Council meets in July to decide city budget

By JOHN STANG

The Daily Inter Lake

The Kalispell City Council set a July 17 public hearing on a proposed 2006-07 budget, with which at least two council members have problems.

The city staff's proposed 2006-07 budget is $55.75 million in 2006-07, compared with $52.36 million in 2005-06. The 2006-07 fiscal year begins July 1.

Traditionally, the council approves a preliminary budget at its last meeting in a fiscal year, giving the city staff a tentative map for the first weeks of the new fiscal year. Later, the council holds a public hearing, and changes and approv es the budget early in the fiscal year.

The council unanimously agreed Monday to set the July 17 hearing and vote on budget changes in early August.

However, council members Bob Hafferman and Tim Kluesner voted Monday against adopting the preliminary budget, saying they disagree with some of its proposed spending. Council member Kari Gabriel was absent. The other six council members approved the preliminary budget.

Hafferman and Kluesner don't like some of the proposed budget's priorities.

Kluesner thinks the budget allocates too much money to buy land for a possible expansion of the Hockaday Museum of Art and to renovate the Wells Fargo building as a new home for much of the city's administration.

Hafferman also questions some expenses in the Wells Fargo move. He thinks some sewage-treatment and water-tank expenses are being locked in before the money is needed.

The overall city budget is financed by a couple dozen revenue sources and mostly covers obligations that the city must meet - such as sewage treatment and debt service.

The majority of property taxes is earmarked to pay 44 percent of the city's proposed $10.066 million in general-fund expenses. A chunk of the general fund goes to salaries and wages.

The general fund allows the council the most leeway to change spending.

Estimated general-fund expenses for the 2005-06 fiscal year - which ends June 30 - are $9.3 million, slightly less than budgeted.

All this tentatively translates to an owner of a house with an assessed value of $150,000 paying $821.10 in city property taxes in 2005-06, with a preliminary estimate of an $825.93 property-tax bill in 2006-07.