The McCall City Council last week tentatively adopted an $18.5 million budget for the next fiscal year that begins Oct. l.
The budget of $18.5 million is $231,000 less than this year's budget of about $18.7 million, but it includes a tax increase to help to continue paying off the $6.5 million J-Ditch lawsuit.
A public hearing on the tentative budget is set for the Aug. 9 council meeting.
The city will take its 3 percent tax increase allowed under state law for an additional $93,500 in revenue.
The city will also see $284,000 in extra property tax revenue in next year's budget allowed for new growth.
The city will also take an additional $231,000 in "foregone" money, which is the amount of property taxes the city could have taken in prior years but chose not to. In all, the city will receive $2.27 million in property taxes for next year's budget.
The extra revenues are being taken to help the city payoff a federal judge's order for the city to pay $6.5 million to Employers Insurance of Wausau and St. Claire Contractors, Inc., of Boise, for the city's mismanagement of the construction of the city's wastewater storage pond.
The city has already paid about $300,000 this year toward the judgment and is seeking an addition $600,000 from the2007-08 budget to knock the debt down to about $5.6 million.
The council only made two monetary changes to the budget proposed by city staff at the workshop last week.
Mayor Bill Robertson wanted the city to double its funding to the Upper Payette River Economic Development Board from $15,000 to $30,000. The economic development arm of Boise and Valley counties lost $41,500 in state funding for next year and Robertson wanted the economic development work to continue in the region.
Council member Bonnie Bertram also wanted $2,500 that was taken out of the budget for the Idaho Historic Preservation committee to be put back in to the tentative budget.
All Local Option Tax Commission recommendations remained unchanged, deputy city manager Fred Quiel said.
The major reduction in the budget is due to a reduction in building permits and plan check fees to the city, that are projected to be down $555,060, Quiel said. The city only expects to receive $445,500 next year, based on this year's actual take.
The city's contingent revenues and expenses increased by double from $350,000 to $700,000, Quiel said.
Paving projects in the city have been reduced in next year's budget by about $200,000 to just $25,000. A planned reconstruction of Wooley Avenue has been eliminated from the city's capital improvements. In its place, a limited repair will be funded, Quiel said.
An additional $27,938 was cut from the McCall Public Library for capital improvements.
Eliminated from next year's budget include:
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An unfilled extra community planner position.
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A vehicle for the community development department.
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Two new police vehicles.
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A pickup truck for the public works and streets department.
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A 14th police officer will not be hired until the next fiscal year is half over and $13,500 in police overtime pay has been eliminated. Currently, the city has 11 police officers.
