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COMPREHENSIVE ANNUAL FINANCIAL REPORT
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l` �, � OF KL
1 v p OFCONTENTS'
Letter 6 ..ail asGovernnient Finance
w,a ,,' s. li °r e of i w :,
0a l110ity
,x l Elected - Appointed , , ,
Independent Auditor's Report 1243Management's
M.I o N t S.Sion and Ana .I ar ssj ! **rMP N,Wi� �N'� V � 9,XP W'+( NbYrdPo',: '»Mb d r '+b 4W"' �M'a?'M6N+ 4M i
li`"i isl„ t
Government-wide
,,t d Flinandial <
q
,. "'" t iw .
Statement ;f Net ,Mu N�a �w� ��NY!�+��u ?p%�J ��N'o �I��r 4W NCh�NAttr�'ENV'+�n1��Eh,��#�b'riN�i�'7,��N�V M���M �➢D�A9��r,M'A���bN"���Y!n+!��'�ti �O�i!�+ANY%�^q��aM',h��o���'S!k�!�i �3uNrr�4b��Y�NY >I�A&�:�1��7�W��'I:�+����`
Statement A"�u� t iv �'�W^��W'kA+��%G��S"��b �w�M!���M�uYr �M�n,V, IPo��a �NM'1�!�'N�'rdk +'�M��'MF�'t'i�'�MPo ��^i�1M�r�N��gYa��aN4+d���NW%�'dN �4k�n��w,���tl�u��B,'M'N'#'�pkN MW,M!�+FAX+I,KK���4I,Im'�+��+',�MIkM@!�'�b�A'++NNE+,�r'„=Q&�+�MI�,�V,�a��l'r+4��r+'X�^�
29
Governmental Fund Financial Statetnents.-
Balance Sheet- Governmental Fit N �3
Reconciliation a l Sheet — Governmental Funds he Statentent of Net Assets 311,
FundsStatement of Revenues, Expenditures, and Changes, In Fund Balancies-, — Governmental Funds 32
Recondflial tion of the Statement of Revenues, Expenditures and Changes "in Fund Balancesi -
Governmental u
Propnietary"
StatementStatement of Revenues, Expenses, and Changess lin Net Asssels — Proptiliets qj, Funds 31.5
- Proprieta "y Funds 36
Fl*duciaq Fund Finandial Statements,:
Statement , F t Ass- Fiducliat7y
37
Notess to r 0,
the Financial , tr
Requirts,J Supplementary 106rmatlifon other than Management' Di'scussion and Anatysths*
S et'l „ le ofFund lingmop t o -C n" i s Others , ployment
Heal, c 1 w L �JY�aMk"ta` k 'hM'�btlE 1'N `MMY!IW.n!XfF NW"N9M yA"�,WI'�M7'�pba ,dim' Btl4 'k'1N% ENe '1'XbAM�Mpa! "'�M ,MARi dip'EMI`# ,; .r IMC�and+M."UY"M '�MY+, ! +WW"!1 '216n'Id' I}+�pl' "AWnANh �&�k9'!; „,1'.,>< 'I�,g l`V %; ''p 'M,ry"�ry"+'' '#' , �Mlb' NdkI IINB',4 '/Go". p'IM(h+gC"N�1�ple @ 1f�6d6 fop' BM�'!IWk�'III' 'M fi(dNif'I Mlb b`CNN' "+CIN�L,�Yp' „'td6"�' `'"S1 �b'MN'�b'i'.W ` k 'MNh dEb' '! I„ 1�;4
70
i , i Revenue Funds IMWd .,1 9 ' m' ,I S; I wI �Po' W,M� tl' 9' nXAIX >q��� y d 4C,�+' '
BudgetarIII' CompwnisonSchedule General Major
71
Supplemental l Information.
Comblialing and Individual Governmental Fund Statenientsand S
Combining Statement fRevenues, Expis I r lilift :nBalances 'iPoWWWWIVr.
Noum UlGovernmental IrVIIII,I11
,
Budgetary Comparison S� , l
M nu t S im'�wd Funds .
89
IrIVY ,., / J V ! ule -
Budgetary
OI
unds
115
Combining X i° a l Propnietary Fund Statements-.,
i.rce Sheet xmwl- N 'n, ° J W y Funds
r"oIbIl r 101 Balance
6
J✓m;,b Expendb
Combining
Proprietary ipWW,+'d&+'°,hU^Mk�NM NMb�Mo''Y"Aldh^!'41'bm"XN":'Mfk}'NN�h4Vh"!d%%'P`'q)N"Ik"h�PM1lWi,',✓&%'"N'Po`;,YN%'�Mw'',p'!,•''y'�Iq,"�GM'nNW�6b "Mtary'�!kA IX&'M1m,'W''+Ida'fN''a�NFM'IW'MN'!I'NPpNM'4b'✓XPi'h''nrrl lNWf �Mh'N6r'M1W�"'"'+1<UdN";MG"1�YW"A'Nh'b"',dN`�d4''nN%!'Mp7M4""�'�W')!N7';m",'�M!'
, 17
Comb,lb , Pd:. Statement Cash 9 MPoMW d%tl, ; NMI 1'. rr � .Yf o N ,.',.!+'fl�'"''b'N'N%Ni,V'"'n'>'"%''+'F/'+'',
118
Combinit,,ig and Individual Agency
und Staten,"wints.*
Statement Fiduciary
IIri
;cI
Combiningw .t of t ,uA, ill e Agency Funds
i
Individual - 1 N a
Statement o(Cash Flows— KalispeU Parking it121
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C , . O ,ark S, ,Wrr a ,,,
A /( ,4 'I,,,, F i,✓., A,,. DYOm i. , REPORT
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r ,lw,�r. l . �'w.aJ � J,,�r wwa.,., r
Neta r 2 ,rm "mn rss; .. AMP'�'e'nW�.... !/... �&i.'..Md..rI.�M;.,.....,.' �'J' '�r�.;...,#* .,*,*§+ **,*4***,,�wak*,##'*M�'�"'nW,***#,'*�r*,l* ***,A'**fir �A,**, ti� m #,#* #(A',* ,*,,,*,**,**i** #ik*,+*,'#N'�o.+ ***'# ,J*#/�***#� h= ***,J� ' '
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Changes in , Assets 123
Fund Balances Governmental I o I ', I
Changesin Fund Balances, Governmental
4PoFunds
um
Revenue Capacity
m
� t Wof"Taxable,,�rwma,wwrwr�wna�ucno�w"wrM�aau�
DirectOverlappiing
Property 127
PropertyPrilincipal
Property"'. >fAl Levies and N �'!�, JNA' Mgr...'' '��i'�'b 9�b'XM'I IW�''PlndN+NMF M1YW'M�N�'�M'!�N;'dp,�,'.'�,', J,N'k !WIC'1',NA M'�'d�N �'pW ;W,I;'W,!�I;',µW",,,�!'+"4",�II�!�N"1'�-!,�"'Wi!W��M.I'1'N'�IXfi,�31iP„„µJ r�, Iglg Ik�,dYh i�'"dW nMC yW",�"IP&!pP ��'�„�,dM'lpb'A5�'k'd&!�.'I�I,dW'bYN rtW I'NN:'P� 'ry�"„�MXd MM'J'�YYk-9'd'%@'�'^9b BMW A'�' !�„�P' ;WL>d'X".IIW�N,'W! N��,N 11X"dM, Mp?�dMn'!M1 M'kY 9'IM 2 J.
Water
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ter— Sewer Sol ` Y Customer �,� � �� � � � �� � ��,��� � �� � �� �� ���� 1� � � ���� I� ���� �� � �� �
Water an Sewer ttWo .*1#1#1##XM+'MM#*##*'****'#"#'"tlNbV.' #41.
i of Outstanding
,W
:" V' �.�' sng,..bt ,:!��'�u+�..,�"+�,a��'r�'J+��+��ti:ICJ;+�,m,��!��"dW,�,''��r�"'�Nl.�h+��,+�''+��'�f,,�'a�'�++�'�,�Jm�+a�a�J�W+�'"re'd-+�+��Nr�-�":�''r'+�r+�•!��'J'�IJ�,+�+!��I a ,.
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Ratio*,; General Bonded ", Outstanding J+'-4ws.,'i.,Iq,,N+>I�b;a..:'ah,++',Wr+INII�M'wJ,al'I'ir I!.fir„!r,,r''+VM +'!,ta�'"al+%+ ?&�
3
�J Information
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134
Pledged
l, t nue�
rcr„"'�u DWI,"'Iw'"7N+'WJ!I''4V,';"''."J",`,ilk+4b"I';M''I,'-!-,'DWI'`'„"'',,;J'J'i�NWb�,`JM aNN:�IW "J''Nk1"J�'I IWµ'M iaiY.�l"'�q lMik'r''r!N,,'aW''e'',VI'''-t'dMm,'I'''w'!'W�'''4W 1'1'!'W"'W",I.: 5.
f)etnographlicsand Economics
Dem"fir mi,� ory f� JJ.
W@" r nd Economic fJN,W I � �'�.i'�'�I�"�'�,"XY+�"�',?"�,p",'�II�I�'!�'+!�"',��1,�.,';�'�y"�"�"'�"��^�"�,"�'"�'!',I�c�"'„�'!�'4b"KKb dM'�'w�NM�+�'!W,"'�M✓'�I"��F �W"�'�'Y"aWr'MYk,�N'"+�'+�''^';�'�1�"���"I!�b".I�",�V �b'�',�"�,"'�y"'",'�'�„'�I�"�J�'�KK'NX''!,JA�„�MNn�"�'�'�:��,y. , '.�
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err
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c E ploye ss #'VW**#0*#*#1#/#1rb'NA#*#^###* * ##4Wi" /# +'N
137
Operating Sectioll
Fult-timeEquivaknitClity Government Entpby loyecf&ss 138
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INDEPENDENT
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rvrv'yp. m iiir�,. N SCHEDULE
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��,Wi u 1` of Expenditures
Note,s to the Schedule of Expenditures of Federal Award, 141
Independent Au" it"s Report C oJ lial Internal over Financial " i g
base d on an AuditFinancial St teententa �r l i� Accordance i, Government
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Auditing Stand s � *#'� �a,� ,
ReportIndependent Auditor's Compliance'W"i h Requirtinents Applicable c l Major
Prograin and Internal Wawa' trover mplianre to accord an ce'with OMB Circutar 1
Sc lti, of Finditigs, and si'.,ioned 146-147
Report on other Compliance, l, and Internal Accounting Control " i Matters; Report on o Audit Report R"„com in end at
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1,,)e,c,/embcwr 28, 2012
C"I*,ty of Kal,
Post Office Box IMKalispell,
Tele rm 1, 4 , i l758-7758
To the Honorable Mayor, membcrs of the City and it � �v �te
No
e
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Ind ,)endent Auditor
Den,111*11g, Downey & Ass,("",,,wiates, CPAs,, P.C., a firm of 11"Cen/s"ed, certified public accountants has
audi"ted the financial statements of the City. The� goal of the independent atidit was, to provide
reasionable assttrance that the financial statements of the City fb, r the fiscal year, etided Jun,/ 30,
2012, are tiee of niaterl"11,111 m"isstatement. "rhe i/ndeIxmdent audit M*volved exatnining, on a test
basis, evidence amounts and di"sclosures ill the financial statements* assessing the
accounting priinciples used, and sligni-ram, cant estMates made by management". and ev'aduatt"119 the
o'N,rerall financial statement presientation/. The 1*11dependent audlitors concluded, based "t,11w the
audlit, that 'there was a reasonable bas"i's ,t,,'Z)r renderi an 'unqualified optmon that the, City's
financial statetnents fi)r the fliscal end, ed Jime 30, 2012, are, f�,itrly presented lin contbrmity
Rh ,.e I wl , US GA/A/P. "Fhe inde 'is presented as a componximt of the finan6al
1, p:ndent audlitor's re, port
sect"i'don of th"lis report.
Federal Sinefle Audit
Tlie lindepemdent audlit of the finane"I'al statements of t1le City wass part ofa 'broader, federally
mandated "S'lingle Audlit" designed to meet tlie sp cml needs of federal gvii/ntor agencies.
As part, ofthe Clity's siingle #cmd1'*t,. tests are made to detern.,uine the adequacy of the internal
control structifire, illcludlil,i,g- that por"tion related to :I J,rderal awirt/rds. Tests are also made to
detert'nille th, t the fiscal year ended Ju:t/i(./,%, 30, 2012, provided no, titts-tances of tnateti'al
weaknesses fill the linternict,l control system or vliolat o , of applicable laws tuid, regulations.
0 # #
"I'lle Gity is requ"ired to tmderf,,�o an antmal sillgle at,'idi"t, 'in con't' rniity with the 1:)rovisions ofthe
Single Audit Act of 1984, as an,,iended lin 1996, and the U.S. Office ofManagement arid Budget
Circular A-133, Aud*ts of"' States 1,,,(:)ca1 Govern/ment s on-, ?ro fi � ............ QjMizat ions.
wNNwatxi NNo i , 'it
In,format"ion related to thi, sillgle audlt, includm*g the s, hedule of of/1"iederal awa/rds
a nd auditor's r ports on internal controt and coinpfiance with applill"cable laws and regulat'liolis
are Included lill the sli'llgle audlit w;r ction of thisrejvrt.
Transmitifalf Letter
GAAP require th/,;�o, tn/ nt#,tgetnent provide a narrz'it live ilitroduct lon, 0VerV1,eVv,,, and analys'lis to
accompany the hicas"ic fina/ticia] statenientsiin'th 1"brin, of'Managetnent's Discu sionand Analysi's
Thi's ,l ':ls, r ad inletter nmsdeox)mpenieMxut
conjunctAsa ion with 'It. The City of Kalispefll's MD&A linimediately precedes the City's hifisic
fina,nc, ial statements within tl,,iems rep ox1.
Profile of the Cily af Kalis ell The Ci:ty of Kallispeill, incorjx),rated, jill 1892, lis the cottiity s-t;wat of Flathead County loclated M* the
western part of"' th State of'Montwia. This histofically has been otie of the top garowfl'i ar,eas in
the state. T'e, Gity of' Kalisp. eAl is emjx)wered to levy a property tax on tx)th real and Jxrsional
properties located within/ '*Its Ix).undaries. It also ilis emj,,io,,,,Nvered by st(ate s,;tatute to extend its
corjx,)rate 114,Vn'iits by annexatlion,,,, which occurs x,,!r1"od1*ca1,1y when deemed, appropriate bythe
gOWMing counci
0
icy -making
e, Gty of'Kahspell is opercr,�irtedtjllder the council-inanager tbrm, of goverm-nent. Pot*
0
atid legislative, at,ahoriity ctre 'vested ij:i, a governing council consisting of the mayor and eight
other members. "l"he governing council, 'i's resp(-,nisible, among other thlings, pas,,,;sing
10, f 1"'he C*ty
ordinances, ad(:),pti.ng the budget, aprx")/Intling tx)ards, a,,nd, furling the C:14:y Manager. 'I
in
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11W, 'I i d Ma, nager is respoiisiible /for ciz:;irry'lilIg ot�it the pollicies and ordinances of t1iie goverti-iing cottnci, , 'til,
t`br overseeing the day-to-day ofw,"%,rations of th City. TI'le CO'Lincil, 1"I's elected on a, not,�tpartisam
basis. Cottn,,c1iJ members I. by d-istrict to serve 1,"bur-year sta, ggered tenrls, with /1" ur
cot,tncll meinbers elected every two years.,;. ""Re mayor is elected at large 't,'Z)r a tb"tjr-year term.,
All signIfficant operafions,,, of th,rah.City, asl defined 'by the Nat'i'Onal Council of Govern/mental,
Accounhing, Statement #3, havc included in the accompany.ing finuriincial' statements. The
City provides a 1,"bil range of m,un,*tci,j,,,)ad serv4ces 1411cludi"ng jx)fice, fire, buflidt'lig, 'Platining and
:7.k)n,,tng, city court, parks and rccreatioti, streets,,, commumty devrelopmcnt and, gcn, ra]
adnitistrative, scrvwess. 1"'he Clity also operrates as Enterprise funds: waticr, scwer, solid wasste,
and, ati a* rt.
1//Ir,p()
In addftion, the City presents finaticial datafOr two component unlits on the combl"'lled statements.
"Flie, Dow,,ntow,,r'i Rt.,tsliness ltiliprovement Distr'ict is a discretely presented gov rtunental type
coniponent 'unit.Kafisp 11 Parkltig Conimisslon is a, discretely pres Wed proprietary type
com-,),n,L%nt unIt. Fiscal yiegrtr 2012 was the year of ojvrations �fi.:)r the Kafi*rx*,11 Patti sng
# 10,
ommission. Op riation,,s of the Kalispell Parking Commission have 1:v, en blended into the City
of Kalispell Pollice Department, patl, of t, City's gene ffi,nd, by Ordinance 'No. 1709,
December, 31, 201 L
The annual budget serves as the fbandation tbr the City of ',K(afispel I's finaneial planning and
control. All departments of' the City, of Kalispell araddrequired, to submit requests 1`6,r
pr," ' I he start appro iation'to the City Mama ger. The Oty Manager uses tli,, s;je requests as t tng Ix":)int
fibr developing a propo, sed budget., "I"Jie City Ma.,nager then presients this prop(",")sed budget to the
H t" r rev* Nv. "I he council is requi-red to hold public he;:triings on the projx)sed budget and,
counct I I
to adopt a final budget. The appropriated, budget is prepared by ffind, ffinction, anddexartt pa nent.
Budgetary control is decentratiz d to the point thir,,,it lind"I'vidual department heads a,re resj�x)nsible
/1br exl/) nd"ing with"in budgetary litinits.
Budact, to Actual Comnan*sons
"'Flic State niunl*cipal budget 1i stipt.datesthat money, other than pay'nientstirom agency nd, is,
may not tv drawn f'ixini the treasury of a, tincabity except put"suaint to an appropriati,011.
Therefi)re, a legally adopted /budget I's requ'lireldfbr all ftinds, wl"th the exceptlion of a,gency t"Unds.
e Ci legally adopts a budget 1,"Z)r the required flunds. Consistent with past yeairs, the City
esta 'blished the legal sp, emdi ig leve I act the f1ind level f 6. r th fisca] ycar 20 12 bl"Idget. "I"he city
I
Manager and Ei"ance Director may maks of appropriatliOns withi,n a, f1l,nd. Transt,` rs
be.twee,t,'i fiUnds, h(:)wever, r quire approval of the Clity Cotined. Budget-to-atctual comparlsons
ided in thiis refx,),rt /,for each individuad governinental fitind for wh,ich an appropifiated
are pro vt 1, 1 1 1, 1
annual budget eo,enenti/I f"und and the conimun"ity development loan
ti-t of the requ'i ed supplemetitary "nto IT 10111.
revolN,rl"'ng tt'tnd, the coniparison is pat rniat
0
Other Postern
The City of Kalispell reported the "i'lillph"ed rate suhsaidy" Iiiabi]-ity,, i ed under (he
,, requir
Governmenta] Accounti.nIg Sticuldlcirds Board (("J"ASB) Statement No. 45, lin th,i*s finmicial report
, a ind the related fitnanc*al statements. Alffic'migh "the City rej:,)orted thts liabi�aNfity, at:nd related
ex penditures, the Oty does not agree thirit thisreprese,,nts a, legal fiabdRy and, fiu rther bel eves that
the presentatioit"i of this ay in the ft"nanc,'ta] statements w1*11 eventually be, ni "I's lead ing to the
I
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tis rs of the statements. 1n th"is, tlie'� fi:)ut-th, 'y ar oft*mple,entation, the recorded of is subsidy""
liability I*s $755,229.
"T"he City Plans, to contint"te funding 'the eniplo,yee health tinsttratice plan on a "pay as you go"
bas'llis, and does not plan to fi-ind this hiablility. City nianagenient fcxls 'it would be fiscally
Ne 'to ta,ke an aniount equal to tl"ie actw,",ir* Ily detennitied I*ab*l*ty and ph"icc it in an 'I, rre sp. ((,>,tis 1, ja I I It
'ble trust tiundthat would neverbL,% used and would most tilkely, t*ncreass ays the Oty; and
irrevoca I
the related number of employees serviing it.,, co-tit"Jintiel.s, 'to grow. Retirees can leave t he plan at
ianytinie and the. Clitywotild li, ve'unwisely usedfUnds collected from lits citl*.Zanss. Insurance rates
luave b en historically s,,et so each plan offiered is fiscally' soundp Rates can be changed and
'N,mefits aftcred at an' is to ens,ut, the plans rcniat*,n pron en -I fttnded,.
yt I" p Y
Because the City will not Ix'% ,f/Undlillg thlis liability, it w"I"11 continue to tincrcase, 4,ind w!"thina ,f`"w
yea:rs, the fitnanclial statements will reflect the in,,,i,pact of a very large "'imphied rate subs"idy"
11"ability tluit does n(",,,,,)t have legal substa.i'ice. Ma,,tiagement does not 1"�;el it ha. legal substaai�ice as
noth*nag *n state law or atiy cotitrad tml agreement requ* es the 6ty, 'to oft' r the sitame rates to
rettrees, spomses and their dep nd" ents tois oth, r part/icipants. Tbe State of'Montana haas. submitted,
a request to have GASB recorisidertt"ie requirenient to rerx.)rt the Iniplied rate subs"idy. "T"he City,
ofK.#:,t11*spe11 agr es wli'th ki,nd supp(,,,,',Yrts th'is request.,
'10
Factors,,, AtlfectinL;P f inancial Condition
'e", initnuti,, ion -wide economic downturn.
e (".1"ity of Kal 'spell, liass n e to the efkcts (,,)f the nat'
Two, of the Flat/h/ead Vallcy"s core 'indtistn"es have lx,/�,eti hit part licu, ]arty hard. The logging
indu/s.-try "'I's vi/rtually sbut down, which tricklcs do,%Nr/ti to clostzeslin relatcd industries. Columbia
Falls Aluminum Cotn/pany, whlich struggled to continue op, ratik:ms fZ)r years, isriow close;& The
City has, however, started to st*,e, an uptick in new con.,struction. ant"'I hotne /ft:,,)rec1osures have
slowed somcwhat.
Montana cx, °l*enced a, population m*creas :twc%.cn the 2000 and 2010 ccnsus of 9.7 percent.
Kalispell, however, experienced an tit"icreasse,, of 40.1 1 xrcent, while Flathead County exj:xrlienced
growth equal to 22.1 percent. "1',"'he 2010 population of Kahispell i's 19,927 accotAing tothe-, S.
Cemsus Bureau, which represents a reductlion I-i-om thc estlimated 2009 fmpulatlion of 21,( 0.
The una(,",kiusted unemployment nate t7(,),r th<,,* 2011 calendar year 'for Clity of Kahlispell was '10.7
percent. s compnitresto YL2 p.t.-*,rcent for the 2010 calendar year, T"he most current unadjusted
unemployment rictte avalilable the City of KalliSI/pell (August 2012) is, 8 pexreent. In
cax '[or'n 1, r son, t State"s cu/rrent un mploymen't ratefv*rcent and the tuit'on's *s 8.2p i'vent.
City's unemployment rate has contlinued to iimprove koin 111 perc,,etit tin Janwary of 2011.
Accordm*g to the IJnited States Census Bureau, the 2010 pet. capita incotiie lbr Kalisjx,,311 'was
2 722 1 In 010 liti, flat, lion-ad , is pproximately 10% less than the nation's
4,11 t justed dollars. aThis
est* iated %rcapitainconie. 1.1T pe
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Revenue Growth and Reform Clity, revenues can beA considered statutorifly binifted, c.'ic,/Li,msta,,,"iti*aI or disseretionary. The C`Iky 11"Cols
very fittle con'trol over tof restrlicted atrid cli/rcut'nstantia''I r venues. Aftho,ugh the Clity
14controls' th grow,th or dis,,cretiona ry re,,,,ven,/t,,,,te, it is still sul�ject to ty/pical cominun"ity pressures
flor conservative grow"fli.
Si.111cle November 1986 and the passage of Initliat 'I've 105, which limited cert in projx�!rty taxes to
the 1986 levels, the ab"ifity of the City,to rai,sit: revetwe f'or basic services isincreasingly diffiiculc
legislature, with SB184, lowered tiax, rates fbrciing the City to increcise mill, leNrlies to
mainta"'In'the satne level of revenue. 111e Clit ' Y'S., cash reserires in most ftinds vary, 'h tween 10%
andappr()p *at"ons. State law allaws R)r reserves of 5() 9/o. Reserves prov*dc fo, r cash flow
1,x, *tween tax revenue r ceipts to keep tile Clity 1,`r'om lvivling to N,,)rrow flund s ,,for o'p ratiolls.
Additional /r venues ge,'ticrated by inereays',,ed taxable valuation comew1kh, the additional costs of
31 '111, swrviee at -ea. "I"hAe" (""A"ty, of Kafisp It"s Pol"i"ce and Fi"re Departtnents,, Court's system.
Bulddiitig Departmetit, Pubtlic Works and Pztrks have t`�At the increztsed pressuret'ro'ni tht,:,: in"'flux of
people to Flathead County. "I"'hese pressures iinpact the budgets of all dep;arttnents.
Motitata constiftition, �,,I-nd state law requit', 1,,),ertodic reappra,,tsal of proper t, in the i Y 1 interest
equal tauxartlion (15-7-111, MCA). "I"he State of Montatuit, through the Department of Revenue
# ) "ble t- valuing all taxable rc,�a] and personal property. Once every six years,
(DOR) is resjxnsi L
the DOR "is required by, state lawto conduct a reapprailsla,remil 'dent'lial, coininercial, lindustriial,
agr1cultural and R.)resthind/ property lin the, state.
The most recent reappraisal cycle 1,x,,,,*,gan on Janui,,try 1, 2003 �,;tnd was "vet on,,/ipleted on, July, 1, 2008.
Newreapprat"sal values were used I , i)r prop rty tax pttrposes "i taX'Year 21.1009 (fiscal year 2010).
By law, reappraisal values wifl b phased-,i/n at the rate of one -sixth each year. Statewide,
conitnerclal and residenfil"al erty, values rc)sse 43% cand 54% respectively. In Flathead County",
reapprall.slals resulted in pr,op(,-.*rty vatue increases of 411,Xi) tbr commercial propc%,rty, and, 66% t`br
r eidential property. s! 1
a Ma* 1 0 flat *
!m2rimmaim
)OK d modificaflon and expans*on ofthe
y,lT'he, C " t 1 "1 ttig regarding a, propos I Counc"I field a publ'c 11 ar*
West Side Urban Renewal District. The current District I*S debt fre(,,*,, after paying off th original
bonds in fisscal year 2010. Cttrrently, the City "I's exploriing the f,,x,".)ss1'*bj*1ity of expanding the
distri'a to the east sornewfiat along the, C'ity"s ranilroad corridor. Any cxpans"io-ti w,(,:)u1d probably
include removaI l of" the raitroad tracks and the re/locanion of businesses usiing the 'tracks. T"he
prop(,,)sed new district would 'incltide and create opportunity In j.),art of the City of Kalispell's
downtown core area.
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The compiction of the, Anrvual Finatictal Relvft on a tlirncly basis was niade bythe entlire
,staff of the Finance Department and dic coo, perattio," n of all Citly, d,e.,,,m,,t*.nt.,.,s,,. I wo, uld abso like to
g ive re/cognit ion to dw,, tna, yo. r, goveming C."O and the c ity maaag uncill, cr fbr the* cons*stent
supp, ort, for maiintau`ning the highest standards., 1"I/l/11, t./Iw matnagement of the Clity of Kal/ispe/11's
finances.
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Reporting
C i*ty of'Ka1i*spe1,1
Montana
Fm,-'Its Cori'ip,'-e[,i,,,ens1"ve Am,,"i't,m]
Flk,"i,,.anela] Repor t
1/1.,v the Fiscal Year Ended
J't,,,trw 30, 2011
A Certificate ofAO- i le vel"11 ell t for 'E"'O x ce I lence li"i F"Itianclal
Reportirig is presented by tie Finance Officers.',,
Association oft Unitt'A States and Canada to
govet°'nrnvnt units and public timployee retiremetra,
systerns wl'wse c',':)rehensive am"mal fimarx;Iial
tvport (CAFR�;) ael"iteve the hligjiest
standards irl gover'nrnent accounting
ai"id fit"tancial repo ru", ng.
I
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CITY OF KALISPE14L, MONTANA
TERM
ELECTED 0FF1CJA,1,,,S,," EXPIRES
Mayor Tammi E. ,�„ , °, k
Council
s
j
,,.
-im Atkinson
Ward 111
3
Randy Ken, on
Ward f,'11
12/2015
Wayne w
, N 5
r ida
Ward IV
°
°,
°gym
w s„
rd ,
, ,:
Judge:Municipal Court
APPONTED CITY' OFFICIALS
11
ity Manager
Doug Russefl
Attorney
Charlest,'Iarbafl
my-, fm° ..
City,
Theresa
Chief
Roger Nwsset
Fire Chief
Dave Dedman
Finance Director
Rick Wifls
PublicPolice
°
Uirector
Sus4 G Turner
Parks Director
Michael Baker
Airport Manager
Fred Leisfiko
Planning a c,
tor
Tom i i
DevelopmentCommunity
Human
Resource Director
, o a
eny
City Treasure r
Deb NCI I t
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