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06. Public Hearing - Urban Renewal Plan - Downtown��- � �cv� C7 �� C � .� �.� ���--�� a--'�-1 -.�''> tom.-�-�`� �;' ----___. t �J ,� n2 ,7`" / �4'.�� i �Jo�� �c s�2_ �k�," �?5/1°19� eaa d CA,-� 4Atl�,tf-4�o C�� �-� � 4-o YX aW� u✓ �� ��1� II�U,w,�esu ------------------ ep� �s /��..� �_� f �� �j`�L ���j ����� �� / 99� i �,� �� y> �la .,,�_,_ _ � s',_ 7G�� Speech before the Kalispell City Council on July 1, 1996 by Donna R. Maddux, Flathead County Superintendent of Schools Ladies and Gentlemen, I come before you as one who has sat as you are sitting, weighing the proper use of Tax Increment Funds, or even more basically the use of Tax Increment Districts. I have listened to the discussion on a local talk radio program and here tonight. The issues raised here are valid and worthy of your consideration. I applaud you for your careful deliberations this evening. For myself, I long ago became comfortable with using the only legitimate savings account available to public entities. The amount being saved (my term for the TIF program) from my home property taxis approximately $30.00 per year. That amount is a small contribution to the betterment of my community. The TIF, also called Urban Renewal, requires that housing be provided to replace the inferior quality properties being upgraded. You have done that. Urban renewal requires that tax generating properties be developed. You have done that. Tonight, I have come to speak in favor of a proposal which recognizes that part of the funds generated in the TID are resulting from money origionaly intended for the use of Flathead County and the local school district. You have before you a proposal which educates, which serves any interested citizen in this county and which will be a drawing card for the community of Kalispell. I urge you to support the creation of the Flathead County Museum using the entire old Central School. Because of the location of the facility near the Hockaday Center for the Arts and the Conrad Mansion, there is a natural compliment of purpose. One coming for a function at any one of the three could schedule the other two. Common advertising would be encouraged. But most importantly, I want to speak to this issue as an educator. We are living in a rapidly changing area. Much of the turmoil we have seen recently in our county is a direct result of colliding value systems. What does it mean to be a Montanan? How is a child growing up in Flathead County or a family newly arrived from another state to know what they are a part oV In my teaching experience I used to make history real to children by asking them to talk to grandparents, great aunts and uncles, or other respected elder family members to learn what changes they had seen occur in their lifetimes. I asked them to have their family historians tell them if all of the changes would count as progress. In more recent years that became harder and harder as fewer and fewer children in my Kalispell, MT classrooms had extended family nearby. The classic example I remember was the little girl who approached me asking, "Mrs. Maddux, my moms boyfriend has a mother in California. Does that count?" Of course, I said, "Certainly!"; but it broke my heart! I told my own parents that I know who I am because I know what our family stands for. Montana's history is MY history! How are our children to know that Montana's people are folks who overcome adversity unless they see how our forefathers and mothers survived Montana's unfriendly weather patterns to plant the communities we call the Flathead Valley? How many know why it want considered good manners to ask many questions about a mans background? Where did our Montana don't tell me about yourself, show me attitude come from? Many people look at the pretty Flathead countryside and aren't aware of the industries which built this region and which exist today. What exists here today is no accident; but the result of good stewardship over many years. How are our children, guests, and new Montanans to know that? New comers look at us and decry our ethnic similarity. They need to know that we celebrate our Japanese who left their mark on our land. We honor our Native Americans many of whom are blonde today; but whose ancestors taught us to walk lightly on the land. I would imagine that even fewer of us know that the McDonald of Lake McDonald fame actually spent some time living and working in Japan. Some of the schoolchildren on the Salish-Kootanei Reservation have studied that connection. Shouldn't it be mentioned for all to know. We speak of a building that was formerly a Kalispell School, and a unit of Flathead Valley Community College. Many free hours have already been donated accessing its suitability to be the Flathead County Museum Will it be economically stimulating to the economy of Kalispell? Compared to some sort of cutsey theme park, or even a series of high rise apartments, probably not! But I will predict that having this additional stop to compliment the existing Conrad Mansion and the Hockaday Center will be marginally successful financially; yet makes an invaluable contribution in differentiating the Flathead Valley from Everywhere Else, USA. Furthermore, it returns a portion of the TIF funds that really have never belonged to the City of Kalispell at all! As I understand Urban Renewal, Tax Increment Funds are to be used to revitalize a decaying part of the community. You have already addressed several factors of that charge. A last vestige of decay is knowledge and pride in what has made the Flathead Valley the place we find today. It's not as tangible as the others; but I hope you will find it equally important! A first class museum utilizing the building known as The old Central School will go far to do just that! Thank you. The following discussion represents the relationship of the Taxing Jurisdiction to 1995 Taxable Value Authority. 1. Flathead High School District #5 represents 62% of the Flathead County Taxable Value. $69,235,441 _ $132,871,552 = 52.1% 2. Kalispell Elementary School District #5 represents 25% of the Flathead County Taxable Value. $33,994,608 - $132,871,552 = 25.6% 3. Kalispell City represents 15% of the Flathead County Taxable Value. $20,224,154 _ $132,871,552 = 15.2% 4. Kalispell "Downtown" TID Incremental Value represents 2.7% of the Flathead County Taxable Value. $3,514,011 _ $132,871,552 = 2.7% 5. Whitefish City TID Incremental Value represents 2.2% of the Flathead County Taxable Value. $2,949,354 - $132,871,552 = 2.2% Property Taxes are based on the taxable value of the property multiplied by the mill levies set by taxing jurisdictions. Mill levies are set, based on the taxable value of property available to the taxing jurisdiction and the budget set by the respective taxing jurisdiction. Taxing Jurisdiction Authority is based on the taxable value of property within its boundaries, LESS any taxable value subject to legislative discretion by other taxing jurisdictions. FLATHEAD COUNTY TAXPAYER POTENTIAL REDUCTION % KALISPELL CITY TAXPAYER County - General Fund 2.7%' County - General Fund Sheriff 2.7%' Sheriff Noxious Weed 2.7%' Noxious Weed Board of Health 2.7%' Board of Health State - University 0.0%2 State - University General Schools 2.7%' General Schools State - School Aid 0.0%2 State - School Aid FVCC 2.7%' FVCC Flathead High School 5.1% Flathead High School Kalispell Elementary 10.3% Kalispell Elementary Kalispell Mosquito approx. 8% Kalispell Mosquito Applicable to City Taxpayer ONLY 17.4% Kalispell City - General Fund '' Potential Reduction of 4.9% if Whitefish City TO were terminated. 2. Statewide mandatory levy. A> afiir�:.:.tt«Kai s::>..:1>:...>>.:.:.::::: ;z could have a 2.7% reduction in property taxes, from six(6) Countywide mill levies, if the Kalispell "Downtown" TID did not exist. An Additional 2.2% reduction if the Whitefish City TID did not exist. Total effect is a potential 4.9% reduction in property taxes. Taxpayers within the jurisdictional taxing authority of the Flathead High School District could have a 5.1% reduction in property taxes. it} Taxpayers within the jurisdictional taxing authority of the Kalispell Elementary School District could have a 10.3% reduction in property taxes. in addition to all the above a[s :I"< ``e could also have u t.o'a 17.4% reduction in property taxes paid to the Kalispell City general fund. ................. .................................... ............................................ ......:..��...rr.....................�.......p.....;:�:. .:.:...............:...::.:::::::.:: OF THE KALISPELL "DOWNTOWN" TID Kalispell "Downtown" TID Incremental Value represents 2.7% of Flathead County Taxable Value. This incremental value is not available to SIX(6) Flathead County ......................................... Taxing Jurisdictions when setting their respective mill levies. ::.lt`»trot>h€I?±I The Taxpayers within Flathead County paid' more in overall taxes because of the TID. $3,514,011 _ $132,871,552 = 2.7% Kalispell "Downtown" TID Incremental Value represents 5.1% of Flathead High School District #5 Taxable Value. This incremental value is not available to the AV Hiah School District when settinq the mill levy. " h € ll " nt h";1' 13 lathead High School District #5 paid more in overall taxes because of the TID. $3,514,011 - $69,235,441 = 5.1 % Kalispell "Downtown" TID Incremental Value represents 10.3% of Kalispell Elementary School District #5 Taxable Value. This incremental value is not available to the Elementary School District when setting the mill levy. hAn'1:. sftGiva[t` a fe t The Taxpayers within Kalis e entary School District45 paid more ln'overall taxes because of the TID. $3,514,011 _ $33,994,608 = 10.3% Kalispell "Downtown" TID Incremental Value represents 1.7.4%_of Kalispell City Taxable Value. This incremental value is not available to Kalispell City when setting the mill ley >: ':":: >. otlt±t>€''tJi;1las>a ul$tlll ai<>tc:>:t Y a p.................... r.:.:.::::::::.::::.:.::::.::::.:::::..::::.::.::::::::::::::::::.::.::::::.:::::.::::::::::.:.::.:;:.::..::.:::>::.::.:. b s it r trrl trite tli ;< > sh�a€lit hs . he NxX Taxpayers within Kalispell City paid more in overall taxes because of the TID. $3,514,011 _ $20,224,154 = 17.4% TAX INC IC INCREMENT DISTRICT (TID) TAX INCREMENT FUND (TIF) Only taxpayers within the TID pay into the TIF. The TID's incremental increase in Taxable Value since 1979 provides for its source of revenue. This incremental increase has been lost to many jurisdictional taxing authorities. The TID's effect on taxing jurisdictions is less Taxable Value available to the respective taxing jurisdiction, thereby, causing a higher mill levy to be established for the needed operational funds. TAXING 1995 JURISDICTION TAXABLE VALUE AUTHORITY Flathead County - General Fund $132,871,552' Flathead High School District #5 $69,235,4412 Kalispell Elementary District #5 $33,994,6082 Kalispell City - General Fund $207224,1542 Kalispell "Downtown" TID $3,514,0113 Incremental Value Whitefish City TID Incremental Value $2,949,3543 Does not include the Kalispell "Downtown" TID or the Whitefish City TID Taxable Value. If the TID's did not exist, $3,515,011 and $2,949,354 respectively, would be available to 6 Flathead County taxing jurisdictions, therefore lowering the respective mill levies. 2. Does not include the Kalispell "Downtown" TID Taxable Value. If the TID did not exist, $3,516,011 would be available to the two(2) School Districts and Kalispell City taxing jurisdictions, thereby lowering their respective mill levies. 3' Is not included in the above Taxable Values, which makes for a lower tax base for the Taxing Jurisdictions and therefore higher mill levies. 4' Flathead County Assessor's Office.