Kalispell council backs resiliency grant for public‑safety generator, approves $6M SRF financing for water tank

The Kalispell City Council voted March 2 to support application for a Montana Resiliency Fund grant to add permanent backup power to the public‑safety building that houses police and fire operations.

Nelson Luring, community development manager, told the council the state program is administered by Montana Disaster and Emergency Services and the published award cap for this solicitation was $300,000 given the number of communities that expressed interest. Luring said the city’s preliminary project estimate is about $380,000 and that the grant requires a 25% local match; staff said potential match funding sources include police and fire budgets or next fiscal year appropriation depending on award timing. Councilors noted that the city experienced an extended outage during a recent wind event and that the project would improve critical operations.

Council approved a resolution supporting submittal of an application by staff; the application deadline was described in the meeting as March 6.

Separately, the council approved Resolution 6315 authorizing issuance of Series 2026A and 2026B bonds (an SRF loan package) to finance Water Storage Replacement Tank No. 2. Staff described the package as a $6 million SRF loan from DNRC, with $3 million in forgiveness if specific DNRC conditions are satisfied; the loan term discussed was 20 years at approximately 2.5% to be repaid from water fees. Council asked for and received confirmation that the debt service will be covered by utility fees.

Both actions were approved by roll‑call votes. Staff said next steps include submitting the grant application, reporting awards to council and finalizing SRF loan documents and bond closings through Finance and Public Works.