City adopts preliminary budget

SANDPOINT — City Council members adopted a preliminary budget last week of $45,538,939 for the 2018-2019 fiscal year.

With the adoption of the preliminary budget, said City Administrator Jennifer Stapleton, the final budget amount could be lower, but not higher, than the $45.5 million.

“So this is not an adoption of the budget for the city at this point, just a maximum not-to-exceed level,” she said.

The preliminary budget amount is an increase of $5,402,222, or 13.46 percent, over the current year’s budget.

“The primary reason for the difference is we have significant projects that are budgeted in with our sewer funds, upgrades to the sewer treatment plant,” Stapleton said.

Stapleton said approximately $3 million of the budget is dedicated to the wastewater treatment plant, with “significant” inflow and infiltration projects.

Stapleton said the city is anticipating development of the University of Idaho property along Boyer Avenue, as well as other properties along Boyer. For that reason, she said, the budget includes funds for a sewer main to be installed in that area, as well as an extension of the fiber backbone. The two projects add up to approximately $1.7 million, she said.

In revenue, the city expects to receive nearly $5 million in grant funding this year, Stapleton said, as they have experienced a “significant uptick” in grant funds since hiring a grants administrator last year.

The budget also includes a 2-percent market adjustment to keep employees salaries in line with benchmarking of regional agencies, Stapleton said, as well covering increased cost of health insurance.

Councilwoman Shannon Williamson asked why the Business Improvement District is listed under revenue for $160,000, as the BID has been dissolved. Stapleton explained is “cash on hand” and must be reported in the budget. The BID fund is being used for water and fertilization of the flower basket program this summer, she said. In working with the businesses, Stapleton said staff intends to come back to council with a grant program for use of the fund.

Council also approved the city’s “intent to use” foregone levying authority in the amount of $111,895. If a taxing district in Idaho, such as a city or county, does not collect the 3 percent property tax increase allowed by the state in one year, the leftover, or “foregone” amount can be collected the following year following a public hearing by the taxing district. Foregone funds are a taxing authority, not actual dollars.

The city intends to use the foregone amount to fund public safety projects, including rapid flashing beacons and vehicles for the police department.

Stapleton said a budget workshop is scheduled for Aug. 1, and public hearings for the budget and foregone levying authority are set for Aug. 15.

Mary Malone can be reached by email at mmalone@bonnercountydailybee.com and follow her on Twitter @MaryDailyBee.