Council approves levy lid lift

The Cheney City Council voted unanimously at its July 28 meeting to pass an ordinance lifting the city’s state law imposed levy lid limit and send a proposed property tax increase to the Nov. 4 general election ballot.

The proposed increase would raise the current levy amount of $2.4038 per $1,000 of assessed property valuation to $3.10 per $1,000 of assessed valuation. If approved, the levy would be lifted for a single year, but would remain permanently in place for future years, meaning it would always be $3.10 annually, but never lower, Finance Director Cindy Niemeier told the council.

According to information from the city’s presentation, Cheney’s current total assessed valuation is $515,883,823, which generates $1,236,000 in revenue to the city’s current expense — or general — fund, based upon the current levy rate. If the tax increase is approved by voters, it could mean an additional $410,975 in revenue to the general fund, based upon an estimated 2016 total assessed valuation of $535,028,190, a number Niemeier said could go higher or lower.

City Administrator Mark Schuller said Cheney has come to this point because of a number of circumstances, namely loss in shared revenue from the state and sales tax revenues that have not measured up to hopes. Over the past several years the city has reduced its staff by at least five positions, consolidated other jobs and tapped as much reserve account funding as possible without putting those accounts in jeopardy of not being able to meet an emergency.

On the other side of the coin, Schuller said the city has many needs, especially in additional personnel and new equipment, in departments paid for through the general fund — namely police and fire. There are also capital projects such as renovating the city’s popular swimming pool, as well as maintaining the new park on Betz Road and upgrading other facilities.

“We’re at the point now where we need to take our needs to the voters and ask them what kind of levels of service do you want to see for the city and how do you want to pay for it,” Schuller said.

Schuller said he, Niemeier, Mayor Tom Trulove and other staff members looked at various ways of providing additional revenue, and determined that the fairest way was the proposed property tax increase. With the exception of governmental holdings, property taxes apply to all properties in the city, including rentals, and come from areas that rely heavily on the services those taxes provide.

Council members were supportive of the levy lid lift proposal. Councilwoman Teresa Overhauser said the city has “been on the edge for a long time” when it comes to current expense funding, and that it was “fair and right” to ask the public to consider the proposal.

“Is there a plan B?” Councilman Chris Grover asked.

“Our plan B is cuts in service, and we don’t want to cut services,” Schuller replied.

Councilman John Taves said he would like to see more of a plan, a list, of how the money raised would be spent if approved.

The council fast tracked the ordinance by holding all three readings and approving its final passage in summary and title form in order to meet an Aug. 4 deadline to submit the necessary paperwork to the Spokane County Auditor’s office for inclusion on the Nov. 4 ballot.

John McCallum can be reached at [email protected].