Growth drives Whitefish budget higher
Growth in the size of the city and the number of its employees is the driving force behind a $20.5 million annual budget the Whitefish City Council will consider Monday.
A preliminary budget meeting begins at 5:30 p.m. at City Hall.
Overall, the Whitefish budget is up about $3.2 million over last year.
The city's operating budget of $10.9 million reflects an 11.6 percent increase over last year, due largely to the January 2005 annexation of 410 new properties that now require city services. Those new properties, along with new construction, will boost general-fund property-tax collections by about 20.1 percent, according to City Manager Gary Marks.
Whitefish proposes a $3.5 million general fund, up roughly $1 million from three years ago and about $400,000 higher than last year's budget. The general fund provides budget authority for transfer payments to various funds, such as law enforcement, fire/rescue and parks/recreation.
Law enforcement consumes the biggest portion of the general fund with a $1.6 million proposed budget, an increase of $170,000 over last year. The addition of two police officers accounts for part of the increase.
A growing city staff is a key factor in this year's budget, Marks said. While the city's population has increased 30 percent in the past five years, the number of city employees has increased only 15 percent.
"Now we're trying to catch up," he said.
New appropriations were needed in the general fund to accommodate the city's new legal services and community planning divisions.
City Attorney John Phelps and a part-time assistant will make up the legal services department, while the in-house planning office is staffed with Planning Director Bob Horne and two other full-time planners.
Other employee additions include two firefighter/emergency medical technician positions in the fire department. In all, the city is adding seven full-time employees and one part-time staffer this year.
Marks told the council recently that he believes the city's population will bump up to 6,564 this year, and that doesn't include part-time residents who own second homes. Whitefish began the decade with 5,032, according to the U.S. Census.
More people translates into an increased need for city services, Marks recently told the council. Fire and ambulance calls have more than doubled over the past 10 years: In 1995 the city logged 793 calls, while last year fire and ambulance crews responded to 1,715 calls.
Requests for police service have likewise skyrocketed, from 4,425 calls in 1995 to 10,800 calls last year.
Capital appropriations also have driven up this year's budget; the total capital outlay is projected at $9.6 million.
Among the biggest projects on tap this year are the East Seventh Street reconstruction, the BNSF Loop Trail and several other bike trails, a water distribution project that requires a new main pipe under the rail yard, MountainTrails Park parking lot and improvements and a reserve for the purchase of the Big Mountain Tire property.
Whitefish residents can anticipate a rate increase in water and sewer services over the next year. A 5-percent increase is tentatively proposed for both water and sewer service to offset rising costs, Marks said. The council will ultimately determine how big the increase should be.
The total appropriated budget is $24 million, causing some confusion for residents trying to interpret the document. Marks pointed out that the total includes interfund transfers representing funds that are essentially counted twice. Those transfers total about $3.5 million.
"After discounting for internal account transfers, the total is $20.5 million," Marks said. "Not every city makes as many transfers as we do."
Marks said the transfers help the administration better keep track of what goes where and boosts accountability.
Growth and the continued property-tax rebates from Whitefish's 2-percent resort tax, will once again allow the city to hold the line on taxes. Resort-tax revenue will generate about $343,000 in rebates in this budget cycle.
The mill rate, a formula used to figure tax rates, will remain at 111.21, the lowest of Montana's 13 largest cities.
Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com