Facing decreased revenues, the Ketchum City Council began its budget deliberations this week, with meetings Monday through Thursday to go over preliminary 2008-09 figures.
Together with City Treasurer Sandra Cady and Mayor Randy Hall, interim City Administrator Jim Jaquet put together projections for the coming fiscal year, which put the city's overall revenue at $9,380,018.
That represents a nearly 5 percent decrease from the budget set out for the current 2007-08 fiscal year, which runs from Oct. 1 through Sept. 30.
This budget is only slightly more than the current projection for this year's revenues, which amount to $9,823,311, as compared to the $9,855,177 originally set out in the approved budget.
Some of the most significant factors in the anticipated decrease in revenue include hotel development fees, which went from $519,791 projected for this year to zero in the coming year, as no new hotel applications are expected.
As well, building permit revenue for next year is projected at $280,000, over $100,000 less than this year's approved budget. After nine months of receipts, the city has brought in only $177,932 from building permits, a noticeable and unanticipated slowdown in construction.
In addition, Idaho State Share Revenue is likely to be down by almost $100,000.
Jaquet said the projected fund balance at the end of this fiscal year would be $774,683, down from just under $1 million, meaning that the city's expenditures would have outstripped revenue by $216,248, an event that Jaquet said this spring was possible.
Jaquet said the fund balance is used to "keep the ship afloat" while awaiting the receipt of property taxes.
Jaquet said money for capital improvement projects would only be spent as revenue comes in from impact fees.
While $350,000 remains from the $1 million loan to the Urban Renewal Agency from former Councilman Steve Shafran, Councilman Baird Gourlay said he has heard concerns about using the money for work on the Fourth Street Heritage Corridor, as it has been for the past two summers, as it is disruptive to nearby businesses.
The council will hear proposals for contracts for services, including those for Ketchum Community Development Corp., Mountain Rides and the Sun Valley-Ketchum Chamber & Visitors Bureau, today, with the public meeting starting at noon.
The council will wrap up its budget discussion on Thursday, the meeting also at noon, with budget finalization set for Aug. 21.
