Budget approved; future street repair funds set aside

Liberty Lake City Council approved the 2006 budget on Tuesday.

The city expects to take in a total of about $9.7 million in taxes, fees and grants next year and plans a general fund budget of about $4.1 million.

The 2006 budget places an emphasis on setting aside money for street repairs. The city’s planning department recently estimated that replacing the city’s 27 miles of roads, which are expected to wear out sometimes in the next 20 years, will cost at least $15 million.

To help meet those needs, the city is transferring $200,000 into a street reserve fund and redirected $189,420 to fund major street repairs.

The budget also includes hiring a full-time police officer in April, a full-time facilities technician, a part-time library page and a part-time financial analyst.

Tax increment financing explored

Representatives of Spokane Valley Fire Department attended the council meeting to learn more about tax increment financing for an area south and north of Interstate 90 along Henry Road.

The city is discussing using the financing to create new roads and possibly add sewer and street lights.

TIF financing is a municipal funding tool that allows cities to issue general obligation bonds to finance community revitalization. The bonds are repaid by capturing a portion of regular tax dollars to make improvements that attract development, which increases value.

Local taxing districts, such as fire services, receive fewer tax dollars, but the percentage of taxes going to school district remains the same. Utility district using tax dollars to repay debt are also exempt from receiving fewer taxes from a TIF district.

Possible partners in the project include Liberty Lake, Spokane County and developers and land owners, including Liberty Lake Land Co. and Centennial Properties Inc., which is a subsidiary of Cowles Publishing Co., owners of The Spokesman-Review.

During a Wednesday phone interview, Assistant Fire Chief Dave Lobdell said the fire district is considering supporting the measure, but needs more information.

“We’re certainly open to it but we need time and more information before we can make a final determination,” Lobdell said.

Spokane Valley Fire District would initially receive a reduced portion of the taxes it’s entitled to from the formed tax district. It would eventually get 100 percent of its due – which could include a substantial increase when property values rise – after the infrastructure improvements are paid off.

However, the benefit would depend upon whether the added commercial buildings put an unmanageable burden on the district, while it’s receiving reduced taxes.

Instances where it wouldn’t work include businesses that would create an immediate need for additional manpower or expensive equipment.

“The impact could possibly exceed the benefit,” he said.

However, Lobdell believes the fire district could benefit if the investment of tax dollars increases property values, as intended, and generates more taxes for the district to fund services

Council approves agreement with architects

The council also approved an agreement with Bernardo-Wills Architects, P.C., to inventory city-owned properties and develop a master plan.

Planning will include the 6.4 acre property purchased by the city for a community center, library and perhaps other municipal buildings.