Kalispell budget not expected to raise taxes
Seaborn Larson | Hagadone News Network | UPDATED 9 years, 2 months AGO
The preliminary budget for the coming year is not expected to raise taxes for Kalispell residents, according to a memo from City Manager Doug Russell to the City Council.
Russell is recommending that the city lower property taxes by the same amount that property taxes will be increased by the rising cost of health insurance for city employees.
“This amount would be allowable to be levied in future years if circumstances require it,” Russell said in his memo. “But for [fiscal-year 2017] our property taxes will be neutral to the taxpayers of Kalispell.”
Russell said in an interview that health insurance costs have increased by 7.3 percent, so the city will decrease the general fund taxes by the same amount.
“It’s just a benefit to our property owners,” Russell said. “Council is concerned about tax peak and just wanted to ease that burden on our property owners.”
The 2017 fiscal year budget is currently proposed for $68 million, up from last year’s $50 million budget. Russell said the boost comes from taking the $10 million federal transportation grant and $1.4 million youth athletic complex grant into account. The city council also committed $4 million to matching funds for the transportation grant last year.
“The increase we’re seeing this year is recognizing the revenue of the TIGER grant itself,” Russell said.
In personnel, the city is proposing 6.1 new employees.
The budget includes two new police officers, which the city plans to fund from the same grant program that already funds a Kalispell police officer added last year.
Russell said the grant to fund these officers expires after four years. After that, Russell said, the city will transfer money from the capital account to the operations account that funds the police department.
Three other additional positions have been proposed for city departments as well. The building department expects to add a full-time inspector position. There is also a new employee proposed for the parks department to be split between operations at Kidsports and forestry departments. Another position is proposed for the street department, which hasn’t added a staffer since 1998.
Two part-time employees would be added to the payroll as well: a records clerk and an administrative assistant.
The city is anticipating property tax revenues to increase due to growth and development on the north end of Kalispell. According to Russell’s memo, the city does not expect to see that same level of growth in 2017, but an increased need for services in the years to come.
General fund expenditures are also expected to increase by 3 percent from 2016. Personal services, such as salaries and benefits, account for 7 percent of general fund expenses.
The budgeted amount for ambulance funding is dropping after the council decision earlier this year to begin charging for medical equipment such as intravenous lines and oxygen.
“The main thing is we’re happy that we’ve been able to address some service delivery needs without raising taxes,” Russell said. “We’re meeting some of the areas that we’ve heard concerns about and we’re able to approach that.”
Russell said the city finance department will continue to refine the 229-page budget document before the department presents the preliminary budget to council in June. An public hearing will follow in August before the finance department recommends the final budget.
“We’ll finalize respective things as they come up,” Russell said. “The main thing is we wait for the final valuations from the state that identifies the number of mills for taxation.
“We’ll continue to refine it until then, but nothing major is anticipated.”
Reporter Seaborn Larson may be reached at 758-4441 or by email at slarson@dailyinterlake.com.
MORE IMPORTED STORIES
Kalispell City Council poised to vote on $141M budget
Daily Inter-Lake | Updated 1 year, 11 months ago
ARTICLES BY SEABORN LARSON
Flathead Bank acquired by First Interstate
First Interstate Bank on Wednesday announced it is buying Flathead Bank for $34.2 million in cash.

HUTTON HOEDOWN: History revived through family reunion
