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Liberty Lake council hears $131 million capital‑needs estimate and options to close a six‑year $18.8 million gap
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Summary
City staff presented a 20‑year capital facilities estimate of roughly $131 million and a six‑year funding gap of about $18.8 million; council and staff discussed grant pursuit, low‑interest state loans, local improvement districts, tax levers and bond options to close the gap.
City staff on Tuesday outlined a long‑term capital plan that projects about $131 million in investments over 20 years and a funding gap of approximately $18.8 million over the next six years.
Kyle, the presenter on the city’s finances, summarized the first‑quarter financial touchpoint and walked council through the capital facilities analysis. He said the city currently budgets roughly $12.6 million available for capital in 2026 and forecasts about $20.7 million dedicated to capital over the next six years, but that projected needs exceed those resources. “We have no idea how we're going to pay for this,” Kyle said, adding that the city will prioritize grants while evaluating other revenue levers.
Staff identified several options to reduce the gap: aggressively pursuing state and federal grants; applying for state low‑interest loans such as the Public Works Trust Fund or the local loan program (staff said scoring favors distressed communities and Liberty Lake may score lower); using banked property tax capacity to recoup previously foregone 1% increases; considering a utility tax (3% historically) or increasing the existing TBD sales tax above the current 0.1% (any increase above 0.1% requires voter approval); forming local improvement districts (LIDs) for targeted projects such as sidewalks; and councilmanic or voter‑approved bonds.
Council members asked clarifying questions about which projects were tied to which grants, the assumptions used for revenue forecasts and the expected debt service impacts of bond options. Council member Sievers praised the conservative approach of excluding speculative grant awards from forecasts, and said he expects the newly formed finance committee to dig deeper into options. Kyle said staff will bring more detailed scenarios to the finance committee for recommendation to the full council.
Next steps: staff will focus on grant pursuits and present refined revenue and expenditure scenarios to the finance committee; specific revenue proposals (e.g., TBD increases above 0.1% or reinstating a utility tax) would require further council discussion and, where required, voter approval.
