Libby approves $3.9 million budget

The Libby City Council on Monday unanimously approved a $3.9 million budget after spending the last week reviewing the document that was in preparation since June.

The final budget was approved at $3,910,188; about $7.3 million down from last year since federal funding for the Flower Creek Dam has come to a close. The council voted 5-0 to approve the budget, with just five council members remaining after the resignations of former Mayor Doug Roll and Council member Barb Desch.

Council members voted last week to table the budget approval for public concern that the council was uninformed on the budget. By Monday, the remaining five council members were on hand and informed after a week of contact and questions with City Treasurer Audray McCollum.

With mills set this year at $2,482.12, about two more dollars than last year’s mill amount, the budget is expected to incrementally raise taxes, even though the city is levying the same number of mills as last year. But, McCollum said last week that city residents can expect a bump in property taxes after approving a $4.1 million mill levy for the Libby School District to complete upgrades to its facilities. McCollum did not now how much taxpayers could expect to see their taxes rise.

The general fund is smaller this year, set at about 91 percent of its 2015-16 level at $1,376,426. The water utility fund has also fallen to about 15 percent of last year’s total, from $8.6 million to a little more than $1.3 million.

Several items on the budget are marked with a 2.2 percent decrease in funding to be redirected toward the fireman retirement account. McCollum said this is to make up for past years, when the city had improperly underfunded the account.

“The last clerk said we were in compliance so they never budgeted money for the fireman’s fund,” she said. “So now it’s going to be underfunded. We had to cut 2.2 percent out of everyone’s budget so we can fund it properly.”

While the city is now contributing 6 mills, or $14,892.72, toward the account, the additional 2.2 percent trimmed from other budgets brings another $31,027 to the retirement fund. McCollum said fireman’s retirement account issue is expected to be sorted out during the upcoming legislative session, where state lawmakers will decide how municipalities will fund the account.

The budget also allows for the same 24 city employee positions, which don’t include the city judge, mayor or council, although two department heads have retired, which is also bringing salaries down while other line items such as phone utility services, publicity and subscriptions and a handful of others have climbed.

Reporter Seaborn Larson may be reached at 758-4441 or by email at slarson@dailyinterlake.com.