BOARD OF DIRECTORS MEETING OCTOBER 24, 2017

Table of Contents

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12

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Agenda

September Minutes

Financial Statements

Board Attendance

Budget Trends - Rep Hertz

Draft Comments for Downtown Plan Hearing

Letters from Members on Main Street Traffic Reduction

Legislative Report

Membership Report

Commercial Construction Report

Marketing Report

Administrative Report

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Kalispell Chamber of Commerce Regular Board of Directors Meeting

Chamber Conference Room, 15 Depot Park, Kalispell, MT Tuesday, October 24, 2017 - 7:00am-8:30 am

Agenda

I. 7:00 am Call to Order: Joe Carbonari, Chairman of the Board II. 7:00 CONSENT AGENDA – Dave Hergesheimer, Secretary/Treasurer

• Minutes of the September 26, 2017 board meeting • Board Attendance 2017 (information only) • Financial report as of September 30, 2017

III. 7:10 BOARD ACTION AND DISCUSSION ON INITIATIVES AND PROGRAMS

• Status report on state budget with updates on meetings with Governor’s Chief of Staff, Speaker Pro Tem Hertz, and Senate Tax Chair Blasdel;

• Downtown Update: Banquet theme, fund-a-need, Tracy Huggins presentation, draft comments for Nov 6 public hearing, letters from members re Main Street

• President’s Report: American Airlines to Texas, retreat – update of strategic plan and 2018 agenda, membership report

• Marketing Report: Kate Lufkin: MFG Day, Timber Tour, Small Business Saturday • Administrative Report: Katie Brien: Banquet – attendance, auction, raffle, sponsors;

Amalfi

IV. 8:15 REPORTS, ACTIVITIES, AND ANNOUNCEMENTS (information only) • Activities and Programs:

Oct 19 Timber Tour at Weyerhaeuser and FH Stoltze Oct 25 50th Anniversary Unwind at Applied Materials Nov 9 113th Annual Banquet and Auction Nov 25 Small Business Saturday Nov 28 Board Retreat, First Interstate Bank: retreat 1:00-4:00; social 4:00-5:00

with spouses Dec meeting The regular Dec board meeting date is Dec 26, and the Tuesday before

that is Dec 19 when Joe will be out of town. How would the board like to handle the Dec meeting?

• Board Announcements

V. 8:30am Adjourn Board Meetings Nov 28: Board Retreat 1-5 pm Dec: To be determined

Kalispell Chamber of Commerce Board of Directors Meeting 15 Depot Park, Kalispell, MT 59901

Tuesday, September 26, 2017

MINUTES

Board Members Present: Lisa Brown, Joe Carbonari, Jason Cronk, Jesse Davis, Mark Flatau, Dawn Hendrickson, Bob Herron, Doug Houtz, Jane Karas, Mike Nye, Brian Pelc, Mike Pence, Tom Ray, Doug Russell, Mike Smith, Laura Taylor, Kary Tonjum, Rick Weaver Board Members Absent: Mark Hensley, Dave Hergesheimer, Mark Johnson, Butch Larcombe, Maria Phelps, Courtenay Sprunger, Tagen Vine, Jim Wright Staff Present: Joe Unterreiner, Katie Brien, Kate Lufkin Guests Present: Mayor Mark Johnson Notice of the meeting having been given, the meeting was called to order by Joe Carbonari at 7:05am. CONSENT AGENDA

1. Minutes of the August 2017 meeting were reviewed. Bob motioned to approve the minutes, Mike S. seconded; minutes from August were approved.

2. The financials for August 2017 were reviewed. Bob motioned to approve the financials, Tom seconded; financials for August were approved.

BOARD ACTION AND DISCUSSION ON INITIATIVES AND PROGRAMS

1. Budget Cut Impacts on FVCC: Jane had requested the Chamber sent out as “information only” bullet points about the impact of a 10% State appropriation budget cut for FY2018 and FY2019 (instituted by Governor Bullock). Jane had asked that the Chamber share with members the information in case members were willing to send emails to the Governor and Legislators about the impact of the cuts. The 10% budget cut will impact the college’s ability to fund workforce training programs. Bob mentioned during the most recent Government Affairs meeting it was discussed that legislators had been talking about how the business community should help support the workforce training programs since they are the organizations utilizing those programs. Jane said FVCC already receives a lot of support from the local business community and those comments from the legislators were addressed to all workforce programs across the state. She stated that FVCC currently receives a great deal of support from the business community. Jason commented the board should maybe considering waiting until after the October Finance Committee meeting to know more about the final landscape of the cuts before taking a particular stance and take some guidance from Mark Baker. Jane said she understood that point, but Legislators have told her no one has commented on the proposed cuts There is an Interim Finance Committee meeting on October 4 and 5, Jane had hoped some comments could be sent by that time. It will be very difficult for FVCC to make these cuts, especially one-quarter of the way into the fiscal year. The Governor’s office needs to know the impact before any decisions are made. Joe C. mentioned maybe the Chamber could draft a letter with more generalized statements about the cuts, with a heavier emphasis on what those cuts would do to

FVCC. Tom said it is not that people do not care about the cuts; it is about where the money will come from if the cuts are not made. Will that prompt them to raise taxes? And who will pay those taxes? There was some discussion on whether or not there will be a special session. Doug R. said the City is not against a special session. It may open them up to some vulnerability, but a special session is the place to have the conversations about budget cuts and how to find the solutions. Mark Johnson said the Governor does not want to make this decision on his own; he would rather call a special session. Mark expects to see that happen in the next 30 days. When this session started, the Governor had a five year plan to increase income taxes on the higher brackets and that will most likely be his plan during a special session. Doug H. said higher education needs more funding because that training keeps people in the state, creates more jobs, and creates more income to tax. It does cost more to do that, but that is one of the biggest problems in the state (keeping students here). Jesse responded to a question about additional cuts in corrections. That budget is already extremely tight and already not funded enough. Jail staffs are known to have the lowest paid positions, and it is already challenging to find good staff at that low pay. Cutting that budget any more will create more problems. Mike P. responded to a question about the County’s plan for budget cuts. He said if cuts need to happen, they will have to cut FTE staff in Health and most likely AOA. Mike N. said maybe the Chamber’s approach needs to be about focusing on the imbalance of state funding received by each of the colleges (for each resident FTE students). Jane said FVCC is the lowest funded college per resident FTE. FVCC is just about to complete an economic impact study on the college’s on the valley. Jane stated again if the Chamber board is not able to provide a letter of support, sharing this information with the members and asking for individual letters of support is still greatly appreciated. Joe C. said the letter could be more bullet pointed, listing items for consideration rather than a direct request? Mike S. said a letter could be more pointed about the confusion around the budget cuts and highlights the need for a special session. Jason said right now, the board is not hearing the whole story. There are other members who will be impacted by the budget cuts, and the board needs to hear from all of them before writing a letter, but agreed that each business needs to write individual letters of support. He reiterated the board should wait until October to write a letter. Doug H. asked Jane if students had been made aware of the situation, and if the request had been made to them to write letters. Jane said they have and are writing letters. Doug H. suggested an Ad Hoc Committee made of board members be created to dig deeper into this issue and provide a recommendation to the board. Joe U. said that would be a function of the Government Affairs Committee. That could be direction given to the committee (to gather more information and provide details back to the board). Joe C. said a special board meeting could be called after the Government Affairs meeting happens to specifically make a decision on this issue. Bob said when coal is not mined, there is no drilling for oil, and trees are not cut, state revenue drops. He said there is not enough information to be informed or to write a letter. He said he talked to Jane about monies being raised by the FVCC Foundation to offset the new cut, but Jane said that was not possible. Jane clarified she did not say it was not possible, but that donors often do not want to support operational expenses but rather scholarships. Bob said if the board writes a letter, he would not sign it at this time. Joe C. said there is not enough consensus amongst the board to write a letter so that will be held off for the time being. He said it sounds as though the consensus is to have the Government Affairs Committee meet and gather more information for the board. He did say it would be helpful to get greater awareness of this issue into the community. Doug H. asked if that would be the next step (to have the Government Affairs Committee provide a recommendation to the board)? Bob said this topic was discussed at length in the last Government Affairs meeting, and he called for a special board meeting during that committee

meeting, but nothing was called. Jane reiterated if the board could still assist in getting the word out before the October Finance Committee meeting, that would be helpful. Laura asked Jane what would be the acceptable threshold for cuts that could be made? Jane said at this time, she is not sure what else they can afford to cut; they are already operating on a very lean budget. Doug H. asked if Joe C. was making a motion to have the Government Affairs committee dig deeper and gather more details and bring a recommendation to the board. Joe C said he would entertain that motion with the caveat to call a special board meeting if necessary. Doug H. motioned to have the Government Affairs committee gather more information and bring a recommendation to the board; Laura seconded. Bob said the next meeting should be scheduled when the Government Affairs Committee Chair is back in town (Tom said Jerry Sorensen should be back around the second week in October). Bob asked when the next scheduled Government Affairs meeting would be. October 11, which is a holiday, so Joe U. said the meetings are typically moved a week ahead (which would be October 16). Joe U. said it could be called sooner if necessary; Joe C. said it should be kept on October 16 if that is the soonest information will be available. There being no further discussion, the motioned passed with the addition that the Government Affairs Committee will meet on Monday, October 16.

2. Nominating Committee Report: Joe C. presented the new slate of directors, as outlined in the board packet; directors were approved. Joe C. presented the new slate of officers, as outlined in the board packet (with the change of year listed {2017 to 2018}). Joe U. explained the board has the discretion to split the Secretary/Treasurer position, and with Mike S. finishing up his commitments with other boards at this time, Dave said he would be willing to serve as Vice Chair and Treasurer. The new slate of officers was approved. Joe U. presented the list of directors being invited to serve a second, three year term, as outlined in the board packet; the directors were approved. Joe U. presented the list of ex-officio directors being invited to serve a one year term, as outlined in the board packet; the ex-officio directors were approved. The young professional position will be determined at a later date (when that committee meets to vote in a chairperson).

Staff Reports

1. President’s Report: Joe U. discussed the editorial in the Daily Inter Lake this past Sunday regarding Representative Garner and the Gas Tax Bill. It was a hot topic of discussion during the Montana Chamber’s Business Agenda Tour. Representative Randy Brodehl mentioned how upset he was on the rating system and how all the conservative legislators were negated points because of their opposition to the bill. Joe U. mentioned this is something he has heard about more than once from other legislators. Joe U. reminded the board the Kalispell Chamber supported Representative Garner’s bill. Bob said he would be in favor of writing a letter of support for Representative Garner. He felt the editorials were very nasty and the Chamber should step up to support Representative Garner. Joe U. said the Chamber relies on the Montana State for state direction and the U.S. Chamber for federal direction so he expects to the drawn into this conversation. Joe C. agreed with Bob that the editorials were harsh, but did not feel it was worth writing a public letter of support and putting the Chamber in the middle of the current discussion. Joe U. notified the board the Governor’s office called a meeting with the seven Chamber of Commerce executives from the seven major cities to discuss the budget cuts. The meeting will be tomorrow. Joe U. will not be able to attend as he is attending a meeting with the City of Kalispell regarding discussion about the plan for downtown; he has asked Mark and/or Aidan to cover the meeting for the Chamber. Doug R. said he expects the meeting to be very similar to the discussion had this

morning. Joe U. also mentioned that Margit Baake has accepted the Membership Director position with the Missoula Chamber and is no longer with the Kalispell Chamber. The positon is currently open. Katie stated any persons of interest can apply with the Job Service.

2. Marketing Report: Nothing reported beyond what was included in the board packet. 3. Membership Report: Nothing reported beyond what was included in the board packet. 4. Administrative Report: Katie provided a report on current parking lot issues seemingly

becoming worse. She played some video of problems that happened within the last few weeks showing vandalism, fighting, and problematic parking. The majority of the time these issues come up during the evening and weekends, but there are times where the staff has to deal with these issues during the day. The current protocol is to have Joe approach the kids if something is happening during the day. The problem is the kids continue to come back. When the Visitor Center is open on the weekends, there is one part time staff working and dealing with these problems is too much for them to handle. Katie asked if there was board support to initiate discussions with the City about gating the parking lot during the evenings/weekends to help stop these issues. She explained the parking lot is included in the Chamber’s property in the lease agreement so this is not an expense the City will help fund. The board agreed to have Katie start the conversation, and Joe C. asked for an update at the next meeting.

There being no further business, the meeting was adjourned at 8:35am. Respectfully submitted, Katie Brien Administrative Services Manager

Sep 30, 17 Sep 30, 16 $ Change

ASSETSCurrent Assets

Checking/Savings1000.00 · Checking 139,951.77 143,142.69 -3,190.92

1050.00 · Petty Cash 320.00 220.00 100.001100.00 · Investments 184,351.12 227,545.43 -43,194.31

Total Checking/Savings 324,622.89 370,908.12 -46,285.23

Accounts Receivable1150.30 · Accounts Receivable 67,621.63 65,806.34 1,815.29

Total Accounts Receivable 67,621.63 65,806.34 1,815.29

Other Current Assets1200.00 · Other Current Assets 35,465.02 11,302.97 24,162.05

Total Other Current Assets 35,465.02 11,302.97 24,162.05

Total Current Assets 427,709.54 448,017.43 -20,307.89

Fixed Assets1350.00 · Fixed Assets 154,589.20 147,401.21 7,187.99

Total Fixed Assets 154,589.20 147,401.21 7,187.99

TOTAL ASSETS 582,298.74 595,418.64 -13,119.90

LIABILITIES & EQUITYLiabilities

Current LiabilitiesAccounts Payable

2000.00 · Accounts Payable 45,612.20 49,226.51 -3,614.31

Total Accounts Payable 45,612.20 49,226.51 -3,614.31

Other Current Liabilities2250.00 · N/P KCVB Private Funds 5,000.00 0.00 5,000.002050.00 · Deferred Revenue 0.00 34,200.00 -34,200.002100.00 · Payroll Liabilities 4,939.79 2,912.74 2,027.05

2150.00 · Wages Payable 13,101.60 9,447.57 3,654.032200.00 · Accrued Vacation 19,537.68 15,351.90 4,185.78

Total Other Current Liabilities 42,579.07 61,912.21 -19,333.14

Total Current Liabilities 88,191.27 111,138.72 -22,947.45

Total Liabilities 88,191.27 111,138.72 -22,947.45

Equity3000.00 · Retained Earnings 565,094.27 567,887.27 -2,793.00

32000 · Unrestricted Net Assets -99,746.70 23,555.99 -123,302.69Net Income 28,759.90 -107,163.34 135,923.24

Total Equity 494,107.47 484,279.92 9,827.55

TOTAL LIABILITIES & EQUITY 582,298.74 595,418.64 -13,119.90

12:54 PM Kalispell Chamber of Commerce10/19/17 Balance SheetAccrual Basis As of September 30, 2017

Page 1

Accrual Basis Kalispell Chamber of Commerce P & L Analysis

Page 1 of 10

September 2017 Previous Year Comparison Budget vs Actual

2017 2016 Difference YTD Budget

Income

100 · Administrative

4300.00 · Membership Dues 261,632.53 231,042.50 30,590.03 261,632.53 354,250

4025.00 · Program Revenue

4050.00 · Advertising 39,104.00 20,386.54 18,717.46 39,104.00 45,500

4100.00 · Affinity Programs 1,382.92 3,657.36 -2,274.44 1,382.92 4,004

4460.00 · Other Income 18,619.09 15,000.99 3,618.10 18,619.09 19,200

4400.00 · Grants & Contributions

4400.10 · Grants 10,000.00 0.00 10,000.00 10,000.00 0

4450.00 · Interest 1,036.92 575.79 461.13 1,036.92 1,099

4460.00 · Miscellaneous Income

4000.00 · Administrative Fee 6,581.28 2,705.64 3,875.64 6,581.28 4,301

4750.00 · Rent 8,700.00 9,500.00 -800.00 8,700.00 13,200

4960.00 · In-Kind Donations 48,750.03 48,750.03 0.00 48,750.03 65,000

4950.00 · Wage & Benefit Reimburse 215,744.84 200,291.96 15,452.88 215,744.84 272,288

100 · Total Administrative 611,551.61 531,910.81 79,640.80 611,551.61 778,842.00

200 · Tourism Development

210 · Bed Tax 93,521.57 90,011.45 3,510.12 93,521.57 130,000.00

220 · Visitor Center 309.25 510.00 -200.75 309.25 545.00

200 · Total Tourism Development 93,830.82 90,521.45 3,309.37 93,830.82 130,545.00

300 · Membership Services

310 · ABC Clinic 4,275.00 2,755.00 1,520.00 4,275.00 3,000.00

320 · Banquet 16,550.00 7,500.00 9,050.00 16,550.00 99,400.00

330 · Luncheon 34,367.00 23,994.00 10,373.00 34,367.00 28,400.00

340 · Unwind 2,206.49 2,973.51 -767.02 2,206.49 2,400.00

350 · Stock Sale 33,021.95 20,196.25 12,825.70 33,021.95 24,600.00

360 · Open Horizons 250.00 0.00 250.00 250.00 0.00

370 · Int'l Travel 28,500.00 39,405.00 -10,905.00 28,500.00 20,000.00

380 · Newsletter 300.00 150.00 150.00 300.00 1,200.00

300 · Total Membership Services 119,470.44 96,973.76 22,496.68 119,470.44 179,000.00

400 · Economic Development

450 · KCVB Events 207,606.99 132,612.47 74,994.52 207,606.99 196,633.00

490 · Economic Development 0.00 0.00 0.00 0.00 0.00

400 · Total Economic Development 207,606.99 132,612.47 74,994.52 207,606.99 196,633.00

500 · Community Development

510 · Leadership Flathead 52,404.02 47,981.84 4,422.18 52,404.02 53,575.00

525 · Young Professionals 620.00 0.00 620.00 620.00 0.00

530 · Parade 3,840.00 2,420.00 1,420.00 3,840.00 3,350.00

550 · Small Business Saturday 0.00 0.00 0.00 0.00 0.00

560 · Manufacturing Alliance 7,270.00 5,000.00 2,270.00 7,270.00 8,000.00

570 · Tourism Alliance 1,165.00 2,018.02 -853.02 1,165.00 2,000.00

580 · Healthcare Alliance 0.00 20,000.00 -20,000.00 0.00 10,000.00

590 · Community Development 0.00 0.00 0.00 0.00 0.00

500 · Total Community Development 65,299.02 77,419.86 -12,120.84 65,299.02 76,925.00

600 · Government Relations

610 · Int'l Trade 0.00 0.00 0.00 0.00 0.00

620 · Issue Advocacy 0.00 26.70 -26.70 0.00 0.00

600 · Total Government Relations 0.00 26.70 -26.70 0.00 0.00

Total Income 1,097,758.88 929,465.05 168,293.83 1,097,758.88 1,361,945.00

Accrual Basis Kalispell Chamber of Commerce P & L Analysis

Page 2 of 10

2017 2016 Difference YTD Budget

Expense

100 · Administrative

5000.00 · Direct Program

5010.00 · Advertising & Marketing 1,217.60 2,374.38 -1,156.78 1,217.60 1,000.00

5020.00 · Apparel 19.45 653.60 -634.15 19.45 300.00

5040.00 · Awards & Recognition 175.00 0.00 175.00 175.00 250.00

5140.00 · Contract Labor 9,496.24 0.00 9,496.24 9,496.24 0.00

5180.00 · Catering 0.00 1,845.24 -1,845.24 0.00 0.00

5240.00 · Hospitality 30.47 1,595.70 -1,565.23 30.47 600.00

5320.00 · Leased Equipment/Space 3,404.14 3,474.87 -70.73 3,404.14 4,633.00

5460.00 · Permits & Fees 51.00 51.00 0.00 51.00 51.00

5670.00 · Supplies 52.11 70.08 -17.97 52.11 0.00

5680.00 · Tierred Dues 4,400.00 3,750.00 650.00 4,400.00 4,350.00

5600.00 · Salaries & Employee Benefits

5600.10 · Salary & Wages 375,267.97 334,131.92 41,136.05 375,267.97 486,076.00

5610.00 · Employer Taxes 33,654.05 29,842.90 3,811.15 33,654.05 42,905.00

5620.00 · Employee Benefits 60,803.93 47,307.39 13,496.54 60,803.93 90,239.00

5060.00 · Bank Fees & Service Charges

5060.10 · Bank & Credit Card Fees 3,254.41 2,941.36 313.05 3,254.41 3,720.00

5280.00 · Interest Paid 0.00 0.00 0.00 0.00 0.00

5560.00 · Building & Maintenance 21,025.85 12,726.29 8,299.56 21,025.85 15,356.00

5190.00 · Depreciation/Amortization 12,476.10 7,215.71 5,260.39 12,476.10 10,800.00

5260.00 · Insurance 3,979.22 3,900.65 78.57 3,979.22 5,219.00

5520.00 · Professional Fees

5760.00 · Web Site 1,314.31 690.99 623.32 1,314.31 4,656.00

5520.10 · Professional Services 30,213.94 27,707.50 2,506.44 30,213.94 30,840.00

5320.20 · Rent In-Kind 48,750.03 48,750.03 0.00 48,750.03 65,000.00

5700.00 · Training & Education 2,577.00 2,828.00 -251.00 2,577.00 1,570.00

5360.00 · Meetings 2,770.46 2,460.66 309.80 2,770.46 2,694.00

5500.00 · Printing & Publications 2,677.00 4,176.05 -1,499.05 2,677.00 11,600.00

5760.00 · Utilities & Phone

5120.00 · Communications 6,061.53 6,489.22 -427.69 6,061.53 8,767.00

5760.00 · Utilities 3,504.91 3,090.45 414.46 3,504.91 5,215.00

5400.00 · Miscellaneous

5200.00 · Dues & Subscriptions 5,402.00 6,722.00 -1,320.00 5,402.00 6,046.00

5580.00 · Research & Survey's 0.00 0.00 0.00 0.00 0.00

5400.10 · Miscellaneous 0.00 0.00 0.00 0.00 0.00

5420.00 · Office 16,342.18 16,821.22 -479.04 16,342.18 18,020.00

5740.00 · Travel 9,666.05 9,493.11 172.94 9,666.05 6,130.00

5050.00 · Bad Debt 0.00 0.00 0.00 0.00 0.00

120 · Board 814.05 724.33 89.72 814.05 1,535.00

130 · Social Media 0.00 59.64 -59.64 0.00 0.00

150 · Accreditation 400.00 644.00 -244.00 400.00 0.00

160 · Membership 9,481.75 9,420.43 61.32 9,481.75 2,856.00

100 · Total Administrative 669,282.75 591,958.72 77,324.03 669,282.75 830,428.00

Accrual Basis Kalispell Chamber of Commerce P & L Analysis

Page 3 of 10

2017 2016 Difference YTD Budget

200 · Tourism Development

210 · Bed Tax 125,750.75 115,236.71 10,514.04 125,750.75 130,000.00

220 · Visitor Center 1,261.31 2,492.02 -1,230.71 1,261.31 3,740.00

200 · Total Tourism Development 127,012.06 117,728.73 9,283.33 127,012.06 133,740.00

300 · Membership Services

310 · ABC Clinic 3,360.88 2,620.60 740.28 3,360.88 2,800.00

320 · Banquet 1,318.48 1,704.79 -386.31 1,318.48 52,675.00

330 · Luncheon 26,948.66 26,615.17 333.49 26,948.66 27,770.00

340 · Unwind 14.52 1,229.93 -1,215.41 14.52 426.00

350 · Stock Sale 33,900.95 19,283.00 14,617.95 33,900.95 23,775.00

360 · Open Horizons 0.00 0.00 0.00 0.00 0.00

370 · Int'l Travel 4,453.94 13,260.98 -8,807.04 4,453.94 6,125.00

380 · Newsletter 0.00 0.00 0.00 0.00 0.00

300 · Total Membership Services 69,997.43 64,714.47 5,282.96 69,997.43 113,571.00

400 · Economic Development

420 · Community Visits 0.00 0.00 0.00 0.00 0.00

430 · Trade Projects 0.00 0.00 0.00 0.00 0.00

440 · BEAR 0.00 4,800.39 -4,800.39 0.00 0.00

450 · KCVB Events 128,273.06 188,565.68 -60,292.62 128,273.06 196,633.00

490 · Economic Development 1,073.40 587.84 485.56 1,073.40 590.00

400 · Total Economic Development 129,346.46 193,953.91 -64,607.45 129,346.46 197,223.00

500 · Community Development

510 · Leadership Flathead 38,816.89 28,225.09 10,591.80 38,816.89 37,527.00

520 · Ambassadors 1,983.24 1,408.19 575.05 1,983.24 1,445.00

525 · Young Professionals 2,382.11 0.00 2,382.11 2,382.11 0.00

530 · Parade 4,269.22 3,573.09 696.13 4,269.22 4,560.00

550 · Small Business Saturday 0.00 1,000.00 -1,000.00 0.00 975.00

560 · Manufacturing Alliance 6,755.95 7,222.26 -466.31 6,755.95 10,400.00

570 · Tourism Alliance 568.93 1,508.82 -939.89 568.93 1,535.00

580 · Healthcare Alliance 9.50 6,438.18 -6,428.68 9.50 10,000.00

590 · Community Development 0.00 5,305.47 -5,305.47 0.00 0.00

500 · Total Community Development 54,785.84 54,681.10 104.74 54,785.84 66,442.00

600 · Government Relations

610 · Int'l Trade 474.12 0.00 474.12 474.12 0.00

620 · Issue Advocacy 18,100.32 13,591.46 4,508.86 18,100.32 20,136.00

600 · Total Government Relations 18,574.44 13,591.46 4,982.98 18,574.44 20,136.00

Total Expense 1,068,998.98 1,036,628.39 32,370.59 1,068,998.98 1,361,540.00

Net Income (less TBID, Foundation) 28,759.90 -107,163.34 135,923.24 28,759.90 405.00

Accrual Basis Kalispell Chamber of Commerce P & L Analysis

Page 4 of 10

2017 2016 Difference YTD Budget

Income:

Bed Tax 93,521.57 90,011.45 3,510.12 93,521.57 130,000.00

KCVB Events 207,606.99 132,612.47 74,994.52 207,606.99 196,633.00

Foundation 762.19 5,100.00 -4,337.81 762.19 20,000.00

Chamber Program Income 796,630.32 706,841.13 89,789.19 796,630.32 1,035,312.00

Total Income 1,098,521.07 934,565.05 163,956.02 1,098,521.07 1,381,945.00

Expense:

Bed Tax 125,750.75 115,236.71 10,514.04 125,750.75 130,000.00

KCVB Events 128,273.06 188,565.68 -60,292.62 128,273.06 196,633.00

Foundation 13,627.69 10,528.99 3,098.70 13,627.69 20,000.00

Chamber Program 814,975.17 732,826.00 82,149.17 814,975.17 1,034,907.00

Total Expense 1,082,626.67 1,047,157.38 35,469.29 1,082,626.67 1,381,540.00

Net Income:

Bed Tax -32,229.18 -25,225.26 -7,003.92 -32,229.18 0.00

KCVB Events 79,333.93 -55,953.21 135,287.14 79,333.93 0.00

Foundation -12,865.50 -5,428.99 -7,436.51 -12,865.50 0.00

Chamber Program -18,344.85 -25,984.87 7,640.02 -18,344.85 405.00

Total Net Income (Incl Foundation) 15,894.40 -112,592.33 128,486.73 15,894.40 405.00

2017 Board AttendanceJan Feb Mar Apr May Jun Aug Sep Oct Nov Dec

Brown, Lisa ~ X X X X ~ X XCarbonari, Joe X X ~ X X X X XCronk, Jason X X X X X X ~ XDavis, Jesse X X ~ ~ X X ~ XFlatau, Mark ~ X ~ X ~ ~ X XHendrickson, Dawn X X X X X X X XHensley, Mark X X ~ X X X X ~Hergesheimer, Dave X X X X ~ X X ~Herron, Bob X X X ~ X X ~ XHoutz, Doug X X X X X X X XJohnson, Mark X X ~ X X X X ~Karas, Jane X X ~ X X X X XLaracombe, Butch X X X ~ X ~Nye, Mike X X X X X X X XPelc, Brian ~ X X X X X X XPence, Mike X X X X X X X XPhelps, Maria X X X ~ X X ~ ~Ray, Tom X X X X X X X XRussell, Doug X X ~ ~ ~ ~ X XSmith, Mike X X ~ ~ X X X XSprunger, Courtenay X X X X ~ X ~ ~Taylor, Laura X X X X X X X XTonjum, Kary ~ X X X ~ X ~ XVine, Tagen X ~ ~ X X ~ X ~Weaver, Rick X X X X ~ X ~ XWright, Jim X X ~ X X X X ~

21/25 24/25 16/26 21/26 20/26 21/26 19/26 18/262017 = 2016 = 77%2015 = 79%2014 = 84%2013 = 82%

DATE: October 19, 2017 TO: Board of Directors FROM: Joe Unterreiner, President SUBJECT: Downtown Plan draft comments – outline The executive committee agreed that the Chamber’s comments at the November 6th public hearing on the Downtown Plan should include several points. The following is an outline of those points for which the executive board seeks your concurrence.

1. Acknowledge that our members are split on the topic or reducing Main Street from 4-lanes to 2-lanes with a center turn lane.

2. The Core Plan and the Downtown Plan should be viewed as one thing even if they cannot be joined as a single planning document. Downtown has a BID, but no tax increment district. The Core Area has a tax increment district, but no BID. Most urban renewal sites, but not all, are in the Core Area.

3. Streamlining approval processes should be a goal of the downtown plan.

4. The City has done a good job laying out a good vision of downtown Kalispell and is to be commended.

October 2, 2017

Mayor Mark Johnson

2011 Avenue East

Kalispell, MT 59901

Dear Mayor Johnson,

It has come to my attention that the City of Kalispell is considering a reduction in the

number of traffic lanes coming into and through the downtown corridor. As a retailer

that has already been impacted by the opening of the Truck By-Pass, I am writing to

express my concerns about encouraging additional traffic to skirt the downtown area in

favor of pushing them to the new developments that have been built on the north side of

the city.

As a long-time business that has been committed to the growth of Kalispell, and one that

has invested significantly in rebuilding and upgrading our presence in the city, it is

alarming to think that the city is actively pursuing an idea to reduce the amount of traffic

that passes by our business, significantly impacting our opportunity for growth and

prosperity. Our financial and infrastructure investments were made based on the traffic

flows that we believed we could count on well into the future.

I appreciate that there have been conversations resulting in this traffic reduction idea, but

as a business that will be impacted by the decision to proceed, I urge you to reconsider

your support. I suggest instead, that you support providing those businesses who have

helped to grow the Kalispell economy for many, many years, especially those who have

invested in revitalizing the downtown core, with the lifeblood that allows their businesses

to succeed - traffic!

Please register our opposition to this plan.

Respectfully,

Jeff Philipps

President, CEO

cc: City Council Members

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2017 Government Affairs Action Report - Kalispell Chamber of Commerce & CVB – October 16, 2017 Issue/Bill Action Status LOCAL Alcohol amend for City owned property Support 1) all chamber leased premises 2) admin approval 3) insured, not permitted: all approved Downtown BID reauthorization Support Expanded BID boundaries approved by City Council Downtown steering committee Monitor First meeting Sep 27 Expand commercial air service (AERO) Support AERO guarantees for winter direct service to Chicago x 2, San Francisco; support for HB 408 Flathead County short term rentals Support Heard by the County Commissioners; approved Flathead Healthcare Council Action Support higher density in H-1 zone; support SB 116; oppose HB 331, support PUD overlay Glacier Rail Park Support Ground breaking on August 15 Kalispell Downtown Plan Support Fundamentally different and more challenging; 3 recommendations Kalispell Growth Policy Update Commented Letter of support delivered during public hearing on June 19 Kalispell North Town Center prelim plat Support Phase I prelim plat request for 81.4 acres, 12 lots: approved. Ford dealership under construction Kalispell Transportation Plan Monitor City proposed an update of the 2006 plan at Aug 15 TAC meeting Kidsports youth athletic complex Support $1.4M grant awarded; Chamber raised $100,000; signatures of support from 237 businesses Montana Artesian Water Co permits Monitor DNRC hearings the week of Sep 18 in Kalispell Silverbrook PUD amendment Support Request for density and height limit increase: approved STATE State budget cuts Monitor Legislative Finance Committee meeting to hear Gov’s budget rec’s now moved to Oct 4 FVCC request for budget support Jane Karas to present to board on Sep 26 FEDERAL Maintain J-1 visas Support Sens. Daines and Tester support; steep cuts in J-1 visas will hurt WF Mtn. Resort, Xanterra Regulatory Accountability Act Support Allows Congress and the public to assert control over the federal regulatory process POLITICS: Kalispell City Mayor, Councilors (Nov 7) Monitor Mayor Johnson unopposed Kalispell Council Ward 1 (Nov 7) Monitor Sandy Carlson unopposed Kalispell Council Ward 2 (Nov 7) Monitor Chad Graham unopposed Kalispell Council Ward 3 (Nov 7) Monitor Jim Atkinson challenged by Osario-Khor, Kyle Waterman Kalispell Council Ward 4 (Nov 7) Monitor Tim Kluesner challenged by Sid Daod, Paige Rappleye Kalispell Public Schools election (May 2) Monitor 2 seats/4 candidates won by Bette Albright, Diane Morton-Stout US Congressional special election (May 25) Monitor (R) Gianforte wins seat 51-43-6. D ’18 challengers: Grant Kier, John Heenan, more

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US Senate election Nov ‘18 Monitor Sen. Tester to be challenged by Sen. Olszewski, Downing, Rosendale, more Government Affairs Committee Meetings – Meets every other Friday during the Session; second Monday at noon for balance of year Date Topic Presenter Action Attend Jan 6 Legislative Session Sen. Blasdel, Whip Budget, infrastructure, fuel tax, local option, invasive species 20 Jan 20 Legislative Session Speaker Pro Tem Hertz Budget, invasive species, healthcare, bonding, infrastructure, FVCC 17 Feb 3 Legislative Session Rep. Frank Garner Budget, increase gas tax, infrastructure, transportation 21 Feb 17 Legislative Session Rep. Steve Lavin Transportation, infrastructure, liquor laws, airline bill 22 Mar 17 Legislative Session Rep. Randy Brodehl Budget with Vice Chair of House Appropriations 17 Mar 31 Legislative Session Sen Pro Tem Keenan Budget, infrastructure, aquatic invasive species, liquor, energy 10 Apr 21 Legislative Session Committee Session wrap up meeting 13 May 23 Legislative Luncheon Legislators Baker report, Sens. Blasdel & Keenan, Reps. Garner and Noland 193 June 12 City, county, state, federal issues Committee Update on city, council, state, and federal issues 10 July 10 State triggers and budget cuts Committee Presentation and discussion on revenue triggers and budget cuts in MT budget 16 Aug 14 Downtown and Transp. Plans Tom Jentz, City Planner Presentation on the downtown and transportation plans for City of Kalispell 13 Sep 18 State, FVCC budget, downtown Baker, Karas, Russell Discussion on state budget cuts, request of FVCC support, downtown 18 Oct 16 State budget, city & county issues Rep. Hertz, Sen. Blasdel Legislators provide details on trends for state revenue and expenses 20

2017Membership Report

2017Starting

Base Accounts (Drops) Downgrade Upgrade Adds

Total Paid Accts

Starting Base $ $ Downgrade $ Drops $ Upgrade $Adds$ Ending Base

Attrition Accounts

Attrition Dollars

Jan 60 2 0 0 24 82 * $25,550 $0 -$555 $0 $8,390 $33,385 3.3% -2.2%Feb 78 7 0 1 13 84 * $40,040 $0 -$2,755 $700 $4,200 $42,185 9.0% -6.9%Mar 67 6 0 2 10 71 * $35,720 $0 -$2,230 $420 $3,265 $37,175 9.0% -6.2%Apr 60 7 0 0 9 62 * $22,900 $0 -$2,355 $0 $3,850 $24,395 11.7% -10.3%May 52 7 0 0 8 53 $21,060 $0 -$2,825 $0 $3,350 $21,585 13.5% -13.4%Jun 45 4 0 0 9 50 $16,470 $0 -$1,675 $0 $3,395 $18,190 8.9% -10.2%Jul 47 3 0 1 8 52 $19,260 $0 -$1,080 $118 $3,185 $21,483 6.4% -5.6%Aug 25 2 1 0 9 32 $21,595 -$235 -$720 $0 $3,380 $24,020 8.0% -3.3%Sep 69 1 0 0 9 77 $32,830 $0 -$360 $0 $4,010 $36,480 1.4% -1.1%Oct 48 3 0 0 3 48 $20,180 $0 -$915 $0 $1,315 $20,580 6.3% -4.5%Nov 40 0 0 0 0 40 $21,635 $0 $0 $0 $0 $21,635 0.0% 0.0%Dec 71 0 0 0 0 71 $51,585 $0 $0 $0 $0 $51,585 0.0% 0.0%

YTD 662 42 1 4 102 722 $328,825 ($235) ($15,470) $1,238 $38,340 $352,698 6.3% -4.7%

Year End Goal: $354,250

Percentage of Goal Met: 99.56%

*Month closed

Construction and Business Projects 2017 - October 18, 2017

Est. Est. Est. Est.Project Place Use Start Complete SF $ millions

Auto: Green Hyundai Kal Retail Jan-18 19,220 $3.0Auto: Green Nissan Kal Retail Jan-18 22,077 $3.0Auto: Kalispell VW Kal RetailBigfork: School District Kal Educ Nov-17 77,760 $13.3CFalls: WFCU CF Finance Mar-18 5,500 $13.3Downtown: 7 Main dance studio Kal RetailDowntown: Alpine Lighting Bldg. Kal RetailDowntown: Bias Brewery Kal Retail Feb-17 Nov-18 5,900 $0.6Downtown: Big Sky PR/Learned Reality Kal OfficeDowntown: Blue Samurai Kal Retail Oct-16 Feb-17 NA $0.1Downtown: Fresh Life Kal Church Aug-17 Oct-18 16,000 $2.8Downtown: Herbergers Kal Retail Jun-16 Sep-17 40,000 $2.0Downtown: MT Coffee Traders Kal Retail Nov-17 8,000 $0.5Downtown: SunRift Brewing Kal Retail Nov-17Flathead Co Jail expansion (36 beds) Kal Office Oct-16 Jun-17 42,887 $1.8FVCC housing (124 beds) Kal Educ Aug-16 Aug-17 51,500 $7.8Glacier Rail Park Phase I Kal Indust Aug-17 Nov-18 $11.2GPIA: Convenience store Kal Retail 3,500GPIA: Country Inn and Suites (100 rms) Kal Hosp May-17 Jun-18 62,000 $10.0GPIA: Parking expansion (224 spaces) Kal Public Sep-17 Nov-17 $1.0GPIA: Restaurant Kal Retail 7,000Hutton Ranch: Staggering Ox Kal Retail Jun-17Imm. Lutheran: Memory Care Kal Res May-16 Jun-17 31,751 $8.2Imm. Lutheran: Retreat Expansion Kal Res May-16 Mar-17 21,925 $4.0Imm. Lutheran: Skilled Care Center Kal Res May-17 Oct-18 16,181 $3.2Imm. Lutheran: Villas at Buffalo Hill Kal Res May-17 Oct-18 86,665 $14.5Kalispell Schools: Ag Center Kal Educ $4.6Kalispell Schools: Edgerton Kal Educ $1.2Kalispell Schools: Elrod Kal Educ $2.6Kalispell Schools: Flathead High Kal Educ Jun-17 Jul-19 54,000 $18.2Kalispell Schools: Hedges Kal Educ $1.9Kalispell Schools: Linderman Kal Educ $3.4Kalispell Schools: new elementary Kal Educ May-17 Aug-18 43,200 $15.2Kalispell Schools: Peterson Kal Educ $1.9Kalispell Schools: Russell Kal Educ $2.1Kidsports Kal Public May-16 May-18 NA $2.5KNTC I: Ford dealership Kal Retail Apr-17 Nov-17 52,000 $14.0KRH Campus: 135 Commons Loop Kal Med Mar-17 Oct-17 9,128 $2.5KRH Campus: 165 Commons Loop Kal Med Mar-17 Oct-17 14,897 $3.6KRMC: Digestive Health Institutue Kal Med Aug-17 Aug-18 28,216 $12.9KRMC: Emergency Room Kal Med Mar-16 Aug-18 37,516 $14.0KRMC: NW Family Medicine Kal Med Jun-16 Jul-17 8,250 $1.8KRMC: Women and Children Center Kal Med Aug-16 Oct-18 190,000 $37.8

Sec. 36 Treeline: Grease Monkey Kal Retail Jun-18 4,500 $1.8Sec. 36 Treeline: Hotel (88 rms) Kal Hosp Jun-19 60,000 $10.0Silverbrook commercial Kal Office May-17 120,000SPIII: Brass Taps Kal Retail Aug-16 Feb-17 3,340 $0.3SPIII: Kobe Japanese Steak House Kal Retail Aug-17SPIV: Costa Vida Kal Retail Mar-16 Aug-17 3,114 $0.3SPIV: Harbor Freight Tools Kal Retail Aug-17SPIV: Hobby Lobby Kal Retail Oct-16 Feb-17 55,000 $2.4SPIV: Home Goods Kal Retail Apr-17 Oct-17Village Plaza: PTA Kal Med Dec-17 5,100 $1.8Village Plaza: Great Northern Dental Kal Med Dec-17 3,000 $1.6W Glacier/GPI: 102 RV; 25 cabins WGl Hosp May-17 Apr-17WF City Hall & Parking WF Public Aug-15 May-17 30,000 $16.0WF Marriott Townplace (81 rms) WF Hosp Apr-17 Nov-17 63,171 $17.3Total 1,177,741 $292.0

Construction and business projects.2017

KALISPELL CHAMBER OF COMMERCE SEPT 2017 DIGITAL AND MARKETING REPORT

Kalispellchamber.com YTD 2017 YTD 2016 Users 87,131 95,897 Page Visits 182,882 194,684 New Users Sessions 54,590 56,711 Returning Visitor Sessions 32,541 39,276 Desktop 46,885 57,943 Mobile 32,663 28,179 Tablet 7,583 9,865 Communications Network YTD 2017 YTD 2016 Facebook Likes 3,375 2,719 Instagram Followers 350 N/A LinkedIn Followers 1,110 1,030 E-Mail Communications 3,146 2,532 (approximate value) FAYP 142 N/A

September 2017 was the first month of the year we have seen web traffic increase over the previous year. This is in alignment with what we were thinking about our new website’s behavior, which has been launched for one full quarter now. October 2017 numbers are on track to surpass October 2016 numbers as well. See below.

Recent Successes

• 2/3 of all MFG tours filled attendance limits • Glacier High Vo-Tech committee meeting began creating stronger workforce ties between business and

education • PIR event on Oct 19 for k-12 teachers

Planning For &Working On:

• Chamber Foundation mailer • 113th Annual Banquet & Auction marketing • Small Business Saturday – cooperative effort with Associated Chambers • Continuous updates on www.kalispellchamber.com regarding upcoming programming • Working with admin team to grow network of contacts • Spring 2018 fundraising campaign for Flathead Area Young Professionals

Projects

Projects 1. Managing the screening and interviewing pro-

cess for the membership position. Job descrip-tion has been updated and posted.

2. Will take over full AR process on membership accounts, website advertising, and map ads un-til membership position is filled.

3. Hosted the first staff training in September after the all staff meeting. Will go to two trainings/month. Currently training on Excel.

Projects 1. Banquet-working on sponsors, raffles, auction,

and administrative details. 2. Scheduling the 2018 UNWINDs.

Projects 1. Working on scheduling the fire alarm/carbon

monoxide monitors. 2. Working on scheduling the crash bar installs. 3. Will be contacting painters to schedule Spring

2018 painting on the building. 4. Reviewing lease with City to provide a plan/

recommendation on parking lot controls.