A revamp of Whitefish High School could

get a boost in funding if the city chooses to use its tax increment

finance district funds for the project.

The Whitefish City Council recently

held a work session on the matter. The council has asked city staff

to research its options and the process necessary to allocate the

funds to the school district.

Whitefish is deciding how to spend its

TIF funds over the next nine years. The TIF district allows the

city to generate revenue based on property values and use the money

toward areas targeted for improvement in the district. The TIF fund

is expected to have a cash balance of about $10.7 million in 2020

when the district ends.

Two main methods of giving money to the

school are being considered.

One would be for the city to advance

the money the school district is scheduled to receive through 2020.

A second option would be to make a direct contribution to the

school.

A third option, that seems to be least

favored by the council, would release a certain amount of tax

increment funds to all the tax jurisdictions that contribute to the

TIF fund.

The favored options would likely mean

about $4.8 million could go to the school. However, the council has

yet to designate exactly how much, City Manager Chuck Stearns

said.

“They’ve made no final commitments,”

Stearns said. “Some of the council have different ideas on the

desired amount.”

The TIF district does not include the

high school. The tax district boundaries would have to be altered

to include it, a process that would involve public hearings.

Council member Bill Kahle said a

quality high school is important to the community.

“If we are looking at expanding our

economic base, a strong and viable high school is critical,” he

said during the work session.

The Whitefish School District is

proposing a 120,000-square foot high school remodel is projected to

cost $19 million. The plan would renovate 40 percent of the high

school and replace the remaining structure.

The Whitefish tax increment district

began more than two decades ago. Through an interlocal agreement

the school is given its share of the increase on residential

properties.

The school district receives funds

annually from the TIF district. This year’s payment was

$600,000.

Typically the district has received

about $200,000 to $300,000, according to district clerk Danelle

Reisch. The money has been used for remodel work, roof

replacements, resealing of parking lots, heating and cooling

systems and adding classrooms.

“We’ve always used it for capital

expenses such as facilities,” she said. “This year because of the

amount of money the board decided to use some for professional

development.”

The school district has already used

some of its TIF funds toward the high school. It designated

$212,000 toward matching money for a grant to renovate the gym. TIF

funds have also been used for Steeplechase Development Advisors,

the district’s consultant for the project.

Bayard Dominick with Steeplechase said

the TIF funds could help toward the $4.5 million in alternative

funding the district hopes to raise to bring a bond request to

about $15 million.

“It will start a snowball in

alternative fundraising that will help us put a dent in the bond,”

Dominick said.

Some audience members seemed

unconvinced that giving the school district a portion of the

revenue is the right choice.

“I’m not convinced using TIF is an

appropriate use of those funds,” said Paul Johannsen. “If you’re

talking about giving $3 million to $5 million to schools, then you

don’t do anything else for the next five years.”

During the work session, Stearns

cautioned that state legislators carefully monitor TIF funding.

“We could do it legally under the law,

but we might face backlash that [giving money to the school] is not

the intent of TIF,” he said. “We don’t want to kill the golden

goose.”