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When it came time to approve the city of Spokane Valley’s 2009 budget last month, the news was blunt – but not wholly unexpected.
“Sales tax will be down about 6 percent,” Ken Thompson, the city’s finance director, told City Council members at their Oct. 28 meeting when they approved the final budget.
He did, however, amend that statement with a bit of good news.
“It’s not a problem, though,” Thompson said. “We can handle the revenue changes.”
While it may be true that the projected $300,000 or more decrease in revenue from sales is likely indicative of the overall flat – some would say outright terrible – economy at the moment, that amount really is a drop in the bucket when dealing with an overall budget of just shy of $111 million. And there is a reserve set aside to ease the blow when people aren’t spending in Spokane Valley, Thompson said.
On the glass-half-full front, property tax revenues will be about $1.53 per $1,000 of assessed valuation – generating another $600,000 in revenue for the city. The assessed value of Spokane Valley property is nearly $7 billion.
On the flipside, slowing of property and home sales means less in the way of the Real Estate Excise Tax. There will be about $300,000 less available to the city of Spokane Valley next year.
Also down in 2009 are gambling tax revenues – to the tune of about $200,000.
“We think it’s because of the competition of larger casinos in surrounding areas,” Thompson said.
City road engineers are hoping for a less severe winter, but about $500,000 has been set aside to replenish the Winter Weather Reserve Fund, which was depleted due to the snowy weather in 2008. The money will be repaid by the street fund to the general fund in the future.
Also, fuel tax receipts will continue to be low and not cover the cost of maintaining city streets. While a new 6-percent utility tax on telephone use will make up some of the difference, there is still money needed to do the work properly in years to come.
The city is also conducting an audit of the $15 million spent each year for public safety purposes through a contract with the Spokane County Sheriff’s Office.
While there has been lots of criticism of the council for going forward with a review of the sheriff’s contract, city citizens have been consistently mum on the budget itself. The consensus – at least among council members – is that they must be doing an OK job in that area.
At the meeting on Oct. 28, Council Member Diana Wilhite said it is often difficult to keep the budget reined in when there are so many services the city provides.
“It’s pretty tough job to hold the line,” she said. “We’re very serious to make sure we live within the revenue we get.”
Mayor Richard Munson agreed, adding that many other governments find themselves in financial trouble because they do not look ahead at the looming financial picture.
“We’re probably unique to this region,” he said. “If you don’t see the edge of the cliff, you’re going to fall over it.”
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By
Mike Huffman
