Idaho Supreme Court decision impacts city’s general fund

BONNERS FERRY — Since 1953, the city of Bonners Ferry has partially supported the financial needs of the general fund with contributions from the electric, water and sewer departments. The general fund is supported primarily by tax dollars to assist in the operation of the police department, fire department, street department, city pool, and other services not directly connected to the city utilities.

The balance of the financial needs for the general fund was filled by the transfer of funds from the city’s utilities. This was an accepted method of operation until a recent Idaho Supreme Court decision negated the option of the general fund transfer — resulting in a $450,000 shortfall in the 2023 budget for the general fund. The city is now faced with the current fiscal year dilemma as well as future years.

The City Council and staff have been working internally on a solution to the shortfall since learning of the Supreme Court decision. Long-term solutions all involve some type of tax increase or a cut in services — none of which met with overwhelming approval. In short, there are a lot of unanswered questions. The city will continue to analyze its best options for the future and what it holds for its citizens. We do encourage citizen feedback and participation, and it is likely that the city will request residents to work with the city for the best solution.