Kalispell City Council to review priorities for upcoming legislative session

Kalispell City Council will begin determining Monday the municipality’s legislative priorities ahead of the upcoming session in Helena.  

Council meets on Monday, Nov. 25 at 7 p.m. in City Hall, 201 First Ave. E. 

In years past, Council has developed priorities to push for in the Legislature ahead of the session. With the 2025 legislative session set to begin in January, Council is expected to review and revise a draft of priorities based off the previous session in 2023.  

Those priorities included a local option sales tax, expanded tax increment financing, funding for affordable housing and legislation promoting infrastructure development. 

Council has supported a voter approved sales tax aimed at putting some of the costs to maintain infrastructure and services onto tourists, according to city documents.  

Whitefish has had a 3% resort tax collected from lodging, retail, bars and restaurants since 1996. Columbia Falls adopted a 3% resort tax in 2021. Kalispell, though, remains ineligible for the resort tax owing to its population size. 

Legislation promoting the development of affordable housing was also considered a priority for Council in 2023. The median price for a single-family residence this year was around $575,000, according to the Northwest Montana Association of Realtors. In 2020 it was $358,000.  

Statewide, nearly 69% of Montanans who earn zero to 30% of the average median income spend more than 50% of their income on housing costs and utilities, according to the Montana League of Towns and Cities. Those whose income lies between 31% and 50% of the average median income put over 30% of their income toward housing related costs. The average household income in Montana in 2022 was $67,915, according to the Montana Department of Commerce.  

The city also favored legislation to manage public land and land use regulations associated with development. Assistance in funding infrastructure development was also supported by Council. 

Council stated its support for legislation to provide municipalities with expanded opportunities to use tax increment financing districts as an economic development strategy. Tax increment financing funds are primarily designed to spur redevelopment in neglected parts of a community.  

In October, City Hall approved workforce housing as eligible for tax increment financing funds. Workforce housing was defined as households making between 60% and 140% of area median income. According to data from the government-sponsored enterprise Fannie Mae, Kalispell’s area median income in 2024 was $88,400.  

Council expressed support for legislation that would dampen the financial blow of meeting regulatory standards on water production, wastewater treatment, solid waste and storm water management.  

Legislation enabling the creation of additional special districts was also emphasized by Council. The city “feels the current requirements place unnecessary financial and procedural burdens on special district creation.”  

Special districts are created by municipal governments to provide specific services within a geographic area.  

Reporter Jack Underhill can be reached at 758-4407 and junderhill@dailyinterlake.com.