FISCAL IMPACT ASSESSMENT — FINAL 1982
FLATHEAD RIVER BASIN ENVIRONMENTAL IMPACT STUDY
Sponsored By: U.S. ENVIRONMENTAL. PROTECTION AGENCY
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4 im'uf'j
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61 s"i
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FLATHEAD RIVER BASIN FISCAL
IMPACT STUDY:
AN ASSESSMENT OF FUTURE FISCAL
CONDITIONS IN NINE TAXING
JURISDICTIONS
Submitted to:
The Steering Committee for the Flathead
River Basin Environmental Impact Study
U.S. Environmental Protection Agency
Submitted by:
Montana Department of Administration
Western Analysis, Inc.
APRIL 1982
This project has been financed, in part, with Federal funds from the
Environmental Protection Agency under grant number R008316013. The
contents do not necessarily reflect the views and policies of the
Environmental Protection Agency.
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TABLE OF CONTENTS
Page
SUMMARY vi
INTRODUCTION AND METHODOLOGY 1
1. HISTORICAL TRENDS 4
1.1. Revenues and Expendi tures,,,,,,,,,,,,,,,, 4
1.1.1. Municipal and County Governments 4
1.1.2. School Districts 15
1.2. Taxable Values and Mill Levies 21
1.3. Bonded Indebtedness 26
1.4. Summary of Existing Conditions 32
2. BASELINE PROJECTIONS 35
2.1. Taxable Value, Operating Expenditures, and
Local Revenues 35
2.2. Aggregate Change in Fiscal Conditions 51
3. ALTERNATIVE PROJECTIONS 61
APPENDIX I Implicit Price Deflators 67
APPENDIX II Historical Taxable Value, Revenue and Expenditure
Growth Rates 69
APPENDIX III Personal Contacts 79
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LIST OF TABLES
Page
Table
1.
Flathead County Revenues and Expenditures, FY 1975-1980
r-
• • +)
Table
2.
Kallspell Revenues and Expenditures, FY 1975-1980 . . .
. . 6
Table
3.
Whitefish Revenues and Expenditures, FY 1975-1980 . . .
. . 7
Table
4.
Columbia Falls Revenues and Expenditures, FY 1975-1980.
. . 8
Table
5.
Lake County Revenues and Expenditures, FY 1975-1930 . .
. . 9
Table
6.
Poison Revenues and Expenditures, FY 1975-1980
Table
7.
Ronan Revenues and Expenditures, FY 1975-1930 . . . . .
Table
8.
St. Ignatius Revenues and Expenditures, FY 1975-1980. .
. .12
Table
9.
Hot Springs Revenues and Expenditures, FY 1975-1980 . .
. .13
Table
10.
Columbia Falls, Kallspell and Whitefish School
Districts Average Enrollment (ANB), Expenditures
and Mills Levied, FY 1971, 1976 and 1980
. .16
Table
11.
Poison, Ronan, St. Ignatius and Hot Springs School
Districts Average Enrollment (ANB), Expenditures
and Mills Levied, FY 1971, 1976 and 1980. . . .
Table
12.
Flathead County, Columbia Falls, Kallspell and
Whitefish Population, Taxable Valuation and Mills
Levied, FY 1971, 1976 and 1980
Table
13.
Lake County, Poison, Ronan, St. Ignatius and
Hot Springs Population, Taxable Valuation and
Mills Levied, FY 1971, 1976 and 1980. ...
Table
14.
Flathead County Taxing Jurisdictions Bonded
Indebtedness, 1980
Table
15.
Lake County Taxing Jurisdictions Bonded
Indebtedness, 1980
Table
16.
Hot Springs Bonded Indebtedness, 1980 . .
Table
17.
Flathead County School Districts Bonded
Indebtedness, 1980. ........
Table
18.
Lake County School Districts Bonded Indebtedness, 1980.
. .31
Table
19.
Local Taxing Jurisdictions, Selected
Public Finance Data, 1980 ....
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LIST OF TABLES (continued)
Page
Table 20. Projections of Selected Local Government
Finance Data ($1980), 1985 46
Table 21. Projections of Selected Local Government
Finance Data ($1980), 1990 47
Table 22. Projections of Selected Local Government
Finance Data, Percentage Change ($1980), 1980-1990. . . .48
Table 23. Selected Ratios of Local Government
Finances ($1980), 1980, 1990 50
Table 24. Projected Changes in Fiscal Reliance, Burden and Real
Operating Expenditures Per Capita ($1980), 1980-1990. . .52
Table 25. Anticipated Major Capital Expenditures Occurring
1n the Study Area by 1990 55
Table 26. Projections of Selected Local Government
Finance Data, Including Planned Capital
Facility Expenditures ($1980), 1990 56
Table 27. Selected Ratios of Local Government Finances,
Including Planned Capital Facility
Expenditures <$1980), 1980, 1990 57
Table 28. Projected Changes 1n Fiscal Reliance, Burden and
Real Operating Expenditures Per Capita ($1980),
Including Major Capital Expenditures, 1980-1990 .... .58
Table 29. Actual and Projected Operating Expenditures
Per Capita ($1980), 1980, 1990
Table 30. Projections of Selected Local Government Finance Data,
Low Population Scenario ($1980), 1990 62
Table 31. Projections of Selected Local Government Finance Data,
High Population Scenario ($1980), 1990 63
Table 32. Selected Ratios of Local Government Finances,
Alternative Population Scenarios ($1980), 1980, 1990. . .64
Table 33. Projected Changes in Fiscal Reliance, Burden
and Real Operating Expenditures Per Capita ($1980),
Including Major Capital Expenditures, Alternative
Population Scenarios, 198(5-1990 65
Table 34. Actual and Projected Operating Expenditures
Per Capita, Alternative Population Scenarios,
($1980), 1980, 1990 66
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LIST OF FIGURES
Figure 1: Flathead and Lake County Taxable
Value Per Capita ($2980)
Figure 2: Kalispell, Columbia Falls, Whiteflsh Taxabl
Value Per Capita ($1980)
Figure 3: Poison, Ronan, Hot Springs, St. Iqnatlus
Taxable Value Per Capita ($1980); ....
Figure 4: Flathead and Lake County Operating
Expenditures Per Capita ($1980)
Figure 5: Kalispell, Columbia Falls, Whitefish
Operating Expenditures Per Capita ($1980)
Figure 6: Poison, Ronan, Hot Springs, St. Ignatius
Operating Expenditures Per Capita ($1980)
Figure 7: Flathead and Lake County
Local Revenues Per Capita ($1980) , . % .
Figure 8: Kalispell, Whiteflsh, Columbia Falls
Local Revenues Per Capita ($1980) ....
Figure 9: Poison, Ronan, Hot Springs, St. Ignatius
Local Revenues Per Capita ($1980) ....
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ACKNOWLEDGEMENTS
We want to thank the many state and local govenment officials,
private citizens, and consulting engineers who assisted in our
understanding of the financial and capital facilities issues discussed
1n this report. We also want to acknowledge the assistance of Mr. Phil
Brooks, Ph.D., and the Research and Information Division, Montana
Department of Administration, and the continual support of Ron Cooper
and the Flathead River Basin Environmental Impact Study Team, sponsor of
this project.
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SUMMARY
Fiscal conditions in local governments, and the impact of those
conditions on taxpayers, are principally the result of the relations
among four variables: population levels, taxable values, local
revenues, and operating expenditures. Changes in these variables over
time will largely determine the future per capita cost to local
taxpayers for support of their local governments.
This report examines current fiscal conditions in the study area
and projects the fiscal impacts of the baseline (most likely) and
alternative growth scenarios, to 1990. Its conclusions are based on
projections of real annual per capita rates of change 1n taxable values,
local revenues, and operating expenditures. Population projections were
developed Independently. The revenue and expenditure data were analyzed
by category and developed through detailed review of the various
jurisdictions1 annual reports for 1975-80. Several problems are
inherent in these data, and the conclusions should therefore be
interpreted with caution. Local compilers used different approaches 1n
different years, and they were not all equally thorough. Reporting
formats changed over the years, and among jurisdictions, and the same
compiler wis not always responsible for the same jurisdiction throughout
the period 1n question.
Revenue growth exceeded expenditure growth afttr 1975, in both Lake
and Flathead Counties. Total budget surpluses between 1977-1980 have
approached $1.3 million in Lake County and $8.0 million in Flathead
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County. The five largest municipalities experienced revenue growth
exceeding expenditure growth, but in four cases this was due to
increases in intergovernmental revenues. Local revenue — those-
revenues produced by taxpaying residents in support of their local
government, including property taxes, fees, licenses, and fines, and
public utility charges — comprised from 39 to 61 percent of total
revenues during 1977-1980, in all municipalities. The remainder came
from intergovernmental sources.
In 1980, mills levied for county operations by the two counties
exceeded mills levied In comparable jurisdictions. In Flathead County
this was largely due to per capita operating expenditures being 45
percent greater than in comparable jurisdictions. In Lake County it was
due partly to a taxable value per capita, or "fiscal capacity," six
percent lower than in comparable jurisdictions.
Mills levied for city purposes in Columbia Falls tnd Hot Springs
exceeded those levied in similar communities by 16 percent and 17
percent, respectively. Contributing factors were a fiscal capacity 22
percent lower in Hot Springs than in comparable towns, and local
revenues per capita, or "fiscal effort," 57 percent greater in Columbia
Falls than in comparable towns. Mill levies in Poison, Ronan,
Whitefish, and Kalispell were all slightly lower than in similar
communities. KaHspell and Whiteftsh enjoy higher fiscal capacities —
48 percent and 20 percent, respectively, than in comparable towns — but
they also have higher operating expenditures per capita. St. Ignatius
has a lower mill levy than in comparable towns, due to its lower
operating expenditures per capita.
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Projections of fiscal conditions for the nine taxing jurisdictions
were derived from historic trends for the individual revenue and
expenditure categories, in some cases modified to accommodate changing
economic and political conditions. Operating expenditures were
estimated first; local revenues were then estimated based on reasonable
fiscal limits and expenditure requirements.
Several Important assumptions underlie these projections. First,
they are based strictly on a continuation of 1970-1980 economic
structural conditions, i.e., no significant oil or gas development or
maj©r change 1n industrial or commercial development is expected.
Second, they depend on the population projections developed 1n The
Flathead Basin: An Economic Assessment. Third, state laws governing
annexation are assumed to remain essentially unchanged. Fourth, no
major property reappraisals are incorporated in the projections.
Real per capita taxable values are expected to continue their
declining trend. By 1990, real taxable values are projected to decline
between 15 percent and 35 percent in the two counties, and between 20
percent and 46 percent in all the municipalities except Wh1tef1sh, where
taxable values are expected to increase 17 percent. Increases In real
per capitsi operating expenditures are also expected to continue. By
1990* operating expendltures are projected to increase between 18
percent and 33 percent in the counties, and between 14 percent and 48
percent in all the municipalities except Hot Springs, which 1s expected
to experience a 16 percent decline. Local revenues are projected to
viii
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increase in all the jurisdictions except Flathead County, where a 4
percent decline is forecast. (Anticipated major capital facility
outlays increase the projections of local revenues and operating
expenditures equally, from 2.7 percent to 22.7 percent, in six of the
nine jurisdictions.)
The rate and direction of projected change in these variables
within each juridlctlon imply that mill levies will Increase, or that
fees, licenses, and service charges will increase, or both.
Two ratios were developed to provide further insight into fiscal
conditions: local revenues divided by operating expenditures, as a
measure of the jurisdiction's "reliance" on locally generated revenue to
pay for operating expenses, and operating expenditures divided by
taxable value, or the relative "burden" assumed by local taxpayers to
support their local governments.
Reliance ratios are expected to decline in all the jurisdictions
except Hot Springs, due to the projected rapid increase in operating
expenditures relative to local revenues. Fiscal burden is expected to
increase in all the jurisdictions, from 24 percent in Whitefish to 140
percent in St. Ignatius. The counties will continue to impose a smaller
burden than the municipalities, and the larger municipalities, a smaller
burden than the smaller municipalities. Projected growth in per capita
operating expenditures, coupled with the predicted decline in local
reliance, indicates that growth in intergovernmental revenues beyond
that projected may be needed to maintain a balanced budget and reduce
the projected burden on the local taxpayers.
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Operating expenditures per capita are projected to increase 15
percent to 16 percent in the two counties, and between 13 percent and 60
percent in six of the municipalities. Operating expenditures per capita
are expected to continue to be almost twice as high in Flathead as in
lake County. Among the municipalities, Kalispell and Wh1tef1sh are
expected to have the highest operating expenditures per capita; St.
Ignatius and Hot Springs, the lowest.
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INTRODUCTION AND METHODOLOGY
Recognizing the natural amenities and high quality of life in the
Flathead River Basin in northwestern Montana, and the continuing
development of the area, the U.S. Environmental Protection Agency
awarded a grant in 1978 to local citizens to assess the current
environmental and economic situation there and develop orojections of
future conditions. Part of the multi-year scope of work consisted of
projecting the fiscal impact of continued economic and population qrowth
on the nine local taxing iurisdlctions in the study area. Toward that
end, the Flathead River Basin Environmental Impact Study Steering
Committee awarded a contract to the Montana Department of Community
Affairs, with a subcontract to Western Analysis, Inc., in mid-1980 to
develop the economic and demographic projections, and to project the
fiscal impact of future growth on the counties and municipalities in the
study area. This report is examines current fiscal conditions 1n the
study area and projects the fiscal impacts of the "most likely"
population growth scenario, and alternative scenarios to 1990.
Fiscal conditions in local governments, and the impact of those
conditions on taxpayers, are principally the result of the relations
amoung four variables: population levels, taxable values, local
revenues, and operating expenditures. Changes in these variables over
time will largely determine the future per capita cost to local
taxpayers for support of their local governments.
We compiled historical» price-adjusted data ($ 1980) for taxable
values per capita, local revenues per capita, and operating expenditures
1
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per capita in each taxing jurisdiction. We then projected these
variables to 1990, based on an analysis of past annual rates of changes
for each revenue and expenditure category, adjusted for current economic
and political conditions. The population projections developed in The
Flathead Basin: An Economic Assessment were then used in conjunction
with the per capita projections to derive projections of taxable value,
local revenue and operating expenditures in 1990.
Two ratios were developed to provide further insights Into
projected changes in fiscal conditions: local revenues divided by
operating expenditures, and operating expenditures divided by taxable
value. The former is used as a relative measure of "reliance" on local
revenues to meet operating expenditures. The latter is a measure of the
relative "Jaurden" assumed by local taxpayers to pay for operating
expenditures. Projected changes in these ratios, and operating
expenditures per capita, are analyzed to determine the future fiscal
conditions of the counties ami municipalities In the study area.
Existing public services and facilities 1n the study area were
assessed. Themajor capital facility expenditures likely to be made by
1990 were projected, based on the existing public facility situation,
population projections, and interviews with service providers. These
expenditures were then incorporated with the above projections to
provide an alternative fiscal scenario.
Several important assumptions underlie these projections. First,
they are based strictly on a continuation of 1970-1980 economic
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structural trends, i.e., no significant oil or gas development or major
change in industrial/commercial development is contemplated. Second,
they depend on the population projections developed in The Flathead
Basin: An Economic Assessment. Third, state laws governing annexation
are assumed to remain essentially unchanged. Fourth, no major property
reappraisals or new sources of revenue are incorporated in the
projections.
The report is organized Into three chapters. The first chapter
discusses historical trends and the current situation, the second
chapter contains the baseline fiscal projections, and the third chapter
presents fiscal projections for alternative population scenarios. Three
Appendices are attached* showing price deflators, historical revenue and
expenditure data by category, projected rates of change, and personal
contacts.
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1. HISTORICAL TRENDS
1.1. Revenues and Expenditures
1.1.1. Municipal and County Governments
Municipal and county governments in Montana rely on several forms
of revenue. In 1978-79, property taxes were the orincipal source of
revenue for county governments (42 percent), and a less important source
for cities (28 percent) and towns (19 percent). Over the years,
property taxes have declined in importance as a revenue source.
Intergovernmental revenues, including federal and state grants-in-aid
and state shared taxes, comprised roughly one-fourth of city and town
revenues, and one-fifth of county revenues in 1978-79. Fees, licenses
and floes, utility charges, and other miscellaneous categories made up
the remainder.
Tables 1 through 9 and Figures 1 through 9 show recent trends in
revenues and expenditures In the two counties and seven municipal
governments. These data were developed through detailed review of the
jurisdictions' annual reports for the years 1975-1980. Problems
inherent 1n the process of collecting these data require that the
conclusions be Interpreted with caution. First, the required reporting
formats were changed between 1975 and 1980, making consistent
jurisdictional comparisons between years difficult. Second, the local
Individuals who compiled the reports did so tr1th varying degrees of
thoroughness so that our judgement concerning categorization of entries
was often required. Third, the local compilers used different
approaches, making comparisons between jurisdictions difficult.
*
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Table 1. Flathead County Revenues and Expenditures, FY 1975-1980
% Change
1975 1976 1977 1978 1979 1980 1975-1980
Takable Valuation
55,966,523
56,943,596
63,083,263
63,152,497
77,720,622
81,073,090
Mills (Co. Operations)
47.1
59.7
61.4
58.7
63.9
73.5
fteventtes
PWperty Taxes
2,714,178
3,416,079
3,984,355
4,145,250
5,060,666
6,016,812
122
Intergovernmental Revenues 1,728,188
2,070,006
2,734,445
3,896,827
3,078,528
5,654,227
227
Ffts» Licenses, Fines
1,192,533
1,445,394
1,554,369
1,892,904
1,925,353
2,090,610
75
Miscellaneous
292.280
325,292
522,509
1,069,382
2f310,300
7,031,799
2,306
Total
5,927,179
7,256,771
8,795*678
11,004,363
12,374,847
20,793,448
251
Expenditures
General Government
792,501
926,333
896,678
1,106,236
1,151,863
1,751,738
121
Safety
340,168
280,171
540,211
480,198
753,620
921,209
171
H&ftfr and Welfare
1,036,830
967,530
826,922
923,308
1,304,262
1,291,077
25
Transportation
1,539,789
994,842
1,264,791
1,689,949
2,261,099
2,559,090
147
Education and Libraries
207,677
230,256
281,246
300,050
348,515
440,690
112
Capital Outlay
1,495,737
552,787
1,009,013
1,271,932
1,630,670
1,745,692
17
Miscel lfcneous
769,621
2,846,848
3.643,671
3.786.011
3,789.531
7,019.163
912
Total
6,182,323
6,798,767
8,462,536
9,558,384
11,239,560
15,728,659
154
Sources: 1) Flathead County Annual Report, various years.
2) Montana Property taxation, various years, Montana Taxpayers Association.
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Table 2. Ka11spell Revenues and Expenditures, FY 1975-1980
% Change
1975 1976 1977 1978 1979 1980 1975-1980
Taxable Valuation 12,589,269 13,193,104 12,900,683 12,667,121 15,209,710 15,583,300
Mills 61.0 68.0 71.5 76.0 77.3 84.2
Revenues
Property Taxes
960,767
985,382
882,310
920,686
994,487
1,320,697
37
Intergovernmental Revenues
393,389
-0-
763,881
1,158,634
2,346,492
983,897
150
Public Utilities
434,715
687,653
794,531
540,392
586,370
734,218
69
Fees, Licenses, Fines
240,816
287,188
516,264
469,209
503,829
315,607
31
Miscellaneous
545,682
410,600
1,481,255
787,621
797,788
1,225,006
124
Total
2,575,369
2,370,823
4,438,241
3,876,542
5,228,966
4,579,425
78
Expend1tures
General Government
97,557
167,891
174,748
208,531
240,155
319,496
227
Public Safety
563,543
817,154
711,380
723,787
899,208
1,252,390
122
Transportation
295,512
285,802
288,556
214,375
298,344
276,862
-6
Public Utilities
476,583
582,564
728,313
573,598
783,998
680,796
43
Debt Service
118,663
59,159
133,472
139,672
249,695
130,218
10
Intergovernmental
389,773
801,402
578,055
1,618,398
1,825,136
707,401
81
Miscellaneous
649,142
779,100
1,608,289
828,002
908,551
854,625
32
Total
2,590,773
3,493,072
4,222,813
4,306,363
5,205,087
4,221,788
63
Sources: 1) Ka11spell Annual Report, various years.
2) Montana Property Taxation, various years, Montana Taxpayers Association.
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Table 3. Whlteflsh Revenues and Expenditures, FY 1975-1980.
% Change
1975
1976
1977
1978
1979
1980
1975-19
Taxable Valuation
2,588,449
2,815,282
2,903,243
3,193,218
3,708,305
3,980,763
Mills
61.0
67.0
65.0
71.0
71.0
71.0
Revenues
Property Taxes
342,630
427,001
393,837
382,938
424,246
466,039
36
Intergovernmental Revenues
307,551
207,640
177,355
155,527
191,859
1,332,724
333
Public Utilities
164,590
181,238
256,011
298,194
398,770
398,135
142
Fees, Licenses, Fines
67,144
142,450
168,620
139,526
167,406
96,356
43
Miscellaneous
63,103
60,371
51,047
135,835
129,598
131,134
108
Total
945,018
1,018,700
1,046,870
1,112,020
1,311,879
2,424,388
156
Expenditures
General Government
41,998
51,771
54,811
52,822
57,560
71,344
70
Public Safety
125,188
197,311
164,291
170,421
194,823
272,385
118
Transportation
46,830
94,242
119,493
82,665
116,345
144,980
210
Public Utilities
146,114
154,857
305,339
322,673
373,082
1,390,246
851
Debt Service
254,057
54,448
92,370
71,618
77,604
85,018
-67
Intergovernmental
283,187
141,291
66,355
117,006
105,519
97,707
-65
Miscellaneous
125,200
233,149
139,926
150,275
247,821
234,001
87
Total
1,022,574
927,069
942,585
967,480
1,172,754
2,295,681
125
Sources: 1) Whiteflsh Annual Report, various years.
2) Montana Property Taxation, various years, Montana Taxpayers Association.
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Table 4. Columbia Falls Revenues and Expenditures, FY 1975-1980.
1975
1976
1977
Taxable Valuation
2,505,910
2,594,414
2,601,149
Mills
69.0
85.0
82.8
Revenues
Property Taxes
255,890
186,544
241,120
Intergovernmental Revenues
47,420
103,882
130,452
Public Utilities
120,317
153,475
138,749
Fees, Licenses, Fines
44,930
97,034
43,390
Miscellaneous
92,857
120,352
197,529
Total
561,414
661,287
751,240
Expenditures
General Government
47,357
45,764
50,062
Public Safety
101,580
114,171
53,043
Transportation
58,505
34,246
31,391
Public Utilities
130,396
118,008
159,492
Debt Service
24,471
22,340
71,882
Intergovernmental
42,757
13,890
32,525
Miscellaneous
106.280
273,804
211,220
Total
511,346
622,223
639,615
% Change
1978 1979 1980 1975-1980
3,254,313 2,717,605 3,036,934
68.6 95.0 98.0
206,119
283,006
417,044
62
160,447
88,379
82,909
74
192,254
168,509
220,850
83
80,707
57,884
35,321
-21
120,593
180,248
480,000
416
760,120
778,026
1,236,124
120
68,837
111,378
105,960
123
108,207
136,353
251,734
148
30,343
37,601
99,648
70
217,323
274,808
419,714
222
72,454
78,107
104,403
327
52,655
36,639
5,893
-8(
188,434
101,734
113,282
6
738,253
776,620
1,100,634
115
Sources: 1) Columbia Falls Annual Report, various years.
2) Montana Property Taxation, various years, Montana Taxpayers Association.
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Table 5. Lake County Revenues and Expenditures, FY 1975-1980.
% Change
1975 1976 1977 1978 1979 1980 1975-1980
Taxable Valuation
22,576,849 23,602,945
23,385,344
23,087,407
26,401,594 27
,163,710
Mills (Co. Operations)
43.2
53.2
53.7
55.9
49.2
56.5
Revenues
Property Taxes
1,087,779
1,381,498
1,408,475
1,454,274
1,527,874
1,667,921
53
Intergovernmental Revenues
466,855
555,008
548,398
767,152
757,164
894,795
92
Fees, Licenses, Fines
135,408
195,595
243,195
230,382
306,815
374,636
177
Miscellaneous
285,231
223,799
251,342
434,079
279,519
358,963
26
Total
1,975,273
2,355,900
2,451,410
2,885,887
2,871,372
3,296,315
67
Expendi tures
General Government
274,540
316,729
405,717
400,868
418,945
985,383
260
Public Safety
141,425
152,637
175,933
191,267
212,643
299,744
112
Health and Welfare
210,542
244,651
268,823
149,864
315,103
454,528
116
Transportation
447,404
388,129
427,913
532,556
533,833
568,172
27
Education and Libraries
34,224
55,781
47,742
25,262
57,367
65,082
90
Capital Outlay
739,209
826,507
333,125
-0-
197,400
264,153
-64
Miscellaneous
359,752
494,124
618,107
1,123,446
772,159
339,827
-6
Total
2,207,096
2,478,558
2,277,360
2,423,263
2,507,450
2,976,889
35
Sources: 1) Lake County Annual Report,
various years.
2) Montana Property Taxations
, various years, Montana Taxpayers Association.
-------
Table 6. Poison Revenues and Expenditures, FY 1975-1980,
% Change
1975
1976
1977
1978
1979
1980
1975-1S
Taxable Valuation
2,434,837
2,544,961
2,437,801
2,493,762
2,599,969
2,776,731
Mills
68.0
67.3
70.0
70.0
65.6
76.8
Revenues
Property Taxes
171,373
180,583
186,920
206,234
206,960
213,940
25
Intergovernmental Revenues
56,338
108,063
119,160
281,522
460,283
378,796
572
Public Utilities
78,345
120,744
201,654
232,072
229,080
261,087
233
Fees, Licenses, Fines
90,775
73,827
100,044
78,877
121,077
115,076
27
Miscellaneous
55,150
118,700
1,086.692
90,567
848,857
160,183
190
Total
451,981
601,917
1,694,470
889,272
1,866,257
1,129,082
150
Expenditures
General Government
33,938
27,651
31,158
38,653
49,531
67,759
100
Public Safety
63,663
82,650
94,219
97,388
110,678
122,845
93
Transportation
41,767
67,867
57,129
72,878
70,180
86,145
106
Public Utilities
98,778
134,373
1,096,425
167,585
181,808
177,846
80
Debt Service
54,598
33,626
104,334
62,516
77,789
89,037
63
Intergovernmental
76,009
61,786
74,772
292,661
334,149
261,437
244
Miscellaneous
98.557
150,711
144,757
137,600
361.035
354,707
251
Total
467,310
558,664
1,602,794
869,281
1,185,170
1,159,776
148
Source: 1) Poison Annual Report, various years
2) Montana Property Taxation, various years, Montana Taxpayers Association.
-------
Table 7. Ronan Revenues and Expenditures, FY 1975-1980.
% Change
1975 1976 1977 1978 1979 1980 1975-1980
Taxable Valuation 1,156,631 1,272,492 1,345,280 1,315,734 1,483,179 1,418,259
Mills 79.5 72.0 68.8 80.5 71.4 74.9
Revenues
Property Taxes
130,722
144,985
92,741
92,841
122,602
111,811
-14
Intergovernmental Revenues
36,349
115,004
93,837
150,933
90,747
82,191
126
Public Utilities
45,327
50,900
44,649
59,615
94,997
107,856
138
Fees, Licenses, Fines
22,372
40,716
50,384
66,838
54,692
21,478
-4
Miscellaneous
6,370
4,589
22,575
51,045
11,820
33,795
431
Total
241,140
356,194
304,186
421,272
374,858
357,131
48
Expendi tures
General Government
23,081
22,958
24,266
27,604
59,060
39,655
72
Public Safety
45,076
60,681
68,883
90,361
64,946
96,494
114
Transportation
19,726
26,979
38,691
58,892
27,070
45,507
131
Public Utilities
36,140
56,609
54,299
47,370
81,311
94,491
161
Debt Service
28,407
36,138
23,742
13,123
3,482
7,193
-75
Intergovernmental
33,253
99,574
65,476
132,897
109,731
15,381
-54
Miscellaneous
52,027
35,572
31,361
57,661
52,287
10,372
-80
Total
237,710
338,511
306,718
427,908
397,887
309,093
30
Source: 1) Ronan Annual Report, various years.
2) Montana Property Taxation, various years, Montana Taxpayers Association.
-------
Table 8. St. Ignatius Revenues and Expenditures, FY
1975-1980.
% Chang
1975
1976
1977
1978
1979
1980
1975-1S
Taxable Valuation
507,214
507,214
486,089
431,705
432,199
393,418
Mills
51.0
51.0
51.0
51.0
51.0
56.0
Revenues
Property Taxes
26,005
25,238
27,742
25,710
25,029
23,402
-10
Intergovernmental Revenues
10,220
9,703
32,956
20,242
24,067
26,115
156
Public Utilities
10,626
10,835
15,979
15,448
16,589
19,382
82
Fees, Licenses, Fines
20,988
26,902
10,592
16,607
23,087
11,958
-43
Miscellaneous
2,724
61.676
17,336
11.704
11.587
37,136
1,263
Total
70,563
134,354
104,605
89,711
100,359
117,993
67
Expenditures
General Government
6,006
5,442
11,486
9,840
7,945
11,481
91
Public Safety
31,260
27,061
42,233
30,406
46,215
46,655
49
Transportation
3,023
3,034
2,693
3,629
16,669
2,220
-27
Public Utilities
11,845
18,982
10,300
6,367
12,038
23,119
95
Debt Service
3,651
4,717
17,179
5,431
5,431
5,431
49
Miscellaneous
7,158
76,893
20,181
18,555
14,730
34,590
383
Total
62,943
136,129
104,072
74,228
103,028
123,496
96
Sources: 1) St. Ignatius Annual Report, various years.
2) Montana Property Taxation, various years, Montana Taxpayers Association.
-------
Table 9. Hot Springs Revenues and Expenditures, FY 1975-1980.
1975
1976
1977
Taxable Valuation
347,191
335,500
345,090
Mills
56.0
66.0
66.0
Revenues
Property Taxes
20,275
22,090
25,558
Intergovernmental Revenues
10,745
5,354
25,650
Public Utilities
28,270
26,401
30,236
Fees, Licenses, Fines
12,187
17,903
8,427
Miscellaneous
3,545
3,708
3.756
Total
75,022
75,456
93,627
Expendi tures
General Government
14,858
13,819
16,896
Public Safety
11,747
13,227
14,512
Transportation
14,159
16,840
16,885
Public Utilities
19,668
21,846
39,225
Debt Service
-0-
-0-
-0-
Miscellaneous
6,572
9,987
10,214
Total
67,004
75,719
97,732
% Change
1978 1979 1980 1975-1980
335,440
341 ,261
340,223
65.0
76.0
78.8
26,129
31,166
32,371
60
79,390
108,415
30,342
182
31,772
33,943
42,554
51
8,560
6,755
6,916
-43
9,279
28,312
7,954
124
155,130
208,591
120,137
60
18,524
12,218
11,141
-25
39,956
22,261
21,208
81
12,493
17,021
11,404
-19
71,466
98,651
44,166
124
-0-
-0-
-0-
-0-
12,359
51,412
31,127
374
154,798
201,563
119,046
78
Sources: 1) Hot Springs Annual Report, various years.
2) Montana Property Taxation, various years, Montana Taxpayers Association.
-------
Finally, a different compiler may have worked in a jurisdiction each
year, increasing the difficulty of inter-year comparison. For these
reasons, revenue and expenditure entries that could not readily be
categorized elsewhere are classified as "miscellaneous" in these tables.
Lake County relies more heavily on property taxes, and Flathead
County less heavily, than all counties statewide. As in other counties,
the transportation and general government categories account for the
largest share of expenditures. Since 1975, revenues have increased
twice as fast as expenditures in Lake County, and two-thirds greater
than expenditures in Flathead County. Over the period 1977 to 1980, the
total budget surpluses approached $1.3 million in Lake County and $8.0
million in Flathead County.
The rate of increase in total revenues has exceeded the rate of
increase in total expenditures in all but two municipalities — St.
Ignatius and Hot Springs. It should be pointed out, though, that in all
cases save one, this would not have occurred had not been for increases
in intergovernmental revenues. In all the cities and towns, revenues
from property taxes and fees, licenses and fines have increased at a
rate less than one-half the rate of increase in total revenues. In fact
local revenues^ have comprised only 39 percent (Poison) to 61 percent
(Whitefish) of total revenues since 1977.
Generally, since 1975, public utility expenditures have increased
at a greater rate than other expenditure categories. In all the
1 Local revenues are revenues produced by tax paying residents in
support of their local government, and includes property taxes, fees,
licenses *nd fines, and public utility charges.
14
-------
municipalities except Poison, either public utility or public safety
expenditures are the largest single budget item.
The cumulative revenue/expenditure balance in all jurisdictions has
been positive since 1975. This cumulative balance ranges from 10 to 30
percent of the FY 1980 budget for all municipalities except Poison,
where it is much higher due to the one-time revenue surplus in FY 1979.
1.1.2. School Districts
Montana school districts are supported by a complex combination of
local, state, and federal funds. Revenue sources for the general school
budget consists of a foundation program, supported by county, state, and
federal funds, a permissive district levy not requiring a vote, and a
voted district levy to enrich the general budget or to repay school
building bond issues. Federal P.L. 874, or Payment in Lieu of Taxes
(PILT) funds are important sources of revenue in districts containing
large amounts of land administered by the Bureau of Land Management.
It is important to understand that payments from the U.S. Forest
Service earmarked for county schools have no net impact on the local
school budgets, but instead simply offset the revenue due the districts
from the State Foundation Program. Essentially, these funds augment the
State Foundation Program, and thus benefit the poorer school districts
statewide.
Tables 10 and 11 contain historical enrollment and school finance
data for the elementary and high school districts associated with the
15
-------
Table 10. Columbia Falls, Kallspell and Whiteflsh School Districts
Average Enrollment (ANB), Expenditures and Mills Levied, FY 1971, 1976 and 1980.
% Change
1971
1976
1980
1971-1980
Columbia Falls
High Sch.
El em.
High Sch. Elem.
High Sch. Elem.
High Sch.
Elem
ANB
749
1785
810 1638
810 1553
9
-12
Expenditures per ANB
$927
$560
$1590 $1134
$2428 $1682
162
201
General Fund
Budget per Pupil
$780
$522
$1156 $946
$1926 $1444
147
177
Mills Levied
99.8
128.5
138.6
39
Kalispell
ANB
2051
2480
2176 2219
2318 2158
14
-12
^ Expenditures per ANB
$1370
$681
$1471 $1081
$2264 $1944
66
186
01 General Fund
Budget per Pupil
$622
$494
$1150 $981
$1611 $1504
160
205
Mills Levied
116.3
127.0
146.9
27
Whitefish
ANB
617
1373
678 1167
591 1040
-4
-24
Expenditures per ANB
$764
$556
$1314 $1096
$6001 $1705
686
207
General Fund
Budget per Pupil
$644
$501
$1100 $875
$1734 $1370
170
174
Mills Levied
125.8
129.8
158.3
26
-------
Table 10. (continued)
% Change
1971 1976 1980 1971-1980
High Sch. Elem. High Sch. El em. High Sch. Elem. High Sch. El em.
Comparable School Districts
To Columbia Falls
General Fund
Budget per Pupil $777 $546 $1178 $964 $1888 $1493 143 174
Mills Levied 106.9 108.4 124.9 17
To Kali spell
General Fund
Budget per Pupil $700 $545 $1211 $1034 $1778 $1637 154 200
Mills Levied 121.7 132.6 174.2 44
^ To Mhitefish
^ General Fund
Budget per Pupil $777 $546 $1178 $964 $1888 $1493 143 173
Mills Levied 106.9 108.4 124.9 17
Sources: 1) Personal Communication with Superintendent of Schools, Flathead County.
2) Personal Communication with Office of Superintendent of Public Instruction, Helena, Montana.
3) Montana Property Taxation, various years, Montana Taxpayers Association.
-------
Table 11. Poison, Ronan, St. Ignatius and Hot Springs School Districts
Average Enrollment (ANB), Expenditures and Mills Levied,
FY 1971,
1976 and 1980.
% Change
1971
1976
1980
1971
1-1980
H1qh Sell.
El em.
High Sch. Elea.
High Sch. Elem.
High Sch.
Elem.
Poison
m
487
918
461 863
466 857
-4
-6
Expenditures per ANB
$862
$615
$2325 $1144
$2426 $1666
182
171
General Fund
Budget per Pupil
$750
$486
$1111 $786
$1584 $1173
112
142
Mills Levied
110.2
127.5
127.4
16
Ronan
Xn5
392
900
444 883
416 878
7
-2
Expenditures per ANB
$1024
$899
$1633 $1161
$2513 $2066
146
130
General Fund
Budget per Pupil
$639
$526
$1064 $892
$1545 $1401
142
167
Mills Levied
136.6
121.6
155.3
14
St. Ignatius
ANB
168
452
185 458
190 357
14
-21
Expenditures per ANB
$1852
$882
$2031 $1270
$2755 $2059
49
134
General Fund
Budget per Pupil
$1043
$487
$1312 $917
$1994 $1501
92
209
Mills Levied
153.6
122.8
134.2
12
Hot Sprfnas
Afte
110
234
98 224
108 199
-1
-14
Expenditures per ANB
$1507
$710
$2209 $1161
$3802 $3769
153
431
General Fund
Budget per Pupil
$904
$486
$1379 $855
$1822 $1533
102
216
Mills Levied
78.1
70.6
138.8
78
-------
Table 11. (continued)
Comparable School Districts
% Change
1971 1976 1980 1971-1980
High Sch. Elem. High Sch. Elem. High Sch. El em. High Sch. Elero.
To Poison
General Fund
Budget per Pupil $763 $507 $1187 $927 $1805 $1442 137 185
Hills Levied 113.7 107.9 121.1 7
To Ronan
General Fund
Budget per Pupil $830 $551 $1366 $1011 $1981 $1476 139 168
Mills Levied 110.1 115.7 133.5 22
_ To St. Ignatius
General Fund
Budget per Pupil $1304 $560 $1560 $1056 $2631 $1633 102 192
Mills Levied 99.5 98.4 110.2 11
To Hot Springs
General Fund
Budget per Pupil $1304 $560 $1560 $1056 $2631 $1633 102 192
Mills Levied 99.5 98.4 110.2 11
Sources: 1) Personal Communication with Superintendent of Schools, Lake County.
2) Personal Communication with Office of Superintendent of Public Instruction, Helena, Montana.
3) Montana Property Taxation, various years, Montana Taxpayers Association.
-------
municipalities. Between 1971 and 1980, enrollment declines in the
elementary districts ranged from 2 percent In Ronan to 24 percent 1n
Whlteflsh. High school district enrollment changes ranged from a 14
percent increase 1n Kallspell and St. Ignatius to a 4 percent decline 1n
Whlteflsh and Poison.
The general fund budget per pupil 1s normally higher 1n high
schools than 1n elementary schools. In 1980, the high school budget per
pupil ranged from $1,545 in Ronan to $1,994 1n St. Ignatius. Comparable
figures for elementary budgets varied from $1,173 1n Poison to $1,533 in
Hot Springs. The higher budgets 1n the smaller communities probably
reflects minimum expenditure requirements and a lack of economy of
scale. The budgets 1n all the districts, except Columbia Falls high
school, were lower than 1n comparable districts.
School district mill levies range from 127,4 1n Poison to 158.3 1n
Whlteflsh. Mill levies 1n Kallspell, Ronan, and St. Ignatius have
declined relative to levies 1n comparable jurisdictions. Since 1971,
the levy In Kallspell has Increased at only 60 percent of the rate of
Increase 1n other districts of similar size. In 1980 1t was 84 percent
of the average levy. While Ronan and St. Ignatius levies are still
higher than 1n comparable districts, they are relatively lower than 1n
1971. Mill levies 1n the other municipalities are all higher than 1n
comparable jurisdictions, and they have Increased relative to the other
districts since 1971.
In summary, budgets per pupil are generally lower 1n the study area
than elsewhere, but mill levies are higher. These differences are
20
-------
probably due to lower taxable values per pupil in the study area school
districts than 1n the comparable school districts.
1.2. Taxable Values and Mill Levies
Tables 12 and 13 show the recent trend 1n taxable valuations and
mills levied 1n Flathead and Lake Counties, and in the seven municipal
taxing jurisdictions 1n the study area. Because mill levies represent
the final reconciliation between revenue needs and the ability of the
local taxpayers to supply that revenue, mill levies are compared only
for comparable jurisdictions.
In 1980, taxable value per capita 1n Flathead and Lake Counties was
$1,560 and $1,425, respectively. Since 2970, this figure has Increased
by 36 percent 1n Flathead County, and by 20 percent In Lake County.
Over the same period, mills levied for county purposes Increased at a
greater rate in Flathead County than 1n Lake County (123 percent to 6
percent). Mills levied 1n Flathead County also Increased relative
to counties with comparable populations, from 79 percent of the average
1n 1971 to 118 percent 1n 1980. Lake County mills levied also increased
relative to comparable jurisdictions, from 111 percent of the average
1n 1971 to 134 percent 1n 1980.
KallspelVs taxable value per capita 1s $1,513, significantly
higher than 1n any other municipality 1n the study area. It has grown
64 percent since 1971, second only to Wh1tef1sh's growth of 84 percent.
^Flathead, Gallatin, Lewis and Clark, Missoula.
\ake, H111, Lincoln, Ravalli.
21
-------
ro
ro
Table 12. Flathead County, Columbia Falls, Kalispell and Whlteflsh Population, Taxable Valuation
and Mills Levied, FY 1971, 1976 and 1980.
% Change
1970-1971 1976 1980 1971-1980
Flathead County
Population 39,460 45,705 51,966 32
Taxable Valuation 45,238,227 57,181,770 81,073,090 80
per Capita 1,146 1,251 1,560 36
Mills Levied
(Co. Operations Only) 33.1 59.7 73.5 123
Columbia Falls
Population 2,652 2,900 3,112 17
Taxable Valuation 2,112,198 2,594,414 3,036,934 44
per Capita 796 895 976 23
Mills Levied 55.2 85.0 98.0 78
Kallspell
Population 10,526 10,411 10,299 -2
Taxable Valuation 9,744,228 13,193,104 15,583,300 60
per Capita 926 1,267 1,513 64
Mills Levied 48.1 68.0 84.2 76
Whlteflsh
Population 3,349 3,503 3,582 7
Taxable Valuation 2,033,946 2,815,282 3,980,763 96
per Capita 607 804 1,111 84
Mills Levied 56.0 67.0 71.0 27
Comparable Tax Jurisdictions - Average Mills Levied
County 4l .8 56.7 62.5 50
City/Town (Col. Falls) 53.6 68.2 82.0 53
City/Town (Kallspell) 60.7 75.3 90.5 50
City/Town (Whlteflsh) 51.2 66.1 81.4 59
Sources: 1) Bureau of the Census, U.S. Dept. of Commerce.
2) Montana Property Tax Hill Levies, various years, Montana Taxpayers Association.
-------
Table 13. Lake County, Poison* Ronan, St. Ignatius and Hot Springs Population, Taxable Valuation
and Mills Levied, FY 1971, 1976 and 1980.
Lake County
Population
Taxable Valuation
per Capita
Mills Levied
(Co. Operations
Pol son
Population
Taxable Valuation
per Capita
Hills Levied
Ronan
Population
Taxable Valuation
per Capita
Mills Levied
St. Ignatius
Population
Taxable Valuation
per Capita
Mills Levied
Hot Springs
Population
Taxable Valuation
per Capita
Mills Levied
% Change
1970-1971 1976 1980 1971-1980
14,445 17,406 19,056 32
17,181,901 23,647,039 27,163,710 59
1,189 1,359 1,425 20
Only) 53.6 53.2 56.5 6
2,464
1,753,515
712
63.3
2,718
2,544,961
936
67.3
2,798
2,776,731
992
76.8
14
59
39
22
1,347
843,900
627
61.5
1,468
1,272,492
867
72.0
1,530
1,418,259
927
74.9
14
68
48
22
925
302,365
327
47.5
929
507,214
546
51.0
877
393,418
449
56.0
-5
31
37
18
664
346,435
522
38.0
637
335,500
527
66.0
601
341,261
568
76.0
-9
-1
9
100
-------
Table 13. (continued)
% Change
1970-1971 1976 1980 1971-1980
Comparable Tax Jurisdictions - Average Mills Levied
Coun^ 45.2 48.6 42.1 -12
City/Town (Poison) 53.6 68.2 82.0 53
C1ty/ToMn (Ronan) 52.7 65.0 77.7 48
City/Town (St. Ignatius) 51.0 54.4 72.5 43
City/Town (Hot Springs) 58.3 64.1 67.4 16
Sources: 1) Bureau of the Census, U.S. Dept. of Commerce
2) Montana Property Tax Mill Levies* various years, Montana Taxpayers Association.
-------
Kal1spell currently levies 84.2 mills, compared with 90.5 for comparable
jurisdictions.4 Although Kalispell's mill levy 1s only 93 percent of
the average for similar jurisdictions, this represents an increase over
1971 when Kalispell's mill levy was 79 percent of the average.
Wh1tef1sh, Columbia Falls, and Poison are similar in size.
Wh1tef1sh has enjoyed the greatest growth 1n taxable value per capita
over the last decade, 84 percent. Poison achieved 38 percent, while
Columbia Falls Increased only 23 percent. Taxable value per capita 1s
about 14 percent greater 1n Wh1tef1sh than 1n the other two towns.
Partly because of the low rate of Increase 1n taxable value per
capita, Columbia Falls has the highest levy, 98.0, of all the
municipalities in the study area. Wh1tef1sh has the second highest, 71
mills. Since 1971, both Whlteflsh and Poison mill levies have decreased
c
relative to comparable jurisdictions, from 9 percent above to 13
percent below for Whlteflsh, and from 18 percent above to 6 percent
below for Poison. The Columbia Falls mill levy has Increased from 103
percent to 120 percent of the average for comparable towns.6
The taxable value per capita 1s $928 1n Ronan, much higher than 1n
St. Ignatius and Hot Springs ($563 and $450 respectively). Since 1971,
taxable value per capita has grown only 8 percent in Hot Springs. This
has contributed to the 100 percent growth in the Hot Springs mill levy.
4Kal1spell, Miles City, Havre, Livingston, Lewistown.
^Whlteflsh, Conrad, Dillon, Hardin, Cut Bank, Shelby. For Poison:
Poison, Libby, Hamilton, Wolf Point, Conrad, Columbia Falls.
6Columb1a Falls, Hardin, Cut Bank, Conrad, Shelby, Wolf Point.
25
-------
Comparable towns7 have experienced only a 16 percent growth 1n the mill
levy. Ronan's mill levy has increased only 22 percent since 1971, and
o
has fallen relative to comparable jurisdictions, from 17 percent above
to 4 percent below. The mill levy in St. Ignatius has Increased 18
percent since 1971, and Is now 23 percent lower than comparable towns.®
State law limits cities and towns to levying 65 mills 1n support of
their budgets. However, two factors allow local Jurisdictions to exceed
this limit. First, they are guaranteed the right to Increase their
total budgets by up to 5 percent annually, notwithstanding mill levy
limitations. Second, they are allowed to exceed the mill levy limit to
pay for state-mandated services.
1.3. Bonded Indebtedness
Tables 14 through 18 show the June 1980 bonded Indebtedness of the
local taxing jurisdictions. St. Ignatius Is the only jurisdiction
with more than 20 percent of Its legal maximum of general obligation
bonds outstanding. Kalispell and Poison both have a sizeable balance of
revenue bonds outstanding, $589,000 and $945,000, respectively.
In June 1980 two of the larger school districts had over 50 percent
of their legal maximum of bonds outstanding: the Ronan elementary
district was at 97 percent, and the Wh1tef1sh high school district was
7Hot Springs, Valler, Jollet, Sheridan, Fairfield, Darby.
o
Ronan, Chinook, Townsend, Fort Benton, Thompson Falls, B1g Timber.
9
St. Ignatius, Broadus, Big Sandy, Circle, Culbertson, Chester.
26
-------
Table 14. Flathead County Taxing Jurisdictions Bonded Indebtedness,
1980.
Amount Legal
Outstanding Maximum
Flathead County
General Obligation
Bonds $234,000 $7,296,578
Revenue Bonds -0- N/A
Special Assessment -0- N/A
Columbia Falls
General Obligation
Bonds $ 32,000 $ 546,648
Revenue Bonds 91,000 *
Special Assessments 790,855 N/A
High School District -0- 6,707,144
Elementary District 61,400 6,707,144
Kalispell
General Obligation
Bonds -0- $ 2,804,994
Revenue Bonds $ 589,000 *
Special Assessments 818,850 N/A
High School District 1,580,000 11,876,777
Elementary District 360,000 6,665,302
Whlteflsh
General Obligation
Bonds -0- $ 716,537
Revenue Bonds -0- *
Special Assessments $ 567,465 N/A
High School District 2,214,000 3,394,941
Elementary District 210,000 3,139,118
*The limit Is 54 percent of taxable valuation for water and sewer
revenue bonds.
Sources : 1) Annual Reports of the various taxing jurisdictions.
2) Personal Communication with Superintendent of Schools,
Flathead County, Montana.
27
-------
Table 15. Lake County Taxing Jurisdictions Bonded Indebtedness, 1980.
Amount Legal
Outstanding Maximum
Lake County
General Obligation
Bonds -0- $2,444,734
Revenue Bonds -0- N/A
Special Assessments $57,400 N/A
Poison
General Obligation
Bonds $ 90,000 $ 499,812
Revenue Bonds 945,000 *
Special Assessments 767,000 N/A
High School District 728,000 4,293,515
Elementary District 116,000 3,591,930
Ronan
General Obligation
Bonds $ 16,915 $ 255,287
Revenue Bonds -0- *
Special Assessments 22,850 N/A
High School District 198,000 1,587,935
Elementary District 1,540,000 1,587,935
St. Ignatius
General Obligation
Bonds $ 38,610 $ 70,815
Revenue Bonds -0- *
Special Assessments 28,495 N/A
High School District 169,000 584,046
Elementary District 81,445 584,046
*
The limit 1s 54 percent of taxable valuation for water and sewer
revenue bonds.
Sources: 1) Annual Reports of the various taxing jurisdictions.
2) Personal Communication with Superintendent of Schools,
Lake County, Montana.
28
-------
Table 16. Hot Springs Bonded Indebtedness, 1980.
Amount
Outstanding
Legal
Maximum
General Obligation Bonds
-0-
$ 61,427
Revenue Bonds
-0-
~
Special Assessments
-0-
N/A
High School District
$519,557
598,235
Elementary District
373,309
394,368
*The limit Is 54 percent of taxable valuation for water and sewer
revenue bonds.
Sources: 1) Hot Springs Annual Report.
2) Office of Superintendent of Public Institution,
Helena, Montana.
29
-------
Table 17. Flathead County School Districts Bonded Indebtedness, 1980.
Amount Legal
Outstanding Maximum
Elementary Schools
West Valley
Deer Park
Fa1r-Mont-£gan
Swan R1ve{
Kalispell *
Columbia Falls
Creston
Cayuse Prairie
Demersvllle *
Helena Flats
K1la
Batavla
Pleasant Valley
Somers *
Lakesidj
Blgfork
Boorman *
Whlteflsh*
Evergreen
Marlon
0lney-B1ssell
Mountain Brook
Flathead (Kalispell)
Columbia Falls
Blgfork
Wh1tef1sh
$382,278
$ 366,856
-0-
112,886
28,000
285,854
9,100
333,350
360,000
6,665,302
61,400
6,707,144
119,000
221,353
268,000
265,659
9,000
228,923
98,000
197,448
144,000
278,290
24,000
112,976
-0-
100,391
42,000
566,149
-0-
699,561
350,000
1,715,252
38,000
51,960
210,000
3,139,118
441,000
1,220,426
286,000
422,682
202,250
319,664
-0-
69,841
High Schools
$1,580,000
-0-
932,000
2,214,000
$11,876,777
6,707,144
2,283,813
3,394,941
*
Includes 7th and 8th grade ANB with Middle School funding.
Source: Personal Communication with Superintendent of Schools,
Flathead County Montana.
30
-------
Table 18. Lake County School Districts Bonded Indebtedness, 1980.
Amount Legal
Outstanding Maximum
Elementary Schools
Charlo
$ 182,750
$ 431,854
Arlee
72,000
381,978
Elmo
-0-
57,301
Dayton
-0-
545,908
Valley View
-0-
98,377
Swan Lake
-0-
181,581
Poison
116,000
3,591,930
Ronan
1,540,000
1,587,935
St. Ignatius
81,445
584,046
High Schools
Pol son
$728,000
$4,293,515
Ronan
198,000
1,587,935
St. Ignatius
169,000
584,046
Charlo
182,750
625,478
Arlee
60,800
381,978
Source: Personal Communication with Superintendent of Schools, Lake
County.
31
-------
at 65 percent. Two Flathead County elementary districts had exceeded
their legal maximum — West Valley (104 percent), Cayuse Prairie (101
percent) — and four others were over 50 percent of their maximum —
Boorman (75 percent), Marlon (68 percent), 0lney-B1ssell (63 percent),
and Creston (54 percent).
1.4. Summary of Existing Conditions
Table 19 summarizes the general fiscal situation in the local
taxing jurisdictions. Taxable value per capita Is an indicator of
the relative capaclty of the local jurisdiction to finance needed
services. Local revenues per capita 1s an Indicator of the relative
effort put forth by the local taxpayers to finance public services.
Operating expenditures per capita are recurring expenses of the
jurisdiction. The mill levy 1s a measure of the relative burden placed
on local taxpayers to pay for services provided by their local
government.
Flathead County's fiscal capacity and effort are higher than 1n
comparable counties. Lake County's fiscal capacity Is slightly lower
than 1n comparable counties, but Its effort 1s similar. The ratio
of local revenues per capita to operating expenditures per capita
indicates the extent to which a municipality relies on intergovern-
mental revenues to pay recurring expenditures. In 1980, Flathead
County, Columbia Falls and Poison did not have to rely on Inter-
governmental revenues to pay operating expenses. Lake County relied
less on intergovernmental revenues than comparable counties did. In
32
-------
both counties, the level of relative effort exceeding the level of
relative capacity contributes to the relatively high level of
jurisdiction mills.
Kali spell's fiscal capacity Is the highest of all the cities and
towns, and 48 percent greater than 1n comparable cities. Whitefish's
fiscal capacity 1s 20 percent greater than 1n comparable cities. Fiscal
effort in both towns 1s also greater than comparable towns. Both
Kallspell and Whlteflsh rely less on Intergovernmental expenditures than
similar municipalities do.
The fiscal capacity situation in Columbia Falls, Poison, and Ronan
1s within 10 percent of that in comparable jurisdictions. Fiscal effort
1s significantly greater 1n Columbia Falls and Poison than other
jurisdictions. Relative effort is greater than relative capacity 1n
Columbia Falls and Poison. Columbia Falls relies less on inter-
governmental revenues to pay recurring expenditures than any
jurisdiction In the study area, a contributing factor to Its high mill
levy.
St. Ignatius and Hot Springs have a lower fiscal capacity than
1n similar towns. St. Ignatius has a very low fiscal effort, while Hot
Springs 1s about average. Hot Springs relies on intergovernmental
revenues to pay recurring expenditures more than any other city or town
1n the study area.
33
-------
Table 19. Local Taxing Jurisdictions, Selected Public Finance Data, 1980.
Taxable Value
per Capita
Local Revenues
per Capita
Operating Exp.
per Capita
Jurisdiction School
Mills Mills
Total
Hills
Flathead County
1,560
294
271
73.5
65.4
138.9
Comparable Jurisdictions
1,448
133
187
62.5
65.2
127.7
Lake County
1,425
126
141
56.5
70.3
126.8
Comparable Jurisdictions
1,508
125
170
42.1
67.9
110.0
Ka11spell
1,513
349
360
84.2
146.9
231.1
Comparable Jurisdictions
1,019
175
289
90.5
174.2
264.7
Whlteflsh
1,111
305
327
71.0
158.3
229.3
Comparable Jurisdictions
929
237
316
78.6
122.6
201.2
Columbia Falls
976
372
276
98.0
138.6
236.6
Comparable Jurisdictions
908
242
340
84.8
124.3
209.1
Poison
992
264
237
76.8
127.4
204.2
Comparable Jurisdictions
1,055
203
298
79.0
134.6
213.6
Ro nan
927
180
203
74.9
155.3
229.2
Comparable Jurisdictions
843
163
224
77.7
133.5
210.2
St. Ignatius
449
105
114
56.0
134.2
190.2
Comparable Jurisdictions
783
148
203
72.5
110,2
182.7
Hot Springs
601
148
196
78.8
138.8
217.6
Comparable Jurisdictions
769
136
208
67.4
110.2
177.6
Sources: 1) Local Government Annual Reports, various years.
2) Bureau of Census, U.S. Dept. of Commerce.
3) Montana Property Tax Hill Levies, 1979-1980, Montana Taxpayers Association.
-------
2. BASELINE PROJECTIONS
2.1. Taxable Value, Operating Expenditures, and Local Revenues
Baseline projections for the nine taxing jurisdictions are derived
from annual real ($1980) per capita rates of change, 1975-1980, for
revenues and expenditures, by category (see Appendix I for deflator
values). In certain instances, historic trends for the individual
revenue and expenditure categories were modified to accommodate changing
economic and political conditions (see Appendix I for rates of change).
Operating expenditures were estimated first; local revenues were then
estimated based on reasonable fiscal limits and expenditure
requirements.
Several Important assumptions underlie these projections. First,
they are based strictly on a continuation of 1970-19C0 economic
structural conditions, I.e., no significant oil or gas development or
major change in Industrial/commercial development is expected. Second,
they depend on the population projections developed 1n the Economic/
Demographic report. Third, state laws governing annexation are assumed
to remain essentially unchanged. Fourth, no major property reaDpralsals
are Incorporated 1n the projections. Finally, major anticipated capital
expenditures are not included here, but will be discussed briefly later.
Taxable valuation (TAXVAL), operating expenditures (OPEXP), and
local revenues (LOCREV) were projected through 1920 for each of the nine
taxing jurisdictions. Figures 1 through 9 graphically illustrate
35
-------
Figure 1: Flathead and Lake County Taxable Value Per Capita ($1980)
2400
2000
1600
1200
¦)
^Lake
Flathead^S*.
t
1 " -v
\
"* "*"¦ 1
800
400
1970
1975
1980
1985
1990
Sources: Bureau of the Census. U.S. Dept. of Commerce; Montana Property Tax Mill levies.
various years; Montana Taxpayers Assoc.; Western Analysis. Inc.
-------
Figure 2: Kalispell, Columbia Falls, Whitefish Taxable Value Per Capita ($1980)
Sources: Bureau of the Census, U.S. Oept. of Commerce; Montana Property Tax Mill levies,
various years; Montana Taxpayers Assoc.; Western Analysis. Inc.
-------
Figure 3: Poison, Ronan, Hot Springs, St. Ignatius Taxable Value Per Capita ($1980)
1250
1000
CO
CO
750
500
iPolson
. .Ronan —
Hoi \
iSprlngsX J
¦""Ov /
St Ignatius
)
\
»•«
1
250
1970
1975
1980
1985
1990
'Dotted Line* Repf«*«nf 40% Parameter Limitations
Sources: Bureau ol the Census, U.S. Dept. ot Commerce; Montana Property Tax Mill levies,
tonsil .toft.
-------
Figure 4: Flathead and Lake County Operating Expenditures Per Capita ($1980)
«*«" """""
r-
Flathead
^ ¦"*
Lake
CO
ID
1975
1980
1985
1990
Sources: Bureau of the Census, U.S. Dept. of Commerce; Local Government Annual reports,
various years; Western Analysis. Inc.
-------
Figure 5: Kalispell, Columbia Fails, Whitefish Operating Expenditures Per Capita ($1980)
Whllefish
^ "
Kalispell
^
, ^
_ ^ i
Columbia Falls
1975
1980
1985
1990
Sources: Bureau ol the Census. U.S. Dept. of Commerce; Local Government Annual reports,
various years, Western Aftrtyais, faC.
-------
Figure 6: Poison, Ronan, Hot Springs, St. Ignatius Operating Expenditures Per Capita ($1980)
/X
^ 4
r"* ^ ^
«*¦»
Ronan,
Poison
~
**
*
Hoi Springs
SI. Ignatius
l „„ - ., —
/ \ / ^
^ * """
1975
1980
1985
1990
Sources: Bureau of (he Census, U.S. Dept. of Commerce; Local Government Annual reports,
various years; Western Analysis, Inc.
-------
Figure 7: Flathead and Lake County Local Revenues Per Capita ($1980)
300
J
Nsv
I
Flathead
Lake
~
250
200
ro
150
100
50
1975
1980
1985
1990
Sources. Bureau of the Census. U.S. Dept. of Commerce; Local Government Annual reports.
various years; Western Analysis. Inc.
-------
Figure 8: Kalispell, Whitefish, Columbia Falls Local Revenues Per Capita ($1980)
Sources: Bureau of the Census, U.S. Dept. of Commerce; Local Government Annual reports,
various years; Western Analysis, Inc.
-------
Figure 9: Poison, Ronan, Hot Springs, St. Ignatius Local Revenues Per Capita ($1980).
40
1975 1980 1985 1990
Sources: Bureau of the Census. U.S. Dept. ot Commerce; Local Government Annual reports,
various years; Western Analysis. Inc.
-------
the historic and projected real per capita trends in TAXVAL, OPEXP and
LOCREV.
The projections for real TAXVAL per capita are based on the rate of
change occurring from 1975 to 1980, thus reflecting more recent
conditions. A general downward trend has occurred since 1970 in all
jurisdictions except Wh1tef1sh. The projections for Hot Springe anc!
St. Ignatius incorporate an assumed maximum decline of 40 percent 1n
real per capita TAXVAL, which is shown by the flat portion of the curve.
In all of the jurisdictions except Wh1tef1sh, the general downward
movement 1n real per capita TAXVAL 1s projected to continue. Wh1tef1sh
showed a modest Increase of .92 percent per annum in real per capita
dollars between 1975 and 1980.
The projections of real OPEXP per capita generally Indicate a
continued upward trend through 1990, except for Hot Springs which 1s
predicted to decline slightly before levelling off. Real LOCREV per
capita are projected to increase between 1980 and 1990, due to the
tightening of Federal revenue sharing and grant programs. Only Columbia
Falls and Flathead County show a drop over this period, though real
LOCREV per capita are not projected to fall to pre-1980 levels 1n these
two jurisdictions.
Tables 20 and 21 contain the projections of TAXVAL, LOCREV, and
OPEXP 1n 1980 dollars. Table 22 shows the projected percent change in
these figures over the period 1980-90. By 1990, real TAXVAL are
projected to decline by 20 to 46 percent in the cities and towns, except
Whiteflsh, and from 15 to 35 percent 1n the counties. Flathead County
may experience the least decline; St. Ignatius, the most; and Whiteflsh
1s expected to show a 17 percent Increase.
45
-------
Table 20. Projections of Selected Local Government Finance Data ($ 1980), 1985.
CT>
Tax Jurisdiction
Population*
Taxable Value
Local Revenues
Operating Expen<
Flathead
54,550
$75,333,550
13,692,050
$14,346,650
Lake
20,450
21,901,950
2,617,600
2,924,350
Kalispell
10,710
14,180,040
3,877,020
3,844,890
Wblteflsh
3,790
4,373,660
1,231,750
1,345,450
Columbia Falls
3,280
2,505,920
1,026,640
1,003,680
Poison
2,960
2,187,440
799,200
793,280
Ronan
1,580
1,200,800
301,780
352,340
St. Ignatius
850
218,450
94,350
119,850
Hot Springs
595
245,140
92,820
100,555
Population projections for the counties Interpolated from data developed in the Economic/Demographic
Conditions study. Projections of municipality populations derived from population trend, trend of percent
of county population, and continuation of 1970*1980 population change.
Source: Western Analysis, Inc.
-------
Table 21. Projections of Selected Local Government Finance Data ($ 1980), 1990.
Tax Jurisdiction
Population1
Taxable Value
Local Revenues
Operating Expenditures
Flathead
57,130
$69,184,430
$14,568,150
$16,510,570
Lake
21,850
17,611,100
2,906,050
3,583,400
Kali spell
10,770
12,471,660
4,060,290
4,232,610
Wh1tef1sh
3,880
4,644,360
1,342,480
1,478,280
Columbia Falls
3,450
2,059,650
1,155,750
1,138,500
Poison
3,130
1,746,540
870,140
945,260
Ronan
1,640
1,021,720
334,560
457,560
St. Ignatius
830
213,310
97,110
127,820
Hot Springs
590
198,830
98,530
99,710
Population projections for the counties developed in the Economic/Demographic Conditions study.
Projections of municipality populations derived from population trend, trend of percent
of county population, and continuation of 1970-1980 population change.
Source: Western Analysis, Inc.
-------
Table 22. Projections of Selected Local Government Finance
Data, Percentage Change ($ 1980), 1930-1990.
Tax Jurisdiction
Flathead
1980-1985
1980-1990
Lake
1980-1985
1980-1990
Kalispell
1980-1985
1980-1990
Whlteflsh
1980-1985
1980-1990
Columbia Falls
1980-1985
1980-1990
Poison
1980-1985
1980-1990
Ronan
1980-1985
1980-1990
St. Ignatius
1980-1985
1980-1990
Hot Springs
1980-1985
1980-1990
Taxable
Value
- 7
-15
-19
-35
- 9
-20
10
17
-17
-32
-21
-37
-15
-28
-44
-46
-28
-42
Local *
Revenues
-10
- 4
9
21
8
13
13
23
-11
0.2
7
16
10
22
3
6
3
10
Operating *
Expenditures
3
18
9
33
4
14
15
26
17
33
18
40
14
48
20
28
-15
-16
*W1thout planned capital facility expenditures,
Source: Western Analysis, Inc.
48
-------
In all jurisdictions, except Whitefish, TAXVAL are projected either
to decline faster than LOCREV and OPEXP, or to decline when LOCREV and
OPEXP are projected to increase between 1980 and 1990. The difference
between the two projected rates of change 1s greatest in Lake County,
Poison, Ronan, St. Ignatius, and Hot Springs, where the projected
disparity between the percentage change in TAXVAL and the percentage
change in LOCREV 1s approximately 50 percentage points. The rate and
direction of change imply that mill IpvIp*; will inrrpasp. nr that ratpc
for service charges, fees and licenses will continue to increase, or
both.
The ratios shown in Table 23 are used as measures of "reliance" on
local revenues to meet operating expenditures (LOCREV:OPEXP), and the
"burden" placed on taxpayers by operating expenditures (OPEXPrTAXVAL).
As the "reliance ratio" approaches unity, the jurisdiction relies more
on LOCREV than on intergovernmental revenues to meet OPEXP . The
"burden ratio" exhibits a similar direct response: as the requirements
for operating expenditures increase relative to a given level of taxable
value, the greater the burden on local taxpayers. Thus, the tax burden
Increases as the "burden ratio" approaches unity.
The ratios shown in Table 23 indicate a general decline in reliance
on local revenues, except in Hot Springs. Simultaneously, there 1s a
projected increase in burden. The decline in reliance on local revenues
is not due to projected increases in real per capita Intergovernmental
revenues, since these are not expected to increase, but 1s instead due
to more rapid increases in operating expenditures than in local
revenues. The measure of relative burden 1s expected to increase in
49
-------
Table 23. Selected Ratios of Local Government Finances ($ 1980), 1980, 1990.
LOCREV
WHT
1980-
OPEXP
mm.
, 1990-
LOCREV
jmr
0PEXP*
TAXVAL
-------
all jurisdictions due to the combined effects of generally falling
taxable value relative to generally rising operating expenditures. The
counties will continue to exhibit a smaller burden than t.he municipal-
ities, and the larger municipalities a generally smaller burden than the
smaller cities and towns.
2.2. Aggregate Change in Fiscal Conditions
Fiscal conditions in a local taxing jurisdiction may be analyzed on
the basis of the relation between OPEXP and TAXVAL and/or LOCREV, i.e.,
between reliance and burden. It is also useful to examine the change in
real operating expenditures per capita. These three indicators and
their movement over time provide insights into the requirements for
local revenue and the methods of revenue generation -- taxes, service
charges, and fees, licenses and fines. Individually, these indicators
may be misleading. When combined, however, they can indicate what
changes in fiscal condition to expect given the projected budgetary
Information.
Table 24 shows the projected changes in Fiscal Reliance, Fiscal
Burden, and Operating Expenditures Per Capita. Looking at each measure
alone, the projections imply a decrease in local reliance and an
Increase in local burden. This is 1n part an erroneous implication,
however, because Intergovernmental revenues are held constant in real
per capita terms in the projections, while real operating expenditures
per capita are projected to increase by 7 to 38 percent, except for a
14 percent decline 1n Hot Springs (Table 24). The increase in real
OPEXP per capita relative to the change in LOCREV is what causes the
51
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Table 24. Projected Changes in Fiscal Reliance, Burden
Real Operating Expenditures Per Capita ($1980), 1980-1990,
Flathead
Lake
Kalispell
Whlteflsh
Columbia Falls
Poison
Ronan
St. Ignatius
Hot Springs
Local Fiscal
Reliance
Local Fiscal
Burden
OPEXP/Capita
-19%
+ 41%
+ 7%
- 9%
+100%
+16%
- 1%
+ 42%
+ 9%
1
ro
**
+ 10%
+17%
-24%
+ 96%
+20%
-17%
+125%
+27%
i
00
K
+105%
+38%
•—•
1
+140%
+35%
+30%
+ 43%
-14%
Source: Western Analysis, Inc., Helena, Montana.
52
-------
reliance index to decline between 1980 and 1990. This decline In
reliance, per se, does not Indicate a shift to more intergovernmental
revenues, but rather that the growth in OPEXP exceeds the growth 1n
LOCREV. This projected growth 1n OPEXP, coupled with the apparent
decline 1n local reliance, as explained above, indicates that increased
intergovernmental revenues, or increases beyond those projected 1n local
revenues, will be needed to maintain a balanced budget. Generating
increased revenues from local or non-local sources would minimize the
overall budgetary pressure brought on by the projected Increases in
OPEXP, but the relative burden on the taxpayers would be at least as
high as projected, if TAXVAL continues to decline or if the increase in
OPEXP exceeds these already conservative projections.
As shown 1n Table 23, 1n 1980 Flathead County, Columbia Falls, and
Poison had sufficient local revenues to pay for operating expenditures.
The projections indicate that only Columbia Falls will be capable of
this in 1990, and then only with a sizeable Increase (96 percent) in the
burden on local taxpayers. In Hot Springs the ratio of LOCREV to OPEXP
would reach unity by 1990, if OPEXP declined by 14 percent and the
burden on local taxpayers increased by 43 percent.
The projections indicate Increasing budgetary pressures in all of
the taxing jurisdictions due to one or more of the following: 1) LOCREV
will increase at a slower rate than OPEXP; 2) non-local revenues will
decline relative to total revenues; 3) OPEXP will increase; or 4) TAXVAL
will decline.
Wh1tef1sh can be expected to face the least budgetary pressure
because of its relatively low Increase in real per capita OPEXP and its
53
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slight increase in TAXVAL, yielding a relatively low (10 percent)
increase in burden. Projections Indicate relatively small Increases in
budgetary pressure for Kallspell and Flathead County, primarily due to
the modest Increase predicted 1n real OPEXP per capita and the moderate
decline expected 1n TAXVAL.
These projections do not Incorporate anticipated non-recurring
major capital expenditures by the jurisdictions between now and 1990.
It 1s necessary to incorporate Informed judgments about possible
expenditures 1n order to portray 1990 fiscal conditions more accurately.
Since the winter of 1980-1981, we have been 1n contact with local
government officials, citizens and consulting engineers to assess the
probability of major capital expenditures by 1990, given the population
projections shown in Table 21 (see Appendix III). The results of this
inquiry appear 1n Table 25. Amortizing these likely capital
expenditures at 12 percent over 20 years produces the fiscal Impacts
shown In Tables 26, 27 and 28. Flathead County, Whlteflsh, Columbia
Falls and Ronan show the greatest relative Impact from the anticipated
capital expenditures.
Much discussion has taken place concerning the potential need for
decentralized sewage treatment facilities and collection lines at areas
of high population density along the east and west shore of Flathead
Lake. The general consensus 1s that at some future point 1t will be
necessary to construct such facilities, perhaps under a rural Special
Improvement District (SID) arrangement. Population growth, public
opinion, economics, and local, state and federal regulations will
54
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Table 25. Anticipated Major Capital Expenditures Occurring In the
Study Area by 1990.
Item Local Cost ($ 1980)
Flathead County
Courthouse and Jail Complex $10,000,000
Kali spell
Sewage Treatment Plant $ 700,000
Highway 93 Water Mains 150,000
Street Resurfaclnq 300.000
$ 1,150,00(5
WMteflsh
Sewage Treatment Plant $ 475,000
Water Filtration and Storage 600,000
Storm Drains 200,000
$ l.flS'.OM
Columbia Falls
Water Distribution Lines $ 550,000
Sewage Treatment Plant 600,000
Street Resurfacing i8S»5SS
5 1,250,000
Blgfork Area
Sewage Treatment Plant $ 225,000
Lakeside Area
Sewage Treatment Plant $ 270,000
Poison
Sewage Treatment Plant $ 175,000
Ronan
Upgrade Sewage Lagoon $ 250,000
Sewer Lines 125,000
Main Water Line 200,000
%575,000
Source: Personal communications with local government officials
and consulting engineers.
55
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Table 26. Projections of Selected Local Government Finance Data, Including Planned Capital
Facility Expenditures ($ 1980), 1990.
Tax Jurisdiction
Population
Taxable Value
Local Revenues
Operating Expenditures
Flathead
57,130
$69,184,430
15,906,620
$17,849,040
Lake
21,850
17,611,100
2,906,050
3,583,400
Kalispell
10,770
12,471,660
4,214,210
4,386,530
Whiteflsh
3,880
4,644,360
1,513,140
1,648,940
Columbia Falls
3,450
2,059,650
1,323,070
1,305,820
Poison
3,130
1,746,540
893,560
968,680
Ronan
1,640
1,021,720
410,540
533,540
St. Ignatius
830
213,310
97,110
127,820
Hot Springs
590
198,830
98,530
99,710
*
Population projections for the counties interpolated from data developed in the Economic/Demographic
Conditions study. Projections of municipality populations derived from population trend, trend of percent
of county population, and continuation of 1970-1980 population change.
Source: Western Analysis, Inc.
-------
Table 27. Selected Ratios of Local Government Finances, Including Planned Capital Facility
Expenditures ($ 1980), 1980, 1990.
cn
^4
Tax Jurisdiction
Flathead
Lake
Kali spell
Whitefish
Columbia Falls
Poison
Ronan
St. Ignatius
Hot Springs
LOCREV
OPEXP
1.09
.89
.97
.93
1.35
1.11
.89
.92
.76
.1930
OPEXP
ram
.17
.10
.24
.29
.28
.24
.22
.25
.35
•1990-
L0CREV
OPEXP
.89
.81
.96
.92
1.01
.92
.77
.76
.99
OPEXP
ram
.26
.20
.35
.36
.63
.55
.52
.60
.50
Source: Western Analysis, Inc.
-------
Table 28. Projected Changes in Fiscal Reliance, Burden and
Real Operating Expenditures Per Capita ($ 1980),
Including Major Capital Expenditures, 1980-1990.
Local Fiscal Local Fiscal
Reliance
Burden
OPEXP/Capita
Flathead County
-18%
+ 53%
+15%
Lake County
- 9%
+100%
+16%
Kali spell
- 1%
+ 46%
+13%
Whiteflsh
- 1%
+ 24%
+30%
Columbia Falls
-25%
+125%
+37%
Poison
-17%
+129%
+30%
Ronan
-13%
+136%
+61%
St. Ignatius
-17%
+140%
+35%
Hot Springs
+3Q%
+ 43%
-14%
Source: Western Analysis, Inc.
58
-------
dictate when these facilities are constructed. We have assumed that
they will not be constructed by 1990.
Recent conversations with the Flathead and Lake County School
Superintendents revealed that several major school facility projects are
underway or may take place by 1990. The Swan River Elementary District
1n Flathead County recently sold a $324,000 bond Issue to construct a
new K-8 school. Big Fork will probably construct a new K-8 school by
1990. Poison residents will vote this spring on a $1,345,000 bond issue
to remodel and expand their elementary schools. The Arlee Elementary
District has just completed an addition of five classrooms to its
school.
Table 29 shows the 1980 actual and 1990 projected operating
expenditures per capita 1n the nine taxing jurisdictions, with and
without the anticipated capital expenditures. As is expected, the
municipalities show generally greater percentage increases than the
counties, except for Hot Springs. These increases range from nine
percent to 35 percent without the capital outlays, and 13 percent to 61
percent with the capital outlays. Whltefish and Kail spell are forecast
to have the highest operating expenditures per capita; St. Ignatius and-
Hot Springs, the lowest.
59
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Table 29. Actual and Projected Operating Expenditures Per Capita
($ 1980), 1980, 1990.
* 1990**
1980 1990
Flathead County
271
289
312
Lake County
141
164
164
Kallspell
360
393
407
Wh1tef1sh
327
381
425
Columbia Falls
276
330
378
Poison
237
302
309
Ronan
202
279
325
St. Ignatius
114
154
154
Hot Springs
196
169
169
~
without anticipated capital facility expenditures.
With anticipated capital facility expenditures.
Source: Western Analysis, Inc.
60
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3. ALTERNATIVE PROJECTIONS
Tables 30 through 34 project the fiscal impact of the alternative
high and low population projections developed in The Flathead Basin: An
Economic Assessment. Because all the projections are based on projected
per capita rates of change, the lower population scenario results in
greater declines, or smaller increases, in taxable value, local revenues
and operating expenditures. The higher population scenario results in
greater increases, or smaller declines, in the same three variables.
The magnitude of the aggregate change is directly related to the
variation of the high or low scenario from the baseline scenario
described in Chapter 2.
The composite projected change in fiscal conditions is the same as
that shown in Table 28, because, in our judgment, none of the
alternative population scenarios differed from the baseline scenario
enough to justify altering the projected annual real per capita rates of
change in taxable value, local services, or operating expenditures.
61
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Table 30. Projections of Selected Local Government Finance Data, Low Population Scenario
($ 1980), 1990.
Local
Revenues
Operating Exf
>enditures
Tax Jurisdiction
Population
Taxable Value
W/0 Cap. Exp.
With Cap. Exp.
W/0 Cap. Exp. t
fith Cap. Exp.
Flathead
53,890
65,260,790
13,741,950
15,080,420
15,574,210
16,912,680
Lake
20,350
16,402,100
2,706,550
2,706,550
3,337,400
3,337,400
Kali spell
10,180
11,788,440
3,837,860
3,991,990
4,000,740
4,154,660
Whitefish
3,670
4,392,990
1,269,820
1,440,480
1,398,270
1 ,568,930
Columbia Falls
3,230
1,928,310
1,082,050
1,249,370
1,065,900
1,233,220
Poison
2,910
1,623,780
808,980
832,400
878,820
902,240
Ronan
1,580
984,340
322,320
398,300
440,820
516,800
St. Ignatius
770
197,890
90,090
90,090
118,580
118,580
Population projections for the counties developed in the Economic/Demographic Conditions study. Projections
of municipality populations derived from population trend, trend of percent of county population, and
continuation of 1970-1980 population change.
Source: Western Analysis, Inc.
-------
Table 31. Projections of Selected Local Government Finance Data, High Population Scenario
($ 1980), 1990.
* Local Revenues Operating Expenditures
Tax Jurisdiction Population Taxable Value W/Q Cap. Exp. With Cap, l-xp. W/0 Cap. Exp. With Cap. Exp.
Flathead
64,190
77,734,090
16,368,450
17,706,920
18,550,910
19,889,380
Lake
26,440
21,310,640
3,516,520
3,516,520
4,336,160
4,336,160
Kali spell
12,130
14,046,540
4,573,010
4,726,930
4,767,090
4,921,010
Whitefish
4,370
5,230,890
1,512,020
1,682,680
1,664,970
1,835,630
Columbia Falls
3,850
2,298,450
1,289,750
1,457,070
1,270,500
1,437,820
Poison
3,780
2,109,240
1,050,840
1,074,260
1,141,560
1,164,980
Ronan
1,980
1,233,540
403,920
479,900
552,420
628,400
St. Ignatius
1,010
259,570
119,180
119,180
155,540
155,540
~
Population projections for the counties developed in the Economic/Demographic Conditions study. Projections
of municipality populations derived from population trend, trend of percent of county population, and
continuation of 1970-1980 population change.
Source: Western Analysis, Inc.
-------
Table 32. Selected Ratios of Local Government Finances,
($ 1980), 1980, 1990.
1980
LOCREV OPEXP
rnxr mm.
Tax Jurisdiction
Flathead
1.09
.17
Lake
.89
.10
Kalispell
.97
.24
Whitefish
.93
.29
Columbia Falls
1.35
.28
Poison
1.11
.24
Ronan
.89
.22
St. Ignatius
.92
.25
Hot Springs
.76
.35
~
**Without planned capital facility expenditures.
With planned capital facility expenditures.
Source: Western Analysis, Inc.
Alternative Population Scenarios
—"I 5--—-—*
LOCREV LOCREV OPEXP OPEXP
mt mw mmi mm.
.88 .89 .24 .26
.81 .81 .20 .20
.96 .96 .34 .35
.91 .92 .32 .36
1.02 1.01 .55 .63
.92 .92 .54 .55
.73 .77 .45 .52
.76 .76 .60 .60
.99 .99 .50 .50
-------
Table 33. Projected Changes in Fiscal Reliance, Burden and
Real Operating Expenditures Per Capita ($ 1980),
Including Major Capital Expenditures, Alternative
Population Scenarios, 1930-1990.
Local Fiscal Local Fiscal
Reliance
Burden
OPEXP/Capita
Flathead County
-18%
+ 53%
+15%
Lake County
- 9%
+100%
+16%
Kali spell
- 1%
+ 46%
+13%
Whitefish
- 1%
+ 24%
+30%
Columbia Falls
-25%
+125%
+37%
Poison
-17%
+129%
+30%
Ronan
-13%
+136%
+61%
St. Ignatius
-17%
+140%
+35%
Hot Springs
+30%
+ 43%
-14%
Source: Western Analysis, Inc.
65
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Table 34. Actual and Projected 0P?rat!"?n^xp^dj5oof Jgno^fogo*
Alternative Population Scenarios, U 19c0), 19-0, l?iO.
Flathead County
Lake County
Kali spell
Whitefish
Columbia Falls
Poison
Ronan
St. Ignatius
Hot Springs
1980 1222* J222**
£71
2S9
312
141
164
164
360
393
407
327
381
425
276
330
37S
237
302
309
202
279
325
114
154
154
196
169
169
Without anticipated capital facility expenditures.
With anticipated capital facility expenditures.
Source: Western Analysis, Inc.
-------
APPENDIX I
Implicit Price Deflators
67
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Implicit Price Deflators (1972^1 DO)
1970
87.5
1971
93.7
1972
100.0
1973
106.7
1974
117.5
1975
128.9
1976
136.7
1977
147.6
1978
155.7
1979
168.1
1980
184.4
68
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APPENDIX II
Historical Taxable Value. Revenue
and Expenditure Growth Rates
69
-------
Per Capita Taxable Value, Revenue and
Expenditure Categorical Growth Rates (JllTCP)
Flathead County
Taxable Valuation
Miscellaneous
Total
Annual Per Capita Percent
Percent Change Change Used
1975-rp
-2.59 -2.59
Revenues
Property Taxes 1/107 on
Intergovernment Revenues i ?'?•»
Fees, Licenses & Fines i.j3
72.38 0.0
16.29
Expenditures . .
General Government
Public Safety 5.0
Health & Welfare "«'*?
0.41 0.41
Transportation _ 5;,6 5;I6
¦6.66
10.32
9.10
liandpui bablUll r ^ £
Education & Libraries n n
Capital Outlays £ 0
Miscellaneous
Total
Note: The reductions in the rates of change occur primarily due to
changing economic conditions and fiscal management. Miscellaneous
reduced to previous level Hue to aberration in last year, then projected
at rate shown.Health and Welfare was changed due to an assumed minimum
level of services. Property tax rates were lowered to maintain a
realistic rate of change given taxable valuation expectations and
expenditure based revenue requirements.
Source: Western Analysis, Inc.
70
-------
Per Capita Taxable Value. Revenue and
Expenditure Categorical Growth Rates ($1930)
(Continued)
Annual Per Capita
Percent
Lake County
Percent Chanqe
Change Used
1975-80
Taxable Valuation
-5.52
-5.52
Revenues
Property Taxes
-0.90
-0.90
Intergovernment Revenues
3.80
0.0
Fees, Licenses & Fines
12.70
(77-80) 5.56
Miscellaneous
-4.57
0.0
Total
0.95
Expenditures
General Government
17.72
0.0
Public Safety
5.92
2.9
Health & Welfare
5.92
2.0
Transportation
-4.11
0.0
Education & Libraries
0.0
0.0
Capital Outlay
-25.74
0.0
Miscellaneous
-9.71
0.0
Total
-3.35
Note: Modifications 1n the rates of change occur primarily due to
Inconsistencies 1n the data. Fees, licenses and fines had more a
consistent growth from 77-80, while Public Safety and Health and Welfare
were reduced to more prudent levels of increase given current
conditions.
Source: Western Analysis, Inc.
71
-------
Per Capita Taxable Value, Revenue and
Expenditure Categorical Growth Rates (5 19801
(.Continued)
Kalispell
Taxable Valuation
Revenues
Property Taxes
Intergovernment Revenues
Public Utilities
Fees, Licenses & Fines
Miscellaneous
Total
Expenditures
General Government
Public Safety
Transportation
Public Utilities
Debt Service
Intergovernmental
Miscellaneous
Total
Annual Per Capita
Percent Change
1975-80
-2.64
-0.61
12.20
3.42
-1.24
9.67
4.63
18.98
9.64
-8.02
0.31
-4.07
5.02
-1.39
2.86
Percent
Change Used
-2.64
0.0
0.0
3.42
0.0
0.0
(78-79)
6.7
4.8
0.0
0.31
0.0
0.0
-1.39
Note: Property taxes and fees, licenses and fines are not expected to
continue to decline because of the expected Increases in expenditures.
Reductions in the rates of increase in expenditures (general government,
public safety) are in response to changing economic conditions. The
halt in the decline in transportation assumes a minimum service
requirement.
Source: Western Analysis, Inc.
72
-------
Per Capita Taxable Value, Revenue ar.d
Expenditure Categorical Growth Rates "(,3 19G0)
(Continued)
Whitefish
Taxable Valuation
Revenues
Property Taxes
Intergovernment Revenues
Pub!ic Util1ties
Fees, Licenses & Fines
Miscellaneous
Total
Expendi tures
General Government
Public Safety
Transportation
Public Utilities
Debt Service
Intergovernmental
Miscellaneous
Total
Annual Per Capita
Percent Change
1975-30
0.73
-1.75
24.05
10.30
-0.72
7.31
11.58
3.30
7.89
16.63
44.35
-25.56
-25.42
4.56
3.55
Percent
Change Used
0.73
(78-80) 1.63
0.0
1.48
0.0
0.0
(77-80)
3.30
2.0
0.0
1.48
0.0
0.0
0.0
Note: Modifications to the rates of change occur due to data
inconsistencies; public utilities revenues appear to have reached a
maximum and are assumed to track with public utility expenditures
Fees, licenses and fines are not project to decline given expenditure
based revenue requirements, The Public Safety rate was reduced in
accordance with changes in economic conditions.
Source: Western Analysis, Inc.
73
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Per Capita Taxable Value, Revenue and
Expenditure Categorical Growth Rates [S 19C0)
— (Continued)
Annual Per Capita Percent
Columbia Falls Percent Chance Change Used
1975-80
Taxable Valuation -4,83 -4.83
Revenues
Property Taxes
0.92 0.92
Intergovernment Revenues 2.38 0.0
Public Utilities 3.42 3.42
Fees, Licenses & Fines -12.94 o.O
Miscellaneous 0,0
Total 7-21
Expenditures
General Government '.21
Public Safety 2.0
Transportation
Public Utilities 15.74 0.0
Debt Service 23.16 o.o
Intergovernmental -37.o2 0.0
Miscellaneous ~6'25
Total 6.76
Note: Modifications to rates of change In revenues occur due to data
Inconsistencies. Fees, licenses and fines are not projected to continue
to decline given the expected increases in expenditures. Reductions in
the rates of increase in expenditures reflect changing fiscal conditions
and maximum service needs.
Source: Western Analysis, Inc.
74
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Per Capita Taxable Value, Revenue and
Expenditure Categorical Growth Rates (S 1930)
(Continued)
Poison
Annual Per Capita
Percent Change
1975-80
Percent
Change Used
Taxable Valuation
Revenues
Property Taxes
Intergovernment Revenues
Public Utilities
Fees, Licenses & Fines
Miscellaneous
Total
Expenditures
General Government
Public Safety
Transportation
Public Utilities
Debt Service
Intergovernmental
Miscellaneous
Total
-5.45
-3.79
34.69
16.98
-3.10
14.07
10.65
5.92
4.81
6.40
3.91
1.34
18.13
19.17
10.47
(77-80)
(76-80)
(76-80)
(78-80)
-5.45
0.0
0.0
0.0
2.92
0.0
3.0
1.20
0.0
0.0
0.0
0.0
0.0
Note: Modifications to revenues reflect more recent growth patterns
which follow reduced increases in expenditures. Given changing economic
situations there is little reason to maintain general government
increases at historic levels; public safety and transportation can be
expected to maintain existing service levels by utilizing more recent
growth rates and still reflect the recent conservative fiscal policies.
Recently, public utilities have been declining in real terms.
Source: Western Analysis, Inc.
75
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Per Capita Taxable Value. Revenue and
Expenditure Categorical Growth Rates (T"1980)
(Continued)
Ronan
Annual Per Capita
Percent Change
1975-80
Percent
Change Used
Taxable Valuation
-3.91
•3.91
Revenues
Property Taxes
Intergovernment Revenues
Public Utilities
Fees, Licenses & Fines
Miscellaneous
Total
•10.62
8.45
10.04
-8.64
29.67
-0.17
(79-80)
0.0
0.0
2.9
0.0
0.0
Expenditures
General Government
Public Safety
Transportation
Public Utilities
Debt Service
Intergovernmental
Miscellaneous
Total
2.48
7.44
9.57
12.12
-29.15
-21.24
-32.78
-2.82
(76-80)
(76-80)
(79-80)
2.48
3.24
5.02
4.40
(79-80)
0.0
0.0
0.0
Note: Revenue modifications reflect continued expenditure increases.
Neither property taxes nor fees, licenses and fines can reasonably be
expected to continue their historic declines in light of these
expenditure Increases. Recent public utility charges have shown a more
gradual rise than the 5-year rate, but are assumed to grow in accordance
with public utility expenditures. Per capita rates of change reflect
recent modifications in the case of public safety, transportation, and
public utilities. Constant rates of change are used 1n those instances
where there are persistent data inconsistencies.
Source: Western Analysis, Inc.
76
-------
Per Capita Taxable Value. Revenue and
Expenditure Categorical Growth Rates (5 1980)
(Continued)
St. Ignatius
Annual Per Capita
Percent Change
1975-80
Percent
Change Used
Taxable Valuation
Revenues
Property Taxes
Intergovernment Revenues
Public Utilities
Fees, Licenses & Fines
Miscellaneous
Total
Expenditures
General Government
Public Safety
Transportation
Public Utilities
Debt Service
Intergovernmental
Miscellaneous
Total
-10.62
-10.62
-7.56
2.0
13.40
0.0
5.29
2.65
-15.76
0.0
60.04
0.0
4.18
7.63
2.0
1.58
1.58
-9.71
0.0
7.63
(77-79) 1.32
0.0
0.0
29.46
0.0
-32.78
0.0
7.55
Note: Given the expected increases in expenditures, property taxes and
fees, licenses and fines cannot be expected to decline. Increases in
public utility charges have been more moderate since 1977 and are
assumed to increase at this lower rate. Modifications to expenditures
reflect more conservative fiscal conditions than in the recent past
while maintaining existing service levels.
Source: Western Analysis, Inc.
77
-------
Per Capita Taxable Value« Revenue and
Expenditure Cateaorlcal Growth Rates (5 19fi0)
(Continued)
Annual Per Capita Percent
Hot Springs Percent Change Change Used
1975-80
Taxable Valuation -5.99 -5.99
Revenues
Property Taxes 3.33 0.0
Intergovernment Revenues 15.81 0.0
Public Utilities 2.46 2.46
Fees, Licenses & Fines -16.44 0.0
Miscellaneous 10.20 0.0
Total 3.71
Expenditures
General Government -11.42 0.0
Public Safety 6.13 0.0
Transportation -9.33 -3.0
Public Utilities n.17 0.0
Debt Service 0.0 0.0
Miscellaneous 29.51 0.0
Total 5-78
Note: Modifications to the rates of change are primarily due to data
Inconsistencies where no consistent trend or pattern could be
established. Reduction of negative trends for general government and
transportation are for assumed minimum standard or service levels.
Property taxes are held constant given the expected fall 1n taxable
valuation.
Source: Western Analysis, Inc.
78
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APPENDIX III
Personal Contacts
79
-------
Mel Wollan
Flathead County Commissioner
Kalispell, Montana
Joan Diest
Flathead County Commissioner
Kallspell, Montana
Henry Oldenburg
Flathead County Commissioner
Kali spell, Montana
Frank Guay
Former Flathead County
Commissioner
Kalispell, Montana
A1 Ryerson
Flathead County Sheriff
Kalispell, Montana
Leroy McDowell
Mayor
Kallspell, Montana
Norma Happ
Former Mayor
Kallspell, Montana
Bob Hafferman
Director of Public Works
Kallspell, Montana
01m Putnam
Former Acting Mayor
Whlteflsh, Montana
Paul Wells
City Engineer
Whlteflsh, Montana
Don Morrison
City Administrator
Whlteflsh, Montana
Cecil Hudson
Former Mayor
Columbia Falls, Montana
John Flodin
Director of Public Works
Columbia Falls, Montana
George Hanson
Former Mayor
Columbia Falls, Montana
Wally Vinnedge
Flathead County Superintendent
of Schools
Kallspell, Montana
Bill Burley
Lake County Commissioner
Poison, Montana
Don Corrlgan
Lake County Commissioner
Poison, Montana
Dean Grelner
Former Mayor
Poison, Montana
Norm Stedje
Former Mayor
Ronan, Montana
Mel Hamel
Former Mayor
St. Ignatius, Montana
Lee Ann Gottfried
City Clerk
St. Ignatius, Montana
Mill1e Mlnton
Former Mayor
Hot Springs, Montana
Jim Newman
Mayor
Hot Springs, Montana
Glenr.edene Farrell
Lake County Superintendent
of Schools
Poison, Montana
80
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;>licfc Verma
Flathead County Planner
Kali spell, Montana
Dave EHckson
Lake County Planner
Poison, Montana
Marc Spratt
Flathead 208 Study
Kali spell, Montana
Greg Groepper
Administrator
Property Tax 01715*100
Department of Revenue
Helena% Montana
Don Dooley
Local Government Services
Division
Department of Administration
Helena, Montana
Ruth Howard
Hot Springs Planning Board
Hot Springs, Montana
Dick Bean
Lakeside Sewer Board
Lakeside, Montana
Walt Wagner
Flathead Bank of B1g Fork
81q Fork* Montana
Dennis Carver
Morrtson-Malerle, Inc.
Kallspell, Montana
Doug Daniels
Thomas, Dean, and Hosklns
Bozemn, Montana
Tim Berry
Morrtson-Maierle, Inc.
Helena, Montana
Paul Stokes
Stably Engineering and Associates
Kallspell, Montana
81
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