Kalispell's reserves better than thought

As final books are being closed out on the city of Kalispell's 2008-09 fiscal year, ending cash reserves that threatened to be only $130,000 are growing to a noticeably better number.

Finance Director Amy Robertson told the City Council on Monday night that the city's remaining budget authority, the amount it still has unspent in the general fund, is around $326,000.

The remaining bills to be paid are not yet in - the city holds books open for 60 days after the June 30 end of the fiscal year - but they will not take much of a bite out of that ending balance, she said.

A few payments still are expected, such as Medicare reimbursements to the city ambulance service and revenues from the city court. But receipts in the building department are considerably down because of the crunch on construction.

The big unknown is tax revenue, a number which Robertson wasn't expecting to get from the county until July 15.

Interim City Manager Myrt Webb said the hiring freeze he instituted when he took over duties nine months ago still is in place. Because no employees left their city jobs it didn't cut expenses, but it did hold the line for 2009-09.

He's also suggesting a continued focus on interoperability, or working cooperatively with the sheriff's office and surrounding fire departments to help each other and cut down on emergency runs if possible.

Webb had a couple suggestions for bolstering cash reserves.

First, not filling two funded vacancies - one in fire and one in police - could save about $120,000.

Second, the West Side Tax Increment Finance District is on its final year with the last bond payment due in June. After that last payment and about $375,000 committed to public works projects are subtracted out, that TIF fund will have about $1.8 million remaining. That money can be distributed partially at any time, but should provide $60,000 annually to levied funds after the TIF district sunsets.

"The West Side Tax Increment is doing very well," Webb said. "When it sunsets, we'll get $300,000 or $400,000 back in the general fund, but it's hard to say for sure. We won't get $1 million in reserves, but we could get up to $800,000."

For the coming fiscal year, mill levy amounts compiled by Flathead County will be forwarded to the city in late August. That allows the city to adopt the final budget document in September, with Robertson expecting action at the Sept. 8 council meeting.

A public hearing on the city's 2009-10 budget is planned for the next city council meeting, on July 20. It starts at 7 p.m. in City Hall Council Chambers.

Reporter Nancy Kimball can be reached at 758-4483 or by e-mail at nkimball@dailyinterlake.com