City approves $36.9M budget

Whitefish City Council unanimously voted to adopt a $36.9 million final budget for fiscal year 2013 at their Monday meeting. The budget includes some major capital outlay projects and pay raises for city workers while still maintaining the current property tax rate.

Monday’s vote was the first time in three years the council has unanimously approved a city budget.

“This budget is a balanced budget,” city manager Chuck Stearns said. “We are using some reserves to help balance the budget, but we’re not increasing property tax rates or assessments.”

The property tax rate will stay steady at 120.4 mills. Whitefish has historically had low property tax mill levy rates because of a resort tax rebate and high property valuations, Stearns had noted in the preliminary budget. Compared to other Montana cities with populations more than 4,500, Whitefish’s rate is less than Columbia Falls, Kalispell, Bozeman and Missoula.

The preliminary budget had projected a 4.3 percent increase in the property tax base. When the official number came in slightly lower at 1.6 percent, council decided to dip into the city’s cash reserve to make up the difference.

The year-end cash balance in the property tax supported funds will be lowered to $898,889, or 10 percent of expenditures, compared to a cash balance of $1.03 million at the beginning of fiscal year 2013.

The final budget includes a 3.7 percent pay increase for non-union employees. The preliminary budget proposed 4.7 percent pay raises, but councilors decided that amount was too much and lowered it by a percentage point.

Last year city workers received a 1.3 percent cost-of-living pay raise and 2 percent step increase.

Negotiations with the three unions representing city workers are in progress. Stearns said those negotiations will include a 3.7 percent pay raise.

Capital outlays in the coming year largely focuses on the Whitefish Fire Department for new fire apparatus and an ambulance, and upgrades at the Stumptown Ice Den. Cash balances in some funds could be used for capital expenditures such as architectural work on a new City Hall.

Councilors attended four work sessions this year as they pounded out the details of the budget.

“I’m proud of the work we did on this thing,” councilor Bill Kahle said. “There is a lot of work that went into this budget.”

Richard Hildner reassured residents the budget was “sound and responsible.”

Chris Hyatt reflected back to the first budget he worked on as a councilor in 2010.

“We’ve come a long way in three years,” Hyatt said. “We owe it to the fellow councilors and all of the department heads.”