Kalispell council tackles stormwater fee study

A study that recommends a 10.3 percent increase in Kalispell stormwater impact fees is the focus of a City Council work session on Monday, Aug. 28.

The meeting begins at 7 p.m. at City Hall, 201 First Ave. E. No formal decisions may be made during work sessions.

The city hired HDR, a Missoula consulting firm, to review and update Kalispell’s stormwater impact fees. The fees are required by state law to be reviewed and updated every five years.

Kalispell’s current stormwater impact fee of $1,121 per newly constructed single-family home and $841 per duplex or multifamily unit is based on the city’s 2006 impact fee study. Commercial stormwater fees are calculated on impervious area, and range from $1,121 per 2,400 square feet up to $6,726 per acre.

The study’s proposed rates bump up the single-family stormwater fee to $1,236 and duplex/multifamily to $927 per unit. Commercial stormwater fees would increase to a range of $1,236 per 2,400 square feet to $7,416 per acre

The purpose of stormwater impact fees is to bring equity between existing city utility customers and new customers connect to the stormwater system.

“The city attempts to have ‘growth pay for growth’ and existing utility customers will, for the most part, be sheltered from the financial impacts of growth,” HDR said in its report.

Kalispell can adopt stormwater impact fees that are less that the calculated fees recommended in the report, but by doing so the city “will be sharing some portion of the costs associated with new or expanded development with the existing ratepayers,” the study advises.

Kalispell’s Impact Fee Advisory Committee recently wrapped up its review of the new study and forwarded a recommendation to the City Council in support of the study, though the committee vote was split 3-2.

Committee member Merna Terry of Ron Terry Construction said in a memorandum that her concerns revolved around including a buy-in component.

“The report collects a fee from new residents to buy in to the existing system, which may be reasonable if the money went back to the owners of the current system,” Terry said. “The issue of concern is that there is no mechanism for spending the money collected for the buy-in component. The only expenditures are on future additions to the system.”

Committee member Justin Ahmann of APEC Engineering also voted against the study’s findings because he believes the 10.3 percent increase is unjustified “with regards to increased (or anticipated) construction cost.” He also maintains that two planned stormwater extension projects are the developer’s future liabilities, not the ratepayers.

“It is inappropriate for city of Kalispell ratepayers to partake in development risk,” Ahmann said in his committee comments, adding that the risk and reward “should reside together” with the developer.

Features editor Lynnette Hintze may be reached at 758-4421 or lhintze@dailyinterlake.com.