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City OK's $42.5M capital plan

by HEIDI DESCH
Daily Inter Lake | April 11, 2017 4:27 PM

Whitefish’s five-year capital improvement plan calls for funding 153 projects at a total estimated cost of $42.5 million.

City Council April 3 adopted the plan, which plans for the construction and financing of major projects for the city over time.

Finance Director Dana Smith said the plan is not an approval of specific projects, but rather a planning document that communicates the city’s intent to preserve, improve and expand facilities. The plan considers maintaining, and in some cases, expanding current levels of service, she noted.

“This is a flexible plan to respond to the changing needs of the city,” she said.

The city last adopted a capital improvement plan in 2015 with a total estimated cost of $47.2 million for 265 projects. Under state law, the city must update the plan at least every two years.

The new plan runs through 2022.

Some city departments proposed capital improvement projects that did not balance with available funding, according to Smith. Staff brainstormed possible funding options to meet the cash reserve goal for future years and projects without funding were moved to the “unscheduled projects” column.

City Manager Adam Hammatt said staff worked hard to keep “red off the page” by ensuring funding is planned for projects and by talking about what projects are absolutely necessary.

“We take a hard look at increases, but sometimes we have to have small incremental increases — that’s part of doing business,” he said. “This is about forecasting ahead to be ready.”

The bulk of the expected spending is slated for state-required upgrades to the city’s wastewater treatment plant. Wastewater improvements are estimated at $20.8 million.

The state Department of Environmental Quality in 2012 issued an administrative order requiring the city to bring the treatment plant up to required standards by the end of 2021. Estimates for the wastewater plant put a plant upgrade at $17.5 million including the design costs. Also related items include $250,000 for manhole and pipe rehabilitation.

“The wastewater plant is dominating the plan,” Smith said. “Close to half of the plan is for the wastewater plant.”

Water system improvements are estimated at almost $7 million with the largest item being a new water reservoir at Montana 40 for an estimated cost of $3.5 million. The city expects to spend $1 million on the Karrow Avenue Loop, which would install a new water main to improve distribution in the south and southwest areas of town. The city also plans to spend $1 million upgrading the distribution system in connection with the reconstruction of U.S. 93 between Second and 13th streets.

The city last year completed a water and wastewater rate study, which prompted the city to increase its standard residential water rate by about 25 cents per month. That rate increase means the city is in “good shape” to fund water projects, Smith noted.

The city plans to spend $2.3 million on parks and recreation projects. The largest ticket item is $1.7 million for improvements to Depot Park that were delayed due to the City Hall and parking structure cost increases. Constructing and landscaping a new parking lot at 55 Woodland Place for City Beach use is estimated to cost $210,000.

“We looked at what could be cut from parks,” Smith said. “But that would have meant cutting everything that was important to save money.”

Whitefish plans to spend $3.4 million on streets — the biggest expense is $625,000 for annual pavement maintenance through chip seals and overlays.

The city expects to spend $7.7 million on resort-tax funded projects, most of which is for street improvements including the reconstruction of Somers Avenue form East Second to East Eighth Street, State Park Road from U.S. 93 to the railroad tracks, and East Edgewood Drive from Wisconsin Avenue to the city limits. The city plans to spend $645,000 from resort tax funds for various parks and recreation projects.

Falling into the category of unscheduled projects is $2.4 million in bike and pedestrian path projects. The city is anticipating spending $1.1 million to construct an underpass under Baker Avenue with shared use paved path to create a pedestrian link between downtown and the Railway District. The city has marked $400,000 in funds from the tax increment district and the remainder is contingent upon receiving a Montana Department of Transportation Alternatives Program grant.

Smith notes an important change coming in fiscal year 2021 — sunset of the city’s TIF district — will result in a net revenue increase for the city of more than $600,000. The plan proposes that a portion of those funds be reserved for capital improvements for police, fire, and parks and recreation.

“This increase does not adversely impact property tax payers as this amount is the city’s proportionate share from the sunset of the tax increment district,” she said. “The school district, county and state also receive a proportionate share without an increase to property tax payers.”

The police department capital improvements program calls for spending $222,000 on new vehicles, while the fire department plan calls for spending $373,000 also for vehicles.

By comparison for the total capital improvement plan, the city of Columbia Falls expects to spend about $6 million as part of its capital improvements plan and the city of Kalispell’s plan calls for $70.4 million.