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Home My WebLink About08-11-20 City Commission Packet Materials - A5. Res 5191 Establishing Assessment for the Parks & Trails District for FY21 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Commission Resolution No. 5191 – Establishing a $0.017 per square foot Assessment for the Parks & Trails District for FY 2021 MEETING DATE: August 11, 2020 AGENDA ITEM: Consent RECOMMENDATION: Approve Resolution No. 5191 – Establishing a $0.017 per square foot Assessment for the Parks & Trails District for FY 2021. BACKGROUND: May 5, 2020 the Citizens of Bozeman voted to approve the creation of a Parks & Trails District. The plan for this district have been in the works for years and developed first with consultants and furthered in the most recent Capital Improvement Plan and internal staffing plan. A citywide park and trail district is an effort to solve three major issues: • Deferred Maintenance: The cost of deferred maintenance in our parks and trails is currently ~$6.8 million. This includes assets that need to be repaired or replaced because they are beyond their useful life. • Operations and Maintenance: Our current level of service for park and trail maintenance is reactionary in nature. The District will provide a funding source for current city parks and trails, new park projects coming on-line soon (Story Mill Park, Sports Park, Path to the M, etc.) and 235 acres of neighborhood parks and trails throughout the city that property owners associations are currently maintaining. The Commission determined a five-year phase in plan of s silver level of services across all parks. • Equity: The district eliminates the need for homeowner associations (HOAs) to maintain city parks and trails in their subdivision through HOA fees. These city property owners who currently pay both general taxes and HOA fees for park and trail maintenance will no 84 longer be paying a higher share of the system costs. All city property owners will pay an annual assessment for park and trail maintenance. The first steps will be taking on the HOA parks and maintaining them at our current level of service. As we move into years two-five we will address deferred maintenance and under the five year ramp up it will take us a little over ten years to address our current back log. In addition, over the next five years we will be increasing the level service and will hope to achieve silver level of service by year- 5 for all City owned parks. As directed by the Commission the assessment rate to fund the recommended budget is $0.017 per square foot. ALTERNATIVES: As suggested by the Commission FISCAL EFFECTS: The Parks & Trails District Assessment rate will result in the following: Total Parks and Trails Assessments Collected, est. $3,656,263.13 Assessment, Average Residential Lot (7,500 sq ft) $127.50 Assessment, Maximum Residential Lot (15,000 sq ft) $255.00 Attachment: Resolution No. 5191 Schedule A- Parks & Trails Assessment Report compiled on July 29, 2020 85 Page 1 of 5 RESOLUTION NO. 5191 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, LEVYING AND ASSESSING A SPECIAL ASSESSMENT FOR FISCAL YEAR 2021 UPON ALL REAL PROPERTY IN THE CITY OF BOZEMAN, COUNTY OF GALLATIN, STATE OF MONTANA, TO DEFRAY THE COST AND EXPENSE INCURRED IN THE CITY-WIDE PARKS AND TRAILS DISTRICT IN THE CITY OF BOZEMAN AND TO EXTEND THE BOUNDARIES OF SAID DISTRICT TO ENCOMPASS ANNEXED PROPERTIES. WHEREAS, on November 5, 2019, the voter of the City of Bozeman approved the creation of a Parks and Trails District (the “District”); and WHEREAS, the City Commission of the City of Bozeman did on the 1st day of June, 2020, following notice and public hearing pass Commission Resolution No. 5180 entitled: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ORDERING THE CREATION OF A PARKS AND TRAILS SPECIAL DISTRICT WITHIN THE INCORPORATED LIMITS OF THE CITY OF BOZEMAN, MONTANA PURSUANT TO THE RESULTS OF THE MAY 5, 2020 ELECTION ; and WHEREAS, the City Commission of the City of Bozeman did on the 2nd day of December, 2019, following notice and public hearing regularly pass Commission Resolution No. 5053, a Resolution: (i) ordering a referendum on the creation of the District; (ii) providing the basis and method of assessing the cost against property herein assessed; and (iii) stating the City Commission will, as part of its regular budget process, estimating the total costs of the District for the following fiscal year; and WHEREAS, pursuant to Resolution 5170, the City Commission adopted its annual budget for fiscal year 2021 establishing the fiscal year 2021 budget for the District; and 86 Resolution 5191, Levying and Assessing Parks and Trails District Page 2 of 5 WHEREAS, in accordance with Commission Resolution No. 5053, the District boundaries are the corporate limits of the City as amended from time to time by annexation; and WHEREAS, to defray the costs of the District for the coming assessment year (fiscal year 2021), the Commission must now establish an assessment to be levied for to defray the costs of the District. NOW, THEREFORE, pursuant to the provisions of said Commission Resolution No. 5053 and the laws of the State of Montana, BE IT RESOLVED AND IT IS HEREBY ORDERED BY THE COMMISSION OF THE CITY OF BOZEMAN, STATE OF MONTANA: Section 1 To defray the cost and expense of District, which is hereby extended to include the City’s corporate limits including all annexed properties as of the date of this Resolution, for fiscal year 2021 the Bozeman City Commission hereby levies and assesses upon all property located within the District the respective amounts listed on Schedule A, attached hereto and by this reference made a part of this Resolution. The assessments are an amount equal to the annual cost of the programs and improvements of the District. The assessment amounts set forth on Schedule A shall be paid and collected in accordance with Commission Resolution No. 5053, and the laws of the State of Montana governing the collection of special district assessments. Failure to pay such assessment when due and payable shall make such persons and such lots and parcels of land liable to the penalties provided by law relative to delinquent taxes and assessments. The November assessments shall become delinquent at 5:01 p.m. on November 30, 2020, and the May assessments shall become delinquent at 5:01 p.m. on May 31, 2021. Section 2 The assessment basis and method of assessing the costs of the District against property herein assessed shall be as specified in Resolution No. 5053, which is hereby incorporated by this reference and made a part of this Resolution. Section 3 That the per-square-foot assessment rate in said district shall be $0.0170 per square foot of actual lot area, with a limit on the maximum square footage assessed for zones as listed below. 87 Resolution 5191, Levying and Assessing Parks and Trails District Page 3 of 5 For non-conforming residences located in business and manufacturing zoning districts without any business or manufacturing use attached, there shall be a maximum of 15,000 square feet assessed. The minimum annual assessment will be $3.50. Zoning Maximum assessment square footage (Cap) R-1 15,000 sq ft R-2 15,000 sq ft R-3 15,000 sq ft R-4 15,000 sq ft R-5 15,000 sq ft RMH 8,250 sq ft/unit RS 15,000 sq ft RO No Cap on developed parcels. Cap of 15,000 sq ft on undeveloped (parcels that have no structures and have not received subdivision review.) PLI (including MSU, Schools, Govt, Hospital, & Public Owned property) 25% of total sq ft REMU; NEHMU; UMU No Cap on developed parcels Cap of 15,000 square ft on undeveloped (parcels that have no structures and have not received subdivision review.) All Business Zones No Cap on developed parcels Cap of 15,000 square ft on undeveloped (parcels that have no structures and have not received subdivision review.) All Manufacturing Zones No Cap on developed parcels Cap of 15,000 square ft on undeveloped (parcels that have no structures and have not received subdivision review.) Section 4 88 Resolution 5191, Levying and Assessing Parks and Trails District Page 4 of 5 This assessment shall be levied for the fiscal year of July 1, 2020 through June 30, 2021, and be billed in October 2020 as are all other special assessments. Any condominium and/or subdivision of land recorded on or before September 30, 2020 is subject to assessment for fiscal year 2021. Section 5 Objections to the District assessments may be filed with the City Clerk at PO Box 1230 Bozeman, MT 59771 or emailed to agenda@bozeman.net. The City Commission will hear objections to these assessments at its meeting on Tuesday, August 11th, 2020 beginning at 6:00 PM. Due the ongoing emergency related to the Covid-19 Pandemic, this meeting of the City Commission will not be held in person and instead will be held remotely. Instructions regarding how to participate in the remote meeting may be found on the published agenda for the August 11, 2020 meeting which will be available on the City’s website (www.bozeman.net) on the afternoon of Thursday, August 7, 2020. For any help accessing the meeting please contact the City Clerk at 582-2321. Section 6 The City Clerk of the City of Bozeman, did publish in the Bozeman Daily Chronicle a Notice signed by the City Clerk, stating that a Resolution levying and assessing a special assessment to defray the cost and expense of maintenance of all city owned parks and trails located within the City’s corporate limits for the fiscal year 2021, against the property on which such service was rendered, is on file in the office of the City Clerk and subject to inspection. Said notice states the time and place at which objections will be heard by the Commission to the final adoption of the Resolution. Said Notice was published at least five (5) days before the date set by the Commission for hearing objections and final adoption of this Resolution. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana at a regular session thereof held on the 11th day of August, 2020. ____________________________ CHRIS MEHL Mayor ATTEST: 89 Resolution 5191, Levying and Assessing Parks and Trails District Page 5 of 5 ____________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ____________________________________ GREG SULLIVAN City Attorney 90