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Kalispell to hold public hearing on impact fee adjustments

JACK UNDERHILL | Hagadone News Network | UPDATED 10 months, 4 weeks AGO
by JACK UNDERHILL
KALISPELL GOVERNMENT, HOUSING AND TRANSPORTATION REPORTER Jack Underhill covers Kalispell city government, housing and transportation for the Daily Inter Lake. His reporting focuses on how local policy decisions affect residents and the rapidly growing Flathead Valley. Underhill has reported on housing challenges, infrastructure issues and regional service providers across Montana. His work also includes accountability reporting on complex community issues and public institutions. Originally from Massachusetts, Underhill graduated from the University of Massachusetts, Amherst with a degree in Journalism before joining the Inter Lake. In his free time, Underhill enjoys mountain biking around the valley, skiing up on Big Mountain or exploring Glacier National Park. IMPACT: Jack’s work helps residents understand how growth, housing and infrastructure decisions affect the future of their community. | June 16, 2025 12:00 AM

Kalispell City Council is inviting the public to weigh in on proposed adjustments to police and fire impact fees on Monday night.  

Council meets June 16 at 7 p.m. in City Hall, 201 First Ave. E.  

The maximum allowed charge for police and fire impact fees decreased for both residential and apartment units but increased for commercial development following a review by the city’s Impact Fee Committee. City Hall is legally able to ask up to the maximum allowable cost but has typically sought much less. The fees were last adjusted in 2015 and were adjusted again to forecast for the next 20 years. 

The maximum allowed fees saw an adjustment because of growth and upcoming capital improvements to the Kalispell Fire Department, which include an eventual fourth fire station — complete with an engine — and a wildland interface apparatus. 

Impact fees are one-time charges on new developments to compensate for the burden added to public infrastructure and services. The fees shift some of the cost onto new customers, saving preexisting users from bearing the brunt of it. 

When councilors mulled over the adjustments during a work session last month, they appeared divided on whether to increase fees so that public safety departments could meet the level of service required or keep them low with the goal of attracting more developers. 

COUNCIL WILL also mull over creating three special improvement districts to fund water and sewer improvements at two resident-owned communities.  

The Morning Star and Green Acres communities have applied for grants to fund the improvements, but costs are expected to exceed the allotted grant amounts, according to a memo from Development Services Director Jarod Nygren.   

Special improvement districts are areas of land where property owners pay an additional tax to fund specific improvements within the district’s boundaries. 

The creation of three special improvement districts will lay the foundation for the city to receive a loan from the State Revolving Fund to help pay for the upgrades, according to the memo. 

Two levies will fund up to $260,000 in sewer improvements and $780,000 in water improvements in the Morning Star community. A third levy would fund up to $385,000 in sewer upgrades in the Green Acres community.  



COUNCIL IS also expected to vote on increasing councilor, appointed officer and nonunion employee salaries with a 4% base adjustment.  

The proposed adjustment was determined by comparing data points from cities across Montana, both larger and smaller than Kalispell, according to a memo from City Manager Doug Russell.  

As a regular part of the budget approval process, the city is looking to tap into fiscal year 2026 funds for salaries, maintenance, operation and projects until the final budget is adopted, according to a memo from Finance Director Aimee Cooke.  

Council is expected to schedule a public hearing on the move for July 7.  

Finally, the Improvement District and Tourism Business Improvement District are expected to provide a presentation on their budgets for the upcoming fiscal year.  

Reporter Jack Underhill may be reached at 758-4407 and [email protected].

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