Whitefish councilors discuss compensation plan, garbage rates

At a work session last week, the Whitefish City Council discussed council compensation and garbage rates. 

Whitefish voters last November chose to make it possible for the City Council to be compensated. The nature of that compensation could be a salary, stipend, health insurance, per diem or mileage allowance. 

Currently, councilors receive benefits including up to $500 for an electronic device each term, $150 per quarter for a cellphone, a Wave gym membership and the ability to opt in to the city’s health insurance program.

In January, after studying compensation for councils in other Montana municipalities, the council directed staff to prepare three options for a compensation package. 

The first option was a salary, annual stipend and health benefits all based on Kalispell’s package. The councilors in Kalispell earn $5,000 and the mayor, $9,000 annually. Councilors have a $900 stipend, and the mayor has a $1,800 stipend. The city pays 100% of the health insurance benefits for the individuals serving. 

The next option was the same but included Columbia Falls’ numbers. Council members in Columbia Falls receive a salary of $2,400, the mayor receives $4,800, they get no stipend, and they pay 100% of the monthly premiums for all health insurance benefits. 

The final option was to compensate the council with either health insurance or a salary. 

Topics of discussion included the population of comparable cities, unique conditions in Whitefish, and a suggestion to attach the value of the compensation with the cost of buying insurance. 

“Salary only makes the most sense to me,” Councilor Andy Feury said. “Going forward, there will be people who do not need health insurance.” 

The issue of a stipend was raised and whether the council felt they needed money for phones and electronic devices. 

Councilor Ben Davis suggested the start date be Jan. 1, 2026. Councilor Steve Qunell said the start date should be aligned with health insurance. It was decided by the majority that compensation would begin July 1, 2025. 

The council directed staff to draft a resolution for a public hearing to compensate council salary equivalent to health insurance for a single person, $11,455, plus a $3,000 stipend for council and $6,000 for mayor for a cellphone and tablet.  

Members of the council would have the option to elect to utilize their salary for health care. 

This issue will have a public hearing at a date to be determined. 

City Manager Dana Smith reported the need for a significant garbage rate increase to ensure the sustainability of the solid waste fund during 2025 budget meetings months ago. 

Currently, the solid waste fund is in the negative, essentially taking a loan from the city’s general fund, according to the report. 

Smith noted that garbage rates have not been adjusted since June 2022, even though Republic Services has a contractual 3.25% rate annual increase and the city’s administrative costs have also increased.  

Smith said the city has attempted to contact Republic Services repeatedly and has received little to no response, leading to a belief that they have breached the contract. 

Residential customers account for approximately 4,142 accounts while commercial accounts total approximately 469.  

“The city is the customer service person,” Smith said. “We are also doing the billing.” 

The current monthly charge for a bear-resistant bin is $17.25. The proposed fee is $20.34. The change represents an 18% increase. The annual increase for a resident would be $37.08 

“We are the only community that I could find that requires garbage, does not provide garbage as a service and contracts with a company,” Smith said. 

Other towns require garbage and offer it as a service. Others do not require garbage and residents directly hire companies. 

After discussing options, the council directed staff to move forward with the rate increase for garbage service. The date of the public hearing on this item has not been determined. 

Councilor Frank Sweeney suggested staff “send a notice of default for termination to Republic Services, subject to 30 days to get it repaired.” 

“We have no other leverage here,” he said. “Just give them notice that they are in breach."