C. Falls looks for new revenue sources

Columbia Falls City Council members have a 2005-06 budget assignment over the next month: Think of new ways to cover major projects.

The projected $5.725 million general fund will be hard-pressed to meet needs on the city's horizon, and City Manager Bill Shaw urged council members to think about how to fund projects.

A levy request could be floated to the voters, he said.

But using proceeds from sale of the Cedar Creek property, about 400 acres the city owns up the North Fork Road, probably is a more viable option.

Cedar Creek land being considered for sale, Shaw emphasized, will not include the 40 acres containing the dam face for flood control and the 2-million-gallon holding tank for the city's drinking water.

Shaw said he is not concerned with "hard numbers" until closer to early August, when better revenue figures are expected from the state.

"I just want them to realize their current funding method is not going to cover a lot of the projects we are talking about," Shaw said. "We're just up against the wall now to find a hard source of revenue."

Over the past year, the council has developed a priority list of sorts, recognizing the need to rebuild a deteriorating Talbott Road, widen the narrow Veterans Drive, complete a city-connector bike path and finish building 13th Street West from Veterans Drive to Hilltop Homes subdivision.

Other essential projects are on the horizon, including a $1.8 million upgrade of the aeration basin and other renovations at the sewer plant. It had been put off from the recent overall plant upgrade to hold down costs, but cannot be delayed past 2008, Shaw said.

A year ago, he had projected around 60 or 70 building permits would come in this year, bringing with them revenue from building, water, sewer, street and other fees. However, that number is only in the 40s.

The council is being asked to decide what it considers a reasonable expectation for future growth - whether it's closer to 30 or 40 or higher - so Shaw and business manager Sybil Noss can build the budget around that.

With the current fee schedule providing enough to cover only current debt for city utilities, additional projects will require new funding ideas.

When the council agreed recently to pursue sale of the Cedar Creek property, it decided to set up a trust fund from the proceeds. That trust fund would be used to fuel future growth in the public and private sector, with loans being made to those who could show a dependable revenue stream from a solid project that could guarantee repayment.

But the entire sale price - with estimates ranging up to $3 million or $4 million - may not be locked up in the trust.

Council members on Monday night considered the option of designating a portion of the proceeds up front for the most vital infrastructure projects, avoiding the need for future financing.

Shaw expects further discussion and an updated draft budget in a month.

Reporter Nancy Kimball can be reached at 758-4483 or by e-mail at nkimball@dailyinterlake.com