2008-2009 Preliminary Budget Cuts

Issue: Whether to cut the City's 2008-2009 budget.

Facts: Cities in Idaho are limited to a budget increase of 3% each year (excluding grants, user fees and permit revenue). This is State law. The effect of this law is that each year, Idaho cities have to make difficult budget decisions because prices and costs may increase by more than 3%.

I ran on a campaign of fiscal responsibility. The 3% cap in Sandpoint means an increase of approximately $80,000 this year over last year's budget. The City budget is over $10 million. With health care costs increasing and fuel costs going up, it is hard to pass up $80,000.

By Idaho law we are required to submit a preliminary budget prior to adoption of the regular budget. By law, the budget cannot increase after the preliminary budget is submitted. Dollars can be moved around but the total number cannot increase.

This year, our preliminary budget will increase less than $80,000 over last year. The City of Sandpoint's budget is increasing at less than the inflation rate and less than the maximum 3% allowed. Many areas have been cut.

Conclusion: I voted to cut many areas because of my pledge; fiscal responsibility. I made a case-by-case determination out of the proposed cuts. In areas where it was reasonable, I tried to make reductions. The bottom line: for homeowners who own a home in Sandpoint worth less than $280,000, property taxes will go down (this figure is because of the homeowners exemption which affects the amount of property taxes paid). Of course, property assessments may increase but the City cannot control assessed values.

In the future, I would prefer that the Council vote on a budget amount (will we take the full 3% increase or less?) and then allow Sandpoint Department heads to make cuts or increases in their own budgets.