Moses Lake considers cuts to recreation, ambulance services

MOSES LAKE - The Larson Ice Rink, BMX park and free summer concert series in Moses Lake may be eliminated because of a $1.3 million shortfall in property taxes the city was expecting from REC Silicon.

Some other proposed budget changes include raising ambulance fees in Moses Lake by $2.50 per month and eliminating ambulance services. No action was taken this week on the above recommendations from City Manager Joseph Gavinski.

He updated the Moses Lake City Council this week about Grant County's assessed value for REC Silicon's property at $671.2 million.

REC Silicon appealed the Grant County Board of Equalization's assessment, claiming its property should have a value of $115 million, according to a statement Gavinski sent to the city council.

The GCBOE assessed the value at $250 million, which is a reduction in the past assessment of $421.3 million.

Gavinski stated the problem is the city's 2014 budget is based upon the GCA's $671.3 million assessed evaluation of REC Silicon. It means the city will lose about $1.3 million of the real estate taxation.

In his letter, Gavinski states the GCA is appealing the GCBOE's decision to the state Board of Tax Appeals. This appeal will not be heard for 18 months.

"At this point, based upon experience, it would seem the city cannot count on the taxes from the assessment on REC until those taxes are actually received after any and all appeals are exhausted. Again REC has appealed every tax assessment since in 2009 for the 2010 tax year," reads Gavinski's letter.

This fact brought area residents to this week's city council meeting, as the city has to make up for its lack of funds.

"The problem is, we do not have reserves to cover that either for this year or next year," Gavinski told the council.

Gavinski said there could possibly be some money available in 2014 to help with the revenue loss, but the loss could not be sustained into 2015.

In his letter Gavinski proposed the following budget and service reductions:

• Do not operate the ice skating rink, Larson Recreation Center, or BMX track beginning the fall/winter of 2014 to save about $125,000.
• Eliminate the summer concert series and marketing program in 2015 and beyond. That decision would save about $179,000.

Additional revenue suggestions include:

• Place the utility taxes that currently go into the Street Repair and Reconstruction Fund into the General Fund to create about $500,000 in revenue.

Gavinski suggests the following subsidizations:

• Eliminate General Fund subsidy to Ambulance Fund to save about $260,000. This requires an increase in the ambulance fee by about $2.50 per month. The other alternative is to eliminate the ambulance service.

These proposed cuts brought about 20 local BMX park supporters, ice rink users, public park users and members from the fire department and EMT services to the meeting on Tuesday.

"It does not pleasure me to have to tell you this," Gavinski said.

One of the proposed ways to help raise money, is to start charging admission to the free rink, which will be an option researched by Parks and Recreation Director Spencer Grigg. No admission was charged previously.

The proposed cuts were met with disapproval from council members.

"Certainly, eliminating possibly 17 positions in our fire department and to eliminate the ambulance service would be a detriment to our community," councilmember Todd Voth said.

The cuts and what to do about the shortfall will be discussed in future city council meetings. The next council meeting will be at 7 p.m. on Sept. 23.