Lewiston council gives budget initial OK

Lewiston city councilors approved the first reading of a $91 million budget for fiscal year 2021 that includes a proposed 3 percent increase in property tax revenue and a 5.25 percent increase to water rates to fund a new pipe replacement program.

City Manager Alan Nygaard indicated at Monday night’s first budget hearing that the 3 percent figure will likely go down thanks to expected savings in the city’s health care plan for its employees.

Administrative Services Director Dan Marsh told the council that thanks to an increase of more than 6 percent in the city’s net market value, the property tax levy will actually go down, even though revenues will increase. For example, there will be an approximate $30 annual savings on each $100,000 of taxable net value for a homeowner whose assessed value didn’t change.

“There’s more people paying,” he said. “Our tax base is larger.”

But many have seen their assessed values go up over last year, and those people may end up writing a bigger check to the county assessor next year, Marsh added.

The votes on the budget and water rates came after public hearings on both issues, with several residents speaking against the proposed increases. But several councilors forcefully pushed back at a contention made by several commenters that Lewiston has one of the highest tax burdens in the state.

Councilor Bob Blakey said that many cities with lower property tax burdens have separate taxing districts for things like libraries, streets, parks and fire protection. But Lewiston offers all of those services and more under its single property tax.

“We are a one-stop city,” Blakey said. “Your city council is responsible for running all aspects of this city.”

Councilor Cari Miller pointed out that taking into account the total tax burden of additional taxing districts in other Idaho cities, an analysis by the Association of Idaho Cities ranks Lewiston 21st in the state.

Councilor John Pernsteiner lauded the city staff’s work on the budget, especially the fact that of the 40 “cost centers” that require city funding, 18 are flat in the proposed budget, eight are lower, and only 14 are higher than last year. He also pointed to the reduction in the levy rate as a reason for supporting the proposal.

Final approval of the budget requires the approval of two more readings over the next two Mondays before it can be considered for adoption.

Only Councilor John Bradbury voted against the first reading of the budget, voicing objections to several city expenditures during the hardships imposed on residents by the coronavirus pandemic. Bradbury was joined by Mayor Mike Collins on voting against the increase to water rates for similar reasons. But the remaining five councilors supported the program that aims to start replacing and upgrading the complicated network of pipes, reservoirs and pumping stations necessary to deliver drinking water to the hillside city.

They pointed to decisions made by previous councils to not follow master plans that would have paid for the work incrementally. Those years, many with no increases to water rates, were responsible for the 40 percent increase in revenue required to repay the bonds 90 percent of voters approved last year to rebuild the water treatment plant.

Mayor Pro Tem Kathy Schroeder said that to repeat those mistakes will hand residents a similar steep bill in a few years, rather than sticking to the city’s new water master plan that spreads the burden over a decade.

Public Works Director Chris Davies said that for a household that uses an average amount of water, bills will increase $3.37 per month for those with a ¾-inch water line and $3.69 per month for those with a 1-inch water line.

In other business, councilors also cast a final unanimous vote to create a business improvement district that will collect funds from property owners to pay for various projects designed to stimulate further redevelopment in the city’s historic downtown area.

Mills may be contacted at jmills@lmtribune.com or (208) 848-2266.