2012/06/14 Chamber Airport Ballot CommentsJune 14, 2012
The Honorable Mayor Tammi Fisher and Members of City Council
City of Kalispell
201 First Avenue East
Kalispell, MT 59901
RE: Fiscal Note for City Airport Ballot Issue Options
Dear Mayor Fisher and Members of City Council:
The Kalispell Chamber would like to see the City of Kalispell adopt a fiscal note on the two
options for use and operation of the City Airport proposed for the November ballot. Attached
is a sample fiscal note from a bill passed in the last state legislative session.
City personnel are in the best position to develop such an analysis because they have the
history of operating revenues and expenses and are in the best position to evaluate the
sustainability of future funding streams. Any disagreements on assumptions could be debated
and voted upon by the City council. Without such an analysis taxpayers and voters will not
have the information they need to make an informed decision and are forced to choose
between often emotional and misinformed statements.
Your honest fiscal assessment of these two options is a necessary service to the voters and the
tax payers of Kalispell.
Sincer ly, 1
Jo Unt einer, President and CEO
1 alispell Chamber of Commerce
OFFICE 406.758.2800 • 406.758.2805 FAX • 15 Depot Park, Kalispell, MT 59901
Fiscal Note 2013 Biennium
GOVERNORS OFFICE OF
BUDGET AND PROGRAM PLANNING
Improving tax administration by depositing state
[Bill # HBO111 Title: agency lodging tax in gen fund
Primary Sponsor: Stahl, Wayne Status: I As Amended in Senate Committee
❑ Significant Local Gov hnpact
❑ Included in the Executive Budget
❑ Needs to be included in HB 2
❑ Significant Long -Tenn Impacts
❑ Technical Concerns
❑ Dedicated Revenue Fonn Attached
FISCAL SUMMARY
FY 2012
FY 2013
FY 2014
FY 2015
Difference
Difference
Difference
Difference
Expenditures:
General Fund
$68,358
$69,726
$71,120
$72,543
State Special Revenue
$0
$0
$0
$0
Federal Special Revenue
$0
$0
$0
$0
Other
$0
$0
$0
$0
Revenue:
General Fund
$104,804
$106,901
$109,038
$111,220
State Special Revenue
$34,507
$35,197
$35,901
$36,619
Federal Special Revenue p
($68,358)
($69,726)
($71,120)
($72,543)
Other
($70,953)
($72,372)
($73,819)
($75,296)
Net Impact -General Fund Balance:
$36,446
$37,175
$37,918
$38,677
Description of fiscal impact: This bill, as amended, removes the requirement that the 4% lodging facility use
tax paid for by state agencies is returned to the fund which it was paid from. Instead, 30% of the funds would
be distributed to the general fund. Additionally the federal hinds would then be reimbursed to the Department
of Administration, general fiend, and all remaining funds would be distributed according to fonnula. The
federal share paid to the Department of Administration would be remitted to the federal government from the
general fiend using the statutory appropriation for repayment of federal funds.
FISCAL ANALYSIS
Assumptions:
1. The level of state agency travel would remain the same as FY 2010.
HB01 1 l_02revised.docx
3/31/2011 Page I of 3
Fiscal Dote Request - As Amended in Senate Committee -Revised (continzzed)
2. In FY 2010 all state agencies paid 56,435,677 for in state lodging. This was broken out by 51,054,936 paid
for with general fund money; 52,033,203 from state
special revenue; 51,642,601 from federal special
revenue; and 51,704,939 from other revenue sources.
3. According to Smith Travel Research, the average daily
rate for Montana has increased 2% from January to
November 2010 over the same time period in 2009.
4. The fiscal note assumes the average daily rate would continue to increase 2% annually every year; therefore
the amount of lodging facility use tax paid by state agencies would increase 2% annually as shown in the
table below.
Total In -State
Lodging
Expenditures 4% Tax
FY 2010 FY 2010 FY 2011
FY 2012 FY 2013 FY 2014 FY 2015
General Fund $1,054,936 $42,197 $43,041
$43,902 $44,780 $45,676 $46,589
State Special $2,033,203 581,328 $82,955
$84,614 $86,306 $88,032 589,793
Federal Special $1,642,601 $65,704 $67,018
$68,358 $69,726 $71,120 $72,543
Other $1,704,939 $68,198 $69,562
570,953 572,372 573,819 $75,296
$6,435,679 $257,427 $262,576 $267,827 $273,184 $278,647 $284,220
5. FIB 111 removes the requirement that the 4% lodging facility use tax paid for by state agencies is returned
to the fund which it was paid from with the exception of federal funds so no funds would be reimbursed to
state special or other revenue.
6. The general fiend would receive 30% of the revenue collected from the 4% lodging facility use tax that is
paid by state agencies.
Revenue Collected 30%
FY 2012 $267,827 $80,348
FY 2013 5273,184 $81,955
FY 2014 $278,647 $83,594
FY 2015 $284,220 $85,266
7. Federal fiends would be reimbursed to the Department of Administration. The Department of
Administration would then return the funds to the federal government via the general fiend. In FY 2012 this
would be $68,358, in FY 2013 - $69,726, in FY 2014 - $71,120 and in FY 2015 - $72,543.
S. The remaining revenue collected from the 4% lodging facility use tax that is paid by state agencies would be
distributed in state special revenue according to the fonnula specified in 15-65-121, MCA. This would total
an additional, $34,507 in FY 2012; $35,197 in FY 2013; 535,901 in FY 2014 and $36,619 in FY 2015.
9. The additional funds would be distributed as follows:
FY 2012
FY 2013
FY 2014
FY 2015
LFUT Additional Funds HB 111
$119,121
$121,503
$123,933
$126,411
Historical Society
1.0%
$1,191
$1,215
$1,239
$1,264
University
2.5%
$2,978
$3,038
$3,098
$3,160
FWP
6.5%
$7,743
$7,898
$8,056
$8,217
Commerce
67.5%
$80,407
$82,014
$83,655
$85,327
Commerce for Regions/CVB
22.5%
$26,802
$27,338
$27,885
$28,442
HB011 102revised.docx
3 31/2011
Paee 2 of 3
Fiscal Note Request — As Amended in Senate Committee -Revised
(continziecl)
FY 2012
FY 2013
FY 2014
FY 2015
Difference
Difference
Difference
Difference
Fiscal Impact:
Expenditures:
Reimbursement to Fed Govt.
$68,358
$69,726
$71,120
$72,543
Fundin4 of Expenditures:
General Fund (0 1)
$68,358
$69.726
$71,120
$72,543
Revenues:
General Fund (0 1)
$104,804
$106,901
$109,038
$111,220
State Special Revenue (02)
$34,507
$35,197
$35,901
$36,619
Federal Special Revenue (03
($68,358)
($69,726)
($71,120)
($72,543)
Other
($70,953)
($72,372)
($73,819)
($75,296)
TOTAL Revenues
$o
$0
$o
$o
Net Impact to Fund Balance
(Revenue minus Funding of Expendituresl-
General Fund (01)
$36,446
$37,175
$37,918
$38,677
State Special Revenue (02)
$34,507
$35,197
$35,901
$36,619
Federal Special Revenue (03'
($68,358)
($69,726)
($71,120)
($72,543)
Other
($70,953)
($72,372)
($73,819)
($75,296)
Sponsor's Initials
Date
Budget Directors Initials
Date
HBO I I 02revised.docx
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