City's valuation basically flat, and that's problematic
Despite a building boom, like this new condo until on Nucleus Avenue, the city's overall valuation has stayed flat because of reduced assessments to utlities and industrial properties.
No one would dispute that the city of Columbia Falls has seen a building boom in the past year, with several new buildings either under construction or completed in the downtown district, not to mention the new houses going up in subdivisions.
Yet the total valuation of the city was pretty much flat, city manager Susan Nicosia told council during a budget hearing last week.
Why?
The city continued to see declines in revenue from business equipment tax, taxes on utilities, and taxes on the railroad that runs through the city.
The business equipment tax losses come from the loss of industry in the city that’s since been torn down or idled, like the former Plum Creek mills here. Utilities and railroads have also cut deals with the state to have their overall valuation reduced, Nicosia noted.
As a result the city’s total valuation actually dropped about $158,775 from last year, to a tax value of $7.26 million.
The city’s 2018-19 budget is $8.625 million this year, including sewer and water. The city plans will likely carry over about four mills it didn’t levy last year, which would result in about a $10 tax increase to a residence with a $200,000 assessed home.
The city’s general fund, which pays for everything outside the city’s sewer and water budget, is $3.068 million. Of that, about 39 percent goes toward the police department.
The city has added a police officer to its roster this year, bringing its staff to 10 total, including the chief.
The police budget is $1.196 million, up $115,436 over last year.
Other areas will see cuts from last year. Most notable is parks, which will see about $69,271 in less spending. Last year, the city rebuilt the basketball courts at Columbus Park.
The city’s budget will also carry a 20 percent reserve.
One big ticket item the city is eyeing is a new fire truck called a quint, which has a ladder and a host of other functions. The city was looking at purchasing a used one, but the two it hoped to buy are no longer available, fire chief Rick Hagen noted.
In the longer term, this fall the city could consider a public safety levy or a resort tax to pay for emergency services.
The city’s population is over 5,000, which means it will soon have to have a paid fire department.