Upgrade needs $51.6 million

Whitefish plan looking for extra revenue

An ambitious five-year capital improvement plan has the blessing of the Whitefish City Council, but there's one catch - the city has to find an extra $51.6 million to make it happen.

The council last month pushed forward with a $73.3 million improvement plan to meet the requirements of a new state law about creating impact fees.

Since Whitefish already was considering a variety of impact fees, consultant Randy Young recommended the city proceed with the five-year plan.

Young, of Washington-based Henderson, Young and Co., will lead further discussion of Whitefish impact fees at a City Council workshop at 6 p.m. Monday at Whitefish City Hall.

A new City Hall, new fire and ambulance facility plus utility system improvements are among the most expensive projects - and the projects where the biggest funding gaps exist.

The plan recommends the city borrow the money for a $6.2 million City Hall and use the proceeds from the existing City Hall sale to retire as much of the debt as possible. An impact fee could be put in place to collect money from new development that impacts the current City Hall.

Impact fees also would be used to help pay for a new emergency services facility. The city could combine a new fire station with police and city court departments, the plan suggests.

Water and sewer improvements - expected to cost an estimated $28 million over the next five years - would be funded through rate increases. The report shows a $10.6 million shortfall for sewer and $10.6 million shortfall for the water system.

Street improvements are projected to cost $20.5 million through 2012, but resort-tax revenue and other city income can cover only $8 million. The plan suggests an impact fee to collect money from new development that impacts the street system. Impact fees alone can't make up the entire expected shortfall, however, the report notes.

The plan calls for $7.5 million in park improvements, $3.1 million for the police department and about $394,000 for city court over five years. It was based on Whitefish's current estimated population of 7,350 and an expected 33 percent increase in the next five years that will push the resort town's permanent population to 9,775 by 2012.

Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com