3. Impact Fees PolicyCity of Kalispell
Charles A. Harball Office of City Attorney
City Attorney 312 First Avenue East
P.O. Box 1997.
Kalispell, MT 59903-1997
MEMORANDUM
Date: August 9, 2007
To: Names H. Patrick, City Manager
From: Charles A. Harb all, City Attorney
Tel 406.758.7708
Fax 406.758.7771
charbalI kalispell.com
Subject: Proposed Impact Fee Policy Regarding Annexation of Improved
Properties
Issue: what impact fees will be imposed on properties annexing into
the City of Kalispell which contain improvements at the time of annexation?
Discussion: By definition, impact fees are to be imposed on additional
improvements and uses that create a demand upon city services in excess of existing
demands. These revenues are then used to pay for the capital needs created by
such additional demand. Therefore the analysis that would be applied to the
annexation of a property into the City that consists of certain improvements will be to
determine what additional demands will be placed on City services that did not exist
before the annexation.
• wastewater: was the property already served by the City's wastewater
conveyance or treatment system? If not, the owner of the property
would pay for the impact fee for the service to the Kalispell Building
Department at the time the property is connected to the service.
• water: Was the property already served by the City's water system? If
not, the owner of the property would pay for the impact fee for the
service to the Kalispell Building Department at the time the property is
connected to the service.
• stormwater: Were the improvements in existence in December 2006
and included in the drainage basin study used to determine the
stormwater impact fees? If not, the owner of the property would pay the
impact fee for this service to the Kalispell City Building Department at
the time the property is connected to wastewater or water service.
Council may wish to consider allowing the property owner to enter into
an agreement with the City to have such fee paid as an assessment over
a period of time.
Impact Fee Policy on Annexed Improved Properties
August 9, 2007
Page -- 2
• Police: Did the City of Kalispell have the primary law enforcement
jurisdiction of this property at the time of annexation? If not, the owner
of the property would pay the impact fee for this service to the Kalispell
City Building Department at the time the property is connected to
wastewater or water service. Council may wish to consider allowing the
property owner to enter into an agreement with the City to have such
fee paid as an assessment over a period of time.
• Fire: Did the City of Kalispell have the primary fire protection
jurisdiction of this property at the time of annexation`? If not, the owner
of the property would pay the impact fee for this service to the Kalispell
City Building Department at the time the property is connected to
wastewater or water service. Council may wish to consider allowing the
property owner to enter into an agreement with the City to have such
fee paid as an assessment over a period of time.
• Transportation: [Assuming a transportation impact fee is adopted.]
Is there a proposed change of use for the property and improvements
following annexation? If so, the transportation impact fee would be paid
to the Kalispell City Building Department at the time of the issuance of
a building permit if a building permit is required for the development or
at the time of wastewater or water service connection. If there is not a
change in the use for the property, there can be shown no impact to the
City's transportation system that did not exist before the annexation.
Therefore no transportation impact fee will be due upon annexation.
Any change of use of the property, thereafter, that increases the
demands upon the City's transportation system will trigger the
imposition of the transportation impact fee.
Office of City Attorney
City of Kalispell