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Mayor unveils proposed 2011 city budget
11/3/2010 10:03:43 AM
Splash Staff Writer
Mayor Wendy Van Orman proposed a much-anticipated $12.5 million budget for 2011 to the City Council for comment and review Tuesday.
"The City Council considered several options in order to balance the budget and maintain the long-term financial sustainability of the city," Van Orman said. "Through a collaborative effort, a decision was made to raise revenue through a utility tax with the expectation of additional budget cuts."
The previously reported reductions in city staffing still stand in the proposed budget. This includes the seasonal layoff of two full-time employees at Trailhead Golf Course, reducing two library employees to part-time and an elimination of a part-time project planner.
Since announcing staff reductions, the city has received extensive feedback in defense of the affected golf course and library employees.
"We've heard the public, and I think we need to talk more about the budget," Council Member Judi Owens said.
Council Member Odin Langford also expressed concern over the feedback.
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"Are there any stones that we haven't turned over?" Langford asked. "I don't think there are, but I'm asking the rest of you."
Van Orman also proposed 32 weekly hours of operation for the library, up from previous suggestions that the hours could be reduced to as few as 24. Currently, the library operates 46 hours weekly.
As pointed out during citizen comment, one of the few areas of increased funding falls on the City Council and mayor. The proposal calls for a 60 percent increase in salary and wages for council members and a 67 percent increase for the mayor. An independent salary commission set these increases, and Mayor Pro Tem David Crump said he would not vote for a budget with these salary increases.
The proposal went in depth regarding how the impact will be felt citywide with adjustments to numerous departments, including cuts to cost-of living raises for city employees. Employees will still be eligible for the 2 percent merit-based step raise, but the cost-of-living increase based on the Consumer Price Index (currently 1.4 percent) is no longer included. In addition, the city will discontinue the typical contribution of $800 per full-time employee for medical expenses not covered by insurance.
The Council also observed its first reading of an ordinance to levy the property tax to $1.68 per $1,000 of assessed value. During the public comment, former Mayor Steve Peterson suggested raising the property tax to the maximum $2.10 per $1,000 and reducing the utility tax. He explained that the property tax can be listed as a federal income tax deduction, but the utility tax can't. In order to increase property taxes by more than 1 percent, the city would have to gain voter approval.
Langford asked for data to show what this kind of adjustment would mean for the proposed budget at the next meeting.
No action was taken on the budget, but Van Orman asked Council members to review the proposal and submit questions and prepare for more in-depth review at the next meeting Nov. 16.
Council members will also meet with the Library Board of Trustees Thursday to further discuss the proposed budget for the library. The board issued a letter to the City Council stating it would keep the 2011 budget at $411,474, well over the city's allocated $318,837.
Library Board President John Loucks said the board's interpretation of Ordinance 119 gives the library board power to determine the budget. Former Mayor Peterson reiterated this notion during public comment.
Council Member Josh Beckett questioned the interpretation, saying the Council and mayor have ultimate oversight in the matter.
The ordinance reads that the Council and mayor have authority to "adopt a final budget setting forth the estimated revenues and appropriations." It goes on to say the Council may "increase, decrease, revoke or recall all or any portion of the total appropriations provided for the Liberty Lake Library."
The letter addressed to the Council points to the Library Board of Trustees authority listed in the ordinance allowing them to "perform any and all other acts necessary for the orderly and efficient management and control of the library."