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E1. 05-11-26 Work Session MinutesCITY COUNCIL DRAFT WORK SESSION MINUTES KALISPELL May 11, 2026, at 6:00 p.m. City Hall Council Chambers, 201 First Avenue East Video of this meeting with time stamped minutes can be found at: hlt 2s://www.kalispell.com/MeetingVideos. A. CALL TO ORDER Mayor Hunter called the meeting to order at 6 p.m. B. ROLL CALL Council Member - Kari Gabriel: Present via video conference Council Member - Sam Nunnally: Present Council Member - Jed Fisher: Present Council Member - Sid Daoud: Present via video conference Mayoryan Hunter: Present Council Member - Wes Walker: Present Council Member - Lisa Blank: Present Council Member - Kyle Waterman: Present Council Member - Dustin Leftridge: Present Staff present included City Manager Jarod Nygren, City Clerk & Communications Manager Aimee Brunckhorst, Director of Development Services P.J. Sorensen, Treasurer Carrie Jones, Building Official Sean McRae, Director of Public Works Susie Turner, Public Works Budget Resource Manager Terri Loudermilk, Deputy Public Works Director Keith Haskins, Utility Superintendent Joe Schrader, Public Works Office Manager Jana Purdy, and Road & Fleet Superintendent Gene Come. C. DISCUSSION Fiscal Year 2026-2027 Budget Review hllps://www.kalispell.com/Archive.aspx?AMID=38 a. General Fund Administrative Departments b. Development Services Department c. Public Works 00:02:00 City Manager Jarod Nygren began reviewing the budget, beginning with a general overview and highlights. Bold text corresponds to particular sections. 00:07:53 Manager Nygren explained state legislation property tax changes. 00:10:27 Fiscal Policy — Reserve and 10-year Forecast - Page 7 Page 1 of 14 Kalispell City Council Minutes, May 11, 2026 00:11:14 Relevant Topics Facing the City of Kalispell - Page 8 Public Safety T.and TT -,,- Housing Urban Renewal 00:14:26 General Fund 00:14:23 Specific Highlights of the FY2027 Proposed Budget — Page 10 00:16:34 Breakdown of General Fund Revenue and Expenditures - Page 12 00:17:22 Personnel 00:18:03 Mill Levy — 5 Year Comparison Table — Page 26 00:19:05 Debt Services 00:19:23 Council Member Daoud asked questions about the Central Garage Services Transfers. 00:20:15 General Fund Balance — Page 31 00:20:49 General Fund Revenue and Expenditures - Page 38 00:22:12 City Manager 00:22:32 Human Resources - Page 46 00:23:03 Mayor / Council - Page 48 00:23:58 Council Member Waterman asked about increases within dues. 00:24:20 Manager Nygren spoke regarding the benefits of the Montana League of Cities and Towns. 00:25:30 Mayor Hunter spoke about the effectiveness of the League. 00:26:09 Council Member Fisher provided discussion in favor of adjusting council salaries explaining why. 00:30:12 Council Member Walker provided discussion in favor of adjusting council salaries and asked about timing. 00:31:11 Council Member Fisher provided further discussion. Page 2 of 14 Kalispell City Council Minutes, May 11, 2026 00:31:49 Council Member Gabriel provided discussion about the history of the council salary adjustment discussion. 00:33:44 Council Member Fisher provided further discussion. 00:34:31 Council Member Nunnally provided discussion and asked to see the various factors that would go into looking at a market rate adjustment. 00:36:08 Council Member Waterman provided discussion in support of a council salary adjustment. 00:37:11 Council Member Leftridge provided discussion in support of a council salary adjustment and spoke regarding donating his to Parks and Recreation scholarships. 00:38:23 Council Member Daoud provided discussion in opposition of a council salary adjustment and talked about the filing fee. 00:40:00 Council Member Fisher provided further discussion. 00:41:34 Council Member Blank provided discussion regarding council salary adjustment and asked questions and provided further discussion in favor of council salary adjustments. 00:44:34 Council Member Gabriel asked questions about the ability to donate their salaries back. 00:45:25 Mayor Hunter provided discussion in favor of a council salary adjustment. 00:48:37 Council Member Waterman asked about the chairs within the office supply budget. 00:49:32 Council Member Fisher provided further discussion about council salary adjustment. 00:52:14 City Clerk 00:52:29 Finance 00:52:34 Council Member Leftridge asked about contract services within finance. 00:53:31 Council Member Nunnally provided discussion about the possibility of funding a public information officer and the importance of increasing communication. 00:55:05 Council Member Walker provided discussion about funding further communication efforts and the importance of increasing communication. 00:55:55 Council Member Gabriel provided discussion regarding the possibility of funding a public information officer and the importance of increasing communication. 00:57:20 Council Member Fisher provided discussion regarding funding a public information officer and determining how much time is spent on communication efforts and the importance of increasing communication. Page 3 of 14 Kalispell City Council Minutes, May 11, 2026 00:58:55 Council Member Waterman provided discussion regarding funding a public information officer and the importance of increasing communication. 01:01:09 Council Member Blank provided discussion about hearing from constituents about the need for a compliance officer, and the importance of consistent communication. 01:01:56 Mayor Hunter asked staff to address the compliance officer idea and what the budget looks like in terms of additional staff hires. 01:02:07 City Manager Nygren spoke regarding communication across the organization and having future discussions on staffing priorities. 01:03:45 Mayor Hunter provided discussion about the importance of communication and the time that staff are spending, and looking at priorities related to new staff hires. 01:05:23 Treasurer Carrie Jones spoke regarding a finance line -item question that came up earlier in the meeting. 01:06:04 Council Member Nunnally asked what Grizzley Security Services are utilized for. 01:06:32 City Attorney — Page 54 01:06:43 Mayor Hunter asked about a software build -out within the City Attorney's budget. 01:07:55 Council Member Walker, Leftridge and Daoud asked questions and provided discussion about the software. 01:08:57 Municipal Court 01:09:12 Council Member Daoud asked where the bailiff position is listed within the budget and confirmed that it is a state mandated position. 01:10:12 Public Works Administration — Page 58 01:10:21 Mayor Hunter asked about the costs of aerial imagery. 01:10:57 Manager Nygren explained the GIS (Geographic Information System) features that are accessible to the public. 01:11:11 Council Member Nunnally asked about a discrepancy between the City and County maps as it relates to a fire service area and which is the map of record. 01:12:14 Council Member Nunnally explained the discrepancy that came up regarding roads. 01:13:04 Manager Nygren explained annexation records are sent to the County. 01:14:05 City Facilities — Page 61 Page 4 of 14 Kalispell City Council Minutes, May 11, 2026 Manager Nygren talked about expanded janitorial service needs and building improvement budget highlights. 01:14:31 Manager Nygren explained why the chiller at the Public Safety Building may be brought forward at final budget. 01:15:38 Planning Department 01:16:14 Council Member Blank asked about the increased cost of gas and that line item across the organization and the possibility of electric vehicles. 01:16:39 Mayor Hunter provided discussion about increasing gas costs, and concerns that the budget may not reflect that. He talked about past discussions related to electric vehicles, and problems that the Police hybrid vehicles had. 01:17:42 City Manager Nygren talked about the possibility of funding a fleet study if Council chose to prioritize looking into electric vehicles. 01:18:29 Mayor Hunter talked about considering how charging stations may factor. 01:18:51 Council Member Daoud talked about past discussions related to electric vehicles and the difficulties with servicing them and the effects of the Montana climate. 01:19:39 Mayor Hunter provided discussion about his experiences with owning an electric vehicle. 01:20:18 Community Development — Page 71 Manager Nygren explained how the Community Development Manager is funded. 01:20:55 Community Development — Revolving Loan Funds — Page 142 Manager Nygren explained the history and current status of these funds. 01:22:37 Morning Star and Green Acres Project Grant Funds — Page 144 Manager Nygren spoke regarding these loans as pass -through funds and the status of this community project. 01:23:49 Pro Housing Grant — Page 146 01:24:15 Development Services Director P.J. Sorensen provided background and an update on the pro housing grant. 01:25:47 City Manager Nygren spoke regarding the future plans for the grant and study once the grant comes through. 01:26:35 Council Member Leftridge asked further questions about the extent of the grant reimbursement concerns. 01:27:17 Council Member Leftridge asked about transfers to the water and sewer general fund. 01:27:29 Manager Nygren talked about grant detail concerns further. Page 5 of 14 Kalispell City Council Minutes, May 11, 2026 01:28:41 Public Works Director Susie Turner provided information that the transfers to the water and sewer fund that supported facility plan updates. Manager Nygren further spoke regarding staff time spent and reimbursement expectations. 01:29:44 EPA Brownfields Assessment Grant - Page 147 01:30:15 EPA Brownfields Revolving Loan Fund Manager Nygren explained that the public can apply for these loan fiends for specific projects. 01:30:57 Airport MDOT Grant — Page 149 01:31:23 Building Department Manager Nygren explained a state law change related to the amount of revenue reserves. 01:32:45 Special Revenue Funds 01:33:03 Manager Nygren explained the purpose of Tax Increment Finance Districts and how they work. 01:34:48 Council Member Waterman asked about fund anticipation in TIF Districts related to the state tax changes. 01:35:10 Manager Nygren spoke regarding state tax law changes and how that affected TIF District funds. 01:35:52 Council Member Nunnally spoke regarding state legislation expectations. 01:36:13 Council Member Leftridge asked for further clarification about how TIF Districts are funded. 01:37:09 Council Member Leftridge asked about redevelopment expenditures within the Downtown TIF. 01:38:04 Mayor Hunter explained how council used district funds to help pay for past redevelopment projects. 01:38:52 Manager Nygren used the 3rd Street East street project as an example. 01:39:14 Council Member Blank asked how those projects are determined. 01:39:29 City Manager Nygren explained how TIF projects can be brought forth and the process they go through. 01:40:15 Manager Nygren explained The Business Improvement District funds allocated to help downtown businesses apply for funds towards engineering and architectural services for facade improvements. Page 6 of 14 Kalispell City Council Minutes, May 11, 2026 01:40:32 Council Member Blank asked about the possibility of TIF funds to be used for tree infrastructure improvements. 01:41:06 West Side Tax Increment Finance District 01:41:18 Manager Nygren explained a debt service fund transfer for a bond. 01:42:03 Council Member Daoud provided discussion about TIF funds. 01:43:32 Old School Station Manager Nygren explained these funds will sunset. 01:44:07 Glacier Rail Park TEDD Manager Nygren explained this item. 01:45:55 Public Works Public Works Director Susie Turner began reviewing the Public Works Funds and explaining how they monitor funds and ensure policies are met. 01:48:14 Light Maintenance Director Turner explained this budget has a new full-time employee to support traffic, signs and signals workload, and street routes during plowing. 01:49:57 Director Turner explained a potential increase expected in electricity costs for municipal lighting. 01:50:56 Mayor Hunter asked about dimmable, LED programmable street lighting. 01:51:35 Director Turner explained most of the lights are owned and operated by Flathead Electric and the municipality pays a flat municipal rate. She explained that the lights that are city owned have a photocell and are LED. 01:52:55 Director Turner spoke regarding Flathead Electric standards. Council Member Walker asked about Dark Sky lighting compliance. 01:53:30 Mayor Hunter provided discussion about luminosity measurements related to Dark Sky lighting. 01:54:47 Director Turner pointed out changes are usually listed in the budget highlights section of funds. 01:54:14 Gas Tax — Page 104 Director Turner explained expected revenue from BARSAA and the Gas Tax which has been combined. She spoke regarding pavement and restoration projects and street painting cost increases. 01:57:43 Council Member Nunnally acknowledged Representative Frank Garner for his work on the Gas Tax and the street projects the city is able to do because of those funds. Page 7 of 14 Kalispell City Council Minutes, May 11, 2026 01:58:17 Council Member Leftridge asked about the allocation on the sidewalk funds and failing sidewalks throughout the community. 01:59:01 Director Turner explained there is participation in the 50150 sidewalk fund, and 3-4 blocks are replaced each year as the season allows. 02:00:09 Director Turner explained the warranted fund related to sidewalks. 02:00:57 Mayor Hunter provided discussion regarding the sidewalk 50150 fund, and his views on sidewalk policies. 02:02:19 BaRSAA Director Turner explained why this fund will be eliminated next year as it has been rolled into the gas tax. 02:02:55 Special Street Maintenance — Page 108 Director Turner explained a 7% increase adopted as part of the rate schedule incorporated into the revenue estimates. She explained a line item for pavement replacement and designations for equipment replacement. 02:03:55 Special Street Maintenance Expenditures Director Turner explained what this fund supports. Director Turner explained the computer equipment, software and supply line item and how certain items such as software are applied proportionally across the departments that use them. 02:05:56 Director Turner explained how the gas and oil line items are determined. 02:08:05 Council Member Blank confirmed that unexpected costs would come from reserves. 02:09:36 Council Member Nunnally talked about hearing from a Ward 2 constituent who previously built roads and talks about the great work the street department does. 02:10:30 Central Garage Transfer 02:10:49 Council Member Waterman asked about 2nd Street construction detours and subsequent issues and the possibility of temporary speed bumps. 02:11:44 Director Turner spoke regarding potential adjustments to construction control and re- routing during the larger Woodland project, with bids opening in June with construction most likely next year. 02:12:29 Council Member Waterman talked further about construction control and thanked Director Turner for addressing related public comment received. 02:13:18 Manager Nygren asked about traffic control budgeting. 02:13:33 Director Turner spoke regarding traffic control as an element of a particular project. Page 8 of 14 Kalispell City Council Minutes, May 11, 2026 02:14:32 Director Turner explained what a property procurement line item is for. 02:15:42 Traffic Sign and Signals Director Turner highlighted that painting materials have increased and they would also like to accomplish more. 02:16:28 Director Turner explained a lean-to addition planned on the sand shed. 02:17:21 MT. Air & Congestion Grant Director Turner explained this grant and the required match set aside for when we are able to secure this grant. 02:18:30 Council Member Leftridge asked about funding for sidewalks and the reasoning for leaving the fund allocation where it is. 02:19:45 2 Mile Drive Improvement Project Director Turner explained $3.3 million was awarded for this project, that the consultant is surveying the project right now, and what this project will entail. 02:21:24 Sidewalk and Curb Construction 02:21:37 Director Turner explained the deferred payment mechanism for homeowners utilizing the 50150 Sidewalk Program. 02:22:51 Manager Nygren spoke regarding past discussions related to the possibility of a sidewalk and trails assessment or special improvement district. 02:24:11 Council Member Nunnally and Mayor Hunter provided discussion 02:24:38 Council member Waterman talked about the sidewalks that utilized TIF monies. 02:25:09 Council Member Leftridge asked about sidewalk repair costs for homeowners and then provided discussion about equity. 02:26:42 Water Funds Director Turner explained equipment replacements, and meter replacement fees. She explained council will be going through a rate review after the facility plans are completed. 02:28:15 Director Turner explained bonded debt in this fund related to large capital projects and expected completion dates for some of those projects. Director Turner spoke regarding the costs of capital projects. 02:31:07 Water Operations — Page 171 02:31:43 Director Turner explained how the electricity costs were determined and increased. 02:32:19 Mayor Hunter asked questions about the facility plan costs within line item 357 and grant reimbursement. Page 9 of 14 Kalispell City Council Minutes, May 11, 2026 Director Turner spoke regarding how valuable the facility plans are and why. 02:36:27 Director Turner explained hydrant cost increases. 02:37:17 Council Member Daoud, Blank, and Mayor Hunter asked questions about hydrants and related costs. 02:38:44 Capital Projects — Water — Page 173 Director Turner spoke regarding carrying ongoing capital projects from year to year until they are complete. 02:40:07 Director Turner talked about equipment orders and replacements. 02:40:40 Director Turner explained SCADA System updating and improvements. 02:41:39 Director Turner talked about how meter pits for the Lead Service Line replacement project are being funded. Director Turner spoke regarding specific projects. 02:44:03 Director Turner provided an update on the Lead Service Line Replacement Project. 02:44:28 Mayor Hunter asked whether the city is expecting any lead service line replacement funding changes. 02:45:11 Water Operations — Page 174 Water Billing Director Turner explained an additional full-time employee has been added to support utility billing, how that is funded and was planned. 02:46:39 Water System Impact Fees — Page 178 Director Turner explained contract main upsizes and their benefits. 02:48:06 Director Turner explained new meters come out of this fund as well as debt service projects associated with growth. 02:48:42 Sewer Department — Page 180 Director Turner explained decisions will be coming before council soon related to capital improvement projects at the wastewater treatment plan. 02:50:54 Sewer Collection 02:51:09 Mayor Hunter asked questions about the natural gas line item. Director Turner spoke to generator utilization and increases in natural gas costs. 02:52:36 Council Member Daoud asked about recent power outages and impacts. Page 10 of 14 Kalispell City Council Minutes, May 11, 2026 Director Turner explained power outage issues at the wastewater treatment plant and the need for a second generator there. Council and staff talked further about power outage issues. 02:55:16 City Manager Nygren explained the city was recently notified of an award of $300,000 from the Montana Resiliency Grant for the public safety building. 02:56:09 Director Turner explained additional funds for new wet well mixers. 02:56:58 Capital Projects Director Turner talked about carry-over projects that continue and then talked about new proj ects. 02:57:51 Director Turner spoke regarding SCADA update costs. 02:58:36 Director Turner explained manhole rehab and repair costs. 02:59:21 Director Turner continued to talk about ongoing projects. 02:59:56 Wastewater Treatment Plant — Page 184 Director Turner referred to a significant computer replacement and consolidation. 03:02:20 Director Turner spoke regarding electricity cost increases. 03:02:51 Director Turner explained 354 and 355 line items related to biosolid disposal. 03:04:08 Wastewater Treatment Plant — Capital Projects Director Turner spoke in detail regarding capital improvement project carry-overs and related DEQ TMDL permit requirement direction anticipated in the future which will dictate what projects will need to be done. 03:07:14 Director Turner spoke regarding an effluent screen project and improvements to the dewatering system. 03:08:07 Director Turner talked about new projects budgeted for at the plant. 03:09:32 Director Turner explained the Equipment Maintenance and Machinery & Equipment line items. 03:11:08 Lab Services 03:11:47 Sewer System Impact Fees — Page 194 Director Turner explained how these are broken out, and then explained upsizing, and lift station 36 participation. Director Turner explained the capital projects that have a portion of funding coming from impact fees due to growth and then explained the debt transfer line item. Page 11 of 14 Kalispell City Council Minutes, May 11, 2026 03:14:15 Storm Sewer — Page 196 Director Turner explained why storm water assessments will need to be reviewed when impact fees are reviewed. 03:17:22 Director Turner explained the need to purchase a jet nozzle and where funds are budgeted. 03:18:57 Director Turner explained the need to purchase a new sweeper and where funds are budgeted. She then explained the Grandview Rehab and Repair Project. 03:20:26 Director Turner explained the 3rd Avenue East project and the portion related to storm water. Director Turner explained the need to purchase a Vac Truck. 03:22:18 Storm Sewer System (Water) Impact Fees — Page 203 Director Turner explained expenditures out of impact fees related to upsizing and a debt payment. 03:23:42 Solid Waste — Page 205 03:23:52 Mayor Hunter asked about the carry over fund narrative. (Staff determined that the numbers were mistaken in the narrative and will be corrected.) Director Turner explained the master plan replacement schedule is being followed. She talked about why gas and oil has increased. She explained the contract services and consultant line item. 03:29:07 Solid Waste Capital — Page 209 Director Turner talked about the equipment storage facility planned and purchase of a new side arm scheduled replacement. A new side arm to support growth is not anticipated until 2028. 03:30:40 Central Garage — Page 212 Director Turner explained this is an internal transfer fund. She explained the increase to the computer line item, and line item 229 to purchase a new tool. She explained an increase in the motor vehicle parts. She talked about how tire requests are reviewed and costs determined. She explained contract service repairs that cannot be done internally. Director Turner explained the difficulties with working on electric vehicles and the frustrations related to getting them serviced. 03:35:45 Street Superintendent Gene Come spoke regarding the multiple issues that staff had with the hybrid electrical vehicles that were purchased by the Police Department. 03:36:55 Mayor Hunter talked regarding his experiences owning a hybrid vehicle. 03:37:34 Manager Nygren spoke regarding the process for determining whether fleet changes would be appropriate. Page 12 of 14 Kalispell City Council Minutes, May 11, 2026 03:38:11 Council Member Blank spoke regarding proprietary repair issues she has experienced at Flathead Valley Community College. 03:38:32 City Manager Nygren announced council will discuss the budget further on Wednesday at 6 p.m. D. PUBLIC COMMENT Mayor Hunter opened public comments on this item and for general public comments. Walter Rountree, Public Comment Rountree of 5th Avenue East spoke regarding parking and said that any solution should consider incentivizing the people who move their cars every 2 hours to park elsewhere. He then spoke regarding the solid waste expenses and the carry-over amounts. Public comment received in writing to the Mayor and Council can be seen at www.kalis]2ell.com/publiccomment. Seeing no further comments, Mayor Hunter closed public comment. E. CITY MANAGER, COUNCIL, AND MAYOR REPORTS 03:41:40 Council Member Daoud spoke regarding the importance of budget work sessions and thanked everyone for their attention. 03:42:07 Council Member Gabriel thanked staff for the work that went into the budget. 03:42:25 Mayor Hunter pointed out that the council receives under $5,000 per year, and the Mayor receives around $9,000. F. ADJOURNMENT Mayor Hunter adjourned the meeting at 9:43 p.m. Aimee Brunckhorst, City Clerk Minutes approved on UPCOMING SCHEDULE Second Budget Work Session — May 13, 2026, at 6:00 p.m. — Council Chambers Next Regular Meeting — May 18, 2026, at 7:00 p.m. — Council Chambers City Offices Closed — May 25, 2026 — Memorial Day Holiday Next Work Session — TUESDAY, May 26, 2026, at 7:00 p.m. — Council Chambers PARTICIPATION Page 13 of 14 Kalispell City Council Minutes, May 11, 2026 When addressing council please give your name and address, see the last page of the agenda for the proper manner of addressing the council, and limit comments to three minutes. Comments can also be emailed to publiccommentkkalispell.com. To provide public comment and watch live, remotely, join the video conference through zoom at: https://www.kalispell.com/AgendaCenter/ViewFile/Agenda/_05122026-1440?html=true for the Monday, May 11, 2026, meeting and at https://us02web.zoom.us/webinar/register/WN_IOE4C8oORVS3zXq-ldOy8w for the Wednesday, May 13, 2026, meeting. Raise your virtual hand to indicate you want to provide comment. Due to occasional technical difficulties, the most reliable way to participate is through in -person attendance. Electronic means are not guaranteed. The City does not discriminate on the basis of disability in its programs, services, activities, and employment practices. Auxiliary aids are available. For questions about disability accommodation please contact the City Clerk at 406-758-7756. Page 14 of 14