Costs of county government soar

The cost of providing Flathead County's government services is increasing much faster than inflation and outpacing spending in similar counties in Montana, according to an analysis by the acting county administrator.

Despite similar population numbers and growth figures, other counties are not facing the same financial crunch as Flathead County.

The main culprit, according to the report, is the fact that the county covers an exceptionally large area and growth is occurring in every corner of it. Those far-flung areas are more difficult - and more expensive - to service with roads, garbage collection, law enforcement and other public amenities.

The report offers general recommendations to help county services keep up with demand, including better data collection and reporting, making sure planning efforts include cost-of-service concerns, and changing state law to allow people to form "service districts" that could customize services in different parts of the county.

Adopting a flexible system for delivering county services is key, acting administrator Myrt Webb said, since Flathead County is headed toward becoming a kind of "5,000-square-mile city."

"A one-size-fits-all revenue system, a one-size-fits-all service system, is not going to work," he said. "It's going to break."

Commissioner Gary Hall said the county now will embark on a more detailed analysis of road spending to gauge the impact development around the county has on road use and infrastructure needs.

"This study has just basically gotten us started," he said. "We've been needing to do this for a long time."

The analysis compares Flathead County expenditures with those in Gallatin and Cascade counties from 1990 to 2004.

Flathead County, despite spending more money in those 14 years, "is experiencing more difficulty in providing services than either Cascade or Gallatin counties," the report states.

Flathead is currently under a hiring freeze, could see a $500,000 budget reduction in the 2006 fiscal year and is struggling to meet infrastructure needs.

In 1990, all three counties had a similar per capita cost for county services of slightly over $200 a person. Inflation over that period totaled 30 percent, but costs increased by more than that amount - by 60 percent to $349 in Cascade, by 109 percent to $432 in Gallatin and by 84 percent to $435 in Flathead.

Some increases were common to all counties, such as those linked to state legislative actions that reduced county tax bases and caused counties to increase assessments.

Population growth also leads to higher expenditures.

However, unlike Flathead County, Cascade and Gallatin counties are not under a hiring freeze and aren't expecting funding shortfalls.

Gallatin County - even with rapid population growth similar to Flathead's - has been able to pursue significant infrastructure improvements.

The key difference, according to the report, is where county services are needed. The portion of Cascade County's population in rural areas is 28 percent. Gallatin County's is 43 percent.

In Flathead County that number is 67 percent, and "it would seem intuitive that as more residents locate further from the Kalispell area [where county government is centered] the costs of providing services to them would rise," the analysis says.

Records from the county solid waste district support that, according to the report.

From 2000 to 2004, operating costs for remote garbage collection sites around the county increased 35 percent, far beyond what would be expected based on population growth and inflation over that period. The more distant sites - Coram, Kila, Marion - are growing faster than closer locations.

Meanwhile, tonnage from the cities of Kalispell and Whitefish increased only 2 percent.

"It is my contention that what is affecting the solid waste district is also affecting other county departments," Webb wrote. "The sheriff, road and bridge departments are expensive operations that are significantly affected by the large amount of growth occurring in distant county areas."

The sheriff's office, for example, handles 200 percent more cases now than it did in 1990. The road department is struggling simply to maintain existing roads, and there isn't any money for new paving in this year's budget. Growth and higher fuel costs are seen at the main factors.

The report says the county has an opportunity to help bring the county's ability to pay for services in line with the increasing demand for them in the revised growth policy, which is due in 2006.

It needs to include "a complete examination of the level of services required in county areas, how much the services will cost and how the services will be funded," according to Webb's report. That's as specific as it gets - there is no mention of distinct proposals, such as controversial impact fees on new developments.

Webb also mentions that other states allow "service districts" in which residents can choose and pay for different levels of service. Montana law currently allows such districts for infrastructure improvements but not for services.

Reporter Alan Choate may be reached at 758-4438 or by e-mail at achoate@dailyinterlake.com