HomeMy WebLinkAbout04-08-19 City Commission Packet Materials - A2. Res 5042, Amending the FY19 Annual Budget for Willow Springs Townhomes
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Kristin Donald, Finance Director
SUBJECT: Commission Resolution No. 5042 – Amending the City’s Annual Budget
for the Workforce Housing Fund Appropriations for the Fiscal Year
Ending June 30, 2019 (FY19).
MEETING DATE: April 8, 2019
AGENDA ITEM: Action
RECOMMENDATION: Approve Resolution No. 5042- Amending the City’s Annual
Budget for Workforce Housing Fund Appropriations.
BACKGROUND:
Willow Springs Townhomes, located at the corner of Hoover Way and Sartain Street, is a project
proposed December 13, 2017 to CAHAB and the board recommended the project for funding. The
project will provide 24 units, priced to be affordable to households earning 70% of the Area
Median Income. The homes will be deed restricted and held in a land trust to ensure that the homes
are affordable in perpetuity. This model uses a 75-year, renewable ground lease that limits resale
prices - allowing for a fair return to buyers to move into market housing in the community, while
ensuring that the community's investment in affordable housing endures beyond a single purchase.
The project has had some delays due to bids coming in at a price point that was not feasible to hit
affordability targets. HRDC has chosen to phase the development and the project will be out to bid
211
again this month, we will need to know if this funding will be available to us in order to proceed
with entering into a contract with a builder. The project will go through the normal planning
process and steps for approval.
HRDC is requesting the City to assist in this effort as well, by committing $20,000 per unit, in lieu
of the onetime $10,000 down payment assistance. HRDC is preparing to build the first 12 units in
Willow Springs in summer 2019. At this time, the request is $240,000 to support the first phase of
the development.
ALTERNATIVES: As suggested by the Commission.
FISCAL EFFECTS: The current budgeted spending in the Workforce Housing Fund will
increase by a total of $240,000. The FY19 estimated ending cash balance in the Workforce
Housing Fund will be decreased from $1,002,092 to $762,092. The fund balance includes recent
cash in lieu received.
Attachment: Resolution No. 5042 HRDC Request
Report compiled on March 27, 2019
212
RESOLUTION NO. 5042
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AMENDING FISCAL YEAR 2019 (FY19) WORKFORCE HOUSING FUND
BUDGET TO INCLUDE ADDITIONAL EXPENDITURES OF $240,000.
WHEREAS, the City Commission did, on the 25th day of June, 2018, after due and
proper legal notice, conduct a public hearing and adopt a municipal budget for Fiscal Year 2018-
2019 (Fiscal Year 2019); and
WHEREAS, the City Commission did, on the 8th day of April 2019, after due and
proper legal notice, conduct a public hearing on proposed amending the municipal budget.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, to wit:
Section 1 – Appropriation Changes
The City Commission of the City of Bozeman, Montana, does hereby authorize the
following changes to expenditures in the Workforce Housing Fund:
Additions: This project and amount is added to the FY19 budget. Willow Springs Project $240,000.00
Total Appropriations Changes: $240,000.00
213
Resolution 5042, Budget Amendment for Workforce Housing Fund for FY19 for Willow Springs Townhomes
Page 2 of 3
Section 2 – Use of Cash on Hand in the Workforce Housing Fund
The increased appropriation will be funded with cash on hand in the Workforce
Housing Fund.
Section 3
Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full
force and effect on July 1, 2018.
Section 4
That should it be found by any court of competent jurisdiction that any section, clause,
portion, sentence, word, or phrase of this resolution is deemed to be contrary to any existing law
or regulations, that in this instance, it is the intent of the City Commission of the City of Bozeman,
Montana, that all other portions, sections, words, clauses, phrases, or paragraphs of this document
shall remain in full force and effect
214
Resolution 5042, Budget Amendment for Workforce Housing Fund for FY19 for Willow Springs Townhomes
Page 3 of 3
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 8th day of April, 2019.
___________________________________
CYNTHIA L. ANDRUS Mayor
ATTEST:
_________________________________
ROBIN CROUGH City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
215
216