Loading...
HomeMy WebLinkAboutResolution 5311 Authorizing the City to Exceed Statutory Mill Levy Limit for the Purpose of Community Housing RESOLUTION 5311 A RESOLUTION OF THE BOZEMAN CITY COMMISSION SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY OF BOZEMAN, MONTANA, THE QUESTION OF AUTHORIZING THE CITY OF BOZEMAN TO EXCEED THE STATUTORY MILL LEVY LIMIT PROVIDED FOR IN SECTION 15-10-420, MCA, THROUGH AN ANNUAL LEVY OF UP TO SEVEN (7) MILLS FOR THE PURPOSE OF ACQUIRING, CONSTRUCTING, DEVELOPING, PRESERVING, AND SUPPORTING COMMUNITY HOUSING. WHEREAS, Section 4.5 of the Bozeman Strategic Plan, adopted by the City Commission pursuant to Resolution 4852, calls for the City to provide a substantial, broad-based and reliable source of funding for the construction of community housing and for the City to actively encourage Bozeman’s major employers to develop housing programs for their employees; and WHEREAS, the high cost of housing in Bozeman has an unacceptable impact on the well- being and prosperity of the Bozeman community through its impact on individuals and families and the ability of businesses to find and retain qualified employees; and WHEREAS, the Bozeman Community Housing Needs Assessment (2020) indicates between 5,400 and 6,340 housing units are needed over the next five years to address the current housing shortfall for residents and the City’s work force and that 60% of these units need to be priced below market to meet the full range of community housing needs; and WHEREAS, the Bozeman Community Housing Action Plan lists a series of action strategies the City and community should take to address the lack of community housing in Bozeman and the Action Plan’s strategies include pursuing a dedicated and perpetual funding source such as a mill levy or bond issue to fund community housing programs; and WHEREAS, the City has played a key role in addressing housing needs within our community through programs and partnerships with public and private agencies yet the lack of long-term sustainable funding remains a significant challenge to effectively implementing these programs; and DocuSign Envelope ID: 34A058FA-5C69-4EDE-AD05-798C89A03DBC 2 WHEREAS, according to the Gallatin Association of Realtors the median sales price for a single family home in the city of Bozeman increased 44% between May of 2020 and May of 2021 while the median sales price for a condominium/townhouse increased 40% during the same period; and WHEREAS, and the cost of rental housing has likewise seen a dramatic increase over the past year; and WHEREAS, the affordability of housing is directly related to its availability – without an adequate supply of housing throughout the community the cost of housing will continue to increase; and WHEREAS, the Bozeman City Commission finds the current housing crisis requires broad based community solutions including active participation of private businesses, landowners and developers, residents, the State of Montana, other local governments, non-profit organizations, and the City; and WHEREAS, the Commission determines presenting the voters with the choice to create a perpetual funding source in the form of a dedicated mill levy of seven (7) mills will help the City continue its efforts to provide and support community-based housing programs; and WHEREAS, even with a dedicated funding source the City must continue to pursue other action strategies called for in the Community Housing Action Plan. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 Referral to the Electors: That the question authorizing the City of Bozeman to exceed the statutory mill levy limit provided for in Section 15-10-420, MCA by annually levying up to seven (7) mills is hereby referred to a vote of the qualified electors of the City of Bozeman by mail ballot at the 2021 general election. Section 2 Specific Purpose for Additional Money: That the additional money will be used to provide funds for City programs related to community housing including, but not limited to, providing or supporting the administration of City programs and the acquisition, construction, development, DocuSign Envelope ID: 34A058FA-5C69-4EDE-AD05-798C89A03DBC 3 preservation, and support of community housing throughout the City. The funds may be used for specific purposes related to community housing including but not limited to: administering the City’s housing programs (including costs related to salary and benefits of city employees or the City’s agents) and home buyer education and counseling; providing grants to public and private entities who acquire, construct, develop, manage, preserve, rehabilitate, steward, or support community housing; establishing a revolving loan program for the above uses; down-payment and rental assistance; funding programs related to transitional and emergency housing; payment of impact fees and other regulatory and professional service fees for community housing projects; payment or reimbursement of off-site infrastructure costs related to community housing; the acquisition of legal interests in existing housing; and for the purchase of legal interests in land to be developed as community housing. Section 3 Specific Number of Mills Imposed and Approximate Amount of Money to be Raised: If passed, the City Commission will be authorized to levy up to seven (7) mills annually. The dollar amount to be raised will change annually depending on the value of a mill. Based upon the fiscal year 2021 mill rate, the specific dollar amount to be raised in fiscal year 2023 would be approximately $905,961.00. Section 4 The Duration Limit of the Levy: There is no durational limit on the levy. The levy will be perpetual and may be levied annually. Section 5 Form of Ballot: The ballot form shall be: COMMUNITY HOUSING MILL LEVY Shall the City Commission of the City of Bozeman, Montana, be authorized to exceed the statutory mill levy limit provided for in Section 15-10-420, MCA, by annually levying up to seven (7) mills for the purpose of acquiring, constructing, developing, preserving and supporting community housing throughout the City and related administrative costs? The specific amount of money that is to be raised will change annually depending on the value of a mill. Based on the 2021 fiscal year mill rate, the specific dollar amount to be raised in fiscal year 2023 would be $905,961.00. The Commission’s authority to levy shall not sunset. The annual property tax impact on a home with a taxable market value of $100,000 will be approximately $9.45 per year. The annual property tax impact on a home with a taxable market value of $200,000 will be approximately $18.90 per year. DocuSign Envelope ID: 34A058FA-5C69-4EDE-AD05-798C89A03DBC 4 FOR authorizing the City Commission of the City of Bozeman to exceed the statutory mill levy limit provided for in Section 15-10-420, MCA, by annually levying up to seven (7) mills to fund the acquisition, construction, development, preservation, or support of community housing. AGAINST authorizing the City Commission of the City of Bozeman to exceed the statutory mill levy limit provided for in Section 15-10-420, MCA, by annually levying up to seven (7) mills to fund the acquisition, construction, development, preservation, or support of community housing. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 13th day of July, 2021. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney DocuSign Envelope ID: 34A058FA-5C69-4EDE-AD05-798C89A03DBC