City mulls preliminary $23M budget

SANDPOINT — The City Council is set to examine a preliminary budget of almost $28 million at its upcoming regular meeting.  

After honing their understanding over several workshops, council members will examine a preliminary budget for the 2013-2014 fiscal year. According to the documents presented for discussion, the proposed budget balance runs $27,801,990.

At about $10 million less than the 2012-13 budget, the proposed budget’s lower numbers are partially due to the water bond’s shrinking influence. Voters approved a $17 million water bond in 2009, which allowed the city to expand the water treatment facility. Financed by Panhandle State Bank, the bond added hefty sums to the past few budgets. In the 2011-12 budget, debt service funds totaled $10,430,231, while 2012-13 debt service funds ran as a $16,595,679 expenditure. Debt service funds for the preliminary budget come in much smaller at $3,139,904.

On the other hand, capital project expenditures are slated to increase to a total $3,170,762  — almost twice the amount from the current fiscal year. That increases the total general fund expenditures to $10,255,115, most of which pays for city employee salaries and benefits.

As for revenue sources, the city will be bringing in $3,558,505 in property taxes. Most of that money goes into the general fund except for $160,133, which goes into the recreation fund. Grants are another big revenue source at $3,968,700. Other major income streams come from utility payments, as well as about $3 million in intergovernmental transfers.

Council members will be tasked with reviewing department requests and other financial information in time to approve the preliminary budget at their regular Wednesday meeting, which will take place 5:30 p.m. at City Hall. As the primary foundation for future financial planning, the preliminary budget will pave the way for a public hearing proposed to take place Aug. 21. After the public has had a chance to weigh in on the issue, council members will make final budgetary decisions within another few weeks.