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02. Resolution 5635 - Light Maintenance AssessmentsCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 I uy I D) 0 [0 To: Mayor Fisher and Kalispell City Council From: Doug Russell, City Manager *D q Re: Light Maintenance Rate Adjustment Meeting Date: August 19, 2013 BACKGROUND: During the budget process, several municipal funds were identified as needing review based upon the revenue trends and respective fund balances. 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. Attached is the resolution for the recommended adjustment to the Light Maintenance Assessment. The last time this assessment was increased was in 2003. This resolution proposes a 5 year adjustment program to the assessment, as follows: Light Maintenance District: 5-year adjustment process of: 15%, 10%, 10%, 10%, 10% The information presented at the work session is attached to this document following the resolution. This information provides the forecast for the respective fund and the relative amounts for the adjustments. RECOMMENDATION: It is recommended Council approve Resolution #5635 adopting the proposed rate adjustments to the Light Maintenance Assessment. RESOLUTION NO. 5635 A RESOLUTION ADOPTING 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 that therefore Exhibit "A", attached hereto, has been proposed to correct the deficiency; and WHEREAS, said proposed assessments are reasonable and just; and WHEREAS, the City Council did, on July 15, 2013 by Resolution No. 5628 set a public hearing to be held on August 5, 2013 on said proposed increase to the assessments on real property within the City of Kalispell for the costs of the Light Maintenance District and gave the necessary Notice thereof as required by Section 7-1-4127, MCA; and WHEREAS, due and proper Notice of said public hearing has been given by the City Clerk by publication as required by law; and WHEREAS, said public hearing was duly held by the City Council at a public meeting thereof in the Kalispell City Hall beginning at 7:00 o'clock P.M. on August 5, 2013, and all persons appearing at said hearing and expressing a desire to be heard were heard, and all written comments thereon furnished to the City Clerk at said meeting prior thereto were given consideration by the Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL: SECTION 1. That the increase to the assessments on real property within the City of Kalispell for the costs of the Light 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 Light Maintenance District 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 19TH DAY OF AUGUST, 2013. ATTEST: Theresa White City Clerk Tammi Fisher Mayor EXHIBIT "A" Light Maintenance District Assessment increase over five years with caps remaining in place: FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 % Increase 15% 10% 10% 10% 10% Assess/sq.ft 0.00300 0.003450 0.003795 0.004175 0.004592 0.005051 7/3/01a Projected Expenditure Detoil 2 1 -202 - Historical Electrical Costs _Current Assessment Fund Review Proposed Assessment Fund Review Assessment Increase Comparison 2 7/3/2013 Assessment view: Expenditure Detail- Pr 'e ted2013ME -202 LE(;AT IIAHO ENANCE PROPOSED EXPE DMPLE FLWtr JOW41-kkW ACTU" !DOGES PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PR43PO EII PROPOSED NRO I FROPOSM PRUPb= I JF ili FY17113 1.-VIIIJ4 fV1;M5 F'YISna ri'[W7 FY1711 rrlarl nitr1A FT=t F3l "no 1xtf50n2t SCrrccs: $46,30Q SA9n 576.936 #' grX5 U1 ,494 W.856 $W'105 $89, S91.40A 594_M S9&" SW-7G5 MnrrFiakmnd3m1ces: $181.666 sms$ s 5219A40 5mm S_"+3I-M S707_031 S?4.3,45*_ S251-276 W31US4 $263_491 S272 904 f,2W.528 C-apitmC)"Oa; $0 yd �5 210A d SIT.j00 5I0,044 S1DA04 i1I ou 551kam 5LR000 s1U,000 510 M Dtbl Service. Ji7an equipment SR 50 S24.48 S24A3$ i'_4.4 i6 $24.438 S"_-k.-US SO 50 5n so 54 1'04al 5227_866 #256.(ga i za. 51U.7-A S354.316 53%6 t.'Q SA 4.193 S.#50.094 S399.158i Sx,'D_475 ASSUMPTIONS Projection to IFY 2023 Yearly Percent Increase o Personal Services: 3% In Maintenance Services °/a o Electricity 31% Minimal =quipment/IP Expenditures Debt Service on $corn Truck 3 7f 01 Electricity Costs Summary LIGHT MAINTENANCE FUND History of Electrical Costs 132,998 $137,30G S l a ,59f FY04 FY05 FY06 FY�)7 ywarly MITcrincc 4% 3% 1yr $137,341 $ $,.Is62e $149,746 $1 Sl,oaa FY08 FY09 FY10 FYI, FYI -2% d� 5% 314- 1% Average Yearly Increase % For 10 Years - % Increase in FY 13 and 14 S16I,OX EST FYI 3 7 $171,OW ES7 FYI 6% 4 7/3/013 Current AssessmentReview: Revenue and Fund Detail- Projected 2 1 3-2 2 LIGHT MAINTENANCE REVENUE AND FUND FUND: NtC-416-42M63 A AL. ACnAL BUDGET hrojvacd FrnjMtcd Frojeacd rTgi"ted r"Jsctea lsrojMed PIOJK1ld YtgJCsiCd ProjeKted €Y VU P ax4 F�'t4�15 FYlWV FY17118 FVJW19 FYtSaO F1'�p I FYZ1fZZ F3'27J7.4 BMINNINGCAS Ii SISUAn Slago S148,10'. 56&M ISit. "� (525x;y8+ + I 45.W).Mui isr,to6731 rp,.G.SZ, s#giw,e a, REVEhUE� M ahft RW=A seS =tft SM-$M #F]6A0 S2, 6.ow SLN 360 5-22+0.744 SM15i S245-W3 SiA.M 9250-519 3233.424 S255j34 S2-W 1 t0 Nisc, Faan). tttat $4,007 SE.2" S2.4w Si4w 5' Ana . 0-300 32-400 S2.4d0 V- 5240G $2.400 S2.400 TWAL V &HS-371 $4+t4791 �W.141 CS.T7.-UiD S21L.55!1 slgmv i521fr_ri.4S1 +5%1 49i IS.i71X&i iWl 113E EXPENDITURFS =7_M fi236A00 532p.4&- S.ZZS.Tr3 + StI A-V m5;M w5anu, 099AI8 S369SF5 SM-753 K m"M EMXNGCASH $I §1503 $148791 S$G,7Z? ,Uj-7�96w CTW469k d03 4 iSTK. M iS.469.9W3 � Ih '1. -a[rR'; SA31tr��i ti9Mr33?. ASSUMPTIONS Projection to FY 2023, 14o Arisessment Increase Nearly Percent Increase D Maintenance Assessments Current Rate (Oew ser,riM$J', T °/4 OUTCOME L Expenditures Euceed Total Available Revenues in FY 140115 Ending Cash Carryover, Depleted in FY 14115 Recarnmend Assessment Increase, Last Jn€rease wta5 in 200 7 j3/0 13 Chart -Current Assessment Projection LIGHT MAMTENANCE Current Assessment Review: Revenue and Fund Detail- Projected Di -3 425,000 $d00,000 $375,000 S350,004 S323,040 $300,4& . — 52T5,000 �� A S250,0N —0—ASSESSMENT REVENUE S225,00-0 FY11f12 FY12/13 F'YI3ft4 Ff14f15 M5 16 EYl6/17 FY17IS FV14/19 MW20 FY20/21 FY21f22 FU2/23 6 7/3/2013 Proposed Assessment Review: evenve ard Fund Detail- Projected 2013-2023 i i.ICSTMiAMME? NCE PROPOSED REVEN[R3 AND FUND SX 4 KARY FUND; 2400410-430263 BEGINNING CASH if FVkNif1`S Murarnance Assessments Mica, penauy, rreeeesa TOTAL AVAILABLE EXPENDITUIES ACTUAL ACTUAL I PBOP4b[I! I monsiD MOMSM PIIOPOSErI I FROP05ZO MUPOSER I PROPOSU I PAOPOSW "OPOSM I PROrO6E6 I PY1111.2 FYIM3. FYINI-I F'YI.V15 fr7f15l16 bi' 617 FY17AI; FY18119 M%rIO I F'Y20P-] F4'21f22 F1'T fL SlSa829 SI50543 S149.791 $343.137 %4-I9-I S.W.162 W.]69 SS3.8211 $Ii?.SQ:" i1-1:{?1 $16?,7i] S017% 1233335 5296.000 S'271.4m 11298.$Q 532.6394 $46M.357 S-39' -M SM 35i S397357 S P357 WT 357 54,007 S3.288 S2.4w S2AOO $ ° t2-40D S2,40B SL400 52400 5-9 4w P 5966 371 $4" 791 942 591 W3.067 5395.0RS 54W.395 $443A31 $"�L83 Sj =55 553' z:,j S582-414 S"1-513 S237 BU iZ d ow S3711 MA +4:v3-'S3v. 4 ' iiD ENDIN ,' CASH S16d 3 188791 5107-1=7 #132.471 S1[13.751 515;756 314L79 �FASSUMPTIONS OUTCOME Projection to FY 2023 sse5srl'1ent Collected Exceeds Projected 5 Year Assessment Increase Expenditures From FY 16/17 to FY 22 3 Mlinir»al Equipment p F penclitures 7 7Izo13 Chart -Proposed Assessment Projection M -- 5425,000 ,. s-l00,04C1 5375,000 $ 3 50,001) $ 3 25,0EG $ 300,000 ,$ 275,O00 $ 25 0,000 Proposed Assessmeni Review: Revenue and Fund Detail- Projected 201 - 023 --S--ASSf55MENT REVENUE -0- EXPENDITURES n225rOM - - — - - -- - N f-ft1/12 FY12173 FYI 3/14 FY14115 FV5/16 Fn6117 FYI 7�1a FY1$11P FY19/20 FY20/21 FYI f2T� f23 8 7/3/013 Assessment Adjustment Review LIGHT ? AINTENANCF Currew PYopmed Proposed Yraposed Proposed Proposed FY 12-13 FY 11.3-14 FY 11.4-15 FY 15-16 FY 16-17 FY 11-18 Asses#"M Increase Slr 15% 10% 1 1D% lil"e Annsmv�ot N FT 0,003N 0.005450 OM3795 10041.75 0.004592 O.ly]5D51 TY-Pia 5FR at 5,632 SF M-3nlhly Cast $2,16 $248 $2.73 SM0 $3.30 83.63 YcarlpTmalCost $23,90 $29.79 532.76 $36.03 $39.64 S43.50 ComnWicisl at 20,000 S1~ M-inffilyCosl 53.00 $5.75 $+6.33 $6.96 $7,65 $8,42 Yeody Toml Cou (t0.00 $69.00 $75.90 83.49 $91.84 S101.02 OUTCOME REVIEW: 5FR at 8,571) 5F Monthly Average Increase per Year = M30 Average Jncreose per Yeor = $3.54 Total Month Irive ase from 2013 to 2018 = $1.47 Total Annual Inefease from 2013 to 2018 = $17.70 OUTCOME REVIEW: COMMERCIA: at 20,000 SIF MonthIy Average Increase per Year = $0,68 Average Increase per Yecr= M62 Total Monthly Increase From 2013 to 2018 = 53.47 Total Annual Increme from 2013 to 2018 = $41.02