SpotBus seeks $146,000 as Sandpoint faces lodging‑tax shortfall; agency and staff weigh legal and footprint limits

Selkirk Pend Oreille Transit (SpotBus) told the Sandpoint Urban Renewal Agency on June 3 that it needs about $146,000 in local funding to maintain current service levels next year after projected lodging-tax losses tied to the demolition of the Best Western Edgewater.

Donna Griffith, SpotBus executive director, and board members outlined the system’s role in Sandpoint and Bonner/Boundary counties, saying the service logged roughly 63,000 rides annually and provides fixed‑route and federally required ADA paratransit service. Griffith said the system’s operating cost per fixed-route ride is about $2.72 and about $8.93 per paratransit ride. “Right now, a hundred and $46,000 would be amazing,” Griffith told commissioners when asked what SpotBus needed to maintain service.

Why it matters: Sandpoint’s lodging tax is a major local revenue source for SpotBus. Officials told the board the upcoming demolition of a large hotel could reduce local lodging tax receipts by an estimated $250,000–$350,000 during the period the property is offline (the presenters said the building might not be back online until spring 2028). City staff confirmed SpotBus is fully funded on federal and state grants through 2026, but that local matching dollars are at risk when one large lodging taxpayer leaves the tax roll.

Legal and policy questions dominated the agency’s discussion. Agency members and staff raised two constraints: (1) whether urban renewal funds may be used for operating subsidies to a private or nonprofit service provider and (2) geographic limits, since the agency can only spend within its urban renewal footprint. Staff and commissioners repeatedly asked the agency attorney and city legal counsel to determine whether funding SpotBus operations is allowable under Idaho urban renewal statutes and local ordinances; staff said capital investments (for stops, shelters or a transit center) may be easier to justify than ongoing operations because capital can be tied to defined public improvements within the district.

City staff described timing and fiscal constraints: SpotBus’s federal CARES and operating grants provide temporary coverage, but those funds are guaranteed only through federal schedules (staff said CARES-related operational funds are available through the 2025–26 year but could be at risk thereafter). Sandpoint staff said the city budget process is underway and the council will consider any SpotBus funding request at its June 18 meeting; staff also noted Idaho procurement rules may require competitive bidding for ongoing services above certain thresholds.

SpotBus and city representatives outlined consequences if local match is not found: one-third of current service could be cut, including reductions to hours and elimination of Sunday service in Sandpoint. SpotBus also asked the agency to consider capital match opportunities — benches, shelters, a transit center or lighting and accessibility improvements — which would require a 20% local match when applying for capital grants and would fall more squarely into urban renewal’s capital-improvement authorities if located inside the district footprint.

Outcome and next steps: The urban renewal board did not take a funding vote. Commissioners asked staff and legal counsel to research statutory permissibility, to model how any local allocation would be split by district footprint, and to report back; city councilors will separately consider SpotBus funding at the city’s June 18 meeting. SpotBus representatives said they will continue to pursue advertising, donated shelters, and other match sources while the city and agency evaluate options.