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H07. Res. 6281, Annual AppropriationsCity p of Kalispell KALISPELL Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone (406) 758-7000 Fax - (406) 758-7758 REPORT TO: Doug Russell, City Manager FROM: Aimee Cooke, Finance Director SUBJECT: 2026 Final Budget Appropriation MEETING DATE: August 18, 2025 BACKGROUND: On July 7, 2025, a public hearing was held on the FY2026 budget. Following the public hearing several changes were made to the Preliminary Budget as outlined in the attached Final Numbers Memo and spreadsheets. Major changes not related to adjusted carryovers or actuals include: • $122,000 increase to City Manager fund for salary severance payout. • $2,271,243 increase to Sewer fund to reflect updated construction costs for the Biosolids Treatment and Disposal Project. $30,000 increase to Drug Enforcement Grant award, corresponding increase in revenues due to approval of additional funding for K9 officer. Most of the other reductions and increases were due to grants and projects adjusted to actual carryover amounts. Overall, the final budget amount of $179,863,761 is $2,311,728 less than the Preliminary Budget of $182,175,489. RECOMMENDATION: It is recommended the City Council approve Resolution 6281, a resolution setting the annual appropriations for the City of Kalispell, Montana, for all funds as set forth in the 2025-2026 Budget adopted by the City Council. FISCAL EFFECTS: $178,863,761 in final budget appropriations. ATTACHMENTS: Resolution 6281, Final Budget Appropriations Final Numbers memo with enclosures Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59903 RESOLUTION NO. 6281 A RESOLUTION SETTING THE ANNUAL APPROPRIATIONS FOR THE CITY OF KALISPELL, MONTANA, FOR SPECIAL REVENUE FUNDS, DEBT SERVICE FUNDS, CAPITAL PROJECT FUNDS AND PROPRIETARY ENTERPRISE FUNDS AS SET FORTH IN THE 2025-2026 BUDGET ADOPTED BY THE CITY COUNCIL. SECTION 1. That the annual appropriations of the City of Kalispell, Montana, and the same are hereby fixed as follows: APPROPRIATIONS APPROVED GENERAL FUND $ 17,113,444 SPECIAL REVENUE FUNDS Tax Increment -Downtown 3,988,067 Tax Increment-Westside 6,186,439 Parks In Lieu 312,835 Parks & Recreation Fund 3,587,921 Ambulance Fund 1,597,285 Emergency Responder Levy 5,333,535 Old School Station Tech TIF 110,000 Old School Station Industrial TIF 7,000 Glacier Rail Park TEDD 85.806 Public Safety Impact Fee Fund 2,855,000 Health Insurance -permissive levy 1,588,000 Building Code Enforcement 1,608,490 Light Maintenance District 521,065 Gas Tax 2,463,135 Bridge and Road Tax (BARSAA) 1,561,912 Special Street Maintenance 4,689,535 Urban Forestry District 880,457 Developer's Trees 143,247 MACI Grant 0 2 Mile Drive Improvement Project 3,835,000 4 Mile Drive Path Project 781,126 Community Dev. Loan Revolving 2,844 Community Dev. Loan Revolving 42 13,000 Community Development Misc. 3,993 Morning Star Project Grant 2,071,275 Green Acres Project Grant 750,000 Homeland Security Stonegarden Grant 34,000 Drug Enforcement Grant 160,293 DUI Grant 134,410 Law Enforcement Block Grant 97,623 EECBG Grant 75,940 Pro Housing Grant 1,100,000 OPIOID Settlement 78,746 Brownfields Assessment Grant 1,115 Brownfields Loan Revolving Fund 586,435 Fire Grants Fund 5,000 Hazmat Grant 22,878 Hazmat Team Sustainment Grant 125,594 Airport Grant 613,849 Safe Steet Grant 3,962 DEBT SERVICE FUNDS: Sidewalk & Curb Debt Service 37,868 SID Debt Service 378,268 Westside TIF Debt Service 2,868,375 CAPITAL PROJECT FUNDS: Sidewalk & Curb Construction 55,000 Fire Pumper 1,917,000 American Rescue Plan 48,473 Morning Star 1,155,000 Green Acres 428,000 ENTERPRISE FUNDS: Water Fund/Impact Fees 54,189,109 Sewer/WWTP Fund/Impact Fees 40,202,563 Storm Sewer/Impact Fees 6,103,020 Solid Waste 3,709,189 American Rescue Plan 945,200 INTERNAL SERVICE FUNDS: Information Technology 1,821,271 Central Garage 875,169 TOTAL ALL FUNDS 179.863.761 SECTION 2. The City Manager and Finance Director are hereby authorized to transfer any part of an unencumbered balance of an appropriation to a purpose or object for which the appropriation for the current year is insufficient or to transfer between items appropriated within the same fund. SECTION 3. The City Manager is hereby granted budget amendment authority for the expenditure of funds from any or all of the following: debt service funds, enterprise funds, internal service funds, trust funds, federal and state grants accepted and approved by the City Council, special assessments, and donations. SECTION 4. The final budget after any amendments to the preliminary budget and after considering any public comment is adopted. This resolution authorizes: (a) Appropriations to defray the expenses or liabilities for the fiscal year. (b) It sets the legal spending limits at the city fund level. Fund level details are stated in the formal budget document and established in the City's accounting system. (c) An increase (decrease) in property taxes due to (15-10-420 calculation), permissive and/or voted levies of 41.13, 123.40, and 246.81, respectively for a home valued at $100,000, $300,000 and $600,000 is included in this fiscal year budget. The effective date of this resolution is July 1, 2025, even if the resolution is adopted after that date. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 18TH DAY OF AUGUST, 2025. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk CITYOF City of Kalispell ALISPELL Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone (406) 758-7000 Fax - (406) 758-7758 REPORT TO: Doug Russell, City Manager FROM: Aimee Cooke, Finance Director SUBJECT: FY 2026 Budget - Final Numbers Memorandum MEETING DATE: August 18, 2025 The City Council approved the Preliminary Budget on June 16, 2025, and a public hearing was held on July 7, 2025. Since that time, budgets have been updated to reflect actual FY2026 costs. The enclosed spreadsheets (Enclosures A-D) detail the changes, which primarily result from adjusting carryovers from estimates to actuals. A — Changes to Preliminary numbers - The General Fund expenditure budget total increased by $186,334. Most of this change is due to the appropriation of $122,000 to the City Manager fund to cover accrued leave payout. $35,000 was also added to the Human Resource fund to support the upcoming City Manager recruitment process. In addition, the Fire Department budget increased by $10,500 to address higher uniform costs, and the City Clerk budget increased by $14,000 to fund FOIA and DocuSign software. The enclosed 4-page spreadsheet itemizes the additions and reductions to the preliminary budget. The most significant change outside the General Fund is a $2,271,243 increase to the Sewer Fund, reflecting updated construction costs for the Biosolids Treatment and Disposal Project. Most other adjustments result from changes in carryover amounts from fiscal year 2025, as estimates have been updated to actual figures. B — General Fund Recap — The enclosed 2-page recap presents actual FY2025 revenues and the year-end cash carryover balance, aligned with the City's General Ledger. FY2026 tax collection estimates remain conservative, as actual collections often differ from the mill value projections. As shown on page two of the revenue schedule, the General Fund cash carryover increased to 30.1% at year-end. In FY2025, General Fund expenditures came in over $1.0 million under budget, while actual revenues exceeded budget by more than $350,000. The expenditure savings were primarily due to personnel -related underspending caused by vacancies, particularly in the Police Fund. Additional savings were realized from professional service contracts completed under budget or deferred, as well as lower than expected spending in maintenance and operations (M&O) across multiple departments. The FY2026 budget shows higher expenditures compared to FY2025, driven largely by personnel -related cost increases, including a 9% rise in health insurance. The total cash carryover at the end of FY2026, including designated and assigned funds, is projected to decrease from 30.1% to 20.2%. This includes $600,000 in cash designated for the Central Garage. State law allows a 50% carryover, as tax revenue is collected twice annually; maintaining a 15%-20% carryover is recommended to support healthy cash flow. Pages B-3 and B-4 provide the General Fund appropriation summary. C — Fund Position for all funds is presented on the two -page Fund Position spreadsheet which has been revised to reflect the actual beginning cash in each fund, anticipated revenue, and final budget expenditures. The budgeted expenditure total matches the appropriation resolution. D — Department of Revenue values and levy calculation. Our mill value for fiscal year 2025 is $71,428 a 6.95% decrease from last year. When the mill value is reduced for the newly taxable amount to compare to the prior year it results in a mill value of $69,985 (see D-2). The adjusted mill value we had last year was $74,431. The floating mill as calculated with the information from the Department of Revenue (see D-2) results in the City of Kalispell being authorized by HB 124 to levy 144.69 mills (the mill value changes daily so this is a number that may not relate to what the County Treasurer bills, or we collect). The 1 mill authorized, but not budgeted to be levied, can be levied in the future if needed. D-3 is a 5-year history of the levy. The Permissive Health Insurance Levy was increased by 2.75 mills, from 19.00 mills to 21.75. This levy is determined by calculating the difference in contributions to health insurance made by the City in the base year (2000) and the contributions that will be made in the year of the levy. This difference is divided by the mill value to arrive at the allowed levy (see D-4 and D-5). The Dedicated Emergency Responder Levy was approved by voters on March 19, 2024, allowing for the addition of up to 60.9 mills annually. For FY2026, in accordance with legislative changes, this levy is now established as a dollar -based levy in the amount of $4,480,259, equal to assessed value in FY2025. All proceeds from this levy are dedicated solely to funding Emergency Response services. The Westside TIF and Kalispell Downtown TIF incremental values increased substantially by 58.7% and 24.7% respectively. The incremental values of the Glacier Rail Park TEDD decreased by 14% and Old School Station TIF districts did not change significantly. BUDGET FY2026 - CHANGES TO PRELIMINARY NUMBERS General Fund FY2026 Additions Preliminary Budget Corrections/deletions Changes and questions: carryover items ORIGINAL PRELIM BUDGET $ 16,927,110 carryovers transfers GENERAL GOVERNMENT 1000-400-510310-513 Liability Insurance to actual $ 813 1000-400-510330-517 Property Insurance to actual $ 4,021 $ 4,834 CITY CLERK 1000-402-410150-354 Contract Services increase for FOIA.Docusign software $ 14,000 CITY MANAGER 1000-401-410210-112 Salary - Severance increase for payout $ 122,000 HUMAN RESOURCES 1000-401-410830-338 Recruitment increase for City Manager recruitment $ 35,000 FIRE DEPARTMENT 1000-416-420400-241 Consumable Tools/ Uniforms increase for higher uniform cost $ 10,500 Total General Fund changes: $ 186,334 $ - $ FINAL BUDGET - GENERAL FUND $ 17,113,444 SPECIAL REVENUE FUNDS PARKS 2215-436-460430-941 Equipment carryover - vehicle (f}25 energy grant) $ 55,000 AMBULANCE 2230-440-420730-280 Training Reimbursement increase for reimb. Of paramedic training $ 2,000 2230-440-420730-218 Equipment - non capital increase for grant award $ 1,600 $ 3,600 $ EMERGENCY RESPONDER LEVY 2273-413-420140-218 Equipment - non -capital 2273-416-420400-241 Consumable Tools/uniforms 2273-416-420400-280 Training Reimbursement HEALTH PERMISSIVE LEVY 2372-400-521000-810 Health Insurance Transfer GAS TAX carryover $ 2,021 increase for higher cost $ 5,000 increase for reimb. of paramedic training $ 2,000 $ 7,000 $ 2,021 increase tfr to EMS to reflect rate increase $ 189000 $ - 2420-421-430240-355 Pavement Maint. (BaRSAA funds) adjust to available 2420-421-430240-368 Overlays & Chip Seals adjust carryover 2420-421-430234-956 Sidewalk Constr. / ADA Compliance adjust carryover BaRSAA TAX 2421-421-430240-820 2500 SPECIAL STREET 2500-421-430240-362 2500-421-430240-940 2500-421-430244-354 Transfer to Gas Tax adjust to available Equipment Maint. Parts & Supplies replacement parts for asphalt paver Machinery & Equipment adjust carryover Pavement Maintenance adjust carryover $ (30,377) $ (204,338) $ (21,209) $ (30,377) $ (225,547) $ 42,300 ($228,753) $ (307,603) $ 42,300 $ (536,356) $ (30,377) 1 BUDGET FY2026 - CHANGES TO PRELIMINARY NUMBERS (cont.) 2601 DEVELOPER TREES 2601-436-460435-3xx contract services - trees adjust to available 2866 MORNING STAR PROJECT 2866-480-470230-7** morning star project adjust carryover 2886 COMMUNITY DEVELOPMENT PROJECT 2886-480-470210-7** Redevelopment/Transfer increase transfer to close out fund 2916 DRUG ENFORCEMENT GRANT 2916-413-420140-1** Salaries and payroll costs adjust for grant award 2919 LAW ENFORCEMENT GRANT 2919-413-420140-3** Equitable sharing/forfeiture funds adjust to available 2951 OPIOID SETTLEMENT 2951-413-420140-780 Opioid Recovery Allocated Program adjust to available 2958 HAZMAT SUSTAINMENT GRANT 2958-416-420455-240 Operations adjust to available 2957 HAZMAT GRANT 2958-416-420455-240 Operations adjust to available 2974 AIRPORT MDOT GRANT 2974-430430310-9** Capital Improvements adjust carryover 2992 SAFE STREET FOR ALL GRANT 2992-480-470230-354 Planning Study adjust carryover TOTAL SPECIAL REVENUE FUNDS BUDGET FY2026 - CHANGES TO PRELIMINARY NUMBERS (cont.) CAPITAL PROJECT FUNDS 4393 AMERICAN RESCUE PLAN 4393-410-430550-950 Wtr/Swr Recovery Act pro. & L.S. #3 adjust carryover TOTAL CAPITAL PROJECT FUNDS CAPITAL PROJECT FUNDS (840) $ (153,725) $ 3,993 $ 30,000 $ 1,220 $ (21,994) $ (1,335) $ (430) $ (336,733) $ (63,311) $ 47,144 $ (1,258,651) $ (26,384) ($104,202) $ - $ (104,202) $ 2 BUDGET FY2026 - CHANGES TO PRELIMINARY NUMBERS (cont.) 5210 WATER 5210-447-430550-425 Materials - Wells/Pumps adjust carryover $ (194,243) 5210-447-430550-510 Property & Liability Insurance adjust to actual $ 25,686 5210-447-430550-935 Meter System Replacement adjust carryover $ (10,000) 5210-447-430550-951 SCADA Control System upgrade adjust carryover $ (1,764) 5210-447-430550-954 I MG Storage Tank & Well adjust carryover $ (74,549) 5210-447-430550-969 Lower Zone Reservoirs #1 &#2 adjust carryover $ (30,542) 5210-447-430551-939 Emerging Contaminants Response adjust carryover $ (376,031) 5210-447-430551-954 1 MG Storage Tank & Well adjust carryover $ (135,517) 5210-447-430550-969 Lower Zone Reservoirs #1 adjust carryover $ (2,419,566) $ 25,686 $ (3,242,212) 5211 WATER IMPACT FEES 5211-447-430555-825 Transfer to 5210 for admin reduce for estimated actual $ (15,000) 5310 SEWER 5310-454-430630-953 Sewer/Storm Shop Roof Replacement adjust carryover $ (426) 5310-455-430645-362 Equipment Maintenance adjust carryover $ 57,103 5310-455-430640-510 Property & Liability his. adjust to actual $ (9,439) 5310-455-430640-930 Biosolids Trtmnt/Disposal adjust carryover $ (112,647) 5310-455-430645-922 Fermenter Reconstruction adjust carryover $ (43,227) 5310-455-430640-940 Machinery & Equipment new appropriation $ 33,027 5310-455-430640-922 Construct New Fermenter adjust carryover $ (53,634) 5310-455-430640-933 Biosolids Trtmnt/Disposal Prj. Increase for updated construction cost $ 2,271,243 $ 2,294,831 $ (152,831) 5311 SEWER IMPACT FEE 5311-454-430635-948 Bluestone Upsize adjust carryover $ (763) 5311-454-430635-961 Lift Station #36 Improvements adjust carryover $ (300) 5311-454-430635-825 Transfer to 5310 for admin adjust to actual $ (25,000) 5311-455-430644-930 Biosolids Tretmnt-Disposal Prj. adjust carryover $ (71,378) 5311-455-430644-825 Transfer to 5310 for admin adjust to actual $ (17,500) $ (42,500) $ (72,441) 5349 STORM SEWER 5349-453-430246-972 Meridian E & N Drainage Basin adjust carryover $ (2,588) 5349-453-430247-953 Sewer/Storm Shop Roof Replacement adjust carryover $ (426) 5349-453-430247-958 Decant Facility Design/Survey/Const. adjust carryover $ (4,761) $ - $ (7,775) 5348 STORM SEWER IMPACT 5348-453-430248-825 Transfer to 5349 for admin adjust to actual $ (8,000) 5510 SOLID WASTE 5510-460-430840-510 Property & Liability his. adjust carryover 5720 AMERICAN RESCUE PLAN 5720-410-430550-922 WWTP - Fermenter Rehap adjust to match actual TOTAL ENTERPRISE FUNDS $ (10,446) $ (54,800) $ 2,189,771 $ (3,475,259) 3 BUDGET FY2026 - CHANGES TO PRELIMINARY NUMBERS (cont.) INTERNAL SERVICE FUNDS 6030 Information Tech 6030-420-410588-218 Computers - Planning & Zoning carryover $ 2,400 6030-403-410588-218 Computers - Attorney carryover $ 2,119 6030-403-410585-345 Phone - Centrex carryover $ 70,000 6030-403-410580-356 Support/Maintenance Contracts carryover $ 30,000 6030-403-410580-354 contracted labor carryover $ 25,000 $ $ 129,519 TOTAL INTERNAL SERVICE FUNDS $ $ 129,519 TOTAL BUDGET ADJUSTMENTS - 8/18/25 $ 2,423,249 $ (4,708,593) $ (26,384) TOTAL PRELIMINARY BUDGET $ 182,175,489 Carryovers were budgeted for but not spent in the prior fiscal year. These changes amounts are estimated in the preliminary budget and are to be adjusted General Fund $ 186,334 when final amounts are available at fiscal year end. Special Revenue Funds $ (1,237,891) Transfers between funds are expenditures/expenses of the fund making the Debt Service Funds transfer, and often result in the double posting of an expenditure/expense. Capital Projects $ (104,202) Transfers are also estimated in the preliminary budget and may need to Enterprise Funds $ (1,285,488) be adjusted when final revenue and expenditure/expenses are available at Internal Service $ 129,519 fiscal year end. Total changes $ (2,311,728) FINAL BUDGET $ 179,863,761 4 GENERAL FUND REVENUE AND SUMMARY B FUND: 1000 MILL VALUE $ 75,980 $ 76,762 $ 76,762 $ 71,428 ACTUAL I BUDGET ACTUAL BUDGET FY23/24 FY24/25 FY24/25 FY25/26 GENERAL FUND MILL LEVY 102.10 100.76 100.76 122.69 PROPERTY TAXES: 311100 Real Property Taxes 7,624,454 7,560,000 7,642,235 8,604,000 311200 Personal Property 111,542 100,000 66,324 100,000 312000 Penalty & Interest 16,457 10,000 16,145 10,000 SUBTOTAL $ 7,752,453 $ 7,670,000 $ 7,724,704 $ 8,714,000 LICENSES & PERMITS: 322101 Alcohol Beverage 34,125 33,000 31,799 33,000 322300 General and occupational 404 500 1,911 500 323012 Planning fees & Sign permits 399,541 275,000 315,345 290,000 323109 Zoning & Site Plan Review Fees 13,028 10,000 11,698 10,000 323200 Parade Permits 200 500 400 500 SUBTOTAL $ 447,298 $ 319,000 $ 361,153 $ 334,000 INTERGOVERNMENTAL REVENUE: 331112 KPD - Safe Street Task Force / MRVCTF 2,429 3,000 5,526 3,000 334010 Cannabis Local Option Tax 207,426 200,000 246,173 200,000 335030 MV Tax Ad Valorem 0 1,000 0 1,000 335076 Gaming Machine Permits 56,476 60,000 56,150 55,000 335110 Live Card Game, keno & bingo 1,250 1,650 1,100 1,650 335230 HB124ENTITLEMENT 3,294,232 3,423,784 3,423,784 3,460,826 SUBTOTAL $ 3,561,813 $ 3,689,434 $ 3,732,733 $ 3,721,476 CHARGES FOR SERVICES: 341020 Administrative charges 731,009 840,341 856,987 851,053 341021 Grant Admin. (Planning, finance) 20,395 30,000 11,319 20,000 341025 City Collections/other charges 12,723 10,000 7,290 10,000 342010 KPD -Public safety fees 27,514 25,000 26,884 25,000 342014 KPD -School Resource Officers 265,306 271,939 271,939 278,738 342016 KPD -Regional Training /testing Reimb. 652 5,000 0 0 342017 KID - IFSAC Training Reimb. 7,130 9,600 2,280 0 343018 Parking Permits, meters, boot removal 94,145 70,000 87,984 70,000 343019 Public Works - (Aerial Mapping - Whitefish Reimb. 0 0 0 5,000 343062 Airport fuel tax 4,954 5,000 6,021 5,000 SUBTOTAL $ 1,163,828 $ 1,266,880 $ 1,270,704 $ 1,264,791 con't. B GENERAL FUND Revenue - Page 2 ACTUAL I BUDGET ACTUAL BUDGET FY23/24 FY24/25 FY24/25 FY25/26 FINES AND FORFEITURES: 351035 Parking fines 53,588 40,000 52,645 40,000 351017 Technology fees 14,544 20,000 14,928 20,000 351000 City Court Fines & fees, admin 314,999 400,000 369,652 400,000 SUBTOTAL $ 383,131 $ 460,000 $ 437,225 $ 460,000 NHSC.REVENUE: 362015 Insurance Reimbursements 38,623 20,000 0 20,000 362020 GASB45 reimb(even yrs) 25,874 23,000 29,578 27,000 364030 Auction & misc. collections/donations 53,745 10,000 50,890 10,000 362100 Kurp - 3rd & main /eagles lot - 5yr extension 0 0 54,000 54,000 381050 TFR from Pro Housing Grant (fy26) 250,000 15,452 35,103 200,000 381060 (Operating transfer 2372-health insurance 1,130,000 1,200,000 1,200,000 1,250,000 SUBTOTAL $ 1,498,242 $ 1,268,452 $ 1,369,571 $ 1,561,000 INVESTMENT REVENUE: 371010 Interest Earnings $ 585,273 $ 350,000 $ 485,929 $ 350,000 TOTAL GENERAL REVENUE $ 15,392,038 $ 15,023,766 $ 15,382,019 $ 16,405,267 CASH JULY 1(Includes designated $) $ 3,920,126 $ 4,703,532 $ 4,703,532 $ 4,719,846 TOTAL AVAILABLE FOR BUDGET $ 19,312,164 $ 19,727,298 $ 20,085,551 $ 21,125,113 EXPENDITURES $ 14,608,632 $ 16,491,960 $ 15,365,705 $ 17,113,444 CASH CARRYOVER (year end operating) $ 4,618,233 $ 3,142,393 $ 4,634,547 $ 3,312,488 Designated for Central Garage $ $ $ $ 600,000 Assigned Court Technology fees $ 61,757 $ 69,403 $ 61,757 $ 75,639 Designated for Parking $ 23,542 $ 23,542 $ 23,542 $ 23,542 Total cash available Operating Cash Carryover % Unassigned/Undesignated $ 4,703,532 $ 3,235,338 $ 4,719,846 $ 4,011,669 30.0% 20.9% 30.1% 20.2% 2 GENERAL FUND APPROPRIATION SUMMARY # FTE's appropriated FTE's General Government 1 City Manager 2 Human Resources Mayor Council 1.33 City Clerk 3.2 Finance 5.67 Attorney 4 Municipal Court 110 Salaries $ 337,912 $ 240,121 $ 63,179 $ 147,070 $ 302,820 $ 640,628 $ 343,339 114 Comptime Buyback & severance. Def Comp. 121 Overtime & Spec. Assign PD 250 500 3,500 153 Health Insurance 30,406 28,309 55,254 20,905 41,621 74,431 62,184 155 Retirement 23,155 20,091 2,705 12,378 33,263 53,988 28,808 TOTAL PERSONAL SERVICES - 391,473 288,521 121,138 180,603 378,204 769,046 437,830 210 Supplies/office/computers/Non-capital equip 218 $4,000 500 1,600 10,000 400 1,500 10,000 4,500 220 Other supplies, safety equip, ammo 230 Supplies & fuel, chemicals, concession sup 240 Uniforms 312 Postage $17,500 320 Printing, advertising, newsletter, books $3,000 200 10,000 1,500 330 Audit, filing fees $33,325 65,000 6,200 300 340 Electricity, natural gas 345 Telephone, web, cell, radio, security cameras 1,400 520 1,000 1,500 350 Prof. Services/League/911 disp./Kidsport/Eagle $78,550 3,600 5,500 24,080 6,800 60,000 7,000 362 Maint. services, building, equip,radios,landscaping 6,600 360 Technology services (court) 40,000 370 Dues & Training, meetings, League meeting 22,500 19,000 75,175 6,500 12,000 10,000 10,000 380 Medical services 390 Other Purchased Services 10,000 500 Fixed Charges, Insurance, transfers 592,834 SUBTOTAL PURCHASED SERVICES/SUPPLIES 735,809 24,600 89,200 96,875 31,800 20,300 91,000 74,500 600 DEBT SERVICE 940 CAPITAL OUTLAY DEPARTMENT TOTAL 2026 $ 735,809 $ 416,073 $ 377,722 $ 218,013 $ 212,403 $ 398,504 $ 860,046 $ 512,330 2025 BUDGET (info Only) $ 595,631 $ 275,596 $ 392,102 $ 206,004 $ 287,894 $ 474,834 $ 837,283 $ 482,007 3 # FTE's appropriated 0.25 Public Works GENERAL FUND APPROPRIATION SUMMARY 1.45 53 25.9 3.75 0.1 101.65 Planning Community Facilities Police Fire Department Development TOTAL 110 Salaries $ 30,940 $ 89,977 $ 4,560,837 2,805,536 $ 353,938 $ 9,598 $ 9,925,895 114 Comptime Buyback & severance. Def. Comp. 58,000 28,000 $ 86,000 121 Overtime & Spec. Assign PD 500 145,000 60,000 $ 209,750 153 Health Insurance 4,561 28,673 853,648 487,901 70,795 1,726 $ 1,760,414 155 Retirement 2,559 7,490 586,851 366,412 29,791 800 $ 1,168,291 TOTAL PERSONAL SERVICES 38,060 126,640 6,204,336 3,747,849 454,523 12,123 $ 13,150,350 210 Supplies/office/computers/Non-capital equip 218 16,000 208,930 40,500 5,000 1,500 $ 304,430 220 Other supplies, safety equip, ammo 3,500 36,900 128,335 31,250 $ 199,985 230 Supplies & fuel, chemicals, concession sup 6,800 95,000 31,000 700 $ 133,500 240 Uniforms 1,700 31,500 $ 33,200 312 Postage 300 $ 17,800 320 Printing, advertising, newsletter, books 6,600 1,975 $ 23,275 330 Audit, filing fees 2,500 500 $ 107,825 340 Electricity, natural gas 107,000 $ 107,000 345 Telephone, web, cell, radio, security cameras 2,000 500 32,340 6,500 1,000 200 $ 46,960 350 Prof. Services/League/911 disp./Kidsport/Eagle 9,000 110,160 37,013 32,000 37,000 250 $ 410,953 362 Maint. services, building, equip,radios,landscaping 59,000 90,836 28,800 $ 185,236 360 Technology services (court) $ 40,000 370 Dues & Training, meetings, League meeting 5,000 71,000 35,000 9,000 3,700 $ 278,875 380 Medical services 7,000 42,000 $ 49,000 390 Other Purchased Services 2,000 $ 12,000 500 Fixed Charges, Insurance, transfers 10,206 4,000 173,774 894,771 659 $ 1,676,244 SUBTOTAL PURCHASED SERVICES/SUPPLIES 52,506 319,260 852,828 1,175,296 55,859 6,450 3,626,283 600 DEBT SERVICE 58,557 $ 58,557 940 CAPITAL OUTLAY 165,254 113,000 - $ 278,254 DEPARTMENT TOTAL 2026 $ 90,566 $ 611,155 $ 7,170,163 $ 4,981,702 $ 510,383 $ 18,573 $ 17,113,444 2025 BUDGET (info Only) $ 91,207 $ 625,572 $ 7,047,650 $ 4,674,794 $ 480,225 $ 21,161 $ 16,491,960 4 CITY OF KALISPELL Fund Description 1000 General Fund Special Revenue Funds: 2180 TAX INCREMENT - DOWNTOWN 2188 TAX INCREMENT-WESTSIDE 2210 PARKS IN LIEU OF 2215 PARKS & RECREATION FUND 2230 AMBULANCE 2273 EMERGENCY RESPONDER LEVY 2310 OLD SCHOOL TECHNOLOGY TIF 2311 OLD SCHOOL INDUSTRIAL TIF 2312 GLACIER RAIL PARK TEDD 2372 HEALTH -PERMISSIVE LEVY 2394 BUILDING CODE ENFORCEMENT 2399 IMPACT FEE FUND 2400 LIGHT MAINTENANCE 2420 GAS TAX 2421 BaRSAA 2500 SPECIAL STREET/TSS 2600 URBAN FORESTRY DISTRICT 2601 DEVELOPER'S TREES 2825 MACI GRANT 2826 2 MILE DRIVE IMPROVEMENT PROJECT 2827 4 MILE DRIVE PATH PROJECT 2880 CD LOAN REVOLVING 2881 CD LOAN REVOLVING #2 2886 CD PROJECTS 2866 MORNING STAR PROJECT GRANT 2867 GREEN ACRES PROJECT GRANT 2915 STONEGARDEN GRANT 2916 DRUG ENFORCEMENT GRANT 2917 DUI GRANT 2919 LAW ENE. BLOCK GRANT 2930 EECBG GRANT 2941 PRO HOUSING GRANT 2951 OPIOID SETTLEMENT 2953 BROWNFIELDS ASSESSMENT GRANT 2955 BROWNFIELDS LOAN REVOLVING 2956 FIRE GRANTS 2957 HAZMAT GRANT 2958 HAZMAT TEAM SUSTAINMENT GRANT 2974 AIRPORT GRANT 2992 SAFE STEET GRANT Total Special Revenue Funds I 2026 FUND POSITION Resources Anticipated Budgeted Estimated Available Revenue Expenditures Ending Balance/ Beginning Year Carry over $ 4,719,846 $ 16,405,267 $ (17,113,444) $ 4,011,669 $ 1,362,812 $ 3,328,427 $ (3,988,067) $ 703,172 $ 5,507,719 $ 2,583,276 $ (6,186,439) $ 1,904,556 $ 338,847 $ 5,000 $ (312,835) $ 31,012 $ 1,552,395 $ 3,056,255 $ (3,587,921) $ 1,020,729 $ 71,758 $ 1,571,600 $ (1,597,285) $ 46,073 $ 1,749,349 $ 4,503,046 $ (5,333,535) $ 918,860 $ 79,259 $ 90,062 $ (110,000) $ 59,321 $ 4,201 $ 4,100 $ (7,000) $ 1,301 $ 289,265 $ 204,055 $ (85,806) $ 407,514 $ 15,785 $ 1,574,840 $ (1,588,000) $ 2,625 $ 4,077,404 $ 1,350,000 $ (1,608,490) $ 3,818,914 $ 2,973,073 $ 242,500 $ (2,855,000) $ 360,573 $ 1,209,171 $ 475,700 $ (521,065) $ 1,163,806 $ 1,278,577 $ 2,661,912 $ (2,463,135) $ 1,477,354 $ 1,561,912 $ - $ (1,561,912) $ - $ 5,070,293 $ 4,034,153 $ (4,689,535) $ 4,414,911 $ 1,212,523 $ 681,350 $ (880,457) $ 1,013,416 $ 143,247 $ - $ (143,247) $ - $ 21,006 $ - $ - $ 21,006 $ 520,000 $ 3,315,000 $ (3,835,000) $ - $ 114,094 $ 667,032 $ (781,126) $ - $ 70,052 $ 34,293 $ (2,844) $ 101,501 $ 13,073 $ - $ (13,000) $ 73 $ 3,993 $ - $ (3,993) $ - $ - $ 2,071,275 $ (2,071,275) $ $ $ 750,000 $ (750,000) $ $ $ 34,000 $ (34,000) $ - $ 24,807 $ 148,486 $ (160,293) $ 13,000 $ - $ 134,631 $ (134,410) $ 221 $ 2,461 $ 103,819 $ (97,623) $ 8,657 $ - $ 75,940 $ (75,940) $ - $ - $ 1,100,000 $ (1,100,000) $ $ 29,297 $ 49,449 $ (78,746) $ $ 1,115 $ - $ (1,115) $ - $ 104,210 $ 484,435 $ (586,435) $ 2,210 $ 6,294 $ 5,000 $ (5,000) $ 6,294 $ 22,378 $ 500 $ (22,878) $ - $ - $ 125,594 $ (125,594) $ $ 57,454 $ 556,395 $ (613,849) $ $ 3,962 $ - $ (3,962) $ - $ 29,491,786 $ 36,022,125 $ (48,016,812) $ 17,497,099 1 2026 PAGE 2 - Fund Position 0 Resources Anticipated BUDGETED Estimated Available Revenue Expenditures Ending Balance/ Beginning Year Carry over Debt Service Funds: SID Revolving Fund $ 79,433 $ 2,500 $ (20,000) $ SIDEWALK & CURB WARRANTS $ 1,796 $ 38,251 $ (37,868) $ SIDS $ 33,490 $ 387,981 $ (358,268) $ WESTSIDE TIF DEBT SERVICE $ 1,059,956 $ 3,599,844 $ (2,868,375) $ Total Debt Service funds $ 1,174,675 $ 4,028,576 $ (3,284,511) $ Capital Project Funds: 4150 FIRE PUMPER $ $ 1,917,000 $ (1,917,000) $ 4290 WALK & CURB $ $ 55,000 $ (55,000) $ 4347 MORNING STAR $ $ 1,155,000 $ (1,155,000) $ 4348 GREEN ACRES $ $ 428,000 $ (428,000) $ 4393 AMERICAN RESCUE PLAN $ 48,473 $ $ (48,473) $ Total Capital Projects $ 48,473 $ 3,555,000 $ (3,603,473) $ Enterprise Funds: 5210 WATER * $ 21,716,513 $ 47,189,384 $ (53,034,236) $ 5211 WATER SYSTEM IMPACT FEES $ 1,268,812 $ 410,000 $ (1,154,873) $ 5310 SEWER/WWTP * $ 21,516,422 $ 26,854,610 $ (35,161,280) $ 5311 SEWER SYSTEM IMPACT FEES $ 6,043,422 $ 982,500 $ (5,041,283) $ 5349 STORM SEWER * $ 7,164,097 $ 2,386,328 $ (5,586,020) $ 5348 STORM SEWER SYSTEM IMPACT FEE $ 2,307,683 $ 192,000 $ (517,000) $ 5510 SOLID WASTE * $ 1,661,359 $ 3,718,328 $ (3,709,189) $ 5720 AMERICAN RESCUE PLAN $ 12,598 $ 932,602 $ (945,200) $ Total Enterprise Funds $ 61,690,906 $ 82,665,752 $ (105,149,081) $ Internal Service Funds: 6030 INFORMATION TECH. FUND * $ 597,190 $ 1,521,909 $ (1,821,271) $ 6010 CENTRAL GARAGE * $ 60,025 $ 915,525 $ (875,169) $ Total Internal Service Funds $ 657,215 $ 2,437,434 $ (2,696,440) $ TOTAL CITY BUDGET $ 97,782,901 $ 145,114,154 $ (179,863,761) $ * cash adjusted +$3,570,000 for non -cash line items (depreciation/prepaids) Component Units 2701 BUSINESS IMPROVEMENT DISTRICT $ 15,103 $ 136,800 $ (133,378) $ 785 5 TOURISM BID (pass thru fund) $ $ 1,125,000 $ (1,125,000) $ Total with Component units $ (181,122,139) 1 61,933 2,179 63,203 1,791,425 1,918,740 17,021,661 523,939 15,009,752 1,984,639 4,439,405 1,982,683 1,820,498 42,782,577 347,828 100,381 448,209 66,658,294 18,525 MONTANA A4k Form AB-72T Rev. 6-25 MONTANA DEPAPT MENT OF R E V E N U E 2025 Certified Taxable Valuation Information (15-10-202, MCA) Flathead County CITY OF KALISPELL Certified values are now available online at property.mt.gov/cov 1. 2025 Total Market Value' ....................................................................................... $ 6,720,995,583 2.2025 Total Taxable Value2...................................................................................... $ 81,386,983 3.2025 Taxable Value of Newly Taxable Property........................................................ $ 1,442,654 4.2025 Taxable Value less Incremental Taxable Value3 .............................................. $ 71,428,471 5.2025 Taxable Value of Net and Gross Proceeds4 (Class 1 and Class 2)................................................................................... $ - 6. 2025 Tax Loss from HB212.................................................................................... $ - 7. TIF Districts Tax Increment Current Taxable Base Taxable Incremental District Name Value Value Value KALISPELL C 15,898,236 7,932,918 7,965,318 KALISPELL DOWNTOWN 3,113,718 1,665,094 1,448,624 GLACIER RAIL PARKTEDE 348,493 7,057 341,436 KALISPELL H 18,743 126 18,617 KALISPELL G 184,907 390 184,517 Total Incremental Value $ 9,958,512 Preparer Holly Dale Date 7/31/2025 1Market value does not include class 1 and class 2 value 2Taxable value is calculated after abatements have been applied 3This value is the taxable value less total incremental value of all tax increment financing districts 4The taxable value of class 1 and class 2 is included in the taxable value totals For Information Purposes Only 2025 taxable value of centrally assessed property having a market value of $1 million or more, which has transferred to a different ownership in compliance with 15-10-202(2), MCA. I. Value Included in "newly taxable" property $ II. Totalvalue exclusive of "newly taxable" property $ Note Special district resolutions must be delivered to the department by the first Thursday after the first Tuesday in September, 09/04/2025, or within 30 calendar days after the date on this form 7-11-1025(8), MCA. The county clerk and recorder must provide mill levies for each taxing jurisdiction to the department by the second Monday in September, 09/08/2025, or within 30 calendar days after the date on this form 15-10- 305(1)(a), MCA. Determination of Tax Revenue and Mill Levy Limitations Section 15-10-420, MCA General fund FYE June 30, 2026 Entity Name: Auto -Calculation Reference (If completing manually Enter amounts in enter amounts as Line yellow cells instructed) (1) Enter Ad valorem tax revenue ACTUALLY assessed in the prior year (from Prior Year's form Line 17) $ 9,231,467 $ 9,231,467 (2) Add: Current year inflation adjustment @ 2.11 % $ 194,784 (3) Subtract: Ad valorem tax revenue ACTUALLY assessed in the prior year for Class 1 and 2 property, (net and gross proceeds) (from Prior Year's form Line 20)- (enter as negative) $ (4) Adjusted ad valorem tax revenue _ (1) + (2) + (3) $ 9,426,251 ENTERING TAXABLE VALUES (5) Enter'Total Taxable Value' - from Department of Revenue Certified Taxable Valuation Information form, line#2 $ 81,386,983 $ 81,386.983 (6) Subtract: 'Total Incremental Value' of all tax increment financing districts (TIF Districts) - from Department of Revenue Certified Taxable Valuation Information form, line # 7 1 (enter as negative) $ (9,958,512) $ (9,958.512) _ ( (7) (6) Taxable value per mill (after adjustment for removal of TIF per mill incremental district value) $ 71,428.471 (8) Subtract: 'Total Value of Newly Taxable Property' - from Department of Revenue Certified Taxable Valuation Information form, line # 3 (enter as negative) $ (1,442,654) $ (1,442.654) (9) Subtract: 'Taxable Value of Net and Gross Proceeds, (Class 1 & 2 properties)' - from Department of Revenue Certified Taxable Valuation Information form, line # 5 (enter as negative) $ (10) _ (7) + (8) + (9) Adjusted Taxable value per mill $ 69,985.817 (11) =(4) / (10) CURRENT YEAR calculated mill levy 134.69 (12) =(7)x(11) CURRENT YEAR calculated ad valorem tax revenue $ 9,620,701 CURRENT YEAR AUTHORIZED LEVY/ASSESSMENT (13) Enter total number of carry forward mills from prior year (from Prior Year's form Line 22) 10.00 10.00 (14) =(11) + (13) Total current year authorized mill le y levy, including Prior Years' carry forward mills 144.69 (15) =(7) x (14) Total current year authorized ad valorem tax revenue assessment $ 10,334,985 CURRENT YEAR ACTUALLY LEVIED/ASSESSED Enter number of mills actually levied in current year (16) (Number should equal total non -voted mills, which includes the number of carry forward mills, actually imposed per the final approved current year budget document. Do Not include voted or permissive mills imposed in the current year.) 143.69 143.69 (17) =(7) x (16) Total ad valorem tax revenue actually assessed in current year $ 10,263,557 RECAPITULATION OF ACTUAL: (18) _ (10) x (16) Ad valorem tax revenue actually assessed $ 10,056,262 (19) Ad valorem tax revenue actually assessed for newly taxable property $ 207,295 (20) Ad valorem tax revenue actually assessed for Class 1 & 2 properties (net -gross proceeds) $ (21) =(18) + (19) + (20) Total ad valorem tax revenue actually assessed in current year $ 10,263,557 (22) Total carry forward mills that may be levied in a subsequent year =(14) - (16) (Number should be equal to or greater than zero. A (negative) number indicates an over levy.) 1.00 Mill Levy - 5 year Comparison FY2022 FY2023 FY2024 FY2025 FY2026 GENERAL FUND 116.00 123.43 102.10 100.76 122.69 PARKS -designated mills 22.10 22.00 18.50 19.50 21.00 138.10 145.43 120.60 120.26 143.69 -Permissive levies: G. O. BOND, series 2012 refunding bonds 3.50 0.00 0.00 0.00 0.00 TOTAL CITY LEVY 141.60 145.43 120.60 120.26 143.69 Health Ins. levy -premium increases 17.50 18.15 14.65 14.97 17.01 Parks health 2.00 2.00 1.50 1.56 1.82 Emergency Responder health 0.00 0.00 0.00 2.47 2.92 TOTAL CITY LEVY w/PERMISSIVE 161.10 165.58 136.75 139.26 165.44 Dollar Based Levy -Dedicated levies: Emergency Responder Levy (Fy26 Dollar Based) 0.00 0.00 0.00 58.43 $ 4,480,259 "The legislature provided for the increase in mills necessary to pay higher health insurance premiums. The Emergency Responder Levy is voter approved to levy up to sixty and nine tenths additional mills per year for the purpose of funding Emergency Response. FY26 The Emergency is now set as a dollar -based levy, approved by voters to fund Emergency response. The county will convert this dollar amount to a mill levy for collection based on the taxable value each year. Other Government levies: City/County Health Fund 5.99 4.99 0.00 0.00 (Administered by the County) Business Improvement District Levy (plus assessment at .015/sq.ft., plus $100/parcel) 22.5 22.5 22.5 22.5 22.5 Step A: Input in Yellow Cells (1) (2) (3) Ste p Determination of Permissive Levy for Group Benefits Section 15-10-420(9), MCA FYE June 30, 2026 City of Kalispell BASE Fiscal Year 2000 Budgeting Fori 2026 (4) I Taxable Value less Incremental Taxable Value of General Fund Step C: Calculation of: (5) BASE Contribution (6) Increase in Employer Contribution from BASE Year Step D: Must be deposited into Fund 2372 Line 1: BASE Year = Total Actual # of Annual Employer Contribution for Employees the Group Benefits in BASE Year Local Government Made (1) or Will Line #2: BUDGET Year: Total Annual Average Monthly Make (2) Employer Employer Contribution For Group Employer Contributions to Benefits for Eligible Workers Contribution per Group Benefits for lo Empyed on July 1st Employee on July 1st $659,062.00 $395.12 139 $2,512,218.00 $1,350.65 155 Increase from BASE Year (Decreases will be reported as zero)l $955.53 16 Fiscal I 2026 Year 2026 I Certified Taxable Valuation $71,428,471.00 Fiscal Transition clause per L2009 SB 491, Section 4, has expired. Year Choice #1 2026 (7) PER sec. 4, Ch 412, L.2009 - (1)(b) (6) Increase in Employer (5) Contribution BASE Contribution from BASE Year $734,925.25 $1,777,292.75 Fund #2372 Permissive Medical Levy Fund 2372 Permissive Levy # of Mills Allowed to Levy (Not Subject to 15-10-420) 24.88 Fund 2372 Total Generated Tax Value Per Mill Revenue $71,428.47 $1,777,292.75