01. Budget Message & HighlightsMONTANA
City of Kalispell
P.O. Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7701 Fax - (406) 758-7758
June 28, 2012
FISCAL 2013 BUDGET MESSAGE
This preliminary budget comes before the Kalispell City Council for consideration on June 18,
2012. We have attached to this brief message highlights in the form of bullet items that are
distinctive to this budget.
The City is budgeting to end its 2013 fiscal year with a cash carryover of 15% of its general
budget as it did for fiscal year 2012. Some growth is anticipated to increase revenues somewhat
based upon commercial properties that were constructed in the last construction season coming
onto the tax rolls. It is anticipated, based upon requests for building permits, that this season will
also see some good growth in the commercial sector.
The preliminary budget does not reflect that anticipated savings from refinancing the outstanding
general obligation bonds and water and sewer bonds. We estimate that the savings to the City
over the life of these debts will be approximately 2.5 million dollars. The refinanced debt will be
shown on the adjusted final budget presented in August.
As a part of the refinancing of its debt, the City is seeking a debt rating from Standard and Poor's
which will be available to the public at the time this preliminary budget is presented to the
Council. This rating should assist the City in obtaining a favorable rate in the market.
The balance of the noteworthy budget matters are contained in the itemized highlights attached.
Respectfully,
Charles A. Harball
Interim City Manager
Amy Robertson
Finance Director
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FY 2013 PRELIMINARY BUDGET HIGHLIGHTS:
Revenue and Cash carryover:
Summary Totals for General Fund page 21 reflects a cash carryover of 15% this year and next.
General Fund revenue page 20 Estimated a small amount of growth due to commercial properties that should come
on the tax rolls including Sykes, Applebees, The Sleep Center and other buildings in
that complex. The inflation factor is 1.2%.
Not reflected in the Preliminary Budget is the adjustment for the refinancing
of the G.O. Bonds, Water and Sewer bonds. It is anticipated that the saving over the life of
the debt will be close to $2.5 million dollars. Final budget will adjust annual debt schedule.
Budgets reflect 2.5% contingency for salaries of non -union based upon "me -too" recommendation
General Fund Recap on pages 22-23 includes last year's budget numbers for comparison.
General Government budget:
Increased 911 Center contribution 2% $8,575 to $437,311. Ambulance contributes $30,600.
Increased Insurance costs $15,000 property and liability
Media Budget:
Moved to Data budget to facilitate cross training and to
designate Franchise fee money for media/data rather than General Fund.
City Manager Budget: Finance Budget:
Record $10,000 relocation costs (funds advanced) Reduced for staff change/retirement
City Hall Maintenance:
$16,000 to paint Public Safety Building $5,000 to repair door to police department
Police Department:
Parking $119,422 for a full year (increase of $58,758)
Animal Control $56,860 (funded by vacancy savings FY12)
Patrol car request - 2 patrol and one under cover vehicle (increase of $12,000)
severance $32,000 (1) union wages increased $65,000
Fire Department:
move 3 FTE's from safer Grant - 9 mo. $165,000 wages & benefits
move 1 FTE from Amb. $ 72,000 wages and benefits, reduced I FTE for attrition
Total 29 firefighters, 3 administrators union wages increased $65,000
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OTHER FUNDS:
CTEP Trails -HWY 93 North $127,000
Parks & Recreation Fund:
$30,000 Kubota purchase - replacement for John Deere BOI Loan 5 yr 1.25%
$15,000 Replacement vehicle purchase BOI Loan 5 yr 1.25%
$14,500 - replacement aerator for Sports Complex
Forestry Funds: $20,000 for stumper BOI Loan 5 yr 1.25%
Building Code Fund:
$20,000 for software package
PUBLIC WORKS:
Reduced Public Works Engineering staff and Construction Inspector (2 FTE) split across funds
Light Maintenance:
$115,000 for Bucket Truck used to change lights.
Street Fund:
Capital equipment 445,000 for a leaf machine
$150,000 for 2 used single axle dump trucks
Water Fund - seepages 22-24 Public Works
MACI Grant:
FY 12 Sweeper $202,000 carry over amount
FY13 Sweeper $222,000 and Flush Truck $155,000
BOI 5 yr 1.25%
BOI 5 yr 1.25%
Solid Waste Fund:
3/4 Ton pickup with plow & sander $45,000
Sewer Fund - see page 34 Public Works
W WTP - see page 37 includes bonded project for the Primary Digester Lid and mixing equipment
Westside TIF Capital Project Fund:
$285,000 Meridian/Applyway Road Improvements -carry over
Storm Sewer: capital includes a utility asset management program, storm drain corrections
and South Meadows Phase I & II for $700,000, page 42.
Airport Budget: $10,000 for election from the land sale dollars.
SID 344- Old School Station. Budgeted $100,000 tranfer from the SID Revolving Fund
to cover shortfall in tax assessments. Several of the lots have been picked up for tax deed and
several more are eligible to be called for tax deed by the County Treasurer as of June.
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