Kalispell officials made a pitch to state legislators Monday for a local-option sales tax to help the city.

At a work session Monday, council members sat across from nine local state legislators and asked about the possibility of a local-option sales tax. Mayor Mark Johnson cited infrastructure problems coupled with a high number of visitors.

“Our tax base is greater than 20,000 people,” Johnson said. “We have a lot of Band-Aid fixes to make sure things keep working.”

City Manager Doug Russell gave a presentation on different tax options and estimated potential revenues. Currently, the city has $10 million in general fund revenues with $5.5 million coming from property taxes.

Russell’s presentation included the projected numbers from a 2 percent sales tax. Between locals and visitors, the tax could generate about $6 million, surpassing the $5.5 million made from property taxes, allowing property taxes to drop or be cut altogether.

Russell and the City Council asked that the state legislators work toward legislation that would allow cities the option to enact a local sales tax or allow larger cities to enact a resort tax, currently only available to cities with fewer than 5,500 residents.

“We know there are challenges at the state level,” Russell said. “The ultimate question is what is in the best interest of the community. I think these options are worth of discussion as a new source of revenue.”

Rep. Frank Garner, R-Kalispell, said the sales tax would frustrate Flathead Valley residents outside of Kalispell.

“In this county, the majority of the residents live outside the city,” Garner said. “Everyone agrees we should do something different, we just don’t agree on what that is. I think you’re going to have a hard time getting something at the state level if you don’t have a consensus at the local level.”

Several state legislators echoed Garner, saying their rural constituents likely would not support a city sales tax.

Council member Phil Guiffrida returned to the issue of infrastructure and the future installation of a $16 million sewer line upgrade to maintain the growth of the business district in north Kalispell. The city is running out of ways to pay for the new sewer line, he said.

“The sales tax is a long shot, I’ve known that from the beginning,” Guiffrida said. “We’re being as creative as we can here.”

Garner held his position on gaining more public support for the local sales tax from Flathead County residents as well as other cities that would support a need for the tax.

“That’s the first thing I would do is build support,” Garner said.

Sen. Bruce Tutvedt, R-Kalispell, echoed Garner’s position on the potential legislative piece, with a harder approach.

“We’re not going to vote for it until you’ve sold it here,” Tutvedt said. “I don’t know if you even have the residents of Kalispell.”

Council member Tim Kluesner said the sales tax might not be the best option, but the city is simply hoping for the ability to vote on what the residents want.

“The principal of self-determination is the most appealing argument you have,” said Rep. Al Olszewski, R-Kalispell. “If there’s an argument I’m going to vote for, it’s that I need the right to local self-determination for people to vote for or against it.”

Johnson said the next step will be speaking with Flathead County commissioners about the issue and finding out what county residents think about the sales tax.

“We need to see what their needs are for you guys to know how much we need at the local level,” Johnson said.

Garner said he would personally be interested in joining the city in reaching out to county officials.

“Maybe there’s another good idea out there,” Garner said. “But it’s time to look at something different.”

In a separate discussion at Monday’s three-hour meeting. Kalispell Police Administrative Capt. Wade Rademacher talked about the future challenges of funding the police department.

Rademacher raised the possibility of adding a police substation.

Considering the projected growth of Kalispell, the city police department would need to increase from 44 employees to 68 by 2035 to keep the ratio of 2 employees per 1,000 residents, according to Rademacher.

Updating the current downtown station and adding a new substation would be more affordable than tearing down the current station and constructing a new facility, he said.

Rademacher asked the city for a new space needs study to examine how impact fees could be adjusted to help the department grow with the community. Rademacher said the study could cost between $10,000 and $30,000, depending on the how complex the city wants that study to be. The last study was completed in 1999, and the current impact fees have been stagnant since 2006.

To pay for a new facility, Rademacher recommended increasing city impact fees by $236 for residential single-family unit, $179 for multi-family units and $163 for commercial units per 1,000 square feet.

These numbers reflect the amount of calls to the Kalispell Police Department, which receives 55 percent of its calls from residential areas.

“Continuing to use the current impact fees through 2035 would generate enough money to construct 895 square feet today,” Rademacher said.

The council expressed concern about raising impact fees that high. Council member Chad Graham said building a house can cost as much as $14,000 in permits before putting a shovel in the dirt.

Council members said the issue could go to an up or down vote to increase the impact fees by the recommended amount or some capital improvement plans could be considered to find a better funding method.

Another item on Monday’s agenda was a discussion on putting parcels of Old School Station land on the market.

“It’s just a general update but one that we needed to have before we sell these parcels,” Russell said.

The city is looking for options to pay for special improvement district costs at Old School Station when infrastructure was added to make the area a technology, manufacturing and industrial district. By not leaving the cost to potential buyers, the property becomes more attractive for investment, Russell said.

The first option suggests the city pay the special improvement district cost with funds from closing the sale while the developer agrees to complete construction within two years. The second option suggests the buyer pays the special improvement district cost with reimbursed property taxes generated in the time it takes to cover the costs.

“It’s like if you buy a house and someone gives you a $5,000 credit for the carpet,” Kluesner said.

Russell said the city is hoping to put the two largest parcels up for sale to generate some exposure on the parcels for sale. The council is expected to vote on the land sales at a later meeting.

The last topic Monday involved organizational development courses provided by Montana State University’s Local Government Center.

The point of the six-month program is to improve communication and organizational skills so city employees can form better partnerships with community groups.

The base cost is $210 per person; all 180 city employees would enroll in the training. Russell said the cost of training would not require an amendment to the city budget.

The next Kalispell City Council meeting is 7 p.m. on Monday, Nov. 2 at City Hall, 201 First Ave. E.

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