PONDERAY — The City Council unanimously passed two ordinances to implement voter approved tax increases centered on tourism and improving the city’s infrastructure.

The council passed an ordinance to implement the city’s 1% local option tax, following its approval by voters earlier this month. In contrast to the city’s effort in 2024, this year’s ballot initiative reached 77% approval with 122 yes votes, clearing the needed 60% threshold. 

“Pretty happy with the LOT success at almost 78%,” Ponderay Mayor Steve Geiger said. “157 voters compared to 450 or 460 last time, I don’t know where 300 people went, but I’m not going to complain. I think we have a lot of great things we’ll be able to accomplish with this.” 

The tax will be in place for the next 10 years starting Jan. 1, taking 1% from all purchases made in the city under $1,000. The funds from the LOT will be used to fund ongoing city projects like the Field of Dreams, lakeshore access and $500,000 funds for street maintenance and improvements.  

“I would like to thank the voters of Ponderay who came out and supported their city continuing on with the projects we have started together by passing this local option tax again,” Geiger said after the election. “My favorite part is we’ve also committed to an endowment fund that will reach $2 million for the future maintenance of the Field of Dreams and parks in our city.”   

Similar to the LOT, the council also passed an ordinance to implement a 12-year 10% hotel and lodging tax, which voters approved in the May election. The tax is a 3% increase from the city’s previous bed tax, which passed in 2017 and was set to expire at the end of this year.  

Starting Jan. 1, all rentals shorter than 30 days will have to pay the increased tax. The revenue from the tax will go toward road work, public safety services, public transportation, education and more. 

Councilor Brenda Thompson raised the issue of Bonner Mall Way and Kootenai Cutoff Road, both of which are showing intense wear. Ryan Luttmann said the weather won’t allow the city to do any immediate fixes, but that he could begin planning projections to repair those streets. 

"Kootenai Cutoff Road could have curb and gutter maybe something that we consider for a mill and overlay,” Luttmann said. “That might be where you’re budgeting $410,000 to $500,000 for a project like that.” 

Luttmann said the city will be coming up with a plan for its street repairs, now that the LOT has passed, and the city is sure it will have funding.