$36.3 million city budget approved

Whitefish’s fiscal year 2014 budget includes a slight reduction in the tax rate, pay raises for city workers and funding to hire a few new employees, all while increasing the projected year-end cash balance.

Whitefish City Council unanimously approved the $36.3 million budget at their Aug. 19 meeting.

With the economy continuing to improve and increasing building permit revenues, City Manager Chuck Stearns said the FY 2014 budget was still difficult to balance.

At the Aug. 19 meeting, Mayor John Muhlfeld praised city staff for their work.

The budget includes a property tax mill levy of 119.8, which is a slight decrease from last year’s levy of 120.4 mills.

Whitefish has historically had very low property tax mill levy rates because of the city’s resort tax rebate for property tax reductions, high property valuations, and maintenance district assessments, Stearns explained in his budget statement.

The year-end cash balance for the fiscal year is projected to be 11.5 percent of expenditures, compared to 10 percent in FY 2013. The increase translates to a cash balance of $1.06 million in property tax supported funds.

The budget includes a 3.7 percent pay increase for city workers, which includes a cost of living adjustment and a 2 percent step increase.

The police and public works unions have collective bargaining agreements in place for both FY 2014 and FY 2015. The city is still negotiating with the firefighters union and those negotiations are currently in mediation.

Due to the end of the city’s SAFER grant for funding six firefighters hired in 2009, and the end of the COPS grant which funded one police officer for the past three years, the city absorbed revenue decreases of $78,120 and $36,000 respectively.

“On the positive side, we successfully integrated all of these positions, both financially and operationally, so both grants were very important and successful,” Stearns said.

Funds to hire an additional city planner will be provided in the budget, along with additional seasonal staffing at the Parks and Recreation department. Cost for the new planner is about $80,000, and $63,700 for the seasonal parks staffing.

The budget includes an increase in assessments for both the residential and commercial street lighting districts by 10 percent, however the increase is offset by a reduction in the property tax mill levy rate.

There is no anticipated increase in water rates or wastewater rates.