Budget proposal approved by council
By RICHARD HANNERS
Whitefish Pilot
Eight new staff positions and several civic development projects account for most of the increase in the city’s FY2007-2008 proposed budget.
The $23.4 million effective budget is about 3.5 percent higher than last year’s, which was about 10 percent higher than the previous year’s.
This year’s $14.5 million operating budget is about 15.2 percent higher than last year’s. Funding is provided for five additional firefighters to enable the city to go to 24/7 emergency service, as well as one new police officer, a permit coordinator in the planning office, a new water plant operator and upgrading a part-time parks employee to full-time.
Funding is also provided for a new geographic information system (GIS), a citywide transportation plan, an impact fee study and design and scoping work for several civic projects — reconstruction of Central Avenue, a parking facility at Spokane Avenue and Second Street, a new emergency services facility and a new city hall.
Pursuant to union agreements and city policy, many full-time city employees will see a 5.1 percent pay increase.
The city proposes holding the property tax rate at 111.21 mills. With the resort tax rebate, the effective rate will be 87.68 mills, placing Whitefish far below the other top-10 cities in Montana, whose mill rates range from 132.81 in Billings to 213.88 in Havre.
Property taxes account for about 19 percent of city revenue. Resort taxes provide 9 percent, and grants provide 12 percent, a “significant amount,” city manager Gary Marks noted at a June 25 council budget meeting.
Councilor Velvet Phillips-Sullivan expressed concern that the city depends too much on new growth.
“What if the economy goes in the toilet?” she asked.
Marks said if there’s zero growth between now and next July, the next fiscal year budget will be exactly the same size as this year’s. There would only be layoffs if the community actually shrunk, he said.
“We’re reacting to population growth,” city finance director Mike Eve said. “We’re not increasing the budget faster than the population.”
The council unanimously approved the proposed budget. Some highlights from the proposal include:
? After conferring with city councilors Nancy Woodruff and Nick Palmer, city judge Bradley Johnson agreed to a 5.1 percent pay increase for himself, but he wanted more for his staff. He had asked for a 15.1 percent pay increase for himself.
Johnson said additional court staff could help the city collect about $180,000 in backlogged fines and other court payments.
The council agreed to reclassify one of the court clerk positions as a clerk/administrator, add a part-time clerk position for 12 months and provide additional money for software and training.
? The city park department’s $1.19 million budget covers maintenance of dozens of city parks and greenways, as well as overseeing the Armory, the Fish Trails and A Trail Runs Through It bike path systems, City Beach and dozens of sports and activity programs.
The budget includes $55,000 for a new Zamboni for the Stumptown Ice Den. Parks director Dan Keyes said a party is willing to pay $100,000 over 10 years to post an exclusive advertising sign on the new Zamboni.
About $50,000 is earmarked for professional grant-writing services. Labor costs for City Beach staff increased about $10,000 when the new minimum wage kicked in and caused a “ripple effect,” Keyes said.
? The city hall construction reserve fund will increase $200,000 to $716,094 with money transferred from the tax-increment fund (TIF).
Marks said a new state law will allow the city to use a “design-build” contract, meaning the same firm can design and construct the new city hall, which should save the city money.
He also said the city could design the new city hall for 12 years rather than 25 with provisions to add on a new floor at a later date. That would also save money, he said.