FY 2021 CAFRCITY
KALISPELL
CITY OF KALISPELL, MONTANA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR 2021 July 1, 2020 - June 30, 2021
Prepared by the City of Kalispell
Finance Department
INTRODUCTORY
SECTION
CITY OF KALISPELL
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS
INTRODUCTORY SECTION
Tableof Contents.................................................................................................................................................. 1-2
ACFRLetter of Transmittal................................................................................................................................ 3-8
Government Finance Officers' Association Certificate of Achievement......................................................... 9
OrganizationalChart........................................................................................................................................... 10
City Elected and Appointed Officials.................................................................................................................. 11
1011►r:11► 41 Ell ILI X61111 Wei
Independent Auditor's Report .......................................
Management's Discussion and Analysis ........................
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position ................................
........................................................................12-14
........................................................................15-26
........................................................................ 27
Statementof Activities......................................................................................................................... 28
Governmental Fund Financial Statements:
BalanceSheet — Governmental Funds................................................................................................ 29
Reconciliation of the Balance Sheet — Governmental Funds to the Statement of Net Position ..... 30
Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds.. 31
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds to the Statement of Activities...................................................................... 32
Proprietary Fund Financial Statements:
Statementof Net Position — Proprietary Funds................................................................................. 33
Statement of Revenues, Expenses, and Changes in Net Position — Proprietary Funds .................. 34
Statementof Cash Flows — Proprietary Funds.................................................................................. 35
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position — Custodial Funds................................................................... 36
NO PAGE 37
Notesto the Financial Statements............................................................................................................38-85
Required Supplementary Information other than Management Discussion and Analysis:
Schedule of City's Total Liability and Related Ratios — Other Post -Employment
HealthcareBenefits..............................................................................................................................
86
Schedule of City Contributions — Other Post -Employment Healthcare Benefits ............................
86
Schedule of Proportionate Share of the Net Pension Liability/Schedule of Contributions —Post-
Employment Benefits/Required Notes............................................................................................87-93
Budgetary Comparison Schedule — General and Major Special Revenue/Required Notes
94-97
Supplemental Information:
Combining and Individual Governmental Fund Statements and Schedules:
Combining Balance Sheet — Nonmajor Governmental Funds.........................................................98-105
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
NonmajorGovernmental Funds....................................................................................................106-112
Budgetary Comparison Schedule —
NonmajorGovernmental Funds....................................................................................................113-132
Combining and Individual Proprietary Fund Statements:
Combining Statement of Net Position — Nonmajor Proprietary Funds .........................................
133
Combining Statement of Revenues, Expenditures, and Changes in Fund Net Position — Nonmajor
ProprietaryFunds..........................................................................................................................
134
Combining Statement of Cash Flows — Nonmajor Proprietary Funds ..........................................
135
CITY OF KALISPELL
ANNUAL COMPREHENSIVE FINANCIAL REPORT
TABLE OF CONTENTS
STATISTICAL SECTION
Financial Trends
NetPosition by Component..................................................................................................................... 136
Changesin Net Position........................................................................................................................... 137
FundBalances of Governmental Funds................................................................................................. 138
Changes in Fund Balances, Governmental Funds................................................................................ 139
Revenue Capacity
MarketValue of Taxable Property......................................................................................................... 140
Direct and Overlapping Property Tax Rates......................................................................................... 141
PrincipalProperty Tax Payers............................................................................................................... 142
Property Tax Levies and Collections...................................................................................................... 143
Debt Capacity
Ratios of Outstanding Debt by Type...................................................................................................... 144
Ratios of General Bonded Debt Outstanding........................................................................................ 145
LegalDebt Margin Information............................................................................................................. 146
Direct and Overlapping Governmental Activities Debt........................................................................ 147
PledgedRevenue Coverage..................................................................................................................... 148
Demographics and Economics
Demographic and Economic Statistics................................................................................................... 149
PrincipalEmployers................................................................................................................................ 150
Operating Statistics
Full-time Equivalent City Government Employees by Function/Program......................................... 151
OperatingIndicators by Function.......................................................................................................... 152
Capital Assets Statistics by Function/Program..................................................................................... 153
Additional Information
TheWater System.................................................................................................................................... 154
TheSewer System.................................................................................................................................... 155
Tax Increment District Information.......................................................................................................156-158
Special Improvement District Information............................................................................................ 159
General Obligation Debt Ratios.............................................................................................................. 160
SINGLE AUDIT SECTION
Schedule of Expenditures of Federal Awards and Notes................................................................................. 161
Notes to the Schedule of Expenditures of Federal Awards............................................................................. 162
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and
Other Matters based on an Audit of Financial Statements Performed in Accordance with
GovernmentAuditing Standards........................................................................................................... 163-164
Independent Auditor's Report on Compliance for Each Major Program and Report on Internal Control
Over Compliance Required by Uniform Guidance............................................................................... 165-166
Schedule of Findings and Questioned Costs..................................................................................................... 167
2
CITY OF
KALISPELL
December 28, 2021
City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7701 Fax - (406) 758-7758
To the Honorable Mayor, members of the City Council, and Citizens of the City of Kalispell,
Montana:
State law requires that all general-purpose local governments publish within six months of the
close of each fiscal year (by December 31) a complete set of financial statements presented in
conformity with generally accepted accounting principles (GAAP). State law also requires a
biannual audit of these statements in accordance with generally accepted auditing standards by a
firm of licensed certified public accountants to be completed within 9 months of the close of
every other fiscal year (by March 31). It is the belief of the City Council and the Executive staff
that an annual audit assures a higher level of financial management and fiscal responsibility.
Pursuant to this policy and these requirements, the audited annual comprehensive financial
report for the City of Kalispell, Montana for the fiscal year ended June 30, 2021, is submitted
for your review.
Management Representation
The Finance Office prepared this report. Responsibility for the accuracy and completeness of
the presented data, including all disclosures, rests with the City. We believe the data, as
presented, is accurate in all material aspects. The material is presented in a manner designed to
state fairly the financial position and results of operations of the City as measured by the
financial activity of its various funds. All disclosures necessary to enable the reader to gain an
understanding of the City's financial affairs have been included.
To provide a reasonable basis for making these representations, management of the City has
established and maintains an internal control system designed to ensure that the assets of the
City are protected from loss, theft, or abuse. The internal control system has been designed to
also ensure that adequate accounting data are compiled to allow for the preparation of financial
statements in conformity with accounting principles generally accepted in the United States (US
GAAP) and to comply with laws and regulations. The system of internal control is designed to
provide reasonable, but not absolute, assurance that these objectives are met. The concept of
reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits
likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments
by management.
Independent Auditor
Wipfli LLP, a firm of licensed certified public accountants has audited the financial statements
of the City. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City for the fiscal year ended June 30, 2021, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements; assessing the accounting principles used
and significant estimates made by management; and evaluating the overall financial statement
presentation. The independent auditors concluded, based upon the audit, that there was a
reasonable basis for rendering an unmodified opinion that the City's financial statements for the
fiscal year ended June 30, 2021, are fairly presented in conformity with US GAAP. The
independent auditor's report is presented as a component of the financial section of this report.
Transmittal Letter
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). The letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City of Kalispell's MD&A immediately precedes the City's basic
financial statements within this report.
Profile of the City of Kalispell
The City of Kalispell, incorporated in 1892, is the county seat of Flathead County located in the
western part of the State of Montana. This historically has been one of the top growth areas in
the state. The City of Kalispell is empowered to levy a property tax on both real and personal
properties located within its boundaries. It also is empowered by state statute to extend its
corporate limits by annexation, which occurs periodically when deemed appropriate by the
governing council.
The City of Kalispell operates under the council-manager form of government. Policy -making
and legislative authority are vested in a governing council consisting of the mayor and eight
other members. The governing council is responsible for, among other things, passing
ordinances, adopting the budget, appointing boards, and hiring the City Manager. The City
Manager is responsible for carrying out the policies and ordinances of the governing council, and
for overseeing the day-to-day operations of the City. The council is elected on a non -partisan
basis. Council members are elected by district to serve four-year staggered terms, with four
council members elected every two years. The mayor is elected at large for a four-year term.
All significant operations of the City, as defined by the National Council of Governmental
Accounting, Statement 93, have been included in the accompanying financial statements. The
City provides a full range of municipal services including police, fire, building, planning and
zoning, city court, parks and recreation, streets, community development, and general
administrative services. The City also operates as Enterprise funds: water, sewer, and solid
waste.
In addition, the City presents financial data for two component units on the combined statements.
The Downtown Business Improvement District and the Tourism Business Improvement District
are both discretely presented governmental type component units.
fl
The annual budget serves as the foundation for the City of Kalispell's financial planning and
control. All departments of the City of Kalispell are required to submit requests for
appropriation to the City Manager. The City Manager uses these requests as the starting point
for developing a proposed budget. The City Manager then presents this proposed budget to the
council for review. The council is required to hold public hearings on the proposed budget and
to adopt a final budget. The appropriated budget is prepared by fund, function, and department.
Budgetary control is decentralized to the point that departments are responsible for expending
within fund budgetary limits.
Budget to Actual Comparisons
The State municipal budget law stipulates that money, other than payments from agency funds,
may not be drawn from the treasury of a municipality except pursuant to an appropriation.
Therefore, a legally adopted budget is required for all funds, except for agency funds. The City
legally adopts a budget for the required funds. Consistent with past years, the City established
the legal spending level at the fund level for the fiscal year 2021 budget. The City Manager and
Finance Director may make transfers of appropriations within a fund. Transfers between funds,
however, require approval of the City Council. Budget -to -actual comparisons are provided in
the report for each individual governmental fund for which an appropriated annual budget has
been adopted. For the major governmental funds, the comparison is part of the required
supplementary information.
Factors Affecting Financial Condition
The pandemic has only accelerated Northwest Montana growth, with many estimates showing
growth far beyond that of the early 2000's. Property prices have skyrocketed in the past 24
months. The June 2019 median list price of a home in Kalispell was $425,000. This compares
to $719,000 in June of 2021, an increase of over 69%.
The most common employment sectors for those who live in Kalispell, are retail trade, health
care & social assistance, and educational services.
Healthcare, in general, has grown over 180% since 1990 and now employees over 7000 people
in Flathead County. Economist are predicting a 2.1 percent per year increase in health care
employment opportunities.
Although Kalispell is not in proximity of a major metropolitan center, hundreds of technology
and manufacturing companies, from computer equipment to food and beverage to
pharmaceuticals, have found the area to be favorable for their operations.
Tourism is another one of the area's major economic drivers. With Glacier National Park
visitations setting annual records, a major ski resort within a few miles, the proximity to Canada,
and other shoulder season draws, there is not many days of the year that visitors do not purchase
services in Kalispell and the Flathead Valley.
While Flathead County and the State of Montana experienced growth under 15 percent between
the 2010 census and 2020 census, the City of Kalispell experienced a population increase of over
23 percent. As of the most current population census, the estimated population of Kalispell is
24,558.
5
Unemployment claims for June of 2020 for the City of Kalispell was a pandemic related total of
2700. This is over 300% over June of 2019. June of 2021 was closer to pre pandemic levels at
about 1000 claims.
According to the United States Census Bureau, the per capita income for the City of Kalispell
was $26,865 in 2019 inflation -adjusted dollars. This is about 15% less than Flathead County's
estimated per capita income ($31,694), and 14% less than Montana's estimated per capita
income ($31,151). Per capita income for the United States is estimated to be $34,103 in 2019
inflation -adjusted dollars.
Revenue Growth and Reform
City revenues can be considered statutorily limited, circumstantial, or discretionary. The City
has very little control over the growth of restricted and circumstantial revenues. Although the
City `controls' the growth of discretionary revenue, it is still subject to typical community
pressures for conservative growth.
Since November 1986 and the passage of Initiative 105, which limited certain property taxes to
the 1986 levels, the ability of the City to raise revenue for basic services is increasingly difficult.
Then, the legislature, with S13184, lowered tax rates forcing the City to increase mill levies to
maintain the same level of revenue. The City's cash reserves in most funds vary between 10%
and 20% of appropriations. State law allows for reserves of 50%. Reserves provide for cash flow
between tax revenue receipts to keep the City from having to borrow funds for operations.
Additional revenues generated by increased taxable valuation come with the additional costs of
an increased service area. The City of Kalispell's Police and Fire Departments, Courts system,
Building Department, Public Works and Parks have felt the increased pressure from the influx of
people to Flathead County. These pressures impact the budgets of all departments.
The Montana constitution and state law require periodic reappraisal of property in the interest of
equal taxation (15-7-111, MCA). The State of Montana, through the Department of Revenue
(DOR), is responsible for valuing all taxable real and personal property. Every other year, the
DOR is required by state law to conduct a reappraisal of residential, commercial, industrial,
agricultural and forestland property in the state.
New reappraisal values were used for property tax purposes in tax year 2019 (fiscal year 2020).
Statewide, taxable values rose about 12.5%. In Flathead County, reappraisals resulted in a
taxable value increase of about 10%. The City of Kalispell also showed an increase of over
11 %.
Con
Maior Initiatives
Downtown
On December 4, 2017, the Kalispell City Council adopted The Downtown Plan as an amendment
to the City of Kalispell Growth Policy Plan by Resolution No. 5846. The Downtown Plan
addresses several key topics that affect the future growth and development of Downtown
Kalispell. A few goals/guiding principles were identified within the implementation chapter of
The Downtown Plan. Goal/guiding principle number three states "creation of a downtown Tax
Increment Finance District to assist with implementation of this plan." The tax increment funds
could be used for appropriate public infrastructure projects in support of the redevelopment of
blighted conditions.
On the 5t' day of November 2018, by Resolution No. 5904, the Downtown Tax Increment
Financing District was created. The Downtown Plan identified the goal of creating this District
for the purpose of constructing appropriate infrastructure project to invigorate the redevelopment
of blighted conditions.
Glacier Rail Park
On April 21, 2014, the City Council voted unanimously to annex 40.69 acres located on the east
side of Whitefish Stage Road, north of East Oregon Street, and west of East Oregon Lane
(formerly McElroy -Wilkins gravel pit). The owner of this property, Flathead County Economic
Development Authority, intends to develop a rail -served industrial park. This rail park will be
the new home of several of the rail -served industrial business that are currently located within
the City of Kalispell's Core Area, as well as provide additional rail -served industrial land for
other business ventures. The proposed rail -served industrial park and relocation of industrial
uses out of the Core Area will facilitate removal of the railroad tracks from the Core Area and
encourage commercial investment in the recently expanded Westside Urban Renewal Tax -
Increment Finance (TIF) District.
In October of 2015, the City of Kalispell was awarded a $10 million Transportation Income
Generating Economic Recovery (TIGER) grant from U.S. Department of Transportation to help
fund the Glacier Rail Park and Kalispell Core Area Development projects. The emphasis of this
grant will be to remove the railroad tracks from the City of Kalispell. These tracks are to be
replaced by a trail to assist further development. A Rail Park has been constructed outside of the
core area, to accommodate establishments that need or prefer rail service for their business.
7
American Rescue Plan Act Allocations and Proiects
At a City of Kalispell Council Work Session on June 28, 2021, projects thought applicable to the
American Rescue Plan Act (ARPA) were discussed. The objective of this work session was to
inform City Council of the ARPA allocations the City can receive, the application process,
projects proposed to be funded, and Kalispell's project application status.
The American Rescue Plan Act (ARPA) was signed into law March 11, 2021 to address the
COVID-19 pandemic. The City may receive funding for ARPA eligible water and sewer
projects. In consideration of the City's capital improvement plan, ARPA project eligibility
requirements, and ranking criteria for the competitive grant there were six (6) sewer projects
proposed and two (2) water projects proposed. Estimated cost of the eight (8) projects is
$16,151,237. Most of this cost would be covered by fiscal recovery funds and minimal cost to
the City.
Awards and Acknowledgments
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Kalispell for its comprehensive annual financial report for the fiscal year ended June 30, 2020.
This was the eleventh consecutive year that the City of Kalispell had submitted and achieved this
prestigious award. To be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements. A
Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The completion of the Annual Financial Report on a timely basis was made possible by the entire
staff of the Finance Department and the cooperation of all City departments. I would also like to
give recognition to the mayor, governing council, and the city manager for their consistent
support for maintaining the highest standards in the management of the City of Kalispell's
finances.
Respectfully submitted,
Rick Wills
Finance Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Kalispell
Montana
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
9
MUNICIPAL JUDGE
Lori Adams
CITY CLERK
Aimee Brunckhorst
CITY OF KALISPELL, MONTANA
ORGANIZATIONAL CHART
CITIZENS OF KALISPELL
CITY COUNCIL
MAYOR
Mark Johnson
WARD I WARD II WARD III
Kati Gabriel Sam Nunnally Kyle Waterman
FINANCE
Rick Wills
CITY MANAGER
Doug Russell
HUMAN PUBLIC WORKS INFORMATION
RESOURCES Susie Turner TECHNOLOGY
Denise Michel Erika Billiet
10
WARD IV
Tim Kluesner
PLANNING, PARKS &
BUILDING & RECREATION
COMMUNITY Chad Fincher
DEVELOPMENT
PUBLIC SAFETY PUBLIC SAFETY LEGAL
FIRE POLICE Charlie Harball
Dan Pearce Doug Overman
CITY OF KALISPELL, MONTANA
CITY ELECTED AND APPOINTED OFFICIALS
TERM
ELECTED OFFICIALS EXPIRES
Mayor Mark Johnson 12/2025
Council members:
Kari Gabriel
Ward I
12/2023
Kyle Waterman
Ward III
12/2021
Sandy Carlson
Ward I
12/2025
Ryan Hunter
Ward III
12/2023
Sam Nunnally
Ward II
12/2023
Sid Daoud
Ward IV
12/2023
Chad Graham
Ward II
12/2025
Tim Kluesner
Ward IV
12/2021
Municipal Court Judge:
Lori Adams
12/2023
APPOINTED CITY OFFICIALS
City Manager
Doug Russell
City Attorney
Charles Harball
City Clerk
Aimee Brunckhorst
Police Chief
Doug Overman
Fire Chief
Dan Pearce
Finance Director
Rick Wills
Public Works Director
Susie Turner
Parks Director
Chad Fincher
Planning, Building, Community Dev.
Jarod Nygren
Human Resource Director
Denise Michel
City Treasurer
Julie Hawes
11
FINANCIAL
SECTION
INDEPENDENT AUDITOR'S REPORT
City Council Members
City of Kalispell
Kalispell, Montana
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Kalispell, Montana (the City), as of and for the year ended June 30, 2021 and
the related notes to the financial statements, which collectively comprise the City's basic financial statements
as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly,
we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business -type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of the City of
Kalispell, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted in the United
States.
12
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States require that the management's discussion and
analysis, Schedules of City's Total OPEB Liability, Contributions and Related Ratios for the OPEB plan,
Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions, and Budgetary
Comparison Schedules as listed on the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of
the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual non -major
fund financial statements, non -major budgetary comparisons, and statistical section, are presented for purposes
of additional analysis and are not a required part of the financial statements. The schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, and is also not a required part of the basic financial statements.
The combining and individual non -major fund financial statements, non -major budgetary comparisons and
schedule of expenditures of federal awards, are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States. In our opinion, the combining and individual non -major fund financial statements,
non -major budgetary comparisons and schedule of expenditures of federal awards, are fairly stated in all
material respects in relation to the financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
13
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2021,
on our consideration of the City's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is solely to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the City's internal control over financial reporting and
compliance.
Wep�' LAP
Wipfli LLP
Helena, Montana
December 28, 2021
14
MANAGEMENT'S DISCUSSION
AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Kalispell, we offer readers of the City of Kalispell's financial
statements this narrative overview and analysis of the financial activities of the City of Kalispell
for the fiscal year ended June 30, 2021. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal.
FINANCIAL HIGHLIGHTS
➢ The assets and deferred outflows of the City of Kalispell exceeded its liabilities and deferred
inflows at the close of the most recent fiscal year by $193,919,083 (net position). Of this
amount, $28,496,193 (unrestricted net position) may be used to meet the government's
ongoing obligations to citizens and creditors.
➢ Total City net position increased by $5,564,199 over the prior fiscal year. Most of the
increase in net position can be attributed to increased enterprise fund (water/sewer) rates and
intergovernmental revenue (CARES Act). Developers contributed almost $800,000 of water
and sewer infrastructure to the City.
➢ As of June 30, the City's governmental funds reported combined ending fund balances of
$25,090,627, an increase of $1,227,708 over the prior year. Of this amount, $5,233,639
(20.9%) is available for spending at the government's discretion (committed, assigned, and
unassigned fund balances).
➢ At fiscal year-end, the total of the committed, assigned, and unassigned components of fund
balance for the general fund was $5,287,871 or 38.7% of fiscal year 2021 total general fund
expenditures.
➢ The City's total debt increased by $525,362 (1.64%) during fiscal year 2021. Debt of
governmental activities decreased (8.4%) as only a small amount of new debt (less than
$200,000) was incurred. Business -type activities debt increased $167,166 (less than 1%).
New borrowings of $1,876,359 were offset by debt payments of a slightly less amount.
AN OVERVIEW OF THE FINANCIAL STATEMENTS
There are three main components to the City of Kalispell's financial statements: 1) government -
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
Other supplementary material is included in this report in addition to the basic financial
statements themselves. The City of Kalispell intends for this discussion and analysis to be used
in conjunction with the basic financial statements, and other material, as an introduction and also
as a means to help the user better understand the information.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad
overview of the City of Kalispell's finances. The way information is presented in these
statements is comparable to how the financial information of a private -sector business would be
presented.
The statement of net position presents information on all the City of Kalispell's assets and
deferred outflows of resources, and liabilities and deferred inflows of resources. The difference
15
between these two (assets and deferred outflows of resources minus liabilities and deferred
inflows of resources) is reported as net position. Net position can be a useful tool in evaluating
the financial health of an entity. A substantial decrease in net position may be a sign of
deteriorating financial outlook.
The change in net position during the most recent fiscal period is presented by the statement of
activities. The statement of activities reports changes in net position at the time the event takes
place without regard to the corresponding cash transaction. This results in some revenues and
expenses being reported in this statement that will not result in cash flow until a future fiscal
period. Some examples of this would be uncollected but earned taxes and earned leave benefits.
The government -wide financial statements of the City of Kalispell are segregated to distinguish
between functions supported predominantly by taxes and intergovernmental revenues
(governmental activities) and those that are intended to recover most of their costs through user
fees and charges for services (business -type activities). The governmental activities of the City
of Kalispell include general government/administration, public safety, public works, parks and
recreation, and community development. The business -type activities of the City of Kalispell
include water distribution, sewer collection and treatment, and solid waste collection.
The government -wide financial statements include, in addition to the primary government
described in the above paragraph, a legally separate Business Improvement District and a legally
separate Tourism Business Improvement District. The financial information of these component
units is reported separately on the Government -wide financial statements.
Fund Financial Statements
The City of Kalispell, like most other governmental entities, uses fund accounting. Funds are set
up to account for specific activities or objectives of the government. Funds also aide in ensuring
compliance with legal requirements. The City of Kalispell categorizes its funds as either
governmental, proprietary, or fiduciary.
➢ Governmental funds correspond with the functions reported as governmental activities in
the government -wide financial statements. Governmental fund financial statements, by
focusing on near -term inflows and outflows of spendable resources, may be more useful
in evaluating a government's short-term fiscal health than the government -wide financial
statements.
➢ A reconciliation has been prepared to help users more easily compare the governmental
fund balance sheet to the government -wide statement of net position and the
governmental fund statement of revenues, expenditures, and changes in fund balance to
the government -wide statement of activities. These reconciliations can be useful in
contrasting, comparing and understanding the long-term impact (government -wide
statements) of near -term decisions (governmental fund statements).
➢ The City of Kalispell maintains numerous individual governmental funds. The
governmental fund balance sheet and statement of revenues, expenditures, and changes
in fund balance present information separately only for funds which are considered
major. Major funds are determined by a formula which considers the percentage of total
governmental assets, liabilities, revenues, and expenditures contained in each individual
fund. The City of Kalispell has three major governmental funds; the General Fund
Iro
(always a major fund), the Street Maintenance (special revenue) Fund, and the American
Rescue Plan Act fund. All non -major funds are presented as a group.
➢ The City of Kalispell adopts an annual appropriated budget for its funds. A budgetary
comparison statement has been provided for the general fund and the other major
governmental funds to demonstrate compliance with this budget.
➢ The City of Kalispell maintains two different types of proprietary funds. Enterprise
funds and internal service funds. Enterprise funds are used to report the same functions
presented as business -type activities in the government -wide financial statements.
Water, sewer, and solid waste make up the City of Kalispell's enterprise funds.
➢ The City of Kalispell uses two internal service funds to accumulate and allocate its
information technology transactions and central garage transactions internally among its
various functions. Under the old reporting model internal service funds were reported as
proprietary funds because they recovered most of their cost through user fees from other
funds. Under the new model these funds are eliminated through an allocation process
and categorized as either a governmental or business -type activity. Because the City of
Kalispell's internal service funds benefit governmental more so than business -type
functions, they have been included within the governmental activities in the government -
wide financial statements.
➢ Information in the proprietary fund financial statements is of the same type as that
provided in the government -wide financial statements, however, it is more detailed.
Individual fund data is provided for the water fund and the sewer fund, classified as
major funds. Individual data is not required for the solid waste fund, because it is not
classified as a major fund.
➢ The City of Kalispell maintains one fund to account for resources held by the
government for the benefit of outside parties. This fiduciary fund is not reflected in the
government -wide financial statements because the resources are not available to support
the City of Kalispell's own programs. The City of Kalispell must ensure that the assets
reported in this fund are used for their intended purpose. The accounting method used
for fiduciary funds is like that used for proprietary funds.
Notes to the Financial Statements
The information contained in the government -wide and fund financial statements is meant to be
used in concurrence with the notes to the financial statements. The notes present further detail of
the data provided by these statements.
Other Information
GASB Statement 75 — Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions schedules, GASB Statement 68 — Accounting and Financial Reporting for
Pensions schedules, and the general and major special revenue funds budgetary comparison
schedules is included in the section for required supplementary information on pages 84 - 95.
17
ANALYZING THE CITY AS A WHOLE
As mentioned prior, net position can be an important indicator of an entity's financial well-being.
For the period ending June 30, 2021, the City of Kalispell's assets and deferred outflows of
resources exceeded liabilities and deferred inflows of resources by $193,919,083.
The largest portion of the City's net position ($148,060,718 or 76%) reflects its net investment in
capital assets (e.g., land, buildings, machinery and equipment, infrastructure). The City uses
these capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the City's investment in capital assets is reported net of related debt,
it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities. A
summary of net position is shown in the following table.
Governmental
Business -type
Activities
Activities
Change
Change
FY21
FY20
Inc(Dec)FY21
FY20
Inc(Dec)
Current and Other Assets $ 34,557,240
$ 29,752,200
$ 4,805,040
$ 36,251,236
$ 32,644,116
$ 3,607,120
Capital Assets 77,455,505
78,933,953
$ (1,478,448)
101,666,450
98,934,756
2,731,694
Total Assets 112,012,745
108,686,153
3,326,592
137,917,686
131,578,872
6,338,814
Deferred Outflows of Resources 4,666,135 2,939,271 1,726,864 725,843 532,592 193,251
Long-term Liabilities Outstanding
$ 24,652,207
$ 20,007,876
$ 4,644,331 $
27,297,783
$ 24,978,156 $
2,319,627
Other Liabilities
6,367,712
4,541,793
1,825,919
465,680
2,638,491
(2,172,811)
Total Liabilities
31,019,919
24,549,669
6,470,250
27,763,463
27,616,647
146,816
Deferred Inflow of Resources
2,249,424
2,464,197
(214,773)
370,520
563,039
(192,519)
Net Position:
Net Investment in Capital Assets
70,317,095
71,130,497
(813,402)
77,743,623
75,179,096
2,564,527
Restricted
9,476,546
9,349,779
126,767
7,885,626
9,707,154
(1,821,528)
Unrestricted (deficit)
3,615,896
4,131,282
(515,386)
24,880,297
19,045,528
5,834,769
Total net position
$ 83,409,537
$ 84,611,558
$ (1,202,021) $ 110,509,546
$ 103,931,778 $
6,577,768
An additional portion of the City's net position ($17,362,172 or 9%) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted
net assets ($28,496,193 or 15%) may be used to meet the City's ongoing obligations to citizens
and creditors.
At June 30, the City is able to report positive balances in all three categories of net position, both
for the City as a whole, as well as for its separate governmental and business -type activities.
Net position of the City increased almost 3% for fiscal year 2021 in comparison to fiscal year
2020 ($194 million compared to $188 million).
18
Changes in Net Position
Governmental Business -type
Activities Activities
Change
Change
FY21
FY20
Inc Dec
FY21
FI_20
Inc Dec
Revenues
Program revenues (by major source):
Charges for services
$
8,323,806 $
8,122,010 $
201,796 $
16,032,399
$ 12,944,280
$ 3,088,119
Operating grants and contributions
6,357,875
3,473,490
2,884,385
222,879
55,235
167,644
Capital grants and contributions
1,045,006
-
1,045,006
799,492
5,200,256
(4,400,764)
General revenues (by major source):
Property taxes for general purposes
10,109,452
10,393,815
(284,363)
-
-
Video poker apportionment
69,175
61,200
7,975
Miscellaneous
514,139
67,214
446,925
-
-
Interest/investment earnings
387,748
262,342
125,406
209,468
412,935
(203,467)
State entitlement
3,251,245
3,425,997
(174,752)
-
-
Gas Tax
870,890
835,851
35,039
-
-
Total revenues
$
30,929,336 $
26,641,919 $
4,287,417 $
17,264,238
$ 18,612,706
$ (1,348,468)
Program expenses
General government
$
6,505,134 $
6,225,773 $
279,361
Public safety
15,081,467
11,738,977
3,342,490
Public works
4,191,268
4,432,162
(240,894)
Parks and recreation
2,787,605
2,371,145
416,460
Community development
3,093,846
2,048,260
1,045,586
Debt service - interest
283,585
333,593
(50,008)
Water
$
3,423,908
$ 3,134,112
$ 289,796
Sewer
6,253,823
6,341,537
(87,714)
Solid Waste
1,008,739
1,047,408
(38,669)
Total expenses
$
31,942,905 $
27,149,910 $
4,792,995 $
10,686,470
$ 10,523,057
$ 163,413
Excess (deficiency) before
special items and transfers
$
(1,013,569) $
(507,991) $
(505,578) $
6,577,768
$ 8,089,649
$ (1,511,881)
Gain (loss) on sale of capital assets
-
6,500
(6,500)
-
-
-
Extraordinary item - Contribution to other Gov't
$
- $
(8,960,047)
8,960,047 $
-
$ -
-
Increase (decrease) in net position
$
(1,013,569) $
(9,461,538) $
8,447,969 $
6,577,768
$ 8,089,649
$ (1,511,881)
Net Position - beginning
84,611,558
94,028,409
(9,416,851)
103,931,778
95,835,311
8,096,467
Restatement
(188,451)
44,687
(233,138)
-
6,818
(6,818)
Net Position - ending
$
83,409,537 $
84,611,558
(1,202,021) $
110,509,546
$ 103,931,778
6,577,768
Governmental Activities. Governmental activities in fiscal year 2021 decreased the City's net
position by $1,013,569, an increase of $8,447,969 when compared to the prior fiscal year.
Overall, revenues of the governmental funds increased 16% ($4,287,417). Expenses also
increased about 18% or $4,792,995. The key elements of the overall net position change were:
➢ Total program revenues increased substantially ($4,131,187 or 36%), while general
revenues increased ($156,230 or 1%).
➢ Capital Grants and Contributions (program revenues) were $1,045,006 more than fiscal
year 2020. This entire amount is Tiger Grant (Parkline Trail) revenue after a couple
years of activity that wasn't grant eligible.
➢ Operating Grants and Contributions (program revenue) were $2,884,385 more than fiscal
year 2020. Retirement expense paid by the State of Montana on behalf of the City of
Kalispell is also recorded as a revenue. This revenue (offset by an expense) increased
more than $2.2 million from the prior fiscal year.
➢ Public safety program expenses increased over 28% ($3,342,490), and community
development expenses increased by 51% ($1,045,586). Most of the increase in public
safety expenses can be attributed to the pension expense increase noted above. Increased
activity along the Parkline Trail contributed to the increase in community development.
19
The table and charts on this page help illustrate the information presented above. The table and
bar chart present the cost and net cost (total cost less revenues generated by the activity) of each
of the City's largest governmental programs; General Government (administration), Public
Safety (police and fire), Public Works (streets, light maintenance and signs and signals), Culture
and Recreation (parks, urban forestry, pool, etc.), and Community Development. Net cost shows
the financial burden placed on City taxpayers by each of these functions. The pie chart
illustrates the different revenue sources for the City's governmental activities and how much
each source contributes.
UD MOI
lauooato
120Mto
tl0
y {1DDDEI�DO
111MN
a9MW
a
Governmental Activities
by function (in Millions)
Total Cost Net Cost
of Services of Services
FY21
FY20
FY21
FY20
General Government
6.5
6.2
4.4
5.4
Public Safety
15.0
11.7
6.0
5.8
Public Works
4.2
4.4
1.3
1.1
Parks and Recreation
2.8
2.4
1.4
1.3
Community Development
3.1
2.1
2.9
1.7
Debt Service
0.3
0.3
0.3
0.3
Totals
$ 31.9
$ 27.1
$ 16.3
$ 15.6
Exper®sa and Pmgrm Rmnum-Cv"rnmanral Ar.*Mss for Hscalyear
=I
pangoYt p.lbaafaty p,tbweilta paila-ive WITIndw
164*Le
Itevenuip by Scurcip - Qcvemmontmi Activltlips fiscal year 2021
€Naha OntPJanrant _.
IM
Charges ter services
30%
f'ropeily [UAL-.
39%
gronts/-hutfons
�apSCl"tP
�i�-�a=e4-�CrW.IC4ats
9:fr{r•
20
Business -type activities. Business -type activities increased the City of Kalispell's net position
by $6,577,768, about 19% ($1,511,881) less than in fiscal year 2020. The factors leading to this
19% decrease were:
➢ Overall, revenues of the City's business -type activities decreased $1,348,468. An
increase in charges for services revenue (water and sewer rate increases) of $3,088,119
was more than offset by a decrease to capital grants and contributions revenue of
$4,400,764. Most of this decrease is developers' contributions of infrastructure in water,
sewer, and storm infrastructure.
➢ Program expenses increased just 1.5% from the prior fiscal year.
The following charts help illustrate the information presented above related to business -type
activities net position.
12000000
10000000
8000000
c
S000000
E
4000000
2000000
Expaneaaand Program Revenues - Suelnen-typaAaW fln for heal year 2021
Waltr aeW*r ealldwao
Aotivlty
Rvrenims by Souroo - Suelneee-type AatMtlee for fleaal year 2021
21
ANALYZING THE CITY'S INDIVIDUAL FUNDS
Governmental Funds
The focus of the City of Kalispell's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources (fund balance). Spendable fund balance
(restricted, committed, assigned, and unassigned) is a useful tool when assessing the net
resources a government has available to spend at the end of a fiscal period.
At the end of fiscal year 2021, the City of Kalispell's governmental funds reported combined
ending fund balances of $25,090,627, an increase of $1,227,708 in comparison with the prior
fiscal year. Approximately 13% of this amount ($3,174,270) constitutes unassigned fund
balance, which is available for spending at the City's discretion. The remainder of the fund
balance is either nonspendable, restricted, or assigned to indicate that it is 1) not in spendable
form ($1,364,991), 2) restricted for particular purposes ($18,491,997), or 3) assigned for
particular purposes ($2,059,369).
MAJOR GOVERNMENTAL FUNDS
The general fund is the chief operating fund of the City of Kalispell. At the end of fiscal year
2021 unassigned fund balance of the general fund was $3,228,502, while total fund balance was
$6,592,231. The fund balance increased $944,266 during fiscal year 2021. As a measure of the
general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund
balance to total general fund expenditures. Unassigned fund balance represents approximately
24.0 percent of total general fund expenditures, while total fund balance represents
approximately 48.0 percent of that same amount.
The Street Maintenance fund is a special revenue fund established to account for the
maintenance, construction, equipment and other costs incurred in the maintenance of the City's
streets. Assessments on properties within the City of Kalispell boundaries are the main source of
this funds revenue. At June 30, 2021, the fund balance of this fund was $3,376,905, a $286,338
increase from the prior fiscal year.
The American Rescue Plan Act (ARPA) fund is a capital project fund established to account
for the federal and state funding attributable to ARPA. This funding is to go towards
infrastructure projects approved through a process by the State of Montana.
Fund balance breakdown for the (3) major governmental funds
AMERICAN RESCUE
GENERAL
FUND
STREET
MAINT.
PLAN ACT
FUND BALANCE -TOTAL
$ 6,592,231
$ 3,376,905
$
NONSPENDABLE
Long-term recievables
$ 1,300,000
$ -
$
Prepaids
$ 4,360
$ 18,728
$
TOTAL NONSPENDABLE
$ 1,304,360
$ 18,728
$
RESTRICTED
Public Works
$ -
$ 3,358,177
$
TOTAL RESTRICTED
$ -
$ 3,358,177
$
ASSIGNMENTS
Capital Equipment
$ 550,000
$
$
Downtown Parking
$ 23,542
$
$
Misc.
$ 1,485,827
$
$
TOTAL ASSIGNMENTS
$ 2,059,369
$
$
UNASSIGNED
$ 3,228,502
$
$
22
Proprietary Funds
The City of Kalispell's proprietary funds financial statements provide the same type of
information found in the government -wide financial statements, but in more detail. Unrestricted
net position and the total growth in net position of the proprietary funds by fund are:
Proprietary Fund Net Position
of
Unrestricted
Unrestricted
Change in
% Change in
Net Position
Net Position
Net Position
Net Position
Water - major fund
$ 11,831,108
48%
$ 1,707,862
26%
Sewer - major fund
12,057,975
48%
4,753,857
72%
Other - solid waste
991,214
4%
116,049
2%
Total
$ 24,880,297
100%
$ 6,577,768
100%
For the discussion regarding major changes in net position of the proprietary funds see the
explanation above in the business -type activities of the statement of activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
The City of Kalispell's general fund expenditures budget for fiscal year 2021 was $15,584,203.
Actual expenditures for the year were $13,678,194, a favorable variance of $1,906,009, mostly
attributable to the reclassification of a transfer to eliminate the doubling of an expenditure.
Actual revenues of the general fund were $13,652,460, $502,865, or about 4% more than the
budgeted amount of $13,149,595. Taxes and assessments and intergovernmental revenues were
both about $200,00 over the fiscal year 2021 budgeted amounts. This positive variance was due
to an increased tax base and federal funds related to the pandemic.
23
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2021, the City of Kalispell has $177,868,709, net of depreciation, invested in a
broad range of capital assets, including police and fire equipment, streets, buildings, land, park
facilities, garbage collection equipment, and water and sewer lines.
CITY OF KALISPELL'S CAPITAL ASSETS
(NET OF DEPRECIATION)`
Governmental Business -type Total
activities activities
Land
2021
$ 3,743,166
2020
$ 3,743,166
2021
$ 354,021
2020
$ 354,021
2021
$ 4,097,187
2020
$ 4,097,187
Buildings
6,147,618
6,555,082
31,025
33,367
6,178,643
6,588,449
Improvements (not buildings)
6,158,367
6,581,945
6,158,367
6,581,945
Machinery and equipment
3,815,990
4,154,290
810,142
420,920
4,626,132
4,575,210
Information Technology
138,288
129,127
138,288
129,127
Central Garage
106,296
84,715
106,296
84,715
Infrastructure
53,555,463
55,887,555
53,555,463
55,887,555
Construction in Progress
3,790,317
1,798,073
2,472,283
14,968,095
6,262,600
16,766,168
Source of Supply
4,819,523
4,682,482
4,819,523
4,682,482
Pumping Plant
1,867,787
1,948,616
1,867,787
1,948,616
Treatment Plant
17,488,161
18,429,065
17,488,161
18,429,065
Transmission and Distribution
61,675,445
45,935,648
61,675,445
45,935,648
General Plant
455,333
481,468
455,333
481,468
Storm Sewer system
11,692,730
11,681,074
11,692,730
11,681,074
Total
$ 77,455,505
$ 78,933,953
$ 101,666,450
$ 98,934,756
$ 179,121,955
$ 177,868,709
`assets ofthe City's internal service funds included in governmental activities
Major Governmental funds capital asset events during the fiscal year 2021 included the
following:
➢ Vehicles and other equipment with a cost basis of $513,548 were added. This included two
(2) new police vehicles, a street maintenance truck, a parks truck, a new ambulance, and a
new central garage pickup.
➢ Information Technology added equipment valued at $56,505.
➢ Paved/patched 9 alleys at a total cost of $34,981. Replaced 1,024', or about 3.5 blocks of
sidewalks valued at $170,473.
➢ Disposed assets with a cost basis of $248,728. This included three (3) police vehicles with a
cost basis of almost $100,000, a street department truck, and an ambulance.
➢ Finished construction of the mezzanine at 201 lst Avenue East (City Hall).
Major Business -type funds capital asset events during the fiscal year 2021 included the
following:
➢ Removed and replaced water mains on 10' Avenue West at a cost of $449,329.
➢ Upsized main at Kalispell North Town Center at a cost of $202,273.
➢ Upgraded the security systems at City water well sites.
➢ 4,297 linear feet of new water main valued at $359,758 was installed and contributed to the
City by developers.
➢ Disposed fully depreciated assets of the water department with a cost basis of $46,876.
➢ Purchased new sewer department pickup at a cost of about $60,000.
➢ Completed the west side interceptor sewer project and placed into service at a cost of
$14,242,850.
➢ Repaired and replaced 3.5 blocks of sewer main on I Ph Street West.
24
➢ 3,091 linear feet of new sewer main valued at $194,785 was installed and contributed to the
City by developers.
➢ 2,420 linear feet of new stormwater main valued at $249,695 was installed and contributed to
the City by developers.
Additional information on capital assets can be found in the notes of the basic financial
statements (Note D. Capital Assets pages 47 -49).
Debt
At the end of fiscal year 2021, the City of Kalispell had total long-term debt outstanding of
$31,495,451. Of this amount, $230,000 comprises debt backed by the full faith and credit of the
government and $4,405,000 represents bonds secured solely by specific revenue sources (i.e.,
revenue bonds). The remainder consists of $24,439,720 outstanding on State Revolving Fund
loans for water and sewer infrastructure. There is also $1,315,450 of special assessment debt for
which the City of Kalispell is liable in the event of default by the property owners subject to the
assessment, and $1,105,282 of loans for the purchase of other property and equipment
($671,068) and for gap lending ($434,214).
CITY OF KALISPELL'S OUTSTANDING DEBT
Governmental Business -type Total
activities activities
2021 2020 2021 2020 2021 2020
Other obligations of the City of Kalispell include accrued vacation pay and sick leave
(compensated absences, $2,043,520), OPEB liability ($3,843,941), and pension liability
($14,552,318). More detailed information about the City's long-term liabilities is presented in
the notes to the financial statements (Note E. Long -Term Debt pages 50-54).
ECONONUC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The City's elected and appointed officials considered many factors when adopting the fiscal year
2022 budget, before imposing tax rates and fees of the business -type activities. Some of these
factors include: capital improvements identified in the City's Capital Improvement Program,
inflation rates, the City's collective bargaining units, the local economy, national and world
events (pandemic), and the citizen's ability to pay. Inflation rates, as well as interest rates have a
significant impact on the cost of City projects. The 2021 pandemic drove interest rates to almost
historically low levels and has ushered in a housing boom in the Flathead, median home prices
are up over 69%. Indications have ranged up to 35,000 as the number of new county residents.
The low cost of housing (comparatively) and the ability to work remotely are contributing
factors. The Bureau of Labor Statistics of the U.S. Department of Labor report unemployment
rates are falling and near the pre pandemic levels.
25
Request for Information
This financial report is designed to provide a general overview of the City of Kalispell's finances
for all those with an interest in the government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to the City of Kalispell, Finance Director, P.O. Box 1997, Kalispell, MT 59903-1997.
BASIC FINANCIAL STATEMENTS
GOVERNMENT - WIDE FINANCIAL
STATEMENTS
ASSETS
Cash and investments
Taxes and assessments receivable
Accounts receivable - net
Notes and loans receivable
Contracts receivable
Due from other
Due from other governments
Prepaids
Inventories
Properties held for sale
Other debits
Restricted assets:
Cash and investments
Capital assets (net of accumulated depreciation):
Land
Construction in Progress
Depreciable
Total assets
DEFERRED OUTFLOWS OF RESOURCES
OPEB differences/changes
Contractually required contributions related to pensions
Total deferred outflows of resources
Total assets and deferred outflows of resources
LIABILITIES
Due to ph benefit providers
Accounts payable
Retainage
Deposits payable
Accrued payroll
Unearned revenue
Deferred revenue
Current portion of long-term liabilities
Bonds and notes - not capital
Bonds and notes - capital
Compensated absences payable
Other credits
Long-term liabilities, due in more than one year
Bonds and notes - not capital
Bonds and notes - capital
Compensated absences
Net OPEB liability
Net pension liability
Total liabilities
DEFERRED INFLOWS OF RESOURCES
OPEB differences/changes
Diff. between est. and actual earnings on pension plan inv.
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted by donors for specific purposes
Restricted for capital projects
Restricted for debt service
Restricted for special projects
Restricted for other purposes
Unrestricted
Total net position
See accompanying Notes to the Financial Statements
City of Kalispell, Montana
Statement of Net Position
June 30, 2021
Component Units
Governmental
Business -type
Downtown
Tourism
Activities
Activities
Total
BID
BID
$ 24,453,379 $
22,726,666 $
47,180,045 $
69,114
$ 430,352
2,268,874
78,542
2,347,416
7,169
330,553
463,516
794,069
2,423,026
-
2,423,026
344,383
730,810
1,075,193
11,168
-
11,168
1,922,912
1,136,366
3,059,278
5,772
75,577
70,501
146,078
3,500
-
82,096
82,096
349,059
-
349,059
-
169
169
2,378,309
10,962,570
13,340,879
3,743,166
354,021
4,097,187
3,790,317
2,472,283
6,262,600
69,922,022
98,940,146
168,762,168
$ 112,012,745 $
137,917,686 $
249,930,431 $
85,555
$ 430,352
$ 946,824 $
101,707 $
1,048,531
3,719,311
624,136
4,343,447
$ 4,666,135 $
725,843 $
5,391,978 $
-
$
$ 116,678,880 $
138,643,529 $
255,322,409 $
85,555
$ 430,352
$ 346,422
-
346,422
1,101,114 $
253,232 $
1,354,346 $
10,897
$ 15,894
151,510
93,058
244,568
1,076,332
-
1,076,332
554,901
119,390
674,291
3,137,433
-
3,137,433
27,757
-
27,757
828278
1,771,327
2,599,605
1,212,328
213,388
1,425,716
-
14,760
14,760
406,457
-
406,457
6,310,132
22,151,500
28,461,632
469,569
148,235
617,804
3,471,079
372,862
3,943,941
11,926,607
2,625,711
14,552,318
$ 31,019,919 $
27,763,463 $
58,783,382 $
10,897
$ 15,894
1,451,750
155,946
1,607,696
797,674
214,574
1,012,248
$ 2,249,424 $
370,520 $
2,619,944 $
-
$
$ 70,317,095 $
77,743,623 $
148,060,718 $
$
3,353,169
-
3,353,169
1,314,770
5,394,547
6,709,317
1279,479
1,895,897
3,175,376
3,370,941
315,182
3,686,123
158,187
280,000
438,187
3,615,896
24,880,297
28,496,193
74,658
414,458
$ 83,409,537 $
110,509,546 $
193,919,083 $
74,658
$ 414,458
27
Functions/Programs
Primary government:
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Community development
Debt service - interest
Total governmental activities
Business -type activities:
Water
Sewer
Solid Waste
Total business -type activities
Total primary government
W Component units:
00 Downtown BID
Tourism BID
Total component units
City of Kalispell, Montana
Statement of Activities
For the Fiscal Year Ended June 30, 2021
Net (Expenses) Revenues and
Changes in Net Assets
Program Revenues
Primary Government
Component Units
Indirect
Operating
Capital
Business -
Expense
Charges for Grants and Grants and
Governmental
type
Downtown
Tourism
Expenses
Allocation
Services Contributions Contributions
Activities
Activities
Total
BID
BID
$ 6,296,248
$ 208,886
$ 1,082,008 $ - $
1,045,006
$ (4,378,120) $
$
(4,378,120) $
$
14,775,234
306,233
2,986,568 6,136,862
-
(5,958,037)
(5,958,037)
3,775,915
415,353
2,854,584 56,224
(1,280,460)
(1,280,460)
2,700,856
86,749
1,349,752 63,901
(1,373,952)
(1,373,952)
3,063,846
30,000
50,894 100,888
(2,942,064)
(2,942,064)
283,585
(283,585)
(283,585)
$ 30,895,684
$ 1,047,221
$ 8,323,806 $ 6,357,875 $
1,045,006
$ (16,216,218) $
-
$
(16,216,218) $
$
$ 3,150,621
$ 273,287
$ 4,633,672 $ 54,282 $
359,758
$
1,623,804
1,623,804
5,769,942
483,881
10,302,333 149,441
439,734
4,637,685
4,637,685
854,875
153,864
1,096,394 19,156
106,811
106,811
$ 9,775,438
911,032
$ 16,032,399 $ 222,879 $
799,492
$ $
6,368,300
$
6,368,300 $
$
$ 40,671,122
1,958,253
$ 24,356,205 $ 6,580,754 $
1,844,498
$ (16,216,218) $
6,368,300
$
(9,847,918) $
$
-
$
5,000
$ $ $
$
(953) $
438,519
438,519
5,000
522,587
522,587
79,068
$ 561,317
$ 10,368
$ 649,800 $ $
$
(953) $
79,068
General Revenues:
Property taxes for general purposes
$ 10,109,452 $
$
10,109,452
Video poker apportionment
69,175
69,175
Miscellaneous
514,139
514,139
Interest/investment earnings
387,748
209,468
597,216
389
1,282
State entitlement
3,251,245
-
3,251,245
Gas Tax
870,890
870,890
Total general revenues, special items
and transfers
$ 15,202,649 $
209,468
$
15,412,117 $
389 $
1,282
Change in net position
$ (1,013,569) $
6,577,768
$
5,564,199
(564)
80,350
Net position - beginning
$ 84,611,558 $
103,931,778
$
188,543,336 $
75,222 $
334,108
Restatements
(188,451)
(188,451)
Net position - beginning - restated
$ 84,423,106 $
103,931,778
$
188,354,884 $
75,222 $
334,108
Net position - end
$ 83,409,537 $
110,509,546
$
193,919,083 $
74,658 $
414,458
See accompanying Notes to the Financial Statements
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
General Fund — The City's primary operating fund and accounts for the financial
operations of the City not accounted for in any other fund. Principal sources of revenue
are property taxes, state and local shared revenue, charges for services, and fines and
forfeitures. Principal expenditures are for public safety.
Street Maintenance — Accounts for special assessment revenues levied, received, and
expended to keep streets clean, safe, and drive -able.
American Rescue Plan Act — Accounts for funds received by the City, through this Act of
the U.S. Congress, for City infrastructure projects approved for this funding.
City of Kalispell, Montana
Balance Sheet
Governmental Funds
June 30, 2021
American Other Total
General Street Rescue Governmental Governmental
Fund Maintenance Plan Funds Funds
ASSETS
Cash and investments
$
6,393,857
$ 3,363,813
$ 3,137,433
$ 11,067,524
$ 23,962,627
Taxes and assessments receivable
280,470
109,998
-
1,878,406
2,268,874
Accounts receivable - net
-
-
330,553
330,553
Notes and loans receivable
2,423,026
2,423,026
Contracts receivable
-
296,312
296,312
Due from other
6,168
5,000
11,168
Due from other funds
390,745
-
636
391,381
Due from other governments
313,709
156,665
1,452,538
1,922,912
Prepaids
4,360
18,728
41,903
64,991
Properties held for sale
-
-
349,059
349,059
Restricted assets:
Cash and investments
$
-
$
$
$ 2,378,309
$ 2,378,309
Advances to other funds
1,300,000
-
1,300,000
Total assets
$
8,689,309
$ 3,649,204
$ 3,137,433
$ 20,223,266
$ 35,699,212
LIABILITIES
Due to p/r benefit providers
$
346,422
$ -
$
$ -
$ 346,422
Accounts payable
56,262
118,909
905,372
1,080,543
Retainage
-
-
151,510
151,510
Deposits payable
1,076,332
-
-
1,076,332
Accrued payroll
337,592
43,392
148,362
529,346
Due to other funds
-
-
391,381
391,381
Unearned revenue
3,137,433
-
3,137,433
Advances from other funds
-
1,300,000
1,300,000
Total liabilities
$
1,816,608
$ 162,301
$ 3,137,433
$ 2,896,625
$ 8,012,967
Deferred inflows of resources
Unavailable revenue - deferred accounts receivable
$
-
$ -
$ -
$ 326,744
$ 326,744
Unavailable revenue - deferred taxes and assessments
280,470
109,998
1,878,406
2,268,874
Total deferred inflows of resources
$
280,470
$ 109,998
$
$ 2,205,150
$ 2,595,618
FUND BALANCES
Nonspendable - not in spendable form
Long-term receivables $
1,300,000 $
- $ $
- $
1,300,000
Prepaids
4,360
18,728
41,903
64,991
Restricted
General Government
-
-
158,187
158,187
Public Safety
-
3,910,144
3,910,144
Public Works
3,358,177
2,273,546
5,631,723
Culture and Recreation
-
2,222,932
2,222,932
Community Development
5,289,532
5,289,532
Debt Service
1,279,479
1,279,479
Unrestricted Fund Balances:
Assigned
General Government
63,073
-
63,073
Capital Equipment
550,000
550,000
Parking
23,542
23,542
Miscellaneous
1,422,754
1,422,754
Unassigned fund balance
3,228,502
(54,232)
3,174,270
Total fund balances $
6,592,231 $
3,376,905 $ $
15,121,491 $
25,090,627
Total liabilities, deferred inflows of resources, and fund balanc, $
8,689,309 $
3,649,204 $ 3,137,433 $
20,223,266 $
35,699,212
See accompanying Notes to the Financial Statements
29
City of Kalispell, Montana
Reconciliation of the Balance Sheet - Governmental Funds to the
Statement of Net Position
June 30, 2021
Total fund balances - governmental funds $ 25,090,627
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in
the funds. 77,210,920
An internal service fund is used by management to charge the costs of providing services within the
government. The assets and liabilities of the internal service funds are included in governmental activities
in the government -wide statement of net position 711,005
Deferred outflow of resources related to pensions
- Contributions made subsequent to the measurement date, recognized on the statement of net 3,719,311
position 946,824
- OPEB differences and changes
Long-term liabilities are not due and payable in the current period and therefore are not reported as
liabilities in the funds.
- Bonds and notes
(7,572,624)
- Compensated absences
(1,645,034)
- Other post employment benefits
(3,471,079)
- Net pension liability
(11,926,607)
- Deferred inflow of resources - related to pensions
(797,674)
- Deferred inflow of resources - related to OPEB
(1,451,750)
Taxes, assessments and accounts receivable will be collected this year, but are not available soon enough to
pay for the current period's expenditures and, therefore, are reported as unavailable revenue in the funds.
- Deferred taxes and assessments 2,268,874
- Ambulance 326,744
Total net position - governmental activities $ 83,409,537
See accompanying Notes to the Financial Statements
30
City of Kalispell, Montana
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended June 30, 2021
REVENUES
Taxes and assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Investment earnings
Total revenues
EXPENDITURES
General government
Public safety
Public works
Parks and recreation
Community development
Debt service - principal
Debt service - interest
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers out
Total other financing sources (uses)
Net Change in Fund Balance
Fund balances - beginning
Restatements
Fund balances - beginning, restated
Fund balance - ending
See accompanying Notes to the Financial Statements
Other
Total
Street
American
Governmental
Governmental
General Fund
Maintenance
Rescue Plan
Funds
Funds
$ 6,888,032 $
2,787,413
$
$ 5,246,690 $
14,922,135
230,574
-
-
230,574
4,857,419
59,694
3,555,051
8,472,164
1,010,595
6,879
2,800,569
3,818,043
495,459
-
-
495,459
127,516
30,820
293,766
452,102
42,865
18,602
326,281
387,748
$ 13,652,460 $
2,903,408
$
$ 12,222,357 $
28,778,225
$ 3,206,238 $
-
$
$ - $
3,206,238
9,884,715
-
2,238,510
12,123,225
49,362
2,480,405
733,002
3,262,769
-
-
2,196,358
2,196,358
412,295
-
2,582,991
2,995,286
44,387
25,649
815,976
886,012
6,582
13,405
263,598
283,585
74,615
97,611
2,618,302
2,790,528
$ 13,678,194 $
2,617,070
$
$ 11,448,737 $
27,744,001
$ (25,734) $
286,338
$
$ 773,620 $
1,034,224
$ - $
-
$
$ 193,484 $
193,484
970,000
145,170
1,115,170
-
(1,115,170)
(1,115,170)
$ 970,000 $
-
$
$ (776,516) $
193,484
$ 944,266 $
286,338
$
$ (2,896) $
1,227,708
$ 5,793,803 $
3,090,567
$
$ 15,167,000 $
24,051,370
(145,838)
(42,613)
(188,451)
$ 5,647,965 $
3,090,567
$
$ 15,124,387 $
23,862,919
$ 6,592,231 $
3,376,905
$
$ 15,121,491 $
25,090,627
31
City of Kalispell, Montana
Reconciliation of the Statement of Revenues, Expenditures.
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30, 2021
Amounts reported for governmental activities in the statement of
activities are different because:
Net change in fund balances - total governmental funds $ 1,227,708
Governmental funds report capital outlays as expenditures while governmental activities report depreciation
expense to allocate those expenditures over the life of the assets:
- Capital assets purchased 2,790,528
- Depreciation expense (4,355,942)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as
revenues in the funds:
- Donated capital assets 56,224
- Long-term receivables (deferred revenue) (248,982)
The change in compensated absences is shown as an expense in the
Statement of Activities (109,105)
Repayment of debt principal is an expenditures in the governmental funds, but the repayment reduces long-
term debt in the Statement of Net Position:
- Long-term debt principal payments 886,012
Long term debt proceeds provide current financial resources to the governmental funds, but issuing debt
increases long-term liabilities in the Statement of Net Position:
- Proceeds from the sale of long-term debt (193,484)
Changes to net pension liability are shown as revenues/expenses on the Statement of Activities (859,023)
The increase in other post employment benefits is shown as an expense in the
Statement of Activities (420,873)
Internal service funds are used by management to share the costs of certain activities, to individual funds.
The net revenue of the internal service funds is reported with the governmental activities of the Government -
Wide Statement of Activities 213,368
Change in net position - Statement of Activities $ (1,013,569)
See accompanying Notes to the Financial Statements
kX
PROPRIETARY FUND FINANCIAL
STATEMENTS
MAJOR ENTERPRISE FUNDS
Water Fund — Accounts for the City's water utility operations, including water impact
fees.
Sewer Fund — Accounts for the City's sewer and storm water utility operations, including
sewer and storm impact fees.
INTERNAL SERVICE FUNDS
Information Technology Fund — used to account for the goods and services provided by
the information technology department to other departments of the City on a cost -
reimbursement basis.
Central Garage Fund — used to account for the goods and services provided by the central
garage to other departments of the City on a cost -reimbursement basis.
City of Kalispell, Montana
Statement of Net Position
Proprietary Funds
June 30,2021
Governmental
Business -Type
Activities
- Enterprise Funds
Activities
Non -major
Internal
Water
Sewer
Enterprise
Totals
Service Funds
ASSETS
Current assets:
Cash and investments
$ 11,464,515 $
9,942,487 $
1,319,664 $
22,726,666
$ 490,752
Taxes and assessments receivable
-
50,608
27,934
78,542
-
Accounts receivable - net
188,385
275,131
-
463,516
-
Contracts receivable
128,894
601,926
730,810
48,071
Due from other
-
-
-
-
-
Due from other governments
19,528
1,059,993
56,845
1,136,366
-
Prepaids
27,061
36,054
7,386
70,501
10,586
Inventories
82,096
-
-
82,096
-
Other debits
-
-
169
169
Restricted assets:
Cash and investments
1,750,380
9212,190
-
10,962,570
-
Total current assets
$ 13,660,849 $
21,178,389 $
1,411,998 $
36251,236
$ 549,409
Noncurrent assets:
Capital assets (net of accumulated depreciation):
Land
$ 105,958 $
248,063 $
- $
354,021
$ -
Construction in Progress
446,021
2,026262
-
2,472283
-
Depreciable
34,475,284
63,639274
725,588
98,840,146
244,584
Total noncurrent assets
$ 35,027263 $
65,913,599 $
725,588 $
101,666,450
$ 244,584
Total assets
$ 48,688,112 $
87,091,988 $
2,137,586 $
137,917,686
$ 793,993
DEFERRED OUTFLOWS OF RESOURCES
OPEB differences/changes
$ 44,038 $
57,669 $
- $
101,707
$ -
Pension plan subsequent contributions/changes
250,415
285,351
88,370
624,136
Total deferred outflows of resources
$ 294,453 $
343,020 $
88,370 $
725,843
$
LIABILITIES
Current liabilities
Accounts payable
$
47,640
$ 199,587 $
6,005
$ 253,232 $
20,571
Retainage
22,576
70,482
-
93,058
-
Accrued payroll
38,105
61,258
20,027
119,390
25,554
Bonds and notes - capital
345,320
1,426,007
-
1,771,327
-
Compensated absences payable
65,434
104,410
43,544
213,388
25,122
Other credits
14,760
-
-
14,760
-
Total current liabilities
$
533,835
$ 1,861,744 $
69,576
$ 2,465,155 $
71,247
Noncurrent liabilities:
Bonds and notes - capital
$
4,166,005
$ 17,985,495 $
-
$ 22,151,500 $
-
Compensated absences
42,282
68,524
37,429
148,235
11,741
Net OPEB liability
161,445
211,417
-
372,862
-
Net pension liability
1,053,484
1,200,459
371,768
2,625,711
Total noncurrent liabilities
$
5,423216
$ 19,465,895 $
409,197
$ 25298,308 $
11,741
Total liabilities
$
5,957,051
$ 21,327,639 $
478,773
$ 27,763,463 $
82,988
DEFERRED INFLOWS OF RESOURCES
OPEB differences/changes
67,523
88,423
-
155,946
Pension -dill. between projected and actual earnings
$
86,091
$ 98,102 $
30,381
$ 214,574 $
Total deferred inflows of resources
$
153,614
$ 186,525 $
30,381
$ 370,520 $
NET POSITION
Net investment in capital assets
Restricted for capital projects
Restricted for debt service
Restricted for special projects
Restricted for other purposes
Unrestricted
Total net position
See accompanying Notes to the Financial Statements
$ 30,515,938 $ 46,502,097 $ 725,588 $ 77,743,623 $ 244,584
- 51394,547 - 5,394,547 -
524,854 1,371,043 1,895,897
- 315,182 315,182
- 280,000 280,000 -
11,831,108 12,057,975 991,214 24,880,297 466,421
$ 42,871,900 $ 65,920,844 $ 1,716,802 $ 110,509,546 $ 711,005
33
City of Kalispell, Montana
Statement of Revenues, Expenses, and Changes
in Net Position
Proprietary Funds
For the Fiscal Year Ended June
30, 2021
Governmental
Business -Type Activities - Enterprise Funds
Activities
Non -major
Internal
Water
Sewer
Enterprise
Totals
Service Funds
OPERATING REVENUES
Charges for services
$ 3,599,528 $
6,050,204
$ 1,091,304
$
10,741,036
$ 1,673,492
Miscellaneous revenues
288,000
45,837
5,090
338,927
-
Special assessments
-
1,795,899
-
1,795,899
Total operating revenues
$ 3,887,528 $
7,891,940
$ 1,096,394
$
12,875,862
$ 1,673,492
OPERATING EXPENSES
Personal services
$ 1,174,548 $
1,644,210
$ 514,099
$
3,332,857
$ 669,464
Supplies
95,019
267,470
97,013
459,502
335,483
Purchased services
363,699
1,316,444
81,787
1,761,930
356,813
Building materials
214,039
49,351
-
263,390
-
Fixed charges
318,043
578,235
184,023
1,080,301
40,247
Depreciation
1,140,543
1,941,383
131,817
3,213,743
60,695
Total operating expenses
$ 3,305,891 $
5,797,093
$ 1,008,739
$
10,111,723
$ 1,462,702
Operating income (loss)
$ 581,637 $
2,094,847
$ 87,655
$
2,764,139
$ 210,790
NON -OPERATING REVENUES (EXPENSES)
Intergovernmental income
$
54,282
$ 149,441
$ 19,156
$ 222,879
$
Impact Fees
746,144
2,410,393
-
3,156,537
-
Interest revenue
84,058
116,172
9,238
209,468
2,578
Debt service interest expense
(118,017)
(456,730)
-
(574,747)
-
Total non -operating revenues (expenses)
$
766,467
$ 2,219,276
$ 28,394
$ 3,014,137
$ 2,578
Income (loss) before contributions and transfer
$
1,348,104
$ 4,314,123
$ 116,049
$ 5,778,276
$ 213,368
Contributions of infrastructure - developers, other
359,758
439,734
-
799,492
-
Change in net position
$
1,707,862
$ 4,753,857
$ 116,049
$ 6,577,768
$ 213,368
Net Position - Beginning of the year
$
41,164,038
$ 61,166,987
$ 1,600,753
$ 103,931,778
$ 497,637
Restatements
-
-
-
-
-
Net Position - Beginning of the year - Restated
$
41,164,038
$ 61,166,987
$ 1,600,753
$ 103,931,778
$ 497,637
Net Position - End of the year
$
42,871,900
$ 65,920,844
$ 1,716,802
$ 110,509,546
$ 711,005
See accompanying Notes to the Financial Statements
34
City of Kalispell, Montana
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2021
Governmental
Business - Type Activities Activities
Internal Set -vice
Non -major
Water Sewer Enterprise Totals Fund
Cash flows from operating activities:
Cash received from customers $ 3,590,637 $ $6,023,255 $ 1,137,904 $ 10,751,796 $ 1,675,737
Cash received from assessments - $1,826,778 - 1,826,778 -
Cash received from miscellaneous sources 288,000 $45,837 5,090 338,927
Cash payments for claims (1,060,282) ($2,358,599) (362,640) (3,781,521) (797,147)
Cash payments to employees (1,022,617) ($1,796,961) (534,833) (3,354,411) (658,962)
Net cash provided (used) by operating activities $ 1,795,738 $ 3,740,310 $ 245,521 $ 5,781,569 $ 219,628
Cash flows from capital and related financing activities:
Principal paid on bonds, loans and advances $ ($336,460) $ ($1,324,841) $ - (1,661,301) $ -
Interest paid on bonds, loans and advances (118,017) ($456,730) (574,747)
Acquisition and construction of capital assets ($1,550,785) ($2,975,442) (495,630) (5,021,857) (91,436)
Proceeds from bonds, loans and advances 110,887 $1,061,034 1,171,921
Admin Fees ($17,500) ($39,400) (56,900)
hnpact fees $705,390 2,136,137 2,841,527
Net cash provided (used) by capital and related financing activities $ (1,206,485) $ ($1,599,242) $ (495,630) $ (3,301,357) $ (91,436)
Cash flows from non -capital financing activities:
Hydrant meter deposits $ 1,640 $ $ $ 1,640 $
Net cash provided (used) from non -capital financing activities $ 1,640 $ $ $ 1,640 $ -
Cash flows from investing activities:
Interest on investments $ $84,058 $ $116,172 $ 9,238 $ 209,468 $ 2,578
Net cash provided (used) by investing activities $ 84,058 $ 116,172 $ 9,238 $ 209,468 $ 2,578
Net increase (decrease)in cash and cash equivalents $ 674,951 $ 2,257,240 $ (240,871) $ 2,691,320 $ 130,770
Cash and cash equivalents at beginning $12,539,944 $16,897,436 1,560,535 30,997,915 359,982
Cash and cash equivalents at end $ 13,214,895 $ 19,154,676 $ 1,319,664 $ 33,689,235 $ 490,752
Reconciliation to Statement of Net Position:
Cash and investments $ 11,464,515 $ 10,768,149 $ 1,319,664 $ 23,552,328 $ 490,752
Restricted cash and investments 1,750,380 8,386,528 - 10,136,908 -
Total restricted and not restricted cash and investments $ 13,214,895 $ 19,154,677 $ 1,319,664 $ 33,689,236 $ 490,752
Reconciliation of operating income (loss) to net cash provided
(used) by operating activities:
Operating income (loss) $ 581,637 $ 2,094,847 $ 87,655 $ 2,764,139 $ 210,790
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation 1,140,543 1,941,383 131,818 3,213,744 60,695
Pension Adj. - (184,880) (37,258) (222,138) -
Other Post Employment Benefits Expense 143,340 42,628 185,968 -
Changes in assets and liabilities:
Accounts receivable - net (8,891) (26,949) (35,840) 2,245
Increase in Inventory 23,808 - 23,808 -
Taxes and assessments receivable, net - (5,586) 46,600 41,014
Prepaid expenses (8,863) (15,000) - - (23,863) (4,857)
Increase Comp Abs 10,128 2,840 13,767 26,735 63
Decrease in due from County - 36,465 - 36,465 -
Accounts payable (95,427) (147,099) 182 (242,344) (59,747)
Accrued payroll 9,463 1,661 2,757 13,881 10,439
Net cash provided (used) by operating activities $ 1,795,738 $ 3,740,310 $ 245,521 $ 5,781,569 $ 219,628
The City received non cash contributions
of land and infrastructure as follows: $ 359,758 $ 439,734 $ - $ 799,492 $ -
See accompanying notes to the financial statements
35
FIDUCIARY FUND FINANCIAL
STATEMENTS
CUSTODIAL FUNDS
Custodial Funds — used to account for assets held by the City as an agent for individuals,
private organizations, other governments, and/or other funds.
City of Kalispell, Montana
Statement of Fiduciary Net Position
Custodial Funds
June 30, 2021
Custodial
Funds
ASSETS
Cash and evidence $ 12,535
Total assets $ 12,535
LIABILITIES
Assets held for others $ 12,535
Total liabilities $ 12,535
NET POSITION
See accompanying Notes to the Financial Statements
36
NOTES TO THE FINANCIAL
STATEMENTS
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Kalispell's accompanying financial statements have been prepared in conformity with generally accepted
accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB), the accepted
standard -setting body for establishing governmental accounting and financial reporting principles.
The accompanying financial statements present the financial position of the City and the various funds and fund types, the
results of operations of the City and the various funds and fund types, and the cash flows of the proprietary funds. The
financial statements are presented as of June 30, 2021, and for the year then ended.
The more significant accounting policies of the City are described below.
Recently Implemented Accounting Pronouncements
For the fiscal year ended June 30, 2021, the City early implemented GASB Statement 98, The Annual Comprehensive
Financial Report. Statement No. 98 establishes the term annual comprehensive financial report and its acronym ACFR.
That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted
accounting principles for state and local governments.
Financial Reporting Entity
In determining the financial reporting entity, the City complies with the provisions for GASB statement No. 14, The
Financial Reporting Entity, and includes all component units of which the City appointed a voting majority of the units'
board; the City is either able to impose its will on the unit or a financial benefit or burden relationship exists.
Primary Government
The City of Kalispell is a political subdivision of the State of Montana governed by an elected Mayor and Council duly
elected by the registered voters of the City. The City utilizes the City Manager form of government. The City is considered
a primary government because it is a general-purpose local government. Further, it meets the following criteria: (a) It has a
separately elected governing body (b) It is legally separate and (c) It is fiscally independent from the State and other local
governments.
The accompanying financial statements present the primary government and entities for which the government is considered
financially accountable (component units). These financial statements include all funds, agencies, boards, commissions, and
authorities, which meet the criteria for inclusion in the City's financial report. These criteria include financial accountability,
appointment of a majority of the secondary government and the financial benefit or burden derived by the primary
government from a secondary government.
Discretely Presented Component Units
Discretely presented component units are separate legal entities that meet the component unit criteria described above but do
not meet the criteria for blending. The City's discretely presented component units, the Downtown Business Improvement
District and the Tourism Business Improvement District are legally separate organizations of the City, but the City is
financially accountable. Neither the Business Improvement District nor the Tourism Business Improvement District issue
financial statements separate from the City of Kalispell. The City reports the two component units in separate columns to
emphasize that they are legally separate from the City and from each other.
38
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Downtown Business Improvement District
On April 3, 2017, by resolution 5801, the City created the Downtown Business Improvement District (BID). The Mayor and
City Council appoint the Board of Directors. The City is able to impose its will on the BID as it is authorized to levy
assessments to support the activities of the BID, and approves their annual budget. The purpose of said Business
Improvement District is to promote the health, safety, prosperity, security and general welfare of the inhabitants of the City of
Kalispell and the proposed district and appears to be of special benefit to the property within the District. The District
boundaries are roughly 31d Avenue East to 31d Avenue West between Center Street and 5' Street South. Publicly owned
property and owner -occupied single-family dwellings are exempt from the assessments related to the District.
Tourism Business Improvement District
On May 3, 2010, by resolution 5425, the City created the Tourism Business Improvement District (TBID). The Mayor with
the approval of the City Council appointed seven owners of property within the district to act as the Board of Trustees of the
District. The City is able to impose its will on the TBID as it is authorized to levy assessments to support the activities of the
TBID, and approves their annual budget. The purpose of said Tourism Business Improvement District is to promote the
health, safety, prosperity, security and general welfare of the inhabitants of the City of Kalispell and the proposed district and
appears to be of special benefit to the property within the District. The District is made up of those properties within the
corporate limits of the City of Kalispell with five or more rooms providing overnight stays for transient patrons at its
business.
Basis of Presentation, Measurement Focus, and Basis of Accounting
Government -wide Financial Statements
The government -wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report
information on all the nonfiduciary activities of the primary government and its component units. For the most part, the
effect of interfund activity has been removed from these government -wide financial statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities,
which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately
from certain legally separate component units for which the primary government is financially accountable.
Eliminations have been made to minimize the double counting of business -type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by
program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The general
government function of the City includes expenses that are, in essence, indirect expenses of other functions. These indirect
expenses are allocated to each related function. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not properly included among program revenues are reported as general revenues.
Indirect expenses reported in the statement of activities are allocated to the different functions of the City. These indirect
expenses include administration, data processing, and central garage. The administrative cost allocation is based on each
functions' percentage of total City expenses. Information Technology is allocated based approximately on that function's
usage of the City's computer servers. Central garage expenses are allocated to the other functions of the City based on actual
invoicing.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the
latter are excluded from the government -wide financial statements. Major individual governmental funds and major
individual enterprise funds are reported as separate columns in the fund financial statements.
39
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Certain eliminations have been made as prescribed by GASB 34 regarding inter -fund activities, payables and receivables.
All internal balances in the Statement of Net Position have been eliminated except those representing balances between the
governmental activities and business -type activities, which are presented as internal balances and eliminated in the total
primary government column. In the Statement of Activities, internal service fund financial statements have been eliminated;
however, interfund services provided and used are not eliminated in the process of consolidation. Interfund services provided
and used are not eliminated in the process of consolidation.
Measurement Focus and Basis of Accounting
On the government -wide Statement of Net Position and the Statement of Activities, both governmental and business -type
activities are presented using the economic resources measurement focus and the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred,
regardless of the timing of the cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been
met. The City generally applies restricted resources to expenses incurred before using unrestricted resources when both
restricted and unrestricted net assets are available.
The City has chosen not to accrue the interest payable of general long-term debt at year-end. This practice results in interest
expense reported for governmental activities on the statement of activities to equal the interest expenditure on the statement
of revenues, expenditures, and changes in fund balance. Although, this is contrary to full accrual accounting, the City feels
that it is immaterial in the presentation of its financial statements.
Fund Financial Statements
Basis of Presentation
The financial records of the City are organized into funds. A fund is an independent fiscal and accounting entity with a self -
balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid
management in demonstrating compliance with finance -related legal and contractual provisions. The minimum number of
funds is maintained consistent with legal and managerial requirements. Funds are organized into three categories:
governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary
categories. Each major fund is displayed in a separate column in the governmental or proprietary funds statements. All the
remaining funds are aggregated and reported in a single column as non -major funds. A fund is considered major if it is the
primary operating fund of the City (General fund) or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund
are at least 10 percent of the corresponding total for all funds of that category or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise funds
are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.
Measurementfocus and Basis of Accounting
Governmental funds are used to account for the City's general government activities. Governmental fund types use the
flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified
accrual basis of accounting, revenues are recognized when susceptible to accrual, (i.e., when they are "measurable and
available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within
the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available
if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred
40
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
except for un-matured interest on general long-term debt which is recognized when due, and certain compensated absences
and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable
available financial resources.
Real and personal property taxes, special assessments, charges for current services, and interest earnings are susceptible to
accrual. Other receipts and taxes become measurable and available when cash is received by the City and are recognized as
revenue at that time. The City recorded real and personal property taxes and assessments levied for the current year as
revenue. Taxes and assessments receivable remaining unpaid at year-end and not expected to be collected soon enough
thereafter to be available to pay obligations of the current year were recorded as deferred revenue, with a corresponding
reduction in revenues, as required by generally accepted accounting principles. In addition, prior period delinquent taxes and
assessments collected in the current period were recorded as revenue in the current period as required by generally accepted
accounting principles. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to
accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been
incurred and all other grant requirements have been met.
Major Governmental Funds
The City reports the following major governmental funds:
The General Fund is always a major fund. This is the City's primary operating fund, and it accounts for all financial
resources of the City except those required to be accounted for in other funds.
The Street Maintenance Fund (special revenue) fund was established to account for the repairs and other costs incurred in
the maintenance of the City's streets. An assessment on the City of Kalispell's taxpayers is the main source of revenue for
this fund.
The American Recovery Act Infrastructure (capital project) fund was established to account for Federal and State dollars
received as part of the American Recovery Act. These grant funds will be used with local water and sewer fund dollars for
the construction cost associated with allowed infrastructure projects.
Proprietary funds are accounted for using the accrual basis of accounting. These funds account for operations that are
primarily financed by user charges. The flow of economic resources focus concerns determining costs as a means of
maintaining the capital investment and management control. Revenues are recognized when earned and expenses are
recognized when incurred. Allocations of costs, such as depreciation, are recorded in proprietary funds.
Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connections with a proprietary fund's
principal ongoing operations. The principal operating revenues for enterprise funds are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues
and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
41
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Major Proprietary Funds
The City reports the following major proprietary funds:
The Water Fund accounts for the activities of the City's water distribution operations
The Sewer Fund accounts for the activities of the City's sewer collection and treatment operations and includes the storm
sewer system.
Additionally, the City reports the following fund types:
Internal Service. These funds account for the financing of goods and services provided by one department to other
departments on a cost reimbursement basis. These funds account for the City's fleet repair and maintenance (Central Garage)
and provide technology systems and a means to distribute public information (Information Technology) to City Staff for their
respective provisions of services to the City of Kalispell.
Eliminations have been made to minimize the double accounting of internal activities. The City's policy for internal service
elimination is to eliminate amounts related to overhead and indirect expenditures and not services provided. Assets of the
internal service funds are allocated to the governmental -type funds and the business -type funds based on which fund type
benefits the most from its services. Accordingly, the Information Technology and Central Garage funds' assets are included
with the governmental activities.
All Fiduciary funds reported account for assets held by the City of Kalispell in a trustee capacity (custodial fund). The
custodial fund does not present results of operations or have a measurement focus. Agency funds are accounted for using
the accrual basis of accounting.
The Kalispell Police Department (KPD) Evidence custodial fund accounts for assets that the City holds as evidence but
will be returned to the owner when it is no longer required as evidence.
Assets, Liabilities, and Net Assets or Equity
1. Cash and Investments
Cash and investments are under the management of the City's Treasurer and consist primarily of demand deposits and
investments in U.S. Government Bonds. Interest income earned on City deposits is distributed to the appropriate funds
utilizing a formula based on the average balance of cash and investments of each fund.
Montana State statutes authorize the City to invest in interest -bearing savings accounts, certificates of deposits, and time
deposits insured up to $250,000 by the Federal Deposit Insurance Corporation or fully collateralized, U.S. government and
U.S. agency obligations and repurchase agreements where there is a master repurchase agreement and collateral held by a
third party.
Investments are carried at cost, which approximates fair value as described in Note 3, A, except for investments in State of
Montana Short Term Investment Pool (STIP) which is reported at fair value.
For purposes of the statement of cash flows, the enterprise and internal services funds consider all funds (including restricted
assets) held in the City's cash management pool to be cash equivalents.
42
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
2. Receivables
RP/WPPYI Flindv
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal
year are referred to as either interfund receivables/payables (i.e., the current portion of interfund loans) or advances to/from
other funds (i.e., the non -current portion of interfund loans). All other outstanding balances between funds are reported as
due to/from other funds.
Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are
not available for appropriation and are not expendable available financial resources.
Taxes
Property tax levies are set within forty-five days of the State providing shared revenue figures, in connection with the budget
process. Real property (and certain attached personal property) taxes are billed within ten days after the third Monday in
October and are due in equal installments on November 30 and the following May 31. After those dates, they become
delinquent, and a lien is filed upon the property. After three years, the City may exercise the lien and take title to the
property. Special assessments are billed in two equal installments due November 30 and the following May 31. Personal
property taxes (other than those billed with real estate) are generally billed no later than the second Monday in July (normally
in May or June), based on the prior November's levies. Personal property taxes, other than mobile homes, are due thirty days
after billing. Mobile home taxes are billed in two halves, the first due thirty days after billing: the second due September 30.
The tax billings are considered past due after the respective due dates and are subject to penalty and interest charges.
An allowance for uncollectible accounts was not maintained for real and personal property taxes and special assessments
receivable. The direct write-off method is used for these accounts.
Ambulance
An allowance, based on history, for estimated uncollectible accounts receivable of 55% is maintained for the Ambulance
fund. This allowance account has been adjusted to $404,009 at June 30, 2021.
Ambulance accounts receivable $734,562
Times allowance percentage 55%
@ June 30, 2021 $404,009
Water/Sewer
A reserve for estimated uncollectible accounts receivable of 0.5% of metered sales is maintained for the Water Fund and
Sewer Fund. The reserve balances areas follows for June 30, 2021:
Water $ 17,908
Sewer $ 30,303
Contracts
The following are contracts payable to the City of Kalispell on June 30, 2021.
FUND
Source
Amount
CD Misc.
Property Sale
$
296,312
Information Technology - Internal Service Franchise Fees -Charter (formerly Bresnan)
$
48,071
Total Governmental Activities
$
344,383
Water- Major Proprietary
Impact Fees
$
128,884
Sewer- Major Proprietary
Impact Fees
$
601,926
Total Proprietary Funds
$
730,810
Total City contracts receivable
$
1,075,193
43
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
3. Inventories and Prepaid Items
Inventories for materials and supplies for governmental fund types are expended at the time of purchase. The amounts on
hand in governmental funds are considered immaterial. Enterprise Fund inventory of materials and supplies are valued at
cost and the First -In First -Out (FIFO) method is utilized.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government -wide and fund financial statements. Prepaid items arise when charges are entered in the accounts for benefits not
yet received. In subsequent periods, when the benefit criteria are met, or when the City has a legal claim to the resources, the
prepaid items are removed from the balance sheet and expenses are recognized.
On June 30, 2021, the City reported inventories and prepaid items in the following funds.
FUND
Purpose
Amount
FUND
Purpose
Amount
General - Major Governmental
Personnell
4,360
Water - Major Proprietary
Health Insurance
27,061
Parks
Health Insurance
20,790
Water - Major Proprietary
Inventory
82,096
Ambulance
Health Insurance
11,310
Sewer - Major Proprietary
Health Insurance
36,054
Building Department
Health Insurance
9,803
Solid Waste
Health Insurance
7,386
Street Maintenance
Health Insurance
18,728
Total Proprietary Funds
152,597
Total Governmental Funds
64,991
Total City inventory and prepaid items
$ 228,174
Information Technology - Internal Service
Health Insurance
7,224
Information Technology - Internal Service
Prepaid expense
175
Central Garage - Internal Service
Health Insurance
3,187
Total Internal Service
10,586
Total Governmental Activities
75,577
4. Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are
classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. When an
expense is incurred for which both restricted and unrestricted net assets are available, it is the City's policy to first apply the
restricted resources.
5. Capital Assets
Capital assets, which include property, plant, and equipment, are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. The City defines capital assets as assets with an initial,
individual cost of more than $5,000 and an estimated useful life in excess of five years. Such assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value. More
detailed information on the City's streets and all capital assets can be found in Note 3, D. Capital Assets.
Police vehicles are an exception despite a useful life less than 5 years. The City has determined that it is important to
capitalize and depreciate these because the total cost, as a group, is substantial.
The costs of normal maintenance and repairs that do not add to the value of the assets or extend asset lives are not capitalized.
Improvements are capitalized and depreciated over the remaining useful lives of the related assets. Major outlays for capital
assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of fixed
assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the
same period.
44
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Depreciation has been provided for the property, plant and equipment of the City of Kalispell using the straight-line method.
The useful lives of these assets have been estimated as follows:
Buildings
20-50 years
Improvements Other than buildings
10-50 years
Streets
40 years
Machinery, vehicles and equipment
3-20 years
Water and Sewer lines, pump stations
10-50 years
6. Compensated Absences
It is the City's policy and state law to permit employees to accumulate a limited amount of earned but unused vacation
benefits, which will be paid to employees upon separation from City service. Employees are allowed to accumulate and carry
over a maximum of two times their annual accumulation of vacation. Any vacation leave time accumulated over this
maximum carryover must be used within 90 days of the new calendar year. There is no restriction on the amount of sick
leave that may be accumulated. Upon separation, employees are paid 100 percent of accumulated vacation and 25 percent of
accumulated sick leave.
In fiscal year 2012, the City of Kalispell began offering a voluntary employees beneficiary association (VEBA) plan. A tax-
free post -retirement medical expense account used by retirees and their eligible dependents to pay for any eligible medical
expenses. The plan is funded by 50% of the employee's unused sick leave at the time of retirement, which is contributed by
the City into the plan. The benefit to the retiree of this plan is that they receive two times the amount of unused sick leave at
retirement, none of which is subject to tax.
The liability associated with governmental fund -type employees is reported in Governmental Activities column of the
Statement of Net Position, while the liability associated with proprietary fund -type employees is recorded in the respective
fund and the Business -type Activities column of the Statement of Net Position. For the purpose of reporting these
compensated absences payable as current or noncurrent, the City assumes all employees will use their vacation accumulated
as of June 30 in the succeeding fiscal year (current). The City also assumes sick leave accumulated as of June 30 will remain
accumulated in the succeeding fiscal year (long-term).
7. Long - Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, or proprietary fund type
statement of net position. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs
are expensed when incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance
costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other
financing uses. Issuance costs, whether withheld from the actual debt proceeds received, are reported as debt service
expenditures.
45
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
8. Net Position/Fund Balance
Net position in the government wide and proprietary fund financial statements show the amount of the capital assets less any
outstanding debt issued to fund them as "net investment in capital assets." Restricted net position are those that have
constraints placed on them by external parties or imposed by law or enabling legislation.
The City implemented GASB Statement 54 for fiscal year 2011. As a result, the classifications for fund balance now used
for governmental funds are reported in two general classifications, non -spendable and spendable:
Non -spendable represents the portion of fund balance that is not in spendable form such as inventories and prepaids, and, in
the general fund, long-term notes and loans receivable.
Spendable fund balance is further categorized as restricted, committed, assigned, and unassigned.
Restricted fund balance contains balances that can be spent only for the specific purposes stipulated by external parties or
through enabling legislation. External parties include grantors, debt covenants, votes, and laws and regulations of other
governments.
Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action
of the government's highest level of decision -making authority, the City Council. The City Council formally adopts a
Resolution to establish, modify, or rescind a fund balance commitment.
Assigned fund balances are intended to be used by the government for specific purposes but do not meet the criteria to be
classified as restricted or committed. Fund balances are assigned by the governing body. The City Council has the
authority to express assignments in the General fund. In governmental funds other than the general fund, assigned fund
balance represents the remaining amount that is not restricted or committed. Also included in the assigned fund balance
for the general fund are assignments for the portion of the current general fund balance projected to be used to fund
expenditures and other cash outflows more than the expected revenues and other cash inflows in the next fiscal year.
Unassigned fund balance is the residual classification for the government's general fund and includes all spendable
amounts not contained in the other classifications. In other funds, the unassigned classification is used only to report a
deficit balance resulting from overspending for specific purposes for which amounts have been restricted, committed, or
assigned.
When both restricted and unrestricted resources are available, spending will occur in the following order, for the identified
fund types:
General Fund: restricted, committed, assigned, unassigned
Special Revenue Funds: restricted, committed, assigned
Debt Service Funds: assigned, committed, restricted
Capital Project Funds: restricted, committed, assigned
46
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Budgetary Data
Policies
The State of Montana's budget law stipulates that money, other than payments from Agency funds, may not be drawn from
the treasury of a municipality except pursuant to an appropriation. The City legally adopts a budget for the required funds.
Process
An annual appropriated operating budget is adopted each fiscal year for the general fund, special revenue funds, debt service
funds and capital projects funds on the modified accrual basis. In addition, a budget is adopted for the enterprise and internal
service funds on a full accrual basis. The appropriated budget is prepared by fund, function, and for the general fund and
certain other funds, by department.
The final budget is legally enacted by the City Council, after holding public hearings as required by State statutes, and within
forty-five days of the State providing final shared revenue figures. The City Manager and Finance Director may make budget
appropriation transfers within a fund between general classifications of salaries and wages, maintenance and operation and
capital outlay. Reported budget amounts represent the originally adopted budget as amended by resolution of the City
Council. It is management's responsibility to see that the budget is followed to the budgetary line item.
The City Council may amend a final budget when shortfalls in budgeted revenues require reductions in approved
appropriations to avert deficit spending; when savings result from unanticipated adjustments in projected expenditures; when
unanticipated state or federal monies are received; or when a public emergency occurs which could not have been foreseen at
the time of adoption.
The City Manager is granted budget amendment authority for the expenditure of funds from debt service funds, enterprise
funds, internal service funds, trust funds, federal and state grants accepted and approved by the City Council, special
assessments, and donations.
The procedure to amend the budget in total can be made only after the City prepares a resolution, notice is published of a
public hearing, and a public hearing is held in accordance with state law.
The City had no violations of budget law for fiscal year 2021, as all expenditures/expenses in total by fund are less than the
related appropriations or are transfers of closed funds as allowed by State law. All budget amendments and closeout transfers
during FY 2021 are described below:
The CD Programs special revenue fund (2886) budget was increased $44,074. These costs were unanticipated cost of
property sales at the Old School Station Industrial/Technological Park.
The Hazmat Grant fund expenditure budget increased $36,222. This change was due to a grant accepted in fiscal year 2020
($40,000) and the related fiscal year 2021 carryover ($36,222).
The 3188 Westside TIF debt service fund was increased by $897. The debt payments for this fund were incorrectly calculated
for budgeting purposes.
The 2011 S & C debt was satisfied in full, and the debt service fund closed via a close out transfer of $88.
47
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 3. DETAILED NOTES ON ALL FUNDS
A. Cash and Investments
At June 30, 2021, the carrying amount of the City's deposits in local banks and investments is $60,602,573. Interest bearing
account balances are covered by the Federal Depository Insurance Corporation (FDIC) up to $250,000 per bank, per
depositor. In addition, all noninterest bearing transaction account balances are fully insured by FDIC coverage. The
remaining balances are covered by collateral held by the pledging bank's agent in the City's name.
The City's reports cash and investments as follows
Unrestricted
Restricted
Total
Governmental activities $24,453,379
$2,378,309
$26,831,688
Business -type activities 22,726,666
10,962,570
33,689,236
Fiduciary funds 12,535
12,535
Component unit 69,114
69,114
$47,261,694
$13,340,879
$60,602,573
Reconciliation of carrying amount to deposit balances:
Governmental
& Business
Investment Activities Agency BID Total
Certificates of Deposit $ 248,000 $ 248,000
U.S. Treasury Securities 750,000
U.S. Government Bonds 8,070,000
State of Montana -
Short Term Investment Pool Account 48,945,850
S & C Bonds - internal 38,449
Demand deposits 2,465,845
Petty Cash 2,780
$ 60,520,923
12,535
$ 12,535
750,000
8,070,000
48,945,850
38,449
$ 69,114 2,547,494
2,780
$ 69,114 $ 60,602,573
Under the City's investment policy and as authorized by Montana law, the City is restricted to investing funds in specific types of
investment instruments. These investments are low risk, locked into a guaranteed rate of return, and are, therefore, not impacted
significantly by changes in short term interest rates. Along with limitations placed on investments by state law, the City
minimizes custodial credit risk by restrictions set forth in City policy. Custodial credit risk for investments is the risk that in the
event of a financial institution failure, the City's investments may not be returned, or the City will not be able to recover the
collateral securities in the possession of the outside party.
The City voluntarily participates in the STIP (Short Term Investment Pool) administered by the Montana Board of Investments
(MBOI). Shares, the prices of which are fixed at $1.00 per share, represent a local government's STIP ownership and participants
may buy or sell shares with one -business days' notice. STIP administrative expenses are charged daily against the STIP income,
which is distributed on the first calendar day of each month. Shareholders have the option to automatically reinvest their
distribution income in additional shares. STIP is not registered with the Securities and Exchange Commission. STIP is not FDIC
insured or otherwise insured or guaranteed by the federal government, the State of Montana, the MBOI or any other entity against
investment losses and there is no guaranteed rate of return on funds invested in STIP shares. The MBOI maintains a reserve fund
to offset possible losses and limit fluctuations in STIP's valuation. The STIP investment portfolio consists of securities with
maximum maturity of 2 years. Information on investments held in the STIP can be found in the Annual Report on the MBOI
website at hl!p:Hinvestment.com/A-nnualReportsAudits.
48
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Investments in the pool are reported at a Net Asset Value (NAV). The fair value of pooled investments is determined annually
and is based on year-end market prices. The unit value of the pool is fixed at $1 for both participant redemptions and purchases.
Investments in STIP are carried and reported at cost. STIP income is automatically reinvested in additional units. The STIP is
not rated by a national rating agency.
B. Interfund Receivables and Payables (Due to/from Other Funds)
The composition of interfund balances and due to/from as of June 30, 2021, was as follows:
Receivable Fund Payable Fund Amount Purpose
General Fund - Major Governmental Stonegarden Grant - Special Revenue 1,134 S/T Loan
General Fund - Major Governmental Rail Park TEDD - Special Revenue 15,907 S/T Loan
General Fund - Major Governmental EPA Brownsfield Grant - Special Revenue 1,010 S/T Loan
General Fund - Major Governmental Tiger Grant Fund - Capital Project 372,694 S/T Loan
SID Revolving - Debt Service S & C's - Debt Service 636 S/T Loan
Total - Due To Other Funds (Governmental Funds) $ 391,381
C. Transfers
The following is an analysis of transfers between funds during Fiscal Year 2021:
From
To
Amount
Purpose
Health - Special Revenue Fund
General - Major Governmental
970,000
Operations
Old School Tech TIF - Special Revenue Fund SID - 344 - Special Revenue Fund
70,000
Operations
Old School Ind TIF - Special Revenue Fund
SID - 344 - Special Revenue Fund
5,000
Operations
CD Projects - Special Revenue Fund
SID - 344 - Special Revenue Fund
70,000
Operations
S & C's - Debt Service Fund
SID Revolving - Debt Service Fund
170
Close Out
TOTAL
$ 1,115,170
D. Capital Assets
Capital asset activities for the year ended June 30, 2021 were as follows:
Assets Contributed
In fiscal year 2021, Governmental Activities report contributed assets with a value of $56,224. These contributed assets were
sidewalks replaced or repaired and paid for by homeowner's directly (not assessed).
In fiscal year 2021, Business -type Activities report contributed assets with a value of $799,492.
Developers contributed four thousand nine hundred twenty linear feet (4,920') of water mains, including 9 new fire hydrants
valued at $359,758 to the water fund. This 4,920 linear feet of mains was distributed among five different projects
(developments).
The Sewer fund received sewer and storm mains. Developers contributed three thousand ninety-one linear feet (3,091') of
sewer mains ($194,785), and twenty-four hundred twenty linear feet (2,420') of storm sewer main ($244,949). These 5,511
linear feet of mains were distributed among six different projects (developments).
Governmental funds contributed assets with a cost basis of $84,596 to the construction of storm mains.
49
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Construction in Progress
Additions to construction in progress of governmental activities include an additional $1,970,613 for the ongoing core trail
project, and $22,440 in construction cost of a new search/storage building.
Additions to construction in progress of business -type activities was $1,987,990. This included projects replacing water
mains ($293,007), beginning the development of a new well and associated storage ($153,014), entering the construction
phase of a new EQ Basin for the wastewater treatment plant ($29,405), continuing design and construction of a regional
stormwater facilities ($1,275,040), and replacing storm main ($237,524).
Reductions to construction in progress of business -type activities included, in the water fund, the 10th Avenue West and 2nd
Street West water main project ($103,620). Reductions to construction in progress in the sewer (storm) fund included the
Westside Interceptor ($14,380,182).
Balance
Balance
Governmental Activities:
July 1, 2020
Additions
Contributions Transfers Deductions
June 30, 2021
Capital assets not being depreciated:
Land (Asset type: 010)
$ 3,743,166
$ -
$ - $ - $ -
$ 3,743,166
Construction in Progress
1,798,074
1,993,053
(810)
3,790,317
Total capital assets not being depreciated
5,541,240
1,993,053
(810)
7,533,483
Capital assets being depreciated:
Buildings (Asset type: 020)
16,699,014
170,440
- -
16,869,454
Improvements other than buildings (Asset type: 030)
18,302,505
148,421
56,224 810
18,507,960
Machinery and equipment
General (Asset type: 040)
10,322,590
289,135
- (116,046)
10,495,679
Ambulance (Asset type: 100)
479,656
189,480
- - (85,806)
583,330
Parking (Asset type: 230)
46,071
-
- -
46,071
Infrastructure (Asset type: 031)
93,205,419
93,205,419
Total capital assets being depreciated
139,055,255
797,476
56,224 810 (201,852)
139,707,913
Less accumulated depreciation for:
Buildings (Asset type: 020)
(10,143,932)
(577,904)
- -
(10,721,836)
Improvements other than buildings (Asset type: 030)
(11,720,561)
(629,032)
- -
(12,349,593)
Machinery and equipment
General (Asset type: 040)
(6,264,869)
(746,439)
- - 116,046
(6,895,262)
Ambulance (Asset type: 100)
(383,699)
(69,864)
- - 85,806
(367,757)
Parking (Asset type: 230)
(45,459)
(612)
- -
(46,071)
Infrastructure (Asset type: 031)
(37,317,864)
(2,332,092)
(39,649,956)
Total accumulated depreciation
(65,876,384)
(4,355,943)
201,852
(70,030,475)
Total capital assets being depreciated, net
73,178,871
(3,558,467)
56,224 810
69,677,438
Governmental activities capital assets, net
$ 78,720,111
$ (1,565,414)
$ 56,224 $ - $ -
$ 77,210,921
Balance
Balance
Internal service funds:
July 1, 2020
Additions
Contributions Transfers Deductions
June 30, 2021
Information Technology (Asset type: 200)
$ 468,602
$ 56,506
$ - $ -
$ 525,108
Less accumulated depreciation - Information Technology
(339,475)
(47,345)
- -
(386,820)
Central Garage (Asset type: 220)
303,442
34,931
338,373
Less accumulated depreciation - Central Garage
(218,727)
(13,350)
(232,077)
Internal service funds assets, net
$ 213,842
$ 30,742
$ - $ - $ -
$ 244,584
Governmental activities depreciation was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government
$ 2,591,047
Public Safety
580,727
Public Works
754,555
Parks and Recreation
429,614
Total Governmental Activities
$ 4,355,943
50
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Balance
Transfers/
Construction Balance
Business -type activities:
July 1, 2020
Additions
Contributions
in Progress Deductions June 30, 2021
Capital assets not being depreciated:
Land
Water (Asset type: 070)
105,958
105,958
Sewer (Asset type: 120)
221,513
221,513
Sewer (Storm) (Asset type: 150)
26,550
-
26,550
Construction in progress
Water
103,620
446,021
(103,620) 446,021
Sewer
14,411,719
29,405
(14,380,182) 60,942
Storm
452,756
1,427,968
84,596
1,965,320
Solid Waste
Total capital assets not being depreciated
15,322,116
1,903,394
84,596
(14,483,802) 2,826,304
Capital assets being depreciated:
Water
General Plant (Asset type: 060)
1,138,168
1,138,168
Source of Supply (Asset type: 070)
6,166,821
213,508
103,620 (46,876) 6,437,073
Transmision and Distribution (Asset type: 080)
38,214,585
664,352
359,758
39,238,695
Pumping Plant (Asset type: 090)
3,981,044
-
- 3,981,044
Sewer
General Plant (Asset type: 130)
1,044,783
31,327
1,076,110
Transmision and Distribution (Asset type: 140)
31,532,984
1,549,324
194,785
14,380,182 47,657,275
Storm Sewer System (Asset type: 150)
17,743,410
160,069
244,949
18,148,428
Treatment Plant Equipment (Asset type: 180)
477,636
43,745
521,381
Treatment Plant (Asset type: 190)
42,249,544
42,249,544
Solid Waste
Buildings (Asset type: 111)
345,442
345,442
Machinery and equipment (Asset type: 110)
1,596,346
495,630
2,091,976
Total capital assets being depreciated
144,490,763
3,157,955
799,492
14,483,802 (46,876) 162,885,136
Less accumulated depreciation for:
Water
General Plant (Asset type: 060)
(900,936)
(31,891)
- (932,827)
Source of Supply (Asset type: 070)
(1,484,339)
(180,087)
46,876 (1,617,550)
Transmision and Distribution (Asset type: 080)
(10,808,326)
(847,735)
(11,656,061)
Pumping Plant (Asset type: 090)
(2,032,428)
(80,829)
(2,113,257)
Sewer
General Plant (Asset type: 130)
(800,547)
(25,571)
(826,118)
Transmision and Distribution (Asset type: 140)
(13,003,595)
(560,869)
(13,564,464)
Storm Sewer System (Asset type: 150)
(6,062,336)
(393,362)
(6,455,698)
Treatment Plant Equipment (Asset type: 180)
(385,124)
(20,677)
(405,801)
Treatment Plant (Asset type: 190)
(23,820,479)
(940,904)
(24,761,383)
Solid Waste
Buildings (Asset type: 111)
(312,075)
(2,342)
(314,417)
Machinery and equipment (Asset type: 110)
(1,267,938)
(129,476)
(1,397,414)
Total accumulated depreciation
(60,878,123)
(3,213,743)
46,876 (64,044,990)
Total capital assets being depreciated, net
83,612,640
(55,788)
799,492
14,483,862 98,840,146
Business -type activities capital assets, net
$ 98,934,756
$ 1,847,606
$ 884,088
$ - $ $ 101,666,450
Business -type activities depreciation was charged to functions/programs of the primary government as follows:
Business -type Activities:
Water
1,140,543
Sewer
Sanitary
586,440
Treatment
961,581
Storm
393,362
Solid Waste
131,817
Total Business -type Activities
$ 3,213,743
51
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
E. Long -Term Debt
During the year ended June 30, 2021, the following changes occurred in long-term liabilities:
Balance
Balance
Due within
July 1, 2020
Additions
Reductions
June 30, 2021
1 year
Governmental Activities:
G.O. Bonds
$ 455,000
$
$ (225,000)
$ 230,000
$
230,000
Revenue Bonds
4,600,000
(195,000)
4,405,000
205,000
SRF
542,542
(25,649)
516,893
26,573
Assessments
1,561,856
4,046
(250,452)
1,315,450
250,460
Contract Debt/Loans
644,059
189,438
(162,429)
671,068
152,682
Intermediary Program
461,696
-
(27,482)
434,214
27,757
Sub
8,265,153
193,484
(886,012)
7,572,624
892,472
Compensated Absences'
1,535,929
1,222,028
(1,112,923)
1,645,034
1,176,240
Other postemployment benefits'
2,910,605
773,098
(212,624)
3,471,079
-
Pensions'
9,265,548
5,004,929
(2,343,870)
11,926,607
-
Governmental Activities Sub Total
$ 21,977,235
$
7,193,539
$ (4,555,429)
$ 24,615,344
$
2,068,712
Internal Service Funds:
Compensated Absences
$ 36,800
$
26,963
$ (26,900)
$ 36,863
$
25,122
Internal Service Funds Sub Total
$ 36,800
$
26,963
$ (26,900)
$ 36,863
$
25,122
Government -wide Governmental Activities
$ 22,014,035
$
7,220,502
$ (4,582,329)
$ 24,652,207
$
2,093,834
*The governmental funds that are expected to liquidate the compensated absences, pension, and other postemployment
benefits liabilities are the General, Parks, Ambulance, Building, Light Maintenance, Street Maintenance, and Urban Forestry.
Business -type Activities:
SRF
23,755,660
1,876,359
(1,709,193)
23,922,827
1,771,327
Compensated Absences
334,888
240,123
(213,388)
361,623
213,388
Other postemployment benefits
423,421
72,302
(122,861)
372,862
Pensions
2,360,845
622,296
(357,430)
2,625,711
Business -type Activities Sub Total
$ 26,874,814
$ 2,811,080
$ (2,402,872)
$ 27,283,023
$ 1,984,715
Total City
$ 48,888,849
$ 10,031,582
$ (6,985,201)
$ 51,935,230
$ 4,078,549
General Obligation Bonds - The City issues general obligation bonds to provide funds for the acquisition and construction
of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the City.
General obligation bonds outstanding as of June 30, 2021, were as follows:
Purpose
Pool/Fire Hall Refunding
Origination Interest
Date Rate Term
6/13/2012 variable 10 years
Total G.O. Bonds
Due Principal Annual Balance
Date Amount Payment June 30, 2021
2022 $4,145,000 varies $ 230,000
$4,145,000 $ 230,000
52
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Legal Debt Margin
At June 30 the general obligation debt issued by the City did not exceed its legal debt margin as demonstrated by the
following computation:
Total assessed value of taxable property (market value-2020)
General limitation percentage
General limitation of indebtedness
$ 3,554,590,262
2.50%
88,864,757
Outstanding general obligation bonds at June 30
230,000
Outstanding loans subject to limitation"
Park Improvements
79,142
Parks Equipment
243,835
Public Safety Equipment
536,078
SID Bonds
1,277,000
Total debt subject to limit
2,366,055
Excess limit over outstanding debt margin
$86,498,702
*A State of Montana, Board of Investment's attorney gave an opinion that loans issued under 7-5-4306, MCA are subject to
the limit of indebtedness. These loans are displayed on page 54 (Loans/Contracted Debt).
Special Assessment Debt — Special assessment bonds are secured by a lien on the assessed properties. The primary source
of repayment is the assessments levied against the benefiting properties. However the City is liable, to an extent, for
repayment of these special assessment bonds. State law authorizes the City to establish a revolving fund to ensure the
payment of debt service on the bonds if assessed property owners default.
Origination
Interest
Due
Principal
Annual
Balance
Purpose
Date
Rate
Term
Date
Amount
Payment
June 30, 2021
SID344
6/15/2006
3.7%-5.28%
20 years
2026
$ 4,520,000
varies
$ 1,145,000
SID345
5/15/2014
3.00%
15 years
2029
242,000
varies
132,000
2013 S&C
1/6/2011
3.25%
8 years
2019
17,472
$ 2,184
2,184
2014 S&C
1/6/2012
3.25%
8 years
2020
7,845
$ 981
1,962
2015 S&C
4/12/2013
3.50%
8 years
2021
9,272
$ 1,159
3,477
2016 S&C
1/2/2014
3.75%
8 years
2022
9,792
$ 1,224
4,896
2017 S&C
1/2/2015
4.50%
8 years
2023
4,288
$ 536
2,680
2018 S&C
1/4/2016
5.50%
8 years
2024
7,145
$ 893
5,359
2019 S&C
6/30/2016
4.75%
8 years
2025
15,824
$ 1,978
13,846
2020 S&C
1/4/2021
3.25%
8 years
2026
4,046
$ 506
4,046
Total Special
Assessment Bonds
$ 4,837,684
$ 1,315,450
*In the event that all future and delinquent assessments are paid and that there are no future
adjustments to assessments by the City of Kalispell, there is a projected surplus of principal
assessments in SID's 344 and 345 of $16,248 and $24,733, respectively.
Revenue Bonds — Revenue bonds are directly related to and paid from the fund. The 2018 West Side Tax Increment bonds
are accounted for in the Government -wide financial statements and are paid directly from tax increment in the district.
Issue Interest Final Bonds Balance
Purpose Date Rate Term Maturity Issued June 30, 2021
Governmental Activities:
2018 - West Side TIF 5/1/18 variable 19 years 2037 4,960,000 4,405,000
Governmental Activities Sub Total $ 4,960,000 $ 4,405,000
53
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Significant Provisions of the Series 2018 West Side Tax Increment Urban Renewal Revenue Bonds
The 2018 Bonds mature on January 1, 2037. The 2018 Bonds with stated maturities from 2019 through 2028 shall not be
subject to redemption prior to their stated maturities. The 2018 Bonds with stated maturities on or after July 1, 2029, will be
subject to redemption on July 1, 2028, and any day thereafter, at the option of the City, in whole or in part, at a redemption
price equal to the principal amount thereof to be redeemed plus interest accrued to the redemption date, without premium.
Interest on the Bonds varies from 3.00% for the Bonds with stated maturities from July 1, 2019, through July 1, 2025, to
5.00% for the $500,000 Term Bond with the stated maturity of January 1, 2033.
Reserve Account — The City shall maintain a debt service reserve account with a balance equal to the lesser of. (i) ten percent
(10%) of the original principal amounts of the Bonds; (ii) the maximum amount of principal and interest payable on the
Bonds in the current or any future fiscal year; or (iii) 125% of the average debt service on the Bonds payable in any fiscal
year.
125% of the average debt service ($6,043,125/16 years) $472,119
City's Reserve $480,011
State Revolving Fund — the City has nine (9) loan agreements with the State Revolving Fund (SRF). These obligations are
to be repaid from the operating income of the fund.
SRF LOANS
Interest
Amount
Outstanding
Purpose
Origination
Rate
Term
Borrowed
June 30, 2021
Governmental Activities:
2017 Streets - 4th Ave E
FY18
2.50%
20 years
$ 615,098
$ 516,893
Governmental Activities Sub Total
$ 615,098
$ 516,893
Business -type Activities:
2013 Sewer - WWTP Digester Lid
FY13
3.00%
20 years
$ 1,102,748
$ 731,000
2012 Sewer - Hwy 93 S
FY13
2.25%
12 years
1,009,000
277,000
2012 Sewer - WWTP System Improvements
FY13
2.25%
15 years
12,827,000
5,652,000
2018 Sewer - Westside Interceptor
FY18
2.50%
30 years
12,194,841
11,639,000
2012 Water - Sheepherders Well/Storage
FY13
2.25%
15 years
1,500,000
590,000
2017 Water - 4th Ave E
FY18
2.50%
20 years
1,974,988
1,659,677
2020 Water - Refunding 2004 Bond
FY20
2.50%
4 years
365,648
248,648
2020 Water - 4 Mi. Dr. Transmission
FY20
2.50%
20 years
2,147,108
2,013,000
2021 Storm - Regional Facilities
FY21
2.50%
20 years
1,052,071
1,052,071
2017 Storm Sewer - 4th Ave E
FY18
2.50%
20 years
71,914
60,431
Business -type Activities Sub Total
$ 34,245,318
$ 23,922,827
Total SRF Loans
$ 34,860,416
$ 24,439,720
Water Debt Required Information
Debt Service Account - Monthly an amount equal to not less than 1/6 of the interest due within the next six months and 1/12
of the principal to become due within the next twelve months shall be credited to the debt service account. The debt service
account was zero as of June 30, 2021, as all debt service payments were made as of the end of the fiscal year, leaving no
accrued interest or principal balance.
Reserve Account - The City shall keep in the reserve account an amount equal to or greater than 50% of the maximum
amount of principal and interest required in the current or any subsequent fiscal year ($454,545 * 0.50 = $227,273). As of
June 30, 2021, the debt service reserve account contains $227,273.
Maximum P & I $ 454,545
Total Reserve Requirement $ 227,273
Reserve balance 6/30/21 227 273
54
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Property Insurance - The City will cause all buildings, properties, fixtures, and equipment to be kept insured in amounts that
are ordinarily carried.
Liability Insurance - The City will carry insurance against liability of the City and its employees.
Rates and Charges — Rates and charges will be made and kept sufficient to provide gross income and revenues adequate to
pay promptly the reasonable and current expenses of operating and maintaining the system and to produce in each fiscal year
net revenues more than such current expenses, equal to 110% of the maximum amount of principal and interest payable from
the Revenue Bond Account in any subsequent fiscal year.
Water Fund Cash Flow Debt Coverage
Water Service Charges $ 3,599,528
Misc. Revenue 288,000
Total Operating Revenue 3,887,528
Less: Operating Expense (excludes depreciation) 2,165,348
Available for Debt Service $ 1,722,180
""Maximum Debt Service $ 454,545
Estimated Coverage FY21 379%
—includes all water fund borrowings
Sewer Debt Required Information
Operating Reserve — The city shall keep in the operating reserve account an amount equal to one month's operating expenses.
As of June 30, 2021, the operating reserve account contains $400,000.
Debt Service Account - Monthly an amount equal to not less than 1/6 of the interest due within the next six months and 1/12
of the principal to become due within the next twelve months shall be credited to the debt service account. The debt service
account was zero as of June 30, 2021, as all debt service payments were made as of the end of the fiscal year, leaving no
accrued interest or principal balance.
Reserve Account - The City shall keep in the reserve account an amount equal to or greater than 50% of the maximum
amount of principal and interest required in the current or any subsequent fiscal year ($1,845,234 * 0.50 = $922,617). As of
June 30, 2021, the debt service reserve account contains $922,617. Bond reserve dollars are held in both the storm fund
($38,505), and sewer fund ($884,112).
Rates and Charges — Rates and charges will be made and kept sufficient to provide gross income and revenues adequate to
pay promptly the reasonable and current expenses of operating and maintaining the system and to produce in each fiscal year
net revenues more than such current expenses, equal to 110% of the maximum amount of principal and interest payable from
the Revenue Bond Account in any subsequent fiscal year.
Sewer Fund Cash Flow Debt Coverage
`Operating Revenue
$ 7,891,940
Total
7,891, 940
Less: Operating Expense (excludes depreciation)
3,855,710
Available for Debt Service
$ 4,036,230
"Maximum Debt Service
$ 1,917,703
Estimated Coverage FY21
210%
'includes storm sewer assessments
—includes all sewer/storm fund borrowings
55
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Loans/Contracted Debt
Origination
Interest
Due
Principal
Balance
Purpose
Date
Rate
Term
Date
Amount
June 30, 2021
Governmental Activities
BOI:Chip Truck (Forestry)
11/3/2017
varies
5 years
2/15/2022
40,000
10,374
BOI: Woodland Playground (parks)
8/23/2019
varies
5 years
2/15/2025
97,772
70,075
BOI:Flatbed Chevy (Parks)
11/23/2016
varies
5 years
2/15/2022
31,066
6,410
BOI: Mower (Parks)
3/31/2017
varies
5years
2/15/2022
59,707
12,343
BOI Woodland Bathroom (Parks)
6/30/2017
varies
5 years
2/15/2022
39,214
9,068
BOI: Mower (Parks)
2/16/2018
varies
5 years
2/15/2023
35,191
14,600
BOI:Spray Gator (Parks)
6/30/2018
varies
5 years
2/15/2023
26,336
12,120
BOI:Fire Pumper
3/16/2018
varies
10 years
2/15/2028
467,684
346,640
BOI Ambulance
1/19/2021
varies
5 years
2/15/2026
189,438
189,438
Subtotal BOI
loans
$ 946,408
$ 671,068
USDA: Intermediary
Relending Program
10/12/2004
1.00%
30 years
10/12/2034
$ 520,000
$ 286,976
Relending Program
11/27/2006
1.00%
30 years
11/27/2036
257,500
147,238
Subtotal USDA Intermediary
777,500
434,214
Total loans/contracted debt
- Governmental Activities
$ 1,723,908
$ 1,105,282
BOI - Board of Investments Intercap Loan Program
Requirements to amortize debt
The annual requirements to amortize all long-term debt outstanding; excluding compensated absences payable, other post
employment benefits, and net pension liability, as of June 30, 2021, were as follows:
Governmental Activities:
SPECIAL
G.O. ASSESSMENT CONTRACTED INTERMEDIARY SRF REVENUE
FY
BONDS
BONDS
LOANS/DEBT
LOAN PROGRAM
LOANS
BONDS
ENDED
PRINCIPAL INTEREST
PRINCIPAL
INTEREST
PRINCIPAL INTEREST
PRINCIPALINTEREST
PRINCIPAL INTEREST
PRINCIPAL INTEREST
TOTAL
2022
230,000 4,600
250,460
63,833
152,682
11,073
27,757
4,342
26,573
12,758
205,000
163,375
1,152,453
2023
251,277
51,567
117,253
8,553
28,034
4,064
27,266
12,088
210,000
157,225
867,327
2024
250,296
39,115
106,659
6,619
28,314
3,784
27,729
11,406
215,000
150,925
839,847
2025
253,137
26,665
98,884
4,859
28,598
3,501
28,191
10,707
220,000
144,475
819,017
2026
251,913
14,165
90,345
3,185
28,884
3,215
28,884
10,000
230,000
137,875
798,466
2027-2031
58,367
3,263
105,245
2,608
148,810
11,685
157,590
38,626
1,260,000
573,025
2,359,219
2032-2036
-
134,249
4,095
181,158
17,668
1,525,000
300,425
2,162,595
2037-2041
9,568
96
39,502
544
540,000
10,800
600,510
TOTAL
$ 230,000 $ 4,600
$ 1,315,450
$ 198,608
$ 671,068
$ 36,897
$ 434,214
$ 34,782
$ 516,893
$113,797
$4,405,000
$1,638,125
$ 9,599,434
Business -type Activities:
SRF
FY
LOANS(1)(2)
ENDED
PRINCIPAL
INTEREST
TOTAL
2022
1,771,327
295,033
2,066,360 (1) The 2021 sewer (storm) fund SRF loan
2023
1,812,734
558,130
2,370,864 is included on this schedule. The City has only
2024
1,855,920
515,040
2,370,960 drawn $1,052,071 of the $2,460,000 funds available.
2025
1,716,809
471,977
2,188,786 An amortization schedule is not available until
2026
1,757,116
431,148
2,188,264 all funds have been drawn. Therefore, some of
2027-2031
4,766,481
1,690,145
6,456,626 these numbers are estimated.
2032-2036
3,323,841
1,043,959
4,367,800 (2) The 2018 Westside Interceptor loan included
2037-2041
2,846,498
641,860
3,488,358 an amount ($400,000) to be forgiven by the debtor.
2042-2046
2,561,000
316,213
2,877,213 The City has not yet received a compliance certificate
2047-2051
1,511,101
34,925
1,546,026 therefore the $400,000 is included in the schedule.
TOTAL
$23,922,827
$5,998,430
$ 29,921,257
56
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
F. Employee Benefit Plans
Pension Plans
Substantially all City of Kalispell full-time employees participate in one of three statewide, cost sharing, multiple -employer
retirement benefit plans administered by the Public Employees Retirement Board (PERB). The authority to establish or
amend contribution requirements for all plans and provide cost of living adjustments for defined benefits plans is assigned to
the State legislature. PERB issues a publicly available comprehensive annual financial report that includes financial
statements and required supplementary information for these plans. It is available from the Montana Public Employees'
Retirement Administration (MPERA) at 100 North Park Avenue, Suite 200, P.O. Box 200131, Helena, Montana, 59620-0131
or at their website, hU://mpera.mt.gov.
The Montana Public Employees Retirement Administration (MPERA) prepares its financial statements using the accrual
basis of accounting. For the purposes of measuring the net pension liability, deferred inflows of resources and deferred
outflows of resources related to pensions, pension expense, information about the fiduciary net position and additions to, and
deductions from, fiduciary net position have been determined on the same accrual basis as they are reported by MPERA. For
this purpose, member contributions are recognized in the period in which contributions are due. Employer contributions are
recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are
recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in
the accounting period when due and payable in accordance with the benefit terms. Expenses are recognized the period
incurred. Investments are reported at fair value. MPERA adheres to all applicable Governmental Accounting Standards
Board (GASB) statements.
Total City of Kalispell pension expense from all three (3) plans (PERS, MPORS, FURS) the City participates in were
$3,626,565. Contributions to pension plans are as required by state statute. Information about each plan follows:
PUBLIC EMPLOYEES' RETIREMENT SYSTEM — DEFINED BENEFIT
GASB 68 NOTES TO THE FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2021
(REPORTING DATE), JUNE 30, 2020 (MEASUREMENT DATE)
In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non -employer
contributing entity are required to recognize and report certain amounts associated with participation in the Public
Employees' Retirement System Defined Benefit Retirement Plan (the Plan). This includes the proportionate share of the
collective Net Pension Liability; Pension Expense; and Deferred Outflows and Deferred Inflows of Resources associated
with pensions. Employers are provided guidance in GASB Statement 68, paragraph 74, where pension amounts must be
combined as a total or aggregate for reporting, whether provided through cost -sharing, single -employer, or agent plans. This
report provides information for employers who are using a June 30, 2020, measurement date for the 2021 reporting. If an
employer's fiscal year end is after June 30, the employer will not use the measurements shown in this report but will need to
wait for the measurement date as of June 30, 2021.
Summary of Significant Accounting Policies
MPERA prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA
for the purposes of determining the Net Pension Liability (NPL); Deferred Outflows of Resources and Deferred Inflows of
Resources related to pensions; Pension Expense; the Fiduciary Net Position; and Additions to or Deductions from Fiduciary
Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are
57
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are
recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in
the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the
period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by
the United States of America. MPERA applied all applicable pronouncements of the Governmental Accounting Standards
Board (GASB).
General Information about the Pension Plan
Plan Description: The PERS-Defined Benefit Retirement Plan (DBRP), administered by the Montana Public Employee
Retirement Administration (MPERA), is a multiple -employer, cost -sharing plan established July 1, 1945, and governed by
Title 19, chapters 2 & 3, Montana Code Annotated (MCA). This plan provides retirement benefits to covered employees of
the State, and local governments, and certain employees of the Montana University System, and school districts. Benefits are
established by state law and can only be amended by the Legislature.
All new members are initially members of the PERS-DBRP and have a 12-month window during which they choose to
remain in the PERS-DBRP or join the PERS-DCRP by filing an irrevocable election. Members may not be participants of
both the defined benefit and defined contribution retirement plans.
Benefits provided. The PERS-DBRP provides retirement, disability, and death benefits to plan members and their
beneficiaries. Benefits are based on eligibility, years of service, and highest average compensation (HAC). Member rights are
vested after five years of service.
Service retirement:
• Hired prior to July 1, 2011
o Age 60, 5 years of membership service
o Age 65, regardless of membership service
o Any age, 30 years of membership service
• Hired on or after July 1, 2011
o Age 65, 5 years of membership service
o Age 70, regardless of membership service
Early Retirement:
• Hired prior to July 1, 2011
o Age 50, 5 years of membership service
o Any age, 25 years of membership service
• Hired on or after July 1, 2011
o Age 55, 5 years of membership service
Second Retirement: (requires returning to PERS-covered employer or PERS service)
• Retired before January 1, 2016, and accumulate less than 2 years additional service credit or retired on or after
January 1, 2016, and accumulate less than 5 years additional service credit:
o A refund of member's contributions plus return interest (currently .77% effective July 1,
2017);
o No service credit for second employment;
o Start the same benefit amount the month following termination; and
o Guaranteed Annual Benefit Adjustment (GABA) starts again in the January immediately
following the second retirement.
58
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
• Retired before January 1, 2016, and accumulate at least 2 years of additional service credit:
o A recalculated retirement benefit based on provisions in effect after the initial retirement;
and
o GABA starts on the recalculated benefit in the January after receiving the new benefit for 12
months.
• Retired on or after January 1, 2016, and accumulate 5 or more years of service credit:
o the same retirement as prior to the return to service;
o A second retirement benefit as prior to the second period of service based on laws in effect
upon the rehire date; and
o GABA starts on both benefits in the January after receiving the original and the new benefit
for 12 months.
Member's highest average compensation (HAC)
• Hired prior to July 1, 2011 - highest average compensation during any consecutive 36 months;
• Hired on or after July 1, 2011 — highest -average compensation during any consecutive 60 months.
Compensation Cap
• Hired on or after July 1, 2013 — 110% annual cap on compensation considered as a part of a member's highest
average compensation.
Monthly benefit formula
• Members hired prior to July 1, 2011
o Less than 25 years of membership service: 1.785% of HAC per year of service credit;
o 25 years of membership service or more: 2% of HAC per year of service credit.
• Members hired on or after July 1, 2011
o Less than 10 years of membership service: 1.5% of HAC per year of service credit;
o 10 years or more, but less than 30 years of membership service: 1.785% of HAC per year of
service credit;
o 30 years or more of membership service: 2% of HAC per year of service credit.
Guaranteed Annual Benefit Adjustment (GABA)
After the member has completed 12 full months of retirement, the member's benefit increases by the applicable percentage
(provided below) each January, inclusive of all other adjustments to the member's benefit.
• 3.0% for members hired prior to July 1, 2007
• 1.5% for members hired between July 1, 2007 and June 30, 2013
• Members hired on or after July 1, 2013:
(a) 1.5% for each year PERS is funded at or above 90%;
(b) 1.5% reduced by 0.1% for each 2.0% PERS is funded below 90%; and
(c) 0% whenever the amortization period for PERS is 40 years or more.
Contributions: The state Legislature has the authority to establish and amend contribution rates. Member and employer
contribution rates are specified by Montana Statute and are a percentage of the member's compensation. Contributions are
deducted from each member's salary and remitted by participating employers.
Special Funding: The state of Montana, as the non -employer contributing entity, paid to the Plan, additional contributions
that qualify as special funding. Those employers who received special funding are all participating employers.
59
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Not Special Funding: Per Montana law, state agencies and universities paid their own additional contributions. The employer
paid contributions are not accounted for as special funding for state agencies and universities but are reported as employer
contributions.
Member and employer contribution rates are shown in the table below.
State &
Member Universities Local Government School Districts
Fiscal Hired Hired
Year <7/01/11 >7/01/11 Employer Employer State Employer State
2021
7.9%1
7.9%
8.870%
8.770%
0.10%
8.50%
0.170%
2020
7.9%
7.9%
8.770%
8.670%
0.10%
8.40%
0.370%
2019
7.9%
7.9%
8.670%
8.570%
0.10%
8.30%
0.370%
2018
7.9%
7.9%
8.570%
8.470%
0.10%
8.20%
0.370%
2017
7.9%
7.9%
8.470%
8.370%
0.10%
8.10%
0.370%
2016
7.9%
7.9%
8.370%
8.270%
0.10%
8.00%
0.370%
2015
7.9%
7.9%
8.270%
8.170%
0.10%
7.90%
0.370%
2014
7.9%1
7.9%
8.170%
8.070%
0.10%
7.80%
0.370%
2012-2013
6.9%
7.9%
7.170%
7.070%
0.10%
6.80%
0.370 o
2010-2011
6.9%
7.170%
7.070%
0.10%
6.80%
0.370%
2008-2009
6.9%
7.035%
6.935%
0.10%
6.80%
0.235%
2000-2007
6.9%
6.900%1
6.800%
0.10%1
6.80%
0.100%
1. Member contributions to the system of 7.9% are temporary and will be decreased to 6.9% on January 1 following
actuary valuation results that show the amortization period has dropped below 25 years and would remain below 25 years
following the reduction of both the additional employer and additional member contribution rates.
2. Employer contributions to the system:
a. Effective July 1, 2014, following the 2013 Legislative Session, PERS-employer contributions increase an additional
0.1% a year and will continue over 10 years through 2024. The additional employer contributions including the
0.27% added in 2007 and 2009, will terminate on January 1 following an actuary valuation that shows the
amortization period of the PERS-DBRP has dropped below 25 years and remains below the 25 years following the
reduction of both the additional employer and member contributions rates.
b. Effective July 1, 2013, employers are required to make contributions on working retirees' compensation. Member
contributions for working retirees are not required.
c. The portion of employer contributions allocated to the PCR are included in the employers reporting. The PCR was
paid off effective March 2016 and the contributions previously directed to the PCR are now directed to member
accounts.
3. Non Employer Contributions:
a. Special Funding
i. The State contributes 0.1% of members' compensation on behalf of local government entities.
ii. The State contributes 0.37% of members' compensation on behalf of school district entities.
iii. The state contributed a Statutory Appropriation from the General Fund of $33,951,150.
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Pension Liability, Pension Expense, and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
GASB Statement 68 allows a measurement date of up to 12 months before the employer's fiscal year-end can be utilized to
determine the Plan's TPL. The basis for the TPL as of June 30, 2020, was determined by taking the results of the June 30, 2019,
actuarial valuation and applying standard roll forward procedures. The roll forward procedure uses a calculation that adds the
annual normal cost (also called the service cost), subtracts the actual benefit payments and refunds for the plan year, and then
applies the expected investment rate of return for the year. The roll forward procedure will include the effects of any assumption
changes and legislative changes. The update procedures are in conformity with Actuarial Standards of Practice issued by the
Actuarial Standards Board.
The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate
shares of the employer's and the state of Montana's NPL for June 30, 2020, and 2019, are displayed below. The employer's
proportionate share equals the ratio of the employer's contributions to the sum of all employer and non -employer contributions
during the measurement period. The state's proportionate share for a particular employer equals the ratio of the contributions for
the employer to the total state contributions paid. The City of Kalispell recorded a liability of $9,067,196 and the City of
Kalispell's proportionate share was 0.343687 percent.
Percent of
Percent of
Net Pension
Net Pension
Collective
Collective
Change in
Liability as of
Liability as of
NPL as of
NPL as of
Percent of
As of measurement date
6/30/2020
6/30/2019
6/30/2020
6/30/2019
Collective NPL
City of Kalispell Proportionate
Share
$ 9,067,196
$ 7,271,356
0.343687%
0.347860%
-0.004173%
State of Montana
Proportionate Share
associated with the Employer
$ 2,856,744
1 $ 2,365,647
1 0.108283%
0.113172%
-0.004889%
Total
$ 11,923,940
1 $ 9,637,003
1 0.451970%1
0.461032%
-0.009062%
Changes in actuarial assumptions and methods: The following changes in assumptions or other inputs were made that affected
the measurement of the TPL.
1. The discount rate was lowered from 7.65% to 7.34%
2. The investment rate of return was lowered from 7.65% to 7.34%
3. The inflation rate was reduced from 2.75% to 2.40%
Changes in benefit terms: There have been no changes in benefit terms since the previous measurement date.
Changes in proportionate share: There were no changes between the measurement date of the collective NPL and the employer's
reporting date that are expected to have a significant effect on the employer's proportionate share of the collective NPL. However,
each employer may have unique circumstances that will impact the employer's proportionate share of the collective net pension.
If there were changes that are expected to have an impact on the net pension liability, the employer should disclose the amount of
the expected resultant change in the employer's proportionate share of the collective net pension liability, if known.
61
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Pension Expense: At June 30, 2020, the City of Kalispell recognized a Pension Expense of $1,114,433 for its proportionate share
of the Plan's pension expense. The City also recognized grant revenue of $467,198 for the support provided by the State of
Montana for its proportionate share of the pension expense associated with the employer.
As of measurement date
Pension Expense as of
6/30/2020
Pension Expense as of
6/30/2019
City of Kalispell Proportionate Share of PERS
$ 1,114,433
$ 839,436
State of Montana Proportionate Share
associated with the Employer
$ 467,198
$ 160,602
Total
$ 1,581,631
1 $ 1,000,038
Recognition of Deferred Inflows and Ou flows: At June 30, 2020, the employer reported its proportionate share of the
Plan's deferred outflows of resources and deferred inflows of resources from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of Resources
Expected vs. Actual Experience
$ 146,363
$ 259,245
Projected Investment Earnings vs. Actual
Investment Earnings
$ 785,138
$ -
Changes in Assumptions
$ 627,869
$ -
Changes in Proportion and Differences Between
Employer Contributions and Proportionate Share
of Contributions
$ -
$ 481,731
Employer Contributions Subsequent to the
Measurement Date
$ 595,919
Total
$ 2,155,289
1 $ 740,975
$595,919 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability for the year ended June 30, 2022.
Other amounts reported as deferred outflows and inflows of resources related to pensions are recognized in the employer's
pension expense as follows:
For the Measurement
Year ended June 30:
Recognition of Deferred Outflows and Deferred Inflows in future
years as an increase or decrease to Pension Expense
2021
$ 122,002
2022
$ 469,906
2023
$ 274,334
2024
$ 196,157
Thereafter
$ -
62
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Actuarial Assumptions: The total pension liability in the June 30, 2020, actuarial valuation was determined using the following
actuarial assumptions.
Investment Return (net of admin expense)
7.34%
Admin Expense as % of Payroll
0.30%
General Wage Growth`
3.50%
`includes Inflation at
2.40%
Merit Increases
0% to 4.80%
Post Retirement Increases
1. Guaranteed Annual Benefit Adjustment
(GABA) each January
• After the member has completed 12 full months of
retirement, the member's benefit increases by the
applicable percentage (provided below) each January,
inclusive of all other adjustments to the member's benefits.
• Members hired prior to July 1, 2007
3.00%
• Members hired between July 1, 2007 & June 30, 2013
1.50%
• Members hired on or after July 1, 2013
• For each year PIERS is funded at or above 90%
1.50%
• The 1.5% is reduced by 0.1 % for each
2% PIERS is funded below 90%
• 0% whenever the amortization period for PIERS
0.00%
is 40 years or more
Mortality:
• Contributing members, service retired members &
RP-2000 Combined Employee
beneficiaries
and Annuitant Mortality Tables
projected to 2020 with scale BB,
set back one year for males
• Disable Retirees
PR-2000 Combined Mortality
Table with no projections
The most recent experience study, performed for the period covering fiscal years 2011 through 2016, is outlined in a report dated
May 5, 2017, and can be located on the MPERA website. The long-term expected return on pension plan assets is reviewed as
part of the regular experience studies prepared for the Plan. The long-term rate of return as of June 30, 2020, was calculated using
the average long-term capital market assumptions published in the Survey of Capital Market Assumptions 2020 Edition by
Horizon Actuarial Service, LLC, yielding a median real rate of return of 4.94%. The assumed inflation is based on the
intermediate inflation of 2.4% in the 2020 OASDI Trustees Report by the Chief Actuary for Social Security to produce 75-year
cost projections. Combining these two results yields a nominal return of 7.34%. Best estimates of arithmetic real rates of return
for each major asset class included in the target asset allocation as of June 30, 2020, are summarized in the table below.
Asset Class
Target Asset Allocation
Long -Term Expected Real Rate
of Return Arithmetic Basis
Cash
2.0%
0.11 %
Domestic Equity
30.0%
6.19%
International Equity
16.0%
6.92%
Private Investments
14.0%
10.37%
Natural Resources
4.0%
3.43%
Real Estate
9.0%
5.74%
Core Fixed Income
20.0%
1.57%
Non -Core Fixed Income
5.0%
3.97%
Total
100%
63
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Discount Rate: The discount rate used to measure the TPL was 7.34%. The projection of cash flows used to
determine the discount rate assumed that contributions from participating plan members, employers, and non -employer
contributing entities would be made based on the Board's funding policy, which established the contractually required rates under
the Montana Code Annotated. The state contributed 0.10% of the salaries paid by local governments and 0.37% paid by school
districts. In addition, the state contributed a statutory appropriation from the general fund. Based on those assumptions, the Plan's
fiduciary net position was projected to be adequate to make all the projected future benefit payments of current plan members
through the year 2123. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in the discount rate.
Sensitivity of the proportionate share of the net pension liability to changes in the discount rate: The following presents the
employer's sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a
significant change in the liability. The NPL was calculated using the discount rate of 7.34%, as well as what the NPL would be if
it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate.
1.0% Decrease
Current Discount
1.0% Increase
As of measurement date
(6.34%)
Rate
(8.34%)
City of Kalispell Net Pension
Liability
$12,480,458
$9,067,196
$6,200,079
PERS Disclosure for the defined contribution plan
The City of Kalispell contributed to the state of Montana Public Employee Retirement System Defined Contribution
Retirement Plan (PERS-DCRP) for employees that have elected the DCRP. The PERS-DCRP is administered by the PERB
and is reported as a multiple employer plan established July 1, 2002, and governed by Title 19, chapters 2 & 3, MCA.
All new PERS members are initially members of the PERS-DBRP and have a 12-month window during which they may
choose to remain in the PERS-DBRP or join the PERS-DCRP by filing an irrevocable election. Members may not be
participants of both the defined benefit and defined contribution retirement plans.
Member and employer contribution rates are specified by state law and are a percentage of the member's compensation.
Contributions are deducted from each member's salary and remitted by participating employers. The state Legislature has the
authority to establish and amend contribution rates.
Benefits are dependent upon eligibility and individual account balances. Participants are vested immediately in their own
contributions and attributable income. Participants are vested after 5 years of membership service for the employer's
contributions to individual accounts and the attributable income. Non -vested contributions are forfeited upon termination of
employment per 19-3-2117(5), MCA. Such forfeitures are used to cover the administrative expenses of the PERS-DCRP.
At the plan level for the measurement period ended June 30, 2020, the City of Kalispell did not recognize any net pension
liability or pension expense for the defined contribution plan. Plan level non -vested forfeitures for the 329 employers that
have participants in the PERS-DCRP totaled $775,195.
Pension plan fiduciary net position: The stand-alone financial statements of the Montana Public Employees Retirement
Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan's fiduciary net
position. The reports are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or both are
available on the MPERA website at hU://mpera.mt.gov/index.shtml
64
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
MUNICIPAL POLICE OFFICERS' RETIREMENT SYSTEM
GASB 68 NOTES TO THE FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2021
(REPORTING DATE), JUNE 30, 2020(MEASUREMENT DATE)
In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers, and the non -employer
contributing entity are required to recognize and report certain amounts associated with participation in the Municipal Police
Officers' Retirement System (the Plan). This includes the proportionate share of the collective Net Pension Liability; Pension
Expense; and Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers are provided guidance
in GASB Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate for reporting, whether
provided through cost -sharing, single -employer, or agent plans. This report provides information for employers who are using a
June 30, 2020 measurement date for the 2021 reporting.
Summary of Significant Accounting Policies
MPERA prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA
for the purposes of determining the Net Pension Liability (NPL); Deferred Outflows of Resources and Deferred Inflows of
Resources related to pensions; Pension Expense; the Fiduciary Net Position; and, Additions to or Deductions from Fiduciary
Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are
recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are
recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in
the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the
period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by
the United States of America. MPERA applied all applicable pronouncements of the Governmental Accounting Standards
Board (GASB).
General Information about the Pension Plan
Plan Description: The Municipal Police Officers' Retirement System (MPORS), administered by the Montana Public
Employee Retirement Administration (MPERA), is a multiple -employer, cost -sharing defined benefit plan established in
1974 and governed by Title 19, chapters 2 & 9, Montana Code Annotated (MCA). This plan provides retirement benefits to
all municipal police officers employed by first- and second-class cities and other cities that adopt the plan. Benefits are
established by state law and can only be amended by the Legislature.
Deferred Retirement Option Plan (DROP): Beginning July 2002, eligible members of MPORS can participate in the DROP
by filing a one-time irrevocable election with the Board. The DROP is governed by Title 19, Chapter 9, Part 12, MCA. A
member must have completed at least twenty years of membership service to be eligible. They may elect to participate in the
DROP for a minimum of one month and a maximum of 60 months and may only participate in the DROP once. A participant
remains a member of the MPORS but will not receive membership service or service credit in the system for the duration of
the member's DROP period. During participation in the DROP, all mandatory contributions continue to the retirement
system. A monthly benefit is calculated based on salary and years of service to date as of the beginning of the DROP period.
The monthly benefit is paid into the member's DROP account until the end of the DROP period. At the end of the DROP
period, the participant may receive the balance of the DROP account in a lump -sum payment or in a direct rollover to another
eligible plan, as allowed by the IRS. If the participant continues employment after the DROP period ends, they will again
accrue membership service and service credit. The DROP account cannot be distributed until employment is formally
terminated.
Benefits provided: MPORS provides retirement, disability, and death benefits to plan members and their beneficiaries.
Benefits are based on eligibility, years of service, and compensation. Member rights are vested after five years of service.
65
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Service retirement and monthly benefit formula:
• 20 years of membership service, regardless of age.
• Age 50 with 5 years of membership service (Early Retirement).
• 2.5% of FAC x years of service credit.
Second retirement: Re -calculated using specific criteria for members who return to covered MPORS employment prior to
July 1, 2017:
• Less than 20 years of membership service, upon re-employment, repay benefits and subsequent retirement is based
on total MPORS service.
• More than 20 years of membership service, upon re-employment, receives initial benefit and a new retirement
benefit based on additional service credit and FAC after re-employment.
Applies to retirement system members re-employed in a MPORS position on or after July 1, 2017:
• If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit
before terminating again, the member:
o is not awarded service credit for the period of re-employment;
o is refunded the accumulated contributions associated with the period of reemployment;
o starting the first month following termination of service, receives the same retirement
benefit previously paid to the member; and
o does not accrue post -retirement benefit adjustments during the term of reemployment but
receives a Guaranteed Annual Benefit Adjustment (GABA) in January immediately following
second retirement.
• If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit
before terminating again, the member:
o is awarded service credit for the period of reemployment;
o starting the first month following termination of service, receives:
* the same retirement benefit previously paid to the member, and
* a second retirement benefit for the period of reemployment calculated based
on the laws in effect as of the members rehire date; and
o does not accrue post -retirement benefit adjustments during the term of reemployment but
receives a GABA:
* on the initial retirement benefit in January immediately following second
retirement, and
* on the second retirement benefit starting in January after receiving that
benefit for at least 12 months.
• A member who returns to covered service is not eligible for a disability benefit.
Member's final average compensation (FAC)
• Hired prior to July 1, 1977 - average monthly compensation of final year of service;
• Hired on or after July 1, 1977 - final average compensation (FAC) for last consecutive 36 months.
Compensation Cap
• Hired on or after July 1, 2013: 110% annual cap on compensation considered as a part of a member's FAC.
Guaranteed Annual Benefit Adjustment (GABA)
• Hired on or after July 1, 1997, or those electing GABA, and has been retired for at least 12 months, a GABA will
be made each year in January equal to 3%.
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Minimum benefit adjustment (non-GABA)
e The minimum benefit provided may not be less than 50% of the compensation paid to a newly confirmed police
officer of the employer that last employed the member as a police officer in the current fiscal year.
Contributions: The State Legislature has the authority to establish and amend contribution rates to the plan. Member and
employer contribution rates are specified by Montana Statute and are a percentage of the member's compensation.
Contributions are deducted from each member's salary and remitted by participating employers.
Special Funding: MCA 19-9-702 requires the State of Montana to contribute a percentage of total compensation directly to
the Plan annually after the end of each fiscal year. Member, Employer and State contribution rates are shown in the table
below.
Member
Hired
Hired
Hired
>6/30/97
Fiscal Year
<7/1/76
Hired >6/30/76
>6/30/79
GABA
Employer
State
2000-2021
5.800%
7.000%
8.500%
9.000%
14.410%
29.370%
1998-1999
7.800%
9.000%
10.500%
11.000%
14.410%
29.370%
1997
7.800%
9.000%
10.500%
14.360%
29.370%
Pension Liabilities, Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
GASB Statement 68 allows a measurement date of up to 12 months before the employer's fiscal year-end can be utilized to
determine the Plan's TPL. The basis for the TPL as of June 30, 2020 was determined by taking the results of the June 30, 2019
actuarial valuation and applying standard roll forward procedures. The roll forward procedure uses a calculation that adds the
annual normal cost (also called the service cost), subtracts the actual benefit payments and refunds for the plan year, and then
applies the expected investment rate of return for the year. The roll forward procedure will include the effects of any assumption
changes and legislative changes. The update procedures are in conformity with Actuarial Standards of Practice issued by the
Actuarial Standards Board.
The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate
shares of the employer's and the State of Montana's NPL for June 30, 2020, and 2019, are displayed below. The City of
Kalispell's proportionate share equals the ratio of the employer's contributions to the sum of all employer and non -employer
contributions during the measurement period. Due to the existence of the special funding situation, the state is required to report a
proportionate share of a local government's collective NPL that is associated with the non -state employer. The state's
proportionate share for a particular employer equals the ratio of the contributions for a particular employer to the total state
contributions paid.
Percent of
Percentof
Changein
Net Pension
Net Pension
Collective
Collective
Percent of
Liability as of
Liability as of
NPL as of
NPL as of
Collective
As of measurement date
6/30/2020
6/30/2019
6/30/2020
6/30/2019
NPL
City of Kalispell
Proportionate Share
$ 3,663,004
$ 3,021,804
1.4976%
1.5182%
-0.0206%
State of Montana
Proportionate Share
associated with Employer
$ 7,387,909
$ 6,153,443
3.0206%
3.0915%
-0.0709%
Total
$ 11,050,913
$ 9,175,247
4.5182%
4.6097%
-0.0915%
67
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Changes in actuarial assumptions and methods: The following changes in assumptions or other inputs were made that affected
the measurement of the TPL.
1. The discount rate was lowered from 7.65% to 7.34%
2. The investment rate of return was lowered from 7.65% to 7.34%
3. The inflation rate was reduced from 2.75% to 2.40%
Changes in benefit terms: There have been no changes in benefit terms since the previous measurement date.
Changes in proportionate share: There were no changes between the measurement date of the collective NPL and the employer's
reporting date that are expected to have a significant effect on the employer's proportionate share of the collective NPL. However,
each employer may have unique circumstances that will impact the employer's proportionate share of the collective net pension.
If there were changes that are expected to have an impact on the net pension liability, the employer should disclose the amount of
the expected resultant change in the employer's proportionate share of the collective net pension liability, if known.
Pension Expense: At June 30, 2020 measurement date, the City of Kalispell recognized its proportionate share of the Plan's
pension expense of $627,023. The City of Kalispell also recognized grant revenue of $1,286,060 for the support provided by the
State of Montana for its proportionate share of the pension expense associated with the employer.
As of measurement date
Pension Expense as of
6/30/2020
Pension Expense as of
6/30/2019
City of Kalispell Proportionate Share
$ 627,023
$ 472,994
Employer Grant Revenue - State of Montana
Share for Employer
$ 1,286,060
$ 737,131
Total
$ 1,913,083
$ 1,210,125
Recognition of Deferred Inflows and Ou flows: At June 30, 2020, the City of Kalispell reported its proportionate share of the
Plan's deferred outflows of resources and deferred inflows of resources from the following sources:
Deferred Outflows of
Deferred Inflows of
As of measurement date
Resources
Resources
Expected vs. Actual Experience
$ 175,576
$ 11,563
Projected Investment Earnings vs. Actual
Investment Earnings
$ 284,860
$ -
Changes in Assumptions
$ 311,282
$ -
Changes in Proportion and Differences
Between Employer Contributions and
Proportionate Share of Contributions
$ -
$ 106,508
Employer Contributions Subsequent to the
Measurement Date
$ 396,106
Total
1 $ 1,167,824
1 $ 118,071
$396,106 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability for the year ended June 30, 2022.
Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense
as follows:
For the Measurement Year
ended June 30:
Recognition of Deferred Outflows and Deferred Inflows in
future years as an increase or (decrease) to Pension
Expense
2021
$
172,086
2022
$
231,077
2023
$
184,666
2024
1 $
65,819
Thereafter
1 $
-
68
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Actuarial Assumptions: The total pension liability in the June 30, 2020 actuarial valuation was determined using the
following actuarial assumptions.
Investment Return (net of admin expense)
7.34%
Admin Expense as % of Payroll
0.15%
General Wage Growth"
3.50%
"includes Inflation at
2.40%
Merit Increases
0% to 6.60%
Post Retirement Increases
1. Guaranteed Annual Benefit Adjustment
(GABA) each January
• Members hired on or after July 1, 1997,
3.00%
or those electing GABA
• Requires 12 full months of retirement
before GABA will be made
2. Minimum Benefit Adjustment (non-GABA)
The minimum benefit provided should not
• Benefit for a retired member or member's
be less than 50% of the monthly
survivor and member did not elect GABA
compensation paid to a newly confirmed
police officer of the employer that last
employed the member as a police officer
Mortality:
• Contributing members, Service Retired
RP-2000 Combined Employee and
Members & beneficiaries
Annuitant Mortality Tables projected to
2020 with scale BB, set back one year
for males
• Disabled Retirees
PR-2000 Combined Mortality Table with
no projects
The most recent experience study, performed for the period covering fiscal years 2011 through 2016, is outlined in a report dated
May 5, 2017 and can be located on the MPERA website. The long-term expected return on pension plan assets is reviewed as part
of the regular experience studies prepared for the Plan. The long-term rate of return as of June 30, 2020, was calculated using the
average long-term capital market assumptions published in the Survey of Capital Market Assumptions 2020 Edition by Horizon
Actuarial Service, LLC, yielding a median real rate of return of 4.94%. The assumed inflation is based on the intermediate
inflation of 2.4% in the 2020 OASDI Trustees Report by the Chief Actuary for Social Security to produce 75-year cost
projections. Combining these two results yields a nominal return of 7.34%. Best estimates of arithmetic real rates of return for
each major asset class included in the target asset allocation as of June 30, 2020, are summarized below.
Asset Class
Target Asset Allocation
Long- I erm Expected Real
Rate of Return Arithmetic
Basis
Cash
2.0%
0.11 %
Domestic Equity
30.0%
6.19%
International Equity
16.0%
6.92%
Private Investments
14.0%
10.37%
Natural Resources
4.0%
3.43%
Real Estate
9.0%
5.74%
Core Fixed Income
20.0%
1.57%
Non -Core Fixed Income
5.0%
3.97%
Total
100%
Z
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Discount Rate: The discount rate used to measure the TPL was 7.34%. The projection of cash flows used to
determine the discount rate assumed that contributions from participating plan members, employers, and non -employer
contributing entities would be made based on the Board's funding policy, which established the contractually required rates under
the Montana Code Annotated. The state contributed 29.37% of the salaries paid by employers. Based on those assumptions, the
Plan's fiduciary net position was projected to be adequate to make all the projected future benefit payments of current plan
members through the year 2134. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in the discount rate.
Sensitivity of the proportionate share of the net pension liability to changes in the discount rate: The following presents the
employer's sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a
significant change in the liability. The NPL was calculated using the discount rate of 7.34%, as well as what the NPL would be if
it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate.
1.0% Decrease
Current Discount
1.0% Increase
As of measurement date
(6.34%)
Rate
(8.34%)
City of Kalispell Net Pension
Liability
$5,221,844
$3,663,004
$2,419,407
Pension plan fiduciary net position: The stand-alone financial statements of the Montana Public Employees Retirement
Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan's fiduciary net
position. The reports are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or both are
available on the MPERA website at http://mpera.mt.gov/index.shtml
FIREFIGHTERS' UNIFIED RETIREMENT SYSTEM
GASB 68 NOTES TO THE FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2021
(REPORTING DATE), JUNE 30, 2020 (MEASUREMENT DATE)
In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non -employer
contributing entity are required to recognize and report certain amounts associated with participation in the Firefighters' Unified
Retirement System (the Plan). This includes the proportionate share of the collective Net Pension Liability; Pension Expense; and
Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers are provided guidance in GASB
Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate for reporting, whether provided
through cost -sharing, single -employer, or agent pension plans. This report provides information for employers who are using a
June 30, 2020 measurement date for the 2021 reporting.
Summary of Significant Accounting Policies
MPERA prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA
for the purposes of determining the Net Pension Liability (NPL); Deferred Outflows of Resources and Deferred Inflows of
Resources related to pensions; Pension Expense; the Fiduciary Net Position; and, Additions to or Deductions from Fiduciary
Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are
recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are
recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in
the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the
period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by
the United States of America. MPERA applied all applicable pronouncements of the Governmental Accounting Standards
Board (GASB).
70
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
General Information about the Pension Plan
Plan Description: The Firefighters' Unified Retirement System (FURS), administered by the Montana Public Employee
Retirement Administration (MPERA), is a multiple -employer, cost -sharing defined benefit plan established in 1981, and
governed by Title 19, chapters 2 & 13, Montana Code Annotated (MCA). This plan provides retirement benefits to
firefighters employed by first and second-class cities, other cities and rural fire district departments that adopt the plan, and to
firefighters hired by the Montana Air National Guard on or after October 1, 2001. Benefits are established by state law and
can only be amended by the Legislature.
Benefits provided: The FURS provides retirement, disability, and death benefits to plan members and their beneficiaries.
Benefits are based on eligibility, years of service, and highest average compensation (HAC). Member rights are vested after
five years of service.
Service retirement and monthly benefit formula:
• Hired on or after July 1, 1981, or member has elected to be covered by GABA:
o 20 years of membership service, regardless of age
o 2.5% of HAC x years of service credit
• Hired prior to July 1, 1981, and who had not elected to be covered by GABA, the greater of above, or:
o If membership service is less than 20 years: 2% of the highest monthly compensation
(HMC) for each year of service credit, or
o If membership service is greater or equal to 20 years: 50% of HMC plus 2% of HMC for
each year of service credit more than 20
• Early retirement: Age 50 with 5 years of membership service - Normal retirement benefit calculated using HAC
and service credit
Second retirement:
Applies to retirement system members re-employed in a FURS position on or after July 1, 2017:
• If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit
before terminating again, the member:
o is not awarded service credit for the period of reemployment;
o is refunded the accumulated contributions associated with the period of reemployment;
o starting the first month following termination of service, receives the same retirement
benefit previously paid to the member; and
o does not accrue post -retirement benefit adjustments during the term of reemployment but
receives a Guaranteed Annual Benefit Adjustment (GABA) in January immediately following
second retirement.
• If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit
before terminating again, the member is awarded service credit for the period of reemployment;
o starting the first month following termination of service, receives:
* the same retirement benefit previously paid to the member; and
* a second retirement benefit for the period of reemployment calculated based
on the laws in effect as of the members' rehire date, and
o does not accrue post -retirement benefit adjustments during the term of reemployment but
receives a GABA:
* on the initial retirement benefit in January immediately following second
retirement, and
* on the second retirement benefit starting in January after receiving that
benefit for at least 12 months.
• A member who returns to covered service is not eligible for a disability benefit.
71
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Member's compensation period used in benefit calculation
• Hired prior to July 1, 1981, and not electing GABA: highest monthly compensation (HMC);
• Hired after June 30, 1981, and those electing GABA: highest average compensation (HAC) during any
consecutive 36 months (or shorter period of total service).
• Part-time firefighter: 15% of regular compensation of a newly confirmed full-time firefighter.
Compensation Cap
• Hired on or after July 1, 2013: 110% annual cap on compensation considered as a part of a member's HAC.
Guaranteed Annual Benefit Adjustment (GABA)
Hired on or after July 1, 1997, or those electing GABA, and has been retired for at least 12 months — the member's
benefit increases by 3.0% each January.
Minimum Benefit Adjustment (non-GABA)
A member with 10 or more years of membership service who has not elected to be covered under GABA - the
minimum benefit provided may not be less than 50% of the monthly compensation paid to a newly confirmed active
firefighter of the employer that last employed the member as a firefighter in the current fiscal year.
Contributions: The State Legislature has the authority to establish and amend contribution rates to the plan. Member and
employer contribution rates are specified by Montana Statute and are a percentage of the member's compensation.
Contributions are deducted from each member's salary and remitted by participating employers.
Special Funding: MCA 19-13-604 requires the State of Montana to contribute a percentage of total compensation directly to
the Plan annually after the end of each fiscal year. Member, Employer and State contribution rates are shown in the table
below.
Member
Fiscal Year Non-GABA GABA Employer State
1998 - 2021 9.500% 10.700% 14.360% 32.610%
1997 7.800% 14.360% 32.610%
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
GASB Statement 68 allows a measurement date of up to 12 months before the employer's fiscal year-end can be utilized to
determine the Plan's TPL. The basis for the TPL as of June 30, 2020, was determined by taking the results of the June 30, 2019,
actuarial valuation and applying standard roll forward procedures. The roll forward procedure uses a calculation that adds the
annual normal cost (also called the service cost), subtracts the actual benefit payments and refunds for the plan year, and then
applies the expected investment rate of return for the year. The roll forward procedure will include the effects of any assumption
changes and legislative changes. The update procedures are in conformity with Actuarial Standards of Practice issued by the
Actuarial Standards Board.
72
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate
shares of the employer's and the State of Montana's NPL for June 30, 2020, and 2019, are displayed below. The employer's
proportionate share equals the ratio of the employer's contributions to the sum of all employer and non -employer contributions
during the measurement period. Due to the existence of the special funding situation, the state is required to report a proportionate
share of a local government's collective NPL that is associated with the non -state employer. The state's proportionate share for a
particular employer equals the ratio of the contributions for the employer to the total state contributions paid. The City of
Kalispell recorded a liability of $1,822,118 and the City of Kalispell's proportionate share was 1.1645 percent.
Changein
Net Pension
Net Pension
Percent of
Percent of
Percent of
Liability as of
Liability as of
Collective NPL
Collective NPL
Collective
As of measurement date
6/30/2020
6/30/2019
as of 6/30/2020
as of 6/30/2019
NPL
City of Kalispell Proportionate
Share
$ 1,822,118
$ 1,333,236
1.1645%
1.1622%
0.0023%
State of Montana Proportionate
Share associated with the
Employer
$ 4,107,673
$ 3,224,436
2.6251%
2.8109%
-0.1858%
Total
$ 5,929,791
$ 4,557,672
3.7896%
3.9731%
-0.1835%
Changes in actuarial assumptions and methods: The following changes in assumptions or other inputs were made that affected
the measurement of the TPL.
1. The discount rate was lowered from 7.65% to 7.34%
2. The investment rate of return was lowered from 7.65% to 7.34%
3. The inflation rate was reduced from 2.75% to 2.40%
Changes in benefit terms: There have been no changes in benefit terms since the previous measurement date.
Changes in proportionate share: There were no changes between the measurement date of the collective NPL and the employer's
reporting date that are expected to have a significant effect on the employer's proportionate share of the collective NPL. However,
each employer may have unique circumstances that will impact the employer's proportionate share of the collective net pension.
If there were changes that are expected to have an impact on the net pension liability, the employer should disclose the amount of
the expected resultant change in the employer's proportionate share of the collective net pension liability, if known.
Pension Expense: At June 30, 2020 measurement date, the City of Kalispell recognized its proportionate share of the Plan's
pension expense of $320,281. The City of Kalispell also recognized grant revenue of $725,905 for the support provided by the
State of Montana for its proportionate share of the pension expense that is associated with the employer.
As of measurement date
Pension Expense as of
6/30/2020
Pension Expense as of
6/30/2019
City of Kalispell Proportionate Share
$ 320,281
$ 238,673
Employers Grant Revenue - State of Montana
Proportionate Share for Employer
$ 725,905
$ 671,733
Total
1 $ 1,046,186
1 $ 910,407
73
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Recognition of Deferred Inflows and Ou flows: At June 30, 2020, the City of Kalispell reported its proportionate share of the
Plan's deferred outflows of resources and deferred inflows of resources from the following sources:
Deferred Outflows of
Deferred Inflows of
As of measurement date
Resources
Resources
Expected vs. Actual Experience
$
124,017
$
9,484
Projected Investment Earnings vs. Actual
Investment Earnings
$
233,924
$
-
Changes in Assumptions
$
323,687
$
-
Changes in Proportion and Differences Between
Employer Contributions and Proportionate Share of
Contributions
$
-
$
143,718
Employer Contributions Subsequent to the
Measurement Date
$
338,706
Total
$
1,020,334
1 $
153,202
$338,706 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability for the year ended June 30, 2022.
Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense
as follows:
For the Measurement Year
ended June 30:
Recognition of Deferred Outflows and Deferred Inflows in
future years as an increase or (decrease) to Pension Expense
2021
$ 103,373
2022
$ 141,173
2023
$ 103,901
2024
$ 81,911
Thereafter
$ 98,067
74
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
Actuarial Assumptions: The total pension liability in the June 30, 2020 actuarial valuation was determined using the
following actuarial assumptions.
Investment Return (net of admin expense)
7.34%
Admin Expense as % of Payroll
0.13%
General Wage Growth*
3.50%
*includes Inflation at
2.40%
Merit Increases
0% to 6.30%
Post Retirement Increases
1. Guaranteed Annual Benefit Adjustment
(GABA) each January
• Members hired on or after
3.00%
July 1, 1997 or those electing
GABA
• Requires 12 full months of
retirement before GABA will be
made
2. Minimum Benefit Adjustment (non-GABA)
The minimum benefit provided should be less
• Members with 10 or more years of
than 50% of the current base compensation of a
membership service and member
newly confirmed active firefighter of the employer
did not elect GABA
that last employed the member as a firefighter
Mortality:
• Contributing members, Service Retired
RP-2000 Combined Employee and
Members & beneficiaries
Annuitant Mortality Tables projected to
2020 with scale BB, set back one year
for males
• Disabled Members
PR-2000 Combined Mortality Table with
no projections
The most recent experience study, performed for the period covering fiscal years 2011 through 2016, is outlined in a report dated
May 5, 2017 and can be located on the MPERA website. The long-term expected return on pension plan assets is reviewed as part
of the regular experience studies prepared for the Plan. The long-term rate of return as of June 30, 2020, was calculated using the
average long-term capital market assumptions published in the Survey of Capital Market Assumptions 2020 Edition by Horizon
Actuarial Service, LLC, yielding a median real rate of return of 4.94%. The assumed inflation is based on the intermediate
inflation of 2.4% in the 2020 OASDI Trustees Report by the Chief Actuary for Social Security to produce 75-year cost
projections. Combining these two results yields a nominal return of 7.34%. Best estimates of arithmetic real rates of return for
each major asset class included in the target asset allocation as of June 30, 2020, are summarized below.
Asset Class
Target Asset Allocation
Long -Term Expected Real
Rate of Return Arithmetic
Basis
Cash
2.0%
0.11 %
Domestic Equity
30.0%
6.19%
International Equity
16.0%
6.92%
Private Investments
14.0%
10.37%
Natural Resources
4.0%
3.43%
Real Estate
9.0%
5.74%
Core Fixed Income
20.0%
1.57%
Non -Core Fixed Income
5.0%
3.97%
Total
100%
75
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Discount Rate: The discount rate used to measure the TPL was 7.34%. The projection of cash flows used to
determine the discount rate assumed that contributions from participating plan members, employers, and non -employer
contributing entities would be made based on the Board's funding policy, which established the contractually required rates under
the Montana Code Annotated. The state contributed 32.61% of the salaries paid by employers. Based on those assumptions, the
Plan's fiduciary net position was projected to be adequate to make all the projected future benefit payments of current plan
members through the year 2133. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in the discount rate.
Sensitivity of the proportionate share of the net pension liability to changes in the discount rate: The following presents the
employer's sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a
significant change the liability. The NPL was calculated using the discount rate of 7.34%, as well as what the NPL would be if it
were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate.
1.0% Decrease
Current Discount
1.0% Increase
As of measurement date
(6.34%)
Rate
(8.34%)
City of Kalispell Net Pension
Liability
$2,946,978
$1,822,118
$918,286
Pension plan fiduciary net position: The stand-alone financial statements of the Montana Public Employees Retirement
Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan's fiduciary net
position. The reports are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or both are
available on the MPERA website at http://mpera.mt.gov/index.shtml
G. Postemployment Health Insurance Benefits (OPEB)
Plan Description. In fiscal year 2020, the City of Kalispell provided employee medical insurance through a single -employer
plan run by the Montana Municipal Interlocal Authority (MMIA). The City also provided dental through single -employer
defined benefit plan. As required by state law (2-18-704, MCA), terminated employees may remain on the City's health
insurance plan for up to 18 months if they pay the monthly premiums. This benefit is required under federal C.O.B.R.A. law.
In accordance with Montana State law (see below), retirees may remain on the City's health plan if they wish The City's
contract with Allegiance Benefits details the plan eligibility. MMIA is the administrator of the benefit plan, which covers
both active and retired members. The City's retirees may continue coverage for themselves and their covered eligible
dependents if they are eligible for public employees' retirement by virtue of their employment with the City of Kalispell. To
continue coverage, retirees are required to pay the full cost of the benefit. The City's current labor contracts do not include
any obligations for payments to retirees.
Montana Codes Annotated (MCA) Section 2-18-704 states (1) an insurance contract or plan issued under this part must
contain provisions that permit:
(a) The member of a group who retires from active service under the appropriate retirement provisions of a defined
benefit plan provided by law or, in the case of the defined contribution plan provided in Title 19, chapter 3, part 21,
a member with at least 5 years of service and who is a least age 50 while in covered employment to remain a
member of the group until the member becomes eligible for medicare under the federal Health Insurance for the
Aged Act, 42 U.S. C. 1395, as amended, unless the member is a participant in another group plan with
substantially the same or greater benefits at an equivalent cost or group plan with substantially the same or greater
benefits at an equivalent cost;
76
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(b) The surviving spouse of a member to remain a member of the group as long as the spouse is eligible for retirement
benefits accrued by the deceased member as provided by law unless the spouse is eligible for medicare under the
federal Health Insurance for the Aged Act or unless the spouse has or is eligible for equivalent insurance coverage
as provided in subsection (1)(a);
(c) The surviving children of a member to remain members of the group if they are eligible for retirement benefits
accrued by the deceased member as provide by law unless they have equivalent coverage in subsection (1)(a) or are
eligible for insurance coverage by virtue of the employment of a surviving parent or legal guardian.
Funding Policy. MMIA health insurance rates are actuarially set annually, and benefits altered to ensure the plans remain
properly funded. The City receives a monthly bill that it can allocate to participants as it wishes. The City pays MMIA the
monthly premiums and has no further liability for health claims. The City plans to continue funding the employee health
insurance plan on a "pay as you go" basis and does not plan to fund this liability since it has paid the full amount due each
month.
OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources Related to OPEB. The City's total other post -
employment benefit (OPEB) liability of $3,843,941 as of June 30, 2021, was determined by an actuarial valuation as of that
date.
Actuarial assumptions and other inputs. The total OPEB liability in the June 30, 2021 actuarial valuation was determined
using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Inflation
Salary increases
Discount rate
Premium trend rate
Retirees share of benefit -related costs
3.00 percent
3.50 percent
2.18 percent
3.20 percent
100 percent of projected premiums for retirees
The discount rate was based on the S&P Municipal Bond 20 Year High Grade Rate Index as of June 30, 2021.
Mortality rates were based on the RP-2000 Combined Mortality Table Projection BB projected to 2020, males set back one
year; consistent with PERS, FURS, and MPORS Pension Actuarial Valuation 6/30/20.
The actuarial assumptions used in the June 30, 2021 valuation represent a reasonable long-term expectation of future OPEB
outcomes. The assumptions are tested with each valuation for ongoing reasonableness and are updated when appropriate.
Changes in the Total OPEB Liability.
Total OPEB
Liability
OPEB Liability at June 30,2020
$ 3,334,026
Changes for the year:
Service cost
$ 326,193
Interest
$ 72,682
Difference between expected
and actual experience
$ (235,464)
Changes in assumptions
$ 346,504
OPEB Liability at June 30,2020
$3,843,941
77
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following table presents the total OPEB liability
of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1-
percentage-point lower or higher than the current discount rate.
1 % Decrease Discount Rate 1 % Increase
(1.18%) (2.18%) (3.18%)
Total OPEB Liability $ 4,635,495 $ 3,843,941 $ 3,220,434
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates. The following table presents the total
OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a medical trend
rate that is 1-percentage-point lower or higher than the current trend rate.
1% Decrease Trend Rate 1% Increase
(2.2%) (3.2%) (4.2%)
Total OPEB Liability $ 3,091,544 $ 3,843,941 $ 4,841,440
For the year ended June 30, 2021, the City reported deferred inflows and deferred outflows of resources related to OPEB
from the following sources:
Differences between expected
and actual experience
Current year amortization of
experience differences
Changes in assumptions or other
inputs
Current year amortization of
assumption changes
Total
Deferred Inflows Deferred Outflows
of Resources of Resources
$ (1,108,771)
$ 9,466
$ 216,565
$ (2,504)
$ (923,386)
$ 1,316,511
$ 207,896
$ (274,942)
$ (1,607,696) $ 1,048,531
Amounts reported as deferred outflows/deferred outflows of resources related to OPEB as of June 30, 2021 will be
recognized in OPEB expense as follows:
Actual to Expected
Changes in
Fiscal Year Ending
Experience
Assumptions
June 30:
Inflow
Outflow
2021
$
(22,995)
$ 33,838
$
10,843
2022
$
(22,995)
$ 33,838
$
10,843
2023
$
(22,995)
$ 33,838
$
10,843
2024
$
(22,995)
$ 33,838
$
10,843
2025
$
(22,995)
$ 33,838
$
10,843
Thereafter
$
(120,489)
$ 177,314
$
56,825
$
(235,464)
$ 346,504
$
111,040
78
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
H. Amounts Due From other Governments
On June 30, 2021, the amounts due from other governments consisted of the following:
General Fund Amount Debt Service Funds Amount
Due from:
Flathead County -Taxes $ 312,622
State of Montana -Video Gaming Fees $ 775
U.S. Treasury $ 312
Sub Total $ 313,709
Special Revenue Funds
Amount
Due from:
Flathead County -Taxes
$
424,689
Flathead County -EMS Levy
$
76,996
Flathead County-Stonegarden
$
2,588
Montana Board of Crime Control
$
17,356
U.S. DOJ
$
12,544
DoMA
$
4,459
EPA
$
1,483
Sub Total $
540,115
I. Restricted Cash/Investments
Due from:
Flathead County -Taxes $ 24,082
Capital Project Funds Amount
Due from:
FRA (Department of Transportation) $ 1,045,006
Total Governmental Funds $ 1,922,912
Enterprise Funds Amount
Due from:
Flathead County -Impact Fees $ 76,099
Flathead County -Taxes $ 1,060,267
Total Business -type Funds $ 1,136,366
Total City of Kalispell $ 3,059,278
The following restricted cash/investments were held as of June 30, 2021. These amounts are reported within the
cash/investment accounts on the Balance Sheet - Governmental Funds, and as restricted cash and investments on the
Statement of Net Position - Proprietary Funds.
RESTRICTED CASH:
Business -type Activities
July 1, 2020
Additions
Subtractions
June 30, 2021
Water Bond Reserve
$ 524,854
$ -
$ (297,581)
227,273
Plant InvestmenUlmpact Fees (1)
1,452,526
719,859
(649,278)
1,523,107
Sewer Operating Reserve (2)
280,000
120,000
-
400,000
Bond Reserve
1,371,043
88,505
(536,931)
922,617
Plant InvestmenUlmpact Fees (sanitary) (1)
2,361,310
1,155,941
(774,886)
2,742,365
Plant InvestmenUlmpact Fees (treatment plant) (1)
2,141,597
747,284
(275,204)
2,613,677
Plant InvestmenUlmpact Fees (storm) (1)
2,140,328
267,382
(299,841)
2,107,869
Treatment Plant Replacement (3)
315,182
427,327
(316,847)
425,662
Total business -type activities restricted cash/investments
10,586,840
3,526,298
(3,150,568)
10,962,570
Governmental Activities
Impact Fees Public Safety Growth related Capital (1) 1,309,043 300,276 (22,440) 1,586,879
Urban Forestry Developers (4) 110,359 41,518 (9,730) 142,147
Debt Service Westside TIF Bond Reserve 480,011 - - 480,011
Debt Service SID 345 Bond Reserve 11,172 - - 11,172
Debt Service Revolving Fund - SID 344 Bond Reserve 146,000 - - 146,000
Debt Service Revolving Fund - SID 345 Bond Reserve 12,100 12,100
Total governmental activities restricted cash/investments 2,068,685 341,794 (32,170) 2,378,309
Total restricted cash/investments $ 12,655,525 $ 3,868,092 $ (3,182,738) $ 13,340,879
(1) Plant investment/impact fee cash. Montana State legislation regulating impact fees to fund capital improvements, MCA
7-6-1601 through 7-6-1604 (see 7-6-1603 below related to expending impact fees), became effective April 19, 2005 and
sets forth the procedures and requirements for the imposition of impact fees by local governments. On October 16, 2006,
by ordinance no. 1587, the Kalispell City Council authorized and established the procedure and imposition of impact
fees to fund capital improvements related to additional capacity (growth).
MCA 7-6-1603 states, "the collection and expenditure of impact fees must be reasonably related to the benefits
accruing to the development paying the impact fees..."
(2) Sewer operating reserve cash is restricted by ordinance no. 859 (1 month operating expenses).
(3) Treatment plant replacement cash is restricted by an agreement with Flathead County Water District (third party).
(4) Urban forestry receives cash from developers to be used to plant trees in new city developments (third party).
79
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
J. Restatements
During the 2021 fiscal year, the following adjustments relating to prior years' transactions were made to fund balance or net
position accounts.
Fund
General Fund - Major Gov'tal
Ambulance Fund - Nonmajor Gov'tal
Total Gov'tal funds/Gov'tal activities
K. Joint Ventures
Amount
$ 145,838
$ 42,613
$ 188,451
Reason
Prior period expenditures understated - KFD contract
Prior period expenditures understated - KFD contract
Joint ventures are independently constituted entities generally created by two or more governments for a specific purpose,
which are subject to joint control, in which the participating governments retain 1) an ongoing financial interest or 2) an
ongoing financial responsibility.
1. City -County Health Department
The City -County Health Department is operated under an interlocal agreement between Flathead County and the City of
Kalispell. The Department operates under the supervision and control of the City -County Health Board. The Board consists
of seven members, six of whom are appointed by the Board of County Commissioners. The Department is financed, in
addition to revenue generated by providing health services, by the City and the County levying an identical mill levy in order
that all property within the City of Kalispell and all property in Flathead County outside the City limits are taxed equally.
The operation is accounted for in the County Health Fund and is included in the general-purpose financial statements of
Flathead County within the Special Revenue Fund.
2. 911 Dispatch Center
The 911 Dispatch Center is operated under an interlocal agreement between Flathead County, the City of Columbia Falls, the
City of Whitefish, and the City of Kalispell. The Center operates under the supervision and control of the Flathead
Emergency Communications Center Board. The Board consists of six members, the Flathead County Sheriff, a County
Commissioner chosen by the Board of County Commissioners, the County Attorney or other elected County officer, and an
elected official or designee from each of the cities of Kalispell, Whitefish, and Columbia Falls. The Department is financed
by funds received by all members from the State (9-1-1 fees) pursuant to Section 10-4-302, M.C.A. Any additional operating
funds needed will be shared proportionally by all members. Under the supervision of the Board, the Director shall hire and
direct staff to carry out the responsibilities of the County's Office of Emergency Services and the Flathead County Fire
Service Area.
L. County Provided Services
The City of Kalispell is provided various financial services by Flathead County. The County serves as cashier and treasurer
for the City for tax assessment collections and other revenues received by the County, which are subject to distribution to the
various taxing jurisdictions located in the County. The collections made by the County on behalf of the City are accounted
for in an agency fund in the City's name and are periodically remitted to the City by the County Treasurer. The County
charges the City for fees associated with City Special Assessments.
01
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
M. Risk Management
The City faces a considerable number of risks of loss, including a) damage to and loss of property and contents, b) employee
torts, c) professional liability, i.e., errors and omissions, d) environmental damage, e) workers' compensation, i.e. employee
injuries, and f) medical insurance costs of employees. A variety of methods are used to provide insurance for these risks.
Commercial policies, transferring all risks of loss, except for relatively small deductible amounts are purchased for property
and content damage and professional liabilities. The City participates in two statewide public risk pools operated by the
Montana Municipal Insurance Authority, for workers' compensation and for tort liability coverage. Employee medical
insurance is provided through a statewide health insurance pool administered by MMIA. Given the lack of coverage
available, the City has no coverage for potential losses from environmental damages.
Effective July 1, 1987 The City of Kalispell joined with other Montana cities to form the Montana Municipal Insurance
Authority, a self-insurance pool offering Worker's Compensation and Liability Coverage. Both public entity risk pools
currently operate as common risk management and insurance programs for the member governments. The liability limits for
damages in tort action are $750,000 per claim and $1.5 million per occurrence with an $11,250 deductible per occurrence.
State tort law limits the City's liability to $1.5 million. The city pays an annual premium for its employee injury insurance
coverage, which is allocated to the employer funds based on total salaries and wages. The agreements for formation of the
pools provide that they will be self-sustaining through member premiums. The tort liability plan and workers' compensation
program issued bonds in the amount of $4.41 million and $7.610 million, respectively, to immediately finance the necessary
insurance reserves. All members signed a contingent note for a pro rata share of this liability in case operating revenue was
insufficient to cover the debt service. The City's share is $201,445 for liability and $281,715 for Workers' Compensation to
finance the necessary insurance reserves. Based on the plan's current financial position, the City does not expect to make any
payment on these notes. Separate financial statements are available from the Montana Municipal Insurance Authority.
On October 1, 2004, Kalispell signed a 5 year agreement, since then extended, and through the Montana Municipal Insurance
Authority, to create a statewide health insurance pool. The City pays the total monthly premium for employees who only
choose to cover themselves. For employees who choose to cover additional dependents, the City pays a percentage of the
extra costs.
N. Contingencies
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the
opinion of the City's legal counsel that resolution of these matters will not have a material adverse effect on the financial
condition of the City. The effect on the financial statements cannot be determined at this time due to litigation. Accordingly,
no provision has been made in the financial statements for these contingent liabilities.
81
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
O. Receivables
Taxes/Assessments Receivable
The following funds had taxes and/or assessments receivable at June 30, 2021.
FUND
Source
Amount
General - Major Governmental
Taxes
$ 280,470
Downtown TIF
Taxes
1,050
Westside TIF
Taxes
1,369
Parks
Taxes
45,637
Old School 'Tech" TIF
Taxes
43,644
Old School "Ind" TIF
Taxes
47,034
Health Levy
Taxes
44,091
Light Maintenance District
Assessments
19,375
Street Maintenance - Major Governmental
Assessments
109,998
Urban Forestry
Assessments
23,930
G.O. Bonds
Taxes
9,827
Westside TIF debt service
Taxes
13,194
SID 344 - Major Governmental
Assessments
1,466,932
SID 345
Assessments
122,626
S & C's
Assessments
39,697
Total Governmental Funds
$ 2,268,874
Sewer - Major Business -type
Assessments
50,608
Solid waste
Assessments
27,934
Total Business -type Funds
78,542
Total City
$ 2,347,416
Accounts Receivable
At June 30, 2021, the Ambulance fund had accounts receivable deferred net of $326,744. Total net accounts receivable of
the Ambulance fund is $330,553. The difference is the result of $3,809 being receivable, and therefore recognized as revenue,
prior to the Ambulance fund conversion from a proprietary fund to a special revenue fund.
Loans Receivable
Community Development Loan Revolving
Second Avenue West Partners
In August of 2002, the City of Kalispell entered two (2) notes receivable agreements with 21 Avenue West Partners, L.P.
(Hampstead Partners) for property on 2nd Avenue West in Kalispell. The property consists of a 40-unit low-income apartment
complex known as 2nd Avenue West Independent Living Center. As stipulated in the agreement, this property is restricted as
low-income housing, and shall remain as such for a period of thirty-five years.
One of these notes is for $480,000, and bears interest at 1% per annum. The second of these notes is for $400,000, and bears
interest at 4.81% per annum. These loans mature on February 28, 2032. Payments of interest on the note are due on or before
the last day of the taxable year, to the extent there is surplus cash, as defined by the note. Unpaid interest shall accrue until
paid, but not compound on the first loan. Payments of principal are not required until the maturity date of the loans. The notes
are secured by a deed of trust on the property. Accrued interest as of June 30, 2021, is $90,855, and $550,425, respectively.
82
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Community Development Block Grant Economic Development Program
In fiscal year 2007, the City entered a community development program with funding from a community development block grant
economic development program. Eligibility for these low interest loans is tied to the creation of jobs within Kalispell with a
percentage of the jobs created to be filled by low and moderate -income persons.
Rural Development Loan Revolving
On May 5, 2003, the City Council passed Resolution No. 4780 establishing an Economic Development Revolving Loan Fund
(ED RLF) for small business retention and expansion. The resolution also created an Economic Development Loan Review
Committee to process all applications for assistance. Additionally, on August 16, 2004 and again on November 6, 2006, the
City Council, by Resolution No. 4929 and 5158, respectively, authorized the City Manager to enter into loan agreements with
the United States Department of Agriculture, Rural Development office, in the amount of $520,000 and $750,000. These
monies will be used to assist in the retention and expansion of small business, which may stimulate economic development
activity by assisting the private sector where a funding gap exists and alternative sources of public and private financing are
not adequate.
SUMMARY COMMUNITY DEVELOPMENT LOANS RECEIVABLE
From orig. % To
CD Loan Revolving 2006 5.00 Distinctive Countertops
2017 3.00 Norm's News
2016 6.00 SMP LLC
2018 3.00 Wheatons
2002 1.00 Hampstead Partners"
2002 4.81 Hampstead Partners"
2002 1.00 Hampstead Partners - Interest Portion"
2002 4.81 Hampstead Partners - Interest Portion"
RD Loan Revolving 2006 6.50 Distinctive Countertops
2012 5.25 Glacier Valley Endodontics, Inc
2020 3.00 PKM, LLC (NW DRYWALL)
Westside TIF 2020 3.00 PKM, LLC (NW DRYWALL)
Total Governmental Funds
"Long Term Loans Receivable - Matures 2032
P. City Court Contracts Receivable
Orig. Amt. Balance Purpose
288,619
72,695
Jobs
33,765
14,652
Jobs
50,000
26,626
Jobs
46,991
24,938
Jobs
480,000
480,000
Low Income Housing
400,000
400,000
Low Income Housing
-
90,855
Low Income Housing
-
550,425
Low Income Housing
175,000
45,013
Small Business
35,000
4,381
Small Business
250,000
237,814
Small Business
500,000
475,627
Redevelopment
$ 2,259,375
$ 2,423,026
Contracts receivable of the City Court, because of the uncertainty regarding when and if they will be collected, are no longer
booked as an asset on the statement of net position/balance sheet of the Governmental-Type/General Fund. These
receivables, at June 30, 2021, amounted to $2,701,263.
83
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
R. Fund Balance Classification by Major Purposes
The table presented below displays the City's fund balances by major purpose as displayed on page 27, the governmental
funds balance sheet.
Nonspendable - not in spendable form
Long-term recievables
Prepaids
Total nonspendable
Restricted
General Government -Health Insurance
Public Safety-admin.
Public Safety -EMS
Public Safety -Building Inspection
Public Safety -Fire capital improvements
Public Safety -Police capital improvements
Public Safety -Police equip.
Public Safety -Police personnel
Public Safety -Fire equip.
Public Safety -Fire personnel
Public Works -Street cleansing and Maint.
Public Works -Street Lights
Public Works -roads and streets
Public Works -transportation infrastructure
Culture and Recreation -Park improvements
Culture and Recreation -Equipment
Culture and Recreation -Programs
Culture and Recreation -trees and maintenance
Community Development -
Community Development -Old School Station
Community Development -South Kalispell TIF
Community Development-Westside TIF
Community Development -Revolving loan funds
Debt Service-SI D
Debt Service -Old School improvements
Debt Service -The Willows improvements
Debt Service-G.O. Bonds
Debt Service -Core area improvements
Total restricted
Assigned
Capital Equipment
Parking
Miscellaneous
Total assigned
Unassigned
Total fund balances
American Other
Total
General
Street
Rescue Governmental
Governmental
Fund
Maint.
Plan Act Funds
Funds
1,300,000
-
-
1,300,000
4,360
18,728
41,903
64,991
1,304,360
18,728
41,903
1,364,991
-
-
158,187
158,187
6,217
6,217
152,579
152,579
2,068,384
2,068,384
1,426,248
1,426,248
160,631
160,631
15,156
15,156
29,519
29,519
7,070
7,070
-
44,340
44,340
3,358,177
21,006
3,379,183
-
745,386
745,386
1,031,138
1,031,138
476,016
476,016
71,633
71,633
37,467
37,467
1,157,912
1,157,912
955,920
955,920
160,143
160,143
24,739
24,739
240,459
240,459
1,749,459
1,749,459
3,114,732
3,114,732
222,826
222,826
16,248
16,248
24,675
24,675
52,504
52,504
963,226
963,226
-
3,358,177
15,133,820
18,491,997
550,000
-
550,000
23,542
23,542
1,485,827
1,485,827
2,059,369
2,059,369
3,228,502
(54,232)
3,174,270
6,592,231
3,376,905
15,121,491
25,090,627
84
CITY OF KALISPELL
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
S. Subsequent Events
Recreational Marijuana
In the election of 2020, a ballot initiative was approved by the voters to allow for recreational marijuana use within the State
of Montana. House Bill 701 provided the framework for regulation in Montana. Local jurisdictions were provided some
latitude to adopt zoning regulations specifying appropriate zones and criteria for those facilities.
At a regular council meeting on October 18, 2021, the Kalispell City Council passed Ordinance No. 1866. Ordinance No.
1866 amends Ordinance No. 1677 and sets forth where, in the City of Kalispell, marijuana dispensaries, cultivation, and
manufacturing will be allowed.
Downtown Redevelopment
On December 4, 2017, the Kalispell City Council adopted The Downtown Plan as an amendment to the City of Kalispell
Growth Policy Plan -It 2035 by Resolution No. 5846. The Downtown Plan addresses a number of key topics that affect the
future growth and development of Downtown Kalispell. The Downtown Plan specifically addresses the need to re -develop
City owned surface parking lots into more beneficial uses to eliminate blight and increase tax base.
In coordination with the Urban Renewal Agency, Business Improvement District, Revolving Loan Fund Committee,
Architectural Review Committee and the Kalispell Parking Commission, staff drafted, and Council approved the 3rd and
Main Request for Proposals (RFP). The RFP was advertised beginning in December 2020 with proposals due July 9, 2021. A
Selection Committee was assembled with a representative from each of the groups listed above. One proposal identified as
"The Charles Hotel" was received and reviewed by the Selection Committee according to the RFP criteria.
The Charles Hotel is proposed as a five story 79-unit boutique hotel with a full -service restaurant, rooftop bar and valet
parking service at 3rd and Main. A parking garage is proposed to address parking needs of the development. The parking
garage is proposed for location at the City's Eagle's parking lot located at the southeast comer of First Street West and First
Avenue West.
85
REQUIRED SUPPLEMENTARY
INFORMATION OTHER THAN
MANAGEMENT DISCUSSION AND
ANALYSIS
CITY OF KALISPELL
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
SCHEDULE OF TOTAL LIABILITY AND RELATED RATIOS
OTHER POSTEMPLOYMENT BENEFITS
June 30. 2021
Total OPEB Liability
Service cost
Interest
Difference between expected
and actual experience
Changes in assumptions
Changes in benefit terms
Contributions by employer
Net change in total OPEB liability
Total OPEB liability -beginning (restated)
Total OPEB liability -ending
Covered -employee payroll
Total OPEB liability as a percentage of covered -
employee payroll
Notes to Schedule:
Chanaes of assumptions and other inputs
Discount trend
Medical trend
2017 2018 2019 2020 2021
$ 332,296 $ 298,579 $ 227,903 $ 253,580 $ 326,193
$ 79,695 $ 137,494 $ 135,435 $ 76,055 $ 72,682
$ 13,222 $ (137,426) $ (736,800) $ (98,937) $ (235,464)
$ 1,013,936 $ (253,167) $ (798,142) $ 244,123 $ 346,504
$ 1,439,149 $ 45,480 $ (1,171,604) $ 474,821 $ 509,915
$ 2,546,180 $ 3,985,329 $ 4,030,809 $ 2,859,205 $ 3,334,026
$ 3,985,329 $ 4,030,809 $ 2,859,205 $ 3,334,026 $ 3,843,941
$ 10,456,215 $ 10,748,989 $ 11,430,605 $ 11,794,098 $ 12,822,159
38.11 % 37.50% 25.01 % 28.27% 29.98%
3.13% 3.45% 3.36% 2.66% 2.18%
4.50% 4.50% 3.50% 3.50% 3.20%
Governmental Accounting Standards Board, Statement 75 requires
this information to be provided for 10 years. Because fiscal year
2018 was the first year of implementation, 10 years is not available.
SCHEDULE OF CONTRIBUTIONS
OTHER POSTEMPLOYMENT BENEFITS
June 30. 2021
2017
2018
2019
2020 2021
Contractually required contribution
$
$
$
$
$
Contributions in relation to the contractually
required contribution
$
$
$
$
$
Contribution deficiency (excess)
$
$
$
$
$
City's covered -employee payroll
$
10,456,215 $
10,748,989 $
11,430,605 $
11,794,098 $ 12,822,159
Contributions as a percentage of covered -
employee payroll
0%
0%
0%
0% 0%
Governmental Accounting Standards Board, Statement 75 requires
this information to be provided for 10 years. Because fiscal year
2018 was the first year of implementation, 10 years is not available.
See independent auditor's report
86
CITY OF KALISPELL
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Public Employees Retirement Plan (PERS)
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability
For the Last Ten Fiscal Years*
As of Measurement Date: 2020
2019
2018
2017
2016
2015
2014
Employer's proportion of the
Net Pension Liability
0.34687%
0.34786%
0.342578%
0.453698%
0.431402%
0.426464%
0.436421 %
Employer's Net Pension
Liability (amount)
$9,067,196
$7,271,356
$7,150,099
$8,836,349
$7,348,266
$5,961,419
$5,437,857
State of Montana's Net
Pension Liability (amount)
2,856,744
2,365,647
2,393,378
117,6681
89,7871
73,2261
66,405
Total
1 $11,923,940
1 $ 9,637,003
1 $ 9,543,477
$ 8,954,017
1 $ 7,438,053
1 $ 6,034,645
$ 5,504,262
Employer's Covered Payroll (1)
$5,766,515
$5,739,639
$5,633,887
$5,628,154
$5,167,438
$4,976,919
$4,978,271
Employer's proportionate share
as a percent of Covered
157.24%
126.69%
126.91 %
157.00%
142.20%
119.78%
111.22%
Plan Fiduciary Net Position as
a percent of the Total Pension
Liability
68.90%
73.85%
73.47%
73.75%
74.71%
78.40%
79.87%
Required Supplementary Information
Schedule of Contributions
For the Last Ten Fiscal Years*
As of reporting date
2021
2020
2019
2018
2017
2016
2015
Contractually equire
Contributions
$595,854
$505,222
$493,648
$477,191
$471,085
$444,391
$430,109
Plan Choice Rate equire
Contributions
$0
$0
$0
$0
$0
$0
$0
Contributions in Relation to the
Contractual) Required
$595,854
$505,2221
$493,648
$477,191
$471,085
$444,391
$430,109
Contribution Deficiency
(Excess)
$0
$0
$0
$0
$0
$0
$0
Employer's Covered Payroll
$6,814,068
$5,766,515
$5,739,639
$5,633,887
$5,628,154
$5,167,438
$4,976,919
Contributions as a percentage
of Covered Payroll
8.74%1
8.76%
8.60%1
8.47%
8.37%
8.60%
8.64%
'The amounts presented for each fiscal year were determined as of June 30, the measurement date
(1) All employer adjustments made in the current fiscal year 2020 but are adjusting a payroll with a pay date in a prior fiscal year, are
considered prior year adjustments and are removed from the covered payroll report before the actuary calculates the employers
proportionate share.
Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
See independent auditor's report
87
CITY OF KALISPELL
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Changes of benefit terms
The following changes to the plan provisions were made as identified:
2017:
Working Retiree Limitations
Effective July 1, 2017, if a PERS retiree returns as an independent contractor to what would otherwise be PERS-
covered employment, general contractor overhead costs are excluded from PERS working retiree limitations.
Refunds
1) Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their
accumulated contributions in a lump sum.
2) Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund
must do so within 90 days of termination of service.
3) Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump -sum payment.
Interest credited to member accounts — Effective July 1, 2017, the interest rate credited to member accounts increased
from 0.25% to 0.77%.
Lump -sum payouts
Effective July 1, 2017, lump -sum payouts in all systems are limited to the member's accumulated contributions rate than
the present value of the member's benefit.
Disabled PERS Defined Contribution (DC) Members
PERS members hired after July 1, 2011 have a normal retirement age of 65. PERS DC members hired after July 1,
2011 who became disabled were previously only eligible for a disability benefit until age 65. Effective July 1, 2017,
these individuals will be eligible for a disability benefit until they reach 70, thus ensuring the same 5-year time
period available to PERS DC disabled members hired prior to July 1, 2011 who have a normal retirement age
of 60 and are eligible for a disability benefit until age 65.
See independent auditor's report
88
CITY OF KALISPELL
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Municipal Police Officers' Retirement Plan (MPORS)
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability
For the Last Ten Fiscal Years*
As of Measurement Date:
2020
2019
2018
2017
2016
2015
2014
City of Kalispellproportion of the Net
Pension Liability (percentage)
1.4976%
1.5182%
1.5868%
1.6383%
1.5682%
1.5255%
1.5019%
City of Kalispell Net Pension Liability
(amount)
$3,663,004
$3,021,804
$2,717,519
$2,914,803
$2,822,947
$2,523,431
$2,359,962
State of Montana's Net Pension
Liability associated with the
7,387,909
6,153,443
5,555,145
5,940,859
5,603,673
51112,7111
41767,405
Total
$ 11,050,913
1 $ 9,175,247
1 $ 8,272,664
1 $ 8,855,662
1 $ 8,426,620
1 $ 7,636,142
1 $ 7,127.367
City of Kalispell Covered Payroll
$2,565,473
$2,502,092
$2,504,658
$2,449,995
$2,213,762
$2,111,268
$2,015,102
City of Kalispell proportionate share
as a percent of Covered Payroll
142.78%
120.77%
108.50%
118.97%
127.52%
119.52%
117.11 %
Plan Fiduciary Net Position as a
percent of the Total Pension Liability
64.84%
68.84%
70.95%
68.34%
65.62%
66.90%
67.01 %
Required Supplementary Information
Schedule of Contributions
For the Last Ten Fiscal Years*
As of reporting date
2021
2020
2019
2018
2017
2016
2015
Contractually Required Contributions
$396,106
$369,685
$361,987
$374,615
$353,045
$324,287
$306,050
Contributions in Relation to the
Contractually Required Contributions
$396,106
$369,685
$361,987
$374,615
$353,045
$324,287
$306,050
Contribution Deficiency (Excess)
$0
$0
$0
$0
$0
$0
$0
Employer's Covered Payroll
$2,748,824
$2,565,473
$2,502,092
$2,504,658
$2,449,995
$2,213,762
$2,111,268
Contributions as a percen age o
Covered Payroll
14.41 %
14.41 %
14.47%
14.96%
14.41 %
14.65%
14.50%
'The amounts presented for each fiscal year were determined as of June 30, the measurement date
(1) All employer adjustments made in the current fiscal year 2020 but are adjusting a payroll with a pay date in a prior fiscal year, are
considered prior year adjustments and are removed from the covered payroll report before the actuary calculates the employers
proportionate share.
Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
Chances of benefit terms
The following changes to the plan provision were made as identified:
2017:
Working Retiree Limitations
1) Applies to retirement system members who return on or after July 1, 2017 to covered employment in the system
from which they retired.
2) Members who return for less than 480 hours in a calendar year:
-May not become an active member in the system; and
-Are subject to a $1 reduction in their retirement benefit for each $3 earned in excess of $5,000 in the calendar year.
See independent auditor's report
89
CITY OF KALISPELL
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
3) Members who return for 480 or more hours in a calendar year:
-Must become an active member of the system;
-Will stop receiving a retirement benefit from the system; and
-Will be eligible for a second retirement benefit if they earn 5 or more years of service credit through their second
employment.
4) Employee, employer and state contributions, if any, apply as follows:
-Employer contributions and state contributions (if any) must be paid on all working retirees;
-Employee contributions must be paid on working retirees who return to covered employment for 480 or more hours
in a calendar year.
Second Retirement Benefit
1) Applies to retirement system members who return on or after July 1, 2017 to active service covered by the system
from which they retired.
2) If a member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before
terminating again, the member:
-Is not awarded service credit for the period of reemployment;
-Is refunded the accumulated contributions associated with the period of reemployment;
-Starting the first month following termination of service, receives the same retirement benefit previously paid to the
member; and
-Does not accrue post -retirement benefit adjustments during the term of reemployment but receives a Guaranteed
Annual Benefit Adjustment (GABA) in January immediately following second retirement.
3) If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before
terminating again, the member:
-Is awarded service credit for the period of reemployment;
-Starting the first month following termination of service, receives the same retirement benefit previously paid to the
member, and a second retirement benefit for the period of reemployment calculated based on the laws in effect as of
the member's rehire date; and
-Does not accrue post -retirement benefit adjustments during the term of reemployment but receives a GABA on the
initial retirement benefit in January immediately following second retirement, and on the second retirement benefit
starting in January after receiving that benefit for at least 12 months.
4) A member who returns to covered service is not eligible for a disability benefit.
Refunds
1) Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their
accumulated contributions in a lump sum.
2) Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund
must do so within 90 days of termination of service.
3) Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump -sum payment.
Interest credited to member accounts
• Effective July 1, 2017, the interest rate credited to member accounts increased from 0.25% to 0.77%.
Lump -sum payouts
• Effective July 1, 2017, lump -sum payouts in all systems are limited to the member's accumulated contributions rate
than the present value of the member's benefit.
See independent auditor's report
90
CITY OF KALISPELL
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Firefighters Unified Retirement System (FURS)
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability
For the Last Ten Fiscal Years*
As of Measurement Date:
2020
2019
2018
2017
2016
2015
2014
Employer's proportion of the Net
Pension Liability (as a
percentage)
1.1645%
1.1622%
1.2872%
1.4637%
1.3965%
1.4196%
1.4283%
Employer's Net Pension Liability
(amount)
$1,822,118
$1,333,236
$1,482,534
$1,654,528
$1,594,992
$1,451,892
$1,394,256
State of Montana's Net Pension
Liability (amount)
1 4,107,6731
3,224,4361
3,389,894
1 3,757,2501
3,613,7491
3,233,7491
3,145,374
Total
1 $5,929,791
$ 4,557,671
1 $4,872,428
1 $ 5,411,778
1 $ 5,208,741
1 $ 4,685,641
1 $ 4,539,630
Employer's Covered Payroll
$2,032,772
$2,015,410
$2,027,325
$2,188,185
$1,966,524
$1,907,689
$1,855,316
Employer's proportionate share
as a percent of Covered Payroll
89.64%
66.15%
73.13%
75.61 %
81.11 %
76.11 %
75.15%
Plan Fiduciary Net Position as a
percent of the Total Pension
75.34%
80.08%
79.03%
77.77%
75.48%
76.90%
76.71 %
Required Supplementary Information
Schedule of Contributions
For the Last Ten Fiscal Years*
As of most recent FYE -
re ortin date
2021
2020
2019
2018
2017
2016
2015
Contractually Required
Contributions
$338,706
$299,206
$277,747
$298,390
$314,224
$281,160
$279,275
Contributions in Relation to the
Contractually Required
$338,706
$299,206
$277,747
$298,390
$314,224
$281,160
$279,275
Contribution Deficiency (Excess)
$0
$0
$0
$0
$0
$0
$0
Employer's Covered Payroll
$2,357,672
$2,032,772
$2,015,410
$2,027,325
$2,188,185
$1,966,524
$1,907,689
on ri u ions as a percentage o
Covered Payroll
14.37%
14.72%
13.78%
14.72%
14.36%
14.30%
14.64%
*The amounts presented for each fiscal year were determined as of June 30, the measurement date
(1) All employer adjustments made in the current fiscal year 2020 but are adjusting a payroll with a pay date in a prior fiscal year, are
considered prior year adjustments and are removed from the covered payroll report before the actuary calculates the employers
proportionate share.
Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
See independent auditor's report
91
CITY OF KALISPELL
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Changes of benefit terms
The following changes to the plan provision were made as identified:
2017:
Working Retiree Limitations
1) Applies to retirement system members who return on or after July 1, 2017 to covered employment in the system
from which they retired.
2) Members who return for less than 480 hours in a calendar year:
-May not become an active member in the system; and
-Are subject to a $1 reduction in their retirement benefit for each $3 earned in excess of $5,000 in the calendar year.
3) Members who return for 480 or more hours in a calendar year:
-Must become an active member of the system;
-Will stop receiving a retirement benefit from the system; and
-Will be eligible for a second retirement benefit if they earn 5 or more years of service credit through their second
employment.
4) Employee, employer and state contributions, if any, apply as follows:
-Employer contributions and state contributions (if any) must be paid on all working retirees;
-Employee contributions must be paid on working retirees who return to covered employment for 480 or more hours
in a calendar year.
Second Retirement Benefit
1) Applies to retirement system members who return on or after July 1, 2017 to active service covered by the system
from which they retired.
2) If a member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before
terminating again, the member:
-Is not awarded service credit for the period of reemployment;
-Is refunded the accumulated contributions associated with the period of reemployment;
-Starting the first month following termination of service, receives the same retirement benefit previously paid to the
member; and
-Does not accrue post -retirement benefit adjustments during the term of reemployment but receives a Guaranteed
Annual Benefit Adjustment (GABA) in January immediately following second retirement.
3) If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before
terminating again, the member:
-Is awarded service credit for the period of reemployment;
-Starting the first month following termination of service, receives the same retirement benefit previously paid to the
member, and a second retirement benefit for the period of reemployment calculated based on the laws in effect as of
the member's rehire date; and
-Does not accrue post -retirement benefit adjustments during the term of reemployment but receives a GABA on the
initial retirement benefit in January immediately following second retirement, and on the second retirement benefit
starting in January after receiving that benefit for at least 12 months.
4) A member who returns to covered service is not eligible for a disability benefit.
See independent auditor's report
92
CITY OF KALISPELL
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Refunds
1) Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their
accumulated contributions in a lump sum.
2) Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund
must do so within 90 days of termination of service.
3) Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump -sum payment.
Interest credited to member accounts
• Effective July 1, 2017, the interest rate credited to member accounts increased from 0.25% to 0.77%.
Lump -sum payouts
• Effective July 1, 2017, lump -sum payouts in all systems are limited to the member's accumulated contributions rate
than the present value of the member's benefit.
Changes in Actuarial Assumptions and Methods — PERS, MPORS, FURS
Method and assumptions used in calculations of actuarially determined contributions
The following Actuarial Assumptions were adopted from the June 30, 2019 actuarial valuation:
PERS MPORS FURS
Investment Return`
7.65% 7.65%
7.65
Admin Expense as % of Payroll
0.30% 0.15%
0.13%
General Wage Growth`
3.50% 3.50%
3.50%
`includes Inflation at
2.75% 2.75%
2.75%
Merit Increases
0% to 8.47% 0% to 6.60% 0% to 6.30%
Asset valuation method
Four-year smoothed market
Actuarial cost method
Entry age normal
Amortization method
Level percentage of payroll, open
Remaining amortization period - PERS
30 years N/A N/A
Mortality
• Healthy members
• Disabled Members
RP-2000 Combined Employee and
Annuitant Mortality Tables projected to
2020 with scale BB, set back one year
for males
PR-2000 Combined Mortality Table, with
no projections
Administrative expenses are recognized by an additional amount added to the normal cost contribution rate for the System. This
amount varies from year to year based on the prior year's actual administrative expenses.
See independent auditor's report
93
RESOURCES (INFLOWS):
Taxes and assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Investment earnings
Amounts available for appropriation
City of Kalispell, Montana
Budgetary Comparison Schedule
For the Fiscal Year Ended June 30, 2021
General Fund
BUDGETED AMOUNTS
ORIGINAL FINAL
ACTUAL
AMOUNTS VARIANCE
(BUDGETARY WITH FINAL
BASIS) See Note A BUDGET
$ 6,690,156 $
6,690,156 $
6,888,032 $
197,876
110,500
110,500
230,574
120,074
4,644,492
4,644,492
4,857,419
212,927
1,024,947
1,024,947
1,010,595
(14,352)
535,000
535,000
495,459
(39,541)
108,500
108,500
127,516
19,016
36,000
36,000
42,865
6,865
$ 13,149,595 $
13,149,595 $
13,652,460 $
502,865
CHARGES TO APPROPRIATIONS (OUTFLOWS);
General government $
4,615,547 $
4,615,547
$ 3,206,238 $
1,409,309
Public safety
10,367,271
10,367,271
9,884,715
482,556
Public works
53,612
53,612
49,362
4,250
Community development
416,611
416,611
412,295
4,316
Debt service - principal
44,387
44,387
44,387
-
Debt service - interest
9,775
9,775
6,582
3,193
Capital outlay
77,000
77,000
74,615
2,385
Total charges to appropriations $
15,584,203 $
15,584,203
$ 13,678,194 $
1,906,009
OTHER FINANCING SOURCES (USES)
Proceeds from the sale capital asset
-
-
-
-
Transfers in
970,000
970,000
970,000
-
Transfers out
-
-
Total other financing sources (uses) $
970,000 $
970,000
$ 970,000 $
-
Net change in fund balance
$ 944,266
Fund balance - beginning of the year
$ 5,793,803
Restatements
(145,838)
Fund balance - beginning of the year - restated
$ 5,647,965
Fund balance - end of the year
$ 6,592,231
See independent auditor's report
94
RESOURCES (INFLOWS):
Taxes and assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Investment earnings
Amounts available for appropriation
CHARGES TO APPROPRIATIONS (OUTFLOWS);
General government
Public safety
Public works
Community development
Debt service - principal
Debt service - interest
Capital outlay
Total charges to appropriations
OTHER FINANCING SOURCES (USES)
Proceeds from the sale capital asset
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - beginning of the year
Restatements
Fund balance - beginning of the year - restated
Fund balance - end of the year
City of Kalispell, Montana
Budgetary Comparison Schedule
For the Fiscal Year Ended June 30, 2021
Street Maintenance
ACTUAL
AMOUNTS
VARIANCE
BUDGETED AMOUNTS
(BUDGETARY
WITH FINAL
ORIGINAL
FINAL
BASIS) See Note A
BUDGET
2,760,500 $
2,760,500
$ 2,787,413 $
26,913
90,053
90,053
59,694
(30,359)
5,000
5,000
6,879
1,879
19,000
19,000
30,820
11,820
19,800
19,800
18,602
(1,198)
2,894,353 $
2,894,353
$ 2,903,408 $
9,055
2,865,142
2,865,142
2,480,405 384,737
25,649
25,649
25,649 -
13,405
13,405
13,405 -
331,000
331,000
97,611 233,389
3,235,196 $
3,235,196 $
2,617,070 $ 618,126
See independent auditor's report
95
$ 286,338
$ 3,090,567
$ 3,090,567
$ 3,376,905
RESOURCES (INFLOWS):
Taxes and assessments $
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Investment earnings
Amounts available for appropriation $
CHARGES TO APPROPRIATIONS (OUTFLOWS);
General government $
Public safety
Public works
Community development
Debt service - principal
Debt service - interest
Capital outlay
Total charges to appropriations $
OTHER FINANCING SOURCES (USES)
Proceeds from the sale capital asset
Transfers in
Transfers out
Total other financing sources (uses) $
Net change in fund balance
Fund balance - beginning of the year
Restatements
Fund balance - beginning of the year - restated
Fund balance - end of the year
City of Kalispell, Montana
Budgetary Comparison Schedule
For the Fiscal Year Ended June 30, 2021
American Rescue Plan
ACTUAL
AMOUNTS VARIANCE
BUDGETED AMOUNTS (BUDGETARY WITH FINAL
RIGINAL FINAL BASIS) See Note A BUDGET
See independent auditor's report
96
CITY OF KALISPELL
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
A. Budgetary Comparison Schedules
BUDGETED FUNDS
The City adopts an annual budget for all of its funds in accordance with Title 7, Chapter 6, Part 40 of the Montana Code Annotated.
Statute requires the adoption of a preliminary budget, public hearings on the preliminary budget and the final adoption of the budget
by the first Thursday after the first Tuesday in September or within 30 calendar days of the receipt of the certified taxable valuations
from the Department of Revenue. The City must also submit a copy of the final budget to the Department of Administration by the
later of October 1 or 60 days after the receipt oftaxable values from the Department of Revenue.
State statute limits the making of expenditures or incurring of obligations to the amount of the final budget as adopted or as amended.
Budget transfers and amendments are authorized by law, and in some instances, may require further public hearings. Any budget
amendments providing for additional appropriations must identify the fund reserves, unanticipated revenue, or previously
unbudgeted revenue that will fund the appropriations.
Appropriations are created by fund, function, and activity and may further be detailed by department. Expenditure limitations
imposed by law extend to the department level which is identified as the legal level of budgetary control.
BUDGETARY BASIS
The City's budgets are prepared on the budgetary basis (modified accrual) of accounting, which results in accounting for certain
funds, proprietary and internal service, on a basis other than generally accepted accounting principles (full accrual). The City's
accounting records are maintained on the basis of cash receipts and disbursements during the year. At year-end, certain
adjustments are made to the City's accounting records to reflect the basis of accounting described above. Reported budget
amounts represent the originally adopted budget and the final budget, which includes amendments. Total fund expenditures may
not legally exceed the budgeted expenditures. The budget lapses at the end of each year. Results of operations, on the budget
basis of accounting, are presented for the general fund and major special revenue funds with legally adopted annual budgets, to
provide a meaningful comparison of actual results with the budget.
See independent auditor's report
97
SUPPLEMENTAL INFORMATION
COMBINING AND INDIVIDUAL
FUND STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Downtown TIF — Accounts for monies received and expended for approved projects
in this TIF district.
Airport TIF — Accounts for monies received and expended for approved projects in
this TIF district.
Westside TIF — Accounts for monies received and expended for approved projects in this
TIF district.
Parks in Lieu — Accounts for monies received by developer's for the purpose of making
improvements in specific City parks.
Parks — Accounts for the monies received and expended in the operations of the City's
Parks Department.
Ambulance — Accounts for the monies received and expended in the operations of the
City's Ambulance Department.
Old School TIF's — Accounts for monies received and expended for approved projects in
these TIF districts.
Rail Park TEDD — Accounts for the monies received and expended for approved projects
in and related to the TEDD.
Health Levy — Accounts for revenue from the permissive mill levy which provides
funding for the fiscal year 2003 health insurance premium rate increase.
Building Department — Accounts for all activity of enforcing the building regulations
adopted by the City.
Impact Fees — Accounts for public safety impact fees received and allowed and approved
expenditures of each.
Light Maintenance — Accounts for special assessment revenues levied, received, and
expended for street lighting.
Gas Tax and BARSAA — Accounts for revenues from State gasoline taxes apportioned
from the State of Montana Department of Highways.
Forestry — Accounts for special assessment revenues levied, received, and expended to
care for almost 7000 trees.
MACI Grant — Accounts for grant monies received and City matching monies used to
purchase equipment (street sweeper) through the Montana Air & Congestion Initiative.
Community Development Loan Revolving Fund — this fund accounts for the lending and
repayment of monies loaned to businesses and individuals for approved community
development projects.
CD Misc. - originally established to account for Urban Development Assistance
Grants (UDAG). These federal dollars were loaned to businesses and individuals for
projects located in economic development zones and approved by the City
Community Development department. The main revenue source for this fund is
borrower's interest payments. In fiscal year 2015, this fund, with dollars borrowed
from the General fund, purchased six undeveloped properties from Flathead County
at the Old School Station Industrial/Technical Park, a City special improvement
district. Taxes on these properties were five to seven years delinquent, thereby
putting the City's SID debt service fund at risk of not making the annual payment.
The City intends to resell these properties for development.
Rural Development Loan Revolving (2) — Accounts for monies received, grant and
other, and expended in the process of providing gap financing for business retention,
expansion, or start-up.
Law Enforcement Grants (Stonegarden, Drug Enforcement) — Accounts for multiple
grants received by the Police Department and all related revenues and expenditures.
EPA Brownfields Grant — Accounts for Brownfields revitalization projects monies to be
used for phase I and phase II environmental assessments.
EPA Brownfields Loan Revolving Grant - Accounts for grant monies received for and
expenditures related to environmental assessments.
Fire Grants - Accounts for multiple grants received by the Fire Department and all related
revenues and expenditures.
Hazmat Grant — Accounts for the grant monies received for and expenditures related to
respond and remedy hazmat calls of the City Fire Department.
DEBT SERVICE FUNDS
G.O. Bonds — Accounts for the debt service payments associated with the Woodland
Water Park and the Fire Station 952 general obligation bonds.
City Hall Debt Service — Accounts for the debt service payments associated with the new
City Hall at 201 1st Avenue East.
Airport TIF Debt Service - Accounts for the debt service payments associated with the
Airport Tax Increment District.
Westside TIF Debt Service - Accounts for the debt service payments associated with the
Westside Tax Increment District.
Debt Service Revolving — Accounts for monies associated with the closing out of debt
service funds and covering other debt service fund payment shortages.
S & C's - Accounts for the debt service payments associated with Sidewalk & Curb
bonds.
SID 344 - Accounts for the debt service payments associated with the Special
Improvement District 9344 bonds.
SID 345 - Accounts for the debt service payments associated with the Special
Improvement District 9345 bonds.
CAPITAL PROJECT FUNDS
S & C Construction —Accounts for the monies received for and expenditures related to
sidewalk and curb construction.
Tiger Grant — The City of Kalispell was awarded a $10 million TIGER
(Transportation Investment Generating Economic Recovery) Grant (capital
project fund) for the Kalispell Core and Rail Redevelopment Project. This fund was
established to account for the project which consist of the construction of a rail park
at a reclaimed gravel pit, then relocating rail served businesses to the rail park and
converting the old rail line through Kalispell into a bike and pedestrian trail, opening
up a number of north and south connection streets that are currently blocked by the
rail line.
ASSETS
Cash and investments
Taxes and assessments receivable, net
Accounts receivable - net
Notes and loans receivable
Contracts receivable
Due from other
Due from other funds
Due from other governments
Prepaids
Properties held for sale
Other debits
Restricted assets:
Restricted cash and investments
Total assets
LIABILITIES
Liabilities:
Accounts payable
Retainage
Accrued payroll
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Unavailable revenue - deferred accounts receivable
Unavailable revenue - deferred taxes and assessments
Total deferred inflows of resources
FUND BALANCES
Nonspendable - not in spendable form:
Prepaid
Restricted
General Government
Public Safety
Public Works
Culture and Recreation
Community Development
Debt Service
Unrestricted fund balance:
Unassigned
Total fund balance
Total liabilities and fund balance
See independent auditor's report.
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2021
Downtown TIT
Airport TIF W estside TIT Parks - in - Lieu
Parks
24,496
343,921 1258,304 46,633
1274,463
1,050
- 1,369 -
45,637
475,627
5,000
1,804
49,372
20,790
27,350
343,921 1,735,300 46,633
1,395,262
5,810 66,490 29,642
97,652 - -
- 2,289 78,814
103,462 68,779 108,456
1,050 1,369 45,637
1,050 1,369 45,637
20,790
- - 46,633 1,220,379
26,300 240,459 1,665,152 - -
26,300 240,459 1,665,152 46,633 1,241,169
27,350 343,921 1,735,300 46,633 1,395,262
ASSETS
Cash and investments
Taxes and assessments receivable, net
Accounts receivable - net
Notes and loans receivable
Contracts receivable
Due from other
Due from other funds
Due from other governments
Prepaids
Properties held for sale
Other debits
Restricted assets:
Restricted cash and investments
Total assets
LIABILITIES
Liabilities:
Accounts payable
Retainage
Accrued payroll
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Unavailable revenue - deferred accounts receivable
Unavailable revenue - deferred taxes and assessments
Total deferred inflows of resources
FUND BALANCES
Nonspendable - not in spendable form:
Prepaid
Restricted
General Government
Public Safety
Public Works
Culture and Recreation
Community Development
Debt Service
Unrestricted fund balance:
Unassigned
Total fund balance
Total liabilities and fund balance
See independent auditor's report.
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2021
Ambulance
Old School Tech
TIF
Old School
Industrial TIF Rail Park TEDD
Health Levy
100,434
16,334
7,545
104,840
-
43,644
47,034
44,091
330,553
-
-
-
76,996
860
101,377
53,347
11,310
-
-
-
519,293
60,838
54,579 101,377
202,278
2,161
26,499 1,163
15,907
28,660 17,070
326,744 - - -
- 43,644 47,034 44,091
326,744 43,644 47,034 44,091
11,310 -
- 158,187
152,579 -
17,194 7,545 84,307
163,889 17,194 7,545 84,307 158,187
519,293 60,838 54,579 101,377 202,278
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2021
Building
Public Safety
Light
Gas Tax -
Department
Impact Fees
Maintenance
BARSAA
Urban Forestry
ASSETS
Cash and investments
2,091,673
10,970
751,687
1,598,465
789,475
Taxes and assessments receivable, net
-
-
19,375
-
23,930
Accounts receivable - net
-
-
Notes and loans receivable
Contracts receivable
Due from other
Due from other funds
-
-
Due from other governments
-
23,644
37,620
Prepaids
9,803
-
-
Properties held for sale
-
Other debits
-
-
Restricted assets:
Restricted cash and investments
-
1,586,879
-
-
142,147
Total assets
2,101,476
1,597,849
794,706
1,598,465
993,172
LIABILITIES
Liabilities:
Accounts payable
2,756
4,753
26,631
91,311
3,328
Retainage
-
-
-
-
-
Accrued payroll
20,533
3,314
9,994
Due to other funds
-
-
-
Advances from other funds
-
-
-
-
-
Totalliabilities
23289
4,753
29,945
91,311
13,322
Deferred inflows of resources
Unavailable revenue - deferred accounts receivable
-
-
-
-
-
Unavailable revenue - deferred taxes and assessments
19,375
23,930
Total deferred inflows of resources
-
19,375
23,930
FUND BALANCES
Nonspendable - not in spendable form:
Prepaid
9,803
-
-
Restricted
General Government
-
-
Public Safety
2,068,384
1,593,096
-
-
Public Works
-
-
745,386
1,507,154
-
Culture and Recreation
-
-
955,920
Community Development
-
Debt Service
Unrestricted fund balance:
Unassigned
-
-
-
-
-
Total fund balance
2,078,187
1,593,096
745,386
1,507,154
955,920
Total liabilities and fund balance
2,101,476
1,597,849
794,706
1,598,465
993,172
See independent auditor's report.
100
ASSETS
Cash and investments
Taxes and assessments receivable, net
Accounts receivable - net
Notes and loans receivable
Contracts receivable
Due from other
Due from other funds
Due from other governments
Prepaids
Properties held for sale
Other debits
Restricted assets:
Restricted cash and investments
Total assets
LIABILITIES
Liabilities:
Accounts payable
Retainage
Accrued payroll
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Unavailable revenue - deferred accounts receivable
Unavailable revenue - deferred taxes and assessments
Total deferred inflows of resources
FUND BALANCES
Nonspendable - not in spendable form:
Prepaid
Restricted
General Government
Public Safety
Public Works
Culture and Recreation
Community Development
Debt Service
Unrestricted fund balance:
Unassigned
Total fund balance
Total liabilities and fund balance
See independent auditor's report.
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2021
Community
Development RD Revolving Loan
MACI Loan Revolving CD Misc. (2) Stonegarden
21,006 638,387 687,972 528,946
1,660,191 - 287208
- 296,312 -
2,588
349,059
21,006 2,298,578 1,333,343 816,154 2,588
1,454
- 1,134
1,300,000
1,300,000 2,588
21,006
2298,578 33,343 816,154
21,006 2298,578 33,343 816,154 -
21,006 2298,578 1,333,343 816,154 2,588
101
ASSETS
Cash and investments
Taxes and assessments receivable, net
Accounts receivable - net
Notes and loans receivable
Contracts receivable
Due from other
Due from other funds
Due from other governments
Prepaids
Properties held for sale
Other debits
Restricted assets:
Restricted cash and investments
Total assets
LIABILITIES
Liabilities:
Accounts payable
Retainage
Accrued payroll
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Unavailable revenue - deferred accounts receivable
Unavailable revenue - deferred taxes and assessments
Total deferred inflows of resources
FUND BALANCES
Nonspendable - not in spendable form:
Prepaid
Restricted
General Government
Public Safety
Public Works
Culture and Recreation
Community Development
Debt Service
Unrestricted fund balance:
Unassigned
Total fund balance
Total liabilities and fund balance
See independent auditor's report.
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2021
Drug Enforcement Law Enforcement EPA Browufields Browufields
Grant Grants Grant Loan Revolving Fire Grants
14,564 4,040 100,500 7,070
17,356 12,544 1,483
31,920 16,584 1,483 100,500 7,070
2,401 1,428 473
- - 1,010
2,401 1,428 1,483
29,519 15,156 7,070
100,500
29,519 15,156 - 100,500 7,070
31,920 16,584 1,483 100,500 7,070
102
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2021
HAZMAT Total Special City Hall Debt Airport TIF
Grant Revenue Funds G.O. Bonds Service Debt Service
ASSETS
Cash and investments
39,881
10,461,606
42,200
Taxes and assessments receivable, net
-
226,130
9,827
Accounts receivable - net
330,553
-
Notes and loans receivable
2,423,026
Contracts receivable
296,312
Due from other
5,000
Due from other funds
-
-
Due from other governments
4,459
383,450
10,304
Prepaids
-
41,903
-
Properties held for sale
349,059
Other debits
-
Restricted assets:
-
Restricted cash and investments
-
1,729,026
-
Total assets
44,340
16,246,065
62,331
LIABILITIES
Liabilities:
Accounts payable
-
232,882
-
Retainage
97,652
Accrued payroll
148,362
Due to other funds
18,051
Advances from other funds
1,300,000
Total liabilities
1,796,947
Deferred inflows of resources
Unavailable revenue - deferred accounts receivable
326,744
-
Unavailable revenue - deferred taxes and assessments
226,130
9,827
Total deferred inflows of resources
552,874
9,827
FUND BALANCES
Nonspendable - not in spendable form:
Prepaid
41,903
-
Restricted
General Government
158,187
Public Safety
44,340
3,910,144
Public Works
-
2273,546
Culture and Recreation
2222,932
Community Development
5289,532
-
Debt Service
-
52,504
Unrestricted fund balance:
Unassigned
-
-
Total fund balance
44,340
13,896,244
52,504
Total liabilities and fund balance
44,340
16,246,065
62,331
See independent auditor's report
103
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2021
W estside TIT
Total Debt
Debt Service
SID Revolving
S & C's
SID 344
SID 345
Service Funds
ASSETS
Cash and investments
474,826
64,090
-
11,545
13,257
605,918
Taxes and assessments receivable, net
13,194
-
39,697
1,466,932
122,626
1,652276
Accounts receivable - net
-
Notes and loans receivable
Contracts receivable
Due from other
Due from other funds
-
636
-
-
-
636
Due from other governments
8,389
-
440
4,703
246
24,082
Prepaids
-
Properties held for sale
Other debits
-
Restricted assets:
Restricted cash and investments
480,011
158,100
-
-
11,172
649,283
Total assets
976,420
222,826
40,137
1,483,180
147,301
2,932,195
LIABILITIES
Liabilities:
Accounts payable
-
-
-
-
-
-
Retainage
Accrued payroll
-
-
Due to other funds
636
636
Advances from other funds
-
-
Total liabilities
636
636
Deferred inflows of resources
Unavailable revenue - deferred accounts receivable
-
-
-
-
-
Unavailable revenue - deferred taxes and assessments
13,194
39,697
1,466,932
122,626
1,652276
Total deferred inflows ofresources
13,194
39,697
1,466,932
122,626
1,652276
FUND BALANCES
Nonspendable - not in spendable form:
Prepaid
-
-
-
-
-
Restricted
General Government
Public Safety
Public Works
Culture and Recreation
Community Development
-
-
-
-
Debt Service
963226
222,826
-
16248
24,675
1279,479
Unrestricted fund balance:
Unassigned
-
-
(196)
-
-
(196)
Total fund balance
963226
222,826
(196)
16,248
24,675
1279283
Total liabilities and fund balance
976,420
222,826
40,137
1,483,180
147,301
2,932,195
See independent auditor's report.
104
ASSETS
Cash and investments
Taxes and assessments receivable, net
Accounts receivable - net
Notes and loans receivable
Contracts receivable
Due from other
Due from other funds
Due from other governments
Prepaids
Properties held for sale
Other debits
Restricted assets:
Restricted cash and investments
Total assets
LIABILITIES
Liabilities:
Accounts payable
Retainage
Accrued payroll
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources
Unavailable revenue - deferred accounts receivable
Unavailable revenue - deferred taxes and assessments
Total deferred inflows of resources
FUND BALANCES
Nonspendable - not in spendable form:
Prepaid
Restricted
General Government
Public Safety
Public Works
Culture and Recreation
Community Development
Debt Service
Unrestricted fund balance:
Unassigned
Total fund balance
Total liabilities and fund balance
See independent auditor's report.
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2021
Total Nonmajor
S & C Total Capital Governmental
Construction Tiger Grant Proiect Funds Funds
$ 11,067,524
1,878,406
330,553
2,423,026
296,312
5,000
636
1,045,006 1,045,006 1,452,538
- - 41,903
349,059
- - 21378,309
1,045,006 1,045,006 $ 20223,266
672,490
672,490
905,372
53,858
53,858
151,510
-
-
148,362
372,694
372,694
391,381
-
-
1,300,000
1,099,042
1,099,042 $
2,896,625
326,744
1,878,406
2,205,150
41,903
158,187
31910,144
2,273,546
2,222,932
5,289,532
1,279,479
(54,036) (54,036) (54,232)
(54,036) (54,036) $ 15,121,491
1,045,006 1,045,006 $ 20223,266
105
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30. 2021
REVENUES
Downtown TIF
Airport TIE
Westside TIF
Parks -in -Lieu
Parks
Ambulance
Taxes and assessments
26,259
3,359
1,224,384
Intergovernmental
-
1,246,000
-
-
673,565
Charges for services
-
46,372
646,534
525,459
Miscellaneous
-
-
10,000
-
98,276
-
Investment earnings
41
8,694
222,434
215
4,800
102
Total revenues
26,300
8,694
1,481,793
46,587
1,973,994
1,199,126
EXPENDITURES
Public safety
-
-
-
-
-
1,115,946
Public works
-
-
-
Parks and recreation
-
-
19,426
1,571,334
Community Development
1,970,354
65,773
-
-
Debt service - principal
-
-
-
-
58,859
-
Debt service - interest
-
-
-
-
2,854
-
Capital outlay
871,571
189,480
Total expenditures
-
1,970,354
937,344
19,426
1,633,047
1,305,426
Excess (deficiency) of revenues over expenditures
26,300
(1,961,660)
544,449
27,161
340,947
(106,300)
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
189,438
Transfers in
-
Transfers (out)
-
Total other financing sources and uses
189,438
Net change in fund balance
26,300
(1,961,660)
544,449
27,161
340,947
83,138
Fund balances - beginning
-
2,202,119
1,120,703
19,472
900,222
123,364
Restatements
-
-
-
-
-
(42,613)
Fund balances - beginning restated
2,202,119
1,120,703
19,472
900,222
80,751
Fund balances - ending
26,300
240,459
1,665,152
46,633
1,241,169
163,889
See independent auditor's report.
106
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30. 2021
Old School Tech
Old School
Building
Public Safety
REVENUES
TIF
Industrial TIF
Rail Park TEDD
Health Levy
Department
Impact Fees
Taxes and assessments
58,411
8,672
202,882
982,057
Intergovernmental
3,057
-
-
24,485
-
-
Charges for services
-
-
1,138,326
301,616
Miscellaneous
-
-
-
-
3,173
-
Investment earnings
211
35
171
13,431
9,150
Total revenues
61,679
8,707
203,053
1,006,542
1,154,930
310,766
EXPENDITURES
Public safety
-
-
-
-
903,529
10,000
Public works
-
-
Parks and recreation
-
-
Community Development
18,204
119,308
Debt service - principal
-
-
-
-
-
-
Debt service - interest
-
-
Capital outlay
169,630
22,440
Total expenditures
18,204
-
119,308
-
1,073,159
32,440
Excess (deficiency) of revenues over expenditures
43,475
8,707
83,745
1,006,542
81,771
278,326
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
-
-
Transfers in
Transfers (out)
(70,000)
(5,000)
(970,000)
Total other financing sources and uses
(70,000)
(5,000)
(970,000)
Net change in fund balance
(26,525)
3,707
83,745
36,542
81,771
278,326
Fund balances -beginning
43,719
3,838
562
121,645
1,996,416
1,314,770
Restatements
-
-
-
-
-
-
Fund balances - beginning restated
43,719
3,838
562
121,645
1,996,416
1,314,770
Fund balances - ending
17,194
7,545
84,307
158,187
2,078,187
1,593,096
See independent auditor's report.
107
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30. 2021
Community
Light
Gas Tax -
Development
REVENUES
Maintenance
BARSAA
Urban Forestry MACI
Loan Revolving CD Misc.
Taxes and assessments
408,079
870,890
613,163
Intergovernmental
-
-
4,207
- - -
Charges for services
-
40,000
43,683
50,894
Miscellaneous
24,350
-
156,807
-
Investment earnings
4,057
6,867
5,327
5,080 33,380
Total revenues
436,486
917,757
823,187
55,974 33,380
EXPENDITURES
Public safety
-
-
Public works
320,730
412,272
-
Parks and recreation
-
-
605,598
- -
-
Community Development
-
2,085
97,953
Debt service - principal
-
-
17,147
- -
-
Debt service - interest
-
-
377
- -
-
Capital outlay
132,073
130,020
Total expenditures
320,730
544,345
753,142
2,085
97,953
Excess (deficiency) ofrevenues over expenditures
115,756
373,412
70,045
53,889
(64,573)
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
Transfers in
Transfers (out)
-
-
-
- -
(70,000)
Total other financing sources and uses
(70,000)
Net change in fund balance
115,756
373,412
70,045
53,889
(134,573)
Fund balances - beginning
629,630
1,133,742
885,875
21,006 2,244,689
167,916
Restatements
-
-
-
- -
-
Fund balances - beginning restated
629,630
1,133,742
885,875
21,006 2,244,689
167,916
Fund balances - ending
745,386
1,507,154
955,920
21,006 2,298,578
33,343
See independent auditor's report.
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30. 2021
Law
RD Revolving
Drug Enforcement
Enforcement
EPA BrownSelds Brownfields Loan
REVENUES
Loan (2)
Stonegarden Grant
Grants
Grant Revolving
Taxes and assessments
- -
-
-
Intergovernmental
3,765 98,057
64,677
100,888
Charges for services
-
- -
7,685
- -
Miscellaneous
-
Investment earnings
9,322
Total revenues
9,322
3,765 98,057
72,362
100,888
EXPENDITURES
Public safety
3,765 91,972
71,442
Public works
- -
-
Parks and recreation
-
-
Community Development
1,133
100,713
Debt service - principal
27,482
- -
-
- -
Debt service - interest
4,617
- -
-
- -
Capital outlay
Total expenditures
33,232
3,765 91,972
71,442
100,713
Excess (deficiency) ofrevenues over expenditures
(23,910)
6,085
920
175
OTIIER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
Transfers in
Transfers (out)
Total other financing sources and uses
Net change in fund balance
(23,910)
6,085
920
175
Fund balances - beginning
840,064
23,434
14,236
(175) 100,500
Restatements
-
- -
-
- -
Fund balances - beginning restated
840,064
23,434
14,236
(175) 100,500
Fund balances - ending
816,154
29,519
15,156
100,500
See independent auditor's report.
109
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30. 2021
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Miscellaneous
Investment earnings
Total revenues
EXPENDITURES
Public safety
Public works
Parks and recreation
Community Development
Debt service - principal
Debt service - interest
Capital outlay
Total expenditures
Excess (deficiency) ofrevenues over expenditures
Total Special City Hall Debt Airport TIF Debt
Fire Grants HAZMAT Grant Revenue Funds Service G.O. Bonds Service
- 4,398,156 - 249,223 61,178
21,849 2,240,550 26,368 -
- - 2,800,569 - -
1,160 - 293,766 - -
258 323,575 847 400
1,160 22,107 10,056,616 26,368 250,070 61,578
19,023 22,833 2,238,510
- - 733,002
2,196,358
-
2,375,523
-
- 118,855
103,488
42,037
225,000 -
7,848
209
9,450
1,515,214
19,023 22,833 9,169,943
42,246
234,450 118,855
(17,863) (726) 886,673
(15,878)
15,620 (57,277)
OTHER FINANCING SOURCES (USES)
Issuance of debt
189,438
Transfers in
-
Transfers (out)
-
-
(1,115,000) -
- -
Total other financing sources and uses
(925,562)
Net change in fund balance
(17,863)
(726)
(38,889) (15,878)
15,620 (57,277)
Fund balances - beginning
24,933
45,066
13,977,746 15,878
36,884 57,277
Restatements
-
-
(42,613) -
- -
Fund balances -beginning restated
24,933
45,066
13,935,133 15,878
36,884 57,277
Fund balances - ending
7,070
44,340
13,896,244 -
52,504 -
See independent auditor's report
110
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30. 2021
W estside TIF
Total Debt Service
REVENUES
Debt Service
SID Revolving
S & C's
SID 344
SID 345
Funds
Taxes and assessments
263,955
11,263
242,623
20,292
848,534
Intergovernmental
243,127
-
-
-
269,495
Charges for services
-
-
Miscellaneous
-
-
Investment earnings
1,459
2,706
Total revenues
507,082
1,459
11,263
242,623
20,292
1,120,735
EXPENDITURES
Public safety
-
-
-
-
-
-
Public works
Parks and recreation
-
-
Community Development
-
-
88,613
-
207,468
Debt service - principal
195,000
9,451
225,000
16,000
712,488
Debt service - interest
169,625
2,263
69,883
4,320
255,750
Capital outlay
Total expenditures
364,625
-
11,714
383,496
20,320
1,175,706
Excess (deficiency) ofrevenues over expenditures
142,457
1,459
(451)
(140,873)
(28)
(54,971)
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
-
-
Transfers in
170
-
145,000
145,170
Transfers (out)
-
-
(170)
-
-
(170)
Total other financing sources and uses
170
(170)
145,000
145,000
Net change in fund balance
142,457
1,629
(621)
4,127
(28)
90,029
Fund balances - beginning
820,769
221,197
425
12,121
24,703
1,189,254
Restatements
-
-
-
-
-
-
Fund balances - beginning restated
820,769
221,197
425
12,121
24,703
1,189,254
Fund balances - ending
963,226
222,826
(196)
16,248
24,675
1,279,283
See independent auditor's report.
III
City of Kalispell, Montana
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30. 2021
Total Nonmajor
S & C Total Capital
Governmental
REVENUES
Construction Tiger Grant Project Funds
Funds
Taxes and assessments
- - -
5,246,690
Intergovernmental
1,045,006 1,045,006
3,555,051
Charges for services
- - -
2,800,569
Miscellaneous
- - -
293,766
Investment earnings
326,281
Total revenues
1,045,006 1,045,006
12,222,357
EXPENDITURES
Public safety
Public works
Parks and recreation
Community Development
Debt service - principal
Debt service - interest
Capital outlay
Total expenditures
Excess (deficiency) ofrevenues over expenditures
2,238,510
733,002
2,196,358
2,582,991
815,976
- - - 263,598
4,046 1,099,042 1,103,088 2,618,302
4,046 1,099,042 1,103,088 11,448,737
(4,046) (54,036) (58,082) 773,620
OTHER FINANCING SOURCES (USES)
Issuance of debt
4,046 4,046
193,484
Transfers in
- - -
145,170
Transfers (out)
- - -
(1,115,170)
Total other financing sources and uses
4,046 4,046
(776,516)
Net change in fund balance
(54,036) (54,036)
(2,896)
Fund balances - beginning
15,167,000
Restatements
- - -
(42,613)
Fund balances - beginning restated
15,124,387
Fund balances - ending
(54,036) (54,036)
15,121,491
See independent auditor's report
112
BUDGETARY COMPARISON SCHEDULE - NONMAJOR
FUNDS
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Downtown TIF
Airport TIF
Positive /
Positive /
(Negative)
(Negative)
Budget Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
26,259
26,259
Intergovernmental
-
-
Charges for services
Miscellaneous
-
-
-
Investment earnings
41
41
8,694
8,694
Total revenues
26,300
26,300
8,694
8,694
EXPENDITURES
Current:
General govennnenl
-
-
-
-
Public safety
Public works
Parks and recreation
-
-
-
Community Development
2,320,077
1,970,354
349,723
Debt service - principal
-
-
-
Debt service - interest
Capital outlay
-
-
-
Total expenditures
2,320,077
1,970,354
349,723
Excess (deficiency) of revenues over expenditure
26,300
26,300
(2,320,077)
(1,961,660)
358,417
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
Transfers in
117,959
(117,959)
Transfers (out)
-
Total other financing sources and uses
-
-
117,959
(117,959)
Net change in fund balance
26,300
26,300
(2,202,118)
(1,961,660)
240,458
Fund balances - beginning
-
2,202,119
Restatements
-
Fund balances - beginning restated
-
2,202,119
Fund balances - ending
26,300
240,459
See independent auditor's report.
113
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Westside TIF
Parks in Lieu
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
33,000
3,359
(29,641)
Intergovernmental
1,246,000
1,246,000
-
Charges for services
-
-
-
46,372
46,372
Miscellaneous
-
10,000
10,000
-
-
Investment earnings
205,085
222,434
17,349
215
215
Total revenues
1,484,085
1,481,793
(2,292)
46,587
46,587
EXPENDITURES
Current:
General govenrmenl
-
-
-
-
Public safety
Public works
-
-
Parks and recreation
-
-
-
19,450
19,426
24
Community Development
66,666
65,773
893
-
-
-
Debt service - principal
-
-
-
Debt service - interest
-
-
-
Capital outlay
2,043,808
871,571
1,172,237
-
-
-
Total expenditures
2,110,474
937,344
1,173,130
19,450
19,426
24
Excess (deficiency) of revenues over expenditure
(626,389)
544,449
1,170,838
(19,450)
27,161
46,611
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
Transfers in
Transfers (out)
Total other financing sources and uses
-
-
-
-
Net change in fund balance
(626,389)
544,449
1,170,838
(19,450)
27,161
46,611
Fund balances - beginning
1,120,703
19,472
Restatements
-
-
Fund balances - beginning restated
1,120,703
19,472
Fund balances - ending
1,665,152
46,633
See independent auditor's report.
114
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Parks
Ambulance
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
1,199,500
1,224,384
24,884
-
-
Intergovernmental
-
-
-
480,000
673,565
193,565
Charges for services
582,036
646,534
64,498
751,500
525,459
(226,041)
Miscellaneous
44,000
98,276
54,276
-
-
-
Investment earnings
6,500
4,800
(1,700)
-
102
102
Total revenues
1,832,036
1,973,994
141,958
1,231,500
1,199,126
(32,374)
EXPENDITURES
Current:
General govenrmenl
Public safety
1,263,596
1,115,946
147,650
Public works
-
-
-
Parks and recreation
1,789,932
1,571,334
218,598
Community Development
-
-
-
-
-
Debt service - principal
58,859
58,859
-
19,000
19,000
Debt service - interest
6,422
2,854
3,568
2,375
2,375
Capital outlay
-
-
-
190,000
189,480
520
Total expenditures
1,855,213
1,633,047
222,166
1,474,971
1,305,426
169,545
Excess (deficiency) of revenues over expenditure
(23,177)
340,947
364,124
(243,471)
(106,300)
137,171
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out)
Total other financing sources and uses
Net change in fund balance
Fund balances
- beginning
Restatements
Fund balances
- beginning restated
Fund balances
- ending
See independent auditor's report.
(23,177)
190,000 189,438 (562)
- - 190,000 189,438 (562)
340,947 364,124 (53,471) 83,138 136,609
900,222
900,222
1,241,169
123,364
(42,613)
80,751
163,889
115
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Old School Tech TIF
Old School Industrial TIF
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
57,000
58,411
1,411
3,130
8,672
5,542
Intergovernmental
3,056
3,057
1
-
-
-
Charges for services
-
-
-
Miscellaneous
-
-
-
-
-
-
Investment earnings
168
211
43
12
35
23
Total revenues
60,224
61,679
1,455
3,142
8,707
5,565
EXPENDITURES
Current:
General govenrmenl
-
-
-
-
-
-
Public safety
Public works
Parks and recreation
-
-
-
Community Development
18,500
18,204
296
Debt service - principal
-
-
-
Debt service - interest
Capital outlay
-
-
-
Total expenditures
18,500
18,204
296
-
-
-
Excess (deficiency) of revenues over expenditure
41,724
43,475
1,751
3,142
8,707
5,565
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
-
Transfers in
Transfers (out)
(70,000)
(70,000)
(5,000)
(5,000)
Total other financing sources and uses
(70,000)
(70,000)
-
(5,000)
(5,000)
-
Net change in fund balance
(28,276)
(26,525)
1,751
(1,858)
3,707
5,565
Fund balances - beginning
43,719
3,838
Restatements
-
-
Fund balances - beginning restated
43,719
3,838
Fund balances - ending
17,194
7,545
See independent auditor's report
116
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Rail Park TEDD
Health Levy
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
187,500
202,882
15,382
1,149,500
982,057
(167,443)
Intergovernmental
-
-
-
23,859
24,485
626
Charges for services
-
-
-
Miscellaneous
-
-
-
Investment earnings
100
171
71
-
-
Total revenues
187,600
203,053
15,453
1,173,359
1,006,542
(166,817)
EXPENDITURES
Current:
General govenrmenl
-
-
-
-
-
Public safety
Public works
Parks and recreation
-
-
-
Community Development
124,576
119,308
5,268
Debt service - principal
-
-
-
Debt service - interest
Capital outlay
-
-
-
Total expenditures
124,576
119,308
5,268
-
-
Excess (deficiency) of revenues over expenditure
63,024
83,745
10,185
1,173,359
1,006,542
(166,817)
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
-
Transfers in
Transfers (out)
(970,000)
(970,000)
Total other financing sources and uses
(970,000)
(970,000)
Net change in fund balance
63,024
83,745
10,185
203,359
36,542
(166,817)
Fund balances - beginning
562
121,645
Restatements
-
-
Fund balances - beginning restated
562
121,645
Fund balances - ending
84,307
158,187
See independent auditor's report
117
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Building Department
Impact Fees
Positive /
Positive /
(Negative)
(Negative)
Budget Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
Intergovernmental
- -
-
-
-
Charges for services
646,000 1,138,326
492,326
160,000
301,616
141,616
Miscellaneous
- 3,173
3,173
-
-
-
Investment earnings
15,000 13,431
(1,569)
13,000
9,150
(3,850)
Total revenues
661,000 1,154,930
493,930
173,000
310,766
137,766
EXPENDITURES
Current:
General govenrmenl
Public safety
965,630
903,529
62,101
10,000
10,000
Public works
-
-
-
-
-
Parks and recreation
Community Development
Debt service - principal
Debt service - interest
-
-
-
-
- -
Capital outlay
199,190
169,630
29,560
857,000
22,440 834,560
Total expenditures
1,164,820
1,073,159
91,661
867,000
32,440 834,560
Excess (deficiency) of revenues over expenditure
(503,820)
81,771
585,591
(694,000)
278,326 972,326
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out)
Total other financing sources and uses
Net change in fund balance
Fund balances
- beginning
Restatements
Fund balances
- beginning restated
Fund balances
- ending
See independent auditor's report.
(503,820) 81,771 585,591 (694,000) 278,326 972,326
1,996,416
1,996,416
2,078,187
1,314,770
1,314,770
1,593,096
118
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Light Maintenance
Gas Tax - BARSAA
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
410,700
408,079
(2,621)
705,000
870,890
165,890
Intergovernmental
-
-
-
-
-
Charges for services
-
-
-
40,000
40,000
Miscellaneous
5,400
24,350
18,950
-
-
-
Investment earnings
3,600
4,057
457
7,200
6,867
(333)
Total revenues
419,700
436,486
16,786
752,200
917,757
165,557
EXPENDITURES
Current:
General govenrmenl
-
-
-
-
-
-
Public safety
-
-
-
-
-
-
Public works
411,039
320,730
90,309
1,110,042
412,272
697,770
Parks and recreation
-
-
-
-
-
-
Community Development
Debt service - principal
Debt service - interest
-
-
-
Capital outlay
-
-
-
171,071
132,073
38,998
Total expenditures
411,039
320,730
90,309
1,281,113
544,345
736,768
Excess (deficiency) of revenues over expenditure
8,661
115,756
107,095
(528,913)
373,412
902,325
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out)
Total other financing sources and uses
Net change in fund balance
Fund balances
- beginning
Restatements
Fund balances
- beginning restated
Fund balances
- ending
See independent auditor's report.
8,661 115,756 107,095 (528,913) 373,412 902,325
629,630
629,630
745,386
1,133,742
1,133,742
1,507,154
119
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Urban Forestry
MACI
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget Actual Variance
REVENUES
Taxes and assessments
601,100
613,163
12,063
-
Intergovernmental
6,750
4,207
(2,543)
210,228 (210,228)
Charges for services
-
43,683
43,683
-
Miscellaneous
69,400
156,807
87,407
Investment earnings
5,400
5,327
(73)
-
Total revenues
682,650
823,187
140,537
210,228 (210,228)
EXPENDITURES
Current:
General govennnenl
Public safety
Public works
-
-
-
Parks and recreation
708,397
605,598
102,799
Community Development
-
-
-
Debt service - principal
16,530
17,147
(617)
Debt service - interest
1,199
377
822 - -
Capital outlay
140,000
130,020
9,980 242,814 242,814
Total expenditures
866,126
753,142
112,984 242,814 242,814
Excess (deficiency) of revenues over expenditure
(183,476)
70,045
253,521 (32,586) 32,586
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out)
Total other financing sources and uses
Net change in fund balance
Fund balances -
beginning
Restatements
Fund balances -
beginning restated
Fund balances -
ending
See independent auditor's report.
(183,476)
15,000 (15,000)
- 15,000 (15,000)
70,045 253,521 (17,586) 17,586
885,875
885,875
955,920
21,006
21,006
21,006
120
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Community Development Loan
Revolving
CD Misc.
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget Actual
Variance
REVENUES
Taxes and assessments
Intergovernmental
-
-
Charges for services
52,264
50,894
(1,370)
Miscellaneous
-
-
-
- -
Investment earnings
4,000
5,080
1,080
14,920 33,380
18,460
Total revenues
56,264
55,974
(290)
14,920 33,380
18,460
EXPENDITURES
Current:
General govenrmenl
Public safety
Public works
Parks and recreation - - - - - -
Community Development 502,405 2,085 500,320 373,038 97,953 275,085
Debt service - principal - - - - - -
Debt service - interest
Capital outlay - - - - - -
Total expenditures 502,405 2,085 500,320 373,038 97,953 275,085
Excess (deficiency) of revenues over expenditure (446,141) 53,889 500,030 (358,118) (64,573) 293,545
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out)
Total other financing sources and uses
Net change in fund balance
Fund balances
- beginning
Restatements
Fund balances
- beginning restated
Fund balances
- ending
See independent auditor's report.
(446,141)
(70,000) (70,000)
- - (70,000) (70,000) -
53,889 500,030 (428,118) (134,573) 293,545
2,244,689
2,244,689
2,298,578
167,916
167,916
33,343
121
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
RD Revolving Loan (2)
Stonegarden
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
-
-
Intergovernmental
-
40,000
3,765
(36,235)
Charges for services
38,248
(38,248)
-
-
Miscellaneous
-
Investment earnings
10,633
9,322
(1,311)
-
-
Total revenues
48,881
9,322
(39,559)
40,000
3,765
(36,235)
EXPENDITURES
Current:
General govenrmenl
-
-
-
-
-
Public safety
40,000
3,765
36,235
Public works
-
-
-
Parks and recreation
-
-
-
Community Development
450,000
1,133
448,867
Debt service - principal
27,482
27,482
-
Debt service - interest
4,617
4,617
Capital outlay
-
-
-
-
-
Total expenditures
482,099
33,232
448,867
40,000
3,765
36,235
Excess (deficiency) of revenues over expenditure
(433,218)
(23,910)
409,308
-
-
-
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
Transfers in
Transfers (out)
Total other financing sources and uses
-
Net change in fund balance
(433,218)
(23,910)
409,308
Fund balances - beginning
840,064
Restatements
-
Fund balances - beginning restated
840,064
Fund balances - ending
816,154
See independent auditor's report
122
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Drug Enforcement Grant
Law Enforcement Grants
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
-
-
-
-
Intergovernmental
102,301
98,057
(4,244)
96,580
64,677
(31,903)
Charges for services
-
-
17,000
7,685
(9,315)
Miscellaneous
-
-
Investment earnings
-
-
-
-
Total revenues
102,301
98,057
(4,244)
113,580
72,362
(41,218)
EXPENDITURES
Current:
General govenrmenl
-
-
-
-
-
-
Public safety
104,763
91,972
12,791
117,580
71,442
46,138
Public works
-
-
-
-
-
-
Parks and recreation
Community Development
Debt service - principal
Debt service - interest
-
Capital outlay
-
-
-
-
-
Total expenditures
104,763
91,972
12,791
117,580
71,442
46,138
Excess (deficiency) of revenues over expenditure
(2,462)
6,085
8,547
(4,000)
920
4,920
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
Transfers in
Transfers (out)
Total other financing sources and uses
-
-
-
-
Net change in fund balance
(2,462)
6,085
8,547
(4,000)
920
4,920
Fund balances - beginning
23,434
14,236
Restatements
-
-
Fund balances - beginning restated
23,434
14,236
Fund balances - ending
29,519
15,156
See independent auditor's report.
123
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
EPA Brownfields Grant
Brownfields Loan Revolving
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
-
-
-
Intergovernmental
116,372
100,888
(15,484)
485,995
(485,995)
Charges for services
-
-
-
Miscellaneous
Investment earnings
-
-
-
Total revenues
116,372
100,888
(15,484)
485,995
(485,995)
EXPENDITURES
Current:
General govenrmenl
-
-
-
Public safety
Public works
Parks and recreation
-
-
-
-
-
Community Development
116,372
100,713
15,659
586,495
586,495
Debt service - principal
-
-
-
-
-
Debt service - interest
Capital outlay
-
-
-
-
-
Total expenditures
116,372
100,713
15,659
586,495
586,495
Excess (deficiency) of revenues over expenditure
-
175
175
(100,500)
100,500
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
Transfers in
Transfers (out)
Total other financing sources and uses
-
-
-
Net change in fund balance
175
175
(100,500)
-
100,500
Fund balances - beginning
(175)
100,500
Restatements
-
-
Fund balances - beginning restated
(175)
100,500
Fund balances - ending
-
100,500
See independent auditor's report.
124
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Fire Grants
HAZNIAT Grant
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget Actual
Variance
REVENUES
Taxes and assessments
-
- -
Intergovernmental
315,910
(315,910)
38,163 21,849
(16,314)
Charges for services
-
-
- -
Miscellaneous
1,000
1,160
160
- -
-
Investment earnings
-
-
-
420 258
(162)
Total revenues
316,910
1,160
(315,750)
38,583 22,107
(16,476)
EXPENDITURES
Current:
General govenrmenl
Public safety
10,000
19,023 (9,023) 54,222 22,833 31,389
Public works
-
- - - -
Parks and recreation
Community Development
Debt service - principal
Debt service - interest
-
-
Capital outlay
347,501
- 347,501 - - -
Total expenditures
357,501
19,023 338,478 54,222 22,833 31,389
Excess (deficiency) of revenues over expenditure
(40,591)
(17,863) 22,728 (15,639) (726) 14,913
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out)
Total other financing sources and uses
Net change in fund balance
Fund balances
- beginning
Restatements
Fund balances
- beginning restated
Fund balances
- ending
See independent auditor's report.
31,591 (31,591)
31,591 (31,591)
(9,000) (17,863) (8,863) (15,639)
24,933
24,933
7,070
(726) 14,913
45,066
45,066
44,340
125
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Total Special Revenue Funds
Positive /
(Negative)
Budget Actual Variance
REVENUES
Taxes and assessments
4,346,430
4,398,156
51,726
Intergovernmental
3,165,214
2,240,550
(924,664)
Charges for services
2,287,048
2,800,569
513,521
Miscellaneous
119,800
293,766
173,966
Investment earnings
286,038
323,575
37,537
Total revenues
10,204,530
10,056,616
(147,914)
EXPENDITURES
Current:
General govennnenl
Public safety
2,565,791
2,238,510
327,281
Public works
1,521,081
733,002
788,079
Parks and recreation
2,517,779
2,196,358
321,421
Community Development
4,558,129
2,375,523
2,182,606
Debt service - principal
121,871
103,488
18,383
Debt service - interest
14,613
7,848
6,765
Capital outlay
4,191,384
1,515,214
2,676,170
Total expenditures
15,490,648
9,169,943
6,320,705
Excess (deficiency) of revenues over expenditure
(5,286,118)
886,673
(6,468,619)
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out)
Total other financing sources and uses
Net change in fund balance
Fund balances -
beginning
Restatements
Fund balances -
beginning restated
Fund balances -
ending
See independent auditor's report.
190,000 189,438 562
164,550 - (164,550)
(1,115,000) (1,115,000)
(760,450) (925,562) (163,988)
(6,046,568) (38,889) (6,632,607)
13,977,746
(42,613)
13,935,133
13,896,244
126
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
G.O. Bonds
Airport TIF Debt Service
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
230,700
249,223
18,523
60,283
61,178
895
Intergovernmental
-
-
-
-
-
-
Charges for services
Miscellaneous
-
-
-
-
-
Investment earnings
1,500
847
(653)
400
400
-
Total revenues
232,200
250,070
17,870
60,683
61,578
895
EXPENDITURES
Current:
General govenrmenl
Public safety
Public works
Parks and recreation
- - -
Community Development
-
- 117,959 118,855 (896)
Debt service - principal
225,000
225,000 - - -
Debt service - interest
9,450
9,450
Capital outlay
-
- - - -
Total expenditures
234,450
234,450 - 117,959 118,855 (896)
Excess (deficiency) of revenues over expenditure
(2,250)
15,620 17,870 (57,276) (57,277) (1)
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers (out)
Total other financing sources and uses
Net change in fund balance
Fund balances
- beginning
Restatements
Fund balances
- beginning restated
Fund balances
- ending
See independent auditor's report.
(2,250) 15,620 17,870 (57,276) (57,277) (1)
36,884
36,884
52,504
57,277
57,277
127
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
City Hall Debt Service
Westside TIF Debt Service
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
-
-
-
271,020
263,955
(7,065)
Intergovernmental
26,684
26,368
(316)
243,128
243,127
(1)
Charges for services
-
-
-
-
-
-
Miscellaneous
Investment earnings
-
-
-
-
-
Total revenues
26,684
26,368
(316)
514,148
507,082
(7,066)
EXPENDITURES
Current:
General govenrmenl
-
-
-
-
-
Public safety
Public works
Parks and recreation
Community Development
-
-
-
-
Debt service - principal
42,037
42,037
-
195,000
195,000
Debt service - interest
524
209
315
169,625
169,625
Capital outlay
-
-
-
Total expenditures
42,561
42,246
315
364,625
364,625
Excess (deficiency) of revenues over expenditure
(15,877)
(15,878)
(1)
149,523
142,457
(7,066)
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
Transfers in
Transfers (out)
Total other financing sources and uses
-
-
-
Net change in fund balance
(15,877)
(15,878)
(1)
149,523
142,457
(7,066)
Fund balances - beginning
15,878
820,769
Restatements
-
-
Fund balances - beginning restated
15,878
820,769
Fund balances - ending
-
963,226
See independent auditor's report.
128
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
SID Revolving
S & C's
Positive /
Positive /
(Negative)
(Negative)
Budget Actual
Variance
Budget Actual
Variance
REVENUES
Taxes and assessments
12,001 11,263
(738)
Intergovernmental
- -
-
Charges for services
Miscellaneous
- -
-
Investment earnings
1,830 1,459
(371)
- -
-
Total revenues
1,830 1,459
(371)
12,001 11,263
(738)
EXPENDITURES
Current:
General govenrmenl
Public safety
Public works
Parks and recreation
Community Development
-
-
Debt service - principal
9,451
9,451
-
Debt service - interest
2,346
2,263
83
Capital outlay
-
-
-
Total expenditures
-
-
- 11,797
11,714
83
Excess (deficiency) of revenues over expenditure
1,830
1,459
(371) 204
(451)
(655)
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
- -
-
-
Transfers in
170
170
-
-
Transfers (out)
-
-
(170)
(170)
Total other financing sources and uses
170
170
- -
(170)
(170)
Net change in fund balance
2,000
1,629
(371) 204
(621)
(825)
Fund balances - beginning
221,197
425
Restatements
-
-
Fund balances - beginning restated
221,197
425
Fund balances - ending
222,826
(196)
See independent auditor's report
129
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
SID 344
SID 345
Positive /
Positive /
(Negative)
(Negative)
Budget
Actual
Variance
Budget
Actual
Variance
REVENUES
Taxes and assessments
260,000
242,623
(17,377)
22,600
20,292
(2,308)
Intergovernmental
-
-
-
-
Charges for services
Miscellaneous
Investment earnings
-
-
-
-
Total revenues
260,000
242,623
(17,377)
22,600
20,292
(2,308)
EXPENDITURES
Current:
General govenrmenl
-
-
-
-
Public safety
Public works
Parks and recreation
-
-
-
Community Development
107,000
88,613
18,387
-
-
Debt service - principal
225,000
225,000
-
16,000
16,000
-
Debt service - interest
69,883
69,883
4,670
4,320
350
Capital outlay
-
-
-
-
-
-
Total expenditures
401,883
383,496
18,387
20,670
20,320
350
Excess (deficiency) of revenues over expenditure
(141,883)
(140,873)
1,010
1,930
(28)
(1,958)
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
-
Transfers in
145,000
145,000
Transfers (out)
-
Total other financing sources and uses
145,000
145,000
-
-
Net change in fund balance
3,117
4,127
1,010
1,930
(28)
(1,958)
Fund balances - beginning
12,121
24,703
Restatements
-
-
Fund balances - beginning restated
12,121
24,703
Fund balances - ending
16,248
24,675
See independent auditor's report
130
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Total Debt Service Funds S & C Construction
Positive / Positive /
(Negative) (Negative)
Budget
Actual
Variance Budget Actual Variance
REVENUES
Taxes and assessments
856,604
848,534
(8,070)
Intergovernmental
269,812
269,495
(317)
Charges for services
-
-
-
Miscellaneous
-
-
Investment earnings
3,730
2,706
(1,024)
Total revenues
1,130,146
1,120,735
(9,411)
EXPENDITURES
Current:
General govennnenl
Public safety
Public works
Parks and recreation
-
-
-
Community Development
224,959
207,468
17,491
Debt service - principal
712,488
712,488
-
Debt service - interest
256,498
255,750
748 - -
Capital outlay
-
-
- 25,000 4,046 20,954
Total expenditures
1,193,945
1,175,706
18,239 25,000 4,046 20,954
Excess (deficiency) of revenues over expenditure
(63,799)
(54,971)
(27,650) (25,000) (4,046) 20,954
OTHER FINANCING SOURCES (USES)
Issuance of debt - - 25,000 4,046 (20,954)
Transfers in 145,170 145,170 - - -
Transfers (out) - (170) (170) - -
Total other financing sources and uses 145,170 145,000 (170) 25,000 4,046 (20,954)
Net change in fund balance 81,371 90,029 (27,820) - -
Fund balances - beginning 1,189,254
Restatements -
Fund balances - beginning restated 1,189,254
Fund balances - ending 1,279,283
See independent auditor's report.
131
City of Kalispell, Montana
Budgetary Comparison Schedule
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Tiger Grant
Total Capital Project Funds
Positive /
Positive /
(Negative)
(Negative)
Budget Actual
Variance
Budget Actual Variance
REVENUES
Taxes and assessments
- -
- -
Intergovernmental
3,803,909 1,045,006
(2,758,903)
3,803,909 1,045,006 (2,758,903)
Charges for services
- -
- -
Miscellaneous
Investment earnings
- -
- -
Total revenues
3,803,909 1,045,006
(2,758,903)
3,803,909 1,045,006 (2,758,903)
EXPENDITURES
Current:
General govennnenl
Public safety
Public works
Parks and recreation
Community Development
Debt service - principal
Debt service - interest -
-
-
-
-
-
Capital outlay 3,803,909
1,099,042
2,704,867
3,828,909
1,103,088
2,725,821
Total expenditures 3,803,909
1,099,042
2,704,867
3,828,909
1,103,088
2,725,821
Excess (deficiency) of revenues over expenditure -
(54,036)
(54,036)
(25,000)
(58,082)
(33,082)
OTHER FINANCING SOURCES (USES)
Issuance of debt
25,000
4,046
(20,954)
Transfers in
-
-
Transfers (out)
-
-
Total other financing sources and uses
25,000
4,046
(20,954)
Net change in fund balance
(54,036)
(54,036)
-
(54,036)
(54,036)
Fund balances - beginning
Restatements
Fund balances - beginning restated
Fund balances - ending (54,036) (54,036)
See independent auditor's report.
132
COMBINING AND INDIVIDUAL
FUND STATEMENTS
NONMAJOR PROPRIETARY FUNDS
SOLID WASTE — Accounts for assessments received and expenses incurred in the
operation of the City solid waste department.
City of Kalispell, Montana
Statement of Net Positon
Nonmajor Proprietary Funds
June 30, 2021
Solid Waste
ASSETS
Current assets:
Cash and investments
$
1,319,664
Taxes and assessments receivable, net
27,934
Due from other governments
56,845
Prepaids
7,386
Other debits
169
Total current assets
$
1,411,998
Noncurrent assets:
Capital assets (net of accumulated depreciation):
Capital assets - construction in progress
$
-
Depreciable
725,588
Total noncurrent assets
$
725,588
Total assets
$
2,137,586
DEFERRED OUTFLOWS OF RESOURCES
Pension plan subsequent contributions/changes
$
88,370
Total deferred outflows of resources
$
88,370
LIABILrf] ES
Current liabilities:
Accounts payable
$
6,005
Accrued payroll
20,027
Compensated absences payable
43,544
Total current liabilities
$
69,576
Noncurrent liabilities:
Compensated absences payable
$
37,429
Net pension liability
371,768
Total noncurrent liabilities
$
409,197
Total liabilities
$
478,773
DEFERRED INFLOWS OF RESOURCES
Pension-dif£ between projected and actual earnings
$
30,381
Total deferred inflows of resources
$
30,381
NET POS1T1ON
Net investment in capital assets
$
725,588
Unrestricted
991,214
Total net position
$
1,716,802
See independent auditor's report
133
City of Kalispell, Montana
Statement of Revenues, Expenses, and Changes in Fund Net Positim
Nonmajor Proprietary Funds
For the Fiscal Year Ended June 30, 2021
Solid Waste
OPERATING REVENUES
Charges for services $ 1,091,304
Miscellaneous revenue, 5,090
Total operating revenues $ 1,096,394
OPERATING EXPENSES
Personal services
$ 514,099
Supplies
97,013
Purchased services
81,787
Fixed charges
184,023
Depreciation
131,817
Total operating expenses
$ 1,008,739
Operating income (loss)
$ 87,655
NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenuf $ 19,156
Interest revenue 9,238
Debt service interest expense -
Total non -operating revenues (expenses; $ 28,394
Change in net position $ 116,049
Net Position - beginning of the yeas $ 1,600,753
Net Position - end of the yeas $ 1,716,802
See independent auditor's report.
134
City of Kalispell, Montana
Statement of Cash Flows
Nonmajor Proprietary Funds
For the Year Ended June 30, 2021
Cash flows from operating activities:
Cash received from customers
Cash received from miscellaneous sources
Cash payments for claims
Cash payments to employees
Net cash provided (used) by operating activities
Cash flows from capital and related financing activities:
Principal paid on bonds, loans and advances
Interest paid on bonds, loans and advances
Acquisition and construction of capital assets
Net cash provided (used) by capital and related financing activities
Cash flows from investing activities:
Interest on investments
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning
Cash and cash equivalents at end
Reconciliation of operating income (loss) to net cash provided
(used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation
Changes in assets and liabilities:
Taxes and assessments receivable, net
Due from county
Comp absences
Accounts payable
Prepaid Expenses
Accrued payroll
Pension expens adjustment
Net cash provided (used) by operating activities
See Independent Auditor's Report
Solid Waste
$ 1,137,904
5,090
(362,640)
(534,833)
$ 245,521
(495,630)
$ (495,630)
$ 9,238
$ 9,238
$ (240,871)
1,560,535
$ 1,319,664
$ 87,655
131,818
46,600
13,767
182
2,757
(37,258)
$ 245,521
135
STATISTICAL
SECTION
This part of the City of Kalispell's financial report presents detailed information as a
context for understanding what the information in the financial statements, note
disclosure and required supplementary information says about the government's overall
financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time
Revenue Capacity
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of
the government's current level of outstanding debt and the government's ability to
issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities
take place.
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
Additional Information
This category is intended to present other information the City feels is necessary
for its users.
Sources: Unless otherwise noted, the information in these schedules is derived from the City of Kalispell annual
financial report for the relevant year.
Note: The City of Kalispell implemented GASB Statement 34 in fiscal year 2003, therefore the data for prior years are
not shown; schedules presenting government -wide information include information beginning in that year.
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136
CITY OF KALISPELL, MONTANA
CHANGES IN NET POSITION
Past Ten Fiscal Years
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Expenses
Governmental activities:
General government
6,995,454
6,709,523
5,688,135
5,401,242
5,823,767
5,841,775
6,251,409
6,078,813
6,225,773
6,505,134
Public Safety
8,536,332
9,293,138
9,269,827
9,575,487
9,113,674
10,968,010
11,333,862
11,186,487
11,738,977
15,081,467
Public Works
2,844,001
3,074,630
2,573,627
2,773,097
2,581,002
2,660,513
3,341,768
5,778,281
4,432,162
4,191,268
Parks and recreation
1,913,920
1,991,585
2,123,237
2,062,669
2,057,468
2,184,222
2,554,634
2,530,660
2,371,145
2,787,605
Community Development
1,426,377
3,616,337
1,601,170
683,164
928,661
853,455
1,275,659
2,860,796
2,048,260
3,093,846
Interest
390,770
357,857
331,811
286,401
242,110
226,588
381,767
333,593
283,585
Total governmental activities expenses
$ 21,716,084 $ 25,075,984 $ 21,613,854 $
20,827,470 $
20,790,973 $
22,750,085 $
24,983,920 $
28,816,804 $
27,149,910 $
31,942,905
Business -type activities:
Airport
217,616
225,974
177,751
154,715
154,091
155,876
333,572
-
-
-
Water
2,592,628
2,660,877
2,625,046
2,542,119
2,657,816
2,734,979
3,079,040
3,042,213
3,134,112
3,423,908
Sewer
5,564,219
5,255,654
5,114,591
5,077,643
5,204,622
4,955,925
5,482,339
5,812,173
6,341,537
6,253,823
Solid Waste
749,481
783,967
812,650
816,686
880,679
872,161
1,013,000
994,660
1,047,408
1,008,739
Total business -type activities expenses
9,123,944
8,926,472
8,730,038
8,591,163
8,897,208
8,718,941
9,907,951
9,849,046
10,523,057
10,686,470
Total primary government expenses
$ 30,840,028 $ 34,002,456 $ 30,343,892 $
29,418,633 $
29,688,181 $
31,469,026 $
34,891,871 $
38,665,850 $
37,672,967 $
42,629,375
Program Revenues
Governmental activities:
Charges for services:
General government
865,223
669,964
628,729
684,550
892,578
789,167
909,258
810,930
797,202
1,082,008
Public Safety
1,753,969
1,928,011
2,033,870
1,973,898
2,219,795
3,155,476
2,816,588
2,570,838
3,006,814
2,986,568
Public Works
2,226,027
2,201,616
2,172,122
2,463,435
2,672,473
2,885,492
3,155,932
3,470,887
3,203,603
2,854,584
Parks and recreation
619,634
711,969
752,460
728,165
730,928
716,491
1,334,208
1,283,827
1,049,706
1,349,752
Community Development
243,088
170,429
283,134
153,431
88,252
66,393
55,664
50,979
64,685
50,894
Operating grants and contributions
2,554,322
2,688,746
2,636,321
1,838,425
1,354,890
1,470,485
1,708,661
1,841,137
3,473,490
6,357,875
Capital grants and contributions
1,385,939
1,378,649
1,519,825
3,232,618
942,125
1,544,350
7,512,439
12,331,081
1,045,006
Total governmental activities program revenues
$ 9,648,202 $
9,749,384 $ 10,026,461 $
11,074,522 $
8,901,041 $
10,627,854 $
17,492,750 $
22,359,679 $
11,595,500 $
15,726,687
Business -type activities:
Charges for services:
Airport
76,572
75,813
78,657
79,091
72,623
74,228
69,656
-
-
-
Water
2,430,380
2,740,512
2,985,959
3,018,276
3,535,072
3,891,449
4,346,570
4,241,715
3,874,001
4,633,672
Sewer
4,554,155
4,977,286
4,967,223
5,141,284
5,543,740
7,485,750
7,774,762
8,007,450
7,994,232
10,302,333
Solid Waste
851,563
900,643
951,676
973,393
988,145
1,005,786
1,021,797
1,048,091
1,076,047
1,096,394
Operating grants and contributions
2,416
8,354
8,372
27,721
137,048
32,653
31,078
47,478
55,235
222,879
Capital grants and contributions
679,690
1,012,027
2,137,977
1,098,222
3,338,669
131,626
579,982
6,536,160
5,200,256
799,492
Total business -type activities program revenues
8,594,776
9,714,635
11,129,864
10,337,987
13,615,297
12,621,492
13,823,845
19,880,894
18,199,771
17,054,770
Total primary government program revenues
$ 18,242,978 $ 19.464.019 $ 21.156.325 $
21,412,509 $
22,516,338 $
23,249,346 $
31,316,595 $
42,240,573 $
29,795,271 $
32.781.457
Net (Expense) / Revenue
Governmental activities
(12,067,882)
(15,326,600)
(11,587,393)
(9,752,948)
(11,889,932)
(12,122,231)
(7,491,170)
(6,457,125)
(15,554,410)
(16,216,218)
Business -type activities
(529,168)
788,163
2,399,826
1,746,824
4,718,089
3,902,551
3,915,894
10,031,848
7,676,714
6,368,300
Total primary government net expense
$ (12,597.050) $ (14.538.437) $ (9.187.567) $
(8.006.124) $
(7.171.843) $
(8.219.680) $
(3.575.276) $
3.574.723 $
(7,877,696) $
(9.84L L8)
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes
7,469,972
8,092,684
8,739,807
7,584,775
8,357,904
8,848,481
8,912,089
9,647,621
10,393,815
10,109,452
Misc.
106,783
151,062
184,781
189,921
111,048
200,015
201,577
99,876
128,414
583,314
Investment earnings
130,836
71,573
48,193
72,531
105,557
159,362
210,835
284,576
262,342
387,748
Grants and entitlements not restricted
2,603,949
2,657,356
2,835,264
3,134,703
3,132,559
3,184,831
3,177,113
3,074,926
3,425,997
3,251,245
Gas Tax
361,157
360,650
364,563
364,622
369,749
371,303
522,832
689,060
835,851
870,890
Gain (loss) sale of capital assets
(212,127)
11,610
78,497
22,183
(196,262)
-
6,500
-
Transfers
27,188
(358,169)
(218,728)
(65,000)
35,000
35,000
(8,960,047)
Total governmental activities
$ 10,487,758 $ 10,975,156 $ 11,953,880 $
11,293,162 $
12,190,314 $
12,821,175 $
12,828,184 $
13,796,059 $
6,092,872 $
15,202,649
Business -type activities:
Investment earnings
142,299
102,311
83,224
113,963
132,339
227,052
288,162
410,448
412,935
209,468
Gain (loss) sale of capital assets
(41,786)
-
46,710
(3,091)
-
-
(2,077,363)
-
-
Other
-
2,101
140,616
19,631
-
209,531
-
-
Transfers
358,169
218,728
65,000
(35,000)
(35,000)
Total business -type activities
$ 100,513 $
460,480 $
301,952 $
227,774 $
234,864 $
211,683 $
288,162 $
(1,457,384) $
412,935 $
209,468
Total primary government
$ 10,588,271 $ 11,435,636 $ 12,255,832 $
11,520,936 $
12,425,178 $
13,032,858 $
13,116,346 $
12,338,675 $
6,505,807 $
15,412,117
Change in Net Position
Governmental activities
(1,580,124)
(4,351,444)
366,487
1,540,214
300,382
698,944
5,337,014
7,338,934
(9,461,538)
(1,013,569)
Business -type activities
(428,655)
1,248,643
2,701,778
1,974,598
4,952,953
4,114,234
4,204,056
8,574,464
8,089,649
6,577,768
Total primary government
$ (2,008,779) $
(3,102,801) $
3,068,265 $
3,514,812 $
5,253,335 $
4,813,178 $
9,541,070 $
15,913,398 $
(1,371,889) $
5,564,199
Unaudited statistical section
137
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Unaudited statistical sectior
138
0
z
CITY OF KALISPELL, MONTANA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Past Ten Fiscal Years
(modified accrual basis of accounting)
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Revenues
Taxes and assessments
8,857,628
8,915,749
8,735,146
11,275,636
9,324,431
12,456,526
13,518,677
13,633,324
14,293,833
14,922,135
Licenses and permits
395,211
330,807
423,354
381,045
664,391
1,229,925
1,115,019
746,187
946,567
230,574
Intergovernmental
6,142,095
6,882,344
6,405,255
5,406,703
5,743,188
6,314,835
12,269,442
5,883,270
7,639,407
8,472,164
Charges for services
4,511,738
4,339,260
4,386,312
4,630,575
4,935,344
3,006,507
3,022,950
2,887,000
2,863,094
3,818,043
Fines and forfeitures
539,579
585,906
572,066
538,234
495,347
454,547
443,919
512,889
514,035
495,459
Miscellaneous
147,907
129,351
194,272
188,615
288,652
138,075
116,693
143,271
108,699
452,102
Investment earnings
78,076
71,572
48,193
72,528
105,557
159,363
188,004
261,385
238,482
387,748
Total revenues
20,672,234
21,254,989
20,754,598
22,493,336
21,556,910
23,759,778
30,674,704
24,067,326
26,604,117
28,778,225
Expenditures
General government
3,409,323
2,512,714
2,893,332
2,623226
2,991,835
2,495,710
3,127,703
3,233,558
3,392,162
3,206,238
Public safety
8,044,589
8,820,726
8,755,082
9,115,952
9,540,699
10,873,610
10,644,186
10,719,151
10,879,234
12,123,225
Public works
2,673,729
2,904,562
2,376,067
2,672,152
2,191,012
2,327,678
2,857,261
5,166,350
3,638,526
3,262,769
Parks and recreation
1,439,646
1,519,173
1,664,595
1,608,497
1,550,943
1,714,235
1,986,322
2,092,271
1,941,001
2,196,358
Community development
1,355,200
3,616,337
1,601,170
685,018
923,170
853,455
1,275,659
2,860,796
2,048,260
2,995286
Capital outlay
1,075,598
1,701,728
1,201,998
560,750
930,636
1,792,584
11,577,677
1,107,299
926,860
2,790,528
Debt service:
Principal
5,243,827
1,259,716
1,264227
1,330,057
1,880,720
1,294,872
1,787,726
1,324,876
1,341,973
886,012
Interest
639,724
390,770
357,857
331,811
286,401
242,110
226,588
381,767
333,593
283,585
Total expenditures
23,881,636
22,725,726
20,114,328
18,927,463
20,295,316
21,594,254
33,483,122
26,886,068
24,501,609
27,744,001
Excess of revenues
over (under) expenditures
(3,209,402)
(1,470,737)
640,270
3,565,873
1,261,594
2,165,524
(2,808,418)
(2,818,742)
2,102,508
1,034224
Other Financing Sources (Uses)
Transfers in
1,414,504
1,512214
1,639,721
2,201276
2,022,611
1,020,234
4,115,790
992,570
1,005,000
1,115,170
Transfers out
(1,414,504)
(1,512,214)
(1,639,721)
(2,176,276)
(1,987,611)
(985,234)
(4,115,790)
(992,570)
(1,005,000)
(1,115,170)
Issuance of debt
4,821,585
243,680
403,623
124,040
461,833
134,287
6,148,597
104,917
15,824
193,494
Sales of capital assets
233,637
11,610
93,272
26,513
20,984
37,399
6,500
-
Bond premium
52,763
Total other financing sources (uses)
5,107,985
243,680
403,623
160,650
590,105
195,800
6,169,581
142,316
22,324
193,484
Net change in fund balanceE 1,898,583 (1,227,057) 1,043,893 3,726,523 1,851,699 2,361,324 3,361,163 (2,676,426) 2,124,832 1,227,708
Debt service as a percentage of
noncapital expenditures 25.800-o 7.850-o 8.58% 9.05% 11.19% 7.764-o 9.204-o 6.624-o 7.110-o 4.69%
Unaudited statistical section
139
Fiscal
Year Real
Ended Taxable
June 30, Value
CITY OF KALISPELL, MONTANA
MARKET VALUE OF TAXABLE PROPERTY
Past Ten Fiscal Years
(in thousands of dollars)
Less Total Total Estimated
Tax Taxable Direct Market
Increment Valuation Tax Rate Value
Taxable
Value as a
Percentage
of Market Value
2012
$
41,785
$
1,716
$
40,069
175.93
$
1,413,041
2.84%
2013
$
40,531
$
1,515
$
39,016
185.60
$
1,450,786
2.69%
2014
$
40,798
$
1,464
$
39,334
185.10
$
1,506,125
2.61 %
2015
$
41,761
$
2,240
$
39,521
187.80
$
1,587,574
2.49%
2016
$
38,953
$
1,000
$
37,953
205.60
$
2,294,128
1.65%
2017
$
39,229
$
1,211
$
38,018
212.70
$
2,307,546
1.65%
2018
$
42,373
$
1,142
$
41,231
206.12
$
2,561,622
1.61 %
2019
$
43,808
$
940
$
42,868
205.76
$
2,638,150
1.62%
2020
$
48,698
$
1,064
$
47,634
193.30
$
2,972,359
1.60%
2021
$
49,672
$
701
$
48,971
189.42
$
3,046,186
1.61 %
Source:
Flathead County and
Montana
Department
of Revenue
Note: Reappraised
by Montana Department
of Revenue every other year
Unaudited statistical section
140
CITY OF KALISPELL, MONTANA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Past Ten Fiscal Years
(rate per $1000 of assessed value)
City of Kalispell
Fiscal
General
Total
Year
Obligation
Direct
Ended
Basic
Health
Debt
Tax
June 30,
Rate
Insurance
Service
Rate
2012
145.88
16.55
13.50
175.93
2013
154.60
18.50
12.50
185.60
2014
154.10
18.50
12.50
185.10
2015
156.80
18.50
12.50
187.80
2016
170.10
23.00
12.50
205.60
2017
174.20
26.00
12.50
212.70
2018
169.62
24.00
12.50
206.12
2019
171.26
23.00
11.50
205.76
2020
161.00
21.30
11.00
193.30
2021
162.62
22.00
4.80
189.42
Source: Flathead County
Overlapping Rates
Kalispell
School
Community
Flathead
State
District
College
County
Ed.
333.48
16.00
125.69
46.00
333.96
15.52
125.96
46.00
333.68
15.80
124.94
46.00
332.58
16.90
128.88
46.00
363.75
18.99
145.03
46.00
348.07
21.45
148.18
46.00
432.82
20.16
138.11
46.00
424.34
20.33
142.07
46.00
403.70
21.46
137.73
46.00
404.11
20.53
138.79
46.00
Unaudited statistical section
141
CITY OF KALISPELL, MONTANA
PRINCIPAL PROPERTY TAX PAYERS
Current Year, and Ten Years Ago
2021
Taxable
Taxpayer
Value
Rank
FLATHEAD ELECTRIC COOPERATIVE INC
2,192,216
1
NORTHWESTERN CORP TRANSMISSION & DISTRIBUTION
1,185,098
2
FLATHEAD HOSPITAL DEVELOPMENT COMPANY LLC
930,177
3
QWEST/CENTURYLINK INC
821,987
4
TKG MOUNTAIN VIEW PLAZA LLC
431,038
5
WAL-MART ESTATE BUSINESS TRUST
320,383
6
PIG INVESTMENTS LLLP
285,867
7
NORTHWEST HORIZONS INC
284,046
8
SHOW ME KALISPELL LLC
233,227
9
VERIZON WIRELESS
267,193
10
CROWN ENTERPRISES LLC
CHARTER COMMUNICATIONS INC
TARGET CORPORATION
RED LION HOTELS LIMITED PARTNERSHIP
Total
6,951,232
Total City Taxable Assessed Value
$ 49,672,451
Source: Flathead County
GASB, Statement 44 requires the demographic and economic information should
indicate the principal property tax payers in the current year and nine years prior for comparison.
Nine year prior information is not available. This information will be updated as available.
Unaudited statistical section
142
2012
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Value
Value
Rank
Value
4.41%
1,963,101
1
4.84%
2.39%
541,264
4
1.34%
1.87%
558,262
3
1.38%
1.65%
1,108,299
2
2.73%
0.87%
244,062
8
0.60%
0.64%
370,278
7
0.91%
0.58%
0.57%
0.47%
0.54%
187,883
10
0.46%
484,551
5
1.20%
216,632
9
0.53%
375,704
6
0.93%
13.99%
6,050,036
14.9377
$ 40,531,328
CITY OF KALISPELL, MONTANA
PROPERTY TAX LEVIES AND COLLECTIONS
Past Ten Fiscal Years
Fiscal
Year Taxes Levied
Ended for the
June 30, Fiscal Year
Collected within the
Fiscal Year of the Levy Collections
Percentage in Subsequent
Amount of Levy Years
Total Collections to Date
Percentage
Amount of Levy
2012
7,351,411
6,929,284
94.26%
285,281
7,214,565
98.14%
2013
7,595,509
7,397,602
97.39%
123,598
7,521,200
99.02%
2014
7,551,710
7,357,549
97.43%
111,016
7,468,565
98.90%
2015
7,842,716
7,739,273
98.68%
68,908
7,808,181
99.56%
2016
8,008,737
7,886,063
98.47%
112,049
7,998,112
99.87%
2017
8,344,008
8,178,854
98.02%
154,723
8,333,577
99.87%
2018
8,733,923
8,556,054
97.96%
167,611
8,723,665
99.88%
2019
9,014,140
8,846,037
98.14%
158,354
9,004,391
99.89%
2020
10,296,334
9,592,708
93.17%
395,448
9,988,156
97.01%
2021
10,200,518
9,819,238
96.26%
N/A
9,819,238
96.26%
Source: Flathead County
City Manager's Final Adopted Budget
Unaudited statistical section
143
CITY OF KALISPELL, MONTANA
RATIOS OF OUTSTANDING DEBT BY TYPE
Past Ten Fiscal Years
Governmental Activities
Business -Type Activities
Fiscal
Year
General
Special
Total
Percentage
Ended
Obligation
Notes
Revenue
Assessment
Revenue
Notes
Primary
of Personal
Per
June 30,
Bonds
Payable
Bonds
Bonds
Bonds
Payable
Government
Income
Capita
2012
4,145,000
2,422,191
1,700,000
3,845,329
17,333,000
29,445,520
3.87%
$ 1,453.67
2013
3,700,000
2,380,835
1,558,000
3,457,647
15,938,483
27,034,965
3.48%
$ 1,319.62
2014
3255,000
2,177,968
1,410,000
3,392,922
15,667,682
172,988
26,076,560
3.23%
$ 1,243.40
2015
2,805,000
1,893,621
1,257,000
3,074,242
14,434,000
154,155
23,618,018
2.72%
$ 1,097.59
2016
2,350,000
1,401,475
1,098,000
2,761,499
13,341,000
116,192
21,068,166
2.26%
$ 955.39
2017
1,885,000
1,204,829
933,500
2,427,060
12287,096
77,849
18,815,334
1.81%
$ 826.65
2018
1,415,000
1,458,992
5,891,760
2,045,507
13,443,771
39,121
24294,151
2.21%
$ 1,046.62
2019
940,000
1,325,573
5,532,498
1,793,229
22,977,473
0
32,568,773
2.73%
$ 1,360.55
2020
455,000
1,105,755
5,142,542
1,561,856
23,755,660
0
32,020,813
2.60%
$ 1,303.89
2021
230,000
1,105,282
4,916,893
1,315,450
23,922,827
0
31,490,452
2.85%
$ 1,501.55
Source:
City Manager's Recommended Budget
City of Kalispell Finance Department
Montana Department of Labor and Industry
Unaudited statistical section
144
CITY OF KALISPELL, MONTANA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Past Ten Fiscal Years
General Bonded Debt Outstanding
Percentage
Fiscal
of Actual
Year
General Special Externally
Net
Taxable
Ended
Obligation Assessment Restricted
Bonded
Value of
Per
June 30,
Bonds Bonds for Repayment
Debt
Property
Capita
2012
4,145,000 3,845,329 414,292
7,576,037
18.9%
$
374.01
2013
3,700,000 3,457,647 349,694
6,807,953
17.4%
$
332.31
2014
3,255,000 3,392,922 172,267
6,475,655
16.5%
$
308.78
2015
2,805,000 3,074,242 531,588
5,347,654
13.5%
$
248.52
2016
2,350,000 2,761,499 765,985
4,345,514
11.4%
$
197.06
2017
1,885,000 2,427,060 637,055
3,675,005
9.7%
$
161.46
2018
1,415,000 2,045,507 603,849
2,856,658
6.9%
$
123.07
2019
940,000 1,793,229 457,246
2,275,983
5.3%
$
95.08
2020
455,000 1,561,856 273,899
1,742,957
3.7%
$
70.97
2021
230,000 1,315,450 52,504
1,492,946
3.0%
$
59.60
Source:
City Manager's Recommended Budget
Montana Department of Revenue
Montana Department of Labor and Industry,
Quarterly Census of Employment and Wages (QCEW) Program
Unaudited statistical section
145
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Unaudited statistical section
146
CITY OF KALISPELL, MONTANA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
June 30, 2021
Governmental Unit
Overlapping General Obligation Debt:
Flathead County
Flathead Valley Community College
Kalispell High School
Kalispell Elementary
West Valley Elementary
Subtotal Overlapping Debt
City direct debt
Grand total direct and overlapping debt
Estimated
Estimated
Share of
Debt
Percentage
Overlapping
Outstanding
Applicable (1)
Debt
4,180,016
16.83%
703,355
14,620,333
16.83%
2,460,105
35,340,000
33.27%
11,757,841
25,675,000
100.00%
25,675,000
25,040,000
39.02%
9,769,994
50,366,295
7,572,624
100.00%
$ 7,572,624
57,938,919
Sources: Assessed value data used to estimate applicable percentages was provided by the State of
Montana, Department of Revenue. Debt outstanding data was provided by each governmental unit.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of
the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that
is borne by the residents and businesses of Kalispell. This process recognizes that, when considering the
City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses
should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore
responsible for repaying the debt, of each overlapping government.
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using
taxable assessed property values. Applicable percentages were estimated by determining the portion of
another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by
each unit's total taxable assessed value.
Unaudited statistical section
147
CITY OF KALISPELL, MONTANA
PLEDGED REVENUE COVERAGE
Past Ten Fiscal Years
Water/Sewer Revenue Bonds
Fiscal
Year Utility Less:
Ended Service Operating Debt Service
June 30, Charges* Expenses** Principal Interest
2012 7,359,224 (4,143,706) (1,007,000) (647,296)
2013 8,063,596 (4,410,574) (1,387,000) (446,979)
2014 8,289,654 (4,516,282) (1,226,000) (388,108)
2015 8,587,057 (4,370,296) (1,242,000) (369,564)
2016 9,523,918 (4,769,754) (1,093,000) (342,382)
2017 9,133,285 (4,647,567) (1,117,000) (316,036)
2018 10,154,805 (5,628,376) (1,223,662) (327,688)
2019 10,864,941 (5,768,642) (1,569,738) (507,040)
2020 10,873,469 (6,155,658) (2,207,044) (561,970)
2021 11,769,468 (6,021,058) (1,709,193) (574,747)
`includes other revenues pledged for debt service
" excludes depreciation
Source: City of Kalispell Finance Department
Assessment Bonds
Special
Special
Assessment
Assessment
Debt Service
Coverage
Billing
Collections
Principal
Interest
Coverage
1,561,222
332,474
(396,662)
(185,444)
(249,632)
1,819,043
471,321
399,180
(391,662)
(186,121)
(178,603)
2,159,264
456,236
197,682
(324,198)
(171,133)
(297,649)
2,605,197
465,275
1,400,791
(326,526)
(163,360)
910,905
3,318,782
448,878
404,275
(319,000)
(145,808)
(60,533)
3,052,682
433,302
389,479
(338,739)
(132,230)
(81,490)
2,975,079
427,331
375,435
(385,841)
(116,836)
(127,242)
3,019,521
338,686
281,508
(259,423)
(98,577)
(76,492)
1,948,797
334,157
263,260
(247,198)
(87,309)
(71,247)
3,464,470
326,566
274,178
(250,451)
(76,466)
(52,739)
Unaudited statistical section
148
CITY OF KALISPELL, MONTANA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Past Ten Fiscal Years
Per
Capita
K-12
Annual
Calendar
Total Wages
Personal
School
Unemployment
Year
Population
(in thousands)
Income
Enrollment*
Rate**
2012
20,256
760,451
37,542
5,729
9.00%
2013
20,487
775,863
37,871
5,762
7.70%
2014
20,972
808,345
38,544
5,812
6.50%
2015
21,518
869,478
40,407
5,828
5.70%
2016
22,052
932,844
42,302
5,859
5.60%
2017
22,761
1,041,543
45,760
5,873
5.10%
2018
23,212
1,098,647
47,331
5,920
4.70%
2019
23,938
1,190,844
49,747
5,921
4.70%
2020
24,558
1,231,166
50,133
5,970
4.90%
2021
est 25,049
1,321,084
52,740
6,211
2.20%
`School District 5
"unadjusted annual (calendar) - October unadjusted (2020)
Sources: Kalispell Public Schools Audit Report, enrollment
U.S. Census Bureau, population
Montana Department of Labor & Industry: Unemployment Rate, Personal Income,
Total Wages (Flathead County, City of Kalispell unavailable)
Unaudited statistical section
149
CITY OF KALISPELL, MONTANA
PRINCIPAL EMPLOYERS
Most current information and Ten Year Prior (2012)
2021
2012
Estimated
Estimated
# of
# of
Private Employer
Employees
Employees
Industry
Logan Health (Kalispell Regional Hospital)
1000+
1000+
Healthcare
Teletech
250-499
500-999
Professional & Tech.
Applied Materials (Semitool Inc.)
250-499
250-499
Manufacturing
Immanuel Lutheran Home
250-499
100-249
Healthcare
AON Service Corporation - NFS
250-499
250-499
Insurance
Glacier Bank
250-499
250-499
Banking
L C Staffing Service
100-249
250-499
Temp. Services
Super 1 Foods
250-499
250-499
Grocery
Costco
250-499
100-249
Retail
Walmart
250-499
250-499
Retail
Healthcenter Northwest
250-499
not available
Healthcare
Sources: Montana Department of Labor & Industry
The State of Montana, Department of Labor reports all employers
in each county and does not rank them or provide the number of employees as they
consider it confidential information.
Unaudited statistical section
150
CITY OF KALISPELL, MONTANA
Full -Time Equivalent City Government Employees by Function/Program
Past Ten Fiscal Years
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
General Government
Manager
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Human Resources
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
1.50
City Clerk
1.34
1.24
1.23
1.58
1.33
1.33
1.33
1.33
1.33
1.33
Media Specialist
0.55
Finance
3.20
3.20
3.20
3.20
3.20
3.20
3.20
3.20
3.20
3.20
Attorney
4.66
4.66
4.67
4.67
4.67
4.67
4.67
4.67
5.67
5.67
Court
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
City Hall
1.40
1.40
1.40
1.45
1.45
1.45
1.45
1.45
1.45
1.45
Planning & Zoning
4.25
4.25
4.25
4.25
4.25
4.05
3.95
3.95
3.95
3.15
Building
3.95
3.95
3.95
5.20
5.20
6.75
8.65
8.65
8.65
8.45
Information Technology
1.50
2.25
2.25
2.15
2.55
2.55
2.55
2.55
2.55
5.55
Total General Government
27.35
27.45
27.45
29.00
29.15
30.50
32.30
32.30
33.30
35.30
Public Safety
Police
42.00
44.00
44.00
44.00
46.00
49.75
50.75
50.75
50.75
51.75
Fire
26.30
27.30
23.30
23.30
23.30
23.30
22.90
22.90
21.90
23.90
Ambulance
7.50
6.50
9.50
9.50
9.50
9.50
9.50
9.50
9.50
9.50
Total Public Safety
75.80
77.80
76.80
76.80
78.80
82.55
83.15
83.15
82.15
85.15
Public Works
DPW
0.25
0.25
0.25
0.25
0.25
0.25
0.25
0.25
0.25
0.25
Garage
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
Street Maint
12.35
12.25
12.25
12.25
12.25
13.25
13.25
14.25
14.40
14.40
Sign/signal
2.50
2.50
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
Light District
0.75
0.75
1.25
1.25
1.25
1.25
1.25
1.25
1.40
1.40
Water
15.25
14.90
14.80
14.80
15.30
15.30
15.30
15.30
15.50
15.50
Sewer
7.55
7.00
7.05
7.05
7.55
7.55
7.55
8.05
8.25
8.25
WWTP
7.90
7.55
7.55
7.55
8.55
8.55
8.55
8.55
8.55
8.55
Storm
6.45
6.20
6.20
6.20
6.20
6.20
7.20
7.70
7.85
7.85
Solid Waste
7.25
7.35
7.40
7.40
7.40
7.40
7.40
7.40
7.55
7.55
Total Public Works
63.25
61.75
61.75
61.75
63.75
64.75
65.75
67.75
68.75
68.75
Parks and Recreation
Parks and Recreation
8.90
9.45
9.80
9.80
9.80
10.60
10.60
10.80
10.80
10.80
Forestry
3.00
3.20
2.85
1.80
1.80
2.00
3.00
3.80
3.80
3.80
Total Parks and Recreation
11.90
12.65
12.65
11.60
11.60
12.60
13.60
14.60
14.60
14.60
Community Development
UDAG/Comm. Dev.
2.00
2.00
2.00
1.75
1.75
2.00
2.00
2.00
2.00
2.00
Airport
Airport
0.50
0.50
0.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total all funds
180.80
182.15
181.15
180.90
185.05
192.40
196.80
199.80
200.80
205.80
Source: City Manager's Recommended Budget
Unaudited statistical section
151
CITY OF KALISPELL, MONTANA
OPERATING INDICATORS BY FUNCTION
Past Ten Fiscal Years
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
General Government
Resolutions passed
66
59
51
41
44
57
58
56
50
53
Ordinances passed
12
12
12
14
17
15
17
17
26
13
Payroll claims processed
5985
6035
6063
5956
6169
6473
6351
6008
6351
6619
Accounts payable claims processed
6248
6461
6425
6704
6504
6716
6784
6905
6745
6638
Receipts processed
10749
10930
10984
10346
11775
13073
12687
11686
10209
9432
Conditional use permits granted
7
5
4
4
6
5
12
4
5
7
Public Safety
Calls for law enforcement service
27600
28650
29706
31419
34626
33186
34467
36459
33578
32952
Citations
6100
5877
5261
5233
5037
4680
4948
5760
4786
4390
Arrests
1700
1643
1316
1549
1734
1405
1659
1660
1687
1511
Calls for fire service
627
708
831
697
798
882
796
906
1157
1128
Calls for rescue service
2071
2197
2281
2560
2501
2673
2712
2792
2702
2806
Public Works
Streets and alleys maintained (Miles)
139
139
139
140
140
144
155
160
160
166
Sidewalk replaced (linear feet)
1704
1476
1510
1723
1589
794
1853
1468
1234
1024
Alleys paved
10
14
7
5
6
6
7
10
13
5
Parks
Park users (reservations)
157288
132291
144937
123633
103438
102533
101493
92161
92161
92161
Acres of parks
429.49
429.49
429.49
429.49
429.49
429.49
429.49
429.49
429.49
429.49
Recreation participants (rec, sports, youth, swim)
32109
36415
43490
41830
35697
35370
35370
42526
40303
40303
Miles of trails
6.35
6.85
7.98
8.10
8.10
8.85
8.85
8.85
8.85
8.85
Development Services
Building permits issued:
Residential
175
258
270
195
195
222
181
183
216
324
Commercial
178
254
262
163
137
137
176
86
71
182
Community Development
TIF/TEDDDistricts
4
4
4
4
4
4
5
5
5
5
New development loans
3
3
3
1
0
1
2
0
2
0
Loans being serviced
16
19
21
22
19
20
10
9
12
12
Airport
Monthly tie down fees (average)
9
7
3
0
0
0
0
0
0
0
Monthly commercial fees (average)
5
6
7
7
6
6
4
0
0
0
Water
Average daily consumption (millions of gallons)
2.81
2.85
2.79
2.96
3.13
2.96
2.33
2.33
3.23
3.57
Number of customers
7530
7625
7641
7675
7785
7907
8083
8263
8363
8579
Sewer
Average daily wastewater treated (millions of gall
2.7
2.6
2.7
2.7
2.5
2.7
2.8
2.7
2.4
2.6
Solid Waste
Refuse collected (tons per day)
21.3
23.0
24.1
25.0
26.0
26.9
27.1
27.7
28.5
30.1
Source: City of Kalispell - updated as available
Unaudited statistical section
152
CITY OF KALISPELL, MONTANA
Capital Asset
Statistics by Function/Program
Past Ten Fiscal Years
FY12
FY13
FY14
FY15 FY16
FY17
FY18
FY19
FY20
FY21
Police
Stations
1.00
1.00
1.00
1.00 1.00
1.00
1.00
1.00
1.00
1.00
Patrol Units (Cars)
11.00
11.00
11.00
11.00 11.00
11.00
11.00
11.00
11.00
11.00
Patrol Units (Motorcycles)
2.00
2.00
2.00
2.00 2.00
2.00
2.00
2.00
2.00
2.00
Fire
Stations
2.00
2.00
2.00
2.00 2.00
2.00
2.00
2.00
2.00
2.00
Fire Trucks
4.00
4.00
4.00
4.00 4.00
4.00
4.00
4.00
4.00
4.00
Ambulances
4.00
4.00
4.00
4.00 4.00
4.00
4.00
4.00
4.00
4.00
Water
Mains (Miles)
126.00
126.00
128.00
128.00 129.50
129.75
130.05
137.50
143.00
144.00
Wastewater
Sanitary Mains (Miles)
130.50
130.50
131.00
131.00 131.00
131.00
131.60
138.80
141.00
151.00
Storm Mains (Miles)
52.00
53.00
53.00
53.50 53.50
53.50
53.75
66.80
68.00
68.50
Lift Stations
40.00
40.00
41.00
41.00 41.00
41.00
41.00
41.00
43.00
43.00
Solid Waste
Collection Vehicles
8.00
8.00
8.00
8.00 8.00
8.00
8.00
6.00
6.00
8.00
Other Vehicles
2.00
2.00
2.00
2.00 2.00
2.00
2.00
2.00
2.00
2.00
Source: City of Kalispell
Unaudited statistical section
153
CITY OF KALISPELL, MONTANA
THE WATER SYSTEM
Past Four Fiscal Years
Major Water System Users
User
Type of
Business
Fiscal Year
2017/18
Water
Charges
% of
Fiscal Year
2017/18 Fiscal Year
Water 2018/19
Revenues Water
$ 3,148,034 Charges
% of
Fiscal Year
2018/19 Fiscal Year
Water 2019/20
Revenues Water
$ 3,061,790 Charges
% of
Fiscal Year
2019/20 Fiscal Year
Water 2020/21
Revenues Water
$ 2,875,645 Charges
% of
Fiscal Year
2020/21
Water
Revenues
$ 3,410,757
Logan Health (KRMC)
Hospital
$ 70,877
2.01% $
63,115
2.19% $
56,850
1.67% $
87,244
2.56%
Red Lion Hotel
Hotel
$ 17,938
0.51% $
16,274
0.57% $
15,426
0.45% $
12,993
0.38%
John Peschel/Valley Linen
Cleaner
$ 21,615
0.61% $
18,597
0.65% $
11,645
0.34% $
11,849
0.35%
Springhill Suites by Marriott
Hotel
$
11,751
0.34%
Hilton
Hotel
$ 11,896
0.34% $
11,416
0.40% $
9,345
0.27% $
9,909
0.29%
Town Pump
C Store
$
17,002
0.50%
The Summit
Athletic Club
$ 14,157
0.40% $
15,231
0.53% $
14,123
0.41% $
9,582
0.28%
Heritage Place
Nursing Home
$ 23,877
0.68% $
19,481
0.68% $
22,841
0.67% $
23,023
0.68%
Hampton Inn
Hotel
$ 12,275
0.35% $
10,868
0.38% $
9,990
0.29% $
11,307
0.33%
Brendan House
Nursing Home
$ 9,791
0.28% $
10,042
0.35% $
9,791
0.29% $
8,747
0.26%
Hutton Ranch Plaza
Retail
$ 13,453
0.38% $
11,554
0.40% $
13,187
0.39% $
17,436
0.51%
Total
$ 195,879
5.17% $
176,578
6.14% $
163,198
4.78% $ 220,843
6.47%
Water Sold by Customer Type
2018 2019 2020 2021
Type of Customer
Residential 725,939 763,521 624,711 740,239
Commercial 650,721 610,958 556,796 563,375
Total
1,376,660
1,374,479
1,181,507
1,303,614
Total direct rate
$ 2.32
$ 2.27
$ 2.57
$ 2.67
per 1000 gallons
Water Rates
Fiscal
Water
litigation (sprinkling)
Year
Monthly
Rate per
Monthly
Rate per
Ended
Base
1000
Base
1000
June 30.
Rate
Gallons
Rate
Gallons
in city out of city
in city out of city
in city out of city
in city out of city
2018
$
7.50 9.38
$ 2.43 3.04
$
7.50 9.38
$ 1.55 1.94
2019
$
7.50 9.38
$ 2.43 3.04
$
7.50 9.38
$ 1.55 1.94
2020
$
7.50 9.38
$ 2.43 3.04
$
7.50 9.38
$ 1.55 1.94
2021
$
8.25 10.31
$ 2.33 2.91
$
8.25 10.31
$ 2.33 2.91
Sources: City of Kalispell
City of Kalispell, Resolutions 4798/4799/5491
Some custormers payto install a separate irrigation
meterand are then billed actual meter readings for
their irrigation use. The City also bills customers
a "sprinkling" rate based offof an average usage
in the 'Winter months" deduction.
Unaudited statistical section
154
CITY OF KALISPELL, MONTANA
THE SEWER SYSTEM
Past Four Fiscal Years
Sewer Sold by Customer Type
2018 2019 2020 2021
Type of Customer
Residential 372,713 468,674 391,342 437,675
Commercial 537,721 519,977 494,274 496,260
Total
910,434 988,651
885,616
933,935
Total direct rate
$
4.99 $ 4.57
$ 5.05
$ 6.44
per 1000 gallons
Sewer Rates
Flathead County Water & Sewer District #1
Fiscal
Sewer
- Evergreen
Year
Monthly
Rate per
Monthly
Rate per
Ended
Base
1000
Base
1000
J,yp@ 30
Rate
Gallons
Rate
Gallons
in city out of city
in city out of city
Evergreen"
Evergreen"
2018
$
8.44
10.55
$
4.78 5.98
11,012.28
2.08
2019
$
8.44
10.55
$
4.78 5.98
12,334.26
2.50
2020
$
8.44
10.55
$
4.78 5.98
10,670.00
2.20
2021
$
11.19
13.99
$
6.34 7.93
15,079.00
2.96
Sources: City of Kalispell
City of Kalispell, Resolutions 4798/4799/5491
"Evergreen has its own collections system and
only uses the City's sewage treatment plant,
which results in a reduced charge. The City
bills the district, which in turn bills the users
within the district.
Unaudited statistical section
155
City of Kalispell, Montana
Tax Increment District Taxable Valuation Detail
Past Seven Fiscal Years
Westside Tax Increment District
(Kalispell C)
(expires January 1, 2037)
Fiscal
Base
Incremental
Total
Year
Value
Value
Value
2020/21
$
7,932,918
$ 316,833
$ 8,249,751
2019/20
$
7,932,918
$ 610,039
$ 8,542,957
2018/19
$
7,932,918
$ 75,444
$ 8,008,362
2017/18
$
7,932,918
$ 278,291
$ 8,211,209
2016/17
$
7,932,918
$ 399,951
$ 8,332,869
2015/16
$
7,932,918
$ -
$ 6,663,338
2014/15
$
7,932,918
$ 1,219,018
$ 9,151,936
Old School Station, Technology
(Kalispell G)
(expires January 1, 2020)
Fiscal
Base
Incremental
Total
Year
Value
Value
Value
2020/21
$
390
$ 92,647
$ 93,037
2019/20
$
390
$ 89,170
$ 89,560
2018/19
$
390
$ 88,448
$ 88,838
2017/18
$
390
$ 106,887
$ 107,277
2016/17
$
390
$ 94,851
$ 95,241
2015/16
$
390
$ 95,864
$ 96,254
2014/15
$
390
$ 111,723
$ 112,113
Glacier Rail Park TEDD
(expires January 1, 2032)
Fiscal
Base Incremental
Total
Year
Value Value
Value
2020/21
$
7,057 $ 242,333
$ 249,390
2019/20
$
7,057 $ -
$ 5,409
2018/19
$
7,057 $ 541
$ 7,598
2017/18
$
7,057 $ 619
$ 7,676
Source: Based on information provided by Flathead County and the Montana Department of Revenue
Note: Property is assessed by the State Department of Revenue every two years.
Downtown TIF
(expires January 1, 2035)
Base Incremental Total
Value Value Value
$ 1,665,094 $ 34,523 $ 1,699,617
Old School Station, Industrial
(Kalispell H)
(expires January 1, 2020)
Base
Incremental
Total
Value
Value
Value
$ 126
$ 14,840
$ 14,966
$ 126
$ 14,841
$ 14,967
$ 126
$ 15,782
$ 15,908
$ 126
$ 18,751
$ 18,877
$ 126
$ 20,764
$ 20,890
$ 126
$ 20,764
$ 20,890
$ 126
$ 22,757
$ 22,883
Unaudited statistical section
156
City of Kalispell, Montana
Westside Tax Increment District Comparison to City Taxable Value
Past Seven Fiscal Years
Westside TIF
(Kalispell C)
(expires January 1, 2038)
Incremental
District's Incremental
Assessed/Market
Taxable Value of
Taxable
Taxable Value as
Fiscal
Value of Property in
Property in the
Value of
City Taxable Value
Percentage of City's
Year
the Westside TIF
Westside TIF
Westside TIF
(excludes Incremental Value)
Taxable Value
2020/21
$
214,809,296
$
8,249,751
$ 316,833
$
48,971,275
0.65%
2019/20
$
462,009,037
$
8,542,957
$ 610,039
$
48,088,400
1.27%
2018/19
$
448,463,121
$
8,292,481
$ 75,444
$
42,868,315
0.18%
2017/18
$
430,387,494
$
8,153,865
$ 278,291
$
41,231,226
0.67%
2016/17
$
420,898,376
$
8,268,210
$ 399,951
$
38,018,010
1.05%
2015/16
$
393,088,367
$
6,520,032
$ -
$
37,952,794
0.00%
2014/15
$
340,553,479
$
9,129,813
$ 1,219,018
$
39,521,550
3.08%
2013/14
$
315,211,210
$
8,324,668
$ 394,482
$
39,334,849
1.00%
Source: Based on information provided by Flathead County and the Montana Department of Revenue
Note: Property is assessed by the State Department of Revenue every two years.
Unaudited statistical section
157
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158
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CITY OF KALISPELL, MONTANA
Special Improvement Districts Operating Data
June 30, 2021
Outstanding SIDs
Original
Maturity
Bonds
Cash
Assessments
Delinquent
Bond Issue Amount
Date
Outstanding
Balance
Outstanding
Assessments
1 SID 344 $ 4,520,000
6/30/2026
$1,277,000
$ 11,545
$1,466,932
$ 424,080
2 SID 345 $ 242,000
6/30/2029
$ 132,000
$ 24,429
$ 122,626
$ -
TOTAL $ 4,762,000
$1,409,000
$ 35,974
$1,589,558
$ 424,080
Revolving Fund Balance and Bonds Secured Thereby - SIDs Billing and Collections
Fiscal Year Ended June 30,
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Last Ten Fiscal Years
Revolving Fund Principal
Cash
Balance
Amount
of Debt
$ 263,371
$
3,845,329
$ 268,008
$
3,457,647
$ 281,562
$
3,392,922
$ 283,466
$
3,074,240
$ 285,488
$
2,761,499
$ 288,807
$
2,427,060
$ 292,053
$
2,045,507
$ 296,996
$
1,793,229
$ 221,196
$
1,518,000
$ 222,826
$
1,409,000
Assessment Total Annual
Billing
$ 485,908
$ 471,321
$ 456,236
$ 465,275
$ 448,878
$ 433,302
$ 417,768
$ 329,721
$ 324,327
$ 294,763
Collections
$ 272,308
$ 364,982
$ 187,565
$ 616,527
$ 396,747
$ 379,258
$ 365,721
$ 272,959
$ 253,437
$ 248,302
unaudited statistical section
159
City of Kalispell, Montana
General Obligation Debt Ratios
Last Five Fiscal Years
2016/17 2017/18 2018/19 2019/20 2020/21
Direct Debt Per Capita
259.57
Direct and Estimated Overlapping Debt Per Ca
1,281.12
Direct Debt to the City's Assessed/Market Valu;
0.26%
Direct and Estimated Overlapping Debt to the City's
Assessed/Market Valuation
1.26%
Direct Debt to the City's Taxable Valuation
(excluding incremental values)
15.54%
Direct and Estimated Overlapping Debt to the City's
Taxable Valuation (excluding incremental
values'
76.70°/
City's Assessed/Market Valuation Per Capita
101,382
City's Taxable Valuation Per Capita (excluding
incremental values)
1,670
443.54 355.03 44.74 302.31
2,394.49 2,394.40 1,816.79 2,313.02
0.40% 0.32% 0.04% 0.25%
2.17%
2.17%
1.50%
1.90%
24.97%
19.40%
2.26%
15.46%
134.800/
130.830/
91.640/c
118.31 °/
110,358
110,208
121,000
121,609
1,776
1,830
1,783
1,955
unaudited statistical section
160
SINGLE AUDIT SECTION
REPORTS OF INDEPENDENT
PUBLIC ACCOUNTANTS AND
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS
AS REQUIRED BY U.S. OFFICE OF MANAGEMENT AND
BUDGET UNIFORM GUIDANCE, AUDITS OF STATE AND
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161
CITY OF KALISPELL
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Fiscal Year Ended June 30, 2021
Basis of Accounting
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the
City of Kalispell, Flathead County, Montana, under programs of the federal government for the year ended
June 30, 2021. The information in this schedule is presented in accordance with the requirements of OMB
Code of Federal Regulations, Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards, 2 CFR 200 (Uniform Guidance). Federal awards received directly from
federal agencies and passed through other government agencies is included in the schedule.
Summary of Significant Accounting Policies
Expenditures reported in the schedule are reported on the modified accrual basis of accounting, which is a
comprehensive basis of accounting other than US GAAP and is a different basis of accounting than the
basic financial statements (full accrual). Therefore, some amounts presented in this schedule may differ
from amounts presented in, or used in the preparation of, the basic financial statements.
Indirect Costs
The City did not elect to use the 10% de minimis indirect cost rate from Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Guidance Administrative Requirements, Subpart E Cost Principles.
Sub Recipients
The City of Kalispell's schedule of expenditures of federal awards does not include any sub recipients or
sub recipient expenditures in fiscal year 2021.
162
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
City Council Members
City of Kalispell
Kalispell, Montana
We have audited, in accordance with auditing standards generally accepted in the United States and the
standards applicable to financial audits contained in Go vernment Auditing Standards issued by the Comptroller
General of the United States, the financial statements of the governmental activities, the business -type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Kalispell, Montana (the City) as of and for the year ended June 30, 2021, and
the related notes to the financial statements, which collectively comprise the City's basic financial statements,
and have issued our report thereon dated December 28, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an
opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial
statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements, noncompliance with which could have a direct and material effect on the of financial
statements. However, providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
163
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
W ' . VP-4
LLP
Wipfli LLP
Helena, Montana
December 28, 2021
164
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
City Council Members
City of Kalispell
Kalispell, Montana
Report on Compliance for Each Major Federal Program
We have audited the City of Kalispell's (the City) compliance with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a
direct and material effect on each of the City of Kalispell's major federal programs for the year ended June 30,
2021. The City's major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs.
Management's Responsibility for Compliance
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of
its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs based
on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance
in accordance with auditing standards generally accepted in the United States; the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred to
above that could have a direct and material effect on a major federal program occurred. An audit includes
examining, on a test basis, evidence about the City's compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination on the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred
to above that could have a direct and material effect on each of its major federal programs for the year ended
June 30, 2021.
165
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our audit
of compliance, we considered the City's internal control over compliance with the types of requirements that
could have a direct and material effect on a major federal program to determine the auditing procedures that
are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major
federal program and to test and report on internal control over compliance in accordance with the Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect and correct noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of a federal program will not be prevented or
detected and corrected on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
We ' I LLP
VP-11-
Wipfli LLP
Helena, Montana
December 28, 2021
166
City of Kalispell, Montana
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
Section I: Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
Are any material weaknesses identified? Yes X No
Are any significant deficiencies identified not considered to be
material weaknesses? Yes X None Reported
Is any noncompliance material to financial statements noted? Yes X No
Federal Awards
Type of auditor's report issued on compliance for major programs: Unmodified
Internal control over major program compliance:
Are any material weaknesses identified? Yes X No
Are any significant deficiencies identified not considered to be
material weaknesses? Yes X None Reported
Are any audit findings disclosed that are required to be
reported in accordance with the Uniform Guidance [2 CFR
200.516(a)] Yes X No
Identification of major programs:
AL Number and Name of Federal Program or Cluster
21.019 Coronavirus Relief Fund
20.933 National Infrastructure Investments Discretionary Grant Program
Enter the dollar threshold used to distinguish between
Type A and Type B programs: $ 750,000
Is the auditee qualified as a low -risk auditee? _Yes X No
167
Section II: Financial Statement Findings
There were no findings related to the financial statements that are required to be reported in accordance
with Government Auditing Standards.
Section III: Federal Award Findings
There were no findings related to federal awards that are required to be reported in accordance with
Government Auditing Standards.
Section IV: Current Status of Prior Year Findings
There were no prior year findings required to be reported in accordance with Government Auditing
Standards.
168