5. Health Department Request for Tax Increment FinancingCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758
REPORT TO: Honorable Mayor and City Council
FROM: Chris A. Kukulski, City Manager
SUBJECT: Tax Increment Fund Request - City -County Health Department
MEETING DATE: December 17, 2001
BACKGROUND: Joe Russell from the Flathead City -County Health Department has submitted
a request for $500,000 in tax increment funds to help finance the new Health Department Facility.
The Health Department project was added to the Downtown Urban Renewal Plan by formal vote of
the Council on November 5th. Ordinance 1402 states "the project consists of granting to Flathead
City/County Health Department /Flathead Board of County commissioners a sum not to exceed
$500,000 to assist in the construction of a new Health Department Facility within the Downtown
Urban Renewal Area".
There were a number of options discussed at the work session December loth, including
whether the tax increment assistance should be in the form of a grant, or a 0% interest loan.
Unfortunately, there was no clear consensus from the Council on any of the options.
RECOMMENDATION: The City Council pass a motion authorizing $500,000 in Downtown
Urban Renewal assistance to the City/County Health Department Project.
FISCAL EFFECTS:
ALTERNATIVES:
Respectively submitted,
Chris A. Kukulski
City Manager
To be determined.
As suggested by Council.
Report compiled December 12, 2001
Community Health Services
7585741 FAX 7585856
Environmental Health Services
Flathead City -County
Health Department
7585760 FAX 758-5859
Reproductive Health Services
723 5th Avenue East
Kalispell, MT 59901
758-5756 FAX 7585926
(406) 758-5828
Fax: 758-5858
Home Health Services
862-9030 FAX 862-9025
WIC Services
7585752
November 26, 2001
Kalispell City Council
P.O. Box 1997
Kalispell MT 59901-1997
Re: Tax Increment Funding -Earl Bennett/City-County Health Department Building
Dear Members of the Council:
Thank you for including the City -County Health Department building project in the Downtown Tax
Increment District budget. We hope that you will look favorably on providing support to the full amount
requested ($500,000). The following is a budget breakdown that should show why the full amount of
funding is being requested.
REVENUE TO CONSTRUCT NEW BUILDING
HD Building Fund
Transfer from Commissioners
Interest from Fund
Health Fund Transfer
Expended to Date
Subtotal
Loan
TIFunds Requested
TOTAL $
REMAINING EXPENSES
To Swank Ent.
To ADG
Testing
Voice and Data
TOTAL $
$ 1,203,000.00
$ 801,000.00
$ 90,000.00
$ 200,000.00
$ (180,530.00)
$ 2,113,470.00
$ 500,000.00
$ 500,000.00
3,113,470.00
$ 2,979,000.00
$ 46,000.00
$ 5,000.00
$ 70,000.00
3,100,000.00
Following is a projected annual budget expected in the new Flathead City -County Health Department
building.
It is the mission of the Flathead City -County Health Department to assure the conditions in which people can be healthy through
collaboration, promoting stewardship of our resources, and providing preventive health services to our community.
TIF Request
November 28, 2001
Page 2
Projected Annual Utility Costs
Electricity
$ 21,550.00
Natural Gas
$ 2,450.00
Water
$ 1,003.00
Sewer
$ 2,472.00
Irrigation
$ 671.00
TOTAL
$ 28,146.00
Projected Repayment of $500,000
(annual)
$ 46,000.00
Contribution to Building Fund (O & M and repayment of balloon)
$ 20,000.00
TOTAL OF ALL
$ 94,146.00
At this time, we pay $85,000 in rent to the Commissioners and have been making contributions to
our building fund. Our hope is to keep our fixed cost as low as possible so we can use the majority
of our resources for direct public health services. I will be available at your earliest convenience to
discuss this matter with you in person. Please call me if you have any questions.
W. Russell, R.S.,
Officer