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Impact Fees Discussion & Action Meeting

County Commission considers Miles City request for Impact fees while negotiating the annual Inter-Local Agreement.

The County Commission has been having continuing discussions with Mayor Dwayne Andrews, City Council Members and concerned city department heads on the Inter-Local agreement. The Inter-Local agreement is an annual document between Custer County and Miles City that outlines compensation for shared services for the upcoming fiscal year.

Prior to July 24 Mayor Andrews had clarified the request of 40% of the $6.2 million dollar impact fees that Custer County will receive from Portland General on the windfarm in northern Custer County. Mayor Andrews stated that the request should have been $40,000. On July 24, Mayor Andrews and other city officials met with the County Commission. The County Commission offered $100,000 of the impact fees to the City of Miles City with no expectation of any other additional impact fees. Mayor Andrews stated he would consider the request.

On August 5, Mayor Andrews came to the County Commission. Mayor Andrews stated that Miles City needs $700,000 this year and $500,000 next year from the impact fees. Mayor Andrews along with union representation, department heads from the police and fire departments stated that without the County sharing the onetime impact fees, there would be negative impacts to their departments. This group indicated that the Miles City Police Department would lose three positions (one position is currently vacant one office is resigning which leaves one officer to be laid off), Miles City Fire/Ambulance will lose three positions all of which are currently vacant.

The County Commission suggested discussing contracting law enforcement with the Sheriff’s Office and combining City and County Fire and establishing an Ambulance service. The Commissioners also requested some assurance that there is a plan in place to manage the city’s finances in a more fiscally responsible manner. Mayor Andrews assured the County Commission that he was going to hold the department heads accountable to staying within their annual budgets.

The Custer County Commission has set August 21, 2024 at 10:30 am in the main District Courtroom for discussion and action on this request.

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