City facing $900,000 shortfall
AIRWAY HEIGHTS – The city is looking for ways to diversify its revenue stream, including tax increases.
During a Dec. 11 City Council meeting, a finance committee presented a plan to address a $900,000 funding shortfall.
The finance committee recommended adopting a solid waste utility tax, refinancing the interfund loan and increasing water and sewer utility taxes.
City Manager Kevin Richey articulated the financial challenge.
“Expenses have surpassed revenue, prompting us to explore six different options to close the gap.”
Among these options, the committee considered a 5% tax on waste management, estimated to bring in an additional $100,000 annually.
The second option is refinancing a loan, potentially yielding an extra $133,000.
“This approach would involve restructuring our existing loan during the pandemic, providing a financial cushion,” Richey said.
However, one of the more contentious proposals involved increasing water utility tax from 19% to 20%, translating to an approximate $17,000 boost in revenue.
“It would only tax the average customer $3.37,” Richey said.
The committee also considered a sewer utility tax increase, though concerns were raised about inflationary costs not accounted for since a contamination incident, leading to a cautious approach.
Residents urged the council to use caution when raising taxes.
“It’s really up to what you feel comfortable with,” Larry Bowman said.
“I agree with the recommendations of the finance committee,” Veronica Messing said.
Davin Perry highlighted the challenging position in terms of property tax rates in the region.
Richey, however, further emphasized the potential benefits of collecting sales taxes from the Spokane Tribe, drawing parallels with a similar agreement with the Kalispel Tribe.
Clare is an Eastern Washington University graduate and a reporter at Free Press Publishing.
Reader Comments(0)