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Kalispell council removes 5% administrative charge from impact fees to comply with state law
Summary
The council adopted Resolution 62‑76 to remove the 5% administrative component from all impact fees following recent state legislation; some councilors registered concern the change forces staff costs onto taxpayers or ratepayers.
The Kalispell City Council on Aug. 18 adopted Resolution 62‑76 to remove a 5% administrative charge from impact‑fee calculations for water, sewer, stormwater, police and fire to comply with new state law.
City Manager Doug Russell said the legislature’s recent action requires the removal of administrative fees from impact‑fee calculations and recommended the council remove the city’s previously included 5% administrative component “so no one can question if there was any portion related to administrative fees going into any of the charges.” Russell said the change will reduce the stated impact fees and that credit card charges may still be added as an extra cost to customers.
Councilors questioned how staff time will be recovered. Councilor Graham asked, “Where does that get made up?” Russell responded that credit card fees will still be collected separately if customers choose to pay by card and that administrative duties will likely be covered through general funds or ratepayer revenue depending on the fund.
Councilor Dowd, who moved the resolution, said he opposed the state’s approach but had no choice under law. Councilor Hunter said he disagreed with the policy but would support the council action because it is required by state law.
The roll call vote recorded Councilor Hunter, Councilor Nunnally, Councilor Carlson, Councilor Graham and Councilor Dowd voting aye; Councilor Fisher and Mayor Johnson voting no. The resolution passed.
Why it matters: Removing the administrative component lowers the impact fee calculation on development permits and similar charges; staff warned the move shifts administrative costs to the general fund or to ratepayers and that credit card processor fees will be passed along separately. Councilors expressed dissatisfaction that the legislature directed the change.
Implementation: City staff will update impact‑fee calculations and apply the 5% removal across applicable fee schedules.
