Rate hike proposed in 2020 budget

PRIEST RIVER — City officials approved a tentative budget for fiscal year 2020 earlier this month of $6,745,098, a decrease of approximately $1.2 million from the current year.

As it is a tentative budget, council members adopted the maximum budget amount for 2020, meaning the total can be decreased but not increased before final adoption.

The tentative budget includes a proposed utility rate increase of $2.14 for water and $3.43 for wastewater, for a total of $5.57. The current rate for city residents is $100.60, so if the proposed increase is approved, rates would increase to $106.17.

“We’re trying to encourage attendance at the public hearing on August 19, as the council will be discussing the proposed utility rate increases,” Laurel Thomas, city clerk/treasurer, said in an email to the Daily Bee.

The overall decrease of the budget, however, is due to a large portion of loan and grant funds that have been expended on the city’s improvement projects this year, Thomas said.

The tentative budget breakdown includes a general fund of $1,273,568, a street fund of $1,580,703, a water fund of $682,897, a wastewater fund of $3,205,385, and an impact fee fund of $2,545. Of the general fund revenue, an estimated $646,826 is expected to come from property taxes — an increase of about $20,000 over the current year. Expenditures of the general fund include salaries, benefits, insurance and other operational costs for the city.

With an improvement project slated for Wisconsin Street over the next couple years, the streets budget includes a $1,063,705 grant, as well as a $79,260 reserve for 2020. The project will result in the realignment of Wisconsin Street with Fourth Street across the highway, with the goal of improving pedestrian access.

While construction of the project is not expected until the following year, Thomas said the city is paying for the design of the project and decided to include it in the budget in case the construction timeline is moved up.

If that happens, she said, city officials won’t have to open the budget to spend the funds, and whatever is not spent will carry over to the following year.

The public hearing on the proposed rate increase will be held on Aug. 19 at Priest River City Hall, 552 High St. Meetings typically start at 6 p.m. For more information, contact the city at 208-448-2123.

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