By Zach Hagadone
Reader Staff
Budget season is off to a start at Sandpoint City Hall, with council members voting unanimously July 17 to approve the preliminary Fiscal Year 2025 budget and establish dates for a workshop, public hearing and adoption in August.
The proposed maximum budget for FY25 is $50,499,054, which is $2,475,215 less than the FY24 budget, representing an overall 4.67%. According to Finance Director Sarah Lynds, the reduction is due in large part to Sandpoint’s withdrawal from the Selkirk Fire joint powers agreement, which took place over the course of the spring and early summer.
That move accounts for just under $2 million of the FY25 budget decrease.
Photo by Ben Olson.
Meanwhile, the proposed budget includes “a significant increase” in spending on capital projects — specifically the design and planned upgrades/replacements to the wastewater treatment plant, with those projects funded through utility user fees.
Other projects include a short-term rehabilitation of the Bridge Street bridge; Phase 3 of the downtown revitalization project focused on rebuilding First Avenue from Bridge to Lake streets, as well as improvements to Superior Street; realignment of Ontario Street at Highway 2 to improve visibility and shorten crossing distances for pedestrians at the intersections; sidewalk and bike path projects along Fourth Avenue south of Superior to Pacific Street; reconstruction of Cedar Street from Division to Lincoln Avenue; high-dollar improvements to the Great Northern corridor; and a range of street projects, among others.
Based on the preliminary budget, Sandpoint estimates it will levy $5,131,368 in property taxes in FY25, representing $336,649 more than FY24.
Preliminary new construction is valued at $58,810,689, with 90% of that value available for levy purposes, resulting in projected property tax revenues of $138,017.
“That’s about double what we’ve seen in past years,” Lynds said, pointing to an ongoing upswing in local growth and development.
The proposed budget also includes levying $51,794 of the total $399,493 available foregone property tax from prior years for the purchase of public safety vehicles, though the exact amount may change after the 2024 net taxable value is released. That figure, as well as the final levy rate to be used for the new construction calculation, is expected to be solidified before the next City Council meeting at 5:30 p.m. on Wednesday, Aug. 7, which will feature a workshop on the budget.
General fund expenditures would increase by $1.21 million from FY24, attributed in part to the budget for reconstruction work on Great Northern Road, while special revenue funds will go down $7.31 million — representing the completion of the James E. Russell Sports Center at Travers Park.
City employees would receive a 2% pay increase to keep pace with regional agency benchmarks and account for increased health insurance costs that may go into effect on Jan. 1, 2025. The budget also includes step increases for employees based on the city’s salary policy.
The proposed budget reflects a number of administrative changes over the past fiscal year. Overall, expenses among city departments and divisions would go up because of either one-time projects or changes to employees’ department or division classifications, or they would remain the same from FY24.
Among the exceptions to that would be the removal of the Administrative Services budget — a result of the elimination of the city administrator position — and establishment of the Community Planning and Development Administration and Russell Center operations budget. Meanwhile, the Parks and Recreation Planning and Arts, History and Culture Services budgets would be transferred to CPD Administration.
A special meeting will follow the Aug. 7 workshop if a second gathering is needed ahead of the public hearing and final adoption, both of which are scheduled to take place at the Wednesday, Aug. 21 council meeting in the City Hall Council Chambers (1123 Lake St.).
View the online budget book, which includes narratives of FY25 projects, maintenance and operations — along with a one-year plan of capital improvement projects over $75,000 — at bit.ly/467YXVg.
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