The Kalispell City Council approved a $115 million budget for fiscal year 2023 at its Aug. 15 council meeting.
City staff emphasized this fiscal year’s challenges due to inflation and the budget increased from $104 million in fiscal year 2022.
The completion of the Parkline Trail led to reduced capital expenditures in the 2023 budget compared to the 2022 budget, City Manager Doug Russell wrote in the budget report.
In the general fund, expenditure capital was reduced to 2% this year compared to 4% in 2022 while services and supplies are down to 19% from 24%. Personal services are at 79% from 72% last year, due to four employees who were originally funded through alternative services that were later added to the general fund.
The total city mill levy for fiscal year 2023 is 165.58 mills compared to 161.10 mills last year.
“(This) amounts to 2.8% increase from last year,” Russell said at the meeting. “It’s a really great place to be at.”
For a property owner with a $400,000 home, the mill levy would be about $25.25, Russell said, which is below the inflationary component, Russell said.
The fire department budget within the general fund grew by 8.28%, from $3.9 million to $4.1 million due to proposed equipment replacements.
This year’s budget proposes a new ambulance, a $290,000 expense, that will replace a 16-year-old unit. A $760,000 fire engine is also proposed in the budget to replace a 21-year-old unit that currently operates as a backup unit.
Redevelopment is expected in fiscal year 2023 in two tax increment finance (TIF) districts, which include the westside and downtown. The Charles Hotel and parking structure are both anticipated to begin construction within the next year.
Three departments were reduced in the general fund, including the city clerk, which went down .62%, the attorney department down by 1.16% while the community development department was reduced by 33.76%.
“This was a very challenging year,” Councilor Sid Daoud said. “I hope we continue to be the most fiscally responsible council in the big seven.”