Spokane Valley Fire Department putting freeze on tax rate
Chief says move is to help take burden off citizens
The Spokane Valley Fire Department will forgo a voter-authorized tax increase next year because of the plunging economy.
Chief Mike Thompson said fire commissioners decided Nov. 24, at his recommendation, to freeze the autonomous district’s basic property tax rate at this year’s $1.43 per $1,000 of assessed value.
Voters last year authorized the district to restore its basic tax support to the statutory maximum of $1.50 per thousand and to keep it there for six years.
The district serves unincorporated areas as well as the cities of Spokane Valley, Liberty Lake and Millwood.
Because of the 1 percent lid on budget increases, in combination with rising property values, the district’s basic tax rate had fallen to $1.28 per thousand when it was reset this year to $1.50.
Although rising values have again driven down the rate, Thompson said commissioners didn’t feel the time is right to restore the maximum.
“They were concerned about the impact it would have on constituents,” Thompson said. “We just wanted to be cautious and not overextend ourselves or our budget.”
The decision will affect only capital projects if voters agree to replace a separate maintenance and operation levy before it expires at the end of next year.
Thompson said commissioners haven’t set an amount for the replacement levy, but they must do so by Monday to get it on the February ballot.
Three years ago, voters approved an M&O levy of nearly $11.8 million, at an estimated rate of $1.70 per thousand. Since then, the rate has slipped to $1.37.
Thompson said the M&O levy is essential for day-to-day operations “because it’s almost 50 percent of our budget.”
Commissioners have set next year’s budget at $26,857,809.
Freezing the district’s basic tax rate at $1.43 per thousand is expected to cost the district about $685,000 next year, Thompson said.
Voters authorized only six years of rate restoration, so the one-year give-back can’t be made up later.
Because the district pays for capital improvements without borrowing money, plans to build a new Station 10 at 17217 E. Sprague Ave. will be placed on hold for at least a year.
Restoring the basic tax rate early this year allowed the district to build a new Station 9 at 12121 E. 32nd Ave. Like Station 10, the old Station 9 – a converted house at 11514 E. 16th Ave. – is too small for most trucks.
Station 10 is to be rebuilt at its current site, which now has only a doublewide mobile home and a garage.
“We’re going to take a look at it again toward the end of next year to see whether it can be resurrected and built in 2010,” Thompson said.
He said a new federal inspection requirement for firefighters’ turnout gear may put a $300,000 dent in next year’s capital budget.
Boots, pants, coats and helmets must be sent out for tests to make sure they still provide adequate protection against fire.
Some people are saying it could take two or three weeks for us to send it out and get it back,” Thompson said. Meanwhile, firefighters will still need protective clothing that fits them.
That probably will force the district to buy a second set for each firefighter, which could cost $300,000, Thompson said.