Kalispell Public Schools trustees Tuesday night heard good news as they were presented with a “better than anticipated” preliminary budget for the 2012-13 school year.

Increased enrollment, early retirements, a mild winter that lowered utility costs and a recent school-funding lawsuit settlement factored into providing additional revenue, according to Superintendent Darlene Schottle.

“I’m actually pleased for the first time in a number of years that there are currently no recommendations for reductions,” Schottle said.

As a result, two levy requests — rather than three as initially proposed — will be on the May ballot to address facility and technology maintenance and elementary-school overcrowding.

Trustees unanimously voted to seek approval of a five-year, $4,127,915 high school building reserve levy and a $211,500 elementary operational levy.

If it’s approved, the building reserve levy would cost individual taxpayers an extra $10.20 a year for a home with an assessed value of $100,000.

With voters rejecting high school building reserve levies over the last two years, the district this year used $180,000 from general funds — primarily used for educational needs — for basic upkeep of facilities and technology infrastructure.

“It killed us working without a building reserve,” trustee Tom Clark said.

Flathead High School was pinpointed as a building people are taking notice of for its deterioration. Building reserve levies help pay for essential maintenance such as boiler repairs, roof replacements, replacing windows or improving ventilation.

“I think that sometimes you really have to see things are not going very well before people step up,” Schottle said.

The elementary operational levy, if passed, would cost taxpayers $5.83 annually on a house with a $100,000 assessed value.

The levy would begin to address elementary overcrowding by providing additional staff support in crowded classrooms. The levy also would help down the line as trustees begin to look at adding additional classrooms as a long-term solution to elementary overcrowding.

Since the state lawsuit settlement provided enough money to cover the projected $126,300 high school budget shortfall, trustees decided in a 7-2 vote not to put a high school operational levy on the ballot and instead focus on passing the building reserve levy.

Some trustees such as Mary Ruby, however, remained concerned about not requesting operational levies to support staffing and curriculum needs.

“I’ve not been happy about not running an operational levy for the last five years. We’ve gotten out of the habit. As a result, we’re in a ditch that we’re not getting out of very well,” Ruby said.

In other school board votes, trustees voted to enter into a cooperative between the Kalispell Elementary School District and Flathead High School District that would allow the transfer of money between the districts to address needs of aging facilities through June 2013.

By entering into the cooperative, Kalispell Public Schools is slated to receive $20,000 in one-time state incentive funds.

Reporter Hilary Matheson may be reached at 758-4431 or by email at hmatheson@dailyinterlake.com.