Utility Rates/Impact Fees Public Comment from Marcia ManningAimee Brunckhorst
From: nmcrew@aol.com
Sent: Thursday, February 27, 2020 1:32 PM
To: Kalispell City Council
Subject: [EXTERNAL] sewer rate increase
Dear City Council,
Although I understand your desire to increase sewer rates, I disagree with your methodology and am adamantly opposed
to the proposed new rates
The proposed increases shift the burden to your current users and have a major negative impact on low income residents,
retired residents, and those on a fixed income. On the other hand it gives an advantage to real estate developers and new
housing units. This new development and construction is one of the main reasons that the city needs to expand capacity
and develop new lines
The residential rates will increase by 50% in the first year, while you are reducing the impact fee by 50% The residential
rate will increase by 6.5% every year for the next three years and then by 3% for the following two years. meanwhile the
impact fees only increase by 3% each year The overall result is that the residential fees will increase 105% over the
increase period and impact fees will be reduced by 44% over the rate change period.
This new rate structure shifts a disproportionate share to the current residents, especially low income, retired and those
living on a fixed income. The dollar value of each households monthly bill may not seem significant but it is an on going
and cumulative increase.
The Impact fees are a one time fee. The new development is the reason for needing to increase capacity and facilities. It
is doubtful that not decreasing the fees will have and adverse impact on new development even if it does decrease the
developers profit margin potentially. The developers will not decrease the cost of a new property but rather be able to
improve their bottom line.
The new development should bear the burden of the cost of new facilities and not the current residential
customers.
My analysis is listed below.
Sincerely
Marcia L Manning
131 Trevino Drive
Kalispell, Mt 59901
Residential fees, assuming an average 2,000 gallons per month:
Present $18.00
FY 2021
26.89
49.4%
FY 2022
28.63
6.5%
FY 2023
30.48
6.5%
FY 2024
32.47
6.5%
FY 2025
34.58
6.5%
FY 2026
35.63
3.0%
FY 2027
36.69
3.0%
1
Total increase is 105 %
Sewer Impact fees
present
5757
FY 2022
2879
-50.0%
FY 2023
2965
3.0 %
FY 2024
3054
3.0 %
FY 2025
3146
3.0 %
FY 2026
3240
3.0%
Total -44%
2