Council takes on round 1 of budget talks

Whitefish City Council last week began its examination of the city budget that includes a potential increase in property taxes.

The proposed fiscal year 2016 budget is $65.9 million and is up $25.4 million over last year.

City Manager Chuck Stearns pointed to the 63 percent increase in appropriations in this year’s budget.

“While that number is accurate it’s because of two big capital projects — City Hall and the parking structure, and the Haskill Basin conservation easement,” he said.

Removing those two large ticket items, which combined are about $22 million of the $25 million increase, the city budget is only increasing by about 3 percent for appropriations. The city budget often grows by 3 to 5 percent every year, Stearns noted.

Under the proposed budget, the owner of a $275,000 residential home would pay $97.61 more per year.

The increase is complicated by the Montana Department of Revenue’s six-year reappraisal of property-tax valuations, Stearns noted, which takes effect in the coming fiscal year makes the increase complicated.

In a normal year the city would be proposing a property tax increase of $17.26, but because of the state’s reappraisal process, the city has to levy an additional $80.35 in taxes to maintain the same level of service.

Stearns said the reappraisal process will cause significant variations in the impact to each property owner.

“Home values in Whitefish have not come back all the way,” Stearns said. “A lot of tax bills will be up, some will be flat and some will go down.”

The city is planning to spend down a net of $230,000 in cash balances compared to the $287,000 in the FY 2015 budget.

Stearns said spending less of the cash balance is a good trend, but having to spend any of the cash balance just to balance the budget is not good.

“I tried to get the budget down to a point where I felt comfortable without cutting anything else,” he said.

As part of the budget, the city proposes a 2.3 percent pay increase for city workers. Typically, the yearly increase for city employees is 3.3 percent.

Council last week asked what the difference would be in the city budget if the pay increase is dropped to 1.3 percent. The move was estimated to save the city about $58,000.

The city also faces collective bargaining negotiations with the police, fire and public works unions this year.

Fire and rescue

The fire department proposed budget includes capital expenditures to upgrade aging equipment.

A large capital expenditure includes replacement of the self-contained breathing apparatuses at a cost of $300,000.

Fire Chief Joe Page said at the end of this calendar year the department’s current equipment will have reached the end of its service life.

“We’re at a critical point,” he said. “In the future I’d like to get us on a 10 to 12 year replacement schedule so we don’t get to this point again.”

Council chose to defer the purchase of the breathing equipment last year.

In the ambulance budget, there is a line item for purchasing three heart rhythm monitors at a cost of $75,000. Page said the monitors are the main equipment used on the ambulances and some the department has now no longer operate.

Parks

The parks and recreation department is anticipated to begin the budget year with a cash balance carryover of $84,000, compared to the 2015 beginning available cash balance of $325.

Stearns commended Parks and Recreation director Maria Butts for her management of the department.

“Maria has turned the program around,” he said. “That’s a pretty phenomenal performance in one year.”

Changes in the parks and recreation department include contracting out concession services at City Beach.

“We’ve historically lost money there and now we expect to generate a profit,” Butts said. “That will help offset increased costs for lifeguards.”

The city is anticipating spending about $35,000 for lifeguard wages compared with the previous budget of $17,000. Butts explained that in addition to adding a head lifeguard, the hours lifeguards are on duty at the beach has been expanded and the season extended through August.

Another change is in the adult programs. The Flathead Rapids have taken over the adult soccer program and Flathead Recreation Management will run the softball program. Butts said the private entities were better equipped to manage those two adult programs, and the city will continue to run and expand other adult activities.

The parks department is considering increasing ice rental fees at Stumptown Ice Den to cover long-delayed maintenance and increasing operation costs. If approved, the increase is expected to bring in about $280,000 in additional revenue, while the city anticipates spending about $240,000 at the Ice Rink on repairs and creating a contingency fund.

Also included in the parks budget is adding a new park maintenance position at a cost of about $60,000.

Planning

Both the planning and building department budgets reflect an increase in projects coming through the city.

The city is estimating an increase in building permits and licenses. The city expects to end the current fiscal year with about $469,000. A total of just over $500,000 is estimated in building licenses and permit fees for the coming fiscal year. Permits for two new hotels and a new City Hall are expected to increase collects in 2016.

“It’s encouraging that we’re bringing in so much for permits,” Planning Director Dave Taylor said. “There’s a lot of second homes still being built.”

The purchase of a pickup truck is proposed for the building department at a cost of $25,000.

Taylor said the planning department continues to see an increase in activity with more interest in developing of subdivisions.

Included in the planning budget is the hiring of a consultant for up to $50,000 for the Wisconsin Avenue corridor plan. The money will come from the tax increment fund.

Taylor said based upon the recently created Highway 93 West corridor plan, the Wisconsin plan could take longer and be more expensive than originally anticipated.

Legal services

The budget proposes hiring a deputy city attorney and a part-time legal assistant at a combined cost of about $115,000. The city currently contracts for prosecution services with Hedman, Hileman and Lacosta at a cost of $90,000.

“The deputy would provide relief to the city attorney that we don’t get now,” Stearns said.