05. Resolution 5638 - Urban Forestry 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'D Z
Re: Urban Forestry 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 Urban Forestry Assessment.
The last time this assessment was increased was in 2009. This resolution proposes an increase
for 5 years, followed by a reduction from that initial increase, as follows:
Urban Forestry: adjustment of the assessment from .00171/sq. ft. to .00271/sq. ft.
for five years and then reducing it to .00221/sq. ft.
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 that Council approve Resolution #5638
adopting the proposed rate adjustments to the Urban Forestry Assessment.
RESOLUTION NO.5638
A RESOLUTION ADOPTING AN INCREASE TO THE ASSESSMENTS ON REAL
PROPERTY WITHIN THE CITY OF KALISPELL FOR THE COSTS OF THE URBAN
FORESTRY MAINTENANCE DISTRICT.
WHEREAS, the City of Kalispell, pursuant to the authority provided to it under MCA 7-12-
4102 et seq., has established an urban forestry maintenance district, for which real
property within the city is assessed costs for the maintenance of the urban forestry
system; and
WHEREAS, a study of projected expenses and revenues of this maintenance district reveals
that because of the extraordinary costs of remediating the Dutch Elm disease
damage as well as other rising costs, the current assessment will not allow the city
to continue to provide the level of service to its urban forestry system that it has
historically maintained and that therefore an assessment schedule set forth in
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. 5631 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 Urban Forestry
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 and mailing 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 Urban Forestry 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 Urban Forestry 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"
Urban Forestry Maintenance District
Assessment schedule over six years will all caps remaining in place:
FY 12/=
FY 13/14 to FY 17/18
FY 18/19 to FY 23/24
Assess/sq.ft
1 0.00171
1 0.00271
0.00221
It's a Natural Equation
"Healthy Trees" _ "Healthy Community'„,,,„,,,,,w,�„
Jul' 2013
,)Z"47 Rocs & fispp,
Kalispell's Urban Forest
Although early records are incomplete, the City of
Kalispell pell has periodically inventoried and eared for street
trees back to the early igo's.
e Majority of public trees along city streets and boulevards
were planted from 1904 to 1914.
o Inventories were completed in 198, 1g8o, 1gg1 and
oo8og.
* Urban Forestry budget was established in 1997
Urban Forestry District was established in 2000.
* Inventory 008-0identifies 6,913 trees and 50
species
* With an estimated asset value of $20,000,000
Urban Forestry Program Objectives
O Commit to strict hazard reduction program for dead and dying
Removal trees each year.
Replacement Commit to strict replacement program for previously removed trees
and for new potential tree planting spaces.
Pruning Create a maintenance pruning program for all public trees. (All
trees less than " caliper will be train pruned annually)
Maintenance Continue with supporting and managing an in-house tree
Management ent maintenance division strictly for the management of public trees.
• Make available to the general public and property owners
Education information and education dealing with the selection and location
of trees, assist with compliance of the street tree and boulevard
maintenance ordinance.
Assessment History
2000
200
29 -
Curre nt
.00065
.00135
.00171
5. .49
li.6
14.7
$0.97
LP-
I
DUTCH ELM DISFAIRPR.5-
i
Dutch Elm Disease
Dutch Elm Disease symptoms 2006
<> 2009 dead elms were beginning to appear
IntTentories identified 390 American Elms
All 390 trees identified will eventually circum to
disease and need to be removed
To date, we have removed 24o trees
Mature American Elms typically 8o'in height
with a 39" diameter
Typical age is 6o years
Proposed Assessment Increase
❖Dutch Elm Disease
•+9 Capital Equipment Replacement
❖Operations & Maintenance
*.**Personal Services
Dutch Elm Disease
• 150 trees remaining to be removed next 5 years
• Estimated cost for removal and replacement -
$12-50 per tree
0 5 year combined program cost is $187,500
($37,500 Per year)
Capital Equipment Replacement
Two major forestry equipment replacements are
scheduled over the next 5 years.
Wood chipper IFY 14-15 - $45,250
Chipper truck FY 16/17 - $28,Soo
Operations & Maintenance
Operation & Maintenance-2%/
Personal Services
• Personal Services - 3 % / year
Assessment Increase Estimates
F 01 (current) .00171 $20,000
FY 2014- 018
FY 2019
.0021
.00221
*$oi,o8
2 74, Q 1
* Assessment revenues during the five year period will vary by a minimal
amount 1 — per year) based on growth.
Costs to Property Owners
1 .00171
201 - 01 .00271
6r 2023 .00221
14. DTI' $1.23
$23.39 Yr $1.94
S19.02 $1.58
FORESTRY PRE -ASSESSMENT REVENUE ENUE AND FIND SUMMARY
Be 'nnin P, Cash
Revenues
Arbor Day Grant
Forestry Prog Dev
Asswmcats
P&I on Assessments
Recycli11g, Mist Sales
Inception Lease
Investment Earnings
ENpenditurcs
Ending Cash
68,235 S58,ift 31,062-
S750
$750
S750
3,890
So
$2,000
207,7 3
$205,000
32D6,000
$1,666
S1,200
$1,200
"$1,125
$750
$750
$o
$20,000
So
$1,342
$1, 2 D0
500
Total Revenue from Operations SM ,4 6
$228,9oo
$211,200
Total Available $284,671
$287,06
$24z,262
S226+405
2!j6,024'
$2 9,421
5 ,186
$31f062
$2,841
FORESTRY PROJECTED REVENUE E1 UE 1D FUND SUMMARY
Ittzimaim,caab Sf18.x:3.! 5j5.18.�
Revenues
si,ssessmmt Rate d ok7k -0447t
Assessments 5207.71b3 $2.DS.<M
?disc Revel es S2,592 $n.9w
Total Revenue f 2lt46 $ng.9eo
TobdAvailable 5284,1i7i $237.086
Expenditures S2sf+.49(b S'AAQZ4
Ecru-S"I ssI5.185 s3�06i
r
Recommendations
• Increase assessment to address program needs
based on 5 year Dutch Elm Disease plan.
• Reduce assessment at end of 5 years, removing
Dutch Elm Disease program from forestry
budget.
4 't
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