Increasing costs straining Kalispell's road maintenance funds, officials say

Public Works officials warned Kalispell City Council on Monday that inflation threatened to cut into the department’s ability to keep up with roadwork.

“We are once again bumping up against limits to performing our current services,” said Public Works Director Susie Turner during a Feb. 12 review of the municipality’s Special Street Maintenance Fund.

The fund supports work by the city’s street maintenance, and traffic signs and signals divisions. Both fall under the umbrella of the Public Works Department. 

“We’ve got an inflationary issue that’s having an impact on all the components here,” said City Manager Doug Russell, pointing to an increase in prices for supplies in recent years. 

Since 2018, chip seal material has gone up 96% and asphalt 58%. The city’s contractor rates have increased as well. Milling services are up 90% and paving 64% in that same period. 

Russell told Council that the review was designed to keep the municipality’s elected leaders in the loop as officials prepare to work on a preliminary budget. 

Though the Special Street Maintenance Fund increased annually between 2014 and 2018, it has not gone up since. Without an increase, city staff informed Council that large projects may need to be completed in segments and spread over multiple budget cycles.

Turner showed a spreadsheet projecting revenue and cost into fiscal year 2034, noting that in 2027 operations will begin digging into financial reserves meant for equipment replacement. 

“So at that time you’ll see us pulling back on all things — operations and personnel,” she said.  

Taking on debt for vehicle purchases could somewhat lessen the blow, Turner explained.

“So at the end of 10 years, we’re basically $8 million short,” Mayor Mark Johnson summed up. 

Turner confirmed his assessment. 

Turner’s presentation also highlighted city roads rated “excellent,” which amount to about 40 miles or roughly 28% of the city’s paved routes. Seven of those miles have been constructed since 2019. 

For the rest of the aging network, Turner urged preventative maintenance to extend the road service life. Simultaneously, she expects the department to take on 10.47 miles of new road from upcoming developments. 

Turner also noted that an 11th snow plow route had been added due to city growth, which now requires the hiring of an operator. The department overall needs additional equipment and employees to more efficiently handle its tasks, she said. 

The budget for fiscal year 2024 relied more heavily on city crews to undertake reconstruction efforts than contractors, which saw expenditures fall to $1.4 million from $1.8 million in fiscal year 2023.

“We’ve improved our operations and have saved money by increasing our capabilities,” Turner said, adding that each road has different needs and cost of service. 

“If we do nothing, then we just pull back our work,” Russell said. “It’s not the recommended option with pavement preservation.”   

Johnson compared the budgetary pressure brought about by inflation to a developer who passes on increased costs to homebuyers. 

“Pay me now or pay me later, but guess what — you’re gonna pay me for this road,” he said.

Reporter Carl Foster can be reached at 758-4407 or cfoster@dailyinterlake.com.