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06-12-23 Work Session Agenda and Materials Page 1 of 2 CITY COUNCIL WORK SESSION AGENDA June 12, 2023, at 7:00 p.m. City Hall Council Chambers, 201 First Avenue East The public can participate in person in the council chambers or via videoconferencing. Register to join the video conference at: https://us02web.zoom.us/webinar/register/WN_5DNxMKGuRQubeQNALLKqzg. Please see the bottom of the agenda for instructions to watch the meeting live. A. CALL TO ORDER B. DISCUSSION 1. Montana Department of Transportation Project Updates – Bob Vosen, District 1 Administrator 2. Water Fund Budget Review C. PUBLIC COMMENT Persons wishing to address the council are asked to do so at this time. Public comment can be provided in person, verbally during the online meeting, or via email to publiccomment@kalispell.com D. CITY MANAGER, COUNCIL, AND MAYOR REPORTS E. ADJOURNMENT UPCOMING SCHEDULE / FOR YOUR INFORMATION Next Regular Meeting – June 19, 2023, at 7:00 p.m. – Council Chambers Next Work Session – June 26, 2023, at 7:00 p.m. – Council Chambers To provide public comment live, remotely, please register for the video conference through zoom and use the raise hand feature to indicate you would like to provide public comment. See the top of the agenda for the zoom link. Watch City Council sessions live or later on Charter Cable Channel 190 or online at https://www.kalispell.com/480/Meeting-Videos. The City does not discriminate on the basis of disability in its programs, services, activities, and employment practices. Accessible parking is available at the rear entrance to City Hall off of the alley, where there is an accessible entrance, and accessible restrooms nearby. Auxiliary aids are also available. For questions about disability accommodations please contact the City Clerk at 406-758-7756. Kalispell City Council Agenda, June 12, 2023 Page 2 of 2 ADMINISTRATIVE CODE Adopted July 1, 1991 Section 2-20 Manner of Addressing Council a. Each person not a Council member shall address the Council, at the time designated in the agenda or as directed by the Council, by stepping to the podium or microphone, giving that person's name and address in an audible tone of voice for the record, and unless further time is granted by the Council, shall limit the address to the Council to three minutes. b. All remarks shall be addressed to the Council as a body and not to any member of the Council or Staff. c. No person, other than the Council and the person having the floor, shall be permitted to enter into any discussion either directly or through a member of the Council, without the permission of the Presiding Officer. d. No question shall be asked of individuals except through the Presiding Officer. PRINCIPLES FOR CIVIL DIALOGUE Adopted by Resolution 5180 on February 5, 2007 ◼ We provide a safe environment where individual perspectives are respected, heard, and acknowledged. ◼ We are responsible for respectful and courteous dialogue and participation. ◼ We respect diverse opinions as a means to find solutions based on common ground. ◼ We encourage and value broad community participation. ◼ We encourage creative approaches to engage in public participation. ◼ We value informed decision-making and take personal responsibility to educate and be educated. ◼ We believe that respectful public dialogue fosters healthy community relationships, understanding, and problem solving. ◼ We acknowledge, consider and respect the natural tensions created by collaboration, change, and transition. ◼ We follow the rules & guidelines established for each meeting. City of Kalispell Clerk’s Office 201 First Avenue East, PO Box 1997, Kalispell, Montana 59903 (406) 758-7756 cityclerk@kalispell.com REPORT TO: Doug Russell, City Manager FROM: Aimee Brunckhorst, CMC, City Clerk & Communications Manager MEETING DATE: June 12, 2023 RE: Montana Department of Transportation Project Updates The Montana Department of Transportation reached out requesting time to present to Council and the public on upcoming projects that are occurring or upcoming for the City of Kalispell and surrounding areas. Their goal is to keep local government and the public informed and provide additional opportunities for open channels of communication between the entities. Bob Vosen, MDT District Administrator for District 1 out of Missoula will be in attendance. 201 1st Ave E Post Office Box 1997 Kalispell, MT 59903 Telephone: (406) 758-7720 www.Kalispell.com To: Doug Russell, City Manager From: Susie Turner, Public Works Director Re: Water Fund Budget Review Meeting Date: June 12, 2023 BACKGROUND: Kalispell’s water service is funded by the Water Enterprise Fund and the current water rates were developed as part of the 2019 Water Rate Study. The Study utilized a “Cash Basis” Revenue Requirement Methodology (AWWA M1 Manual), where the total annual revenue required to sufficiently manage a utility is the sum of the operating expenses and capital cost during a period of time (see table 2-1 below). Additionally, as part of the rate development process financial policies were incorporated to ensure day-to-day and long-term financial sustainability. Policies incorporated and considered as part of the rate structure include annual reserve amount for maintenance and operations (M&O), equipment replacement, bond reserve (restricted funds), and bond debt coverage. Upon receiving 2023 bids for planned infrastructure projects that were significantly higher than the City forecasted as part of the rate development process in 2019, a review of the fund’s financial status for the next several years was performed. Results of the projections highlight that the revenues generated from the current rates will not sustain the current level of service expenditures beyond FY 25 and the City will not meet the debt coverage requirement necessary to receive a State Revolving Fund loan for the Lower Zone Tank Rehabilitation and Roof Replacement Project. During the work session staff will be presenting on the following items: 1. FY 24 water budget and three years revenue and expenditure projections 2. Adopted financial policies as part of the 2019 rate development 3. Projected short fallings for M&O reserves and bonding debt coverage for planned CIPs 4. Short term rate increases necessary to ensure financial sustainability and continue replacement of critical infrastructure.