City faces tax hikes, layoffs

Ten of the 16 employees in the Spokane city purchasing department will be gone Jan. 3 under wide-ranging budget cuts proposed at City Hall.

“It’s pretty stressful,” one of the workers said Tuesday. She declined to give her name out of fear that speaking up might reduce her chances of surviving the cuts.

City workers heard grim, though not unexpected, news from Mayor Jim West on Tuesday. West said he is willing to support three small increases in taxes and fines, but even that won’t be enough to fill a $10 million to $12 million hole in the $116 million general fund budget. As many as 120 workers could be laid off throughout city government.

The mayor called it a “dark hour” for city government, but said he hopes to rebuild services through future economic growth.

West met Tuesday morning with employees to explain the city’s budget mess, and during a press conference afterward, he said layoff notices will be sent out in coming days. Workers facing job losses will be given assistance in seeking new jobs. He said that not all of the employees receiving notices will be let go because final budget figures are still being developed.

Layoffs are expected across the larger general tax fund departments of police, fire, streets, libraries and parks, but also from internal services such as purchasing, the city attorney’s office and fleet maintenance.

West said he is going to ask the City Council to raise the property tax levy by $1.5 million next year, the maximum allowed under a voter-approved property tax lid. The increase would cost $12 a year on a $100,000 home. He also said he will propose an increase in the fines for overtime parking. Regular tickets would go from $10 to $15. He also wants a small increase in admissions taxes, he said. The three combined would raise less than $2 million.

The mayor said the city utility tax is already high at 17 percent, so he is not proposing an increase there. Other possible tax increases would have to go to voters, he said.

“As a city, we are going to look different on Jan. 1 than we do today,” West said.

The city’s budget problems stem from sluggish growth in tax revenue against higher costs for salaries, health insurance and jail time. On Monday, the Spokane City Council approved a salary and benefit package with nonuniformed workers in Local 270. Its members went without salary increases in recent years. Under the newly approved contract, they will receive a total wage increase of 15 percent by the end of 2006. In exchange, they will start paying 20 percent of their health care insurance costs instead of the current contribution of 5 percent.

The mayor gave few new details Tuesday on budget cuts that have been emerging in recent weeks through interviews with various city officials and union representatives.

A more detailed budget is expected to go to the City Council by Monday. It will be up for public testimony on successive Mondays beginning Nov. 8 until the council adopts a budget, probably in mid-December.

The Fire Department is facing the loss of as many as 50 firefighters in a staffing reduction that could cut personnel on fire rigs, but leave the city’s 14 stations open in 2005.

In the Police Department, as many as 24 officers could be laid off, in addition to nonuniformed staff cuts. Part of the savings will come from reorganization of the staff, including possible demotions of captains, West said. The mayor also said he wants to maintain neighborhood resource officers, COPS shops and volunteer programs.

The city’s six libraries would see reduced days of operation. The smaller East Side, Hillyard and Indian Trail branches would be open only two days a week. The Shadle and South Hill libraries would be open three days a week, and the downtown branch would be open five days.

Parks officials are using a combination of cuts and fee increases to balance their budget. The cuts include reductions in parks support for senior centers and community centers, as well as a proposal to begin charging for children’s swimming during the summer. Wading pools and the Shadle Park outdoor pool would be closed.

City managers have not filled a lot of vacancies this year in anticipation of the cuts, but that effort won’t be enough to avoid the layoffs, officials said.

The current staffing of 49 positions in the Fleet Services Department will be cut to 44 jobs, but it was not yet clear how many, if any, layoffs would be needed, said Director Don Roberson. The department maintains vehicles for all departments, except the Fire Department. He said the operation is as efficient as any private sector workplace. In the past, Roberson has offered to put his department up for bidding competition because he believes his staff would win a competitive contract. But that doesn’t stop them from worrying about cuts, he said.

“It’s hard for people to keep their chins up not knowing if they will have a job,” Roberson said.