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City finance director: 'We had an excellent year'
2/4/2015 1:00:09 PM

By Craig Howard
Splash Contributor 

Liberty Lake Finance Director R.J. Stevenson strides to the podium at City Hall with an air of confidence these days. 

Hired by the city in 2011, Stevenson arrived at a rare time of fiscal turbulence for Spokane County's easternmost jurisdiction. A year earlier, staff had raised the possibility of a $700,000 deficit going into the next budget cycle along with proposed cutbacks at the municipal library and city-owned golf course. While coping with drastic declines in sales tax revenue, the city implemented a controversial 6-percent utility tax on phone, cable, gas, electric and garbage bills in late 2010 to offset the anticipated losses.

Despite dark clouds of economic gloom, Stevenson found a silver lining in August of 2011, shortly after his hire. 

"I'm enthused about the budget process," Stevenson said. "My goal is to provide a framework for what they've put in place and look at where the city wants to go financially."

Liberty Lake would gradually weather the storms of the Great Recession to see retail activity and construction return to pre-recession levels. The utility tax was eventually reduced to 3 percent across the board with funds now dedicated exclusively to street improvements.

While municipal finances may have stabilized in recent years, some on City Council expressed hope that city staff could provide a more detailed chronicling of the balance sheet. Council Member Bob Moore, appointed to the governing board last June, brought an extensive background in banking and finance to his new role and requested that Stevenson lead the charge to gather and distribute regular updates on revenue and spending.

The latest report came at Tuesday's council meeting as Stevenson provided a recap of December 2014 numbers, highlighted by revenue for the general fund and street budget coming in above projections at $6,736. The two funds draw income from property tax, sales tax and utility tax as well as other municipal revenue. Meanwhile, expenses from both funds registered below the projected $7,084 amount for the month at $6,534.

The December totals paralleled a trend for 2014 that featured total city revenues of $6.7 million eclipsing overall expenses of $6.5 million. The reserve fund balance now stands at $1.2 million. 

"We had an excellent year," Stevenson said. 

The numbers comprise a summation for council known as the "financial dashboard," a monthly check-in that premiered last November. The dashboard features a gauge of the latest state of the general fund and street fund that can range from the low end of "fundamental fiscal stress" requiring council action all the way up to "exceeding expectations." The city currently sits at the positive end of the spectrum. 

Sales tax revenue in 2014 was up 21 percent from the previous year, finishing at $2,582,630. Retail pillars like RVs, cars and housing drove the increase. Income from building permits weighed in at $384,703, up 8 percent from 2013 while property tax brought in $1,887,225.

Returns from the utility tax also soared in 2014. The total of $727,435 represented an upturn of just over $72,000 from 2013. Stevenson pointed to a trio of reasons for the increase, starting with a $25,000 windfall from the garbage tax the city received after Waste Management corrected a mistake in the application of the tax. A hike in natural gas rates and colder than normal temperatures also contributed to the revenue surge from the gas tax.   

Stevenson's presentation on Feb. 3 also included a look back at city projects from the past year, divided into work above and below $500,000. In the costlier category, the Liberty Lake Ballfields were completed on budget while Town Square Park came in below budget. 

A slew of remaining projects, including the shade structure and lighting at Pavillion Park, the library reading garden, roof at the library and police building, improvements to pedestrian safety and the banquet area at the Trailhead clubhouse were all completed at below the projected amount. Upgrades to the barn at Rocky Hill Park, translating into added storage, are nearly finished and on track to check in well below budget. 

"This was a report card," said Mayor Steve Peterson after the meeting. "It shows good leadership and good stewardship of the citizens' money. Financially, Liberty Lake is doing exceptionally well. It's a ripple effect of a safe, clean and green city."

Pavillion Park Master Plan
With council mulling over the possible addition of a permanent concession stand and other amenities at Pavillion Park, the city provided a review of the master plan for the greenspace on Tuesday. Amanda Tainio, Planning and Building Services manager, led a presentation that included input from Mike Terrell, a Liberty Lake-based landscape architect who worked on Pavillion Park when it rose from an obscure patch of farmland in the mid-1990s.

The first phase of the park began in 1995, spurred by community advocates like Lud Kramer, Margaret Barnes, Jim Frank, Ross Schneidmiller and Leslie Zilka. The space where the trademark pavilion stands today was originally slated for the playground that now sits in the eastern part of the park. 

"It was the Friends of Pavillion Park saying the bowl area needs a shelter and a stage so we can have community events," Terrell said. 

While areas like the basketball court and horseshoe pits may not be utilized to the degree as tennis courts and the baseball diamond, the city received enough feedback to leave both in place when planning for the Air Force installment of the Fallen Heroes Circuit Course last year. 

Tainio said around 90 percent of the park is now built out with the exception of a ruddy dogleg portion to the south. There has been talk of adding a community garden to the space. Recent improvements to the park include new lighting in the parking lot and along walkways, irrigation upgrades, landscaping features and replacement of the shade sails on the pavilion. 

"If done right, you can add a few more amenities," Tainio said. 

In other city news:
• Council will hold a workshop on the municipal sign code on March 3. A demo version of an electronic changeable sign has been pitched outside City Hall this week to provide an example of signs being proposed along I-90 as well as Country Vista and Appleway. City Administrator Katy Allen said the city is hoping for feedback on the sign from residents. 

• The city is close to finalizing a contract with a vendor for July 4 fireworks. The event would cost $10,000. 

• The city has transitioned to a new phone system at City Hall as well as the library and police station. Allen said the upgrade should make communication with municipal staff more efficient.

• Stevenson gave an overview of purchasing policies for contracts and agreements, noting that all purchases over $5,000 must receive council approval. He said staff will verify that the city is receiving the best value for new contracts as well as when contracts are renewed. 

• A pair of workshops are scheduled for the Feb. 17 council meeting, including a discussion about a possible municipal swimming pool and an update on construction in the River District.

• Liberty Lake Sewer and Water District Commissioner Steve Skipworth thanked city staff for their interest in the district's six-year water comprehensive plan. He said that LLSWD continues to promote water conservation and smart water practices, noting that the rate of water use reflects the emphasis. In 2000, the district provided 800 million gallons of water to around 1,700 customers and now distributes around 1 billion gallons annually to over 3,000 customers, an increase of only around 25 percent. "I'm glad to see the city and (Lake Protection Manager) Jeremy (Jenkins) working together on water conservation ideas," Skipworth said. "We're trying to see how we can water these areas in the most efficient way possible." 

• The next City Council meeting is set for 7 p.m. Feb. 17 at City Hall. 

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