4. Costs of Services PlanCity of Kalispell
Planning Department
17 - 2"d Street East, Suite 211, Kalispell, Montana 59901
Telephone: (406) 751-1850
Fax: (406) 751 -185 8
Website: kalispellplann%ng. com
REPORT TOO Kalispell Mayor and City Council
FRObts Tom Jentz, Planning Director
James H. Patrick, City Manager
SUBJECT: Review Cost of Services Plan and Documentation
IdEETING BATE: September 24, 2007 Council work Session
Members of the council have requested a work session to discuss the Cost of Services
Plan prepared by city staff whenever an annexation is proposed. Please find attached
to this memo a single page form. entitled "Cost of Services Analysis Form". This is a
copy of the document that is sent out to the council as a part of each annexation. It
factors in the cost to each city department that a proposed annexation potentially
could have. This form also records all anticipated local taxes and assessments. At
this point the difference between costs paid and revenue received gives the council an
understanding of the annual impact to the city a particular annexation may have. The
form also lists the one time "impact fees" paid so that the council also has this figure
at hand.
The second attachment is a four page document entitled "2007 Annexation Cost of
Services Fact Sheet". This Fact Sheet provides the analysis and justification for each
city department cost and for the tax revenues received as shown on the Cost of
Services Form. It also provides a summary for impact fees imposed. This fact sheet is
not distributed, but instead is the working information we use to generate the Cost of
Services Analysis Form.
At the work shop we will be available for questions and a discussion of hove the Cost of
Services plan is developed and used.
Respectfully submitted,
Y
Tom Jentz ames H. Patrick
Report compiled: September 19, 2007
c: Theresa White, Kalispell City Clerk
TITLE
COST OF SERFVCCES ANALYSIS (VACANT RESIDENTIAL LAND OVER 2 ACRES)
DATE
PROJECT DETAILS
Number. of dwelling units proposed to be annexed.
Estimated increase in population:
Average square foot per lot:
Assessed value per property:
I .—COST OF SERVICES
Per capita costs based on increase in population: 0
Fire: $0
Police: $0
Administration: $o
Solid Waste: $0
Costs per dwelling unit or Equivalent Residential Unit (ERU): o
Roads: $0
Water: $0
Sewer: $0
Wastewater Treatment: $0
Stormwater: $0
TOTAL ANTICIPATED COST OF SERVICE $0
2. ANTICIPATED REVENUE. ... ......... GENERATED. ..... ..
Assessments used on average square foot per lot: 0
Storm sewer assessment: 0
Street maintenance assessment: 0
Urban forestry assessment: 0
Light maintenance assessment: 0
Special assessment: 0
TOTAL ANTICIPATED REVENUE FROM ASSESSMENTS = $0
3, TAX REVENUE
Assessed value per property: 0
Total assessed value: 0
Total taxable value: 0
Total additional revenue based on 170 mill levy: 0
TOTAL ESTIMATED TAX REVENUE : $0
4. IMPACT FEES
Sewer impact fee: 0
Water system impact fee: 0
Stormwater impact fee 0
Police impact fee 0
Fire impact fee 0
TOTAL ESTIMATED IMPACT FEE = so
5. TOTAL ANTICIPATED REVENUE GENERATED TO THE CITY ITEMS 2 AND 3}
0
d
0
0
$D
o. ONE 1 IME IMPACT FEE PAYMENT 1-0 THE CITY {ITEM 4} $0
i . NET REVENUE TO THE C'ITY PER YEAR (ITEM 1 - ITEM 5) $0
2007 ANNEXATION COST OF SERVICES FACT SHEET
ANNUAL OR RECURRING COST OF SERVICES:
Cost of services analyses are conducted both for residential developments and for commercial
annexations. Cost of services for a residential annexation are typically based on the increase
in population a given property would generate. Estimates are calculated using the 2006 US
Census figure of 2.57 per household and/or dwelling unit. The cost of services for
commercial properties is highly variable and is estimated by either acreage of the property or
the number of equivalent residential units (ERU) a commercial property would generate. The
following list details the costs that would be incurred by the city for services and maintenance
of infrastructure.
Fire and Police
The factors for Fire and Police are calculated using the number of calls that are initiated by
each type of development (residential or commercial) and then divided by the allocated budget
from the previous year, in this case fiscal 2006. For residential development this number is
divided by the current city population of 20,000 and for commercial development this number
is divided by the number of existing total commercial acres in the city. Below is a summary of
the factors used in the calculations.
• Percentage breakdown of calls between residential and commercial development. -
Residential calls = 68%; commercial calls = 32%. Percentages of calls were derived
from the Final Report for Impact Fees for .Fire and Police Service (December 2006)
* Total commercial acres inside the city of Kalispell = 815 acres
(this includes commercial, government facilities, health care, industrial, professional
office, public and museum land uses) (information accessed from the Planning
Department's database in September 2006)
• 2006 Fire Department Budget: $2,393,257 (does not include grants or EMS)
* 2006 Police Department Budget: $3,056,432
Fire cost of Service: Residential - $81.37 per person per year;
Commercial - $940.26 per acre commercial per year
Police cost of Service: Residential - $103.92 per resident per year;
Commercial - $1,200.81 per acre commercial per year
Administration
The 2006 administrative transfer budget of $894,068 was divided between the number of
commercial and residential acres within the current city limits. The density for a given
residential annexation would then be factored in to produce a per capita or per unit factor.
Cost of service: $135.07 per acre residential $142.70 per acre commercial
Solid waste: None for five years
Roads: $426.00 per dwelling unit or equivalent based on commercial use (see Exhibit 7 from
the Final Report: Impact Feed for the Transportation System (February 2007)
Water: $197.63 per Equivalent Residential Unit (based on meter size -refer to Table 5-5:
Allowable Water Systems Impact Fees from the Revised final Report for Impact Fees for the
Water, Wastewater and Stormwater Systems (December 2006))
Sewer: $108.21 per Equivalent Residential Unit (based on fixture count —refer to Exhibit 8 of
the Revised Final Report for Impact Fees for the Water, Wastewater and Stormwater Systems
(December 2006))
Wastewater Treatment: $167.43 per Equivalent Residential Unit (based on future count —
refer to Exhibit 8 of the Revised Final Report for Impact Fees for the Water, Wastewater and
Stormwater Systems (December 2006))
Stormwater: $65.51 per Equivalent Residential Unit (6 ERU /acre for commercial property)
Parks: $78 per Equivalent Residential Unit based on the residential population of the city
and the 2006-07 parks department budget of $607,57 1.
ANTICIPATED ANNUAL REVENUE GENERATED:
ASSESSMENTS- Assessments for storm sewer, street, urban forestry, and light
maintenance are based upon the average square footage of the lots to be annexed. The rate at
which a property is assessed is dependent on the type of property (commercial or residential)
and/or the amount of development that exists or is proposed for a given. property. The
categories used to determine the calculations for the four assessments are listed below. The
assessments were adopted in August of 2007 and are updated on an annual basis.
Vacant land
Vacant land over
over 1 /2 acre
Commercial
Commercial
2 acres capped
capped
land that is
land that is
87,120 s ft)
(21 ,780 s ft
90 %covered
100 %covered
Storm sewer
assessment
$0.002583
$0.004995
$0.008960
$0.011200
(per. sq ft
Street
maintenance
$0.011110
$0.011110
$0.016390
$0.017270
assessment
(per sq ft
Urban forestry
$0.001350
$0.001350
$0.001350
$0.001350
assessment
ft
($150 cap)
($150 cap)
($300 cap)
($300 cap)
er s
Light
maintenance
$0.003000
$0.003000
$0.003000
$0.003000
assessment
($150 cap)
($150 cap)
($300 cap)
($300 cap)
(per sq ft)
14
TAX REVENUE: The estimated property tax revenue that will be generated from the site at
full development. It is based on an estimated market value of the property and the number of
existing or proposed developed lots.
Market Value =
2007 current/projected value provided by applicant
Assessed Value =
market value x 0.03543
Taxable value =
assessed value x mill levy
2007 Mill levy =
162.85 (Resolution 5224)
IMPACT FEES:
Impact fees are calculated using the Public works Department's fee determination schedule
which is based on two reports adopted by the Kalispell city council *n December of 2006: the
Revised Final Report, .impact Fees for Water, Wastewater and storm systems and the Final
Report Impact Fees for Fire and Police Services. Figures are based on assumptions made at the
time of annexation and may not represent accurately the costs associated with the existing
property or proposed subdivision. water and sewer impact fees would be collected at the time of
connection to services and generally, stormwater, police and fire impact fees would be collected at
the time development is proposed and a building permit is issued.
The number of residences or ERUs that exist or are proposed, meter size, acreage, impervious
surface, square feet of useable space and the way in which stormwater is retained are all factors
in the determination of impact fees for a specific project. Impact fees for residential annexations
are based on the number of residences or ERUs that exist or are proposed. Impact fees for
commercial properties are determined based on meter size, square footage or the properties
equivalent to one single family home or residential unit (ERU).
Water System Impact Fees (Resolution 5149)
Meter size
Residential*
1"
1 'r2"
2"
X)
4"
Impact Fee
$2Y155
$5,388
$10Y775
$17,240
$34Y480
Calculated
*Commercial customers with residential type usage pay the residential fee
Wastewater Impact Fees (Resolution 5150)
Item
Treatment Collection Total
Total Impact Fee Per ERU $1,397.00 $11036.00 $21433.00
3
A single family home is (1) ERU all other types of construction to be calculated.
Stormwater Impact Fees (Resolution S 1 S 1)
Stormwater Impact Fee per ERU $1,1092.00
A single family home is (1) ERU all other types of construction to be calculated.
An ERU is defined as 2,400 square feet of impervious area.
Police Impact Fees (Resolution 5162)
Development type Impact Fee
Single Family (residential) per unit $43.00
Apartment per unit (multi -family) $34.00
Commercial per 1,000 sq ft of building space $13.00
Fire Impact Fees (Resolution 5163)
Development type Impact Fee
Single Family (residential) per unit $533.00
Apartment per unit (multi -family) $422.00
Commercial per 1,000 sq ft of building space $240.00
NOTE: This information is based upon assumptions regarding building valuations and does not
take into consideration the build -out time or changes in methods of assessment and estimated
costs associated with services. This information can only be used as a general estimate of the
anticipated cost of services and revenue.
M