The Kalispell City Council decided on a new utility rate and impact fee schedule at their Monday night meeting, with most council members present in the City Council Chambers and some using Zoom videoconference.

The utility rate and impact fee schedule, which has been under consideration since August 2019, will implement an $8.99 monthly sewer rate increase for the average household throughout 2021 and a $0.45 monthly water rate increase during the same time period. Sewer rates will increase by about $5.00 or less the following three years and less than $2.00 the final three years, ending in 2027. Water rates will go up by about $3 or less per month from 2022 through 2024, and then by about $1 from 2025 through 2027.

Impact fees, a one-time charge to install utilities for new developments, will decrease by 50% under this new utility structure.

The council previously held nine different discussions, including council meetings, work sessions and a public hearing, to consider the new utility structure. Previously, three options were presented. For the most recent meeting Monday evening, two additional options were proposed in efforts to smooth the steep initial rate hike in the first year of the new structure. The earlier proposals recommended about a $13 increase every month for the first year.

Public Works Director Susie Turner explained these fees are used for the costs of various pieces of city infrastructure, including two projects—the Westside Interceptor and the new Four Mile Drive Transmission Main—that are currently under construction with a total budget of $15 million.

Council members discussed the transparency of the rate structure decision process, alternatives to the five current proposals and the economic impacts of COVID-19 on the rate structure.

Mayor Mark Johnson called the impact fee assessment a “shot in the dark,” and pointed out the council could see a need to reevaluate the new structure before its current end date in 2027. He championed the decreased impact fees’ potential to increase development and economic opportunity within Kalispell.

Ultimately, the resolution on wastewater and water rates passed with councilors Tim Kluesner and Sid Daoud opposed. The resolution on impact fees passed with Tim Kluesner, Sid Daoud and Ryan Hunter opposed.

For a full breakdown of the rate structure, visit: https://www.kalispell.com/AgendaCenter/ViewFile/Agenda/_05042020-435

Reporter Bret Anne Serbin may be reached at (406)-758-4459 or bserbin@dailyinterlake.com.