Erin Hut, Communications Director, 509.625.6740
Monday, August 26, 2024 at 8:12 a.m.
A new report from a third-party consultant shows the best path to the City of Spokane’s participation in Spokane Regional Emergency Communications (SREC) hinges on governance and financial adjustments that properly address the needs of all participating agencies, conserve limited taxpayer resources, and enhance public safety.
In March, SREC sent a letter giving the City of Spokane 30 days to either place both public safety agencies into SREC or pull Spokane Fire out and create a City public safety answering point (PSAP). The City requested a three-month extension and used that time to contract with an outside consulting firm that specializes in emergency communications to conduct a feasibility analysis on SREC’s request.
ADCOMM Engineering, a consulting firm selected by the City that has previously been engaged by the SREC board, conducted a robust document review of relevant operational and financial records, and traveled to Spokane for in-person interviews with City public safety leadership, City bargaining units, and SREC leadership and staff.
ADCOMM’s report recommends adjusting SREC’s board structure to ensure representation that accurately reflects the proportional use and needs of participating jurisdictions. The City of Spokane is currently afforded two seats on a 10-member board, which requires a two-thirds vote for final action despite 55 percent of Fire calls originating within City limits, and an estimated 60 percent of calls for law enforcement if the Spokane Police Department joins.
The report also recommends adjustments to SREC’s financial model. SREC currently operates from three primary revenues streams: the 1/10th of 1 percent communications sales tax, a 911 excise tax, and additional user fees to each participating jurisdiction. While the City of Spokane accounts for just over 42% of the County population, data from the Department of Revenue included in the ADCOMM report shows that taxes generated within the City of Spokane actually make up roughly 65% of SREC’s annual revenue.
The report corroborates the City’s preliminary finding that the tax revenues alone are sufficient to cover SREC’s expenditures. The report finds that the organization consistently overestimates expenditures and underestimates revenue, which increases reserves year over year. The report indicates that, even if SREC had levied zero user fees over the last four years, it still would have realized $10 million in surplus revenues. With user fees, however, SREC has accumulated approximately $33 million in reserves between 2020 and 2023.
ADCOMM recommends that SREC improve its financial transparency and oversight by eliminating user fees and developing a transparent, formal process for financial oversight and capital planning to increase trust, while simultaneously creating a stronger financial incentive for regional jurisdictions to join – and remain in – SREC. Furthermore, the report urges the parties to formally adopt language in service level agreements to account for the accrual and expenditure of any surplus or reserve funds.
"Regionalization of 9-1-1 services makes sense academically and can achieve cost and operational efficiencies over time. However, the current structure of SREC is not one we currently recommend the City of Spokane join. There are some integral changes required of SREC and the City to resolve the issues mentioned in this report prior to full participation by the City of Spokane,” the report concludes.
“If the SREC board is willing to implement these recommendations from expert, neutral third-party consultants, I am confident that we will enhance public safety service delivery across the region and properly steward precious taxpayer resources,” Mayor Lisa Brown said. “I am optimistic about the prospect of joining SREC and look forward to the Board’s response.”
