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Council approves property tax increase for 2015
11/25/2014 12:15:08 PM
By Craig Howard
Splash Contributor
Each autumn, the Liberty Lake City Council begins the mandatory task of approving a budget for the upcoming year. Before applying its stamp of endorsement, the governing board must also determine how the property tax rate will affect the final numbers.
Over the years, the math has varied, with annexations and the annual decision of whether to raise the property tax the 1 percent allowed by law all impacting the rates. The economy has played a role, as well. In 2011, with sales tax revenue impacted by the nationwide recession, the city opted to access the property tax capacity it had "banked" in previous years, upping the rate by 3.10 percent. The hike represented the only year from 2009 to 2014 that the city did not leave the rate alone.
Mayor Steve Peterson's preliminary budget for 2015 included a 1 percent property tax increase, meaning a home assessed at $250,000 would pay an additional $4 next year. At its Nov. 18 meeting, City Council approved the 1 percent hike by a 6-1 vote with Mayor Pro Tem Cris Kaminskas in the minority.
At the first meeting in November, those around the dais appeared to be leaning toward the slight upturn.
"I'm in favor of it," said Council Member Dan Dunne on Nov. 4. "I believe it is fair and would serve the city well."
Council Member Odin Langford said he would support the increase, noting that the city has historically approached property tax from a conservative angle while providing residents with an abundance of capital projects and reliable services.
"This is a great deal," Langford said.
While Liberty Lake's property tax rate has not ballooned significantly in the past decade, the same cannot be said for the city's assessed property value. In 2003, the estimated worth of property in municipal limits stood at $481,164,470. In 2014, that number had increased to $1,114,307,278. Next year, the projected value is $1,193,517,301.
Even with a 1 percent addition in 2015, Liberty Lake will boast one of the lowest property tax rates in the region at $1.7598 per $1,000 of assessed value. By comparison, the rate in the city of Spokane Valley sits at $2.0448. Millwood charges $2.10 while Spokane comes in highest at $3.03.
"We provide a significant level of service but our levy rate is lower than all these other cities," Finance Director R.J. Stevenson said.
Waste management transition
In the other major discussion on Nov. 4, council heard from representatives of Waste Management Inc. regarding the transition in citywide waste collection and disposal services that took effect on Nov. 17.
While Waste Management trucks will still collect trash and recycling on Mondays, the timing of the routes will change, according to Tami Yager, public sector manager for Waste Management. Yager said residents should make sure to move their garbage and recycling bins to the curb on Sunday night or by 6 a.m. Monday morning in order to ensure collection.
Billing will remain on a quarterly schedule although clients set up on auto pay will need to change their account numbers, Yager said. She added that the company is sending out letters to customers in Liberty Lake to alert residents of any necessary changes.
Since the city is taking over the facilitation of waste management, the process will involve closing out accounts that have been under the umbrella of state regulations to this point, Yager said. The other significant change involves solid waste from Liberty Lake being hauled to the newly renovated transfer station operated by Sunshine Disposal and Recycling on University Road just north of Interstate 90.
On Nov. 4, council voted in support of Peterson signing a waste collection service agreement with Sunshine Disposal while approving the first amendment to the solid waste collection agreement with Waste Management and authorizing the mayor to sign the amendment.
While Waste Management and Sunshine Disposal and Recycling will collaborate on the collection and disposal of residential waste, the companies will continue to compete against each other on the commercial side of collection in Liberty Lake. So far, the status quo appears to be in order.
"We have yet to receive a single call from a business in Liberty Lake," said City Administrator Katy Allen.
Debate over ballfield addition
The cost of capital projects and municipal services has generated plenty of fodder for discussion at Liberty Lake City Hall over the years.
On a night when not a single public comment was received on the city's 2015 proposed budget, there was no shortage of dialogue over a late addition to the Liberty Lake Ballfields and the dynamics of the snow removal contract with longtime city contractor Peplinski Construction.
The first conversation at the Nov. 18 council meeting arose when Allen outlined the projected price of a building that would house a restroom and storage space on the grounds of the Liberty Lake Ballfields, a project that added two baseball diamonds to a parcel near Liberty Lake Elementary this summer. While referring to the original estimate of $160,000 for the restroom alone, Allen told council that the addition of storage room for equipment would bring the price to $244,000.
Allen said lugging gear back and forth from the diamonds would present "a logistical challenge and efficiency issues."
To date, the city has spent $974,110.27 on the project. Kaminskas was one of several around the dais who expressed concern with going well beyond the $1 million mark by adding the proposed building.
"I understand we need it, but I'm having a real struggle with the cost," said Kaminskas who referred to the first approximation of $800,000 for the overall construction.
Council Member Keith Kopelson said he was "frustrated" with the shifting numbers.
"Here's another quarter million dollars we're talking about," he said.
The design of the building would resemble the restroom facility recently installed at Town Square Park. Allen acknowledged that the budget had increased significantly but reminded council that the parameters of the project had changed since the initial discussion of one diamond at $500,000.
"I don't want to overspend budgets either, but the variable tends to be the scope," Allen said.
While no final decision on the building was made Nov. 18, Allen told council the city does have funds available for the project through the real estate excise tax.
The other ballfield debate had to do with drainage issues at the site, specifically a collection of quagmires that have cropped up on the perimeter of the fields. City Engineer Andrew Staples said the city was keeping an eye on the puddles in hopes that "the turf growing in would fix the problem."
"If that doesn't solve it, this would definitely be a warranty contractor issue," he said.
Snow removal contract
Historically, the task of renewing the snow removal and de-icing agreement with Peplinski Construction has been a formality, but on Nov. 18, several council members questioned why there had not been a more competitive process involving the contract for clear and safe roads each winter.
An action item on the agenda - which would have approved the agreement with the Newman Lake company and authorized Peterson to sign the contract - was tabled after Kopelson and Langford suggested the city collect bids on the work.
"(Peplinski) does good work but just the fact that you do what you're supposed to, shouldn't mean you're automatically awarded the contract," Kopelson said.
Langford said comparing prices and securing a cost-effective agreement "is a matter of perception and good business."
The 2014 contract with Peplinski covers $70,000 with $49,000 having been spent to this point.
Peterson agree that it would be a good idea to talk with other cities and gather bids, but emphasized the deliberation would not put streets in peril this winter.
"Our streets will not be filled with snow," he said.
SVFD purchases new property
Spokane Valley Fire Chief Bryan Collins told council on Nov. 18 that plans to move the existing fire station on Harvard Road to a site on Country Vista have now been adjusted after SVFD purchased a different 50,000-square-foot parcel on Country Vista between Legacy Ridge and Henry Road.
Collins called the eventual transition of the Harvard station to the new site "a win for us and a good thing for the city."
Collins said the plan is to have the move completed by the end of 2017. The new location will provide better access to Interstate-90 and the new connector road across Henry, he added.
"It meets our response goals," he said.
Collins said the department had "worked out favorable conditions" with the Liberty Lake Sewer and Water District to purchase the site on Harvard which sits just to the south of the LLSWD treatment plant. He added that the developer of the original SVFD land on Country Vista had bought that property back.
• • •
In the Books, On the Docket
A look back and ahead at news from City Hall
By Craig Howard
Splash Contributor
IN THE BOOKS (NOVEMBER)
• Steve Skipworth, a commissioner with the Liberty Lake Sewer and Water District, told council on Nov. 4 that the district had received word from Whitewater Creek Inc., the Hayden-based development company, that it was withdrawing its proposal to add 700 ground source heat pumps to the Lakemore development. See the full story on page 9.
• Mayor Steve Peterson presented a proclamation to Ron Schoenberger, husband of the late Shirley Schoenberger, officially naming a portion of the municipal trail system to the east of the Trailhead at Liberty Lake Golf Course "Shirley's Trail." As one of the founding members of the Liberty Lake Trails Committee in 1995, Shirley had campaigned for a trail down the hill from the golf course.
• The finance committee reported that, through October, the city has already reached 107 percent of its projected sales tax revenue for 2014.
• City Administrator Katy Allen reported on a recent meeting with representatives of the Central Valley School District involving the possibility of a new elementary school near the site of the recently constructed Liberty Lake Ballfields. She said CVSD Superintendent Ben Small clarified that any construction would not jeopardize the fields.
• By a vote of 6-1, council approved a 1 percent property tax increase for 2015 on Nov. 18. The hike will mean a home assessed at $250,000 will pay an additional $4 next year.
• Allen said the Fallen Heroes dedication ceremony at Town Square Park on Veterans Day was well-attended despite freezing conditions. She added that the event and project in general has drawn "nice comments from the military community."
• Allen told council that Spokane County has changed the property tax assessment for noxious weed maintenance in Liberty Lake and Spokane Valley to $1.80 per parcel, down from $3. The change, she said, will ensure that all county residents are paying the same rate.
• The proposed changes to the municipal sign code are now in draft form for council review. The plan is to take the document to the community development committee, the planning commission and finally the City Council for consideration.
• Police Chief Brian Asmus provided an update on the I-502 moratorium, banning marijuana sales, producing and processing within city limits. The current lid will expire in February 2015. Asmus presented a proposed map that would expand the buffer zones prohibiting I-502 activity within 1,000 feet of STA bus stops, school bus stops, churches and trailheads.
• Council unanimously approved a pair of land use proposals on Nov. 4 - the Legacy Ridge preliminary plat and the River Crossing North addition plat.
ON THE DOCKET (DECEMBER)
• The Fallen Heroes Circuit Course committee will give a presentation at the Dec. 2 council meeting.
• Jim Nelson of DA Davidson will lead a workshop discussion on bond financing at the Dec. 2 meeting.
• Confirmations and reconfirmations of planning commission members will take place on Dec. 2.
• Council will consider a reimbursement resolution for capital project expenditures approving certain public improvements and public improvement costs. The discussion will also include an update on the Local Infrastructure Financing Tool (LIFT) funding mechanism.
• A pair of first read ordinances are scheduled for Dec. 2 including the adoption of the 2015 city budget and a solid waste comprehensive plan.
• The city will hand out employee recognition awards to Trevor Ragan and Katie Wiykovics (both five years with the city) and Georgette Rogers (10 years) on Dec. 16.
• Second read ordinances on the 2015 budget and the solid waste comprehensive plan are scheduled for Dec. 16.
• Council is expected to award the contract for reconstruction of Appleway Avenue from Liberty Lake Road to Fairway Lane on Dec. 16.
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