City of Kalispell gearing up for changes to utility rates

The Kalispell City Council is reviewing and updating its utility rates for the first time in eight years and delved into the process of setting new sewer and water rates during a work session Monday night.

Public Works Director Susie Turner announced the council potentially will adopt the new rates in March 2020.

City Manager Doug Russell provided an overview of the process and Turner offered further details about the state of the city’s utility rate analysis.

“We are well underway with an update of our sewer and water rates, and also with the impact fees,” Turner reported. “We are at a point where we need to present to council where we’re at and maybe get some feedback, thoughts and input to help us establish certain aspects of the rate, so we can go onto further steps of the rate development process.”

Turner offered further detail on these next steps: “We’re going to use the outcome of this discussion to develop an initial platform which we’ll then bring back to council.”

Shawn Korn of HDR Engineering, the firm contracted to perform the rate study, provided a broad view of the rate-setting process. He outlined three main steps: revenue requirement, cost of service analysis and rate design.

He recommended the cost-of-service analysis be “reviewed periodically,” typically every five to 10 years. He also outlined guidelines for the rate design, emphasizing rates should be “nondiscriminatory” and simple to understand and explain.

The question of whether to employ fixed or variable charges generated considerable discussion from the council. Council members debated at length the benefits and drawbacks of each type of charge.

Korn explained impact fees as well, mentioning their goal is “to establish the relationship between system capacity needs and the fee that’s going to be imposed.” Impact fees will be based on “facility plans, infrastructure and capital projects,” Korn said.

Turner outlined a detailed month-by-month time line for the rate study and rate setting process, with the potential rate adoption slated for March 2020.

In other business, the council also revisited the CORE Area trail design. Council members talked at length about the location where the trail will cross Meridian Road. Issues raised included traffic, the best design for bikes and the planned connection to the existing trail.

Turner informed the council “a supplemental environmental assessment is coming in the next few weeks.” She also reported the 30% design was submitted to the Federal Rail Administration for review on July 31. “They’ll be providing additional comment,” she said, adding there will be weeks for the trail crew to meet and discuss this feedback.

The council also discussed the possibility of including art on the trail and left this and the other ideas for the trail design for further discussion at future meetings.

Reporter Bret Anne Serbin may be reached at bserbin@dailyinterlake.com or 758-4459.