Ketchum City Administrator Ron LeBlanc has compiled an analysis of the city's budget carryover that slates $846,670 worth of fund balance for expenditures that were not slated in the 2006-2007 fiscal budget. That's $525,208 more than the city had predicted it would spend.
"We started the fiscal year with $1.67 million (in carryover)," LeBlanc said. "That includes restricted and unrestricted revenue."
Restricted revenue is comprised of funds from the police, fire and planning and zoning trusts. It is earmarked for expenditures within each department. The unrestricted funds, however, total $949,288 and can go toward an array of expenses should the city choose to use them. In a general fund balance analysis dated March 16, the funds are earmarked for Community Development Corporation and Urban Renewal Agency expenses, as well as Fourth Street Heritage Corridor construction expenses.
The URA can make physical improvements within a defined urban renewal district. It can also acquire and dispose of property in ways municipalities cannot. The URA is eligible for federal and state grants and can generate revenues from projects. The Ketchum City Council is also the board of directors for the URA. So essentially the City Council is the leader of two municipalities, one jurisdiction inside another.
City officials cite community housing as a main goal of the URA, calling the lack of affordable living space one of the limiting factors of the city's economic condition. Other primary URA goals include construction of the Fourth Street Heritage Corridor and construction of a town plaza.
The CDC is run by an independent board and is eligible for grants not available to cities. It can also accept donations. The Ketchum Community Development Corporation's mission is to implement programs necessary to support downtown revitalization, create affordable housing, collaborate with other political and quasi-political entities, provide and support creation of retail space, among a myriad of other community-enhancement-specific goals.
"The CDC will work collaboratively with the city of Ketchum, Ketchum Urban Renewal Agency and other appropriate agencies to address Downtown Master Plan priorities," according to the group's mission statement.
CDC Executive Director Tom Hudson pointed out Tuesday via telephone from Moscow, Idaho, that the CDC is just getting off the ground and has only held two meetings thus far.
"Just this winter, we were able to get all our teams organized," he said. "So, we're just getting under way with our volunteer efforts to help with fund raising for these above-the-ground amenities."
The group's top priority right now, he said, is to go after funding and to ultimately become self-sufficient. But that could be some time, and Hudson said he informed the City Council last winter that it should be prepared to support the CDC for a period of years if necessary.
Of the nearly $1 million of city carryover, or general fund balance, $250,000 is slated for the Fourth Street Heritage Corridor and $200,000 is slated for Hudson. Hudson's contract includes a $175,000 salary, plus living and travel expenses. Additional expenses include URA and CDC start-up costs, as well as CDC year-to-date expenses.
"The reason we would do this fund balance analysis is, we're getting close to purchasing another piece of property; we're getting close to awarding bids for Fourth Street; and the council wants to know where we stand financially," LeBlanc said. "So this is just kind of a health check."
The general fund budget adjustment will not be official until the City Council hosts a budget hearing, LeBlanc said, and that has not yet been scheduled.
