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Mayor presents proposed 2026 budget, urges review as costs rise; recommends 0% property tax increase
Summary
Mayor delivered the city’s proposed 2026 budget to the council, reporting strong reserves, a proposed $0 property tax increase, $11 million in capital projects, and rising public-safety and benefit costs that will require close council review.
Mayor presented the City of Liberty Lake’s proposed 2026 budget at the Oct. 21 council meeting, outlining capital projects, revenue forecasts and higher operating costs the city expects next year.
The mayor said the city will begin 2026 with an estimated general fund balance of $8.1 million and projected 2025 sales-tax receipts of about $6.97 million, roughly 5.3% above the current budget. She recommended a 0% property-tax increase for a fifth consecutive year and reported the city’s effective property-tax rate is expected to drop from 0.8852 to 0.8571 per $1,000 of assessed value in 2026.
“Because of the strong financial footing, I am recommending a 0% property tax increase for the fifth year in a row,” the mayor said.
The mayor proposed more than $11 million in capital investments in 2026, including pavement overlays on East Mission Avenue, Mission Avenue frontage improvements in the River District, designs for a Public Works yard and future City Hall renovations, and park enhancements at Pavilion Park and Orchard Park.
At the same time, the mayor highlighted rising operating costs affecting public safety and personnel: an estimated 50% increase in court services with Spokane County, a 31% rise in the Spokane County sheriff’s contract related to technology updates, and costs tied to a new three-year collective bargaining agreement and one new full-time officer. The draft budget includes a 2.7% cost-of-living adjustment and a 2% step increase for eligible employees; a phased salary-schedule adjustment tied to AWC salary-survey benchmarks is proposed, with half the adjustment planned for 2026 and the remainder under consideration for 2027.
The mayor said general-fund reserves are forecast at 37.1% of operating revenue—well above the 20% minimum required by ordinance—and that restricted reserves will remain near required levels. She urged the council to review the proposed budget during forthcoming special meetings and work sessions.
Council members asked clarifying questions about public-safety cost drivers, the timing of budget reviews and upcoming collective-bargaining action on that evening’s agenda. The mayor invited council to “come prepared” to budget-review meetings and emphasized collaboration as the council balances rising operating costs with the city’s capital program.
No formal council action on the budget occurred at the Oct. 21 meeting; council will review the proposal in detail at scheduled budget sessions.
