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08/05/81 City Council MinutesTHE REGULAR AND BUDGET MEETING WAS HELD AT 7:30 P. M. WEDNESDAY, AUGUST 5, 1981 IN THE COUNCIL CHAMBER AT CITY HALL, MAYOR HAPP PRESIDED, ALL COUNCILMEN WERE PRESENT. APPROVE MINUTES Councilman Daley moved that the minutes of the July 20, 1981 meeting be approved as presented. Seconded by Councilman O'Boyle. Motion carried. BID OPENING - PARKING LOT PROJECT - Project #MT. 801506-159 American Asphalt Contractor's License #2736A Bid Bond 1st Avenue West Parking Lot $33,508.00 City Hall Parking Lot 10,116.50 Total $43,624.50 Pack & Company Contractor's License #2760A Bid Bond 1st Avenue West Parking Lot $380440.73 City Hall Parking Lot 10,938,27 $49,379.00 Councilman Saverud moved that the bids be referred to the City Development Committee to review and report back. Seconded by Councilman Smith. Motion carried. PUBLIC HEARING S.I.D. #333 - Water and Sewer Lane Extension in Gibson Addition Director of Public Works Hafferman explained the need for water and sewer extensions in the Gibson Resubdivision for new development. Mayor Happ called three times for proponents for the project. No one responded. Mayor Happ called three times for opponents for the project. No one responded. RESOLUTION #3351 Councilman Smith moved to adopt Resolution #3351, a resolution to create S,I.D, #333 for the purpose of extending water and sewer lines in the Gibson Resubdivision, Seconded by Councilman O'Boyle. The project has been approved by the Fire Chief, Sewer Department and Director of Public Works. Roll call vote. All voted aye. - RESOLUTION #3352 Councilman Daley moved to adopt Resolution #3352, a resolution to advertise for bids for construction of S.I.D. #333. Seconded by Councilman 0"Boyle, Roll call -vote. All voted aye. RESOLUTION #3353 Councilman Smith moved to adopt Resolution #3353, a resolution to advertise for sale of bonds on S.I.D. #333. Seconded by Councilman Saverud, Roll call vote. All voted aye. ADDRESSING THE COUNCIL Director of Public Works Hafferman addressed the Council regarding the Developer Ex- tension Agreement with Greenacres West Sewer District in lieu of Mr, Marquardt, who was out of town and could not attend the meeting. The Developer is Mark III, Inc, Mr. Hafferman stated that the agreement is now ready and Mayor Happ was authorized by the Council to sign it at the April 20, 1981 Council Meeting, Mayor Happ stated that she will review the agreement and if proper, will sign it, BUDGET HEARING Mayor Happ reported that the expenditures were 2% less than the projected budget figures last fiscal year. This year there is a 2z% increase over last year's budget, making a total of 102 mills. Finance Director Swanson presented the following figures for the 1981--1982 budget: 216 Total General Fund $1,882,952.00 Special Assessment, Enterprise, State & Federal Funds: Airport 8,000.00 In lieu of Park Land 1,500.00 Liability Insurance 39,821.00 Retirement 145,473,00 Health Insurance 74 ,518.00 Parking Commission 13,700.00 Crime Control Grants 5,000.00 Gas Tax 114,391.00 Total Revenue Sharing 308,958.00 Traffic Safety 61,854.00 B.Q.R. Fund 19,000.00 H.U.D. (Community Development) 453,000.00 Water 646,295.00 Sewer Collection & Transmission 147,389.00 Secondary Treatment Plant 470 ,637.00 Sewer --Capital Improvement 118,000.00 Storm Sewer Maintenance & Operation 59,699.00 Ambulance 93,335.00 Central Garage 106:014,00 Central Stores 3,000:00 Garbage 223,481,00 Oil Sprinkling 161,435.00 Water Sprinkling 30,958.00 Special Lighting District 86,320.00 1981 Sidewalk & Curb Construction 1,000.00 Total Budget $ 5,275,730.00 Estim ated Non --Tax Revenue for the General Fund for FY 19 81--82 is $600,437.00. Councilman Saverud asked if the new roof for Hockaday- Art Center was included in the Revenue Sharing Budget and was told it was included in "'other''., Discussion was held on disposition of monies received if the City sells some pro- perty. Councilman Ruiz, Finance Chairman, stated that he would like it held as Cash reserve. Councilman Gr anmo asked why we were not keeping within the goal of 100 mills. It was explained that last year the value. of the mill was $15,984,00 and this year the estimate is only $15 ,640..00. The correct value will not be known for several months, but the law requires the budget be fixed as of August loth. Councilman Ruiz further explained that we need the 102 mills to balance the budget and if we do happen to get more, it will make a cash reserve TAX INCREMENT FINANCING Larry Gallagher, HUD Consultant, explained tax increment financing.. He stated that this year, according to County Assessor figures, the City of Kalispell is eligible to request-t.segregation of $236,666,00 of net tax revenues that should be paid, based on the estimate within the tax district. The County Assessor's office furnished figures to the City Development office, showing that School District #75 tax value was estimated to be $15,984,162.00. Within the boundaries of the tax increment district, that is the Central Business District and surrounding neighborhoods, the estimated tax value is $707,549.0.0. The increment then would be $236,667.00 of the net tax yield. That money would be available to tho' City of Kalispell for use or payment of principal, and interest on bonds sold or the cost of eligible redevelop- ment activities as decided on by the Council over the next year, You did have a.tax increment last year which you did not claim and because it was not claimed, it was disbursed to all the other levying agencies, as well as the City General Fund. If you segregate it this year, that money can be held for re- development activities. The net tax revenues could be less because of protested and delinquent taxes, but assuming that the City, County and School levies remain at the estimated figure, the amount should be $236 ,667 ,00 , 1 1 - I Cities._Ieiave.-sold tax. increment bonds to finance the cost of improvements, parking - ritctuxes., Iands.capiitg:, land .acquisition, -relocation, ddmolition and purchase of tracts of. land to encourage private.. anvestment� and redevelopment,. The City of Pi-3Iings;'to.date., is t4e,,only city that has actually sold tax increment bonds, 1;. -.-The-bonds were used .to build a Parking structure. This encouraged' the construction ., of the new Sheraton Hotel and multiple additional private development in the area, Right now the .City of Billings is generating almost a million dollaxs.more than they:ne�d ta.:-eover the debt service indebtedness on their bonds. They 'are putting ..'ihe' additional .tax increment -into improvements within the redevelopment area for str6ets', curbs', gutters and other improvements that they have not been able to handle out. of .normal general funds. Missoula plans to issue tax increment bonds this fall. The proceeds of the band - sale.wilL go fox1the acquisition of land for private redevelopment within the district., Right.now'it will go into public improvements. .The amount they intend to sell is 3,5 million. Sh6uld'..the City.o£ Kalispell elect to, you could_ issue approximately a one million dollar bond and use .these funds for any similar costs in Kalispell., Any public building or public improvement is an eligible cost within the boundary, If any. ,private individual requests the purchase of land to encourage business or industry within the redevelopment area, you have broad power and discretion on the use of this money. You could use it this year for supplemental street improvements on the Main Street Project. If the money is not used, it can be invested and draw interest until_ the earmarked project is under way. It enables you to do -a million dollar project at today's costs rather than piecemeal at increasing inflationary costs, Mayor Happ presented the following letter: F THE CITY 0F ALISPELL, P.O. BOX 1035 ZIP CODE 69901 Mayor Norma E. Happ MONTANA "IN THE HEART OF THE NATION'S PLAYGROUND" August 5, 1981 Kalispell City Council Hear Sir; 0n September,10, 1979, the Kalispell City Council adopted Ordinance 933 creating an urban renewal plan for the Kalispell Central Business District. The plan included a tax increment financing provision establishing the 1979 taxable valuation of the district as the base year to deter- mine and allow for the segregation of a tax increment to help implementation of the plan. The County Assessor has determined that the 1979 tax- able value of taxable property in the urban renewal area was Four Million Five Hundred Sixty -Four Thousand and One Hundred Seventeen Dollars ($4,564,117). In 1980 the taxable value of all property increased by Eighty Five Thousand dine Hundred Twenty Three Dollars ($85,923); and in 1981 the taxable value in the area increased an additiona'1 Six Hundred Twenty One Thousand Six Hundred Twenty Six Dollars ($621,626). The total increase in.taxable valuation or the tax increment for 1980 and 1981 is estimated to be Seven Hundred Seven Thousand Five Hundred Forty Nine Dollars ($707,549). ( continued) August 5, 19B1 Page 2 In 19Bu the City did not request a sugruyaLicii ue" t1he tax increment because it was not needed; however, it.is the City's intention to request the segregation of tax dollars generated by the increment for the 1981 taxable year and we hereby notify all levying agencies of that intention. Monies derived from the tax increment will be used for eligible activities to stimulate substantial public and private:investment in the urban renewal area which will further stabilize and .improve the tax base. It is the City's intention to issue tax.increment financed or tas allocation bonds to be repaid over a 20-25 year period from tax incre- ment revenues. As soon as the bonds are retired or our authority period expires, all levying jurisdictions will share in the new tax base. The segregation of the tax increment will affect all taxing jurisdictions this budget year. If you have any questions please contact my office, the County Assessor, Monty tong or Edward Gallagher, Director of the Community Development Department. Sincerely, Mayor Norma E. Happ Councilman Saverud stated that the longer we wait, the higher the costs and it would have been better to do it last year., Councilman Ruiz moved to recess the budget hearing until August loth. Seconded by Councilman Daley. Motion carried. COMMITTEE REPORTS .,`T1INANCE Councilman Daley 'moiled that Councilman Ruiz be .given permission to be out of the state for vacation. Seconded by Councilman O"Boyle, Carried, Councilman Ruiz reported that the. claims for July have been -reviewed and moved that those found in order be'p aid. Seconded by Councilman Smith.. Motion carried.. RESOLUTION #3354 Councilman Ruiz moved adoption of Resolution #3354, a resolution of intention to assess the net amount of $23,621..00 for. Water Sprinkling District 1, at the rate of $0.01 per square foot of said lots and to publish notice of public hearing thereon. Seconded by Councilman O'Boyle. Roll call vote.. All voted aye, RESOLUTION 43355 Councilman Ruiz moved adoption of Resolution #335S, a resolution of intention to assess the net amount of $86 520,,00: for lighting streets and alleys at the rate of .0011 per square foot of lot or . parcel .of land and to publis-h notice of public hearing thereon,, Seconded by Councilman Zauner. Roll call vote. All voted aye. RESOLUTION #3356 Councalma''Ruiz moved ado taon'of resolution ft #3356, a resolution of intention to assess the net amount -of $146,858.00 for Oil. Sprinkling.Distxict #1 at the rate of $.00213 per square foot for each lot or parcel of land for the purpose of dust control and to publish notice of public hearing thereon. Seconded. by Councilman Smith. Roll call vote. All voted aye.. RESOLUTION #336.7 Councilman Ruiz- moved adoption of Resolution #3367,a resolution to alter the boundary of Oil Sprinkling District #2 to include, all annexations to March 1, 1981. Seconded by Councilman O'Boyle. Roll call:vote, All voted aye. xy rye RESOLUTION #3358 1 Coun oilman Ruiz moved adoption of Resolution #3368, a resolution to alter the boundary of the Street Lighting District to include all lights installed to March 1, 1981. Seconded by Councilman Smith. Roll call vote. All voted aye. RESOLUTION#3369 Councilman Ruiz moved adoption of Resolution #3369, a resolution to alter the boundary of the Water Sprinkling District #1 to reflect any changes in the boundary the past fiscal year. Seconded by Councilman Grainger. Roll call vote, All voted aye, ANNEXATION Councilman Smith reported that the hearing on the zoning request for Third Avenue East Enterprises will be continued until August 17th. The Annexation Committee meeting will be at 5:00 P. M. on Thursday, August 13th- EMPLOYMENT Councilman Zauner had no report, PARKS, RECREATION & AIRPORT Councilman Daley had no report, STREET & ALLEY Bob Ivey, representing the Parking Commission, presented the following petition: PETITION The undersigned, owners, occupants or agents, of property within proposed Special Off -Street Parking Maintenance District No, 1, hereby join an the petition for the establishment of such district and affirm their support thereof. Said district shall be for funding the costs of maintenance and operation of the City owned off --street parking lot in the west half of Block 46 (Eagles Lot) over and above the revenues de- rived from City owned or operated parking facilities allocated to such costs. The petition was signed by 75% of downtown property owners, City Attorney Donahue stated that incomefrom the, parking lots within this District, -if -formed', would -he used first_.for__p,ayments, on the "Eagle"s Lot", and then for maintenance and operation, _RESOLUTION #3360 Councilman-Suverud--moved _adoption of Resolution #3.36.0 ,-. _a resolution . of intention tp___�ueate ial O.ft=—Street Parking Maintenance -,District No 1 -for the purpose of ma .411 and operation of the City.owned_off-street parking lot in_the west -half. of Block 4b_; Tt`;would_:a.1so-include, as. an operating expense;- any.defi-ciency in the annual purchase payments that may occur, if revenues from parking within the district are less than expected. CITY DEVELOPMENT Councilman,_. Saverud reported that the lease agreement between= the City and the ,. .Kaliipeli Chamber. o-f Commerce has, been reviewed by both parties and -moved that May-or`Happ be authorized --to sign same.-Seoonded by Councilman Zauner; Motion carried. Stebbins Dean, Chamber of Commerce Manager, thanked the Mayor and Council for the lease of the old depot. building. Councilman Saverud read the following letter of resignation: August 5, 1981 Mayor Norma E. Happ City of Kalispell P . 0.. Box. 1035 Kalispell, Montana. 59901' .; Dear Mayor Happ; Please accept my resignation From -the-.. Kalispell City Council effective August- 20, 1981..: This resignation is necessitated ' by!my change of residence from .Ward _2 to Ward 3. 14 I-wi.11 -continue to .serve. on the Board of Directors for the Kalispell area Chamber of Commerce, 'the Hockaday Art Center, and Kalispell Development Corporation at your pleasure. 1 have, enjoyed working with the City these past four years and look forward to possibly serving with you in the future. Sincerely, Wayne P. Saverud hh gi,SnyCouncilman O'Boyle- fac,opt t Councilman Daley.:' Cdrried.. Mayor. Happ thanked Councilman Saverud .arid'. express:d her ,re,gret .- SEWER € WATER. Councilman Granmo stated that :he was, anxious- for his Committee and the -.entire Council to study a new grant application for 'Step.-: -J .' The grant will- .ever = the engineering. cost for a new wastewater treat.ment­plant and involves-4-and -- acquisition. City portion of cost is $87,000.00, He.'stated he would like to take action on the application at the August Loth- meeting., Discussion on sewer revenue and expenditures. A bond issue will probably be needed and a rate raise necessary to keep solvent;. . Councilman Granmo moved -.that Sewer & Water Committee be.given power to act to instruct Mayor Happ to authorize Tom Flynn to proceed with. -sewer and water .studies. Seconded by Councilman•Zauner., Motion' -carried. -- Coun-czlman- Granmo set 3:30 P- I: on Phursda Au ust 6th £or a Committee meeting. SAFETY Councilman Grainger set 3:30 P.M. on :Monday, August 10th for a Safety Committee Meeting. Councilman. Grainger was given permission to be out of .town on August 17th, MISCELLANEOUS Mayor Happ reported the retirement and long tenure of Joe Longpre, Water Superin- tendent. Joe retired July 31, 1981, after 23 years of fine service to the Water Department and the entire City of Kalispell. Councilman Grainger moved the meeting be recessed until 7:30 P.M. on Monday, August 10th. Seconded by Councilman Granmo. Motion carried, Minutes approved as presented August 18, 1981 ATTEST: Mar' rie Giermann, City Clerk 1 1 Norma E. Happ, Mayor