The city of Hailey may have to cut spending on police vehicles, park swings, sidewalk repairs and a circulator bus in the upcoming fiscal year due to an 18 percent drop in local-option tax revenue.
City Administrator Heather Dawson presented a draft of a $295,000 local-option tax budget to the City Council last week. The city spent $360,000 in local-option tax revenues in fiscal year 2008-09.
Local-option taxes are collected from a portion of sales receipts from alcohol, restaurants, car rentals and hotel beds in the city.
Dawson had hoped to add a $25,000 hybrid vehicle to the Police Department fleet, build $6,000 swings in Keefer and Echo Park, spend $14,000 repairing sidewalks on Bullion Street and pitch in $90,000 for a Mountain Rides circulator bus that was expected to go into operation in October.
Under the proposed budget, the city will forego those expenses and spend only $75,000 on the bus, which will likely not hit the streets until later in the year. The proposed budget also provides the Hailey Chamber of Commerce with $69,000, the Hailey Arts Commission and the Tree Committee with $1,500 each, Sustain Blaine with $3,000, and $6,000 for surveillance cameras.
"By spending local-option tax money with the Hailey chamber and other committees we can leverage it with the work of 50 unpaid volunteers," said Dawson.
A proposed budget for the city will be published and noticed for a public hearing on Aug. 10.
Tony Evans: tevans@mtexpress.com