The City of Washougal has had a structural budget deficit off and on since 2006. That means that we committed to spending more than we earn. The deficit is projected to worsen each year until the economy improves.
Mayor Jeff Guard recognized in 2001 that the $50,000 city reserve was inadequate. He began strengthening the reserve. Mayor Sellars, benefitting from a growing economy, added to the reserve in 2007 and 2008. In 2009 the current economic downturn intensified, initiating the current string of annual deficits that pose a continually increasing challenge.