Work session to focus on water impact fee increase
Increases in Kalispell’s water impact fees are the focus of a City Council work session tonight.
The fees have been under review by the city’s Impact Fee Advisory Committee for nearly one year. They also had to be restudied after a prior fee analysis done in 2010 was not considered for almost two years and then found to be out of date.
The proposal before the City Council tonight would increase the minimum water impact fee from $2,213 to $2,567. That’s the fee charged for a new 3/4-inch water connection.
Larger fees are charged for larger connections. The fee for a one-inch connection would increase from $5,533 to $6,418, while the fee for a two-inch connection would increase from $17,705 to $20,536.
The proposal has not changed since it went before the City Council in April. Several council members questioned the 2 percent growth rate that was used in the fee’s calculation and sent it back to the Impact Fee Advisory Committee for more review.
Members of that committee ultimately found no basis to adjust the growth forecast, which is a key factor in the impact fee’s calculation.
Impact fees are one-time charges imposed on construction and redevelopment projects that put new demand on Kalispell’s water system. Money generated from the fees can then be used to enlarge infrastructure as needed to accommodate growth and additional customers.
The proposed water impact fees are the maximum amounts that Kalispell could charge. The fees were last adjusted in 2008 despite a Montana law that says municipal impact fees should be reviewed and adjusted every two years.
Kalispell also charges impact fees for sanitary sewer, stormwater, police and fire services, all of which are coming due for their two-year reviews and adjustments. As presently set, the impact fees total about $6,357 for construction of a single-family home.
Proposed sewer impact fee increases are not before the City Council for consideration because they are still being reviewed by the Impact Fee Advisory Committee.
Similar to the city’s water impact fees, that review of sewer impact fee has continued for nearly one year and gone through two rounds of studies.
Sewer impact fees also were last adjusted in 2008. They face much larger possible increases as Kalispell tries to pay the debt for a $22 million wastewater treatment plant expansion in 2009 and for other costly infrastructure needs. The proposal for sewer impact fees would increase the minimum fee from $2,499 to $4,257.
City Council members cannot take any formal action at tonight’s work session. The meeting starts at 7 p.m. in Kalispell City Hall, 201 First Ave. E. It is open to the public.
Reporter Tom Lotshaw may be reached at 758-4483 or by email at tlotshaw@dailyinterlake.com.