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