Increased spending in 2015 budget

The city of Whitefish’s proposed budget includes an increase in spending of about $4.8 million to bring the total budget to $41 million. However, no increase in taxes is anticipated in the fiscal year 2015 budget.

The budget calls for giving most city employees a 3.8 percent pay raise. A new position of human resource director could be added to city staff, and an engineering technician position could be bumped from part to full time.

Most of the increased spending is the result of spending down year-end cash balances for one-time expenditures, according to City Manager Chuck Stearns. This includes spending for infrastructure improvements and equipment purchases. The city projects a decrease in the year-end cash balance to 9.7 percent from last year’s 11.5 percent.

Currently the projected property-tax mill levy rate is the same as last year.

“We still don’t know some pieces to the puzzle such as what our allowed mill levy will be for medical insurance, what the year-end cash balances will be and what the mill levy value will be,” Stearns said. “All of those aspects could change the budget dramatically in the next three months.”

The proposed budget includes adding a human resource director position with an estimated annual salary of $63,000. The position is intended to lessen the workload for the city manager, city attorney and city clerk.

Stearns said the general rule of thumb is that one human resource employee is needed for each 100 employees. He notes that when including seasonal staff the city employs 120 to 135 people.

An additional police officer position is included in the budget for a school resource office. The position is being funded entirely by a federal grant with matching contribution provided by the Whitefish School District.

A part-time engineering technician position will become a full-time geographic information systems/information technology position.

Stearns said he is estimating that the property tax base on which the mill value is based will grow only by 2 percent in fiscal year 2015, compared to the 2.2 percent growth last year.

“If it grows more than that, we can make a decision to increase cash balances, increase or restore some expenditures, or reduce the property tax levy,” he said.

Revenue is anticipated to increase this fiscal year. The city expects to bring in more than $2 million over last year. Most of the increases are from addition property tax revenue because of a higher mill value, increased building revenues, higher resort tax collections, higher tax increment finance district revenues and especially because of higher water and wastewater system revenues from a likely $1.75 million state revolving fund loan.