Larson Rec Center, other areas spared cuts for now

MOSES LAKE - Those in attendance at Tuesday night's city council meeting were filled with mixed emotions.

They learned that the Larson Rec. Center and other areas throughout the city will be spared of budget cuts in 2014, but could see cuts coming in 2015.

There was standing room only, as supporters of the Larson Rec Center, the Moses Lake Youth Hockey Association and Larson BMX Park filled the council chambers.

City Manager Joseph Gavinski said the city will not have to approve exhaustive budget cuts in 2014.

"The City of Moses Lake, in essence, gets a reprieve for 2014, and that is because we will receive revenue from REC's real estate taxes in 2012 for 2013 as was decided by the State Board of Tax Appeals. The amount of money that was eliminated for this year is basically replaced," Gavinski said.

On Sept. 12, the city received news from a hearing regarding REC Silicon's appeal of their property value.

The Washington State Board of Tax Appeals ruled the value of REC Silicon's property was about $904 million.

With this news, Grant County Treasurer Darryl Pheasant prepared the new tax bill for the property, billing REC about $7.6 million in additional taxes, assessments and interest for the 2013 tax year, according to Grant County Assessor Laure Grammar.

These additional taxes will be distributed to the taxing districts throughout the county.

"The appeal to the state board of tax appeals for the tax year 2013 was decided, and was decided in the county's favor. Which returned about $1.2 million back to the city, which we should be receiving, at least on paper, within 30 days," Gavinski said.

Residents' concern stemmed from news regarding real estate tax that the city may not have been receiving from REC Silicon in 2014. At the Sept. 9 council meeting, Gavinski said Grant County's assessed value for REC Silicon's property was $671.2 million.

REC Silicon appealed the Grant County Board of Equalization's land value assessment, stating its property should have a value of $115 million, according to Gavinski.

The Board of Equalization placed the value at $250 million, which is a reduction in the past assessment of $421.3 million. The problem was, the city's 2014 budget is based upon the county assessor's $671.3 million assessed value evaluation of REC Silicon. Which meant the city could have lost about $1.3 million of the real estate taxation. The city does not currently have enough money to make up the $1.3 million.

Gavinski proposed a number of different budget cuts the city had to consider to make up for the shortfall.

The news of the SBTA's decision relieved some of the concerns residents in attendance had about the possible 2014 budget cuts.

But Gavinski said REC has already appealed the Grant County's assessment of their property in 2013 for 2014, and the decision of the appeal could take up to two years before a decision is handed down on the matter.

"All I said at the last meeting about what needs to be done in terms of solving the budget issue for 2014 applies not necessarily for 2014, but for 2015. We need to find about $1.2 million in revenue cuts," Gavinski said.

This shortfall, reportedly coming in 2015, brought speakers from possible areas around the city that could see cuts, out to Tuesday's meeting.

Ty Howard, from the Moses Lake Youth Hockey Association, proposed cutting back hours at the Larson rink, implementing a charge for public skating and renting the ice to surrounding hockey teams, instead of closing down the Larson ice rink.

Brenda Teals, chair of the tourism commission, urged the council to support small business that would likely lose revenue if areas like the summer concert series, ice rink and BMX park, are closed because of the shortfall.

Mayor Dick Deane assured residents the council is actively working alongside Gavinski and other officials to find a resolution.

"You have strong support from this council," Deane said. "We are trying to solve this problem, and with the help that I heard here today, it just gives us all the more desire to support our community. Because this is our home, it does not belong to somebody else, it belongs to us."