The Kalispell City Council will meet tonight to continue its discussions of an update to the city’s utility fees.

The council started working with the Kalispell Public Works Department and HDR Engineering last summer to review the city’s utility rates and propose an update.

According to the work session agenda, the rate study incorporates a revenue requirement analysis, cost-of-service analysis and development of corresponding rate structures to generate funds. These funds are used to “maintain the same quality of service, fund capital projects [such as] rehab, replacement and new growth projects, fund an equipment replacement plan and maintain target reserve balances.”

The council most recently met on Dec. 3 to review the city’s financial policy, utility revenue requirements and an impact fee update.

At tonight’s work session, the focus will be on reviewing the revenue requirement analysis for the water and sewer funds, providing an in-depth review of the cost-of-service analysis and rate schedule and discussing alternate impact fees and their potential effect on the proposed rate adjustments.

The analysis looks at “the equitable allocation of the revenue requirement between various customer classes of service,” so that residential and commercial utility users of different sizes are charged according to their usage.

The work session will also provide an opportunity for council members to provide feedback on the city’s utility metering system, proposed rate adjustments and utilization of impact fee revenues.

The next step will be a town hall meeting on Feb. 12 and a public hearing on Feb. 18 on the proposed rates. The council plans to adopt the new rates in March.

The full work session agenda is available here: https://www.kalispell.com/AgendaCenter/ViewFile/Agenda/_01132020-378

The work session will begin at 7 p.m. in the City Council chambers, 201 First Ave. E.

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