Missoula County adopts Lolo sewer and water impact fees to fund capacity upgrades
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Summary
Missoula County commissioners approved new impact fees for Lolo after a consultant study estimated per‑unit costs of roughly $9,629 for water and $7,888 for sewer (about $17,000 combined), a step intended to fund planned capital projects and allow new connections once infrastructure is upgraded.
Missoula County commissioners voted Thursday to adopt a resolution establishing sewer and water impact fees for the Lolo service area, a measure county staff and an HDR engineering consultant said is needed to pay for capacity and reliability upgrades.
Cora, an HDR engineering consultant, presented the October 2025 impact fee study that allocated future capital costs between growth and existing users and recommended conservative fee levels. "The final study... involves drinking water and wastewater impact fees," Cora said, explaining the analysis tied portions of projects — including a roughly $3 million well upgrade — to new development and calculated per‑unit charges.
The study estimated a water impact fee of about $9,629 per single‑family equivalent and a sewer fee of about $7,888, producing a combined conservative estimate near $17,000. County staff said phase‑2 projects funded in part by these fees would address redundancy and capacity limits that currently prevent new connections.
During follow‑up, commissioners and members of the public asked about specific allocation percentages used in the modeling. Cora and county staff said ratios such as the 44 percent assigned to a force‑main upsizing reflect engineering calculations comparing replacement of existing pipeline sections with additional capacity driven by growth.
After public comment and discussion, a commissioner moved to adopt the resolution. Commissioners voiced support for using impact fees to help facilitate new housing, with one saying, "We're all very aware of the housing crisis we're in and we need more houses." The board voted unanimously to approve the resolution; staff said adopting the resolution starts a process to update permitting systems and, after administrative steps, begin collecting fees.
The resolution directs staff to incorporate the fees into the county permit system and continue required procedural steps before collection begins. The study and adoption materials are in the county packet; the county said additional project timing and funding sources will be pursued as part of implementation.
