Cash and Equivalents, December 31

$

6,138,183

$

1,766,009

$

1,196,657

$

2,387,530

$

40,761

$

(331,149) $

137,949

$

-

-

Net cash used in capital financing

1

1

$

821,028

$

98,380

(159,798)

35,390
$

(157,110)

370,814

$

8,057

$

10,161,521

$

270,971

$

11,488,378

$

166,086

(1,083,538) $

(1,235,976) $

8,312

-

$

(84,891)

1,007

$

3,061,842

Cash Flow from Investing Activities
Receipts of interest

244,500

76,130

36,080

14,104

370,814

8,057

Reconciliation of operating income to net
cash provided (used) by operating
activities
Operating Income (Loss)
Adjustments used to reconcile operating
income to net cash provided (used) by
operating activities

(84,891)

Depreciation/amoritization

$

488,174

$

641,068

$

186,900

$

1,745,699

$

39,633

Operating Misc

214,646

5ϰ,5ϭϲ

-

188

2ϲϵ,3ϰϵ

-

Pension Expense

(115,125)

(15,963)

(17,433)

(90,701)

(239,222)

184

Change in assets and liabilities
Receivables, net

11,051

(6,025)

(15,398)

(16,674)

(27,046)

Inventories, net

(523,213)

(201,163)

-

(1,321)

(725,697)

-

(4,177)

(61,489)

(20,467)

(548,377)

(634,510)

(4,968)

Accounts and other payables
Unearned revenue, net
Net cash provided(used) by operating

(9,249)

-

-

-

(9,249)

-

$

(525,587) $

(268,677) $

(35,865) $

(566,372) $

(1,396,502) $

(4,784)

$

17,978

ϳϵ,ϳϵϲ $

5,276

37ϰ,6Ϭϭ $

44,169

activities
Net Cash Provided by Operating Activities

$

271,551

$

$

The Notes to the Financial Statements are an Integral Part of this Statement

Page 51

CITY OF CHENEY, WASHINGTON
Statement of Fiduciary Net Position
Fiduciary Funds
December 31, 2025

Custodial Funds
2025
Assets
Cash and Cash Equivalents

$

22,921

$

22,926

$

22,824
22,824

Receivable
Pre-paid State Court Fees
Total Assets

5

Liabilities
Custodial Accounts
Total Liabilities
Net Position
Restricted for:
Outreach

103

Other Governments

-

Total Net Position

$

103

The Notes to the Financial Statements are an Integral Part of this Statement
Page 52

CITY OF CHENEY, WASHINGTON
Statement of Changes Fiduciary Net Position
Fiduciary Funds
For the Year Ended December 31, 2025

Total
Custodial
Funds
Additions
Collections for other governments

$

Total Additions

52,935
52,935

Deductions
Payments to other governments

$

Payments to employees
Total Deductions

49,183
9,088

$

58,271

Increase (Decrease) in Fiduciary Net Position

$

(5,336)

Restricted Net Position - Beginning

$

5,439

Restricted Net Position - Ending

$

103

The Notes to the Financial Statements are an Integral Part of this Statement
Page 53

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Cheney’s financial statements have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body for establishing governmental accounting and financial reporting principles. The
significant accounting policies are described below.

A. Reporting Entity
The City of Cheney was incorporated on November 28, 1883, and operates under the laws of the State of
Washington applicable to a non-charter code city with a mayor-council form of government. The City is governed
by an elected mayor and seven elected council members.
As required by GAAP, the City’s financial statements include the financial position and results of operations of
all funds controlled by or dependent on the City.
Control by the City was determined based on budget adoption and resource allocation criteria. Dependence on
the City was determined by the City’s obligation to redeem the organization’s debts, finance the organization’s
deficits, and the extent to which subsidies from the City constitute a significant portion of the organization’s
total non-grant resources.

B. Basis of Presentation — Government-Wide and Fund Financial Statements
The government-wide statements (the statement of net position and the statement of activities) report
information on all the primary government’s nonfiduciary activities, with governmental activities reported
separately from business-type activities. Separate fund financial statements are provided for governmental,
proprietary, and fiduciary funds; major governmental and enterprise funds are reported in separate columns.
The statement of activities demonstrates the degree to which the direct expenses of a given function are offset
by program revenues. Direct expenses are clearly identifiable with a specific function; indirect costs are
allocated to functions. Program revenues include (1) charges to customers who purchase, use, or directly benefit
from goods, services, or privileges provided by a given function and (2) grants and contributions restricted to
meeting the operational or capital requirements of a particular function. Taxes and other internally dedicated
resources are reported as general revenues. Generally, the effect of interfund activity has been eliminated from
the government-wide financial statements.
The City of Cheney reports the following major governmental funds:
General Fund. This is the City’s primary operating fund. It accounts for all financial resources of the general
government except those required to be accounted for in another fund.
Parks and Recreation Fund. The Parks and Recreation fund accounts for all financial resources for offering
recreation activities, maintenance, and operations of all park and recreation facilities, including parks and
the Wren Pierson Community Center. The Parks and Recreation fund financial statement includes the
operating and capital funds.
Pool Construction Fund. The Pool Construction fund accounts for bond proceeds, donations, and interest,
as well as all construction costs for the construction of the Aquatic Center. The Aquatic Center is funded
with two series of General Obligation Bonds issued in 2024 and 2025. The Aquatic Center opened for
business in July 2025. Construction is complete, and the fund remains a major governmental fund at
December 31, 2025.
The City of Cheney reports the following major enterprise funds:
Light Fund. This fund accounts for the operations of providing electrical utility services.
Water Fund. This fund accounts for the operations of providing water utility services.
Solid Waste Fund. This fund accounts for the operations of providing solid waste collection and recycling
services.

Page 54

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Sewer Fund. This fund accounts for the operations of providing wastewater collection and wastewater
treatment services.
Additionally, the City of Cheney reports the following fund types:
Internal Service Funds. These funds account for unemployment compensation, equipment rental, and
mechanical shop services provided to other departments on a cost-reimbursement basis.
Fiduciary Funds. These funds are custodial and account for funds received and then disbursed to other
agencies. This group includes Project Outreach for utility assistance donations, STA Bus Passes, Municipal
Court payments for the state, Employee contributions, and disbursements for the city-sponsored 125
Cafeteria Plan.

C. Measurement Focus, Basis of Accounting
1. Government-Wide and Governmental Funds
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as are the proprietary and fiduciary fund financial statements. Revenues are
recorded when earned and expenses when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized in the year for which they are levied; grants and similar items are recognized as
revenue once all eligibility requirements have been met.
Governmental fund statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized when both measurable and available. The City
considers revenues available if collected within 60 days of year-end, including property taxes. Expenditures are
generally recorded when a liability is incurred; however, debt service expenditures and expenditures for
compensated absences, claims, and judgments are recorded only when payment is due. Property taxes, sales
taxes, utility taxes, licenses, and interest are considered susceptible to accrual. General capital asset acquisitions
are reported as expenditures; proceeds of long-term debt and acquisitions under leases are reported as other
financing sources.
When both restricted and unrestricted resources are available for an incurred expenditure, the City’s policy is
to apply restricted resources first, then committed, assigned, and unassigned amounts.
2. Proprietary Funds
Proprietary fund statements are reported using the economic resources measurement focus and the full-accrual
basis of accounting. Revenues are recorded when earned and expenses when a liability is incurred, regardless
of the timing of related cash flows.
Proprietary funds distinguish operating from nonoperating revenues and expenses. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
fund’s principal ongoing operations. The principal operating revenues are charges for services; operating
expenses include purchased power, infrastructure maintenance, solid waste disposal, sewer collection and
treatment, administrative expenses, and depreciation. Revenues and expenses not meeting this definition are
reported as nonoperating.
3. Fiduciary Funds
Fiduciary fund statements are reported using the economic resources measurement focus and the accrual basis
of accounting.

D. Budgetary Information
Annual appropriated budgets are adopted for all funds except fiduciary funds — governmental funds on the
modified-accrual basis and proprietary funds on the accrual basis — at the fund level. Annual appropriations
lapse at year-end. Encumbrance accounting is employed in all funds. Encumbrances (purchase orders)
outstanding at year-end are not expenditures or liabilities because the commitments will be re-appropriated
and honored during the subsequent year.

Page 55

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Amending the Budget
The Finance Director may transfer budgeted amounts between object classes within a department, except for
salary changes. Budget transfers for wages and related benefits require authorization by the Mayor or City
Administrator. Revisions that alter total fund expenditures, the number of authorized positions, salary ranges,
or other conditions of employment must be approved by the City Council by ordinance following public
presentation and comment. The budget amounts in the financial statements are the final authorized amounts
as revised during the year; the original budget is the first complete appropriated budget and the final budget is
the original adjusted by all legally authorized changes.
Excess of Expenditures over Appropriations
For the year ended December 31, 2025, no fund had expenditures exceeding its final appropriation authority.

E. Assets, Liabilities, Fund Balance, Net Position
Cash and Cash Equivalents. The City of Cheney’s policy is to invest all temporary cash surpluses. On December
31, 2025, the treasurer held $22,865,903, of which $19,228,158 was invested in the Washington State Local
Government Investment Pool (short-term investments). This amount is classified on the balance sheet as cash
and cash equivalents and investments in various funds. The interest on these investments is prorated to the
different funds.
The amounts reported as cash and cash equivalents can also include compensating balances maintained with
employee leave banks instead of payments for services rendered. The average compensating balance
maintained during 2025 was $3,641,357.
For the statement of cash flows, the City of Cheney considers all highly liquid investments (including restricted
assets) with a maturity of three months or less when purchased as cash equivalents.
Investments. See Deposits and Investments, Note 3.
Receivables. Taxes receivable consist of property, utility, and sales taxes, including related interest and penalties
(see Property Tax, Note 4). Customer accounts receivable include amounts owed by private individuals or
organizations for goods and services, including amounts for which billings have not yet been prepared. The City
assesses the following utility taxes on its own utilities:
Utility

Rate

Electric

14.75% *

Water

11%

Solid Waste

6%

Sewer

11%

* The 14.75% electric utility tax consists of 6% electric, 4% residential street, and 4.75% parks and recreation.
Amounts Due to and from Other Funds and Interfund Loans. Lending/borrowing arrangements outstanding at
year-end are reported as interfund loans receivable/payable. Residual balances between governmental and
business-type activities are reported as internal balances in the government-wide statements (see Interfund
Balances and Transfers, Note 17).
Inventories. Governmental fund inventories consist of expendable supplies held for consumption, recorded as
expenditures when consumed, with a corresponding nonspendable fund balance. Proprietary fund inventories
are valued using the weighted-average method, which approximates market.
Restricted Net Position. Certain net position amounts are restricted for specific legally enforceable purposes or
to offset related liabilities (see Restricted Net Position, Note 16).
Capital Assets. Capital assets, including property, plant, equipment, and infrastructure (e.g., roads, sidewalks,
water, sewer and similar items), are reported in the applicable governmental or business-type columns of the
government-wide financial statements. The City defines capital assets as assets with an initial individual cost of

Page 56

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
more than $7,500 and an estimated useful life of five or more years. Such assets are recorded at historical cost
or estimated historical cost if purchased or constructed. Capitalization thresholds, depreciation methods, and
estimated useful lives of capital assets reported in the government-wide statements and proprietary funds are
as follows:
Capitalization
Threshold

Depreciation
Method

Estimated Useful Life

Building and Improvements

$7,500

Straight-Line

10 – 40 Years

Equipment

$7,500

Straight-Line

5 – 30 Years

Roads – Collectors and Arterials

$7,500

Straight-Line

20 Years

Electrical Distribution Systems

$7,500

Straight-Line

20 – 30 Years

Water Systems

$7,500

Straight-Line

20 – 100 Years

Sewer Collection and Treatment

$7,500

Straight-Line

20 – 75 Years

Donated capital assets are recorded at acquisition value at the date of donation. Costs for additions or
improvements are capitalized when they increase the effectiveness or efficiency of the asset; routine
maintenance and repairs that do not add value or materially extend useful life are not capitalized.
Compensated Absences. Compensated absences are absences for which employees will be paid, including
vacation, sick, part-time sick, and earned comp time. All such leave is accrued when incurred in the governmentwide and proprietary fund statements using the vesting method at 100% of hours accrued up to contracted
limits. Vacation may be accumulated up to thirty (30) days and is payable upon separation, retirement, or death.
Sick-leave accumulation limits and cash-out provisions vary by employee group (Department
Heads/Management and non-union up to 180 days, 100% of the first 30 days and 25% of days 31–180 at
retirement, separation, or death; AFSCME S up to 180 days; AFSCME C up to 120 days; IBEW and Teamsters up
to 120 days; LEOFF II IAFF up to 40 shifts; LEOFF II law enforcement up to 125 days). Part-time sick leave is not
cashed out upon separation.
Unpaid amounts at December 31, 2025 were as follows:
Unpaid Amounts at 12/31/2025
Governmental Activities

$1,201,207

Business-Type Activities

1,175,120

Total

$2,376,326

The table above shows the total sick, vacation, and comp time accruals as of December 31, 2025. The financial
statements separate these amounts into short-term and long-term liabilities. Wages and benefits payable were
$0 in governmental activities and $21,177 in business-type activities.
Pensions. For purposes of measuring the net pension liability/asset, deferred outflows and inflows of resources,
and pension expense, information about the fiduciary net position of the state-sponsored pension plans has
been determined on the same basis as reported by the Washington State Department of Retirement Systems.
Benefit payments are recognized when due and payable; investments are reported at fair value. Restricted net
position related to pensions is calculated as the net pension asset less the related deferred inflows of resources,
including only those plans reporting a net pension asset (LEOFF Plan 1, LEOFF Plan 2, and PERS Plans 2/3).
Deferred outflows of resources are excluded from the calculation. This method is applied consistently from year
to year.
Other Accrued Liabilities. These accounts consist of accrued wages and accrued employee benefits.
Long-Term Obligations. In the government-wide and proprietary fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business-type
activities, or proprietary fund statement of net position. Bond premiums and discounts are deferred and

Page 57

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
amortized over the life of the bonds using the straight-line method, and bonds payable are reported net of the
applicable unamortized premium or discount. Debt issuance costs are expensed in the period incurred. (See
Long-Term Debt, Note 9.)
In the governmental fund financial statements, the face amount of debt issued is reported as an other financing
source. Premiums received on debt issuance are reported as a separate other financing source, and discounts
on debt issuance are reported as an other financing use. Issuance costs, whether or not withheld from the debt
proceeds, are reported as debt service expenditures. Principal and interest payments are reported as debt
service expenditures when due.
Unearned Revenue. Includes amounts recognized as receivables but not yet as revenue in governmental funds
because revenue-recognition criteria have not been met (e.g., recreation fees paid in advance, held
performance bonds, and utility-account customer credits).
Unearned revenue at December 31, 2025 was $122,595, consisting of $66,105 in governmental activities
(primarily recreation fees received in advance and a performance deposit) and $56,489 in the Light Fund for
customer credit balances.
Committing Funds. The City Council is the sole authority for committing fund balance. On at least an annual
basis before year-end, the Finance Director brings a resolution listing resources to be committed; such resources
may be removed from commitment only by the Council. Adoption of the annual budget does not, by itself,
constitute a commitment of resources.
Minimum Fund Balance. The City maintains an adequate unrestricted General Fund balance for cash reserve
and cash-flow purposes. The Finance Director monitors fund balance and, if it changes by 5% or more annually,
reports the variance to the City Administrator and Mayor and prepares a plan to use or replenish it.
Fund Balance Classification
In accordance with GASB Statement No. 54, the City reports governmental fund balances in the following
classifications:
• Nonspendable Fund Balance. Amounts that cannot be spent because they are not in spendable form (e.g.,
inventories and prepaid items) or are legally or contractually required to be maintained intact.
• Restricted Fund Balance. Amounts constrained for a specific purpose by external parties (creditors, grantors,
contributors) or by law through constitutional provisions or enabling legislation.
• Committed Fund Balance. Amounts that can be used only for specific purposes established by formal action
of the City Council, the City’s highest level of decision-making authority, and that can only be changed by
the Council.
• Assigned Fund Balance. Amounts the City intends to use for a specific purpose, as set annually by the City
Council’s Finance Committee.
• Unassigned Fund Balance. The residual classification for the General Fund, and any deficit amounts in other
governmental funds.
When both restricted and unrestricted resources are available, the City spends restricted amounts first, followed by
committed, then assigned, then unassigned amounts.
Fund Balance Details
Governmental fund balances at December 31, 2025, by classification, were as follows:
Fund Balances

General

Parks and
Recreation

Pool
Construction

Other
Governmental
Funds

Total

180,151

-

-

23,178

203,330

Nonspendable:
Inventory/Prepaid
Restricted for:

Page 58

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Public Safety

-

-

-

727,359

727,359

Road Construction/Streets

-

-

-

53,130

53,130

Culture and Recreation

-

112,077

-

-

112,077

Tourism

-

-

-

254,163

254,163

Opioid Settlement

117,497

-

-

-

117,497

Debt Service

-

-

-

13,117

13,117

Capital

-

-

-

1,327,278

1,327,278

Public Safety

-

-

-

2,525

2,525

Road Construction/Streets

-

-

-

829,770

829,770

Culture and Recreation

-

-

-

-

-

City Beautification

-

-

-

175,903

175,903

Public Safety

-

-

-

729,958

729,958

Road Construction/Streets

-

-

-

566,007

566,007

Culture and Recreation

-

577,645

-

-

577,645

Information Technology

155,039

-

-

-

155,039

Tourism

-

-

-

53,371

53,371

City Beautification

-

-

-

26,957

26,957

Debt Service

-

-

-

26,913

26,913

Capital

-

-

-

286,115

286,115

Committed to:

Assigned to:

Unassigned:

5,640,686

-

-

-

5,640,686

Total Fund Balance

$6,093,374

$689,721

$-

$5,095,743

$11,878,837

NOTE 2 – ACCOUNTING AND REPORTING CHANGES
During 2025 the City identified several general-ledger corrections, which were processed as year-end (Period 13)
adjusting entries. The following are classification and conversion corrections within the government-wide conversion
group (Fund 950). They align the ledger with amounts already reported in the financial statements and do not restate
beginning net position or fund balance:
• GO bond premium (AJEs 1325116 and 1325117) — the unamortized premium on the 2024 and 2025 unlimited
tax general obligation bonds, $693,000 at December 31, 2025, was recorded in Fund 950. The premium had
previously been reported within the carrying value of bonds payable in the financial statements; these
entries conform the ledger to the statements.
• GO Bond Series #2 reclassification (PAJE-2025-01) — the $4,645,000 2025 UTGO bond was moved from
Financed – Local (235.96) to GO Bonds – Long-Term (251.22). Total governmental long-term debt did not
change.
• OPEB conversion correction (PAJE-2025-05) — a $302,078 conversion-clearing debit was reversed, restoring
the ledger OPEB liability to the actuarial figure of $2,832,007. The Statement of Activities draws on the
GASB 75 actuarial workpaper, so reported amounts were unaffected.
• Governmental lease/SBITA conversion (PAJE-2025-02/03/04) — the Fund 950 lease and SBITA liability was
reset to the supporting schedule, recording 2025 activity (including the Flock SBITA) and retiring a stranded
prior-period court-copier balance.

Page 59

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Error correction. During 2025 the City identified three errors affecting balances reported at December 31, 2024.
Each was corrected as a restatement of beginning fund balance and beginning net position under GASB Statement
No. 100:
• Fund 001 General — accounts payable invoices of $12,866 applicable to 2024 were not recorded until 2025,
overstating beginning fund balance and beginning net position.
• Fund 104 Fire (nonmajor governmental) — a wildfire brush-truck reimbursement receivable of $12,912
recognized at December 31, 2024 was determined not to be collectible, overstating beginning fund balance
and beginning net position.
• Fund 401 Light — contributed capital of $6,716 was not recorded at December 31, 2024, understating
beginning net position.
The effect of the error corrections on beginning balances is as follows:
Beginning Balance, as
Previously Reported

Error Correction

Beginning Balance, as
Restated

Governmental Activities

$29,464,290

(25,778)

$29,438,512

Business-Type Activities

48,953,485

6,716

48,960,201

Total Primary Government

$78,417,775

(19,062)

$78,398,713

Major Funds

$8,794,633

(12,866)

$8,781,767

Nonmajor Funds

4,831,313

(12,912)

4,818,401

$13,625,946

(25,778)

$13,600,168

Net Position – Government-Wide Statements

Fund Balances – Governmental Funds

Total Governmental Funds

NOTE 3 – DEPOSITS AND INVESTMENTS
A. Deposits
Custodial Credit Risk. Custodial credit risk is the risk that, in the event of a depository financial institution’s failure,
the City would be unable to recover its deposits or collateral. The City’s deposits and certificates of deposit are
covered by federal depository insurance (FDIC) or by collateral held in a multiple-financial-institution pool
administered by the Washington Public Deposit Protection Commission (PDPC). The City has no deposit policy for
custodial credit risk.
On December 31, 2025, the carrying amount of the City’s cash demand deposits was $3,019,851. The demand
deposit is calculated from reconciled bank balances, less claims and payroll clearing accounts, and does not include
invested cash. Claims, payroll clearing, and fiduciary accounts are reported at $617,894. The balance of petty cash,
imprest, and change funds is $10,850, and the IRS Section 125 Cafeteria program balance was $9,088. The City’s
Municipal Court recorded a carrying amount of $13,736 in the court account. As of December 31, 2025, no balances
were exposed to custodial credit risk.
B. Investments
Interest Rate Risk. The City may be exposed to interest rate risk when rate variances affect the fair value of
investments. The City has no formal policy addressing interest rate risk.
Credit Risk. Credit risk is the risk that an issuer or counterparty will not fulfill its obligations. The City has no formal
policy addressing credit risk.
Concentration of Credit Risk. The risk of loss attributable to the magnitude of an investment in a single issuer. The
City has no formal concentration-of-credit-risk policy.
Investments in the Local Government Investment Pool (LGIP). The City is a voluntary participant in the LGIP, an
external investment pool operated by the Washington State Treasurer. The pool is not rated and is not registered

Page 60

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
with the SEC; oversight is provided by the State Finance Committee under Chapter 43.250 RCW. Investments in the
LGIP are reported at amortized cost, which equals the value per share, and the pool imposes no restrictions on
participant withdrawals. A separately issued financial report is available from the Office of the State Treasurer.
The City held the following investments, reported at amortized cost:
Investment

Carrying / Fair Value

Washington State Local Government Investment Pool

$19,228,158

Total

$19,228,158

NOTE 4 – PROPERTY TAX
The Spokane County Treasurer acts as an agent to collect property tax levied in Spokane County for all taxing
authorities, including the City.
Property Tax Calendar
Date

Event

January 1

Tax is levied and becomes an enforceable lien against properties.

February 14

Tax bills are mailed.

April 30

The first of two equal installment payments is due.

May 31

The property’s assessed value established for next year’s levy is 100% of the market value.

October 31

The second installment is due.

Property tax is recorded as a receivable and revenue when levied. Property tax collected before the fiscal year to
which it applies is recorded as a deferred inflow of resources and recognized as revenue of the period to which it
applies. No allowance for uncollectible tax is established because delinquent taxes are considered fully collectible.
Prior year levies were recorded using the same principle, and delinquent taxes are evaluated annually.
The City of Cheney may levy up to $3.375 per $1,000 of assessed valuation for general governmental services. The
rate is limited by the Washington State Constitution and by Washington State law, RCW 84.52.043. Levy rates are
certified annually by the Spokane County Assessor.
The City’s 2025 property tax levies were as follows:
Levy

2025 Levy Amount

General levy (regular levy and voter-approved levy lift)

$3,244,128

Emergency Medical Service levy

596,142

Excess (voted) levy — general obligation bond debt service

565,712

The excess levy assessed to pay debt service on the general obligation bonds issued for the Aquatic Center is a voterapproved levy and is not subject to the regular property tax limitations.
NOTE 5 – CAPITAL ASSETS
Capital assets activity for the year ended December 31, 2025 is summarized below. Net governmental capital assets
at December 31, 2025 were $31,017,341 — gross cost of $68,282,884 less accumulated depreciation of $37,265,543.
Current-year governmental capital additions totaled $9,399,378, including $46,498 of right-to-use lease and
subscription assets, and were driven primarily by the Arterial Street (Elm Street / Betz–N. 6th) projects and the
Aquatic Center.
Capital asset activity for governmental activities for the year ended December 31, 2025 was as follows:

Page 61

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Governmental Activities

Beginning 1/1/25

Increases

Decr./Adj.

Ending 12/31/25

952,550
7,720

–

–

952,550

–

(7,720)

–

960,270

–

(7,720)

952,550

4,849,381

–

–

4,849,381

Capital assets, not being depreciated:
Land
Construction in progress
Total not being depreciated
Capital assets, being depreciated:
Buildings
Improvements other than buildings

130,307

–

–

130,307

Machinery & equipment

6,763,687

389,493

–

7,153,180

Infrastructure

46,084,124

8,963,387

–

55,047,511

Leases / SBITA

103,457

46,498

–

149,955

57,930,956

9,399,378

–

67,330,334

(3,925,056)

(144,922)

–

(4,069,978)

(27,588)

–

–

(27,588)

Machinery & equipment

(4,733,281)

(347,759)

20,579

(5,060,461)

Infrastructure

(26,655,927)

(1,420,759)

38,797

(28,037,889)

Leases / SBITA

(24,225)

(46,191)

789

(69,627)

Total accumulated depreciation

(35,366,077)

(1,959,631)

60,165

(37,265,543)

Total being depreciated, net

22,564,879

7,439,747

60,165

30,064,791

Governmental activities capital assets, net

23,525,149

7,439,747

52,445

31,017,341

Total being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings

Capital asset activity for business-type activities for the year ended December 31, 2025 was as follows:
Business-Type Activities

Beginning 1/1/25

Increases

Decr./Adj.

Ending 12/31/25

1,521,891
28,084

7,304

–

1,529,195

–

(14,637)

13,447

1,549,975

7,304

(14,637)

1,542,642

Buildings

30,801,401

5,859,819

–

36,661,220

Improvements other than buildings

2,426,594

16,818

–

2,443,412

Machinery & equipment

13,895,589

621,099

–

14,516,688

Infrastructure

40,986,573

5,513,690

–

46,500,263

Capital assets, not being depreciated:
Land
Construction in progress
Total not being depreciated
Capital assets, being depreciated:

Leases / SBITA

18,608

99,236

–

117,844

88,128,765

12,110,662

–

100,239,427

Buildings

(16,682,061)

(1,009,672)

–

(17,691,733)

Improvements and infrastructure

(26,453,192)

(1,305,344)

–

(27,758,536)

Machinery & equipment

(6,935,827)

(708,779)

27,388

(7,617,218)

(2,739)

(25,985)

–

(28,724)

–

(12,061)

–

(12,061)

Total accumulated depreciation

(50,073,819)

(3,061,841)

27,388

(53,108,272)

Total being depreciated, net

38,054,946

9,048,821

27,388

47,131,155

Business-type activities capital assets, net

39,604,921

9,056,125

12,751

48,673,797

Total being depreciated
Less accumulated depreciation

Leases/ SBITA
Depreciation offset accounts

Beginning business-type balances reflect the individual asset classes as reported in the prior year. The prior-year note totals for capital assets
being depreciated/amortized and the related accumulated depreciation each exceeded the sum of the individual asset classes by $17,852;
beginning net capital assets are unaffected and agree to the prior-year audited statements.

Page 62

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025

Depreciation / amortization expense by function
Depreciation / Amortization Expense by Function

2025

Governmental Activities:
General Government

$130,103

Security of Persons/Property

311,355

Economic Environment
Transportation
Culture and Recreation
Total – Governmental Activities

8,529
1,029,702
479,942
$1,959,631

Business-Type Activities:
Light

$488,174

Water

641,068

Solid Waste

186,900

Sewer

1,745,699

Total – Business-Type Activities

$3,061,841

Note: the governmental total of $1,959,631 includes the internal-service (equipment rental / mechanical shop)
equipment depreciation, consistent with ISF assets being reported within governmental activities on the statement
of net position.
All reported capital assets of the City are depreciated except for land and assets reported as construction in progress.
Improvements are generally depreciated over the remaining useful life of the related capital assets. The useful lives
of infrastructure were estimated based on the City’s historical records of necessary improvements and
replacements.
NOTE 6 – PENSION PLANS
The following table presents the aggregate pension amounts for all plans for the year ended December 31, 2025.
Net pension assets are presented as positive amounts; net pension liabilities and deferred inflows of resources are
presented in parentheses.
Aggregate Pension Amounts – All Plans

2025

Pension Liabilities

$(334,858)

Pension Assets

3,287,799

Deferred Outflows of Resources

4,518,564

Deferred Inflows of Resources

(1,728,486)

Pension Expense / Expenditures

(155,175)

The City participates in the following statewide cost-sharing multiple-employer defined benefit pension plans
administered by the Washington State Department of Retirement Systems (DRS): PERS 1, PERS 2/3, LEOFF 1, and
LEOFF 2. The City reports its proportionate share of the net pension asset/liability, deferred outflows and inflows of
resources, and pension expense.
State-Sponsored Pension Plans
Substantially all of the City’s full-time and qualifying part-time employees participate in one of the statewide
retirement systems administered by the Washington State Department of Retirement Systems (DRS) under costsharing, multiple-employer defined benefit (and, for PERS 3, a defined contribution component) plans. The

Page 63

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Legislature establishes and amends the laws governing these systems. DRS issues a publicly available annual
comprehensive financial report that may be downloaded at www.drs.wa.gov.
Public Employees’ Retirement System (PERS) Plans 1, 2, and 3
PERS members include employees of local governments. PERS Plans 1 and 2 are defined benefit programs; PERS Plan
3 is a defined benefit plan with a defined contribution component. PERS Plan 1 provides retirement, disability, and
death benefits determined as 2% of the member’s average final compensation (AFC) per year of service; it was closed
to new entrants on September 30, 1977. PERS Plan 2/3 provides retirement, disability, and death benefits
determined as 2% of AFC per year of service for Plan 2 and 1% for Plan 3, with Plan 2 members eligible for a full
benefit at age 65 with five years of service and Plan 3 members after ten years of service (or five years including
twelve months after age 44). PERS Plan 3 defined contribution benefits depend on member contributions and
investment earnings; members are immediately vested in the defined contribution portion.
PERS Contributions. The PERS Plan 1 member contribution rate is set by statute at 6%. Employer rates and PERS 2/3
employee rates are developed by the Office of the State Actuary, adopted by the Pension Funding Council, and
subject to change by the Legislature; the PERS 2/3 employer rate includes a component to address the PERS 1
Unfunded Actuarial Accrued Liability. PERS Plan 3 defined contribution rates range from a statutory minimum of 5%
to a maximum of 15%; employers do not contribute to defined contribution benefits.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF, established in 1970 under Chapter 41.26 RCW, is a cost-sharing, multiple-employer system comprising two
defined benefit plans. Membership includes full-time, fully compensated local law enforcement officers, firefighters,
and (since July 24, 2005) emergency medical technicians. LEOFF Plan 1 provides retirement, disability, and death
benefits based on years of service as a percentage of final average salary and was closed to new entrants on
September 30, 1977; effective July 1, 2000, employers and employees contribute 0% as long as the plan remains
fully funded, with employers paying only the 0.20% administrative expense. LEOFF Plan 2 provides benefits
determined as 2% of final average salary per year of service, with employer and employee rates developed by the
Office of the State Actuary and adopted by the LEOFF Plan 2 Retirement Board.
The State, as a non-employer contributing entity, contributes to LEOFF Plan 2 under a special funding situation
pursuant to RCW 41.26.725. The City recognizes its proportionate share of the State’s on-behalf contributions as
both revenue and expense.
Actuarial Assumptions, Discount Rate, and Long-Term Expected Rate of Return
The total pension liability for each DRS plan was determined by an actuarial valuation and rolled forward to the
measurement date using the entry-age cost method. Key economic assumptions include total economic inflation of
2.75%, salary inflation of 3.25% (plus service-based increases), and an investment rate of return of 7.00%. The
discount rate used to measure the total pension liability for all DRS plans was 7.0%, supported by an asset-sufficiency
test indicating each plan’s fiduciary net position was projected to be sufficient to make all projected future benefit
payments. The long-term expected rate of return of 7.0% was determined using a building-block method based on
capital market assumptions provided by the Washington State Investment Board.
Volunteer Fire Fighters’ and Reserve Officers’ Relief and Pension Fund (VFFRPF)
VFFRPF is a cost-sharing, multiple-employer defined benefit plan administered by the State Board for Volunteer Fire
Fighters and Reserve Officers under Chapter 41.24 RCW. Benefits are based on years of service rather than salary;
normal retirement is available at age 65 with at least 25 years of service, and members are vested after 10 years.
The plan does not issue a stand-alone report but is included in the State of Washington’s annual comprehensive
financial report. The State contributes 40% of the fire insurance premium tax to the plan. Deferred outflows and
inflows of resources are not material to the VFFRPF plan.
The City’s proportion of the VFFRPF net pension asset is based on actual contributions to the plan relative to total
contributions of all participating municipalities. Based on the State’s allocation of contributions for the year ended
June 30, 2025, the City’s proportionate share is 0.00%. Accordingly, no net pension asset, deferred outflows of
resources, deferred inflows of resources, or pension expense is reported for this plan.

Page 64

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
The State, as a non-employer contributing entity, provides pension support for LEOFF Plans 1 and 2. The City’s
proportionate share of the net pension asset and the related State support are as follows; the State on-behalf (LEOFF
2) contributions are recognized as both revenue and expense.
LEOFF Plan

Employer Share

State Share

Total

LEOFF 1

$510,071

3,450,107

$3,960,178

LEOFF 2

1,382,167

887,112

2,269,278

Of the governmental-activities net pension asset, $1,208,819 is reported as net position restricted for the net pension
asset (see Note 16); the balance is reflected in unrestricted net position.
At June 30, 2025 (the measurement date), the City reported its proportionate share of the collective net pension
asset (liability) of each plan as follows. The aggregate net pension asset is $3,287,799 and the aggregate net pension
liability is $334,858.
The City’s proportionate share of each plan changed from the June 30, 2024 measurement date to June 30, 2025 as
follows:
Proportion 6/30/2024

Proportion 6/30/2025

Change in Proportion

Net Pension Asset
(Liability)

PERS 1

0.024704%

0.028402%

0.003698%

$(334,858)

PERS 2/3

0.032886%

0.036453%

0.003567%

1,391,111

LEOFF 1

0.015635%

0.016098%

0.000463%

510,071

LEOFF 2

0.049770%

0.071337%

0.021567%

1,382,167

Plan

For the measurement period, the City recognized pension expense with the governmental proportion allocated
approximately 54% to PERS and 46% to LEOFF. State on-behalf (LEOFF 2) contributions are recognized as both
revenue and expense.
For the year ended December 31, 2025, the City recognized pension expense of $(155,175), as follows:
Plan

Pension Expense

PERS 1

$38,819

PERS 2/3

(59,317)

LEOFF 1

(72,517)

LEOFF 2

(62,159)

Total

$(155,175)

At December 31, 2025, the City reported deferred outflows and deferred inflows of resources related to pensions
from the following sources:
PERS 1
Net difference – projected vs. actual investment earnings
Contributions subsequent to the measurement date
Total
PERS 2/3
Differences between expected and actual experience
Net difference – projected vs. actual investment earnings

Deferred Outflows

Deferred Inflows

–

(23,020)

2,390

–

2,390

(23,020)

Deferred Outflows

Deferred Inflows

1,017,097

–

–

(313,267)

Changes of assumptions

537,612

(38,414)

Changes in proportion

318,595

(227,441)

Contributions subsequent to the measurement date
Total

176,991

–

2,050,295

(579,123)

Page 65

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
LEOFF 1

Deferred Outflows

Deferred Inflows

Net difference – projected vs. actual investment earnings

–

(9,718)

Total

–

(9,718)

Deferred Outflows

Deferred Inflows

LEOFF 2
Differences between expected and actual experience

1,203,221

(6,257)

–

(196,820)

Changes of assumptions

489,949

(84,037)

Changes in proportion

662,687

(829,511)

Contributions subsequent to the measurement date

110,022

–

2,465,879

(1,116,625)

Net difference – projected vs. actual investment earnings

Total

Amounts reported as deferred outflows and deferred inflows of resources related to pensions (excluding
contributions subsequent to the measurement date) will be recognized in pension expense as follows:
Year ended Dec 31

PERS 1

PERS 2/3

LEOFF 1

LEOFF 2

2026

21,966

2027

(16,002)

520,386

9,696

297,468

207,844

(6,824)

2028

97,248

(16,618)

211,842

(7,213)

108,289

2029

(12,367)

102,014

(5,377)

137,670

2030

–

196,911

–

212,932

Thereafter

–

55,185

–

385,624

(23,020)

1,294,182

(9,718)

1,239,232

Total

Contribution rates. Contribution rates in effect for 2025 (expressed as a percentage of covered payroll), including
the PERS Plan 1 UAAL component and administrative fee in the employer rate, were as follows. The State contributed
3.41% for LEOFF Plan 2 as a non-employer contributing entity.
Plan (2025)

Employer Rate

Employee Rate

PERS Plan 1

9.11%

6.00%

PERS Plan 2

9.11%

6.36%

PERS Plan 3

9.11%

5.00–15.00%

LEOFF Plan 1

0.20%

0.00%

LEOFF Plan 2

5.32%

8.53%

Sensitivity of the net pension liability (asset) to changes in the discount rate. The following presents the City’s
proportionate share of the net pension liability (asset) calculated using the discount rate of 7.00%, as well as what it
would be using a rate 1 percentage point lower (6.00%) or higher (8.00%). Amounts in this table follow the net
pension liability convention: liabilities are positive and net pension assets are shown in parentheses.
Plan

1% Decrease (6.00%)

Current Discount Rate
(7.00%)

1% Increase (8.00%)

PERS 1

565,041

334,858

132,983

PERS 2/3

2,257,431

(1,391,111)

(4,387,582)

LEOFF 1

(456,378)

(510,071)

(556,894)

LEOFF 2

1,039,511

(1,382,167)

(3,363,026)

Net Pension Liability (Asset)

3,405,604

(2,948,490)

(8,174,518)

Long-term expected rate of return. The 7.00% long-term expected rate of return was determined using a buildingblock method. Best estimates of arithmetic real rates of return for each major asset class, using a 2.50% inflation
assumption, are summarized below:

Page 66

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Asset Class

Target Allocation

Long-Term Expected Real
Rate

19.0%

2.1%

Tangible Assets

8.0%

4.5%

Real Estate

18.0%

4.8%

Global Equity

30.0%

5.6%

Private Equity

25.0%

8.6%

Fixed Income

NOTE 7 – DEFINED BENEFIT OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS
The City administers a single-employer defined benefit OPEB plan for LEOFF 1 retirees (medical and long-term-care
benefits), financed on a pay-as-you-go basis with no plan assets accumulated in a qualifying trust. The total OPEB
liability was measured as of June 30, 2025, using an actuarial valuation as of that date (entry age normal; amounts
recognized immediately).
Plan Description. As required by Chapter 41.26 RCW, the City provides lifetime medical care for members of the
LEOFF retirement system hired before October 1, 1977, under a single-employer defined benefit healthcare plan
administered by the City. Covered costs include the member’s necessary hospital, medical, and nursing care not
payable by workers’ compensation, Social Security, other insurance, another pension plan, or any similar source;
direct payment for other retiree medical expenses is authorized by the LEOFF Disability Board. The City’s Annual
Report includes financial reporting for the LEOFF retiree healthcare plan.
Funding Policy. The City funds LEOFF retiree healthcare costs entirely, as required by RCW, on a pay-as-you-go basis.
No assets are accumulated in a qualifying trust to fund the OPEB liability.
Calculation of the OPEB Liability. The City used the alternative measurement method permitted under GASB
Statement No. 75. The Office of the State Actuary relied on the 2024 LEOFF 1 OPEB Actuarial Valuation Report in
creating the tool available to local governments with fewer than 100 qualifying employees, assuming active
members retire immediately after the measurement date, each cohort is 100% male, four age-based cohorts, and
medical and long-term-care costs projected using the healthcare trend from the 2024 LEOFF 1 OPEB AVR. The
actuarial valuation and measurement dates are June 30, 2025.
The City has six inactive employees covered under the plan. One of the City’s employee medical insurance programs
provides most medical coverage for eligible retirees.

Schedule of changes in total OPEB liability
Component

Amount

Service Cost

$0

Interest Cost

119,704

Changes in Experience Data and Assumptions

(243,713)

Changes in Benefit Terms

0

Estimated Benefit Payments

(178,069)

Net Change in Total OPEB Liability

(302,078)

Total OPEB Liability — Beginning

3,134,085

Total OPEB Liability — Ending

$2,832,007

OPEB expense for the fiscal year was $(124,009). The discount rate was 3.93% at the beginning of the measurement
year and 5.20% at the end of the measurement year, based on the Bond Buyer 20-Bond GO Index.
The following assumptions and methodology were used in the OPEB calculation, as provided by the Washington
State Office of the State Actuary under the alternative measurement method:
Methodology and Assumptions
Actuarial Valuation Date

June 30, 2025

Page 67

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Actuarial Measurement Date

June 30, 2025

Actuarial Cost Method

Entry Age

Amortization Method

Recognized Immediately

Asset Valuation Method

N/A (No Assets)

Discount Rate – Beginning of Measurement Year

3.93%

Discount Rate – End of Measurement Year

5.20%

Healthcare Trend – Medical Costs

Approximately 4.5%, varies by year

Healthcare Trend – Long-Term Care

4.75%

Healthcare Trend – Medicare Part B Premiums

Approximately 5.0%, varies by year

Mortality Rates

Assumes 100% male population

Sensitivity of the total OPEB liability
1% Decrease

Current

1% Increase

Discount rate

$3,076,897

$2,832,007

$2,617,002

Healthcare cost trend

$2,624,933

$2,832,007

$3,063,068

The following table presents the aggregate OPEB amounts for the plan subject to GASB 75 for 2025:
Aggregate OPEB Amounts
Total OPEB Liability
Deferred Outflows of Resources
OPEB Expense

2025
$2,832,007
45,775
(124,009)

On December 31, 2025, the City reported deferred outflows of resources of $45,775 related to OPEB, resulting from
payments subsequent to the measurement date; this amount will be recognized as a reduction of the total OPEB
liability in the year ending December 31, 2026. The City reported no deferred inflows of resources related to OPEB.
Because there are no active employees in the plan, there is no covered payroll to report.
NOTE 8 – RISK MANAGEMENT
The City of Cheney is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter 48.62 RCW
(self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally formed WCIA
on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing
insurance, jointly self-insuring, and/or jointly contracting for risk management services. As of December 31, 2025,
WCIA had a total of 168 members.
New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A oneyear withdrawal notice is required before membership can be terminated. Termination does not relieve a former
member from its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general, automobile,
police, errors or omissions, stop gap, employment practices, prior wrongful acts, and employee benefits liability.
Limits are $4 million per occurrence in the self-insured layer. Above the self-insured layer, reinsurance is provided
by Governmental Entities Mutual ($5 million per occurrence), Safety National ($5 million per occurrence and per
member aggregate, $25 million pool aggregate), and Allied World Assurance Company ($6 million per occurrence
and per member aggregate, $30 million pool aggregate). Total limits are $20 million per occurrence subject to
aggregates and sublimits. The Board of Directors determines the limits and terms of coverage annually.
All members are provided a separate cyber risk policy and premises pollution liability coverage group purchased by
WCIA. The cyber risk policy provides coverage and separate limits for security and privacy, event management, and
cyber extortion, with limits up to $1 million and subject to member deductibles, sublimits, and a $5 million pool
aggregate. Premises pollution liability provides members with a $2 million incident limit and $10 million pool
aggregate subject to a $100,000 per incident member deductible.

Page 68

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Insurance for property, automobile physical damage, fidelity, inland marine, and equipment breakdown coverage is
purchased on a group basis. Various deductibles apply by type of coverage. WCIA self-insures the first $1,000,000 of
covered perils other than flood and earthquake and purchases a Lloyd’s of London policy above that layer, with a
limit of $400,000,000 per occurrence. Sublimits of $225,000,000 apply to earthquake and $150,000,000 to flood,
each per occurrence and annual pool aggregate, except that a $75,000,000 flood sublimit applies within Flood Zones
A and V. Earthquake and flood limits and deductibles are shared among all members involved in the same
occurrence. The City’s deductible is $5,000 for all other perils. The earthquake deductible is 2% of values involved,
subject to a $250,000 minimum per occurrence, and the flood deductible is $250,000 per occurrence, except within
Flood Zones A and V, where it is 3% of total building and facility values involved subject to a $500,000 minimum.
Automobile physical damage coverage is self-funded from the members’ deductible to $250,000 and insured above
that to $100 million per occurrence subject to aggregates and sublimits.
In-house services include risk management consultation, loss control field services, and claims and litigation
administration. WCIA contracts for certain claims investigations, consultants for personnel and land use issues,
insurance brokerage, actuarial, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined
by an outside, independent actuary. The assessment covers loss, loss adjustment, reinsurance, and other
administrative expenses. As outlined in the interlocal agreement, WCIA retains the right to additionally assess the
membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s assets
in financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The
Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the
organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the
day-to-day operations of WCIA.
Settlements did not exceed insurance coverage in 2025 or in the prior three fiscal years.
Medical Insurance
The City of Cheney is a member of the Association of Washington Cities Employee Benefit Trust Health Care Program
(AWC Trust HCP). Chapter 48.62 RCW provides that two or more local government entities may, by interlocal
agreement under Chapter 39.34 RCW, form together or join a pool or organization for the joint purchasing of
insurance and joint self-insurance to the same extent that they may individually purchase insurance or self-insure.
An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW, the
Interlocal Cooperation Act. The AWC Trust HCP was formed on January 1, 2014, when participating cities, towns,
and non-city entities of the AWC Employee Benefit Trust in the State of Washington signed an Interlocal
Governmental Agreement to jointly self-insure certain health benefit plans and programs for participating
employees, their covered dependents, and other beneficiaries through a designated account within the Trust. As of
December 31, 2025, 271 cities/towns/non-city entities participate and have enrollment in the AWC Trust HCP.
The AWC Trust HCP allows members to establish a joint insurance program and provides health and welfare services
to all participating members. In April 2020, the Board of Trustees adopted a large employer policy requiring newly
enrolling groups with 600 or more employees to submit medical claims experience data to receive a quote for
medical coverage. Outside of this, the AWC Trust HCP pools claims without regard to individual member experience.
The pool is actuarially rated yearly, assuming projected claims run out for all current members.
The AWC Trust HCP includes medical, dental, and vision insurance through the following carriers: Kaiser Foundation
Health Plan of Washington, Kaiser Foundation Health Plan of Washington Options, Inc., Regence BlueShield, Asuris
Northwest Health, Delta Dental of Washington, Willamette Dental Group, and Vision Service Plan. Eligible members
are cities and towns within the State of Washington. Non-city entities (public agency, public corporation,
intergovernmental agency, or political subdivision within Washington) can apply for coverage into the AWC Trust
HCP by submitting an application to the Board of Trustees for review as required in the Trust Agreement.

Page 69

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Participating employers pay monthly premiums to the AWC Trust HCP, which pays all covered claims. In 2025, the
AWC Trust HCP purchased medical stop-loss insurance for Regence/Asuris and Kaiser plans at an Individual Stop Loss
(ISL) of $2 million through the United States Fire Insurance Company. The aggregate policy covers 200% of expected
medical claims.
Participating employers contract to remain in the AWC Trust HCP for at least three years. Participating employers
with over 250 employees must provide written notice of termination of all coverage a minimum of 12 months before
the termination date, and participating employers with under 250 employees must provide written notice of
termination of all coverage a minimum of 6 months before the termination date. When all coverage is terminated,
termination will only occur on December 31. Participating employers terminating a group or line of coverage must
notify the AWC Trust HCP 60 days before termination. A participating employer’s termination will not obligate that
member to past debts or further contributions to the AWC Trust HCP. Similarly, the terminating member forfeits all
rights and interests to the AWC Trust HCP account.
The operations of the Health Care Program are managed by the Board of Trustees or its delegates. The Board of
Trustees comprises four regionally elected officials from Trust member cities or towns, the Employee Benefits
Advisory Committee Chair and Vice Chair, and two appointed individuals from the AWC Board of Directors from
Trust member cities or towns. The Trustees or their appointed delegates review and analyze Health Care Programrelated matters and make operational decisions regarding premium contributions, reserves, plan options, and
benefits.
While most City employees receive health benefits through the AWC Trust HCP, members of the IAFF receive medical
coverage through the IAFF Health and Wellness Trust, and members of the Teamsters receive dental and vision
coverage through their labor organization.
NOTE 9 – LONG-TERM DEBT
General Obligation Bonds. The City’s general obligation bonds are unlimited tax general obligation (UTGO) bonds
issued under a $13,000,000 authorization approved by voters on August 1, 2023 to finance a new outdoor aquatic
center. The bonds are payable from annual excess (voted) property tax levies and are secured by the City’s full faith,
credit, and resources. Two series have been issued:

Ɣ

Series 2024 — $7,565,000, dated August 29, 2024; interest 4.00%–5.00%; final maturity December 1,
2048. Outstanding at December 31, 2025: $7,050,000.

Ɣ

Series 2025 — $4,695,000, dated March 19, 2025; interest 5.00%–5.25% (2045 and 2049 term bonds at
5.250%); final maturity December 1, 2049. Outstanding at December 31, 2025: $4,645,000.

Total general obligation bonds outstanding at December 31, 2025 were $11,695,000 at par. The bonds are reported
net of unamortized original issue premium of $693,000, for a carrying value of $12,388,000. The premium is
amortized over the life of the bonds using the straight-line method; $29,600 of premium amortization is reported as
the portion due within one year. No bond principal is due within one year; the next principal payment is due
December 1, 2027 (Series 2025), and Series 2024 principal resumes December 1, 2031. The debt service schedule
below presents principal at par.
Other governmental long-term debt. Financed purchase — Fire Truck (LOCAL), issued October 24, 2018 at 5.00%
with final maturity December 1, 2031. The carrying value at December 31, 2025 was $319,620, consisting of $285,000
of remaining principal and $34,620 of unamortized premium. Of this amount, $45,770 is due within one year
($40,000 of principal and $5,770 of premium amortization) and $273,850 is long-term, consistent with the Statement
of Net Position.
Business-type long-term debt. State revolving-fund loans in the Sewer fund totaled $12,970,331.70 at December
31, 2025 (current $631,976; long-term $12,338,356), consistent with the Statement of Net Position, comprising the
Department of Ecology Loan #2 (L0800007) of $2,143,373.32 (0%, amortizing through 2029), DOE #4 (WQC-201800191) of $96,132.34 (0.7%, payable in full in 2026), and the Purple Pipe loan of $10,730,826. The Purple Pipe loan
is a Clean Water State Revolving Fund loan (CWSRF-SFY22) bearing an effective rate of 1.2%, comprising 0.9% interest
and a 0.3% administrative charge, with a twenty-year repayment term. Project completion was extended to June 30,
2026 and the first repayment is due in 2028; accordingly no portion of the loan is due within one year. The loan is a

Page 70

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
State award and is not subject to the Single Audit Act. PWTF #6 was paid in full during 2025. In the general ledger
the Purple Pipe loan is recorded within the DOE #2 account.
The City’s outstanding long-term debt obligations at December 31, 2025 are summarized below.
Issue

Purpose

Year

Original Amount

Interest Rate

GO Bond, Series 2024

Aquatic Center

2024

$7,565,000

4.00–5.00%

GO Bond, Series 2025

Aquatic Center

2025

$4,695,000

5.00–5.25%

Fire Truck (LOCAL)

Fire pumper truck

2018

$525,000

5.00%

DOE #2 (L0800007)

WWTP expansion

2009

$11,569,000

0%

DOE #4 (WQC-201800191)

Purple Pipe (initial)

2021

$473,047

0.7%

DOE – Purple Pipe

Purple Pipe reclaimed water
(CWSRF-SFY22)

2025

$10,730,826

1%

Governmental Activities

Business-Type Activities

Annual debt-service requirements to maturity for the general obligation bonds (both series combined) are as follows. No
principal is due within one year; the first principal payment after year-end is $30,000 on December 1, 2027 (Series 2025), with
Series 2024 principal resuming December 1, 2031.
Year Ending Dec 31

Principal

Interest

Total Debt Service

2026

—

575,112.50

575,112.50

2027

30,000

575,112.50

605,112.50

2028

50,000

573,612.50

623,612.50

2029

75,000

571,112.50

646,112.50

2030

105,000

567,362.50

672,362.50

2031–2035

1,120,000

2,716,812.50

3,836,812.50

2036–2040

2,220,000

2,334,312.50

4,554,312.50

2041–2045

3,675,000

1,638,387.50

5,313,387.50

2046–2049

4,420,000

562,962.50

4,982,962.50

$11,695,000

$10,114,787.50

$21,809,787.50

Total

Annual debt-service requirements to maturity for the Fire Truck (LOCAL) financed purchase are as follows.
Year Ending Dec 31

Principal

Interest

Total Debt Service

2026

40,000

13,250

53,250

2027

45,000

11,125

56,125

2028

45,000

8,875

53,875

2029

50,000

6,500

56,500

2030

50,000

4,000

54,000

2031

55,000

1,375

56,375

Total

$285,000

$45,125

$330,125

Page 71

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Annual debt-service requirements to maturity for the business-type state revolving-fund loans (both Department of
Ecology loans and the Purple Pipe DOE loan) are as follows:
Year Ending Dec 31

Principal

Interest

Total Debt Service

2026

631,975.67

673.00

632,648.67

2027

535,843.33

–

535,843.33

2028

1,013,601.94

127,340.92

1,140,942.86

2029

1,019,352.24

121,590.62

1,140,942.86

2030

489,328.42

115,771.11

605,099.53

2031–2035

2,536,416.07

489,081.59

3,025,497.65

2036–2040

2,692,776.46

332,721.19

3,025,497.65

2041–2045

2,858,775.88

166,721.77

3,025,497.65

2046–2047
Total

1,192,261.65

17,937.42

1,210,199.06

$12,970,331.66

$1,371,837.62

$14,342,169.28

The Purple Pipe portion of the Department of Ecology loans — outstanding principal of $10,730,826 at December 31, 2025
— is presented on a modeled basis using the Department of Ecology’s standard convention of level semiannual payments
due June 30 and December 31, at the effective rate of 1.2% over a twenty-year term commencing in 2028, pending the
Department’s final loan repayment schedule. Because the project completion date was extended to June 30, 2026,
additional draws may increase the principal balance. Total outstanding principal at December 31, 2025 is not affected; only
the interest and the year-by-year principal timing may change when the official schedule is obtained.

NOTE 10 – LEASES (LESSEE)
The City leases copiers and postage equipment and holds subscription-based information technology arrangements
(SBITAs). Leases are accounted for under GASB Statement No. 87 and subscription arrangements under GASB
Statement No. 96 as financings of the right to use an underlying asset. The City recognizes a lease or subscription
liability and a corresponding intangible right-to-use asset, which is amortized on a straight-line basis over the shorter
of the arrangement term or the useful life of the underlying asset. Right-to-use lease and subscription assets and the
related accumulated amortization are presented within capital assets (see Capital Assets, Note 5).
Governmental activities. The lease and subscription liability at December 31, 2025 was $83,668.72, of which
$44,050.38 is due within one year and $39,618.34 is long-term. Additions during 2025 were $51,390.79, consisting
of the Flock Safety subscription arrangement. Principal payments were $47,454.65 and interest expense was
$1,048.02.
Business-type activities. The lease and subscription liability at December 31, 2025 was $79,411.86, of which
$17,160.65 is due within one year and $62,251.21 is long-term. By fund, the liability comprises Light $38,513.69,
Water $33,434.63, and Sewer $7,463.55. Additions during 2025 were $81,024.25, consisting of the Daupler RMS
subscription arrangement allocated equally between the Light and Water funds. Principal payments were
$17,662.35 and interest expense was $437.95.
The lease and subscription liabilities of the primary government at December 31, 2025 are summarized below and
agree to the Statement of Net Position.
Lease / SBITA Liability
Due within one year

Governmental

Business-Type

Total

44,050.38

17,160.65

61,211.03

Due in more than one year

39,618.34

62,251.21

101,869.55

Total

$83,668.72

$79,411.86

$163,080.58

Page 72

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Governmental leases and subscription arrangements amortize principally through 2030 and business-type
arrangements through 2031. Interest on these arrangements totaled $1,485.97 for the year and is not material to
the financial statements.
Lease and Subscription Instruments – Governmental Activities
Due Within One
Year

Long-Term

790.28

790.28

–

1,029.16

1,029.16

–

Lease / SBITA Instrument

Fund

Ending Liability

Finance Copier

001

Finance Postage

001

Fire Department Copier

001

6,124.68

1,698.73

4,425.95

Police Copiers (2)

001

22,903.45

5,245.80

17,657.65

Court Copier (POA)

001

8,390.68

2,125.45

6,265.23

Thomson Reuters (Police)

001

3,933.55

3,359.38

574.17

Flock Safety (Police)

001

25,259.74

25,259.74

–

UB Rental Copier (Ricoh)

001

7,427.56

2,213.98

5,213.58

UB Map Copier (Ricoh)

001

7,809.62

2,327.86

5,481.76

$83,668.72

$44,050.38

$39,618.34

Total — Governmental Activities

Lease and Subscription Instruments – Business-Type Activities
Lease / SBITA Instrument

Fund

Ending Liability

Due Within One
Year

Long-Term

Light Copier / UB (25%)

401

2,475.86

737.99

1,737.87

Light Copier / Map (25%)

401

2,603.19

775.95

1,827.24

Daupler RMS — Light

401

33,434.63

6,772.85

26,661.78

Daupler RMS — Water

402

33,434.63

6,772.85

26,661.78

WWTP Copier (Ricoh)

404

7,463.55

2,101.01

5,362.54

$79,411.86

$17,160.65

$62,251.21

Total — Business-Type Activities

Future Lease Payments – Governmental Activities
Fiscal Year

Principal Payments

Interest Payments

Total Payments

2026

15,431

668

16,099

2027

14,057

451

14,508

2028

14,519

228

14,747

2029

9,960

35

9,995

2030

508

0

508

Total

$54,475

$1,381

$55,857

Future Lease Payments – Business-Type Activities
Fiscal Year

Principal Payments

Interest Payments

Total Payments

2026

3,615

330

3,945

2027

3,726

219

3,945

2028

3,840

105

3,945

2029

1,362

10

1,371

Total

$12,543

$664

$13,207

Page 73

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Future subscription (SBITA) payments are presented separately in Note 12. Right-to-use lease and subscription assets
and the related accumulated amortization are presented within capital assets in Note 5.
NOTE 11 – LEASES (LESSOR)
The City acts as lessor under two communications site leases in the Water fund. Under GASB Statement No. 87, the
City recognizes a lease receivable and a deferred inflow of resources for each. The T-Mobile water tower lease
commenced July 15, 2024 and runs 180 months through July 14, 2039, at monthly fixed payments of $1,168.48
escalating annually, discounted at 4.055%. The AT&T site lease is in its final years and matures in 2027. At December
31, 2025, the combined lease receivable was $208,977.11 and the combined deferred inflow of resources was
$197,753.98. Lease revenue of $23,265.59 and interest income of $8,352.51 were recognized during 2025; principal
received was $15,734.13.
Lessor Lease – Business-Type Activities
T-Mobile — Water Tower Lease
Lease Date

July 15, 2024

Purpose

Water tower antenna site lease

Lease Term

180 months

Interest Rate

4.055%

Lease Receivable – Original

$208,927

Lease Receivable – December 31, 2025

$200,029

Deferred Inflow of Resources –
December 31, 2025

$189,549

Lease Revenue Recognized in 2025

$13,929

Principal Received in 2025

$6,332

Lease Extensions

One 60-month lessee extension option

Composition of Lessor Balances
Lessor Lease
T-Mobile — water tower
AT&T — communications site
Total per Statement of Net Position

Lease Receivable

Deferred Inflow of Resources

200,028.92

189,549.47

8,948.19

8,204.51

$208,977.11

$197,753.98

Future Lease Receipts – T-Mobile Water Tower Lease
Year Ending Dec 31

Principal

Interest

Total Receipts

2026

7,177

7,989

15,166

2027

8,092

7,681

15,773

2028

9,069

7,335

16,404

2029

10,112

6,948

17,060

2030

11,225

6,517

17,742

2031–2035

75,551

24,389

99,940

2036–2039

78,622

6,186

84,808

$199,848

$67,045

$266,893

Total

Page 74

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
The schedule above presents the T-Mobile lease only. The AT&T lease matures in 2027; remaining principal receipts of
$8,948.19 are due $8,679.78 in 2026 and $268.41 in 2027.
NOTE 12 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA)
Under GASB Statement No. 96, the City recognizes a subscription liability and an intangible right-to-use subscription
asset for its subscription-based information technology arrangements. Subscription assets are amortized on a
straight-line basis over the subscription term. Subscription liabilities are included in the combined lease and
subscription liability totals presented in Notes 10 and 13. Because none of the arrangements state an interest rate,
the City used its incremental borrowing rate as the discount rate.
At December 31, 2025, governmental subscription liabilities totaled $29,193 (Thomson Reuters and Flock Safety)
and business-type subscription liabilities totaled $66,869 (Daupler RMS, allocated equally between the Light and
Water funds). Total subscription liabilities were $96,063.
Subscription-Based IT Arrangement

Thomson Reuters

Flock Safety

Daupler – RMS

General (001)

General (001)

Light (401) / Water (402)

Subscription Start Date

March 1, 2024

March 12, 2025

October 14, 2025

Subscription End Date

February 28, 2027

March 11, 2027

October 13, 2030

36 months

24 months

60 months

2.935%

3.469%

3.028%

–

$26,136

$14,155

$7,035

$–

$–

Fund

Subscription Term
Incremental Borrowing Rate
Annual Payment
Beginning Subscription Liability
Additions

–

$51,391

$81,024

Principal Payments

$(3,102)

$(26,131)

$(14,155)

Ending Subscription Liability

$3,934

$25,260

$66,869

Future SBITA Payments – Governmental Activities
Fiscal Year

Principal Payments

Interest Payments

Total Payments

28,619

947

29,566

2026
2027

574

2

576

Total

$29,193

$949

$30,142

Principal Payments

Interest Payments

Total Payments

2026

13,546

2,025

15,570

2027

15,513

1,615

17,128

2028

17,695

1,145

18,840

Future SBITA Payments – Business-Type Activities
Fiscal Year

2029

20,115

609

20,724

Total

$66,869

$5,393

$72,263

NOTE 13 – CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2025 was as follows:
Beginning 1/1/25

Additions

Reductions

Ending 12/31/25

Due in 1 Yr

Governmental Activities:

Page 75

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
General obligation bonds (par)

7,050,000

4,695,000

(50,000)

11,695,000

–

Unamortized bond premium

417,600

305,000

(29,600)

693,000

29,600

Financed purchases (Fire Truck)

365,390

–

(45,770)

319,620

45,770

Lease / SBITA liability

79,733

51,391

(47,455)

83,669

44,050

Asset retirement obligation

30,000

–

–

30,000

–

Total OPEB liability

3,134,085

119,704

(421,782)

2,832,007

140,000

Net pension liability

245,812

–

(64,989)

180,823

–

Compensated absences

1,210,889

502,199

(511,881)

1,201,207

502,199

Total governmental activities

12,533,509

5,673,294

(1,171,477)

17,035,326

761,619

External loans (DOE)

2,894,481

10,730,826

(654,979)

12,970,331

631,976

Lease / SBITA liability

16,050

81,024

(17,662)

79,412

17,161

Asset retirement obligations

400,000

–

–

400,000

–

Net pension liability

193,138

–

(39,103)

154,035

–

Business-Type Activities:

Compensated absences
Total business-type activities

832,539

342,581

–

1,175,120

438,836

4,336,208

11,154,431

(711,744)

14,778,898

1,087,973

General obligation bonds are presented at par, with unamortized original issue premium shown separately; together they equal
the $12,388,000 carrying value reported on the Statement of Net Position. Financed purchases are presented at carrying value,
including unamortized premium. Internal balances between governmental funds are eliminated in the government-wide
statements and are excluded above.

NOTE 14 – ASSET RETIREMENT OBLIGATIONS (ARO)
Under GASB Statement No. 83, the City recognizes asset retirement obligations associated with the future closure
of an underground fuel storage tank and the future decommissioning and plugging of its water wells. An obligation
is measured at the best estimate of the current value of outlays expected to be incurred and is adjusted for the
effects of inflation and changes in estimates. At December 31, 2025, the recognized asset retirement obligations
totaled $430,000 — $30,000 in governmental activities and $400,000 in business-type activities.
Governmental Activities – Fuel Tank
The City has one underground fuel tank located at the Cheney Fire Department. The tank, originally purchased for
$30,800, is fully depreciated but still in use. The City established a City-owned fuel farm to satisfy fuel requirements
for City vehicles and estimates the tank will be eliminated within five fiscal years. The closure/clean-up estimate of
$30,000 was based on excavation and cleanup work estimated by the Public Works Department and is reported on
the Statement of Net Position.
Business-Type Activities – Water Wells
The City has multiple water wells, several of which have exceeded their estimated useful lives. The City retired a well
in 2019 at a closure cost of $80,000 and reports a proportionate closure cost for each remaining well; the aggregate
closure/clean-up estimate of $400,000 remains a liability on the Statement of Net Position, with a corresponding
deferred outflow of resources of $288,426. The City also owns and operates a wastewater treatment plant within
the Sewer Fund; the Washington State Department of Ecology has notified the City that there are no closure and
disposal costs to be estimated for that facility.
The governmental asset retirement obligation of $30,000 (fuel tank closure) is unchanged from the prior year; the
business-type water-well ARO of $400,000 is likewise unchanged.
The City’s asset retirement obligations and the related deferred outflows of resources at December 31, 2025 are
summarized below. The business-type ARO relates to the future decommissioning and plugging of the City’s water
wells (Water fund); the deferred outflow is amortized over the remaining useful lives of the wells.

Page 76

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Asset Retirement Obligation

ARO Liability

Deferred Outflow

Governmental – Underground fuel tank

30,000

–

Business-type – Water wells

400,000

288,426

Total

430,000

288,426

The City has eight water wells — five with remaining useful life and three that have met or exceeded their estimated
useful life. Each well has different specifications on depth and diameter, and not all wells are used year-round. The
wells still in service, including capitalized rehabilitation, are summarized below:
Water Well

Install / Rehab
Date

Install Cost

Remaining
Useful Life (yrs)

ARO Deferred
Outflow

Well #1

Rehab only

$50,136

11

$34,293

Well #2
Well #3

Rehab only

50,136

11

34,293

2018

972,836

15

36,430

Well #4

1991

89,610

32

29,957

Well #5

Rehab only

31,721

12

35,221

Well #6

1995

289,297

33

40,279

Well #7

1995

161,801

29

41,826

Well #8

2007

1,381,943

33

36,126

Total ARO Deferred Outflow — Business-Type
Activities

$288,426

Amortization of the asset retirement obligation deferred outflow was $19,615 in 2025. Wells #1, #2 and #5 are fully
depreciated but remain in service; rehabilitation costs are expensed as incurred and are not capitalized.

NOTE 15 – CONTINGENCIES AND LITIGATION
In the opinion of management, the City’s insurance policies and self-insurance reserves are adequate to pay all
known pending claims.
The City participates in several federal and state-assisted programs. These grants are subject to audit by the grantors
or their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures
disallowed under the terms of the grants. Management believes that all disallowances, if any, would be immaterial.
The City is involved in routine litigation incidental to its operations. In the opinion of management and legal counsel,
the outcome of such matters will not have a material adverse effect on the City’s financial position.
NOTE 16 – RESTRICTED NET POSITION
The government-wide statement of net position reports $4,980,561 of the restricted component of net position. The
table below presents the detail for both governmental activities and business-type activities.
Governmental
Activities

Business-Type
Activities

Total

Capital Purposes

203,329

3,077,401

3,280,731

Opioid Settlement Funds Held for Obligation

117,497

–

117,497

1,208,819

373,514

1,582,333

Restricted for

Net Pension Asset

Page 77

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Total Restricted Net Position

$1,529,645

$3,450,916

$4,980,561

Restricted net position related to pensions is calculated as the net pension asset less the related deferred inflows of
resources, including only those plans reporting a net pension asset (see Pension Plans, Note 6).
NOTE 17 – INTERFUND BALANCES AND TRANSFERS
A. Interfund Balances
Interfund balances at December 31, 2025 result from interfund loans. The City uses reserve balances in other funds
to provide short- and long-term interfund loans; interest is charged at 1% above the rate earned by the lending fund
in the State Investment Pool. Interfund balances are eliminated in the government-wide statements.
Borrowing Fund (Due To)

Lending Fund (Due From)

Purpose

Balance 12/31/25

Water

Light

Well #3 redrill and imporvement

344,440

Equipment Rental

Light

Grader, sander, and mower purchases

58,750

Arterial Street

Residential Street

Street project financing

84,781

Total

$487,971

The Fuel Farm interfund loan was repaid in full during 2025. Loans are repaid over their authorized terms with
interest.
B. Interfund Transfers
Interfund transfers during 2025 totaled $549,078, made principally to support Aquatic Center construction and
street and parks operations. Transfers between governmental funds are eliminated in the government-wide
statements.

Transfer From

Transfer To

Purpose

Amount

Major – Governmental / General

Major – Governmental / Parks &
Recreation

Parks and recreation operations

100,000

Major – Governmental / General

Nonmajor – Governmental / Street

Street operations

350,000

Nonmajor – Governmental / REET

Major – Governmental / Pool
Construction

Cheney Aquatic Facility

99,078

Total

$549,078

NOTE 18 – RECEIVABLE AND PAYABLE BALANCES
A. Receivables at December 31, 2025, were as follows:
Receivables

Governmental Activities

Business-Type Activities

Total

1,125,296

1,654,777

2,780,073

Other

262,004

605,435

867,439

Lease

4,588

208,977

213,566

Taxes (Utility & Property)

Due from Other Gov

520,939

2,564

523,503

Interfund Loan (net)

-58,750

58,750

-0

Page 78

CITY OF CHENEY, WASHINGTON
Notes to the Financial Statements
For the Year Ended December 31, 2025
Total

$1,854,079

$2,530,502

$4,384,581

B. Payables at December 31, 2025, were as follows:
Payables

Governmental Activities

Business-Type Activities

Total

Accounts

283,686

1,134,898

1,418,583

Unearned Revenue

66,105

56,489

122,595

Retainage
Lease/SBITA Payable
Interest

0

119,744

119,744

44,050

17,161

61,211

0

0

0

Financed Purchases

45,770

0

45,770

External Debt Payable

29,600

631,976

661,576

0

21,177

21,177

$469,212

$1,981,445

$2,450,656

Wages Payable
Total

NOTE 19 – INTERFUND COST ALLOCATIONS
The City allocates certain administrative and support costs among funds on a cost-reimbursement basis, including
internal service fund charges for unemployment compensation, equipment rental, and mechanical shop services.
The City annually records and monitors time spent by the Office of the Mayor and the Finance Department (Finance
and Executive charges) and by Public Works Administration staff (Public Works Administration charges) to accurately
reflect the time charged to the proprietary funds for services performed by the General Fund. These charges are
classified as operating expenses in the Street, Light, Water, Solid Waste, and Sewer funds and are recorded in the
General Fund. At year end, the revenue is netted into the General Fund expense accounts so that a single expense
is recorded in the financial statements for those operating expenses.
In 2025, $1,538,498 in revenue was netted into the expense accounts of the Mayor’s Office, Finance Department,
and Legal Services Division. $656,704 in revenue was closed into Public Works Administration to account for the
maintenance and operations cost of Public Works Administration.
NOTE 20 – SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date the financial statements were available to be issued
and has determined that no events occurred after December 31, 2025 that require recognition or disclosure in these
financial statements.

Page 79

REQUIRED SUPPLEMENTARY INFORMATION - State Sponsored Plans
City of Cheney, Washington
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2025
Last 10 Fiscal Years

Employer's proportion of the net pension liability (asset)

%

Employer's proportionate share of the net pension liability

$

Covered Payroll

$

2025
0.02840%

2024
0.024704

PERS 1
2023
0.031520

2022
0.032388

2021
0.030098

2020
0.034462

2019
0.029899

2018
0.03444

2017
0.034173

$

334,858 $

438,950 $

719,517 $

901,801 $

367,567 $

1,216,695 $

1,149,723 $

1,538,102 $

1,621,536 $ 1,947,494 $ 1,833,493

$

6,105,181 $

5,200,146 $

5,662,224 $

5,231,674 $

5,050,323 $

4,750,913 $

4,096,437 $

4,465,687 $

4,213,038 $ 4,247,577 $ 3,932,716

2016
0.036263

2015
0.035051

Employer's proportionate share of the net pension liability as a percentage
of covered payroll
%

5.48%

8.44%

12.71%

17.24%

7.28%

25.61%

28.07%

34.44%

38.49%

45.85%

46.62%

Plan fiduciary net position as a percentage of the total pension liability

%

89.07%

84.05%

80.16%

76.56%

88.74%

68.64%

67.12%

63.22%

61.24%

57.03%

59.10%

Employer's proportion of the net pension liability (asset)

%

2025
0.03645%

2024
0.032886

PERS 2/3
2023
2022
0.040720
0.042121

2021
0.038646

2020
0.044052

2019
0.037073

2018
0.042601

2017
0.042218

2016
0.044849

2015
0.043559

Employer's proportionate share of the net pension liability (asset)

$

(1,391,111)

(1,084,111)

(1,668,984)

(1,562,176)

(3,849,763)

563,400

360,105

727,374

1,466,874

2,258,112

1,556,388

Covered Payroll

$

6,105,181

5,200,146

5,662,224

5,231,674

5,050,323

4,750,913

4,029,489

4,390,802

4,139,171

4,176,635

3,865,082

Employer's proportionate share of the net pension liability as a percentage
of covered payroll
%

-22.79%

-20.85%

-29.48%

-29.86%

-76.23%

11.86%

8.94%

16.57%

35.44%

54.07%

40.27%

Plan fiduciary net position as a percentage of the total pension liability

105.53%

105.17%

107.02%

106.73%

120.29%

97.22%

97.77%

95.77%

90.97%

85.82%

89.20%

2025

2024

2023

%

LEOFF 1
2022

2021

2020

2019

2018

2017

2016

Employer's proportion of the net pension liability (asset)

%

0.0161%

0.015635

0.015177

0.014813

0.014417

0.014069

0.013767

0.014087

0.013196

0.013535

0.014061

Employer's proportionate share of the net pension Asset

$

(510,071)

(444,642)

(450,457)

(424,928)

(493,863)

(265,694)

(272,120)

(255,750)

(200,212)

(139,449)

(169,466)

State's proportionate share of the net pension liability (asset) associated
with the employer

$

(3,450,107)

(3,007,548)

(3,046,880)

(2,874,200)

(3,340,479)

(1,797,150)

(1,840,613)

(1,729,885)

(1,354,231)

(943,231)

Total

$

(3,960,178)

(3,452,190)

(3,497,337)

(3,299,128)

(3,834,342)

(2,062,844)

(2,112,733)

(1,985,635)

(1,554,443)

(1,082,680)

Covered Payroll

$

-

-

-

-

-

-

-

-

-

Employer's proportionate share of the net pension liability as a percentage
of covered payroll
%

2015

-

(169,466)
-

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Plan fiduciary net position as a percentage of the total pension liability

%

178.02%

168.48%

175.99%

169.62%

187.45%

146.88%

148.78%

144.42%

135.96%

123.74%

127.36%

Employer's proportion of the net pension liability (asset)

%

2025
0.0713%

2024
0.04977

LEOFF 2
2023
2022
0.067291
0.074064

2021
0.068962

2020
0.073213

2019
0.067636

2018
0.073204

2017
0.070034

2016
0.070376

2015
0.068166

Employer's proportionate share of the net pension asset

$

$ (1,382,167) $

(932,065) $ (1,614,041) $ (2,012,836) $ (4,005,598) $ (1,493,438) $ (1,566,918) $ (1,486,201) $

(971,845) $

(409,328) $

(700,610)

State's proportionate share of the net pension liability (asset) associated
with the employer

$

(604,861)

(630,418)

Total

$

$ (2,269,278) $ (1,536,926) $ (2,644,751) $ (3,316,707) $ (6,589,646) $ (2,448,379) $ (2,593,040) $ (2,448,488) $ (1,602,263) $

Covered Payroll

$

$

(887,112)

(1,030,710)

(1,303,871)

(2,584,048)

(954,941)

(1,026,122)

(962,287)

(266,852)

(104,139)

(676,180) $

(804,749)

3,925,142 $

2,656,598 $

2,926,212 $

2,944,067 $

2,662,382 $

2,551,897 $

2,362,250 $

2,371,959 $

Employer's proportionate share of the net pension liability as a percentage
of covered payroll
%

-35.21%

-35.08%

-55.16%

-68.37%

-150.45%

-58.52%

-66.33%

-62.66%

-44.36%

-19.20%

-35.41%

Plan fiduciary net position as a percentage of the total pension liability

108.79%

109.27

113.17%

116.09%

142.00%

115.83%

119.43%

118.50%

113.36%

106.04%

111.67%

%

2,190,794 $ 2,131,986 $ 1,978,447

Page 80

City of Cheney, Washington
Schedule of Employer Contributions
for the Year Ended December 31 , 2025
Last 10 Fiscal Years
PERS 1
2025
Statutorily or contractually required
contributions

$

Contributions in relation to the statutorily or
contractually required contributions

$

Contribution deficiency (excess)

$

Covered Payroll

$

80,663 $

$

2024

2023

2022

2021

2020

2019

2018

2017

2016

166,983 $

165,594 $

204,679 $

218,901 $

235,420 $

253,859 $

230,205 $

217,988 $

207,365

(80,663) $ (166,983) $ (165,594) $ (204,679) $ (218,901) $ (235,420) $ (253,859) $ (230,205) $ (217,988) $ (207,365)
-

-

-

-

-

-

-

-

-

-

$ 6,225,648.88 $ 6,074,106 $ 5,050,270 $ 5,448,036 $ 5,100,532 $ 4,906,820 $ 4,635,371 $ 4,490,567 $ 4,344,343 $ 4,178,552

Contributions as a percentage of covered payroll %

1.30%

2.75%

3.28%

3.76%

4.29%

4.80%

5.48%

5.13%

5.02%

4.96%

PERS 2/3
Statutorily or contractually required
contributions

$

$

Contributions in relation to the statutorily or
contractually required contributions

$

$

Contribution deficiency (excess)

$

Covered Payroll

$

2025

2024

2023

2022

2021

2020

2019

2018

2017

378,349.58 $

398,459 $

325,690 $

356,286 $

373,477 $

397,452 $

361,809 $

328,717 $

293,104

$

260,908

(378,350) $ (398,459) $ (325,690) $ (356,286) $ (373,477) $ (397,452) $ (361,809) $ (328,717) $ (293,104) $ (260,908)
-

$

2016

6,225,649

Contributions as a percentage of covered payroll %

-

-

-

-

-

-

-

-

-

$ 6,074,106 $ 5,050,270 $ 5,448,036 $ 5,100,532 $ 4,906,820 $ 4,577,255 $ 4,416,706 $ 4,269,402 $ 4,105,769

6.08%

6.56%

6.45%

6.54%

7.32%

8.10%

7.90%

7.44%

6.87%

6.35%

LEOFF 2
2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

185,114 $

131,351 $

161,817 $

148,668 $

138,557 $

139,377 $

126,944 $

117,329

Statutorily or contractually required
contributions

$

$

222,930 $

Contributions in relation to the statutorily or
contractually required contributions

$

$

(222,930) $ (185,114) $ (131,351) $ (161,817) $ (148,668) $ (138,557) $ (139,377) $ (126,944) $ (117,329) $ (109,375)

Contribution deficiency (excess)

$

Covered Payroll

$

Contributions as a percentage of covered payroll %

$

4,177,739

5.34%

-

-

-

-

-

-

-

$

-

109,375

-

$ 3,462,056 $ 2,448,291 $ 2,980,484 $ 2,780,252 $ 2,592,830 $ 2,590,380 $ 2,506,429 $ 2,241,639 $ 2,188,461

5.35%

5.37%

5.43%

5.35%

5.34%

5.38%

5.06%

5.23%

5.00%

Page 81

REQUIRED SUPPLEMENTARY INFORMATION
City of Cheney, Washington
Schedule of Changes in Total OPEB Liability and Related Ratios
LEOFF 1 Retirees
For the year ended December 31, 2025
Last 8 Fiscal Years*

2025

2024

Total OPEB liability - beginning
Service cost
Interest
Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments
Other changes
Total OPEB liability - ending

$ 3,134,085 $
0
119,704
0
(243,713)
0
(178,069)
0
2,832,007

Covered payroll

$

Total OPEB liability as a % of covered payroll

0.00%

$

2023

2022

2021

2020

2019

2018

3,142,749 $ 2,988,907 $ 3,489,612 $ 3,332,346 $ 3,057,870 $ 3,915,494 $ 4,045,918
0
0
0
0
0
0
0
111,900
103,420
73,915
72,350
104,910
148,928
142,337
0
0
0
0
0
0
0
34,818
186,459
(438,622)
202,710
291,494
(870,795)
(131,460)
0
0
0
0
0
0
0
(155,382)
(136,037)
(135,998)
(117,794)
(121,928)
(135,757)
(141,301)
3,134,085
0.00%

3,142,749
$

0.00%

2,988,907
$

0.00%

3,489,612
$

0.00%

3,332,346
$

0.00%

3,057,870
$

0.00%

3,915,494
$

0.00%

Notes to Schedule:
* Until a full 10-year trend is compiled, only information for those years available is presented.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75.
There are no active employees in the City of Cheney OPEB program, therefore there
is no covered payroll, or OPEB liability as a % of covered payroll.

Page 82

Page 83

Child and Adult Care
Food Program

Child and Adult Care
Food Program

Butte Creek Fire

SugarLoaf Fire

Labor Mountain Fire

FOOD AND NUTRITION
SERVICE, AGRICULTURE,
DEPARTMENT OF (via Office of
Superintendent of Public
Instruction)

FOOD AND NUTRITION
SERVICE, AGRICULTURE,
DEPARTMENT OF (via Office of
Superintendent of Public
Instruction)

Department of Agriculture (via
Department of Natural
Resources)

Department of Agriculture (via
Department of Natural
Resources)

Department of Agriculture (via
Department of Natural
Resources)

The accompanying notes are an integral part of this schedule.

Child and Adult Care
Food Program

Federal Program

FOOD AND NUTRITION
SERVICE, AGRICULTURE,
DEPARTMENT OF (via Office of
Superintendent of Public
Instruction)

Federal Agency
(Pass-Through Agency)

10.U03

10.U02

10.U01

10.558

10.558

10.558

ALN
Number

WA-OWF000795

WA-OWF000797

OR-WSA000079

Total ALN 10.558:

PR2403

PR2402

PR2401

Other Award
Number

12,088

14,205

10,442

4,947

806

1,116

3,025

From PassThrough
Awards

-

-

12,088

14,205

10,442

4,947

-

806

1,116

3,025

Total

-

-

-

From Direct
Awards

Expenditures

City of Cheney
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2025

-

-

-

-

-

-

-

Passed through
to
Subrecipients

1, 3

1, 3

1, 3

1, 3

1, 3

1, 3

Note

Page 84

The accompanying notes are an integral part of this schedule.

COVID 19 CORONAVIRUS STATE
AND LOCAL FISCAL
RECOVERY FUNDS

DEPARTMENTAL OFFICES,
TREASURY, DEPARTMENT OF
THE (via Department of
Commerce)
21.027

15.504

ALN
Number

22-96515-006

Other Award
Number

Total Federal Awards Expended:

Water Recycling and
Desalination
Construction Programs

Federal Program

BUREAU OF RECLAMATION,
INTERIOR, DEPARTMENT OF
THE

Federal Agency
(Pass-Through Agency)

-

819,917

287,700

819,917

From Direct
Awards

246,018

-

From PassThrough
Awards

Expenditures

City of Cheney
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2025

1,107,617

246,018

819,917

Total

-

-

-

Passed through
to
Subrecipients

1, 3

1, 3

Note

City of Cheney, Washington
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2025

Note 1 - Basis of Accounting
This schedule is prepared on the same basis of accounting as the City of Cheney's financial statements and in
accordance with the requirements containd in Uniform Guidance. The City uses the modified accrual basis of accounting
for governmental funds and the full accrual basis of accounting for proprietary funds.
Note 2 - Federal Indirect Cost Rate
The City of Cheney has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance.
Note 3 - Program Costs
The amounts shown as current year expenditures represent only the federal award portion of the program costs. Entire
program costs, including the City of Cheney's portion, are more than shown. Such expenditures are recognized following
the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or
are limited as to reimbursement. Federal program, ALN 15.504, Water Recycling and Desalination Construction
Program, paid for twenty-five percent of costs for the Purple Pipe project from 2022 through 2025.

Page 85

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER
UNIFORM GUIDANCE
City of Cheney
January 1, 2025 through December 31, 2025
This schedule presents the corrective action planned by the City for findings reported in this report
in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance).
Finding ref
number:
2025-001

Finding caption:
The City did not have adequate internal controls to ensure accurate
financial reporting.

Name, address, and telephone of City contact person:
James Rouse, Finance Director
609 2nd Street
Cheney, WA 99004
509-498-9215
Corrective action the auditee plans to take in response to the finding:
The city concurs with the finding. The misstatements identified during the audit were corrected
in the financial statements submitted for 2025.
The city is committed to addressing this finding through corrective actions, strengthened review
procedures, improved documentation, and better coordination among Finance Department staff
and other responsible departments.
During the period relevant to the audit, the city experienced the departure and retirement of key
personnel within the City and Finance Department. These staffing transitions resulted in
changes in personnel responsible for financial reporting and compliance activities. Remaining
and newly assigned staff were required to become familiar with the City’s established policies,
procedures, internal controls, and reporting requirements while assuming these
responsibilities.

Office of the Washington State Auditor

sao.wa.gov

Page 86

The city recognizes that these transitions presented challenges in maintaining continuity of
institutional knowledge and contributed to the need for additional training and procedural
guidance. The City acknowledges its responsibility to ensure that financial reporting and
compliance obligations are met accurately and timely, regardless of staffing changes.
Accordingly, the City is committed to strengthening staff training, documenting procedures,
improving knowledge transfer, and establishing consistent review practices to support
continuity of operations and compliance with applicable requirements.
SEFA Reporting: A member of finance reconciles grant expenditures and reports federal
expenditures on the SEFA. Corrective measures will include:
•

•

•
•

Maintain a centralized federal award register listing the awarding agency, pass-through
entity where applicable, ALN, award identification number, award period, expenditures,
and responsible department. Require departments and grant administrators to notify
Finance of every new federal award and any changes to existing awards.
At year-end, reconcile federal expenditures reported in the general ledger and grant
records to the proposed SEFA. Review state financial assistance schedules to identify
federal expenditures incorrectly classified as state assistance.
Require a preparer and an independent reviewer to sign and date the completed SEFA
reconciliation before submission for audit.
Document the determination of whether a single audit is required based on the total
federal awards expended during the fiscal year and the applicable Uniform Guidance
threshold.

The single audit for fiscal year 2025 is being completed and will be submitted to the Federal
Audit Clearinghouse upon issuance of the audit report.
Financial Statement Preparation: The city will establish and maintain a standardized year-end
closing and financial reporting checklists and review process. Corrective measures will include:
•

•
•
•

•

Develop a standardized annual financial reporting checklist aligned with the current
BARS Manual and applicable GAAP requirements covering account reconciliations,
financial statements, notes, schedules, and required supplementary information.
Prepare a detailed closing calendar with assigned preparers, reviewers, due dates, and
required supporting documentation.
Require reconciliations of accounts and schedules to the general ledger and supporting
records.
Retain documentation supporting the calculation and classification of each fund balance
category, including the Council of Finance Committee action establishing any
committed or assigned amounts.
Use a disclosure checklist to verify completeness and consistency of financial statement
notes and required supplementary information.

Office of the Washington State Auditor

sao.wa.gov

Page 87

Require a documented second-level review by a qualified individual who did not prepare
the report, to the extent practicable.
• Maintain an error log recording identified misstatements, corrections, root causes, and
preventive actions.
• Complete a final management certification that the reporting package has been reviewed
and that identified discrepancies have been resolved or documented before submission
to the auditor.
• Provide staff responsible for preparing and reviewing the financial statements,
schedules and notes with training on BARS and GAAP reporting requirements
Anticipated date to complete the corrective action:
Fourth Quarter 2026 / First Quarter 2027
•

Office of the Washington State Auditor

sao.wa.gov

Page 88

Finding ref
number:
2025-002

Finding caption:
The City did not have adequate internal controls for ensuring compliance
with federal allowable costs and reporting requirements.

Name, address, and telephone of City contact person:
James Rouse, Finance Director
609 2nd Street
Cheney, WA 99004
509-498-9215
Corrective action the auditee plans to take in response to the finding:
The City concurs with the finding.
The City is committed to addressing this finding through corrective actions, strengthened review
procedures, improved documentation, and better coordination among Finance Department staff
and other responsible departments.
During the period relevant to the audit, the City experienced the departure and retirement of
key personnel within the City and Finance Department. These staffing transitions resulted in
changes in personnel responsible for financial reporting and compliance activities. Remaining
and newly assigned staff were required to become familiar with the City’s established policies,
procedures, internal controls, and reporting requirements while assuming these
responsibilities.
The City recognizes that these transitions presented challenges in maintaining continuity of
institutional knowledge and contributed to the need for additional training and procedural
guidance. The City acknowledges its responsibility to ensure that financial reporting and
compliance obligations are met accurately and timely, regardless of staffing changes.
Accordingly, the City is committed to strengthening staff training, documenting procedures,
improving knowledge transfer, and establishing consistent review practices to support
continuity of operations and compliance with applicable requirements.
Allowable Cost: Departments currently prepare and submit federal reimbursement requests and
copy the Finance Department. The City will strengthen internal controls over costs charged to
federal programs. Corrective measures will include:
• Completing a review of project expenditures, invoices, and reimbursement requests on
awards funding the same project to identify any other costs charged to more than one
federal award.
• Establishing a cross-program reconciliation, performed before each reimbursement
request is submitted, verifying that the costs in the request have not previously been
charged to or reimbursed by another federal award.
• Routing reimbursement requests to the Finance Department for documented review and
approval before submission to the awarding agency.
• Providing written guidance and training to employees who manage federal awards and
preparing reimbursement requests, including how to identify state-administered awards
that carry federal funding.

Office of the Washington State Auditor

sao.wa.gov

Page 89

The City will resolve the questioned costs with the Bureau of Reclamation under 2 CFR 200.521.
Federal Financial Reporting: The City will establish and maintain a centralized compliance
calendar for federal awards that identifies required reports, reporting periods, due dates,
responsible employees, and review and submission requirements. Corrective measures will
include:
• Reviewing grant agreements and applicable federal requirements to identify all required
reports for each award.
• Requiring documented supervisory review before submission.
• Reviewing outstanding reporting obligations at each month-end close.
• Providing training to employees responsible for federal award administration and
reporting.
The City is working with the Bureau of Reclamation to submit the outstanding SF-425.
Anticipated date to complete the corrective action:
First quarter 2027

Office of the Washington State Auditor

sao.wa.gov

Page 90

ABOUT THE STATE AUDITOR’S OFFICE
The State Auditor’s Office is established in the Washington State Constitution and is part of the
executive branch of state government. The State Auditor is elected by the people of Washington
and serves four-year terms.
We work with state agencies, local governments and the public to achieve our vision of increasing
trust in government by helping governments work better and deliver higher value.
In fulfilling our mission to provide citizens with independent and transparent examinations of how
state and local governments use public funds, we hold ourselves to those same standards by
continually improving our audit quality and operational efficiency, and by developing highly
engaged and committed employees.
As an agency, the State Auditor’s Office has the independence necessary to objectively perform
audits, attestation engagements and investigations. Our work is designed to comply with
professional standards as well as to satisfy the requirements of federal, state and local laws. The
Office also has an extensive quality control program and undergoes regular external peer review
to ensure our work meets the highest possible standards of accuracy, objectivity and clarity.
Our audits look at financial information and compliance with federal, state and local laws for all
local governments, including schools, and all state agencies, including institutions of higher
education. In addition, we conduct performance audits and cybersecurity audits of state agencies
and local governments, as well as state whistleblower, fraud and citizen hotline investigations.
The results of our work are available to everyone through the more than 2,000 reports we publish
each year on our website, www.sao.wa.gov. Additionally, we share regular news and other
information via an email subscription service and social media channels.
We take our role as partners in accountability seriously. The Office provides training and technical
assistance to governments both directly and through partnerships with other governmental support
organizations.

Stay connected at sao.wa.gov
•
•
•
•
•
•

Other ways to stay in touch

Find your audit team
Request public records
Search BARS Manuals (GAAP and
cash), and find reporting templates
Learn about our training workshops
and on-demand videos
Discover which governments serve you
— enter an address on our map
Explore public financial data
with the Financial Intelligence Tool

Office of the Washington State Auditor

sao.wa.gov

•

Main telephone:
(564) 999-0950

•

Toll-free Citizen Hotline:
(866) 902-3900

•

Email:
[email protected]

Page 91

2026 Budget vs. Actual

For the ten months ended October 31, 2026

FINANCIAL UPDATE TO CITY COUNCIL – NOVEMBER 10, 2026

77.7%

67.8%

of budgeted revenue received

83%

of appropriation expended

$33,278,400

of the year elapsed

$32,011,419

Ten of twelve months

100%

2026 Budget

Through 10/31

% Used

Revenue

$42,846,800

$33,278,400

77.7%

Expenditures

$47,181,400

$32,011,419

67.8%

Revenues over expenditures

$1,266,981

90%
80%

78%
68%

70%
60%
50%
40%
30%
20%
10%
0%

Revenue

Expenditures

Benchmark: 83% of the year has elapsed. Budget excludes budgeted beginning and ending fund balance. Actual expenditures exclude capital asset additions (401 $182,632; 402 $110,825; 403 $0; 404 $5,940,283) and principal debt
payment (404 $631,976).

Presented By: James Rouse, Finance Director

FINANCIAL UPDATE TO CITY COUNCIL – NOVEMBER 10, 2026

Fund
001 General Fund
101 Street
102 Arterial Street
103 Residential Street
104 Fire Equipment Reserve
108 EMS Special Levy
111 Criminal Justice
116 Outside Jobs
118 Parks and Recreation
119 Hotel / Motel Tax
121 Information Technology
125 City Beautification
204 GO Bond Reserve
301 Capital Facilities
401 Light
402 Water
403 Solid Waste
404 Sewer
All other funds
Total All Funds

2026 Rev. Budget

Rev. 10/31

%

2026 Exp. Budget

Exp. 10/31

%

$11,711,400
$625,600
$1,899,700
$555,100
$51,000
$622,300
$581,500
$106,000
$1,612,500
$75,000
$662,000
$27,000
$610,900
$195,000
$11,993,500
$2,361,000
$1,904,200
$6,915,000
$338,100
$42,846,800

$8,779,737
$561,800
$780,135
$495,430
$39,702
$353,705
$397,661
$520
$1,273,519
$55,416
$661,478
$30,886
$335,212
$342,238
$9,387,546
$2,240,695
$1,764,027
$5,651,038
$127,655
$33,278,400

75.0%
89.8%
41.1%
89.3%
77.8%
56.8%
68.4%
0.5%
79.0%
73.9%
99.9%
114.4%
54.9%
175.5%
78.3%
94.9%
92.6%
81.7%
37.8%
77.7%

$12,826,800
$587,500
$1,899,700
$555,100
$45,000
$833,400
$1,000,600
$106,000
$1,977,800
$329,000
$680,800
$99,800
$575,100
$1,311,600
$12,439,500
$2,555,600
$1,851,100
$6,953,600
$553,400
$47,181,400

$9,757,356
$480,415
$805,106
$176,594
$8,843
$494,194
$738,135
$3,700
$1,622,630
$62,991
$561,423
$7,535
$288,256
$75,605
$8,477,327
$2,317,133
$1,588,587
$4,284,099
$261,490
$32,011,419

76.1%
81.8%
42.4%
31.8%
19.7%
59.3%
73.8%
3.5%
82.0%
19.1%
82.5%
7.6%
50.1%
5.8%
68.1%
90.7%
85.8%
61.6%
47.3%
67.8%

All other funds: 105, 106, 107, 110, 112, 113, 315, 405, 510 and 590. Budget excludes budgeted beginning and ending fund balance. Actual expenditures exclude capital asset additions (401 $182,632; 402 $110,825; 403 $0; 404
$5,940,283) and principal debt payment (404 $631,976).

Presented By: James Rouse, Finance Director

FINANCIAL UPDATE TO CITY COUNCIL – NOVEMBER 10, 2026

Fund

2026 Rev. Budget

Rev. 10/31

%

2026 Exp. Budget

Exp. 10/31

%

Rev. over Exp.

401 Light

$11,993,500

$9,387,546

78.3%

$12,439,500

$8,477,327

68.1%

$910,219

402 Water

$2,361,000

$2,240,695

94.9%

$2,555,600

$2,317,133

90.7%

($76,438)

403 Solid Waste

$1,904,200

$1,764,027

92.6%

$1,851,100

$1,588,587

85.8%

$175,440

404 Sewer

$6,915,000

$5,651,038

81.7%

$6,953,600

$4,284,099

61.6%

$1,366,939

100%
80%

95%
78%

91%

93%

86%

68%

All four utilities are within appropriation.

82%
62%

60%
40%

Sewer capital spending is excluded above and is being reconciled to
appropriation.

20%
0%

Water at 90.7% and Solid Waste at 85.8% both include depreciation for which
no appropriation was budgeted — $556,848 and $155,750. Excluding it, Water
is at 68.9% and Solid Waste at 77.4%.

Light

Water

Solid Waste

% Revenue Received

% Budget Expended

Sewer

Budget excludes budgeted beginning and ending fund balance. Actual expenditures exclude capital asset additions (401 $182,632; 402 $110,825; 403 $0; 404 $5,940,283) and principal debt payment (404 $631,976).

Presented By: James Rouse, Finance Director

FINANCIAL UPDATE TO CITY COUNCIL – NOVEMBER 10, 2026
$12.0M
$10.0M
$8.0M
$6.0M
$4.0M
$2.0M
$0.0M

Revenue

Expenditures

Charges for Services

General Property Taxes

Utility Taxes

Retail Sales & Use Taxes

Intergovernmental

All other revenue

Law Enforcement

Fire Control & Prevention

Finance

Executive/Admin

Public Works Admin

All other expenditures

Revenue Source

2026 Budget

Through 10/31

%

General Property Taxes

$3,502,000

$1,969,836

56.2%

Charges for Services

$3,094,900

$2,925,504

94.5%

Retail Sales & Use Taxes

$2,445,000

$1,538,657

62.9%

Utility Taxes

$1,547,300

$1,348,046

87.1%

Intergovernmental Revenue

$682,400

$653,956

95.8%

All other revenue

$439,800

$343,737

78.2%

Total Revenue

$11,711,400

$8,779,737

75.0%

Expenditure

2026 Budget

Through 10/31

%

Law Enforcement
Fire Control & Prevention
Finance
Public Works Admin
Executive/Admin
All Other Departments
Municipal Court
Exec/Admin-Levy Lift
Planning & Building
Legal
Transfers
Legislative
Intergov Services
LEOFF I Police
Redemption of Debt/Fire
Libraries
LEOFF I Fire
Public Defender
Protective Inspections
Civil Service Commission
Wellness Program
Total Expenditures

$4,484,624
$2,444,833
$1,878,700
$666,900
$650,700
$2,701,043
$559,100
$481,843
$454,900
$393,000
$350,000
$114,900
$105,000
$67,100
$53,300
$38,400
$33,300
$30,000
$19,200
—
$1,000
$12,826,800

$3,158,429
$2,154,449
$1,374,165
$570,606
$590,690
$1,909,015
$429,759
$862
$400,662
$410,053
$350,000
$73,439
$53,741
$64,680
$47,125
$11,145
$27,112
$21,000
$11,924
$7,362
$151
$9,757,356

70.4%
88.1%
73.1%
85.6%
90.8%
70.7%
76.9%
0.2%
88.1%
104.3%
100.0%
63.9%
51.2%
96.4%
88.4%
29.0%
81.4%
70.0%
62.1%
—
15.1%
76.1%

Property tax and sales tax are recorded later in the year: second-half property taxes are due October 31, and the State distributes sales tax about two months after the sale. The chart groups the fifteen smaller lines into one segment; the
table lists each under All Other Departments.

Presented By: James Rouse, Finance Director

FINANCIAL UPDATE TO CITY COUNCIL – NOVEMBER 10, 2026

Department

2026 Budget

Through 10/31

%

Public Works

$15,745,800

$10,814,130

68.7%

Light

$12,439,500

$8,477,327

68.1%

Finance

$5,674,800

$2,969,210

52.3%

Police

$5,277,424

$3,742,839

70.9%

Fire

$3,448,833

$2,731,723

79.2%

Parks and Recreation

$2,077,800

$1,622,630

78.1%

Administration

$1,921,343

$1,187,904

61.8%

Municipal Court

$595,900

$465,656

78.1%

Total All Funds

$47,181,400

$32,011,419

67.8%

Public Works

69%

Light

68%

Finance

52%

Police

71%

Fire

79%

Parks & Rec

78%

Administration

62%

Municipal Court

78%
0%

20%

40%

60%

80%

100%

Departments span every fund in which they operate. Budget excludes budgeted beginning and ending fund balance. Actual expenditures exclude capital asset additions (401 $182,632; 402 $110,825; 403 $0; 404 $5,940,283) and
principal debt payment (404 $631,976).

Presented By: James Rouse, Finance Director

QUESTIONS

CITY OF CHENE Y
CITY COUNCIL ACTION REQUEST
Issue: 2027 Budget – Public Hearing – Individual Budget
Presentation for Light and Public Works

Agenda Item #26-0091

Department of Origin: Finance

Date: 11/4/26

Exhibits/Documents Attached: General Government Department Budget Presentation for
Light and Public Works

Council Committee Recommendation
Yes (X)

No (X)

N/A (X)

Finance Committee
General Government Committee
Public Safety Committee
Public Works Committee
Notes:

Legal Review
Yes (X)

No (X)

Yes (X)

No (X)

Legal Review Complete?
Financial Impact
Has a financial impact statement been requested?
Is this expense budgeted in current budget?
Does department have capacity in current budget for expense?
Will a budget amendment be required?
Amount of Total Expense
Is this a one time or ongoing expense?
Provide revenue source for unbudgeted request
Describe what budgeted item/project will not occur to move funds
for this item/project

$

NA

Explanation of Request: 2027 Budget – Public Hearing – Presentation and discussion of Light and Public
Works departments

Council Action Requested: Public Hearing only – No action is requested

Council Meeting Date:

November 10, 2027

CITY COUNCIL PUBLIC HEARING

2027 Preliminary Budget
Department budgets · Light, Public Works · Utility rates ·
RCW 35A.33.055

November 10, 2026

2027 BUDGET AT A GLANCE
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

$14.92M

General Fund expenditures
2026 budget $12.83M

$13.17M

General Fund revenue
2026 projected $11.87M

$3.78M

General Fund balance
estimated 12/31/2027

$53.30M

All funds expenditures
excluding depreciation

All funds, 2027

Beginning balance

Revenue

Expenditures

Ending balance

General Fund

5,527,861

13,173,757

14,919,633

3,781,985

Streets

1,608,731

2,364,570

2,121,230

1,852,071

Public safety funds

1,372,593

1,461,797

1,917,762

916,628

Parks & Recreation

662,578

2,108,800

2,091,044

680,334

Other special revenue, debt & capital

1,600,793

2,716,756

3,277,562

1,039,987

Utilities & internal service

15,063,388

27,179,254

28,977,112

13,265,530

Total

25,835,944

49,004,934

53,304,343

21,536,535

Revenue includes transfers in. Expenditures exclude $3.70M of budgeted depreciation (non-cash). Beginning balance = 12/31/2025 cash and reserves plus the 2026 projection.

2

GENERAL FUND BALANCE
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

General Fund

2026 budget

2026 projected

2027 budget

Revenue

11,711,400

11,873,245

13,173,757

Expenditures

12,826,800

11,480,282

14,919,633

Difference

(1,115,400)

392,963

(1,745,876)

5,527,861

3,781,985

Ending fund balance
25% operating reserve
Above the reserve

3,729,908

Why 2026 ends better than budget
2026 was adopted with a $1.1M gap. It is
projected to end $393K ahead because of
vacancies, the unspent Mayor contingency
and lower spending than budgeted.
2027 carries the same contingencies: $350K
Mayor contingency and $50K emergency
overtime, spent only if needed. Unspent,
they leave the General Fund $452K above
the reserve.

52,077

Expenditures include the $350,000 transfer to Streets. 25% reserve = 25% of 2027 General Fund expenditures.

3

LIGHT – OVERVIEW
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

$13.39M

2027 budget, all funds

+11.1%

9

vs. 2026 budget

positions

7%

electric rate increase

Cheney's electric utility: power purchased from BPA and delivered over City-owned lines and the Four Lakes Substation to homes, businesses, EWU
and industry, plus street lights, pole attachments and conservation.

2026 highlights

2027 priorities and needs

•

•

Keep pace with BPA power costs: 7% rate increase

•

Joint use / warehouse specialist and pole attachment
system for full cost recovery

•

Wildfire readiness: red-flag weather stations, backyard
digger derrick

•

Four Lakes Substation bus work with Inland Power

•

Plan for lineman retirements (succession)

•

Purchased power about $1.15M under budget ($5.75M
vs. $6.9M)
New service hook-ups about $225,000, three times the
budget

•

Line equipment purchases: about $298,000

•

2027 electric rate sheet completed (10/28/26)

4

LIGHT – BUDGET
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026
All funds

2026 budget

2026 projected

2027 budget

1,378,800

1,584,885

1,844,410

517,600

571,558

717,481

6,900,000

5,750,000

7,100,000

Supplies

315,500

225,730

316,600

Services

1,467,600

1,159,528

1,419,086

Interfund charges

770,000

692,726

716,738

Capital outlay

701,000

313,524

1,275,000

12,050,500

10,297,951

13,389,315

Salaries & wages
Benefits
Purchased power

Total
Change vs. 2026 budget

Budget highlights
• Purchased power from BPA: $7.1M, about
53% of the budget
• Wages at IBEW contract rates, plus a new
joint use / warehouse specialist
• Overtime budgeted at $100,000, closer to
actual
• Central service charge down $198,741 under
the new cost allocation
• Operating result $676K before capital

+11.1%

Fund 401. Excludes depreciation and amortization ($475K, non-cash). Interfund = IT and central services; the IT share for the ERP, cloud and security system ($364,000) is shown as
capital.

5

LIGHT – CAPITAL
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

Item

Fund

Amount

Funded by

Capital project professional services

Light

215,000

Rates / reserves

City Hall HVAC replacement

Light

175,000

Rates / reserves

Tracked backyard digger derrick

Light

175,000

Rates / reserves

Four Lakes Substation bus work (with Inland Power)

Light

115,000

Rates / reserves

Electric safety demonstration trailer

Light

100,000

Rates / reserves

UTV with track kit

Light

55,000

Rates / reserves

Red-flag weather stations (3)

Light

25,000

Rates / reserves

City Hall doors / security upgrades

Light

20,000

Rates / reserves

Other capital items and asset adjustment

Light

31,000

Rates / reserves

Total

911,000

Also in capital: Light share of the IT charge for the ERP, cloud migration and security system ($364,000). Hook-up fees of $210K help fund capital.

6

PUBLIC WORKS – OVERVIEW
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

$19.17M

2027 budget, all funds

+21.4%

32

vs. 2026 budget

positions, plus 4 seasonal

$351K

General Fund net cost

Water, sewer and wastewater treatment, solid waste, streets, fleet and the fuel station, plus planning, building permits and inspection, and
engineering for every City project.

2026 highlights

2027 priorities and needs

•

Wastewater reuse project construction: about $5.8M

•

Remove PFAS from Well 5

•

Well 5 PFAS loan secured: $4.04M, 100% forgivable

•

•

Salnave Road federal STP grant in place for 2027:
$716,000

Backup generators for Wells 1, 2 and 3 for power
shutoffs

•

Salnave Road preservation

•

TIB street projects closed out; Elm Street Phase 2

•

Utility rates that cover the cost of service

•

Industrial park study funded by a CERB grant

•

Prepare for curbside recycling, required by 2030

7

PUBLIC WORKS – BUDGET
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026
By fund

2026 budget

2026 projected

2027 budget

General Fund (plan., bldg.,
admin)

1,121,800

1,141,696

1,467,620

Streets

3,042,300

2,623,924

2,121,230

Water

2,555,600

2,332,632

7,765,097

Solid Waste

1,851,100

1,662,501

2,600,151

Sewer

6,953,600

9,203,642

5,027,899

258,900

172,268

184,650

15,783,300

17,136,663

19,166,647

Equip. rental & shop
Total
Change vs. 2026 budget

Budget highlights
• Water: Well 5 PFAS treatment $4.04M
(forgivable loan) and well generators
$532,188
• Sewer: reuse project complete; fine screens,
flow meters, two trucks
• Solid Waste: replacement garbage truck
$400,000
• Streets: Salnave Road, crack/fog seal and
sidewalks
• New Utility Specialist; four seasonal workers

+21.4%

Excludes depreciation and amortization ($3.22M, non-cash). Streets = Street, Arterial, Residential Street, Street Equipment Reserve and Bicycle funds.

8

PUBLIC WORKS – CAPITAL
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

Item

Fund

Amount

Funded by

Well 5 PFAS treatment

Water

4,040,000

DWSRF loan (100% forgiven)

Salnave Road preservation and engineering

Streets

846,900

STP grant; 13.5% local match

Well generators - Wells 1, 2 and 3

Water

532,188

Water rates / reserves

Sewer fine screens (2) and flow meters

Sewer

445,000

Sewer rates / reserves

Replacement garbage truck

Solid Waste

400,000

Solid Waste rates / reserves

Vehicles: water, WWT, WWC, building, street water truck

Several

309,000

Fund reserves

SCADA servers and fiber

Water / Sewer

220,000

Water / Sewer rates

Residential crack/fog seal and sidewalks

Streets

203,000

Residential Street (utility tax)

Well #1 discharge piping; reuse close-out

Water / Sewer

125,000

Water / Sewer rates

Total

7,121,088

Utility funds also pay their share of the IT charge for the ERP, cloud migration and security system (Water $136,500, Sewer $136,500, Solid Waste $91,000).

9

2027 UTILITY RATES
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

Typical home, per month

2026

2027

Change

Electric (1,000 kWh)

$94.92

$101.55

+$6.63

Water (10 ccf)

$33.06

$35.05

+$1.99

Sewer

$43.96

$46.48

+$2.52

Garbage (64-gallon cart)

$20.26

$23.60

+$3.34

Total

$192.20

$206.68

+$14.48 (7.5%)

Other changes
• Electric: 7% on all customer classes; late
charge 1% to 5%
• Water: multi-family and large
commercial users pay the same tiers as
other customers
• Sewer: apartments move to the singlefamily rate
• Garbage: carts +16.5%; dumpsters +2%
to 8%
• Connection and growth charges +10%;
many service fees updated

Rates and fees are set in the utility rate resolutions (Exhibits A–D), effective January 1, 2027. Typical usage shown is an example; bills vary with use.

10

UTILITY AND STREET FUNDS
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

$31.09M

$29.54M

expenditures, 2027

incl. grants and loans

Light & Public Works funds

2027

$13.05M

Revenue

Utility fund balances
estimated 12/31/2027

$1.82M

Utility reserves used
mostly for capital

Beginning balance

Revenue

Expenditures

Ending balance

Light (401)

7,208,807

13,000,102

13,389,315

6,819,594

Water (402)

2,161,041

7,129,692

7,765,097

1,525,636

Solid Waste (403)

1,668,806

2,382,800

2,600,151

1,451,455

Sewer (404)

3,829,825

4,451,660

5,027,899

3,253,586

Streets (101-110)

1,608,731

2,364,570

2,121,230

1,852,071

93,567

211,300

184,650

120,217

16,570,777

29,540,124

31,088,342

15,022,559

Equip. Rental & Shop (510, 590)
Total

Revenue includes the Well 5 loan ($4.04M), grants and hook-up fees. Expenditures exclude depreciation (non-cash). Beginning balance = 12/31/2025 cash plus the 2026 projection.

11

REQUESTS NOT IN THE BUDGET
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

Request

Department

Amount

Fund

Reservoir painting, interior and exterior

Public Works

1,500,000

Water

Well generators - Wells 4, 5, 6 and 7

Public Works

946,250

Water

Curbside recycling truck and carts (required by 2030)

Public Works

900,000

Solid Waste

Line equipment: tensioner, cable puller, trailer, electric UTV

Light

510,000

Light

Additional lineman (succession planning, per year)

Light

225,901

Light

Distribution feeder upgrades

Light

125,000

Light

PW staff vehicle

Public Works

44,000

General Fund

Distribution standards

Light

35,000

Light

Not yet priced: N. 6th & Cedar, hydrant program, purple pipe
fill stations, aquifer recharge

Public Works

TBD

Various

Department requests (Form 4) not included in the preliminary budget. Council can add items before adoption. Curbside recycling: state equipment grants expected from July 2029.

12

NEXT STEPS
PUBLIC HEARING – 2027 PRELIMINARY BUDGET – NOVEMBER 10, 2026

Tonight: Public hearing on the Light and Public Works budgets and 2027 utility rates. No action requested.

Council direction: Requests not in the budget; utility rate resolutions.

November 24: Proposed budget discussion and governmental fees.

Adoption: Final budget hearing, 2027 budget ordinance and rate resolutions before year end.

13

CITY OF CHENE Y
CITY COUNCIL ACTION REQUEST
Issue: 2026 Lodging Tax Disbursement

Agenda Item #26-093

Department of Origin: Finance

Date: 11/4/26

Exhibits/Documents Attached: Resolution F-531
Tourism Promotion Agreement
Lodging Tax Application

Council Committee Recommendation
Yes (X)
Finance Committee
Lodging Tax Committee
General Government Committee
Public Safety Committee
Public Works Committee
Notes: Recommend funding 2026 Holiday Hoopla

No (X)

N/A (X)

X

Legal Review
Yes (X)

No (X)
X

Legal Review Complete?
Financial Impact
Yes (X)
Has a financial impact statement been requested?
Is this expense budgeted in current budget?
Does department have capacity in current budget for expense?
Will a budget amendment be required?

X
X

Amount of Total Expense

$15,300

No (X)
X

X

Is this a one time or ongoing expense?
One-time
Provide revenue source for unbudgeted request
Describe what budgeted item/project will not occur to move funds
NA
for this item/project
Explanation of Request:
The City has received the attached (1) lodging tax application from: CMA – Holiday Hoopla
The Advisory Committee is recommending full funding for Holiday Hoopla application.

Council Action Requested: Approval of Resolution F-531
Council Meeting Date:

11/10/26

City of Cheney, Washington
609 2nd Street
Cheney, WA 99004

CITY OF CHENEY
SPOKANE COUNTY, WASHINGTON
RESOLUTION F-531
A RESOLUTION APPROVING THE RECOMMENDATIONS OF THE LODGING TAX
COMMITTEE FOR THE DISBURSEMENT OF LODGING TAX FUNDS
WHEREAS, the City of Cheney, through RCW 67.28 and RCW 36.100.040 collects a
special excise tax on the sale or charge made for the furnishing of lodging; and
WHEREAS, the Lodging Tax is pledged to the City for (i) tourism marketing; (ii)
marketing and operations of special events and festivals designated to attract tourists; (iii)
supporting the operational and capital expenditures of tourism-related facilities owned or
operated by the City; (iv) supporting the operations of tourism-related facilities owned or
operated by nonprofit organizations; or (v) acquisition of tourism-related facilities.
WHEREAS, the City of Cheney has an established Lodging Tax Advisory Board to
review and make recommendations to the city for final determination of Lodging Tax revenue
disbursements; and
WHEREAS, the Lodging Tax Advisory Committee has met and made recommendations
for disbursement of the funds.
NOW, THEREFORE, be it resolved by the City Council of the City of Cheney, do hereby
approve the recommended funding request of the following:
CMA – Holiday Hoopla - $15,300
ADOPTED this 10th day of November, 2026 by the Cheney City Council at their
regularly scheduled City Council meeting.

Attest:
___________________________
Shellie Klinkenberg, City Clerk

____________________________
Elsa Martin, Mayor

AGREEMENT FOR TOURISM PROMOTION
Cheney Members Association – Holiday Hoopla

THIS AGREEMENT is made by and between the City of Cheney, a municipal
corporation of the State of Washington (the "City") and Cheney Members Association (the
"Contractor"). The City and Contractor are each sometimes referred to as a "Party" and
together to as the "Parties."
BACKGROUND
A.
The City, through RCW 67.28 et seq. and RCW 36.100.040, as applicable,
collects a special excise tax on the sale or charge made for the furnishing of lodging (the
"Lodging Tax"). The Lodging Tax is pledged to the City for (i) tourism marketing; (ii)
marketing and operations of special events and festivals designated to attract tourists; (iii)
supporting the operations and capital expenditures of tourism related facilities owned or operated
by the City; (iv) supporting the operations of tourism related facilities owned or operated by
nonprofit organizations; or (v) acquisition of tourism related facilities.
B.
The Lodging Tax may also be used for "tourism promotion" and acquisition or
operating of "tourism-related facilities."
C.
As provided for in RCW 67.28.080(6), State law defines "tourism promotion" as
"activities, operations and expenditures designed to increase tourism, including but not limited to
advertising, publicizing or otherwise distributing information for the purpose of attracting and
welcoming tourists; developing strategies to expand tourism; operating tourism promotion
agencies; and funding the marketing of or the operation of special events and festivals designed
to attract tourists."
D.
State law also defines "tourism related facilities" as "real or tangible personal
property with a usable life of three or more years . . . [that is] (1) owned by a public entity; (2)
owned by a non-profit organization described under Section 501(c)(3) of the Federal Internal
Revenue Code of 1986, as amended or owned by a non-profit organization described under
Section 501(c)(6) of the Federal Internal Revenue Code of 1986, as amended, a business
organization, destination marketing organization, Main Street organization, lodging association
or chamber of commerce; and (3) used to support tourism, performing arts, or to accommodate
tourist activities," all as described in RCW 67.28.080(7).
E.
To fairly and reasonably allocate the Lodging Tax, the City established a Lodging
Tax advisory committee (the "Advisory Committee") to review and make recommendations to
the City for final determination of Lodging Tax revenue disbursement.
F.
This Agreement implements the recommendations of the Advisory Committee
and sets forth the terms and conditions for use of the Lodging Tax.
AGREEMENT
The Parties agree as follows:
Page 1 of 4

1.
Work to Be Performed. The Contractor will furnish all equipment, supplies,
material and labor to provide: tourism promotion and operation of tourism related facilities, as
described above and on the attached Exhibit A (hereinafter, "Scope of Work").
The City's mayor (the "Mayor") or designee shall administer and be the primary contact
for Contractor.
A.
Modifications. The City may modify this Agreement and order changes in the
work whenever necessary or advisable. The Contractor will accept modifications when ordered
in writing by the Mayor or Mayor's designee. Compensation for such modifications or changes
shall be as mutually agreed between the Parties. Upon notice from the City, Contractor shall
promptly cure any failure in performance under this Agreement without additional
compensation.
B.
Representations. By execution of this Agreement, Contractor represents that the
Lodging Tax will be used according to the Scope of Work in accordance with federal, state, and
local laws, rules, and regulations. No substitutions of purpose or change in the use of the funds
shall be made without the written consent of the City.
2.
Term of Contract. This Agreement shall be in full force and effect upon the
Effective Date and shall terminate on December 31, 2026 ("Initial Term"). Either Party may
terminate this Agreement by sixty (60) days written notice to the other Party. If Contractor is in
default or breach of any term, or condition of this Agreement, the City may terminate this
Agreement upon five (5) days written notice. In the event of such termination, the City shall pay
the Contractor for all work previously authorized and satisfactorily performed prior to the
termination date.
3.
Compensation and Payment. The City agrees to pay the Contractor $15,300.
The Contractor will be paid after contract signature with a full accounting and receipts for use of
funds to be received within 30 days.
The City reserves the right to withhold payment under this Agreement which is
determined in the reasonable judgment of the Mayor to be noncompliant with the Scope of
Work, federal, state or City laws, rules, or regulations or if there are insufficient Lodging Tax
funds to disburse according to the discretion of the City.
4.

Notice. Notice shall be given in writing as follows:

TO THE CITY:

TO THE CONTRACTOR:

City of Cheney
Attn: James Rouse
609 2nd Street
Cheney, WA 99004

Name: Cheney Merchants Association
Attn: Cassie Day
Address: 1921 1st Street, PMB 1000
Cheney, WA 99004

5.
Contractor's Reporting Requirements. The Contractor shall submit a report to
the City, before December 31, 2026, following the Initial Term that describes the actual number
of people traveling for business or pleasure on a trip as a direct result of this Scope of Work: (a)
Page 2 of 4

away from their place of residence or business who stayed overnight in paid accommodations;
(b) to a place 50 miles or more (one way) from their place of residence or business for either the
day or overnight accommodation; or (c) from another country or state outside of their place of
residence or business.
The above report shall be made available for public inspection. The City shall furnish
copies of the report to the joint legislative audit and review committee and members of the
Advisory Committee. Contractor, in consultation with the City, shall develop a survey or form
that identifies the distance people have traveled for business or pleasure, whether they have
stayed overnight in paid accommodations, whether they are attending an event sponsored or
promoted by Contractor, and such other agreed information.
6.
Applicable Laws and Standards. The parties, in the performance of this
Agreement, agree to comply with all applicable Federal, State, Local laws, City ordinances, and
regulations.
7.
Relationship of the Parties. It is hereby understood, agreed and declared that the
Contractor shall be an independent Contractor and not the agent or employee of the City, that the
City is interested in only the results to be achieved and that the right to control the particular
manner, method and means in which the services are performed is solely within the discretion of
the Contractor. Any and all employees who provide services to the City under this Agreement
shall be deemed employees solely of the Contractor. The Contractor shall be solely responsible
for the conduct and actions of all employees under this Agreement and any liability that may
attach thereto.
8.
Insurance. Contractor shall purchase and maintain during the term of this
Agreement a comprehensive general liability policy in the amount of $1,000,000.00 per
occurrence with the City as an additional named insured. A copy of the certificate shall be
provided to the City. Notice of cancellation of such insurance shall be given to the City by
Contractor's insurer.
9.
Indemnification and Hold Harmless. Each Party shall indemnify and hold the
other, its officers, employees, agents and volunteers harmless from and against any and all
claims, demands, orders, decrees or judgments for injuries, death or damage to any person or
property arising or resulting from any act or omission on the part of said Party or its agents,
employees or volunteers in the performance of this Agreement.
10.
Assignment and Delegation. Neither Party shall assign, transfer or delegate any
or all of the responsibilities of this agreement or the benefits received hereunder without first
obtaining the written consent of the other Party.
11.
Jurisdiction, Venue and Dispute Resolution. This Contract is entered into in
Spokane County, Washington. Venue shall be in Spokane County, State of Washington. Prior to
initiating litigation the parties shall engage in mediation where monetary damages are sought as a
remedy. The cost of mediation shall be shared between the Parties. The mediator shall be
jointly selected by the Parties or where there is no agreement by the Presiding Judge of the
Superior Court.
Page 3 of 4

12.
Cost and Attorney's Fees. In the event a lawsuit is brought with respect to this
Agreement, the prevailing Party shall be awarded its costs and attorney's fees in the amount to be
determined by the Court as reasonable. Unless provided otherwise by statute, Contractor's
attorney fees payable by the City shall not exceed the lump sum amount of this Agreement.
13.
Entire Agreement. This written Agreement constitutes the entire and complete
agreement between the parties and supercedes any prior oral or written agreements. This
Agreement may not be changed, modified or altered except in writing signed by the parties
hereto.
14.

Exhibits. Exhibits attached and incorporated into this Agreement are:
(i)

Exhibit A - Scope of Work – Contractor's Proposal as accepted by
the Advisory Committee and City.

IN WITNESS WHEREOF, the parties have executed this Agreement this 8th day of
September, 2026 (the "Effective Date").
CITY OF CHENEY:

CONTRACTOR:

____________________________________
Elsa Martin, Mayor

____________________________________
Executive with signing authority
Tax I.D. No.: ________________________

ATTEST:
____________________________________
Shellie Klinkenberg, City Clerk

Page 4 of 4

CITY OF CHENE Y
CITY COUNCIL AC TION REQUEST
Issue: 2027 Utility Rates and Fees

Agenda Item #26-094

Department of Origin: Finance

Date: 11/4/26

Exhibits/Documents Attached: Resolution F-532
Exhibits A, B, C, and D

Council Committee Recommendation
Yes (X)

No (X)

N/A (X)

Finance Committee
General Government Committee
Public Safety Committee
Public Works Committee
Notes:

Legal Review
Yes (X)

No (X)

Legal Review Complete?
Financial Impact
Yes (X)
Has a financial impact statement been requested?
Is this expense budgeted in current budget?
Does department have capacity in current budget for expense?
Will a budget amendment be required?

X
X

Amount of Total Expense

$

Is this a one time or ongoing expense?
Provide revenue source for unbudgeted request
Describe what budgeted item/project will not occur to move funds
for this item/project

No (X)
X

NA

Explanation of Request:
The attached resolution will set 2027 utility rates for electric, water, solid waste, and sewer. The first
regular billing for the new utility rates will be on January 31, 2027.

Council Action Requested:
Approval of Resolution F-532
Council Meeting Date:

11/10/26

City of Cheney, Washington
609 Second Street
Cheney, WA 99004

CITY OF CHENEY, WASHINGTON
RESOLUTION NO. F-532
A RESOLUTION OF THE CITY OF CHENEY, SPOKANE COUNTY, WASHINGTON,
ESTABLISHING THE ELECTRIC, WATER, SOLID WASTE AND SEWER RATES,
FEES AND CHARGES FOR THE CITY.
WHEREAS, the City owns and operates an electrical, water, solid waste, and sewer
system for the residents and businesses in the City of Cheney; and
WHEREAS, rates, fees, and charges are designed to recover the cost of providing the
utilities and services; and
WHEREAS, the City Council has approved Resolution F-217, approving a multi-year rate
increase for both Solid Waste and Sewer utilities and services; and
WHEREAS, the City Council will study the rate increases approved in Resolution F-217
and approve rates annually for all Solid Waste and Sewer utilities and services; and
NOW, THEREFORE, be it resolved by the City Council of the City of Cheney, Spokane
County, Washington the following:
1.

Rates, Fees and Charges. For the purpose of setting the rates, fees, and charges
within the City of Cheney, the City Council hereby adopts the utility rate
schedules attached hereto as Exhibit “A” (Electric), Exhibit “B” (Water), Exhibit
“C” (Solid Waste) and Exhibit ”D” (Sewer).

2.
Revoking Prior Rate Setting Resolutions. The Electric, Water, Solid Waste, and
Sewer rates attached to Resolution F-436 as Exhibits “A”, “B”, “C”, and “D” are hereby revoked.
3.
Effective Date. This Resolution and the said rates for all utility rates attached
hereto as Exhibit “A”, Exhibit “B”, Exhibit “C”, and Exhibit “D” will be effective for all active
and final bills rendered after January 1, 2027 until changed by council approved resolution.
4.
Reservation of Rights. City Council reserves the right, by subsequent resolution,
to make modifications to the rate structures adopted pursuant to this Resolution to ensure that rates
will adequately recover the cost of providing solid waste and sewer utilities and services.

Adopted by the City Council this date: November 10, 2026.

Elsa Martin, Mayor
Attest:

Shellie Klinkenberg, City Clerk

Exhibit A - Electric Rates and Charges for Services

CMC Code

Fee Description

14.04.160

Late Charges

14.04.160

Disconnect Order Notice Fee

14.04.160
14.04.160
14.04.160
14.04-160
14.04.160
14.04-185

Disconnect Fee
Disconnect Extension Fee
After Hours Connect/Reconnect Fee
Business Hours Reconnect at the Pole
After Hours Reconnect at the pole
Unauthorized Use (tampering)

14.04.190

14.04.190
14.04.200
14.04.200
14.04.200
14.04.200
14.04.200

Residential and Temporary Service Access to electricity charge -Single
Phase
Residential and Temporary Service Access to Electricity Charge - 3
Phase
Residential and Temporary Service Energy Charge
Commercial Access to electricity Charge (Single phase)
Commercial Access to Electricity Charge (Three phase)
Commercial Energy Charge 0-15,000 kWh per month
Commercial Energy Charge Over 15,000 kwh per month
Commercial Billing Demand Charge – First 40kW of demand per month

14.04.200

Commercial Billing Demand Charge – Above 40kW of demand per month

14.04.248
14.04.248
14.04.248
14.04.210

2024 Fees

2025 Fees

2026 Fees

Res. F-195
1% or $1.00
minimum
$30.00

Res. F-299
1% or $1.00
minimum
$30.00

Res. F-436
1% or $1.00
minimum
$30.00

$300.00
$300.00
$600.00
$300.00
$18.69

$300.00
$300.00
$600.00
$300 + 3x
usage
$19.92

$300.00
$300.00
$600.00
$500 + 3x
usage
$20.42

$31.51

$33.58

$0.0680
$22.26
$32.25
$0.0679
$0.0473
$0.00

2027 Proposed

Change Basis for 2027

Res. F-532
5% or $1.00
minimum
$50.00
$50.00
$400.00
$400.00
$750.00
$600 + 3x usage

No longer needed with updated Disconnect Policy

33.3%
33.3%
25.0%

$21.85

7.0%

$34.43

$36.84

7.0%

$0.0727
$23.48
$34.02
$0.0716
$0.0499
$0.00

$0.0745
$23.95
$34.02
$0.0730
$0.0509
$0.00

$0.0797
$25.63
$36.40
$0.0781
$0.0545
$0.00

7.0%
7.0%
7.0%
7.0%
7.1%

$6.40

$6.75

$6.89

$7.37

7.0%

Industrial Access to Electricity Charge
Industrial Energy Charge kWh per month
Industrial Billing Demand Charge

$80.35
$0.0460
$6.16

$83.16
$0.0471
$6.38

$83.99
$0.0476
$6.44

$89.87
$0.0509
$6.89

7.0%
6.9%
7.0%

$17.61

$18.28

$18.41

$19.70

7.0%

$29.69

$30.73

$31.04

$33.21

7.0%

14.04.210
14.04.210
14.04.210
14.04.210

Public Authority Access Electricity Charge (Single phase& production
meters)
Public Authority Access Electricity Charge (Three phase & production
meters)
Public Authority Energy charge 0-15000 kWh per month
Public Authority Energy charge Over 15,000 kWh per month
Public Authority Demand charge First 40kW of demand per month
Public Authority Billing Demand Charge above 40kW of demand/ month

$0.0653
$0.0453
No Charge
$6.16

$0.0676
$0.0469
No Charge
$6.38

$0.0683
$0.0474
No Charge
$6.44

$0.0731
$0.0507
No Charge
$6.89

7.0%
7.0%

14.04.245
14.04.245
14.04.245
14.04.248
14.04.248
14.04.248
14.04-255

University EWU Access to Electricity Charge
University – Energy Charge kWh per month
University - Demand per month
Large Primary Access to Electricity Charge
Large Primary Service – Energy Charge kWh per month
Large Primary Service
Connect Charges

$107.12
$0.0450
$5.55
$53.56
$0.0450
$5.55
$15.00

$110.87
$0.0461
$5.74
$55.43
$0.0461
$5.74
$20.00

$111.19
$0.0466
$5.80
$55.98
$0.0466
$5.80
$20.00

$118.97
$0.0499
$6.21
$59.90
$0.0499
$6.21
$30.00

7.0%
7.1%
7.1%
7.0%
7.1%
7.1%
50.0%

14.04.190

14.04.210

7.0%

CMC Code

Fee Description

2024 Fees

2025 Fees

2026 Fees

14.08.040
14.08.050

New Services Overhead / Full Cost of Installation - $250 minimum
New Services Underground / Full Cost of Installation - $250 minimum

Res. F-195
$200.00
$200.00

Res. F-299
$250.00
$250.00

Res. F-436
$250.00
$250.00

Res. F-532
$350.00
$350.00

14.04-240
14.04.240

Temporary Service - Single Phase 120/240 - where pole is in place
Temporary Service requiring line extension

14.08.060
14.08.070
14.04.220
14.04.230
14.04.230
14.04.230
14.04.230
14.04.230
14.10.080
14.10.140

$250.00
Full cost of
extension
$15.00
$25.00
$3.25
$12.50
$11.50
$8.50
$7.00
$15.00
$15.50
$45.00

$250.00
Full cost of
extension
$25.00
$25.00
$3.25
$13.00
$12.00
$9.00
$7.50
$16.00
$17.00
$200.00

$350.00
Full cost of
extension
$30.00
$40.00
$5.00
$18.00
$15.00
$13.00
$11.00
$21.00
$30.10
$300.00

14.10.030
14.10.030
14.10.080
14.10.080
14.10.080
14.10.080
14.10.080
14.20.050

Change Date for Service Fee/ each time
Address Correction Fee
Flat Rate Street Lighting
Outdoor Light 250 Watt HPS or LED Equivalent
Outdoor Light 200 Watt HPS or LED Equivalent
Outdoor Light 150 Watt HPS or LED Equivalent
Outdoor Light 100 Watt HPS or LED Equivalent
Unmetered Service (sign, bus shelter, etc.)
Pole Attachment Fees: Pole Attachment Fee/per attachment
Pole Attachment Fees: Unauthorized Attachment Penalty/per attachment
(plus 5 years back rent based on previous year's rate)
Pole Attachment Fees: Failure to Transfer and Pull Old Pole
Pole Attachment Fees: Failure to Maintain Emergency Contact
Pole Attachment Fees: Annual interest rate on unpaid fees – 12%
Pole Attachment Fees: Pole Attachment App Fee/1st pole
Pole Attachment Fees: Pole Attachment App –Additional Poles
Street Light Banner Fees: Application Fees
Street Light Banner Fees: Banner Hanging Fee
Net Metering: Inverter Based Generating Facility: App Fee
0-25 kW

$200.00
Full cost of
extension
$10.00
$25.00
$2.75
$10.50
$10.50
$7.85
$6.30
$12.00
$13.50
$40.00

$250.00
12%
$65.00
$3.00
$50.00
$5.00
$100.00

$300.00
12%
$200.00
$5.00
$100.00
$10.00
$100.00

$300.00
12%
$300.00
$20.00
$100.00
$10.00
$100.00

$500.00
$400.00
12%
$500.00
$30.00
$200.00
$40.00
$150.00

33.3%
66.7%
50.0%
100.0%
300.0%
50.0%

14.20.050

Net Metering: Inverter Based Generating Facility: App Fee

$500.00

$500.00

$500.00

$600.00

20.0%

25-100 kW

2027 Proposed

Change Basis for 2027
40.0%
40.0%
40.0%

20.0%
60.0%
53.8%
38.5%
25.0%
44.4%
46.7%
31.3%
77.1%
50.0%

Exhibit B - Water Rates and Charges for Services

CMC Code
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080

Fee Description

2024 Fees

2025 Fees

2026 Fees

Residential Water Service Base Rate (per month)
Multi Unit Base Rate (per unit / per month)
Commercial, School, and Industrial 1-1.5" Meter (per month)
Commercial, School, and Industrial 2" Meter (per month)
Commercial, School, and Industrial 3" Meter (per month)
Commercial, School, and Industrial 4" Meter (per month)
Commercial, School, and Industrial 6" Meter (per month)
Commercial, School, and Industrial 8" Meter (per month)
Commercial, School, and Industrial Compound Water Service Minimum

Res. F-195
$11.80
$10.50
$28.46
$51.86
$79.40
$193.68
$393.31
$420.79
$5.04

Res. F-299
$12.51
$10.50
$31.80
$57.96
$88.73
$216.43
$439.53
$420.79
$5.04

Res. F-436
$13.26
$10.50
$35.54
$64.77
$99.16
$241.86
$491.17
$420.79
$5.04

Res. F-532
$14.05
$12.22
$39.72
$72.38
$110.80
$270.28
$548.88
$575.48
$6.70

$23.44
$28.38
$54.80
$17.75
$21.50
$41.51

$30.93
$37.47
$72.33
$17.75
$21.50
$41.51

$40.83
$49.64
$95.48
$17.75
$21.50
$41.51

$53.30
$65.28
$126.03
$53.30
$65.28
$126.03
$235.95

30.5%
31.5%
32.0%
200.3%
203.6%
203.6%

Park - 1-1.5" Meter (per month)
16.04.080
Park - 2" Meter (per month)
16.04.080
Park - 3" Meter (per month)
16.04.080
Gen Govt Facilities - 1-1.5" Meter (per month)
16.04.080
Gen Govt Facilities - 2" Meter (per month)
16.04.080
Gen Govt Facilities - 3" Meter (per month)
16.04.080
Gen Govt Facilities - 8" Meter (per month)
16.04.080
CMC 16.04.080- Water Usage Fee + Base Rate
Residential Water Usage Fee (<3,000 c.f.) Per 100 cubic feet
16.04.080
Residential Water Usage Fee (>3,000 c.f.) Per 100 cubic feet
16.04.080
Multi-Family Water Usage Fee (<3,000 c.f.) Per 100 cubic feet
16.04.080
Multi-Family Water Usage Fee (>3,000 c.f.) Per 100 cubic feet
16.04.080
Commercial Water Usage Fee (<3,000 c.f.) Per 100 cubic feet
16.04.080
Commercial Water Usage Fee (>3,000 c.f.) Per 100 cubic feet
16.04.080
Park Potable Water Usage Fee Per 100 cubic feet
16.04.080
Park - Water Usage Fee - < 1" meter (> 5000 cubic feet)
16.04.080
Park - Water Usage Fee - 1-1.5" meter ( > 30,000 cubic feet)
16.04.080
Park - Water Usage Fee - 2" meter (> 55,000 cubic feet)
16.04.080
Park - Water Usage Fee - 3", 4",6" meter (> 80,000)
16.04.080
Gen Govt Facilities Water Usage Fee per 100 cubic feet
16.04.080
Gen Govt Facilities - Water Usage Fee - < 1" (>5000 cubic feet)
16.04.080
Gen Govt Facilities Water Usage Fee - 1-1.5"( > 30,000 cubic feet)
16.04.080
16.04.080
16.04.080

Gen Facilities - Water Usage Fee - 2" ( > 55,000 cubic feet)
Gen Govt Facilities - Water Usage Fee - 3",4",6" (> 80,000 cubic feet)

Well #4 Irrigation Water Fees
Park - Irrigation Water Fee per 100 cubic feet
16.04.080
16.04.080

Gen Govt Facilities - Irrigation Water Fee per 100 cubic feet

Reuse Water Fees

2027 Proposed

Change Basis for 2027
6.0%
16.4%
11.8%
11.7%
11.7%
11.8%
11.7%
36.8%
32.9%

New fee

$1.76
$3.53
$1.57
$1.57
$1.96
$1.96
$0.10
$2.74
$2.74
$2.74
$2.74
$0.10
$2.74
$2.74

$1.87
$3.74
$1.57
$1.57
$2.19
$2.19
$0.14
$3.61
$2.74
$2.74
$2.74
$0.10
$2.74
$2.74

$1.98
$3.96
$1.57
$1.57
$2.45
$2.45
$0.19
$4.77
$2.74
$2.74
$2.74
$0.10
$2.74
$2.74

$2.10
$4.20
$2.10
$4.20
$2.74
$5.48
$2.10
$5.48
$6.29
$6.29
$6.29
$2.10
$5.48
$6.29

6.1%
6.1%
33.8%
167.5%
11.8%
123.7%
1005.3%
14.9%
129.6%
129.6%
129.6%
2000.0%
100.0%
129.6%

$2.74
$2.74

$2.74
$2.74

$2.74
$2.74

$6.29
$6.29

129.6%
129.6%

$0.96

New fee

$0.96

New fee

CMC Code

Fee Description

16.04.080

Park - Reuse Water Fee per 100 cubic feet

16.04.080

Park - Reuse Water Fee per acre foot

16.04.080

Gen Govt Facilities - Reuse Water Fee per 100 cubic feet

16.04.080

Gen Govt Facilities - Reuse Water Fee per acre foot

CMC 16.04.080-Growth Capacity Connection Charges
New Connection Single Family Residential
16.04.080
New Connection 1” Meter
16.04.080
New Connection 1.5” Meter
16.04.080
New Connection 2” Meter
16.04.080
New Connection 3” Meter
16.04.080
New Connection 4” Meter
16.04.080
New Connection 6" Meter
16.04.080
New Connection 8” Meter
16.04.080
CMC 16.04.080- Connection Charges
Regular Connect Charge
16.04.080
After Hours Connect
16.04.080
Failure To Connect Penalty
16.04.080
CMC 16.04.080- Miscellaneous Fees
Hydrant Meter Deposit - Commercial
16.04.080
Fire Hydrant or Fire Protection Standby Charge - 4" or Less
16.04.080
Fire Hydrant or Fire Protection Standby Charge - Over 4"
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080
16.04.080

Fire Hydrant or Fire Protection Standby Charge - EWU
Fire System Protection Connections ( per inch diameter / per month)
Hydrant Permit Fee
Hydrant Permit Water Usage (per 100 cubic feet)
Temporary Connections plus water usage fees
Hydrant, Valve, Meter Tampering/Unauthorized Use Fee
Service Meter Rereading
Minimum Delinquent Interest Charge

Max Penalty for Violations (CMC 16.04.150-Ordiance N-22)

2024 Fees

2025 Fees

2026 Fees

2027 Proposed

Res. F-195

Res. F-299

Res. F-436

Res. F-532
Pending FCS
rate study
Pending FCS
rate study
Pending FCS
rate study
Pending FCS
rate study

Change Basis for 2027
New fee
New fee
New fee
New fee

$2,536
$5,760
$11,520
$18,433

$2,536
$5,760
$11,520
$18,433

$2,536
$2,790
$5,760
$6,336
$11,520 No longer install
$18,433
$20,276

10.0% Will review/investigate further in 2027
10.0% Will review/investigate further in 2027
PW: no longer installed
10.0% Will review/investigate further in 2027

$36,865
$57,602
$115,204
$184,326

$36,865
$57,602
$115,204
$184,326

$36,865
$57,602
$115,204
$184,326

$40,552
$63,362
$126,724
$202,759

10.0% Will review/investigate further in 2027
10.0% Will review/investigate further in 2027
10.0% Will review/investigate further in 2027
10.0% Will review/investigate further in 2027

$5.00

$5.00

$5.00

$20.00

300.0%

$70.50
$70.50
$70.50
Actual Connect Actual Connect Actual Connect

$150.00
Actual Connect

112.8%

$500.00
$5.00
$10.00

$500.00
$5.00
$10.00

$500.00
$5.00
$10.00

$500.00
$10.00
$20.00

100.0%
100.0%

$45.35
$0.91
$50.00
$1.66
$100.00

$45.35
$0.91
$50.00
$1.66
$100.00

$45.35
$0.91
$50.00
$1.66
$100.00

100.0%
100.0%
300.0%
278.9%
100.0%

$10.00
1% or $1.00
minimum

$10.00
1% or $1.00
minimum

$10.00
1% or $1.00
minimum

$90.70
$1.82
$200.00
$6.29
$200.00
$500.00
$50.00
1% or $1.00
minimum

New fee
400.0%

Exhibit C - Garbage (Solid Waste) Rates and Charges for Services

CMC Code

Fee Description

2024 Fees

2025 Fees

2026 Fees

2027 Proposed

Res. F-209

Res. F-299

Res. F-436

Res. F-532

Change Basis for 2027

Solid Waste Charges
Residential 20 Gallon Cart - Mini Can per month
8.12.212
Residential 64 Gallon Cart per month
8.12.212
Residential 96 Gallon Cart per month
8.12.212
Residential/Commercial Cart Over Filled-20 Gallon Cart-Mini Can/trip
8.12.212
Residential / Commercial Cart Over Filled - 64 Gallon Cart per trip
8.12.212
Residential / Commercial Cart Over Filled - 96 Gallon Cart per trip
8.12.212
Residential / Commercial - Per Additional Can
8.12.212
Residential / Commercial - Extra per each bag/box
8.12.212
Residential Carry-out Service (over 10' to 50') per cart per month
8.12.212
Residential Carry-out Service (each additional 50') per cart per month
8.12.212

$9.83
$14.43
$21.88
$2.00
$2.97
$4.50
$7.69
$3.44
$4.00
$3.00

$11.72
$17.21
$26.09
$2.00
$2.97
$4.50
$7.69
$3.44
$4.00
$3.00

$13.80
$20.26
$30.72
$2.00
$2.97
$4.50
$7.69
$3.44
$4.00
$3.00

$16.08
$23.60
$35.79
$5.00
$5.97
$7.50
$12.00
$7.44
$6.00
$5.00

16.5%
16.5%
16.5%
150.0%
101.0%
66.7%
56.0%
116.3%
50.0%
66.7%

8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212

Residential Carry-out Service Unlatch/open/close/gate per month
Commercial Cart 64 Gallon Cart 1 time a week per month
Commercial Cart 64 Gallon Cart 2 times a week per month
Commercial Cart 64 Gallon Cart 3 times a week per month
Commercial Cart 64 Gallon Cart 4 times a week per month
Commercial Cart 64 Gallon Cart 5 times a week per month
Commercial Cart 96 Gallon Cart 1 time a week per month
Commercial Cart 96 Gallon Cart 2 times a week per month
Commercial Cart 96 Gallon Cart 3 times a week per month
Commercial Cart 96 Gallon Cart 4 times a week per month
Commercial Cart 96 Gallon Cart 5 times a week per month
Commercial Dumpster Service - 1 yard - 1 time a week per month
Commercial Dumpster Service - 1 yard - 2 times a week per month
Commercial Dumpster Service - 1 yard - 3 times a week per month
Commercial Dumpster Service - 1 yard - 4 times a week per month
Commercial Dumpster Service - 1 yard - 5 times a week per month
Commercial Dumpster Service - 1.5 yard - 1 time a week per month
Commercial Dumpster Service - 1.5 yard - 2 times a week per month

$2.24
$12.62
$25.24
$37.86
$50.48
$63.10
$19.61
$39.22
$58.83
$78.44
$98.05
$69.07
$138.14
$207.21
$276.28
$345.35
$89.04
$178.08

$2.24
$12.62
$25.24
$37.86
$50.48
$63.10
$19.61
$39.22
$58.83
$78.44
$98.05
$69.07
$138.14
$207.21
$276.28
$345.35
$89.04
$178.08

$2.24
$12.62
$25.24
$37.86
$50.48
$63.10
$19.61
$39.22
$58.83
$78.44
$98.05
$69.07
$138.14
$207.21
$276.28
$345.35
$89.04
$178.08

$5.00
$16.08
$32.16
$48.24
$64.32
$80.40
$23.60
$47.20
$70.80
$94.40
$118.00
$70.45
$140.90
$211.35
$281.81
$352.26
$90.82
$181.64

123.2%
27.4%
27.4%
27.4%
27.4%
27.4%
20.3%
20.3%
20.3%
20.3%
20.3%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%

8.12.212

Commercial Dumpster Service - 1.5 yard - 3 times a week per month

$267.12

$267.12

$267.12

$272.46

2.0%

8.12.212

Commercial Dumpster Service - 1.5 yard - 4 times a week per month

$356.16

$356.16

$356.16

$363.28

2.0%

8.12.212

Commercial Dumpster Service - 1.5 yard - 5 times a week per month

$445.20

$445.20

$445.20

$454.10

2.0%

8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212

Commercial Dumpster Service - 2 yard - 1 time a week per month
Commercial Dumpster Service - 2 yard - 2 times a week per month
Commercial Dumpster Service - 2 yard - 3 times a week per month
Commercial Dumpster Service - 2 yard - 4 times a week per month
Commercial Dumpster Service - 2 yard - 5 times a week per month
Commercial Dumpster Service - 3 yard - 1 time a week per month

$111.82
$223.64
$335.46
$447.28
$559.10
$157.56

$111.82
$223.64
$335.46
$447.28
$559.10
$160.73

$111.82
$223.64
$335.46
$447.28
$559.10
$163.87

$114.06
$228.11
$342.17
$456.23
$570.28
$167.04

2.0%
2.0%
2.0%
2.0%
2.0%
1.9%

CMC Code

Fee Description

2024 Fees

2025 Fees

2026 Fees

8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212

Commercial Dumpster Service - 3 yard - 2 times a week per month
Commercial Dumpster Service - 3 yard - 3 times a week per month
Commercial Dumpster Service - 3 yard - 4 times a week per month
Commercial Dumpster Service - 3 yard - 5 times a week per month
Commercial Dumpster Service - 4 yard - 1 time a week per month
Commercial Dumpster Service - 4 yard - 2 times a week per month
Commercial Dumpster Service - 4 yard - 3 times a week per month
Commercial Dumpster Service - 4 yard - 4 times a week per month
Commercial Dumpster Service - 4 yard - 5 times a week per month
Commercial Dumpster Service - 6 yard - 1 time a week per month
Commercial Dumpster Service - 6 yard - 2 times a week per month
Commercial Dumpster Service - 6 yard - 3 times a week per month
Commercial Dumpster Service - 6 yard - 4 times a week per month
Commercial Dumpster Service - 6 yard - 5 times a week per month
Commercial Dumpster Service - 8 yard - 1 time a week per month
Commercial Dumpster Service - 8 yard - 2 times a week per month
Commercial Dumpster Service - 8 yard - 3 times a week per month
Commercial Dumpster Service - 8 yard - 4 times a week per month
Commercial Dumpster Service - 8 yard - 5 times a week per month
Commercial Roll Off Service-10 yd roll off-per pickup

Res. F-209
$309.10
$463.65
$618.20
$772.75
$197.17
$394.34
$591.51
$788.68
$985.85
$282.65
$576.30
$847.95
$1,130.60
$1,413.25
$394.34
$788.68
$1,183.02
$1,577.36
$1,971.70
$148.87 +
Disposal Cost

Res. F-299
$309.10
$463.65
$618.20
$772.75
$197.17
$394.34
$591.51
$788.68
$985.85
$282.65
$587.90
$847.95
$1,130.60
$1,413.25
$394.34
$788.68
$1,183.02
$1,577.36
$1,971.70
$157.80 +
Disposal Cost

Res. F-436
$309.10
$463.65
$618.20
$772.75
$197.17
$394.34
$591.51
$788.68
$985.85
$282.65
$599.39
$847.95
$1,130.60
$1,413.25
$394.34
$788.68
$1,183.02
$1,577.36
$1,971.70
$167.27 +
Disposal Cost

Res. F-532
$334.08
$501.12
$668.16
$835.20
$201.11
$402.22
$603.33
$804.44
$1,005.55
$305.50
$611.00
$916.50
$1,222.00
$1,527.50
$402.22
$804.45
$1,206.68
$1,608.90
$2,011.13
$177.31 +
Disposal Cost

8.12.212

Commercial Roll Off Service-20 yd roll off-per pickup

$145.72 +
Disposal Cost

$145.72 +
Disposal Cost

$145.72 +
Disposal Cost

$154.03 +
Disposal Cost

5.7%

8.12.212

Commercial Roll Off Service-30 yd roll off-per pickup

$151.00 +
Disposal Cost

$151.00 +
Disposal Cost

$151.00 +
Disposal Cost

$159.61 +
Disposal Cost

5.7%

8.12.212

Commercial Roll Off Service-40 yd roll off-per pickup

$156.28 +
Disposal Cost

$156.28 +
Disposal Cost

$156.28 +
Disposal Cost

$165.19 +
Disposal Cost

5.7%

8.12.212
8.12.212

Construction/Demolition Waste *Dumpster single yard per pick up
Commercial Compacted Garbage-Compactor single yard per pick up

$20.64
$47.37

$20.64
$47.37

$20.64
$47.37

$25.80
$59.21

25.0%
25.0%

$300.00
$25.00
$75.00
$4.50
$20.64
$7.00
$15.00
$20.64
$75.00
$1.00

$300.00
$25.00
$75.00
$4.50
$20.64
$7.00
$15.00
$20.64
$75.00
$1.00

$300.00
$25.00
$75.00
$4.50
$20.64
$7.00
$15.00
$20.64
$75.00
$1.00

$300.00
$50.00
$125.00
$5.00
$35.00
$12.00
$25.00
$35.00
$90.00
$1.25

100.0%
66.7%
11.1%
69.6%
71.4%
66.7%
69.6%
20.0%
25.0%

Other Charges
Garbage Only Accounts - Container Deposit Fee
8.12.212
Dumpster/Roffoff Placement/Swap
8.12.212
Rolloff Container Prep Charge
8.12.212
Cart Swap/Removal Fee
8.12.212
Special Pickup (minimum 1 yard) per yard
8.12.212
Return Trip Charge - Cart
8.12.212
Return Trip Charge - Dumpster/Roff Off
8.12.212
Commercial Container Overage per yard
8.12.212
On-Site Labor Charge (1 hour minimum) per hour
8.12.212
Commercial Container Rental Fee-Daily 1,1.5,2,3,4,6,8 yard containers
8.12.212

2027 Proposed

Change Basis for 2027
8.1%
8.1%
8.1%
8.1%
2.0%
2.0%
2.0%
2.0%
2.0%
8.1%
1.9%
8.1%
8.1%
8.1%
2.0%
2.0%
2.0%
2.0%
2.0%
6.0%

CMC Code

Fee Description

2024 Fees

2025 Fees

2026 Fees

2027 Proposed

8.12.212

Commercial Container Rental Fee-Daily 10,20,30,40 yard containers

Res. F-209
$2.00

Res. F-299
$2.00

Res. F-436
$2.00

Res. F-532
$2.50

8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.12.212
8.16.030
8.12.212

Pressure Washing - 20,64,96 Gallon Carts
Pressure Washing - Commercial Containers (1-8 CY)
Pressure Washing - Rolloff (10-40 CY)
Automated Cart Replacement Charges - 20 Gallon Cart
Automated Cart Replacement Charges - 64 Gallon Cart
Automated Cart Replacement Charges -96 Gallon Cart
Dumpster/Rolloff Replacement or Repair Charge
Dumpster/Rolloff Lid Replacement or Repair Charge
Dumpster Caster Wheel Replacement (per each)
Commercial Yard Waste Disposal Yearly Permit Fee
Clean Green Yard Waste Collection - 96 gal cart - April-Oct

$15.00
$75.00
$150.00
$35.00
$48.00
$60.00
Acutal Charge
Actual Charge
$33.00
$150.00
$12.96

$15.00
$75.00
$150.00
$35.00
$48.00
$60.00
Acutal Charge
Actual Charge
$33.00
$150.00
$14.00

$15.00
$75.00
$150.00
$35.00
$48.00
$60.00
Acutal Charge
Actual Charge
$33.00
$150.00
$15.12

$25.00
$125.00
$200.00
$43.75
$60.00
$75.00
Acutal Charge
Actual Charge
$41.25
$300.00
$16.25

Change Basis for 2027
25.0%
66.7%
66.7%
33.3%
25.0%
25.0%
25.0%

25.0%
100.0%
7.5%

Exhibit D - Sewer Rates and Charges

CMC Code

Fee Description
Sale of Sludge Compost - Retail (1 cy) - including sales tax
Sewer Growth Capacity

15.08.020
15.08.020
15.08.020
15.08.020

Max Civil Penalty per violation
Separate Family Residence Sewer Service per single family unit per
month
Apartment House Sewer Service per unit per month
Mobile Home Court Sewer Service per Mobile Home per month
Hotel/Motel Sewer Service oer unit per month
Commercial, School, and Industrial Service per month

15.08.020
15.08.021
15.08.021
15.08.021

EWU Sewer Service per month
Reconnection during business hours
Reconnection not during business hours
Minimum Delinquent Interest Charge

15.04.122
15.08.020

Sewer Connection Fees - Based on Water Meter Sizes
1"
15.08.022
2"
15.08.022
3"
15.08.022
4"
15.08.022
6"
15.08.022
8"
15.08.022

2024 Fees

2025 Fees

2026 Fees

Res. F-209
$12.00
Amount of
Connect
Charges
$1,000
$39.31

Res. F-299
$12.00
Amount of
Connect
Charges
$1,000
$41.56

Res. F-436
Res. F-532
$12.00
$18.00
Amount of
Amount of
Connect Connect Charges
Charges
$1,000
$1,000
$43.96
$46.48

$35.38
$36.44
$37.53
$34.35
$34.35
$34.35
$17.71
$17.71
$17.71
$50.43 +
$54.84
$59.64
$.83/hundred +$1.64/hundre +$2.52/hundre
cubic feet of d cubic feet of d cubic feet of
water use
water use
water use
$50,547.69
$55,349.72
$60,607.94
$20.00
$20.00
$20.00
$50.00
$50.00
$50.00
1% or $1.00
1% or $1.00
1% or $1.00
Minimum
Minimum
Minimum
$4,830
$7,728
$15,456
$24,150
$48,300
$77,280

$4,830
$7,728
$15,456
$24,150
$48,300
$77,280

$4,830
$7,728
$15,456
$24,150
$48,300
$77,280

2027 Proposed

$46.48
$46.48
$18.67
$64.86
+$3.50/hundred
cubic feet of
water use
$66,365.69
$25.00
$100.00
1% or $1.00
Minimum
$5,313
$8,501
$17,002
$26,565
$53,130
$85,008

Change Basis for 2027
50.0%

5.7%
23.8%
35.3%
5.4%
8.7%
base /
38.9%
usage
9.5%
25.0%
100.0%

10.0% Will review/investigate further in 2027
10.0% Will review/investigate further in 2027
10.0% Will review/investigate further in 2027
10.0% Will review/investigate further in 2027
10.0% Will review/investigate further in 2027
10.0% Will review/investigate further in 2027

CITY OF CHENE Y
CITY COUNCIL AC TION REQUEST
Issue: Governmental Charges and Fees

Agenda Item #26-095

Department of Origin: Finance

Date: 11/6/26

Exhibits/Documents Attached: Resolution F-533
Exhibits A, B, C, D, and E

Council Committee Recommendation
Yes (X)

No (X)

N/A (X)

Finance Committee
General Government Committee
Public Safety Committee
Public Works Committee
Notes:

Legal Review
Yes (X)

No (X)

Legal Review Complete?
Financial Impact
Yes (X)
Has a financial impact statement been requested?
Is this expense budgeted in current budget?
Does department have capacity in current budget for expense?
Will a budget amendment be required?

X
X

Amount of Total Expense

$

Is this a one time or ongoing expense?
Provide revenue source for unbudgeted request
Describe what budgeted item/project will not occur to move funds
for this item/project

No (X)
X

NA

Explanation of Request:
The 2027 Governmental Charges and Fees are presented in the attached fee schedule. Included are fees
for Parks and Recreation fees and rentals.

Council Action Requested:
Passage of Resolution F-533
Council Meeting Date:

11/10/26

City of Cheney, Washington
609 2nd Street
Cheney, WA 99004

CITY OF CHENEY, WASHINGTON
RESOLUTION NO. F -533
A RESOLUTION ESTABLISHING THE FEES AND CHARGES FOR 2027 CITY
SERVICES
WHEREAS, the City is authorized to adopt reasonable fees and charges for providing
services; and
WHEREAS, the City desires to amend Resolution F-438 through the passage of
Resolution F-533 and
WHEREAS, the City desires to the listed governmental charges to be effective January
1, 2027.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Cheney:
Fees and Charges. For the purposed of setting fees and charges within the City of
Cheney, the City Council hereby adopts the fees and charges schedules attached hereto as
Exhibit “A”, Exhibit “B”, Exhibit “C”, Exhibit “D”, and Exhibit “E”.
Effective Date. Unless otherwise provided, this resolution will become effective January
1, 2027.
ADOPTED by the City Council of the City of Cheney at a regular meeting this date:
November 10, 2027.

______________________________
Elsa Martin, Mayor
Attest:

_____________________________________
Shellie Klinkenberg, City Clerk

Exhibit A - Administration & Finance Fees and Charges

Resolution F-533 (amends F-438). 2026 = Res. F-438; 2027 = proposed.
Fee Description

Authority

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533)

Licenses and Permits
Amusement Devices
Bus Stop Advertising
Parking Meters
Business License – over $2,000/yr
Business License Late Fee

CMC 5.10-030 G-91
Agreement/Contract
EWU Contract
CMC 5.01-050 X-55
CMC 5.01-050 X-55

$20.00/device/year

$20.00/device/year

$30.00
$15.00

$30.00
$15.00

Ordinance V-50

$250.00

$250.00

Ordinance V-50
Ordinance V-50
Ordinance V-50
CMC 7.20.020
Ordinance H-23
Lease Agreement

$75.00/each
$50.00
$50.00
No Charge

$75.00/each
$50.00
$50.00
No Charge

125-0000-321.99-01
Peddlers License – Master Solicitor* + solicitor license of
$75.00/each
Peddlers License – Solicitor
Peddlers License*
Peddlers License – Street Vendor/Vending Unit*
Pawnbroker License
Communications Devices
General Government
Credit/Debit Card Acceptance Fee

Electronic Check Fee

Returned Item Fees
Credit Card Charge Back Fee
Lodging Tax Application Fee
Personnel Services Testing Fee
Public Record Fees (first $1.00 no charge)
Paper
Electronic (see below)
After first 10 pages (plus)
Each for files uploaded to email (plus)
Transmission of public record (plus)
Digital Storage Media or Device (plus)
Cost (including taxes) charged by any third-party vendor used
to make copies (plus)
Cost of any shipping container, postage costs, (plus)
Customized Access when use of Information Technology
Expertise is required for search
Redaction fee for body worn cameras

Fee is assessed and
2.49% with a $1.50 minimum
collected by processing
company/bank

2.49% with a $1.50 minimum

Fee is assessed and
$1.50/transaction/check
collected by processing
company/bank

$1.50/transaction/check

$40.00/ea
$40.00/ea
$50.00/ea
$30.00/ea

$40.00/ea
$40.00/ea
$50.00/ea
$30.00/ea

$.15/pg

$.15/pg

$.10/pg
$.05/pg
$.10/gigabyte
Actual Cost
Actual Cost

$.10/pg
$.05/pg
$.10/gigabyte
Actual Cost
Actual Cost

Actual Cost
Actual Cost

Actual Cost
Actual Cost

$2.50/minute of video

$2.50/minute of video

Public Record Policy

Change

Notes

Exhibit B - Municipal Court Fees and Charges

Resolution F-533 (amends F-438). 2026 = Res. F-438; 2027 = proposed.
Fee Description

Authority

Administrative and Case Record Duplications
Less than ten (10) pages free. Eleven (11) pages or more
charged per page at the listed rates. Minimum fee $1.00

RCW 3.62.060 Gr 31
City Policy

Paper
Electronic
Transmission of public record (additional cost)
Digital Storage Media or Device (additional cost)
Cost of any shipping container, postage costs, beyond initial
envelope (additional cost)
Customized Access Fee when use of Information Technology
Expertise is required for search
Other Administrative Fees
Civil Filing Fee
CD Reproduction (Audio)
Copies made to compact disc
Copies of part or all of electronic recording of proceedings
Certification of Documents
Abstract Filing Fee
Parking Delinquent Fee
Credit/debit Card Acceptance Fee

Electronic Check Fee

Appeals Fee
Transcript of Record-outsourced
CD Reproduction
Preparation of Record
Civil Appeal Filing Fee
Parking Delinquent Fee
Probation Services
Urinalysis
Portable Breath Test
Drug Confirmation/Test

GR 31.1; RCW
3.62.060; GR 17(a)(4)
GR 31.1; RCW
3.62.060; GR 17(a)(4)

Fee is assessed and
collected by processing
company/bank

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533)

$.15/pg
$.10/pg
$.10/gigabyte
Actual Cost
Actual Cost

$.15/pg
$.10/pg
$.10/gigabyte
Actual Cost
Actual Cost

Actual Cost

Actual Cost

$43.00
$10.00/ea

$73.00
$30.00/ea
$30.00/cd

70%
200%
New

$30.00/cd

New

$5.00
$43.00
$25.00
2.49% with a $1.50 minimum

Fee is assessed and
$1.50/transaction/check
collected by processing
company/bank

$5.00
$73.00
$25.00
2.49% with a $1.50 minimum

Change

70%

$1.50/transaction/check

RCW 3.62.060

RALJ 2.4 RCW
27.24.070 RCW
36.18.020
RCW 46.63.110(4)
CMC 2.50
Court Policy PP-0001
RCW 10.64.120
Court Policy PP-0001

Actual Cost
$10.00/ea
$40.00
$200.00

Actual Cost
$30.00/ea
$40.00
$200.00

$25.00

$25.00

$25.00/ea
$5.00/ea
$25.00/ea

$30.00/ea
$5.00/ea
$25.00/ea

200%

20%

Notes

Fee Description
Alcohol Confirmation/Test
Diluted Test
SCRAM Alc Monitoring
Pre-Trial Supervision
Pre-Trial Services-MRT Class
Pre-Trial Services-DV MRT Class
Unsupervised Probation-Records Check
Supervised Probation
Booking., Housing & Monitoring of Prisoners (Jail/EHM)

Warrant Service Fees
Youth Court Application Fee

Authority

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533)

Court Policy PP-0001
Court Policy PP-0001
RCW 10.01.160 RCW
10-64.120
RCW 10.01.160 RCW
10.64.120
RCW 10.01.160
RCW 10.01.160
RCW 10.64.120 RCW
46.61.5055 ARLJ 11.3
RCW 10.64.120 RCW
46.61.5055 ARLJ 11.3
RCW 70.48.390 RCW
9.94A.760 RCW
10.01.160 RCW
46.61.5055 DUI RCW
26.50.110
RCW 10.01.160(2)
RCW 10.01.160 RCW
10.64.120

$25.00/ea
$15.00/ea
At Cost

$25.00/ea
$15.00/ea
At Cost

Not to Exceed $150

Not to Exceed $150

$150
$250
Not to Exceed $25/mo

$150
$250
Not to Exceed $25/mo

Not to Exceed $40/mo

Not to Exceed $40/mo

At cost Not to exceed $100/day At cost Not to exceed $100/day

Not to exceed $100/day
$10.00/ea

Not to exceed $100/day
$10.00/ea

Change

Notes

Exhibit C - Public Safety Fees and Charges

Resolution F-533 (amends F-438). 2026 = Res. F-438; 2027 = proposed.
Fee Description

Authority

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533)

Ordinance V-04
CMC 9A.07.020

$50.00

$50.00

$48.25

Per RCW 9.41.070

$32.00
$42.00

Per RCW 9.41.070
Per RCW 9.41.070

$10.00
$125.00
$5.00
$10.00

1 ½ of Current Senior Police
Officer Rate

Per RCW 9.41.070
$125.00
$5.00
$10.00
$10.00
$25.00
$50.00
$450.00
1 ½ of Current Senior Police
Officer Rate

No Charge
$250.00 each

No Charge
$250.00 each

$400.00

$400.00

Fire Standby / Non-Mobilization Fees
Type 1 Fire Engine
Type 6 Fire Engine
Outside Job

$288.00/hr
$165.00/hr
$71.00/hr

$288.00/hr
$165.00/hr
$71.00/hr

Fire False Alarms
1st False Alarm - non-exempt
2nd False Alarm - non-exempt
3rd and Over False Alarm - non-exempt

$250.00
$500.00
$1,000.00

$250.00
$500.00
$1,000.00

Police

Golf Cart Inspection Fee
Concealed Weapons
Fee
Renewal
Late
Replacement
Firearms Dealer License
Fingerprinting Fee
Background Check
Law Enforcement Services/Misc.
Parking Citation - roadway violations
Parking Citation - safety violations
Parking Citation - physical disabilities violations
Outside Jobs
Police False Alarms
1 to 2 Alarms
3 to 6 Alarms
7 or more Alarms –No response
Foreclosure Property Registration
Annual Registration Fee

CMC 9A.11.030

Change

Changed $51.00 ($36.00 + FBI background check
charge)
$32.00
$42.00 ($32.00 renewal + $10.00 late
penalty)
$10.00

New
New
New
New

CMC 17.08.100

Fire

Fire Plan Review and System Permits
Plans Review per hour (minimum 1 hour)
Preliminary fire systems plan review
Fixed pipe suppression system
Fixed pipe modification
Automatic Fire Extinguishing System
Fire sprinkler system (Under 200 heads) ($0.75 each add. head,
$2,000.00 maximum)

2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC

$105.00
$105/hr
$105.00
$105.00
$210.00
$210.00

Notes

New
New
New
New
New
New

Fee Description

Authority

Fire sprinkler modification (Up to 20 heads)
Tenant Improv/Modification of Fire Sprinkler System
1-10 Heads
11-20 Heads
21-50 Heads
51-100 Heads
101-200 Heads
201-300 Heads
301 and Over Heads
Per 100 Devices over 300 an additional
Fire alarm system (Up to 200 signaling devices) ($0.75 each
additional device, $1,000.00 maximum)
Fire alarm modification (Up to 10 devices)
Fire alarm and detection systems - new installation (number
of devices)
1 – 100
101 – 200
Per 100 Devices over 200 an additional
Standpipe/water supply (Fire Line)
Smoke control system
Flammable or combustible liquid tank permit (above ground)

2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC

$105.00

New

$105.00
$157.50
$183.75
$262.50
$315.00
$367.50
$420.00
$52.50
$210.00

New
New
New
New
New
New
New
New
New

2021 IFC
2021 IFC

$105.00

New

2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC

$210.00
$315.00
$105.00
$210.00
$105.00
$105.00

New
New
New
New
New
New

2021 IFC 105.5.32 2021 $105.00/Annually
IFC 105.5.319
2021 IFC
2021 IFC

$105.00/Annually
$105.00

New

2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC

$52.50
$78.75
$105.00
$131.25
$157.50
$183.75
$236.25
$288.75
$341.25
$105/hr
$315.00

New
New
New
New
New
New
New
New
New
New
New

$75.00
$200.00
$300.00
$52.50
$200.00

167%
New
New
New

Fire Inspections
Food Truck Fire Inspection
Short-term rental annual inspection
Fire and Life Safety (FLS) Inspections (i.e. daycare, nursing
homes)
Occupancy size: up to 500 square feet
Occupancy size: 501 to 1,000 square feet
Occupancy size: 1,001 to 2,500 square feet
Occupancy size: 2,501 to 5,000 square feet
Occupancy size: 5,001 to 7,500 square feet
Occupancy size: 7,501 to 10,000 square feet
Occupancy size: 10,001 to 15,000 square feet
Occupancy size: 15,001 to 20,000 square feet
Occupancy size: 20,000 + square feet
Re-inspection/re-test (per hour)
After hours inspection
Fire Operational Permits
Social Event Burn Permits
Fireworks / Pyrotechnic Permit
Tent permit fee (Annual)
Tent permit fee (Per event)
Additive Manufacturing

2026 Fee (Res. F-438)

$75.00
$75.00
2021 IFC
2021 IFC
2021 IFC

2027 Proposed (Res. F-533)

Change

Notes

Fee Description

Authority

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533)

Change

Aerosol Products
Amusement Buildings
Aviation Facilities
Carnivals and Fairs
Cellulose Nitrate Film
Combustible Dust Producing Operations
Combustible Fibers
Compressed Gases
Covered and Open Mall Buildings
Cryogenic Fluids
Cutting and Welding
Dry Cleaning
Energy Storage Systems
Exhibits and Trade Shows
Explosives
Fire Hydrants and Valves
Flammable and Combustible Liquids
Floor Finishing
Fruit and Crop Ripening
Fumigation and Insecticidal Fogging
Hazardous Materials
HPM Facilities
High Piled Storage
Level 5 - 500,000 sq. ft. +
Level 4 20,001 to 500,000 sq. ft.
Level 3 12,001 to 20,000 sq. ft.
Level 2 2501 to 12,000 sq. ft.
Level 1 501 to 2500 sq. ft.
Hot Work Operations
Industrial Ovens
Lumber Yards and Woodworking Plants
Liquid or Gas Fueled Vehicle or Equipment in Assembly
Buildings
Lithium Batteries

2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC
2021 IFC

$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00
$200.00

New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New

$600.00
$500.00
$400.00
$300.00
$200.00
$200.00
$200.00
$200.00
$200.00

New
New
New
New
New
New
New
New
New

2021 IFC

$200.00

New

Notes

Exhibit D - Parks & Recreation Fees and Charges

Resolution F-533 (amends F-438). 2026 = Res. F-438; 2027 = proposed.
Fee Description
Rents & Leases
Facilities/Rentals for profit making groups
Deposit – no alcohol
Deposit – alcohol
Chair rental
Table rental
Wren Pierson Rental
Senior room w/kitchen
Dance studio
Multipurpose w/ kitchen
Youth center
Kitchen only
Community meeting room
Multi-purpose room/kitchen daily rate (8 hours)
Wren Pierson Community Meeting Room non-profit rental
EWU rentals
CSD Rentals
City Hall Rental
Auditorium
Council chambers (4 hour minimum)
Damage Deposit
Parks Facilities/Shelters
Centennial Shelter
Hagelin Shelter
Salnave Shelter
Veteran’s Shelter
Sutton Gazebo
Sutton Shelter
Sutton Gazebo – Wedding Ceremony
Cheney Aquatic Center Fees
Swim Lessons Group
Swim Lessons Private (1/2 hr.)
½ Day Open Swim Pass (3 hr.) JR.
½ Day Open Swim Pass (3 hr.) SR
½ Day Open Swim Pass (3 hr.) GA
Daily Open Swim Pass (6 hr.) JR
Daily Open Swim Pass (6 hr.) SR
Daily Open Swim Pass (6 hr.) GA

Authority
Policy & Procedure
IV.6.1

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533X) Change

$100.00
$300.00
$1.00/chair
$8.00/table

$100.00
$300.00
$1.00/chair
$10.00/table

$60.00/hr
$50.00/hr
$90.00/hr
$60.00/hr
$50.00/hr
$50.00/hr
$620.00/day
$27.00/hr
See Tri-Agency Agreement
See Tri-Agency Agreement

$70.00/hr
$60.00/hr
$100.00/hr
$70.00/hr
$60.00/hr
$60.00/hr
$700.00/day
$27.00/hr
See Tri-Agency Agreement
See Tri-Agency Agreement

17%
20%
11%
17%
20%
20%
13%

$90.00/hr
$30.00/first 4 hours $8.50/each
addt’l hour
$100.00

$100.00/hr
$30.00/first 4 hours $8.50/each
addt’l hour
$100.00

11%

$40.00 1-4 hrs
$40.00 1-4 hrs
$50.00 1-4 hrs
$40.00 1-4 hrs
$50.00 1-4 hrs
$160.00

$40.00 1-4 hrs
$40.00 1-4 hrs
$50.00 1-4 hrs
$40.00 1-4 hrs
$50.00 1-4 hrs
$40.00 1-4 hrs
$160.00

$60.00 R/$64.00 NR
$35.00 R / $39.00 NR
$3.00 R / $4.00 NR
$4.00 R / $5.50 NR
$5.00 R / $7.00 NR
$5.00 R / $6.50 NR
$6.00 R / $9.00 NR
$7.00 R / $10.00 NR

$65.00 R / $70.00 NR
$35.00 R / $39.00 NR
$3.00 R / $4.00 NR
$4.00 R / $5.50 NR
$5.00 R / $7.00 NR
$5.00 R / $6.50 NR
$6.00 R / $9.00 NR
$7.00 R / $10.00 NR

25%

New

Notes

Fee Description
10 Daily Open Swim Pass (6 hr.) JR
10 Daily Open Swim Pass (6 hr.) SR
10 Daily Open Swim Pass (6 hr.) GA
Season Pass JR*
Season Pass SR*
Season Pass GA*
Family Pass (5 or less)*
Family Pass additional JR*
Family Pass additional GA*
Infant (0-2) Free
Junior (3-6)
General (7-59)
Senior (60+)
Entire Facility Rental (1 hr.)
Providence Community Room Rental (3 hr.) (up to 25 guests
included)
Providence Community Room Rental
12’ Umbrella Rental (3h.r)
12’ Umbrella Rental (6 hr.)
20’ Umbrella Rental (3 hr.)
20’ Umbrella Rental (6 hr.)
Park Impact Fees
Single Family Home 0-1 Bedroom Apartment/Duplex
2 Bedroom Apartment/Duplex
3 + Bedroom Apartment/Duplex
Single Family Residential
Traffic Impact Fees

Authority

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533X) Change

$40.00 R / $50.00 NR
$48.00 R / $70.00 NR
$60.00 R / $80.00 NR
$75.00 R / $95.00 NR
$89.00 R / $129.00 NR
$105.00 R / $145 NR
$240.00 R / $300.00 NR
$19.00 R / $24.00 NR
$30.00 R / $40.00 NR

$40.00 R / $50.00 NR
$48.00 R / $70.00 NR
$60.00 R / $80.00 NR
$75.00 R / $95.00 NR
$89.00 R / $129.00 NR
$105.00 R / $145 NR
$240.00 R / $300.00 NR
$19.00 R / $24.00 NR
$30.00 R / $40.00 NR

$700.00 R / $780.00 NR
$255.00 R / $285.00 NR

$700.00 R / $780.00 NR
$255.00 R / $285.00 NR

$50.00/hr
$30.00 R /$35.00 NR
$50.00 R / $60 NR
$60.00 R / $70 NR
$100.00 R / $110.00 NR

$50.00/hr
$20.00 R / $25.00 NR
$40.00 R / $45.00 NR
$40.00 R / $50.00 NR
$80.00 R / $90.00 NR

$479.00/unit
$958.00/unit
$1,245.00/unit
$1,245.00/home
As established by Schedule A
of Ordinance X-60

$600.00/unit
$1,200.00/unit
$1,560.00/unit
$1,560.00/home
As established by Schedule A
of Ordinance X-60

25%
25%
25%
25%

Notes

Exhibit E - Public Works Fees and Charges

Resolution F-533 (amends F-438). 2026 = Res. F-438; 2027 = proposed.
Fee Description
Building Permit Fees
Valuation $1.00 to $500
Valuation $501.00 to $2,000.00

Valuation $2,001.00 to $40,000.00

Authority

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533)

$24.00
$24.00 for the first $500.00;
Plus $3.00 for each additional
$100 or fraction thereof, to and
including $2,000.00.
$69.00 for the first $2,000.00;
Plus $11.00 for each additional
$1,000 or fraction thereof, to
and including $40,000.00.

$24.00
$24.00 for the first $500.00;
Plus $3.00 for each additional
$100 or fraction thereof, to and
including $2,000.00.
$69.00 for the first $2,000.00;
Plus $11.00 for each additional
$1,000 or fraction thereof, to
and including $40,000.00.

Valuation $40,001.00 to $100,000.00

$487.00 for the first $40,000.00; $487.00 for the first $40,000.00;
Plus $9.00 for each additional
Plus $9.00 for each additional
$1,000 or fraction thereof, to
$1,000 or fraction thereof, to
and including $100,000.00.
and including $100,000.00.

Valuation $100,001.00 to $500,000.00

$1,027.00 for the first
$1,027.00 for the first
$100,000.00; Plus $7.00 for
$100,000.00; Plus $7.00 for
each additional $1,000 or
each additional $1,000 or
fraction thereof, to and including fraction thereof, to and including
$500,000.00.
$500,000.00.
$3,827.00 for the first
$3,827.00 for the first
$500,000.00; Plus $5.00 for
$500,000.00; Plus $5.00 for
each additional $1,000 or
each additional $1,000 or
fraction thereof, to and including fraction thereof, to and including
$100,000.00.
$100,000.00.
$6,327.00 for the first
$6,327.00 for the first
$1,000,000.00; Plus $3.00 for
$1,000,000.00; Plus $3.00 for
each additional $1,000 or
each additional $1,000 or
fraction thereof, to and including fraction thereof, to and including
$500,000.00.
$500,000.00.
$18,327.00 for the first
$18,327.00 for the first
$5,000,000.00; Plus $1.00 for
$5,000,000.00; Plus $1.00 for
each additional $1,000 or
each additional $1,000 or
fraction thereof.
fraction thereof.

Valuation $500,001.00 to $1,000,000.00

Valuation $1,000,001.00 to $5,000,000.00

Valuation $5,000,000.00 and up

Other Building Department Fees
Plan Review Fee (separate for each permit type)
Plan Review Fee for duplicated buildings where legal application
is made on the same date
Additional plan review required by changes, additions, or
revisions to plans (minimum 1 hour)
Temporary Certificate of Occupancy and each extension thereof
Change of Use Permit (includes review)

Change

65% of Permit Issuance Fee
1st at full review fee,
subsequent 50% of Plan
Review Fee
$52.00/hour

65% of Permit Issuance Fee
1st at full review fee,
subsequent 50% of Plan
Review Fee
$110.00/hour

112%

$94.00

$210.00

123%

$25.00

$50.00

100%

Notes

Fee Description
State Building Code Surcharge per “Residential Building Permit”
as defined by E2SHB 1622
State Building Code Surcharge per “Residential Building Permit”
as defined by E2SHB 1622
L&I regulated manufactured homes and other modular structures
(Permanent foundations and accessory structures not included)
Annual Permit (includes reviews)
Permit and Permit Application Extensions
Permit Renewals
Inspection outside of normal business hours (minimum 2 hours)
Re-inspection fee
Inspections for which no fee is specifically indicated (minimum 1
hour)
Working Without a Permit Fee (formerly Violation Investigation
Fee)
Technology Fee
Mechanical and Plumbing Permit Fees
Mechanical Permit Issuance Fee
Plumbing Permit Issuance Fee
Single-Family, Duplex, and Townhouse – Rough-in Inspection
Fee
Additional Plumbing Inspection Fee per Bathroom (New Dwelling
Unit(s) Only)
Additional Mechanical Inspection Fee per Bathroom (New
Dwelling Unit(s) Only)
Single-Family, Duplex, and –Townhouse Final Inspection Fee
All Other Buildings – Total Inspection Fee
Valuation $1.00 to $500.00
Valuation $501.00 to $2,000.00

Valuation $2,000.00 to $40,000.00

Valuation $40,001.00 to $100,000.00

Authority

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533)

$6.50 + $2.00 for each
additional residential unit after
the first unit
$25.00 + $2.00 for each
additional unit after the first unit

$6.50 + $2.00 for each
additional residential unit after
the first unit
$25.00 + $2.00 for each
additional unit after the first unit

$200.00 for 1st section +
$100.00 for each additional
section
150% of the building permit fee
based on the valuation
$25.00
50% of the Permit Fee; $50.00
min. / $200.00 max.
$78.00/hour

$200.00 for 1st section +
$100.00 for each additional
section
150% of the building permit fee
based on the valuation
$40.00
50% of the Permit Fee; $100.00
min. / $200.00 max.
$150.00/hour

$26.00
$52.00/hour

$110.00
$110.00/hour

$26.00

Permit Fee X 2

$10.00

$20.00

100%

$30.00

$60.00

100%

$34.00

$70.00

106%

$22.00

$80.00

264%

$24.00

$60.00

150%

Per Table Below
$24.00
$24.00 for the first $500.00;
Plus $3.00 for each additional
$100.00 or fraction thereof, to
and including $2,000.00.
$69.00 for the first $2,000.00;
Plus $11.00 for each additional
$1,000.00 or fraction thereof, to
and including $40,000.00.

Per Table Below
$24.00
$24.00 for the first $500.00;
Plus $3.00 for each additional
$100.00 or fraction thereof, to
and including $2,000.00.
$69.00 for the first $2,000.00;
Plus $11.00 for each additional
$1,000.00 or fraction thereof, to
and including $40,000.00.

$487.00 for the first $40,000.00; $487.00 for the first $40,000.00;
Plus $9.00 for each additional
Plus $9.00 for each additional
$1,000.00 or fraction thereof, to $1,000.00 or fraction thereof, to
and including $100,000.00.
and including $100,000.00.

Change

60%

92%
323%
112%

Notes

Fee Description
Valuation $100,001.00 to $500,000.00

Valuation $500,001.00 to $1,000,000.00

Valuation $1,000,001.00 to $5,000,000.00

Valuation $5,000,000.00 and up

Civil Permit Fees
Permit Application Fee
Facility Inspection Only (per facility type)
Stormwater Review (If not part of a site development)
Stormwater / Drainage Report Review Fee (development)

Authority

2026 Fee (Res. F-438)

2027 Proposed (Res. F-533)

Change

$1,027.00 for the first
$1,027.00 for the first
$100,000.00; Plus $7.00 for
$100,000.00; Plus $7.00 for
each additional $1,000.00 or
each additional $1,000.00 or
fraction thereof, to and including fraction thereof, to and including
$500,000.00.
$500,000.00.
$3,827.00 for the first
$3,827.00 for the first
$500,000.00; Plus $5.00 for
$500,000.00; Plus $5.00 for
each additional $1,000.00 or
each additional $1,000.00 or
fraction thereof, to and including fraction thereof, to and including
$1,000,000.00.
$1,000,000.00.
$6,327.00 for the first
$6,327.00 for the first
$1,000,000.00; Plus $3.00 for
$1,000,000.00; Plus $3.00 for
each additional $1,000.00 or
each additional $1,000.00 or
fraction thereof, to and including fraction thereof, to and including
$5,000,000.00.
$5,000,000.00.
$18,327.00 for the first
$18,327.00 for the first
$5,000,000.00; Plus $1.00 for
$5,000,000.00; Plus $1.00 for
each additional $1,000.00 or
each additional $1,000.00 or
fraction thereof.
fraction thereof.
200%
100%
100%
New

$250.00
$150.00
$250.00 plus City Engineer
Cost
50% of the Base Fee

$30.00
$50.00
$100.00
$500.00 plus City Engineer
Cost
$500.00
$300.00
$500.00 plus City Engineer
Cost
50% of the Base Fee

$25.00

$110.00

340%

$300.00
$60.00

New
New

Right-of-Way Permit Fees
Right of Way Permits Approach Permit
Non-cut Obstruction Permit
Pavement Cut
Boring
Pre/Post Inspection Fee
Engineering Re-inspection Fee
Expired ROW Permit Reissuance Fee
Right of Way Permit Modification Fee (Issued Permits)

$75.00
$125.00
$250.00
$200.00
$110.00
$110.00
50% of permit fee
$65.00

New
New
New
New
New
New
New
New

Grading Permit Review Fees
100 - 1,000 cubic yards
1,001 – 10,000 cubic yards

$30.00
$45.00

New
New

Commercial / Complex Site Review and Inspection
Short Plat Civil Review and Inspection
Long Plat Civil Review and Inspection
Additional Review Fee for Plan Resubmittals after the Second
(per)
Re-inspection fee (Correction not made prior to follow-up
inspection)
Traffic Impact Analysis Review
Traffic Control Plan Review

$10.00
$25.00
$50.00

100%
100%

Notes

Fee Description

Authority

2026 Fee (Res. F-438)

10,001 – 100,000 cubic yards

New

$24.00
$24.00 for the first 100 cubic
yards; Plus $5.00 for each
additional 100 cubic yards or
fraction thereof
$69.00 for the first 1,000 cubic
yards; Plus $10.00 for each
additional 1,000 cubic yards or
fraction thereof
$159.00 for the first 10,000
cubic yards; Plus $35.00 for
each additional 10,000 cubic
yards or fraction thereof
$474.00 for the first 100,000
cubic yards; Plus $20.00 for
each additional 10,000 cubic
yards or fraction thereof

$50.00
$50.00 for the first 100 cubic
yards; Plus $10.00 for each
additional 100 cubic yards or
fraction thereof
$150.00 for the first 1,000 cubic
yards; Plus $10.00 for each
additional 1,000 cubic yards or
fraction thereof
$250.00 for the first 10,000
cubic yards; Plus $50.00 for
each additional 10,000 cubic
yards or fraction thereof
$700.00 for the first 100,000
cubic yards; Plus $30.00 for
each additional 10,000 cubic
yards or fraction thereof
$1,000.00 for the first 200,000
cubic yards; Plus $30.00 for
each additional 10,000 cubic
yards or fraction thereof

108%

$1,500.00
$2,000
$500.00
$900.00
$900.00
$1,500.00 + $10/lot
$300.00
Actual Cost
Actual Cost

$1,500.00
$2,000
$500.00
$900.00
$900.00
$1,500.00 + $10/lot
$300.00
Actual Cost
Actual Cost

200,001 + cubic yards

1,001 to 10,000 cubic yards

10,001 to 100,000 cubic yards

100,001 to 200,000 cubic yards

200,001 + cubic yards

Planning and Development
Application amending Zoning Text or Map
1st 10 Acres
Each Additional Acre
Application for Variance
Application for Conditional Use Permit
Application for Planned Unit Development
Accessory Dwelling Unit
Copy of Transcript
Zoning and Land Use Maps
Subdivision Fees
Application for Short Plat
Application for Short Plat Vacation
Application for Preliminary Plat

Change

$45.00 for the first 10,000 cu.
yds.; + $25.00 for each
additional 10,000 cu. yds
$270.00 for the first 100,000 cu.
yds.; + $25.00 for each
additional 10,000 cu. yds
$520.00 for the first 200,000 cu.
yds.; + $25.00 for each
additional 10,000 cu. yds

100,001 – 200,000 cubic yards

Grading Permit Fees
100 cubic yards or less
101 to 1,000 cubic yards

2027 Proposed (Res. F-533)

$1,250.00 + county recording
$1,250.00 + county recording
fee
fee
$600.00
$600.00
$1,500.00 + $10.00/lot + county $1,500.00 + $10.00/lot + county
recording fee
recording fee

New
New

New

Notes

Fee Description

Authority

Preliminary Plat Extension
Application for Binding Site Plan

Amendment or change of condition of Approved Preliminary
Plat, Final Plat, Short Plat, or Binding Site Plan
Administrative Approval of Lots within an Approved Binding
Site Plan
Application for Minor Lot Line Adjustment
CMC 10.36.030

Application for Critical Areas Site Plan *Minimum of $500.00
Administrative Fees
Land Use Appeal
Sign Permits – Plan Review Fee
Planning Review of Garages, Decks, and other New
Residential Construction or Additions
Plan Check Fee – for items not listed above
Hearing Examiner Public Hearing Fee
Staff Service not listed above (minimum 1 hour)
Streets
Street and Curb Permits
Street Improvement Permit - Engineering and Inspection
Street Access/Connection
Excavation Application
Asphalt Restoration Fees
Less than 5 Square Yards
5 - 7 Square Yards
Over 7 Square Yards
Street Inspection Fee
Street Violation Penalty Max
Assessment Reimbursement Area
Street Vacation

2027 Proposed (Res. F-533)

Change

$250.00
$250.00
$1,500.00 + $10.00/lot + county $1,500.00 + $10.00/lot + county
recording fee
recording fee
$250.00
$250.00
$600.00
$600.00
$600.00 + $10.00/lot + county
$600.00 + $10.00/lot + county
recording fee
recording fee
80% of original fee
80% of original fee

Binding Site Plan Extension
Binding Site Plan Vacation
Application for Final Plat

Environmental Fees
SEPA Review
SEPA with a concurrent project review
SEPA DS/EIS

2026 Fee (Res. F-438)

CMC 2.60.010

CMC 12.20.090 Q-69
CMC 12.46.020 J-13
CMC 12.62.080 Q-52
Ordinance P-19
Ordinance P-19

Ordinance P-19
Ordinance P-19
Ordinance R-76
Ordinance M-34

Civil Design & Land Planning Fees - Project Review & Inspection Resolution D-913
Fees

80% of original fee

80% of original fee

$130.00

$130.00

$225.00
$150.00
$800.00 deposit + Actual Cost
Incurred
$500.00/Acre or major fraction
thereof

$225.00
$150.00
$800.00 deposit + Actual Cost
Incurred
$500.00/Acre or major fraction
thereof

$300.00
$50.00
$25.00

$300.00
$50.00
$25.00

$100.00
$125.00/hr + mileage
$47.00

$100.00
$125.00/hr + mileage
$47.00

$25.00 + $.50/lineal ft
Actual Cost

$30.00 + $.50/lineal ft
Actual Cost

$75.00; 101-0000-344.12.00

$75.00; 101-0000-344.12.00

$280.00
$140.00 + $28.00/sq. yd.
$185.00 + $22.00/sq. yd.
$50.00
$1,000.00
Actual Construction Cost
½ Appraised Value + City
Incurred Costs
Actual Costs Incurred by the
City

$300.00
$175.00 + $35.00/sq. yd.
$215.00 + $35.00/sq. yd.
$110.00
$1,000.00
Actual Construction Cost
½ Appraised Value + City
Incurred Costs
Actual Costs Incurred by the
City

7%

120%

Notes

CITY OF CHENE Y
CITY COUNCIL ACTION REQUEST
Issue: New Large Single Load Ordinance

Agenda Item# 26-087

Department of Origin: Light

Date: 10/21/26

Exhibits/Documents Attached: (List all) NLSL Ordinance No. Z-12

Council Committee Recommendation
Yes (X)
Finance Committee
General Government Committee
Public Safety Committee
Public Works Committee
Notes:

No (X)
X
X
X

N/A (X)

X

Legal Review
Yes (X)
X

Legal Review Complete?

No (X)

Financial Impact
Yes (X)
Has a financial impact statement been requested?
Is this expense budgeted in current budget?
Does department have capacity in current budget for expense?
Will a budget amendment be required?
Amount of Total Expense

No (X)
X

X
$0

Is this a one time or ongoing expense?
Provide revenue source for unbudgeted request
Describe what budgeted item/project will not occur to move funds
for this item/project

Explanation of Request: To prepare for future new large electric loads on the City of Cheney electric
system this ordinance revises the previous structure and guides new requests for electric loads exceeding
1 megawatt. It ensures that all associated costs are shouldered by the requester on not passed on to the
citizens of Cheney in the form of increased electricity rates and internal costs directly related to the
request.

Council Action Requested: Review and consider the ordinance and approve the second and third
readings.
Council Meeting Date:

11/10/26

City of Cheney, Washington
609 Second Street
Cheney, WA 99004

CITY OF CHENEY, WASHINGTON
ORDINANCE No. Z-12
ESTABLISHING REQUIREMENTS FOR NEW LARGE SINGLE ELECTRIC LOADS AND NON
STANDARD ELECTRIC SERVICE; PROVIDING FOR STUDIES, COST RESPONSIBILITY, CONTRACTUAL
TERMS, SYSTEM PROTECTION MEASURES, AND PROVIDING FOR OTHER MATTERS RELATED
THERETO.
WHEREAS, the City of Cheney is a code city organized and operating under the laws of the State of Washington
and possesses all powers of local self-government not denied by the Constitution or laws of the State of Washington; and
WHEREAS, the City of Cheney, Washington, recognizes the importance of maintaining a reliable, affordable, and
sustainable electrical supply for its residents and businesses; and
WHEREAS, new large single loads require significant and continuous electrical power, often exceeding the
consumption of traditional residential and commercial uses, placing undue strain on the local electrical grid; and
WHEREAS, new large single load projects involve significant development costs that must be borne by the
Applicant; and
WHEREAS, new large single loads are characterized by high and continuous electrical consumption exceeding one
megawatt (1 MW), thereby affecting the Utility’s ability to remain within its current Tier 1 power purchase allocation; and
WHEREAS, maintaining Tier 1 rates is critical to keeping electricity affordable for Cheney residents, businesses,
and public services, and preventing the economic burden of elevated Tier 2 rates; and
WHEREAS, the City Council of the City of Cheney desires to amend the Cheney Municipal Code to effectuate the
purposes of this Ordinance and establish requirements for new large single electrical loads and non-standard electrical service;
and
NOW, THEREFORE, the City Council of the City of Cheney does ordain as follows:
Section 1.
Amendment. Section 14.08.055 of the Cheney Municipal Code, entitled “New large single
electric load,” is amended as follows:
14.08.055 - New large single electric load.
(a)

For the City of Cheney. a new large single load (NLSL) is defined as new load to the system having an anticipated
usage of over one (1) average megawatt.

(b)

The rate and class for any NLSL shall be determined by resolution of the city council. This rate will be based on the
impact to the existing customers rates, the price of Tier 2 (or other acquired) power from BPA, additional
transmission cost and the financial impact of the NLSL on the city electric utility

(a)

Purpose and Intent

The purpose of this Section is to:
(1)

Protect the reliability, safety, and financial stability of the municipally owned electric system (“Utility”).

(2)

Ensure that large single loads and high density electric service requests do not impose unplanned or
disproportionate costs on existing customers.

(3)

Establish requirements for engineering studies, cost causation, infrastructure contributions, and contractual
obligations associated with serv