SANDPOINT — Budget cuts for the upcoming fiscal year led to questions about the business improvement district's membership fee structure, purpose and performance at Wednesday's City Council meeting. Kim Queen, director of BID, told council members that her new budget accounted for a loss in funds from the Sandpoint Urban Renewal District.

"We're waiting to hear whether we'll get SURA funding," she said, "‘We’ve been told we may not get any SURA money at all."

This year's operating budget relies heavily on BID's income, which comes primarily from business owners downtown. Businesses must pay a quarterly fee based on the net square footage of their establishments. Queen said that smaller businesses with up to 400 square feet, excluding storage areas, pay about $30 per quarter.

“How do you address those businesses that say they don’t get any benefit from the BID?" asked Councilman Bob Camp.

“I’m not sure how to address each specific business," said Queen, adding there were dozens of businesses in BID, but only one of her.

Members of the audience provided some background for Camp's question. Tracy Lutrick, who owns Blue Plate Designs with her husband, Robert, said their sign business gleans little benefit from their BID contribution.

"We have never met a representative from the BID,” she told City Council. "We are on the Sand Creek side of First Avenue. We have no benefit from being there and being part of the BID. We moved into a larger space, and now our BID fee has gone up."

Anita Aurit, owner of The Office Sandpoint, located on the edge of the BID, agreed with Lutrick.

“I want to thank the council for having this discussion because I’m one of those frustrated BID players. Three years ago, when I saw Kochava on the (BID) budget ... I told Kim that I would like to participate in (the BID-sponsored Kochava event). She said 'Oh, no, that’s Charles’ thing'...I am extremely frustrated because I have tried to make it work," said Aurit. "I volunteer so much in this community, but I haven't for the BID, and I will not."

Camp suggested adding a sunset clause to the BID contract, which would allow businesses to opt out of the program if they desired after every five years of membership.

"We can’t have a sunset clause," said Scot Campbell, city attorney. "BID businesses can dissolve it (the business improvement district), or City Council can vote to dissolve it, but we don’t have the authority to change the terms.”

“I would imagine most people in the BID district are not aware of their decision-making power," said Councilwoman Shannon Williamson. "I’m sure there are a lot of new businesses in town and a lot of businesses from 16 years ago that are no longer there. I think it would be important to say here’s the history, here’s the deal, here are the options.”

Queen said that her organization provides such information to each new BID member.

Williamson also asked Queen to tell the council about BID's activities. 

The BID director explained that her organization's role in many events was logistical — obtaining the appropriate permits, handling publicity and rounding up volunteer help.

“Obviously, the SURA grant funds a lot of the things we’ve gotten used to," said Councilman Stephen Sneddon. "If you don’t get the SURA grant, do the events still go on with the loss of SURA funds?”

“I think we can still put things on with less money.” Queen

The majority of the council voted to approve the budget as presented by Queen. Camp, in deference to those business owners who disagreed with BID, voted no.