Council debates resort tax estimate as city budget unveiled

As expected, Columbia Falls city property taxpayers will see a significant reduction in their taxes this year, as they city will levy half as many mills as it did last year, due to a windfall from the city’s resort tax.

The 3% resort tax brought $1.506 million into city coffers this year and it’s expected to bring in at least as much in the next fiscal year.

Since the city estimated it would bring in far less — $780,000 — under state law, the difference has to be used to reduce property taxes. As such, the city will levy about 90 mills this year. Last year it levied about 181.

The resort tax already has a 25% allocation toward property tax reductions.

City manager Susan Nicosia, using her home as an example, said it would amount to about a $215 reduction in her city property taxes this year.

Individual homeowners will see reductions based on the value of their own home.

The hearing on the budget went about 3 hours, with the city council debating whether it should intentionally underestimate the resort tax revenue again this year.

Mayor Don Barnhart, to start the discussion, suggested maybe they intentionally estimate it as $1.3 million, which would, in effect, guarantee another significant property tax rebate.

Councilman Darin Fisher — and most of the council — disagreed, however, noting that when the law was crafted and passed, it already had a property tax reduction built into it. It was designed to fund public safety, and it was doing just that.

The resort tax this year funded two more firefighters and an additional police officer. (The third firefighter was funded by the rural fire department).

Resident and former councilman Dave Petersen, the only person to speak on the budget, also thought the city should intentionally underestimate the resort tax as well.

“There’s plenty of stories where tax relief is a Godsend (to homeowners),” Petersen argued.

But in the end, council agreed the budget was pretty tight, even with the resort tax.

“I believe this is a need-based budget and it is tight,” Councilwoman Paula Robinson said. “There is little fluff.”

In the end, council decided to keep the resort tax estimate at $1.5 million for the next fiscal year.

The city does has some significant expenses on the horizon. It needs a new fire truck, which costs about $700,000 and police cars break down frequently. The cost to replace a police car, with all the equipment and cameras, is about $90,000.

The general fund budget this year is about $4.2 million. The total budget is about $20 million, but that includes sewer and water and the city is in the process of spending more than $5 million to upgrade its sewer plant.

Robinson also argued that if there was any additional funding, they should pay police and firefighters more, in order to retain them.

The police department makes up a significant chunk of the general fund budget, about 40% or $1.731 million. The city now has 11 officers, including the chief. The fire department budget is $666,804 and has four paid firefighters, including the chief as well as about 30 volunteers.

Barnhart did ask, however, for department heads to give them capital improvement needs for the next five years, so council could prepare budget priorities.

Some projects planned for this year that people should see primarily concern city parks. The city pool building needs a new roof, there are plans for a bathroom at Fenholt Park that would dovetail in with the new skate park and would hopefully be paid with a Land, Water and Conservation grant.

The city will also put a fence around its basketball court and repair the surface once the fence is in. The pool also needs a new heat exchanger.

It will also look to use Tax Increment Financing funding to curb and gutter streets near Nucleus Avenue to improve parking.

The city will look to spend about $303,000 on parks total. The pool, which is separate, has a $143,000 line item this year.