Kalispell reconsidering proposed utility structure

Following a groundswell of opposition over proposed increases to Kalispell water and sewer rates, the Kalispell City Council is now reconsidering proposed changes to the city’s utility fee structure.

Council members revisited proposed changes to the city’s utility rates and impact fees during a work session Monday evening. That discussion followed a public hearing on March 2 on planned increases to city water and sewer rates and decreases to impact fees.

The city is proposing raising sewer rates by about $13 a month throughout 2021 and by about $3 per month every subsequent year until 2025. The plan would also increase water rates by about $3 per month every year until 2025. However, impact fees would decrease across the board.

At the public hearing, city residents raised concerns about the increased utility rates and the lowered impact fees.

During the work session, some council members said this feedback had caused them to reconsider adopting the new rate fee structure. Council member Tim Kluesner suggested the council “take a step back because there are so many comments in opposition.”

Council member Ryan Hunter agreed with Kluesner and suggested the city could potentially put off some capital projects to defray the high initial rate hikes or offer exemptions for low-income residents.

However, Public Works Director Susie Turner identified a few issues with these alternatives. She explained part of the reason for the exceptionally high increases in the rate schedule comes from projects that are already completed or currently underway, including the Westside Interceptor Project and the Four Mile Drive Transmission Project. She explained these projects cannot be pushed back since they have already been started or completed.

“These are the priority projects,” she explained.

She also warned the city could fail to meet its federal regulatory requirements if the new rate fee structure is not adopted. The city has until the end of the current fiscal year to meet these requirements.

During the public comment period of the meeting, one resident worried the reduced impact fees would lower his home value.

The council will vote on the new fee structure on March 16.

The council also considered accepting a donation of a train to include on the downtown trail at Fourth Avenue East. Mission Mountain Railroad has pledged to donate, decommission and place a locally used locomotive on the Kalispell Parkline Trail.

The city originally had planned to include a train on the trail, but Planning Director Jarod Nygren said the option to receive the donated train came up earlier than anticipated. The city has until March 31 to accept the donation, when Mission Mountain Railroad will no longer be operating on the track.

“It can still be a historical component to the trail, [and] pay homage to our history and the Great Northern Railroad,” Nygren said.

The city also hopes to repaint the engine in the original Great Northern Railroad colors and equip it to allow public access onto the train, but Nygren explained there is no grant funding for these components of the plan and they would require community donations.

The council will vote to accept the donation at its March 16 meeting.

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