I5. Reso 6266, Police & Fire Impact FeesCITY OF
KALISPELL
REPORT TO: Mayor Johnson and Kalispell City Council
FROM: Doug Russell, City Manager
SUBJECT: Setting Police and Fire Impact Fees
MEETING DATE: Julv 7. 2025
City of Kalispell
201 1"Ave E. P.O. Box 1997
Kalispell, Montana 59903-1997
(406) 758-7000 Fax (406)7757
BACKGROUND: The Impact Fee Committee has completed its review of the Police and Fire
Impact Fees and forwarded the approved reports to the City Council (attached to this memo). On
May 12, Council held a work session where the allowable fees were reviewed. On June 2, a
public hearing was set and on June 16 Council heard from the public on the intent to review the
fees. Below are the updated allowable fees.
Police Impact Fees
2015
Calculated
Allowable
2015
(Council
Adopted)
2025
Calculated
Allowable
Residential per unit
$277
$41
$183
Apartment per unit
$210
$31
$146
Commercial per 1,000 sq. ft. of build space
$179
$16
$529
Fire Im act Fees
2015
Calculated
Allowable
2015
(Council
Adopted)
2025
Calculated
Allowable
Residential per unit
$277
$41
$745
Apartment per unit
$210
$31
$596
Commercial per 1,000 sq. ft. of build space
$179
$16
$1,112
Additionally, SB 133 provides for an annual increase equal to the annual producer price index by
commodity, all commodities using the 1982-84 base of 100.
Attached are the impact fee reports that identify the relevant legal requirements for developing
impacts fees, including growth projections and the capital improvements anticipated to meet
service demands. Additionally, the reports outline the calculations for the fees that are forwarded
to Council for Resolution consideration.
RECOMMENDATION: It is recommended that Council approve Resolution 6266, revising
police and fire impact fees per the recommendations made in the report.
ATTACHMENTS:
Resolution 6266
Police Impact Fee Report
Fire Impact Fee Report
RESOLUTION NO. 6266
A RESOLUTION AMENDING RESOLUTION NOS. 5744 AND 5745 TO ADJUST THE
POLICE AND FIRE IMPACT FEE SCHEDULES PURSUANT TO THE
RECOMMENDATIONS OF THE IMPACT FEE COMMITTEE AND SENATE BILL 133.
WHEREAS, the City Council passed Ordinance 1587 on October 16, 2006, which authorized the
imposition of impact fees for police and fire services; and
WHEREAS, subsequent to the passage of Ordinance 1587 the city established impact fees for
police and fire services; and
WHEREAS, the City Council passed Resolutions 5441 and 5442 on August 2, 2010, and
Resolutions 5744 and 5745 on December 7, 2015, adjusting the police and fire
services impact fees; and
WHEREAS, pursuant to MCA 7-6-1602 the Impact Fee Advisory Committee analyzed the police
and fire services impact fees, collaborated with city staff in developing the City of
Kalispell Final Reports of Impact Fees for the Police Department and the Fire
Department, dated March 2025, and is now recommending accordingly that the
currently established impact fees be adjusted to more accurately reflect the current
costs of local construction as set forth in the report, as well as implementing those
changes provided by SB 133; and
WHEREAS, Exhibit A attached hereto sets forth the fee schedules that have been recommended
by the Kalispell Impact Fee Committee for both police and fire services impact fees.
The City Council finds that the City of Kalispell Final Reports of Impact Fees for the
Police Department and the Fire Department, dated March 2025, referenced herein, as
approved and submitted by the Kalispell Impact Fee Committee, along with the plan
and schedule reasonably reflects the capital needs for police and fire services in the
City that may be reasonably charged through a police and fire services impact fee.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA:
SECTIONI. That the Police and Fire Impact Fees beset pursuant to the Schedule attached
hereto as Exhibit "A" and incorporated fully herein by this reference and that
the City Clerk be directed to make the City of Kalispell Final Reports of
Impact Fees for the Police Department and the Fire Department, dated March
2025, available to the public upon request.
SECTION 2. That this resolution adjusting the impact fee schedules shall become effective
immediately.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL THIS 7TH DAY OF JULY, 2025.
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
Mark Johnson
Mayor
Exhibit "A"
Police and Fire Impact Fees
Police Impact
Fees *
2015
Calculated
Allowable
2015
(Council
Adopted)
2025
Calculated
Allowable
Residential per unit
$277
$41
$183
Apartment per unit
$210
$31
$146
Commercial per 1,000 sq. ft. of build space
$179
$16
$529
Fire Im act Fees
2015
Calculated
Allowable
2015
(Council
Adopted)
2025
Calculated
Allowable
Residential per unit
$277
$41
$745
Apartment per unit
$210
$31
$596
Commercial per 1,000 sq. ft. of build space
$179
$16
$1,112
* Fees will increase annually in accordance with the producer price index by commodity, all commodities
using the 1982-84 base of 100.
Report for
City of Kalispell
Final Report
Impact Fees for
Police Service
2025
I Introduction and Overview of the Study
1.1 Introduction................................................................................................................ 1-1
1.2 Overview of the Study.............................................................................................. 1-1
1.3 Impact Fee Advisory Committee (IFAC).............................................................. 1-1
1.4 Disclaimer....................................................................................................................1-2
2 Legal Considerations in Establishing Impact Fee for the City
2.1 Introduction........................................................................................... 2-1
2.2 Requirements under Montana Law......................................................................... 2-1
3 Determination of the City Police Impact Fees
3.1 Introduction........................................................................................... 3-1
3.2 Present Police Impact Fees...................................................................................... 3-1
3.3 Update of the City's Police Impact Fees ................................................................ 3-1
3.4 Key Assumptions...................................................................................................... 3-4
3.5 Implementation and Application of the Impact Fees ............................................ 3-4
3.6 Recommendations........................................................................................................3-4
Tables
3-1 Present Police Impact Fees...................................................................................... 3-1
3-2 Allowable Police Impact Fees.......................................................................... 3-3
Appendix A - Montana Code - Impact Fees
Appendix B - Police Impact Fee Exhibits
i
Table of Contents
City of Kalispell, Montana
1.1 Introduction
HDR Engineering Inc. (d.b.a. HDR/EES) was retained by the City of Kalispell; Montana (City) to
develop in 2006 and update in 2010 the City's cost based impact fees for the City's police services
that comply with the Montana Code. The impact fees were once again updated using the cost base
method in 2015. This update is based on the methodology used in the previously adopted reports and
on current capital improvement plans, planning data, and cost allocations. This report provides a
summary of the update to the cost based impact fees for the City's police services.
Impact fees are a one-time assessment against new development to pay for the cost of infrastructure
required to provide service. Impact fees provide the means of balancing the cost requirements for
new infrastructure (buildings and equipment) between existing customers and new customers. The
portion of capital improvements that will provide service to new customers is included in the impact
fees. In contrast to this, the City may have future capital projects and equipment requirements that
are related to meeting existing deficiencies in police services. These costs must be funded by other
sources and are not included within the impact fee. By establishing cost -based impact fees, the City
intends to assure that "growth pays for growth" and existing residents and businesses will be
sheltered from the financial impacts of growth.
1.2 Overview of the Study
This report is divided into three distinct components. The next section of the report, Section
2, provides a summary of the legal requirements for the enactment of impact fees under Montana
law. The cost based impact fee calculation for the City's police services is provided in
Section 3.
1.3 Impact Fee Advisory Committee (IFAC)
Under Montana law (7-6-1604), the calculated impact fees must be reviewed by an impact fee
advisory committee. The City has convened an impact fee advisory committee for this specific
purpose. The role of the advisory committee is to serve in an advisory capacity to the City
Council. The advisory committee reviews and monitors the process of calculating, assessing and
spending impact fees. Ultimately, the City Council is the governing body responsible for
determination of and adoption of the final impact fees.
The planning, capital improvements projects, methods and calculations were reviewed and
discussed with the IFAC at various meetings since February 2022. At the April 2025 meeting the
proposed methodology and impact fee as outline in this updated Report was motioned and approved
by the committee members.
Introduction and Overview of the Study 1-1
City of Kalispell, Montana
1.4 Disclaimer
Determination of impact fees originally presented, used "generally accepted" planning, accounting
and ratemaking principles. This should not be construed as a legal opinion with respect to Montana
law.
Introduction and Overview of the Study 1-2
City of Kalispell, Montana
2.1 Introduction
An important consideration in establishing impact fees is any legal requirements at the state or local
level. The legal requirements often establish the methodology around which the impact fees
must be calculated or how the funds must be used. Given that, it is important for the City to
understand these legal requirements. This section of the report provides an overview of the legal
requirements for establishing impact fees under Montana law.
2.2 Requirements under Montana Law
In establishing impact fees, an important requirement is that they be developed and implemented in
conformance with local and state laws. In particular, many states have established specific laws
regarding impact fees. The main objective of most state laws is to assure that these charges are
established in such a manner that they are fair, equitable and cost -based. In other cases, state
legislation may have been needed to provide the legislative powers to the utility to establish the
charges.
The Montana law enabling legislation for impact fees was enacted in 2005 via Senate Bill 185. This
was comprehensive legislation allowing public entities in the State of Montana to enact impact fees
for various services. The legal basis for the enactment of impact fees is found in Title 7, Chapter 6,
and Part 1601 to 1604 of the Montana Code. A copy of the full code is provided within Appendix
A.
Legal Considerations in Establishing Impact Fees for the City 2.1
City of Kalispell, Montana
3.1 Introduction
This section of the report presents the update of the police impact fees. The calculation of the
police impact fees presented in this section are based on the City's planning criteria and future capital
improvements as identified in the City's Capital Improvement Plan. The methodology was
established in the previously adopted reports and updated with current capital improvements and
planning data. To the extent that the cost and timing of future capital improvements change, then the
impact fee presented in this section should be updated to reflect the cost of these adjustments.
3.2 Present Police Impact Fees
The City currently assesses impact fees for police service. These are assessed for single-family
residential units, multi -family residential units and commercial property. A summary of the current
fees adopted in 2015 and the updated 2025 cost based fees are provided in Table 3-1.
2015 Cost 2025 Cost
Base Based
Calculated 2015 (Council Calculated
Type of Use Allowable Adopted) Allowable
Residential per unit $277 S41 $192
Apartment per unit 210 31 154
Commercial per 1,000 sq ft of build space 179 16 555
3.3 Update of the City's Police Impact Fees
The process of calculating impact fees is based upon a four -step process. In summary form,
these steps were as follows and are discussed in more detail below.
■ Determination of planning standards
I Determination of Police Impact Fees
�■ Determination of any impact fee credits
�■ Determination of Police impact fees by development type
Determination of the City's Police Impact Fees 3-1
City of Kalispell, Montana
3.3.1 Planning Standards
The planning horizon used for this report is from 2025 to 2045. The population projections from 2025
to 2045, uses a population growth rate of 2.5% and were derived from a memorandum dated February 4,
2025 from Jarod Nygren, Development Services Director. A copy of the memorandum and population
projections are provided in Appendix B as Exhibit B-1 and B-2. The only asset for the police department
that is eligible for inclusion in the impact fee is building space. Equipment is not eligible since the
asset life is less than ten (10) years. The building space needed for year 2045 is based on an analysis
of Kalispell Police Department's current space and three other Montana police departments that have
either built a new facility or conducted recent space needs studies. The space needs summary is provided
in Exhibit B-1.
3.3.2 Building Costs
The next step of the analysis is to review each major functional component of providing police service
and determine the impact fee for that component. The components of the City's police service that
were reviewed for purposes of calculating an impact fee were as follows:
■ New building space
IN Administration costs
A brief discussion of the impact fee calculated for each of the components is provided below.
BumpiNG SPACE — To determine the amount of new building space that is required to serve growth, and
estimate the average square foot per employee, a survey was conducted using three other Montana police
departments; Billings PD, Bozeman PD, and Whitefish PD. After reviewing the square footage
projections of the three identified police departments the IFAC agreed to a ratio of 241 square feet per
employee, which is the average of square foot per employee ratio of the comparison cities. The building
space requirement per person (241 sq ft) was then multiplied by the estimated number of new police
personal required to service the population growth from 2025 to 2045. The calculation results in a
building space requirement for new development of 10,122 sq ft. The detailed space needs summary is
provided in Exhibit B-1.
The construction cost was determined from the best available information including costs from relevant
construction estimates in Bozeman and Nationwide Construction Pricing. The Construction cost
summary is provided in Exhibit B-1. IFAC approved $415 per square foot for construction costs for this
report. The projected police building cost to support the new building space totals $4,200,630. The space
requirement costs are summarized in Exhibit B-3. The total cost was then allocated to residential and
commercial development based on the proportional number of calls resulting in $1,470,221 for residential
development and $2,730,409 for commercial development. This is a shift from residential to commercial
when compared to the 2015 report. Based on recent call records, the allocation to residential development
used in this report is 35% residential and 65% to commercial. In the 2015 report, 55% of the calls were
allocated to residential development and 45% to commercial. Details of the call by development type are
provided in Exhibit B-1.
Determination of the City's Police Impact Fees 3-2
City of Kalispell, Montana
ApmimsTRATrvE CHARGE — Under Montana statute, an impact fee may include a fee for the
administration of the impact not to exceed 5% of the impact fee collected. Therefore, the City has
included a police impact fee administrative charge of 5% of the impact fee collected.
3.3.3 Credits
The final step in calculating the police impact fee was to determine if a credit for payment from other
revenue sources was required. No debt is outstanding for the police in a credit of zero.
3.3.4 Net Allowable Police Impact Fees by Development Type
Based on the sum of the component costs calculated above, the net allowable police impact fee can be
determined. "Net" refers to the "gross" impact fee, net of any credits. "Allowable" refers to the concept
that the calculated impact fee shown in the following tables are the City's cost- based impact fee. The
City, as a matter of policy, may charge any amount up to the allowable impact fee, but not over that
amount. Charging an amount greater than the allowable impact fee would not meet the nexus test of a
cost based impact fee.
To determine the residential development police impact fee, the allocated portion of police service
costs is divided by the population base that will be served to determine a cost per person. This
cost is then multiplied by the number of persons per dwelling type to determine a police impact fee by
residential development type. For commercial development, the allocated police service costs are
divided by the estimated amount of new commercial building space (1,000 sq. ft.) that will be
provided police service. Summaries of the calculated net allowable police impact fees by development
type are shown in Table 3-2, and details of the calculations are provided in Exhibits B-4, B-5, and B-6.
Residential per unit
Apartment per unit
Commercial per 1,000 sq ft of build space
$192
154
555
The total impact fee as shown for a single-family residential unit is $192. This results in a decrease
from the calculated 2015 Cost Base impact fee from residential development impact fees and an increase
in the commercial fees. This is due to the change in projected needs in space, construction costs, and
the number of calls related to residential development and commercial development. The details of the
net allowable impact fee are shown on Exhibit B-5 and Exhibit B-6 of the Technical Appendices.
Determination of the City's Police Impact Fees 3-3
City of Kalispell, Montana
3.4 Key Assumptions
In the development of the impact fees for the City's police service, a number of key assumptions were
utilized. These are as follows:
■ KPD's space needs and costs were used in the calculation.
■ The number of calls by development type was based on recent updated historical call records.
3.5 Implementation and Application of the Impact Fees
The residential impact fee is implemented by the type of use per ERU. For residential customers, all
single family and townhouses are assessed 1 ERU per unit, and multifamily dwelling units and duplexes
are assessed 0.80 ERU per living unit. A tiny house unit 400 square feet or less as defined by State code,
are assessed 0.80 ERU. For commercial development, the allocated police service costs are multiplied
by every 1,000 square feet of new building space.
Application of Police Impact fees includes but is not limited to the following:
■ All new residential and commercial building construction within City limits.
■ All new residential and commercial building expansions within City limits.
■ All new annexed properties with existing residential or commercial buildings. All existing
buildings at the time of annexation will be assessed the current impact fee.
3.6 Recommendations
The following are recommendation based on the review and analysis of the City's police service.
■ The City should implement impact fees for police service that are no greater than the impact
fees as set forth in this report.
■ The City should update the actual calculations for the impact fees at such time when a new
capital improvement plan, facilities plan, comprehensive system plan, or a comparable plan is
approved or updated by the City, or every five years as deemed by Montana Code law.
■ The City as a matter of policy may adopt an impact fee which is less than the calculated fees as
shown in this report, but in doing so, the City will be sharing some portion of development
impact costs with existing residents.
■ The City should adjust the impact fee each year by an escalation factor to reflect the cost of
interest and inflation. This method of escalating the City's impact fee should be used for no more
than a four-year period. After this time period, as required by Montana law, the City should
update the fees based on the actual costs and any new planned facilities contained in an updated
master plan, capital improvement plan or study.
Determination of the City's Police Impact Fees 3-4
City of Kalispell, Montana
TITLE 7. LOCAL GOVERNMENT
CHAPTER 6. FINANCIAL ADMINISTRATION AND TAXATION
Part 16. Impact Fees to Fund Capital Improvements
Definitions
7-6-1601. Definitions. As used in this part, the following definitions apply:
(1) (a) "Capital improvements" means improvements, land, and equipment with a useful life of 10
years or more that increase or improve the service capacity of a public facility.
(b) The term does not include consumable supplies.
(2) "Connection charge" means the actual cost of connecting a property to a public utility system and
is limited to the labor, materials, and overhead involved in making connections and installing meters.
(3) "Development" means construction, renovation, or installation of a building or structure, a change
in use of a building or structure, or a change in the use of land when the construction, installation, or
other action creates additional demand for public facilities.
(4) "Governmental entity" means a county, city, town, or consolidated government.
(5) (a) "Impact fee" means any charge imposed upon development by a governmental entity as part
of the development approval process to fund the additional service capacity required by the development
from which it is collected. An impact fee may include a fee for the administration of the impact fee not to
exceed 5% of the total impact fee collected.
(b) The term does not include:
(i) a charge or fee to pay for administration, plan review, or inspection costs associated with a permit
required for development;
(ii) a connection charge;
(iii) any other fee authorized by law, including but not limited to user fees, special improvement district
assessments, fees authorized under Title 7 for county, municipal, and consolidated government sewer
and water districts and systems, and costs of ongoing maintenance; or
(iv) onsite or offsite improvements necessary for new development to meet the safety, level of
service, and other minimum development standards that have been adopted by the governmental entity.
(6) "Proportionate share" means that portion of the cost of capital system improvements that
reasonably relates to the service demands and needs of the project. A proportionate share must take
into account the limitations provided in 7-6-1602.
(7) "Public facilities" means:
(a) a water supply production, treatment, storage, or distribution facility;
(b) a wastewater collection, treatment, or disposal facility;
(c) a transportation facility, including roads, streets, bridges, rights -of -way, traffic signals, and
landscaping;
(d) a storm water collection, retention, detention, treatment, or disposal facility or a flood control
facility;
(e) a police, emergency medical rescue, or fire protection facility; and
(f) other facilities for which documentation is prepared as provided in 7-6-1602 that have been
approved as part of an impact fee ordinance or resolution by:
(i) a two-thirds majority of the governing body of an incorporated city, town, or consolidated local
government; or
(ii) a unanimous vote of the board of county commissioners of a county government.
History: En. Sec. 1, Ch. 299, L. 2005.
Calculation Of Impact Fees -- Documentation
Required -- Ordinance Or Resolution --
Requirements For Impact Fees
7-6-1602. Calculation of impact fees -- documentation required -- ordinance or resolution --
requirements for impact fees. (1) For each public facility for which an impact fee is imposed, the
governmental entity shall prepare and approve a service area report.
(2) The service area report is a written analysis that must:
(a) describe existing conditions of the facility;
(b) establish level -of -service standards;
(c) forecast future additional needs for service for a defined period of time;
(d) identify capital improvements necessary to meet future needs for service;
(e) identify those capital improvements needed for continued operation and maintenance of the
facility;
(f) make a determination as to whether one service area or more than one service area is necessary
to establish a correlation between impact fees and benefits;
(g) make a determination as to whether one service area or more than one service area for
transportation facilities is needed to establish a correlation between impact fees and benefits;
(h) establish the methodology and time period over which the governmental entity will assign the
proportionate share of capital costs for expansion of the facility to provide service to new development
within each service area;
(i) establish the methodology that the governmental entity will use to exclude operations and
maintenance costs and correction of existing deficiencies from the impact fee;
Q) establish the amount of the impact fee that will be imposed for each unit of increased service
demand; and
(k) have a component of the budget of the governmental entity that:
(i) schedules construction of public facility capital improvements to serve projected growth;
(ii) projects costs of the capital improvements;
(iii) allocates collected impact fees for construction of the capital improvements; and
(iv) covers at least a 5-year period and is reviewed and updated at least every 5 years.
(3) The service area report is a written analysis that must contain documentation of sources and
methodology used for purposes of subsection (2) and must document how each impact fee meets the
requirements of subsection (7).
(4) The service area report that supports adoption and calculation of an impact fee must be available
to the public upon request.
(5) The amount of each impact fee imposed must be based upon the actual cost of public facility
expansion or improvements or reasonable estimates of the cost to be incurred by the governmental
entity as a result of new development. The calculation of each impact fee must be in accordance with
generally accepted accounting principles.
(6) The ordinance or resolution adopting the impact fee must include a time schedule for periodically
updating the documentation required under subsection (2).
(7) An impact fee must meet the following requirements:
(a) The amount of the impact fee must be reasonably related to and reasonably attributable to the
development's share of the cost of infrastructure improvements made necessary by the new
development.
(b) The impact fees imposed may not exceed a proportionate share of the costs incurred or to be
incurred by the governmental entity in accommodating the development. The following factors must be
considered in determining a proportionate share of public facilities capital improvements costs:
(i) the need for public facilities capital improvements required to serve new development; and
(ii) consideration of payments for system improvements reasonably anticipated to be made by or as
a result of the development in the form of user fees, debt service payments, taxes, and other available
sources of funding the system improvements.
(c) Costs for correction of existing deficiencies in a public facility may not be included in the impact
fee
(d) New development may not be held to a higher level of service than existing users unless there is
a mechanism in place for the existing users to make improvements to the existing system to match the
higher level of service.
(e) Impact fees may not include expenses for operations and maintenance of the facility.
History: En. Sec. 2, Ch. 299, L. 2005; amd. Sec. 1, Ch. 358, L. 2009; amd. Sec. 1, Ch. 276, L.
2015.
Collection And Expenditure Of Impact Fees --
Refunds Or Credits -- Mechanism For Appeal
Required -- Cause Of Action
7-6-1603. Collection and expenditure of impact fees -- refunds or credits -- mechanism for
appeal required -- cause of action. (1) The collection and expenditure of impact fees must comply with
this part. The collection and expenditure of impact fees must be reasonably related to the benefits
accruing to the development paying the impact fees. The ordinance or resolution adopted by the
governmental entity must include the following requirements:
(a) Impact fees collected for a public facility must be deposited in a special proprietary fund created
specifically for each public facility as identified in the service area report. Funds must be invested with
all interest accruing to the fund. Impact fees collected for a specific public facility may not be transferred
to a different fund and must be spent and accounted for solely for the public facility as identified in the
service area report.
(b) A governmental entity may impose impact fees on behalf of local districts.
(c) (i) If the impact fees are not collected or spent in accordance with the impact fee ordinance or
resolution or in accordance with 7-6-1602, any impact fees that were collected must be refunded to the
person who owned the property at the time the impact fee in question was paid.
(ii) If a written request is submitted as provided for in subsection (9), the governmental entity shall
refund any impact fee due under subsection (1)(c)(i) within 90 days.
(iii) The governmental entity may not impose conditions when issuing a refund pursuant to this part.
(d) Impact fees may only be used to acquire, construct, or improve the specific public facility project
for which they were collected and may only be expended in compliance with the service area report.
(2) All impact fees imposed pursuant to the authority granted in this part must be paid no earlier than
the date of issuance of a building permit if a building permit is required for the development or no earlier
than the time of wastewater or water service connection or well or septic permitting.
(3) A governmental entity may recoup costs of excess capacity in existing capital facilities, when the
excess capacity has been provided in anticipation of the needs of new development, by requiring impact
fees for that portion of the facilities constructed for future users. The need to recoup costs for excess
capacity must have been documented pursuant to 7-6-1602 in a manner that demonstrates the need for
the excess capacity. This part does not prevent a governmental entity from continuing to assess an
impact fee that recoups costs for excess capacity in an existing facility. The impact fees imposed to
recoup the costs to provide the excess capacity must be based on the governmental entity's actual cost
of acquiring, constructing, or upgrading the facility and must be no more than a proportionate share of
the costs to provide the excess capacity.
(4) Governmental entities may accept the dedication of land or the construction of public facilities in
lieu of payment of impact fees if:
(a) the need for the dedication or construction is clearly documented pursuant to 7-6-1602;
(b) the land proposed for dedication for the public facilities to be constructed is determined to be
appropriate for the proposed use by the governmental entity;
(c) formulas or procedures for determining the worth of proposed dedications or constructions are
established as part of the impact fee ordinance or resolution; and
(d) a means to establish credits against future impact fee revenue has been created as part of the
adopting ordinance or resolution if the dedication of land or construction of public facilities is of worth in
excess of the impact fee due from an individual development.
(5) Impact fees may not be imposed for remodeling, rehabilitation, or other improvements to an
existing structure or for rebuilding a damaged structure unless there is an increase in units that increase
service demand as described in 7-6-1602(2)(j). If impact fees are imposed for remodeling, rehabilitation,
or other improvements to an existing structure or use, only the net increase between the old and new
demand may be imposed.
(6) This part does not prevent a governmental entity from granting refunds or credits:
(a) that it considers appropriate and that are consistent with the provisions of 7-6-1602 and this
chapter; or
(b) in accordance with a voluntary agreement, consistent with the provisions of 7-6-1602 and this
chapter, between the governmental entity and the individual or entity being assessed the impact fees.
(7) An impact fee represents a fee for service payable by all users creating additional demand on the
facility.
(8) An impact fee ordinance or resolution must include a mechanism whereby a person charged an
impact fee may appeal the charge if the person believes an error has been made.
(9) Any person or entity who is owed refunded impact fees as provided in this part may request in
writing from the governmental entity that prompt payment be concluded. A person or entity who
submitted a written request pursuant to this subsection may bring a cause of action against the
governmental entity in a court of competent jurisdiction for failure to comply with this part. If a claimant
prevails in an action brought against a governmental entity pursuant to this subsection, the court shall
award the claimant payment of all amounts due, court costs, expert witness fees, and attorney fees
incurred by the claimant. If the claimant is unsuccessful, the court shall award the governmental entity
court costs, expert witness fees, and attorney fees.
History: En. Sec. 3, Ch. 299, L. 2005; amd. Sec. 2, Ch. 358, L. 2009; amd. Sec. 1, Ch. 330, L.
2023.
Impact Fee Advisory Committee
7-6-1604. Impact fee advisory committee. (1) A governmental entity that intends to propose an
impact fee ordinance or resolution shall establish an impact fee advisory committee.
(2) An impact fee advisory committee must include at least one representative of the development
community. The committee shall review and monitor the process of calculating, assessing, and spending
impact fees.
(3) The impact fee advisory committee shall serve in an advisory capacity to the governing body of
the governmental entity.
History: En. Sec. 4, Ch. 299, L. 2005; amd. Sec. 2, Ch. 276, L. 2015.
Exhibit B-1: Kalispell Police Department
2025 Impact Fee Tech Memo
Updated Data Summary
March 2025
The purpose of this report is to provide supporting data to update the current Kalispell Police
Department Impact Fees. Police Impact Fee calculations are based on current and future ratio
factors including:
• police employee per building space,
• police employee per city population, and
• costs per building square foot.
In addition to the planning ratios and building cost this report provided recent data which is used
to determine the impact ratio between residential and commercial development.
A. Building Space, Employee per Population, Cost per Building Square Foot
1. Building Space Requirements— Montana Cities
Comparison for space needs planning and costs were collected from Kalispell, Billings, Bozeman,
and Whitefish Police Departments.
Kalispell Police Department (PD)
2025
2045
Difference
Population
31,399
51,451
20,052
# of KPD full-time employees (sworn and non -sworn)
66
108
42
Ratio of KPD employees per 1,000 residents
2.1
2.1
----
Gross square footage of KPD
15,756
25,878'
----
Ratio of square footage per employee
239
241'
------
1. Using a 2.5% growth rate
2. 2025 SF/employee, average between comparison Cities
3. 42 new employees x 241 sq ft + 15,756 existing sq ft = 25,878
Billings Police Department (PD)
Billings PD currently occupies 29,475 square feet, supporting a staff of 214. The current
proportion of square foot per employee is 138.
Billings completed a space need and staffing study in 2019. The space needs study calls for an
additional 11,380 square feet by 2040. The staffing needs projected an additional 26 staff and an
additional 27 in the patrol division for a total of 267 staff. The Billings study concluded in 2040
PD needed a total of 40,855 square feet of building space to support 267 employees at a ratio of
153 square feet per personnel.
Bozeman Police Department (PD)
Bozeman PD will occupy 30,000 square feet of building (currently being built) and supports a
2021 staff of 79 (of which 67 are officers). The current ratio of square footage per employee is
380.
Citizens in Bozeman in 2018 approved a public safety bond authorizing the building of a new
public safety center. This building includes Police, Fire, Courts and Victim Services. This total
cost of $39,400,000 with total area of 95,000 square feet, equating to a cost of $415 per square foot
(the land was acquired on a land swap and is not a component of the total cost). The area dedicated
for police is up to 30,000 square feet.
Bozeman's staffing study only project through to 2022. In using the same ratio and a 2.5%
growth rate, Bozeman PD would have 129 employees in 2040, with a building space ratio of
square footage per employee of 233.
Whitefish Police Department (PD)
Whitefish PD currently occupies 9,826 square feet of building and supports a staff of 20. The
current proportion of square foot per employee is 491.
In 2010, Whitefish completed a new 32,656 square foot Public Safety Department and Courts
Building. The Police Department area (9,826 sq ft) does not include the square feet for common
spaces (training rooms, lobbies and corridors, and mechanical/utilities. Cost to construct the
building totaled approximately $7,899,831 ($242/sq). Cost of land was excluded from this figure.
Whitefish has not completed a space requirement study for the police department. Therefore, for
this study Whitefish's estimated employees for 2041 was based on average increase of the other
city police departments (including KPD) at 44%. In using this ratio and a 2.5% growth rate,
Whitefish PD would have 29 employees in 2040, and the future project building space ratio of
square footage per employee is 338.
2. Building Cost Comparisons — Montana Cities
Bozeman's current cost evaluation seems to provide the most appropriate data due to our similar
building environments. The cost at the time of build was $415 a square foot. Billing's project has
not been bid, and no cost were provided, and Whitefish's build data is very dated (2010) given the
current environment.
This build cost was affirmed using data from a public website, Cummins Insight, provided by
Planning Director Jarod Nygren. Cummins Insights publishes building costs for police stations
via regions, and Kalispell is in the Denver Region. The report states, for the Denver Region,
Police building costs are between $455 and $545 per square foot. This helps confirm Bozeman's
build cost of $415/square foot.
3. Summary and Recommendations
The table below summarizes the data collected and interpreted from the Montana Cities for
current and future building space and employee ratios, and current construction costs.
Cummins
Kalispell
Billings
Bozeman
Whitefish'
Insights
(Denver)3
Building Sq Ft 2025
15,756
29,475
30,000
9,825
NA
Ft/Employee 2025
239
214
380
491
NA
—Sq
Building Sq Ft 2045
25,878
40,855
30,000
9,825
NA
Sq Ft/Employee 2045
2414
153
233
338
NA
Construction Cost/Sq Ft
----
NA
$415
$242
$455-545
1) Whitefish built in 2010 excluding land cost
2) Bozeman built a new Safety Building in 2021
3) Nationwide construction pricing — Denver Region (Montana is included in Denver region)
4 Average of three comparison cities
In reviewing the data collected from the comparison Cities and national data, Kalispell PD
recommends the following information be used for the calculation of the 2025 Police Impact Fee.
Kalispell
current(Proposed)Notes
Kalispell
Building Sq Ft
15,756
25,878
Ft/Employee 2025
239
241
—Sq
Sq Ft/Employee 2045
----
241
2025 SF/employee IF Report, average
between comparison Cities
Construction Cost/Sq Ft
$415
Best available information
B. Commercial Development Projections
The Kalispell Planning Department predicts there will be 258 additional acres of commercial
development between 2025 and 2045. The growth factor of 2.5% was used through the final
planning year of 2045.
The planning office uses a factor of 20,000 square feet of constructed area per acre, the estimate
of additional commercial construction is 5,160,000 square feet between 2025 and 2045.
Please reference the attached Construction Trends/Project for Commercial Development 2/4/2025
Memo from Jarod Nygren, Development Services Director.
C. Residential and Commercial Call Volume Ratios
Commercial and Residential call volumes ratios are used to proportion the calculated fee for both
residential and commercial impacts.
2025 Residential/Commercial Call Ratios
An updated study was conducted in December 2024. The calls were tracked and recorded by mapping the
commercial areas of the city versus the residential areas and interpreting the data from our current records
management system. The data was averaged over a four-year period between 2021 and the time of report
in 2024.
TYPE % only using R&C (four-year average)
Residential 35%
Commercial 65%
CITY�7t��
KALISPELL
MEMORANDUM
To: Susie Turner, Public Works Director
From: Jarod Nygren, Development Services Director
Date: February 4, 2025
Development Services
201 Ist Avenue East
Kalispell, MT 59901
Phone: (406) 758-7940
Fax: (406) 758-7739
www.kalist)ell.com/t)lannin2
Subject: Construction Trends/Projections for Commercial Development
I have attached a worksheet showing commercial construction development trends in Kalispell
along with growth projections through the year 2045. In brief, this office anticipates that there
will be approximately 258 additional acres of commercial development within Kalispell city
limits from 2025-2045. This projection utilizes commercial growth trends from 2014-2024 and
adds a 2.5% per year growth rate based on the projected Kalispell population growth rate.
The commercial construction figures used for the above estimates are based on building permits
issued from 2014 — 2024 within the City of Kalispell. Over this 10-year period the city has seen
an average of 189,769 square feet of commercial development occur per year. Commercial
development is generally described as non-residential uses including retail, office, medical,
governmental, churches, schools and industrial uses.
This office utilizes a ratio of 20,000 square feet of constructed area per gross acre of developed
land. In other words, a 20,000 square foot building along with the associated required roads,
parking, landscaping and setbacks would consume one acre of land. Using the above number of
189,769 square feet of constructed area per year, it is estimated that that this would equate to 9.5
acres of commercial land per year over the past 10 years. Based on 20,000 square feet of
constructed area per acre, the estimate of additional commercial construction is 5,160,000 square
feet between 2025 and 2045.
2014-2024
Kalispell Annual Square Footage New Construction
Commercial/Retail
2014 -
92,434
2015 -
106,153
2016 -
115,998
2017 -
133,140
2018 -
79,932
2019 -
36,137
2020 -
47,161
2021 -
4,426
2022 -
44,891
2023 -
26,994
2024 -
23.195
TOTAL
710,461 (71,046 sq. ft./yr. — 3.55 acres/yr.)
Commercial/Office
2014 -
17,426
2015 -
0
2016 -
0
2017 -
0
2018 -
0
2019 -
56,376
2020 -
14,300
2021 -
49,243
2022 -
17,403
2023 -
11,423
2024 -
23.195
TOTAL
189,366 (18,937 sq. ft.Nr. — .95 Acre/yr.)
Industrial
2014 -
0
2015 -
9,565
2016 -
0
2017 -
0
2018 -
19,428
2019 -
55,800
2020 -
54,264
2021 -
0
2022 -
40,110
2023 -
19,305
2024 -
45.950
TOTAL
244,422 (24,442 sq. ft./yr —1.2 Acre/yr.)
Gov.. Health. Public. Church, etc.
2014 -
50,401
2015 -
66,976
2016 -
266,799
2017 -
94,599
2018 -
28,763
2019 -
19,045
2020 -
67,090
2021 -
21,121
2022 -
45,854
2023 -
17,843
2024
74.951
TOTAL 753,442 (75,344 sq. ft./yr. - 3.8 Acre/yr.)
TOTAL SQUARE FOOT
1,897,691(189,769 sq. ft./yr. - 9.5 acre/yr)
Notes: 10 years of building permit data from 2014 — 2024, assumes city limits only and 20,000 square feet of
structure/acre.
PROJECTIONS SHOWING COMMERCIAL (NON-RESIDENTIAL) DEVEOPMENT
IN KALISPELL 2021-2040
Using a multiplier equal to population growth (2.5% per yr-2025-2045)
2025 —
9.5
2026 —
9.74
2027 —
9.98
2028 —
10.23
2029 —
10.46
2030 —
10.72
2025
— 2030 -
60.63 ac.
2031 —
10.99
2032 —
11.26
2033 —
11.54
2034 —
11.83
2035 —
12.13
2031
— 2035 -
57.75 ac.
2036 —
12.43
2037 —
12.74
2038 —
13.06
2039 —
13.39
2040 —
13.72
2036
— 2040 -
65.34 ac.
2041 —
14.06
2042 —
14.41
2043 —
14.77
2044 —
15.14
2045 —
15.52
2041
— 2045 -
73.9
Total
257.62 acres
Kalispell Population Projections
Prepared by
Kalispell Planning Department
January 2025
2023 (census) - 29,886
2025
- 31,399
2030
- 35,525
4,126
2035
- 40,193
4,668
2040
- 45,475
5,282
2045
- 51,451
5,976
Total Pop. Growth 20,052
Projections based on an assumed growth rate of 2.5% per year after 2023 which will compound
for a 72% growth increase over two decades.
City of Kalispell
Police Impact Fees
Population Projections
Exhibit B-2
Yearly Population
Year
Population'
Growth
Census
2023
29,886
2024
30,633
2025
31,399
1
2026
32,184
785
2
2027
32,989
805
3
2028
33,813
825
4
2029
34,659
845
5
2030
35,525
866
6
2031
36,413
888
7
2032
37,324
910
8
2033
38,257
933
9
2034
39,213
956
10
2035
40,193
980
11
2036
41,198
1,005
12
2037
42,228
1,030
13
2038
43,284
1,056
14
2039
44,366
1,082
15
2040
45,475
1,109
16
2041
46,612
1,137
17
2042
47,777
1,165
18
2043
48,972
1,194
19
2044
50,196
1,224
20
2045
51,451
1,255
20,052
1) 2.5% annual growth rate
City of Kalispell
Police Impact Fees
Space Requirements
Exhibit B-3
Step 1 : Square footage per Police Department Personal
PD Personal 66
Total Square Feet 15,756
SF/Person 2025 239
SF/Person 2045 241
Step 2: PD per Population
2025 Population 31,399
PD/1,000 residents 2.1
PD per Population in 2025 476
2045 Population 51,451
PD Ratio 2.1
PD Required in 2045 108
Step 3: New PD Square Footage
New PD (2025-2045)
42
Required New Space
10,122
Step 4: Total Costs
Required New Space (sq ft)
10,122
Cost per Square Foot $
415.00
Total Police Building Cost $
4,200,630
1 - From Exhibit B-1. Only new space is allocated to growth.
City of Kalispell
Police Impact Fees
Cost Allocation
Exhibit B-4
New Population (2025-2045)
20,052
Required New Space'
10,122
Cost per Square Foot3
$
415
Total Police Building Cost
$
4,200,630
Residential Cost 2
$
1,470,221
Commercial Cost 2
$
2,730,409
1 - From Exhibit B-1. Only new space is allocated to growth.
2 - 35% to residential and 65% to commercial based on four year average 2021-2024
3 - Cost per square foot, see Exhibit B-1
City of Kalispell
Police Impact Fees
Allowable Residential Impact Fees
Exhibit B-5
Residential Impact Fee Costs'
Residential Population Served
Cost per Person
Single Family Dwelling Unit- 2.5 persons per Dwelling Unit
Debt Service Credit
Administration Fee
Net Single Family Impact Fee
Recommended Single Family Impact Fee
Multifamily Dwelling Unit - 0.80 ERU per Dwelling Unit
Debt Service Credit
Administration Fee
Net Multifamily Impact Fee
$ 1,470,221
20,052
$ 73.32
$
$
183.30
9.17
$
192.47
$ 192.00
$
$
146.64
7.33
$
153.97
Recommended Multifamily Impact Fee $ 154.00
City of Kalispell
Police Impact Fees
Allowable Commercial Impact Fees
Exhibit B-6
Commercial Impact Fee Costs $ 2,730,409
Commercial Acres 2 258
1,000 sq ft of Gross Building Area per Acre 3 20
Total Gross Building Area (1,000 sq ft) 5,160
Impact Fee per 1,000 sq ft of Gross Building Area $ 529.00
Debt Service Credit -
Administration Fee 26.45
Net Commercial Impact Fee 4 $ 555.45
Recommended Commercial Impact Fee $ 555.00
1 - From Exhibit B-3
2 - Based on 2025 Planning Construction Trend/Projects for Commercial
Development. See Exhibit B-1
3 - Assumes 20, 000 sq. ft. per acre.
4 - Per 1, 000 sq. ft. of gross building area (or fraction thereof).
� 5y5�' ' Sun" }ri•
�- .wn#R �r l.� �, L •
A ^t.
I q�
, Lt I
Final Report
Impact Fee
Kalispell Fire Depa
March 2025
rtment
Contents
1 Introduction and Overview of the Study
1.1 Introduction.......................................................................................................... 1-1
1.2 Overview of the Study......................................................................................... 1-1
1.3 Impact Fee Advisory Committee(IFAC)..................................................... 1-1
1.4 Disclaimer..................................................................................1-1
2 Legal Considerations in Establishing Impact Fee for the City
2.1 Introduction.......................................................................................................... 2-1
2.2 Requirements under Montana Law...................................................................... 2-1
3 Determination of the City Fire Impact Fees
3.1 Introduction.......................................................................................................... 3-1
3.2 Present Fire Impact Fees...................................................................................... 3-1
3.3 Update of the City's Fire Impact Fees ........................................................ ......... 3-1
3.4 Key Assumptions................................................................................................. 3-4
3.5 Implementation and Application of the Impact Fees...........................................3-4
3.6 Recommendations................................................................................................3-4
Tables
3-1 Current and Calculated Fire Impact Fees............................................................ 3-1
3-2 Allowable Fire Impact Fees................................................................................. 3-4
Appendix A -Impact Fees Montana Code
Appendix B - Fire Impact Fees Exhibits
Table of Contents
City of Kalispell, Montana
Section 1: Introduction
1.1 Introduction
HDR Engineering Inc. (d.b.a. HDR/EES) was retained by the City of Kalispell; Montana (City) to
develop in 2006 and update in 2010 the City's cost -based impact fees for the City's fire services
that comply with the Montana Code. The impact fees were once again updated using the cost
base method in 2015. This update is based on the methodology used in the previously adopted
reports and on current capital improvement plans, planning data, and cost allocations. This report
provides a summary of the update to the cost -based impact fees for the City's fire services.
Impact fees are a one-time assessment against new development to pay for the cost of
infrastructure required to provide service. Impact fees provide a means of balancing the cost
requirements for new infrastructure (buildings and equipment) between existing customers and
new customers. The portion of capital improvements that will provide service to new customers is
included in the impact fees. In contrast to this, the City may have future capital projects and
equipment requirements that are related to meeting existing deficiencies in fire services. These
costs must be funded by other sources and are not included within the impact fee. By
establishing cost -based impact fees, the City intends to assure that "growth pays for growth" and
existing residents and businesses will be sheltered from the financial impacts of growth.
1.2 Overview of the Study
This report is divided into three distinct components. The next section of the report provides a
summary of the legal requirements for the enactment of impact fees under Montana law. The cost -
based impact fee calculation for the City's fire services is provided in Section 3.
1.3 Impact Fee Advisory Committee (IFAC)
The Montana Annotated Code requires the establishment of an Impact Fee Advisory Committee
(IFAC), which serves in an advisory capacity to the governing body of the City of Kalispell. The
planning, capital improvements projects, methods and calculations were reviewed and discussed
with the IFAC at various meetings since February of 2022. At the April 2025 meeting the
proposed methodology and impact fee as outlined in this Final Report Update was motioned and
approved by the committee members.
1.4 Disclaimer
Determination of impact fees originally presented, used "generally accepted" planning,
accounting, and ratemaking principles. This should not be construed as a legal opinion with
respect to Montana law.
Introduction and Overview of the Study 1-1
City of Kalispell, Montana
Section 2: Legal Consideration of Establishing Impact
Fees for the City
2.1 Introduction
An important consideration in establishing impact fees is any legal requirements at the state or
local level. The legal requirements often establish the methodology around which the impact
fees must be calculated or how the funds must be used. Given that, it is important for the City to
understand these legal requirements. This section of the report provides an overview of the legal
requirements for establishing impact fees under Montana law. This legal summary has been
updated from reports prepared by HDR/EES to reflect changes in the impact fee law as set forth
in SB0231. The changes in Montana law since the development of the fees were minor language
clarifications. Therefore, the methodology established in the previous reports was used as the
basis for this update of the fire impact fees.
2.2 Requirements under Montana Law
In establishing impact fees, an important requirement is that they be developed and implemented
in conformance with local and state laws. Many states have established specific laws regarding
impact fees. The main objective of most state laws is to ensure that these charges are established
in such a manner that they are fair, equitable and cost -based.
The Montana law enabling legislation for impact fees was enacted in 2005 via Senate Bill 185.
This was comprehensive legislation allowing public entities in the State of Montana to enact
impact fees for various services. The legal basis for the enactment of impact fees is found in
Title 7, Chapter 6, and Part 1601 to 1604 of the Montana Code. A copy of the full code is
provided as Appendix A.
Legal Considerations in Establishing Impact Fees for the City 2.1
City of Kalispell, Montana
Section 3: Determination of the City's Fire Impact Fees
3.1 Introduction
This section of the report presents the update of the fire impact fees. The calculation of the fire
impact fees presented in this section are based on the City's planning criteria and future capital
improvements as identified in the City's Capital Improvement Plan. The methodology was established
in the previously adopted reports and updated with current capital improvements and planning data.
To the extent that the cost and timing of future capital improvements change, then the impact fee
presented in this section should be updated to reflect the cost of these adjustments.
3.2 Present and Updated Fire Impact Fees
The City currently assesses impact fees for fire service. Fire impact fees are assessed for single-
family residential units, multi -family residential units and commercial property. A summary of the
current fees adopted in 2015, and the updated 2025 cost base calculated fee is provided in Table 3-1.
2015 Cost Based 2025 Cost Based
Calculated 2015 Calculated
Type of Use Allowable (Council Adopted) Allowable
Residential per unit S 1.067 $483 $ 782
Apartment per unit 811 367 $ 626
Commercial per 1,000 sq ft of build space 778 350 $1,168
3.3 Update of the City's Fire Impact Fees
The process of updating the impact fees is based upon a four -step process. In summary form,
these steps were as follows:
■ Determination of planning standards
■ Determination of fire impact fees
■ Determination of any impact fee credits
■ Determination of fire impact fees by development type
Each of these areas is discussed in more detail below.
Determination of the City's Fire Impact Fees 3-1
City of Kalispell, Montana
3.3.1 Planning Standards
As a guide the City uses the NFPA 1710 Standard for the Organization and Deployment of Fire
Suppression Operation, Emergency Medical Operations, and Special Operations to the Public by
Career Fire Departments to determine the number and location of fire stations. These standards
were presented to the City Council in 2002 as part of the budget process and are utilized to date.
These standards determine the number of fire stations, locations and equipment requirements based
on a four (4) minute response for fire engines and an eight (8) minute response for ladder trucks.
Station response area maps are provided in Appendix B as Exhibit B-1.
With the construction of Fire Station No. 62, the City became more compliant with these standards
with respect to response time on March 22, 2006. The City will have deficiencies in providing fire
service on building and equipment requirements to the public, based on the current development
trends having to do with the annexation of large tracks of vacant land at the outer City limits, which
will be addressed by adding new fire stations and equipment. All future fire stations and equipment
will be driven by the need to service new development in the City.
The planning horizon used for this report is from 2025 to 2045. The population projections use a
population growth rate of 2.5% and were derived from a memorandum dated February 4, 2025, from
Jarod Nygren, Development Services Director. A copy of the memorandum and population
projections are provided in Appendix B as Exhibit B-2 and Exhibit B-3.
To meet population growth in the future, the City has planned for three new fire stations and
equipment. These are Fire Stations Nos. 63, 64, and 65. On March 7, 2011, the City Council adopted
an annexation policy, resolution 540413, that significantly revised the previous annexation boundary.
This report uses the 2011 annexation policy boundary for the planning boundary and adjusted Capital
Improvement Projects to meet the needs in the expanded service area. The additional future stations
are necessary to serve the coverage areas associated within the adopted boundary and provide full
response coverage for the expansion of the city. In addition, consideration was made in planning for
future response needs in regard to population density within a smaller area of service. The increase of
population density within a specified geographical area will increase the demand on the emergency
service units in this area causing these units to be already assigned and unable to respond. These new
stations will serve the projected population and estimates, with Stations 63 and 65 anticipated to be
constructed during the timeline of this report and Station 64 anticipated to be outside the time frame
of this report.
3.3.2 Building and Equipment Costs
The next step of the analysis is to review each major functional component of providing fire service
and determine the impact fee for that component. In calculating the fire impact fee for the City,
only planned future CIP were included within the calculation, the components of the City's fire
service that were reviewed for purposes of calculating an impact fee were as follows:
■ New fire stations and equipment
■ Administration costs
Determination of the City's Fire Impact Fees 3.2
City of Kalispell, Montana
A brief discussion of the impact fee calculated for each of the components is provided below.
FIRE STATIONS AND EQUIPMENT — To serve new development, the City's fire service capital
improvement plan identified two (2) new stations and equipment to maintain the service standards
under NFPA 1710 within the City, in addition to Fire Station 62, which has been constructed and is
operational. The Capital improvement plan is provided in Appendix B as Exhibit B-4. The impact
portion of the costs were then allocated to residential development and commercial development
based on the number of calls initiated by each type of development as shown in Appendix B as
Exhibit B-5. The current result was a total cost of $11,718,250 of which $5,976,308 is attributable to
residential development and $5,741,943 is attributable to commercial development.
As noted above, the allocation of costs between residential and commercial development is based on
the historical number of calls between the two development types as outlined in Exhibit B-5. The
number of calls between residential and commercial has changed since the 2015 report. The
2015 report used an allocation of 68% to residential based on the historical call records. Based on
the review of recent call records from 2020 to 2024, the allocation to residential is 51% and
Commercial is 49%. Details of the calculations are provided in Appendix B as Exhibit B-6.
ADMINISTRATIVE CHARGE — Under Montana statute, an impact fee may include a fee for the
administration of the impact not to exceed 5% of the impact fee collected. Therefore, the City has
included a fire impact fee administrative charge of 5% of the impact fee collected.
3.3.3 Credits
The final step in calculating the fire impact fee was to determine if a credit for payment from other
revenue sources was required. No debt relating to new development is outstanding for the Fire
Department resulting in a credit of zero.
3.3.4 Net Allowable Fire Impact Fees by Development Type
Based on the sum of the component costs calculated above, the net allowable fire impact fee can be
determined. "Net" refers to the "gross" impact fee, net of any credits. "Allowable" refers to the
concept that the calculated impact fee shown in the following tables are the City's cost -based impact
fees. The City, as a matter of policy, may charge any amount up to the allowable impact fee, but not
over that amount. Charging an amount greater than the allowable impact fee would not meet the
nexus test of a cost -based impact fee.
To determine the residential development fire impact fee, the allocated portion of fire service costs is
divided by the population base that will be served to determine a cost per person. This cost is then
multiplied by the number of persons per dwelling type to determine a fire impact fee by residential
development type. For commercial development, the allocated fire service costs are divided by the
estimated amount of new commercial building area (per 1,000 sq. ft.) that will be provided with the
fire service. Summaries of the calculated net allowable fire impact fees by development type are
shown in Table 3-2.
Determination of the City's Fire Impact Fees 3-3
City of Kalispell, Montana
Development Type Allowable Impact Fee
Calculation Results
Residential per unit $ 782
Apartment per unit $ 626
Commercial per 1,000 sq ft of building space $1,168
The total impact fee as shown for a single-family residential unit is $782. This results in a decrease
from 2015 residential and an increase in the 2015 commercial development impact fees. The details
of the net allowable impact fee are shown in Appendix B as Exhibit B-7 and Exhibit B-8.
3.4 Key Assumptions
In the development of the impact fees for the City's fire system, several key assumptions were
utilized. These are as follows:
■ The City's capital improvements and costs were used in the calculation.
■ The number of calls by development type was based on 2020 to 2024 updated historical call
records.
3.5 Implementation and Application of the Impact Fees
The residential impact fee is implemented by the type of use per ERU. For residential customers, all
single family and townhouses are assessed 1 ERU per unit, and multifamily dwelling units and
duplexes are assessed 0.80 ERU per living unit. A tiny house unit 400 square feet or less as defined by
State code, are assessed 0.80 ERU. For commercial development, the allocated fire service costs are
multiplied by every 1,000 square feet of new building space.
Application of Fire Impact fees includes but is not limited to the following:
■ All new residential and commercial building construction within City limits.
■ All new residential and commercial building expansions within City limits.
■ All new annexed properties with existing residential or commercial buildings. All existing
buildings at the time of annexation will be assessed the current impact fee.
3.6 Recommendations
The following are recommendations based on the review and analysis of the City's fire service.
■ The City should implement impact fees for fire service that are no greater than the impact fees
as set forth in this report.
Determination of the City's Fire Impact Fees 3-4
City of Kalispell, Montana
■ The City should update the actual calculations for the impact fees at such time when a new capital
improvement plan, facilities plan, comprehensive system plan, or a comparable plan is approved or
updated by the City, or every five years as deemed by Montana Code law.
■ The City as a matter of policy may adopt an impact fee which is less than the calculated fees as
shown in this report, but in doing so, the City will be sharing some portion of development impact
costs with existing residents.
■ The City should adjust the impact fee each year by an escalation factor to reflect the cost of interest
and inflation. This method of escalating the City's impact fee should be used for no more than a
four-year period. After this time period, as required by Montana law, the City should update the
fees based on the actual costs and any new planned facilities contained in an updated master plan,
capital improvement plan or study.
Determination of the City's Fire Impact Fees 3-5
City of Kalispell, Montana
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Exhibit A-1 Montana Code Annotated 2023
TITLE 7. LOCAL GOVERNMENT
CHAPTER 6. FINANCIAL ADMINISTRATION AND TAXATION
Part 16. Impact Fees to Fund Capital Improvements
Definitions
7-6-1601. Definitions. As used in this part, the following definitions apply:
(1) (a) "Capital improvements" means improvements, land, and equipment with a useful life of 10
years or more that increase or improve the service capacity of a public facility.
(b) The term does not include consumable supplies.
(2) "Connection charge" means the actual cost of connecting a property to a public utility system
and is limited to the labor, materials, and overhead involved in making connections and installing
meters.
(3) "Development" means construction, renovation, or installation of a building or structure, a
change in use of a building or structure, or a change in the use of land when the construction,
installation, or other action creates additional demand for public facilities.
(4) "Governmental entity" means a county, city, town, or consolidated government.
(5) (a) "Impact fee" means any charge imposed upon development by a governmental entity as
part of the development approval process to fund the additional service capacity required by the
development from which it is collected. An impact fee may include a fee for the administration of the
impact fee not to exceed 5% of the total impact fee collected.
(b) The term does not include:
(i) a charge or fee to pay for administration, plan review, or inspection costs associated with a
permit required for development;
(ii) a connection charge;
(iii) any other fee authorized by law, including but not limited to user fees, special improvement
district assessments, fees authorized under Title 7 for county, municipal, and consolidated
government sewer and water districts and systems, and costs of ongoing maintenance; or
(iv) onsite or offsite improvements necessary for new development to meet the safety, level of
service, and other minimum development standards that have been adopted by the governmental
entity.
(6) "Proportionate share" means that portion of the cost of capital system improvements that
reasonably relates to the service demands and needs of the project. A proportionate share must
take into account the limitations provided in 7-6-1602.
(7) "Public facilities" means:
(a) a water supply production, treatment, storage, or distribution facility;
(b) a wastewater collection, treatment, or disposal facility;
(c) a transportation facility, including roads, streets, bridges, rights -of -way, traffic signals, and
landscaping;
(d) a storm water collection, retention, detention, treatment, or disposal facility or a flood control
facility;
(e) a police, emergency medical rescue, or fire protection facility; and
(f) other facilities for which documentation is prepared as provided in 7-6-1602 that have been
approved as part of an impact fee ordinance or resolution by:
(i) a two-thirds majority of the governing body of an incorporated city, town, or consolidated local
government; or
(ii) a unanimous vote of the board of county commissioners of a county government.
History: En. Sec. 1, Ch. 299, L. 2005.
Calculation Of Impact Fees -- Documentation Required
Ordinance Or Resolution -- Requirements For Impact Fees
7-6-1602. Calculation of impact fees -- documentation required -- ordinance or resolution
-- requirements for impact fees. (1) For each public facility for which an impact fee is imposed, the
governmental entity shall prepare and approve a service area report.
(2) The service area report is a written analysis that must:
(a) describe existing conditions of the facility;
(b) establish level -of -service standards;
(c) forecast future additional needs for service for a defined period of time;
(d) identify capital improvements necessary to meet future needs for service;
(e) identify those capital improvements needed for continued operation and maintenance of the
facility;
(f) make a determination as to whether one service area or more than one service area is
necessary to establish a correlation between impact fees and benefits;
(g) make a determination as to whether one service area or more than one service area for
transportation facilities is needed to establish a correlation between impact fees and benefits;
(h) establish the methodology and time period over which the governmental entity will assign the
proportionate share of capital costs for expansion of the facility to provide service to new
development within each service area;
(i) establish the methodology that the governmental entity will use to exclude operations and
maintenance costs and correction of existing deficiencies from the impact fee;
Q) establish the amount of the impact fee that will be imposed for each unit of increased service
demand; and
(k) have a component of the budget of the governmental entity that:
(i) schedules construction of public facility capital improvements to serve projected growth;
(ii) projects costs of the capital improvements;
(iii) allocates collected impact fees for construction of the capital improvements; and
(iv) covers at least a 5-year period and is reviewed and updated at least every 5 years.
(3) The service area report is a written analysis that must contain documentation of sources and
methodology used for purposes of subsection (2) and must document how each impact fee meets
the requirements of subsection (7).
(4) The service area report that supports adoption and calculation of an impact fee must be
available to the public upon request.
(5) The amount of each impact fee imposed must be based upon the actual cost of public facility
expansion or improvements or reasonable estimates of the cost to be incurred by the governmental
entity as a result of new development. The calculation of each impact fee must be in accordance
with generally accepted accounting principles.
(6) The ordinance or resolution adopting the impact fee must include a time schedule for
periodically updating the documentation required under subsection (2).
(7) An impact fee must meet the following requirements:
(a) The amount of the impact fee must be reasonably related to and reasonably attributable to the
development's share of the cost of infrastructure improvements made necessary by the new
development.
(b) The impact fees imposed may not exceed a proportionate share of the costs incurred or to be
incurred by the governmental entity in accommodating the development. The following factors must
be considered in determining a proportionate share of public facilities capital improvements costs:
(i) the need for public facilities capital improvements required to serve new development; and
(ii) consideration of payments for system improvements reasonably anticipated to be made by or
as a result of the development in the form of user fees, debt service payments, taxes, and other
available sources of funding the system improvements.
(c) Costs for correction of existing deficiencies in a public facility may not be included in the
impact fee.
(d) New development may not be held to a higher level of service than existing users unless
there is a mechanism in place for the existing users to make improvements to the existing system to
match the higher level of service.
(e) Impact fees may not include expenses for operations and maintenance of the facility.
History: En. Sec. 2, Ch. 299, L. 2005; amd. Sec. 1, Ch. 358, L. 2009; amd. Sec. 1, Ch. 276,
L. 2015.
Collection And Expenditure Of Impact Fees -- Refunds Or
Credits -- Mechanism For Appeal Required -- Cause Of Action
7-6-1603. Collection and expenditure of impact fees -- refunds or credits -- mechanism
for appeal required -- cause of action. (1) The collection and expenditure of impact fees must
comply with this part. The collection and expenditure of impact fees must be reasonably related to
the benefits accruing to the development paying the impact fees. The ordinance or resolution
adopted by the governmental entity must include the following requirements:
(a) Impact fees collected for a public facility must be deposited in a special proprietary fund
created specifically for each public facility as identified in the service area report. Funds must be
invested with all interest accruing to the fund. Impact fees collected for a specific public facility may
not be transferred to a different fund and must be spent and accounted for solely for the public
facility as identified in the service area report.
(b) A governmental entity may impose impact fees on behalf of local districts.
(c) (i) If the impact fees are not collected or spent in accordance with the impact fee ordinance or
resolution or in accordance with 7-6-1602, any impact fees that were collected must be refunded to
the person who owned the property at the time the impact fee in question was paid.
(ii) If a written request is submitted as provided for in subsection (9), the governmental entity shall
refund any impact fee due under subsection (1)(c)(i) within 90 days.
(iii) The governmental entity may not impose conditions when issuing a refund pursuant to this
part.
(d) Impact fees may only be used to acquire, construct, or improve the specific public facility
project for which they were collected and may only be expended in compliance with the service area
report.
(2) All impact fees imposed pursuant to the authority granted in this part must be paid no earlier
than the date of issuance of a building permit if a building permit is required for the development or
no earlier than the time of wastewater or water service connection or well or septic permitting.
(3) A governmental entity may recoup costs of excess capacity in existing capital facilities, when
the excess capacity has been provided in anticipation of the needs of new development, by requiring
impact fees for that portion of the facilities constructed for future users. The need to recoup costs for
excess capacity must have been documented pursuant to 7-6-1602 in a manner that demonstrates
the need for the excess capacity. This part does not prevent a governmental entity from continuing
to assess an impact fee that recoups costs for excess capacity in an existing facility. The impact fees
imposed to recoup the costs to provide the excess capacity must be based on the governmental
entity's actual cost of acquiring, constructing, or upgrading the facility and must be no more than a
proportionate share of the costs to provide the excess capacity.
(4) Governmental entities may accept the dedication of land or the construction of public facilities
in lieu of payment of impact fees if:
(a) the need for the dedication or construction is clearly documented pursuant to 7-6-1602;
(b) the land proposed for dedication for the public facilities to be constructed is determined to be
appropriate for the proposed use by the governmental entity;
(c) formulas or procedures for determining the worth of proposed dedications or constructions are
established as part of the impact fee ordinance or resolution; and
(d) a means to establish credits against future impact fee revenue has been created as part of
the adopting ordinance or resolution if the dedication of land or construction of public facilities is of
worth in excess of the impact fee due from an individual development.
(5) Impact fees may not be imposed for remodeling, rehabilitation, or other improvements to an
existing structure or for rebuilding a damaged structure unless there is an increase in units that
increase service demand as described in 7-6-1602(2)(j). If impact fees are imposed for remodeling,
rehabilitation, or other improvements to an existing structure or use, only the net increase between
the old and new demand may be imposed.
(6) This part does not prevent a governmental entity from granting refunds or credits:
(a) that it considers appropriate and that are consistent with the provisions of 7-6-1602 and this
chapter; or
(b) in accordance with a voluntary agreement, consistent with the provisions of 7-6-1602 and this
chapter, between the governmental entity and the individual or entity being assessed the impact
fees.
(7) An impact fee represents a fee for service payable by all users creating additional demand on
the facility.
(8) An impact fee ordinance or resolution must include a mechanism whereby a person charged
an impact fee may appeal the charge if the person believes an error has been made.
(9) Any person or entity who is owed refunded impact fees as provided in this part may request in
writing from the governmental entity that prompt payment be concluded. A person or entity who
submitted a written request pursuant to this subsection may bring a cause of action against the
governmental entity in a court of competent jurisdiction for failure to comply with this part. If a
claimant prevails in an action brought against a governmental entity pursuant to this subsection, the
court shall award the claimant payment of all amounts due, court costs, expert witness fees, and
attorney fees incurred by the claimant. If the claimant is unsuccessful, the court shall award the
governmental entity court costs, expert witness fees, and attorney fees.
History: En. Sec. 3, Ch. 299, L. 2005; amd. Sec. 2, Ch. 358, L. 2009; amd. Sec. 1, Ch. 330,
L. 2023.
Impact Fee Advisory Committee
7-6-1604. Impact fee advisory committee. (1) A governmental entity that intends to propose
an impact fee ordinance or resolution shall establish an impact fee advisory committee.
(2) An impact fee advisory committee must include at least one representative of the
development community. The committee shall review and monitor the process of calculating,
assessing, and spending impact fees.
(3) The impact fee advisory committee shall serve in an advisory capacity to the governing body
of the governmental entity.
History: En. Sec. 4, Ch. 299, L. 2005; amd. Sec. 2, Ch. 276, L. 2015.
Exhibit B-1 Fire Station Planning Memorandum and Response Maps
cmop
FIRE OMPT. A", KALISPELL FIRE DEPARTMENT KALISPELL
Dan Pearce- Fire Chief
Jessica Kinzer- Assistant Fire Chief
Cec Lee- Fire Secretary
Friday, January 24, 2025
TO: Impact Fee Committee
FROM: Daniel Pearce, Fire Chief
RE: Station Planning and Mapping
312 First Ave East/PO Box 1997
Kalispeil, Montana 59901
Phone 406-758-7760
Fax 406-758-7777
As part of the planning efforts for the Fire Department, the city has utilized its ability to map station
distances and response time plans utilizing the in-house GIS mapping systems and calculations. This
system is not an actual response time analysis report as it uses the flood trace module which inputs two
variables, speed of roadways and distance, then produces the map that is referenced in the impact fee
appendix B. This type of map works for general planning purposes however does not accurately portray
actual response times for areas involved. Using actual drive time and historic response time data, we
concluded that the flood trace maps cover a larger area than what is accurate to daily operations. This
constitutes an issue where one station coverage area intersects with another's and may leave a response
area of the timed response of 4- and 8-minute marks as outlined in the NFPA 1.710 even though covered
on the map.
Daniel Pearce, Fire Chief
65
V,
UP
65
m
m
Kalispell Fire Station 64 Response Area
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Exhibit B-2 Population and Projections Memorandum
Ilk
4t
CITY OF #
KALISPELL
MEMORANDUM
To: Susie Turner, Public Works Director
From: Jarod Nygren, Development Services Director
Date: February 4, 2025
Development Services
201 lst Avenue East
Kalispell, MT 59901
Phone: (406) 758-7940
Fax: (406) 758-7739
www.kalispell.com/plannin,a
Subject: Construction Trends/Projections for Commercial Development
I have attached a worksheet showing commercial construction development trends in Kalispell along
with growth projections through the year 2045. In brief, this office anticipates that there will be
approximately 258 additional acres of commercial development within Kalispell city limits from 2025-
2045. This projection utilizes commercial growth trends from 2014-2024 and adds a 2.5% per year
growth rate based on the projected Kalispell population growth rate.
The commercial construction figures used for the above estimates are based on building permits issued
from 2014 — 2024 within the City of Kalispell. Over this 10-year period the city has seen an average of
189,769 square feet of commercial development occur per year. Commercial development is generally
described as non-residential uses including retail, office, medical, governmental, churches, schools and
industrial uses.
This office utilizes a ratio of 20,000 square feet of constructed area per gross acre of developed land. In
other words, a 20,000 square foot building along with the associated required roads, parking,
landscaping and setbacks would consume one acre of land. Using the above number of 189,769 square
feet of constructed area per year, it is estimated that that this would equate to 9.5 acres of commercial
land per year over the past 10 years. Based on 20,000 square feet of constructed area per acre, the
estimate of additional commercial construction is 5,160,000 square feet between 2025 and 2045.
2014-2024
Kalispell Annual Square Footage New Construction
Commercial/Retail
2014 -
92,434
2015 -
106,153
2016 -
115,998
2017 -
133,140
2018 -
79,932
2019 -
36,137
2020 -
47,161
2021 -
4,426
2022 -
44,891
2023 -
26,994
2024 -
23,195
TOTAL
710,461 (71,046 sq. ft./yr. — 3.55 acres/yr.)
Commercial/Office
2014 -
17,426
2015 -
0
2016 -
0
2017 -
0
2018 -
0
2019 -
56,376
2020 -
14,300
2021 -
49,243
2022 -
17,403
2023 -
11,423
2024 -
23,195
TOTAL
189,366 (18,937 sq. ft./Yr. — .95 Acre/yr.)
Industrial
2014 -
0
2015 -
9,565
2016 -
0
2017 -
0
2018 -
19,428
2019 -
55,800
2020 -
54,264
2021 -
0
2022 -
40,110
2023 -
19,305
2024 -
45.950
TOTAL
244,422 (24,442 sq. ft./yr —1.2 Acre/yr.)
Gov.. Health. Public. Church, etc.
2014 -
50,401
2015 -
66,976
2016 -
266,799
2017 -
94,599
2018 -
28,763
2019 -
19,045
2020 -
67,090
2021 -
21,121
2022 -
45,854
2023 -
17,843
2024
74.951
TOTAL 753,442 (75,344 sq. ft./yr.
- 3.8 Acre/yr.)
TOTAL SQUARE FOOT
1,897,691 (189,769 sq. ft./yr. - 9.5 acre/yr)
Notes: 10 years of building permit data from 2014 — 2024, assumes city limits only and 20,000 square feet of structure/acre.
PROJECTIONS SHOWING COMMERCIAL (NON-RESIDENTIAL) DEVEOPMENT IN
KALISPELL 2021-2040
Using a multiplier equal to population growth (2.5% per yr-2025-2045)
2025
— 9.5
2026
— 9.74
2027
— 9.98
2028
— 10.23
2029
— 10.46
2030
— 10.72
2025
— 2030 -
60.63 ac.
2031
— 10.99
2032
— 11.26
2033
— 11.54
2034
— 11.83
2035
— 12.13
2031
— 2035 -
57.75 ac.
2036
— 12.43
2037
— 12.74
2038
— 13.06
2039
— 13.39
2040
— 13.72
2036
— 2040 -
65.34 ac.
2041
— 14.06
2042
— 14.41
2043
— 14.77
2044
— 15.14
2045
— 15.52
2041
— 2045 -
73.9
Total 257.62 acres
Kalispell Population Projections
Prepared by
Kalispell Planning Department
January 2025
2023 (census) - 29,886
2025
- 31,399
1,513
2030
- 35,525
4,126
2035
- 40,193
4,668
2040
- 45,475
5,282
2045
- 51,451
5,976
Total Pop. Growth 219565
Projections based on an assumed growth rate of 2.5% per year after 2023 which will compound for a
72% growth increase over two decades.
City of Kalispell
Fire Impact Fees
Population Projections
Exhibit B-3
Exhibit B-3 Population Projections
Yearly Population
Year
Population'
Growth
Census
2023
29,886
2024
30,633
2025
31,399
1
2026
32,184
785
2
2027
32,989
805
3
2028
33,813
825
4
2029
34,659
845
5
2030
35,525
866
6
2031
36,413
888
7
2032
37,324
910
8
2033
38,257
933
9
2034
39,213
956
10
2035
40,193
980
11
2036
41,198
1,005
12
2037
42,228
1,030
13
2038
43,284
1,056
14
2039
44,366
1,082
15
2040
45,475
1,109
16
2041
46,612
1,137
17
2042
47,777
1,165
18
2043
48,972
1,194
19
2044
50,196
1,224
20
2045
51,451
1,255
20,052
1) 2.5% annual growth rate
Exhibit B-4 Capital Improvement Plan
City of Kalispell
Fire Impact Fees
Capital Improvement Plan
Exhibit B-4
Project Description
Funding
Designation
Estimated cost
FY 24-25
Estimated cost
FY 27-28
Estimated cost FY
28-29
Estimated cost
FY 39-45
C I P Total
Fire Station 63
C
$7,000,000
$7,000,000
Fire Pumper 63
$1,200,000
$1,200,000
Re-Furb Urban InterMlildland
$105,000
$105,000
Fire Station 65
1
$8,000,000
$8,000,000
Fire Pumper Ladder
$1,800,000
$1,800,000
Urban Interface (Wfldland)
$175,000
$175,000
Fire Pu rnper (replace '18)
$1, 300,000
$1,300,000
Fire Purnper 65
$1,500,000
$1,500,000
Total cost/year
$1,305,C)C)C)l
$7,000,000
s3,1CC),OOC)I
$9,675,0001
$21,080,000
Funding Designation
I = Impact fees
C— Combination of funds
L= Levy
Exhibit B-5 Fire Suppression Asset Costs
City of Kalispell
Fire Impact Fees
Fire Suppression Asset Costs
Exhibit B-5
Other
Capital Projects Percent Funding Impact Fee
Station Description Cost $ Impact Fee Sources' Cost $
Residential Ratio 51.00%
Impact Fee Cost? $
Residential Commercial
63
Building
7,000,000
38%
5%
2,527,000
1,288,770
1,238,230
65
Building
8,000,000
100%
5%
7,600,000
3,876,000
3,724,000
Equipment
Fire Pumper
1,300,000
0%
5%
-
Equipment
Fire Pumper/Ladder
1,800,000
0°%
100%
Equipment
Urban Interface (Wildland) Engine
105,000
0%
100%
-
-
-
Equipment
Urban Interface (Wildland) Engine
175,000
100%
5%
166,250
84,788
81,463
Equipment
1 Fire Pumper
1 1,500,000
1 100%
1 5%
1 1,425,0001
726,7501
698,250
Total Cost
1
1 $ 21,080,000
1
1
1 $ 11,718,250
1 $ 6,976.308
1$ 5,7d1,943
1- Funding percent from grants and properly tax levies.
2 - Based on the number of calls. See Exhibit B-6 for CommerciallResidential Service Ratio
Exhibit B-6 Impact Fee Cost Review
S P�
F11RE DFPT- KALISPELL FiREDEPAR TKALISPELL
Dan Pearce. Fire Chief
Jessica Kir'ler- Assistant Fire Chic
Cac Lee- Vfi%e Secretary
Friday, January 24, 2025
TO- linpact. Fee Committee
FROM: Daniel 11,arce, Fire Chief
312 First Ave PAs 6.' I 1C, P. x, 7 9
Kalispell, VIC.-I tana ).Vj') 1
4X- "_877(iO
FaX 406_7 5 6_ i . �'i' I
The Kalispell l'ir. has reviowed the iwii1ber of call, anJ QL_�mmercial
tVI)e OCCUPa_.LJeS. Ll 'I' I II.' I Ile lfttOSt C,I I JtiL "0,- LILC '%Qar, 2"10- 20_ and 2-11-14 we have
I'(11-111d 111,2 calls for service to be 17. -71 ' R, Kli21111411 Occllptl to 9,075
Io 1:l I ca I,.� lor service or 5 1% of the call. volume. Ccmi-_evcia! ()Cc I) I:, I "(i l�l L,633 total calls
fur sen!icc or 4To of the call Volume. AI I dh:a waw Acrived froni C a I s t6r sc•r\ 7L,, records through the
Nii_ I crri I I iiv incidciit R,,,)()o I w! `~� � m (X [[�S I i
.. �: rUK: 11'L;Il11�.11 Comity 911 Rucords.
Daniel Pearce, Fire Chief
Exhibit B-7 Residential
City of Kalispell
Fire Impact Fees
Allowable Residential Impact Fees
Exhibit B-7
Residential Impact Fee Costs 1 $5,976,308
Residential Population Served 2 20,052
Cost per Person $ 298.04
Single Family Residential
Single Family Dwelling Unit- 2.5 persons per Dwelling Unit $ 745.10
Debt Service Credit -
Administration Fee 37.26
Net Single Family Impact Fee
$ 782.36
Recommended Single Family Fee $ 782
Multifamily Dwelling Unit
Multifamily Dwelling Unit - 0.8 per ERU $ 596.08
Debt Service Credit -
Administration Fee 29.80
Net Multifamily Impact Fee $ 625.89
Recommended Multifamily Fee $ 626
1 - From Exhibit B-5
2 - Based population growth from 2025 to 2045 -see Appendix B-3 City of Kalispell Growth projections
Exhibit B-8 Commercial
City of Kalispell
Fire Impact Fees
Allowable Commercial Impact Fees
Exhibit B-8
Commercial Impact Fee Costs 1 $5,741,943
Commercial Acres 2 258
1,000 sq ft of Gross Building Area per Acre 3 20.00
Total Gross Building Area (1,000 sq ft) 5,160
Impact Fee per 1,000 sq ft of Gross Building Area $1,112.78
Debt Service Credit
Administration Fee 55.64
Net Commercial Impact Fee $1,168.42
Recommended Fee4 $1,168
1 - From Exhibit B-5
2 - Based on Construction Trend/Projects for Commercial Development.
See Exhibit B-2
3 - Assumes 20, 000 sq. ft. per acre.
4 - Per 1, 000 sq. ft. of gross building area (or fraction thereof).