City workshops LOT for general fund

BONNERS FERRY — The Bonners Ferry City Council plans to put a 1% local option tax on the ballot on taxable goods up to $1,000, before voters, but has yet to vote on the proposed tax. The LOT would be for a term of 10 years and would fund fire protection, roads, buildings, grounds, law enforcement and capital operation expenses for the three departments as well as property tax relief.

The council will have to vote on the final ballot language of the proposed LOT at an upcoming meeting.

The LOT is being proposed to cover an approximate $450,000 general fund budget shortfall, stemming from a 2017 Idaho Supreme Court case ruling against diverting enterprise funds to the general budget.

Since the 1950s, the city has transferred 5% of its gross sales in enterprise funds to the city general fund, excluding garbage.

Bonners Ferry officials have said the shortfall will be an ongoing one where the city will have to find ways to cover the general budget each year or make cuts equaling that amount.

Per Idaho Code the city has to offer property tax relief with a LOT. After workshopping, city council members thought the city residents would more likely vote for a LOT to fund fire protection, roads and law enforcement over other general fund departments, such as the golf course, the city pool or parks.

The city plans to have the ballot language finalized and delivered to the county by March 17 for the May 16 election. If approved, the tax would go into effect July 1.

City Administrator Lisa Ailport said the July date would give the city and businesses time to prepare the necessary paperwork and tracking of the tax.

Special City Council Meetings are any council meeting not at the regular scheduled time and are open to the public.