City wrestles with budget imbalance
During a budget hearing May 15, Polson City Commissioners learned that the city is facing a “structural imbalance in the general fund,” meaning that revenues aren’t keeping pace with expenditures.
The proposed annual budget reflects estimated revenues of $13,970,771 and budgeted expenditures of $16,363,603. Property tax revenues for the coming year are expected to increase by around $50,000, but actual numbers won’t be available until August.
Among the cuts reflected in the proposed budget are three full-time positions (currently vacant) in police, parks and code enforcement; postponement of the purchase of a Dura-Patcher machine for the road crew and turnout gear and radios for the fire department, plus line-item reductions for all departments.
“There’s not a lot left to cut,” City Manager Ed Meece said.
The budget report noted that the elimination of full-time staff positions will require a redistribution of job duties. The administration will seek grant resources to help pay for equipment and planning needs.
Still, the budget does include some increases. Among them:
• A 3% cost-of-living adjustment for all staff
• Increasing the assistant fire chief’s position from half- to full-time
• Salary adjustments for the leadership team
• Hiring an IT/GIS director
• Adding a patrol vehicle
• Street projects on 17th Ave. (funded by the Gas Tax), and on Second St. West and Fourth to Fifth Ave. West, (funded by the Tax Increment Finance District), plus a study of the Hillcrest connector, and improvements to 11th Ave. and Claffey Dr.
• Water and sewer system improvements, largely funded by American Rescue Plan Act (ARPA) money
Meece noted that the continued depletion of reserves is not sustainable. “This is something we have to pay a whole lot of attention to,” he added.
The commission will meet again June 19 to approve the final budget.
During its regular meeting, the commission approved the second reading of an ordinance to allow duplexes in low-density residential zoning district – a change that was first brought before the commission in January. A public hearing on the matter was held in April, and the City/County Planning Board has recommended approval.
The amendment is also congruent with a new law passed by the Legislature, aimed at increasing the housing supply by easing zoning restrictions statewide.
The commission also unanimously passed a resolution that would revise priorities for the use of Tax Increment Finance District (TIFD) funds to prioritize funding for infrastructure projects over building projects. The new guidelines will help the Polson Redevelopment Agency and the city staff process future grant applications.
“Infrastructure is more important to bringing people here and keeping people here than just a pretty building,” said commissioner Jen Ruggless in voicing her support for the changes.
The commission’s next meeting is June 5 at 7 p.m. Visit cityofpolson.com/meetings to view the agenda.