02-17-82 Finance Comm MinutesFINANCE COMMITTEE, KALISPELL CITY COUNCIL
Meeting - February 17, 1600 Council Meeting Room.
Present: Chairman Nystul, Committee Memebers Ruiz and Saverud; Councilman O'Boyle,
Mayor McDowell and Finance Director Swanson.
1. Marlin Hanson, who represents the same company that handles the excess on
the City of Billings self-insurance health plan, had asked to appear before the
committee. He was unable to attend this meeting, but we will try to schedule
him in the future. Information from the League will also be obtained.
2. Chairman Nystul recommended to the committee that the audit for the 1980-81
and 1981-82 years be contracted with an accounting firm rather than the State
Department of Administration. The recommendation is based on the difference in
the audit approach and the background and knowledge of the auditors. Councilman
Ruiz felt that the State would :do a better job and not cost as much. Swanson
prefers the State due to cost. Councilman Saverud suggested we contact cities
who had contracted with accounting firms to get their comments. Chairman Nystul
will draft a letter for the staff to send out.
3. Chaiman Nystul reported on his findings on the accounting for the HUD grants
handled by the City Community Development Department. In general, the official
financial records of the City are to be maintained by the City Clerk/Treasurer
as pointed out in the last audit. These records should reflect the entire
financial operation of all grants. The records maintained today are not complete.
The records of the passbook savings accounts and the loan leveraging accounts are
not maintained on the City records. The Clerk/Treasurer should correct this
deficiency.
Discussion was held regarding the transfers of funds between accounts.
Upon recording all accounts in the City records, these transfers can be done
by Treasurer's check rather than by warrant.
The Chairman will write an outline of procedures that should be followed.
The outline will be presented to the committee for their approval.
4. Main Street Financing.
Chairman Nystul outlined several alternatives to financing the Main Street
construction project. These are:
Finance Committee Meeting - February 17, 1982
Page 2
GENERAL OBLIGATION BONDS. Would require the vote of the residents; would be
based on the taxable value of all property within the City; would recognize
the benefit to the entire City of a decent Main Street.
REVENUE BONDS. Requires only the vote of the Council; must have a source of
anticipated revenue over the life of the issue (like gas tax moneys, or storm
sewer charges); would util"iz.a different source of revenue than used in the
General Fund.
SPECIAL IMPROVEMENT DISTRICT. Could be established in the downtown only or
City-wide; requires notice of all property owners; assessment based on area
or front foot rather than taxable value; could .go to 10 years; would be just
like any other SID.
SIDEWALK AND CURB. Would be like ordering in sidewalks and curbs and adjacent
property would pay cost. As stated by Councilman O'Boyle the property owners
were told that this project would not cost them.
TAX INCREMENT FINANCIAL. From the tax dollars in the district basically
around the project; dollars intended to benefit the area. Councilman Saverud
reminded the committee that the accumulation was to also do things other than
streets and the Council should not look to using all of a year's accumulation.
GENERAL REVENUES. These would be moneys from the general fund or from revenue
sharing.
The committee will consider the alternatives. Until the actual amount
needed is known there will be no decision. A probable alternative will be to
use several of the. above. Chairman Nystul reminded the members that there were
still warrants outstanding from 1978 on the engineering of First Avenue East that
are not paid for. The intent was to issue additional Storm Sewer Revenue Bonds
as the project constructed more storm sewers and saved the City substantial moneys
for storm sewers. Thus a revenue bond could correct this past funding error and
some of the present project.
The next meeting will discuss present financial position; data processing;
licenses and permits, etc.
f
Meeting adjourned at 1720.