G. Special Street Maint Assessment Public HearingCITY OF
KALISPELL
To: Doug Russell, City Manager
From: Susie Turner, Public Works Director
Re: Public Hearing on Adjustment Increases to the Special Street Maintenance
Assessment
Meeting Date: June 3, 2024
BACKGROUND: Kalispell Street Maintenance Division and the Traffic, Signs, and Signals
(TSS) Division are supported by the Special Street Maintenance Fund. The maintenance and
operational services provided by each Division are summarized in the table below.
• Pavement Preservation and Replacement
• Road Grading, Ditch Maintenance and
Mowing
• Sweeping
• Leaf Collection
• Snow Removal, Winter Deicing and
Sanding
• Manhole Collars
• Sidewalk Maintenance
• Traffic Signs and Regulation
• Traffic Counts
• Signals - Traffic, Pedestrian, Cabinet
Operations, Intersection Detection
• Luminaires (streetlights), Decorative
Street Lights
• Pavement Markings (Long lines,
Symbols, Crosswalks, Curbs)
After carefully analyzing the fund's revenues and expenses over the upcoming years, it became
evident the financial stability of the fund requires review as part of the FY 25 Budget process.
The revenues generated from the current assessment will not be sufficient to sustain the current
level of maintenance and operational services beyond FY 26. Furthermore, rising costs have
posed financial difficulties in maintaining both the pavement preservation program and
equipment replacement program.
On Febuary 12th and April 22nd, staff presented, and City Council participated in work session
discussions to review the status of the Fund's operational and maintenance services, programs,
and capabilities, equipment replacement schedules, and financial stability. As a result of the
work session meeting, Council directed staff to proceed with public outreach and setting a public
hearing date to receive comments on the proposed assessment increase. The proposed
assessment increase incorporates revenue requirements to generate adequate funds to:
• Maintain the same quality of service for routine street and traffic operations.
• Construct limited capital projects.
• Maintain the equipment replacement plan.
• Maintain the pavement preservation program.
• Maintain financial policy targets, i.e. reserve and operating balances, and debt service
coverage.
Upon scheduling the Public Hearing at the May 61h Council meeting, an initiative was started to
educate the community about the proposed assessment increase. Several legal notices of the
proposed assessment increase were published in the newspaper, the City's website offered
educational information on the subject, and a news flash was sent out to `notify me' subscribers.
As of May 29th, there have been no comments received on the amendments to the Special
Streets Maintenance Assessment.
The June 3rd Public Hearing is limited to listening to the public regarding the Council's intent to
act upon the proposed special street maintenance assessment increase. Action by the Council
shall take place thereafter at a subsequent Council Meeting.
ATTACHMENTS: Street Maintenace Assessment Increase Legal Notice
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 publiecomment@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