1. Sandra Guynn, NC 4, announced that NC 4’s meeting is Thursday at 6:30 p.m. at the Great Falls Pre-Release Center. She extended an invitation for everyone to attend and learn about what the Pre-Release Center does to help the community.

Assistant Fiscal Services Director Melissa Kinzler reported that state statute requires the City to hold a public hearing before passing a resolution stating its intent to increase property tax revenues. Section 15-10-420, MCA, authorizes a property tax increase of one-half of the average rate of inflation for the prior three years. The Consumer Price Index showed a 2.2245% average increase as provided by the Montana Department of Revenue. Therefore, the City is allowed and is proposing a 1.112% property tax increase. The inflationary increase amounts to $112,728 of new revenue in the general fund. The fiscal impact of the proposed increases for inflation for a residential home with a taxable market value of $100,000 would be approximately $4.72 per year.

Ms. Kinzler requested that the City Commission conduct the public hearing and adopt Resolution 9838.

Mayor Stebbins declared the public hearing open.

Speaking in opposition to Resolution 9838 was John Hubbard, 615 7th Avenue South, due to the recession.

No one spoke in support of Resolution 9838.

Mayor Stebbins closed the public hearing.

Commissioner Jolley moved, seconded by Commissioner Beecher, that the City Commission adopt Resolution 9838, Intent to Increase Property Tax.

Mayor Stebbins asked if there was any discussion amongst the Commissioners. No one responded.

Motion carried 5-0.

City Manager Greg Doyon reported that the budget is described as relatively static. In light of the economy, he highlighted that the City will be able to continue to provide the same levels of service. Mr. Doyon provided an overview of the budget process. The budget work sessions and revenue outlook began on March 17th, and continued with presentations from the respective departments on March 24th and 25th, and a follow-up session was held on July 1st. The message from the Commission was that, in these tight economic times, if possible, to maintain services at the present levels and to take a look at stimulus opportunities. One major distinction in this budget is that the Commission decided to place on the ballot a public safety mill levy for both police and fire. This budget reflects as though those were passed to see the impact in the operating budget. If it doesn’t pass, the revenue isn’t there and the expenses are not going to be made. Mr. Doyon reported that this “maintenance” budget will keep tax and fee increases to a minimum, and the City is able to meet the contractual commitments to employees. He reminded the Commission that buyouts for senior staff are built into the budget. The golf courses and swim pools continue to be risk areas. There was a reduction in the full-time employee count due to reorganization by four. The public safety mill levy that is being considered will add 10 sworn officers to the Police Department, along with seven support staff, and 16 firefighters.

Assistant Fiscal Services Director Melissa Kinzler reported that the original proposed budget was presented June 16, 2009, at the work session. After it was presented, it was handed out to the public and has been available on the City’s website. Ms. Kinzler reviewed the total City-wide revenues and expenses for the budget, as well as total general fund revenue and expenditures. In conclusion, Ms. Kinzler requested that the City Commission conduct the budget hearing, consider any budget changes, and adopt Resolution 9839. The taxable valuation will not be available until September 15, 2009.

Mayor Stebbins declared the public hearing open.

Speaking in opposition to Resolution 9839 were:
Larry Rezentes, 2208 1st Avenue North, suggested that the budget be tabled for the reason that he believes there were misrepresentations and inadequacies that have been presented regarding the Electric City Power budget. He requested that a cash flow financial statement and balance sheet be prepared.

Aart Dolman, 3016 Central Avenue, concurred with Mr. Rezentes’ statements.

Richard Liebert, 289 Boston Coulee Road, suggested that reasonable and achievable conservation goals be set in each department. Mr. Liebert also suggested that Cable 7’s budget be restored to what it was in 2008, and that a transition and exit plan be implemented for the Animal Shelter. Mr. Doyon responded that whether the private/public partnership that the City is looking to create with the Foundation will be sustainable with the Foundation’s fund raising ability has been something he has been struggling with for months. Until he is convinced that a financed plan for creation of a new shelter and ongoing operations are in place, he is not going to make that transition. Mr. Doyon concluded that this matter is certainly being addressed on a regular basis with members of the Foundation. Lastly, Mr. Liebert read clauses from SME’s letter regarding commencement of construction and the Fire Service Agreement and contended that SME owes for one and one-half months of fire service.

No one spoke in support of Resolution 9839.

Mayor Stebbins closed the public hearing.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9839.

Mayor Stebbins asked if there was any discussion amongst the Commissioners.

Commissioner Jolley expressed that she shared the same concerns about the Electric City Power fund, and would have been happier if the employee raises were not 3.25%.

Commissioner Beecher believes this to be a good budget document; it has been thoroughly discussed in the public with several public meetings; and, the City is continuing to provide a good level of service. Commissioner Beecher would like to provide additional public safety coverage and that is why the public safety mill levies are put forth to the public to decide. In response to Mr. Rezentes and Mr. Dolman, Commissioner Beecher couldn’t disagree more with their comments about voodoo accounting. He invited them to attend the audit presentation later this year with the CPA’s.

Mayor Stebbins thanked City staff for adhering to what the Commission asked for when the budget process began, which was to make it lean and mean.

Commissioner Bronson made aware that Mr. Doyon, Ms. Patton and others went through the last budget and looked at various line items of department’s that were submitted in the past. He thinks the public should be happy that there is a dedicated staff in response to the Commission’s concern to present a maintenance-type budget. He would like to see some money spent on other areas, but realized there weren’t funds to do it right now.

Motion carried 5-0.

Interim Planning Director Bill Walters reported that Williamson Fencing and Sprinklers has prepared plans to move their business to a site along 8th Street South immediately west of the City’s Fire Training Center. Applications associated with development of the site include vacation of segments of 19th and 20th Avenues South and 20th and 21st Alleys South as proposed by Resolution 9841, and annexation to the City and replatting the involved property into a single 2.8 acre lot. Ordinance 3040 assigns a City zoning classification of M-1 Mixed Use District to the property requested to be annexed and grants a conditional use permit for a contractor yard, type II. Mr. Walters requested that the City Commission adopt Resolution 9841, and accept Ordinance 3040 on first reading and set a public hearing for August 18, 2009, when the final amended plat, the resolution vacating certain right-of-way, and annexation documents will also be considered.

Commissioner Rosenbaum moved, seconded by Commissioner Bronson, that the City Commission adopt Resolution 9841.

Mayor Stebbins asked if there was any discussion amongst the Commissioners or inquiries from the public. No one responded.

Motion carried 5-0.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher and Bronson, that the City Commission accept Ordinance 3040 on first reading, and set a public hearing for August 18, 2009.

Mayor Stebbins asked if there was any discussion amongst the Commissioners or inquiries from the public. No one responded.

Motion carried 5-0.

Interim Planning Director reported that Ordinance 3034, which will amend the Land Development Code to permit certain types of wind-powered electricity systems within the City subject to compliance with specified standards and conditions, has received a fairly thorough review including consideration at a Work Session held May 5th and a public hearing held July 7th.

In addition, at the conclusion of a public hearing held March 10, 2009, the City Zoning Commission unanimously passed a motion recommending the City Commission adopt the provisions contained in Ordinance 3034.

Commissioner Bronson moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Ordinance 3034.

Mayor Stebbins asked if there was any discussion amongst the Commissioners.

Commissioner Bronson stated that, since the last meeting and hearing the concerns expressed about setback requirements, he heard from one representative. After speaking to his colleagues, that representative came to conclusion that at this point in time with the general interest that there seems to be at installing small wind generation systems in this community, that it would be best to go forward with an ordinance, as it is currently drafted, and then address needed changes that may arise because of changes in technology over the next several months.

Mayor Stebbins asked if there were any inquiries from the public.

Ron Gessaman, 1006 36th Avenue NE, believes this matter should have been listed under “Old Business.” He further commented that this ordinance is structured so that no small wind generation can be located in Great Falls.

Motion carried 5-0.

Public Works Director Jim Rearden reported that Ordinance 3042 pertains to a portion of 25th Alley NE, which extends from 6th Street NE to 8th Street NE. It is bordered on the north by 20 residences, and on the south by an open field adjacent to Wal-Mart. The alley has been plagued by speeding and excessive traffic volume for many years. Several years ago the City installed speed bumps and parking blocks to narrow the alley, which has helped, but the problem still persists. Mr. Fred Dahlman of 632 25th Avenue NE has circulated a petition to convert the alley to a one-way from east to west in an effort to divert most of the North Middle School traffic. He received signatures from 15 of the 20 residents, and also presented the issue to NC 3. Mr. Rearden stated that the Commission’s positive action tonight would set the final reading for August 4, 2009.

Commissioner Bronson moved, seconded by Commissioner Beecher and Rosenbaum, that the City Commission accept Ordinance 3042 on first reading and set final reading for August 4, 2009.

Mayor Stebbins asked if there was any discussion amongst the Commissioners or inquiries from the public. No one responded.

Motion carried 5-0.

Fiscal Services Director Coleen Balzarini reported that on March 3, 2009, the Commission authorized Resolution 9814 which gave City staff direction to move forward with the negotiated sale of $2,000,000 in tax increment bonds, and approved D.A. Davidson & Co. as the underwriter for the sale. She reviewed the parameters within that Resolution. The documents were executed on July 9, 2009. Approval of Resolution 9815 would ratify and set forth the forms and terms of the bond.

Commissioner Jolley commented that the complete resolution was not included in the Friday packets. She asked for and received from the City Clerk the full 38 page resolution, but was not sure the other Commissioners received the document.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9815.

Mayor Stebbins asked if there was any further discussion amongst the Commissioners. No one responded.

Mayor Stebbins asked if there were any inquiries from the public.

Ron Gessaman, 1006 36th Avenue NE, commented that he has consistently been opposed to tax increment financing. Mr. Gessaman stated that taxpayer money is not going into the revenue being used to pay for all of the other City services, and inquired what the interest would total. Ms. Balzarini responded that she would have to look at the debt service schedule for exact numbers. She further clarified that incremental taxes only occur when the development within a district generates additional taxes. Mr. Gessaman expressed his belief that this development could have taken place without this tax increment financing.

Brett Doney, with the Great Falls Development Authority, residing at 3048 Delmar Drive, commented that he supports this Resolution and the use of tax increment financing for economic development. The City’s history with tax increment financing has been very successful. Downtown is the oldest district and has generated over $38 million dollars in property tax revenue that would not have existed were it not for the improvements in the district. Of that amount, $20 million was reinvested downtown, and $18 million was returned to the other taxing jurisdictions. He also discussed the Malt Plant district, and the West Bank Urban Renewal area. To correct some misstatements, Mr. Doney explained that the Federal Courthouse could not have been built if the City had not agreed to provide a second means of egress. The tax increment financing is being used to provide that second means of egress. All of the funds to pay for that bond are coming out of the taxes paid by the new construction there, and not costing taxpayers of the City a dime. He applauds the City for use of a good economic tool.

Commissioner Jolley stated that she doesn’t believe she received the entire Resolution and, therefore, couldn’t vote on something she didn’t have in front of her.

Motion carried 4-1 (Commission Jolley dissenting).

Fiscal Services Director Coleen Balzarini reported that Resolution 9844 will authorize minor modifications to two Special Improvement Lighting Districts in the downtown area. The Kathryn Building Condos on the corner of 5th Street South and 1st Avenue South, with the assistance of the Business Improvement District, has made application for an improvement to the downtown area. Included in that is the installation of four period lights which would extend that period lighting concept into an area where it currently does not exist. That requires a modification of the District for the period lighting and it also requires the removal of two lights from the Commercial Lighting District that the Kathryn Building is located in. There will be no boundary changes to the Commercial District. There are boundary changes to the Period Lighting District. Pursuant to state statute, it is considered minor modifications. The cost increase to one district is 0.0046%. The individual property owners will see a larger increase on the lighting costs due to the type of lights they have agreed to install. Ms. Balzarini requested that the City Commission pass Resolution 9844 to set definitive boundaries and lights clearly defined in the districts.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission adopt Resolution 9844.

Mayor Stebbins asked if there was any discussion amongst the Commissioners or inquiries from the public. No one responded.

Motion carried 5-0.

Commissioner Bronson moved, seconded by Commissioner Beecher, to appoint Howard Hahn and Anders Blewett for three-year terms through March 31, 2012, to the Advisory Commission on International Relationships.

Mayor Stebbins asked if there was any discussion amongst the Commissioners or inquiries from the public. No one responded.

Motion carried 5-0.

Commissioner Jolley moved that the City Commission hold open the request for board members, and to re-advertise.

Motion failed for lack of a second.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, to appoint Olaf Stimac to fill the remainder of a term through December 31, 2011, to the Electric City Power Board of Directors.

Mayor Stebbins asked if there was any further discussion amongst the Commissioners.

Commissioner Jolley commented that it might look good on a resume; but that she would feel sorry for Olaf if he gets on this board.

Mayor Stebbins asked if there was any further discussion amongst the Commissioners or any inquiries from the public. No one responded.

Motion carried 5-0.

City Manager Greg Doyon thanked Kristal Kuhn for her hard work in her capacity at the Fire Department. What the Commission saw tonight was very little of what she has been doing to get the City up to speed in terms of its emergency preparedness.

Mayor Stebbins opened the meeting to Petitions and Communications.

Mayor Stebbins read a Proclamation of Commendation, Appreciation and Gratitude to Jim Heckel, retiring Library Director, and David Gliko, retiring City Attorney, for their years of service to the City of Great Falls.

There being no further business to come before the Commission, Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the regular meeting of July 21, 2009, be adjourned at 9:03 p.m.

Motion carried 5-0.

Minutes Approved: August 4, 2009