Lehi plans significant water budget increases amid new development challenges

The Kalispell City Council held a budget work session on May 6, 2025, focusing on critical updates regarding water rates, facility planning, and capital projects. The meeting highlighted significant anticipated increases in operational costs, particularly a 41% rise in electricity expenses, which will impact the city's budget.

City officials discussed the need for a new water operator to manage the growing number of water facilities due to ongoing development in the area. This addition is seen as essential to maintain service levels amid increasing demand. The council also addressed the financial implications of recent equipment failures, including the need to replace motors at various well sites, which has incurred costs of approximately $250,000.

A key point of discussion was the ongoing meter replacement program, which is progressing well, with about 1,200 meters replaced annually. This initiative has already shown benefits, such as the quick identification of leaks, which can save significant amounts of water and reduce costs.

The council reviewed several capital projects, including the replacement of aging water mains and improvements to the sewer system. These projects are crucial for maintaining infrastructure as the city continues to grow. The council emphasized the importance of planning for future developments and ensuring that impact fees are adequate to cover the costs associated with new construction.

In conclusion, the budget work session underscored the city's proactive approach to managing its water resources and infrastructure needs, while also preparing for the financial challenges posed by rising operational costs and increased demand for services. The council plans to continue refining the budget and addressing these issues in upcoming meetings.