City sets preliminary budget

SANDPOINT — No raises for city employees and projections far lower than last year are among items that stand out in a preliminary city budget approved by council members.

The preliminary budget — the focus of a public hearing next month — includes a $9.6 million general fund, which is two percent higher than last year.

A new water treatment facility that voters approved in last year’s bond election accounts for a $22 million increase to the entire $42 million budget for next fiscal year.

In a budget proposal released earlier this summer, Mayor Gretchen Hellar proposed replacing one police patrol vehicle, which veers from a plan to systematically replace squad cars before they wear out completely.

The plan that the city and the police chief agreed upon three years ago calls for replacing two or more vehicles annually, Hellar said.

“We didn’t replace any last year, and this year also,” she said.

The department asked to budget for four new cars for next fiscal year, she said.

“We just couldn’t do it,” she said. “I cut him down to one,” she said.

But city council members added another vehicle to the preliminary budget that was approved last week by the council.

To at least stay within shouting distance of the agreement, council amended the mayor’s budget by adding two vehicles instead of one, at $28,000 each, to the preliminary budget.

In addition, the police and fire departments will get a wage adjustment based on a market analysis.

The analysis showed local public safety workers were getting paid less than in places such as Hayden, Moscow and Coeur d’Alene.

Instead of losing officers to other areas, the city increased pay based on the analysis.

Other than that, no city employee will see a salary increase next fiscal year. The freeze includes passing on cost of living increases and performance increases.

The good news, Hellar said, is that city has not cut hours, or positions.

“They don’t get raises,” she said.

City employees have been without raises since 2008, she said.

The idea is to keep employees on the job, so services are not reduced, she said.

“We are very much into retaining the service level we have now,” she said.

That could change next year, said treasurer Shannon Syth.

“We are using $837,000 of our reserves to fund this year’s budget to maintain the current level of service,” Syth said.

Instead of staff cuts, or skipping lawn maintenance at city parks, she said, the savings will be used to uphold services residents expect.

“Next year, if revenues are down,” she said, “we will probably be cutting staff.”

The preliminary budget is based on revenue shortfalls in several areas including the resort tax, Syth said.

“It is down 20 percent,” she said. “We budgeted conservatively this year.”

In the past the tax accounted for more than $200,000 into city coffers.

“We will be lucky to make $150,000 this year,” she said.

If the preliminary budget is approved, cuts will be widespread throughout departments.

The only addition in staff is a part-time position in the finance department, which accounts for a $39,000 salary and benefit package.

The idea, Syth said, is to add a staff member to perform tasks such as audits and additional accounting, which is usually done by contractors.

The bulk of the approximately $300,000 general fund increase in the preliminary budget targets capital improvements, Syth said.

The Washington Street project, which started this summer, is budgeted at $800,000 next year. The portion slated for completion this summer will not be finished by the end of the 2010 fiscal year — it ends Sept. 30 — so $300,000 was carried over into next fiscal year, Syth said.

A public hearing on the budget is set Aug. 18.