Kalispell examines garbage rate increase

Responding to inflationary pressures while aiming to fully serve the city, Kalispell is looking at a potential rate increase for its garbage collection.

Residences now pay $111 annually for garbage collection. The city is looking at options that could increase that rate by up to $37 per year.

The last time city solid waste rates, which are collected through property tax assessments, were increased was in 2011 and that was by $3 per year.

Mayor Mark Johnson said planning for the future is important to ensure city operations.

“We don’t like to do a rate increase, but we have to look long-term to make sure all of the funds are healthy and we have the reserves that we need,” Johnson said.

Council held a work session on the garbage collection service last week.

The proposed rate increase comes after city staff began reviewing the solid waste service fund in preparation for the city’s fiscal year 2023 budget. Staff found that revenue generated from the current assessment rates will not sustain the current level of service beyond the next fiscal year. Additionally, service capacities are nearing the point of where staffing and equipment can no longer support additional residential and commercial accounts.

City Manager Doug Russell said about five years ago the solid waste service began rehabilitating its equipment, which extended its life, but now the city is facing a 30% cost increase for equipment due to inflation.

“What has happened is that the prices of the equipment have increased this past year significantly and the department is very equipment heavy so those inflationary costs have a big impact,” Russell said.

In addition, the city would like to increase its garbage collection capacity for the number of homes it services. For commercial and residential containers the city has the capacity to service about 6,000 units now and would like to increase that to 8,400.

“This is trying to do a benefit for our city residents,” Russell said. “One of the advantages of being in the city is that you have a provision of services.”

TWO OPTIONS for adjusting rates were presented to Council during the meeting — one would implement a 30% rate increase in the first year and the other would spread that same percentage increase out over four years.

In the option that would implement the total increase in the first year, residential garbage rates would go from the current rate of $111 per year to $144, for a total increase of $33.

In the other option spreading out the increase, the rate would increase by $17 in the first year, $6 in the second and $7 in the third and fourth years, for a total increase of $37 per year.

Council seemed to favor the option that spreads out the cost increase over more years but will still have to formally vote on the matter. Council is expected to hold a public hearing on the rate change this summer prior to a vote.

Johnson said spreading out the cost would be preferable.

“In relative terms, it’s not a lot, but when you are trying to budget on a fixed income any little bit makes a difference,” he said.

Commercial rates would also increase. Under the full increase in the first year, commercial rates, which are split into two different levels, would go from the current rate of $338 per year to $439. For those paying $411 now, the cost would increase to $534.

Under the option of spreading out the cost over several years, the commercial rates would increase to $449 and $548.

THE CITY provides garbage collection to about 530 commercial properties and to about 5,600 residential properties.

The city in 2021 collected and transported 10,852 tons of refuse to the Flathead County landfill. This is up from the amount collected the year prior of 10,294 tons and 10,475 tons collected in 2019. The increase in tonnage last year is attributed to new residential accounts and an increase in refuse collected from routine alley clean-up.

Public Works Director Susie Turner said the two main components required for the city to provide solid waste service are personnel and equipment and now the city is facing large increases in equipment costs. The last time the city purchased a sidearm garbage truck, which serves the residential areas, the cost was $276,000. New trucks are estimated to cost $450,000.

“It’s imperative that we have reliable equipment to collect our solid waste for our customers,” she said. “We have an active fleet of trucks that are out daily and then a backup fleet that is used when the active fleet is out for repairs. Those repairs can sometimes take a day, a week or a month.”

If a higher residential rate is approved, Kalispell at $148 per year would still be less than the other two municipalities in the county — Whitefish’s rate is $200 and Columbia Falls’ is $220.

SOME PROPERTIES within the city limits pay for private garbage service through Evergreen Disposal. Property owners can choose whether to use the city service or Evergreen.

The city is currently serving about 5,600 residential units for garbage service. Those that use Evergreen along with lots that are vacant but could require service at some point total about 1,200 residential units.

In terms of long-term planning, Turner said she’d like to see the city increase its residential collection capacity.

“Our limiting factor right now to serve more areas is trucks and personnel,” Turner said. “The only thing that is holding us back going into new areas is the expectation that we put on ourselves to provide service. We want to make sure that we have the personnel and reliable equipment to service these areas.”

By adding equipment and personnel, the city estimates that it could serve about 3,000 additional residential garbage customers. That would leave about 2,300 units still using Evergreen Disposal, which the city notes are the estimated number of customers that would still likely elect to use private service.

While the commercial portion is at capacity, Turner said the priority is to add residential collections.

In addition to collecting household waste through trash containers, the city’s solid waste service also performs alley cleanup five days per week by collecting bagged yard waste, appliances, furniture, bundled brush, and mattresses. In areas with roll-out containers, the city also performs annual pickup of large items.

As part of the budgeting process, the public works department is proposing to create a business plan for the solid waste service that would look at future operations and analyze collection rates.

Solid waste collection in Kalispell began in the 1920s with a wagon and two rubbish carts serving an area of 2 miles in size, the city notes.

Features Editor Heidi Desch may be reached at 758-4421 or hdesch@dailyinterlake.com.