Hayden budget beefs up public safety

Months of discussion between the Kootenai County Sheriff's Office and Hayden officials have led to an anticipated budget increase for public safety — though it's not the $500,000 boost the sheriff requested.

Final approval of the city's $39.5 million budget won't occur until later this month, but line items are tentatively defined ahead of the council vote.

The council will consider several increases for the 2022 fiscal year, including a nearly $80,000 bump for contracted sheriff's office services.

Since taking office, Sheriff Bob Norris has stated several times that the Hayden public safety business plan is unsustainable.

"We believe the city of Hayden needs a lot more deputies to address the current population and growing population in the future," Norris said.

During a council meeting Tuesday, Hayden City Administrator Brett Boyer said the city hopes to allocate $402,354 for contracted KCSO deputies — up from $323,353 in the current fiscal year.

"They had requested an increase to half a million, and we said we couldn't do all of that this year," Boyer said.

Hayden receives one seasonal and three full-time patrol officers as part of the agreement. However, Norris says the city needs more officers and a higher budget to pay for them.

"Right now, we spent about $1.2 million servicing the city of Hayden," Norris told The Press. "We want to address those deficiencies, and we're doing that with the mayor and city manager."

Hayden must increase public safety spending to about $1.8 million and add approximately 12 deputies to provide the level of service the sheriff says is necessary. Norris said the $80,000 won't change contracted services but will offset costs KCSO accumulates by patrolling the city.

"I'm very encouraged by the progress that Mayor [Steve] Griffitts and I are making when it comes to law enforcement in the city of Hayden," Norris said.

Boyer said a new draft contract for KCSO services was delivered to the city this past week, and officials plan to implement the agreement by Oct. 1. As the partnership continues, Boyer said officials are considering reconvening the city’s safety committee to brainstorm means for more funding.

Law enforcement expenses aren't the only notable feature of Hayden's budget, which could grow by about $13.2 million in the 2022 fiscal year.

Boyer and Finance Director Sandy Rudy explained that much of the increase comes from state tax revenue, unused 2021 dollars, and $3.2 million in American Rescue Plan Act (ARPA) funding. State grants including $180,000 for transportation are especially helpful and will be used for road improvement, Boyer said.

"When you look at the general fund and take out the ARPA money, it's less than a million-dollar increase," he said.

While the city is considering taking the 3% property tax increase permitted under Idaho Code, Boyer said it adds about $50,000 to overall revenue. When combined with new construction, the city's overall levied amount grew by approximately $86,000 for the next fiscal year.

Councilman Matt Roetter said what most stuck out to him was the year-over-year gain in sewer capitalization dollars. Noting a one-page document summarizing the budget available online, Roetter pointed out that since FY2020, sewer capitalization revenue has climbed from $1.2 million to $13 million.

Sewer fees have increased in recent years, Rudy said, but not enough to keep up with the growth. Boyer explained that ARPA funding and rollover dollars contributed to the sewer capitalization fund.

"We haven't spent all of the (revenue), so it carries over each year and increases until we do a major project, which is usually in the million-dollar range," he said.

A pending increase for Hayden sewer rates, based on financial consultant projections, offers the opportunity for comment during an Aug. 24 public hearing. According to the document, residential properties will increase monthly rates from $52.50 in 2021 to $58 in 2024.

Boyer explained that revenue from the increase will largely finance the city’s $9.5 million share of the U.S. Environmental Protection Agency’s mandated upgrades to the sewer treatment plant to meet water quality standards.

A small portion, Boyer noted, will repay $1.4 million in defense costs from the North Idaho Builders & Contractors Association lawsuit over sewer capitalization fees.

"The EPA telling us what we have to do is a big expense of that $3 million, and we paid just over $1 million for that lawsuit," Roetter said.