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February 7, 2020 To Whom It May Concern: Over the past year, it has been recognized that an increase in water and sewer rates is necessary to effectively run utility operations and continue investing in our infrastructure today and in the future. The attached notifications refer to the City Council’s intent to consider adjustments to: 1. Water and Sewer (Wastewater) Rate Schedules, and 2. Water and Wastewater Impact Fees Water and Sewer Rate Schedules: In 2019, the City procured HDR Inc, to perform a water and sewer rate study. The rate study incorporates a revenue requirement analysis, cost of service analysis, and development of corresponding rate structures for the next seven years to generate adequate funds in order to: • Maintain the same quality of water and sewer service, • Fund water and sewer (collection and treatment plant) capital projects – rehabilitation, replacement, regulatory, and new growth projects, • Fund an equipment replacement plan, and • Maintain financial policy targets, (i.e. reserve and operating balances, debt service coverage). A copy of the Executive Summary for both the Water Rate Study and the Wastewater Rate Study, amendments to the Water and Sewer Regulations, and additional information including frequently asked questions (FAQ) on the proposed adjustments can be obtained from the city’s website at the following link: Water and Wastewater Impact Fees: The City of Kalispell currently imposes Water and Wastewater impact fees on developments that create a new demand on the City’s water and wastewater utility facilities. Water and Wastewater impact fees differ from the City’s Water and Sewer Rates in that an impact fee is a one-time fee imposed on a new development project at the time of construction/service. Water and Wastewater impact fees help finance the capital improvements needed to serve and accommodate new customer growth (i.e. wells, storage tanks, transmission mains, collection mains and Treatment Plant tank upsizes). The City’s Water and Wastewater impact fees were developed to be compliant with Montana impact fee legislation which the City is mandated to review and update every five years. The current review produced the October 2019, Final Water and Wastewater Impact Fee Report. The updated report includes the calculations, methods, assumptions, and the calculated cost-based fees. A copy of the final report can be obtained from the city’s website at the following link: The enclosed notice provides information regarding the public hearing on this matter. Sincerely, Aimee Brunckhorst, CMC City Clerk / Communications Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7756 www.kalispell.com [EMAIL REDACTED]