PRIEST RIVER — The city returned to online council meetings this week due to COVID-19 health and safety protocol. Monday’s agenda was light, largely focused on the Fiscal Year 2021 budget.

A tentative budget of $5,160,598 was unanimously approved at the July 20 meeting. This number is the maximum money the city can levy for FY21.

“We can always come down from that number, but we can never come up from it,” Mayor Jim Martin said.

In comparison to last year, the general fund budget decreased from $1.182,000 to $981,501. Martin said the reduction is due to the loss of a $235,000 grant from the state of Idaho.

“But, we pretty much held the line with all of our revenues in the general fund,” Martin said.

Over $1 million of the $1,747,000 of the city’s street funds is from a federal grant allocated for the Wisconsin and Highway 2 project. Martin said this project may or may not go through this year, but has been budgeted as a precaution.

The water fund budget is $705,227 and the wastewater fund budget is $177,374. A sizable portion of the wastewater fund will go toward the city’s current wastewater improvement project, Martin said.

The city will hold a public hearing on Aug. 17 at 5:30 p.m. for the 2021 budget along with a hearing for the water rate increase. The city is looking to adopt a four-percent increase to monthly fees, along with the voter-approved $3.19 for the 2020 sewer improvement bond. The total increase with both fees will be $4.55 or a little over $1 increase in the monthly rate for Priest River residents.

“We are finally at the point after many years of continuing having to raise rates, where we are actually balanced in both water and wastewater, which has been a struggle to get there,” Martin said. “Although we increased the maintenance and operation portion of the water and wastewater, we were able to decrease the bond payments.”

The city’s health insurance plan was also renewed at the July 20 meeting with a five-percent increase as opposed to their anticipated 12-percent increase. The city uses Blue Cross of Idaho and offers employees threeoptions: silver, gold plus and bronze plans.

Other items approved by council included rolling over Timber Days donations for next year and general payables.

Martin also announced permit approval for Asphalt Angels to hold the Car Cruise this Friday. “It looks like they’ve provided everything they need to, as far as insurance and permits,” he said. “If you want to get downtown and support the Asphalt Angels I would encourage you to do so.”