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Budget shortfall calls for collaborative solutions
9/1/2010 9:30:30 AM
By Wendy Van Orman
Liberty Lake Voices
First, let me thank all of you that took the survey on the city's website. With the input received, it will be given to the City Council and The Splash newspaper unaltered, so your voice can be heard.
With the information and input received, this is a great chance to educate. Starting with a little-known fact, since 2008 in each of the departments within the city, we have cinched back within the budget. The combined reductions of $1.32 million have been taken over the past two years. When the economy took a turn for the worse at the end of 2007, we did like all of you at home and tightened up. We held the line and have reduced your tax burden since 2001, making us the second-lowest property tax levy in Spokane County, currently at $1.55 per $1,000. We set aside a 15 percent restricted reserve fund for an emergency in the amount of $1.3 million. Having a municipal library has kept taxes low by utilizing the current revenue stream, joining the county library system would have been an additional 50 cents per $1,000. Compare what other jurisdictions are paying in Spokane County. Since incorporation, you are paying significantly less.
We found ways to conserve energy and stretch our revenue received (examples: installing solar panels and moisture meters). We were also able to leverage our funds in seeking grants totaling $860,000 in 2009.
You may be surprised to hear this, considering the grass has been mowed and services have been delivered. From the outside it looks seamless, but with considerable effort on the part of a very dedicated staff as well as volunteers that work to provide your services. We are supported by only two major sources of funding, property taxes and sales tax. Our sales tax has declined by 16-22 percent. With pending initiatives slated for the ballot, it will further decline our revenue base.
We are at the crossroads: Do we invest into our community or do we cut the levels of services (meaning staff) that provide our services? We are lean at the city, with 27 full-time employees. Many cities our size have up to 100 employees. As our employees wear many hats and have the knowledge and talent to provide the services offered, it would be devastating to this community to cut in this direction.
We have several tools for revenue streams. Up till now we have not utilized them. We have always determined that if we have a surplus, it is given back to the taxpayers. We are continually looking for better ways to provide services and will always continue to do so. Each of the funding options take time to collect. In order to meet the shortfall of $700,000 expected, we will need to implement an ordinance determining revenue stream(s) within the next month so funding can accumulate through 2011 for the 2012 shortfall. Advertisement
At our next City Council meeting set for Sept. 7, we will be reviewing the survey results as well as revenue options to keep our city services sustainable for the future. This meeting is open to the public, and I encourage you to become part of the solution.
We have an incredibly beautiful, close-knit community made up of 338 businesses and 7,620 residents. We have an opportunity to come together to find solutions. It will be those solutions that will determine our quality of life for the generations to come.
Wendy Van Orman is mayor of the city of Liberty Lake.
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