6. Resolution 5507 - URA Recommendation for West Side TIF Distribution----- ---- ---- - ----
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Q.
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FOR BUS INES S. FOR LIF E. 01VTA A ..
MEMORANDUM
TO: Mayor Tammi Fisher
And Kalispell City Council
FROM: Jane Howington, City Manager
Wade Elder, Revolving Loan Fund Manager
Cityf o Kalispell
Urban Renewal Agency
2�1 1 st Avenue East
Kalispell, MT 59901
Phone: 406.758.7738
Fax: 406.758.7758
SUBJECT: Kalispell Public Schools Request for west Side TIF Distribution.
MEETING BATE: July 5, 2011 - Regular Council Meeting.
BAC`.KGROUND: The west Side TIF was established on 03/ 17/97 through the passage of
Resolution 4309 and Ordinance 1259. It established the base year for calculating the tax
increment as 01 /01 /97. The TIF is set to sunset on 03/ 17/ 12. The amount of funds in the west
Side TIF account as of 06/29/11 was $2,235,257.24 and the projected ending balance (06/30/12)
in the proposed FY 2012 is $2,553,754. The projected revenues from the proposed FY 2012
budget are $409,168.
The City of Kalispell received a letter from the Kalispell Public Schools dated March 28, 2011 in
which they requested an early distribution from the West Side TIF District. There were several
discussions with the School District and City staff on this. In these meetings it was discussed
what needs the School District has. The major needs identified are for repairs to the Flathead
High School's (FHS) half Boor areas. This is an item, as indicated by the City's Fire Chief, as
the most crucial and an item the Fire Department has been working with the School District to
get corrected. The improvements to the FHS half floor area are estimated to be $151,487-00.
The URA met on June 22, 2011 to consider the School District's request. At the meeting we
heard from Darlene Schottle, Superintendent of Schools, Tom Heinecke, Engineer for the School
District and Todd Watkins, Operations Director for the School District of the need for the early
distribution from the west Side TIF District. Discussion centered on the funds to be used by the
School District for the items identified in the "Life Safety/Quality Facility Needs" list for the
FHS half floor. There was discussion that the distribution request from the School District is only
a part of the distribution and there must be a distribution to not only to the School District but
also to all entities (as identified in the attached "West Side TIF Distribution" list). The URA
Committee approved a motion in a 3 I 1 vote to recommend City Council approval of an early
distribution from the west Side TIF District of $152,000.00 for the Kalispell School District's
portion with the City staff being charged to work the numbers back to determine how big of a
distribution would be necessary, however a total distribution was not to exceed $1,000,000.00.
An e-mail was sent to all URA Committee members and the School District on June 27, 2011 in
which the "West Side TIF Distribution" of $465,000.00 (rounded up to the nearest $5,000) was
included showing the School District receiving $153,399.93.
RECOMMENDATION: A motion for an early distribution of $465,000.00 from.. the West
Side TIF District to all the entities that are identified in the attached "West Side TIC'
Distribution" list would be in order.
FISCAL IMPACTS: A reduction of the Nest Side TIF District fund of $465,000.00.
2
INCREMENTA RESOLUTION TO AUTHORIZE A CASH DISTRIBUTION FROM THE WEST SIDE
TAX 1'
DISTRICT
BODIES.
WHEREAS, on the 17t' day of March, 1997 the City of Kalispell established the West Side Tax
Increment Financing (TIF) District with Ordinance No. 1259 and Resolution No.
4309 pursuant to the authority granted the City under MCA Title 7, Chapter 15, fart
42; and
WHEREAS,, the city received a request from the Kalispell Public Schools, one of the contributing
taxing bodies, for a distribution from the West Side TIF account in the sure of
approximately $150,000 to address the human safety needs of the Flathead Nigh
School identified and required by the Kalispell City Fire Department; and
WHEREAS, pursuant to MCA. 7-15-429.1 the city may agree to remit to other contributing taxing
bodies such portions of the tax increment accrued that are not currently required for
the payment of obligations to which the city has previously committed or pledged to
the payment of the principal of premiums, if any, or interest on any outstanding
bonds; and
WHEREAS, the Urban Renewal .Agency met on June 22, 2011 and fully considered the request of
the Kalispell School District and determined to recommend to the City Council that it
approve the distribution request by making a total distribution of $465,000 to the
contributing taxing bodies; and
WHEREAS, the balance of the West Side TIC' fund on June 29, 201.1. is $2,235,257.27 from which
there are sufficient unencumbered funds to make a total distribution of $465,000 to
the contributing taxing bodies from which the request of the Kalispell School District
will be met in the sure of $ .53,399.93.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. The City Manager is authorized to instruct the Finance Director to
immediately remit the sun of $465,000 from the Nest Side TIF fund to the
Flathead County Treasurer for the purpose of making the appropriate pro rata
distribution to the contributing taxing bodies of which the Kalispell School
District should receive $1.53,399.93.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALIS TELL, THIS 5 TH DAY OF JULY, 2011. .
Tammi Fisher
Mayor
Theresa White
City Clerk
Urban Renewal Agency
2011si Avenue East
Kalispell, MT 58981
Phony: 406.758.773$
Fax: 406.758.7758
MEMORANDUM
TO* Urban. Renewal Agency
FROM* 'wade Elder, Revolving Loan Fund manager
SUBJECT: Kalispell Public Schools Request for 'west Side TIF Distribution of
Funds.
MEETING DATE: June 221, 2011 Urban Renewal Agency Meeting.
BACKGROUND: The ,Kalispell Public Schools are requesting a distribution from. the
West Side TIF District, They are locking to use the funds for maintenance and upkeep on
their facilities they have described in. their attachment entitled "Life Safety/Quality
Facility Needs — FH , Linderman, Vo-Ag Linderman Alternative Education Center".
This is an item, that has been discussed in general. for some time and was also discussed at -
the June 8, 2011 Urban. Renewal Agency (IRA) meeting.
The west Side TIF was established on. 03/17/97 through. the passage of Resolution 4309
and Ordinance 1259. It established the base year for calculating the tax increment as
01 /01 /9 7. The TIF is set to sunset on 03 / 17/ 12. The amount of funds in the west Side TIF
account as of 06116/ I 1 was $2.110,278.41 and the projected ending balance (06/30/12) in
the proposed FY 2012 is 2,553,754. The projected revenues from the proposed FY 2012
budget are $409,16 .
If there was an early distribution from the TIF the funds would go back to the entities that
were originally intended and the proportionate amounts. Attached is a breakdown. of hater
the funds would be distributed for $1001000,00� 1,500,000 2,000,000 for the West
Side TIF. It is self explanatory but the City and County would also receive their
proportionate funding share as well as the School District if funding is approved.
RECOMMENDATION: A motion to recommend to the City Council to either 1.) Not
distribute any dollars or 2.) To distribute any or all funds available to the Kalispell Public
Schools and the other entities that would normally receive these funds from the TIF.
FISCAL IMPACTS. If approved by the URA and the City Council a reduction.
of the west Side TIF District fund in the amount indicated by the approving bodies.
ALTERNATIVES* The committee could decide to let the TIF sunset in March
2012 and the funds would be distributed at that time.
Respec Y submitted,,
Wade Elder, Revolving Loan Fund Manager
WESTIDE TIF distribution Samples
201.0 Reals
........ ..
............. ...............
1,000,00.00
$
L5001000100
$
2100�1000.0 0
'Consolidated
0.070460
I.OA2%
104206.11
156, 309.16
S
208t412,2.11
.Co. Health .....
Of)05000
0 e 7 4
$
7.394-70
1 $
5
1 1,092.W
$
4.78 . 0
.Gen Schools
0.102360
1:5.14%
$
1. 5.1, 3 8 4.2), 9
$
227.076A3
$
302.76&58
Noxious weed...,
OM2400
035%
34549-46
. ............. ..
.. ...
5.324.18:
-S
7,098-91
911 G. 0. Bond
0,002100
0.31%.
$
31105-77
S
4 65&66
$
6.211.55
FlatheaiY-Iij.11'."
0.084200
121-45%.
$
1.2 1 526,74
$
186.7W 11
$
22 4 9. 0 5 -3. 4 8
Sheriff
O�036000
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s
_5 3 241 � 84
... ... ... ..... .
$
1�
70,862-75
$
106,483.67
I Mosquito
MR) 1000
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1,47&94
$
212184 1.
$
1957-88
'Board of Health.
OM5810
0,86%
$
&59164
$
0111,11 1�
12�888.96
1.7,185.28
univ
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-
$
Univ
0.040000 ....... .....
)%
5 9C
$
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88, 736-39
$
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I 18,315 19
iFVCC
0 .015140
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. . ..... ..........
?2 '91 .1.5
$
33,586.7=
44,782,30
FVCC Med, Le
0.000820 -----------
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Soil & Water
0,001670,zi ......... . ....
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$
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4,92319.66
Cj!j health
0.01.4640
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$
21,651.68
$
32,477.52 ft"
$
43� 303-36
Cl*tv:,
Q 155700
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$
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Mill levies . ..... .
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less exempt
-0,006000
0,676160
Kali#spell Publi*c Schools
3 1,st ..ire. East w Kalispell, Montana 59901
Y
Phone., (406)751 - 3 400 Fax (406)7, 1-3416
SUPERINTE, DENTT ASST. SUPERINTENDENT HUMAN RESOUJ CES FEDERAL PROJECTS
Darlene Schottle Dan Zorn Klmn Glawr Chris Bil nt
Phone (406)761.3434 Phone (40M761.434F24 Phone (400754-34-441 Phone (406)761-3408
March 28, 2011
.bane Howington, City Manager
City of Kalispell
201 First Avenue Fast
Kalispell, lv'I•T 59901.
Dear,ane:
As I am sure you are aware, on March 22 the Kalispell Public Schools levy for a High School Building Reserve
failed to pass. As a result of that failed levy I would like to discuss the possibility of the school district. portion of
the Westside Tax increment Fund District, scheduled to sunset on March 11, 2012; being disbursed on an earlier
date.
School District # S finds ourselves in a situation where we are unable to provide the maintenance and upkeep
necessary at some of our sites due to lack of fiscal resources. in particular, we have a concern that the recent
site reviews completed by the Fire Chief Dan Diehl pointed out some significant safety factors that are of
concern to us at Flathead High School. It is also true that the certain areas of FHS exterior does not enhance the
appearance of the neighborhood.
When Todd watkins.and .I met :with �o.u,on. �a rch.�.�th you indicated that there were unexpended funds in
'the-TIF -district and that, of least currently, there is not a viable request for use of these funds. I believe that the
City Council must act in order to release TIF funds, and I am seeking direction on the best way to proceed so we
might request an early release in order to utilize some of these funds for building maintenance, safety and basic
structural improvements. Made Elder contacted us fast week to ask us what type of projects we might
com plete, if ire did have access to TlF funds. Therefore, I am wondering if we need to create a list of iterns that
we feel would best be addressed with these funds, or if there is some other process that should be undertaken,
I am certainly willing. to put our request in writing and/or speak before the City Council on our behalf.
I appreciate your consideration and direction in this .natter.
Darlene Schottle
Superintendent of Schools
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