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When it came time for the public to speak out on the passage of Spokane Valley’s first utility tax, one of the only voices heard put it bluntly: “No one cares.”
In a unanimous 6-0 decision – Council Member Diana Wilhite was absent – the council approved a 6-percent telephone utility tax that will begin to appear on city citizens’ phone bills in January 2009. The $3 million or so collected has been earmarked to go specifically toward road maintenance.
“We asked ourselves if we want to pay now or pay later,” said Mayor Richard Munson before the vote, adding that the consequences of doing nothing could mean potholed, patchwork streets much like Spokane’s. “If it’s pay later, look to the west.”
Prior to the vote, Ken Thompson, the city’s finance director, said the tax would “significantly help our biggest financial problem – the street fund.”
Financial projections have shown that the street fund will start to head into the red starting next year if more revenue isn’t brought into the city. While the city has been collecting about $2 million annually in state gas tax revenue, that amount doesn’t cover the $4 million needed to keep up with street maintenance like sweeping, snowplowing and deicing. More aggressive preventative maintenance, like crack sealing, would require another $4 million each year.
“We need another revenue source just to get the bare necessities,” Thompson said.
The telephone tax was identified by the city’s Finance Committee because it was a “broad-based tax” that would have little impact on the average citizen. The tax amounts to about $3 on a $50 phone bill.
When it came time for public comment, only one letter was read into the record as being opposed to the tax
The telephone utility tax could be removed by the council if another funding source – such as a street utility tax – could be put in its place. Such a tax would be assessed on those who license their cars and business owners who use commercial vehicles, but it would have to be approved first at the state level by the Legislature.
Council Member Bill Gothmann said the city was left with few choices.
“We all use the roads,” he said. “It’s a good way to spread the tax around for anyone.”
If the city just used the $2.1 million collected in gas taxes, only arterials would be plowed in the wintertime and no potholes would be fixed at all.
“Nobody wants an increase in taxes, but we were given excellent roads by the county,” Gothmann said. “We need to keep them up.”
Deputy Mayor Dick Denenny said the city does not collect a business-and-operations (B&O) tax because Spokane Valley is a border community and needs to remain competitive in drawing new commercial ventures.
“With that off the table, we need to look at other options,” he said.
The city is at a break-even point for road maintenance and will borrow from its general fund until the tax revenue begins to come in next year.
“We’re not doing this rubbing our hands together with great glee,” Munson said. “It’s with great reluctance because we had no choice.”
The mayor wanted to further spread the news by inserting a colorful flyer, which succinctly explains the necessity of the tax and how the money would be used, into to the Spokane Valley News Herald and The Spokesman-Review. The estimated $3,000 cost to do so, however, wasn’t deemed necessary by some.
“Folks are so disinterested,” said Joe Schoener, a city resident. “People don’t care. This place should be jammed with people. Save the $3,000.”
Council Member Steve Taylor agreed.
“This has received good coverage (in the local newspapers),” he said. “I’m sure we’ll be seeing some additional articles.”
Linda Thompson, director of the Greater Spokane Substance Abuse Council, said the flyers might be more effective if they were placed in envelopes with citizens’ phone bills.
“It’s the perfect place,” she said.
Munson said it was wrong to not put out the additional information and that the “flyers work.” He called for a vote, but the measure didn’t pass in a 3-3 tie.
In other news, the council heard from various nonprofit charitable organizations looking for funding from the city in 2009. The total amount requested came to nearly $294,000 – the city only plans to give $36,000.
Requests came from:
- Aging and Long Term Care of Eastern Washington ($25,000).
- The Spokane Valley Arts Council ($14,700)
- Big Brothers Big Sisters ($10,280)
- Coalition of Responsible Disabled ($29,825)
- Hearth Homes, which provides housing for low-income women and children ($150,000)
- Spokane Valley Meals on Wheels ($5,400)
- Project Access, which provides health care to the uninsured ($20,000)
- Vanessa Behan Crisis Nursery ($5,000)
Thompson, who initially planned to ask for $8,500 for GSSAC, said the money was not necessary this year as her organization had recently received a substantial grant.
Economic-development organizations will make their own pitch for funding next Tuesday.
The council will discuss how much they will give the groups at an upcoming meeting.
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By
Mike Huffman
