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HomeMy WebLinkAbout09-16-19 City Commission Packet Materials - A5. Res 4894, Special Assessment Levy for SID 745 for West Oak and North Ferguson Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Commission Resolution No. 4894 – Special Assessment Levy for Special Improvement District No. 745 for Local Improvements to Oak & Ferguson MEETING DATE: September 16, 2019 AGENDA ITEM: Action RECOMMENDED MOTION: I hereby move to adopt Resolution No. 4894 levying a special assessment upon benefitted properties within Special Improvement District No. 745. BACKGROUND: The City Commission created Special Improvement District No. 745 (the “District”) on April 22, 2019 for the purpose of purchasing certain local improvements in and about North Ferguson Avenue between West Oak Street and Baxter Land and West Oak Street between Davis Lane and North Ferguson Avenue, and financing the costs thereof and incidental thereto. Adoption of Resolution 4894 will levy the assessment upon all benefited properties located within the District, using as a basis of assessment the area method as described in the Resolution No. 4893, Resolution of Intent to Create Special Improvement District 745. Notice of this hearing, at which objections to the adoption of Resolution 4894 will be heard, was published and mailed to the owners of property within the Districts in accordance with 7-12-4177, Montana Code Annotated. 479 Special assessments are collected in the same manner and at the same time as assessments, and are payable in two installments, one-half on or before November 30 of each year; and one-half on or before May 31 of the following year. ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: Resolution No. 4894, the Resolution of Intent to Create SID 745 estimated the total cost of the Improvements to be $2,152,611.04, with the District’s share of the cost of the Improvements being $903,424.65. The City has committed $902,424.65 from the Street Impact Fee Fund and Flanders Mill Subdivision has committed $347,731.74 for its share of the improvements to North Ferguson Avenue. In accordance with Resolution 4894, special assessments for the District’s share will be payable over a term not exceeding three (3) years, in equal semi-annual installments as described above. Property owners have the right to prepay assessments. The property owners’ total principal amounts and estimated annual assessment amounts are shown in Exhibit A to Resolution 4894. Attachment: Resolution No. 4894 Report compiled on September 9, 2019 480 Page 1 of 3 RESOLUTION NO. 4894 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN LEVYING A SPECIAL ASSESSMENT UPON ALL PROPERTY SITUATED WITHIN SPECIAL IMPROVEMENT DISTRICT NO. 745 IN THE TOTAL AMOUNT OF $903,424.65 TO DEFRAY THE COST OF PURCHASING THE IMPROVEMENTS IN SAID SPECIAL IMPROVEMENT DISTRICT PURSUANT TO RESOLUTION NUMBER 4893 CREATING THE DISTRICT. WHEREAS, the City Commission of the City of Bozeman, Montana did create Special Improvement District 745 (the “District”) and thereby ordered and directed to be purchased within the District existing improvements as specified in Resolution No. 4893 (the “Improvements”); and WHEREAS, the cost of said Improvements to be assessed against the properties within the District amounts to the sum of $2,152,611.04 of which $903,424.65 including incidental expenses (the “District's Share of the Improvements”) is to be paid over a period of three (3) years by the property located within the District; and WHEREAS, the properties located in the District are to be assessed to defray the District’s Share of the Improvements; each lot, tract, piece, or parcel of land to be assessed for its proportionate share of the whole of the District’s Share of the Improvements based on the formula as set forth in the resolution of intent to create the District; and WHEREAS, the City Clerk published notice of resolution for levy and assessment in the Bozeman Daily Chronicle on August 25, 2019 and September 1, 2019 and sent mail notices to the owners of each lot, tract, or parcel of land to be assessed in accordance with 7-12-4177, MCA; and 481 Resolution No. 4894, Resolution to Levy a Special Assessment on Property located in SID 745 Page 2 of 3 WHEREAS, the City Commission conducted a public hearing on the resolution for levy and assessment September 16, 2019 in accordance with 7-12-4178, MCA. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana as follows: Section 1 To defray the costs and expense of purchasing said improvements in the District, the City of Bozeman hereby levies and assesses a tax upon all property situated within the District in the amount listed on Exhibit A attached, which is hereby incorporated herein and made a part hereof. The special assessments for the costs of the Improvements shall be levied and assessed in accordance with the method of assessments referred to in the resolution of intention. Such assessments shall be payable over a term not exceeding three years, each in substantially equal semiannual payments of principal and interest. The special assessments shall bear interest from November 1, 2019 until paid at an annual rate of 1.5%. Property owner shall have the right to prepay the special assessments as provided by law. Section 2 The Commission hereby ratifies and confirms that the assessment of costs of the specific Improvements against the property benefitted thereby as prescribed by the resolution of intention is equitable and in proportion to and not exceeding the special benefits derived from the Improvements by the parcel to be assessed therefor within the District, and the special assessments authorized by this resolution are in accordance with the methods and do not exceed the amounts prescribed by the resolution of intention. Section 3 The assessments for the District which are listed in the City Treasurer’s assessment book 482 Resolution No. 4894, Resolution to Levy a Special Assessment on Property located in SID 745 Page 3 of 3 are due and payable to the City Treasurer of the City of Bozeman and will become delinquent at 5 p.m. on November 30th and May 31st of each year until they are paid in full. Section 4 This resolution shall be kept on file in the office of the City Clerk and shall be open to public inspection. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 16th day of September, 2019. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 483 EXHIBIT A Property Address Property Owner Mailing Address City State Zip Total Estimated Annual Assessment 1705 Vaquero Pkwy Gallatin County 311 W Main Street, Rm 304 Bozeman MT 59715-4574 903,424.65$ 310,220.63$ At 1.5% interest 484