Strong Towns Finance Decoder - Land Use Plan Public Comment from Nathan DuganFrom:Nathan Dugan
To:Kalispell Meetings Public Comment
Subject:EXTERNAL Strong Towns Finance Decoder - Land Use Plan Public Comment
Date:Monday, February 23, 2026 1:20:07 PM
Attachments:Kalispell - Strong Towns Finance Decoder Worksheet - Google Sheets.pdf
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Good afternoon,
I ran the city's financial reports through Strong Towns' Finance Decoder and I wanted to
provide the results to the City Council for their consideration as they continue to work on the
land use plan. The results are attached to this email.
Will they be able to have a copy of this tonight, or have I missed the deadline?
--
Nathan Dugan Executive Director
Livable Flathead
(406) 209-8428 | nathan@livableflathead.org
Livable Flathead works to direct growth in the Flathead Valley proactively, using evidence-
based policies to foster economic opportunities, interconnected transportation, and abundant
housing options for all.
livableflathead.org
What it is:
What it tells you:
What the trend shows:
The difference between the city’s financial assets (like
cash and receivables) and its liabiliƟes (like debt and
pensions). This is the cumulaƟve surplus/deficit that
the city has accumulated through successive budget
cycles.
A posiƟve net financial posiƟon suggests the city has
more financial assets than obligaƟons and is in a
beƩer posiƟon to weather downturns, invest in
infrastructure, or respond to emergencies without
resorƟng to borrowing or service cuts. If this number
is negaƟve, the city has spent more than it has saved
and is relying on future revenue to pay past bills.
A downward trend means the city is growing more
reliant on borrowing or deferring payments. An
upward trend means it’s becoming more financially
secure.
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Net Financial Position (In Thousands of Dollars)
What it is:
What it tells you:
What the trend shows:
The city’s financial assets—such as cash, receivables,
and other short-term holdings—divided by its total
liabiliƟes. This is a different way of presenƟng the Net
Financial PosiƟon.
This raƟo shows whether the city has enough liquid
financial resources to cover what it owes. A raƟo
below 1 means it would not be able to pay off its
liabiliƟes using only its financial assets, which is a sign
of financial stress.
A rising trend means the city is improving its financial
buffer. A falling trend suggests the city is becoming
less able to handle its obligaƟons without borrowing
or cuƫng services.
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0
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0.4
0.6
0.8
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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Financial Assets-to-Total Liabilities
What it is:
What it tells you:
What the trend shows:
The value of all the city’s assets (including
infrastructure) divided by its total liabiliƟes.
AraƟo above 1 means the city owns more than it
owes (solvent). Below 1 means it owes more than it
owns (insolvent).
A downward trend means the city is becoming less
solvent. An upward trend shows improving financial
resilience.
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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Assets-to-Total Liabilities
What it is:
What it tells you:
What the trend shows:
Note:
The total liabiliƟes the city owes compared to how
much revenue it collects in a year.
This shows how many years of income it would take to
pay off all debts if every dollar went to debt
repayment.
If the raƟo is rising, debt is growing faster than
income—this is unsustainable. If it’s falling, the city is
gaining control of its obligaƟons.
If this graph shows a flat line at 0 aŌer inpuƫng your
city’s numbers, this means that the city has a net
surplus (no net debt).
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0.4
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net Debt-to-Total Revenues
What it is:
What it tells you:
What the trend shows:
The percentage of annual revenue spent on interest
payments.
This shows how much of the budget is consumed by
past borrowing. The higher the percentage, the less
room for services, maintenance, or investment.
An increasing trend limits future choices and can
crowd out basic services. A decreasing trend improves
flexibility and budget health.
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0%
1%
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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Interest-to-Total Revenues
What it is:
What it tells you:
What the trend shows:
The current value of the city’s physical assets
compared to their original cost.
This indicates how well the city is maintaining its
infrastructure. A low value means assets are aging and
wearing out.
A declining trend means the city is falling behind on
maintenance. A stable or rising trend suggests it is
keeping up.
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0%
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60%
80%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net Book Value-to-Cost of Tangible Capital Assets
What it is:
What it tells you:
What the trend shows:
The share of the city’s income that comes from state
or federal aid.
High dependency on outside funding makes the city
vulnerable to poliƟcal or economic shiŌs beyond its
control.
If the trend is rising, the city is becoming more
dependent on outside help. If it’s falling, the city is
strengthening its local revenue base.
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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Government Transfers-to-Total Revenue