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CITY MANAGER’S REPORT February 11, 2020 MEETINGS Last Wednesday, I attended the 2020 Economic Outlook Seminar: Finding Good Workers presented by Northwestern Energy and the UM Bureau of Business and Economic Research via webinar. Just a few highlights I would like to share: • Montana experienced 2.7% growth in nonfarm earnings in 2019. It is expected from 2020 through 2023 that growth will decline from 2.3% to 1.5%. Overall Montana growth is low compared to our neighboring states in the West. For Flathead County there has been a decline since 2017 with 2019 likely being around 1.7% nonfarm earnings, which is lower than the BBER’s predication of 3.6%. There is a better outlook for 2020 and a slower decline to about 2.7% by 2023. So, while there is a projected slow down, Flathead County will remain a strong place of growth for the State over the next few years. It was noted that residential construction will be the wild card. • The real estate market is expected to remain strong with low interest rates helping to drive demand. However, affordability will continue to get worse. For Flathead County, 38% of renters and 26% of homeowners are currently cost burdened by housing according to the BBER and the U.S. Census Bureau. • Tight labor markets will continue and are impacted by various factors including demographics, skills, generational changes, and number of those participating in the labor market. Companies all over continue to struggle with this issue and raising wages may not grow the workforce to the levels needed to fill the jobs available. Senior Planner, Wendy Compton-Ring, and I met with Libby Starling, Manager for Community Development for the Federal Reserve Bank of Minneapolis on Monday, February 11th. Libby wanted to learn more about our Legacy Homes Program and shared with us how they could be a resource to our community and others facing similar challenges. They are currently working with the City of Minneapolis who recently established inclusionary zoning and they are acting as the third party to analyze the impacts of the new requirements. We are to have another great resource when it comes to affordable housing. ---PAGE BREAK--- NEXT COUNCIL MEETING The next City Council meeting will be held Monday, March 2nd. The work session will include possible interviews for the new Parking Permit Program Implementation Committee followed by an update from Homeward and the Strategic Housing Committee on the proposed development at the City’s snow lot. Respectfully submitted, Dana M. Smith, CPA City Manager