Projected revenues higher than expenses in Soap Lake 2024 budget

SOAP LAKE — The city of Soap Lake is projected to spend about $1.52 million from its general fund in 2024, which is below the revenue projection. 

Total expenses for the city are projected to be about $7.15 million for 2024, with revenues of about $7.99 million. 

The general fund is projected to have about $1.75 million in revenues. The budget, approved by Soap Lake City Council members Dec. 20, includes a 5% decrease in spending for 2024.

The general fund pays for services like the Soap Lake City Hall staff and operations and the Soap Lake Police Department, as well as some of the salaries and expenses for other city staff and departments. For a few years city officials have supplemented the general fund with a utility tax on the water and sewer funds, which Mayor Pro Tem Leslie Taylor estimated was about 30 to 35%. 

Revenues in both the city’s water and sewer funds also are projected to exceed expenses. The water fund is projected to spend about $1.02 million and generate revenues of $1.41 million. Revenues in the sewer utility fund are projected to be about $1.35 million, with expenses of about $1.01 million. 

The city street fund is projected to generate about $172,000 in revenue, with about $151,300 in projected expenses. 

The city’s capital projects fund is projected to spend more than the money available; expenses are projected at $1.43 million, with revenues projected to be about $1.18 million. 

For 2024 both the water and sewer construction funds are not funded, and there are no expenses. 

Mayor Alan DePuy said in an earlier interview that utility rates are under study and may be increased in 2024. A committee of current and former Soap Lake City Council members, along with some residents, was formed to evaluate the current rates and recommend whether or not the city needs a rate increase, and if so, how much. 

DePuy said there’s no time frame for that report. 

An evaluation from Gray and Osborne, Yakima, the city’s engineers, recommended rate increases in 2022 and 2023, because the city needed to start building reserves for water and sewer repair and upgrade projects. Council members decided not to raise rates in either of those years.

City officials are considering cutting back or eliminating the transfers from the water and sewer funds to the general fund due to the need to start saving money for water and sewer projects, Taylor said. 

At least one street project is under consideration for 2024, funded by a $2.14 million grant from the Transportation Improvement Benefit District. Preliminary plans include Fir Street North, Lakeshore Drive and Juniper Street North, all to the city limits; Second Avenue SW from State Route 17 to the city limits, Main Avenue East from SR 17 to Eastlake Avenue, and Eastlake Avenue to Third Avenue NE. But the plan is subject to change as streets are evaluated.

Cheryl Schweizer can be reached via email at cschweizer@columbiabasinherald.com.