The Ketchum City Council approved its tentative 2011 spending plan on Tuesday, foreseeing a 5 percent reduction from this year.
The $13.3 million budget is $693,000 less than this fiscal year's budget, which ends Sept. 30. One of the biggest changes is that certain departments, such as fire, are no longer under the general fund, but would be separated out. Ketchum City Administrator Gary Marks said the point of this is to avoid the "use it or lose it" mentality of these departments. Instead of unused money reverting back to the general fund at the end of the year and slipping out of departments' hands, it will stay in their own fund, promoting less spending instead of more.
Other key points include a 20 percent increase in local-option tax revenue from $1.4 million anticipated this fiscal year to $1.69 million in fiscal year 2011. Marks said it's better to overestimate and provide for the scenario of economic recovery. In addition, the city expects $105,000 in LOT due to River Run ski ticket sales being included for the first time. This is because nearly 140 acres of Sun Valley Resort land there have been annexed into the city for a base village, hotel and retail core.
The city also wants to increase the LOT rate for hotel and condo rentals from 2 to 3 percent to help fund Sun Valley Resort Area Marketing Inc. This is expected to bring in $56,000 for the year, but needs voter approval in November for the change to happen Jan. 1.
This money is only part of the $400,000 the city wants to contribute to the new marketing board out of the LOT fund. No money is proposed for the Sun Valley-Ketchum Chamber & Visitors Bureau.
Public hearings will be held before the final budget is approved.
Trevon Milliard: tmilliard@mtexpress.com
