FY 2015 budget talks get gritty

Whitefish City Council got down the nitty-gritty budget decisions during a work session last week, making final directions to city staff before it will officially vote on the document at its Aug. 18 meeting.

The preliminary fiscal year 2015 budget totals about $41 million. The budget reflects a 3.5 percent increase in its mill value resulting in an increase in total property tax revenue of about $90,000.

City Manager Chuck Stearns said the budget shows using quite a bit of the cash balance for one-time capital outlay expenditures.

The city in the last few years has attempted to keep its ending cash balance revenue above 10 percent of the total budget. Heading into Friday’s session, the budget showed a cash balance of 7.3 percent.

“As it stands, we’re using more cash balance than we have before,” Stearns said. “I’d like to advocate that 10 percent level as a low end.”

Stearns suggested the council could increase the ending cash balance level through budget cuts or raising revenue by increasing the mill levy.

Council chose a combination of cuts in the fire, public works and parks department to reduce spending. In addition, council requested the hiring of a human resources director — with an estimated $85,000 annual salary — be delayed until mid-year.

While council decided against a general mill levy increase, it did give approval for increases in other collection areas. Those include the library mill levy, the parks and greenway assessment, and an increase in the commercial street lighting district assessment.

During previous work sessions, council created a list of items it wanted to revisit before voting on the final budget. Those items were discussed during last week’s session.

Community Library

Council gave its OK to increase the mill levy for the Whitefish Community Library. The library is requesting the city increase its mill levy from 5.4 to 6.2 mills to be the same as Flathead County’s library mill levy.

The increase in funding is expected to assist the growing library that has seen its collection almost double in the last four years and averages about 300 patrons per day. The increase in business is translating into increased fees for state services the library subscribes to for shared books, audio books and data bases, according to Library director Joey Kositzky.

The increase in the library mill levy is expected to translate into about $3 increase in the tax bill on a market value home of $300,000.

Fire

department

After a lengthy discussion, council chose to eliminate from the fire department budget a purchase of breathing apparatus equipment. Fire Chief Tom Kennelly previously advocated for the $240,000 purchase, saying the current equipment will soon reach the end of its service life.

Councilor Andy Fuery said he recognizes that the breathing equipment purchase is necessary, but also pointed out the proposed fire department budget includes large purchases of a structural pumper and water tender. The capital expenditures, if it includes the breathing equipment, would be a 58 percent increase from the previous year.

“I know you need [the breathing equipment], but I don’t think we can do it this year,” he said. “That amount of capital expenses are not sustainable over the long term.”

While council noted it could not make a commitment for fiscal year 2016, it did say it would like to finance the purchase of the breathing apparatus equipment in the next budget cycle.

Pay increases

Council approved a pay increase for the city judge and city manager positions. The budget includes a 3.8 percent raise for most city employees.

Whitefish Judge Bradley Johnson asked for a review of his compensation to address the absence of any longevity recognition in his pay. He has served as judge since 1986. Johnson receives an annual salary of $73,316.

Johnson is asking to be paid for all prior passed over benefits during his term of employment. He would like 1 percent for each year of service, equaling 30 percent of his salary paid out over the next three years.

Council decided to approve a 3.8 percent pay increase for Johnson, the same percentage that other city employees will receive for the fiscal year, but would not approve any other change in pay.

Fuery said he would agree to the increase, but not retroactive pay.

“Absolutely not,” Fuery said. “He runs for election knowing what the salary is and has never been part of the city employee system for pay.”

Councilor Jen Frandsen agreed, noting the city ordinance concerning the judge’s salary says nothing about providing retroactive pay.

Council OK’d a pay increase of 3.8 percent for City Manager Chuck Stearns.

Mayor John Muhlfeld encouraged the council to approve the increase to match other city employees noting that some years Stearns has not taken a pay increase.

“He has worked really hard in the last few months with the city being without a finance director,” he said.

Parks

department

To fund capital expenses for the parks and recreation department, council chose to pull money from the tax increment finance funds to pay and increase the city parks and greenway assessment.

Council chose to use TIF money to pay for the replacement of the Stumptown Ice Den roof at a cost of $35,000 and installing a new energy efficient ceiling for the Ice Den.

Parks director Maria Butts noted that the Glacier Skate group has already raised some funds toward the installation of a new ceiling.

Council decided to raise the parks and greenway assessment to allow for the purchase of a $60,000 skid-steer loader for snowplowing sidewalks.