No change to impact fees

Whitefish’s impact fees for new construction will remain steady despite recommendations from an advisory committee to eliminate three of the seven fees.

The Whitefish City Council on a split vote Feb. 4 decided to make no changes in the city’s impact fee schedule. Mayor John Muhlfeld broke a 3-3 tie with council members Chris Hyatt, Bill Kahle and Phil Mitchell in opposition.

The Impact Fee Advisory Committee had recommended the city eliminate the City Hall, Emergency Service Center, and Parks Maintenance Building impact fees as a way to encourage more growth.

The committee had recommended that Whitefish retain its water, wastewater, stormwater and paved trail fees.

The impact fees are one-time charges for new development that increases the demand for city services. It applies to new units in subdivisions as well as new homes built on single lots and some remodeling.

Muhlfeld said there was no evidence that Whitefish’s impact fees have hindered growth, and he noted that the city’s total fees are only slightly higher per home — $86 — than similar fees in Kalispell.

In 2012, Whitefish charged $6,443 in impact fees per newly constructed single-family residence.

That includes $2,314 for water, $1,864 for wastewater, $210 for stormwater, $813 for the Emergency Services Center, $771 for City Hall and $29 for the park maintenance building.

Kalispell charges a total of $6,357 in impact fees for a new home while Columbia Falls charges $4,731.

During public comment, committee member Myra Appel argued that the fees enhance the perception that Whitefish is too expensive, and the perception that the city charges too many small fees.

Turner Askew said the impact fees on top of other permit fees add to the overall expense of building here.

“If we look at all of our costs, you may find we are more expensive,” Askew said.

Rebecca Norton said eliminating impact fees as an incentive to boost growth doesn’t work.

“I’d rather not pay for [those fees] as a citizen,” Norton said.

Councilor John Anderson noted his personal experience with building a home in Whitefish.

He chose to build here because, “I like being in Whitefish,” he said. “It wasn’t fun to write a check for those fees, but I did it for other reasons. [The fees] didn’t play a role in why I built here.”

He went on to note that Whitefish’s new construction market has remained relatively stable compared to other cities.

“If it ain’t broke, don’t fix it,” he said.

Councilman Frank Sweeney said he didn’t believe the fees were effecting the rate of new construction.

“I do see that those fees are helping pay for projects that benefit this community,” he said.

The city’s impact fees first went into effect in November of 2007.