03. Resolution 5636 - Street Maintenance AssessmentsCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
MEMORANDUM
To: Mayor Fisher and Kalispell City Council
From: Doug Russell, City Manager 9\
Re: Street 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 Street Maintenance
Assessment. The last time this assessment was increased was in 2008. This resolution proposes
a 5-year adjustment program to the assessment as follows:
Street Maintenance: 5- year adjustment process of: 10%, 10%, 7%, 7%, 5%
The information that 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 #5636 adopting the
proposed rate adjustments to the Street Maintenance Assessment.
RESOLUTION NO.5636
A RESOLUTION ADOPTING AN INCREASE TO THE ASSESSMENTS ON REAL
PROPERTY WITHIN THE CITY OF KALISPELL FOR THE COSTS OF THE STREET
MAINTENANCE DISTRICT, KNOWN AS SPECIAL MAINTENANCE DISTRICT NO.
1.
WHEREAS, the City of Kalispell, pursuant to the authority provided to it under MCA 7-12-
4401 et seq., has established a street maintenance district known as Special
Maintenance District No. 1, for which real property within the city is assessed
costs for the maintenance and operation of the municipal street system; and
WHEREAS, a study of projected expenses and revenues of this maintenance district reveals
that, because of rising costs, the current assessment will not allow the city to
continue to provide the level of service to its street system that it has historically
maintained and that therefore the assessment schedule attached hereto as Exhibit
"A" 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. 5629 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 Special Maintenance
District No. 1 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 Special Maintenance District No. 1 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
Special Maintenance District No. 1 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"
Special Maintenance District No.1
Assessment increase over five years with caps remaining in place:
Current
FY 12/13
FY 13/14
FY 14/15
FY 15/16
FY 16/17
FY 17/18
% Increase
10%
10%
7%
7%
5%
Residential
Assess/s .ft
0.012220
0.013442
0.014786
0.016265
0.017891
0.019680
Commercial
Assess/s .ft
0.019000
0.020900
0.022990
0.025289
0.027818
0.030600
7/3120 .3
-Current Assessment Fund Review
Equipment Casts
Proposed Assessment Fund Review
Assess M- ent A lustment Comparison
10
7/32013
Current Assessment Review:
Expenditure Detail- Projected 13-1
SPECIAL S REM {6duda TSS} EKPEN P3FTt]RF
JLitC��4L BLroCk7 �L7}G6rt Rvjererd 1M�alex#rd �l�d �
FVIlf12 F'it}�L3 FVI-Vld Fi"1dJi3 FYMM FYtLg7 F1'l7rgtl
ChwFAn2
JersafWScvicea
M94.D97
54 ,7 1
W-2. s
5979.257
SIAO7"292
SJAM.23k
53.0b&M
Maaendsand Smices(M O)
S437.Mg
94R.3+)4
5:l0?fi6:
VA4.115
C616gpl*
SQ5.419
wl.i16
CapI111 O uley fe mti rlssessm"m
i217AS6
S270j"
5D
us -ow
:&45.000
4AS.Mo
S.tS"CIIO
DrNSrnice_S.16"I00
545.135E
5M.455
Sflb.499
546.4"
1%459
346.EE4 _
7olalOpraling L•nprndirm
1; 155 II
$1.739.270
SI-641?14
S1.7i5.230
S LZLI12L
SI.S06.629
SIM743
Pm-enxr. Rephremem Fundi SO4X(r0 SS87..0 l 117MOM 5290.0W SM0.000 VM.i0D
F.s ui unr l Re EvrLmeul finwh i I f:'S 1a S49.922J $ism 552.QW 135.0m WAD
ASSUMPTIONS
PrajectiDn to FY 2018
Yearly 'ercenit Increase
a personal Services: 3%
O ,Molntenonee Serwim gala
280,000 Expenditure /Year Pavernere
Restoration
MiWmal Equ(prnert#/C P Pxpenditures
Debt Service on 12 Yard Dump Trutks
11
7/32oi3
M
Current AssessmentReview:
Revenue and Fund Detail- Projected l 3- 1
.SCRIAL
I BLMGET
6L111GET
14nlrned
FM*Ird
Fn*, d
F1o�e[ad
rVU112
FFi7A3
Fl"Llrla
F'i'll+li
nS' Ik6
FrLOA7
F3'1711i
it�tlaINILV� i657i
Operr3h$ ( peal. twMIO1l, Cl1", dad pod+se-l-A)
vislj"0
".Iss
5754.310
$ ,7%
5267.366
15S$; !!1
IS4-!V lh!
vquprizmRq=irreoLPwsd
$15.474
536:94
57099
5.WVJ
556:834
P9.P4
$i4,g7a
Parr_rW RepLuwk q! RM
f 176.753
S21',[i62
5302A52
5D
5D
so
So
FAMV
MP.WAsIME Tami(rlolncrCut,
SJJ&b.853
$1.735M
31.MAM
5I735.000
5k;735.04Q
Operating{p oQalrrnieriaIFdelx
:CIP.Ardswvi0es)
$1.45t,653
SLAW.OW
$L,430.0W
S1,a20.Ofi0
SL,f20-030
SI"420,DW
Tolalbu�m.el
Dmigratrd for equiprrenL lePuce M
$35AW
535.0m
S35.ODD
$1$.Wo
W.000 SL5.030
535 UdU
Asu�smedl
DMgmtetl for pevc[tsn[ 3vplse
$2J3Q 440
5780 qO0
32.8O 0co
S280.0017
$280.000 5280.0M
51&O.OUp
F31PFl1PURP.S
Open inn i p umll. nr !'Belo. CIP.4ebl wli&v3eesl 91.555,1511 51,739.270 SI-631-214 51.725.Z70 765 S�,}AE�b $1.748.747
Equipmc+It RePlawrkeni Fund iM675 $4 M-975 535.000 s5ioffl S}S.004 T35.W
Pavml nl Ft.&6 J[inl rl,Hd M3,591 319iAM 5502.W 52.1G.00t7 52M.Oou tk>b-096 5294)L04d
FNDING CASH
Operr-rog( prrsonel. nm%- ids. OP. debt andse[rir ) S63 ."s $754.310 S552.796 S2672M IS;; 1+01 t5"r^s-1Irt i5,,M4J6l
Egw4ndnr ktpieccm rM fund $X.7" 571.799 $5+6,P4 S_+6.87i 53+1-87t $?q a-4 5,34,A7J
POW.TenL Replacement Furhd 5217,062 f3m.062 $0 54 16 M i0
ASSUMPTIONS
Projection to FY 2018
280,000 Expenditure f Year
Pavement Restorotion
Minirnal Equipment f ci P
Expenditwes
OUTCOME
Operating Expenditures freed Assessment Revenues in FY 15116
Ending Cash Carryover, Depleted in FY 15 f 1 b
No Expenditures for Equ'pmpni Rtaplucemenls
Recommend 5 Year A-uassrneni tncreose, Lost Increase wos in 2008
7J3j013
Equipment MP-E quipment Replacement Schedule
DWIWMi
11 Yard Tandem Trucks
S 2d0jm.(0
5 InDOCCO
S 25OeQ.DO
S 150 0W.011
IS 1da•UOA+3
5.6 Yard Vngle Axle Trucks
$
$
$ •
S
Ice Melt WoterTrucks
$
$
$ 134,OWOO
S
LKCTruck JTSSSoorn
5
Kwup Trucks
90.OMJOd
34030.00
S 45 CO
31)ACQ-011
$ 65,004-Ur]
S,+Fei rs
5
$ t0.0d0A0
S 40JDJ4,OD
a
$ 4U,OODOr]
�khoe
$
GrA- en
S
$
2f1D C00,00
$
Loaders
$
S -
ODd.O¢
S 21QOOd.D]
RQ&rs
$
$ rS,OQOAd
$ •
$ •
$
Pw61CM ;n1t Scm $ Crack seargr
$
$ -
$ lOQ CIOC+.04
$
LeolMacNnes
Flail MDwer#
Tragers
$ i],IUO-UO
$
5
$ 10004.04
7 00
m6c dqulp lSPPft Me4eer LJnitr TO Striper, Snow Blower Attachment, Air
rn ressorj
$ 3 J325,OO
$-OOdp,44
$ 200a0.46
$ 15.00(F.Ur]
Totals $ Z49,925,00 S SD6,OWM $ 544ro0040 $ 529,d04.00 9 487AMim
Equipment CIP Replacement Schedule Based on....
Hours, Miles, and Years
a Manufacture Suggestions
G Mechanical Experience
G Equipment Maintenance Cost Tracking
13
7J3/2013
Equipment Review-CIP Equipment
Replacement Priority Schedule
R
ia
EOUIPMENT CARJTAL IMPROVEMENT PLAN
t i
f-�L Cin Ll
i
EsL Cint
Ea C051
r=m Cost
Est- Cm
12 Yard Tande m Truda
$ 4a.�lOq.OU
5 151) =-00
i SO."m
5 Y;rLISingle AxeeTmCks
5
Ica Witt Water Truth
$
Lift Truck IM Boom
$
Wcku Trucks
Babeat
-
sweepem
$
Gar;khoe
-
Graders
$
Loaders
$
$ 19d,00U_04
Rollers
5
$ 55,476.Q0
PUFFS. rid halt Box Clad SUIer
1-saf MmeWime
Flail Mof.er
Tvm8ers
$ 10D,174
S 10.000.01)
5 15,4L�0.44
FAise Egulp I Sander/Deaver Lildt T35 Strl .Snow Blower Atlachmnt, Air Cam re5wr IS
3x U5.04
Totals $ 249,51MDO $ 205,M.04 $ 2AO.OW" $ Z00.11OO-00 S 185ANIOC
Equipment CIP Replacement Priority Schedule Based....
Hours, !'files, and Years
a Manufcctvre Suggestions
o Mechanical Experience
13 Equipment Maintenance Cast Tracking
14
7/3/2013
Proposed Assessment Review:
Expenditure Detail- Projected2013-2023
SPECIAL STREETS (includes TCS.S) PRC)POSED EXPEP1I711'i'[7itE
BLIDOHT F5vp4xd I Prvpassd I nwow I P, P-pacd Frvp�Z,�Pr"d PT•�-W Pad Proper'lY4 M3 F'YI-M's FVI�u15 FYIM6 f3i"? TTSIM F3fIO FJ'57rA FY17121 ii'17f,1.2 €Y1712
ftrminp
Pcrsana] SOrViM
S987,761
W2,094 $47' IV
S147192 Si.036.231
51.066.108
SL096.956 S1.128311
SC.161.711
F1.195AN
51 Z)(Mu1
M&aiaL9 and S6rYi=(M&O)
S435,3W
5S9L562 $6W.515
S61f0 $829,08
S64L31G
S654317 S667.434
S6W-782
S694398
S7(9286
Capioloutlay framase&smeFIts
$270.Om
SO S45.ODD
$45M $13MOM
545.W
$45A= S150,MO
S45,0%
S45.OW
S43-000
DdX Service
Id6 ] 19
$9b.454 459
S96 59 596.454
546.11�}
SO Sb
50
$0
S!I
To[al Operwing Expendirues
1hC 73ij.270
Ss1a541.214 51,725 23t1 !t1.165-356 SiMi.625 "l_7i}8.7a;
SC.7+Ni.343 $1.+34d
St.6$7 4$3
5C.983.}87
PBvrnssisl Ren]aee1710111 FLLnd $195.OG4 5SA2,Ob2 5284A00 5Z90.0DD $280,00D $= Jd047 5280 A4 5284.080 $160.U�4 5290)004 5287 (L04
Faniomeni R LA&"ment Fu.eds $0 $49,925 S2fl+4J44O 5217j" S200,0u0 520Dd1W S200,400 S200,000 S 100.800 &204Jp00 5206,044
Tocal Exptmdiwzcs $1.943.160 5? 4'KOS3 $2,2Eyi,?id SZ-25y-3S6 S2371.52& U278.`W S2,27t003 SI,426.'A5JZ32d42 s7,415J092 S2.4a&7
ASS° MPTIO s ;
Proievion to FY 2018
Yearly Percent Increase
L3 Personal Service,;: 3%
maintenance Services 2%
$ 280,000 Expenditure f Year
Pavement Restoration City performed
Equipment Expenditures S200,000
i5
7J3J2013
Proposed Assessment Review:
Revenue and Fund Detail- Projected 213-2
5PEG7AL STREETS (includes TM ) REVENUE AND FUND
BUEPGET
"reei
"-"d
PrrF,re.rd
Propecrd
Pr -d
Pra -d
"mrd
"-r d
Propmrd
Ar.p�d
FT12A3
I E'Y13n4
I FY14119
I Fj'M6
I FY16r27 I
F1AMF
I Fi'IRlf19
I Fl-t9m
I VV2Mnl
I FY21M
F3i273
BEGINNING CAM
OpmImSgp� LTn LLUV.khmd y,vt
S$56,$5
5754,�L1U
M61,2)6
S'i7`_.115
$-75.7G4
$,10738Z
$452.062
099.183
SS9rs.361
$657-Z91
S54 kn
Equipumme PcVzoemenl Fund
$34. 99
571.799
5221.874
S2:1.874
S204.874
5204-874
$204.874
S204_E7d
S2Od_874
S204.874
S204-374
P2vtrrtnr Repkemern Fund
$21-;g2
5302,Ofi2
54
SD
$ 124, W
SZ4().040
S-W.WO
$4W,=
$6W.000
$720.000
SW,000
R£YFNUE'
Msinten.ece Aswmic+Ms Tual (wifli irwmase) x1.9m.5w 53.[N4. a56
5_'._ $.3U} S2.40 i.!; b
S?.iT� lea
52-52x.723
52.323323
S15L.72'3 S2.523.723
S2.5D 7D
{peMHI l so W..r..rrS 1.42 8.5(10 51.619 350
S I, 3 i .W3 945
51.923.723
S I .".? D
S 1.92- ,72.3
51,933.7231 51.923,M
923.7'23
ESgalpmem Replacement Fwad S35.044 S200,000 52M.100
S2WOM S300,O00
5200.OW
52Oi1dN 6
&200,f00
S:iYf},4t3i1 $300SK)n
S200,fM
Pavement ReplsecInont Fuswd $28O 00 S2SQ,000 5:80.OW
S49C O04 5J00.004
$4W.U40
54Mrllilu
S460,t04
510 -000
Sr14O.kft
lixpnpl 1'UI[ti4
Operuing { exaso4l, rM100P. CZP. debt led
xmcrs) $1,739270 11,641,214 S1.725.230 51,W3515 S1.991.523 SLM,74;14 51,79fr.303 $1.946�45 $1,887,493 SL935,992 51464087
Equipment Replacement Fund $0 S49.925 5_11D.O00 $2I r3W $200.000 $204_UQO $200.000 520000 S204.OW $200JOW
Pavement Replacement 17und $I95,OOU S592J%2 5250.000 521W,000 5'.8 .040 $29D.C106 3280rGM S290100 SMOW 528Q040 S?i0.1100
hrrnl r�rc CAfill
Operatieg �ps.�r.� ,r�.w.,rn, r�r � b;ti i
$754,340
S561,-196
S475:1 16
53; .764
WJ-W
$4$2M2
IM9.W
S5".161
S652.2$1
S6 .62."
54'9.457
Equipment Rep!a0cmc9t Fund
$713N
S3Z1.874
521.974
5201,H7a
S2CA-974
5204.B74
S2N4374
S.Ng.E7.1
SZNn3.R74
SZG4.E74
$204.974
pavement Ftaplacamont Fund
$94202
SO
50
SIX,,W0
$240,Odl0
$360JIM
S490AW
S8U0_COD
S720.ODO
S940.0W
S96 A00
ASSUMPTIONS
Pno eGion to FY 2023
S Year Assn s nwr Inuease eo FY 2016
S20O.C100 Alkxatad fef E qu 1 p.nem
Repltaoernenls
"CO.000 Allomlad fo. Poremene
Rsitoaarfun Expendltxrer starting In FY
lSflb
OUTCOME
Assessm-�r t Collecled Exceeds Pro[ecred Expendilures Jo FY 2023
Enables the Replacemert and Purchose of Equipment
Enab[e; Increased Strael Pcivefnem Restoration God Surface Treatment
Enables QP Prof�43 for Necessary Shop lmprovernenl5 Replocement of Sond
Shed/Tzc Building Additions
16
7/3/013
Assessment Adjustment Review
SPECIAL STREETS (includes TSS)
Current
propomed
Propand
Pr*PWmd
Frapo&ad
Proposed
FV 12113
FV13N
FY14fl5
VVJ$1I6
FYE&17
F-YI7118
Arse munt lncre %
10%
10%
7%
7%
5
AssessfSclF1 (msiden[ial)
0.012220
0,413442
0.014786
0,016265
0.017891
0.019680
AssessfSclF1 �com IM%.1
U19000
0,0-209p0
0.022990
0.025289
0.027819
0,030600
Typical SM al 8.632 Sq Ft
EmMy Cosil
$8.79
9.67
S 10_E4
$11.38
S 12_ I S
512.79
Yearly TotWCnst
5105.48
Sl16.03
$127,63
$1M.57
$146,13
$153.44
Coitlinercial 100`f`o a[ 20,OW Sq Ft
Nltrtlhly Cost
01,67
S?4.83
S38.32
$41.00
3.87
S46D6
Yearly Total Cost
$380.00
$418.00
$459.30
$491.99
S526.43
$552.75
0UTCDME RFVWW- SFR at 8,�70SF
Monthly Average Incrense per Year = S0.130
Average lncraose per Year = $9,59
'otal Monthly In€reuse from 2013 to 2018 = $4.00
—otoI Annuo! Increo5e From 2013 1c 2018 = $47,95
OUTCOME REWEW: COMMtRC1AL or 20,000 SF
Monthly Average Increase per Year = $2.73
Avefioge Increase per Yew= S3Z79
Totol Monthly Increase from 2013 to 2018 = $14.40
Total Annual Increase from 20T 3 to 2018 = 172-73
17