Bozeman Mayor gives ‘State of City’ speech

Bozeman’s economy is thriving, even when the national economy is struggling, Mayor Steve Kirchhoff told members of the Bozeman Area Chamber of Commerce Wednesday morning.

By ERIN EVERETT, Chronicle Staff Writer

"Bozeman just keeps growing and expanding as if running as fast as it can toward a less than certain future," Kirchhoff said. "We are exceptional in this regard."

Kirchhoff delivered his "State of the City Address" at the chamber’s quarterly "Eggs and Issues" member breakfast at the Holiday Inn.

The chamber invited the mayor — whose pro-impact fee, anti-big-box store stance has drawn fire from the business community — to open a dialogue about local issues, said David Smith, the chamber’s executive director.

"It’s important that the chamber and local government work together," Smith said.

About 100 business people attended the gathering, where they ate a hearty breakfast and sipped coffee while Kirchhoff touched on issues surrounding Bozeman’s growth, including the cost of living.

Bozeman’s population increased 30 percent between 1990 and 2000, Kirchhoff said, quoting figures from the city planning office. That growth will likely continue, but as a result, the cost of living will remain high, he said.

One businessman took issue with that position.

"That’s contrary to every business model I’ve ever seen," said Clint Field, who runs Diamond Auto Glass, noting that as Bozeman grows, costs should fall.

But growth calls for more services, which costs the city, Kirchhoff said, explaining why water and other service rates have risen.

"It’s necessary to deal with the growth problems that are inevitable," Kirchhoff says. "It seems to me … the bigger a place is, the more you have to pay to live there."

Others have argued that the cost of living is largely due to impact fees, which the city charges developers to address the impacts of development on city services.

Smith asked if the city would ever lower the fees, which are at the center of a long-running lawsuit filed by developers.

"Is there a philosophy on your part as to how much is enough with regard to impact fees?" Smith asked, adding that the city has collected more than $15 million in impact fees since 1999, but hasn’t said how it will spend the money.

The city hasn’t had chance to use the money on street, sewer or water projects, so it wouldn’t make sense to lower the fees now, Kirchhoff said, adding that fees haven’t been spent because the the lawsuit is unresolved.

"We haven’t had the opportunity to emerge as savvy collectors of impact fees," he said. "We don’t know what adjustments we could make in the impact-fee program because we haven’t had a chance to spend them."

http://bozemandailychronicle.com/articles/2003/03/06/news/kirchhoffbzbigs.txt