H5. Res. 6194, Street Maintenance Assessment Intent to Hold Public HearingCITY OF
KALISPELL
MEMORANDUM
To: Doug Russell, City Manager
Cc: Johnna Prebble, City Attorney
From: Susie Turner, Public Works Director
Subject: Resolution 6194 - Resolution of Intent and Call for Public Hearing on
Amendments to the Special Street Maintenance Assessment
Meeting Date: May 6, 2024
This item considers a Resolution of Intent calling for a public hearing on a proposal to adopt an
increase in the Special Street Maintenance assessments. This matter was discussed with City
Council during the work sessions on February 12th and April 22, 2024, following an internal
review that revealed the Special Street Maintenance revenues were insufficient to maintain
existing maintenance and operational levels. Additionally, increasing costs have created financial
challenges in continuing the pavement preservation and equipment replacement programs. The
proposed assessment increase incorporates revenue requirements to generate adequate funds
through fiscal year 2031 to:
• Maintain the same quality of service for routine street and traffic operations including
traffic signs and signals, pavement marking, winter plowing, leaf collection, sweeping,
and pavement preservation operations.
• Funds for limited capital projects
• Funds to maintain the equipment replacement plan
• Funds to maintain the pavement preservation program
• Maintain financial policy targets, i.e. reserve and operating balances, debt service
coverage
The date of the public hearing set by this resolution of intent is June 3,2024, and the resolution is
limited to advising Council's intent to act upon the proposed Special Street Maintenance
assessment amendments, making the material available to the public, and seeking public
comment at the hearing. Action by the Council shall take place thereafter at a subsequent
council meeting.
Material and communication regarding the Special Street Maintenance assessment amendment
will be made available to the public through the following avenues:
• Legal Notice(s) in the Newspaper
• City Website (www.kalispell.com)
• Contacting Public Works at 406-758-7720 or at publicworkskkalispell.com
201 1" Avenue E Phone (406)758-7720
Po Box 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 1 www.kalispell.com
RECOMMENDATION: It is recommended that Council approve Resolution 6194, a resolution
of intent setting a date of June 3, 2024, for a public hearing on a proposal to increase assessments
on real property within the City of Kalispell for costs of the Special Street Maintenance District.
ALTERNATIVES: Council can elect to amend or reject the resolution.
ATTACHMENTS: Resolution 6194 - Resolution of Intent
Legal Notice of Public Hearing on Proposed Special Street Maintenance
Assessment Increase
RESOLUTION NO. 6194
A RESOLUTION SETTING A DATE FOR PUBLIC HEARING ON A PROPOSAL TO
ADOPT AN INCREASE IN ASSESSMENTS ON REAL PROPERTY WITHIN THE
CITY OF KALISPELL FOR THE COSTS OF THE STREET MAINTENANCE
DISTRICT (SPECIAL MAINTENANCE DISTRICT NO. 1).
WHEREAS, a City of Kalispell review has revealed the Special Street Maintenance revenues
are insufficient to maintain existing maintenance and operational levels and
increasing costs have created financial challenges in continuing the pavement
preservation and equipment replacement programs; and
WHEREAS, the proposed assessment increase incorporates revenue requirements to generate
adequate funds through fiscal year 2031; and
WHEREAS, the City Council, in order to adequately fund the City's Special Street
Maintenance revenues, is evaluating the present and proposed new assessments,
as shown on the attached Exhibit "A"; and
WHEREAS, prior to initiating any increase in the assessments, the City shall, as required
pursuant to Section 69-7-111, Montana Code Annotated, hold a public hearing
on the matter after giving due and proper notice of said hearing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS:
SECTION 1. The City Council of the City of Kalispell shall hold a public hearing on the
proposed street assessment amendments on the 3rd day of June, 2024, at
7:00 p.m., in the Council Chambers, 201 First Avenue East, Kalispell,
Montana.
SECTION 2. The City Clerk and City Attorney are hereby authorized and directed to
make, publish, and distribute notices of said Public Hearing in conformity
with Section 69-7-111, MCA.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, ON THE 6TH DAY OF MAY, 2024.
Mark Johnson
Mayor
ATTEST:
Judi Funk
Deputy City Clerk
EXHIBIT A
CITY OF KALISPELL
NOTICE OF PUBLIC HEARING ON STREET MAINTENANCE ASSESSMENT INCREASE
NOTICE IS HEREBY GIVEN, that on the 3rd day of June 2024, at 7:00 p.m., in the
Council Chambers, City Hall, 201 1st Avenue East, Kalispell, Montana, the City Council of the
City of Kalispell shall hold a Public Hearing on a proposal to increase assessments on real
property within the City of Kalispell for the costs of the Street Maintenance District (Special
Maintenance District No. 1).
Any person wishing to address the proposed assessment rate increase may appear at this
hearing and make oral statements or present the same in writing. Written comments may also be
submitted for Council consideration by delivering the same to the City Clerk at 201 First Avenue
East, Kalispell, MT 59901, or by email to publiccomment@kalispell.com prior to the hearing.
If there are questions that might be answered by telephone, please call (406) 758-7720.
Proposed Street Maintenance District Assessments
A programmed assessment increase over seven years, as shown in the table below, should
maintain the level of service currently enjoyed by the users of the city's street system through the
fiscal year 2031, thereafter starting in fiscal year 2032 an increase will be applied annually to
match the pervious years average construction cost index.
Categories
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
FY 24
FY 25
FY 26
FY 27
FY 28
FY 29
FY 30
FY 31
15%
10%
7%
7%
5%
3%
3%
Increase
Category
Residential
1 and 2'
Assess/sq.11.
0.017776
0.020442
0.022487
0.024061
0.025745
0.027032
0.027843
0.028678
Commercial
Category
Up To 90%
0.026226
0.030160
0.033176
0.035498
0.037983
0.039882
0.041079
0.042311
3
Covered
Assess/s .11.
Commercial
Category
100%
0.027637
0.031783
0.034961
0.037408
0.040027
0.042028
0.043289
0.044587
4
Covered
Assess/s .11.
1. Category 1. (Residential) Vacant land up to 2 acres then capped at 2 acres. Category 2. Residential land up to '/z acre.
Residential land over'/2 acre capped at'/2 acre.
Based upon projections, the average residential property with the size of 8,000 square feet would
pay the following street maintenance assessment:
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
FY 24
FY 25
FY 26
FY 27
FY 28
FY 29
FY 30
FY 31
Monthly
Accrual
$11.85
$13.63
$14.99
$16.04
$17.16
$18.02
$18.56
$19.12
Annual
Assess.
$142.21
$163.54
$179.90
$192.49
$205.96
$216.26
$222.74
$229.42
Based upon projections, commercial property, up to 90% covered at 20,000 square feet, would
pay the following street maintenance assessment:
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
FY 24
FY 25
FY 26
FY 27
FY 28
FY 29
FY 30
FY 31
Monthly
Accrual
$43.71
$50.27
$55.29
$59.16
$63.31
$66.47
$68.47
$70.52
Annual
$524.52
$603.20
$663.52
$709.96
$759.66
$797.64
$821.58
$846.22
Assess.
Based upon projections, commercial property, 100% covered at 20,000 square feet, would pay
the following street maintenance assessment:
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
FY 24
FY 25
FY 26
FY 27
FY 28
FY 29
FY 30
FY 31
Monthly
$46.06
$52.97
$58.27
$62.35
$66.71
$70.05
$72.15
$74.31
Accrual
Annual
$552.74
$635.66
$699.22
$748.16
$800.54
$840.56
$865.78
$891.74
Assess.
Judi Funk
Deputy City Clerk
Publish: 5/12/2024
5/ 19/2024