Council debates 2026 budget and COLA; authorizes $500,000 Trailhead prepayment from tourism fund

Liberty Lake councilors continued a lengthy discussion of the 2026 budget on Nov. 18, focusing on recurring wage increases and new operating costs, and ultimately authorized a $500,000 prepayment toward Trailhead golf debt sourced from the tourism promotion capital fund.

City staff presented community development revenues, noting projected permit fees of about $1.74 million and grant receipts of roughly $285,600 for planning efforts. Much of the meeting, however, centered on a proposed ‘2.7% COLA plus 3% additional’ staff supplement. Several council members asked staff to return with the fiscal impact of reducing that extra 3% to 2% or 1.5% so members could evaluate tradeoffs. A motion asking staff to model the budget impacts of smaller increases passed after discussion.

Separately, council considered an agenda item authorizing up to $500,000 to prepay Trailhead debt. Staff explained that the tourism promotion capital fund—sourced from lodging tax revenues—has statutory restrictions on allowable uses but that prepayment of debt on tourism-related facilities is an eligible use. City staff estimated a future potential interest savings from prepayments and highlighted that the fund had no outstanding local proposals requesting the money. After debate about reserves and competing capital priorities, council approved the motion to source the $500,000 prepayment from the tourism fund in a roll-call vote (result recorded as 5–1, with Councilmember Kurtz dissenting).

Council also approved ordinances to levy 2026 property taxes as proposed (Ordinance 3-12, voice vote 6–0) and held a first reading of the full 2026 budget ordinance (Ordinance 3-13).

What’s next: staff will model multiple COLA scenarios and return with the fiscal impacts for council review at scheduled budget workshops; the budget ordinance will return for final adoption at a subsequent meeting.