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3. Resolution 5628 - Calling for Public Hearing - Light Maintenance AssessmentsCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 To: Mayor Fisher and Kalispell City Council From,: Doug Russell, City Manager°') Re: Call for Public Hearing on Proposed Rate Adjustments Meeting Date: July 15, 2013 BACKGROUND: At the work session on July 8, 2013, staff presented information related to current rate structures, forecasted revenues and expenditures, and policy components for respective funds. Additionally, staff presented recommendations for adjusting the rate structures to provide sustainability in these respective programs through a rate increase program, as follows: Lighting District: 5-year adjustment process of: 15%, 10%, 10%, 10%, 10% Street Maintenance: 5- year adjustment process of: 10%, 10%, 7%, 7%, 5% Solid Waste: amending policy to remove discount for multiple pickups in commercial accounts Urban Forestry: adjustment of the assessment from .00171/sq. ft. to .00271/sq. ft. for five years and then reducing it to .00221/sq. ft. The information presented at the work session is attached. This information provides the forecast for the respective funds and the relative amounts for the adjustments. As part of the consideration of rate adjustments, notification and public hearing processes are applicable. Following this memo are four resolutions calling for a public hearing on the respective funds identified above. *17he sprinkling rate for the water fund presented at the work session will be brought forward at a later time as it can follow a different process for notice distribution and potential implementation as it is not an assessment. RECOMMENDATION: It is recommended that Council adopt the four resolutions calling for a public hearing on the proposed rate adjustments. RESOLUTION NO.5628 A RESOLUTION SETTING A DATE FOR A PUBLIC HEARING ON A PROPOSAL TO ADOPT AN INCREASE TO THE ASSESSMENTS ON REAL PROPERTY WITHIN THE CITY OF KALISPELL FOR THE COSTS OF THE LIGHT MAINTENANCE DISTRICT. WHEREAS, the City of Kalispell, pursuant to the authority provided to it under MCA 7-12-4301 et seq., has established a lighting maintenance district, for which real property within the city that is within 300 feet of a city maintained street light is assessed costs for the maintenance and operation of the street lighting system; and WHEREAS, a study of projected expenses and revenues of this maintenance district reveals that the assessments have not been increased for ten years although the costs of operation and maintenance of the system have risen significantly such that the current assessment will not allow the city to continue to provide the level of service to its street lighting system that it has historically maintained; and WHEREAS, the study further reveals that a programmed assessment increase over five years, as shown in the table below, should maintain the level of service currently enjoyed by the users of the city's street lighting system: Current FY 12/13 Proposed FY 13/14 Proposed FY 14/15 Proposed FY 15/16 Proposed FY 16/17 Proposed FY 17/18 % Increase 15% 10% 10% 10% 10% Assess/sq.ft 0.00300 0.003450 0.003795 0.004175 0.004592 0.005051 WHEREAS, based upon the projections provided in the study, the average residential property with the size of 8,632 square feet would pay the following light maintenance assessment: Current FY 12/13 Proposed FY 13/14 Proposed FY 14/1.5 Proposed FY 15/16 Proposed FY 16/17 Proposed FY 17/18 Monthly accrual $2.16 $2.48 $2.73 $3.00 $3.30 $3.63 Annual Assess. $25.90 $29.78 $32.76 $36.03 $39.64 $43.60 WHEREAS, based upon the projections provided in the study, commercial property at 20,000 square feet, would pay the following light maintenance assessment: Current FY 12/13 Proposed FY 13/14 Proposed FY 14/15 Proposed FY 15/16 Proposed FY 16/17 Proposed FY 17/18 Monthly accrual $5.00 $5.75 $6.33 $6.96 $7.65 $8.42 Annual Assess. $60.00 $69.00 $75.90 $83.49 $91.84 $101.02 WHEREAS, prior to initiating any increase in the assessments, the City is required, pursuant to MCA 7- 12-4329, to hold a public hearing on the matter after giving due and proper notice of said hearing, and to maintain a list with the City Clerk setting forth the proposed assessments per parcel. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION I. The City Council shall set a Public Hearing on the 5th day of August, 2013, at 7:00 o'clock p.m. in the Council Chambers, City Hall, Kalispell, Montana, to accept comments on a proposed increase to the Light Maintenance District as set forth in the recitals above. SECTION H. The City Clerk and City Attorney are hereby authorized and directed to make, publish and distribute notices of said Public Hearing in conformity with MCA 7-12-4329 and to maintain within the City Clerk's office a list in which shall be described the lot or parcel of land assessed, with the name of the owner thereof listed, if known, and the amount levied thereon set opposite. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, ON THE 15TH DAY OF JULY, 2013. Tammi Fisher Mayor ATTEST: Theresa White City Clerk CITY OF KALISPELL NOTICE OF PUBLIC HEARING ON PROPOSED RATE INCREASE NOTICE IS HEREBY GIVEN, that on the 5th day of August, 2013 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 Light Maintenance District. Any person wishing to address the proposed assessment rate increase may appear at this hearing and make oral statements or present 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 cityclerk@kalispell.com prior to the hearing. If there are questions that might be answered by telephone please call (406) 758-7720. Proposed Light Maintenance District Assessments A programmed assessment increase over five years, as shown in the table below, should maintain the level of service currently enjoyed by the users of the city's street lighting system: Current FY 12/13 Proposed FY 13/14 Proposed FY 14/15 Proposed FY 15/16 Proposed FY 16/17 Proposed FY 17/18 % Increase 15% 10% 10% 10% 10% Assess/s .ft 0.00300 0.003450 0.003795 0.004175 0.004592 0.005051 Based upon projections, the average residential property with the size of 8,632 square feet would pay the following light maintenance assessment: Current Proposed Proposed Proposed Proposed Proposed FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Monthly accrual $2.16 $2.48 $2.73 $3.00 $3.30 $3.63 Annual Assess. $25.90 $29.78 $32.76 $36.03 $39.64 $43.60 Based upon projections, commercial property at 20,000 square feet, would pay the following light maintenance assessment: Current Proposed Proposed Proposed Proposed Proposed FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Monthly accrual $5.00 $5.75 $6.33 $6.96 $7.65 $8.42 Annual Assess. $60.00 $69.00 $75.90 $83.49 $91.84 $101.02 Theresa White City Clerk Publish: July 18, 2013 July 25, 2013 i Ef7- ajim qRM Nt 9 1 11 MP ii 4i M. PUBLIC WORKS ASSESSMENT/RATES REVIEW JULY 81 2013 WORKSHOP Light Maintenance Special Streets /4\ 1 TT,(!��TP4�TT E Solid Waste AvEm Projected Expenditure Detail 2013-2023 Historical Electrical Costs Current Assessment Fund Review Proposed Assessment Fund Review Assessment Increase Comparison Assessment Review: Expenditure Detail- Pro'ected 2013-2023 LIGHT MAINTENANCE PROPOSED EXPENDITURE FUND: 2400410430263 ACTUAL BUDGET PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 Personal Services: $46,203 $50,980 $76,986 $79,205 $81,494 $83,856 $86,293 $88,808 $91,404 $94,083 $96,850 $99,706 Materials and Services: $181,666 $208,838 $219,040 $225,131 $231,395 $237,837 $244,462 $251,276 $258,284 $265,491 $272,904 $280,528 Capital Outlay $0 $0 $0 $10,000 $17,000 $10,000 $10,000 $10,000 $50,000 $10,000 $10,000 $10,000 Debt Service: loan equipment $0 $0 $24,438 $24,438 $24,438 $24,438 $24,438 $0 $0 $0 $0 $0 Total $227,868 $256000 $320,464 $338,773 $354,326 $356,130 $365,193 $350,084 $399,688 $369,575 $379,754 $390,234 ASSUMPTIONS ❑ Projection to FY 2023 Yearly Percent Increase o Personal Services: 3% o Maintenance Services 2% o Electricity 3% Minimal Equipment/cIP Expenditures Debt Service on Boom Truck Electricity Costs Summary LIGHT MAINTENANCE FUND History of Electrical Costs $140,598 $145,426 $149,7 $128,376 $132,898 $137,306 $137,341 $138,648 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 % Yearly Difference 4% 3% 2% -2% 1% 5% 3% $171,000 ci�innn FY 12 EST FY 13 EST FY 14 1% 7% 6% Average Yearly Increase 3% for 10 Years 6-7% Increase in FY 13 and 14 Current Assessment Review: Revenue and Fund Detail- Projected 2013-2023 M. LIGHT MAINTENANCE REVENUE AND FUND FUND: 2400-410-430263 BEGINNING CASH REVENUES Maintenance Assessments Misc, Penalty, Interest TOTAL AVAILABLE EXPENDITURES ACTUAL ACTUAL BUDGET Projected Projected Projected Projected Projected Projected Projected Projected Projected FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 $150,829 $160,503 $148,791 $66,727 ($31,286) ($142,469) ($253,048) ($370,258) ($469,904) ($616,673) ($730,823) ($852,623) $233,535 $236,000 $236,000 $238,360 $240,744 $243,151 $245,583 $248,038 $250,519 $253,024 $255,554 $258,110 $4,007 $8,288 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $388,371 $404,791 $387,191 C$307,487D $211,858 $103,082 ($5,065) ($119,820) ($216,985) ($361,249) ($472,869) ($592,113) $227,868 $256,000 $320,464 $338,773 $354,326 $356,130 $365,193 $350,084 $399,688 $369,575 $379,754 $390,234 ENDING CASH $160,503 $148,791 $66,727 ($31,286) ($142,469) ($253,048) ($370,258) ($469,904) ($616,673) ($730,823) ($852,623) ($982,347) ASSUMPTIONS Projection to FY 2023, No Assessment Increase Yearly Percent Increase Maintenance Assessments Current Rate (new services): 1% OUTCOME Expenditures Exceed Total Available Revenues in FY 14/15 Ending Cash Carryover, Depleted in FY 14/15 Recommend Assessment Increase, Last Increase was in 2003 Chart -Current Assessment Projection LIGHT MAINTENANCE $425,000 $400,000 $375,000 $350,000 $325,000 $300,000 $275,000 $250,000 $225,000 $200,000 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 Current Assessment Review: Revenue and Fund Detail- Projected 2013-2023 ASSESSMENT REVENUE EXPENDITURES FY21/22 FY22/23 Proposed Assessment Review: Revenue and Fund Detail- Projected 2013-2023 M. LIGHT MAINTENANCE PROPOSED REVENUE AND FUND SUMMARY FUND: 2400-410-430263 BEGINNING CASH REVENUES Maintenance Assessments Misc, Penalty, Interest TOTAL AVAILABLE EXPENDITURES F NTnINr_ r A cu ACTUAL ACTUAL PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED FYII/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 $150,829 $160,503 $148,791 $102,127 $64,294 $40,762 $48,265 $82,829 $132,502 $132,571 $162,753 $182,756 $233,535 $236,000 $271,400 $298,540 $328,394 $361,233 $397,357 $397,357 $397,357 $397,357 $397,357 $397,357 $4,007 $8,288 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $388,371 $404,791 $422,591 $403,067 $395,088 $404,395 $448,021 $482,585 $532,258 $532,328 $562,510 $582,513 $227,868 $256,000 $320,464 $338,773 $354,326 30 $365,193 0 $350,084 0 $399,688 0 $369,575 0 $379,754 $160,503 $148,791 $102,127 $64,294 $40,762 $48,265 $82,829 $132,502 $132,571 $162,753 $182,756 $192,279 ASSUMPTIONS Projection to FY 2023 5 Year Assessment Increase Minimal Equipment/cIP Expenditures OUTCOME Assessment Collected Exceeds Projected Expenditures From FY 16/17 to FY 22/23 Chart -Proposed Assessment Projection LIGHT MAINTENANCE Proposed Assessment Review: Revenue and Fund Detail- Projected 2013-2023 $425,000 $400,000 $375,000 $350,000 $325,000 $300,000 $275,000 $250,000 $225,000 $200,000 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 Assessment Adjustment Review qw LIGHT MAINTENANCE Current Proposed Proposed Proposed Proposed Proposed FY 12-13 FY 13-1.4 FY 1.4-15 FY 15-16 FY 16-17 FY 17-18 Assessment Increase % 15% 10% 10% 10% 10% Assessment /Sq FT 0.00300 0.003450 0.003795 0.004175 0.004592 0.005051 Typical SFR at 8,632 SF Monthly Cost $2.16 $2.48 $2.73 $3.00 $3.30 $3.63 Yearly Total Cost $25.90 $29.78 $32.76 $36.03 $39.64 $43.60 Commercial at 20,000 SF Monthly Cost $5.00 $5.75 $6.33 $6.96 $7.65 $8.42 Yearly Total Cost $60.00 $69.00 $75.90 $83.49 $91.84 $101.02 OUTCOME REVIEW: SFR at 8,570 SF E Monthly Average Increase per Year = $0.30 ❑ Average Increase per Year = $3.54 E, Total Monthly Increase from 2013 to 2018 = $1.47 0 Total Annual Increase from 2013 to 2018 = $17.70 OUTCOME REVIEW: COMMERCIAL at 20,000 SF Monthly Average Increase per Year = $0.68 Average Increase per Year= $8.62 Total Monthly Increase from 2013 to 2018 = $3.42 Total Annual Increase from 2013 to 2018 = $41.02 Current Assessment Fund Review Equipment Costs Proposed Assessment Fund Review Assessment Adjustment Comparison Current Assessment Review: Expenditure Detail- Projected 2013-2018 SPECIAL STREETS (includes TSS) EXPENDITURE ACTUAL BUDGET BUDGET Projected Projected Projected Projected FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Operating Personal Services $884,087 $987,761 $952,094 $979,257 $1,007,292 $1,036,231 $1,066,108 Materials and Services (M&O) $437,888 $435,390 $592,662 $604,515 $616,606 $628,938 $641,516 Capital Outlay from Assessments $217,436 $270,000 $0 $45,000 $45,000 $45,000 $45,000 Debt Service $16,200 $46,119 $96,459 $96,459 $96,459 $96,459 $46,119 Total Operating Expendirues $1,555,611 $1,739,270 $1,641,214 $1,725,230 $1,765,356 $1,806,628 $1,798,743 Pavement Replacement Funds $233,691 $195,000 $582,062 $280,000 $280,000 $280,000 $280,000 Equipment Replacement Funds $13,675 $0 $49,925 $35,000 $52,000 $35,000 $35,000 ASSUMPTIONS Projection to FY 2018 Yearly Percent Increase n Personal Services: 3% r Maintenance Services 2% $ 280,000 Expenditure /Year Pavement Restoration Minimal Equipment/CIP Expenditures Debt Service on 12 Yard Dump Trucks M Current Assessment Review: Revenue and Fund Detail- Projected 2013-2018 ACTUAL BUDGET BUDGET Projected Projected Projected Projected FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 BEGINNING CASH Operating ( personal, materials, CIP, debt and services) $767,070 $856,958 $754,310 $552,796 $267,266 ($58,391) ($425,318) Equipment Replacement Fund $15,474 $36,799 $71,799 $56,874 $56,874 $39,874 $39,874 Pavement Replacement Fund $170,753 $217,062 $302,062 $0 $0 $0 $0 REVENUE Maintenance Assessments Total (No Increase) $1,766,853 $1,735,000 $1,735,000 $1,735,000 $1,735,000 $1,735,000 $1,735,000 Operating (personal, materials, CIP, debt, and services) $1,451,853 $1,420,000 $1,420,000 $1,420,000 $1,420,000 $1,420,000 Designated for equipment replacement $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 Designated for pavement replacement $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 EXPENDrrURES Operating ( personal, materials, CIP, debt and services) $1,555,611 $1,739,270 $1,641,214 $1,725,230 <1 765 3 $1,806,628 $1,798,743 Equipment Replacement Fund $13,675 $0 $49,925 $35,000 $52,000 $35,000 $35,000 Pavement Replacement Fund $233,691 $195,000 $582,062 $280,000 $280,000 $280,000 $280,000 Operating ( personal, materials, CIP, debt and services) $856,958 $754,310 $552,796 $267,266 ($58,391) ($425,318) ($784,361) Equipment Replacement Fund $36,799 $71,799 $56,874 $56,874 $39,874 $39,874 $39,874 Pavement Replacement Fund $217,062 $302,062 $0 $0 $0 $0 $0 ASSUMPTIONS 11 Projection to FY 2018 ❑ $ 280,000 Expenditure /Year Pavement Restoration ❑ Minimal Equipment/CIP Expenditures OUTCOME Operating Expenditures Exceed Assessment Revenues in FY 15116 Ending Cash Carryover, Depleted in FY 15116 No Expenditures for Equipment Replacements Recommend 5 Year Assessment Increase, Last Increase was in 2008 Total Annual Assessment Designations Equipment CIP-Equipment Replacement Schedule EQUIPMENT CAPITAL IMPROVEMENT PLANost . , 14 12 Yard Tandem Trucks $ 200,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00 $ 100,000.00 5-6 Yard Single Axle Trucks $ - $ - $ - $ - Ice Melt/ Water Trucks $ $ - $ $ 134,000.00 $ - Lift Truck (TSS Boom) $ $ - $ $ - $ - Pickup Trucks $ $ 90,000.00 $ 34,000.00 $ 45,000.00 $ 30,000.00 Bobcat $ $ - $ - $ - $ 65,000.00 Sweepers $ $ 40,000.00 $ 40,000.00 $ $ 40,000.00 Backhoe $ $ - $ - $ $ - Graders $ $ $ 200,000.00 $ $ - Loaders $ $ $ - $ 190,000.00 $ 210,000.00 Rollers $ $ 55,000.00 $ - $ - $ - Pavers, Asphalt Box & Crack Sealer $ $ - $ 100,000.00 $ $ Leaf Machines $ $ 170,000.00 $ - $ $ Flail Mower $ $ - $ $ $ - Trailers $ 10,100.00 $ - $ $ 10,000.00 $ 7,000.00 Misc Equip (Sander/De-icer Unit, TSS Striper, Snow Blower Attachment, Air Compressor) $ 39,825.00 $ 30,000.00 $ 20,000.00 $ - $ 15,000.00 Totals $ 249,925.00 $ 535,000.00 $ 544,000.00 $ 529,000.00 $ 467,000.00 Equipment CIP Replacement Schedule Based on.... Hours, Miles, and Years Manufacture Suggestions Mechanical Experience Equipment Maintenance Cost Tracking Equipment Review-CIP Equipment Rerflacement Priority Schedule EQUIPMENT CAPITAL IMPROVEMENT PLAN Est. Cost Est. Cost Est. Cost Est. Cost Est. Cost 12 Yard Tandem Trucks $ 200,000.00 $ 150,000.00 $ 150,000.00 5-6 Yard Single Axle Trucks $ - Ice Melt / Water Trucks $ Lift Truck (TSS Boom) $ Pickup Trucks $ Bobcat $ Sweepers $ Backhoe $ Graders $ Loaders $ $ 190,000.00 Rollers $ $ 55,000.00 Pavers, Asphalt Box & Crack Sealer $ $ 50,000.00 Leaf Machine $ $ 170,000.00 Flail Mower $ Trailers $ 10,100.00 $ 10,000.00 $ 15,000.00 Misc Equip (Sander/De-icer Unit, TSS Striper,Snow Blower Attachmnt, Air Compressor) $ 39,825.00 Totals $ 249,925.00 $ 205,000.00 $ 200,000.00 $ 200,000.00 $ 185,000.00 Equipment CIP Replacement Priority Schedule Based.... Hours, Miles, and Years Manufacture Suggestions Mechanical Experience Equipment Maintenance Cost Tracking Proposed Assessment Review: Expenditure Detail- Projected 2013-2023 M SPECIAL STREETS (includes TSS) PROPOSED EXPENDITURE BUDGET Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY17/19 FY17/20 FY17/21 FY17/22 FY17/23 Operating Personal Services $987,761 $952,094 $979,257 $1,007,292 $1,036,231 $1,066,108 $1,096,956 $1,128,811 $1,161,711 $1,195,694 $1,230,801 Materials and Services (M&O) $435,390 $592,662 $604,515 $616,606 $628,938 $641,516 $654,347 $667,434 $680,782 $694,398 $708,286 Capital Outlay from assessments $270,000 $0 $45,000 $45,000 $130,000 $45,000 $45,000 $150,000 $45,000 $45,000 $45,000 Debt Service $46,119 $96,459 $96,459 $96,459 $96,459 $46,119 $0 $0 $0 $0 $0 Total Operating Expendirues $1,739,270 $1,641,214 $1,725,230 $1,765,356 $1,891,628 $1,798,743 $1,796,303 $1,946,245 $1,887,493 $1,935,092 $1,984,087 Pavement Replacement Funds $195,000 $582,062 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 Equipment Replacement Funds $0 $49,925 $200,000 $217,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 Total Expenditures $1,943,460 $2,495,053 $2,205,230 $2,262,356 $2,371,628 $2,278,743 $2,276,303 $2,426,245 $2,367,493 $2,415,092 $2,464,087 ASSUMPTIONS Projection to FY 2018 Yearly Percent Increase a Personal Services: 3% o Maintenance Services 2% $ 280,000 Expenditure /Year Pavement Restoration City performed Equipment Expenditures $200,000 Proposed Assessment Review: Revenue and Fund Detail- Projected 2013-2023 M SPECIAL STREETS (includes TSS) REVENUE AND FUND BUDGET Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 BEGINNING CASH Operating ( personal, materials, CIP, debt and services) $856,958 $754,310 $561,296 $475,116 $375,764 $307,382 $452,062 $599,183 $596,361 $652,291 $660,622 Equipment Replacement Fund $36,799 $71,799 $221,874 $221,874 $204,874 $204,874 $204,874 $204,874 $204,874 $204,874 $204,874 Pavement Replacement Fund $217,062 $302,062 $0 $0 $120,000 $240,000 $360,000 $480,000 $600,000 $720,000 $840,000 REVENUE' Maintenance Assessments Total (with increase) $1,908,500 $2,099,350 $2,246,305 $2,403,546 $2,523,723 $2,523,723 $2,523,723 $2,523,723 $2,523,723 $2,523,723 Operating (personal, materials, Cm, debt and services) $1,420,000 $1,428,500 $1,619,350 $1,646,305 $1,803,546 $1,923,723 $1,923,723 $1,923,723 $1,923,723 $1,923,723 923,723 Equipment Replacement Fund $35,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 Pavement Replacement Fund $280,000 $280,000 $280,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 F.XPF.NTNTTTRF.0 Operating ( personal, materials, CIP, debt and services) $1,739,270 $1,641,214 $1,725,230 $1,765,356 $1,891,628 $1,798,743 $1,796,303 $1,946,245 $1,887,493 $1,935,092 <ZP Equipment Replacement Fund $0 $49,925 $200,000 $217,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 Pavement Replacement Fund $195,000 $582,062 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 $280,000 ENDING CASH Operating (personal, materials, Cm, debt and services) $754,310 $561,296 $475,116 $375,764 $307,382 $452,062 $599,183 $596,361 $652,291 $660,622 $619,957 Equipment Replacement Fund $71,799 $221,874 $221,874 $204,874 $204,874 $204,874 $204,874 $204,874 $204,874 $204,874 $204,874 Pavement Replacement Fund $302,062 $0 $0 $120,000 $240,000 $360,000 $480,000 $600,000 $720,000 $840,000 $960,000 ASSUMPTIONS ❑ Projection to FY 2023 ❑ 5 Year Assessment Increase to FY 2018 ❑ $200,000 Allocated for Equipment Replacements ❑ $400,000 Allocated for Pavement Restoration Expenditures starting in FY 15/16 OUTCOME Assessment Collected Exceeds Projected Expenditures to FY 2023 Enables the Replacement and Purchase of Equipment Enables Increased Street Pavement Restoration and Surface Treatment Enables CIP Project for Necessary Shop Improvements: Replacement of Sand Shed/TSS Building Additions Assessment Adjustment Review wr SPECIAL STREETS (includes TSS) Current Proposed Proposed Proposed Proposed Proposed FY 12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Assessment Increase % 10% 10% 7% 7% 5% Assess/Sq Ft (residential) 0.012220 0.013442 0.014786 0.016265 0.017891 0.019680 Assess/Sq Ft (com 100%) 0.019000 0.020900 0.022990 0.025289 0.027818 0.030600 Typical SFR at 8,632 Sq Ft Month1N- Cost $8.79 $9.67 $10.64 $11.3 8 $12.18 $12.79 Yearlv Total Cost $105.48 $116.03 $127.63 $136.57 $146.13 $153.44 Commercial 100% at 20,000 Sq Ft Month1N- Cost $31.67 $34.83 $38.32 $41.00 $43.87 $46.06 Yearlv Total Cost $380.00 $418.00 $459.80 $491.99 $526.43 $552.75 OUTCOME REVIEW: SFR at 8,570 SF ❑ Monthly Average Increase per Year = $0.80 ❑ Average Increase per Year = $9.59 ❑ Total Monthly Increase from 2013 to 2018 = $4.00 ❑ Total Annual Increase from 2013 to 2018 = $47.95 OUTCOME REVIEW: COMMERCIAL at 20,000 SF Monthly Average Increase per Year = $2.73 Average Increase per Year= $32.79 Total Monthly Increase from 2013 to 2018 = $14.40 Total Annual Increase from 2013 to 2018 = $172.75 Review Current Rate Structure Recommended Alternative Proposed Rate Adjustment Non -Residential Services 300 Gallon 350 Gallon 400 Gallon Current Proposed Current Proposed Current Proposed DUMPSTER Pick up Rates Rates Rates Rates Rates Rates Once per Week $338.00 $338.00 $375.00 $375.00 $411.00 $411.00 2 X per Week $558.00 $676.00 $631.00 $750.00 $704.00 $822.00 3 X per Week $828.00 $1,014.00 $938.00 $1,125.00 $1,047.00 $1,233.00 F OUTCOME EFFECTS 300 Gallon Customers 2 x per week = 27 Q 3 x per week = 2 400 Gallon Customers 0 2 x per week = 58 n 3 x per week = 47 Budget Revenue Estimated Increase $19,000 per Year Standardized Rate Structure for Collection of Commercial Solid Waste Service Review Current Residential Sprinkling Service Alternative Recommendation rrent Residential Sprinkling Service M= CITY OF K4LISPELL KALISPELL, MONTANA Utility Rate Schedule EXHIBIT `=A" UTILITY SCHEDULE FOR WATER EFFECTIVE duly 1, 2003 PAGE NO. 3 SCHEDULE B RESIDENTIAL SPRINKLING SERVICE Available for: Residential Users only Rate: Special sununer rate — Water used for sprinkling purposes. All residential users who do not have separately metered sprinkling services gill be charged during the months of May. June, July, August, September and October (see rate) per thousand gallons on the amount of water used in excess of the average consumption for the preceding four months. Usage below the minimum in that base period will be computed at minimum to obtain the average. Rate: FY03104 FY04105 FY05106 FY06107 FY07108 Per 1000 gallons $1.05 $1.16 $1.28 $1.41 $1.55 In as much as water bills are rendered bimonthly with the service area divided into two sections billed in alternate periods. this special sprinkling rate will be applied as follows: Section A � meters read in odd numbered months: Excess usage, defined above in the period after the March reading to the November reading, will be accorded Sprinkling Rate consideration. Section B � meters read in even numbered months: Excess usage, defined above in the period after the April reading to the December reading. will be accorded Sprinkling Rate consideration. Bi-monthly Metering and Billing Schedule West Side Winter Meters Read Sprinkling Rate Avg. est Side Applied Nov Dec Ja n Jan Feb Mar Mar May Apr May July June July Sept Aug Sept Nov Oct Winter Average Determined from Nov to Feb (4 Months) ❑ Sprinkling Rate Applied March to October (8 Months) East Side Winter Meters Read Sprinkling Rate East Side Applied Dec Jan Feb Feb Mar Apr June Apr May June Aug July Oct Aug Sept Oct Dec Nov ❑ Winter Average Determined from Dec to March (4 Months) ❑ Sprinkling Rate Applied April to Nov (8 Months) Sprinkling Service Rate Schedule Recommended Alternative M CITY OF KAJUSPI7.L KALLSPELL, MO-STANA ESIIIBIT "A" [1III.1TY SCHEDULE FOR y1'ATER EFFECTR'E July 1, 2003 PAGE NO. 3 SCHEDULE B RESIDEN TL4,1. SPTdinirCr.Il` G SERVICE (PROPOSED) Available for. Residential Users only Rate: Special s+n = rate —Water used for sprinkling purposes. All residential users who do not have separately metered sprinkling services will be charged per thousand gallons (see rate) for a fair month period during the summer on the amount of water usedinexcrssofasixmmthwinteraverage,asappliedbelow_ Ifniusageisrecordeddvringa bi-montbly bill cycle during the winter average period, the winter average for that hill cycle will be based on the average usage for a Single Family Residence (SFR). SFR average usage will be calculated based on American Water Works Design Publications. Rate: FY03104 FY04IU5 FY05106 FY06107 F]'07IN Per 1,000gallons $1.05 Sl.16 $1.28 $1.41 $1.55 In as much as water bills are rendered bimontbly with the service area divided into two sections billed in alternate periods, this special sprinlding rare mill be applied as follows: Section ?� meters read in odd numbered months: Excess usage, for the 'July and 'September reading, will be accorded Sprinkling Rate consideration 'Ault' reading is for usage for the period of May and Tune •September reading is £or usage for the period of July aad August Winter avxraee cakulated on usage during the months of November, December. January, Febraary, March and April. Section B meters read in even numbered months: Excess usage, for the 'Au spt t and 'October reading will be accorded Sprinkling Hate consideration. *August reading is forusage for the period of June and Illy 40ctober reading is for usage For the period of Aug= and September Winter average calculated m usage during the months of October, November, December, January, February, and March. Section A: West Side Wi Meters Read Sprinkling Rate West Side Applied Nov Jan Dec Jan Feb Mar Mar May Apr July May }June :�—luly Sept Aug Nov Sept Oct Section B: East Side Meters Read Sprinkling Rate Avg�ast Side Applied — Dec Jan Feb Feb Mar Apr June AMpr ay June r0U'g July ug Sept Oct Dec Nov Proposed Changes Add additional bill cycle to winter average (winter avg based on 6 mos. instead of 4 mos.) Reduce sprinkling rate to a 4 month period ( West side of town -May -Aug, East side of town -June -Sept) Recommend: Sprinkling Rate Applied to 4 Month Period Winter Average Calculated on 6 Month Period It's a Natural Equation "Healthy Trees" = "Healthy Commun'tY"National Tree Trust July 2013 Katispett's Urban Forest Although early records are incomplete, the City of Kalispell has periodically inventoried and cared for street trees back to the early 19 o o's. Majority of public trees along city streets and boulevards were planted from 1904 to 1914. Inventories were completed in 1928, 198o, 1991 and 20o8/og. Urban Forestry budget was established in 1997 Urban Forestry District was established in 2000. Inventory (20o8-o9) identifies 6,913 trees and 50 species With an estimated asset value Of $20,000,000 Urban Forestry Program Objectives • Commit to strict hazard reduction program for dead and dying Removal trees each year. Replacement Commit to strict replacement program for previously removed trees and for new potential tree planting spaces. Pruning Create a maintenance pruning program for all public trees. (All trees less than 5" caliper will be train pruned annually) Maintenance Continue with supporting and managing an in-house tree Management maintenance division strictly for the management of public trees. • Make available to the general public and property owners E ucation information and education dealing with the selection and location of trees, assist with compliance of the street tree and boulevard maintenance ordinance. Assessment History Eear Cost/Sq. Cost per year Cost per month 6. (typical lot 8632 sq. ft) (typical lot 8632 sq. ft) 2000 2003 2009 - Current .000675 .00135 .00171 $5.82 $0.49 $11.65 $14.76 $0.97 $1.23 Dutch Etm Disease Dutch Elm DiseaseSyMptOMS 2006 2009 dead elms were beginning to appear Inventories identified 390 American Elms All 390 trees identified will eventually circum to disease and need to be removed To date, we have removed 24o trees Mature American Elms typically 8o'in height with a 39" diameter Typical age is 6o years Proposed Assessment Increase i'+ Dutch Elm Disease 4:t Capital Equipment Replacement ❖Operations & Maintenance Personal Services Dutch Etm Disease 150 trees remaining to be removed next 5 years Estimated cost for removal and replacement - $125o per tree 5 year combined program cost is $187,500 ($37,500 per year) Capital Equipment Replacement Two major forestry equipment replacements are scheduled over the next 5 years. Wood chipper IFY 14-15 - $45,250 Chipper truck IFY 16/17 - $28,500 Operations Et Maintenance Operation & Maintenance-2%/ Personal Services Personal Services - 3 % / year Assessment Increase Estimates ip" Assessment • . I -MMMMMMML� r� • . . . FY 2013 (current) .00171 $206,000 FY 2014-2018 .00271 *$30008 FY 2019 .00221 $274,061 * Assessment revenues during the five year period will vary by a minimal amount (1— 2% per year) based on growth. Costs to Property Owners 2013 2014-2018 2023 .00171 $14.76 yr $1.23 .00271 $23.39 yr $1.94 .00221 $19.02 $1.58 FORESTRY PRE -ASSESSMENT REVENUE AND FUND SUMMARY Beginning Cash Revenues Arbor Day Grant Forestry Prog Dev Assessments P&I on Assessments Recycling/Misc Sales Inception Lease Investment Earnings Expenditures Ending Cash $68,235 $58,186 $31,o62 $750 $750 $750 $3,890 $O $2,000 $207,763 $205,000 $2o6,000 $1,566 $1,200 $1,200 $1,125 $750 $750 $O $20,000 $O $1,342 $1,200 $500 Total Revenue from Operations $216,436 $228,9oo $211,200 Total Available $284,671 $28706 $242,262 $226,485 $256,024 ' $239,421 $58j86 $31,o62 $2,841 FORESTRY PROJECTED REVENUE AND FUND SUMMARY Beginning Cash $68,235 $58,185 IF62 $43,826 $51,578 Revenues r Assessment Rate .00171 .00171 .00271 .00271 .00271 Assessments $207,763 $205,000 1 $301,208 $305,726 $310,311 Misc Revenues $8,592 $23,900 $5,200 $3,200 $3,200 Total Revenue $216,436 $228,900 $306,408 $308,926 313,511 Total Available $284,671 $287,o86 $337,470 $352,752 365,089 Expenditures $226,486 $256,024 $293,644 $301,174 $308,897 Ending Cash $58,185 $31,o62 $43,826 $51,578 $56,192 56,192 $56,472 $67,275 $63,371 $52,345 $37,391 $33,039 .00271 .00271 .00221 .00221 .00221 .00221 .00221 $314,965 $319,689 $274,o6i $278,171 $282,343 $286,578 $278,876 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 318,165 $322,889 $277,261 $281,137 $285,543 $289,778 $291,076 374,357 $379,361 $344,536 $344,742 $337,888 $327,169 $324,115 $317,885 $312,086 $281,165 $292,397 $300,497 $294,130 $302,432 $56,472 $67,275 $63,371 $52,345 $37,391 $33,039 $21,683 Recommendations Increase assessment to address program needs based on 5 year Dutch Elm Disease plan. Reduce assessment at end of 5 years, removing Dutch Elm Disease program from forestry budget. (®r ,�%', ki-