Public safety levy not permanent

CHENEY – Apparently, the city’s “permanent” general fund levy lid lift to help public safety needs wasn’t so permanent after all.

Passed by 59.32 % of voters in 2015, the lift was to dedicate the difference between the then-current general fund levy amount of $2.40 per $1,000 of assessed valuation and the proposed increase to $3.10 / $1,000 to “provide for continual public safety (police, fire)” and other governmental services needs. Since then, $2,137,100 of the $2.207 million raised has gone to things such as new police officers and vehicles, improvements to both stations, training, equipment, fire department air packs and a new main attack engine.

That is all coming to an end — at least for now.

“We have been notified by the county that our permanent levy lift that we have received since 2016, we have been notified that it cannot be a permanent levy lift anymore,” Finance Director Cindy Niemeier told the City Council during a budget presentation last Tuesday, Nov. 10.

“So, the $3.10, all the stuff that I just showed you and all the great things it’s done, is kind of off the table at this point,” she added.

In an email, Niemeier said the lift’s permanency first came up while preparing the 2017 budget. The Spokane County Assessor’s Office questioned Cheney as to whether the annual general fund levy amount of $3.10 was to remain that year or revert to the original amount plus the 1% increase allowed by law via the passage of Initiative 747 in 2001.

“After assuring the county our citizens passed a permanent levy, they agreed and we moved forward with the citizen vote of a permanent $3.10 levy,” Niemeier said.

The issue has come up several times since, and each time the county agreed to let the assessment continue after receiving the city’s reassurance. But in 2020, during its audit, the state Department of Revenue read the levy language and handed down a different verdict.

“Although they did see our intent was a permanent levy, they were only able to identify (in state law) where a 6-year levy is allowed, not a permanent levy,” Niemeier said.

The decision reduces the city’s levy amount to $2.71 per $1,000 of assessed property valuation — calculated by taking the city’s total assessed valuation, accounting for increases such as new construction, and factoring in the state-allowed 1% increase, which doesn’t require a public vote. For a property owner with a $200,000 home, this means a deduction of $97.50 annually.

The city was proposing a 2021 property tax revenue amount of $2,467,200, of which $567,500 would be levy lid lift funding paying for a proposed $508,500 of public safety requests. Those requests include $157,700 applied to fire department reserves and debt service on the new engine brought online in 2019.

Also included are $131,400 for a police officer/reserve officer and $121,300 for the fire department’s volunteer program, along with a combined $92,100 in police/fire department equipment needs.

Without the lid lift, the city is proposing $2,153,100 in property tax revenue, of which $455,200 will go towards public safety needs. The drop is significant, Niemeier added.

“This is a lot of money, over $2 million over five years that’s gone straight to public safety that’s just not going to be there now going forward on a permanent basis as we had originally thought,” she said.

While the levy lift amount won’t be collected in 2021, city officials said there are options for reinstituting it in the future. Prior to I-747 in 2001, cities were able to raise property tax levy amounts up to 6 % annually without going to the voters.

“At the time, everyone knew that a 1 % increase annually was not going to maintain operations because our inflation was always 3 % plus,” Councilman Paul Schmidt said. “If you want more money, you need to ask the voters. That’s exactly what the city of Cheney did in 2015.”

Schmidt agreed with others that more discussion was needed as to future steps.

“If we want to maintain the level of service that we’ve been able to provide from public safety, we’re going to have to take a serious look at maybe an additional ballot measure since we can’t do the permanent levy lift any more in order to provide the funding levels we’ve been able to enjoy the last few years,” City Administrator Mark Schuller said.

John McCallum can be reached at jmac@cheneyfreepress.com.