Moses Lake reviews financial sustainability plan; council leans toward cuts and sales-tax option as facility transitions are weighed

City manager Rob Carllins told the Moses Lake City Council it faces a structural budget gap that begins in 2027 and could widen to about $8 million by 2031 unless the council takes action.

"Key takeaways from that financial forecast is that in 2027 we have a $4.6 million deficit and it'll grow to 8 million by 2031 if we don't do something," Carllins said as staff reviewed a six-year model the council directed this year.

Carllins presented two balanced-plan scenarios that meet the council’s 15% reserve goal through 2031. The first includes a voter-approved levy-lid lift (a property-tax increase) combined with a 0.1% public-safety sales tax, expanded fee cost recovery and program cuts. The second avoids a levy lid lift and relies on deeper internal savings, phased service reductions, higher fee recovery and the same 0.1% public-safety sales tax.

Both scenarios assume the city will pursue operational changes to “enhanced” amenities: staff proposed transitioning the Larsson Recreation Center, the ice rink and the Museum & Art Center to nonprofit operators by 2029 while the city retains building ownership and some debt obligations. Carllins summarized that transition option in plain terms: "the proposal is to transition the Larsson Recreation Center, the rink and the museum and art center to nonprofits by 2029." He noted the city would still carry the center’s debt service (roughly $700,000 annually).

Council discussion focused on tradeoffs between revenue and deeper cuts. Several council members said they preferred Option 2 (no levy-lid lift), which relies on a single sales-tax increase and more internal reductions. Deputy Mayor Myerson asked staff to pursue that path while continuing parallel efforts to secure nonprofit partners and fundraising to maintain services where possible.

The public comment period was lengthy and largely focused on parks and recreation. Dennis Nep, a Moses Lake resident, urged the council to treat enhanced facilities as long-term investments that attract and retain professionals: "I was part of that 5% who thinks we need to raise some taxes in order to support the recreational facilities we have here," Nep said.

Other commenters raised concerns about the survey and data being used to shape decisions. Ron Sawyer read a statement from Heather Sawyer, a public-opinion researcher, who said the statistically valid survey (n=300 registered voters) provides useful input but is limited by sample size and scope and should not be the sole basis for major decisions.

Rebecca Sawyer, citing the state auditor's report, told the council the city had not filed some annual financial reports on time and urged officials to complete financial reporting and resolve compliance issues before making structural financial decisions. "The city did not submit the required annual reports to our office within 150 days of fiscal year end," she said, citing the auditor’s findings.

Staff also answered operational questions about program usage and costs: managers reported roughly 15,000–20,000 annual visits to the Larsson Recreation Center (about 152 participants in specific fitness programs) and explained parts of the budget that are difficult to recover with user fees alone.

What happens next: staff asked for direction and said the council will be asked to adopt the financial sustainability plan at its April 28 meeting. Council members directed staff to move forward with the second scenario (no levy-lid lift) for final adoption while continuing outreach to potential nonprofit partners and further internal savings work.

Votes at a glance: The council adopted an earlier item on the evening’s agenda to amend the water-rate fee schedule (Resolution 4036). The financial sustainability plan itself was not formally voted on at this meeting; staff will return with a final plan for adoption at the April 28 meeting.