Whitefish City Council last week began crunching numbers in the second half of the fiscal year 2019 preliminary budget for the city.

The proposed budget shows an increase of about $1.6 million or 4 percent increase in spending over last year’s budget. The total budget is $42.6 million compared to the fiscal year 2018 budget of $40.9 million. Council on Monday approved the preliminary budget, but is set to vote on the final document in August.

The budget plans for a property tax mill levy increase of 3.27 mills or a 5.7 percent increase in property taxes. This works out to a monthly increase of about $5.67 for a home valued at $300,000.

Increases in spending are coming with a plan to add new staff positions, along with increases in wages and health benefits for employees, according to City Manager Adam Hammatt.

During a budget work session last week, Councilor Frank Sweeney expressed concerns about spending in the budget.

“Where is this money coming from?” he asked. “I’m very concerned about our piggy bank getting empty.”

He noted that spending items in the budget should have justification behind them for need.

“We are going to ask for a 4 percent increase [in spending] from our tax payers,” he said. “We need to have sensitivity to our tax payers.”

Hammatt said the budget reflects the items that are the top of the list for projects city staff plans to accomplish while spending the least amount possible.

“We are saying this is the most efficient way to do this,” he said.

Hammatt also pointed out that the budget increase estimated as a result of new taxable property is at 3.2 percent.

“We are accomplishing a whole lot with that,” he said. “The staff is aiming to please, aiming to be successful, but also aiming to do it in a way that is efficient.”

Councilor Andy Feury said a city budget increase of 5.7 percent in property taxes isn’t that large, when considering an increase in the Consumer Price Index of 3.1 percent.

“There is inflationary pressure,” Feury said. “Tax payers have to understand that we have seen an increase in our costs.”

A few adjustments to the preliminary budget document since it was sent to Council in May have been suggested by staff.

Among those is holding off on hiring a housing coordinator until January 2019 instead of hiring the position in the fall of this year. That is expected to save the city about $37,000.

Two potential additions to the budget have also been suggested. The city’s Tourism Master Plan committee has requested $25,000 in funds to hire a consultant for creating a plan.

In addition, the Whitefish Convention and Visitors Bureau has asked the city to participate in a crisis communication program. Council tentatively agreed to contribute $10,000 to the effort that would create a partnership between the city and WCVB to retain a communication firm, LJ Communications, to implement a formal crisis communication strategy in the event that such a plan become necessary.

A memo on the item from the WCVB notes that the “preparation is focused on preserving the brand of Whitefish in the event of any type of crisis and clearly communicating the important needs that arise.”

Hammatt suggested the city participate while noting that the city previously worked with the WCVB on crisis issues including last fall dealing with cyber-threats to the Whitefish School District, threats of a neo-Nazi march through town and wildfires.

“I do believe there is a crossover benefit for what they do,” he said.

The WCVB had requested $15,000 to add to the $15,000 it has set aside for the partnership, but several Councilors said $10,000 would be the limit for what it is comfortable spending.

Sweeney was skeptical of spending the funds even though, he noted, that both WCVB and LJ Communications do a good job for the city. He added that the WCVB already gets the city’s bed tax funds, which is intended for marketing Whitefish and that includes even in a crisis situation.

“I’m concerned about where we get the dollars,” he said.

Councilor Richard Hildner said he wanted to encourage the Whitefish Chamber of Commerce to participate in the communication program.

The budget proposes a 4 percent pay increase for city workers. Last year’s increase was 4.5 percent.

The proposed budget is projecting an ending cash balance in property tax supported funds 15.67 percent.

Council will hold a second public hearing on Aug. 20 when it is expected to approve the final budget document.

Municipal Court

While the Municipal Court budget remains largely the same as the previous fiscal year, it does call for spending $5,000 in capital improvements to install both jury and witness boxes along with railing in the courtroom.

Judge Bill Hileman says the lack of boxes leaves the witnesses and jury members feeling “exposed.”

Police Chief Bill Dial said often those in the courtroom are upset and installing those items are a security issue.

Responding to a question from Council, Hileman said he is still evaluating the staffing level of the court.

“We have a new judge, a new clerk and a new prosecutor,” he said. “Right now I can’t say that we have any spare time sitting around.”

Sweeney praised Hileman saying that the “court is operating efficiently.”

Police Department

The police department revenue is showing a decrease of about $13,000 in one area of grant revenue, but is also planning for about $100,000 in other grant revenue for FY18.

The department is expecting to spend $37,000 on a new police vehicle, and is anticipating an increase of $16,000 in operating supplies to address aging equipment.

Calls for service are on track for up to 13,000 calls this year and arrests for DUI are at more than 100.

Dial says many of the funding for grant sources for the Police Department have dried up, but his department continues to look for ways to purchase items made necessary by the increase in law enforcement’s use of technology.

“We came up with a five-year plan for the things that need to be replaced,” he said. “We’re looking for funding to replace radios.”

The Police Department anticipates beginning to use one body camera this summer, but Dial said he would like to see more purchased in future year’s budgets.

“A body cam is a great evidentiary tool,” he said. “We have cameras in the cars, but that doesn’t work when you go into a house or have a foot chase.”

Councilor Ryan Hennen advocated for the purchase of body cameras noting that they are invaluable in his job as an attorney for the Office of the State Public Defender.

Public Works

The street lighting districts fund budget is dominated by the city’s plan to convert its street lights to LED.

A project that kicked off this spring with the conversion of lights in the commercial district is expected to continue.

“The first phase of the LED switch is complete,” Public Works Director Craig Workman said. “We’ve already changed about 140 lights downtown and the next project will be the residential lights.”

The lighting budget includes a rebate from Flathead Electric Co-op for $14,500 for LED conversion. In addition, the city is anticipating a reduction in utility expenses and maintenance as a result of the change — $57,000 in savings from the residential lights and $23,000 from the commercial lights.

There are about 1,000 city-owned street lights in both the commercial and residential areas of the city.

The street fund budget is anticipating a $50,000 increase in revenue for the street maintenance fund for increased street maintenance to keep pace with necessary capital improvements and equipment, Workman noted.

In fiscal year 2018, the city is anticipating spending $150,000 on overlays and chip seals. The budget shows spending a total of $350,000 on capital improvement projects, which include work on the Flathead Avenue road extension, Central Avenue slump repairs, and a wall replacement at Washington Avenue/Skyles Place.

Capital equipment purchases total $93,000 in the budget for various pieces of equipment. A dump truck is planned for purchase at a cost of $120,000 being spread across three funds of the Public Works budget.

The street fund is also showing an increase in spending of about $50,000 for contract services to hire out snow removal for plowing alleys.

Workman said the city saw about 70 snow plowing events last winter and a typical year average is about 50 events. He noted that the city is looking to contract the plowing of alleys as one way to improve service.

The stormwater fund is planning for an increase in revenue of about $285,000 due to a planned increase of the stormwater utility maintenance assessment. The draft budget is calling for an increase from $12.53 to $60.53 per parcel.

Hammatt said the increase is being called for because in year’s past the city has not increased that assessment, which has resulted in other areas supplementing the stormwater budget.

“We want to do an increase this year and then plan for another in fiscal year 2021,” he said. “We would not increase that next year because it’s a tax reappraisal year.”

The stormwater fund calls for spending just under $270,000 in capital improvement projects. The largest project on the list is $150,000 planned for engineering and construction on Crestwood Drive and Parkway Drive stormwater improvements.

The water fund is showing an increase in revenue of $390,000 as a result of increases in charges for water service.

Capital improvement projects in the budget show $1.2 million in spending. Though one of the higher ticket items at $400,000 is for a south water reservoir tank land acquisition and is being paid for by impact fees. The city also plans to spend $500,000 on cast iron water main replacements, with a portion of that coming from impact fees.

The water fund shows spending about $130,000 on capital equipment purchases. The largest expense is $75,000 for an automatic reading system that would read water meters from a centralized location, while currently the meters are read through a radio system in a pickup driving by homes.

The wastewater fund is showing an increase of about $420,000 in revenue as a result of increases in sewer service rates.

The city is also anticipating about a $2 million increase in revenue from state loans as it begins to start funding equipment purchases for a new wastewater treatment plant. However, it also expects to spend about $2.5 million this year on design and upgrades for the new plant.

“We’re beginning the procurement of components for the new wastewater plant,” Workman said.

The capital improvement projects in the wastewater fund total about $6 million. The capital equipment purchases are budgeted at almost $600,000 with the largest expense being the replacement of a vacuum truck at $400,000.