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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 V A