A contest was held in Spring 2017, and the flag was announced in January 2018.
Article: http://www.spokanevalleyfire.com/new-city-flag-fly-svfd-station-3/

"The winning design was selected following a year-long design and selection process. A contest was held in Spring 2017, culminating in the winning entry selection from among three finalists by a committee representing eight �Essential Liberty Lake Organizations�. Fire Chief Bryan Collins represented SVFD on the committee. The flag is intended for use by many organizations, including SVFD, to recognize the collective Liberty Lake community.

Flag designer Rebekah Wilding said the design �symbolizes the mountains that surround Liberty Lake and the silhouette of the historic pavilion. The lines of blue reflect Liberty Lake. The green is for the parks, golf courses and open spaces throughout the community. The crown of the Statue of Liberty is inspiration and also symbolizes the activities and recreation the city provides, especially in the summer.� "