02. Resolution 5546 - Repealing Transportation Impact Fees and Budget Amendment for ReinbursementCharles A. Harball Office of City Attorney
City Attorney 201 First Avenue East
P.O. Box 1997
Kalispell, NIT 59903-1997
TO:
FROM:
SUBJECT:
MEETING DATE:
Mayor Tammi Fisher
and Kalispell City Council
Charles Harball, Interim City Manager
Tel 406.758.7709
Fax 406.758.7771
charball@kalispell.com
Resolution No. 5546 — a Resolution Eliminating Kalispell
Transportation Impact Fees and Directing Reimbursement of Fees
Collected
February 6, 2012 — Regular Council Meeting
BACKGROUND: On March 9, 2009, the Kalispell City Council, passed Resolution No. 5346,
approving the imposition of transportation impact fees and began the collection thereof beginning
April 1, 2009. This was done under the authority of state law at §§7-6-1601 to 7-6-1604, MCA.
The Kalispell Impact Fee Committee reviewed and considered the transportation impact fees
after two years in service and submitted a recommendation to the City Council that the schedule
of transportation fees be continued and increased to a level to reflect the experience of cost
inflation. On January 23, 2012, at its regularly scheduled meeting, the City Council considered
and debated whether to continue imposing the fees, to amend the schedule or collection of fees or
to eliminate the fees. A motion was offered and accepted to bring the matter forward as a
resolution before the Council on February 6, 2012 to eliminate the transportation impact fees and
refund all money previously collected. The City Clerk properly caused notice to be published for
a public hearing to be held at the regularly scheduled city council meeting on February 6, 2012
for the purpose of amending the budget in the event that City Council passes the resolution to
eliminate the transportation impact fees and a refund program is instituted.
RECOMMENDATION: That City Council give consideration to, debate, and act on
Resolution No. 5546.
FISCAL IMPACTS: The purpose of the transportation impact fees is to create a capital fund to
pay for needed transportation infrastructure in the future. If this source is eliminated, the
Council should consider and act to create other revenue sources to pay into this needed fund.
Respectfully submitted,
Charles Ha al e/rim City Manager
It bIll KIA WON►t ,r
i i is ., ri► i
WHEREAS, pursuant to §§7-6-1601 to 7-6-1604, MCA granting to municipalities the authority
to impose impact fees to provide additional funding for capital improvements to
transportation facilities, the Kalispell City Council, on March 9, 2009, by passing
Resolution No. 5346, approved the imposition of transportation impact fees and
began the collection thereof beginning April 1, 2009; and
WHEREAS, on March 21, 2011 the City Council passed Resolution No. 5489 continuing the
transportation impact fee imposition at the rate of 75% of the scheduled fee as set
by Resolution No. 5346; and
WHEREAS, pursuant to the requirements of state law cited above, the Kalispell Impact Fee
Committee reviewed and considered the transportation impact fees after two years
in service and submitted a recommendation to the City Council that the schedule
of transportation fees be continued and increased to a level to reflect the
experience of cost inflation; and
WHEREAS, the City Council has considered the recommendations of the Kalispell Impact Fee
Committee as well as the numerous public comments over the period of time in
which the transportation impact fees have been in effect and on January 23, 2012,
at its regularly scheduled meeting, it considered and debated whether to continue
imposing the fees, to amend the schedule or collection of fees or to eliminate the
fees. A motion was offered and accepted to bring the matter forward as a
resolution before the Council on February 6, 2012 to eliminate the transportation
impact fees and refund all money previously collected; and
WHEREAS, the City Clerk has properly caused notice to be published for a public hearing to
be held at the regularly scheduled city council meeting on February 6, 2012 for
the purpose of amending the budget in the event that City Council passes the
resolution to eliminate the transportation impact fees and a refund program is
instituted; and
WHEREAS, said public hearing was duly held by the City Council at a public meeting thereof
in the Kalispell City Hall beginning at 7:00 o'clock P.M. on February 6, 2012,
and all persons appearing at said hearing and expressing a desire to be heard were
heard, and all written comments thereon furnished to the City Clerk at said
meeting prior thereto were given consideration by the Council; and
WHEREAS, based upon the evidence before the Council, including Impact Fee Committee and
public comment, written and oral, the City Council finds as follows:
1) The Kalispell area has experienced a significant decrease in private
investment and a loss of jobs since the time that the transportation impact
fees began to be imposed; and
2) The Kalispell City tax base and job creation is benefitted by private
investment in property located in the City of Kalispell; and
3) The transportation impact fees currently imposed by the City of Kalispell
may be presenting a barrier to private investment in property located
within the City of Kalispell; and
4) The benefits to the City of Kalispell from an expanded tax base and jobs
creation from private investments exceed the benefits it receives from
transportation impact fees.
AOW, THEREFORE, BE IT RESOLVED BY THE CITY COTIINCIL OF TAE CITT OF
KALISPELL AS FOLLOWS:
SECTION I That the transportation impact fees and schedules previously adopted and
implemented are hereby eliminated and the city staff is hereby directed
to adopt and implement a refund program as required by state law.
SECTION U. That the 2011-2012 fiscal budget for the City of Kalispell is hereby
amended for the Transportation Impact Fee Account 2500-421-430240-
720 to allow for the refund of all monies paid into the account as
required by state law.
ATTEST:
Theresa White
City Clerk
Tanuni Fisher
Mayor