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City to use mix of cash, bonds to buy vehicles

by CALEB SOPTELEAN/Daily Inter Lake
| December 8, 2010 2:00 AM

The Kalispell City Council decided Monday to use bonding and cash to pay for three new police vehicles and parks and forestry equipment.

After a lengthy discussion, the council decided to pay $80,850 in cash for the police vehicles. They also decided to bond up to $106,309 for equipment, including a mower, field groomer and used bucket truck.

The vote was 7-2, with Bob Hafferman and Jeff Zauner dissenting. Hafferman supported paying for all of the items with cash.

“There’s absolutely no need to bond and pay interest and add to our $1.3 million interest payment each year,” Hafferman said.

Maintaining the city’s goal of accrual of cash reserves played an important role in the council’s decision to bond for some of the items.

City Manager Jane Howington said that when she came to the city 16 months ago, she was directed to increase the city’s cash reserves. The current budget projects $900,000 in cash reserves at the end of the fiscal year. Paying for all of the items in cash would result in less progress toward that goal, she said.

In the end, council decided to split the difference and use a 1.95 percent interest rate available through a state Board of Investments loan.

In other action, the council tabled approval of Planned Unit Development Overlay for a multi-phase expansion at the hospital.

The council would like to see a north-south road open for traffic near the hospital during construction. City planning staff was asked to bring options to the Dec. 20 meeting.

The hospital plans to close a road west of the hospital for a “long time” during construction since a crane will be placed there. The west-side road is a private road between Sunnyview Lane to the north and Conway Drive to the south. 

Margaret Davis owns a home on Charlotte Avenue near the hospital. She asked the council to open Buffalo Hill Drive on the east side of the hospital for public access during construction. The road currently is gated and does not permit through-access, although some hospital employees reportedly park there.

Davis also expressed concern about a lack of sidewalks in the area.

Councilman Jim Atkinson asked that Buffalo Hill Drive be revamped into a through street and requested that the hospital give the west-side road to the city.

Buffalo Hill Drive ends near water tower and a parking lot that is inaccessible to vehicles from Buffalo Hill Drive.

Reporter Caleb Soptelean may be reached at 758-4483 or by e-mail at csoptelean@dailyinterlake.com.