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Resolution 6194 - ROI - Street Maintenance AssessmentsRESOLUTION 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 7-12-4426, 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 7-12-4426, 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. L..,- 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 1 st 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. Current Proposed Proposed Proposed Proposed Proposed Proposed Proposed Categories 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 0.017776 0.020442 0.022487 0.024061 0.025745 0.027032 0.027843 0.028678 1 and 2' Assess/sq.ft. 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 .ft. Commercial Category 100% 0.027637 0.031783 0.034961 0.037408 0.040027 0.042028 0.043289 0.044587 4 Covered Assess/s .ft. 1. Category 1. (Residential) Vacant land up to 2 acres then capped at 2 acres. Category 2. Residential land up to' 2 acre. Residential land over''/z 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