B2b winter2015 issuu

winter 2014/2015

business to business connection

helpful n tips to pla

IT’S TAX TI M E! PAGE 34

boss of the year

dan bingham

helena college university of montana

plus

ron mercer: 50 years of airport service the role of local chambers the helena IR: embracing change thoughts on development WINTER 2014/2015 | HELENACHAMBER.COM | 1

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b2b contents W i n t e r 2 0 1 4 / 2 0 1 5 / Vo l . 4 / N o. 1

06

10

18

BOSS OF THE YEAR and nominees’ best practices

50 years of air service and airport changes

Dan Bingham, Dean and CEO of College University of Montana

By Ron Mercer, Retired Director of the Helena Region Airport

22

24

Building outside the city versus inside

The helena IR: embracing change

By Mike Hughes, Owner, Mike Hughes Builders

By Tyler Miller, Publisher, Helena Independent Record

Local chambers: the rodney dangerfields of history?

By Chris Mead

31

34

Thoughts from a helena developer

Money matters: Time to plan for your 2014 tax filings

Mountain View Meadows

By Galusha Higgins and Galusha

ALSO IN THIS ISSUE 04 Welcome

20 ribbon Cuttings

14 Leadership Helena 17 membership matters 29 helena’s growth policy 40 B2B CONVERSATION WINTER 2014/2015 | HELENACHAMBER.COM | 3

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welcome

225 Cruse Ave, Suite A Helena, MT 59601 (406) 442-4120 1-800-7HELENA Fax: (406) 447-1532 helenachamber.com

This issue of the Chamber’s B2B Connection is a bit of an end to 2014 and start to 2015! We hope you enjoy the interesting stories about development and more

magazine layout and design by

1131 Poplar St Helena, MT 59601 (406) 996-1361 edgemarketingdesign.com

that our members and partners have submitted.

T

his publication has been so well-received

this magazine relevant, current, and full of

by our membership and goes to all

business news.

representatives of each member business. We

you might have on making this publication the

you will share your copy with co-workers!

best it can be, please give me a call or email at

This issue has several guest articles and we thank Ron Mercer, recently retired and longtime airport manager for his historical

cover photo Chris McGowan Photography

If there are articles, topics, issues, or suggestions

also use it in our member recruitment. We hope

cburwell@helenachamber.com or contact Rhonda Retz at rretz@helenachamber.com.

Thanks again for your support and

commentary. Thanks also to City Manager

membership with Montana’s oldest chamber of

Ron Alles, developer Mark Runkle (Mountain

commerce – now celebrating 125 years in 2015!

View Meadows) and developer/builder Mike Hughes who so graciously gave their views and thoughts on local development for the

Contributing Authors

Helena area. Their valuable contributions make

Mike Hughes

i n th e o f f ic e

MIKE HUGHES BUILDERS

Ron Mercer

RETIRED, HELENA REGIONAL AIRPORT

Chris Mead

ASSOCIATION OF CHAMBER OF COMMERCE EXECUTIVES

Tyler Miller

HELENA INDEPENDENT RECORD

Ron Alles

Helena city manager

Galusha Higgins & Galusha ©2015 All rights reserved. The information contained within this document may not be reproduced in whole or in part without the express written permission of the Helena Area Chamber of Commerce. Every effort was made to ensure accuracy of information in this publication. However, due to the passage of time and the anomalies inherent in the publishing process, we cannot be responsible for errors or incorrect information.

cathy burwell: Chamber President/ceo

T

his has been a very motivating and exciting year since making the move to this new position within the Chamber. I love all the Helena Chamber has to offer, so this position has been challenging, yet rewarding to be able to work on the communications that keep our membership informed and connected.

I have been working on new ideas and focus for the B2B Connection and welcome input from all members. With the responsibility of all communication, I hope our e-news, e-advocate, and other news that are sent to you are useful and valuable. I did switch up our newsletters to bi-weekly and added a “members only” event calendar that is bi-weekly, on the opposite weeks of the newsletter.

All chamber members now have the ability to update and edit your businesses profile/presence on the chamber’s website: www.helenachamber.com. This will ensure that only the most current contacts and information on your business is being seen by the thousands of visitors to this popular site every month. Give me a call for more information or help on how to set up your account.

Rhonda retz: Office & Communications Director and B2B Connection Editor

Providing a return on the trust you invest in us i n n o v at i v e

|

experienced

|

d e d i c at e d

Airline Service To 4 Major Hubs

Alaska Airlines - Seattle Delta Airlines – Salt Lake City and Minneapolis United Airlines – Denver Visit www.helenaairport.com for 9:53:56 more Chamber of Commerce Ad 1-13.pdf 1 1/14/2013 AM information

www.ghg-cpa.com 910 N Last Chance Gulch, Helena 406.442.5520

WINTER 2014/2015 | HELENACHAMBER.COM | 5

2014

Dan Bingham, Dean and CEO of Helena College University of Montana, is this year’s Helena Chamber of Commerce Boss of the Year.

P LU S BE S T P R ACT I CE S F R O M M O R E O F TH I S YEA R ’ S NO M I NEE S

6 | HELENACHAMBER.COM | WINTER 2014/2015

his year’s Boss of the Year was nominated by a lengthy list of staff and faculty at Helena College, and many of those staff members have said they have never had a better boss than Dan Bingham. Dean Bingham has many attributes that make him a person that is respected and loved as the leader on Helena’s Donaldson and airport campuses.

Intercepts from the nomination portray a person who not only supports staff but works to ensure that both campuses have equal resources for faculty and staff, as well as students.

He is cognizant of the need to keep them connected, to avoid polarization of the two campuses but rather to make everyone feel part of the institution as a whole. He realizes that the areas of the campus have their long-standing traditions and the need for them to continue those traditions. And yet, he is diligent to ensure the safety and security of all who participate. In an effort to support staff morale and camaraderie, Dean Bingham made the recommendation to form a Staff Senate. He was integral in the creation of bylaws and made himself available to all meetings to discuss any and all issues.

Dean Bingham gives people chances.

He allows them to learn from their mistakes and supports them in their personal and professional growth. He cares deeply for everyone on campus and feels a sense of responsibility towards them all. He’s a great listener, kind, good-natured, and understanding.

With a fairly large staff, Dean Bingham goes out of his way to get to know everyone working at the campus and shows a genuine interest in their lives.

Staff at Helena College are very proud of the fact that Dan strives to keep the college innovative, to lead the pack in two-year education in Montana. Helena College is the only two-year institution in Montana with a true strategic plan and serves as an example to other two-year campuses

Bingham accepting the Boss of the Year award

across the state – working diligently to create articulation agreements with four-year schools to guarantee enrollment for students who want to further their education with a bachelor’s degree. Helena College is the only school in the university system that has worked with the Department of Labor and area industries to create a forward-thinking apprenticeship program, the first of many.

When the legislature-mandated campus Executive Advisory Councils across the state were disbanded, Dean Bingham gathered together Helena area business and industry individuals who could help guide the college to fit the needs of the community. At the same time, he recruited other community leaders to form the Helena College Foundation, Inc. The primary goal

of the Foundation is to help provide additional resources for potential students through scholarships. In addition, the Foundation plans to help build the institution, to improve upon the opportunities of the students, as well as to provide a valuable training resource for the community as a whole.

What sets Dean Bingham apart from other bosses? To start with, he is more approachable than many bosses.

He always asked the question, “Is this what is best for our staff, faculty, and students?” He treats people as they are all on the same level with him. He asked questions. He listens to answers.

Then, he finds the solutions.

When a staff member has a struggle in their personal life, Dan does what he can to help them through their crisis.

Dean Bingham participates in many community events (both related to the campus and unrelated) and volunteers for efforts that will help move the community forward and improve the lives of Helenans and of the students, faculty and staff of Helena College.

He is a fervent and dedicated member of the community and has a feeling of responsibility that is really rare. He gives a tremendous amount of time and effort into making business and industry thrive.

Summing it all up, Dean Dan Bingham has an incredible sense of family, community, and quite simply, the desire to make the world around him a better place. He does not do this for accolades or to be in the spotlight.

His staff and faculty felt that he truly deserved this award and were extremely proud and excited to see him receive the honors.

WINTER 2014/2015 | HELENACHAMBER.COM | 7

2014

Best Practices from Some of the 2014 Nominees Dr. John Smith, DMD

“Quality continuing education opportunities routinely scheduled to keep our team current with the best dental practices. Sometimes families and spouses have been allowed to attend with the employee.”

Helena Family Dentistry

“For staff birthdays, the birthday person gets to choose a favorite restaurant and the whole staff goes to lunch to celebrate with them.”

“Allowing flexibility in scheduling that allows staff to leave for school plays, sporting events, ailing parents or children and other commitments of family life is appreciated by all staff.”

Andy Bauer Prickly Pear Land Trust

“Team building is important. Twice a year, Andy plans a team building event for us to participate in. Sometimes it is a ski day, an afternoon spent volunteering, or a float trip on the Missouri. This allows us to building our relationships, work better together, and simply have fun.”

“Showing appreciation, respect and giving kudos lets staff feel appreciated. Andy does an excellent job of checking in with staff to be sure we have what we need to complete our work.”

sheri ohs-mosley Montana Records Management

8 | HELENACHAMBER.COM | WINTER 2014/2015

“Staff looks forward to coming to work as the atmosphere is fun and supportive. Staff feels important and needed.”

“Having a boss that is not afraid to do any task at their business and who will work right alongside you makes employees have great respect and appreciation for them.”

ed stofko Rocky Mountain Credit Union

“Having a boss with three important character traits….honesty, integrity, and a sincere appreciation for those around him makes our credit union a great place to work. Clear communication and transparency throughout all levels of the organization helps everyone succeed at their jobs.”

“A boss that treats everyone on staff with respect and kindness is indeed appreciated. Ed cares and shows great respect for his staff and therefore they highly respect him. He has implemented incentives to allow staff to share in the success of the business.”

Andy and Jena sabatini

“The staff is rewarded several times throughout the year with programs designed to promote recognition from guests and other staff members. Andy and Jena make it a point to celebrate every employee’s accomplishments!”

Hampton Inn and Residence Inn by Marriott

“Andy and Jena strive to recognize the strengths an employee possesses and help nurture that strength in a positive fashion.”

tim bartz Anderson ZurMuehlen

“Tim knows each staff member and partner, their family and their history. He asks about them and then makes note so the next time he sees them, he asks about it. He takes special, personal interest in everyone at AZ.” “Tim expects a lot from everyone on staff but he hopes they expect more of themselves. He is a father, a friend, a cheerleader, a disciplinarian, and an advocate – not for just some, but for everyone.”

john steinhoff JCCS

“John has implemented more team outings, such as BBQ’s, baseball games, community volunteering, etc. and provides little extras to show appreciation for a your hard work and a job well done.”

“As busy as he is, John always has time to help out on questions or problems that come up. Even if it’s not his area of expertise, he’ll do his best to come up with a solution or point you in the best direction to find the solution.”

People buy into the leader before they buy into the vision.

JOHN MAXWELL, LEADERSHIP AUTHOR

WINTER 2014/2015 | HELENACHAMBER.COM | 9

2003 airport exanpsion and remodel by CWG Architects. Photos Š John Reddy.

reflecting on

50 years of air service and airport changes

By Ron Mercer, Retired Helena Regional Airport Director

10 | HELENACHAMBER.COM | WINTER 2014/2015

It is approaching 50 years since I secured a job loading baggage and mail for Northwest Airlines at the Helena Airport. There have been a lot of changes in those five decades.

1966 I moved into a full-time position Ia nwith Northwest Orient Airlines as ticket agent. Northwest Airlines

served Helena (they began service to Helena in 1938) with Lockheed Electra turbo-prop aircraft that carried 77 passengers in a 34 first-class, 43 coachseat configuration. Western Airlines also served Helena using four-engine, pistonpowered DC-7 airplanes.

At that time we were using teletype machines to send messages along with the only other technology that was available – telephones (we also had a radio system to talk to the aircraft).

Local airline agents actually booked a lot of reservations for Helena residents and were able to do that using manually maintained records of all of the Northwest flight availability – each segment of each flight was marked out once the main office in Minneapolis sent out a teletype message showing when a particular flight segment on any given day was filled.

Classes of service were limited to coach, first class and 30-day excursion fares. As an example, a one-way ticket to Billings was $17.01 and a round trip excursion fare to Seattle or Portland was $57.12.

As time passed Western Airlines (WAL) upgraded to 737-100 aircraft and Northwest Orient Airlines (NWA) started flying 727-100 (called “stubbies” by the airline crews) and 727-200 aircraft (identified as “stretches”) through Helena. Northwest’s Chief Pilot Paul Soderland was from the Billings area and landed the first 727 in Helena.

Typically each airline had two flights each direction per day (NWA east and west and WAL north continued on page 12 >

WINTER 2014/2015 | HELENACHAMBER.COM | 11

Photo © John Reddy

> continued from page 11 and south) with additional seasonal service during the summer months. These flights made many stops along the way, with one east-bound flight going to Billings, Bismarck, Minneapolis and the other east-bound flight arriving from Seattle, Spokane and Missoula and then on to Butte, Bozeman and Billings, etc.

In the late 1970’s Gordon Ragsdale, another Helena NWA agent, and I put together a new route proposal that we called “skip stop” service that reduced the number of stops on flights and allowed them all to inter-connect in Spokane, Billings and Minneapolis or Chicago. The morning flight from Seattle through Great Falls and Billings was then nonstop to Chicago which was a huge step forward back in those days. That flight began as a Boeing 707-320 (a large fourengine jet) and later was changed to one of the early jumbo jets – a DC-10 – that provided a great deal more seats east and west as all Montana stations connected to these flights in Billings or Spokane.

After this flight schedule proved to be a huge success (along with a few other ideas we had come up with) Gordon and I were offered jobs in the Minneapolis general office.

He accepted a job offer and ended up as the manager of Northwest’s flight inventory system, but I opted out of the position of Assistant Manager of their system-wide reservation system and left the airline to pursue private interests. Those were the great days in the aviation industry as airports would be paid for increased operating costs through long-term lease agreements with the airlines – the airlines raised fares as necessary to cover the airport fees.

12 | HELENACHAMBER.COM | WINTER 2014/2015

After a few years in private business (I owned and operated Backhoe of Montana, Western International Porcelain and purchased and subdivided a couple of large blocks of property in the Helena Valley) I began a mining operation that led to the need to return to an 8-to-5 job.

During that time the Airport Board and management (Bud Kelleher) made a very controversial decision to build a new terminal on the north side of the airport. The project cost had to include new sewer, water and road infrastructure as well as new taxiways to serve the north side of the airport.

These costs were partially covered by a 20-year lease agreement with Northwest and Western Airlines.

The expanded operations of the airport resulted in the establishment of an Assistant Manager position and I was fortunate to be selected to fill that job in 1981 during a very difficult business climate due to uncontrolled inflation and very high interest rates. Helena’s air service had remained fairly stable with the addition of Big Sky Airlines and other commuter services that provided intra-state service to airports throughout Montana.

As deregulation set in, it became very clear that Helena was not going to meet the required passenger movement/ financial criteria that requires an airport to board 150,000 passengers in order to generate enough airline-related income (building rent, landing fees, rental car fees, parking lot revenues, etc.) to offset the cost of providing the required infrastructure (terminal buildings, taxiways, runways, aircraft fire protection, law enforcement, management, etc.).

Helena’s air service market has very limited manufacturing activity, lacks a national level tourism attraction and the primary employer in the community – government services – has been working to reduce employee travel due to budget constraints. It became clear that Helena would have to find non-aeronautical revenues to offset operating costs so that airline fees could be kept as low as possible or the airlines would reduce or eliminate service to the Capital City. Although Helena did get new air service from Frontier Airlines in the ‘80’s, Western Airlines soon left the market as it was over saturated with airline seats. As airline deregulation was fully implemented airlines began to pull out of small markets and moved away from longterm operating agreements, putting much greater financial pressure on small airports, particularly those that were not located close to a national tourist attraction which generated significant passenger traffic.

I was promoted to the Airport Director position after Bud Kelleher retired in 1987 just as Northwest Airlines had announced they were pulling out of Helena after over 50 years of service. They quoted high airport fees and the small population base as their reasons for leaving. The first step toward financial well-being was to become a pure Airport Authority, allowing the Airport to operate independently from City/County annual budget review and other criteria.

In order to accomplish that status, the Airport gave up a county-wide two mill levy that had supported the operation of the Airport for many years. The Authority immediately began developing non-aeronautical revenues to replace the mill levy and expand the financial strength of the Airport.

Over the next decade the Helena Airport was able to cut airline fees by more than 50 percent by securing long-term non-aeronautical leases that included aerospace development and several regional government offices. The Airport took over administering the parking lot operation and cut parking

fees 75% using an honor system. Even with the reduction of the fees, the revenue to the Airport has grown from $10,000 per year when operated by APCOA (the majority of the parking revenue went to the parking company to pay wages and overhead) to nearly $300,000 per year. A regional fire training center was constructed (another revenue generator) and land was leased to Lee Enterprises, MACo, Costco and other businesses. The story of the development and airline agreements is much too complicated to include in this short article, but it allowed Helena to have -- in my opinion -the best air service for a community with the market area size we have (again considering there is not a large tourism passenger attraction in the area). The lost opportunity to have BlueCross BlueShield located at the Airport will have a lasting impact as the revenues from that project would have helped insure continued airline service refinements for Helena.

Airline service to Helena is much more complicated than this short article covers, but it has been proven 100 times over that a city with only 25,000 residents or a market area of about 60,000 residents cannot maintain non-stop service to four hubs on an ongoing basis without significant non-aeronautical revenues to insure airline costs remain at or below market levels. That issue is compounded by the fact that Helena has four competing airports within approximately 100 miles in each direction. The following comparison to other Montana airports is simplified but history has shown this to be the case: Butte: Larger market area but due to shortfalls in funding requiring higher airport fees, this city has already lost it primary air service and now depends on subsidized flights to Salt Lake City as their only air service.

to mention the Yellowstone Club) – and a very vibrant high-tech business component. Bozeman has about 65% of their passenger market based on tourism, compared to 2% or 3% in Helena. The increased service for tourism provides very competitive fares and more non-stop flights that attract more passengers from surrounding airports, including Helena.

Unless the Helena Regional Airport is able to grow revenues from non-aeronautical businesses it will become increasingly difficult to maintain the existing level of service, let alone expand air service. In today’s airline financial environment, very large sums of money are required to secure new service, or -- in some cases -- simply to maintain existing service. The non-aeronautical projects are unquestionably the only reason Helena now has service to four hubs but it will become more and more difficult and expensive to maintain this air service.

Fortunately, the Airport Authority, an independent governmental agency that does not receive any local or state tax revenues, is managed by an excellent staff and seven dedicated Airport Commissioners, as the future of Helena’s air service is directly dependent on increasing revenues.

If that cannot be achieved airline service will revert to limited subsidized flights to one or maybe two hubs (that is assuming that the subsidy program survives congressional cuts). The loss of the existing air service levels would greatly decrease the ability to attract new businesses to Helena, creating a greater dependency on government services to provide jobs for Helena’s residents and their families.

missoula: Much larger population and market area – large university system – increased medical services – receives passengers from extended markets to the south, west and north – and has more businesses as compared to government agencies in Helena.

GET OUT.

great falls: Much larger population base including a market area that goes all the way into southern Canada – large military base – and travel to other cities is more limited than Helena due to the lack of convenient roadways.

GET COVERED.

Bozeman: Larger population – large university – very large national recreational areas (Big Sky and Yellowstone Park not

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leadership helena celebrating 33 years of training The Chamber’s Leadership Helena Program has been in existence for 33 years. Each year the Chamber recruits employees from member businesses to participate in the class and it is estimated that nearly 1,000 Helenans have successfully completed the program.

Leadership Helena Retreat

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hese individuals have graduated from the program with new or re-developed leadership skills that help them not only in the business world, but also in their personal and family lives.

Leadership Helena is designed to develop informed, skilled, vigorous and effective business leaders through a course of leadership development, networking, and chamber and community involvement. By providing leadership development and community involvement, the program is successful at giving participants the tools necessary to question standard practices, encourage new visions, empower themselves and others to act, and to make a difference in the community.

The chamber is honored to have the leadership training portion of the program facilitated by Dev Warren of Ascendant Advisory Group. Some of the topics covered during this training include

14 | HELENACHAMBER.COM | WINTER 2014/2015

Time Management, Personal Discipline and Great Leadership, Dealing with Underperformers and Playing to Strengths while Minimizing Weaknesses. This training allows the participants to openly discuss the qualities and traits of leaders and how they can incorporate these aspects of leadership into their own business and personal lives.

The Chamber would like to thank Chairman Dean Mack of the Student Assistance Foundation for his time and dedication to the program. We would also like to thank the Helena community and in particular the many businesses that support this wonderful program. It is because of this great partnership that the Leadership Helena program continues to thrive. The Chamber continues to work hard to make Leadership Helena the premier leadership program in the state.

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membership matters connect to your community As the oldest chamber in the state of Montana, we are approaching our 125th year in 2015. Our mission to promote business, quality of life, and economic development through local business alliances has kept us relevant over the years.

T

he Chamber is an indispensable part of our community and a valued resource to our members.

Because of the direct services we provide to members and the impact we have on our community, businesses express a sense of pride in being a member of our organization.

For a complete listing of our programs and services, please visit our website at helenachamber.com.

Helena is a proud city comprised

By Cassie Parr, Helena of people who are passionate about Chamber of Commerce our community. I feel there is a great Membership Director sense of energy, excitement, and momentum right now in, and around, Helena. Now, more than ever, people want to get connected and be a part of a network of people who share the same passion and excitement for their community. I’m proud to say that the Chamber offers that – a point upon which people come together to support, encourage, share, learn, educate, and do business with one another.

The Shapiro Group did a study in 2012 of the real value of joining a local chamber and found that when consumers knew a business was a chamber member, they were 49 percent more likely to think favorably about that business and 80 percent more likely to purchase goods or services from it in the future.

Membership DOES matter!

If you are currently a member of the Helena Area Chamber of Commerce, I challenge you to step up and make your

membership matter. Here are a few ideas to help you make the most of your Chamber Membership: Stay Informed Pay attention to our e-newsletters, calendar of events, and don’t skip over the City Commission Reports. Get in the know!

Get Out We offer monthly events to help you build your network. Go to these events with an open mind and the goal of enhancing your connections. Watch for our new Chamber and Chamber Member Only calendar for upcoming events!

Speak Up As a member, you matter and so does your voice.

Share with us your ideas, opinions, and exciting news!

Get Involved From our Member Services Committee to the Leadership Helena Program and every opportunity in between, we offer many ways to help you get involved.

Buy In We are a membership based, non-profit organization.

We rely on your membership to keep us up and running. Please believe in us and show your support. As the number of members continues to grow, and the level of investment that businesses are willing to put in increases, we promise to put that all back into creating more and more value for you.

The Helena Area Chamber of Commerce is proud to be celebrating our 125th year, and excited to see what the future will bring for the Chamber and the Helena Area. Thank you for your continued support.

To learn more and become a member, contact Cassie Parr at 406.447.1945 WINTER 2014/2015 | HELENACHAMBER.COM | 17

Local

Chambers:

the Rodney s d el i f r e g n a d

of

history?

At this time of election campaigns, many local chambers of commerce make news via candidate forums, endorsements, and more. But after the first Tuesday in November, the silence returns. The U.S., however, would be almost unrecognizable if the million

acts of 7,000 local chambers could somehow be removed from its past. Here are a few reasons why we’ve forgotten what chambers have done and continue to do.

By Chris Mead, Senior Vice President of the Association of Chamber of Commerce Executives and author of The Magicians of Main Street: America and its Chambers of Commerce, 1768-1945

18 | HELENACHAMBER.COM | WINTER 2014/2015

1. they tend to avoid taking credit. As Ralph Waldo Emerson said, “There is no limit to what can be accomplished if it doesn’t matter who gets the credit.”

2. They don’t have overt power and so they must share credit for accomplishments with those who have the final say, even if the project was the chamber’s idea. This inability to control the whole thing makes poor news copy. “The chamber was 40 percent responsible for the new convention center” is a headline none of us will ever see.

3. Individuals, not groups, capture our attention. Do we think about the 600,000 shivering French troops outside Moscow, or the short, charismatic man responsible for it, with his hand inside his vest?

4. Chambers, by design, start things and spin them off.

Many festivals, transportation projects, and civic improvements began at chambers but went on to be managed by other groups. Years later, we forget where it all started.

5. “Rich boy makes good” or “rich boy does good” makes boring copy. Yet most chamber members aren’t rich. And sometimes these individuals, rich or poor, put their heads together and change their communities in fascinating ways.

6. The business of business people is business. Entrepreneurs are lionized for the way they line their wallets. We don’t usually think of their other lives, in which they may eclipse their business achievements.

7. “It was inevitable.” Of course if you put influential people in 7,000 cities and towns together, for a dozen or more times a year for 10, or 50 or 200 years, something’s going to happen. But the real question is, why do some chambers hit it out of the park, while others hit themselves on the head – sometimes repeatedly?

8. Government organizations and nonprofit groups have proliferateD, frequently with the support of chambers of commerce.

It’s not hard to get lost in these manythicketed woods.

9. Local chambers aren’t ideological. They often lean to the right on general economic and business issues, but when it comes to getting that bridge funded or a bond issue for a much-needed school, they can veer to the left faster than a speeding politician.

Not being easily classified politically, chambers are not easily grasped by students of history.

10. The U.S. Chamber of Commerce, founded in 1912, is often seen as the leader of local chambers; in some ways it is, but there is no hierarchy or unified governing body in the American chamber

universe. Local chambers are not “chapters” under the national chamber.

The U.S. Chamber, often involving the loose federation of local chambers, has played a major role in American history.

And so, too, have thousands of local chambers, plugging away with on policy, politics, and place-making since the first one emerged in New York in 1768.

11. Most chamber members are neither saints nor villains.

They aren’t ashamed of profits but they want to help their community. Where’s the hot story in those intertwined goals?

12. Chambers of commerce depend to a significant extent on something you can’t touch. What is the “Atlanta spirit” or the “Spirit of St. Louis”? While we’ve toned down the boosterism of a century ago, chambers of commerce still rely on bonds among individuals within the chamber, and within the community, to make things better than they are.

Whether it’s a “rah-rah” spirit or a buttoned-down, urban, noblesse obligeinspired caring for the community, it can be very real.

13. Local chambers are “just local.” Where’s the sweep of history and the path of armies? Where’s the glamour of Main Street? What’s the glory in changing a street-sign ordinance? And yet, as Tip O’Neill said, “All politics is local.” Jerusalem, Florence, and Athens are local. From comparatively little places, big things can happen. 

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By Mike Hughes, Owner, Mike Hughes Builders

outSIDE VERSUS inside Mike Hughes, of Mike Hughes Builders, was asked if he would write a letter for the B2B magazine on the subject of building new homes outside the city limits of Helena versus inside the city limits. Here are Mike’s thoughts on this.

22 | HELENACHAMBER.COM | WINTER 2014/2015

E

There has been a lot of comment and discussion lately regarding the disproportionate number of new homes built in the city compared to the county. The Montana Building Industry Association’s statistical data shows that Yellowstone, Gallatin, Cascade, and Missoula counties, all fall into roughly a 50/50 ratio on new homes built in the city and outside the city. However, Lewis and Clark County is much different. MBIA data shows that for every one home built in the city, seven homes are built in the county. Why is that? ell for starters, let’s examine the two main factors that are the driving force to any of these statistical numbers.

W These two factors are used by every one of us, every day of our

lives. These two factors result in what we wear, what we drive, what we eat, where we shop, and yes, where we live. These two factors, and they’re “biggies,” are CHOICE and ECONOMICS. Thank God for a country like America that gives us all the freedom of choice. We have all these choices in our lives, including where we will live. The second of these two factors, and probably the more dominant of the two, is economics. With my choices, what is it that I can afford? Can I afford this car or that truck? Should I shop at this store or that store?

So let’s translate this into the new home buying experience. What are my choices in buying a new home for my family? Do we want to live in town?

Living in town provides a close proximity to shopping and possibly to work. Living outside town provides us a larger lot, a place to put our boat or RV. Also, it may allow a place to have a shop or hobby garage. In town, or out of town, we have a choice. Taking that a step further, do the new homes meet my family needs in size and square footage, does the yard size work, do I have to find storage for our camp trailer, how far do I have to drive to work? These are questions to ponder, and there are more. Then, after answering as many of these questions as you can, comes the number two factor, what is it that I can afford?

The results of these two driving factors are in the numbers.

Seven families are choosing and exercising their right to purchase a newly built home outside the city, to one family choosing and exercising their right to purchase inside the city limits. To summarize these results, there needs to be more choice and better affordability in the City of Helena to even out these statistical numbers. Now in the same sense, to say we should not allow development in the county only results in taking the public’s choices away from them and depriving them of the opportunity of affordability. There are simply a lot of people who do not want to live in the city, and choose not to.

There has been some negative and inaccurate discussion in the past year, on housing in the county, its urban sprawl, etc.

I refer to an editorial in the Independent Record accusing people building and or living outside the city limits of being irresponsible burdens on the city taxpayers. I have been building new homes in the Helena area for over 20 years, and the makeup of our area is unique. To the east of Helena, neighborhoods like Holmberg Estates, Lazy H M, Fox Crossing, Wheat Ridge Estates, Fox Ridge Golf Course, Emerald Estates, Pioneer Park, Eastgate 1 and 2, Boundary

Acres, South Boundary Acres, Canyon Ferry Crossing, and Sussex Construction’s new Heron Creek, and to the west Stallion Ridge, Blue Cloud Estates, Broadwater Estates, in the central valley - Pleasant Valley, Grasslands Estates, Fawn Meadows, Glacier Point, Menlo Park, and to the north valley - Northstar, Skyview, Smith Major, Northern Lights, Timberworks, Bridge Creek, and many, many more.

These make up the neighborhoods we call the Helena area.

It doesn’t take city sidewalks and city street lights to make a neighborhood; it takes people and neighbors.

To categorize these neighborhoods as an “irresponsible” burden on the city taxpayer is both inaccurate and an irresponsible use of the word “irresponsible.” When we build a new home outside, or inside, the city, ther family in that new home immediately becomes an economic asset to our community. That home is added to the property tax rolls for perpetuity. That new home owner has a job, or maybe two, owns a business, pays state and federal income tax, fills their car up paying road tax, pays their phone, cable, and power bill, taxes all included. They purchase groceries, clothing, cars, trucks, and all household needs. There simply isn’t a better economic commodity added to a community than a new home.

The National Association of Home Builders economist surmises that each new home built will result in those dollars rolling through local retail cash registers seven times. So for example, each $200,000 home built equates to $1,400,000 of local retail stimuli.

So to wrap up the original subject of this letter as to why a seven to one ratio of new homes are being built in the county vs. the city: the city needs more choice and more affordability. I have had some very good conversations with city commissioners on this. The process now is for a developer to walk in with a proposal on a development and see if it will work or not with the city. Several other cities in other states have taken a more proactive approach. In these urban centers, the city goes out, defines the areas that are most effectively available for growth and then takes the defining steps to extend basic services, sewer, and water to those areas, and development will follow. The city would grow in the direction it chooses and best fits the city. I feel that now it’s just a guessing game where the next proposal might come from.

These are just personal observations and opinions, and in no way reflect those of the Chamber or of any organization.

Thank you for the opportunity to provide my thoughts as a member of the Chamber. 

There simply isn’t a better economic commodity added to a community than a new home

WINTER 2014/2015 | HELENACHAMBER.COM | 23

The Helena IR

Embracing change, reaching more people than ever he one thing that can always T be said about newspapers is they are always changing. The

news changes every day. The technology changes every day.

The readers change and often the people who report the news change. That is what makes newspapers great.

Over the last few years, the Independent Record has seen numerous changes. For the most part those changes have been

By Tyler Miller, Publisher, good, and we are a stronger media Helena Independent Record for it.

Let me take this opportunity to clear the air about a few things. First, we have all heard the rumors, but they aren’t true. Newspapers aren’t dying.

We are evolving and changing, but we are not dying. Quite the contrary, the Independent Record is still the number one media in the Helena area. In fact, our audience is the largest

24 | HELENACHAMBER.COM | WINTER 2014/2015

it has ever been. We reach more than 80 percent of all adults in the Helena Valley and surrounding area each week. No one reaches more people than the IR other than the U.S. Post Office.

Between print and online our audience continues to grow, and while our print has slightly decreased, our online audience has increased far outpaced the decrease in our print audience. That has been one of the first major changes. We are not a print media anymore; we are a communications company. Print is and always will be extremely important to us, but we now serve our news in more ways and across more platforms than ever before. Each story we write, each ad we sell, each headline we produce and each photo we take is transformed and changed to be consumed in hard copy delivered to your door, or electronically on your desktop, tablet, or phone and even across social media. Yes, we embrace technology. Social media and the Internet are the friend of the newspaper, not the enemy.

It is this ever-changing audience that has encouraged us to develop the Connect Me Local campaign. For anyone who is not familiar, Connect Me Local is continued on page 26 >

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one of the largest changes in the Independent Record in recent years. For one price and with one account all people can now consume unlimited content across all platforms. Now, when a husband wants to read the paper and a wife wants to read online, they can – with one subscription. Or when a parent wants to read via a tablet and a teenager wants to get updates from their phone, they can.

Now I understand not everyone wants to consume the information the same, and I don’t blame them. There are many loyal print subscribers who don’t want to read the paper online. I don’t plan to try to change their minds, nor would I ever want to. Print is not for everyone, digital is not for everyone, but we now provide readers the opportunity to get the paper any way they prefer. This is what makes being in newspapers so wonderful. We can all read the best local news, information and ads they way we want. Our goal is simply to empower our community. We want people to be informed of the most important news, the best advertising deals, the most current events and even the opinions of the other people in town.

Along with the change in the way people consume news comes a change with the way that news is produced.

News is fast, and people want it now. It is a new breed of journalists. This evolution has led, in part, to some of the changes in leadership at the IR. In the past two years, we have a new Editor in Greg Lemon, a new Advertising Director in Stephanie Bull, new reporters, new advertising staff and new digital staff.

Stephanie comes most recently from Missoula. She is determined to ensure the Independent Record continues to be the best advertising vehicle in the community – reaching more people than any other media. She brings in cutting edge technology to help maximize online, from banner ads on the website, to search engine optimization, retargeting, website design and hosting and even social media management. On the print side, she comes from an agency background and will help develop extremely creative ideas to grab attention and make ads memorable to ensure they work for the client’s needs.

Greg Lemon brings a change of focus for the paper. He is focused on the reader and the reader experience. With the growth of the web, national news is easier to find, and in turn, our focus has turned even more local. From local schools, to local government, to local recreation and natural resources Greg works to ensure we are delivering the best local news and information. There is no question our readers are invaluable in helping with ideas and tips on stories, and Greg works to make sure those readers’ tips are followed.

No change has been greater than the role of Publisher. I am not from Helena, nor can even Montana, but I tell you I have fallen in love quickly with this great city and this beautiful state. I bring a resolve to get myself, the IR staff and the paper itself more involved with the community. We are focused on the local. Helena and the surrounding area are so full of wonderful things happening and we want to be not only report on them, but we want to be involved in making them happen.

Change is constant, and at the Independent Record we are dedicated to embracing this change to ensure we continue to deliver the most important news to the largest audience across all platforms. That dedication is the one thing that will never change. > continued from page 24

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Helena’s Growth Policy

City of Helena taking the lead n 2011 the Helena City Icurrent Commission adopted the City’s Growth Policy. The basic

purpose of a growth policy, in short, is to provide the vision of how we as a community would like our City to look in twenty years. The process took three years to complete and consisted of numerous community meetings, public hearings, and work sessions by the CityCounty Planning Board and

By Ron Alles, City Commission. Many of our Helena City Manager other land use regulations such as Subdivision Regulations, Zoning Ordinance, extension of Water and Sewer Services Areas, Engineering Standards, and Complete Streets policy use the fundamental concepts provided in the Growth Policy as a guide for the prescriptive rules articulated in each of those public policy documents.

One primary vision illustrated in the Growth Policy is a map of the greater Helena area that identifies a geographic area contiguous to the current city limits and is titled the Urban Standards Boundary or USB. The USB basically extends west to Fort Harrison, north to Sierra Road, east to East Helena and south to the Lewis and Clark County line with Jefferson County. One purpose in identifying this geographic area in the Growth Policy is so the greater Helena community, both inside and outside the USB, can know where the City will work to apply the standards (i.e. subdivision, zoning, and engineering) and deliver the services (i.e. water and sewer) and give people the opportunity to make more informed decisions on the future development of their property or the purchase of homes and businesses.

It is not possible, nor is it necessary, to provide City services to the entire USB area in one, five or even ten years.

However, the City, in partnership with the County, will phase in the extension of City services in a responsible way that protects current City tax/rate payers’ level of service and is

responsive to non-City residents that need or will need City services due to failed septic systems and wells or to develop property that, short or long-term, is best suited for an urban environment and standard. The extension of City services will also provide more opportunities for “infill” development instead of the sprawl that the greater Helena community has experienced for decades.

Current practice requires that an individual property owner pay for the extension of a required service such as City water or sewer. Current subdivision law and practice also requires that a developer must size and pay for the extension of appropriate City infrastructure sufficient to accommodate only that subdivision. Both practices often result in the under-sizing of all types of City infrastructure and require another project at a later date to “upsize” the pipe that was installed just years earlier. This piece-meal approach is inefficient and much more expensive for both the City and, ultimately, the property owner.

The City is taking the lead and will finance the extension of services in two areas included in the USB that can generally be described as the West Side and a limited area along North Montana Avenue. One purpose in the City taking the lead on these two project areas is so that more comprehensive sizing of projects can be undertaken which will eliminate the need to upsize in the near future and lower the per property cost for all benefitting properties.

Several hundred more lots will be available for infill development and can be built to City standards that include curb, gutter, sidewalks, paved streets, and public water and sewer.

In closing, the opening statement of Helena’s Growth Policy is, “…to serve as a plan to guide the choices of the City of Helena and the greater community, to the year 2030, to ensure public health and safety, protect the environment, maintain a high quality of life, promote a sustainable economy, and be a strong livable community.”

By facilitating and guiding the development of new homes and businesses to areas in close proximity to City limits and built to City standards, our community will be much closer to achieving those goals.  WINTER 2014/2015 | HELENACHAMBER.COM | 29

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HELENA DEVELOPER Entrepreneur Mark Runkle, former founder and CEO of a computer manufacturing and distribution company that employed 750 people in a small Midwest farming community, took on the challenge of developing Mountain View Meadows, a mixed-use community located in southeastern Helena. t’s complete with all city IRunning infrastructure and city services. services to and through the

more than 1000 acre development, required boring under Interstate 15 to the south and State Highway 12 to the north, laying over five miles of water and sewer mains sometimes blasting through layers of rock and burying 36-inch pipe as much as 20 feet deep.

It required building a lift station near the airport, building the beginning of a state highway connector between I-15 and Highway 12 and installing infrastructure for a new traffic light at the entrance to the development.

Though a massive undertaking that requires cooperation with local and state agencies to meet strict standards, Runkle feels that developing in the city of Helena is better for homeowners, residents and the community at large, the primary motivation for building in the city. continued on page 32 >

WINTER 2014/2015 | HELENACHAMBER.COM | 31

Mountain View Meadows is a 1000 acre development annexed into Helena’s city limit south of Hwy. 12 just east of the auto malls.

> continued from page 31 It is Runkle’s opinion that building or purchasing a home in Helena’s city limits comes with many advantages. Helena residents enjoy close proximity to work, schools, parks, medical facilities,shopping, and entertainment. They benefit from police and fire protection, complete streets, city sewer and water services, and walkable neighborhoods. New homes built in the city limits, unlike those built outside the city of Helena, must undergo as many as 26 inspections that warrant a home is built to code and meets the most current energy standards creating homes that are less expensive to heat, cool and maintain.

Although these inspections add slightly to the cost of a new home over a similar sized home outside the city, the monthly savings, the increased property value and peace of mind for homeowners more than outweigh the difference.

Close proximity to work and city amenities also provides an added cost-saving benefit to the city resident. It is estimated that households, on average, make five trips per day to town. Even with the current low gas prices, the typical family living five to ten miles outside the city

32 | HELENACHAMBER.COM | WINTER 2014/2015

will spend $400-$600 a month on transportation fuel costs plus the additional wear and tear on vehicles, time spent commuting, and the stress and damage to roadways never intended to handle the high traffic burden. The increased transportation costs eat up any mortgage savings from purchasing a cheaper home outside the city and burden all taxpayers with the cost of infrastructure repairs and upgrades.

Although building lots inside the city are generally smaller than those outside the city, all new construction in Helena includes the benefits of sidewalks and treed boulevards which add to the value of the lot, but are not included in the lot dimensions. Outside the city, lots begin in the center of the roadway and often include open drainage ditches which use up a substantial portion of the front yard. When these unusable areas are subtracted from the size of the typical lot in residential clusters outside the city, the remaining usable portion can become comparable in size to the typical city lot, but can lack the advantages of sidewalks, boulevards, and complete infrastructure.

Development in the city reduces our individual footprint and by making a smaller footprint, we share the common good, honor the country way of life, respect the needs of our farmers and ranchers, and protect the resources that we all need to live a healthy and prosperous life, not just today but for generations to come.

Mountain View Meadows

Statistics suggest that people are happier living in a community where they can interact with others, participate in clubs, sports, organizations and cultural events and have ready access to services and public facilities. By living in Helena, residents take advantage of short driving distances, walkability and alternative modes of transportation to get where they want to go. The diversity in opportunity, whether for work or leisure activities and the sense of being part of a community is perhaps one of the greatest benefits of living in the city.

Leaving a smaller footprint has become an important goal for many Americans. Leaving a smaller footprint means choosing to use less personal space and sharing in open spaces, green spaces and parks. It means leaving room for farmers to grow crops and ranchers to raise livestock. It means using less water and fuel and tempering energy consumption. It means less impact on the environment, protecting air and water resources and preserving wildlife and natural habitats.

Although country living plays an important role in our cultural diversity and provides residents with lifestyle choices,

unfettered growth in the Helena valley, a closed basin, is unsustainable. Development in the city reduces our individual footprint and by making a smaller footprint, we share the common good, honor the country way of life, respect the needs of our farmers and ranchers, and protect the resources that we all need to live a healthy and prosperous life, not just today but for generations to come.

Recently Runkle and his wife, Director of Design Rebecca Ryland, gifted a fully-developed 5.2 acre park located in the heart of Mountain View Meadows, to the City of Helena.

By incorporating smart growth initiatives to the overall design and plan of the community, Runkle and Ryland believe they can play a role in maintaining a high standard of living for residents and better prepare the City to manage the challenges of the future. Runkle and Ryland take their role as developers very seriously and know that the decisions they make will impact Helena and the surrounding area for hundreds of years to come. They hope that their vision of building a better community will raise the bar for all development and encourage others to grow responsibly. 

WINTER 2014/2015 | HELENACHAMBER.COM | 33

money matters

It’s that time of year again.

Time to plan for your 2014 tax filings.

By Galusha Higgins & Galusha

A

s 2014 draws to a close, we are still waiting for Congress to pass the popular tax benefits commonly referred to as “extenders.” Although this is less than ideal for planning purposes, the good news is that much of the current Tax Code remains unchanged for the 2014 tax year and beyond.

TRADITIONAL TAX PLANNING Traditional year-end planning techniques remain important for 2014. As always, tax planning requires a combination of multilayered strategies, taking into account a variety of possible scenarios and outcomes. These income deferral/exclusion and deduction/credit acceleration techniques may be used to reduce your income tax liability: Income Deferral/Exclusion: + Receive bonuses earned for 2014 in 2015 + Minimize retirement distributions + Postpone the redemption of U.S. Savings Bonds + Delay Roth conversions to 2015 + Offset tax losses against current gains (loss harvesting) + Sell appreciated assets in 2015 + Make tax-free gifts of $14,000 per recipient ($28,000 for married joint filers) + Execute like-kind exchange transactions + Complete installment sales to defer gain + Defer billings and collections

34 | HELENACHAMBER.COM | WINTER 2014/2015

+ Declare any special dividends in 2015 + Defer corporate liquidation distributions until 2015 Deductions/Credit Acceleration: + Bunch itemized deductions into 2014/Standard deduction into 2015 + Accelerate bill payments into 2014 + Pay last state estimated tax installment in 2014 instead of 2015 + Minimize the effect of AGI limitations on deductions/credits + Make an IRA contribution before April 15, 2015 of up to $5,000 per individual (with catch-up contributions of an additional $1,500 available to individuals age 50 and older) + Maximize net investment interest deductions + Match passive activity income and losses In addition to traditional year-end tax strategies, the following issues may also impact your year-end tax planning: Additional HI (Medicare) Tax Higher income individuals are subject to an additional 0.9 percent HI (Medicare) tax on wages received in connection with employment in excess of $200,000 ($250,000 for married couples filing jointly and $125,000 for married couples filing separately). To avoid an underpayment penalty related to this tax, you can instruct your employer to withhold an additional amount of federal income tax from your wages before year end. continued on page 36 >

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IT’S 2014 TAX TIME! Every tax situation is different and requires a careful and comprehensive plan. Please consult a tax professional who can address your specific individual tax situation.

> continued from page 34

Itemized Deduction Phaseout (Pease Limitation) The Pease limitation on itemized deductions (named for the member of Congress who originally sponsored the legislation) reduces itemized deductions for higher-income taxpayers. For 2014, itemized deductions are reduced when AGI exceeds the following threshold amounts: + $305,050 for married taxpayers filing jointly and surviving spouses; + $279,650 for heads of households; + $254,200 for single filers (other than surviving spouses and heads of households); and + $152,525 for married taxpayers filing separately.

The personal exemption phaseout requires higher-income taxpayers to reduce the amount of their personal exemptions when their AGI exceeds certain threshold levels. The same threshold limits used in the Pease limitation above apply to the personal exemption phaseout.

TAXES ON INVESTMENTS Generally, taxable investment accounts are accounts other than retirement accounts, insurance contracts and annuities. When managing investments held in taxable accounts, the measure of success is the net return after taxes, rather than the gross return. The following taxes must be taken into account in order to achieve that objective: Capital Gains Tax Capital gains are taxed at a rate of zero percent for taxpayers in the 10 and 15 percent brackets; the 15 percent rate for taxpayers is applicable to those in the 25, 28, 33, and 35 percent brackets; and higher-income taxpayers that are subject to the 39.6 percent income tax rate pay 20 percent.

Tax on Dividend Income Qualified dividends received from domestic corporations and qualified foreign corporations are taxed at the same rates that apply to capital gains. Certain dividends do not qualify for the

36 | HELENACHAMBER.COM | WINTER 2014/2015

reduced rates, including dividends paid by credit unions, mutual insurance companies, and farmers’ cooperatives.

Net Investment Income Tax (NIIT) The net investment income tax (NIIT) is a Medicare surtax of 3.8 percent imposed on the lesser of net investment income (NII) or modified adjusted gross income (MAGI) above a specified threshold. Distributions from IRAs, pensions, 401(k) plans, taxsheltered annuities, and eligible Code Sec. 457 plans are excluded from NII and from the NIIT. NII includes the following investment income reduced by certain investment-related expenses, such as investment interest expense, investment brokerage fees, royalty-related expenses, and state and local taxes allocable to items included in net investment income: + Gross income from interest, dividends, annuities, royalties, and rents, provided this income is not derived in the ordinary course of an active trade or business; + Gross income from a trade or business that is a passive activity; + Gross income from a trade or business of trading in financial instruments or commodities; and + Gain from the disposition of property, other than property held in an active trade or business.

Individuals are subject to the 3.8 percent NIIT if MAGI exceeds the following thresholds (not subject to inflation adjustment): + $250,000 for married taxpayers filing jointly or a qualifying widower with a dependent child; + $125,000 for married taxpayers filing separately; and + $200,000 for single and head of household taxpayers.

EXPIRED TAX BENEFITS The following temporary individual tax benefits, known as “tax extenders,” expired on December 31, 2013. These benefits are likely to be extended, probably for two years, as in the past.

However, if Congress fails to act, some of the benefits that will not be available in 2014 are:

+ Above-the-line deduction of up to $250 for certain expenses of elementary and secondary school teachers, including books, supplies, computers, and software + Above-the-line deduction for qualified tuition and related expenses + Credit for residential energy property + Credit for two- or three-wheeled plug-in electric vehicles + Exclusion from gross income for discharges of indebtedness on qualified principal residences + Exclusion from gross income of qualified charitable distributions from individual retirement plans for individuals aged 70½ or older + Itemized deduction for mortgage insurance premiums as qualified residence interest + Itemized deduction for State and local general sales taxes in lieu of State and local income taxes + Special 100 percent exclusion of gain on sale of qualified small business stock acquired after 09-27-2010 and before 01-01-2014 + Special 60 percent exclusion for gain on sale (attributable to periods through 12/31/2018) of qualified small business stock of an empowerment zone business (empowerment zone designations expire 12/31/13) + Special rules for contributions of capital gain real property made for conservation purposes In addition, the alternative motor vehicle credit for qualified fuel cell motor vehicles is set to expire at year-end, so there may be little time to take advantage of this energy-driven benefit.

TAX BENEFITS FOR FAMILIES

You should review your family’s situation annually to make sure that you take advantage of any applicable child- or educationdriven benefits, such as: + + + + + + + +

Adoption credit Exclusion for adoption assistance programs Child and dependent care (CDC) credit Child tax credit (CTC) and the refundable (additional) CTC Earned income credit (EIC) American Opportunity Tax Credit (AOTC) Coverdell Education Savings Accounts (ESAs) Exclusion for educational assistance programs

+ Scholarship programs + Student loan interest deduction

SHARED RESPONSIBILITY PAYMENT Beginning in 2014, some of the most far-reaching provisions of the health care reform legislation became effective: + The requirement to carry “minimum essential health coverage” for yourself and your dependents (known as the “individual mandate”); + The ability to obtain coverage through an insurance exchange; and + For qualified individuals, a special tax credit to help offset the cost of insurance.

If you fail to comply with the individual mandate to carry minimum essential health coverage, you are required to pay a penalty, called a “shared responsibility payment,” for each month of noncompliance. The rules stipulate that a person has minimum essential coverage for a month if the person is enrolled under a plan providing such coverage for at least one day during any calendar month.

The shared responsibility payment amount is either a percentage of the individual’s income or a flat dollar amount, whichever is greater. The amount owed is 1/12th of the annual payment for each month that a person or the person’s dependents are not covered and are not exempt. For 2014, the payment amount is the greater of: + One percent of the person’s household income that is above the tax return threshold for their filing status; or + A flat dollar amount, which is $95 per adult and $47.50 per child, limited to a maximum of $285.

If you qualified for the tax credit that helps to offset the cost of coverage, you may have taken an advance payment of the credit. If so, you must reconcile the amount you received up front with the actual credit computed when your 2014 tax return is prepared.

Every tax situation is different and requires a careful and comprehensive plan. Please consult a tax professional who can address your specific individual tax situation.

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Contact Cassie Parr for price details: 447-1945 cparr@helenachamber.com

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Here’s your dedicated Chamber staff The South Hills Trails

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40 | HELENACHAMBER.COM | WINTER 2014/2015

Look for the Official Guide to Helena

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WINTER 2014/2015 | HELENACHAMBER.COM | 41

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