01. Cover Page, Index, & City Manager LetterI x bLTAWA-1 Advilm a f4a 13 ra a
kVia-V NU W-04 W SM WO
FINAL
BUDGET DOCUMENT
FISCAL YEAR 2017-2018
CITY OF KALISPELL
FINAL BUDGET INDEX -FY2Ol8
CITY MANAGER BUDGET MESSAGE: ......................................................................................... i'xiii
EXHIBITS: ............................................................................................................................................
i—Z3
GENERAL FUND:
1000GENBRAL FUND REVENUE ANDBDINMARY------------------------.i—ii
l00OGENERAL FUND APPROPRIATION SDMNARY----------------------
bj-iv
400GENEBAJL GOVERNMENT --------------------------------------1
401ClTYMANAGER ...................................................................................................................................
2
4OlHUMAN RESOURCES ...........................................................................................................................
3
4U2CITY COUNCIL ......................................................................................................................................
4
402CITY CLERK ..........................................................................................................................................
5
4O3FINANCE ................................................................................................................................................
6
404C[TY ATTORNEY ..................................................................................................................................
7
406CITY COURT ..........................................................................................................................................
B
4l0PUBLIC WORKS ADMINISTRATION --------------------------------.9
412CITY FACILITIES MAINTENANCE ........................................................ ......................................... l0
413 POLICE ........................................................................................................................................
l\—l4
418 FIRE DEPARTMENT --------------------------------------..
15
420PLANNING & ZONING DEPARTMENT ------------------------_-----.l6
480 COMMUNITY DEVELOPMENT ----------------------------------..l7
SPECIAL REVENUE FUNDS:
PUBLIC SAFETY:
2230AMBULANCE ................................................................................................................................. l-2
2956FIRE GRANTS ...................................................................................................................................... 3
2057HAZMATGRANT ................................................................................................................................ 4
2399PUBLIC SAFETY IMPACT FEE FUND ......................................................................................... 5'6
Z9l5HOMELAND SECURITY STONEGARDEN GRANT ........................................................................ 7
2916DRDG ENFORCEMENT GRANT .......................................... —.......................................................... 0
Zg|@CHDRP GRANT ...................................................................................................... q
2919LAW ENFORCEMENT BLOCK GRANT ..................................................................................
\O-i}
23g4BUILDING CODE ENFORCEMENT -----..._—..------------------.l2—l3
PUBLIC WORKS:,
2400LIGDI MAINTENANCE ------------------...........—.—....~—''..—l4—l6
2420GAS
17-18
25UOSPECIAL STREET STREET DEPT. /SIGN & SIGNAL ............................ \g'24
2825 MACIGRANT ....................................................................................................................................
25
22lOPARK DN LIEU .................................................................................................................................... 26
ZZ15PARKS B]E VENUE AND FUND SUMMARY ................................................................................... Z7
430PA0KS MAINTENANCE ---------_.------------.--._-------_-28-29
440ATHLETIC COMPLEX ...................................................................................................................... 3u
431 RECREATION PROGRAMS ..............................................................................................................
3I
44QYOUTH CAMPS .................................................................................................................................
32
445AQUATIC FACILITY .........................................................................................................................
33
2600ORBAN FORE STDY lDEVELOPER TFUB£S..................................................
34-35
COMMUNITY DEVELOPMENT:
2880 COMMUNITY DEVELOPMENT LOAN REVOLVING ..................................................................
36
2881 COMMUNITY DEVELOPMENT LOAN REVOLVING #2.............................................................
37
2086 COMMUNITY DEVELOPMENT MISCELLANEOUS --------------------.3O'39
2887'ROFlAL DEVELOPMENT GRANT ............................. .....................................................................
4O
2880BOR-ALDEVELOPMENT GRANT #2..............................................................................................
4l
2y44CDBGFAIRGROUNDS ADA GRANT ........................................................................
42
2953EPA BROWNPUBLDS ASSESSMENT GRANT ..............................................................
u
2955EPA BRDWNFiE[DS RWVOLVING LOAN FlND........................................................................ *4
299lTIGER GRANT ..................................................................................................
.. 45
2994KlDSPORTGRANT. --------------....--..'------------.�o
47 48
2188TAXDDE.................................................................................................. 4y-5U
23lOOLD SCHOOL STATION TECHNOLOGY 7lF................................................................................ 5l
231iOLD SCHOOL STATION INDUSTRIAL TlF................................................................................... 52
DEBT SERVICE FUNDS:
CAPITAL PROJECT FUNDS:
4290SD]BWALK AND CURB CONSTRUCTION -----------------------------2
4l50FIRE PUMPER ....................................................................................................... 3
ENTERPRISE FUNDS:
5180AlBPQDT OPERATIONS -------------------------------------.l'2
52l0WATER OPERATIONS/BILLING ............................................................................................... 3-9
53lOSEWER OPERATIONS/BILL[NG............................................................................................. l0'l6
5310 WASTEWATER TREATMENT PLANT ................................................................................... l7-2i
5349STORM SEWER .......................................................................................................................... 22-26
INTERNAL SERVICE FUNDS:
80l0CENTRAL GARAGE ................................................................................................................... 1-3
6030 INFORMATION TECHNOLOGY ----------_--------------------.. 4-6
COMPONENT UNITS:
7855TOURISM BUSINESS IMPROVEMENT DISTRICT .................................................................. I'22
2700BUSDNESS IMPROVEMENT DISTRICT ...................................................................................
FIVE YEAR CAPITAL IMPROVEMENT PLAN:
GENERAL FUND, AMBULANCE, BUILDING, &cSPECIAL STREET MAINTENANCE -------.l
PARKS, FORESTRY, AIRPORT, & WATER ............................................................................................... 2
SEWER, WASTE WATER TREATMENT PLANT, STORM &cSOLID WASTE ....................................... 3
Ci'sty
Kalibspell
of
OFFICE OF THE CITY
MANAGER
201 First Avenue East
Kalispell, MT59903
April 25, 2017
Honorable Mayor Mark Johnson
Members ofthe Kalispell City Council
P[)Box 1QQ7
Kalispell, N4T5Q9O3
Ladies and Gentlemen,
It is my pleasure to submit for your consideration, the Fiscal Year 2018proposed budget for all
municipal operations. This letter isintended to serve aathe budget message for this proposal,
and outlines the nature of the approximate $80'000,000 budget plan for the coming year. This
budge[` similar to last year's, represents the financial impact Of significant infrastructure projects,
including the Westside Interceptor, the 4m Ave East neoonstnuotion, and the CORE Area
Redevelopment. This message is not intended to identify all the specifics of the budget
document, but rather provide an overview of the revenues and expenditures, fund levels, unique
attributes impacting the budget, and significant budget related activities of the organization.
Moreover, as changes will be implemented between the preliminary budget and final budget
adoption, numbers in this document may be different than the numbers in the budget document
The annual budget development demonstrates the interaction between policy establishment and
administrative implementation. Over the past few yeana, we have seen this documented
through service level establishment in the areas of light nnaintenonoe, street maintenance, (avv
enforcement, EMS aen/icos, building department services, etc. This year, that policy
development process continues as we discuss forestry and storrnvveta[ along with revisiting
EMS. It is the creation of these policy level expectations that the budget comes to life for a
oonnnnunih/ The services that are presented with numbers and words in a budget become part
of the daily activity throughout the community as implementation 000urs, further representing
the importance ofthe budget creation process.
Combined with last year's efhorts, we are seeing an emphasis on infrastructure as guiding the
process for budget development. Council has diligently addressed these areas throughout
Kalispell to not only manage the current state of infrastructure needs, but also preparing for the
future with the anticipated growth. |naddition toinfrastructure, Council has also focused onthe
quality of life demands for our oomnrnunity, addressing anasm with the CORE Area
redevo/opmnent, improvements in parks, and responding to |avv enforcement demands in the
community. Abe|ance in these areas continues with this year's budget as we move into work
sessions trying to refine the specific service levels to provide in the community, while at the
same time, knowing that resources are limited and need to be appropriately distributed. Though
this is a one-year budget, it does not exist in G Va0JUrO and is presented with the |DDg range
destination inmind.
|ampleased to present the FY18proposed budget and am comfortable in the recommended
appropriations, the expected service levels resulting from this funding distribution, and the
efforts to adjust service levels and delivery methodologies to the community we are serving.
ACCOMPLISHMENTS .N2016 AND 2017
As the FY18 budget is proposed, it is appropriate to return to recent municipal
accomplishments. While the listed items are only sample ofthe improvements and respective
accomplishments, they do represent a concerted effort across departments for the improvement
Of services being offered by the City of Kalispell, and in some cases dictate the projects that we
will beundertaking inFY18.
During last year 'sbudget, weincreased resources for the parks and recreation budget,
including adding additional FTE for Kidsports that will aid in maintenance of the facility
and alleviate staffing pressure for the overall department during early spring and late fall
when staff were previously pulled from normal duties to aid in the Youth Complex startup
operations. Additionally, the enhanced funding provided opportunities to initiate system
improvements with capital replacement and bathroom improvements.
�While not initially budgeted, Council took action to convert a portion of Begg Park to an
off -leash dog park. This project was initiated through the adoption of the South Kalispell
Urban Renewal Plan Update as it was initially proposed to be constructed with T|F
funds. After deliberations, however, Council elected touse unappropriated fundsinthe
Park's budget to make the improvements, along with a $10,000 contribution from Paws
to Play. The facility should be open during the summer of 2017.
�Following the approval ofeResolution ofIntention for the construction of the West Side
Interceptor, we began the process of land and easement acquisition for the
route for this major infrastructure improvement. As design work has progroased,
amendments tothe initial route have altered and are continuing tobe amended based
upon the challenges ofdesigning such along sewer line through numerous
topographical conditions and geological formations. The project )sotiUonechedu!eto
begin construction in2O18.
�Many resources have been dedicated to the implementation of the CORE area
redevelopment. Progress over the past year has included completing enegotiation with
Northwest Drywall on a relocation plan for their respective business, submission of the
environmental assessment to the Federal Rail Administration (which is anticipated to be
approved within the next few months), the submission of the request by the railroad to
abandon the line, and the initiation of negotiations with the railroad to acquire the
easement along the current line so it can be developed into the trail once the tracks are
removed. There have been significant challenges to overcome to get to this point in the
project as it includes many stakeholders, agencies, and funding avenues. The
continued efforts of staff, the council, our partners, and the community in general will
play important roles in completing this project. The construction of Glacier Rail Park is
anticipated to start this summer, pending the receipt of acceptable bids and the award of
the construction contract.
Council has recently awarded the construction contract for the Kidsports project that will
provide the infrastructure to for the creation of additional multi -purpose fields.
In response to the growth of the construction industry in the City of Kalispell, Council
approved additional staffing in the Building Department in last year's budget. This
decision has been a valuable addition to maintain pace with amount of plan review and
inspection activities the department has been facing. This is anticipated to continue, as
will be identified later in the transmittal letter.
In addition to staffing in the Building Department, Council also increased staffing within
the police department, including the addition of a K9 officer, Cairo, and his respective
handler. Cairo has been authorized to begin work for the department and is being used
in both drug detection and community outreach.
Last fall, the Alternate Highway/Bypass and Four Mile Drive opened to the public,
completing a long-standing effort to improve traffic patterns in the City.
Council adopted an update of the South Kalispell Urban Renewal Plan that outlined the
options for long term use of the airport and potential projects in South Kalispell. This
action has led to discussions with a user's group regarding potential privatization of
airport operation and maintenance responsibilities. These discussions have been
progressing and the issue is anticipated to come before Council during the upcoming
summer.
The city completed an organization wide -leadership training program. This six -module
program focused on leadership, communication, and conflict resolution.
The council participated in an annual outreach effort in Washington, D.C., with elected
representatives and Federal Agencies related to the TIGER Grant and CORE area
redevelopment.
The city is working with the State of Montana on the long-term use of Highway 93
through Downtown Kalispell, including traffic configuration around the County
Courthouse Couplet. Discussions and the formation of a steering committee are
anticipated to begin later this year.
This past legislative session, the City Council elected to join the Montana Infrastructure
Coalition to aid in the implementation of our respective legislative priorities. Progress
was made in a couple of areas, including hearings in the Senate and House on a local
option sales tax. Additionally, at the time of this writing, it appears that a bill will pass
that raises the gas tax by 0.045 cents. Kalispell could see up to $300,000-$500,000 a
year for road projects, pending final bill language.
PROPOSED FY1 8 BUDGET AT A GLANCE
Major highlights and conditions of the proposed FY 18 budget include the following:
The proposed FY1 8 budget is based on service levels needed to accomplish the goals
outlined in the budget for each department, balanced with available resources.
Property tax is the primary source of revenue for the general fund. It is limited to
increases through growth and the allowable inflationary index as identified in state
statutes. Projecting property taxes is a difficult assumption to make as final valuations
are not released until August. Reviewing new additions to county records, however, we
feel comfortable with the forecast applied to the revenue projections.
Based on the growth projections and the inflationary adjustment, we will still remain
approximately 4.5mills below the property tax cap (pending mill levy valuation). To
accomplish this, we will be using some of the cash carryover from FY17to cover the
proposed expenses for FY18. While this would not be a sustainable process, there are
long term adjustments that can rnUige1e that condition in the future. As we are nearing
the 2O96reserve fund inour adopted policy (18.5%).vveare comfortable moving forward
knowing we have additional taxing authority if needed in addition to service level
adjustments.
We have taken efforts to streamline the budget presentation over the past few years,
and have been making respective adjustments eanecessary. For this year, we have
inserted images of respective capital projects into the budget document. Ideally, this will
help facilitate the budget review process. During the budget semmionm, we will be
soliciting council feedback to identify if this is a practice worth continuing.
Public Works is currently soliciting bids for the 4thAvenueEast that will be constructed
throughout the end of FY17 and into FY18. This includes water -line and road
replacement. There are 14 blocks that are part of the overall project. This project has
been placed into this year's budget and is broken out as expenditures into the
appropriate funds. As part of the project, transportation will return to travel on
31d and 4mAvenueo. as has been identified in the transportation plan and has been
reaffirmed with discussion at the council level in preparation for the project.
z= For the past two years, we have appropriated funding for a redesign of the municipal
website.Our efforts over these past two years have been to make improvements in
online billing areas, including building permits. EMS billing, and on -site credit card
access. This has delayed m full effort to move forward with the website redesign, though
it is on important step for our communication platform with the community and is again
included inthis year's proposed budget.
v~ As identified earlier, the construction of the Glacier Rail Ped« is anticipated to begin this
ournmnec Assuch, vveanticipate activity inthe fund created specifically for this project.
x~ Anew fund has been created totrack expenditures for the recently adopted Downtown
Business Improvement District. The original district will continue with expenditures for
that district and work plan being associated with that respective fund. All new revenues
and expenditures will beidentified inthe new fund.
»~ The Community Development special revenue fund is projected to continue paying the
annual assessments on the parcels otOld School Station. This is offset partially by
receipt offunds inthe respective tax increment fund. Any change within the ownership
of these lots will change the actual budgeted amounts. All 6 of the parcels are on the
multiple listing service and readily available for sale.
z~ Last year, the budget appropriated funding to the parks department in an effort to
account for the impact of the rni|| levy value not being a consistent standard when
compared to overall growth. This approach has been used again this year to provide
attention to the overall operation of the parks department. This year's proposed
improvements include:
o Irrigation improvements inNorthridge Park,
o Playground improvements inThompson Park, and
• Trail development design work for Highway 83 (though grant funding for this is
iv
�Activity in the Building Department continues toincrease. With large building projects
submitted this past year, we are estimating our building permit revenue increasing by
about $300,000. We project similar permit applications for FY17. As such, the
department will continue to face an increase in aon'\ms delivery expectations. To
account for this increase we are looking at increasing staffing with an additional
inspector and increased hours for support staff. These positions are explained more in-
depth below inthe full-time equivalencies subsection.
>. Full-time equivalencies:
o We are proposing: i) on increase for front desk support by
8.4FTEinthe Building Department to make the current O.8FTEofull REin
front desk support. 2)Anew full time FTE is being proposed for the Building
Department as an inspector. The current and anticipated commercial projects
support adding this position to provide the necessary service delivery for review
ofplans and inspection services. The addition ofthe personnel within this fund ia
supported entirely by its revenues and is forecasted to be able to support the
increased personnel through anticipated succession planning should revenues at
some point in the future drop below sustaining levels for the fund.
o For FY18. Flathead Valley Community College has
approached the City with e request for, an arrangement similar to 8dloo| District
5. This program splits the cost of an additional officer to serve as e School
Resource Officer. In discussion with FVCC' they envision the position to be
similar to the school program in that they would have an officer available to
provide educational progrerning, interact with students and foouKu and provide
support oaneeded for the college. The benefits ofthis program isthat itadds an
additional officer to the department that can be used to support the mission of the
department while being predominately funded bvour partner. |nthis case, FVCC
would provide 7596 ofthe funding and the City would provide 2596 of the funding.
We would have full access to the officer' etime during the aurnrner months and
when support would beneeded throughout the school year.
o During evvorhseooionwith council, the stormvveterfund
was revkevved, including the demands being placed on the department by the
most recently approved MB4permit. Atthe vvorhaesoion.guidance was provided
to move forward with more refined levels of service based upon e potential
phased increase inrates, This effort isongoing and will bepresented during the
budget approval process. However, that final approach to the potential rate
increase will determine how the FY17 budget will look. Henoe, the presented
budget is presented as though there is no increase in staffing or rates. We do
anticipate this to change by the time the final budget is presented in August as
options will be presented to council for a rote increase that will a||ovv for a 1.0
FTEincreooe.
o Similar to the otornnvvatmr fund, a
worksession was held with Council to review the status of the service delivery
and toreceive guidance moving forward. Council requested that staff bring back
options for addressing the backlog of pruning, tree and stump rernova|, and to
provide funding for maintenance operations moving forward. Like etornlw/ater,
this information is currently being prepared and will be presented to Council prior
10the presentation ofthe final budget. Aewas stated during the vvorksesoion.vve
anticipate this will include the addition of 1.0 FTE for the ongoing maintenance
operation. Pending direction that is taken related to this activity, the final budget
M
numbers will likely be changed as the number presented in this preliminary
budget represent moving forward with current staffing and service delivery levels.
�While enaddition ofonFTEionot included inthe proposed budget, caseload demands
in the prosecutor's office are reaching o point vvhana consideration of an additional
prosecutor is warranted. A review of other 1st c|oaa cities reveals the caseload per
prosecutor ratio osidentified inthe following table. Aacan beseen, vvehave the highest
caseload per prosecutor and the second highest 000e|oed per prosecutor for non -traffic
offenses. Currently, the adjunct attorney and city attorney are filing in where needed and
as time o||ovvs. Should final valuation numbers for property taxes increase from
projections, the final budget will likely have onaddition tothe ottorney'aoffice. This may
be with either full ernp|oyee, or possibly a contracted addition to the office.
Non- Ratio of Cases filed Ratio of
No. of traffic masestm :e~2015 cosestm
Prosecutors offenses Prosecutor MCUstits Prosecutor
BUNnoo 4 51830 1/458, 14,788 31697
Bozeman 4 21039 510 7/4,32 1]&58
Bufte-SilverBow° 5 2t254 451 57147 1/028
Great Falls 2.25 25230 991 8/467 47208
Helena 2 21240 1,120 6275 3.138
Kalispell 1 1.548 11548 51212 51212
Missoula S 91585 11817 18,280 37856
,~ Lest year's budget had two officers included as part of grant funding program. These
costs were offset by increases in the cash designated for capital. The grant application
was not successful. However, council elected to fund two offices with general fund
monies halfway through the year. Thus, the amount designated for capital for FY17 was
|oaa than the adopted budget identified. For FY18. the amount designated for capital is
represented by the amount that would be needed to fund the one officer we currently
have that is funded by o grant. When the grant funding expireo, the amount of funding
going to capital will deonaeoo to cover the ongoing personnel costs. Thuo, we are ob|a
to provide a mechanism to build capital funds in the general fund, and also have funding
available for when our grant funded officer becomes the oo|o responsibility of the City of
Kalispell, halfway through FY19.
�Inaddition to the funding designated for capital identified above, council may want to
have the discussion about increasing the mill levy specifically to increase capital funds
for future development projects associated with the Core Redevelopment project. While
costs have been identified to complete the project, wehave seen variables emerge that
have required fine tuning this plan. These variable have ino|uded, but are not limited to,
property tax assessment that drastically reduced Tax Increment in the West SideT>F,
changes in valuation of Centrally Assessed properbes, on enhanced environmental
assessment required by the Federal Rail Adrniniatration, and negotiations between
parties involved in the project. Any funds that would be applied to capital would likely
allow for reduced bonding in the capacity of the West Side TIF.
�Last year, Council adopted anew rate schedule for Emergency Medical Services. This
increase was projected to increase rates to a|evel that would provide self-sufficiency for
v/
the operation. Unfortunately, actual revenues realized were significantly less. We had
fevver/\L8 and BLS calls than were projected from last year's numbers and the payer
mix increased from 6596 of the billing being provided by subsidy program that only
pays apre-determined amount to8096ofthe payer mix. Aasuch, the transfer from the
general fund for this year's budget is increased from the last year's amount of $150,000
toapproximately $35O,OOO. This ieclose the FY1Gbudget transfer of$38O.00O. This is
an area that will be discussed, later inthis transmittal letter and during upcoming budget
sessions. In response to the lower than expected receipts, staffing has been reduced to
6 personnel, rather than bringing in a seventh person on overtime in situations where we
previously oe||ed in the additional responder. Additionally, there is no, capital in this
year's preliminary budget, though we had o projected $130.000 initially set to replace
cardiac monitors.
�Last year's budget identified the need to review funding for two different areas of service
for ootando| rate increases. Reoently, stornlvvoter assessments and forestry
assessments have been reviewed with council eapart oftheir respective level of service.
At these prmsentotions, council identified levels of service and requested rate
assessment options toreach those potential levels. These two areas will continue tobe
reviewed during the budget approval process, leading up to the final budget adoption in
August. Any increase in rates will be required to go through the prescribed notification
process as defined in state statutes. As such, both funds are presented onthough there
is no rate inonsoae, but are expected to change as the process ooniinues, including
potential increases in staffing, as identified in a following section of this transmittal letter.
Additionally, we are proposing a rate analysis as part of the updated facilities plan being
proposed for utilities (Council had o previous worksession on the need for updating the
facilities plan prompted by development that is taxing water delivery capacities). This
rate increase was also identified as pad of the agreement with Evergreen Sewer District
as a way to accurately identify separation of costs and charges between the two utilities.
�The inclusion of the 5-yearCapital Improvement Plan outlines expected timeframes for
equipment replacement and capital projects. This schedule helps to forecast the needs
ofthe departments and outlines projects thetarebeingp|ennedinfuKureyeers. ThaC|P
is updated on an annual basis with some projects being adjusted on the timeline and
some equipment being deferred, based upon priorities and available resources.
»~ For the fifth year in a row, we are receiving a credit from MML4for |iebi|dv insurance.
This credit has been applied as a decreased expense. However, the credit is not
projected to be as large as the previous year. Thus, it appears that liability costs have
increased. It is, however, indicative of a snmo|kar nebote, though it does limit the
resources vvehave toapply toother areas.
»~ Health insurance costs from W1M|Aene projected to increase 1.896 for next year. Last
year's increase was approximately 7.3%.We have been fortunate tonot have
experienced the larger increases that have been present inthe insurance industry.
vii
GENERAL FUND REVENUE
PROPERTYTAX
Property tax is the primary revenue source within the general fund. As we do not receive final
property valuations for the current year until the first week in August, we are required to forecast
revenues with incomplete information. For FY18, we anticipate the valuation to increase in
conjunction with last year's growth of taxable property. Below is the graphic representation of
our revenues by their respective sources.
General Fund Revenues by Percentage
General Fund Revenue By Type FY18
Fines and
Forfeitures
4%
Charges for
Services
9%
Permits
1 %
Miscellaneous
A O/n
Investment
Revenue
0%
PropertyTaxes
53%
GENERAL FUND EXPENDITURES
Expenditures in the General Fund are budgeted at $11,405,247. This is a 4.8% increase from
the total expenditures adopted in the FY17 budget. Expenditure categories are broken down in
the chart below.
Breakdown of General Fund Expenditures by Percentage
General Fund Expenditures by Type FY18
Capital
2%
Services and Debt Service
Supplies 0%
21%
Personal
Services
77%
ix
SPENDING LEVELS BY DEPARTMENT
The following table provides a comparison of general fund departmental expenditures from
FY17 to FY18. The table is included to demonstrate the funding levels for respective activity in
this year's recommended budget as cornparedto the previous year. Changes may be indicative
of large capital items, significant additions to departmental responsibilities, or other changes in
operation and maintenance costs.
TaNe 1. Comparison Increase from Prior Year- General Fund Departments
FY2017
Adopted
General v-und Departments Budget
City Manager
Human Resources
Mayor/Council
City Clerk
Finance
Attorney
Municipal Court
Public Works
City Hall
Police
Fire
Planning Department
Community Development
$1897750
$168 9 445
$147,610
$124,876
$279,316
$470, 722 ,
$362,869
$391711
$3072050
$4y728?647
$2y670y356
$3711258
$85,873
X
$193y 333
$172) 099
$156;113
$127,704
$284)064
$4.77y875
$368,158
$48, 702
$290,903
$5p0 1 1616
$2y 98381 5
$3787095
$881263
% change
1.89%
2.17%
5.76%
2.26%
1.70%
1.52%
1.46%
2 2 . 64%
- 5.26%
7.25%
8.56%
1.84%
2.78%
SPEOAL RIEVENUE AND ENTERPRISE FUND FREVENUES, EXPENOTURES, AND
BALANCES
Below is a table of the Special Revenue and Enterprise Funds, with their related revenues,
expenditures, and fund balances. Those funds in bold are addressed in the narrative following
the table.
Table 2. Revenues, Expenditures, and Fund Balances in Special Revenue and Enterprise
Funds
Revenues Expenditures
SPECIAL REVENUE FUNDS
Parks
$1,733,396
Forestry
$2779200
Ambulance
1$12210�000
Building Department
$1,350,000
Light Maintenance
$392,800
Gas Tax
$415,804
Street Maintenance$3,612,602
ENTERPRISE FUNDS
I Airport Operations
I
Water
Sewer
Storm Sewer
Solid Waste
$789974
$5,615,796
$13,26$,808
$ 1 Y370)236
$1,010,i00
Xi
$119A805
$348� 55
1$1 152211
$925)500
$473,7225
$605i630
$4Y 178,068
1$689411
$8,502,b4g
$17,870,822
$2y479y885
1$112171488
Ba(ance
$392,293
$42PO41
$229799
$1,i31,208
$17Q,413
$346,028
$1,552,061
$79317
$6.96987644
$7Y184,875
$2Y315q442
$lY032)294.
FORESTRY
As identified previously, the Forestry Division of the Parks Department has been brought before
Council for service delivery review. Options will be brought forward for further review related to
completing the current backlog of pruning and removals and to address maintenance into the
future. This service delivery level will be paired with options related to assessments and current
resources, along with division of labor between contract work and FTE's.
Similar to Forestry, the Storm Water fund has been brought to Council for review and long term
operational sustainability needs. Council has identified a preferred service level and will be
receiving options related to the assessments, implementation scheduling, and notification. Both
Forestry and Storm Water will be brought forward prior to final budget consideration.
AMBULANCE
In previous years, council has initiated attempts to reduce the transfer from the general fund to
the EMS fund (which is a special revenue fund as it receives a majority of its funds from user
fees). Discussions have included staffing levels, rate structures, privatization, dedicated mill
levies, etc. There was a previous attempt at a dedicated mill levy and a rate increase this past
year. The rate increase, as identified earlier in the budget letter, failed to generate the projected
revenues due to a higher concentration of subsidized payers that limit reimbursements, and a
decrease in call volumes for ALS and BLS type calls. It is not anticipated that an additional rate
increase under the same circumstances would generate the revenue to address this transfer
amount. This area will be discussed with Council during the upcoming budget session to
identify the next steps related to this area of service delivery and the challenge of providing
resources to the operation.
AIRPORT
Council has been reviewing the airport since the vote for expansion was overturned through a
voter referendum. As part of deciding what would happen long-term, council updated the South
Kalispell Urban Renewal Plan this past year. During discussions on options available for the
airport, a group of users came forward, requesting Council consider turning over maintenance
and operation responsibility to the user group. These discussions have been progressing to the
decision making point. It is anticipated that this could come before council prior to the final
budget.
PERSONNEL COMPENSATION AND BENEFITS
Over the past five years, we have strived to produce compensation decisions that provide equity
across the organization, Attempting to spread this equity to the non -represented employees of
the City of Kalispell, we have previously averaged the total compensation (step plus base
adjustment) increases for the three labor unions to apply that amount to the non -represented
employees. For the upcoming year, we have been able to create parity across the labor units
and apply that to the non -represented employees as well. This provides a total compensation
increase of 2.8%.
W
Salary Increase for Respective Labor Groups
(Overall Increase- Inclusive of Base Adjustment, Longevity, Merit, etc.)
Police Contract Fire Contract i AFSCME Contract Non -Union
2.8% 2.55% 3.18% 2.8% 2.55% NA 2.8% NA 'NA 2.8% NA NA
Health care increases for MMLAare projected to increase 1.8%for FY18for the City OfKalispell.
This increase is shared between the city and the employees, depending upon the respective
employee plan. Two years ago. the increase was 5.396. Last year the increase was 7.396.
Overall, our average for the three years is 4.896. In an effort to maintain lower rates, yWM|A
continues to encourage employees to participate in their wellness program activities, which are
designed to identify preventive illnesses and avoid long-term cost exposures.
CONCLUSION
The proposed budget was developed and is recommended asonappropriate use of the
resources available to the City. This year's budget represents some large projects that will likely
have a significant impact on future development and quality of life, including; the V\estside
Interceptor, 4thAvenue.and the Glacier Rail Park. Additionally, this past year's construction has
been signdioant, as evident bvthe results seen in the Building Department. However, much of
that construction has been with tax-exempt institutions. Though we anticipate this growth
driving other sectors of the oornnnunity, there isn't the tax value growth that correlates with the
increased construction. This circumstance creates a unique impact with the presentation of an
annual budget. While there is o desire to increase sen/ices, the funding sources and levels
require a cautious approach to forecasting in order to prevent building an unsustainable
capacity. Hence, while we present the preliminary budget for FY18, our eyes are already on
FY1Q.
In conclusion, | believe the preliminary budget preparations one o demonstration of the efforts of
the employees of the City of Kalispell in striving for an improved community through their
collective efforts. Furthermore, the direction provided by the City Council has been effective in
outlining areas of focus for service delivery in the community. Finance Director, Rick Wills, has
done an exceptional job in continuing to provide incremental changes to improve budget
presentation, fiscal suotoinabi|ityand financial oversight. The collective goal ofall involved has
been to create the mechanism from which municipal services are delivered to the residents of
the City of Kalispell. With these acknowledgements, | present the proposed FY18 budget.
Reaoeotfu|ky,
Dougias R. Russell
City Manager
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