Council decides not to increase impact fees

The Kalispell City Council on Monday decided not to adjust police and fire impact fees that were recommended for dramatic increases.

The city’s Impact Fee Committee had recommended that police impact fees be increased from $41 to $277 for single-family homes, $31 to $210 per apartment unit and $16 to $179 per 1,000 square-feet of commercial building.

The committee also recommended adjusting fire impact fees from $483 to $1,067 for single-family, $367 to $811 per apartment and $350 to $778 per 1,000 square feet of commercial space.

The council on Monday approved a resolution approving police and fire capital improvement plans laid out in February that outline the future needs for the two departments. The Impact Fee Committee then processed those plans to determine how much impact fees would have to be increased to pay for these needs.

However, in an effort to bolster future investment in the city, the council rejected any increases in the impact fees.

Council members did acknowledge that the police and fire departments had growth issues that need to be addressed with increased funding.

“Impact fees have shown, in my opinion, that they create urban sprawl. It pushes people to areas that fit their budgets,” council member Chad Graham said. “I believe the impact fees are anti-growth and [these projects] can be paid for a different way.”

Council members Rod Kuntz and Tim Kluesner echoed Graham. Kuntz called the increase “astronomical” and Kluesner gave an anecdote about cable TV.

“It’s kind of like the cable TV company raising my rates,” Kluesner said. “You know what I did? Cut my cable. Enough is enough.”

The recommended impact fees would have paid for new personnel and facilities for each department.

“By approving the report, they were approving the capital plan that was set out, which identify the needs of the future,” City Attorney Charlie Harball said. “It’s essentially a master plan of, as each year goes by, what will be in demand for police and fire. It’s important that they did that.”

Harball said that by approving the police and fire capital improvement plans, impact fees are still on the table if the city plans to build a new facility in the future.

The facilities requested by the fire and police departments are simply examples of what would be needed if Kalispell does grow to a population of 32,000 by 2035.

“We will find a way to pay for these needs,” Mayor Mark Johnson told Police Chief Roger Nasset and Fire Chief Dave Dedman. “It’s our obligation to do that. Just give us a little time to find a different way to do it.”

During the public hearing Monday, several residents and community leaders opposed the increase in fees.

“You’ve got a delicate balance to achieve: to fund that personnel, but if you go too far you risk a tipping point where you are discouraging investment and providing cheaper alternatives to other cities in the county,” Kalispell Chamber of Commerce President Joe Unterreiner said.

The real estate community voiced opposition as well, saying impact fees for new development are cheaper in nearby communities such as Bigfork and Whitefish.

“The cumulative effect is driving business away from Kalispell,” said Erica Wirtala, government affairs director for the Northwest Montana Association of Realtors. “To place this burden on the back of a new property owner coming in is a tough pill to swallow.”

Amending the ordinances means finding new ways to pay for the growing needs of city fire and police departments. Kluesner called on those who still remained in the audience to reach out to local state legislators to help find the solution.

“We need your help to go talk to the legislators, they need to understand that the decisions made in the city affect everyone and we need ideas from them as well,” Kluesner said. “This is another manifestation of the funding problems that we have.”

Council voted 6-0 for the resolution that kept impact fees unchanged. Council members Phil Guiffrida, Kari Gabriel and Sandy Carlson were not present Monday night.

At next week’s work session, the council will meet with the Flathead County Economic Development Authority to decide on upcoming steps for the Glacier Rail Park and Core and Rail Redevelopment plan.

The work session begins at 7 p.m. at City Hall.

Reporter Seaborn Larson may be reached at 758-4441 or by email at slarson@dailyinterlake.com.