MOSES LAKE — The city of Moses Lake’s 2022 budget estimates it will have expenditures of $83.6 million, about $12 million less than the projected expenditures for 2021. But the city projects it will still have to dip into its general fund to cover bills next year.

Moses Lake City Council members approved the 2022 budget without questions or comments at its regular meeting Tuesday. But, in a memo to council members, city manager Allison Williams and interim finance director Gail Gray said the lower expenses in 2022 will reflect completion of the new Larson Recreation Center, scheduled to open next year.

Overall revenue is projected to be about $80.4 million in 2022, a decrease of about $3.1 million from this year. General fund revenue for 2022 is projected at $28.95 million, about $1.4 million more than in this year.

With estimated expenses projected to be higher than revenue, the city is expected to spend some of its general fund reserve in 2022, causing the fund to have less than the city’s target for reserves by the end of the year. The city is projected to start 2022 with about $6.9 million in the general fund reserve, and end the year with about $5 million. The general fund reserve target for 2022 is $5.2 million.

The target for the reserve fund is for it to hold about two month’s worth of expenses.

Gray wrote revenue from property taxes and sales tax is projected to increase in 2022. Property tax revenue is expected to go up by about 2.3%, a reflection of new construction in the city and a 1% increase for inflation. Sales tax revenue was increasing prior to the COVID-19 pandemic, but city officials expected a reduction when the pandemic hit. However, sales tax revenue is projected to be higher than the budget projection when 2021 is over.

But the expenses are greater.

For instance, the new Larson Recreation Center will include offices for the Moses Lake Parks, Recreation & Cultural Services Department, and that will come with some expense.

Currently, the Moses Lake Parks, Recreation & Cultural Services Department shares space with the Moses Lake Police Department, and the MLPD offices will be expanded to fill the entire building, at 411 S. Balsam St., when Parks, Recreation & Cultural Services moves out. That project is included in the 2022 budget and is estimated to cost about $4 million.

Additionally, city officials plan to spend $2 million to build a new sewer lift station on Northshore Drive, and $1.5 million for improvements to Yonezawa Boulevard. The budget also includes about $1 million to buy water rights.