City adopts preliminary budget

SANDPOINT — The city adopted a preliminary budget last week of $39,322,035 for fiscal year 2020, a decrease of more than $5 million from this year’s budget.

“If you look at the way our budgets have trended ... we have had significant increases in our overall citywide budget over about the last three years, anticipating the construction primarily related to downtown,” said City Administrator Jennifer Stapleton, who provided a brief presentation to council on July 17.

There are a number of factors that led to the decrease in the 2020 budget, she said, in part stemming from the city no longer working to acquire the University of Idaho property on Boyer Avenue, as they were budgeting for sewer upgrades in the area. Those costs were taken out, as well as a lower-than-estimated cost of immediate improvements at the city’s wastewater treatment facility.

In approving the preliminary budget, council members have adopted the maximum amount that can be allowed in the final budget. They do have the option of adjusting it to a lower amount or leaving it as is during a future meeting before adopting the final budget.

The 2020 budget includes a proposed general fund balance of $16,200,358, of which just over $6 million is slated for capital projects. Special revenue funds, which includes the city’s fiber optic network fund, local option tax, and the parks capital improvement fund, is proposed at $6,099,021. Enterprise funds, which include sanitation services, water and sewer, is a proposed $10,123,916. Agency funds and debt service funds are sitting at a combined $2,863,979.

The projected general fund property tax for the next fiscal year, Stapleton said, is just over $4.1 million, approximately a 3-percent increase over the 2019 budget. There is also an approximate $10,000 increase over the current year in the recreation property tax fund at $197,451 for 2020.

“This year, we do have $40,754 available and will be applied for property tax relief,” Stapleton said. “That is in accordance with our resort city tax, so when we receive revenues above what was budgeted in a prior year … those extra revenues that are received benefit our taxpayers in the form of property tax in a subsequent year.”

Based on the preliminary 2020 budget, the estimated property tax for a $200,000 home is $525.08. That is a $27.49 increase over the current year, Stapleton said.

The preliminary budget also includes $88,774 in foregone funds to be used for police vehicles, said city treasurer Sarah Lynds. 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.

Stapleton said a “more in-depth” budget workshop is scheduled for the next City Council meeting on Aug. 7.

The proposed 2020 budget is posted online at sandpointidaho.gov.

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