According to the City of Liberty Lake Fiscal Year 2017 Budget(adopted), income from property taxes makes up 28% of the revenue at just over $2 million.
Liberty Lake law enforcement expenses make up 26% of the expenditures at just over $2 million.
With 100% of property taxes funding only police and library, the other two main sources of revenue (sales tax and utility tax) are left to pay for the rest of the city’s expenditures.
Let’s explore some facts and some assumptions.
- “Based on current land use designation , we know that Liberty Lake has the capacity to become a City with a population of 25,470”, as stated by the Mayor’s Message in the Fiscal Year 2017 Budget.
- According to the U.S. Census Bureau, the population of Liberty Lake is just over 9,000.
- Assuming we keep a ratio of about 1 officer for every 1,000 residents, if the population was 13,000 the City would need 4 more officers, more support staff, more vehicles, and likely more space.
- The department will have aged a bit when the population reaches 13,000. This means the City would also need to start replacing outdated police vehicles and equipment. It also might have start covering pensions for retired staff.
This scenario of 100% of property taxes being applied to only one expenediture raises a few questions and concerns.
- Will property tax revenue grow at the same rate or more than the expense growth for the police department?
- If the property tax revenue is not proportionate to the increased cost of policing a greater population, where will the money come from?
- If the property tax revenue is not proportionate to the increased cost of policing a greater population, would the level of police services need to be reduced?
The big question: Does Liberty Lake need to at least raise property taxes?
The answer depends on what happens in the coming years, decisions city council will make in the coming months, and the behavior of consumers. With a community resistant to growth, yet asking for more services; there may be no choice but to raise taxes.
However, there may be a way around it. Here is one idea: shop local.
Assuming the economy stays strong, sales tax could provide a huge bump in revenue without raising the rate or costing residents more. Imagine what would happen if residents doubled the amount of goods they purchased from within the city. It doesn’t necessarily mean they would need to spend twice as month. It only means that they choose to shop local twice as often. Here are few consumer habit adjustments which could save Liberty Lake from a tax increase:
- Instead of heading to Post Falls, purchase your next RV from one of the local dealers.
- Likewise, buy your next automobile from a dealership in Liberty Lake. Then, buy your gas, tires, and repairs in town.
- You might miss Safeway, but Yokes and Albertsons both carry junk food, prepared food, dietary supplements and soft drinks which are taxable.
- We know you are tired of pizza, but there are a few other options where you can dine locally.
- Don’t go to Stateline to purchase alcohol. It is a few dollars more, but buying it in Liberty Lake could save you money in the future.
- Next time you think about shopping on Amazon or Walmart, remember you can get things like pet supplies, car parts, clothing, gifts, tools, furniture, and more just down the street.
What does City Council think about this?
We would like to invite the councilmembers and council candidates to comment below and share their thoughts on this topic with the community.
One council member running for re-election, Odin Langford, and one council candidate, Mike Kennedy, were recently interviewed by Spokane Talks Online. Both gentlemen had thoughtful and educated responses to the issue of tax increases, but stopped short of an endorsement for tax hikes or promise they would never support an increase. Either they learned from the mistakes of George H.W. Bush or the issue is not yet clear enough to allow for a direction on the topic.
Here are the videos:
What do you think?
Please use the comments below to share your thoughts or questions on the issue of tax increases in Liberty Lake.
