Loading...
H08. Reso 5830 - Storm SewerCity ®f Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone 406 758-7000 Fax - 406 758-7758 MONTANA REPORT TO: Doug Russell, City Manager FROM: Rick Wills, Finance Director SUBJECT: FY2018 Budget - Storm Sewer Maintenance District MEETING DATE: August 21, 2017 BACKGROUND: The Storm Sewer Maintenance District Assessment is approved annually to provide a levy to fund the costs of the City's Storm Sewer Maintenance. For fiscal year 2018, staff is recommending a 50% increase in the assessment for all categories and caps. The amount of said tax shall be levied proportionately on an area basis in an amount per square foot of lot or parcel of land within the district, except public streets or rights of way. RECOMMENDATION: It is recommended the City Council approve Resolution 5830 adopting the Storm Sewer Maintenance District assessment for fiscal year 2018. FISCAL EFFECTS: Anticipated revenue to be generated by the assessment is $1,275,000. ATTACHMENTS: Resolution 5830, Storm Sewer Maintenance District Assessment August 7, 2017 Council materials Return to: City Clerk City of Kalispell P.O. Box 1997 Kalispell MT 59903-1997 RESOLUTION NO. 5830 A RESOLUTION ADOPTING AN INCREASE TO THE ASSESSMENTS ON REAL PROPERTY WITHIN THE CITY OF KALISPELL FOR THE COSTS OF STORM SEWER MAINTENANCE AND LEVYING ASSESSMENTS FOR THE COSTS FOR THE FISCAL YEAR 2017-2018. WHEREAS, the City of Kalispell, pursuant to the authority provided to it under MCA 7-12-4102 et seq., has established a storm sewer system, for which real property within the city is assessed costs for the maintenance and operation; and WHEREAS, all city residents derive significant benefit from storm sewer maintenance and the City Council therefore considers it prudent, within the existing statutory system, that all property owners should pay some assessment for the benefits of the storm sewer system; and WHEREAS, it is prudent and necessary for the City Council, from time to time, to evaluate the existing assessment structure, to review the maintenance requirements of the storm water system and the adequacy and equity of the assessment schedule; and WHEREAS, in addition to the increasing costs of materials due to inflation, the storm water regulatory requirements of the State of Montana have increased dramatically in recent years which have increased the costs to the City of maintaining compliant storm water infrastructure; and WHEREAS, at a public hearing held on the 7th day of August, 2017, the City Council did consider all objections made to said estimate and to the basis of levy and assessment for payment for said cost. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA: SECTION 1. That the increase to the assessments on real property within the City of Kalispell for the costs of Storm Water Maintenance 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 Storm Water Maintenance to the inhabitants of the City of Kalispell as set forth in Exhibit «A» SECTION 2. That a tax be levied for the assessment cost, or $1,275,000 be in the amounts set opposite the description of each lot or parcel of land, as shown by the special assessment lists on file in the office of the City Finance Director. SECTION 2. The amount of said tax shall be levied proportionately on an area basis in an amount per square foot of lot or parcel of land within the district except public streets or rights of way. Category 1. $.004320/sq.ft. Vacant land up to 2 acres Vacant land over 2 acres $376.36 maximum Category 2. $.008354/sq.ft. Residential land up to 1/2 acre Residential land over 1/2 acre $181.94 maximum Category 3. $.0014985/sq.ft. Commercial (non-residential) up to 90% covered Category 4. $.018732/sq.ft. Commercial 100% covered Public and private parklands, as defined by Kalispell City Code 28-3-19, and cemeteries shall be exempt from the assessment. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 21 ST DAY OF AUGUST, 2017. ATTEST: Aimee Brunckhorst, CMC City Clerk Exhibit A Mark Johnson Mayor Rate S/SgFt FY18 FY19 FY20 FY21 FY22 Category Current rate 50% 9% 8% 8% 5% 1. Vacant 0.002880 0.004320 0.004709 0.005086 0.005492 0.005767 la. Vacant w/ cap 2 Acres 250.90 376.36 410.23 443.05 478.49 502.42 2. Residential 0.005569 0.008354 0.009105 0.009834 0.010620 0.011151 2a. Residentialw/cap @ 0.5 Acres 121.29 181.94 r 198.31 r 214.18 r 231.31 r 242.88 3. Commercial90% 0.009990 0.014985 1 0.016334 1 0.017640 1 0.019052 1 0.020004 4. Connnercial 100% 0.012488 0.018732 1 0.020418 1 0.022051 1 0.023815 1 0.025006 5. Parkland 0.000000 0.000000 1 0.000000 1 0.000000 1 0.000000 1 0.000000 City of Kalispell Post Office Box 1997 - Kalispell, MT 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 To: Doug Russell, City Manager From: Susie Turner, Public Works Director Re: Public Hearing on Amendments to the Storm Sewer Maintenance Assessment Meeting Date: August 7, 2017 BACKGROUND: As part of the preliminary budget process it was identified the Storm Sewer Assessment Fund required a review for potential assessment adjustments. The Fund's projected revenue using the current assessment criteria did not provide the finances to operate/maintain the utility at the same level of service and ensure the city will meet current and new stormwater regulatory requirements of the State. City Council has participated in multiple meetings reviewing alternative level of service and the correlated assessment increase for the Storm Sewer Maintenance Fund. As a result of the meetings, Council selected an assessment increase that supports a level of service in order to provide material, personnel, and equipment resources to: 1. Maintain and operate the utility 2. Meet current/new permit requirements 3. Complete capital projects to: a. Improve and maintain the stormwater system b. Improve water quality discharges to quantify pollutant reduction to ensure permit compliance c. Support growth related projects As part of the consideration for the assessment increase, notification and public hearing processes are applicable. As such, the requirement for a public hearing prior to Council taking action for the proposed amendment is scheduled for the August 7, 2017 Council Meeting. The proposed amendment notice was advertised via local newspaper and sent to all property owners within city limits per Montana Code Annotated 7-12-4177. The notice provides assessment increase information and directed the public on how to provide input on the proposed amendments. To date the City has logged 30 comments from the public. The log is attached for Council reference. ATTACHMENTS: Proposed Assessment Increase Notice Mailed to Property Owners Storm Sewer Maintenance Customer Comment Log. CITE' OF I4:AAL,ISPELL NOTICE OF PUBLIC HEARING ON PROPOSED RATE INCREASE NOTICE IS HEREBY GIVEN, that on the 7th day of August, 2017 at 7:00 p.m., in the Council Chambers, City Hall, 201 1 st Avenue East, Kalispell, Montana, the City Council of the City of Kalispell shall hold a Public Hearing on a proposal to increase assessments on real property within the City of Kalispell for the costs of the Storm Sewer Maintenance District. Any person wishing to address the proposed assessment rate increase may appear at this hearing and make oral statements or present same in writing. Written comments may also be submitted for Council consideration by delivering the same to the City Clerk at 201 First Avenue East, Kalispell, MT 59901, or by email to cityclerk@kalispell.com prior to the hearing. If there are questions that might be answered by telephone please. call (406) 758-7720. Proposed Storm Sewer Maintenance Assessments A program -need assessment increase over five years, as shown in the table below, should allow the city to maintain and operate the utility, meet current and new permit requirements and complete capital projects to improve the stoimwater system and improve water quality discharges to quantify pollutant reduction to ensure permit compliance through fiscal year 2027/2028. Rate $/S Ft FY18 FY19 FY20 FY21 FY22 Category Current rate 50% 9% 8% 8% 5% 1. Vacant 0.002880 0M4320 0.004709 0.005086 0.005492 0.005767 Ia. Vacant w/ cap @ 2 Acres 250.90 376.36 410.23 443.05 478.49 502.42 2. Residential 0.005569 0.008354 0.009105 0.009834 0.010620 0.011151 2a. Residential w/ca @ .5 Acre 121.29 181.94 198.31 214.18 231.31 242.88 3. Commercial 90% 0.009990 0.014985 1 0.016334 1 0.017640 1 0.019052 1 0.020004 4. Commercial 100% 0.012488 0,018732 0.020418 0.022051 1 0.023815 1 0.025006 5. Parkland &e Cemeter 0,000000 0.000000 0.000000 a000000 0.000000 0.000000 The following table provides an assessment adjustment comparison for the gain assessment categories. Square Current FY 18 FY 19 FY 20 FY21 FY22 Description Feet RatelYear CostlYear Cost[Year CostlYear Cost/Year Cost/Year % Increase 50% 9% 8% 8% 5%n Single Family 8,000 $44.55 $66.83 $72.84 $78.67 $94.96 $89.21 Residence Commercial 50,000 $499.50 $749.25 $816.68 $882.02 $952.58 $1,000.21 (90%) Commercial 50,000 $624..40 $936.60 $1,020.89 $1,102.57 $1,190.77 $1,250.31 (100%) Aimee Brunckhorst, CMC City Clerk Publish: July 21, 2017, and July 27, 2017 STORM SEWER MAINTENANCE RATE INCREASE - CUSTOMER COMMENT LOG RE: NOTICE OF PUBLIC HEARING CUSTOMER Residential ACCEPTING CUSTOMER CUSTOMER CONTACT.: or OR STAFF DATE NAME ADDRESS PHONE/EMAIL Commercial? COMMENTS AGAINST NAME STAFF RESPONSE (INCLUDE DATE) Mary 701 South Being charged for lights She wanted to review her tax bill so 1 7/26 Wiersma Meridian (2 314-6020 Residential and sewer that she Against Kathy transferred her to City Assessor. lots) doesn't have. States he does not have a 07/26/17: Explained to the storm drain at his address customer that the and feels he should not be system helps reduccee floodingand assessed for it. States he pollutants from entering our water James 1570 Condor doesn't have any city trees bodies. Pollutant can come from 2 7/26 Carlin Drive 257-7752 Residential either. Also, when he was Against Jana/Terri road run off, ditches, lawns, annexed he didn't have culverts. Explained that every access to City garbage for residence benefits from this system. five year. Taxes keep *Transferred to Parks for Forestry increasing but his wage doesn't. questions. 07/26/17: Explained if the increase Would like to know if was approved, it would pass on 3 7/26 Nancy 1 Sth 7.55-0300 Residential approved, when will it take N/A Jana August 21 st. 2017 (confirmed with Ross Avenue East effect Aimee B). And it would reflect on her November 2017 tax bill. I explained the stormwater system as .Tana did above. He stated that our stormwater drains, etc. were poorly built and the engineers that 4 7/26 Greg Hams Would not 885-5252 Commercial Asked what the increase N/A Kathy did the design work were terrible. provide goes to. He then vented about a recent Public Hearing he went to that was "a joke". He said he will contact Terry Mitton. I suggested we have someone call him but he objected. 07/26/17: Explained storm sewer Ronnie 2245 Did not understand the system and the assessment is for 5 7/26 Seek Merganser 257-3797 Residential letter Against Jana the cost of operating and Drive maintaining the city storm sewer system. Wanted to know what would be the new assessment for her address. 07/26/17: Provided her with what 6 7/26 Della 2230 Widgeon Did not want to Residential Wanted to know how we Against .Jana her current assessment is and what Curda provide came up with the increase the new assessment would be if percentage. Against the 50 approved. increase was her main concern. Wanted to know increase Gerald & 740 W Railroad amount. Mentioned that he amount Gave city council information. 7 7126 Hattie vacant may have to increase the Against Michelle recommended he come to public Stahlberg St rent we pay him for an hearing. easement. 110 & 108 07/26/17: Provided her with what Penny Ranchview Wanted to know the her current assessment is and what 8 7/26 Lestiko Drive/ 2001 & 406-871-9968 Residential increase on her duplex Accepting Kathy the new assessment would be if 2003 S properties. approved. Meadows Drive STORM SEWER MAINTENANCE RATE INCREASE - CUSTOMER COMMENT LOG RE: NOTICE OF PUBLIC HEARING CUSTOMER CUSTOMER CUSTOMER Residential ACCEPTING STAFF DATE NAME ADDRESS CONTACT: or COMMENTS OR NAME STAFF RESPONSE (INCLUDE DATE) Wanted to know what the 07/27/17: Explained storm sewer George 202 Columba letter meant and what his system and the intent of it. 9 7/27 Columns Drive 406-755-4830 Residential increase would be. Also Accepting Jana Provided customer with the stated he does not have a proposed assessment amounts. storm drain. I informed him that the increase He asked where the runoff will reduce flooding and improve goes. He also wants to water quality discharges by 10 7/27 Gary Green Acres & 885-6575 Residential know how we will reduce Accepting Kathy reducing pollutants that go to the Cockrell 22-3rd Ave E pollutants in the water water bodies. I transferred him to bodies. Joe Schrader to address how we reduce the pollutants in the water bodies. 07/27/17: Provided her with her current assessment and what the 11 7/27 Ali Bissell 2205 Ruddy 406-752-2836 Residential '''anted to know what her Against Jana new assessment would be if Duck increase would be. approved. Transferred to Parks regarding her questions on the Forestry Gordon 34 S Main What is the difference Transferred to Budget Resource 12 7/27 Pirrie Street Commercial between commercial 90% Jana Manager for response. and commercial 100% 07/27/17: Explained what the Asking why we aren't assessment increase would cover if including this increase with approved. Also explained the letter 13 7/27 Tom 207 4th Avenue 253-6097 Residential the 40% increase that the Against Jana he is referring to from two weeks Rodantc E county is doing. He states ago was not sent by the city and he received a letter two that the city and county are weeks ago from them. separate entities. Encouraged him to attend the council meeting. 07/27/17: Explained what the storm Does not have a sewer system is and how it benefits 14 7/27 Ed Snoeck 95 E Nicklaus 249-1281 Residential storrnsewer drain. would Neutral Jana all properties within the City, he he still be assessed? would still be assessed if approved. Transferred to Parks regarding his questions on the Forestry. I initially provided his current rate When does the increase Against the and the proposed rate based on 15 7/28 Jerry 125 Bing Ct 591-4211 Residential begin and what is my rate rate that's ,Joe S 8,000 sq.ft. I called back after I Bonneau being reviewed his current and future increase proposed assessment and left a voicemail with the correct data. Where will the money go Patrick and I conveyed the purpose Jim 157 N. and what has been done of the assessments. Customer is 16 7/28 Thompson Meridian Rd 857-3366 Commercial with the large amount of Against S/Patrick against the increase and will attend Suite 109 impact money that was the public hearing. raised 17 7/2R Raegan 1978 Teal 406-249-(1954 Residential I am against this rate Against Email to Email sent to Council and staff Rascoe Drive increase. Aimee 18 7/2R Opal 106 Buffalo 406-756-7177 Residential Not able to make this Against Email to Email sent to Council and staff Deming Stage meeting, very much oppose Aimee CaroleDisabled 2136S. veteran on fixed Email to 19 7/31 Rolphe Woodland q06-300.17R7 Residential income Against Aimee Email sent to Council and staff Drive STORM SEWER MAINTENANCE RATE INCREASE - CUSTOMER COMMENT LOG RE: NOTICE OF PUBLIC HEARING CUSTOMER CUSTOMER CUSTOMER Residential ACCEPTING STAFF DATE NAME ADDRESS CONTACT: or COMMENTS OR NAME STAFF RESPONSE (INCLUDE DATE) 20 7/31 .Janet Residential Cannot afford a 50 k tax Against Email to Email sent to Council and staff Tripper increase Aimee 21 7/3l Terry 114 Sunny 406-212-4688 Residential Senior on fixed income against Email to Email sent to Council and staff Aurich Court Aimee Amber Massey 54 Empire Wanted to know the Provided with current rates and 22 7/31 (father Loop Residential amounts of the increase for N/A Jana proposed rates for property. calling in property. her behalf) Voiced he is strongly against the assessment Explained to Ron what the increase. He feels the assessments increase would cover. 2241 money should be spent else Addressed his other concerns 23 7131 Ron Merganser 406-756-0607 Residential where like maintaining Against Jana regarding snowplowing, dust Hut zenbiler Drive traffic control and speeding complaints, sidewalk issues. I within the city. Listed encouraged him to attend the multiple complaints he had council meeting regarding issues within the city. 643 1/2 S. What will new rate be? Explained rate. No call back 24 7/31 Chad ]ones Meridian Road 250-5219 Residential We are being taxed out of Against Tom T. needed. this town. 25 7/31 Steve Residential Address goals from Against Steve Email sent to Council and staff Franks existing resources Franks 26 8/1 Judy 804 4th Avenue Residential Can't afford a 50% Against Judy Email sent to Council and staff Williams West Increase Williams Has a septic tank, does it Explained what the storm sewer Von 1500 Memory apply to him. What is his system is and how it benefits all 27 8/1 Lindsay Lane Residential current rate and furture N/A Jana properties within the city. Provided rates. him with his current rate and what the proposed rate would be. 28 8/1 Eloise Hill 467 Sixth Ave 406-755-6057 Residential To much increase on fixed Against Email to Email sent to staff WN income Council Karen Multiple Letter to 29 8/1 Cromwell Addresses and Double Taxation Against Council Email sent to Council and staff Assessor #'s Part of her property is Muriel actually a residence, she is provided with current rates and 30 8/1 Hagerman 220 E Center St 406-752-2320 Commercial very upset and concerned against Michelle proposed rates for property. about the price increase. Very much against