Kalispell City Council to weigh holding public hearing on water rates

Kalispell City Council is expected to vote Monday on whether to hold a public hearing as part of a proposal to increase fees, schedules and rates for the water utility.

The meeting will take place at 7 p.m. at City Hall, 201 First Ave. E. The meeting can also be attended virtually via Zoom.

If approved, the public hearing on water rate hikes would be scheduled for July 17.

Council previously adopted a rate increase schedule in 2019, which called for a 10% increase in the upcoming fiscal year 2024, followed by 3% increases in fiscal years 2025, 2026 and 2027.

At last week’s work session, officials with the Public Works Department briefed councilors on how higher than expected costs for scheduled capital improvement projects have made rate increases necessary to keep the water budget sustainable.

To bridge the funding gap, the department has pitched increases of 15% in fiscal years 2024 and 2025, followed by an additional 10% increase in 2026 and 3% in 2027, according to a presentation by Public Works head Susie Turner.

Fixed charges per account would increase from the present $10.99 to $16.47 in fiscal year 2027 under the proposal.

Consumption charges per 1,000 gallons would increase from the current $3.27 to $4.89 over the same period.

An example water bill for residential and commercial ratepayers using 6,000 gallons per month would rise from $32.06 today to $47.98 by 2026.

The presentation also compares Kalispell’s rates to similar Montana communities, including Whitefish and the neighboring unincorporated town of Evergreen.

Kalispell’s fiscal year 2023 base rate sits at $26.35, compared with Evergreen’s $14.77 and Whitefish’s $49.46.

As part of a potential rate increase, the city would put out a legal notice by mail, online and in the newspaper, as well as setting the public hearing next month.

Council would then vote on the rates on Aug. 7. Any changes would go into effect Aug. 17.

IN A related but separate agenda item, Council will also vote on a resolution considering the approval of bonds totaling $19.8 million to fund a water storage tank, two water well facilities, and a control valve facility.

Finally, Council will consider the final plat approval for Phase 1 of Stillwater Bend, a subdivision containing 15 commercial lots on 25 acres near the intersection of U.S. 93 and Rose Crossing.

Reporter Adrian Knowler can be reached at 758-4407 or aknowler@dailyinterlake.com.