PF to raise 2009 budget

Post Falls will increase its budget by at least 3 percent next year and may utilize previously unused taxing authority to grow its budget by as much as 6 percent.

In an agenda-packed meeting Tuesday, city councilors informally discussed the 2009 budget, rebuffing a suggestion to switch to a zero-based budget process and agreeing to use their maximum taxing authority to increase the budget by 3 percent. Unclear was whether the city will collect an additional $261,000 in forgone taxes – unused taxing authority from previous years. They also approved the purchase of additional park land and authorized staff to pursue a new railroad crossing at the Montrose development.

Post Falls Finance Director Shelly Enderud said that the full 6 percent would cost the owner of a $250,000 home an additional $18 in taxes next year.

“That’s one latte a month,” said Councilor Skip Hissong who advocated using the $261,000 in foregone money for law enforcement. “That’s pretty inexpensive to put more police on the streets.”

Other councilors expressed reticence over raising taxes, but added that the impact to individuals does appear small.

All seemed in agreement over increasing city taxes by 3 percent and said they were open to considering taking foregone taxes depending on what the money is earmarked to fund.

Councilor Joe Bodman said that if that taxing authority previously left on the table is used he would also like to see it used for needed personnel.

“What is public safety worth to you?” Bodman asked.

Mayor Clay Larkin also warned that the Idaho state legislature routinely discusses taking away municipalities’ ability to go back and assess foregone taxes. If Post Falls doesn’t exercise that previously unused taxing authority, it could be taken away.

Though Hissong expressed interest in zero-based budgeting in which department heads would start with a budget of nothing and then request 2009 funding item by item, other councilors said they were concerned that approach could lead to too much interference from the council picking apart the budget line by line.

Instead, they said they favored the current budgeting process in which departments start with the same budget as the previous year and then request any additional funding.

City Administrator Eric Keck earlier suggested that zero-based budgeting might reveal inefficiencies and save the city money. “My gut feeling is there is a lot to be gained from it,” Keck told the council.

But the council, including Hissong in the end, disagreed.

“I think we’ve moved past that,” said Councilor Scott Grant of zero-based budgeting. “I don’t want to be micromanaging the department heads.”

•In other business the Post Falls City Council approved an agreement to buy 5.55 acres of land adjacent to Corbin Park. The $400,000 piece of property will be paid for with impact fees.

The council also approved a plan to realign Poleline Avenue between Chase Road and McGuire Road to close one railroad crossing and open another. The plan would divert Poleline Avenue traffic onto Clark Fork Parkway.

•City Engineer Bill Melvin explained that BNSF would not agree to allow the city to add a railroad crossing near West Ridge Elementary unless it closes another nearby crossing.

The new elementary will open in the Montrose neighborhood this fall and the crossing is necessary to get children to and from the school, Melvin said.

Melvin said that Montrose developer Greenstone will pay for the street realignment and crossing.