Mayor covers range of topics during state of city talk

Whitefish's Mayor and City Manager gave a quick overview of the state of the city last week during a breakfast hosted by the Whitefish Chamber of Commerce.

Whitefish Mayor John Muhlfeld led off the talk to about 50 people by noting that City Council is expected to update its annual goals during meetings in May.

“We will be setting our priorities during our annual goals meeting,” he said. “Council and staff set our short-term and longterm goals. We welcome you're participation.”

The city's resort tax continues to exceed expectations with the city collecting $3.86 million last year compared to $3.6 million in 2016. The tax is collected on lodging, bar and restaurant food and drinks and “luxury” retail items.

The tax is expected to result in $1 million in tax rebates is fiscal year 2019 for Whitefish property owners, he noted. The tax was first implemented at 2 percent in 1996 with 65 percent collected going to street and water projects, 25 percent to a property tax rebate and 5 percent kept by business owners to administer the tax. Voters in 2016 approved a 1 percent increase in the tax with 75 percent of collections going to the Haskill Basin conservation easement and 25 percent toward property tax rebates.

“The resort tax has done really good things,” Muhlfeld said. “It's a tax we can celebrate.”

He noted that the reconstruction of Somers Avenue set to begin in May at a cost of $1.65 million and the reconstruction already underway of a portion of Central Avenue at a cost of $939,000 are both being funded by resort tax dollars.

City Manager Adam Hammatt echoed the benefits of the resort tax.

“It's a tax that people can really see the benefits,” he said. “Tourists also pay it and it's nice to know that those who are using our services are paying for the wear and tear.”

Muhlfeld said the city will likely go before the voters in 2025 to ask for a reauthorization of the tax.

“We're determining where to allocate those funds,” he said. “To keep in the same categories or look at other areas such as emergency services, public transit and wastewater infrastructure.”

Muhlfeld ran through a list of projects being worked on in the city.

Work on the Depot Park master plan continues this summer beginning with removal of the Depot Park building, which he said the city is glad to see the contractor hired for the job has decided to save the building. At Riverside Park, the city plans to deal with bank erosion and improve access to the Whitefish River. Wayfinding signs are planned to be installed along the city's trails.

Also on the project list is a 24-space parking lot expected to open this summer on Woodland Place near City Beach.

“We like to take any opportunity we can to expand parking at City Beach,” he said.

Last summer about 6,500 boats passed through the aquatic invasive species inspection stations at City Beach and Whitefish Lake State Park.

“That was very successful last year and we will continue that this year,” he said. “Whitefish Lake is our water supply and we need to do everything we can to protect it.”

Mentioning a number of construction and development projects on Wisconsin Avenue, he noted that the city has already begun discussions with the Montana Department of Transportation on issues in the corridor.

“We're hopeful that in future years we can have meaningful pedestrian improvements,” he said. “We'd like to see a streetscape design similar to what is on Highway 93 West.”

Muhlfeld touched briefly on the city's tax increment finance district noting that it collected $5.3 million in fiscal year 2017 and TIF dollars have been used on a number of projects around the city. The TIF is set to expire in 2020 and the city will be look to develop a new district and determine how to allocate the $1.9 million in TIF that hasn't been earmarked yet.

“We want your ideas,” he said.

Hammatt gave a preview of the draft fiscal year 2019 budget he will soon deliver to City Council. He noted that the city's budget has to factor items like emergency services that included 12,500 police calls in 2017 and 1,750 fire and ambulance calls last year.

“I will provide a balanced budget every single year,” he said. “We will begin looking at where we can make cuts and where we need to provide services to handle massive growth.”

He said he expects Whitefish to continue to have one of the lowest mill rates in the state and that Council will likely levy less mills than allowed.

Hammatt noted that the city's cash reserves have been dipped into during past recessions and the plan is to continue building those back up.

“It's slow going, but we want to make sure we're prepared financially for the next recession,” he said.