Council OKs new, decreased impact fees
JULIE ENGLER | Hagadone News Network | UPDATED 2 days, 22 hours AGO
Julie Engler covers Whitefish City Hall and writes community features for the Whitefish Pilot. She earned master's degrees in fine arts and education from the University of Montana. She can be reached at [email protected] or 406-882-3505. | July 29, 2026 1:00 AM
The Whitefish City Council approved amendments to the city's impact fee ordinance and significantly lowered rates last week.
Finance Director Lanie Gospodarek said the consulting firm Tischler Bise reviewed the city's water and wastewater fees last fall and determined a 23% decrease in water consumption and a 20% reduction in wastewater use, so it recommended a reduction in water impact fees.
Both fees for a project with a ¾ inch meter, the standard size for a residential build, is $4,419, a decrease of about $3,500 from the previous fee, $7,944.
The city adopted seven impact fees in 2023 for public facilities, including parks, paved trails, city hall, police, fire, water and wastewater.
Last year, the Montana Legislature amended state laws for impact fees. It narrowed the definition of "public facilities" to include only water, wastewater, transportation, stormwater, law enforcement, emergency medical rescue, emergency management, and fire protection facilities.
To comply with the new law, Whitefish amended its rates and policies at that time. Impact fees were eliminated for parks, paved trails and city hall, and the 5% administrative fee was also eliminated.
Mike Hein, Whitefish planning commissioner and member of the Whitefish Impact Fee Committee, addressed a question from Councilor Ben Davis regarding the amount paid by impact fees for a project.
He said some of the fees are financed for 10 years, and some can be collected for a longer amount of time, "because the financing window can be longer or the life of the improvements, we've overbuilt."
Hein's was the only public comment, and both the ordinance and the resolution passed unanimously.
THE COUNCIL approved requests from Kim Morisaki, executive director of the Northwest Montana Community Land Trust. It amended a ground lease agreement and released the deed restriction on a home on Trailview Way. It also provided $50,000 for the Trust to purchase the land under the house, to keep the home affordable.
The revised method for determining equity at the time of a home resale is 100% of the original purchase price plus 25% of the increase in the appraised value of the home during the time of ownership. The previous ground lease allowed homeowners to earn 3% of the base price for each year they lived in the home.
"I think that feels more sustainable, long term and also makes it similar across the board. Whether you're buying a house in Kalispell, Columbia Falls or Whitefish, everybody's doing the same thing," Morisaki said of the new method. "It manages to allow people to put some equity in their pocket when they sell the house, but it still keeps the house completely affordable going forward."
With the Council's approval, Moraski said the city has helped purchase 14 homes in Trailview and has entered into eight agreements with the Trust.
Whitefish City Manager Dana Meeker said the money will come from the city's affordable housing fund, leaving roughly $43,000 in that account.
Juneteenth was recognized by the Council as "a pivotal moment in American history and essential part of our nation’s heritage" with a resolution which is a standing commemoration for June 19, said Mayor John Muhlfeld.
"Juneteenth has been celebrated annually on June 19 in various parts of the United States since 1865, becoming a symbolic date to honor African American freedom and reflect on the long struggle for civil rights," Muhlfeld read. "The strength of character demonstrated by former slaves and the descendants of former slaves remains an example for all people of the United States, regardless of background, religion or race."
The Council also approved a five-lot subdivision on Murray Avenue and unanimously approved a minor lakeshore variance on Skyles Place, with a reminder that no sod can be placed in the lakeshore protection zone.
Reporter Julie Engler can be reached at 406-862-3505 or [email protected]. If you value local journalism, pledge your support at whitefishpilot.com/support.
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