Mayor: Deal depends on funding options

PONDERAY — While city and business leaders reached a temporary compromise on Ponderay’s proposed sales tax increase Monday night, Mayor Carol Kunzeman said the agreement will be short-lived unless alternative funding sources for the city’s ailing infrastructure are secured.

At its Feb. 2 meeting, the council unanimously voted to approve a 0.5 percent resort city tax, which would raise the city’s sales tax to 6.5 percent. Even with council approval, the controversial tax increase would not become law until it is approved by Ponderay residents.

The council was set to vote on an election date Monday, but opted to postpone any action on the plan after hearing complaints from dozens of local business owners.

The six-month moratorium gives all parties an opportunity to explore alternative avenues for funding the city’s decaying infrastructure, Kunzeman said.

Though she supports the tax increase, Kunzeman said she is satisfied with the council’s decision to postpone a vote on the matter.

“I think it was the only way to go,” she said. “My council listened very intently at the last two meeting to the concerns of the people who came. Now let’s see what they can come up with.”

While business leaders explore alternatives to the tax, the council plans on using its time to educate residents, business owners and themselves about every detail of the proposal, Kunzeman said.

“Hopefully when you put those three groups together they’ll come up with some ideas, and if they’re feasible, then good, and if they’re not feasible and we still have to address the tax then maybe (business owners) will understand better where we’re coming from,” Kunzeman said.

Kunzeman said she will be receptive to whatever ideas business owners bring forward and is willing to abandon the tax increase if necessary.

“I think it would be premature to say, ‘No, we going forward with the tax,’” she said. “I don’t think that’s the answer right now. I think the best thing will be to regroup and start from square one.”