1. 2009/2010 BudgetCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
July 23, 2009
TO: Mayor & City Council /' /
FRM: Interim City Manager '4/4 ./ZA
Re: Workshop 27 July- Westside TIF
The council will have some interesting and important decisions regarding the WestSide TIF. As
you know this TIF district will expire at the end of FY2010. Whatever funds are in the district
accounts will be distributed to all the taxing entities associated with the area. The city's portion is
about 25%.
There are other options and two of those options will discussed during this workshop. Of course
any TIF funds used for a public improvement project will mean less going to the general fund
when the TIF district ends.
TIF districts are formed to encourage development which will grow the local economy, create
good jobs, and expand the tax base. In this the Westside TIF has been successful. There are three
basic questions I think you should ask yourself when considering the use of TIF funds:
• Does the business activity asking for the funds acquire its revenue from outside MT? An
economy will only grow if it is successful in acquiring revenue from outside its own
economic region.
• How many good jobs will the activity create or retain? A good job by definition makes at
least $15/hour which can include the worth of benefits. Anything less than $15/hour will
be a drag on the economy rather than a stimulus. The creation of good jobs means the
revenue coming into the activity is being equitably distributed to the economy thru wages
and benefits to its members.
• Does the project improve or preserve the tax base? Business improvements that involve
both structures and equipment pay taxes on both. Tax revenue from business activity
usually exceeds the cost of public services.
The more income a business project acquires from outside the state, the more good jobs
it creates/retains, and the more it improves/preserves the tax base, the more deserving it is of
public support.
7
7y
KllfiffiffiL
A ONTANA
Date: July 23, 2009
To: Mayor Kennedy & Council Members
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
From: Amy Robertson, Finance Director
Myrt Webb, Interim City Manager 4�
RE: 2010 Preliminary Budget update
We have provided a lot of information which we will try to walk thru in an orderly fashion.
Replacement pages for budgets with major changes have been put in your box to replace in
your budget books. These include the City Manager budget, Building Dept. budget and the
Westside TIF budget. The manager budget is reworked to meet the contract and only
increases because we did not have any moving expenses in the Preliminary budget (thought
they would be spent before June 30th). The Building Dept. budget in reduced due to
revenue constraints. The Planning director's salary previously split 50150 with Building has
been changed to 75/25 which more accurately reflects his time. The Westside TIF district is
revisited because it will be necessary to have budget authority to end the district at the end
of the fiscal year. That budget is increased to appropriate all available funds.
The three page spreadsheet "Changes to Preliminary Numbers" is provided to reflect the
changes to the totals in the budget book. Most of the changes are due to carryovers. The
first page starts at with the Preliminary General Fund budget total from the book, the
changes, and a new total. The spreadsheet continues with line item changes to various
budgets. The grand total increase of $987,649 is not new spending but primarily a shift from
FY2009 to FY2010 for grants and projects. The Fire Grants budget alone carries over the
$915,879 grant for the CAD system. Only the General Fund has a small increase in budget.
The Old School TIFs are included to reclassify funds from redevelopment to transfer to the
debt service fund — no increase in those budgets.
Fund 2880 Community Development Loan Revolving Fund is increased to reflect the
payoff of the Center Street Loan which was a Downtown Tax Increment loan. This money
will be given to the County to distribute to the taxing jurisdictions on the levy from 2001.
That is the last Downtown TIF loan.
Fund 2882 is the Courtyard Fund which is managed by Community Action Partnerships.
We own 16 units and have been asked to authorize $20,000 from the Maintenance Reserve
Fund to rehab 5 units owned by the City. This has been reviewed and approved by the
Board of Housing. The units were built in 1995. We need budget authority to write the
check. The reserve account is a city account.
The Rural Development funds have been reworked to correct salaries and reflect available
funds at year end.
The CDBG Youth Shelter was completed by June 30' so does not need to be carried over.
DNRC has provided a $20,000 grant for the Woodland Lagoon.
The Fire Grants fund has the biggest increases - all due to carryovers from FY2009.
The Enterprise funds are all also carryovers. The rate study did not get under way prior to
the new fiscal year and so those funds are carried over.
At the bottom of Page 3 is the Total Budget recap — new total $ 46,755,825.
A second spreadsheet titled "General Fund -Revenue & Recap" is an updated estimate of
where we stand currently with revenue and expenditures and reflects the General Fund
proposed carryover/reserve. Most of the actual numbers are posted for revenue. Tax
collections are down about $80,000 from what was billed. Generally those funds come in at
a later date. Departments were particularly frugal with spending and we reflect an ending
carryover of $226,000. However, I have not made any adjustment between Fire and
Ambulance. The Ambulance fund is currently $25,000 in the red. We are anticipating a
check from Medicare for about that amount —earned in FY2009. Any shortfall in the fund
will require moving those salaries back to the Fire budget. The Fire budget has about
$35,000 remaining of the $130,000 amended earlier. Moving expenditures back to Fire will
reduce the cash. Additionally, there may still be some June bills coming in but nothing
substantial that we know about.
Please remember that the tax estimates will need to be revised when we get our values from
the Department of Revenue at the end of August. Prior to receiving those values and
adopting the budget it is necessary to get the data to the County for City Specials. In your
paperwork are three resolutions related to the Garbage rate, Forestry Rate and BID square
footage assessment. These will be presented at the August 3rd council meeting for your
consideration. Staff is available tonight if there are questions. We will not bring forward
the resolutions for city specials that are not changing as the current resolutions have no
expiration. Street Maintenance and Storm will likely be addressed after the rate study.
BUDGET FY2010 - CHANGES TO PRELIMINARY NUMBERS
General Fund FY2010 Additions
Corrections/deletions
Changes and questions: carryover items
GENERAL GOVERNMENT
1000-400-510310-513
CITY MANAGER
1000-401-410210-110
1000-401-410210-110
1000-401-410210-153
1000-401-410210-155
1000-401-410210-338
1000-401-410210-373
1000-401-410210-379
1000-401-410210-381
CENTRAL GARAGE
1000-410-410550-231
Planning Office
1000-420-411020-110
1000-420-411020-153
1000-420-411020-155
Liability Insurance
Salaries
Salary -deferred comp.
Health
Retirement
Moving expense
school & travel
meetings
training
Gasoline
Salaries
Health
Retirement
Preliminary Budget
ORIGINAL PRELIM BUDGET
reduction
Revised per agreement
Carryover
Actual costs
Move .25 FTE of Director's salary
from Building Fund to Planning
$ 9,100,857
$ (5,000)
$
(12,932)
$
5,000
$
(1,100)
$
(506)
$
20,000
$
(1,700)
$
(1,800)
$
(1,500)
$
5,462
$ (20,000)
$
22,062
$
3,301
$
1,433
Subtotal Planning Office $ 26,796
Total General Fund changes: $ 7,258
FINAL BUDGET - GENERAL FUND $ 9,108,115
SPECIAL REVENUE FUNDS
2185 airport TIF
436-460430-934 Begg Park Gazebo carryover $ 15,142
2188 Westside TIF
2188-480-470210-110
Salaries
removed salary for Dir.
$
(30,769)
2188-480-470210-153
Health
removed salary for Dir.
$
(4,489)
2188-480-470210-155
retirement
removed salary for Dir.
$
(1,998)
2188-453-430246-953
Public Works
move from - reclassify unallocated
$
(1,263,074)
2188-480-470230-820
Redevelopment
move to and add available $
$
1,508,944
Increase TIF budget to all available funds
$
208,614
page 1
2210 Parks in Lieu
2210-436-460430-934 Sunset Park Bball Court Carryover
2310 Old School Tech TIF REPLENISH BOND RESERVE
480-470210-790 Redevelopment. Activity Funds available
480-470210-820 Operating transfer to debt Funds available
2311 Old School Industrial TIF REPLENISH BOND RESERVE
480-470210-790 Redevelopment. Activity Funds available
480-470210-820 Operating transfer to debt Funds available
2394 Building dept
2394-420-420530-110
Salaries
reduction
2394-420-420530-112
Severance
addition
2394-420-420530-153
Health
reduction
2394-420-420530-155
Retirement
"
2394-420-420530-210
Office supplies
"
2394-420-420530-215
computer supplies
"
2394-420-420530-229
other supplies
"
2394-420-420530-231
gas & oil
"
2394-420-420530-322
Code books
addition
2394-420-420530-335
memberships
reduction
2394-420-420530-369
radios
it
2394-420-420530-373
School & travel
it
2394-420-420530-522
Admin
of
2394420-420530-528
Data
if
MACIGRANT
Equipment
Sweeper & combo unit
grant unsuccessful
2500 Special Street
2500-421-430240-357
Rate study
Carryover
2500-421-430240-840
Maci Grant transfer
match reduction
2601 Developer Trees
2601-436-460435-354 DEVELOPER'S -TREES Reduce to actual $ available
2880 COMMUNITY DEVELOPMENT
2880-480-470240-708 Center Street Loan paid off -distribute to County
2882 COURTYARD APTS
2882-480-470210-354 Addition
2887 Rural Development Revolving Fund #1
2887-480-470210-110 Salaries
2887-480-470210-155 Retirement
2887-480-470210-750 Redevelopment
Maint. Reserve funds for upgrade apts
Addition %Fte
correct
reduction - available funds
$ 5,500
$ (34,000)
$ 34,000
$ (14,000)
$ 14,000
$
(57,564)
$
2,500
$
(13,059)
$
(3,609)
$
(1,500)
$
(5,500)
$
(1,750)
$
(2,000)
$
750
$
(300)
$
(600)
$
(2,000)
$
(9,329)
$
(4,180)
$
(98,141)
$ (222,000)
$
$
7,500
(21,188)
$
(13,688)
$ (5,841)
$ 20,628
$ 20,000
$ 21,175
$ 1,369
$ (50,000)
$ (27,456)
2888 Rural Development Revolving Fund #2
2888-480-470210-750 Redevelopment reduction - available funds $ (5,000)
page 2
2945 CDBG YOUTH SHELTER
2945-480-470242-820 Grant
2974 DNRC WOODLAND LAGOON GRANT
2975-430-430630-934 Grant
2957 FIRE Grants FUND
2957-416-420400-218 Heritage Grant
2957-416-420413-940 Hazmat equip grant
2957-416-420415-941 911 Cad Grant
Reduction - grant complete 2009
$
(18,791)
addition
$
20,000
Carryover
$
8,207
Carryover
$
7,862
Carryover
$
915,876
$
931,945
TOTAL SPECIAL REVENUE FUNDS
DEBT SERVICE FUNDS
3188 Westside TIF Debt Service
3188-000-490700-820 Transfer to TIF District budget
5210 WATER
5210-447-430550-950
5210-447-430550-951
5210-447-430550-956
5310 SEWER
Sewer Operating
5310-454-430630-357
5310-454-430635-955
WWTP
5310-455-430640-357
5310-455-430640-933
STORM
5349-453-430246-352
5349-453-430246-357
ENTERPRISE FUNDS
I Ith St. E water main Carryover
Security system upgrades
upper/lower zone interconnection
Total Water Fund
Rate study
Lift Station upsizing
Rate study
Computer supplies
Carryover
Carryover
Total Sewer Operating
Carryover
Carryover
Total WWTP
TOTAL SEWER FUND
storm drainage corrections Carryover
rate study Carryover
Total Storm Sewer
TOTAL ENTERPRISE
TOTAL ALL BUDGET ADJUSTMENTS
TOTAL
PRELIMINARY BUDGET
$
45,768,176
changes
General Fund
$
7,258
Special Revenue Funds
$
622,298
Debt Service Funds
$
137,172
Enterprise Funds
$
220,921
Total changes
$
987,649
FINAL BUDGET
$
46,755,825
$ 622,298
$ 137,172
$ 30,000
$ 22,000
$ 20,000
$ 72,000
$ 5,500
$ 25,832
$ 31,332
$
$
12,500
25,071
$
37,571
$
68,903
$ 7,500
$ 72,518
$ 80,018
$ 220,921
$ 987,649
page 3
GENERAL FUND
FUND: 1000
REVENUE & RECAP
Estimate
MILL VALUE $ 34.887 Original MID YEAR S 36.507 S 37.602
ACTUAL
BUDGET
BUDGET
1
I ESTIMATED
BUDGET
FY07/08
FY08/09
FY08/09
FY08/09
FY09/10
GENERAL FUND MILL LEVY
132.6
138.76
138.76
138.76
117.43
4 mills to Parks
3%
PROPERTY TAXES:
311100
Real Property Taxes
4,336,545
4,840,000
4,840,000
4,766,114
4,265,603
311200
Personal Property
207,959
210,000
210,000
231,991
150,000
312000
Penalty & Interest
16,157
20,000
20,000
21,604
21,600
SUBTOTAL $
4,560,661 $
5,070,000 $
5,070,000 $
5,019,709 $
4,437,203
$
(150,000) to Parks
BUSINESS LICENSES:
322101
Alcohol Beverage
25,125
24,725
25,000
26,581
26,381
322300
General and occupational
717
1,200
1,200
1,217
1,200
322500
Amusement
600
600
600
350
600
323012
Planning fees & Sign permits
184,733
100,000
60,000
74,592
75,000
323107
Excavation Permits , house moving
470
500
500
715
500
323109
Site Plan Review Fees
54,297
50,000
35,000
28,389
30,000
323111
Zoning fees
121,421
120,000
60,000
64,289
65,000
323300
Animal licenses
1,337
1,200
1,200
1,381
1,200
SUBTOTAL $
388,700 $
298,225 $
183,500 $
197,514 $
199,881
INTERGOVERNMENTAL REVENUE:
334011
Safe kids/Safe community/DUI
334015
MDOT/Special Holiday Enforcement
334017
911 reimb. -dispatch training -County
334110
DPHS - After School Program
335030
MV Tax Ad Valorem
335076
Gaming Machine Permits
335110/077
Live Card Game, keno & bingo
335212
Personal Property Reimb. (phased out)
335230
HB124 ENTITLEMENT
SUBTOTAL
FINES AND FORFEITURES:
351017
Technology fees
351000
City Court Fines & fees, admin
SUBTOTAL
6,000
10,000
6,000
7,790
move to
45,862
40,000
40,000
47,257
grant fund
3,636
3,200
3,200
990
3,000
5,000
5,000
5,000
2,500
to Parks
1,912
1,750
1,750
1,844
1,844
58,625
58,625
58,625
60,325
60,325
4,400
4,500
4,500
3,600
3,600
7,827
6,788
6,788
0
0
2,106,245
2,161,375
2,176,375
2,175,464
2,270,106
$ 2,239,507 $
2,291,238 $
2,302,238 $
2,299,770 $
2,338,875
21,700
22,000
22,000
21,290
21,000
532,818
589,000
514,000
467,818
476,000
$ 554,518 $
611,000 $
536,000 $
489,108 $
497,000
12
Original MID YEAR
Revenue - Page 2
CHARGES FOR SERVICES:
341020
Administrative chg.
341022
Bond Fees/ Admin. Charge
341025
City Collections/other charges
341027
Bresnan Franchise Fees
342010
KPD -Public safety fees
342014
KPD -School Resource Officers
342015
KPD -School Reimb./Special Events
342016
KPD -Regional Training /testing Reimb.
342023
Fire Prevention fees
342025
Fire Engine Response Fee
343005
Central Garage Charges
343170
Payment in Lieu parking
346030
Pool & concessions($35,000)
346050
Parks usage fee
346055
ice rink (Less Utilities'07-08)
346059
Picnic in the Park
346051/3
Recreation fees + scholarships
346052
Sports programs
346054
Community After School Program
346057
Youth Camps
SUBTOTAL
MISC. REVENUE
362010
Golf Course Lease
364030
Auction & mist. collections/rent/donations
365015
Kidsport- lease reimbursement
381060
Operating transfer 2372 -health insurance
381080
Equity transfer from SID revolving
SUBTOTAL
371010/12 INVESTMENT REVENUE:
TOTAL GENERAL REVENUE
CASH JULY 1 (Includes designated $)
ACTUAL
I BUDGET
I BUDGET
I ESTIMATED
BUDGET
FY07/08
FY08/09
FY08/09
FY08/09
FY09/10
388,118
443,544
480,544
490,702
492,998
0
25,000
25,000
32,900
0
4,311
5,500
5,500
1,278
1,200
114,310
155,000
155,000
152,797
155,000
18,577
20,000
20,000
16,585
20,000
84,000
86,000
86,000
86,000
86,000
18,450
20,000
20,000
14,713
moved
18,316
20,000
20,000
5,734
15,000
126,024
160,300
87,000
66,247
65,000
50,000
10,000
3,360
2,000
118,818
118,000
118,000
118,518
118,000
24,832
0
0
0
0
193,108
193,000
193,000
120,257
0
17,321
18,000
18,000
8,406
0
1,436
38,500
38,500
25,158
0
32,785
36,000
36,000
21,518
0
17,839
30,000
30,000
8,938
0
39,890
42,000
42,000
25,332
0
30,956
33,500
33,500
25,945
0
121,642
85,000
85,000
22,617
0
$ 1,370,733 $
1,579,344 $
1,503,044 $
1,247,005 $
955,198
23,946
24,000
24,000
25,471
25,471
7,113
7,500
3,500
3,332
3,500
41,035
42,000
42,000
41,651
42,000
508,377
576,615
576,615
576,615
516,615
$ 34,568 $
30,000 $
30,000 $
15,000
12,000
$ 615,039 $
680,115 $
676,115 $
662,069 $
599,586
$ 125,777 $ 125,000 $ 70,000 $ 85,809 85,000
$ 9,854,935 $ 10,654,922 $ 10,340,897 $ 9,850,984 $ 9,112,743
$ 1,566,817 $ 473,546 $ 473,546 $ 464,591 $ 226,251
TOTAL AVAILABLE FOR BUDGET $ 11,421,752 $ 11,128,468 $ 10,814,443 $ 10,315,575 $ 9,338,994
amended
RECOMMENDED EXPENDITURES $ 10,957,161 $ 10,654,841 $ 10,555,655 $ 10,089,074 $ 9,108,115
CASH CARRYOVER (year end operating)
$
418,804 $ 473,627 $
258,788 $
180,214
$ 184,842
Designated for Bandshell
$
8,955
$
9,205
$ 9,205
Designated for Parking
$
36,832
$
36,832
$ 36,832
Total cash available
$
464,591 $ 473,627 $
258,788 $
226,251
$ 230,879
Expenditures/total cash carryover 4.24% 4.45% 2.45% 2.24% 2.53%
adjusted
for Parks-3mo
13
RESOLUTION NO.
A RESOLUTION MAKING THE ANNUAL TAX LEVY FOR THE BID (Business
Improvement District) OF KALISPELL, MONTANA, FOR THE FISCAL YEAR 2009-2010
and LEVYING AN ASSESSMENT FOR THE BID FOR FISCAL 2009-2010.
WHEREAS, the assessment cost of the Business District for the fiscal year 2009-2010 is estimated
to be $23,227.00, and the levy revenue will generate $46,411 for a total of $69,638.
WHEREAS, at a public hearing held on the 20th day of July, 2009, the City Council did consider
all objections made to said estimates and to the basis of levy and assessments for
payment for said costs (included as part of the City of Kalispell budget).
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS:
SECTION I. That there is hereby levied upon each and every dollar of the taxable
valuation of the Business Improvement District of Kalispell,
Montana, for the fiscal year 2009-2010, the following levy:
BUSINESS IMPROVEMENT DISTRICT LEVY 37.5 MILLS
SECTION II. That there is hereby levied upon each and every dollar of the taxable
valuation within the Business Improvement District of the City of Kalispell,
Montana, for the fiscal year 2009-2010, the following assessment:
ASSESSMENT
015 SQ. FOOT
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 3rd DAY OF AUGUST, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk
RESOLUTION NO.
A RESOLUTION LEVYING AN ASSESSMENT FOR THE COST OF URBAN FORESTRY
MAINTENANCE IN THE CITY FOR THE FISCAL YEAR 2009-2010.
WHEREAS, the assessment cost of the Urban Forestry District for the fiscal year 2009-2010 is
estimated to be $200,000.00, and
WHEREAS, at a public hearing held on the 20th day of July, 2009, the City Council did consider
all objections made to said estimate and to the basis of levy and assessment for
payment for said cost.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA:
SECTION I. That a tax levied for the assessment cost, or $200,000.00, be in the
amounts set opposite the description of each lot or parcel of land, as
shown by the special assessment lists on file in the office of the City
Finance Director.
SECTION II. The amount of said tax shall be levied proportionately on a square
foot basis in the amount of $.00171 per lot or parcel of land within
the district except public streets or rights of way. Tax levy amount
shall be capped at $150.00 per residential parcel and $300 per
commercial parcel.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 3rd DAY OF AUGUST, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk
RESOLUTION NO.
A RESOLUTION TO LEVY THE COST OF REMOVAL OF GARBAGE OR OTHER OFFENSIVE
MATTER FROM STREETS, ALLEYS OR ON ANY PREMISES AS A SPECIAL TAX AGAINST
PROPERTY FROM WHICH SUCH MATTER WAS DEPOSITED, AND THE DISPOSITION
THEREOF.
WHEREAS, Section 7-14-4105 MCA, gives a City Council power to provide for levying the cost of
removal of garbage or other offensive matter from streets, alleys, or any premises as a special
tax against that property from which the same was deposited, the City Council deems such a
method more equitable and just than paying for such removal from the General Fund of the
City.
WHEREAS, at a public hearing held on the 20th day of July, 2009, the City Council did consider
all objections made to said estimate and to the basis of levy and assessment for
payment for said cost.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL,
MONTANA:
SECTION I. The assessments for removal of garbage or other offensive matter for the fiscal year
2009-2010 are hereby estimated to be $775,000.00 and the City Council finds that
the cost of the removal of garbage and other offensive matter from the various lots
and parcels of land within the city and benefited by such removal is the amount as
shown by the records maintained in City Hall.
SECTION II. That the assessments charged are hereby established as follows:
(a) $111.00 per average single family residential dwelling unit on one
or more contiguous city lots per fiscal year;
(b) Charges for all other garbage collection service shall be in
accordance with the schedule maintained in the office of the
Director of Public Works.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY
OF KALISPELL THIS 3rd DAY OF AUGUST, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk