Mayor outlines budget

Despite the nation’s worsening economic crisis, Spokane Mayor Mary Verner has an optimistic view of the city’s financial future.

Verner, in her proposed $619 million budget for next year, predicts tax revenue will grow at least 2 percent, enabling her to hire more police officers and spend more on social services when other government leaders in the Northwest are bracing for cuts. If her revenue prediction is wrong, Verner hopes to balance the budget by delaying the additional hires.

Absent from her spending plan is the $2.5 million needed to expand the local animal shelter as part of the city’s agreement last spring to join Spokane County’s animal control system in 2010.

City Administrator Ted Danek said even though the shelter isn’t in Verner’s proposed budget, the mayor is working with council members to determine how to come up with the money.

“In one way, shape or form, we’ll get it financed and up and running by 2010,” Danek said.

In August, the City Council rejected Verner’s plan to ask voters for a property tax increase to fund the shelter, a police evidence building and other projects.

City Councilman Mike Allen said he envisions the city floating a public safety tax proposal next year that would include money for the shelter. The city already plans to ask for renewal of a property tax for fire equipment.

Verner aims to avoid cuts in 2009 mainly by diverting a portion of utility fees collected for future sewer and water construction projects into discretionary spending accounts for public safety, parks, libraries and other programs. The city would change how it uses the utility tax and would absorb the cost, at least temporarily, rather than pass it on to utility customers.

That worries some councilors.

“My concern with this approach would be we are essentially mortgaging our future to get paid today,” Allen said.

But Verner has said the amount easily can be dealt with as the city considers overhauling utility charges and spending in the coming months.

“There’s no long-term negative effect,” she said last month. “There’s not even a short-term negative effect.”

Verner would add little to the budget in 2009, except for boosts in wages and benefits called for in labor contracts and money to deal with other cost increases.

Still, there would be a few additions if the mayor’s financial projection holds.

Six new police officers and an extra Fire Department employee are scheduled to be hired halfway through the year. That’s half what former Mayor Dennis Hession planned in 2007. If sales tax revenue is worse than projected, those hires would be delayed until 2010.

Verner has said she remains committed to adding the dozen officers yet to be hired out of 24 first proposed by Hession.

Verner plans to hire a police ombudsman next year. The job was funded in 2008 but not approved by the council until last month.

She also plans to hire an annexation director – a job put in this year’s budget by former City Councilman Brad Stark but also left vacant.

The mayor also has proposed increasing human services spending by $184,000, to $1 million. Much of that would go to agencies that help the poor and disadvantaged.

That extra spending appears to have some support on the council.

“I’m normally one that would say that human services funding belongs in the private sector,” City Councilwoman Nancy McLaughlin said. “In light of where the economy is right now and the many, many needs, I think I’m OK with that at this point.”

Other budget highlights:

•Verner proposes a 1 percent property tax increase. That’s the most the city can ask for and the same amount most local governments ask for annually.

•A 3.5 percent increase in trash, water and sewer rates. The city didn’t increase rates this year.