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Liberty Lake Mayor Proposes 5% Lower City Budget without 1% Property Tax Increase

Strategic Insights

— 2 min read

Liberty Lake Mayor Wendy Van Orman has submitted a 2010 city budget that is 5 percent lower than last year's, totaling $12.2 million with a general fund of $6 million. The proposal does not include the annual 1 percent rise in property tax the city is allowed to take, citing the current economic climate and high unemployment rate. Van Orman emphasized that it's time for municipalities to "live within their means" and not raise property taxes.

Key Takeaways:

  • The 2010 city budget is $12.2 million, a 5 percent decrease from the 2009 total budget of $12.6 million.
  • The general fund budget decreases by 8.5 percent from $6.5 million in 2009 to $6 million in 2010.
  • The city council voted down the 1 percent property tax increase last year but "banked" the 1 percent, which allows the city to maintain its base for future tax collections.
  • The decision not to raise property taxes will save the average homeowner about $8 per year, but will cost the city about $23,000 in revenue.
  • The average tax rate per thousand will rise from $1.51 in 2009 to $1.55 in 2010 due to a 3 percent drop in the city's assessed value.
  • Staffing reductions include cutting the deputy city clerk and building inspector positions, reducing a planning assistant from full-time to part-time, and eliminating cost of living adjustments.
  • The police department will not receive new cars, and vehicle maintenance and supplies will be cut by 21 percent.
  • The Recreation Department will lose half of its budget for children's programming, but the city plans to collaborate with neighboring cities and counties to offer programs more cheaply.
  • The mayor's first priority is to address high unemployment, and she does not plan to decrease funding for the police department or essential services.

Statistics:

  • Unemployment rate nationwide: 9.3 percent
  • Decline in sales tax revenue: 12 percent
  • Estimated decline in city's assessed value: 3 percent
  • Average tax rate per thousand: $1.55
  • Revenue lost due to 1 percent property tax increase: $23,000
  • Number of positions eliminated: 3
  • Decline in vehicle maintenance and supplies allocated: 21 percent
  • Number of residents benefiting from the after-school program (delayed): unknown
  • Number of homes with 100,000+ miles on police department cars: several

Sources:

  • The Spokesman-Review
  • Liberty Lake Mayor Wendy Van Orman
  • Spokane County Assessor's Office
  • Spokane Valley and Spokane County (collaboration on programs)
  • McClatchy-Tribune Information Services
  • The Permissions Group Inc.

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