Kalispell up in revenue, down in spending for fiscal year

With all of the numbers now in from the previous fiscal-year budget, the city of Kalispell is looking at a general fund surplus of more than $500,000.

The bulk of the money came from real property taxes, which came in $531,000 above the projected budget amount, according to the city’s year-end financial report.

The city’s fiscal year begins and ends in June. The end of fiscal year 2015 fell on June 30.

More than half of that surplus, about $320,000, came from a group of protested taxes that were settled late in the fiscal year. The county held the money until the settlement was reached, according to Finance Director Rick Wills.

That still left $259,000 in real property tax collections above what was projected back in early 2014. City Manager Doug Russell said that this stemmed from a number of factors related to increases in the value of centrally assessed utilities.

Without the protested tax windfall, the city’s surplus is in line with previous years. At the end of the 2013 and 2014 fiscal years, the budget was left with a surplus between 2 and 2.5 percent of the general fund. This year’s amount falls into that slot at about 2.4 percent.

Including the protested tax funds, this surplus helped the city replenish its reserve fund, which took a hit earlier this year. The city spent about $1.2 million to purchase indebted lots at Old School Station to avoid defaulting on bond payments.

Other general fund line items that came in above budget included a state entitlement grant and planning fees.

Revenue from parking permits and meters, as well as city court fees and fines came in below projected amounts. The latter was down by about $61,000.

On the spending side, most city departments came in under budget as well. Russell said that there are a host of factors such as personnel changes and equipment costs. But he said department heads aren’t encouraged to spend up to the budgeted limit when possible.

“If we don’t need it at the end of the year, we just don’t spend it,” he said.

The overall general fund expenditure line came in $262,000 under the $10 million budget.

Just one department spent more than the fiscal year’s projected amount. The fire department came in $18,263 above budgeted expenditures. According to the city report, this was largely due to additional demand in overtime pay.

The city Parks and Recreation Department came in among the most under budget spending. It was about $59,000 below in that regard.

Parks Director Chad Fincher said that he has tried to look at the budget details for places to save money. He took over the department in early 2014.

“We really looked hard this past year at how we do things and where we spend the money,” he said.

The department also came out ahead in revenue, bolstered by an unexpected $21,000 grant from the National Recreation and Park Association.

Fincher said that the grant went toward improvements to the Woodland Park Camp Center as well as educational programming.

The Kalispell City Council is expected to vote on the fiscal year 2016 budget on Monday. A preliminary budget was passed on June 15.

General fund spending in the upcoming budget could be set about $440,000 than last year’s budgeted amount.

Reporter Matt Hudson may be reached at 758-4459 or by email at mhudson@dailyinterlake.com.