Kalispell budget to jump sharply next year

Major construction projects and a growing city work force will push the overall Kalispell city budget up by $15.1 million to $49.6 million.

The Kalispell City Council will hold a public hearing on Monday, July 18, to address its preliminary budget for fiscal year 2006.

The biggest part of the increase, according to Public Works Director Jim Hansz, is $12.3 million for construction at the city wastewater treatment plant.

That money will come from a variety of revenue sources and funding measures (such as available cash, possibly bonding or taking out a low-interest loan from the state). Property taxes won't increase to pay for the sewer project - current sewer charges will be the basis for the revenue.

Taxes will increase, however, to pay for a host of new employees and numerous city projects.

Homeowners whose houses would sell on the current market for about $200,000 will see their city taxes increase by roughly $50 this year. Similarly, a $100,000 home would have an increase of $25, Finance Director Amy Robertson said.

Those numbers are subject to change based on property tax assessments the state determines and submits to the cities in August.

Robertson also stressed that a home's value (and thus property tax assessment) often is lower than the market price.

The above numbers also do not reflect potential increases in special assessments that generate revenue to pay for services such as lighting or street maintenance.

Under the proposed budget, Kalispell taxpayers would pay an extra 13.5 mills, including 10 mills for construction of the new fire station.

The total mill levy would be 168.5, up from 155 last year - an 8.7 percent increase.

Voters in November 2004 approved a $3 million bond issue to construct Fire Station 62, which will be built west of the new Costco store.

Last year's budget overall budget was $34.5 million.

Kalispell's general fund will reach $9.4 million this year, compared to $7.8 million last year.

"A large portion of that goes toward salaries," City Manager Jim Patrick said.

The general fund pays for a host of government expenses such as fire, police, administration and parks and recreation services. The 2006 budget will give employees a 2.6 percent raise to compensate for the increase in cost of living, Patrick said.

The city also is increasing its work force by almost 13 percent, and some of that money will come from the general fund.

The general fund also will cover costs for capital improvement projects, such as a $38,750 renovation project at City Hall to add more office space for Kalispell police. Similarly, Kalispell will spend $75,000 from the general fund for various studies, such as a transportation plan that will examine current issues and outline solutions for anticipated needs.

"That's spending money now to keep down costs later," Patrick said. "It's a necessary evil."

This year property taxes will generate $3.9 million for the general fund. Last year the city had $3.5 million to spend from property tax collection.

The council will adopt the final budget in August.

Reporter Camden Easterling may be reached at 758-4429 or by e-mail at ceasterling@dailyinterlake.com.