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05. Ordinance 1420 - Special Street Maintenance Assessments - 1st Reading (2)City of Kalispell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831 REPORT TO: Mayor and City Council FROM: James C. Hansz, P.E., Director of Public Works SUBJECT: Special Street Maintenance Assessments MEETING DATE: May 6, 2002 BACKGROUND: Over the past few years, usually in response to requests from concerned citizens, there have been periodic re-examinations of the City's method for assessing street maintenance costs. The concerns raised have centered on the perceived inequity and adverse financial impact of applying the street assessment to large vacant parcels. On each of these past occasions the result of the evaluation has been no change by the City Council to the assessment method_ At the request of the City Council we have once again evaluated the street assessment method to determine whether an alternate approach can be identified. The current assessment approach applies a single rate to all properties. The current evaluation has determined that large vacant, essentially undeveloped parcels do not impact street maintenance costs in direct proportion to their size. But they should nonetheless shoulder a reasonable share of these costs. It was concluded that as the level of development increases the cost impact increases. This is similar to the conclusion reached with the storm drainage assessment review. This current street assessment re-evaluation also supports refining the assessment method for residential parcels. The impact of these parcels on street maintenance costs does not substantially rise with an increase in the size of the parcel. Street impacts do not significantly change with large residential lots. The analysis of these situations was detailed in an earlier staff memo and in subsequent work session discussions. The final result of these deliberations is a recommendation that assessments for Special Street Maintenance should be dramatically altered from the present single rate system to a multi -tiered system as is used for storm drainage. Further it is recommended that vacant land and residential parcels should be capped at two acres and one-half acre, respectively and that public and private parklands be exempted from assessment. Assessment rates for street maintenance should be set to the following values: Category 1 Vacant Land Up To Two Acres $0.0059/square foot Category 1 Vacant Land Over Two Acres $514.00 maximum Category 2 Residential Land Up To One -Half Acre $0.0059/square foot Category 2 Residential Land Over One -Half Acre $128.50 maximum Category 3 Commercial 90% Covered $0.0086/square foot Category 4 Commercial 100% Covered $0.0091/square foot RECOMMENDATION: Staff recommends setting Special Street Maintenance assessments as indicated with caps for vacant land and residential parcels of 2 acres and one-half acres, respectively, and exemption of public and private parkland. ACTION REQUESTED: AT CITY COUNCIL MEETING OF MAY 6 - MOTION APPROVING ORDINANCE 1420 SETTING ASSESSMENT RATES FOR SPECIAL STREET MAINTENANCE, EXEMPTION OF PARKLANDS AND SETTING MAXIMUM ASSESSMENTS FOR VACANT LAND AND RESIDENTIAL LAND. FISCAL EFFECTS: No adverse impacts identified, the action, overall, is revenue neutral, but does reflect an increase in all categories to offset the affects of the two acre and one-half acre maximums, and exemption of parklands. ALTERNATIVES: As recommended by the City Council. Respectively Ja10W'WC. Hansz, P Director of Public May 6, 2002, Strut Assessments C"'ya�bu- Chris A. Kukulski Engineer City Manager Report compiled April 25, 2002 ORDINANCE NO. 1420 AN ORDINANCE AMENDING ORDINANCE NO. 1035 BY PROVIDING A MULTI - TIERED SYSTEM OF SPECIAL STREET ASSESSMENT AND EXEMPTING PUBLIC AND PRIVATE PARKLANDS, AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA AS FOLLOWS: SECTION I. That pursuant to authority granted to munici- palities to assess a tax for street maintenance by Title 7, Chapter 12, Part 44, Montana Code Annotated, the City of Kalispell does assess the properties within the City for a special street maintenance tax. SECTION II. That the tax levied by the City should be reasonable and just. SECTION III. That the City Council finds that large vacant and essentially undeveloped parcels do not impact street maintenance costs in direct proportion to their size, but should, nonetheless, shoulder a reasonable share of these costs. SECTION IV. That the City Council finds that the purpose of maintaining a reasonable and just assessment may be met by creating a multi - tiered system of assessment and further, that vacant land and residential parcels should be capped at two acres and one-half acre, respectively, and public and private parklands be exempted from the tax. SECTION V. That Ordinance by replacement the following: No. 1035 § V is hereby amended of the existing language with That the cost of and expenses of maintaining the streets, avenues, alleys and public roads shall be assessed against each lot or parcel within the Special Maintenance District No. 1 as follows: Category 1 Vacant Land up to Two Acres: $0.0059/square foot Category 1 Vacant Land over Two Acres: $514.00 maximum Category 2 Residential Land Up to M acre: $0.0059/square foot Ord\1420 Special Street Assessments.wpd 1 Category 2 Residential Land Over 3A acre: $128.50 maximum Category 3 Commercial 90% Covered: $0.0086/square foot Category 4 Commercial 100% Covered: $0.0091/square foot Public and private parklands, as defined by Kalispell Ord. 28- 3-19 shall be exempt from the assessment. SECTION VI. This Ordinance shall take effect 30 days after final passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 6TH DAY OF MAY, 2002. Pamela B. Kennedy Mayor Attest: Theresa White City Clerk Ord\1420 Special Street Assessments.wpd 2