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Most of the crowd in attendance at last Tuesday’s Liberty Lake City Council meeting came to support a funding request by Friends of Pavillion Park for its summer concert program.
By the end of the evening, city leaders had made news by striking an unexpected chord on a proposed property tax increase.
With a vote of 5-0, the Liberty Lake City Council voted against a 1-percent hike in property taxes for 2009, the amount allowable on an annual basis by state law. The rate for 2009 will be set at $1.51 per $1,000 of assessed property value.
City staff had recommended that council approve the slight increase – a similar motion carried without much discussion at the Nov. 3 Millwood City Council meeting. Liberty Lake Mayor Wendy Van Orman included the 1-percent jump in her proposed budget for 2009, a change that would have meant property owners paying $1.53 on each $1,000 of assessed property.
Before the vote, Van Orman made it clear that residents would pay less than the rate $1.58 per $1,000 in place for 2008 due to the overall increase in assessed property value.
Despite the overflow crowd at City Hall, no one came forward to make comments for, or against the tax nor in connection to a public hearing regarding the proposed 2009 budget.
Van Orman said the budget shortfall of $16,388 will “not come out of necessary services like street repair or law enforcement.”
“This is a good gesture by the City Council,” Van Orman added. “I think the community will appreciate it.”
Some members of the council took exception to the view that the city would be operating on a streamlined budget next year. A pay increase of 8 percent for municipal staff is scheduled to take effect for 2009.
“Usually you see a 3-to-4 percent increase,” said Council Member Patrick Jenkins. “I don’t subscribe to the notion that this is a lean budget.”
Van Orman defended the raises, saying they are a result of annual merit and cost-of-living increases. Council will likely address the issue at its Dec. 18 meeting.
“I am comfortable keeping our staff in line with other cities,” Van Orman said.
Liberty Lake’s proposed budget for 2009 is estimated at $12.6 million. A second hearing on the budget is scheduled for the next council meeting on Dec. 3.
In both Liberty Lake and the city of Spokane Valley, a boon in new commercial buildings over the past year has contributed to the escalation in property value. In Liberty Lake, the assessed value is now at $1.7 billion while in Spokane Valley, the total has increased to just over $7 billion.
“We’re seeing a lot of construction of commercial properties and office buildings,” said Ken Thompson, Spokane Valley’s finance director.
Spokane Valley residents will pay just under $1.49 per $1,000 of assessed value next year, according to estimates, an amount less than a cent below the 2008 rate. This year, property taxes are expected to generate around $9.8 million with the amount anticipated at $10.5 million for 2009.
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By
Craig Howard
