Tourism boosts Sandpoint revenues, expenses
Shoppers look for bargains at this year's Arts and Craft Fair. The annual event is held in downtown Sandpoint and draws a strong mix of local residents and tourists.
(Photo by CAROLINE LOBSINGER)
Editor's note: This story has been updated.
SANDPOINT — While an increase in tourism has boosted the city’s budget with additional revenue, it’s also increased its expenses.
In resort towns like Sandpoint, there is a resort tax or a bed tax for hotels, motels, and summer rentals, said City Administrator Jennifer Stapleton at Wednesday’s council meeting.
Due to higher tourism numbers, city revenues are about 15% up this year, said Sarah Lynds, city finance director. The city has the highest cumulative revenue this fiscal year and is only in the third quarter.
The influx of tourists causes an increase in expenses for the city, from the need for more paper towels in park bathrooms to overtime for police officers during The Festival at Sandpoint summer music concerts, said Lynds.
“Garbage collection at City Beach is four times what it was this time last year,” said Lynds, pointing out another of the larger-than-expected expenses.
The city officials told the council that if these trends continue they would need to ask the council to open the budget to address the unexpected revenues and to cover uninterrupted expenses that have accrued this summer.
Revenues that come from tourists go back to services that are required more during the tourist season. This could allow the city to put more money into the overworked police department, pay lifeguards, and park projects, said Lynds.
“Lifeguard costs are up substantially this year due to the current job market [that] we had to do wage increases in order to attract people to work for us,” said Stapleton.
This summer, the weather got warmer faster. While a typical summer would include rainy days or days when the city would pull the lifeguards from their stands because the crowds weren’t present, that didn’t happen this summer. As a result, costs have been higher, said Stapleton.
“We have costs in our public safety and parks departments that were not anticipated,” she added.
Officials could have tourists dollars pay for the impacts and cost of tourist activities if taxpayers approve by a supermajority a resort tax. This would take the burden off homeowners. This is a perk of being a resort town, said Stapleton.
Sandpoint city council meetings are held at 5:30 p.m. the first and third Wednesday of every month at City Hall, 1123 W. Lake St.