Building a Sandpoint built on community's vision, values

As mayor of Sandpoint, I present the Fiscal Year 2026 operating budget to the Sandpoint City Council for consideration on July 9 — a document that not only balances dollars and cents but reflects what I believe to be the values, priorities, and aspirations of the community. Entering my second year in office, this budget represents the continuation of a focused realignment begun in 2024: reshaping our local government to better serve the people of Sandpoint — directly, efficiently, and fairly.

The past year has seen meaningful progress. Guided by the 2024 comprehensive plan and the strategic plan 2025-2028, we've built a foundation for long-term success. Among our many achievements:

• Adoption of the comprehensive plan

• Updated development impact fees

• Completion of a job classification and compensation study

• Revision of area of impact boundaries

• Legal review of water utility service areas outside city limits

• Initiation of the wastewater treatment plant replacement

• Re-evaluation of the parks system, staffing, and facilities

• Appointment of Department Directors to improve leadership

• Launch of a five-year capital plan optimizing fleet replacement

• Emergency response and disaster preparedness plan completion

• Initiation of downtown revitalization Phase III (Bridge Street to Superior Street) and parking lot improvements

• Support for aerospace-related business expansion

• Activation of citizen committees and new civic engagement tools (sandpointidaho.gov click Get Involved then Subscribe)

These accomplishments demonstrate that Sandpoint's government is becoming more transparent, responsive, and capable of managing the challenges of growth and public service.

A leaner, more focused government

Since taking office, the overall budget has been reduced by over $3 million — a 5.57% decrease from FY2024. This reduction reflects a deliberate rebalancing effort to align spending with our highest priorities. Positions no longer aligned with this mission have been eliminated, and savings reinvested into essential areas, such as city land use planning capacity.

We continue to build internal expertise — particularly in land use planning and zoning — minimizing the need for costly external consultants. Every department has been directed to prioritize the upkeep of existing assets over new expansions. Our exceptional Police and Fire Departments remain fully staffed and equipped. Public Works leads capital projects and core service delivery. Planning and Community Development is advancing zoning reform, beginning with the downtown commercial district.

Infrastructure first: investments that endure

The FY2026 budget increases our investment in critical infrastructure:

• $7.2 million for street and sidewalk improvements, including $2 million from the urban renewal agency for Downtown Phase III

• $1.05 million for new equipment (grader, dump truck, loader), funded from interest income — not taxes or debt

• $3.8 million for water main replacements and diversion upgrades

• $4.5 million for wastewater system upgrades, including treatment plant and lift station work

• City Beach RV park upgrades, 95% funded by a state of Idaho grant

This budget reflects a commitment to doing more with less — delivering real results through strategic planning, cost-efficiency, and long-range thinking. (To see it for yourself go to sandpointidaho.gov then to Departments, Finance Annual Budgets)

Responsiveness to growth and public concern

FY2026 includes three initiatives shaped directly by community input:

• Parking management policy: Tiered passes and paid parking in high-demand areas will help fund signage, maintenance, and mobility upgrades. This ensures that seasonal and non-resident users share in the cost of maintenance and future replacement of these facilities.

• Updated impact fees: New development will now pay its fair share for vital infrastructure and public safety investments, reducing the burden on long-time residents.

• Review of zoning code: Beginning with the downtown, staff will work with the community to revise the zoning code to ensure it meets the goals and vision of the comprehensive plan.

Planning for a balanced future

Despite progress, fiscal constraints persist. House Bill 389 continues to limit local revenue growth. New construction often contributes less than its actual impact due to valuation rules. Infrastructure continues to age faster than it can be replaced. That's why the City is exploring new funding mechanisms, including grants and my intent to bring back a local option tax proposal in spring 2027 to fund street repair and improvement.

We also recognize that while downtown and waterfront investments will enhance long-term economic vitality, they may temporarily impact local option lodging tax revenue during construction (potentially resulting in a $220,000 reduction next year). However, the long-term return — stronger infrastructure, increased economic activity, and revitalized public spaces — will far outweigh the short-term impact.

In closing

This budget affirms a commitment to a government grounded in accountability, sustainability, and service. We're investing in core needs before expanding further. We're prioritizing residents and building internal capacity. And we're listening.

I want to acknowledge the dedication of our city staff, the support and insight of city council, and the trust and engagement of Sandpoint residents. Together, we're confronting today's challenges while thoughtfully preparing for a stronger, more resilient future.

Jeremy Grimm is the mayor of Sandpoint. He can be reached at 208-263-3310 or by email at mayor@sandpointidaho.gov.