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
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