I4. Res. 6203, Special Street Maintenance Assessment IncreaseCITY OF
KALISPELL
To: Doug Russell, City Manager
From: Susie Turner, Public Works Director
Re: Special Street Maintenance Assessment Increase
Meeting Date: June 17, 2024
BACKGROUND: The Kalispell Street Maintenance Division and the Traffic, Signs, and
Signals (TSS) Division are funded through the Special Street Maintenance Fund. This fund
supports the maintenance of 142 miles of roads, 23 miles of alleys, over 5,000 signs, 10 traffic
signals, and 46 pieces of large equipment, and as the largest division within Public Works, it
employs 20 staff members. The maintenance and operational services provided by each Division
are summarized in the table below.
• Pavement Preservation and Replacement
• Roadway Patching and Pothole Repairs
• 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
• Traffic Controls and Traffic Lights
• Signals - Traffic, Pedestrian, Cabinet
Operations, Intersection Detection
• Pavement Markings (Long lines,
Symbols, Crosswalks, Curbs)
A review of the projected revenues and expenses for the upcoming years shows that current
assessment revenues won't sustain maintenance and operations beyond FY 26. Additionally,
market increases in material and equipment costs have created challenges for maintaining the
pavement preservation and equipment replacement programs.
During the February 12th and April 22nd work session, staff presented information on operational
and maintenance services, programs, equipment replacement schedules, pavement preservation,
financial stability, and proposed assessment increase. Following these sessions, the Council
directed staff to proceed with public outreach and to set a date for a public hearing to receive
comments on the proposed assessment increase. This proposed increase aims to generate
sufficient revenue to:
• Maintain the current quality of service for routine street and traffic operations.
• Construct limited capital projects, including equipment housing, de-icer tanks, and
updates to traffic control/signals.
• Uphold the equipment replacement schedule to ensure operational readiness for necessary
operations and maintenance.
• Sustain the pavement preservation/replacement program for roads and alleys, completing
necessary improvements to maintain the life cycle of fair -to -good roads and repairing
poor -to -very -poor roads.
• Achieve financial policy targets, ensuring year-end balances equivalent to four months'
worth of operations or 35% of the annual operational expenses.
A public hearing was held at the June 3, 2024, Council Meeting, along with public outreach
efforts to educate the public on the proposed assessment adjustment. 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 June 12, 2024, there have been no comments received on the amendments to the Special
Streets Maintenance Assessment.
ACTION REQUESTED: Motion and vote to approve Resolution 6203, a resolution to amend
the Special Street Maintenance assessment rate as provided in the attached resolution.
ALTERNATIVE: As suggested by City Council.
ATTACHMENTS: Resolution 6203
Legal Notice
Assessment increase with caps remaining in place:
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
2032-
Categories
FY 24
FY 25
FY 26
FY 27
FY 28
FY 29
FY 30
FY 31
Future
C
15%
10%
7%
7%
5%
3%
3%
oI
IriC%
a
Category
0.017776
0.020442
0.022487
0.024061
0.025745
0.027032
0.027843
0.028678
TBD
1
Category
0.017776
0.020442
0.022487
0.024061
0.025745
0.027032
0.027843
0.028678
TBD
2
Category
0.026226
0.030160
0.033176
0.035498
0.037983
0.039882
0.041079
0.042311
TBD
3
Category
0.027637
0.031783
0.034961
0.037408
0.040027
0.042028
0.043289
0.044587
TBD
4
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'/z acre
Category 3. Commercial Up To 90% Covered
Category 4. Commercial 100% Covered
CCI = pervious years average construction cost index, To be Determined (TBD) annually thereafter starting in FY
2032.
2
RESOLUTION NO. 6203
A RESOLUTION 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 study of the City of Kalispell Street Maintenance Division has determined that
the current structure will not provide the finances to maintain the same level of
service for the upcoming fiscal years; and
WHEREAS, Public Works staff has determined that the proposed assessment increase
incorporates revenue requirements to generate adequate funds through fiscal year
2031; and
WHEREAS, on May 6, 2024 the City Council passed Resolution No. 6194 stating its intent to
adopt the recommendations of city staff and set a public hearing for June 3, 2024
on the proposed amendments to the assessment of real property in the street
maintenance district of the City of Kalispell and gave the necessary Notice thereof
as required by Section 7-12-4426, MCA; and
WHEREAS, the public hearing was duly held by the Kalispell City Council at a public meeting
thereof in the Kalispell City Hall beginning at 7:00 o'clock P.M. on June 3, 2024,
and all persons appearing at the hearing and expressing a desire to be heard were
heard, and all written comments thereon furnished to the City Clerk at the meeting
prior thereto were also given full consideration by the Council; and
WHEREAS, the Kalispell City Council hereby finds the proposed amended assessment on real
property in the street maintenance district to be reasonable and just; and
WHEREAS, the Kalispell City Council therefore considers it proper and necessary at this time
to amend the assessment on real property imposed for street maintenance to its
inhabitants and other persons served by the City of Kalispell Special Street
Maintenance District.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL:
SECTION 1. That the assessment on real property applicable to the City of Kalispell
Special Street Maintenance District as set forth in Exhibit "A", attached
hereto and by this reference made a part hereof, are found to be just and are
hereby established and adopted to be imposed for the street maintenance
service to the inhabitants of the City of Kalispell as set forth in Exhibit "A".
SECTION 2. This decision is final ten (10) days after filing of this Resolution with the
City Clerk.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 17TH DAY OF JUNE, 2024.
Mark Johnson
Mayor
Attest:
Aimee Brunckhorst, CMC
City Clerk
Exhibit A
Assessment increase with caps remaining in place:
Current
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
Proposed
2032-
Categories
FY 24
FY 25
FY 26
FY 27
FY 28
FY 29
FY 30
FY 31
Future
% Increase
15%
10%
7%
7%
5%
3%
3%
CCI %
Category 1
0.017776
0.020442
0.022487
0.024061
0.025745
0.027032
0.027843
0.028678
TBD
Category 2
0.017776
0.020442
0.022487
0.024061
0.025745
0.027032
0.027843
0.028678
TBD
Category 3
0.026226
0.030160
0.033176
0.035498
0.037983
0.039882
0.041079
0.042311
TBD
Category 4
0.027637
0.031783
0.034961
0.037408
0.040027
0.042028
0.043289
0.044587
TBD
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 ''/z acre capped at''/z acre
Category 3. Commercial Up To 90% Covered
Category 4. Commercial 100% Covered
CCI = pervious years average construction cost index, To be Determined TBD annually thereafter starting in FY 2032.
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 1stAvenue 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 (PO Box 1997, 59903), or by email to publiccommentkkalispell. com
prior to the hearing.
Proposed street maintenance district assessments include programmed assessment increases over
seven years which 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.
Tables showing the proposed assessment increase, and the average residential and commercial
assessment payment amounts is available for review online at www.kalispell.com/679/Council-
Public-Hearings, or in the Clerk's Office at City Hall, 201 First Avenue East, or calling to
request. If there are questions that might be answered by telephone, please call (406) 758-7720.
Judi Funk, Deputy City Clerk
Publish: May 12, and May 19, 2024