Council approves budget

Spokane City Council members unanimously approved the city’s $529 million 2007 budget, which includes a new $150-a-month mileage allowance for council members, plus the addition of four police officers and four firefighters.

Many utility ratepayers will see their monthly bills for water, sewer and garbage increase by just more than 3 percent next year. However, people who don’t irrigate heavily and commercial garbage customers will see smaller increases.

Council members made relatively minor changes to the budget submitted by Mayor Dennis Hession last fall. Councilman Al French described the budget as a “good compromise” between the mayor and council.

Despite an increase in tax collections because of economic growth and higher energy bills, Hession opted to maintain current staffing levels for most departments pending an efficiency study by a consultant.

He did ask for and receive 10 new positions in the engineering, building and planning departments to handle an expected increase in work due to new construction, including the planned Kendall Yards commercial-residential project on the north bank of the Spokane River.

Council members insisted that public safety needed a boost. They approved the addition of four firefighters to increase staffing on Engine No. 15 based near Hillyard from three to four on-duty firefighters. It takes four firefighters to staff one position under the department’s four-shift rotation. Firefighters work 24 hours, then get three days off.

The council also approved hiring two neighborhood resource officers and two police detectives to help stem rising neighborhood crime.

A survey conducted by the council showed that police, fire and streets are the top priorities of city residents who responded.

“We want to get these police officers on the street,” said Councilwoman Nancy McLaughlin.

The city is expected to end 2006 with $4 million in extra cash due to higher tax collections. The council voted to put $2 million of that money into a restricted reserve account in part to satisfy bond rating agencies that want the city to have a 10 percent reserve based on the size of the $134 million general tax fund. City officials hope to achieve that reserve – $13 million – by the end of 2008.

“We’ve got to make some significant contributions to it this year,” French said of the council vote to add the $2 million.

Rising labor, health and energy costs have been outstripping growth in taxes for several years. The city underwent substantial budget cuts in 2004 and 2005 before voters approved a modest increase in property tax collections to prevent more cuts this year. The tax on city utilities also was raised from 17 to 20 percent for 2006, and that rate will continue for 2007.

The additional property tax expires at the end of 2007, leaving the city with a possible cash crisis going into the 2008 budget year. The general fund in 2007 is expected to have a $3 million surplus on $137.7 million in revenue.

French said the general fund was increased by about $2.5 million to pay for additional positions in public safety and economic growth next year.

Council members in a 4-3 vote approved a plan to allow themselves $150 a month for car expenses to defray the cost of traveling to community events. They must fill out a voucher to qualify.

Council President Joe Shogan was joined by council members Rob Crow, McLaughlin and Bob Apple in saying yes to the allowance. Council members Brad Stark, Al French and Mary Verner voted no.

McLaughlin said she fears voters may not agree with the allowance, but it is a matter of fairness that council members receive compensation. “Let’s take a political hit,” she said.

Council members also voted 5-2 to increase their travel budget by $8,000 next year.

The council also agreed to create a customer service desk next year and added a new planning department position for neighborhood plans.

The council rejected a request by Fire Chief Bobby Williams to add another fire marshal to help approve new construction next year.