Whitefish to vote on final budget

The Whitefish City Council tonight is poised to adopt a $36.9 million final budget for fiscal year 2013 that contains a trimmed-back pay increase for workers and lower than expected growth in the city’s property tax base.

A public hearing will be conducted before the council votes on the final budget.

City officials had projected a 4.3 percent increase in the property tax base, but had to refigure the preliminary budget after valuations announced by the state this month showed Whitefish’s growth came in at just 1.6 percent.

Whitefish will dip into its cash reserve to make up the difference, Finance Director Rich Knapp said.

The year-end cash balance in the property tax supported funds would be lowered to $898,889, or 10 percent of expenditures, compared to a cash balance of $1.03 million at the beginning of fiscal year 2013. The preliminary budget had pegged the year-end cash reserve at 11.1 percent.

Property taxes won’t be raised.

The final budget also reflects a 3.7 percent pay increase for non-union employees. The City Council earlier this summer decided a proposed 4.7 percent pay increase was too much, and dropped it a full percentage point.

Negotiations of the three unions representing city workers continue. All three have open contracts at least for pay and economic issues.

The overall budget is about 2.5 percent, or close to $1 million less than last year’s budget. The single largest reason for the decrease is the near completion of a $3.5 million federal grant for the Second Street (U.S. 93) reconstruction project.

Capital outlays in the coming year largely focus on the Whitefish Fire Department for new fire apparatus and an ambulance, and repairs at the Stumptown Ice Den. Cash balances in some funds could be used for capital expenditures such as architectural work on a new City Hall.

In other business, the council will hold a public hearing to consider a resolution approving the Lakes Development Group’s request to vacate two lots in The Lakes Cottages development.

The meeting begins at 7:10 p.m. at Whitefish City Hall.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.