Council To Hear Bleak Budget News Sales Tax, Real Estate Tax Revenues Expected To Drop; Reserves Dwindling

The city of Spokane’s 1996 financial forecast is bleak.

Sales and real estate tax revenues are down this year and aren’t expected to turn around next year.

Reserves that had topped $5 million going into 1995 are expected to drop to only $1.7 million by the end of next year.

Details of the city’s dwindling resources will be revealed to the council during tonight’s meeting.

Early projections include:

Sales tax revenues are expected to drop about $300,000 from 1995’s total of $21.6 million.

The decrease is due largely to more retail centers being located outside city limits.

The city’s property tax levy rate is expected to increase about 1.4 percent next year from $4.43 to $4.50 per $1,000 of assessed valuation.

Because most property assessments also will go up, most city residents can expect the city’s portion of their property taxes to jump about 4.6 percent.

Someone whose home was valued at $97,000 in 1994 and $100,000 in 1995 would pay about $19.72 more on a 1996 tax bill.

Utility tax rates won’t go up in 1996, but growth and proposed rate increases would bring about $550,000 more into the city’s general fund.

The city plans to start charging for apartment fire-safety inspections, adding about $204,000 to its coffers.

Reduced reserves mean the city’s interest earnings could drop as much as 12.4 percent - a loss of about $172,000.

Real estate tax revenues are expected to fall about 10.7 percent, a $150,000 loss.

Tonight is the first in a series of hearings on the city’s proposed spending plan.

A briefing for residents will begin at 3 p.m. in the lower-level council chambers at City Hall, 808 W. Spokane Falls Blvd.

The council’s briefing will start at 3:30 p.m., and the regular meeting will begin at 6 p.m.

, DataTimes