8. Ordinance 1580 - Additional Storm Drainage Assessment Rate Category - 1st ReadingPubll'c WtOrks D4�apartm%elnt
:..:Post Office Box 1997, Kalispell. Montana 5 99015-1997 Telephone 8-783 1.
O: Charles Hair , City Attorney
FROM: James C. Hansz, '.E., Director of PublicWorks City Engi
SUBJECT: Additional Street and Storm Drainage Assessment Rate
ATE: 26 June 2006
The City Street Maintenance and Storm Drainage assessments were set up to fund the
costs of maintaining these systems. There currently are four assessment categories w1th rates for
each category that relate to the level of development of the parcel. There is a vacant land rate,
with a ceiling amount, a residential rate, with a ceiling amount, and two commercial rates for
.properties that are for fully developed property 1 % covered) and less than fully developed
property % or less coverage). The four rates are applied to the square footage of the parcel.
Until 2005 the City gave these rates to the County and they calculated the assessments
and 'Included the assessment amounts on the property tax bill. There was only a modest
involvement by the City with this old arrangement, and there was little ability for the City t
analyze the assessment database except 1n a few naffow areas. However, last year the County
changed their mode of operati.on.
In 2005 the County transferred to the City full responsibility for developing and
maintaining .n. the entire assessment database. In response, the City was required to develop its own
assessment database management system. As a s ale benefit of this new City -developed system,
the City now has the ability to perform some detailed analysis ofthe assessment database that
was not possible before the change. The first result of this analysis has been to identify the need
for an additional assessment rate for both street and storm drainage.
Initial analysis has shown there is another category of property that 1s neither residential
nor commercial. This category is comprised of properties, some fairly large, that are tax exempt.
These are properties that pay no taxes, but are subject to assessments. The tax exempt properttes
at issue are schools, churches, and other govenunent parcels. In general, these parcels are not as
thoroughly developed as typical new commercial properties, and they have significantly more
r o0€ . o
landscaped area. However, they are far more completely developed than a typical residential
parcel, usually include .larger structures, produce significant traffic, and have substantial parking
lots. Therefore, the impact of these ta.x exempt parcels on street and storm drainage maintenance
costs is much greater than the revenue generated for these services by the current assessment
system.
These tax exempt parcels .have, to date, been assessed at the residential rate for street and
storm drainage maintenance and in most eases, because of their large size, they have been
sub eet to the maximum ceiling amount for streets of $219.97 and $97.48 for stern drainage. As
a reset of this,, other properties within the .residential category are effectively subsidizing a low
street and storm drainage assessment for tax exempt properties.
1n order to correct this inequity, we recommend the creation of a. fifth rate category t
cover tax exempt properties. This rate category would fit midway between the current residential
and commercial rates. We recommend the following:
CLOY 5
Storm. Drainage Rate for Tax Exempt Properties .005 12 square foot
Street Maintenance rate for Tax Exempt Properties 0.01 2/square foot
We believe creating this fifth category will result a more equitable spread. of strut and
storm drainage maintenance costs between vacant land, residential properties, tax exempt
property, and commercial properties. attached is a spreadsheet shoving the affect of adding this
fifth assessment category.
memo0262006,doc
ORDNANCE NO. 1580
AN ORDINANCE AMENDING ORDINANCE 1476 BY CREATING AN ADDITIONAL
CATEGORY FOR TAX EXEMPT PROPERTIES THAT ARE SUBJECT TO SWORN
SEWER. ASSESSMENTS, MODIFYING LANGUAGE TO CLARIFY THE
COMMERCIAL CATEGORIES, AND DECLARING AN EFFECTIVE DATE.
WHEREAS, currently tax exempt properties that are subject to storm sewer assessments are
assessed by the City of Kalispell at the rate of residential properties even though
these properties are more completely developed and are more intensely utilized by
the public, thereby creating more impacts upon storm sewer facilities than the
typical residence; and
WHEREAS, tax exempt properties subject to storm sewer assessments are not typically
developed to the same level of intense use as commercial properties and therefore
do not rise to the same level of impact upon storm sever facilities as commercial
property; and
WHEREAS it is therefore equitable to assess the tax exempt properties at a. rate higher than
the residential rates, but less than the commercial rates; and
WHEREAS 1t 1s the intention of the City Council that all commercial properties be included in
either Category 3 or Category 4 and thereby be assessed for storm sewer
maintenance costs and that the current language of the ordinance should be
amended to clarify this intention.
NOW THEREFORE? BE IT ORDAINED BY THE CITY COUNCIL THE CITY OF
KALlSPELL,1 ONTANA, AS FOLLOWS:
SECTION I. Ordinance 1476 is hereby amended at Section V. to read as follows:
That Ordinance No. 862 is hereby amended as Follows
Paragraph 2.01 shall be and is hereby amended to strike all of the existing
language to be replaced with the following:
2.01 Application and Classification: A special storm sewer charge is hereby
imposed on each lot and parcel of land within the City, except the Airport, Golf
Course, cemeteries, all public parkland and all private parkland as defined by
Kalispell City Code 28-3-19 and adjacent City owned areas, for services and
facilities provided by the store sever. For poses of imposing the storm sewer
charge, all lots and parcels within the City, except those areas as exempted
hereby, shall be classified and assessed as follows:
Category I Vacant Land up to Two Acres — shall be assessed at the same rate as
all vacant land up to two acres.
Category I Vacant Land over Two Acres — shall be assessed a total amount of no
more than the assessment for two acres of vacant land.
Category 2 Residential Land U to Y acre -- shall he assessed at the same rate as
all residential land up to V2acre.
Category 2 .residential ,hand over Y acre: — shall be assessed a total amount o
o more than the assessment for 1 acre of residential land.
Category 3 Commercial o o% Covered: - shall be assessed at the rate set
annually by City Council.
Category 4 Commercial More Than 0% Covered: - shall be assessed at the rate
set annually by City Council.
Fate Tax-,Lxempt Properties: -- shall be assessed at the rate set annuall
City Council.
Paragraphs 2. 2, 2.03 and 2.04 shall be stricken and paragraphs 2.0, 2.06, 2.0,
2,0� 2.09 shall be renumbered as 2. 2,, 2.0, 2.049 2.053 2.0respectively
SECTION 2. This Ordinance shall take effect 30 days after final passage by the City
Council.
PASSED ANDAPPROVED BY THE CITY COUNCIL AND SIGNED] BY THE MAYOR
THIS 17TH DAY OF JULY, Zoo ,
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk