Lower sales tax receipts seen in 2009

Spokane Valley’s 2009 sales tax receipts are likely to be down twice as much as previously predicted, Finance Director Ken Thompson told the City Council Tuesday.

Thompson had been expecting a $300,000 decrease, but said he now thinks the shortfall will be “closer to $600,000 and it could very well be down even more than that by the time we get to the end of the year.”

Still, Thompson said, “We don’t think that’s a significant problem to us right now.”

He noted the 2009 budget includes a $270,000 reserve for just such a revenue shortfall. Also, Thompson said additional shortages could be covered by the $13.2 million fund balance that otherwise would carried into the 2010 budget.

Other revenue predictions, including a property tax increase of approximately $600,000, are holding up, Thompson told the council.

Although the proposed budget for all funds comes to nearly $111.8 million, Thompson said he expects actual expenditures to be $46 million to $50 million.

The budget includes grants and other money that might be received for designated projects.

That way, no budget adjustments are needed if the money arrives, Thompson said.

There was no testimony during Tuesday’s third and final public hearing on the budget.

Even though Thompson saw no immediate need for adjustments, Councilman Steve Taylor successfully moved to remove a $50,000 study of potential development impact fees to build new parks.

A $250,000 companion study of impact fees for transportation improvements was removed from this year’s budget to help offset the higher-than-expected cost of snow removal last winter.

City Manager Dave Mercier estimated the cost of the transportation impact-fee study may be rise to more than $300,000 if it is added to the 2010 budget. The cost of both studies could approach $400,000, he said.

It would be up to school districts to study impact fees for schools, Mercier said.

Mayor Rich Munson objected to postponing the park impact-fee study, which he said should be done at the “earliest possible moment.”

“Our community expects us to be able to be able to provide parks,” he said.

Councilman Gary Schimmels also wanted to keep the park study in next year’s budget, but wound up voting with the majority to remove it.

An economic downturn is “not the time you want to be burdening developers,” Councilman Bill Gothmann said.

The vote to remove the study from the budget was 5-2, with Munson and Councilwoman Rose Dempsey dissenting.

“What about the police study?” Councilwoman Diana Wilhite asked.

She referred to a proposed $126,500 study that would consider, among other things, whether Spokane Valley should continue to contract with the Spokane County Sheriff’s Office for police service or form its own department.

A group of citizens strongly criticized the proposed study, and the council voted 4-3 in July to scrap it. But the council revived the proposal last month at Wilhite’s request.

A formal decision on the study is scheduled next Tuesday.

In other business, the council resolved two traffic safety issues.

The council stuck with its decision last month not to install a concrete median in Argonne Road to block left turns onto Indiana Avenue that tend to end in T-bone crashes.

Council members were not persuaded by two more crashes since their last discussion. Instead of installing a $47,000 concrete median as city staffers recommended, the council decided to post signs banning left turns from 7 a.m. to 6 p.m. and advising motorists to make their turns at Knox Avenue.

Councilman Dick Denenny moved to try the signs before shelling out for a median. The vote was 5-2, with Wilhite and Taylor dissenting.

Motorists turning left to go to the Marie Callender’s restaurant at 2111 N. Argonne sometimes are hit by southbound traffic they don’t anticipate.

A traffic light at the Interstate 90 overpass creates breaks in two southbound lanes, but traffic in the rightmost lane flows onto I-90 and doesn’t have to stop.

Marie Callender’s manager Dan Barbieri said the signs, as well as the proposed median, would confuse drivers and hurt his and other businesses in the area.

Advanced Dermatology & Skin Surgery also objected to the median, but Police Chief Rick Van Leuven and Spokane Valley High School Principal Larry Bush supported it.

A West Valley School District request to ban parking in the cul de sac end of Shannon Avenue was approved 6-1, with Dempsey dissenting. School officials said the ban was needed so school buses could turn around instead of having to back out of the cul de sac.

Dempsey called the ban “over-regulation,” and said had no trouble negotiating the cul de sac with her motor home. But Schimmels said he once saw a school employee back over a student, “and you just do not forget that.”

Council members directed city staff members to determine whether the ban should be during school hours or round-the-clock to accommodate firetrucks.

Also Tuesday, the council awarded a $101,179 contract to Larson’s Demolition to remove the abandoned senior center at Valley Mission Park.

Parks Director Mike Stone said no decision has been made on how to redevelop the land.

John Craig may be contacted at johnc@spokesman.com.