HomeMy WebLinkAbout01-25-22 City Commission Meeting Agenda and Packet MaterialsA.Call to Order - 6:00 PM - WebEx Videoconference
B.Pledge of Allegiance and a Moment of Silence
C.Changes to the Agenda
D.Authorize Absence
D.1 Authorize the Absence of Mayor Cyndy Andrus and Commissioner Christopher
Coburn(Maas)
E.Public Service Announcements
E.1 Recently Approved Citizen Advisory Board Minutes (Maas)
THE CITY COMMISSION OF BOZEMAN, MONTANA
REGULAR MEETING AGENDA
Tuesday, January 25, 2022
This meeting will be held using Webex, an online videoconferencing system. You can join this meeting:
Via Webex:
https://cityofbozeman.webex.com/cityofbozeman/onstage/g.php?
MTID=e21e134a27208b1b50fd26d7f6bf2baba
Click the Register link, enter the required information, and click submit.
Click Join Now to enter the meeting.
Via Phone: This is for listening only if you cannot watch the stream or channel 190
United States Toll
+1-650-479-3208
Access code: 2550 387 5690
If you are interested in commenting in writing on items on the agenda please send an email to
agenda@bozeman.net prior to 12:00pm on the day of the meeting. You may also comment by visiting
the Commission's comment page.
You can also comment by joining the Webex meeting. If you do join the Webex meeting, we ask you
please be patient in helping us work through this online meeting.
If you are not able to join the Webex meeting and would like to provide oral comment you may send a
request to agenda@bozeman.net with your phone number, the item(s) you wish to comment on, and
the City Clerk will call you during the meeting to provide comment.
You may also send the above information via text to 406-224-3967. As always, the meeting will be
streamed through the Commission's video page and available in the City on cable channel 190.
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F.FYI
G.Commission Disclosures
H.Consent
H.1 Accounts Payable Claims Review and Approval (Tonkovich)
H.2 Approve City Manager Jeff Mihelich's Merit Increase to Base Salary (Tozer)
H.3 Authorize the City Manager to Sign an Agreement for Digital Video Migration with Granicus
for the Conversion of Old City Commission and Citizen Advisory Board Meetings(Maas)
H.4 Authorize the City Manager to Sign a Professional Services Agreement with Montana
Outdoor Science School to Implement a Direct Student Engagement Pilot Program in
Bozeman Public Schools Utilizing the Bozeman Water Conservation and Stormwater
Management Educator Guide(Ahlstrom)
H.5 Authorize the City Manager to Sign a Professional Services Agreement with SKIDATA for the
Installation of New Gates in the Bridger Park Parking Garage(Veselik)
H.6 Authorize the City Manager to Sign Task Order Number 1 for the Right of Way Acquisition
Project for West Babcock Street from 15th to 19th(Murray)
I.Public Comment
This is the time to comment on any matter falling within the scope of the Bozeman City
Commission. There will also be time in conjunction with each agenda item for public comment
relating to that item but you may only speak once. Please note, the City Commission cannot take
action on any item which does not appear on the agenda. All persons addressing the City
Commission shall speak in a civil and courteous manner and members of the audience shall be
respectful of others. Please state your name and address in an audible tone of voice for the record
and limit your comments to three minutes.
J.Action Items
J.1 Review of the Preliminary Plat of the Park View Crossing Major Subdivision to Create 44
Townhome Lots, 2 Open Space Lots, 1 Storm Water Management Lot, Streets and an Alley
on 7 Acres of Land zoned R-3, Medium-density Residential(Montana)
J.2 Review North Montana Avenue Minor Subdivision Preliminary Plat, Application
21224(Miller)
J.3 Resolution 5370 A Resolution Approving a Project in the Northeast Urban Renewal District,
Known as Wildlands, as an Urban Renewal Project; Making Findings with Respect Thereto
and Approving the Use of Tax Increment Revenues or Tax Increment Revenue Bonds to
Reimburse Eligible Costs Thereof and Approving a Related Development Agreement(Fine)
J.4 Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2021 and Audit
Results(Rosenberry)
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K.FYI / Discussion
L.Adjournment
City Commission meetings are open to all members of the public. If you have a disability that requires
assistance, please contact our ADA Coordinator, Mike Gray, at 582-3232 (TDD 582-2301).
Commission meetings are televised live on cable channel 190 and streamed live at www.bozeman.net.
City Commission meetings are re-aired on cable Channel 190 Wednesday night at 4 p.m., Thursday at
noon, Friday at 10 a.m. and Sunday at 2 p.m.
In order for the City Commission to receive all relevant public comment in time for this City
Commission meeting, please submit via www.bozeman.net or by emailing agenda@bozeman.net no
later than 12:00 PM on the day of the meeting. Public comment may be made in person at the
meeting as well.
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Memorandum
REPORT TO:City Commission
FROM:Mike Maas, City Clerk
Jeff Mihelich, City Manager
SUBJECT:Authorize the Absence of Mayor Cyndy Andrus and Commissioner
Christopher Coburn
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Administration
RECOMMENDATION:I move to authorize the absence of Mayor Cyndy Andrus and Commissioner
Christopher Coburn.
STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver
information to the community and our partners.
BACKGROUND:Mayor Andrus and Commissioner Coburn informed City Manager Mihelich
that they would not be in attendance
UNRESOLVED ISSUES:None
ALTERNATIVES:None
FISCAL EFFECTS:None
Report compiled on: January 19, 2022
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Memorandum
REPORT TO:City Commission
FROM:Mike Maas, City Clerk
Jeff Mihelich, City Manager
SUBJECT:Recently Approved Citizen Advisory Board Minutes
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:No action necessary
STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the
community in city government, innovating methods for inviting input from
the community and stakeholders.
BACKGROUND:On August 10, 2021 the City Commission adopted Resolution 5323
establishing a High Performing Boards model. In Section 2: Communications,
item 7 it is stated that "City Staff will develop minutes that the Board will
review and approve; minutes shall be provided to the City Commission and
made available to the public."
This item presents the recently approved minutes for the following Citizen
Advisory Boards:
Bozeman Downtown Business Improvement District, November 17, 2021
Bozeman Downtown Urban Renewal Board, November 16, 2021
Community Development Board, December 6, 2021
Community Development Board, December 20, 2021
Economic Vitality Board, December 1, 2021
Economic Vitality Board, January 5, 2022
Sustainability Board, December 8, 2021
UNRESOLVED ISSUES:None
ALTERNATIVES:Non
FISCAL EFFECTS:None
Report compiled on: January 13, 2022
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Memorandum
REPORT TO:City Commission
FROM:Kathleen Tonkovich, Accounts Payable Clerk
Anna Rosenberry, Interim Finance Director
SUBJECT:Accounts Payable Claims Review and Approval
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Finance
RECOMMENDATION:The City Commission approves payment of the claims.
STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable
sources of funding for appropriate City services, and deliver them in a lean
and efficient manner.
BACKGROUND:Section 7-6-4301 MCA states that claims should not be paid by the City until
they have been first presented to the City Commission. Claims presented to
the City Commission have been reviewed by the Finance Department to
ensure that all proper supporting documentation has been submitted, all
required departmental authorized signatures are present indicating that the
goods or services have been received and that the expenditure is within
budget, and that the account coding is correct.
UNRESOLVED ISSUES:None
ALTERNATIVES:As suggested by the City Commission.
FISCAL EFFECTS:The total amount of the claims to be paid is presented at the bottom of the
Expenditure Approval List posted on the City’s website at
http://www.bozeman.net/government/finance/purchasing.
Report compiled on: January 6, 2022
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Memorandum
REPORT TO:City Commission
FROM:Cassandra Tozer, Human Resources Director
Jeff Mihelich, City Manager
SUBJECT:Approve City Manager Jeff Mihelich's Merit Increase to Base Salary
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Administration
RECOMMENDATION:Approve a four percent (4.0%) merit increase to City Manager Jeff Mihelich's
base salary, per Article V., "Compensation", of the Employment Agreement
between the City of Bozeman and Jeff Mihelich. The merit increase is to be
effective January 1, 2022.
STRATEGIC PLAN:7.2 Employee Excellence: Recruit, retain and value a diverse, well-trained,
qualified and motivated team capable of delivering superior performance.
Be accountable and expect accountability from others. Make demonstrated
use of good judgement a part of the evaluation process for promotions.
BACKGROUND:Article V., "Compensation", in the Employment Agreement between the City
of Bozeman and Jeff Mihelich allows for the City Commission to make merit
based adjustments to base salary. Any merit based adjustments must be
approved by a vote of the City Commission. Based on the City Commission's
performance evaluation of Mr. Mihelich in December 2021, the City
Commission is voting to award a merit increase of four percent (4.0%) to
base salary, effective January 1, 2022.
UNRESOLVED ISSUES:None.
ALTERNATIVES:1. Award the merit increase as an alternative amount.
2. Do not award the merit increase.
FISCAL EFFECTS:Increase to total gross compensation: $11,112.
Report compiled on: January 14, 2022
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Memorandum
REPORT TO:City Commission
FROM:Mike Maas, City Clerk
Scott McMahan, Information Technology Director
Jeff Mihelich, City Manager
SUBJECT:Authorize the City Manager to Sign an Agreement for Digital Video Migration
with Granicus for the Conversion of Old City Commission and Citizen
Advisory Board Meetings
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Agreement - Vendor/Contract
RECOMMENDATION:Authorize the City Manager to Sign an Agreement for Digital Video Migration
with Granicus for the Conversion of Old City Commission and Citizen
Advisory Board Meetings
STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the
community in city government, innovating methods for inviting input from
the community and stakeholders.
BACKGROUND:Granicus provides the City's Agenda and Streaming Platform. Migration of
videos from our previous host will consolidate videos and minutes in a single
place hosted on the City's website. Additionally, this migration will allow the
City to no longer require keeping the legacy platform and its associated
costs.
UNRESOLVED ISSUES:None
ALTERNATIVES:As per Commission
FISCAL EFFECTS:$11,000 will come from City Clerk's budget allocation.
Attachments:
Data Migration Media Manager Quote - Granicus.pdf
Report compiled on: January 5, 2022
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408 Saint Peter Street, Suite 600 THIS IS NOT AN INVOICE Order Form
Saint Paul, MN 55102 Prepared for
United States Bozeman, MT
Order #: Q-150001
Prepared: 12/21/2021
Page 1 of 5
Granicus Proposal for Bozeman, MT
ORDER DETAILS
Prepared By:Christian Mapes
Phone:
Email:christian.mapes@granicus.com
Order #:Q-150001
Prepared On:12/21/2021
Expires On:01/28/2022
Currency:USD
Payment Terms:Net 30 (Payments for subscriptions are due at the beginning of the period of
performance.)
Period of Performance: The term of the Agreement will commence on the date this document is
signed and will continue for 12 months.
ORDER TERMS
9
Order Form
Bozeman, MT
Order #: Q-150001
Prepared: 12/21/2021
Page 2 of 5
PRICING SUMMARY
The pricing and terms within this Proposal are specific to the products and volumes contained within this
Proposal.
One-Time Fees
Solution Billing
Frequency Quantity/Unit One-Time Fee
Data Migration - Media Manager Upon Delivery 55 Hours $11,000.00
SUBTOTAL:$11,000.00
10
Order Form
Bozeman, MT
Order #: Q-150001
Prepared: 12/21/2021
Page 3 of 5
PRODUCT DESCRIPTIONS
Solution Description
Data Migration - Media
Manager
Data Migration into Media Manager
11
Order Form
Bozeman, MT
Order #: Q-150001
Prepared: 12/21/2021
Page 4 of 5
TERMS & CONDITIONS
·Link to Terms: https://granicus.com/pdfs/Master_Subscription_Agreement.pdf
·This quote is exclusive of applicable state, local, and federal taxes, which, if any, will be included in the invoice. It
is the responsibility of Bozeman, MT to provide applicable exemption certificate(s).
·Granicus certifies that it will not sell, retain, use, or disclose any personal information provided by Client for any
purpose other than the specific purpose of performing the services outlined within this Agreement.
·Any lapse in payment may result in suspension of service and will require the payment of a setup fee to reinstate
the subscription.
·Notwithstanding anything to the contrary, Granicus reserves the right to adjust pricing at any renewal in which
the volume has changed from the prior term without regard to the prior term's per-unit pricing.
12
Order Form
Bozeman, MT
Order #: Q-150001
Prepared: 12/21/2021
Page 5 of 5
BILLING INFORMATION
Billing Contact:Purchase Order
Required?
[ ] - No
[ ] - Yes
Billing Address:PO Number:
If PO required
Billing Email:Billing Phone:
If submitting a Purchase Order, please include the following language:
The pricing, terms, and conditions of quote Q-150001 dated 12/21/2021 are incorporated into this Purchase
Order by reference and shall take precedence over any terms and conditions included in this Purchase Order.
AGREEMENT AND ACCEPTANCE
By signing this document, the undersigned certifies they have authority to enter the agreement. The
undersigned also understands the services and terms.
Bozeman, MT
Signature:
Name:
Title:
Date:
13
Memorandum
REPORT TO:City Commission
FROM:Jessica Ahlstrom, Water Conservation Program Manager
Adam Oliver, Stormwater Program Manager
Scott Shirley, Interim Director of Public Works
SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with
Montana Outdoor Science School to Implement a Direct Student
Engagement Pilot Program in Bozeman Public Schools Utilizing the Bozeman
Water Conservation and Stormwater Management Educator Guide
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Agreement - Agency/Non-profit
RECOMMENDATION:Authorize the City Manager to sign a Professional Services Agreement with
Montana Outdoor Science School to Implement a Direct Student
Engagement Pilot Program in Bozeman Public Schools Utilizing the Bozeman
Water Conservation and Stormwater Management Educator Guide.
STRATEGIC PLAN:6.1 Clean Water Supplies: Ensure adequate supplies of clean water for today
and tomorrow.
BACKGROUND:On October 15, 2015 the City entered into an agreement with Project WET
Foundation, a local non-profit organization that provides action-oriented
water education programs for students and teachers, to develop the
Bozeman Water Conservation and Stormwater Management Educator Guide
(Guide). The Guide, which correlates to Common Core and Next Generation
Science Standard learning objectives at the 5th grade level, includes a series
of five place-based, hands-on lessons that present complex concepts related
to watersheds, water conservation and stormwater in a fun, relevant, and
accessible manner.
From 2015-2018, nine Bozeman Public School teachers among seven schools
volunteered to facilitate lessons included in the Guide to over 1,300
students. In 2017, the Guide was submitted to the Bozeman Public School
District for review to be integrated into the curriculum as a base resource,
which would make the Guide part of the mandatory science curriculum at
the 5th grade level, ensuring that the lessons reached all 5th grade students.
After consideration, the Bozeman Public School District chose to adopt the
Guide as a supplementary resource, which makes it an approved optional
curriculum resource.
Despite making a concerted effort to provide teachers with continuing
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education credits and flexible training to facilitate the Guide with students, it
has become increasingly challenging to recruit teachers to utilize the Guide
in the classroom. Based on conversations with local teachers, this is likely
due in part to teacher turnover, heavy teacher workloads, and an increased
time commitment to facilitate the lessons.
The attached Professional Services Agreement (PSA) provides 5th grade
teachers in Bozeman Public Schools with an opportunity to receive support
from Montana Outdoor Science School (MOSS), a local non-profit
organization focused on environmental education, to teach the lessons
directly to students - alleviating the additional workload on 5th grade
teachers associated with Guide implementation. Teachers interested in
securing MOSS to facilitate the Guide in their classrooms can apply to
participate in the Direct Student Engagement Pilot Program, where MOSS
instructors will engage directly with students - teaching the lessons and
administering pre- and post- knowledge assessments.
This program will advance the educational objectives of the Water
Conservation and Stormwater Divisions by reaching more young learners
with locally relevant, objective, and experiential water education.
Additionally, the program will facilitate compliance with the City’s MS4
Permit’s Outreach and Education and Public Involvement requirements.
UNRESOLVED ISSUES:None.
ALTERNATIVES:As suggested by the City Commission.
FISCAL EFFECTS:Total costs shall not exceed $7,325.00 and shall be paid for from the Water
Conservation Division professional services fund ($5,325.00) and the
Stormwater Division professional services fund ($2,000.00).
Attachments:
Professional Services Agreement_MOSS Direct Student
Engagement Pilot Program.pdf
Scope of Services_MOSS Direct Student Engagement Pilot
Program.pdf
Report compiled on: January 5, 2022
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 1 of 11
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this _____ day of ____________, 2022
(“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing
municipal corporation organized and existing under its Charter and the laws of the State of Montana,
121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT
59771, hereinafter referred to as “City,” and, Montana Outdoor Science School, with a mailing
address of PO Box 502, Bozeman, MT 59771, hereinafter referred to as “Contractor.” The City and
Contractor may be referred to individually as “Party” and collectively as “Parties.”
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged, the parties hereto agree as follows:
1. Purpose: City agrees to enter this Agreement with Contractor to perform for City
services described in the Scope of Services attached hereto as Exhibit A and by this reference made
a part hereof.
2. Term/Effective Date: This Agreement is effective upon the Effective Date.
3. Scope of Services: Contractor will perform the work and provide the services in
accordance with the requirements of the Scope of Services. For conflicts between this Agreement and
the Scope of Services, unless specifically provided otherwise, the Agreement governs.
4. Payment: City agrees to pay Contractor the amount specified in the Scope of
Services. Any alteration or deviation from the described services that involves additional costs above
the Agreement amount will be performed by Contractor after written request by the City, and will
become an additional charge over and above the amount listed in the Scope of Services. The City
must agree in writing upon any additional charges.
5. Contractor’s Representations: To induce City to enter into this Agreement,
Contractor makes the following representations:
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 2 of 11
a. Contractor has familiarized itself with the nature and extent of this Agreement, the
Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules,
and regulations that in any manner may affect cost, progress or performance of the Scope of Services.
b. Contractor represents and warrants to City that it has the experience and ability to
perform the services required by this Agreement; that it will perform the services in a professional,
competent and timely manner and with diligence and skill; that it has the power to enter into and
perform this Agreement and grant the rights granted in it; and that its performance of this Agreement
shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark,
privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal,
state and municipal laws. The City will not determine or exercise control as to general procedures or
formats necessary to have these services meet this warranty.
6. Independent Contractor Status/Labor Relations: The parties agree that Contractor
is an independent contractor for purposes of this Agreement and is not to be considered an employee
of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s
personnel policies handbook and may not be considered a City employee for workers’ compensation
or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in
any dealings between Contractor and any third parties.
Contractor shall comply with the applicable requirements of the Workers’ Compensation Act,
Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of
Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for
all members and employees of Contractor’s business, except for those members who are exempted
by law.
Contractor shall furnish the City with copies showing one of the following: (1) a binder for
workers’ compensation coverage by an insurer licensed and authorized to provide workers’
compensation insurance in the State of Montana; or (2) proof of exemption from workers’
compensation granted by law for independent contractors.
In the event that, during the term of this Agreement, any labor problems or disputes of any
type arise or materialize which in turn cause any services to cease for any period of time, Contractor
specifically agrees to take immediate steps, at its own expense and without expectation of
reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific
steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 3 of 11
Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief
to the City so as to permit the services to continue at no additional cost to City.
Contractor shall indemnify, defend, and hold the City harmless from any and all claims,
demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in
connection with any labor problems or disputes or any delays or stoppages of work associated with
such problems or disputes.
7. Indemnity/Waiver of Claims/Insurance: For other than professional services
rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and
hold harmless the City, its agents, representatives, employees, and officers (collectively referred to
for purposes of this Section as the City) from and against any and all claims, demands, actions, fees
and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses,
expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or
damages of whatever kind or nature connected therewith and without limit and without regard to the
cause or causes thereof or the negligence of any party or parties that may be asserted against,
recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or
in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii)
any negligent, reckless, or intentional misconduct of any of the Contractor’s agents.
For the professional services rendered, to the fullest extent permitted by law, Contractor
agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and
expenses, including reasonable defense attorney fees, to the extent caused by the negligence or
intentional misconduct of the Contractor or Contractor’s agents or employees.
Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations
of indemnity that would otherwise exist. The indemnification obligations of this Section must not be
construed to negate, abridge, or reduce any common-law or statutory rights of the City as
indemnitee(s) which would otherwise exist as to such indemnitee(s).
Contractor’s indemnity under this Section shall be without regard to and without any right to
contribution from any insurance maintained by City.
Should the City be required to bring an action against the Contractor to assert its right to
defense or indemnification under this Agreement or under the Contractor’s applicable insurance
policies required below, the City shall be entitled to recover reasonable costs and attorney fees
18
Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 4 of 11
incurred in asserting its right to indemnification or defense but only if a court of competent
jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to
indemnify the City for a claim(s) or any portion(s) thereof.
In the event of an action filed against the City resulting from the City’s performance under
this Agreement, the City may elect to represent itself and incur all costs and expenses of suit.
Contractor also waives any and all claims and recourse against the City, including the right of
contribution for loss or damage to person or property arising from, growing out of, or in any way
connected with or incident to the performance of this Agreement except “responsibility for [City’s]
own fraud, for willful injury to the person or property of another, or for violation of law, whether
willful or negligent” as per 28-2-702, MCA.
These obligations shall survive termination of this Agreement and the services performed
hereunder.
In addition to and independent from the above, Contractor shall at Contractor’s expense secure
insurance coverage through an insurance company or companies duly licensed and authorized to
conduct insurance business in Montana which insures the liabilities and obligations specifically
assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion
for liabilities specifically assumed by the Contractor in this Section.
The insurance shall cover and apply to all claims, demands, suits, damages, losses, and
expenses that may be asserted or claimed against, recovered from, or suffered by the City without
limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall
furnish to the City an accompanying certificate of insurance and accompanying endorsements in
amounts not less than as follows:
Workers’ Compensation – statutory;
Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;
Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate;
Automobile Liability - $1,000,000 property damage/bodily injury per accident; and
Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate.
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 5 of 11
The above amounts shall be exclusive of defense costs. The City shall be endorsed as an
additional or named insured on a primary non-contributory basis on both the Commercial General
and Automobile Liability policies. The insurance and required endorsements must be in a form
suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal.
Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any
required insurance coverage will be terminated or Contractor’s decision to terminate any required
insurance coverage for any reason.
The City must approve all insurance coverage and endorsements prior to the Contractor
commencing work.
8. Termination for Contractor’s Fault:
a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails
to perform any of its obligations under this Agreement, or otherwise breaches any terms or
conditions of this Agreement, the City may, by written notice, terminate this Agreement and
the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due
to Contractor’s Fault”). The City may then take over the work and complete it, either with its
own resources or by re-letting the contract to any other third party.
b. In the event of a termination pursuant to this Section 8, Contractor shall be
entitled to payment only for those services Contractor actually rendered.
c. Any termination provided for by this Section 8 shall be in addition to any other
remedies to which the City may be entitled under the law or at equity.
d. In the event of termination under this Section 8, Contractor shall, under no
circumstances, be entitled to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature arising, or claimed to have arisen, as a result of the termination.
9. Termination for City’s Convenience:
a. Should conditions arise which, in the sole opinion and discretion of the City,
make it advisable to the City to cease performance under this Agreement, the City may
terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s
Convenience”). The termination shall be effective in the manner specified in the Notice of
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 6 of 11
Termination for City’s Convenience and shall be without prejudice to any claims that the City
may otherwise have against Contractor.
b. Upon receipt of the Notice of Termination for City’s Convenience, unless
otherwise directed in the Notice, the Contractor shall immediately cease performance under
this Agreement and make every reasonable effort to refrain from continuing work, incurring
additional expenses or costs under this Agreement and shall immediately cancel all existing
orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as
may be necessary to preserve, protect, and maintain work already completed or immediately
in progress.
c. In the event of a termination pursuant to this Section 9, Contractor is entitled
to payment only for those services Contractor actually rendered on or before the receipt of the
Notice of Termination for City’s Convenience.
d. The compensation described in Section 9(c) is the sole compensation due to
Contractor for its performance of this Agreement. Contractor shall, under no circumstances,
be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost
productivity, field office overhead, general conditions costs, or lost profits damages of any
nature arising, or claimed to have arisen, as a result of the termination.
10. Limitation on Contractor’s Damages; Time for Asserting Claim:
a. In the event of a claim for damages by Contractor under this Agreement,
Contractor’s damages shall be limited to contract damages and Contractor hereby expressly
waives any right to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature or kind.
b. In the event Contractor wants to assert a claim for damages of any kind or
nature, Contractor shall provide City with written notice of its claim, the facts and
circumstances surrounding and giving rise to the claim, and the total amount of damages
sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the
claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights
to assert such claim.
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 7 of 11
11. Representatives and Notices:
a. City’s Representative: The City’s Representative for the purpose of this
Agreement shall be Jessica Ahlstrom, Water Conservation Program Manager, or such other
individual as City shall designate in writing. Whenever approval or authorization from or
communication or submission to City is required by this Agreement, such communication or
submission shall be directed to the City’s Representative and approvals or authorizations shall
be issued only by such Representative; provided, however, that in exigent circumstances when
City’s Representative is not available, Contractor may direct its communication or submission
to other designated City personnel or agents as designated by the City in writing and may
receive approvals or authorization from such persons.
b. Contractor’s Representative: The Contractor’s Representative for the
purpose of this Agreement shall be Molly Ward, Education Director, or such other individual
as Contractor shall designate in writing. Whenever direction to or communication with
Contractor is required by this Agreement, such direction or communication shall be directed
to Contractor’s Representative; provided, however, that in exigent circumstances when
Contractor’s Representative is not available, City may direct its direction or communication
to other designated Contractor personnel or agents.
c. Notices: All notices required by this Agreement shall be in writing and
shall be provided to the Representatives named in this Section. Notices shall be deemed given
when delivered, if delivered by courier to Party’s address shown above during normal business
hours of the recipient; or when sent, if sent by email or fax (with a successful transmission
report) to the email address or fax number provided by the Party’s Representative; or on the
fifth business day following mailing, if mailed by ordinary mail to the address shown above,
postage prepaid.
12. Permits: Contractor shall provide all notices, comply with all applicable laws,
ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman
business license, and inspections from applicable governmental authorities, and pay all fees and
charges in connection therewith.
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 8 of 11
13 Laws and Regulations: Contractor shall comply fully with all applicable state and
federal laws, regulations, and municipal ordinances including, but not limited to, all workers’
compensation laws, all environmental laws including, but not limited to, the generation and disposal
of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and
provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and
State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination,
affirmative action, and utilization of minority and small business statutes and regulations.
14. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by
Contractor of persons performing this Agreement shall be on the basis of merit and qualifications.
The Contractor will have a policy to provide equal employment opportunity in accordance with all
applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will
not refuse employment to a person, bar a person from employment, or discriminate against a person
in compensation or in a term, condition, or privilege of employment because of race, color, religion,
creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation,
gender identity, physical or mental disability, except when the reasonable demands of the position
require an age, physical or mental disability, marital status or sex distinction. The Contractor shall
be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United
States Code, and all regulations promulgated thereunder.
Contractor represents it is, and for the term of this Agreement will be, in compliance with the
requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act).
Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has
been found guilty of within 60 days of such finding for violations occurring during the term of this
Agreement.
Contractor shall require these nondiscrimination terms of its subcontractors providing services
under this Agreement.
15. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor
shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs,
by any employee or agent engaged in services to the City under this Agreement while on City property
or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of
and shall comply with its responsibilities and obligations under the U.S. Department of Transportation
(DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City
shall have the right to request proof of such compliance and Contractor shall be obligated to furnish
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 9 of 11
such proof.
The Contractor shall be responsible for instructing and training the Contractor's employees
and agents in proper and specified work methods and procedures. The Contractor shall provide
continuous inspection and supervision of the work performed. The Contractor is responsible for
instructing its employees and agents in safe work practices.
16. Modification and Assignability: This Agreement may not be enlarged, modified or
altered except by written agreement signed by both parties hereto. The Contractor may not
subcontract or assign Contractor’s rights, including the right to compensation or duties arising
hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound
by all of the terms and conditions of this Agreement.
17. Reports/Accountability/Public Information: Contractor agrees to develop and/or
provide documentation as requested by the City demonstrating Contractor’s compliance with the
requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons
authorized by the City to inspect and copy its books and records for the purpose of verifying that the
reimbursement of monies distributed to Contractor pursuant to this Agreement was used in
compliance with this Agreement and all applicable provisions of federal, state, and local law. The
Contractor shall not issue any statements, releases or information for public dissemination without
prior approval of the City.
18. Non-Waiver: A waiver by either party of any default or breach by the other party of
any terms or conditions of this Agreement does not limit the other party’s right to enforce such term
or conditions or to pursue any available legal or equitable rights in the event of any subsequent default
or breach.
19. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to
retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice
required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable
attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City
Attorney’s Office staff.
20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all
appropriate employee withholdings.
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 10 of 11
21. Dispute Resolution:
a. Any claim, controversy, or dispute between the parties, their agents,
employees, or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements. Upon mutual
agreement of the parties, the parties may invite an independent, disinterested mediator to assist
in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a court of
competent jurisdiction in compliance with the Applicable Law provisions of this Agreement.
22. Survival: Contractor’s indemnification shall survive the termination or expiration of
this Agreement for the maximum period allowed under applicable law.
23. Headings: The headings used in this Agreement are for convenience only and are not
be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to
which they refer.
24. Severability: If any portion of this Agreement is held to be void or unenforceable, the
balance thereof shall continue in effect.
25. Applicable Law: The parties agree that this Agreement is governed in all respects by
the laws of the State of Montana.
26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs,
legal representatives, successors, and assigns of the parties.
27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the
parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or
enforced by a third party.
28. Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
29. Integration: This Agreement and all Exhibits attached hereto constitute the entire
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Professional Services Agreement for Bozeman Water Conservation and Stormwater Management Educator Guide
Curriculum – Direct Student Engagement Pilot Program
FY 2022 – FY 2023
Page 11 of 11
agreement of the parties. Covenants or representations not contained herein or made a part thereof
by reference, are not binding upon the parties. There are no understandings between the parties other
than as set forth in this Agreement. All communications, either verbal or written, made prior to the
date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this
Agreement by reference.
30. Consent to Electronic Signatures: The Parties have consented to execute this
Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act,
Title 30, Chapter 18, Part 1, MCA.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first above written or as recorded in an electronic signature.
CITY OF BOZEMAN, MONTANA Montana Outdoor Science School
By________________________________ By__________________________________
Jeff Mihelich, City Manager Jessica Haas, Executive Director
APPROVED AS TO FORM:
By_______________________________
Greg Sullivan, Bozeman City Attorney
26
Exhibit A: Scope of Services
Bozeman Water Conservation and Stormwater Management Educator Guide Curriculum –
Direct Student Engagement Pilot Program
I. Purpose
The City requires an organization with the skills and expertise to educate 5th grade students in
Bozeman Public Schools on Bozeman’s watershed, the importance of water conservation, and
stormwater runoff and pollution through utilization of the Bozeman Water Conservation and
Stormwater Management Educator Guide, which has been adopted as supplementary curriculum
within the Bozeman Public School District. The intent of this project is to provide 5th grade
students with a solid founding knowledge in Bozeman’s freshwater resources, hydrologic
processes, and the importance of water conservation through hands-on, place based learning.
II. Scope of Services
Contractor will provide training to educators within Contractor’s organization to facilitate the
Bozeman Water Conservation and Stormwater Management Educator Guide curriculum in
Bozeman Public Schools. Contractor will engage Bozeman Public Schools to participate in this
direct student engagement program with a goal of recruiting five 5th grade classes from at least
three schools. The Contractor will offer this program to all 5th grade teachers within the
Bozeman Public School District to allow an equal opportunity of engagement and participation.
Contractor will select interested classrooms based on a first-come, first served application
process. Contractor will facilitate the entire curriculum in up to five 5th grade classes from at
least three Bozeman elementary schools.
Student Learning Objectives:
Knowledge in the main components of a watershed and how water moves within
Bozeman’s watershed
Understand major components of the Gallatin and Bozeman Municipal watersheds
throughout the year
Gather information on water use data to calculate, organize, and understand the
importance of implementing water conservation measures
Understand how Bozeman’s stormwater distribution system works and factors that affect
water movement throughout the City
Description of Curriculum:
Seeing Bozeman’s Watershed:
o Students find out what a watershed is, describe how water flows in a watershed based
on elevation, and use maps to identify key parts and functions of watersheds in
general and in the Gallatin River and Bozeman Municipal Watersheds.
Bozeman Home Water Investigation:
o Students discuss Bozeman water sources and water conservation concepts,
conduct a home water investigation, and compare and contrast results with and
27
without the implementation of water conservation practices. Students then make
recommendations for personal conservation strategies at home based on water and
monetary savings.
A Year in the Gallatin River Watershed:
o Students participate in a hands-on exercise to describe how water flows in their
watershed based on elevation and seasons.
Stormwater Hike:
o Students are introduced to City watershed concepts and the Bozeman stormwater
distribution system through an investigation of water flow on their school
grounds.
Adding Up Stormwater Pollution:
o Students demonstrate how runoff carries nonpoint source pollution into
Bozeman’s storm sewer system and ultimately into our waterways without going
to a treatment plant. Focus on everyone’s contribution, group and individual
action, to the pollution of water as it flows through the City of Bozeman and how
it can be reduced.
III. Contractor Responsibilities
Contractor shall:
Hire and train qualified instructors to teach the Bozeman Water Conservation and
Stormwater Management Educator Guide curriculum;
Engage and recruit 5th grade elementary teachers within Bozeman Public Schools
and select classes based on a first come, first served application process;
Provide program and promotional materials;
Communicate and organize scheduled teaching days with Bozeman 5th grade
elementary teachers;
Provide students with pre- and post- curriculum knowledge assessments to track
the effectiveness of this program;
Execute curriculum in no more than five different 5th grade classes from at least 3
elementary schools;
Provide a summary report to the City outlining program successes, lessons
learned and student impacts after completion of the program.
IV. City Responsibilities
City shall:
Provide the Bozeman Water Conservation and Stormwater Management Educator
Guide curriculum to Contractor for teaching;
Provide Contractor with relevant teaching materials pertaining to the curriculum;
Provide Contractor with pre- and post- curriculum knowledge assessments
28
Provide input on classroom organization and methods for implementing hands on
lesson plans in a COVID safe environment.
V. Cost and Timeline
Action Item Itemized Cost Total Cost Target Timeline
Planning:
Purchase materials,
create recruitment
information,
recruitment,
scheduling
Administrative time:
$1,500
Lesson Materials: $500
Promotional Materials:
$250
$2250.00 January-February
2022
Training:
Train 8 instructors for
3 hours each to present
the program
curriculum
N/A $650.00 January-February
2022
Implementation:
Present program in
three 2 hour visits in
each of the five 5th
grade classrooms
($885 per classroom)
$885 per classroom
(includes salary for 2
instructors, curriculum
review, prep time, set-up
time, travel, consumable
materials
$4425.00 March-May 2022
TOTAL PROGRAM COST: $7,325.00
City shall pay Contractor for work completed based on time and materials. Total cost shall not
exceed $7,325.00 without written consent by City. Contractor shall invoice City no more often
than once monthly.
29
Memorandum
REPORT TO:City Commission
FROM:Mike Veselik, Parking Program Manager
Brit Fontenot, Economic Development Director
SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with
SKIDATA for the Installation of New Gates in the Bridger Park Parking Garage
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Agreement - Vendor/Contract
RECOMMENDATION:Authorize the City Manager to Sign a Professional Services Agreement with
SKIDATA for the Installation of New Gates in the Bridger Park Parking Garage
STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable
sources of funding for appropriate City services, and deliver them in a lean
and efficient manner.
BACKGROUND:In October 2021, the parking gate which separates the basement of the
garage from the main floors failed. Staff attempted contacting several
vendors and SKIDATA was the only company to respond with a timeline that
met the City's needs and capacity to take on a new project at this time.
SKIDATA will ship the gate to Bozeman and send a technician to install the
gate and train city staff on basic maintenance of the gate.
UNRESOLVED ISSUES:No Unresolved is
ALTERNATIVES:As proposed by the Commission
FISCAL EFFECTS:The project will cost $23,176 for the equipment, labor, and travel. It is
included in the Commission approved budget as part of routine
maintenance.
Attachments:
Exhibit A-SKIDATA_Proposal_For_Bridger Garage
Replacement Gates.pdf
PSA for new Garage Gate Skidata Jan 25, 2022.docx
Report compiled on: January 11, 2022
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PROJECT INFORMATION
PROJECT NAME: BRIDGER GARAGE - REPLACEMENT
GATES SKIDATA CONTACT: RONALD MACHON
ACCOUNT NAME: BRIDGER GARAGE PHONE NUMBER: 425-864-7317
PROPOSAL #: 273638 E-MAIL ADDRESS: RONALD.MACHON@SKIDATA.COM
SKIDATA PROPOSAL
ISSUE DATE: 01/05/2022
VALID UNTIL: 02/04/2022
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Commercial in Confidence SKIDATA INC – 01/05/2022 Page 2 of 12
PROJECT LOCATION BILL TO INFORMATION
BRIDGER GARAGE
26 E MENDENHALL ST
BOZEMAN, MT 59715
BRIDGER GARAGE
26 E MENDENHALL ST
BOZEMAN, MT 59715
SOLUTION SUMMARY
SKIDATA TO REPLACE (2) TWO EXISTING BARRIER 98 WITH BARRIER.GATE
FINANCIAL SUMMARY
EQUIPMENT: $ 13,025 EQUIPMENT WARRANTY TERM: 12 MONTHS
SOFTWARE: $ 0 SERVICE OPTIONS FIRST YEAR
LABOR: $ 1,575 SCHEDULED SERVICING AVAILABLE
FREIGHT: $ 476 EXTENDED WARRANTY AVAILABLE
ESTIMATED SALES TAX: $ 0 PCI - SECURITY SUPPORT AVAILABLE
ESTIMATED LABOR TAX: $ 0 UPTIME GUARANTEE AVAILABLE
ESTIMATED FREIGHT TAX: $ 0
ANNUAL LICENSING FEES INCLUDED: $ 0
SUB-CONTRACTED TOTAL: $ 0
WAGE OR INSURANCE PREMIUMS: $ 0
PROJECT SERVICES: $ 8,100
TOTAL SYSTEM INVESTMENT: $ 23,176
PROJECT DATES
YOUR DESIRED GO-LIVE *02/05/2022
PAYMENT SCHEDULES OF VALUES
# PAYMENT DESCRIPTION % $ AMOUNT
1 DEPOSIT CHECK - RETURN WITH SIGNED AGREEMENT TO ACTIVATE THE PROJECT 50% $ 11,588
2 ARRIVAL - EQUIPMENT AND SOFTWARE INVOICED ONCE RECEIVED AT SKIDATA 30% $ 6,953
3 SUBSTANTIAL COMPLETION - UPON GO-LIVE, AN INVOICE WILL BE ISSUED 15% $ 3,476
4 FINAL RETENTION - AT PROJECT CLOSE-OUT, A FINAL INVOICE WILL BE ISSUED 5% $ 1,159
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PROPOSAL STATEMENT OF WORK
• (2) BARRIER,GATE
o STRAIGHT ARM
o RETROFIT BASE
• (4) STRAIGHT ARMS
o 2 SPARE
• (20) SHER BOLTS
• (1) BARRIER TOOL KIT
• (1) LOT TRAVEL
SKIDATA GATES
# BUNDLE NAME UNIT PRICE QTY EXTENDED PRICE
1
ENTRY BARRIER.GATE - ECO
HIGH QUALITY BARRIER.GATE DEVICE FOR THE US- AND CANADIAN
MARKET WITH NRTL/UL CERTIFICATION. INCLUDES LIGHT STRIPE AND
WARNING LIGHT
$5,297.56 2 $ 10,595
BARRIER GATE KITS
# BUNDLE NAME UNIT PRICE QTY EXTENDED PRICE
2
BARRIER.GATE - BOOM 10FT
3 M (9.84FT) YELLOW BARRIER ARM, NOT ILLUMINATED, MADE FROM
FIBERGLASS REINFORCED PLASTIC
$ 400.00 4 $ 1,600
3
MOUNTING PLATE - BARRIER.GATE
MOUNTING PLATE FOR SKIDATA BARRIER.GATE
$ 322.00 2 $ 644
4
BARRIER.GATE LAYING BOLT (SHEAR)
SHEAR BOLTS FOR SKIDATA BARRIER GATE
$ 6.00 20 $ 120
ACCESSORIES / OTHER
# BUNDLE NAME UNIT PRICE QTY EXTENDED PRICE
5
SKIDATA BARRIER TOOL KIT
$ 65.00 1 $ 65
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PROJECT SERVICES
# PROJECT SERVICE NAME TOTAL PRICE
1
COMMISSIONING $ 900
2
TRAVEL + TRAINING $ 5,700
3
PROJECT MANAGEMENT $ 1,500
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This Proposal is subject to the Terms and Conditions attached to this Proposal and is effective
on the last date of signature. If this Proposal is not signed within thirty calendar days from the
date on the cover page, all pricing, service terms, project dates are subject to change and/or
rescoping.
AGREED
SIGNATURE: \s1\ SIGNATURE: \s3\
PRINTED NAME:
\proposalsigner_1_\
PRINTED NAME:
TITLE:
\proposalsignertitle_1_\
TITLE:
ORGANIZATION:
\proposalsignerorg_1_\
ORGANIZATION:
SKIDATA, INC
DATE SIGNED:
\d1\
DATE SIGNED:
\d3\
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Terms and Conditions
1. Scope. These Terms and Conditions (“Terms”) apply to the hardware and embedded software in the hardware
(“Product”) listed in the attached Proposal and the installation of the Product (“Services”) between SKIDATA, Inc., (Seller) and
Counterparty (“Customer”), each a “Party”, collectively the “Parties”.
2. Payment. Customer shall pay Seller for the Products and Services by paying all invoiced amounts in U.S. dollars, without
set-off for any payment from Seller not due under these Terms, within thirty (30) days from the invoice date. Customer shall pay
an administrative late charge (“Late Charge”) of twenty-five ($25.00) USD for each monthly invoice that includes a past due
balance. In addition to the Late Charge, for each calendar month, or fraction thereof, that payment is late, Customer shall pay a
late payment charge computed at the rate of 1.5% per month on the overdue balance, or the maximum rate permitted by law,
whichever is less, for the period commencing on the due date until past due amounts are paid in full. If at any time Seller reasonably
determines that Customer’s financial condition or payment history does not justify continuation of Seller’s performance, Seller
shall be entitled to require full or partial payment in advance or otherwise restructure payments, request additional forms of
security, suspend its performance or terminate these Terms.
3. Taxes and Duties. Seller is responsible for all corporate taxes measured by net income due to performance of or payment
for work under these Terms (“Seller Taxes”). Customer is responsible for all taxes, duties, fees, or other charges of any nature
(including, but not limited to, consumption, gross receipts, import, property, sales, stamp, turnover, use, or value-added taxes,
and all items of withholding, deficiency, penalty, addition to tax, interest, or assessment related thereto, imposed by any
governmental authority on Customer or Seller or its subcontractors) in relation to these Terms or the performance of or payment
for work under these Terms other than Seller Taxes ("Customer Taxes"). The prices in this Proposal do not include the amount of
any Customer Taxes. If Customer deducts or withholds Customer Taxes, Customer shall pay additional amounts so that Seller
receives the full price under these Terms without reduction for Customer Taxes. Customer shall provide to Seller, within one month
of payment, official receipts from the applicable governmental authority for deducted or withheld taxes.
4. Deliveries; Title Transfer; Risk of Loss; Storage.
4.1 For shipments that do not involve export, including shipments from one European Union (“EU”) country to another EU
country, Seller shall deliver Products to Customer FCA Seller’s facility or warehouse (Incoterms 2020). Partial deliveries are
permitted. Seller may deliver Products in advance of the delivery schedule. Delivery times are approximate and are dependent
upon prompt receipt by Seller of all information necessary to proceed with the work without interruption. If Products delivered
do not correspond in quantity, type or price to those itemized in the shipping invoice or documentation, Customer will notify Seller
within ten calendar days after receipt. For shipments that do not involve export, title to Products will pass to Customer upon
delivery in accordance with Section 4.2. For export shipments from a Seller facility or warehouse outside the U.S., title shall pass
to Customer upon delivery in accordance with Section 4.2. Notwithstanding the foregoing, Seller grants only a license to the end-
user of the Product, and does not pass title, for any software provided by Seller under these Terms.
4.2 Risk of loss shall pass to Customer upon delivery pursuant to this Section, except that for export shipments from the U.S.,
risk of loss shall transfer to Customer upon title passage. If any Products to be delivered under these Terms or if any Customer
equipment repaired at Seller’s facilities cannot be shipped to or received by Customer when ready due to any cause attributable
to Customer or its other contractors, Seller may ship the Products and equipment to a storage facility, including storage at the
place of manufacture or repair, or to an agreed freight forwarder. If Seller places Products or equipment into storage, the following
apply: (i) title and risk of loss immediately pass to Customer, if they have not already passed, and delivery shall be deemed to have
occurred; (ii) any amounts otherwise payable to Seller upon delivery or shipment shall be due; (iii) all expenses and charges incurred
by Seller related to the storage shall be payable by Customer upon submission of Seller’s invoices; and (iv) when conditions permit
and upon payment of all amounts due, Seller shall make Products and repaired equipment available to Customer for delivery.
4.3 If repair Services are to be performed on Customer’s equipment at Seller’s facility, Customer shall be responsible for, and
shall retain risk of loss of, such equipment at all times, except that Seller shall be responsible for damage to the equipment while
at Seller’s facility to the extent such damage is caused by Seller’s negligence.
5. Product Warranty, Remedies and Disclaimers.
5.1 Product is warrantied for twelve (12) months from the date of shipment from Seller. All warranties are transferable to
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Customer’s end-user. Customer will report any defects in writing to Seller with a detailed description of the defect immediately
but no later than 14 calendar days after delivery, otherwise all claims resulting from the defect are waived. Seller is entitled to
inspect and remedy claimed defects at Customer’s premises. Customer or Customer’s end-user will provide Seller with the
necessary resources and assistants free of charge. If the inspection reveals that there is no claim under warranty, Customer shall
cover all costs incurred in accordance with SELLER’s local price list valid at the time of the inspection.
5.2 At Seller’s option, Seller will repair, replace, or refund for defective Product. Customer will ship defective Product to
Seller’s designated location at Customer’s expense. Replaced parts become the property of Seller. This Section 5 provides the
exclusive remedies for all claims based on failure of or defect in Products, regardless of when the failure or defect arises, and
whether a claim, however described, is based on contract, warranty, indemnity, tort/extra-contractual liability (including
negligence), strict liability or otherwise. The warranties provided in this Section 5 are exclusive and are in lieu of all other
warranties, conditions and guarantees whether written, oral, implied or statutory. EXCEPT FOR THE FOREGING, NO IMPLIED OR
STATUTORY WARRANTY, OR WARRANTY OR CONDITION OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE APPLIES.
5.3 The warranty is void if Customer or Customer’s end-user: (a) does not observe conditions for assembly, commissioning or
use of the Product; (b) allows third parties carry out repairs, changes, maintenance or other works to the Product without Seller’s
written consent; (c) uses the Product with components not certified by Seller; (d) uses equipment (such as but not limited to
networks, supply lines, cabling) that does not function properly; (e) does not carry out required maintenance works in time; (f) is
in default with its contractual obligations in particular with payment; or (g) if defects or damages are attributable to third party
components, internet disruptions, software viruses, chemical influences, force majeure or acts of Customer or third parties.
6. Software License, Warranty, Remedies and Disclaimers.
6.1 License. Customer’s end-user is granted a non-exclusive, non-transferable, non-sublicensable, limited right to use the
software unlimited in time. Even if software is made available to the Customer or Customer’s end-user on a CD or any other
physical data carrier, Seller shall remain the owner of the software and all trademarks, copyrights, patents, trade secrets and
other intellectual property rights relating thereto. The source code shall not be part of these Terms.
6.2 Software updates, service packs, hot fixes and patches (collectively, "Updates") may be provided to the Customer,
as such are available to comply with the applicable laws, regulations and/or compatibility requirements, including but not
limited to security-related and operational standards developed by ISO or the PCI Security Standards Council LLC. In addition,
software upgrades including new releases or versions of software (collectively, "Upgrades") may be provided to the
Customer, as such are available. The Customer acknowledges that, according to the respective release planning, older
versions of software may no longer be supported after the expiry of a certain period. Seller is not required to provide Updates
and/or Upgrades. Costs for installation of Updates and Upgrades shall be borne by the Customer or Customer’s end-user, as
the case may be, and are not included in the license fee. Updates and Upgrades may alter the system requirements and it
may be necessary to install the respective predecessor Updates/Upgrades, third-party components and additional or altered
hardware. Respective costs shall be borne by the Customer and are not included in the license fee. Nothing in these Terms
require Customer to install Updates or Upgrades but Seller recommends their immediate installation. In case of non-
installation of offered Updates or Upgrades, this could possibly endanger the security and operability of software and related
systems and even infringe third-party licenses or laws; all consequences of non-installation are at the sole risk of the
Customer. Warranty claims regarding systems related to the software will automatically become void. The Customer
acknowledges and agrees that Seller is not liable for damages resulting from the non-installation of Updates and Upgrades.
6.3 The Customer is solely responsible for performing a backup of files and data before installing any Updates and
Upgrades. Therefore, Seller is not liable for lost files, information or data and related damages. Seller and persons authorized
by Seller are entitled to execute an audit by examining the systems, computers, books, records and accounting records of
the Customer during normal business hours as far as they are connected to software provided under these Terms. To the
extent the Customer is allowed to exchange hardware, the Customer undertakes to fully and irretrievably remove software
from the exchanged equipment and provide evidence for such removal.
6.4 Without the written consent of Seller the Customer must not himself or allow any third party to: (a) reverse engineer,
decompile, disassemble or otherwise reduce the software to any human perceivable form; (b) modify, adapt, translate or
create derivative works based upon the software, the written materials accompanying the software, or any part thereof; (c)
combine the software with any kind of open-source- software; (d) remove or manipulate copyright notices and other signs on
the software copies; (e) use or permit the software to be used to perform services for third-parties; or (f) make or use any
copies of the software, even if the software has been merged or included with other software, or any accompanying materials
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for any purpose other than as provided in these Conditions. If the Customer creates a back-up copy in accordance with these
Conditions, the Customer shall include all copyright notices and/or proprietary notices that are affixed to or appearing in the
original copy.
6.5 The use of the software may require third party components and/or other system requirements in order to work
properly. The corresponding requirements are described in the documentation for the respective product. These third-party
components may be supplemented or modified by SELLER at its sole discretion. Customer is responsible for obtaining,
installing, maintaining and operating any third-party components. For third party components additional terms and
conditions may apply, which shall be observed by the Customer. The use of third-party components is at the risk of the
Customer. Seller is not liable for damages or losses caused by third party components. All costs and fees for third party
components shall be borne by the Customer.
6.6 Software, either stand-alone or embedded in the Product, is provided by Seller "as is" and "with all faults." Seller makes no
representations or warranties of any kind concerning the safety, suitability, inaccuracies, typographical errors, or other harmful
components of this Software. The only warranty that applies is that the software has the functionalities and characteristics
described in the product description provided that the system requirements are fulfilled. The warranty period shall be 6 (six)
months and begins at the time of delivery. It is technically impossible to produce software that is absolutely free of any
defect. The Customer knows and accepts this risk. Minor defects not impairing essential functions of the software therefore
do not have to be corrected under the warranty. Seller fulfils its warranty obligation within a reasonable period of time in its
sole discretion either by rectification or a substitute delivery of the defective software or by granting a price reduction which
is Customer’s sole and exclusive remedy and Seller’s only liability with respect to defective software. For warranty repairs at
the Customer’s or Customer’s end-user's premises, the Customer will make available free of charge to Seller resources and
employees as required by Seller. Defects which are not within the responsibility of Seller are excluded from warranty and
especially applies to defects from materials or software provided by the Customer. The warranty shall lapse if the Customer
or any third-party effects any changes to the software that are not authorized by Seller in writing. The Customer shall only
be entitled to make warranty claims after full payment of the agreed price. In addition, any warranty shall be excluded in
case of damage caused by third party acts, atmospheric discharge, instable networks and chemical influences or force majeure.
SELLER DISCLAIMS ANY WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE. THE SOFTWARE AND ACCOMPANYING DOCUMENTATION, IF ANY, PROVIDED
HEREUNDER IS PROVIDED "AS IS".
7. Installation Services, Warranties, Remedies and Disclaimers.
7.1 Customer is solely responsible for any necessary permits from public authorities or other third parties required before
Seller provides any Services. Seller is under no obligation to perform any Services until such permits are in place.
7.2 Seller warrants that for any installation services (Services), those Services will be performed in a (i) workmanlike and
professional manner consistent with generally accepted industry standards, and (ii) conform to the written specifications of the
agreed upon written specifications for six months from completion. Customer’s sole and exclusive remedy and Seller's entire
liability with respect to the Services warranty in this Section 7.1 will be, at Seller’s option, to either (a) use its reasonable commercial
efforts to re-perform any non-conforming Services not in substantial compliance with this warranty or (b) refund amounts paid by
Customer related to the portion of the Services not in substantial compliance. In each situation (a) or (b), Customer must notify
Seller in writing within thirty calendar days after performance of the applicable Services. Any warranty provided by Seller under
this Section is void if an event outside the control of Seller impacts the Services or the Services are in anyway changed, unless Seller
pre-approves in writing of the changes. SELLER MAKES NO OTHER, AND EXPRESSLY DISCLAIMS ALL OTHER, REPRESENTATIONS,
WARRANTIES, CONDITIONS OR COVENANTS, WHETHER STATUTORY, EXPRESS OR IMPLIED (INCLUDING WITHOUT LIMITATION,
ANY STATUTORY, EXPRESS OR IMPLIED WARRANTIES OR CONDITIONS OF FITNESS FOR A PARTICULAR PURPOSE,
MERCHANTABILITY,
8. Limitation of Liability. EXCLUDING CLAIMS FOR PERSONAL INJURY OR DEATH AND A PARTY’S INDEMNIFICATION
OBLIGATIONS UNDER THESE TERMS, NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOSS OF REVENUE OR INCOME, LOSS OF OR USE
OF DATA, OPERATIONAL EFFICIENCY, LOSS OF CUSTOMERS OR INFORMATION, ARISING UNDER THESE TERMS REGARDLESS OF THE
FORM OF ACTION OR THEORY OF RELIEF, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCLUDING CLAIMS FOR
PERSONAL INJURY OR DEATH AND A PARTY’S INDEMNIFICATION OBLIGATIONS UNDER THESE TERMS, ANY LIABILITY FOR DIRECT
DAMAGES ARISING UNDER THESE TERMS, REGARDLESS OF THE FORM OF ACTION OR THEORY OF RELIEF, IS LIMITED TO THE
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PURCHASE PRICE OF THE PRODUCT OR IN THE CASE OF A SERVICES, THE TOTAL AMOUNT PAID OR TO BE PAID FOR THE SERVICES
THAT GIVES RISE TO THE CLAIM UNDER THESE TERMS. EXCEPT FOR CLAIMS OF NON-PAYMENT, ANY CLAIM AGAINST SELLER AND
ITS AFFILIATES, OF WHATEVER NATURE, MUST BE BROUGHT WITHIN ONE (1) YEAR OF PRODUCTS DELIVERED OR COMPLETION OF
THE SPECIFIC SERVICES GIVING RISE TO ANY CAUSE OF ACTION OR ALLEGATION OF WRONGDOING.
9. Intellectual Property Infringement.
9.1 Seller will indemnify, defend and hold harmless Customer, its officers, directors, employees, agents, affiliates, and end-
users from and against any third-party claims (“Claim(s)”) that any Seller manufactured Product provided to Customer under these
Terms infringes any patent, copyright, trademark or trade secret provided that Customer (a) promptly notifies Seller in writing of
the Claim, (b) makes no admission of liability and does not take any position adverse to Seller, (c) gives Seller sole authority to
control the defense and settlement of the Claim, and (d) provides Seller full disclosure and reasonable assistance as required to
defend the Claim. In the event the Product may in Seller’s reasonable opinion to be infringing, Seller at its option and own expense
may do the following: (i) secure for Customer the right to continue the use of the infringing item, (ii) replace the infringing item
with a substantial equivalent non-infringing item, or (iii) modify the item to be non-infringing. In the event Seller is unable to
perform the options previously listed (i) through (iii), Customer will then return the deliverable to Seller and Seller will refund
Customer the amount paid for such item. This infringement Section is Seller’s entire liability and Customer’s sole and exclusive
remedy with respect to Customer’s inability to use the deliverable or any portion of the Product due to any infringement or claim
of infringement.
9.2 Seller will have no indemnification obligations where: (a) any Product was in accordance with Customer’s or Customer’s
end-user’s sole design or specifications, (b) Customer or Customer’s end-user alters the Product, (c) Customer or Customer’s end-
user combines the Product with materials not supplied or approved by Seller and such infringement would not have occurred absent
such combination, or (d) Customer or Customer’s end-user continues to use the Product after receiving written notice from Seller
to stop using the Product. In no case shall Seller be liable for any consequential, incidental, indirect, special, punitive or exemplary
damages (including, without limitation, lost profits, business or goodwill) suffered or incurred by Customer. In no case shall Seller
be liable for any damages arising out of Customer’s willful, negligent, or reckless conduct.
9.3 Seller’s indemnification obligations are conditioned upon Customer (i) notifying Seller promptly of any threatened or
pending Claim, provided that failure to provide such notice will only relieve Seller of its indemnification obligations to the extent
its ability to defend or settle an applicable Claim is materially prejudiced by such failure to provide notice; (ii) giving Seller, at
Seller’s expense, reasonable assistance and information requested by Seller in connection with the defense and/or settlement of
the Claim; and (iii) tendering to Seller sole control over the defense and settlement of the Claim. Customer counsel or their
appointed of counsel of choice will have the right to participate in the defense of the Claim at Customer’s own expense without
setoff, reimbursement, or payment whatsoever from Seller. Customer will not, without the prior written consent of Seller, make
any admission or prejudicial statement, settle, compromise, or consent to the entry of any judgment with respect to any pending
or threatened Claim.
10. Seller’s Intellectual Property. Seller and/or its licensors are exclusively entitled to all rights to the Product derived from
patent rights, trademark rights, design protection, copyrights or other intellectual property rights or otherwise from the creation
of the Product as well as related documents, specifications, samples, models, drawings, printing plates, photographs, and other
material shall remain the intellectual property of Seller, including any improvements or alterations made to the Products or
Services during Seller’s performance under these Terms.
11. Data Protection and California Consumer Privacy Act (CCPA). Seller may collect, process, forward and use Customer’s
data (including personal data) to the extent necessary for the establishment and fulfilment of these Terms as well as for billing
purposes and customer service. Seller is also entitled to transfer such data to affiliated companies or third parties commissioned to
process data for Seller insofar as this is necessary to perform under these Terms. Customer agrees to all applicable data protection
provisions. Seller is a “service provider” as defined under the CCPA and agrees to refrain from retaining, using, or disclosing personal
information for any purpose other than for the specific purpose of performing the Services and selling the Product under these
Terms.
12. Term and Termination for Cause. These Terms are effective until all Product is delivered or the Services are complete,
whichever is later. Either Party may terminate these Terms if the other Party breaches any material terms or conditions of these
Terms and the breach remains un-cured for thirty calendar days after receipt of written notice of the breach. In addition to the
foregoing, either Party may terminate these Terms with advanced written notice of ten calendar days, if the other Party becomes
insolvent, enters bankruptcy, reorganization, or other similar proceedings, admits in writing its inability to pay debts, or attempts
or makes an assignment for the benefit of creditors.
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13. Force Majeure. Except for the obligation to pay, neither Party is liable for failure to fulfill its obligations under these Terms
due to causes beyond its reasonable control, including but not limited to: (1) war, warlike operations, armed aggression,
insurrection, riots; (2) fires, floods, explosions, earthquakes, inclement weather; (3) any acts of a Government, governmental
priorities, allocation regulations or orders; (4) acts of God or of the public enemy; (5) failure of or delays in transportation; (6)
epidemics, quarantine restrictions, or other similar circumstances; (7) inability to procure materials or parts including unavailability
of Original Equipment Manufacturer (“OEM”) parts; and (8) labor troubles causing cessation, slowdown, work stoppage or
interruption of work. Seller shall not be liable for failure to fulfill its obligations under these Terms for delays of any type that are
caused, in whole or part, by Customer. In the event of such a delay, Seller may invoice Customer for all completed Services.
Furthermore, if Customer causes a delay, Seller may stop Services, which may result in a greater day-for-day delay in the
completion of Services.
14. Governing Law and Dispute Resolution. Except for any equitable relief and claims for payment, any dispute, controversy
or claim arising out of or in relation to these Terms, including the validity, invalidity, breach or termination, will be resolved by
arbitration in Los Angles, California under the Commercial Arbitration Rules of the American Arbitration Association (AAA). The
tribunal will consist of a single arbitrator to be chosen under the AAA rules. The language of the arbitration will be English. The
award will be final and binding on the Parties and will also include legal fees, costs of arbitration and all related matters. Judgment
upon the award rendered by the arbitrator may be entered in any court having jurisdiction. These Terms are governed by the laws
of the State of California, without regard to its choice of law provisions. The Parties agree that the United Nations Convention on
Contracts for the International Sale of Goods (CISG) does not apply to these Terms.
15. Miscellaneous.
15.1 Entire Agreement. These Terms constitute the entire understanding between the parties regarding the purchase of Products
or Services from Seller and supersedes and replaces any previous communications, representations or Terms, written or oral.
15.2 Conflicting Terms. These Terms takes precedence over any terms and conditions in a purchase order or other ordering
document from Customer. The sale or order of any Product or Services is expressly conditioned on Customer’s assent to the
terms of these Terms. Any other additional or inconsistent terms or conditions in a purchase order or course of dealings between
the Parties or usage of trade are expressly disclaimed and rejected.
15.3 Assignment. Except for those transferable warranties, neither Party may assign these Terms or any of its rights or obligations
without the prior written consent of the other Party, unless a Party is subject to a change in ownership of more than fifty
percent of its voting rights or any controlling interest in which case, advanced written notice is required to the other Party.
These Terms bind and benefit the Parties and their respective successors and assigns. Subject to the restrictions in assignment
contained in these Terms, these Terms will be binding on and inure to the benefit of the parties and their successors and
assigns.
15.4 Amendment. No provision of these Terms may be waived, amended, or modified by either party except by a written amendment
signed by both Customer and Seller.
15.5 Waiver. Any delay or failure by either party to exercise any right or remedy will not constitute a waiver of that party to enforce
its rights.
15.6 Survivability. The terms and conditions of these Terms which by sense and content are intended to survive, including payment,
warranties and disclaimers, confidentiality, and limitation of liability, survive the expiration or termination of these Terms. If
any part of these Terms are found by a court of competent jurisdiction to be invalid, illegal or unenforceable, all other parts
will remain in effect.
15.7 Contra Proferentem. Each Party acknowledges that it has been represented by counsel under these Terms. Accordingly, any
rule of applicable law or any legal decision that would require interpretation of any claimed ambiguities in these Terms against
the drafting party has no application and is expressly waived.
15.8 Interpretation. Headings in these Terms are for reference purposes only and are not to be interpreted as being part of these
Terms.
15.9 Subcontracting. Seller has the right to subcontract any other Services to any subcontractor that has the requisite skill and
expertise to complete the work. In such situations, Seller will pass through to Customer all available warranties and use
commercially reasonable efforts to assist Customer in administering any warranty claim. If Customer requires Customer’s
choice of subcontractor, Customer will: (1) contract directly with them; (2) verify provision of adequate insurances of the types
and values Seller requires, and (3) indemnify Seller from and against any claim or allegation that arises from Customer’s
subcontractor’s performance of services or presence in Seller’s facility.
15.10 Counterparts. These Terms may be executed in one or more counterparts, each of which will be considered an original but
altogether constitute the same instrument. Acceptance of these Terms may be made in electronic form showing the signatures
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of both parties. The Parties agree that electronic signatures may be used and will be legally valid, effective, and enforceable.
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PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this _____ day of ____________, 202__
(“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA,a self-governing
municipal corporation organized and existing under its Charter and the laws of the State of Montana,
121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT
59771, hereinafter referred to as “City,” and, SKIDATA, 16600 Sherman Way, Suite 150, Van Nuys,
CA 91406, hereinafter referred to as “Contractor.” The City and Contractor may be referred to
individually as “Party” and collectively as “Parties.”
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged, the parties hereto agree as follows:
1.Purpose: City agrees to enter this Agreement with Contractor to perform for City
services described in the Scope of Services attached hereto as Exhibit A and by this reference made
a part hereof.
2.Term/Effective Date: This Agreement is effective upon the Effective Date and will
expire on the 31st day of December, 2022, with the option to extend on an annual basis for up to five
years, unless earlier terminated in accordance with this Agreement.
3.Scope of Services: Contractor will perform the work and provide the services in
accordance with the requirements of the Scope of Services. For conflicts between this Agreement and
the Scope of Services, unless specifically provided otherwise, the Agreement governs.
4.Payment: City agrees to pay Contractor the amount specifiedin the Scope of Services
(Exhibit A). Any alteration or deviation from the described services that involves additional costs
above the Agreement amount will be performed by Contractor after written request by the City, and
will become an additional charge over and above the amount listed in the Scope of Services. The
City must agree in writing upon any additional charges.
5. Contractor’s Representations: To induce City to enter into this Agreement,
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Contractor makes the following representations:
a.Contractor has familiarized itself with the nature and extent of this Agreement, the
Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules,
and regulations that in any manner may affect cost, progress or performance of the Scope of Services.
b.Contractor represents and warrants to City that it has the experience and ability to
perform the services required by this Agreement; that it will perform the services in a professional,
competent and timely manner and with diligence and skill; that it has the power to enter into and
perform this Agreement and grant the rights granted in it; and that its performance of this Agreement
shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark,
privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal,
state and municipal laws. The City will not determine or exercise control as to general procedures or
formats necessary to have these services meet this warranty.
6.Independent Contractor Status/Labor Relations: The parties agree that Contractor
is an independent contractor for purposes of this Agreement and is not to be considered an employee
of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s
personnel policies handbook and may not be considered a City employee for workers’ compensation
or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in
any dealings between Contractor and any third parties.
Contractor shall comply with the applicable requirements of the Workers’ Compensation Act,
Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of
Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for
all members and employees of Contractor’s business, except for those members who are exempted
by law.
Contractor shall furnish the City with copies showing one of the following: (1) a binder for
workers’ compensation coverage by an insurer licensed and authorized to provide workers’
compensation insurance in the State of Montana; or (2) proof of exemption from workers’
compensation granted by law for independent contractors.
In the event that, during the term of this Agreement, any labor problems or disputes of any
type arise or materialize which in turn cause any services to cease for any period of time, Contractor
specifically agrees to take immediate steps, at its own expense and without expectation of
reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific
steps Contractor shall take shall be left to the discretion of Contractor; provided, however, that
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Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief
to the City so as to permit the services to continue at no additional cost to City.
Contractor shall indemnify, defend, and hold the City harmless from any and all claims,
demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in
connection with any labor problems or disputes or any delays or stoppages of work associated with
such problems or disputes.
7.Indemnity/Waiver of Claims/Insurance: For other than professional services
rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and
hold harmless the City, its agents, representatives, employees, and officers (collectively referred to
for purposes of this Section as the City) from and against any and all claims, demands, actions, fees
and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses,
expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or
damages of whatever kind or nature connected therewith and without limit and without regard to the
cause or causes thereof or the negligence of any party or parties that may be asserted against,
recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or
in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii)
any negligent, reckless, or intentional misconduct of any of the Contractor’s agents.
For the professional services rendered, to the fullest extent permitted by law, Contractor
agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and
expenses, including reasonable defense attorney fees, to the extent caused by the negligence or
intentional misconduct of the Contractor or Contractor’s agents or employees.
Such obligationsshall not be construed to negate, abridge, or reduce other rights or obligations
of indemnity that would otherwise exist. The indemnification obligations of this Section must not be
construed to negate, abridge, or reduce any common-law or statutory rights of the City as
indemnitee(s) which would otherwise exist as to such indemnitee(s).
Contractor’s indemnity under this Section shall be without regard to and without any right to
contribution from any insurance maintained by City.
Should the City be required to bring an action against the Contractor to assert its right to
defense or indemnification under this Agreement or under the Contractor’s applicable insurance
policies required below, the City shall be entitled to recover reasonable costs and attorney fees
incurred in asserting its right to indemnification or defense but only if a court of competent
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jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to
indemnify the City for a claim(s) or any portion(s) thereof.
In the event of an action filed against the City resulting from the City’s performance under
this Agreement, the City may elect to represent itself and incur all costs and expenses of suit.
Contractor also waives any and all claims and recourse against the City, including the right of
contribution for loss or damage to person or property arising from, growing out of, or in any way
connected with or incident to the performance of this Agreement except “responsibility for [City’s]
own fraud, for willful injury to the person or property of another, or for violation of law, whether
willful or negligent” as per 28-2-702, MCA.
These obligations shall survive termination of this Agreement and the services performed
hereunder.
In addition to and independent from the above, Contractorshall at Contractor’s expense secure
insurance coverage through an insurance company or companies duly licensed and authorized to
conduct insurance business in Montana which insures the liabilities and obligations specifically
assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion
for liabilities specifically assumed by the Contractor in this Section.
The insurance shall cover and apply to all claims, demands, suits, damages, losses, and
expenses that may be asserted or claimed against, recovered from, or suffered by the City without
limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall
furnish to the City an accompanying certificate of insurance and accompanying endorsements in
amounts not less than as follows:
Workers’ Compensation – statutory;
Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;
Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate;
Automobile Liability - $1,000,000 property damage/bodily injury per accident; and
Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate.
The above amounts shall be exclusive of defense costs. The City shall be endorsed as an
additional or named insured on a primary non-contributory basis on the Commercial General,
Employer’s Liability, and Automobile Liability policies. The insurance and required endorsements
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must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation
or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of
notice that any required insurance coverage will be terminated or Contractor’s decision to terminate
any required insurance coverage for any reason.
The City must approve all insurance coverage and endorsements prior to the Contractor
commencing work.
8.Termination for Contractor’s Fault:
a.If Contractor refuses or fails to timely do the work, or any part thereof, or fails
to perform any of its obligations under this Agreement, or otherwise breaches any terms or
conditions of this Agreement, the City may, by written notice, terminate this Agreement and
the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due
to Contractor’s Fault”). The City may then take over the work and complete it, either with its
own resources or by re-letting the contract to any other third party.
b.In the event of a termination pursuant to this Section 8, Contractor shall be
entitled to payment only for those services Contractor actually rendered.
c.Any termination provided for by this Section 8 shall be in addition to any other
remedies to which the City may be entitled under the law or at equity.
d.In the event of termination under this Section 8, Contractor shall, under no
circumstances, be entitled to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature arising, or claimed to have arisen, as a result of the termination.
9.Termination for City’s Convenience:
a.Should conditions arise which, in the sole opinion and discretion of the City,
make it advisable to the City to cease performance under this Agreement, the City may
terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s
Convenience”). The termination shall be effective in the manner specified in the Notice of
Termination for City’s Convenience and shall be without prejudice to any claims that the City
may otherwise have against Contractor.
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b.Upon receipt of the Notice of Termination for City’s Convenience, unless
otherwise directed in the Notice, the Contractor shall immediately cease performance under
this Agreement and make every reasonable effort to refrain from continuing work, incurring
additional expenses or costs under this Agreement and shall immediately cancel all existing
orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as
may be necessary to preserve, protect, and maintain work already completed or immediately
in progress.
c.In the event of a termination pursuant to this Section 9, Contractor is entitled
to payment only for those services Contractor actually rendered on or before the receipt of the
Notice of Termination for City’s Convenience.
d.The compensation described in Section 9(c) is the sole compensation due to
Contractor for its performance of this Agreement. Contractor shall, under no circumstances,
be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost
productivity, field office overhead, general conditions costs, or lost profits damages of any
nature arising, or claimed to have arisen, as a result of the termination.
10.Limitation on Contractor’s Damages; Time for Asserting Claim:
a.In the event of a claim for damages by Contractor under this Agreement,
Contractor’s damages shall be limited to contract damages and Contractor hereby expressly
waives any right to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature or kind.
b.In the event Contractor wants to assert a claim for damages of any kind or
nature, Contractor shall provide City with written notice of its claim, the facts and
circumstances surrounding and giving rise to the claim, and the total amount of damages
sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the
claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights
to assert such claim.
11.Representatives and Notices:
a.City’s Representative: The City’s Representative for the purpose of this
Agreement shall be Mike Veselik, Economic Development Program Manager, Parking or
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such other individual as City shall designate in writing. Whenever approval or authorization
from or communication or submission to City is required by this Agreement, such
communication or submission shall be directed to the City’s Representative and approvals or
authorizations shall be issued only by such Representative; provided, however, that in exigent
circumstances when City’s Representative is not available, Contractor may direct its
communication or submission to other designated City personnel or agents as designated by
the City in writing and may receive approvals or authorization from such persons.
b.Contractor’s Representative: The Contractor’s Representative for the
purpose of this Agreement shall be Ron Machon, Area Sales Manager, or such other individual
as Contractor shall designate in writing. Whenever direction to or communication with
Contractor is required by this Agreement, such direction or communication shall be directed
to Contractor’s Representative; provided, however, that in exigent circumstances when
Contractor’s Representative is not available, City may direct its direction or communication
to other designated Contractor personnel or agents.
c.Notices:All notices required by this Agreement shall be in writing and
shall be provided to the Representatives named in this Section. Notices shall be deemed given
when delivered, if delivered by courier to Party’s address shown above during normal business
hours of the recipient; or when sent, if sent by email or fax (with a successful transmission
report) to the email address or fax number provided by the Party’s Representative; or on the
fifth business day following mailing, if mailed by ordinary mail to the address shown above,
postage prepaid.
12.Permits: Contractor shall provide all notices, comply with all applicable laws,
ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman
business license, and inspections from applicable governmental authorities, and pay all fees and
charges in connection therewith.
13 Laws and Regulations: Contractor shall comply fully with all applicable state and
federal laws, regulations, and municipal ordinances including, but not limited to, all workers’
compensation laws, all environmental laws including, but not limited to, the generation and disposal
of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and
provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and
State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination,
affirmative action, and utilization of minority and small business statutes and regulations.
49
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Professional Services Agreement for New Gate Installation in Bridger Park Garage
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14.Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by
Contractor of persons performing this Agreement shall be on the basis of merit and qualifications.
The Contractor will have a policy to provide equal employment opportunity in accordance with all
applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will
not refuse employment to a person, bar a person from employment, or discriminate against a person
in compensation or in a term, condition, or privilege of employment because of race, color, religion,
creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation,
gender identity, physical or mental disability, except when the reasonable demands of the position
require an age, physical or mental disability, marital status or sex distinction. The Contractor shall
be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United
States Code, and all regulations promulgated thereunder.
Contractor represents it is, and for the term of this Agreement will be, in compliance with the
requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act).
Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has
been found guilty of within 60 days of such finding for violations occurring during the term of this
Agreement.
Contractor shall require these nondiscrimination terms of its subcontractors providing services
under this Agreement.
15.Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor
shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs,
by anyemployee or agent engaged in services to the City under this Agreement while on City property
or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of
and shall comply with its responsibilities and obligations under the U.S. Department of Transportation
(DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City
shall have the right to request proof of such compliance and Contractor shall be obligated to furnish
such proof.
The Contractor shall be responsible for instructing and training the Contractor's employees
and agents in proper and specified work methods and procedures. The Contractor shall provide
continuous inspection and supervision of the work performed. The Contractor is responsible for
instructing its employees and agents in safe work practices.
16.Modification and Assignability: This Agreement may not be enlarged, modified or
altered except by written agreement signed by both parties hereto. The Contractor may not
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Professional Services Agreement for New Gate Installation in Bridger Park Garage
Page 9 of 11
subcontract or assign Contractor’s rights, including the right to compensation or duties arising
hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound
by all of the terms and conditions of this Agreement.
17. Reports/Accountability/Public Information: Contractor agrees to develop and/or
provide documentation as requested by the City demonstrating Contractor’s compliance with the
requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons
authorized by the City to inspect and copy its books and records for the purpose of verifying that the
reimbursement of monies distributed to Contractor pursuant to this Agreement was used in
compliance with this Agreement and all applicable provisions of federal, state, and local law. The
Contractor shall not issue any statements, releases or information for public dissemination without
prior approval of the City.
18.Non-Waiver: A waiver by either party of any default or breach by the other party of
any terms or conditions of this Agreement does not limit the other party’s right to enforce such term
or conditions or to pursue any available legal or equitable rights in the event of any subsequent default
or breach.
19.Attorney’s Fees and Costs: In the event it becomes necessary for either Party to
retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice
required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable
attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City
Attorney’s Office staff.
20.Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all
appropriate employee withholdings.
21.Dispute Resolution:
a.Any claim, controversy, or dispute between the parties, their agents,
employees, or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements. Upon mutual
agreement of the parties, the parties may invite an independent, disinterested mediator to assist
in the negotiated settlement discussions.
b.If the parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a court of
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competent jurisdiction in compliance with the Applicable Law provisions of this Agreement.
22.Survival: Contractor’s indemnification shall survive the termination or expiration of
this Agreement for the maximum period allowed under applicable law.
23.Headings: The headings used in this Agreement are for convenience only and are not
be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to
which they refer.
24.Severability: If any portion of this Agreement is held to be void or unenforceable, the
balance thereof shall continue in effect.
25.Applicable Law: The parties agree that this Agreement is governed in all respects by
the laws of the State of Montana.
26.Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs,
legal representatives, successors, and assigns of the parties.
27.No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the
parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or
enforced by a third party.
28.Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
29.Integration: This Agreement and all Exhibits attached hereto constitute the entire
agreement of the parties. Covenants or representations not contained herein or made a part thereof
by reference, are not binding upon the parties. There are no understandings between the parties other
than as set forth in this Agreement. All communications, either verbal or written, made prior to the
date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this
Agreement by reference.
30.Consent to Electronic Signatures: The Parties have consented to execute this
Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act,
Title 30, Chapter 18, Part 1, MCA.
31.Extensions:this Agreement may, upon mutual agreement, be extended for a period
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of one year by written agreement of the Parties. In no case, however, may this Agreement run longer
than five years.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
IN WITNESS WHEREOF,the parties hereto have executed this Agreement the day and
year first above written or as recorded in an electronic signature.
CITY OF BOZEMAN, MONTANA SKIDATA
By________________________________By__________________________________
Jeff Mihelich, City Manager Darrell Smithson, NAM President
APPROVED AS TO FORM:
By_______________________________
Greg Sullivan, Bozeman City Attorney
53
Memorandum
REPORT TO:City Commission
FROM:Bob Murray, Project Engineer
Scott Shirley, Interim Director of Public Works
SUBJECT:Authorize the City Manager to Sign Task Order Number 1 for the Right of
Way Acquisition Project for West Babcock Street from 15th to 19th
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Agreement - Vendor/Contract
RECOMMENDATION:Authorize the City Manager to sign Task Order Number 1 for the Right of
Way Acquisition Project for West Babcock Street from 15th to 19th.
STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and
maintenance for existing and new infrastructure.
BACKGROUND:Attached is a copy of the partially executed Task Order Number 1 with
Sanderson Stewart for the Right of Way Acquisition Project for West
Babcock Street from 15th to 19th.
The City has a term contract with Sanderson Stewart for right of way
acquisition services. The previous task order for the project included
providing title reports and preliminary valuations for the needed right of way
and easements for the properties along the corridor. This task order will add
the services to complete the acquisitions from thirteen properties between
15th and 19th necessary for the construction of the project.
UNRESOLVED ISSUES:None.
ALTERNATIVES:As suggested by the City Commission.
FISCAL EFFECTS:The proposed fee for this scope of work is paid on a time and materials basis
with a total cost not to exceed amount of $79,533.00.
Attachments:
Right of Way Acquistion Task Order 1 for West Babcock 15th
to 19th.pdf
Report compiled on: January 10, 2022
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Memorandum
REPORT TO:City Commission
FROM:Susana Montana, Senior Planner, Development Review Division
Brian Krueger, Manager, Development Review Division
Anna Bentley, Interim Director, Community Development Department
SUBJECT:Review of the Preliminary Plat of the Park View Crossing Major Subdivision
to Create 44 Townhome Lots, 2 Open Space Lots, 1 Storm Water
Management Lot, Streets and an Alley on 7 Acres of Land zoned R-3,
Medium-density Residential
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Community Development - Quasi-Judicial
RECOMMENDATION:Approve the Preliminary Plat with conditions and code provisions and
authorize staff to execute related documents.
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:The Campeche Shores Development Company submitted an application to
subdivide the 7-acre Lot 4 of Minor Subdivision 400 into 44 residential lots
and associated streets and common areas. This is a new subdivision on
vacant land that was annexed into the City in 2000 and is zoned R-3. The 44-
lot subdivision abuts the Gallatin County Regional Park on the park's eastern
boundary. The subdivision is accessed from Vaquero Parkway, south of
Baxter Lane and north of W. Oak Street. The plat creates 9 fourplex
townhome lots, 2 triplex townhome lots and 1 duplex townhome lot. There
is a mid-block crossing consisting of two pedestrian open space lots. An alley
would bisect the middle Block 2 in a north-south orientation and lots within
that block would access garages from the alley and homes would face the
street. Storm water would flow to a common area drainage pond lot
located on the northern edge of the subdivision. The Applicant would meet
parkland requirements by a combination of cash-in-lieu and improvements-
in-lieu of on-site parkland due to the proximity of the 97-acre regional park.
One of the in-lieu improvements would be installation of a shared-use path
along the Vaquero Parkway frontage of the subdivision.
UNRESOLVED ISSUES:Unresolved issues related to on-going negotiations with the City's Parks and
Recreation Department related to parkland contributions and related to
storm water management issues would be addressed prior to submittal of a
64
final plat, should this Preliminary Plat be approved.
ALTERNATIVES:As identified by the Commission.
FISCAL EFFECTS:None.
Attachments:
_2.g_PreliminaryPlat_09242021.pdf
21158 Park View Crossing CC staff rpt 12 28 21.pdf
21158 City Commission hearing memo.pdf
21158 Comm Dev Board mtg summary.pdf
Report compiled on: December 28, 2021
65
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0.09 ACRES
4187 SQ FT
0.10 ACRES
6740 SQ FT
0.15 ACRES
4927 SQ FT
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L2
L3
L4
L5
L6
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L10
L11
L12
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S78°41'32"W
S78°41'32"W
S78°41'32"W
S52°39'56"W
S81°13'23"W
S81°13'23"W
S0°00'14"W
N7°22'36"W
N7°22'36"W
N7°22'36"W
N78°41'32"E
N49°39'38"E
S42°38'51"E
S42°38'51"E
N42°38'51"W
N42°38'51"W
S33°25'48"E
S33°25'48"E
N33°25'48"W
N33°25'48"W
N33°25'48"W
S33°25'48"E
S3°34'30"E
S3°34'30"E
S3°34'30"E
N3°34'30"W
S73°51'49"W
S73°51'49"W
LENGTH
57.90'
34.08'
34.08'
122.99'
11.57'
23.99'
54.65'
17.15'
104.31'
119.19'
123.21'
87.78'
93.49'
51.80'
30.23'
30.23'
39.16'
20.13'
30.06'
30.06'
34.35'
10.63'
35.89'
16.11'
30.74'
30.74'
51.62'
98.01'
105.09'
LINE #
L30
L31
L32
L33
L34
L35
L36
L37
L38
L39
L40
L41
L42
L43
L44
L45
L46
L47
L48
L49
L50
L51
L52
L53
L54
L55
L56
L57
L58
BEARING
S73°51'49"W
S73°51'49"W
S66°48'52"W
S66°48'52"W
S66°48'52"W
N60°49'47"E
S60°51'24"W
S38°33'40"W
N38°34'25"E
N60°18'46"E
S60°18'46"W
S60°18'46"W
N55°54'42"E
N54°21'13"E
S54°21'13"W
S54°21'13"W
S78°41'32"W
N3°34'39"W
S3°34'39"E
N3°34'39"W
N33°25'48"W
N33°25'48"W
S33°25'48"E
N33°25'48"W
S33°25'48"E
N33°25'48"W
N42°38'48"W
N42°38'51"W
N42°38'51"W
LENGTH
112.86'
122.14'
129.15'
130.38'
129.20'
106.18'
103.38'
19.46'
17.80'
117.74'
115.53'
114.01'
111.19'
105.04'
101.01'
97.69'
85.63'
66.65'
30.15'
30.15'
11.00'
34.64'
10.63'
44.85'
30.00'
30.00'
41.57'
30.00'
30.00'
LINE #
L59
L60
L61
L62
L63
L64
L65
L66
L67
L68
L69
L70
L71
L72
L73
L74
L75
L76
L77
L78
L79
L80
L81
L82
L83
L84
L85
L86
L87
CURVE #
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
C31
C32
C33
C34
C35
C36
ROAD CENTERLINE
EASEMENT LINE
CURB
SEWER MAIN
WATER MAIN
STORMWATER LINE
SEWER SERVICE
WATER SERVICE
FIRE HYDRANT
WATER VALVE
SEWER MANHOLE
STORMWATER INLET
CONTOUR INTERVAL = 1'
LEGEND
8''S 8''S
8''W 8''W
P.O.B.
R.O.W.
US PUBLIC LANDS SURVEY SYSTEM 14
SECTION CORNER FOUND AS DESCRIBED
FOUND TD&H YELLOW PLASTIC CAP 12251 LS
FOUND TD&H RED PLASTIC CAP 12251 LS
FOUND 2" ALUMINUM CAP MARKED "HYALITE
ENGINEERS 14456 LS"
SET 58" X 24" REBAR W/ 2" ALUMINUM CAP
MARKED "HYALITE ENGINEERS 14456LS"
SET 58" X 24" REBAR W/ 2" YELLOW PLASTIC CAP
MARKED "HYALITE ENGINEERS 14456LS"
POINT OF BEGINNING
RIGHT OF WAY
PUBLIC UTILITY EASEMENT
CHORD BEARING
CHORD DISTANCE
OPEN SPACE
COMMON AREA
ST ST
HYD
S P.U.E.
C.B.
C.D.
OS
CA
0'50'100'150'
PRELIMINARY PLAT OF PARK VIEW CROSSING MAJOR SUBDIVISION
BEING LOT 4 OF MINOR SUBDIVISION 400 LOCATED IN NE 1
4 OF SECTION 3, TOWNSHIP 2 SOUTH, RANGE 5 EAST, P.M.M., CITY OF BOZEMAN,
GALLATIN COUNTY, MONTANA
SCALE BARMAJOR SUBDIVISION
CITY OF BOZEMAN,
GALLATIN COUNTY,
MONTANA
BASIS OF BEARING
2 3 0 4 N. 7th A V E S T E L , B O Z E M A N , M T 5 9 7 1 5
P H O N E : ( 4 0 6) 5 8 7 - 2 7 8 1 F A X : ( 4 0 6 ) 5 2 2 - 9 2 2 5
w w w . h y a l i t e e n g . c o m
1/4 SEC T R
3 2S 5E
DRAWN
BV
DATE
09/24/2021
PRELIMINARY PLAT
SCALE
1"=50'
SHEET
1 OF 3
PROJECT NUMBER
193211
Geodetic North @
GPS Position
LAT. 45°41'58.18" NORTH
LONG. 111°05'19.96" WEST
PURPOSE OF SURVEY:
Creation of a 44 lot major subdivision.
THIS SURVEY WAS PERFORMED FOR:
Campeche Shores Development LLC
CERTIFICATE OF DIRECTOR OF PUBLIC WORKS
I, Director of Public Works, City of Bozeman, Montana, do hereby certify that the accompanying plat has
been duly examined and have found the same to conform to the law, approves it, and hereby accepts
the dedication to the City of Bozeman for the public use of any and all lands shown on the plat as being
dedicated to such use.
DATED this _______ day of _________________ , A.D., 2021.
Public Works Director
City of Bozeman, MT
CERTIFICATE OF COUNTY TREASURER
I, Jennifer Blossom certify that the accompanying plat has been duly examined and that all real property
taxes and special assessments assessed and levied on the land to be subdivided are paid.
Assessor Number RFG58322
DATED this _______ day of _________________ , A.D., 2021.
Jennifer Blossom
Treasurer of Gallatin County
CERTIFICATE OF CLERK AND RECORDER
I, _________________________, Clerk and Recorder of Gallatin County, Montana, do hereby certify that
the foregoing instrument was filed in my office at _____ o'clock, (a.m., or p.m.), this _______ day of
_________________ , A.D., 2021, and recorded in Book ___________ of Plats on Page _____, Records
of the Clerk and Recorder, Gallatin County, Montana.
_______________________________
Eric Semerad
Gallatin County Clerk and Recorder
CERTIFICATE OF EXCLUSION FROM MONTANA DEPARTMENT
OF ENVIRONMENTAL QUALITY REVIEW
The Park View Crossing Major Subdivision, Gallatin County, Montana, is within the City of Bozeman,
Montana, a first-class municipality, and within the planning area of the Bozeman growth policy which was
adopted pursuant to MCA 76-1-601 et seq., and can be provided with adequate stormwater drainage and
adequate municipal facilities. Therefore, under the provisions of MCA 76-4-125(2)(d), this subdivision is
excluded from the requirement for Montana Department of Environmental Quality review.
DATED this _______ day of _________________ , A.D., 2021.
Public Works Director
City of Bozeman, MT
CERTIFICATE OF COMPLETION OF IMPROVEMENTS
I, Campeche Shores Development LLC, and I, Brett Megaard, a registered professional engineer licensed to
practice in the State of Montana, hereby certify that the public improvements, required as a condition of
approval of Parkview Crossings Major Subdivision, have been installed in conformance with the approved
engineering specifications and plans.
Its:
Campeche Shores Development LLC
Brett Megaard, PE 29106
Hyalite Engineers PLLC
GRANT OF EASEMENTS
The undersigned hereby grant unto each and every person, firm or
corporation, whether public or private, providing or offering fiber optic,
telephone, telegraph, electric power, gas, cable television, water or sewer
service to the public, the right to joint use of an easement for the construction,
maintenance, repair and removal of their lines and other facilities in, over,
under, and across each area designated on this plat as 'Utility Easement' to
have and to hold forever.
Dated this day of , 2021
CAMPECHE SHORES DEVELOPMENT LLC
State of )
) ss
County of )
On this day of , 2021, before me, a notary public
in and for
said county and state, personally appeared ,
known to me to be the , of Campeche
Shores Development LLC, known to me to be the corporation whose name is subscribed to
the within instrument.
Signature of notarial officer
Name - typed, stamped, or printed
Title (and Rank)
Residing at
My commission expires:
CERTIFICATE OF SURVEYOR
I, the undersigned, Shannon J. Marinko, Registered Land Surveyor, do hereby certify that between
January 1, 2021 and _____________________, 2021, I surveyed and described the same as shown on
the accompanying plat and platted in accordance with the provisions of the Montana Subdivision and
Platting Act, Section 76-3-101 through 76-3-625, MCA, and the Bozeman Municipal Code.
DATED this _______ day of _________________ , A.D., 2021.
Shannon J. Marinko #LS-14456
Hyalite Engineers, PLLC.
CERTIFICATE OF DEDICATION
We, the undersigned property owner(s), do hereby certify that we have caused to
be surveyed, subdivided and platted into lots, parcels, blocks, roads and alleys,
and other divisions and dedications, as shown by this plat hereunto included, the
following described tract of land, to wit:
Being Lot 4 of Minor Subdivision 400 located in the NE 1
4 of Section 3, Township 2
South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana being
more particularly described as follows:
Commencing at the north 1/4 of Section 3, thence S 70°52'13" E a distance of
980.63', the Point of Beginning;
thence N 89°58'45" E a distance of 153.05';
thence S 00°00'14" W a distance of 17.18';
thence along an arc to the right said arc having a length of 242.43', a radius of
1200.00', a chord bearing of S 05°47'01" E, and a chord length of 242.02';
thence S 78°25'00" W a distance of 75.00';
thence along an arc to the right said arc having a length of 770.18', a radius of
1275.00', a chord bearing of S 28°52'38" E, and a chord length of 758.52';
thence S 43°53'15" W a distance of 170.56';
thence S 56°27'34" W a distance of 95.06';
thence N 51°34'41" W a distance of 84.52';
thence N 42°38'48" W a distance of 252.78';
thence N 33°25'49" W a distance of 339.90';
thence N 02°29'17" E a distance of 268.95';
thence N 32°58'17" E a distance of 116.56';
thence N 55°46'25" E a distance of 91.05';
thence N 20°48'07" W a distance of 48.57';
thence N 31°22'05" E a distance of 75.40';
thence N 18°00'02" W a distance of 66.25' to the point of beginning;
Said parcel contains 7.00 acres more or less, and is subject to all easements of
record, or apparent on the ground.
The above described tract of land is to be known and designated as Park View
Crossing, City of Bozeman, Gallatin County, Montana; and the lands included in all
roads, avenues, alleys, and parks or public squares shown on said plat are hereby
granted and donated to the use of the public forever. The roadways dedicated to
the public are accepted for public use, but the City accepts no responsibility for
maintaining the same. The owner(s) agree(s) that the City has no obligation to
maintain the roads hereby dedicated to public use.
CERTIFICATE OF CITY COMMISSION OF BOZEMAN
I, Mayor of the City of Bozeman, Gallatin County, Montana, do hereby certify that the accompanying plat
has been duly examined and have found the same to conform to the law, approve it, and hereby accept the
dedication to public use.
DATED this day of , A.D., 2021.
Mayor
City of Bozeman, Montana
CERTIFICATE OF ACCEPTING CASH DONATION IN-LIEU OF
PARK LAND DEDICATION
Finding dedication of parkland within the platted area of Park View Crossing would be undesirable for
park and playground purposes, it is hereby ordered by the City Commission of the City of Bozeman, that
land dedication for park purposes be waived and that cash-in-lieu, in the amount of _______ dollars, be
accepted with the provisions of Montana Subdivision and Platting Act (MCA 76-3-101 through 76-3-625)
and the Bozeman Municipal Code.
DATED this _______ day of _________________ , A.D., 2021.
Director of Parks and Recreation
City of Bozeman, MT
SURVEY NOTES:
1. THIS SURVEY IS CONSIDERED DRAFT UNLESS SIGNED AND STAMPED
BY THE PROFESSIONAL LAND SURVEYOR.
2. ALL 44 LOTS ARE DESIGNATED TOWNHOUSE LOTS.
3. THERE ARE A TOTAL OF 9 QUADPLEX TOWNHOUSE UNITS, 2 TRIPLEX
TOWNHOUSE UNITS, AND 1 DUPLEX TOWNHOUSE UNIT
4. THE PROPERTY IS ZONED R-3, PLEASE SEE THE APPLICABLE ZONING
REGULATIONS FOR BUILDING SETBACK LOCATIONS, PARKING
REQUIREMENTS, ETC.
WETLAND BOUNDARY
STORMWATER
DRAINAGE EASEMENT
(PER DOC. # )
GRANT OF PUBLIC STORMWATER
DRAINAGE EASEMENT
The undersigned hereby grants to the public, for public use forever,
the stormwater drainage easement as shown on sheet 1 of this plat
over, under, and across Common Area 1.
66
N1/4 CORNER
SECTION 3
FOUND AS DESCRIBED ON
CORNER DOC. #2176851
VA
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BOZEMAN, MT 59715
ZONED: R-3
CROSSING 2 COMMUNITY
ASSOCIATION INC.
40 E MAIN ST STE 210
BOZEMAN, MT 59715
ZONED: R-3
S70°
5
2
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1
3
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E
980.6
3
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P.O.B.
10' P.U.E.VAQUERO PARKWAYSTOKES
LANE
47154710470
5
10' P.
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10' P.U.E.
1
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BLOCK 2
BLOCK 1
BLOCK 3
LOT 1A
LOT 1B
7595 SQ FT
0.17 ACRES
LOT 1C
LOT 1D
3800 SQ FT
0.09 ACRES
4187 SQ FT
0.10 ACRES
6740 SQ FT
0.15 ACRES
4927 SQ FT
0.11 ACRES
4346 SQ FT
0.10 ACRES
3045 SQ FT
0.07 ACRES
2754 SQ FT
0.06 ACRES
2849 SQ FT
0.07 ACRES
3268 SQ FT
0.08 ACRES
4117 SQ FT
0.09 ACRES
4113 SQ FT
0.09 ACRES
5006 SQ FT
0.11 ACRES
3588 SQ FT
0.08 ACRES
3899 SQ FT
0.09 ACRES
3499 SQ FT
0.08 ACRES
3900 SQ FT
0.09 ACRES
5504 SQ FT
0.13 ACRES
3717 SQ FT
0.09 ACRES
4851 SQ FT
0.11 ACRES
3804 SQ FT
0.09 ACRES
2820 SQ FT
0.06 ACRES
3497 SQ FT
0.08 ACRES
3441 SQ FT
0.08 ACRES
4226 SQ FT
0.10 ACRES
3886 SQ FT
0.09 ACRES
3089 SQ FT
0.07 ACRES
2820 SQ FT
0.06 ACRES
2979 SQ FT
0.07 ACRES
4551 SQ FT
0.10 ACRES
4353 SQ FT
0.10 ACRES
7691 SQ FT
0.18 ACRES
3914 SQ FT
0.09 ACRES
4681 SQ FT
0.11 ACRES
4332 SQ FT
0.10 ACRES
3651 SQ FT
0.08 ACRES
5377 SQ FT
0.12 ACRES
3759 SQ FT
0.09 ACRES
4032 SQ FT
0.09 ACRES
3309 SQ FT
0.08 ACRES
LOT 9A
LOT 8C
LOT 9B
LOT 7C
LOT 8D
LOT 9D
LOT 7D
LOT 8B
LOT 6B
LOT 7B
LOT 6A
LOT 7A
LOT 6D
LOT 6C
LOT 9C
LOT 8A
2820 SQ FT
0.06 ACRES
LOT 3C
LOT 3B
2820 SQ FT
0.06 ACRES
OS-1 950 S
Q
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T
OS-2 1234
S
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LOT 3D
LOT 5A
LOT 1A
LOT 1B
LOT 1C
LOT 2A
LOT 4C
LOT 4B
LOT 4A
LOT 4D
LOT 5B
LOT 5C
LOT 5D
LOT 2B
LOT 3A
LOT 1D
LOT 2A
LOT 1B
LOT 1C
LOT 2B
LOT 2C
LOT 1A
2879 SQ FT
0.07 ACRES
2824 SQ FT
0.06 ACRES
CA 1
12679 SQ FT
0.29 ACRES
TSC
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'N2° 29' 17"E187.08'N78° 41' 32
"
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226.01'
S49° 3
9'
35"
W
358.
0
6'
L1
L2
L3
L4
L5
L6
L7 L8C1C2L9L10L11L12
C3C4C5C6C7C8C9C10C11C12C13C14
C15
C16
C17
C1
8
L13
L
1
4
L
1
5
L
1
6
L
1
7C1
9
L
18
L
19L20L2
1
L22 C20L2
3C21C22C23C24C25L24L25L26L27L28
L29
L30
L31
L32
L33
L34
L35
L36
L37L38L39
L40
L41
L42
L43
L44
L45
L46
L47L48L49C26C27C28C29C30C31L50
L51
L52
L5
3
L54
L5
5
C3
2
L
5
6
L
5
7
L
5
8
L
5
9
L60
L
6
1
L
6
2
L
6
3
L
6
4C3
3
L
65L6
6L67
L68L6
9
L70L7
1L72C34C35L73L74L75L76 L77
L78
L79
L80
L81
L82
L83
L84
L85
L86
L87 L88L89L90
L91
L92
L93
L94
L95
L96
L97 L98
L99 L100
L101 L102
C
3
6
L103L104L105L106L107
L108
L1
0
9
L
1
1
0
L
1
1
1
L
1
1
2
L
1
1
3
L
1
1
4
L
1
1
5
SEGMENT TABLE
LINE #
L1
L2
L3
L4
L5
L6
L7
L8
L9
L10
L11
L12
L13
L14
L15
L16
L17
L18
L19
L20
L21
L22
L23
L24
L25
L26
L27
L28
L29
BEARING
S78°41'32"W
S78°41'32"W
S78°41'32"W
S78°41'32"W
S52°39'56"W
S81°13'23"W
S81°13'23"W
S0°00'14"W
N7°22'36"W
N7°22'36"W
N7°22'36"W
N78°41'32"E
N49°39'38"E
S42°38'51"E
S42°38'51"E
N42°38'51"W
N42°38'51"W
S33°25'48"E
S33°25'48"E
N33°25'48"W
N33°25'48"W
N33°25'48"W
S33°25'48"E
S3°34'30"E
S3°34'30"E
S3°34'30"E
N3°34'30"W
S73°51'49"W
S73°51'49"W
LENGTH
57.90'
34.08'
34.08'
122.99'
11.57'
23.99'
54.65'
17.15'
104.31'
119.19'
123.21'
87.78'
93.49'
51.80'
30.23'
30.23'
39.16'
20.13'
30.06'
30.06'
34.35'
10.63'
35.89'
16.11'
30.74'
30.74'
51.62'
98.01'
105.09'
SEGMENT TABLE
LINE #
L30
L31
L32
L33
L34
L35
L36
L37
L38
L39
L40
L41
L42
L43
L44
L45
L46
L47
L48
L49
L50
L51
L52
L53
L54
L55
L56
L57
L58
BEARING
S73°51'49"W
S73°51'49"W
S66°48'52"W
S66°48'52"W
S66°48'52"W
N60°49'47"E
S60°51'24"W
S38°33'40"W
N38°34'25"E
N60°18'46"E
S60°18'46"W
S60°18'46"W
N55°54'42"E
N54°21'13"E
S54°21'13"W
S54°21'13"W
S78°41'32"W
N3°34'39"W
S3°34'39"E
N3°34'39"W
N33°25'48"W
N33°25'48"W
S33°25'48"E
N33°25'48"W
S33°25'48"E
N33°25'48"W
N42°38'48"W
N42°38'51"W
N42°38'51"W
LENGTH
112.86'
122.14'
129.15'
130.38'
129.20'
106.18'
103.38'
19.46'
17.80'
117.74'
115.53'
114.01'
111.19'
105.04'
101.01'
97.69'
85.63'
66.65'
30.15'
30.15'
11.00'
34.64'
10.63'
44.85'
30.00'
30.00'
41.57'
30.00'
30.00'
SEGMENT TABLE
LINE #
L59
L60
L61
L62
L63
L64
L65
L66
L67
L68
L69
L70
L71
L72
L73
L74
L75
L76
L77
L78
L79
L80
L81
L82
L83
L84
L85
L86
L87
BEARING
N42°38'51"W
N49°39'38"E
S42°38'48"E
S42°38'48"E
S42°38'48"E
S42°38'48"E
S33°25'49"E
N33°25'49"W
S33°25'49"E
N33°25'49"W
S33°25'49"E
S33°25'49"E
S33°25'49"E
S33°25'49"E
N2°29'17"E
S2°29'17"W
N2°29'17"E
S2°29'17"W
S87°57'16"E
N87°57'22"W
S87°57'16"E
S74°54'26"W
S72°21'37"W
S68°15'32"W
N57°06'38"E
S57°06'38"W
S57°06'38"W
N57°06'38"E
S57°06'38"W
LENGTH
48.20'
94.08'
44.41'
30.00'
30.00'
41.12'
30.00'
30.00'
40.12'
10.00'
40.01'
30.00'
30.00'
44.83'
57.01'
30.00'
30.00'
46.55'
90.21'
93.39'
96.58'
105.50'
109.24'
104.86'
97.83'
94.58'
94.00'
77.94'
79.84'
SEGMENT TABLE
LINE #
L88
L89
L90
L91
L92
L93
L94
L95
L96
L97
L98
L99
L100
L101
L102
L103
L104
L105
L106
L107
L108
L109
L110
L111
L112
L113
L114
L115
BEARING
N38°34'25"E
S38°33'40"W
N57°06'38"E
S57°06'35"W
S57°06'31"W
N47°04'46"E
S47°21'09"W
S47°21'09"W
S47°21'09"W
S49°39'38"W
N49°39'38"E
N49°39'28"E
N49°39'35"E
N49°39'35"E
N49°39'50"E
S43°53'15"W
S43°53'15"W
S43°53'15"W
S43°53'15"W
S56°27'34"W
N56°27'34"E
S51°34'41"E
S42°38'48"E
N40°17'55"W
S40°17'55"E
S40°20'25"E
N40°20'25"W
N40°20'25"W
LENGTH
16.89'
14.89'
94.00'
94.00'
94.00'
94.00'
94.00'
94.00'
94.00'
77.88'
34.00'
40.63'
39.00'
34.00'
49.71'
56.27'
34.17'
39.20'
40.92'
34.24'
60.82'
84.52'
23.02'
113.10'
117.16'
113.04'
109.10'
105.66'
CURVE TABLE
CURVE #
C1
C2
C3
C4
C5
C6
C7
C8
C9
C10
C11
C12
C13
C14
C15
C16
C17
C18
C19
C20
C21
C22
C23
C24
C25
C26
C27
C28
C29
C30
C31
C32
C33
C34
C35
C36
▲ DELTA
6°09'12"
5°25'21"
1°58'36"
1°20'54"
1°20'57"
1°34'33"
1°42'25"
1°38'10"
1°20'54"
1°38'36"
1°49'18"
1°20'54"
1°20'54"
1°29'05"
1°36'43"
1°20'54"
1°20'54"
1°58'06"
9°13'04"
0°27'01"
4°12'22"
6°02'32"
6°02'32"
9°37'15"
3°56'35"
4°45'56"
5°54'38"
5°38'19"
4°16'06"
5°29'08"
3°27'24"
9°22'08"
9°12'59"
17°50'46"
18°04'20"
4°29'44"
RADIUS
1275.00'
1275.00'
1246.38'
1275.00'
1275.00'
1275.00'
1073.29'
1050.74'
1275.00'
1275.00'
1275.00'
1275.00'
1275.00'
1275.00'
1275.00'
1275.00'
1275.00'
1275.00'
135.00'
1275.00'
285.00'
285.00'
285.00'
285.00'
285.00'
315.00'
315.00'
299.47'
335.53'
315.00'
315.00'
165.00'
270.00'
120.00'
120.00'
1277.33'
LENGTH
136.93'
120.67'
43.00'
30.00'
30.02'
35.07'
31.97'
30.00'
30.00'
36.57'
40.54'
30.00'
30.00'
33.04'
35.87'
30.00'
30.00'
43.80'
21.72'
10.02'
20.92'
30.06'
30.06'
47.86'
19.61'
26.20'
32.49'
29.47'
25.00'
30.16'
19.00'
26.98'
43.43'
37.38'
37.85'
100.22'
CHORD BEARING
S3° 04' 22"E
S8° 51' 39"E
S15° 14' 09"E
N16° 52' 34"W
N18° 13' 29"W
N19° 41' 14"W
N21° 15' 40"W
N22° 30' 51"W
N23° 56' 04"W
N25° 25' 48"W
S27° 36' 46"E
S29° 11' 52"E
N30° 32' 46"W
N31° 57' 46"W
S33° 30' 40"E
S34° 59' 28"E
N36° 20' 22"W
N37° 59' 52"W
S38° 02' 19"E
S26° 28' 37"E
S31° 19' 37"E
S26° 12' 09"E
S20° 09' 37"E
S12° 19' 43"E
S5° 32' 48"E
S6° 17' 16"E
N11° 37' 33"W
N17° 15' 26"W
N22° 13' 09"W
N27° 13' 50"W
N31° 42' 06"W
N38° 06' 52"W
S38° 02' 18"E
S24° 30' 26"E
S6° 32' 53"E
S43° 55' 49"E
CHORD LENGTH
136.86'
120.62'
43.00'
30.00'
30.02'
35.07'
31.97'
30.00'
30.00'
36.57'
40.54'
30.00'
30.00'
33.04'
35.87'
30.00'
30.00'
43.80'
21.69'
10.02'
20.92'
30.04'
30.04'
47.80'
19.61'
26.19'
32.48'
29.46'
24.99'
30.15'
19.00'
26.95'
43.38'
37.23'
37.69'
100.20'
ROAD CENTERLINE
EASEMENT LINE
CURB
SEWER MAIN
WATER MAIN
STORMWATER LINE
SEWER SERVICE
WATER SERVICE
FIRE HYDRANT
WATER VALVE
SEWER MANHOLE
STORMWATER INLET
CONTOUR INTERVAL = 1'
LEGEND
8''S 8''S
8''W 8''W
P.O.B.
R.O.W.
US PUBLIC LANDS SURVEY SYSTEM 14
SECTION CORNER FOUND AS DESCRIBED
FOUND TD&H YELLOW PLASTIC CAP 12251 LS
FOUND TD&H RED PLASTIC CAP 12251 LS
FOUND 2" ALUMINUM CAP MARKED "HYALITE
ENGINEERS 14456 LS"
SET 58" X 24" REBAR W/ 2" ALUMINUM CAP
MARKED "HYALITE ENGINEERS 14456LS"
SET 58" X 24" REBAR W/ 2" YELLOW PLASTIC CAP
MARKED "HYALITE ENGINEERS 14456LS"
POINT OF BEGINNING
RIGHT OF WAY
PUBLIC UTILITY EASEMENT
CHORD BEARING
CHORD DISTANCE
OPEN SPACE
COMMON AREA
ST ST
HYD
S P.U.E.
C.B.
C.D.
OS
CA
0'50'100'150'
PRELIMINARY PLAT OF PARK VIEW CROSSING MAJOR SUBDIVISION
BEING LOT 4 OF MINOR SUBDIVISION 400 LOCATED IN NE 1
4 OF SECTION 3, TOWNSHIP 2 SOUTH, RANGE 5 EAST, P.M.M., CITY OF BOZEMAN,
GALLATIN COUNTY, MONTANA
SCALE BARMAJOR SUBDIVISION
CITY OF BOZEMAN,
GALLATIN COUNTY,
MONTANA
BASIS OF BEARING
2 3 0 4 N. 7th A V E S T E L , B O Z E M A N , M T 5 9 7 1 5
P H O N E : ( 4 0 6) 5 8 7 - 2 7 8 1 F A X : ( 4 0 6 ) 5 2 2 - 9 2 2 5
w w w . h y a l i t e e n g . c o m
1/4 SEC T R
3 2S 5E
DRAWN
BV
DATE
09/24/2021
PRELIMINARY PLAT
SCALE
1"=50'
SHEET
2 OF 3
PROJECT NUMBER
193211
Geodetic North @
GPS Position
LAT. 45°41'58.18" NORTH
LONG. 111°05'19.96" WEST
SURVEY NOTES:
1. THIS SURVEY IS CONSIDERED DRAFT UNLESS SIGNED AND STAMPED
BY THE PROFESSIONAL LAND SURVEYOR.
2. ALL 44 LOTS ARE DESIGNATED TOWNHOUSE LOTS.
3. THERE ARE A TOTAL OF 9 QUADPLEX TOWNHOUSE UNITS, 2 TRIPLEX
TOWNHOUSE UNITS, AND 1 DUPLEX TOWNHOUSE UNIT
4. THE PROPERTY IS ZONED R-3, PLEASE SEE THE APPLICABLE ZONING
REGULATIONS FOR BUILDING SETBACK LOCATIONS, PARKING
REQUIREMENTS, ETC.
SUBDIVISION AREAS
Open Space
Residential Lots
Road Right-Of-Way 2.16 acres
Alley Right-Of-Way 0.43 acres
30.86%
6.14%
0.05 acres
4.07 acres
0.71%
58.14%
Totals 7.00 acres 100 %
Common Area 0.29 acres 4.14 %
WETLAND BOUNDARY
STORMWATER
DRAINAGE EASEMENT
(PER DOC. # )
67
0'50'100'150'
CONDITIONS OF APPROVAL
BEING LOT 4 OF MINOR SUBDIVISION 400 LOCATED IN NE 1
4 OF SECTION 3, TOWNSHIP 2 SOUTH, RANGE 5 EAST, P.M.M., CITY OF BOZEMAN,
GALLATIN COUNTY, MONTANA
SCALE BARMAJOR SUBDIVISION
CITY OF BOZEMAN,
GALLATIN COUNTY,
MONTANA
BASIS OF BEARING
2 3 0 4 N. 7th A V E S T E L , B O Z E M A N , M T 5 9 7 1 5
P H O N E : ( 4 0 6) 5 8 7 - 2 7 8 1 F A X : ( 4 0 6 ) 5 2 2 - 9 2 2 5
w w w . h y a l i t e e n g . c o m
1/4 SEC T R
3 2S 5E
DRAWN
BV
DATE
09/24/2021
PRELIMINARY PLAT
SCALE
1"=50'
SHEET
3 OF 3
PROJECT NUMBER
193211
Geodetic North @
GPS Position
LAT. 45°41'58.18" NORTH
LONG. 111°05'19.96" WEST
PARK VIEW CROSSING MAJOR SUBDIVISION
CONDITIONS OF APPROVAL:
1. Private utilities shall be located in alleys where applicable.
2. All lots are subject to a 10'-wide public utility easement along front lot lines.
3. Lots 3D, 4A, 7D, and 8A shall each have a ten-foot side setback along the side abutting open space Lots OS-1 or OS-2.
4. If a utility easement is greater than the building setback required by Chapter 38, B.M.C, said easement shall apply.
5. Due to the potential of high groundwater tables in the areas of the subdivision, it is not recommended that residential dwellings or other structures with full or partial
basements be constructed without first consulting a professional engineer licensed in the State of Montana and qualified in the certification of residential and
commercial construction.
6. All portions of the subdivision are zoned R-3. Land uses and development standards shall comply with the requirements of the City's zoning regulations (City of
Bozeman Municipal Code).
7. Generally, homes on corner lots shall have the same orientation as homes on lots on the interior of the block.
8. City standard sidewalks shall be constructed on all public street frontages prior to occupancy of any structure on individual lots. Upon the third anniversary of the plat
recordation of the subdivision, any lot owner who has not constructed the required sidewalk shall, without further notice, construct within 30 days, the sidewalk for their
lot(s), regardless of whether other improvements have been made upon the lot.
9. Ownership of Common Open Space areas and trails contained within, and responsibility of maintenance thereof and for city assessments levied on the common
open space lands shall be that of the property owner's association. Maintenance responsibility shall include, in addition to the common open space and trails, all
vegetative ground cover, boulevard trees and irrigation systems in the public right-of-way boulevard strips along the external perimeter development streets and as
adjacent to public parks or other common open space areas. All areas within the subdivision that are designated herein as common open space including trails are for
the use and enjoyment by residents of the development and the general public. the property owner's association shall be responsible for levying annual assessments
to provide for maintenance, repair, and upkeep of all common open space areas and trails. At the same time of recording the final plat of the subdivision, the
subdivider shall transfer ownership of all common open space areas within each phase to the property owner's association created by the subdivider to maintain all
common open space areas within Parkview Crossing Major Subdivision.
OWNER'S CERTIFICATION
I, the undersigned property owner, do hereby certify that the text and/or graphics shown on the Conditions of Approval sheet(s) represent(s) requirements by the governing body for
final plat approval and that all conditions of subdivision application have been satisfied.
I, the undersigned property owner, do hereby certify that the information shown is current as of the date of this certification, and that changes to any land-use restrictions or
encumbrances may be made by amendments to covenants, zoning regulations, easements, or other documents as allowed by law or by local regulations.
I, the undersigned property owner, do hereby certify that I acknowledge that federal, state and local plans, policies, regulations, and/or conditions of subdivision approval may limit
the use of the property, including the location, size, and use as shown on the Conditions of Approval sheet or as otherwise stated. Buyers of property should ensure that they have
obtained and reviewed all sheets of the plat and all documents recorded and filed in conjunction with the plat. Buyers of property are strongly encouraged to contact the local
planning department and become informed of any limitations on the use of the property prior to closing.
Dated this day of , 2021
Its:
Campeche Shores Development LLC
State of )
) ss
County of )
On this day of , 2021, before me, a notary public in and for
said county and state, personally appeared , know to me to be the of Campeche Shores Development LLC
known to me to be the corporation whose name is subscribed to the within instrument.
Signature of notarial officer
Name - typed, stamped, or printed
Title (and Rank)
Residing at
My commission expires:
CERTIFICATE OF TRANSFER OF OWNERSHIP & COMPLETION OF NON-PUBLIC IMPROVEMENTS
The following are hereby granted and donated to the property owner's association noted below for their use and enjoyment: Open Space parcel with trails contained within. Unless
specifically listed in the Certificate of Dedication, the city accepts no responsibility for maintaining the same. Campeche Shores Development LLC, hereby certify that the following
non-public improvements, required to meet the requirements of Chapter 38 of the Bozeman Municipal Code, or as a condition(s) of approved plans and specification prepared in
accordance with the standards of Chapter 38 or other City design standards, or have been financially guaranteed and are covered by the subdivision improvements agreement
accompanying and recorded with this plat.
Installed Improvements:
Financially Guaranteed Improvements:
Dated this day of , 2021
Its:
Campeche Shores Development LLC
The subdivider hereby grants ownership of all non-public infrastructure improvements to the property owners association created by Document #__________________
68
City Commission Staff Report for
Park View Crossing Major Subdivision Preliminary Plat; 21158 Page 1 of 38
City Commission Staff Report for the Park View Crossing Major Subdivision;
Application No. 21158
Public Hearing Date: Community Development Board met on December 20, 2021 at 6:00
via WebEx. The Community Development Board proceedings may be viewed under the date
December 20, 2021 via the following link: https://www.bozeman.net/services/city-tv-and-
streaming-audio
City Commission meeting will be January 25, 2022 at 6:00 pm via WebEx. A WebEx link will
be provided with the City Commission agenda.
Project Description: This is a Preliminary Plat of a major subdivision to create a 44-lot
residential subdivision consisting of nine fourplex townhouse lots, two triplex townhouse
lots, and one duplex townhouse lot, as well as two open space (mid-block crossing) lots,
roads, and one common area stormwater pond lot for this 7 acre subdivision zoned R-3,
Medium-density Residential. Off-site improvements by the Applicant include a shared-use
pathway along the west side of Vaquero Parkway along the subdivision’s frontage as partial
fulfillment of his parkland contributions.
Project Legal Description: Lot 4 of Minor Subdivision 400 located in the NE ¼ of Section 3,
Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana.
Project Location: Vaquero Parkway north of W. Oak Street, west of Davis Lane, east of N.
Ferguson Avenue, and south of Baxter Lane.
Recommendation: The November 19, 2021 revised Park View Crossing Preliminary Plat
Major Subdivision application conforms to standards and is sufficient for approval with
conditions and code provisions.
Community Development Board Recommendation On December 20, 2021, this Board,
serving as the Planning Board, reviewed and considered the application materials, public
comment, and all the information presented and, by a vote of 6 to 1, recommended approval
of the Park View Crossing Preliminary Plat major subdivision with the conditions
recommended by staff and all applicable code provisions. This recommendation did not
include support of the Applicant’s requested subdivision variance to waive installation of a
sidewalk along the west side of Stokes Lane. The Applicant withdrew this variance request
on December 23, 2021 and it is not referenced herein.
69
City Commission Staff Report for
Park View Crossing Preliminary Plat Major Subdivision; 21158 Page 2 of 38
City Commission Recommended Motion: Having reviewed and considered the application
materials, public comment, and all the information presented, I hereby adopt the findings
presented in the staff report for application 21158 and move to recommend approval of the
Park View Crossing Preliminary Plat major subdivision with staff-recommended conditions
and subject to all applicable code provisions.
Report Date: December 28, 2021
Staff Contact: Susana Montana, Senior Planner
Karl Johnson, Project Engineer
Agenda Item Type: Action (Quasi-judicial)
EXECUTIVE SUMMARY
Unresolved Issues
Unresolved issues at this Preliminary Plat stage are related to parklands contributions and
stormwater/water quality management issues which must be resolved prior to submittal of
the final plat application. The final plat must satisfy all of the recommended preliminary plat
conditions of approval and all relevant Bozeman Municipal Code (BMC) code provisions
noted on pages 8 through 21 of this report.
Project Summary
This report is based on the September 24, 2021 revised plat maps, the November 19, 2021
revised application documents, the December 20, 2021 Community Development Board
recommendation, the Applicant’s December 23, 2021 withdrawal of a sidewalk variance
request, staff evaluation of the application’s code compliance, and public comment received
to date.
The property owner/Applicant submitted a major subdivision preliminary plat application
to create 44 townhouse lots within the R-3, Medium-density Residential zoning district. The
44-lot subdivision includes 9 fourplex townhome lots, 2 triplex townhouse lots, and 1 duplex
townhouse lot. In addition to any design guidelines incorporated into the subdivision
Covenants, Conditions and Restrictions (CC&R) document, the townhomes would be subject
to the design standards of BMC 38.360.220 for “Single, two, three and four-household
dwellings”.
The subdivision also contains 2 open space lots serving as a midblock crossing for this
subdivision which connects a shared-use trail along the Vaquero Parkway frontage to a stub-
end pedestrian path along the west side of a new Stokes Lane at the property boundary with
the Gallatin County Regional Park. There are internal roads, an alley right-of-way, and a
common area stormwater drainage lot. The subdivision Site is located directly west of
70
City Commission Staff Report for
Park View Crossing Preliminary Plat Major Subdivision; 21158 Page 3 of 38
Vaquero Parkway, north of W. Oak Street, west of Davis Lane, east of N. Ferguson Avenue,
and south of Baxter Lane. It is accessed from Vaquero Parkway.
The final decision for a Major Subdivision Preliminary Plat with less than 50 lots must be
made within 60 working days of the date it was deemed adequate. The Development Review
Committee (DRC) deemed the application adequate for continued review on November 19,
2021. Pursuant to the Bozeman Municipal Code (BMC) Section 38.240.130 the City
Commission shall approve, conditionally approve or deny the subdivision application by
January 19, 2022, unless there is a written extension from the developer, not to exceed one
year. On December 23, 2021, the Applicant requested in writing that the application be re-
scheduled to the January 25, 2021 City Commission hearing.
The Community Development Board reviewed this application on Monday, December 20,
2021 and voted 6 to 1 to recommend approval of this Preliminary Plat subdivision to the City
Commission with conditions and code provisions. Note that their Motion did not include
support for the Applicant’s sidewalk variance request which has since been withdrawn.
Public Comment. During the Community Development Board public hearing, a neighbor
of the proposed subdivision Site commented during the public comment period and shared
his concerns:
Concern that people visiting the Regional Park will double-park along Vaquero
Parkway;
Concern that the development would increase/exacerbate traffic congestion along
Vaquero Parkway; and
The Applicant’s reluctance to build a sidewalk on the west side of the internal road
due to the cost of the concrete would not result in savings to the new home
purchasers and not result in affordable homes.
After the Community Development Board meeting, another neighbor of the Site called the
Community Development office to express concern that the development of the Site would
remove habitat of a flock of partridges that have settled in the park and the Site. She also
posted her written comment to the City Clerk in which she asked if an environmental study
had been done for this development. Staff responded that the subdivision regulations
require the Applicant to report on wildlife per Section 76-3-608, MCA. The subdivision
Applicant did provide this information in the application and it is found on page 31 of this
report. Staff further checked with the Montana Natural Heritage Program to see if partridges
are listed as a “species of concern’ or a “potential species of concern” that may be threatened
or its habitat threatened and this species is not included in either list.
71
City Commission Staff Report for
Park View Crossing Preliminary Plat Major Subdivision; 21158 Page 4 of 38
Alternatives
1. Approve the application with the recommended conditions;
2. Approve the application with clarifications/corrections or minor modifications to the
staff-recommended conditions;
3. Deny the application based on the Commission’s findings of non-compliance with the
applicable criteria contained within the staff report; or
4. Open and continue the public hearing on the application to a later date, with specific
direction to staff or the Applicant to supply additional information or to address
specific items. This alternative is requested if the City Commission wishes to amend
or add conditions of approval.
TABLE OF CONTENTS
EXECUTIVE SUMMARY ....................................................................................................................................... 2
Unresolved Issues ................................................................................................................................... 2
Project Summary..................................................................................................................................... 2
Alternatives ............................................................................................................................................... 4
SECTION 1 - MAP SERIES ................................................................................................................................... 5
SECTION 2 – REQUESTED VARIANCE ........................................................................................................... 8
SECTION 3 - RECOMMENDED CONDITIONS OF APPROVAL ............................................................... 8
SECTION 4 - CODE REQUIREMENTS REQUIRING PLAT CORRECTIONS ...................................... 10
SECTION 5 - RECOMMENDATIONS AND FUTURE ACTIONS .......................................................... 218
SECTION 6 - STAFF ANALYSIS AND FINDINGS ...................................................................................... 21
Applicable Subdivision Review Criteria, Section 38.240.130.A.5.b and e. .................... 21
Primary Subdivision Review Criteria, Section 76-3-608 ...................................................... 25
Preliminary Plat Supplements ........................................................................................................ 29
APPENDIX A –PROJECT SITE ZONING AND GROWTH POLICY ........................................................ 33
APPENDIX B – NOTICING AND PUBLIC COMMENT ............................................................................. 36
APPENDIX C - OWNER INFORMATION ..................................................................................................... 38
ATTACHMENTS .................................................................................................................................................. 38
72
City Commission Staff Report for
Park View Crossing Preliminary Plat Major Subdivision; 21158 Page 5 of 38
SECTION 1 - MAP SERIES
Figure 1. Zoning classification: R-3, Medium-density Residential District
Site shown in white circle
Figure 2. Vicinity Map; subdivision Site noted in the white circle
County
Regional
Park
73
City Commission Staff Report for
Park View Crossing Major Subdivision Preliminary Plat; 21158 Page 6 of 38
Figure 3. Proposed Preliminary Plat (9/24/21 plat revision)
CA-1= stormwater pond
OS-1 & OS-2= mid=block crossing open
space lots connecting Vaquero Pkwy
shared-use trail westward to the
County Regional Park
Stokes lane
Extension of Tschache Lane
Stub-out path
connection to
regional park
boundary
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Figure 4: Graphic image of the proposed subdivision
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SECTION 2 – REQUESTED VARIANCE
The Applicant initially requested a subdivision variance to waive the installation of a
sidewalk along the west side of the new Stokes Lane. The Community Development Board
at their December 20, 2021 hearing on this application considered the Applicant’s variance
request and did not support it. As a result, the Applicant has formally withdrawn the
variance request.
This sidewalk is not shown on Sheet 2 of this Preliminary Plat and must be shown on a final
plat and on an Infrastructure Plan, per Condition of Approval No. 3 and Code Provision No.
1, should this Preliminary Plat be approved. Although not shown on plat Sheet 2, the
Applicant agrees to provide an irrigated boulevard green with street trees along the west
side of the Stokes Lane travelway. BMC 38.550.050.E requires street trees within the
boulevard at 50-feet intervals.
SECTION 3 – RECOMMENDED CONDITIONS OF APPROVAL
The following conditions of approval and code provisions are offered to satisfy City and
relevant State requirements as well as site-specific mitigation for potential adverse impacts
associated with development of the proposed subdivision. The conditions of approval are in
addition to the required code provisions identified in this report. The conditions are specific
to the preliminary plat application. Staff has considered the impacts as identified in the staff
analysis and application materials and the conditions of approval are deemed reasonably-
related and roughly-proportionate to the development of this subdivision.
1. BMC 38.400.110. Transportation Pathways. Concurrent with the Applicant’s
construction of the west side of Vaquero Parkway along the subdivision’s frontage, the
Applicant shall install a paved ten-foot wide “shared-use path” along the east side of the
subdivision within the Vaquero Parkway right-of-way (ROW). The shared-use path shall
meet City standards. The Applicant is advised that the City of Bozeman will accept
responsibility for the maintenance of this shared-use path within the Vaquero Parkway ROW
once the path has been installed, inspected and accepted by the City. Details of this shared-
use path shall be submitted with the final plat application.
2. BMC 38.420.020 and 080, Parkland Mitigation.
a. Park improvements or parkland improvements-in-lieu required by 38.420.020 and
080 and the PROST Plan must be approved by the Park and Recreation Department
(PARKS) prior to final plat approval or an improvements agreement for such shall be
executed. Applicants may not financially guarantee the requirements per
38.420.080.A.1 and 2.
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b. The shared-use path along the Vaquero Parkway west side ROW may extend further
north and south of the subdivision frontage as part of the Applicant’s parkland cash-
in-lieu and parkland improvements-in-lieu negotiated with PARKS, pursuant to BMC
38.420.020. Final details of the Applicant’s parkland cash-in-lieu and parkland
improvements-in-lieu commitments must be provided with the final plat application
submittal.
c. Documentation of compliance with the parkland dedication requirements of Section
38.420 must be provided with the final plat. A table showing the parkland
requirements for the subdivision and the method of meeting the parkland dedication
must be included on the final plat Conditions of Approval sheet. The table shall
explicitly state (1) the parkland requirements of the subdivision; (2) the methods for
satisfying this requirement ( e.g. cash-in-lieu (CIL) or improvements-in-lieu); (3) how
much parkland credit was allocated for each lot within each phase; (4) all areas within
the subdivision qualifying for exemption from parkland requirements (i.e.,
detention/retention areas, watercourse setbacks, wetlands, common open space,
parking facilities); and (5) the total area of each above category.
d. Where CIL has been accepted in-lieu of parkland, the amount of the cash donation
must be paid prior to final plat approval and must be stated on the final plat sheet.
3. 38.400.080.B. Sidewalks adjacent to public lands. The sidewalk along the west
side of Stokes Lane shall be built to City standards as part of the subdivision public
improvements. The applicable City standard sidewalk on the west side of Stokes Lane must
be shown on the plat sheets at final plat application submittal and must be shown on
infrastructure plans prior to infrastructure approval.
4. BMC 38.240.130.A.5.e. Compliance with survey requirements. The proposed
perimeter lines of the subdivision do not match the most recent plat for the subdivision
(Minor Subdivision No. 400, Lot 4). However, a recent Subdivision Exemption Application,
No. 20312, proposes a land swap to adjust these lot lines. That lot line adjustment consists
of relocating the common boundary between the two lots allowing the County to have more
area at the northern access point from Baxter Lane, and Lot 4 (this subdivision land area) to
have a more aligned tie-in/approach with the newly constructed intersection of Vaquero
Parkway & Tschache Lane. That revised plat, per Application 20312, must be recorded prior
to final plat approval. A digital copy of the recorded plat must accompany the final plat
submittal.
5. Public Infrastructure Payback Obligations. Prior to final plat approval,
the Applicant shall pay the appropriate “pay back” cost for the N. 19th and Baxter
Intersection Payback District traffic signal improvements. The subject property lies within
this District and the owner did not participate in the original cost of construction of
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improvements and, therefore, the current owner will be assessed a payback charge which
must be paid prior to final plat approval. The Applicant must contact the City Engineering
Department (kajohnson@bozeman.net) for a determination of the payback amount.
6. City of Bozeman Resolution 5076, Policy 1 - The Applicant must provide and file
with the County Clerk and Recorder's office executed Waivers of Right to Protest
Creation of Special Improvement Districts (SID’s) on City standard form for the
following:
a. Street improvements to N Ferguson Avenue between W Oak Street and Kimberwicke
Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm
drainage.
b. Street improvements to Davis Lane between Baxter Lane and Kimberwicke Street
including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage.
c. Intersection improvements at Vaquero Parkway and Baxter Lane including lighting,
signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage.
d. Intersection improvements at Caspian Avenue and Baxter Lane including lighting,
signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage.
e. Intersection improvements at Tschache Lane and Davis Lane including lighting,
signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage.
f. Intersection improvements at Flanders Mill Road and Baxter Lane including lighting,
signalization/channelization, paving, curb/gutter, sidewalk, and storm drainage.
The document filed must specify that in the event an SID is not utilized for the completion of
these improvements, the developer agrees to participate in an alternate financing method
for the completion of said improvements on a fair share, proportionate basis as determined
by square footage of property, taxable valuation of the property, traffic contribution from the
development, or a combination thereof. The Applicant must provide a copy of the recorded
SID waiver prior to final plat approval.
SECTION 4 - CODE REQUIREMENTS REQUIRING PLAT CORRECTIONS
The following are procedural requirements not yet demonstrated by the plat and must be
satisfied at the final plat application.
1. BMC 38.100.080.A. Compliance with regulations required. The Applicant is
advised that unmet code provisions, or code provisions that are not specifically listed as
conditions of approval, does not, in any way, create a waiver or other relaxation of the lawful
requirements of the Bozeman Municipal Code or State law.
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2. BMC 38.220.040.A.3. Easements. All easements, existing and proposed,
must be accurately described, dimensioned and shown on each subdivision block of the final
plat in their true and correct location on the final plat application. Public utilities must be
located within dedicated street right of ways. Utility easements must be provided and
granted with the final plat in accordance with public and private design standards.
3. BMC 38.220.070. Final Plat notations. Among others, the final plat must contain
the following notation on the Conditions of Approval sheet:
a. All public stormwater facilities not on property dedicated to the City of Bozeman shall
be located within public stormwater drainage easements that provide for storm
water facility maintenance responsibility by the Home Owners’ Association (HOA)
and which is so noted in the HOA Conditions, Covenants and Restrictions (CC&R)
document.
b. Due to known high groundwater conditions in the area, no basements will be
permitted with future development of the site. No crawl spaces will be permitted
with future development of the site unless a professional engineer registered in the
State of Montana certifies that the lowest point of any proposed structure is located
above the seasonal high groundwater level and provides supporting groundwater
data to the City Engineering Department prior to the release of any building permit
for the development. In addition, sump pumps are not allowed to be connected to the
sanitary sewer system or the drainage system unless capacity is designed into the
drainage system to accept the pumped water. Water from sump pumps may not be
discharged on streets, such as into the curb and gutters, where they may create a
safety hazard for pedestrians and vehicles.
c. In order to disclose to future purchasers their obligations regarding open space
established in the Municipal Code, the following language shall be included on the
Conditions of Approval Sheet of the final plat: “Ownership of Common Open
Space, trails and the common area stormwater management facility, and
responsibility for maintenance thereof and for maintenance of the alley or other
City assessments levied on these common lands shall be that of the Home Owners’
Association (HOA). Maintenance responsibility shall include, in addition to the
common open space, trails and the private alley, snow removal for those assets
and irrigation of all vegetative ground cover, boulevard trees and maintenance of
irrigation systems in the public right-of-way boulevard strips along all external
perimeter development streets and as adjacent to public parks or other common
open space areas. All areas within the subdivision that are designated herein as
common areas, exclusive of the Lot CA-1 stormwater drainage facility, are for the
use and enjoyment by residents of the development and the general public. The
common area Lot CA-1 shall be used by this subdivision for stormwater
management and shall be owned and maintained by the HOA. The HOA shall be
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responsible for levying annual assessments to provide for the maintenance,
repair, and upkeep of all common areas inclusive of open space lots, trails, Lot CA-
1 and the private alley. At the same time of recording the final plat of the
subdivision the subdivider shall transfer ownership of all common areas to the
HOA created by the subdivider to maintain all common areas within the Park
View Crossing Major Subdivision.”
d. Approval by any design review entity established in the HOA CC&Rs does not bind the
City of Bozeman to approve any construction plan.”
e. All open space, trails and public access areas shall be owned and maintained by the
Home Owners’ Association (HOA).
f. Lots 3D, 4A, 7D and 8A within Block 2 of the Park View Crossing Major Subdivision
are subject to a ten-foot building setback from the side property lines abutting the
Open Space Lots OS-1 and OS-2. It is the obligation of the lot owner to be fully
informed as to this additional standard before beginning any home or site design
process.
g. The alley shall be a public right-of-way that is maintained by the HOA.
h. “Ownership of Common Open Space, trails and the common area stormwater
management facility, and responsibility for maintenance thereof and for
maintenance of the alley or other City assessments levied on these common lands
shall be that of the HOA. Maintenance responsibility shall include snow removal
for those assets and irrigation of all vegetative ground cover, boulevard trees and
maintenance of irrigation systems in the public right-of-way boulevard strips
along all external perimeter development streets and adjacent to public parks or
other common open space areas. All areas within the subdivision that are
designated herein as common areas, exclusive of the Lot CA-1 stormwater
drainage facility, are for the use and enjoyment by residents of the development
and the general public. The common area Lot CA-1 shall be used by this
subdivision for stormwater management and shall be owned and maintained by
the HOA. The HOA shall be responsible for levying annual assessments to provide
for the maintenance, repair, and upkeep of all common areas inclusive of open
space lots, trails, Lot CA-1 and the private alley. At the same time of recording the
final plat of the subdivision, the subdivider shall transfer ownership of all
common areas to the HOA created by the subdivider to maintain all common
areas within the Park View Crossing Major Subdivision.”
i. No landscaping, such as trees or woody shrubs, beyond ground cover or fencing
shall be installed within a utility or access easement, per BMC 38.410.060.
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4. 38.220.050.8. Noxious Weed Control. Noxious weed management and
revegetation plan. Noxious weeds must be controlled in all developments as directed by the
County Weed Control District (District) in accordance with the Montana County Noxious
Weed Control Act (MCA 7-22-21). Prior to final plat approval, the developer must have any
noxious weeds identified and their location mapped by a person with experience in weed
management and knowledgeable in weed identification. A noxious weed management and
revegetation plan approved by the district for control of noxious weeds must be recorded
with the County Clerk and Recorder prior to final plat approval. This plan must ensure the
control of noxious weeds upon final plat approval and the revegetation of any land disturbed
during the construction of subdivision improvements. The subdivision’s HOA, via the CC&R
document, shall insure that the plan is implemented and enforced in perpetuity.
5. BMC 38.220.060.A.10.a. Water rights. Water rights, or cash-in-lieu thereof, as
calculated by the Director of Public Works, is due with the filing of each subdivision final plat.
Prior to final plat approval, the Applicant must satisfy Section 38.410.130 and provide
documentation of all water rights pertaining to the proposed subdivision; e.g. previous
estimates or actual payment-in-lieu of water rights, certified well logs, decrees or
adjudications, etc..
6. BMC 38.600.120. Floodplain disclosure. The current plans are unclear as to
whether the proposed stormwater facility will encroach into the mapped floodplain. If
encroachment is proposed, the Applicant shall provide an analysis of the impacts of the
provided fill with the formal infrastructure submittal. Per 38.600.120, the base flood
elevation may not be increased by more than 0.50 ft. Any fill encroachment must be designed
to prevent erosion from the 100-year event. This condition must be addressed in the final
plat application submittal and approved by the City Engineer prior to final plat approval.
7. BMC 38.220.070. Final Plat.
a. The Applicant shall submit with the application for final plat review and approval, a
written narrative stating how each of the conditions of preliminary plat approval and
noted code provisions herein have been satisfactorily addressed. This narrative shall
be in sufficient detail to direct the reviewer to the appropriate plat, plan, sheet, note,
covenant, etc. in the submittal.
b. The final plat must conform to all requirements of the Bozeman Municipal Code
(BMC) and the State of Montana Uniform Standards for Monumentation, Certificates
of Survey, and Final Subdivision Plats (ARM 24.183.1101, 24.183.1104 and
27.183.1107) and shall be accompanied by all required documents, including
certification from the City Engineer that record drawings for public improvements
were received, including a platting certificate, and all required and corrected
certificates.
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8. BMC 38.220.070.A.7. Final Plat documents. Simultaneously with filing of the final
plat, in conjunction with required or offered dedications, the subdivider (or owner of the
property being subdivided if the owner is not the subdivider) shall transfer ownership to the
Home Owners’ Association (HOA) of open space lots OS-1 and OS-2, the stormwater drainage
common area Lot CA-1, and the stub-out trail connecting the open space Lots OS-1 and OS-2
across Stokes Lane to the County Regional Park property line to the west. These assets shall
be conveyed to the HOA and all its right, title, and interest in any improvements made to such
open space, trail or drainage lot. For the transfer of real property, the subdivider or owner
of the property shall submit with the application for the final plat a warranty deed or other
instrument acceptable to the City Attorney transferring fee simple ownership to the HOA and
associated realty transfer certificate. The subdivider or owner of the property must record
the deed or instrument at the time of recording of the final plat. For personal property
installed upon open space owned by the HOA, the subdivider shall provide an instrument
acceptable to the City Attorney transferring all its rights, title and interest in such
improvements including all applicable warranties to such improvements.
9. BMC 38.220.070. Final Plat. The final plat application shall include three (3) signed
reproducible copies on a 3 mil or heavier stable base polyester film (or equivalent). The
Gallatin County Clerk & Recorder’s office has elected to continue the existing medium
requirements of two (2) Mylars with a 1½” binding margin on one side for both plats and
COS’s. The Clerk and Recorder will file the new Conditions of Approval sheet as the last same
sized Mylar sheet in the plat set.
10. BMC 38.220.300 & 310. The Home Owners’ Association (HOA) documents must
be finalized and recorded with the final plat. The HOA documents must include the
requirements of Section 38.220.300 and 320.
11. BMC 38.220.320. Covenants.
a. A Draft Conditions, Covenants & Restrictions (CC&Rs) document must be
submitted with initial final plat submittal to be reviewed and approved by the
City and, when approved, recorded with the County Clerk and Recorder.
b. In order to disclose to future purchasers their obligations regarding open
space established in the Municipal Code, the following language shall be included
in the CC&R document: “Ownership of Common Open Space, trails and the
common area stormwater management facility, and responsibility for
maintenance thereof and for maintenance of the alley or other City assessments
levied on these common lands shall be that of the Home Owners’ Association
(HOA). Maintenance responsibility shall include, in addition to the common open
space, trails and the private alley, snow removal for those assets and irrigation of
all vegetative ground cover, boulevard trees and maintenance of irrigation
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systems in the public right-of-way boulevard strips along all external perimeter
development streets and as adjacent to public parks or other common open space
areas. All areas within the subdivision that are designated herein as common
areas, exclusive of the Lot CA-1 stormwater drainage facility, are for the use and
enjoyment by residents of the development and the general public. The common
area Lot CA-1 shall be used by this subdivision for stormwater management and
shall be owned and maintained by the HOA. The HOA shall be responsible for
levying annual assessments to provide for the maintenance, repair, and upkeep
of all common areas inclusive of open space lots, trails, Lot CA-1 and the private
alley. At the same time of recording the final plat of the subdivision the subdivider
shall transfer ownership of all common areas to the HOA created by the
subdivider to maintain all common areas within the Park View Crossing Major
Subdivision.”
12. BMC 38.220.320. Covenants. A notice prepared by the City shall be recorded
concurrently with the final plat so that it will appear on title reports. This note shall read
substantially as follows: “Lots 3D, 4A, 7D and 8A within Block 2 of the Park View Crossing
Major Subdivision are subject to a ten-foot building setback from the side property lines
abutting the Open Space Lots OS-1 and OS-2. It is the obligation of the lot owner to be fully
informed as to this additional standard before beginning any home or site design process.
Approval by any design review entity established in the HOA CC&Rs does not bind the City
of Bozeman to approve any construction plan.”
13. BMC 38.220.320. Covenants. Conditions, Covenants, Restrictions (CC&Rs), and articles
of incorporation for the creation of a home owners’ association and the CC&R document
shall be submitted with the final plat application for review and approval by the Department
of Community Development and shall contain, but not be limited to the following items: (1)
the orientation and setbacks for corner lots, (2) all additional setbacks required when lots
are adjacent to pathway corridors, such as Lots OS-1 and OS-2, (3) provisions for fences, (4)
provisions for snow removal, maintenance and upkeep of the alley ROW, all common areas,
public trails and storm water runoff facilities, (5) guidelines that outline architectural and
landscape requirements for each individual lot and/or phase of the subdivision related to
placement of landscaping and boulevard trees within the ROW at a regular spacing for each
residential lot, (6) provisions that outline the renewal of an annual contract with a certified
landscape nursery person for the upkeep and maintenance of all common open space, trails,
etc., (7) landscape details for detention ponds, outlet structures, boulevard trees, parkland,
irrigation, etc., (8) mitigation of groundwater with established floor elevations, (9) noxious
weed control, and (10) assessment of existing and future Special Improvement Districts, if
applicable. These documents shall be submitted to the City Attorney and shall not be
accepted by the City until approved as to legal form and effect. A draft of these documents
must be submitted for review and approval by the Community Development Department at
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least 30 working days prior to submitting a final plat application. These documents shall be
executed and submitted with the final plat to be recorded with the Gallatin County Clerk and
Recorder at the time of final plat recordation.
14. BMC 38.240.150.A.3. Review of Covenants. Deeds and Realty transfer certificates
must be provided for transfer of any platted public travelway or tract to the City or other
entity in association with filing of the final plat. It is noted that the alley that bisects the
subdivision shall be a public right-of-way (ROW) that would be maintained by the HOA.
15. BMC 38.240.150.A.3.d. Transfer of ownership of public land, off-site land,
private land, personal property, improvements and water rights; documents
required.
a. For the transfer of real property in satisfaction of required or offered dedications
to the City, and required or offered donations or grants to the home owners'
association (HOA), the subdivider or owner of the property must submit with the
application for final plat a warranty deed or other instrument acceptable to the
City Attorney transferring fee simple ownership to the City or the HOA.
b. For the transfer of personal property installed upon City-owned rights-of-way
(ROW) or HOA-owned parkland improvements or open space, the subdivider
must provide the City with an instrument acceptable to the City Attorney
transferring all its rights, title and interest in such improvements, including all
applicable warranties to such improvements, to the City or the HOA.
c. The subdivider or owner of the property must record the deed or instrument
transferring ownership or interests at the time of recording of the final plat with
the original of such deed or instrument returned to the City or HOA as applicable.
d. For the transfer of ownership interest in water, the subdivider or owner of the
property must submit with the application for final plat a deed or other
instrument acceptable to the City Attorney transferring ownership to the City or
HOA, along with all required State Department of Natural Resources and
Conservation documentation, certification and authorization.
16. BMC 38.240.410. Dedication of Lands to the City of Bozeman. Stokes Lane and the
extension of Tschache Lane within the subdivision shall be dedicated to the City of Bozeman.
The north-south alleyway between Vaquero Parkway and Stokes Lane shall be a privately-
maintained alley located within a public right-of-way (ROW) dedicated to the City. Prior to
final plat approval, the certificate of dedication on the final plat shall include the specific
names of the streets dedicated to the public for which the City accepts responsibility and
shall reflect all such dedications and applicable private maintenance agreements.
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17. BMC 38.240.420. Mortgagee. If there are liens or mortgages against the
property, the appropriate Mortgagee certificate must be included.
18. BMC 38.240.430 and BMC 38.420.030.D. Cash donation in-lieu of parkland.
Where a cash donation or combination of cash and improvement donation has been
accepted in-lieu of on-site parkland by the City, the amount of the cash donation must be
stated on the final plat.
Where there will be a cash donation in-lieu of parkland dedication, plats of subdivision must
show the following certificate:
“Certificate accepting cash donation in-lieu of land dedication
Finding dedication of parkland within the platted area of the Park View Crossing
Subdivision would be undesirable for park and playground purposes, it is hereby ordered
by the City Commission of the City of Bozeman, that land dedication for park purposes be
waived and that cash-in-lieu, in the amount of _______________ dollars, and improvements-
in-lieu with an estimated value of $___________ , be accepted in accordance with the
provisions of the Montana, Subdivision and Platting Act (MCA 76-3-101 through 76-3-
625) and the Bozeman Municipal Code.
DATED this _______ day of _______, 20____.
_______________________
Signature
City of Bozeman Director of Parks and Recreation”
19. BMC 38.240.450 Improvements. This code requires a certificate of completion of
improvements. The certificate must specifically list all installed improvements and
financially guaranteed improvements.
20. BMC 38.240.450 and 38.240.520. Certificate of Completion of Improvements.
The Applicant is advised where non-public and/or public improvements are to be
installed prior to final plat approval, the final plat of the subdivision must contain
a Certificate of Completion for these improvements. Prior to final plat approval, Sheet
One certificates must list all completed and accepted improvements, as applicable.
21. BMC 38.240.510. Conditions of approval notifications and certifications. Separate
the Conditions of Approval Notifications and Certifications Certificate from the non-public
improvements certificate and match the language in this section of the BMC.
22. BMC 38.240.520 Certificate of completion of non-public Improvements. This code
requires a certificate of completion of non-public improvements. Certificate must specifically
list all installed improvements and financially guaranteed improvements.
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23. BMC 38.240.530. Completion of water-related improvements. When
irrigation of public facilities are to be installed prior to final plat approval, the final plat of
subdivision must contain a certificate of completion of water-related improvements. The
certificate must list all completed and accepted improvements, including but not limited to
all irrigation system record drawings. This certificate must be provided on the final plat.
24. BMC 38.270.030. Completion of improvements. If it is the developer’s intent to file
the plat prior to the completion of all required improvements, an Improvements Agreement
shall be entered into with the City of Bozeman guaranteeing the completion of all
improvements in accordance with the preliminary plat submittal information and conditions
of approval. If the final plat is filed prior to the installation of all improvements, the developer
shall supply the City of Bozeman with an acceptable method of security equal to 150 percent
of the cost of the remaining improvements.
25. BMC 38.270.030. Completion of improvements. The Applicant must submit plans and
specifications for water and sewer main extensions, streets, and storm water improvements,
prepared and signed by a professional engineer (PE) registered in the State of Montana,
which must be provided to and approved by the City Engineer. Water and sewer plans must
also be approved by the Montana Department of Environmental Quality. The Applicant must
also provide professional engineering services for construction inspection, post-
construction certification, and preparation of Mylar record drawings. Construction shall not
be initiated on the public infrastructure improvements until the plans and specifications
have been approved and a preconstruction conference has been conducted. Building permits
will not be issued prior to City acceptance of the site infrastructure improvements unless all
provisions set forth in Section 38.270.030.C of the Bozeman Municipal Code are met to allow
for concurrent construction.
26. BMC 38.270.030.B.3. Completion of Improvements, Lighting. Subdivision lighting
must be installed or financially guaranteed prior to final plat approval. If a Subdivision
Lighting Improvement District (SLID) is utilized for the lighting the Subdivision, the SLID
information shall be submitted to the Clerk of Commission after Preliminary Plat approval
in hard copy and digital form. The final plat application will not be deemed complete until
the resolution to create the SLID has been approved by the City Commission.
27. BMC 38.270.090 Waiver of Park Maintenance District. Executed waivers of right to
protest the creation of special improvement districts (SIDs) for a park maintenance district
will be required to be filed and of record with the Gallatin County Clerk and Recorder,
unless already filed with annexation or prior development.
28. BMC 38.400.110.B.1, Transportation pathways. Developers must install
transportation pathways, to provide adequate multimodal transportation facilities within
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the development as part of the required development improvements. Transportation
pathways must meet Americans with Disabilities Act (ADA) accessibility standards and
include the following types of facilities:
a. Sidewalks (also see 38.400.080.B and 38.510 for sidewalk standards,
depending on the applicable block frontage designation);
b. On-street bike lanes and bike routes;
c. Boulevard trails; and
d. Class I trails.
29. BMC 38.410.040. Blocks.
a. This subdivision includes a mid-block pedestrian crossing in-lieu of a street in order
to meet the Block length and width standards of 38.410.040.B and C. This mid-block crossing
is represented by the open space Lots OS-1 and OS-2. These lots must be delineated at their
corner pins in accordance with 38.410.040 to distinguish them from the abutting private
lots.
b. With the final plat submittal, the Applicant shall provide design sections for the mid-
block pedestrian crossing Lots OS-1 and OS-2 as well as for the stub-out trail along that
alignment on the west side of Stokes Lane. These lots require 1 tree for every 50 feet per
38.550.050.D.
30. BMC 38.410.060.A. Easements. The final plat must provide all necessary utility
and public access easements and they must be described, dimensioned and shown on each
subdivision block of the final plat in their true and correct location. All written easements
indicated below must be provided on City standard easements templates. Drafts must be
prepared for review and approval by the City with the final plat submittal. Signed hard copies
of the easements must be submitted to the City Engineering Department. Recorded easement
numbers must be provided on the final plat prior to final plat approval. The Applicant may
contact the review engineer to receive the standard templates.
a. The Applicant must provide a ten foot wide utility easement (power, gas, communication,
etc.) along the development’s property frontage in accordance with the Bozeman
Municipal Code (BMC). The required 10-foot front yard utility easement required along
the lots on Vaquero Parkway, Stokes Lane and Tschache Lane must be recorded prior to
final plat approval.
b. The Applicant must provide a stormwater drainage easement over the proposed storm
water facility on Lot CA-1;
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c. Prior to final plat approval, the Applicant shall record an irrevocable public access
easement on the two open space Lots OS-1 and OS-2A as well as the short stub-out
connection of this trail to the County Regional Park located on the west side of Stokes
Lane; and
d. The Applicant is advised that all dedicated public easements must be recorded the City’s
standard template easement documents separate from the plat and the recorded
document number must be listed on the final plat. Easements will be deemed inadequate
if they are not in a final draft format (signatures are not required for the draft review).
Easements must be stamped by a licensed professional surveyor. In preparing signature
blocks on any upcoming documents, please use the following names: Jeff Mihelich, City
Manager; Mike Maas, City Clerk; Cynthia L. Andrus, Mayor. If a new member is
established, the easement documents must be updated.
31. BMC 38.410.120. Mail delivery. If mail delivery will not be to each individual lot
within the development, the developer shall provide an off-street area for a vehicle to pull
out of the vehicle or pedestrian travelway to access cluster mailboxes, in cooperation with
the USPS. It shall not be the responsibility of the City to maintain or plow any mail delivery
area constructed within a City right-of-way (ROW). If cluster boxes are used a dedicated area
for a vehicle to pull up and access the boxes outside of the ROW must be shown and labeled
on the final plat map.
32. BMC 38.410.130. Water rights. Compliance with BMC 38.410.130, Water Rights, shall
be met prior to final plat approval. The Applicant shall provide documentation of all water
rights appurtenant to the proposed subdivision; e.g. previous estimates or actual payment -
in-lieu of water rights, certified well logs, decrees or adjudications, etc. The Applicant must
contact Griffin Nielsen with the City of Bozeman Engineering Department for any cash-in-
lieu of water rights determination.
33. BMC 38.410.080.H, Landscape amenities. Stormwater retention/detention facilities
in landscaped areas shall be designed as landscape amenities. They shall be an organic
feature with a natural, curvilinear shape. The facilities shall have 75 percent of surface area
covered with live vegetation appropriate for the depth and design of the retention/detention
facility, and be lined with native grasses, indigenous plants, wet root tolerant plant types and
groupings of boulders to create a functional yet, natural site feature.
34. BMC 38.550.070. Landscaping of public lands. In accordance with the
requirements of this section, installation by the developer of vegetative ground cover,
boulevard trees, and irrigation system in the public right-of-way boulevard strips on
perimeter streets and in and adjacent to City park lots and any open space lots is required
prior to final plat approval or must be financially guaranteed.
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35. BMC 38.570.030. Street Lights. The Applicant shall construct street lights per
the DSSP and setup a special improvement lighting district (SILD) for maintenance of the
lights with the City Finance Department prior to final plat approval.
SECTION 5 - RECOMMENDATIONS AND FUTURE ACTIONS
On November 19, 2021, the Development Review Committee (DRC) determined that the
application is adequate for continued review and found that application conforms to
standards and is sufficient for approval with conditions and code provisions based on the
staff analysis and findings described below in Section 6 of this report.
On December 20, 2021, the Community Development Board, acting as the Planning Board
pursuant to 38.240.130.A.3, held a public hearing on the proposed application. The hearing
was held via WebEx and a WebEx link to that recorded meeting is shown below. The Board
recommended approval of the Preliminary Plat subdivision subject to the staff-
recommended conditions of approval and all applicable code provisions. This
recommendation did not include support for the Applicant’s subdivision variance request.
Subsequent to the December 20, 2021 Community Development Board meeting, the
Applicant, on December 23, 2021, withdrew his variance request.
The public hearing date for the City Commission’s consideration of this application was
originally scheduled for January 11, 2022 at 6:00 PM. The Applicant has requested in writing
that the hearing be rescheduled for the January 25, 2022 Commission meeting. That hearing
will be held via WebEx with a WebEx link provided with the City Commission Agenda.
SECTION 6 - STAFF ANALYSIS AND FINDINGS
Analysis and resulting recommendations are based on the entirety of the application
materials, State and Municipal codes, standards, and plans, public comment, and all other
materials available during the review period. Collectively, this information is the record of
the review. The following analysis is a summary of the completed review.
Applicable Subdivision Review Criteria for City Advisory Board and City Commission
Action, BMC Sections 38.240.130.A.5.b. and e.
In considering applications for subdivision approval under this title, the advisory boards and
City Commission shall consider the following criteria and findings of fact:
1. Compliance with the survey requirements of Part 4 of the Montana Subdivision and
Platting Act.
a. The Preliminary Plat has been prepared in accordance with the survey requirements
of the Montana Subdivision and Platting Act by a Professional Engineer registered in the
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State of Montana. As outlined in Code Provision No. 1, the final plat must comply with State
statute, Administrative Rules of Montana, and the Bozeman Municipal Code (BMC). A
Conditions of Approval sheet must be included with the final plat and updated with any
additional required notations as required by these Preliminary Plat conditions or code
provisions.
b. A Subdivision Exemption lot line adjustment with the County Regional Park lands has
been approved per Project No. 20312 but has not been recorded. This lot line adjustment is
a result of a “land swap” with Gallatin County to adjust access to the northern portions of the
park and the stormwater pond common area lot (CA-1) of this subdivision. Per Condition of
Approval No.4, the approved Subdivision Exemption lot line adjustment plat map must be
recorded with the Gallatin County Clerk and Recorder prior to approval of the final plat for
this subdivision.
2. Compliance with the local subdivision regulations provided for in Part 5 of the
Montana Subdivision and Platting Act.
The final plat must comply with the standards identified and referenced in the BMC. The
Applicant is advised that unmet code provisions, or code provisions that are not specifically
listed as a condition of approval, does not, in any way, create a waiver or other relaxation of
the lawful requirements of the Bozeman Municipal Code or State law. Sections 3 and 4 of
this report identify conditions and code corrections necessary to meet all regulatory
standards. Staff recommends Conditions of Approval No. 1 through 6 and Code
requirements 1 through 35 to address necessary documentation and compliance with
adopted standards. Therefore, upon satisfaction of all recommended conditions and
applicable code corrections, the subdivision would comply with local subdivision
regulations.
3. Compliance with the local subdivision review procedures provided for in Part 6 of
the Montana Subdivision and Platting Act.
The application was initially received on May 19, 2021 and was deemed inadequate for
further review. Revised application materials were received on June 30, August 25, and
November 19, 2021. The City deemed the application adequate for review on November 19,
2021. A public hearing was held by the Community Development Board on December 20,
2021 and the City Commission hearing is scheduled for January 25, 2022.
The hearings before the Community Development Board and City Commission have been
properly noticed as required by the BMC. Based on the recommendation of the Development
Review Committee (DRC) and other applicable review agencies, as well as any public
testimony received on the matter, the Community Development Board, acting as the
Planning Board per 38.240.130.A.3.b, must forward a written recommendation to the City
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Commission who will make the final decision on the Applicant’s request, per
38.240.130.A.5.c. This staff report presents the Community Development Board’s written
recommendation to the City Commission.
The final decision for a Major Subdivision Preliminary Plat with less than 50 lots must be
made within 60 working days of the date it was deemed adequate (November 19, 2021).
Pursuant to BMC 38.240.130.A.5.a.4, the City Commission shall approve, conditionally
approve or deny the subdivision application by January 19, 2021 unless there is a written
extension from the developer, not to exceed one year. The Applicant requested a
continuance of the City Commission’s consideration of this application to the January 25,
2021 meeting due to a previously unforeseen conflict with the Commission’s scheduling of
cases on that date.
Public notice for this application was given as described in Appendix B beginning on
December 3, 2021 and ending on December 16, 2021. As of the date of this report, there
were two public comments received; both after this public notice period. They are:
1. During the public comment period of the December 20, 2021 Community
Development Board meeting, a neighbor called in to express concern with (1) potential
double-parking by park visitors along Vaquero Parkway; (2) concern with increased traffic
congestion on Vaquero Parkway due to the proposed development; and (3) objection to the
sidewalk variance request due to lack of “undue hardship” to the Applicant who wants to
avoid the cost of installing the concrete sidewalk.
The Community Development Board proceedings may be viewed here under the date
December 20, 2021: https://www.bozeman.net/services/city-tv-and-streaming-audio
2. On December 22, 2021, another neighbor of the Site called our office to express
concern that the increased number of residents of the subdivision would negatively affect a
flock of partridge birds whose habitat includes the Site and the neighboring park. She asked
if an environmental impact study had been conducted to identify the impact to these birds
and their habitat. She stated that neighbors of the area delight in seeing the flock of
partridges wander about the area. Staff explained that Montana subdivision law requires
Applicants to provide information about wildlife and habitat that may be affected by the
subdivision and this information was provided and can be found in the Community
Development Board staff report which was sent to her. In response, staff researched the
Montana Natural Heritage Species of Concern and Potential Species of Concern lists and the
partridge species of birds is not listed therein [Please see subsection 5 on page 31 of this
report].
On December 27, 2021, this major subdivision staff report was completed and forwarded
with a recommendation for consideration by the City Commission. Based on the
recommendation of the DRC and other applicable review agencies, as well as any public
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testimony received on the matter, the Community Development Board forwards their
written recommendation via this staff report to the City Commission, who will make the final
decision on the Applicant’s requests.
4. Compliance with Chapter 38 of the Bozeman Municipal Code (BMC) and other
relevant regulations.
a. The final plat must comply with the standards identified and referenced in the BMC.
The Applicant is advised in Code Provision No. 1 that unmet code provisions, or code
provisions that are not specifically listed as a condition of approval, does not, in any way,
create a waiver or other relaxation of the lawful requirements of the Bozeman Municipal
Code or State law.
b. Sections 3 and 4 of this report identify staff-recommended conditions of approval and
applicable code corrections necessary to meet all regulatory standards. It is expected that
upon satisfaction of all 6 conditions of approval and 35 code provisions, the subdivision
would comply with local subdivision regulations, meeting this criterion.
5. The provision of easements to and within the subdivision for the location and
installation of any necessary utilities.
Code Provision Numbers 2 and 30 require that all easements, existing and proposed, must
be accurately depicted and addressed on the final plat and in the final plat application. Public
utilities must be located within dedicated street right of ways. Utility easements need to be
provided and granted with the final plat in accordance with public and private design
standards.
6. The provision of legal and physical access to each parcel within the subdivision and
the notation of that access on the applicable plat and any instrument transferring the
parcel.
Access to the property is from Vaquero Parkway which is a City-owned and maintained road.
Tschache Lane is being extended into the subdivision from Vaquero Parkway and would be
a City- owned and maintained road. The new loop road, Stokes Lane, would be dedicated to
the City for ownership and maintenance. An alley ROW would bisect the subdivision in a
north-south orientation and would be dedicated to the City although it is required to be
privately-maintained by the subdivision HOA per Code Provisions 3c, 3h, 11b and 16.
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Primary Subdivision Review Criteria, Section 76-3-608, MCA.
76.3.608(3)a. Effects on agriculture, agricultural water facilities, local services,
the natural environment, wildlife and wildlife habitat, and public health and safety,
38.240.130.A.5.e (1) e.
(1) The effect on agriculture. This item was waived by the Development Review
Committee (DRC) at the pre-application meeting. However, it is noted that this land has been
fallow for several years.
(2) The effect on agricultural water user facilities. A small section of the Spring Ditch
irrigation facility is located near the northern property boundary and encroaches into the
northern portion of the stormwater easement. The Spring Ditch agricultural water facility
would continue to flow and the existing irrigation easement located completely within the
County Regional Park would not be abandoned or altered with this subdivision.
(3) The effect on local services.
Water/Sewer – Water and sewer systems exist to serve the subdivision. The Applicant
proposes to extend water and sewer mains to the subdivision. Code Provision No. 25
requires the Applicant to submit plans for water and sewer main extensions, approved by
the Montana Department of Environmental Quality, to be reviewed by the City. Code
Provision No. 2 requires a City standard sewer easement where the sewer system is located.
Building permits would not be issued prior to City acceptance of site infrastructure
improvements, unless concurrent construction is requested and conditions allow.
Water rights exist for the subject property. The Applicant proposes to transfer to City
ownership existing water rights as outlined in Code Provision No. 5.
Streets – The 2020 Bozeman Community Plan/Growth Policy and subdivision standards
require adequate connectivity of a development to the street grid. Access to the Site would
be taken from Vaquero Parkway, a designated local street. A new Stokes Lane would provide
access from Vaquero Parkway along with a westward extension of Tschache Lane into the
subdivision. An internal north-south alley bisecting the subdivision would be a publicly-
accessible yet privately-maintained alley as outlined in Condition of Approval No. 3g.
BMC 38.400.080, Sidewalks adjacent to public lands. This requires a sidewalk along the
western side of the new Stokes Lane as it abuts a public park. Condition of Approval No. 3
requires the final plat to show a City-standard sidewalk meeting this code provision. This
BMC standard and Condition No. 1 would implement the City Community Plan/Growth
Policy N-1.8 which states: “Install, replace and maintain missing or damaged sidewalks, trails
and shared use paths.”
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Walkability, Transit and Bikeability. This subdivision provides a sidewalk along the
extension of Tschache Lane, along Stokes Lane, and provides a mid-block crossing pathway
within the open space Lots OS-1 and OS-2. Not shown on Sheet 2 of the Preliminary Plat, but
required by Condition of Approval No. 3, is a City-standard sidewalk along the west side of
Stokes Lane, as required by the following BMC standards.
Sec. 38.400.050. - Street and road right-of-way width and construction standards.
A. All streets and roads providing access to, and within, the proposed development must
meet the following standards:
1. Right-of-way width and construction standards contained in this chapter: the
most recently adopted long range transportation plan; the City of Bozeman Design
Standards and Specifications Policy; and the City of Bozeman Modifications to
Montana Public Works Standard Specifications.
Stokes Lane must meet the local street section and include sidewalk, boulevard, and street
trees on both sides of the street.
Sec. 38.400.080.B – Sidewalks adjacent to public lands. The developer must install
sidewalks adjacent to public lands, including, but not limited to, parks, open space, and the
intersection of alleys and streets or street easements. Applicable sidewalks and
development frontages adjacent to public lands are subject to the provisions of section
38.510.030.I. Therefore, a 6-foot wide sidewalk is required on the west side of Stokes Lane
per Condition of Approval No. 3.
The Community Plan/growth policy encourages development to be walkable, which is
defined in the Plan’s Appendix F Glossary as: Walkable. A walkable area has:
• A center, whether it’s a main street or a public space.
• People: Enough people for businesses to flourish and for public transit to run
frequently.
• Parks and public space: Functional and pleasant public places to gather and play.
• Pedestrian design: Buildings are close to the street, parking lots are relegated to the
back.
• Schools and workplaces: Close enough that walking to and from home to these
destinations is realistic.
• Complete streets: Streets designed for bicyclists, pedestrians, and transit.
With the complexity of features needed to create a walkable environment, no one Site is
likely to provide all the needed elements. The additional density of the proposed subdivision
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in this area is expected to help provide for element two above--to support public transit in
in the area.
Looking at the private, proprietary algorithm of WalkScore.com, the Site was given a Walk
Score of 21 out of 100 which denotes that the Site and area are car-dependent. It has a
Transit score of 19, which denotes minimal transit service, and a Bike Score of 41, which
denotes that the area is “somewhat bikeable” according to the WalkScore.com algorithms.
However, this algorithm walk, transit and bike score may not know the local assets in the
area and there is no contact information on the website for staff to inquire as to how recent
their data is for this area, or for the City.
There is a Streamline “Brown line” bus stop at Oak at the County Regional Park.
There are bicycle lanes surrounding the area on Davis Lane, Oak Street, Baxter Lane and
Ferguson Avenue. A north-south bike route is located one block east on Hunters Way.
The 2017 Bozeman Transportation Master Plan shows a recommended $250,000 bike path
improvement (SP-16) which would extend bike travel lanes or a shared use path along
Tschache Lane from Davis Lane west to N. 27th Avenue linking to other north-south facilities.
There would be a shared use path along Vaquero Parkway installed by the Applicant and
there are nearby shared use paths along Oak Street and Ferguson Avenue.
Average walk score for the City as a whole was given a 48 out of 100. Again, these values are
provided by Walk Score, a private organization which presents information on real estate
and transportation through walkscore.com. A score is not an indication of safety or
continuity of services or routes. Scores are influenced by proximity of housing, transit, trails,
commerce and services and expected ability, as determined by the algorithm, to meet basic
needs without using a car. There are no adopted BMC development standards relating to the
walk score.
A traffic impact summary was provided with the application and it found that the
infrastructure that exists and is proposed for the project would adequately service the
development and no upgrades were proposed for any nearby intersections.
Police/Fire – The area of the subdivision is within the service area of both these departments.
No concerns regarding service availability have been identified.
Stormwater - The subdivision must construct storm water management and water quality
facilities conforming to standards of the Bozeman Municipal Code. The maintenance of the
stormwater facilities are the responsibility of the Home Owners’ Association (HOA) as
outlined in Code Provisions Numbers 3a and 6. Inspection of installed facilities prior to final
plat will verify that standards have been met.
Parklands – The Applicant has asked to provide both cash-in-lieu and improvements-in-lieu
contributions in-lieu of providing parkland within the subdivision as required by BMC
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38.420. Per conversations with the City of Bozeman Parks and Recreation Department
(PARKS), a 10-foot wide paved shared-use pathway would be installed by the Applicant
within the Vaquero Parkway right of way (ROW), located immediately east of the platted
subdivision area, and would extend from the property’s northern boundary to the southern
boundary. As part of this Improvements-in-lieu agreement, the shared use path may be
further installed by the Applicant from Baxter Lane to Davis Lane. This has been discussed
by PARKS as the ideal location for a shared-use pathway providing connectivity and access
to the County Regional Park abutting the subdivision to the west through (1) the sidewalks
within the subdivision; (2) through the mid-block crossing Open Space Lots OS-1 and OS-2;
(3) to a stub-out concrete pad at the park’s eastern boundary on the same plane/alignment
as the OS lots.
This offer would be part of a combined cash- and improvements-in-lieu to satisfy their
parkland requirement for the 44 new dwelling units. As the coordination of parkland
contributions is ongoing with PARKS, the shared use path surfacing and exact locations and
extents of the path improvements have yet to be finalized and, per Condition of Approval No.
2, details of this path must be finalized and submitted for City review and approval with the
final plat application.
(4) The effect on the natural environment.
No significant negative impacts to the natural environment have been identified. The
stormwater pond of Lot CA-1 at the northern end of the subdivision would be designed to
ensure that stormwater would not adversely affect the Spring Ditch irrigation ditch and
associated flora and fauna thereon.
The Site is in a potential area of high groundwater which may negatively impact future
structures or cause illicit discharges into the sanitary sewer and over burden the surface
drainage system. Code Provision No. 3b prohibits crawl spaces or basement without first
consulting a professional engineer certified in the State of Montana who would certify that
groundwater would not harm these structures. This requirement will protect both future
structure owners from future hazards of flooding and lessen burdens on the public from
illicit discharges.
BMC 38.550.070, Landscaping of public lands. This requires use of wells or surface water
rights to irrigate right-of-way boulevard greens, parks and open spaces rather than
municipal water supply.
(5) The effect on wildlife and wildlife habitat.
No animals listed under the “Animal Species of Special Concern”, (Montana Natural Heritage
Program, Helena, 2003) have been observed or are known to occupy the property. Habitat
most suitable for wildlife includes the area around the Spring Ditch that will not be
developed.
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(6) The effect on public health and safety.
With the recommended conditions of approval and required plat corrections, the subdivision
is not expected to adversely impact public health and safety. The intent of the regulations in
Chapter 38 of the Bozeman Municipal Code (BMC) is to protect the public health, safety and
general welfare. The subdivision has been reviewed by the DRC which has determined that
it is in general compliance with the BMC standards with recommended conditions and code
provisions. Conditions deemed necessary to ensure compliance have been noted throughout
this staff report. Code provision No. 1 requires full compliance with all applicable State and
BMC code requirements.
All subdivisions must be reviewed against the criteria listed in 76-3-608.3.b-d, Montana Code
Annotated (MCA) and as a result, the Department of Community Development has reviewed
this application against the listed criteria and further provides the following summary from
Applicant submittal materials and code requirements. It is noted that all infrastructure
would meet City standards.
Subdivision Preliminary Plat Supplemental Information, BMC 38.220.060.
A subdivision pre-application plan review was completed by the Development Review
Committee (DRC) on June 9, 2021. The DRC found that more information was needed prior
to the application going forward to preliminary plat. Revisions were submitted on June 30,
2021, August 25, 2019 and November 19, 2021.
Staff offers the following summary comments on the supplemental information required
with BMC 38.220.060.
38.220.060. A.1. Surface Water. A small section of the Spring Ditch is located near the
northern property boundary and encroaches into the northern portion of the subdivision’s
stormwater easement. The original source of the Spring Ditch was believed to be from a
natural spring located south of what is now the County Regional Park. Currently the water is
collected underground (reportedly via a French drain system under Oak Street) and
discharged to a pipe located in the bottom of the man-made Spring Ditch channel. The
channel then flows north and crosses Baxter Lane. An existing irrigation easement (Doc.
#2081799) is also located within the Regional Park. The existing wetlands located along
Spring Ditch are shown on Sheets 1 and 2 of the Preliminary Plat as a wetlands boundary.
The Spring Ditch or any associated wetlands would not be altered in any way with the
construction of this development.
38.220.060. A.2 Floodplains. The portion of the Spring Ditch 100-year floodplain is
located within the Common Area Lot 1 (Lot CA-1) for the stormwater detention pond within
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this subdivision. Code Provision No. 6 would require the pond to be designed and built to
assure that it would not erode during a 100-year flood event.
38.220.060. A.3. Groundwater. Groundwater is known to be high in this area. The
Applicant provided GWIC monitoring wells to establish seasonal minimum and maximum
groundwater depths. Code Provision No. 3b prohibits lot owners from building basements
and crawl spaces due to high groundwater unless a certified engineer assures the City that
no damage to structures would occur.
38.220.060. A.4. Geology, Soils and Slopes. Geology and soils will likely be similar to
those encountered during the construction of Phases 4G & 4H of the Crossing 2 at Baxter
Meadows subdivision to the east of the Site. There are no known geologic hazards associated
with this property other than the regional designation of Seismic Zone 3. Conformance to
relevant building codes can mitigate this degree of potential hazard. No unusual construction
techniques are required due to geology, slopes, or soil types other than appropriate seismic
design standards common throughout the Gallatin Valley. Significant slopes are not
anticipated. The NRCS soils report was included with this preliminary plat submittal.
Wetlands near Spring Ditch have been delineated and its lines are shown on the Preliminary
Plat and would be shown on the final plat.
38.220.060. A.5. Vegetation. The property has been vacant for several years and has not
been used agriculturally in the recent past. The property is adjacent to the Gallatin County
Regional Park to the west, the Bozeman Fire Station No. 3 to the south, and residential
development on all other sides. No known critical plant communities have been located on
the property. After development, the majority of vegetation will be lawn, shrubs, and
boulevard trees typical of residential subdivisions. Per Code Provision No. 4, an approved
weed management plan must be provided with the final plat submittal and recorded prior
to approval of the final plat and the subdivision CC&R document must clarify that the HOA is
responsible for implementing and enforcing the weed management plan.
38.220.060. A.6. Wildlife. No animals listed under the “Animal Species of Special
Concern”, (Montana Natural Heritage Program, Helena, 2003) have been observed or are
known to occupy the property. Habitat most suitable for wildlife includes the area around
the Spring Ditch that will not be developed.
38.220.060. A.7. Historical Features. Damon Murdo, Cultural Records Manager of the
Montana Historical Society, has not noted any previously designated cultural properties in
the area. If any historic items are discovered during construction, the State Historic
Preservation Office will be contacted.
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38.220.060. A.8 Agriculture. Due to development in the area, no agricultural practices
have been performed on the property for several years.
38.220.060. A.9 Agricultural Water User Facilities. The Spring Ditch agricultural facility
will continue to flow and the existing irrigation easement located completely within the
County Regional Park would not be abandoned or altered with this project.
38.220.060. A.10 Water and Sewer. Per the Engineering Report for this subdivision,
water and wastewater improvements would be designed to meet City standards and, with
the recommended conditions of approval and code provisions, this subdivision would not
significantly burden City water or sanitary sewer infrastructure.
38.220.060. A.11 Stormwater Management. The subdivision would not significantly
impact stormwater infrastructure. The stormwater systems would be designed to meet City
standards and would be maintained by the Park View Crossing HOA [see Conditions of
Approval No. 8 and 7 (k)].
38.220.060. A.12 Streets, Roads and Alleys. The subdivision would not significantly
impact the City’s street infrastructure. A single “loop” road called Stokes Lane would serve
the subdivision accessed from Vaquero Parkway and an extension of Tschache Lane into the
subdivision from the intersection with Vaquero Parkway.
The new Stokes Lane loop road would have the following characteristics:
- 60-foot right-of-way
- 33 feet from back of curb to back of curb
- Standard City of Bozeman curb and applicable curb returns with the exception of a sidewalk
along the western side of Stokes Lane which would be substituted by an existing shared-use
path/trail within the County Regional Park along this same alignment.
A new privately maintained alley ROW bisects the subdivision in a north/south orientation
and would have the following characteristics:
- 30-foot public access easement
- 16-foot paved width
- Inverse crown (without curb and gutter).
This subdivision is not expected to adversely affect existing public land access. Access to the
public lands of the County Regional Park and Dinosaur Park currently exist on Oak Street
and at the Bozeman’s Firehouse No. 3. Furthermore, the Applicant would install a paved 10-
foot wide shared-use pathway on the western side of Vaquero Parkway to provide trail/park
connectivity for the community. This shared-use path would connect to and through the
subdivision via Open Space Lots 1 and 2 and a short stub pathway on the west side of Stokes
Lane to the 97-acre Gallatin County Regional Park property line.
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38.220.060. A.13 Utilities. This subdivision would not significantly impact utilities.
Standard 10-ft utility easements would be provided across all lots. All private utilities are
available in the area to serve this subdivision.
38.220.060. A.14 Educational Facilities. The Applicant indicates that the Bozeman
School District indicated its facilities and bus system would be able to handle the additional
students generated by this development.
38.220.060. A.15 Land Use. This subdivision is consistent with residential land uses
allowed by the underlying R-3, Medium-density Residential zoning; specifically, the
development of duplex, triplex and fourplex dwelling units are principal permitted uses
within the R-3 district. The R-3 district requires a minimum density of 5 dwelling units per
net acre. The net acreage of this 7 acre property excludes 2.93 acres of unbuildable lands of
streets, open space lots and the stormwater common area lot. This 4.07 net acre, 44-
residential lot subdivision would more than double the minimum required density of 20
dwelling units. The townhome lots are allowed at 3,000 square feet (sf) per dwelling unit
lot and the duplex lot is allowed at 2,500 sf per lot. The 4.07 net acre, 44 dwelling unit
subdivision provides 74 percent of the maximum density allowed in the R-3 zone for
townhome dwelling units. The maximum density for this 4.07 acre subdivision would be 59
townhomes or 71 duplex dwelling units, depending on what type of residential structure is
built.
The proposed residential use would not adversely affect adjacent land uses in the area.
Existing land uses bordering the east and north sides of the Park View Crossing property are
residential, predominantly single-household detached dwelling units with some apartment
buildings. The properties bordering the south and west are part of a Gallatin County Regional
Park and are in public use, including a Fire Department Station and trail heads for the park.
The subdivision must provide a sidewalk and two open space lots which link Vaquero
Parkway ROW to a new shared-use path/trail within the County Regional Park to the west.
Two Open Space Lots, OS-1 and OS-2, serve as mid-block crossings for pedestrian and
bicyclist and equate to 0.05 acres or 0.71% of the total area. One 0.29-acre lot serves as a
Common Area Lot 1 stormwater drainage pond representing 4.14% of the land area. The
streets equate to 2.59.64 acres or 37% of the total area. The residential lots total 4.07 net
acres and represent 58.14% of the 7-acre property.
Access to the abutting County Regional Park would be enhanced by the development via
sidewalks, the east-west mid-block open space lots extending pedestrian and bicycle access
from Vaquero Parkway to the park property line. Both open space lots within the
subdivision would be open to the public and easily accessible and would be landscaped and
provided with trees and a minimum 5-foot wide sidewalk.
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No hazards or nuisances are expected to be created by the development. Safety issues related
to construction activity would be effectively controlled by City standards for construction
management practices.
38.220.060.A.16. Parks and Recreation Facilities. The Applicant seeks to satisfy Parkland
requirements with a combination of cash-in-lieu and off-site trail corridor improvements.
The Applicant requests to provide cash-in-lieu of parkland because there is a publicly-
accessible 97-acre Gallatin County Regional Park abutting the subdivision to the west. The
Applicant would provide a shared-use path along the subdivision’s eastern frontage, within
the Vaquero Parkway ROW, as part of this parkland in-lieu requirement. The Applicant is
continuing negotiations with the Parks Department to satisfy the parkland requirement of
this subdivision. Per Condition of Approval No. 2, those agreements would be finalized prior
to submittal of a final plat application.
38.220.060. A.17. Neighborhood Center Plan. Neighborhood centers are required for
subdivisions of 10-acres or more per 38.410.020. This subdivision is 7-acres and, therefore,
exempt from this requirement. However, the County Regional Park abuts the subdivision
along its western frontage.
38.220.060. A.18. Lighting Plan. The preliminary street lighting plan is in accordance with
the requirements of the BMC. Four street light fixtures are proposed with this development,
each light spacing and design would meet City of Bozeman Design Standards and
Specifications Policy. Per Code Provision No. 32, the Applicant is required to request the
formation of a special improvement lighting district (SILD) for the district property owners,
typically the HOA, to pay the costs of operation and maintenance of street light fixtures
associated with this subdivision.
38.220.060. A.19 Miscellaneous. Not applicable.
38.220.060. A.20 Affordable Housing. Due to the passage of State law HB 259 by the
2021 State Legislature, the affordable housing provisions of the BMC do not apply to this
subdivision.
APPENDIX A –PROJECT SITE ZONING AND GROWTH POLICY
Project Site Zoning. The subject property is zoned R-3, Medium-density Residential
District. The property was annexed into the City in 2001 by Resolution No. 3487. Records
indicating when the property was given the R-3 zoning are unclear but by 2010, the Site was
zoned R-3.
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Figure 5: R-3 zoning for the subject property and PLI zoning for the County Park
The intent of the R-3 residential medium density district is to provide for the development
of one- to five-household residential structures near service facilities within the city. This
purpose is accomplished by:
1. Providing for minimum lot sizes in developed areas consistent with the established
development patterns while providing greater flexibility for clustering lots and mixing
housing types in newly developed areas.
2. Providing for a variety of housing types, including single household dwellings, two to
four household dwellings, and townhouses to serve the varied needs of households of
different size, age and character, while reducing the adverse effect of non-residential uses.
Use of this zone is appropriate for areas with good access to parks, community services
and/or transit.
Staff Findings: This subdivision is located next to a regional park. The Streamline Brown
Line bus route has a stop at the regional park along W. Oak Street. The Subdivision would
provide lots for duplex, triplex and fourplex townhome dwelling units offering a mix of lot
sizes.
Adopted Growth Policy Designation: The Future Land Use Map of the Bozeman Community
Plan designates the subject property to develop as “Parks and Open Space Lands” (green
color on map). This is deemed a “Scribner’s error” or a mistake on our 2020 Community Plan
land use map, as the property is zoned R-3, Medium-density Residential and is surrounded
by lands designated the “Urban Neighborhood” land use category. The zoning designation
of R-3 District for this property confers to the owner the right to develop the land according
to the uses and standards allowed by that R-3 District. The zoning surpasses the land use
designation. When the Community Plan Future Land Use Map (FLUM) is next updated, this
R-3
PLI
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error will be corrected to reflect the correct designation of “Urban Neighborhood” for this
Site.
Figure 6: 2020 Community Plan Future Land Use Map of Site
The Urban Neighborhood category (tan color on map) primarily includes “urban density
homes in a variety of types, shapes, sizes, and intensities. Large areas of any single type of
housing are discouraged. In limited instances, an area may develop at a lower gross density
due to site constraints and/or natural features such as floodplains or steep slopes.
Complementary uses such as parks, home-based occupations, fire stations, churches,
schools, and some neighborhood-serving commerce provide activity centers for community
gathering and services.” “Higher density residential areas are encouraged to be, but are not
required or restricted to, proximity to commercial mixed use areas to facilitate the provision
of services and employment opportunities without requiring the use of a car.”
Staff Findings: The proposed subdivision would provide a mix of lot sizes and a mix of
housing types which are consistent with the Urban Neighborhood land use category and the
Community Plan/growth policy goals and objectives. In particular, the mix of lot sizes and
housing types would provide the mix of housing in this generally single-household
neighborhood that addresses the objective that “Large areas of any single type of housing
are discouraged.”
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Applicant’s Narrative. The following is a description by the Applicant as to the
subdivision’s compliance with applicable Community Plan policies and objectives.
“The Park View Crossing Subdivision has been carefully designed in conformance with the
Bozeman Community Plan 2020. As a planned residential community, it is consistent with
the Plan Themes and community-derived desired outcomes; specifically:
“Theme 2: A City of Unique Neighborhoods”
Goal N-1: Support well-planned, walkable neighborhoods.
Park View Crossing will provide residents easy access to the neighboring park, while also
being centrally located within the city and having multi-modal access to public
transportation. A shared use pathway will be constructed along the west side of Vaquero
Parkway that will provide park connection from the northern property boundary to the
southern edge of the property. Sidewalks will also be provided throughout the
development.
Goal N-2: Pursue Simultaneous emergence of commercial nodes and residential
development through diverse mechanisms in appropriate locations.
The proposed subdivision will be the last of its kind in the vicinity, as it is surrounded by
existing residential development on three sides and the County Regional Park on its
fourth.
Goal N-3: Promote a diverse supply of quality housing units.
The townhomes constructed with the development will range from 4-plex to duplex units
with individual lot sizes ranging from 7,600 sq. ft. to 2,800 sq. ft. This will provide residents
with a variety of home choices while retaining the affordability of the individual units.
Goal N-4: Continue to encourage Bozeman’s sense of place.
The neighborhood will be sought after as it will provide more multifamily housing near
the widely known and frequented County Park while maintaining close access to schools,
off-leash facilities for dog walking, and public transportation into the city. The property is
well within the City of Bozeman Limits, and planned for extension of water and
wastewater infrastructure for conveyance to the City. All interior subdivision roads will
be paved and include concrete curb, gutter and sidewalks (per City of Bozeman Standard
Specifications). The interior alley will be paved with an inverted crown.”
Staff Findings: The proposed subdivision would provide a mix of housing types and
lot sizes that would facilitate a mix of housing sizes and prices which could accommodate
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middle-income households and could provide smaller dwellings for “starter families”
and/or “empty nest” households who could vacate older, larger homes elsewhere in the
city which, in turn, could accommodate larger families. This supports the following
Community Plan policies:
N-1.1: “Promote housing diversity, including missing middle housing.”
N-1.11: “Enable a gradual and predictable increase in density in developed areas over
time.”
N-3.7: “Support compact neighborhoods, small lot sizes, and small floor plans, especially
through mechanisms such as density bonuses.”
N-3.8: “Promote the development of “Missing Middle” housing (side by side or stacked
duplex, triplex, live-work, cottage housing, group living, rowhouses/townhouses, etc) as
one of the most critical components of affordable housing.”
APPENDIX B – NOTICING AND PUBLIC COMMENT
Notice was provided at least 15 and not more than 45 days prior to the Community
Development Board and City Commission public hearings. Pursuant to BMC 38.220.420,
notice was provided by posting the site, mailing by certified mail to the Applicant and
adjacent property owners and by first class mail to all other owners within 200 feet on
December 2, 2021. The site was posted with a notice on December 2, 2021 and a legal
advertisement was published in the Bozeman Daily Chronicle on December 3rd and 17th,
2021. Content of the notice contained all elements required by Article 38.220., BMC.
No written public comment has been received as of the writing of this staff report. A
commenter spoke at the December 20, 2021 Community Development Board public hearing.
Another commenter called the Community Development office on December 22, 2021 to
express her concerns about the proposed development.
The January 11, 2022 City Commission agenda contained an “action item” that requested the
Commission to postpone the hearing on this application to their January 25, 2022 meeting.
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APPENDIX C - OWNER INFORMATION
Owner/Applicant: Campeche Shores Development Company, LLC. PO Box 3088, Galveston,
TX 77552
Applicant Representative: Mr. Brett Megaard, PE, Hyalite Engineers, PLLC, 2304 N. 7th
Avenue, Suite L, Bozeman, MT 59715
Report By: Susana Montana, Senior Planner, Development Review Division, Community
Development Department.
Staff Engineer: Karl Johnson, PE, Engineering Department
ATTACHMENTS
A-1 Application Form
Subdivision Plat Sheets 1 through 3 (in a single document)
The full application and file of record can be viewed digitally at
https://www.bozeman.net/government/planning/using-the-planning-map, select the
“Project Documents Folder” link and navigate to application #21158, as well as digitally at
the Community Development Department at 20 E. Olive Street, Bozeman, MT 59715.
Application materials – Available through the Laserfiche archive linked agenda materials and
the full file is linked below.
This project can be viewed on the Community Development Viewer interactive map directly
with this link:
https://gisweb.bozeman.net/Html5Viewer/?viewer=planning&FILE_NUMBER=21-158
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Commission Memorandum
REPORT TO: Mayor and City Commission
FROM: Susana Montana, Senior Planner, Development Review Division,
Community Development Department
SUBJECT: Park View Crossing Major Subdivision Preliminary Plat
Application No. 21158
MEETING DATE: January 25, 2022
AGENDA ITEM TYPE: Action (Quasi-Judicial)
PROJECT LEGAL DESCRIPTION: Lot 4 of Minor Subdivision 400 located in the NE ¼ of
Section 3, Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County,
Montana.
RECOMMENDATION: The November 19, 2021 application conforms to standards and is
sufficient for approval with conditions and code provisions.
STRATEGIC PLAN: Vision Statement: 4. A Well-Planned City. We consistently improve our
community’s quality of life as it grows and changes, honoring our sense of place and the
‘Bozeman feel’ as we plan for a livable, affordable, more connected city.
4.2 High Quality Urban Approach. Continue to support high quality planning, ranging from
building design to neighborhood layouts, while pursuing urban approaches to issues such as
multimodal transportation, infill, density, connected trails and parks, and walkable
neighborhoods.
4.3 Strategic Infrastructure Choices. Prioritize long-term investment and maintenance for
existing and new infrastructure.
BACKGROUND: The property owner/applicant made application to develop the vacant
property on the west side of Vaquero Parkway located south of Baxter Lane, north of W. Oak
Street, east of N. Ferguson Avenue and west of Davis Lane. The subdivision borders the 97-
acre Gallatin County Regional Park on the park’s eastern boundary. The application
proposes the subdivision of 7 acres of land into 44 residential lots consisting of: 9 fourplex
townhouse lots, 2 triplex townhouse lots, and 1 duplex townhouse lot, plus 2 open space
(mid-block crossing) lots, 1 common area drainage lot, and streets and rights-of-way (ROW).
The Applicant would provide a shared-use pathway along its Vaquero Parkway frontage
within the ROW as partial fulfillment of its parkland contribution.
The subject property was annexed to the City in 2000 and is zoned R-3, Medium-density
Residential. The infrastructure is proposed to be developed in a single phase and each
buildable lot within this subdivision will require further development review prior to
building permit issuance.
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Commission Memorandum
The Community Development Board (CDB) held a public hearing on this application on
December 20, 2021. The CDB is the advisory body to the City Commission on this subdivision
application. By a vote of 6:1, the CDB recommended approval of the project with the
conditions and code provisions outlined in this staff report. This recommendation did not
include support of the Applicant’s requested subdivision variance to waive installation of a
sidewalk along the west side of Stokes Lane. The Applicant withdrew this variance request
on December 23, 2021 and it is not included in this application.
Two comments have been received on this application: (1) During the CDB public comment
period, a neighbor of the proposed subdivision Site commented during the public comment
period and shared his concerns:
Concern that people visiting the Regional Park will double-park along Vaquero
Parkway;
Concern that the development would increase/exacerbate traffic congestion along
Vaquero Parkway; and
The Applicant’s reluctance to build a sidewalk on the west side of the internal road
due to the cost of the concrete would not result in savings to the new home purchasers
and not result in affordable homes; and
(2) After the CDB meeting, another neighbor of the Site called our office to express concern
that the development of the Site would remove habitat of a flock of partridges that have
settled in the park and the Site. She asked if an environmental study had been done for this
development. Staff responded that the subdivision regulations require the Applicant to
report on wildlife per Section 76-3-608, MCA. The subdivision Applicant did provide this
information in the application and it is found on page 31 of the attached staff report. Staff
further checked with the Montana Natural Heritage Program to see if partridges are listed as
a “species of concern’ or a “potential species of concern” that may be threatened or its habitat
threatened and this species is not included in either list.
No written public comment has been received. A summary of the CDB meeting is attached to
this Memo. The CDB proceedings may be viewed here under the date December 20, 2021:
https://www.bozeman.net/services/city-tv-and-streaming-audio
The final decision for a Major Subdivision Preliminary Plat with less than 50 lots must be
made within 60 working days of the date it was deemed adequate. The Development Review
Committee (DRC) deemed the application adequate for continued review on November 19,
2021. Pursuant to BMC 38.240.130 the City Commission shall approve, conditionally
approve or deny the subdivision application by January 19, 2022, unless there is a written
extension from the developer, not to exceed one year. The Applicant requested an extension
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Commission Memorandum
in writing to have the application considered by the City Commission at their January 25,
2022 hearing.
UNRESOLVED ISSUES: Unresolved issues at this Preliminary Plat stage are related to
parklands contributions and stormwater/water quality management issues which must be
resolved prior to submittal of the final plat application. The final plat must satisfy all of the
recommended preliminary plat conditions of approval and all relevant Bozeman Municipal
Code (BMC) code provisions noted in the attached staff report.
ALTERNATIVES:
1. Approve the application with the recommended conditions;
2. Approve the application with clarifications/corrections or minor modifications to the
staff-recommended conditions;
3. Deny the application based on the Commission’s findings of non-compliance with the
applicable criteria contained within the staff report; or
4. Open and continue the public hearing on the application to a later date, with specific
direction to staff or the Applicant to supply additional information or to address
specific items. This alternative is requested if the City Commission wishes to amend
or add conditions of approval.
FISCAL EFFECTS: Fiscal impacts are undetermined at this time, but will include increased
property tax revenues from new development, along with increased costs to deliver
municipal services to the property. Impact fees will be collected at the time of issuance of
building permits for individual developments along with City sewer and water connection
fees.
Attachment: Staff Report
Community Development Board meeting summary
Application A-1 Form
Preliminary Plat Map Sheets (in a single document)
Report compiled on: December 28, 2021
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December 27, 2021
RE: 21158; Park View Crossing Major Subdivision Preliminary Plat Review by the
Bozeman Community Development Board on December 20, 2021.
Community Development Board (CDB) Members present for the December 20, 2021 meeting:
Chairman Henry “Hap” Happel, Jerry Pape, Nicole Olmstead, Allison Bryan, Brady Ernst, John
Backes, Padden Guy Murphy, Stephen Egnatz and Jen Madgic.
City staff present: Susana Montana, Senior Planner, Development Review Division;
Chris Saunders, Long Range Planning Division Manager;
Anna Bentley, Deputy Director and CDB Board Liaison; and
Ms. Taylor Chambers, Board Secretary
Applicant representative present: Mr. Brett Megaard, PE, Hyalite Engineers
Susana Montana, Community Development planner, presented a slide show describing
the proposed subdivision’s location, the character of the neighborhood, described the
proposed subdivision characteristics, and the requested variance from the sidewalk
along the west side of the new Stokes Lane, and presented the staff evaluation of how
the application addresses the City’s growth policies and the Bozeman Municipal Code
(BMC).
Mr. Megaard, representing the Applicant, presented a slide show and described the
various aspects of the project, the requested variance to waive the sidewalk along the
west side of Stokes Lane, and how the Applicant seeks to connect the subdivision to the
Regional Park’s gravel trails.
The Chair called for public comments and there was one telephone caller, Mr. Ethan
Anderson, a neighbor of the proposed subdivision, who shared his concerns:
Concern that people visiting the Regional Park will double-park along Vaquero
Parkway;
Concern that the development would increase/exacerbate traffic congestion
along Vaquero Parkway; and
The Applicant’s reluctance to build a sidewalk on the west side of the internal
road due to the cost of the concrete would not result in savings to the new home
purchasers and not result in affordable homes.
The Chair asked for a Motion from the Board to begin discussions on the proposal.
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Board Member Jerry Pape made the Motion from the text of the staff report which was
seconded by Board Member John Backes.
Some CDB Members expressed the following concerns and suggestions for the project:
Would Accessory Dwelling Units (ADUs) be allowed in the subdivision? [Susana
responded that ADUs are permitted in the subdivision’s R-3 zone and are not
prohibited by the subdivision CC&Rs.]
Board Members expressed their opinion that the variance request does not meet
the code criteria for granting such a request; it does not appear to be any
hardship associated with the property to warrant a variance from the sidewalk;
and sidewalks along the park property are a necessity.
Would access to the park be ADA-accessible? [Susana indicated that it would be
required to be ADA-compliant.]
One Member indicated that the Applicant had initially proposed lots fronting on
the park boundary which would allow the rear yards of those lots to face the
park; this is a better design than what staff required the Applicant to do which is
to have the lots face the street with garages that would be accessed from the
alley that bisects the block. This Board Member opposes this lot layout design as
“anathema to good development” and does not like alley-loaded lots. He
supports the subdivision but would vote no because he does not like the lot
layout.
Another Board Member likes the lot layout design and stated that parking along
parks is essential to assure public access to parks. Like alleyways in older
neighborhoods, the alley allows both garage access and rear yards and promotes
the City’s growth policies. If the variance were to be supported, he favored the
option that extended a trail into the park along the “middle” alignment of the
mid-block crossing.
Other Board Members support the smaller lots and the variety of lot types which
could facilitate pricing to “the missing middle” income households.
ADUs are supported for this subdivision as well.
By a vote of 6:1, the Board recommended approval of the project with the conditions
and code provisions outlined in the CDB staff report. This recommendation did not
include support of the Applicant’s requested subdivision variance to waive installation of
a sidewalk along the west side of Stokes Lane.
Staff note: The Applicant withdrew the sidewalk variance request on December 23,
2021 and it is not included in the staff report to the City Commission. The City
Commission hearing on this application is scheduled for Tuesday, January 25, 2022.
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Memorandum
REPORT TO:City Commission
FROM:Jacob Miller, Associate Planner
Chris Saunders, Community Development Manager
Anna Bentley, Interim Community Development Director
SUBJECT:Review North Montana Avenue Minor Subdivision Preliminary Plat,
Application 21224
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Community Development - Quasi-Judicial
RECOMMENDATION:Having reviewed and considered the application materials, public comment,
and all the information presented, I hereby adopt the findings presented in
the staff report for application 21224 and move to approve the subdivision
with conditions and subject to all applicable code provisions.
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:The Department of Community Development received a Preliminary Plat
Application on August, 18, 2021 requesting a subsequent minor subdivision
of one lot of 9,755.97 square feet into two lots for the purpose of building a
two-unit townhouse building.
UNRESOLVED ISSUES:None.
ALTERNATIVES:As identified in the Staff Report.
FISCAL EFFECTS:None identified at this time.
Attachments:
21224 N. Montana Ave. Minor Sub PP SR.pdf
A1 - Preliminary Plat.pdf
NoticingChecklistN1.pdf
PP City Response - Annotated .pdf
Project Narrative.pdf
PROPERTY OWNERS ADJACENT TO 413.pdf
PROPERTY OWNERS WITHIN 200 FT.pdf
RevisionandCorrectionRC.pdf
SID Waiver 413-415 N. Montna.pdf
112
Title Certificate.pdf
Utility Easement 415 N. Montana.pdf
Preliminary Plat - Exhibit 1.pdf
Report compiled on: January 13, 2022
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21224 N. Montana Ave. Minor Subdivision Preliminary Plat
Public Hearing Date: City Commission meeting is January 25, 2022 at 6:00 pm.
Project Description: A subsequent minor preliminary plat application to allow the subdivision
of a 9,755.97 square foot lot to be subdivided into two lots.
Project Location: The property is legally described as Lot 4B of Amended Plat of a Portion of
Lot 4 of Beall’s First Addition, Bozeman, Montana. The property is zoned R-2,
Moderate Density Residential.
Recommendation: Approval with conditions and code provisions.
Recommended Motion: “Having reviewed and considered the application materials, public
comment, and all the information presented, I hereby adopt the findings presented in the
staff report for application 21224 and move to approve the N. Montana Ave. Minor
Subdivision with conditions and subject to all applicable code provisions.”
Report Date: January 12, 2022
Staff Contact: Jacob Miller, Associate Planner
Agenda Item Type: Action (Quasi-judicial)
EXECUTIVE SUMMARY
Unresolved Issues.
There are no unresolved issues with this application.
Project Summary
The Department of Community Development received a Preliminary Plat Application on August,
18, 2021 requesting a subsequent minor subdivision of one lot of 9,755.97 square feet into two
lots for the purpose of building a two-unit townhouse building.
This subdivision is a second or subsequent minor subdivision from a tract of record and does not
require Planning Board review. State statute requires a public hearing before a City Commission
decision.
On December 2, 2021 the Development Review Committee (DRC) found the application
adequate for continued review and recommends the conditions and code provisions identified in
this report.
The subdivider did not request any subdivision or zoning variances with this application. The
City did not receive any written public comment on the application as of the writing of this
report. The final decision for a subsequent minor subdivision preliminary plat must be made
within 60 working days of the date it was deemed adequate; in this case by February 23, 2022.
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Alternatives
1. Approve the application with the recommended conditions;
2. Approve the application with modifications to the recommended conditions;
3. Deny the application based on the Commission’s findings of non-compliance with the
applicable criteria contained within the staff report; or
4. Continue the public hearing on the application, with specific direction to staff or the
subdivider to supply additional information or to address specific items.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................ 1
Unresolved Issues. .............................................................................................................. 1
Project Summary ................................................................................................................. 1
Alternatives ......................................................................................................................... 2
SECTION 1 – MAP SERIES .......................................................................................................... 4
SECTION 2 – REQUESTED VARIANCES ................................................................................. 7
SECTION 3 – RECOMMENDED CONDITIONS OF APPROVAL ............................................ 7
SECTION 4 – CODE REQUIREMENTS REQUIRING PLAT CORRECTIONS ....................... 7
SECTION 5 – RECOMMENDATION AND FUTURE ACTIONS ............................................ 10
SECTION 6 – STAFF ANALYSIS and findings ......................................................................... 10
Applicable Subdivision Review Criteria, Section 38.240.130.A.5.e, BMC. .................... 10
Primary Subdivision Review Criteria, Section 76-3-608 ................................................. 12
Preliminary Plat Supplements ........................................................................................... 13
APPENDIX A – PROJECT SITE ZONING AND GROWTH POLICY..................................... 15
APPENDIX B – DETAILED PROJECT DESCRIPTION .......................................................... 15
APPENDIX C – NOTICING AND PUBLIC COMMENT ......................................................... 16
APPENDIX D – OWNER INFORMATION AND REVIEWING STAFF ................................. 16
FISCAL EFFECTS ....................................................................................................................... 16
ATTACHMENTS ......................................................................................................................... 16
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SECTION 1 – MAP SERIES
Exhibit 1 – Zoning
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Exhibit 2 – Community Plan 2020 Future Land Use
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Exhibit 3 – Preliminary Plat
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SECTION 2 – REQUESTED VARIANCES
The subdivider did not request any subdivision or zoning variances with this preliminary plat
application.
SECTION 3 – RECOMMENDED CONDITIONS OF APPROVAL
Please note that these conditions are in addition to any required code provisions identified in this
report. These conditions are specific to this project.
Recommended Conditions of Approval:
1. The applicant is advised that unmet code provisions, or code provisions that are not
specifically listed as conditions of approval, does not, in any way, create a waiver or other
relaxation of the lawful requirements of the Bozeman Municipal Code or state law.
2. City of Bozeman Resolution 5076, Policy 1 - The applicant must provide and file with the
County Clerk and Recorder's office executed Waivers of Right to Protest Creation of
Special Improvement Districts (SID’s) on City standard form for the following:
a. Street improvements to Montana Avenue between Lamme Street to Peach Street
including lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage.
b. Intersection improvements at Montana Avenue and Peach Street including lighting,
signalization, paving, curb/gutter, sidewalk, and storm drainage.
c. Intersection improvements at Montana Avenue and Lamme Street including
lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage.
d. Intersection improvements at Rouse Avenue and Peach Street including lighting,
signalization, paving, curb/gutter, sidewalk, and storm drainage.
e. Intersection improvements at Rouse Avenue and Lamme Street including lighting,
signalization, paving, curb/gutter, sidewalk, and storm drainage.
The document filed shall specify that in the event an SID is not utilized for the completion
of these improvements, the developer agrees to participate in an alternate financing method
for the completion of said improvements on a fair share, proportionate basis as determined
by square footage of property, taxable valuation of the property, traffic contribution from
the development, or a combination thereof. The applicant must provide a copy of the filed
SID waiver prior to final plat approval.
3. DSSP Section V (D) Alignment – A minimum of ten feet of horizontal separation
must be maintained between water and sanitary sewer services and any gas lines,
power lines, communication, lines, utility poles or other above-grade utility
structures, and street lights.
a. The applicant must move the water service and/or gas service to Lot 4B -1 to
maintain ten feet of horizontal separation between the two services prior to
approval of building permits on either lot.
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SECTION 4 – CODE REQUIREMENTS
1. Sec. 38.220.070. - Final plat.
a. The final plat must conform to all requirements of the Bozeman Municipal Code
and the Uniform Standards for Monumentation, Certificates of Survey, and Final
Subdivision Plats (24.183.1101 ARM, 24.183.1104 ARM, 24.183.1107 ARM)
and must be accompanied by all required documents, including certification from
the City Engineer that record drawings for public improvements were received, a
platting certificate, and all required and corrected certificates.
b. A letter from the city engineer certifying that the following documents have been
received:
i. As-built drawings, i.e., copies of final plans, profiles, grades and
specifications for public improvements, including a complete grading and
drainage plan.
c. A conditions of approval sheet addressing the criteria listed in this section must be
provided with the final plat as set forth in 24.183.1107 ARM and must:
i. Be entitled "Conditions of Approval of [insert name of subdivision]" with a
title block including the quarter-section, section, township, range, principal
meridian, county, and, if applicable, city or town in which the subdivision
is located.
ii. Contain any text and/or graphic representations of requirements by the
governing body for final plat approval including, but not limited to, setbacks
from streams or riparian areas, floodplain boundaries, no-build areas,
building envelopes, or the use of particular parcels.
iii. Include a certification statement by the landowner that the text and/or
graphics shown on the conditions of approval sheet(s) represent(s)
requirements by the governing body for final plat approval and that all
conditions of subdivision application have been satisfied.
iv. Include a notation stating that the information shown is current as of the
date of the certification, and that changes to any land-use restrictions or
encumbrances may be made by amendments to covenants, zoning
regulations, easements, or other documents as allowed by law or by local
regulations.
v. Include a notation stating that buyers of property should ensure that they
have obtained and reviewed all sheets of the plat and all documents recorded
and filed in conjunction with the plat, and that buyers of property are
strongly encouraged to contact the local community development
department and become informed of any limitations on the use of the
property prior to closing.
vi. List all associated recorded documents and recorded document numbers.
vii. List easements, including easements for agricultural water user facilities.
2. Sec. 38.410.060. - Easements.
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a. All dedicated public easements must be recorded the City’s standard template
easement documents separate from the plat and the recorded document number
must be listed on the final plat.
b. The final plat must provide all necessary utility easements and they must be
described, dimensioned and shown on each subdivision block of the final plat in
their true and correct location.
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SECTION 5 – RECOMMENDATION AND FUTURE ACTIONS
The Development Review Committee (DRC) determined the application was adequate for
continued review and recommended approval with conditions on December 2, 2021.
This subdivision is a second or subsequent minor subdivision from a tract of record and does not
require Planning Board review. A public hearing is required before a City Commission decision.
The City Commission is scheduled for a public hearing on this minor subdivision preliminary
plat on January 25, 2022 via WebEx at 6 p.m.
SECTION 6 – STAFF ANALYSIS AND FINDINGS
Analysis and resulting recommendations are based on the entirety of the application materials,
municipal codes, standards, plans, public comment, and all other materials available during the
review period. Collectively this information is the record of the review. The analysis in this
report is a summary of the completed review.
Applicable Subdivision Review Criteria, Section 38.240.130.A.5.e, BMC.
In considering applications for subdivision approval under this title, the advisory boards and City
Commission shall consider the following:
1) Compliance with the survey requirements of Part 4 of the Montana Subdivision and Platting
Act
The preliminary plat was prepared in accordance with the surveying and monumentation
requirements of the Montana Subdivision and Platting Act by a Professional Engineer registered
in the State of Montana. As noted in the code requirements, the final plat must comply with State
statute, Administrative Rules of Montana, and the Bozeman Municipal Code.
2) Compliance with the local subdivision regulations provided for in Part 5 of the Montana
Subdivision and Platting Act
The final plat must comply with the standards identified and referenced in the Bozeman
Municipal Code. The subdivider is advised that unmet code provisions, or code provisions not
specifically listed as a condition of approval, do not, in any way, create a waiver or other
relaxation of the lawful requirements of the Bozeman Municipal Code or State law. Sections 3
and 4 of this report identify conditions and code provisions necessary to meet all municipal
standards. The listed code requirements address necessary documentation and compliance with
standards. Therefore, upon satisfaction of all conditions and code corrections the subdivision will
comply with the subdivision regulations.
3) Compliance with the local subdivision review procedures provided for in Part 6 of the
Montana Subdivision and Platting Act
The Bozeman City Commission public hearing was properly noticed in accordance with the
Bozeman Municipal Code. Based on the recommendation of the Development Review
Committee (DRC) and other applicable review agencies, as well as any public testimony
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received on the matter, the City Commission will make the final decision on the subdivider’s
request.
The Department of Community Development received a preliminary plat application on July 28,
2021. The DRC reviewed the preliminary plat application and determined the submittal did not
contained detailed, supporting information that was sufficient to allow for the continued review
of the proposed subdivision on August 31, 2021.
A revised application was received on November 24, 2021. The DRC determined the application
was adequate for continued review on December 2, 2021 and recommended conditions of
approval and code corrections for the staff report.
The City scheduled public notice for this application for publication in the legal advertisements
section of the Bozeman Daily Chronicle on Friday, December 18, 2021 for postings on Sundays,
December 19 and December 26, 2021. The applicant posted public notice on the subject property
on May 23, 2021. The applicant sent public notice to physically adjacent landowners via
certified mail, and to all other landowners of record within 200-feet of the subject property via
first class mail, on December 18, 2021. No public comment had been received on this application
as of the writing of this report.
On January 13, 2022 staff completed and forwarded the staff report for this subsequent minor
subdivision preliminary plat application with a recommendation of conditional approval for
consideration by the City Commission, which is scheduled to make a final decision at its January
25, 2022 public hearing. The City Commission must make a final decision on a subsequent
minor subdivision preliminary plat within 60 working days of the date the application was
deemed adequate; in this case by February 23, 2022.
4) Compliance with Chapter 38, BMC and other relevant regulations
Community Development staff and the DRC reviewed the preliminary plat against all applicable
regulations and the application complies with the BMC and all other relevant regulations with
conditions and code corrections. This report includes Conditions of Approval and required code
provisions as recommended by the DRC for consideration by the City Commission to complete
the application processing for final plat approval. All municipal water and sewer facilities will
conform to the regulations outlined by the Montana Department of Environmental Quality and
the requirements of the Design Standards and Specifications Policy and the City of Bozeman
Modifications to Montana Public Works Standard Specifications.
5) The provision of easements to and within the subdivision for the location and installation of
any necessary utilities
The final plat will provide and depict all necessary utilities and required utility easements. Code
requirement No. 5, requires that all easements, existing and proposed, must be accurately
depicted and addressed on the final plat and in the final plat application. Public utilities are
located within dedicated street right of ways.
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6) The provision of legal and physical access to each parcel within the subdivision and the
notation of that access on the applicable plat and any instrument transferring the parcel
The final plat will provide legal and physical access to each parcel within the subdivision. All of
the proposed lots will have frontage on public streets constructed to City standards with lot
frontage meeting minimum standards shown on the preliminary plat.
Primary Subdivision Review Criteria, Section 76-3-608
1) The effect on agriculture
This subdivision will not impact agriculture. The City of Bozeman Community Plan designates
the subject property as Urban Neighborhood designation which allows for residential uses. The
lot currently has an two-unit residential building that will be demolished so that a two-unit
townhouse can be built following recordation of final plat.
2) The effect on Agricultural water user facilities
This subdivision will not impact agricultural water user facilities. No irrigation facilities are
present on the lots. No water body alterations are proposed.
3) The effect on Local services
Water/Sewer – There is currently adequate water and sewer infrastructure on N. Montana Ave to
serve the property. Condition of Approval #3 requires that the applicant move the northern water
and/or gas service lines to create the standard 10’ of separation.
Utilities – Utilities to serve the site are already in place. The applicant has provided an easement
for the underground power that will serve the properties. NorthWestern energy will be providing
gas and electrical services to the proposed subdivision.
Streets – There is not a significant change in use or intensity and therefore will not impact the
local street network.
Police/Fire – The City’s Police and Fire emergency response area includes the subject property.
This subdivision does not impact the City’ ability to provide emergency services to the property.
Stormwater – The subsequent minor subdivision will not significantly impact stormwater
infrastructure. Little to no intensity of use will be take place.
Parkland – The proposed subdivision does not meet the threshold to require parkland dedication.
4) The effect on the Natural environment
No significant physical or topographical features have been identified, (e.g., outcroppings,
geological formations, steep slopes), on the subject property. Provisions will be made to address
the control of noxious weeds and maintenance of the property and will be further addressed by
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inclusion in the existing protective covenants and compliance with the recommended conditions
of approval.
5) The effect on Wildlife and wildlife habitat
The subdivision will not significantly impact wildlife and wildlife habitat. The subdivision is
zoned for residential uses and is in an existing neighborhood.
6) The effect on Public health and safety
With the recommended Conditions of Approval and required plat corrections, the subdivision
will not significantly impact public health and safety. The intent of the regulations in Chapter 38
of the Bozeman Municipal Code is to protect the public health, safety and general welfare. The
DRC reviewed the subsequent minor subdivision preliminary plat and determined that it is in
compliance with the title. This staff report notes all other conditions deemed necessary to ensure
compliance. In addition, all subdivisions must be reviewed against the criteria listed in 76-3-
608.3.b-d, Montana Code Annotated (MCA). As a result, the Department of Community
Development reviewed this application against the listed criteria and further provides the
following summary for submittal materials and requirements.
This report includes findings to justify the recommended site-specific Conditions of Approval for
reasonable mitigation of impacts from the proposed minor subdivision.
Preliminary Plat Supplements
The Development Review Committee (DRC) completed a subdivision pre-application plan
review on August 18, 2021 and no waivers or variances were requested.
Staff offers the following summary comments on the supplemental information required with
Article 38.220.060, BMC.
38.220.060.A.1 – Surface water
This subdivision will not significantly impact surface water. No surface water exists in the
vicinity of the site.
38.220.060.A.2 - Floodplains
No mapped 100-year floodplains impact the subject property. The elevation of the site is higher
than the elevation of the 0.2-percent annual chance flood. This subdivision will not be impacted
by floodplains.
38.220.060.A.3 - Groundwater
This subdivision is not in an area of known high groundwater and will not have any significant
impacts. The proposed uses are very similar in scale and intensity as what is existing.
38.220.060.A.4 - Geology, Soils and Slopes
This subdivision will not significantly impact the geology, soils or slopes. No significant
geological features or slopes exist on the site.
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38.220.060.A.5 - Vegetation
This subdivision will not significantly impact vegetation. No critical plant communities
identified on site.
38.220.060.A.6 - Wildlife
This subdivision will not significantly impact wildlife. The proposed subdivision does not
contain any known critical, significant or key wildlife areas.
38.220.060.A.7 - Historical Features
This subdivision will not significantly impact historic features. The proposed subdivision does
not contain any known historic sites.
38.220.060.A.8 - Agriculture
This subdivision will not impact agriculture. The City of Bozeman Community Plan designates
the subject property as Urban Neighborhood designation which allows for residential uses. The
lot currently has an two-unit residential building that will be demolished so that a two-unit
townhouse can be built following recordation of final plat.
38.220.060.A.89 - Agricultural Water User Facilities
This subdivision will not impact agricultural water user facilities. No irrigation facilities are
present on the lots. No water body alterations are proposed.
38.220.060.A.10 - Water and Sewer
The subdivision will not significantly impact city water and sewer infrastructure. Water and
sewer improvements will be designed to meet City of Bozeman Standards and State Department
of Environmental Quality Standards and Regulations.
38.220.060.A.111 - Stormwater Management
The subdivision will not significantly impact stormwater infrastructure. See discussion above
under primary review criteria.
38.220.060.A.12 - Streets, Roads and Alleys
The subdivision will not significantly impact the City’s street infrastructure. The subdivision is
in an existing neighborhood and will not be adding any intensity of use to the properties.
38.220.060.A.13 - Utilities
This subdivision will not significantly impact existing utilities. See discussion above under
primary review criteria.
38.220.060.A.14 - Educational Facilities
This subdivision will not significantly impact educational facilities. The subdivision is
commercial and will not impact enrollment.
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38.220.060.A.15 - Land Use
The subdivision will not significantly impact land use. The proposed subdivision will create two
lots from the existing lot and will build a two-unit townhouse building. The current use is a two-
unit household building.
38.220.060.A.16 - Parks and Recreation Facilities
This proposed subdivision does not meet the threshold to require parkland dedication.
38.220.060.A.17 - Neighborhood Center Plan
This proposed subdivision does not meet the threshold to require a neighborhood center.
38.220.060.A.18 - Lighting Plan
A lighting plan was not required for this application. The subdivision is in an existing
neighborhood with existing lighting.
38.220.060.A.19 - Miscellaneous
The proposed subdivision is not located within 200 feet of any public land access or within a
delineated Wildland Urban Interface area.
38.220.060.A.20 - Affordable Housing
The subdivision does not require affordable housing.
APPENDIX A – PROJECT SITE ZONING AND GROWTH POLICY
Zoning Designation and Land Uses:
The subject property is zoned R-2, Residential Moderate Density District. The intent of the R-2
district is to provide for one and two-household development at urban densities within th ecity in
areas that present few or no development constraints.
Adopted Growth Policy Designation:
The subject property is designated as Urban Neighborhood. This category primarily includes
urban density homes in a variety of types, shapes, sizes, and intensities. Diversity in housing and
complementary uses such as parks, schools etc. are encouraged.
This proposed subdivision is well-suited to implement the Urban Neighborhood designation. The
proposed two-unit household subdivision will provide diversity of housing in an area of
predominantly single-household detached dwellings. The area has been developed as a
neighborhood for many years and this subdivision and subsequent development will blend in
well.
APPENDIX B – DETAILED PROJECT DESCRIPTION
Project Background and Description
A preliminary plat application by the property owner, Timothy Bell, 415 N. Montana Ave.,
Bozeman, MT, and applicant, Gordon Carpenter, PO Box 958, Manhattan, MT 59715 for the
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subdivision of a 9,755.97 square foot lot into two separate lots in order to build a two-unit
townhouse building. The existing two-household residential building will be demolished.
APPENDIX C – NOTICING AND PUBLIC COMMENT
Notice was provided at least 15 and not more than 45 days prior to the City Commission public
hearing per BMC 38.220.420, The City scheduled public notice for this application on December
18, 2021 for publication in the legal advertisements section of the Bozeman Daily Chronicle on
Sunday, December 19 and Sunday, December 26, 2021. The applicant posted public notice on
the subject property on December 18, 2021. The City sent public notice to physically adjacent
landowners via certified mail, and to all other landowners of record within 200-feet of the subject
property via first class mail, on December 18, 2021. No public comment had been received on
this application as of the writing of this report.
APPENDIX D – OWNER INFORMATION AND REVIEWING STAFF
Owner: Timothy Bell, 415 N. Montana Ave., Bozeman, MT
Applicant: Gordon Carpenter, PO Box 958, Manhattan, MT 59715
Representative: Gordon Carpenter, PO Box 958, Manhattan, MT 59715
Report By: Jacob Miller, Associate Planner
FISCAL EFFECTS
No unusual fiscal effects have been identified. No presently budgeted funds will be changed by
this subdivision.
ATTACHMENTS
The full application and file of record can be viewed digitally at
https://www.bozeman.net/government/planning/using-the-planning-map, select the “Project
Documents Folder” link and navigate to application #21224, as well as digitally at the
Community Development Department at 20 E. Olive Street, Bozeman, MT 59715.
Application materials – Available through the Laserfiche archive linked agenda materials and the
full file is linked below.
https://weblink.bozeman.net/WebLink/Browse.aspx?startid=232508&cr=1
This project can be viewed on the Community Development Viewer interactive map directly
with this link:
https://gisweb.bozeman.net/Html5Viewer/?viewer=planning&FILE_NUMBER=21-224
Public Comment: None to date
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PROPERTY OWNER RECORDS
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135
FROM: DEVELOPMENT REVIEW COMMITTEE
RE: 413-415 N Montana Ave. Minor Subdivision Preliminary Plat, Application 21224
DATE: AUGUST 31, 2021
Project Location: 413 N. Montana Ave., Bozeman, MT, 59715
Lot ϰB͕ Beall͛s ϭst Addition
Project Description: A preliminary plat application for the subdivision of a 9,755 square foot lot
into two lots.
Recommendation: Staff determines the application inadequate for further review. The
recommended conditions of approval and code comments below are provided for your
information at this time and are the result of the DRC review to date.
Section 2 - RECOMMENDED CONDITIONS OF APPROVAL
Please note that these conditions are in addition to any required code provisions identified in this
report. These conditions are specific to the development.
1. The applicant is advised that unmet code provisions, or code provisions that are not
specifically listed as conditions of approval, does not, in any way, create a waiver or other
relaxation of the lawful requirements of the Bozeman Municipal Code or state law.
Section 3 – REQUIRED CODE PROVISIONS All references are to the Bozeman Municipal Code.
Planning Division, Jacob Miller, jamiller@bozeman.net, 582-2261
1. Sec. 38.220.070. - Final plat.
a. The final plat must conform to all requirements of the Bozeman Municipal Code and
the Uniform Standards for Monumentation, Certificates of Survey, and Final
Subdivision Plats (24.183.1101 ARM, 24.183.1104 ARM, 24.183.1107 ARM) and
must be accompanied by all required documents, including certification from the
City Engineer that record drawings for public improvements were received, a
platting certificate, and all required and corrected certificates.
b. Please include all certificates on sheet 1, the plat on sheet 2, and conditions of
approval on sheet 3.
2. Sec. 38.240.460. - Governing body.
a. Please remove Mitch Reister͛s name from this certificate as he is no longer with the
City.
3. Sec. 38.240.470. - Exclusion from MDEQ review.
a. Please remove Mitch Reister͛s name from this certificate as he is no longer ǁith the
City.
136
4. Sec. 38.410.060. - Easements.
a. ϭϬ͛ easements for the poǁer lines to each of the units must be provided. Please
show easements on the plat and indicate whether service lines will be overhead or
underground.
Engineering Division, Cody Flammond, cflammond@bozeman.net, 406-582-2287
ENGINEERING REQUIRED CODE CORRECTIONS:
The following items are required for Engineering to complete a full review.
General
1. BMC 38. 220.040- The applicant must provide an exhibit showing the following:
a. Location of all existing structures, including buildings, railroads, power lines
towers, and improvements inside and within 100 feet of the proposed
subdivision.
b. The existing and proposed utilities located on and adjacent to the proposed
subdivision including:
i. Location, size and depth of sanitary and storm sewers, water mains and
gas lines.
ii. Location of fire hydrants, electric lines, telephone lines, sewage and
water treatment, and storage facilities.
c. Site contours
d. Existing and proposed utility easements in and around the subject
development.
e. Location of all existing water, sewer, and dry utility services extended into the
properties.
i. The applicant must differentiate between existing and proposed
services on the exhibit.
Water Rights
2. BMC 38.410.130 Water rights - The applicant must contact Griffin Nielsen with the City
Engineering Department to obtain a determination of cash-in-lieu (CIL) of water rights
prior to final plat approval.
Easements
3. BMC 38.410.060 (B)(2) Easements -The applicant must provide a ten foot utility
easement (power, gas, communication, etc.) along the developments property frontage
prior to final plat approval. The applicant may contact the Engineering Department to
receive a copy of a utility easement template.
ENGINEERING RECOMMENDED CONDITIONS OF APPROVAL:
137
The following conditions must be addressed prior to final plat.
General
1. The current MCA sanitation reference from the 2019 legislative session is 76-4-
125(1)(d). The applicant must state the full reference in the Certificate of Exclusion
from Montana Department of Environmental Quality Review prior to final plat
approval.
2. The applicant must remove the following sentence from the Certificate of Consent:
͞Further, this division is excluded from review under the Sanitation in Subdivisions Act
pursuant to 76-24-125(1)(d) as it has been certified pursuant to 76-4-ϭϮϳ͘͟
3. Identify lot numbers for newly created lots on the plat. Also label new lot area in acres
and square feet.
4. City of Bozeman Resolution 5076, Policy 1 - The applicant must provide and file with the
County Clerk and Recorder's office executed Waivers of Right to Protest Creation of
Special Improvement Districts ;SID͛sͿ on CitLJ standard form for the following:
a. Street improvements to Montana Avenue between Lamme Street to Peach
Street including lighting, signalization, paving, curb/gutter, sidewalk, and storm
drainage.
b. Intersection improvements at Montana Avenue and Peach Street including
lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage.
c. Intersection improvements at Montana Avenue and Lamme Street including
lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage.
d. Intersection improvements at Rouse Avenue and Peach Street including
lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage.
e. Intersection improvements at Rouse Avenue and Lamme Street including
lighting, signalization, paving, curb/gutter, sidewalk, and storm drainage.
The document filed shall specify that in the event an SID is not utilized for the
completion of these improvements, the developer agrees to participate in an alternate
financing method for the completion of said improvements on a fair share,
proportionate basis as determined by square footage of property, taxable valuation of
the property, traffic contribution from the development, or a combination thereof. The
applicant must provide a copy of the filed SID waiver prior to final plat approval.
Water and Wastewater
1. DSSP Section V (D) Alignment – A minimum of ten feet of horizontal separation must be
maintained between water and sanitary sewer services and any gas lines, power lines,
communication, lines, utility poles or other above-grade utility structures, and street
lights.
a. The applicant must move the water service and/or gas service to Lot 4B-1 to
maintain ten feet of horizontal separation between the two services prior
to final plat approval.
138
1. NWE Project Engineer Kory Graham Kory.Graham@northwestern.com
2. Per the narrative the lot will subdivided into two lots for residential homes. The
applicant has stated they are aware of the need to have utilities disconnected from the
existing structure for demo. If needing a relocate or a disconnect reconnect of the
overhead power then contact NorthWestern Energy weeks in advance of needing NWE
services disconnected. If the project will require new services for the future
development submit an application online to have the NWE project engineer work with
the applicant or provide input throughout the planning and designing phases. Go to
www.northwesternenergy.com/construction to apply online Montana Construction
Application, and access Montana New Service Guide to provide information on electric
and gas service requirements. Once an application is submitted the NWE project
engineer will be in contact with the applicant.
3. Utility extension & utility easements. If needed, any extension of gas main or electric
primary will need to be installed within an easement. A minimum of a 10-foot easement
is required. Where the applicant is showing the proposed dry utilities, along the north
side of the property, a 10-ft wide easement will be needed along this route. To establish
the needed internal utility easement locations the NWE project engineer will help to
establish these locations. If an easement shall need to cross property other than the
applicants, negotiations and costs between other landowners for such easements is
entirelLJ the applicant͛s responsibilitLJ͘
4. Applicant will need to show proposed location of the gas and electric meters. Will the
proposed new electric service be overhead or underground?
5. Service & Meter Location. Applicant needs to show proposed location of the gas and
electric meters. NWE engineer will need to review the location and elevation plans for
the proposed location of gas and electric meters. The electric meter & or CT cabinet will
need to be installed in the same general location within 10-feet of the gas meter.
NorthWestern Energy reserves the right to specify the location of NWE meters. All
meters are to be located outdoors on the corner or in a location on the building closest
to the transformer or secondary junction can serving the building unit. On new
construction, electric meter locations must be within 10 feet of the gas meter if
NorthWestern Energy will be providing both electric and gas service. Meter locations
will need to be approved by NWE. NWE policy is to maintain a minimum 30-inches wide
by 3-feet clear zone between the front of the meter and landscape screening or wall
screening for self-contained meter bases and 48-inches for installations requiring
cabinets. Location of the meter(s) shall allow easy access to the meters for operation
and maintenance.
6. The following applies to buildings in regards to the gas regulator. The gas regulator
cannot be placed under a ǁindoǁ or ǁithin ϯ͛ of the operable portion of the window. It
can be placed under a ǁindoǁͬdeck on the second storLJ͕ provided the ͞openͬoperable͟
portion has at least ϲ͛ of clearance from the regulator͘ Ensure that there is ϭϬ͛ of
139
separation from any mechanical air intake, including air conditioning units. The gas
regulator will need to be 3-ft or more from the closest corner of any portion of the
electric meter base.
7. Transformer location to Building. The location of transformers will be determined by the
NWE Project Engineer. For oil filled transformers a 2-foot clearance is required to non-
combustible walls and surfaces that do not have any openings such as doors, windows,
air intake, and fire escapes routes, and meets current NEC or NFPA requirements for
non-combustible material. A 10-foot of clearance is required on the front side of the pad
where the transformer doors are located. Note, all distances are referenced to the edge
of the pad. For any combustible surface, not meeting current NEC or NFPA requirements
for non-combustible material, a minimum of a 10-foot clearance is required. For
planting of bushes or shrubs a Minimum Working Space for a Pad-Mounted
Transformer, is 4-feet on the sides and back portion of the concrete pad and 10-feet of
clearance on the front side of the pad where the transformer doors are located. Note,
all distances are referenced to the edge of the pad. The NWE project engineer will help
to determine the appropriate location for the transformer. Due to COVID-19 there has
been an impact on receiving larger three phase and single phase transformers and a
longer timeline may be needed to receive the needed equipment for these services.
Future Impact Fees - Please note that future building permit applications will require payment of
the required transportation, water, sewer and fire impact fees according to the City of Bozeman
adopted impact fee schedule in place at the time of building permit issuance. If you desire an
estimate of the required impact fees according to current rates please contact the Department of
Community Development and/or visit.
Note: During preparation of the staff report for future applications, additional conditions of
approval may be recommended based on comments and recommendations provided by other
applicable review agencies involved with the review of the project.
140
Project Narrative 413-415 North Montana Avenue.
OVERVIEW:
The property owner, Timothy Bell, has agreed to subdivide the existing lot (9739.33 sq. ft) into
two new lots and sell my wife and I the smaller of the two. As a side note, Mr. Bell is providing a
wonderful opportunity for two employees of MSU who have been totally priced out of the
Bozeman market with an opportunity to create a residence in town. In doing so there is a
contribution being made to the idea of density and minimizing auto use in Gallatin Valley.
There is a natural boundary line (see PRELIMINARY PLAT) that can be created which will
become the firewall between the two sides of a new townhouse.
SCOPE OF THE PROJECT:
• Approval for subdividing Lot 4B of Beall’s First Addition (9739.33) into 2 lots; 4B-1
(5965.99 sq.ft.) and 4B-2 (3773.34 sq.ft.)
• Demolition of existing structure
• Building of a new townhouse with the new property line as the firewall between the
two residences.
UTILITIES:
There are existing water, sewer, and gas lines to both units of the existing duplex. In 2014, as
part of a city upgrade on the block, the sewer and water on the north side of the property were
re done. The sewer and water lines to the south unit will need to be replaced.
In addition to this the gas lines will need to be capped for demo and then re-routed for the new
structure. The gas line for 4B-1 will be relocated to create more distance between water,
sewer, and gas. We have asked for a little tolerance on the 10 ft regulation in order to continue
to preserve some established 50 year old trees and some mature landscaping.
Electrical service currently comes overhead from a pole in the alley to the west and lands on
the south side of the structure. This line will serve as a temporary electrical line during demo
and construction and then will be replaced by an underground line from the NW corner of lot
4B-1 that will serve both 4B-1 and 4B-2.
DEMO:
Our plan for demolition is to recycle as much material as possible. While there is nothing of
historical architectural value, there are certainly some materials that can be either recycled or
possibly reused during construction.
141
REBUILD:
We are currently working with Josh Mollenkamp at Formescent Architects to design and build a
new, code conforming structure that will bring a mixture of traditional lines and contemporary
ideas to the neighborhood.
WAIVERS:
We are asking for a waiver to the supplemental information under 38.220.060, BMC.
Because this is an existing property in the oldest section of town little or none of this applies to our
project.
We look forward to working with the city on creating this wonderful new structure and new
homes for the current owner and ourselves. Thank you.
142
PROPERTY OWNERS ADJACENT TO 413-415 N. MONTANA
Andrew S. Love
212 S. Central Ave. Suite 201
St. Louis, MO 63105
Renee Gebhardt
414 N. Bozeman Ave.
Bozeman, MT. 59715
Robert Wingerter
421 N. Montana Ave.
Bozeman, MT 59715
Tami & Dominic Pasquesi
405 N. Montana Ave.
Bozeman, MT 59715
143
PROPERTY OWNERS WITHIN 200 FT. OF 413-415 N. MONTANA
DRYSDALE FAMILY LLC.
511 PERKINS PL.
BOZEMAN, MT. 59715
W BAR W LLP
110 HITCHING POST RD
BOZEMAN, MT 59715
JOY KREIKEMEIER
329 N. MONTANA AVE.
BOZEMAN, MT 59715
BEN S. & SARAH G. ALEXANDER
2251 POWDER PARK CT.
BOZEMAN, MT. 59715
CHRISTOPHER M. MYERS
408 N. BOZEMAN AVE.
BOZEMAN, MT. 59715
Lot 5 LLC
5 E. Lamme
Bozeman, MT. 59715
Vaughn Ixtla
424 N. Bozeman
Bozeman, MT 59715
2 North Montana LLC
3817 Ocean Front Walk
Marina Del Rey, CA. 90292
Andrew Kircher
122 Overlake Dr.
Medina, WA 98039
Roni Zimmer & Bic Green
426 N. Montana Ave.
Bozeman, MT 59715
Barry Newton & Zuzanna Karczewska
422 N. Montana Ave.
Bozeman, MT. 59715
144
RCREVISION AND CORRECTION
SUBMITTAL FORM
REVISION AND CORRECTION FORM PROCEDURE
This form is for changes or corrections to an existing application. Additional or revised plans or documents will not be accepted
unless accompanied by this completed form. Fees are required for third and subsequent revisions.
SUBMITTAL REQUIREMENTS
1.A completed RC revision/correction submittal form. It must be the first item in the resubmitted set.
2.Ensure all original and updated plans and documents are included in the file and meet digital naming protocol. Each
individual document or plan sheet must have a proper name and date. Ensure that each file name isn’t too long, doesn’t have
any spaces (use capital letters to delimit words), and includes the name of the item. Digital version of all materials as a JPEG
or PDF. No individual files will be accepted that are larger than 20 MB. Files that are larger must be broken down into smaller
files. Ensure the layers are flattened.
3.Revised drawings must be updated with a new current date on each revised sheet. Title sheet table of the contents/plan
schedule must be updated with new dates for each sheet modified. Retain the original date on sheets that have not been
updated or revised and include them with the submittal.
4.A written narrative that shows an itemized summary of your submittal and description of each change or revision in detail.
Changes to plan sheets must include sheet and detail numbers.
5.All changes must be clouded or highlighted on each plan set.
6.Legal documents, studies, letter or other documentation must have a clear date of revision on the front page.
7.Re-submittal of plans must be complete plan sets. No individual sheets will be accepted.
Community Development
APPLICATION FEE
Fee (after third and subsequent submittal) 1/4 of the total original application fee
SUBMITTAL INFORMATION
Application File No: Application Type:
Project Name:
Contact Name:
Phone:
Email:
SUBMITTAL TYPE
NEW CHANGE: A revision or change that the applicant has made to a plan that is currently under review that is new and
has not been reviewed before.
CORRECTION: A correction to the plans that is an applicant response to a correction letter written by the City to the
applicant.
If both types are being submitted, the written narrative must clearly differentiate between changes and corrections. If there are
changes to preliminary approved plans or approved plans, please use the modification application process (MOD application).
Revisions and Corrections Submittal Form Page 1 of 2 Revision Date: February 2021 145
REVISION AND CORRECTION
SUBMITTAL FORM
CONTACT US
Alfred M. Stiff Professional Building
20 East Olive Street
Bozeman, MT 59715
phone 406-582-2260
fax 406-582-2263
planning@bozeman.net
www.bozeman.net/planning
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Memorandum
REPORT TO:City Commission
FROM:David Fine, Economic Development Program Manager
Brit Fontenot, Economic Development Director
Jeff Mihelich, City Manager
SUBJECT:Resolution 5370 A Resolution Approving a Project in the Northeast Urban
Renewal District, Known as Wildlands, as an Urban Renewal Project; Making
Findings with Respect Thereto and Approving the Use of Tax Increment
Revenues or Tax Increment Revenue Bonds to Reimburse Eligible Costs
Thereof and Approving a Related Development Agreement
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Resolution
RECOMMENDATION:I move to adopt Staff's findings in the Commission Memorandum and the
Staff Report to the Northeast Urban Renewal Board and approve Resolution
5370.
STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a
mechanism to encourage economic development.
BACKGROUND:Please see the attached Commission Memorandum and Staff Report to the
Northeast Urban Renewal District.
UNRESOLVED ISSUES:None at this time.
ALTERNATIVES:As suggested by the City Commission.
FISCAL EFFECTS:Please see the attached Commission Memorandum.
Attachments:
Commission Memorandum for Resolution 5370.docx
Staff Report to the NURD and Packet Material.pdf
Resolution 5370 approving Wildlands project.docx
BZN Development Agreement.Wild Peach.v7.docx
Affordable Housing Restrictive Covenant and Agreement
010622 v2.doc
Report compiled on: January 18, 2022
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Commission Memorandum
REPORT TO:Honorable Mayor and City Commission
FROM:David Fine, Economic Development Program Manager
Brit Fontenot, Economic Development Director
Jeff Mihelich, City Manager
SUBJECT:Public Hearing for Resolution 5370 - A Resolution Approving a Project in
the Northeast Urban Renewal District, Known as Wildlands, as an Urban
Renewal Project; Making Findings with Respect Thereto and Approving
the Use of Tax Increment Revenues or Tax Increment Revenue Bonds to
Reimburse Eligible Costs Thereof and Approving a Related Development
Agreement
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Action
RECOMMENDED MOTION:
I move to adopt Staff's findings in the Commission Memorandum and the Staff Report
to the Northeast Urban Renewal Board and approve Resolution 5370.
BACKGROUND:
The attached Staff Report to the Northeast Urban Renewal Board (“Board”) contains
significant detail about this project and the requested incentive. Please refer to the Staff Report
for this detail. At their December 16, 2021 meeting, the Board reviewed the Developer’s
application for tax increment financing (TIF) assistance and unanimously recommended that the
City Commission designate the Wildlands project as an urban renewal project and provide TIF
assistance in the amount of $583,445 to cover the eligible costs of the project. Staff negotiated
a development agreement for the consideration of the City Commission to implement this
recommendation.
Resolution 5370 designates the Wildlands Project as an Urban Renewal Project and
authorizes the City Manager to sign the proposed Development Agreement. The Resolution
approves using tax increment revenues or proceeds of tax increment revenue bonds to pay or
reimburse Wild Peach, LLC, as the developer of the project for up to $583,445 in certain eligible
costs of associated public infrastructure and demolition of existing structures. These costs are
detailed in Exhibit “C” of the Development Agreement. Pursuant to the proposed Development
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Agreement, the City agrees to reimburse the Developer for the eligible costs only after the
project has paid taxes for two full fiscal years, and then, would only reimburse the Wild Peach,
LLC using tax increment generated by the project (“Project Generated Tax Increment”) until the
Developer has been reimbursed $583,445, or five fiscal years, whichever comes first.
The Development Agreement includes a commitment by the Owner to create workforce
housing units. The Wildlands project itself includes 12 units of market rate housing, which with
the commitment of 3 workforce housing units in an adjacent project means that 20% of the
proposed new units would be priced as attainable rental units, or attainable owner occupied
units with restrictions on resale at the discretion of the Owner. The Development Agreement
requires that a covenant be placed on adjacent land controlled by the Owner requiring that 3
units of housing, which is affordable to residents making 120% of the area median income
(AMI), to be included in any project when the land is ultimately developed. The recording of this
covenant is a condition of the Owner receiving any TIF Assistance. These units would be deed
restricted to require long-term (30 year) affordability and the Agreement requires the Owner to
contract with an affordable housing agency to “provide initial and annual income qualification
of tenants, ongoing compliance monitoring, and an annual report to the Owner and City
demonstrating compliance with this Restrictive Covenant.” It is important to note that
Restrictive Covenant runs with the land and only requires the construction of the workforce
housing units when the land redevelops. In the event the land never redevelops, the workforce
housing units would not be constructed.
REQUIRED FINDINGS:
The Montana Urban Renewal Law requires, as a criterion for approval of an urban
renewal project, that the City Commission make the following findings. These findings are
included in Resolution 5303 in Section 3. Staff’s makes the conclusions regarding these findings.
a.A workable and feasible plan exists for making available adequate housing for the
persons who will be displaced from their housing by the Project;
No persons are displaced by the project.
b.The Plan and the Project conform to the Bozeman Community Plan or parts
thereof for the City as a whole;
The Project was found by Staff and the Northeast Urban Renewal Board to
conform with the Northeast Urban Renewal Plan (the “Plan), and the Plan has
been found by the Bozeman City Commission to be in conformance with the
Bozeman Community Plan.
c.The Plan and the Project will afford maximum opportunity, consistent with the
needs of the City as a whole, for the rehabilitation or redevelopment of the District
by private enterprise;
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The Project represents a significant investment by private enterprise in the
redevelopment on the District.
d.Taking into account the use of tax increment revenues or the proceeds of tax
increment revenue bonds to pay or reimburse the Developer for all or a portion
of the Eligible Costs, there is expected to be a sound and adequate financial
program for the financing of the Project; and
The Development Agreement only calls for reimbursing the Developer with tax
revenue that is actually generated by the project, which represents a sound
and adequate financial program.
e.The Project constitutes an urban renewal project within the meaning of the Act
and the Plan.
The Project was found by Staff and the Northeast Urban Renewal Board to
conform to the Northeast Urban Renewal Plan (the “Plan), and the Project
meets the requirements for an Urban Renewal Project under the Act.
FISCAL EFFECTS:
The Development Agreement stipulates that the City will reimburse Developer for Eligible Costs
not-to-exceed $583,445. Pursuant to the proposed Development Agreement, the City would
agree to reimburse the Developer for the eligible costs only after the project has paid taxes for
two full fiscal years, and then, would only reimburse the Wild Peach, LLC using tax increment
generated by the project (“Project Generated Tax Increment”) until the Developer has been
reimbursed $583,445, or five fiscal years, whichever comes first. Future budgets for the District
would need to include appropriations related to these payments in order to meet the City’s
obligations under this Development Agreement.
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Wildlands Mixed Use Development | Staff Report
To: Northeast Urban Renewal Board
From: David Fine, Economic Development Program Manager for Housing and Development
Brit Fontenot, Economic Development Director
Meeting Date: December 16, 2021
TIF Assistance Program Overview
The Bozeman City Commission created the Midtown Tax Increment Finance (TIF) Assistance Program in
2017 to support redevelopment activity and advance the goals of the 2015 Midtown Urban Renewal
Plan. The City Commission provided direction to Staff to create complementary programs for other
Urban Renewal Districts in the City. The Northeast Urban Renewal Board voted unanimously to
recommend just such a program for the Northeast Urban Renewal District (NURD) at their November 2,
2021 meeting. The Applicant structured their application based on the Board’s recommended program
in the absence of a City Commission approved application process. Staff is reviewing this application
based on the Board’s recommended criteria and framework in advance of final approval of the program
by the City Commission. In Staff’s opinion, this approach is superior to the ad-hoc approach by which
requests in this District have been submitted to the Board and to the City Commission for approval.
The Northeast TIF Assistance Program supports projects that contribute to the following seven goals of
the Northeast Urban Renewal Plan: 1) Ensure the health, safety, and security of the District, 2) Balance
Commerce and Livability within the Mixed-Use Framework, 3) Honor the Unique Character and Vitality
of the District, 4) Public Open Space is Essential to a Healthy and Appealing Urban Environment, 5) The
Costs of Projects and Programs shall be Weighed Against their Benefits to the District, 6) The City shall
not Limit its Vision for the District Improvements to Monies Available Solely through the TIF Funding, 7)
Projects shall Consider Impacts on Adjacent Neighborhoods.
These goals, as required by statute, focus on mitigating blighting conditions in the urban renewal area.
Each of these seven goals is further refined with particular criteria for a total of twelve categories that
can receive points. Point awards demonstrate specific compliance with the criteria, but are not the only
factors the board may consider in recommending an incentive award. For example, the board may also
consider new taxable value created by the project, whether the project would be feasible without a
public incentive, and the project’s provision of amenities and services that contribute to walkability,
quality of life in the district and surrounding neighborhoods, and provision of community housing.
Staff Recommendation
Staff Recommends providing TIF Assistance to the Project.
The Northeast TIF Assistance Program exists to promote projects that meet its criteria, drive growth in
taxable value for the long-term benefit of the wider community, and create demand for market driven
redevelopment. At this phase in the Northeast URD’s redevelopment lifecycle, few projects containing
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the targeted criterion elements are financially feasible, “but for” TIF incentives. Incentives may create
the potential for higher returns to mitigate higher risk, which will likely attract investment that would
not occur without these incentives.
The project does an excellent job of balancing commerce and livability within the mixed-use framework
of the District. It creates well-scaled ground floor commercial spaces for small businesses that can serve
the neighborhood and surrounding residents, including providing spaces for the expansion of two
neighborhood anchors, Wild Crumb Bakery and Fink’s Delicatessen. Ground floor commercial space in a
vertically mixed-use building is difficult to develop under normal market conditions, and recent
skyrocketing labor and construction costs are making it difficult to develop commercial space at rents
the market will bear. Rents for the commercial space are reasonable or below market and the provision
of this kind of space is essential to activating walkable neighborhoods.
The project remediates conditions that contribute to blight on the property. The Wildlands development
will demolish a “dilapidated abandoned building” and three deteriorating decommissioned fuel tanks.
Removing these hazards from the property creates a clear community benefit in the form of addressing
blight remediation, a core goal of urban renewal activity.
The project advances Bozeman’s Community Housing Action Plan (CHAP) through a legally binding
commitment to develop three units of workforce housing in another Outlaw Real Estate Partners
controlled site within the NURD. The CHAP classifies units at 120% AMI as “Entry Level Subsidized
Housing”. The Wildlands project itself includes 12 units of housing, which with the commitment of 3
units in the adjacent project means that 20% of the proposed new units would be priced at an attainable
level. The Board and the City Commission had not created any criteria related to affordability for the
Northeast Urban Renewal District at the time this project was conceived and designed. While it is true
that the housing units provided in the Wildlands project are priced at very high levels, draft affordability
criteria were only provided to the Applicant recently to provide a structure to their application for
assistance. As a result, it would not be reasonable to assume that the project would be designed to
meet affordability targets the Applicant could not have been aware of as they designed their project. As
such, the commitment of attainable units in a future NURD project represents a good-faith effort by the
Applicant to serve evolving community priorities.
The proposed incentive request of $583,445 is consistent with the goals of the Northeast Urban
Renewal Plan. With a project cost of $20.8M this represents a ratio of private to public investment of
35.65:1. This produces an outstanding ROI for the District. In order to ensure that the level of assistance
makes the project feasible, but does not provide unreasonable returns to the developer, staff hired
Economic and Planning Systems, Inc. (EPS) to provide a third party assessment of the development pro
forma. Staff contracts for this component of the review process to assess the reasonableness of each
Applicant’s incentive request. EPS concluded their analysis and found that the Applicant did
demonstrate a significant financing gap for the project. EPS also flagged three public policy issues for the
Board, and ultimately, the City Commission to consider in making a funding determination for this
project. EPS’ “Review of Wildlands Project Financial Performance” is attached for review.
The Wildlands project creates significant new taxable value. A primary goal of districts which employ a
tax increment financing provision is to facilitate new investment and the creation of new taxable value
for the long-term benefit of the broader community. The Applicant projects that the project will create
$209,754 in net new taxable value each year. For context, we estimated the total value of tax increment
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collections for the NE URD in FY22 at $270,000. A project of this significance would have a major impact
on growth of the tax base and on the ability of the District to implement future improvements.
The Wildlands project received points on criteria representing 6 out of 7 of the goals of the Northeast
Urban Renewal Plan, creates a significant return on investment that can fund future public
infrastructure improvements in the District, and includes a commitment to create three entry level
subsidized ownership housing units in a future NURD development. Given the satisfaction of these
public policy goals, Staff recommends approval of the full funding request.
Criteria for TIF Assistance
Ensure the Health Safety and Security of the District
1. Infrastructure Improvement: Infrastructure Improvement: The project will repair, replace, or
improve outdated or insufficient infrastructure
i. The project improves an alley adjacent to the project with curb, gutter, sidewalks and
lighting. 2/6
2. Multimodal Transportation: The project incorporates infrastructure that facilitates safe,
efficient, and convenient access of the district for all modes of transportation
i. The project removes 3 curb cuts on Peach St. which will improve walkability and
enhance safety for pedestrians, cyclists and micro mobility users by limiting mid-block
vehicular access to the street. 1/4
3. Public Utilities: The project will incorporate public utilities in a way so that they are not visually
or physically obtrusive
i. The project buries and screens public utilities. 2/2
Balance Commerce and Livability within the Mixed-Use Framework
4. Mix of Uses: The project incorporates mixed use development that promotes livability.
i. The project mixes uses vertically with a vibrant mix of ground floor commercial uses
including bakery, deli and fitness uses, with housing above those uses. 4/4
5. Community Housing: The project includes affordable housing units. For the purposes of this
criterion, an affordable housing unit is defined as a unit that requires no more than 33 percent
of a household’s income for housing payments based on a designated percentage of area
median income (AMI). Eligible rental units shall be affordable at 70% AMI and eligible for sale
units shall be affordable at 90% AMI. Condominium units are eligible as for sale units. Additional
points may be awarded for projects that provide on-site housing for the proposed workforce.
Eligible rental dwellings to be constructed in the proposed residential development shall be
provided by long-term contractual obligation to an affordable housing agency, for a period of
not less than 20 years, with a written plan assuring ongoing affordability pricing and eligibility
monitoring, and annual re-certification. The city's affordability guidelines and subsequent
revisions establish affordability and eligibility. To receive 3 points under this criterion, 10% of all
units must meet the affordability criteria. To receive 6 points under this criterion, 20% of all
units must meet the affordability criteria.
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i. The project includes 12 units of housing on site and 3 units at an adjacent site. The three
units, which will be developed as part of another project, will be sold at a price that is
affordable to households making 120% of the Area Median Income (AMI), what
Bozeman’s Community Housing Action Plan calls “Entry Level Subsidized Housing”. As a
result, 20% of the proposed new units would be priced at an attainable level. No units
are proposed for affordability at the rates suggested by this criterion. 0/6
Honor the Unique Character and Vitality of the District
6. Character: The physical design, materials, and massing of the project reflects the community’s
values of durability, flexibility, and simplicity, and add vitality to the neighborhood.
i. Staff concurs with the Applicant’s description of how the project meets the Character
criterion 2/2:
The physical design, materials, and massing of the project reflects the community’s values of
durability, flexibility, and simplicity, and preserves historic assets and character of the
Neighborhood.
An infill building has the opportunity to add more context and neighborhood language. In
designing Wildlands we purposely kept the scale to three stories instead of the allowed four
stories to better relate to the existing building where the iconic business of Wild Crumb is
located. With a new three story addition, the design had a welcoming space carved out at the
first floor adjacent to the existing restaurant and bakery to welcome pedestrians and patrons
and to create a vitality to the neighborhood for continued conversation and friendships.
For materiality, to create a sense of importance, relation to existing, and a plinth, brick was used
on the first floor for the commercial spaces. The brick allows for a historic feel and relevance to
adjacent buildings and other more prominent buildings around town and the area. As the
materials continue vertical the second and third floors are a low maintenance wood product that
silvers without streaks over time to allow the building to age gracefully with a soft palette that
blends into the unique neighborhood that is the North East Neighborhood.
The overall shape outside of the height creates a frontage to the street to create more activity on
the street edge without overpowering the neighbors in scale and proximity. The building is a “z”
shape surrounding the existing structure and pulls off the alley side from the other existing
buildings on that corner to create separate parking and visual access. This is important for an
infill project to allow for “negative” three dimensional space, it adds density, but does it in a way
that doesn’t overpower all the existing properties. (p.12)
7. Sustainability: The project’s design and construction practices incorporate environmentally
sustainable strategies and elements
i. The project incorporates solar panels, low/no maintenance exterior materials, and a
high level of insulation to maintain energy efficiency. 2/2
Public Open Space is Essential to a Healthy and Appealing Urban Environment
8. Open Space: The project designates new land for parks and open space
i. The project adds street trees along the Peach St. and Wallace Ave. frontages and
expands the publically accessible plaza along the Wallace St. frontage. 1/4
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9. Landscaping: The project improves landscaping in existing public spaces
i. The project enhances the landscaping along the Peach St. and Wallace Ave. frontages.
2/2
The Costs of Projects and Programs shall be Weighed Against their Benefits of the District
10. Return on Investment: The investment of public funds in the project results in a leverage ratio
of at least 10:1 for residential projects; 8:1 for commercial/industrial projects; and/or 5:1 for
living wage jobs.
i. The Applicant is requesting $583,445 in TIF Assistance on a project with a total cost of
$20.8M, a 35.65:1 ratio of private to public investment. This produces an outstanding
ROI for the District. 4/4
The City shall not Limit its Vision for the District Improvements to Monies Available Solely
through the TIF Funding
11. Public-Private Partnerships: This project involves and/or will encourage public-private
partnerships that will add value to the District and its investments.
i. The Applicant did not provide enough information to award points for this criterion. 0/4
Projects shall Consider Impacts on Adjacent Neighborhoods
12. Complimentary to Adjacent Neighborhoods: The project is complimentary to adjacent
neighborhoods, not just the Northeast Urban Renewal District. 2/2
i. The project provides neighborhood scale food, fitness and retail spaces that can serve
surrounding residents, including maintaining 2 iconic local businesses as tenants.
The project received more than half of the available points and received points on criteria meeting 6 of 7
urban renewal plan goals.
Total Points: 24/42
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213051-Wildlands TIF Memo 12-07-2021.docx
M EMORANDUM
To: David Fine, City of Bozeman
From: Brian Duffany and Colton Harguth
Subject: Review of Wildlands Project Financial Performance
Date: December 7, 2021
This memorandum provides a summary of the analysis Economic &
Planning Systems (EPS) has completed on the proposed Wildlands
project. This information is intended to be used by City Staff and the
Northeast Urban Renewal District Board in considering the applicant’s
request for financial assistance from tax increment financing (TIF).
Approach
As part of the TIF application process, each project developer is required
to submit a formal proposal that includes a project overview and cost
and revenue estimates. These materials include a summary of the
development program, construction costs, eligible costs for TIF
reimbursement, sales revenues, and any ongoing revenue and
expenditure assumptions. Using this information as a starting point, EPS
has structured a proforma analysis to gauge the project’s financial
feasibility.
The proforma analysis is a “but for” test: “but for” the incentive award,
would the project proceed? The financial performance of the project is
however only one consideration the Board may use in awarding TIF. The
Board has the discretion to make, reduce, or deny an award based on
other public benefit and policy criteria.
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Bozeman TIF Review: Wildlands Page 2
Project Description
The proposed project is to renovate an existing commercial building in conjunction with
developing 12 residential condominiums. The site is improved with 4,500 square foot two story
commercial building with a basement occupied by Wild Crumb Bakery and Finks Delicatessen,
two long-time Bozeman businesses. The existing building will be renovated, and a third story
addition will be added for residential condominiums. The basement will be converted to storage
and office space for Wild Crumb. The remainder of the site will be developed with residential
condominiums and ground floor mixed use commercial space.
Wild Crumb and Finks will stay in the new project. The developer has indicated they would pay
below market rent estimated at $18.00 per square foot compared to about $25.00 to $30.00 per
square foot market rent for newer commercial space in this area.
The residential condominiums are targeting the luxury end of the market with sale prices ranging
from $750 to $875 per square foot, or $1.4 to $2.0 million per unit and an average of $1.6
million. These prices are more than double the current median single family home price of
approximately $700,000. Appreciation rates have been above 10 percent per year.
The developer has already acquired the site and spent considerable money on design and
construction documents and is bidding out construction pricing for a possible 2022 start.
TIF Request
The developer has requested $583,445 in financial assistance to offset the public improvement
and redevelopment costs, as shown in Table 1, consistent with the TIF Policy on eligible costs.
Table 1. TIF Request by Improvement Type
Improvement Type TIF Request
Demolition of Existing Structures $98,000
Sidewalks, curbs, gutters, and alley $250,000
CILWR $14,195
Public/Utility Infrastructure $30,000
Communications Infrastructure Fiber $20,000
Impact Fees $171,251
Total TIF Request $583,445
Source: Developer Financial Documents; Economic & Planning Systems
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Bozeman TIF Review: Wildlands Page 3
Project Assumptions
This section summarizes the development program and key assumptions submitted by the
development team.
Development Program
Location: Northeast corner of Peach & Wallace; 600 N. Wallace and 629 E. Peach St.
Parcel Area: 0.73 acres, 31,799 sq. ft.
Stories: Three stories (two stories above grade level podium parking)
Total Building Area: 52,407 gross building area; 36,272 net saleable and leasable
Commercial Program: 12,375 sq. ft. in five commercial spaces (three new, two existing). The
commercial space is approximately 34 percent of the net saleable/leasable floor area.
For-Sale Residential Condos: 8 one bedroom and 4 two-bedroom units, 12 total
Project Costs (Summarized in Table 2)
The total cost of the project is estimated at $21.8 million. This includes $3.5 million to acquire
the site and existing building.
Site Acquisition
Total: $3,459,000
Cost per Land SF: $109 per square foot of land; $95 per sale/leasable sq. ft.
Cost per Unit: $288,000 per residential unit
Percent of Total Costs: 15.9 percent of total
Comments: Land costs typically range from 10 to 20 percent of total project costs depending on
the development type and local market. These costs are within that range, however this is a
costly site acquisition at over $100 per square foot and $288,000 per residential unit. The high
costs are the result of acquiring an existing building with two viable and operating businesses.
For the existing 4,500 square foot building, the site purchase equates to $767 per square foot of
building area.
Hard Costs
Total: $15,050,395
Cost per Square Foot (GBA): $287; $415 per sq. ft. per sale/leasable sq. ft.
Comments: The residential units are luxury units and will have a high level of finish.
Construction costs have also been high during the pandemic. The most recent construction cost
estimate provided by the developer on November 17, 2021, increased about 5.0 percent from
the original cost estimate. Development costs have been high for all product types during the
pandemic due to material supply chain and labor shortages.
Soft Costs
Total: $3,257,658
Percent of Hard Costs: 15.0 percent
Comments: The list of soft costs and their amounts appear reasonable and fall within an
expected range of 15 to 25 percent of hard costs.
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Table 2. Project Construction Cost Summary
Description Total Cost per GSF Cost per RSF % of Total
LAND COSTS
Land & Building Cost / Acquisition 3,459,000$ 66.00$ 95.36$ 15.9%
Purchase Contract $3,400,000 total 1.0 unit 3,400,000$ 64.88$ 93.74$ 15.6%
Acquisition Costs $59,000 total 1.0 unit 59,000$ 1.13$ 1.63$ 0.3%
TOTAL ACQUISITION COST 3,459,000$ 66.00$ 95.36$ 15.9%
Hard Costs
Hard Costs 15,050,395$ 287.18$ 414.93$ 69.1%
Hard Costs $15,050,395 total 1.0 unit 15,050,395$ 287.18$ 414.93$ 69.1%
TOTAL HARD COST 15,050,395$ 287.18$ 414.93$ 69.1%
Soft Costs
Soft Costs 3,257,658$ 62.16$ 89.81$ 15.0%
General Soft Costs $1,293,745 total 1.0 unit 1,293,745$ 24.69$ 35.67$ 5.9%
General and Administrative $700,591 total 1.0 unit 700,591$ 13.37$ 19.31$ 3.2%
Marketing $100,000 total 1.0 unit 100,000$ 1.91$ 2.76$ 0.5%
Contingency $752,519 total 1.0 unit 752,519$ 14.36$ 20.75$ 3.5%
Interest Reserve $286,663 total 1.0 unit 286,663$ 5.47$ 7.90$ 1.3%
Loan Fees $124,140 total 1.0 unit 124,140$ 2.37$ 3.42$ 0.6%
TOTAL SOFT COST 3,257,658$ 62.16$ 89.81$ 15.0%
TOTAL CONSTRUCTION COST 18,308,062$ 349.34$ 504.74$ 84.1%
TOTAL COST 21,767,053$ 415.35$ 600.11$ 100.0%
Source: Developer Financial Documents; Economic & Planning Systems
Factor Unit
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Project Revenues
The development will have two sources of revenue: sale of the residential condominiums and
leasing and the sale of the commercial mixed-use space (or value of the income stream).
Residential Sales: $19,454,275 (Table 3)
Comments: The financial analysis assumes that all 12 units are sold within a year of
construction. Estimated pricing in the application ranges from $750 to $875 per square foot.
Table 3. Residential Sales Revenues
Commercial Revenues: $18.00 to $27.50 per square foot in annual rent resulting in $219,745
in annual net operating income. The value of the space at stabilized occupancy is estimated at
$3.23 million using a 6.80 percent capitalization rate, as shown in Table 4. Retail capitalization
rates across Denver, Seattle, and the Western U.S. range from 5.25 to 7.50 percent, and
average roughly 6.30 percent according to CBRE and Integra Realty Resources. EPS applied an
upward adjustment of 50 basis points to reflect the small size of the Bozeman market to bring
the total retail capitalization rate to 6.80 percent, as shown in Table 5.
Description Total
RESIDENTIAL REVENUE
Residential Property Sales $19,454,275
Unit 1 $750 psf 1,912 sf $1,434,000
Unit 2 $750 psf 1,619 sf $1,214,250
Unit 3 $800 psf 2,237 sf $1,789,600
Unit 4 $800 psf 1,841 sf $1,472,800
Unit 5 $800 psf 2,001 sf $1,600,800
Unit 6 $800 psf 1,976 sf $1,580,800
Unit 7 $800 psf 1,798 sf $1,438,400
Unit 8 $800 psf 2,319 sf $1,855,200
Unit 9 $850 psf 2,236 sf $1,900,600
Unit 10 $850 psf 1,817 sf $1,544,450
Unit 11 $875 psf 1,830 sf $1,601,250
Unit 12 $875 psf 2,311 sf $2,022,125
Source: Developer Financial Documents; Economic & Planning Systems
Factor Unit
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Table 4. Commercial space rents and valuation
Table 5. Retail Capitalization Rate Estimate
Type Total % of Total
REVENUE Rentable SF Lease Rate
Potential Gross Income 5 units 12,375 unit sf $18.98 yer year 234,833$ 100.0%of PGI
Shell A 1 1,708 $27.50 46,970$ 20.0%of PGI
Shell B 1 882 $27.50 24,255$ 10.3%of PGI
Shell C 1 1,213 $27.50 33,358$ 14.2%of PGI
Wild Crumb/Finks 1 4,200 $18.00 75,600$ 32.2%of PGI
Basement 1 4,372 $12.50 54,650$ 23.3%of PGI
Less: Vacancy 5.0%per year (11,742)$ -5.0%of PGI
EFFECTIVE GROSS INCOME (EGI)223,091$ 95.0%of PGI
EXPENDITURES Units Factor
Operating Expenditures $223,091 EGI 1.50%of EGI (3,346)$ 1.5%of EGI
Management $223,091 EGI 1.50%of EGI (3,346)$ 1.5%of EGI
TOTAL OPERATING EXPENDITURES (3,346)$ 1.5%of EGI
NET OPERATING INCOME 219,745$ 98.5%of EGI
COMMERCIAL DISPOSITION REVENUE 6.8%cap rate 3,231,537$
Source: Developer Financial Documents; Economic & Planning Systems
Suburban Class B Retail Rate
Source:
CBRE (Denver)5.25%
CBRE (Seattle)5.50%
Integra Realty Resources (Denver)7.50%
Integra Realty Resources (Seattle)6.75%
Integra Realty Resources (West)6.34%
Average 6.27%
Small Market Adjustment 0.50%
EPS Estimate 6.80%
Source: CBRE; Integra Realty Resources; Economic & Planning Systems
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Cash Flow Analysis Project Return
The performance of the project is evaluated with two approaches: on a static basis and with a
time series cash flow. In the static analysis, we estimate return on investment (ROI), calculated
as net revenues divided by total costs. In the time series evaluation, we examine the Internal
Rate of Return (IRR).
Static Analysis: Return on Investment
Evaluating the project from a static perspective is a simple evaluation of a project’s financial
performance. It is appropriate for small projects with a short development timeline. This method
compares the total project costs to the project’s net revenues. The total value of the project is
calculated by netting the condo sales revenues (after sales commissions) and the value of the
commercial space (capitalized NOI) against total project costs.
For this project an ROI target of 10.0-15.0 percent is used. As shown in Table 6, the total
project revenues and value are $22.7 million compared to costs of $21.8 million yielding a profit
of $919,000 or an ROI of 4.22 percent. This falls far below the target of 10 to 15 percent
indicating that the project is unlikely to proceed, or if it does will not generate the desired
financial returns.
The feasibility of this project is sensitive to factors such as costs and appreciation in the
residential market. If costs come down by 5.0 percent or if residential sale prices can be
increased by 5.0 percent (or 2.5 percent each), the feasibility improves to an estimated ROI of
13.38 percent, which may be sufficient to move forward. However, this sensitivity analysis is
speculative. The cost and revenue analysis is based on the best available information and
judgement at this time.
Table 6. Static financial performance and impact of residential sale price appreciation
Description Baseline Metrics
1 percent
Escalation
1.5 percent
Escalation
2 percent
Escalation
5 percent
Escalation
Revenues $22,685,812 $23,076,843 $23,273,817 $23,471,765 $24,679,875
Residential Sales $19,454,275 $19,845,306 $20,042,280 $20,240,228 $21,448,338
Commercial Value $3,231,537 $3,231,537 $3,231,537 $3,231,537 $3,231,537
Total Costs $21,767,053 $21,767,053 $21,767,053 $21,767,053 $21,767,053
Net Revenue $918,759 $1,309,790 $1,506,764 $1,704,711 $2,912,822
Return on Investment 4.22%6.02%6.92%7.83%13.38%
Source: Developer Financial Documents; Economic & Planning Systems
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Time Series Cash Flow
The IRR is the percentage rate earned on each dollar invested for each period it is invested. The
IRR is used by investors to compare alternative investments based on their rates of return.
Mathematically, the IRR is the discount rate that results in a net present value (NPV) equal to
zero. The IRR is a useful metric because it can be compared to the expected return from other
investment opportunities such as stocks or bonds or other real estate projects, or the rate of
return an investor/developer needs to justify the risk of a project (the “hurdle rate”).
The financing terms of a project can affect the returns to an equity investor, so it is appropriate
in some cases to examine the project without debt financing (on an unleveraged basis). For
unleveraged investments, we look for an unleveraged IRR in the 10 percent range. This
translates to a leveraged IRR in the mid to upper teens percentages. This hurdle is subjective
and depends on the investor’s perception of risk in the market and the requirements of their
equity investors. EPS selected a hurdle rate of 9.5 percent based on the Weighted Average Cost
of Capital (WACC) assuming a typical project financing mix, shown in Table 7.
Table 7. Weighted Average Cost of Capital and IRR Hurdle Rate
Before any public investment, the project has an estimated IRR of 6.88 percent, as shown in
Table 8. At a 9.50 percent hurdle rate or discount rate, the feasibility gap of the project is
approximately $640,000 (-$642,356 rounded). If the Board awarded the requested $583,000 it
would result in an 8.71 percent IRR and make the project more attractive but still below the 9.5
percent hurdle rate.
Sensitivity Testing
The time series proforma is also sensitive to some key assumptions. Similar to the static profit
analysis, an increase in residential sale prices or reduction in costs moves the IRR upward closer
to the 10.0 percent threshold. A five percent increase in sale prices or reduction in costs – or 2.5
percent each – results in an estimated IRR of 13.70 percent as shown in Table 9. In addition,
we evaluated the timing of selling the mixed-use portion of the project. The developer indicated
a potential holding period of five years or longer. If the space can be leased and sold within 3
years, the IRR increases to 8.50 percent independent of the scenarios on residential price
increases or cost reductions.
Description Equity Debt Combined Selected Rate
Financing 35.00%65.00%100.00%
15.00%5.00%8.50%
17.50%5.00%9.38%9.50%
20.00%5.00%10.25%
Source: Economic & Planning Systems
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Table 8. Time Series Cash Flow
2021 2022 2023 2024 2025 2026DescriptionFactorEs c.Total Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
DEVELOPMENT COSTS
% Construction CostLand & Building Cost / Acquisition 100%100.0%0.0%0.0%0.0%0.0%0.0%
Hard Costs 100%0.0%75.0%25.0%0.0%0.0%0.0%
Soft Costs 100%0.0%75.0%25.0%0.0%0.0%0.0%
Construction Cost -$21,767,053 -$3,459,000 -$13,731,040 -$4,577,013 $0 $0 $0
Land & Building Cost / Acquisition $3,459,000 0.0%-$3,459,000 -$3,459,000 $0 $0 $0 $0 $0
Hard Costs $15,050,395 0.0%-$15,050,395 $0 -$11,287,796 -$3,762,599 $0 $0 $0
Soft Costs $3,257,658 0.0%-$3,257,658 $0 -$2,443,244 -$814,415 $0 $0 $0
Total Costs -$21,767,053 -$3,459,000 -$13,731,040 -$4,577,013 $0 $0 $0
PROJECTED PROPERTY SALES REVENUE
Revenue $14,286,450 $0 $0 $19,454,275 $0 $0 $3,481,269
Residential
Unit 1 $1,434,000 0.0%$1,434,000 $0 $0 $1,434,000 $0 $0 $0Unit 2 $1,214,250 0.0%$1,214,250 $0 $0 $1,214,250 $0 $0 $0Unit 3 $1,789,600 0.0%$1,789,600 $0 $0 $1,789,600 $0 $0 $0
Unit 4 $1,472,800 0.0%$1,472,800 $0 $0 $1,472,800 $0 $0 $0
Unit 5 $1,600,800 0.0%$1,600,800 $0 $0 $1,600,800 $0 $0 $0
Unit 6 $1,580,800 0.0%$1,580,800 $0 $0 $1,580,800 $0 $0 $0
Unit 7 $1,438,400 0.0%$1,438,400 $0 $0 $1,438,400 $0 $0 $0
Unit 8 $1,855,200 0.0%$1,855,200 $0 $0 $1,855,200 $0 $0 $0
Unit 9 $1,900,600 0.0%$1,900,600 $0 $0 $1,900,600 $0 $0 $0Unit 10 $1,544,450 0.0%$1,544,450 $0 $0 $1,544,450 $0 $0 $0
Unit 11 $1,601,250 0.0%$1,601,250 $0 $0 $1,601,250 $0 $0 $0
Unit 12 $2,022,125 0.0%$2,022,125 $0 $0 $2,022,125 $0 $0 $0
Commercial
Shell A $696,308 0.0%$696,308 $0 $0 $0 $0 $0 $696,308
Shell B $341,846 0.0%$341,846 $0 $0 $0 $0 $0 $341,846Shell C $483,888 0.0%$483,888 $0 $0 $0 $0 $0 $483,888Wild Crumb/Finks $1,143,073 0.0%$1,143,073 $0 $0 $0 $0 $0 $1,143,073
Basement $816,153 0.0%$816,153 $0 $0 $0 $0 $0 $816,153
Cost of Sale -$229,355 $0 $0 -$194,543 $0 $0 -$34,813
Residential and Commercial 1.00%-$229,355 $0 $0 -$194,543 $0 $0 -$34,813
Project Net Sale Revenue $22,706,189 $0 $0 $19,259,732 $0 $0 $3,446,457
NET OPERATING INCOME
% Leased (Excluding general vacancy)55%55%100%100%100%100%
Revenue
Potential Gross Income $234,833 1.5%per year $129,158 $131,095 $241,930 $245,559 $249,243 $252,981
Stabilized Vacancy Loss 5.0%$0 $0 -$12,097 -$12,278 -$12,462 -$12,649Effective Gross Income $129,158 $131,095 $229,834 $233,281 $236,781 $240,332
Operating Expenses -$1,937 -$1,966 -$3,448 -$3,499 -$3,552 -$3,605
Management Fee -$1,937 -$1,966 -$3,448 -$3,499 -$3,552 -$3,605
Net Operating Income $127,221 $129,129 $226,386 $229,782 $233,229 $236,727
PROJECT CASH FLOWSNet Project Cash Flows $2,121,609 -$3,331,779 -$13,601,911 $14,909,105 $229,782 $233,229 $3,683,184
Construction Cost -$21,767,053 -$3,459,000 -$13,731,040 -$4,577,013 $0 $0 $0
Project Net Sale Revenue $22,706,189 $0 $0 $19,259,732 $0 $0 $3,446,457
Net Operating Income $1,182,474 $127,221 $129,129 $226,386 $229,782 $233,229 $236,727
Discount Rate
Net Present Value (2021)9.50%-$642,356 -$3,331,779 -$12,421,837 $12,434,357 $175,014 $162,228 $2,339,660
Internal Rate of Return 6.88%
PROJECT CASH FLOWS WITH PUBLIC SUBSIDYNet Project Cash Flows $2,705,055 -$3,331,779 -$13,485,222 $15,025,794 $346,471 $349,918 $3,799,873
Revenue -$21,767,053 -$3,459,000 -$13,731,040 -$4,577,013 $0 $0 $0
Effective Gross Income $22,706,189 $0 $0 $19,259,732 $0 $0 $3,446,457
Internal Rate of Return $1,182,474 $127,221 $129,129 $226,386 $229,782 $233,229 $236,727
TIF Revenue $583,445 $0 $116,689 $116,689 $116,689 $116,689 $116,689
Net Present Value (2021)9.50%-$194,304 -$3,331,779 -$12,315,271 $12,531,677 $263,891 $243,394 $2,413,784Internal Rate of Return 8.71%
Source: Developer Financial Documents; Economic & Planning Systems
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Table 9. IRR Sensitivity Testing
Sensitivity Analysis | Net Present Value (NPV) Without Subsidy
8%9%10%11%12%
Baseline -283,435 -525,426 -756,674 -977,749 -1,189,183
Residential 1% Escalation 48,458 -199,594 -436,740 -663,553 -880,572
Residential 1.5% Escalation 215,643 -35,462 -275,579 -505,283 -725,116
Residential 2% Escalation 383,654 129,480 -113,622 -346,231 -568,892
Residential 5% Escalation 1,409,057 1,136,154 874,832 624,493 384,576
Commercial Sales 2024 106,873 -104,089 -307,279 -503,034 -691,675
Sensitivity Analysis | IRR vs. Hurdle Rate Without Subsidy
Calculated IRR 8%9%10%11%12%
Baseline 6.88%-1.12%-2.12%-3.12%-4.12%-5.12%
Residential 1% Escalation 8.19%0.19%-0.81%-1.81%-2.81%-3.81%
Residential 1.5% Escalation 8.86%0.86%-0.14%-1.14%-2.14%-3.14%
Residential 2% Escalation 9.53%1.53%0.53%-0.47%-1.47%-2.47%
Residential 5% Escalation 13.70%5.70%4.70%3.70%2.70%1.70%
Commercial Sales 2024 8.50%0.50%-0.50%-1.50%-2.50%-3.50%
Source: Developer Financial Documents; Economic & Planning Systems
ScenarioScenarioDiscount Hurdle Rate
Hurdle Rate Comparison
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Recommendations
The purpose of this analysis is to determine if the project has a financing gap and if there are
policy reasons or public benefits that justify the awarding of a tax increment financing incentive.
It is best practice in EPS’ opinion to consider the financial performance of a project prior to
granting any subsidy. If the incentive is making an already profitable project more profitable,
than the incentive may not be justified unless there are other public benefits. Conversely, even if
a project has a financing gap that should not always be the sole reason for a public investment:
there needs to be public benefit.
The financial analysis above shows that this project has a financing gap. The analysis shows that
the project is not likely to result in a net loss, but the financial returns may not be high enough
for a developer to want to proceed. The ROI is estimated at 4.22 percent compared to a target of
10 to 15 percent. The IRR is estimated at 6.88 percent, well below a hurdle rate of 9.5 percent.
Despite the financing gap, EPS encourages the City to consider the following public policy issues
in making a determination regarding the provision of TIF assistance to this project.
1. The project itself does not provide any affordable or attainable housing.
The average price in the development is $1.6 million. EPS does not recommend that the City or
Northeast Urban Renewal District invest in a project building units priced more than double the
current median price in the City. While the Wildlands project itself does not include any
affordable or attainable housing units, the Applicant is committing to three attainable units as
part of a future project, making 20% of proposed new units priced at an attainable level.
2. The project design or site limitations may contribute to the feasibility gap.
The fact that there is a financing gap on a project with sale prices averaging over $800 per
square foot may indicate a larger issue with the design of the project and yield on the site
(number of units possible). It is likely that there are not enough residential units to cross
subsidize the mixed use space which is not feasible at the costs in this proposal.
Ground floor commercial mixed use space is often a “loss leader” in residential mixed use
projects but creates an amenity that helps to anchor the project. The market rents in the $25 to
$30 range support very roughly, using the “rule of 10s”, costs in the $250 to $300 per square
foot range compared to the costs of over $400 per square foot of gross building area.
EPS does not recommend that TIF be used to cure a design, site or zoning constraint like this. In
EPS’ opinion, TIF is more appropriately used for addressing physical or redevelopment
constraints such as a lack of utilities, contamination, demolition, other conditions of blight, or to
provide affordable housing.
3. If costs decrease or the residential units can be sold for more, the feasibility of
the project will improve.
Construction costs are at record highs due to material and labor shortages related to the COVID-
19 pandemic. Lumber prices are roughly double pre-pandemic prices. These costs are affecting
all types of development nationally, affecting developers, builders, and end users and home
buyers. Some projects are choosing to delay construction until prices come down. If as hoped
and expected prices moderate the feasibility of this project will improve. In addition, the
developer may be able to increase prices slightly due to the strong appreciation and continued
supply constraints in the Bozeman market.
181
REAL ES T A T E I NV E STO R S U PD A T E
WILDLANDS
WILD PEACH, LLC
MIXED USE DEVELOPMENT
BOZEMAN MIDTOWN TIF ASSISTANCE REQUEST
PROPERTY ADDRESS:
600 N. Wallace and 629 E. Peach St., Bozeman,
MT 59715
LEGAL DESCRIPTION:
NORTHERN PACIFIC ADD, S06, T02 S, R06 E, BLOCK 106, Lot 27
- 32, ACRES 0.489, PLAT C-23-A12 NORTHERN PACIFIC ADD,
S06, T02 S, R06 E, BLOCK 106, Lot 24 - 26
SEPTEMBER 2021 | OUTLAW REAL ESTATE PARTNERS
PAGE 1 182
P R OJ EC T SU M M AR Y
This is a Conceptual Review application for advice and comments on a mixed-use
development on a 0.73-acre Site in the northeast portion of the City. This development
entails the following actions:
1. Demolition of a circa-1954, 1,852 square feet (sf) warehouse, underground storage
tank, above-ground storage tanks and parking lot addressed as 615 E. Peach Street;
2. Lot aggregation through a subdivision exemption process to create one lot “Site”;
3. Renovation of a 4,500 sf, 2-story-plus basement commercial building by converting
a. 2nd floor office suite to two 2-bedroom dwelling units;
4. Conversion of the existing basement level to storage and accessory office space
for the bakery tenant in the first floor level;
5. New construction of a 3-story addition to the existing 2-story commercial building
at 600 N. Wallace Ave consisting of:
a. Ground floor restaurant, retail space and entrance and accessory uses and spaces
for the upper-level residences;
b. Fifty-six at-grade parking for commercial and residential uses of the Site;
c. Three on-street parking spaces attributed to on-site dwelling units;
d. Second level dwelling units and office space and a common open space plaza;
e. Third level residences; and rooftop deck
PAGE 2
WILDLANDS
WILD PEACH, LLC
MIXED USE DEVELOPMENT
183
P A R T 1
PROPERTY INFORMATION
APPLICANT INFORMATION
COMPANY PROFILE
PROJECT INFO & DETAIL
CRITERIA FOR TIF ASSISTANCE
PROJECT NARRATIVE
MAPS, EXHIBITS, PLANS
PAGE 3
WILDLANDS
WILD PEACH, LLC
MIXED USE DEVELOPMENT
184
PROPERTY & APPLICANT INFO
Property Address:
Legal Description:
Property Owner
& Developer:
Project
Representative:
600 N. Wallace and 629 E. Peach St.,
Bozeman, MT 59715
NORTHERN PACIFIC ADD, S06, T02 S,
R06 E, BLOCK 106, Lot 27 - 32, ACRES
0.489, PLAT C-23-A12 NORTHERN
PACIFIC ADD, S06, T02 S, R06 E, BLOCK
106, Lot 24 - 26
Outlaw Real Estate Partners
Eric Ladd
406-570-0639
eric@theoutlawpartners.com
45 Architecture
Jeff Lusin
406-577-2345
jlusin@45arch.com
PAGE 4
WILDLANDS
WILD PEACH, LLC
MIXED USE DEVELOPMENT
185
PAGE 5
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WILD PEACH, LLC
MIXED USE DEVELOPMENT
186
C O M PA N Y P R OF I L E
Business Location:
600 N. Wallace Avenue and 615/629 E. Peach Street. The property is legally described
as Lots 27 to 32, Block 106 (600 N. Wallace Avenue) and Lots 24 to 26, Block 106
(615/629 E. Peach St.), Northern Pacific Addition, S06, T02 S, R06 E.
The lot with the warehouse is listed as 615 E. Peach Street on the City’s Historic Survey
report for the property and is listed as 629 on the Assessor’s datum.
The Site lies within the North East Historic Mixed Use District (NEHMU) and the
Neighborhood Conservation Overlay District (NCOD).
Year Business Established:
2019
Type of Business:
Outlaw Real Estate Partners is a new development company establishing itself.
Outline Business Plan:
See following pages for Development revenue, tax generation, source, and use of funds.
(Please note these are the best estimates and projections at this time)
WILDLANDS
WILD PEACH, LLC
MIXED USE DEVELOPMENT
PAGE 6 187
PRO J E C T I N F O & DE T A I L S
Project: Wildlands Mixed Use
Site:
600 N. Wallace Avenue and 615/629 E. Peach Street. The property is legally described as Lots 27 to 32,
Block 106 (600 N. Wallace Avenue) and Lots 24 to 26, Block 106 (615/629 E. Peach St.), Northern Pacific
Addition, S06, T02 S, R06 E.
The lot with the warehouse is listed as 615 E. Peach Street on the City’s Historic Survey report for the
property and is listed as 629 on the Assessor’s datum.
The Site lies within the North East Historic Mixed Use District (NEHMU) and the Neighborhood Conservation
Overlay District (NCOD).
Project Information:
The Wildlands Development is a planned renovation and expansion of the existing building located on the
corner of Peach Street and Wallace Ave in Bozeman, Montana. This project, located within the NEHMU and
the Conservation overlay, will add new uses to the site and provide the neighborhood with a semi-public
covered plaza area while enhancing, respecting, and complimenting the existing building and beloved
tenants already present.
Property Manager: TBD
General Contractor: Langlas
Project Manager: 45 Architecture
Jeff Lusin
406-577-2345
jlusin@45arch.com
Property Status
The first floor of the existing building is currently leased to Wild Crumb and Finks Delicatessen. The Second
floor is being vacated at the end of the year for the remodeling of the new residences. The other parcel
has parking and an abandoned building to be demolished.
Type of TIF Assistance Sought
Requesting assistance for public infrastructure costs & building demolition.
Value of TIF Assistance Sought: $583,445.48
Estimated Occupancy: Spring 2023
WILDLANDS
WILD PEACH, LLC
MIXED USE DEVELOPMENT
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C R I T E R IA F O R T I F A S S I S TA N C E
Northeast District Goals: Ensure the health, safety, and security of the District
Infrastructure Improvement: The project will repair, replace, or improve outdated or insufficient
infrastructure.
The basement level, currently underutilized, will be improved to provide a bakery prep kitchenartisan food processing space, a new fire suppression system will be installed on the main floor for
the two current tenants, Wild Crumb Bakery + Finks Delicatessen.
The first level of the expansion will house a health & exercise tenant near Wallace Ave and the alleyat the north edge of the site. It will also provide space for two more tenants (office and very small
restaurant) on the south side of the property along Peach Street. In both cases, the expansion willseek to establish a storefront block frontage according to Section 38.510.030 of the UDC.
Located on the first level will be an at-grade fully enclosed parking garage that supports tenants of
the building. The 14 stalls of this garage are within a conditioned space and are designated fortenants only (both residential and business/commercial). Please refer to sheets G-010 and G-011
(included) for a more in-depth analysis of parking on the site. Adjacent to the enclosed parkingstructure at the northeastern corner of the site will be an uncovered public parking lot with 15 stalls.
The purpose of this lot is to serve the customers of the ground level new and existing tenantbusinesses. The building design features a pedestrian access “breezeway” through to the Peach St
frontage, allowing for a more walkable site while still shielding the open lot from view.
Prior to the construction of the expansion, demolition will occur on site to remove some existing abandoned industrial tanks and a dilapidated warehouse building. This area is currently on a
different lot, but as part of the project lot aggregation will be pursued to join this property with theone on which the existing Wild Crumb/Fink’s building is located. The tanks are not of historic
significance. The warehouse building, originally owned by The Texas Company, has been referred toas “an intrusive element” within the NEHMU. It is deteriorating badly and has lost much of its potential
historical integrity due to changes in design and materials. Our intention is to demolish this structureentirely prior to the construction of the new expansion...
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WILD PEACH, LLC
MIXED USE DEVELOPMENT
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C R I T E R IA F O R T I F A S S I S TA N C E
Infrastructure Improvement: cont.
The Wildlands Development will be the first development revitalization to this district since Mountains
Walking. It Is an important development that brings the benefits of not only smaller commercial
spaces for more business for neighbors to utilize, but also more density of housing. Beyond the
increase of taxable units on site, Wildlands brings a more walkable sense of place for the neighbors
and visitors to congregate and enjoy the landscape in the outdoor living room, whether by foot or by
bike. By removing the curb cuts along Peach and Wallace we create a more walkable landscape for
people to gather and hang out. Along those lines the additional commercial units along those streets
will create a location for sharing customers amongst the other businesses in the area. There is also
solar onto the roof and low maintenance materials and a high level of insulation to the building to
create a building that will last the test of time.
The businesses to benefit from the TIF assistance will be the surrounding businesses within the same
block as with the TIF assistance the alleyway and street improvements will create a safer
neighborhood and experience. Part of the property is an abandoned building with 3 different curb cuts
where vehicles are constantly entering and existing. The additional commercial space on the ground
floor with the improved landscaping will create a more inviting atmosphere for the surrounding single-
family residences.
The alley has no curb and gutter and will be improved through the distance of the property lines of
Wildlands with sidewalk, curb and gutter, and increased lighting. There are required improvements to
the water, sewer, and stormwater controls.
6/6
Multimodal Transportation: The project incorporates infrastructure that facilitates safe, efficient, and
convenient access of the district for all modes of transportation
Located on the first level will be an at-grade fully enclosed parking garage that supports tenants of
the building. The 14 stalls of this garage are within a conditioned space and are designated for tenants
only (both residential and business/commercial). Please refer to sheets G-010 and G-011 (included)
for a more in-depth analysis of parking on the site. Adjacent to the enclosed parking structure at the
northeastern corner of the site will be an uncovered public parking lot with 15 stalls. The purpose of this
lot is to serve the customers of the ground level new and existing tenant businesses.
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WILD PEACH, LLC
MIXED USE DEVELOPMENT
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C R I T E R IA F O R T I F A S S I S TA N C E
Multimodal Transportation: cont.
The building design features a pedestrian access “breezeway” through to the Peach St frontage,
allowing for a more walkable site while still shielding the open lot from view. Along with the parking,
10 bike parking spots to allow additional means of transportation. The Wildlands Development
intends to create a safer and more efficient method of transportation that removes 3 curb cuts at
Peach and Wallace to isolate the car transportation towards the alley that in turn allows Peach and
Wallace to be more friendly for pedestrian traffic and bike traffic.
4/4
Public Utilities: The project will incorporate public utilities in a way so that they are not visually or
physically obtrusive.
All utilities are buried to help clean up any overhead connections to the building. This will allow for a
better user experience and walking experience for the neighborhood. Ideally this building is part of a
continued improvement along Peach to allow for more friendly pedestrian access and build upon
the anchor building that it is. The meters of the utilities are also designed behind screens from the
public view to again enhance the overall experience of the user and visitor to the building.
2/2
Northeast District Goals: Balance Commerce and Livability within the Mixed-Use Framework
Mix of Uses: The project incorporates mixed use development that promotes livability
Adjacent to the enclosed parking structure at the northeastern corner of the site will be an
uncovered public parking lot with 15 stalls. The purpose of this lot is to serve the customers of the
ground level new and existing tenant businesses. The building design features a pedestrian access
“breezeway” through to the Peach St frontage, allowing for a more walkable site while still shielding
the open lot from view.
The second level includes four full 2-bedroom residences, the bedrooms of two 2-story 2-bedroom
units, as well as one 3-bedroom unit. All these residences will feature private covered exterior decks.
The third level of the new expansion will house two full 2-bedroom residences, the living/kitchen
spaces of two 2-story 2-bedroom units, as well as two 3-bedroom units. All these residences will
feature private covered exterior decks.
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Public Utilities: cont.
The roof of the building is mostly unoccupiable, but it will feature a 732 square foot roof deck
accessible by both stairs and elevator. Prior to the construction of the expansion, demolition willoccur on site to remove some existing abandoned industrial tanks and a dilapidated warehouse
building. This area is currently on a different lot, but as part of the project lot aggregation will bepursued to join this property with the one on which the existing Wild Crumb/Fink’s building is
located. The tanks are not of historic significance. The warehouse building, originally owned by TheTexas Company, has been referred to as “an intrusive element” within the NEHMU. It is deteriorating
badly and has lost much of its potential historical integrity due to changes in design and materials.Our intention is to demolish this structure entirely prior to the construction of the new expansion. We
will be salvaging the art work on the front exterior to be incorporated into the new building’s artworkas well.
The alley has no curb and gutter and will be improved through the distance of the property lines of
Wildlands with sidewalk, curb and gutter, and increased lighting. There are required improvementsto the water, sewer, and stormwater controls.
The Wildlands Development will be the first development revitalization to this district sinceMountains Walking. It’s an important development that brings the benefits of numerous smaller
commercial spaces for more local businesses to utilize , but also more density of housing.
4/4
Community Housing: The project includes affordable housing units
In order to enhance the long-term affordability of the Northeast Neighborhood, Outlaw will enter
into an agreement with the City of Bozeman stipulating that the Wildlands project at 600 N. WallaceStreet will only receive the full TIF amount requested if the following requirements are met:
1) The new Wildlands residential and commercial units have provided the City of Bozeman with two
years of tax revenue, effectively paying back the TIF grant in full
2) Any new development at 707 Peach Street, an Outlaw controlled site, will require a minimum of 3affordable units at 120% AMI
8/8
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Northeast District Goals: Honor the Unique Character and Vitality of the District
Compatibility: The physical design, materials, and massing of the project reflects the community’s
values of durability, flexibility, and simplicity, and preserves historic assets and character of theneighborhood
An infill building has the opportunity to add more context and neighborhood language. In designing
Wildlands we purposely kept the scale to three stories instead of the allowed four stories to betterrelate to the existing building where the iconic business of Wild Crumb is located. With a new three
story addition, the design had a welcoming space carved out at the first floor adjacent to theexisting restaurant and bakery to welcome pedestrians and patrons and to create a vitality to the
neighborhood for continued conversation and friendships.
For materiality, to create a sense of importance, relation to existing, and a plinth, brick was used onthe first floor for the commercial spaces. The brick allows for a historic feel and relevance to
adjacent buildings and other more prominent buildings around town and the area. As the materialscontinue vertical the second and third floors are a low maintenance wood product that silvers
without streaks over time to allow the building to age gracefully with a soft palette that blends intothe unique neighborhood that is the North East Neighborhood.
The overall shape outside of the height creates a frontage to the street to create more activity on
the street edge without overpowering the neighbors in scale and proximity. The building is a “z”shape surrounding the existing structure and pulls off the alley side from the other existing buildings
on that corner to create separate parking and visual access. This is important for an infill project toallow for “negative” three dimensional space, it adds density, but does it in a way that doesn’t
overpower all the existing properties.
2/2
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Sustainability: The project’s design and construction practices incorporate environmentally
sustainable strategies and elements
Beyond the increase of taxable units on site, Wildlands brings a more walkable sense of place forthe neighbors and visitors to congregate and enjoy the landscape in the outdoor living room,
whether by foot or by bike. By removing the curb cuts along Peach and Wallace we create a morewalkable landscape for people to gather and hang out. Along those lines the additional
commercial units along those streets will create a location for sharing customers amongst theother businesses in the area. There are also solar panels to be installed onto the roof using low
maintenance materials and a high level of insulation to create a building that will stand the test oftime. The building utilizes exterior materials that are little to no maintenance to ensure the lasting
look and permanence to the structure. Selection of materials needed to reference the area and useof the building, while still relating back to the original building on the site. Part of the use of this
building long term is also allowing it to evolve and adapt to an ever changing user. With the user inmind, there is power brought to the parking stalls to allow for electric vehicle hook-ups particular to
the car manufacturer of the user's choice.
2/2
Northeast District Goals: Public Open Space is Essential to a Healthy and Appealing Urban
Environment
Open Space: The project designates new land for parks and open space
The Wildlands development extends the open space along N Wallace Ave. around the corner toPeach St. This additional open space along these major frontages in this neighborhood improves
the streetscape with trees and landscaping with places for people to sit, dogs to play, and kids toenjoy their Wild Crumb treats. The additional expansion of the overall space allows for a protected
outdoor area at the street level and adds to the streetscape for longer seasonal use. The newlyadded fire pit and seating in this area extends the improvements on the street side to bring the
park space into the boundary of the building. Removing the curb cuts and additional balcony openspace also adds additional three-dimensional open space context to this building as an
improvement overall.
4/4
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Landscaping: The project improves landscaping in existing public spaces
By removing the curb cuts along Peach and Wallace we create a more walkable landscape for
people to gather and hang out. As previously mentioned in the Open Space section, by continuingthe outdoor open space off N. Wallace Ave. to Peach the landscaping adds additional
opportunities for neighborly conversation. Right now, the patrons of Wild Crumb have to cue into adirt area off a parking lot and the planned project will have a hardscape and abundant
landscaping for those patrons to easily cue into and enjoy. Additionally the outdoor area outsidethe exit of Finks and Wild Crumb allow the flow of patrons into a core area of the landscape of the
development for improved use of streetscape environments.
2/2
Northeast District Goals: The Costs of Projects and Programs shall be Weighed Against their
Benefits of the District
Return on Investment: The investment of public funds in the project results in a leverage ratio of at least 10:1 for residential projects; 8:1 for commercial projects; and/or 5:1 for family wage jobs
The project is expected to generate a conservative $20.1m in new residential and commercial sales
value, which will yield $209,754.75 in annual new taxes assuming a 1% mill rate. Based on a TIFrequest of $583,445.48, the payback period is 2.78 years; over a 30 year period, the project has a
ratio of 10 to 1 in tax generated versus TIF requested, not to mention the amount of additional spendto local businesses by new residents and commercial tenant employees and wages generated by
that spend. This number also does not include the multiple proposed projects that Outlaw RealEstate Partners intend to pursue over the next 5 years in this neighborhood alone.
4/4
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Northeast District Goals: The City shall not Limit its Vision for the District Improvements to Monies
Available Solely through the TIF Funding
This project involves and/or will encourage public-private partnerships that will add value to theDistrict and its investments.
The developers are investing over $30,000 in public infrastructure upgrades and $20,000 in
communications infrastructure, including amenities to the Project and neighborhood such assidewalks, streetscapes, gardens, public gathering spaces, and public art. Moreover, the developers
are also the owners and developers of the Bronken’s Beer Distribution site to the east of theWildlands Project and plan to invest over $50m into the site by developing a world-class mixed-
use project that will add value to the district and its investments.
4/4
Northeast District Goals: Projects shall Consider Impacts on Adjacent Neighborhoods
The project is complementary to adjacent neighborhoods, not just Northeast
The Project is located only 5 blocks north of Main Street and the eastern gateway to downtown
Bozeman. Residents and visitors will be able to walk or ride bikes within minutes of downtown toenjoy the additional commercial opportunities afforded by the Project. Moreover, the Project is
already home to the Wild Crumb bakery who have a long term lease and recently signed a newlease for the basement to develop a commercial kitchen. Wild Crumb and Fink’s deli already attract
a large following of people who are drawn to the famous baked goods and deli sandwiches. Thenew Project will enhance signage, outdoor dining options, and visibility of these iconic local
businesses. Finally, the Project is within walking distance of the midtown renewal district and within20 minutes of Bridger Bowl Ski Area, two demand drivers that will be greatly enhanced by the
Project.
2/2
Total Points 36/44
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Value of TIF assistance requested –
requests over $50,000 require Part 2
of the application
Demolition of Existing Structures:
Sidewalks, curbs, gutters, and alley:
CILWR:
Public/Utility Infrastructure
Communications Infrastructure: Fiber
Impact Fees:
Total TIF Requested:
$ 98,000.00
$250,000.00
$ 14,194.80
$ 30,000.00
$ 20,000.00
$ 171,250.68
$583,445.48
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PRO J E C T N ARRA TI V E
The Wildlands Development is a planned renovation and expansion of the
existing building located on the corner of Peach Street and Wallace Ave in
Bozeman, Montana. This project, located within the NEHMU and the Conservation
overlay, will add new uses to the site and provide the neighborhood with a semi-
public covered plaza area while enhancing, respecting, and complimenting the
existing building and beloved tenants already present.
The existing structure to remain consists of 3 levels, each approximately 4,550
square feet.
• The basement level, currently underutilized, will be improved to provide a
bakery prep kitchen artisan food processing space. This work will be completed
under a different permit/contract. Much of the basement (approx. 1,725 sq ft)
will remain unchanged.
• The main floor currently houses two tenants, Wild Crumb Bakery & Fink’s
Delicatessen. The renovation and addition will aim to minimize impact on these
two businesses, which will anchor the mixed-use development going forward.
However, a new fire sprinkler system will be installed throughout both spaces.
• The upper level will be renovated with the use changing from office to
residential. The two new residential units will both feature 2 bedrooms. Windows
on this level will modified to provide natural light as well as rescuable openings
per code. The expansion structure features 3 levels and will connect to the
existing building along the entire north and east elevations. This connection will
occur at the ground level. It will also occur at the upper level via a bridge
spanning the gap between the existing and new portions of the structure. The
existing basement level will also be connected via a new egress stair that will
replace the existing exterior stair.
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• The first level of the expansion will house a health & exercise tenant near Wallace
Ave and the alley at the north edge of the site. It will also provide space for two more
tenants (office and very small restaurant) on the south side of the property along
Peach Street. In both cases, the expansion will seek to establish a storefront block
frontage according to Section 38.510.030 of the UDC. Also located at the first level will
be an entrance lobby and other accessory spaces for the residential units above.
• Also located on the first level will be an at-grade fully enclosed parking garage that
supports tenants of the building. The 14 stalls of this garage are within a conditioned
space and are designated for tenants only (both residential and
business/commercial). Please refer to sheets G-010 and G-011 (included) for a
more in-depth analysis of parking on the site.
• Adjacent to the enclosed parking structure at the northeastern corner of the site will
be an uncovered public parking lot with 15 stalls. The purpose of this lot is to serve the
customers of the ground level new and existing tenant businesses. The building
design features a pedestrian access “breezeway” through to the Peach St frontage,
allowing for a more walkable site while still shielding the open lot from view.
• The second level includes, four full 2-bedroom residences, the bedrooms of two 2-
story 2-bedroom units, as well as one 3-bedroom unit. All these residences will
feature private covered exterior decks.
• The third level of the new expansion will house two full 2-bedroom residences, the
living/kitchen spaces of two 2-story 2-bedroom units, as well as two 3-bedroom
units. All these residences will feature private covered exterior decks.
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PRO J E C T N ARRA TI V E
• The roof of the building is mostly unoccupiable, but it will feature a 732 square foot
roof deck accessible by both stairs and elevator. Prior to the construction of the
expansion, demolition will occur on site to remove some existing abandoned
industrial tanks and a dilapidated warehouse building. This area is currently on a
different lot, but as part of the project lot aggregation will be pursued to join this
property with the one on which the existing Wild Crumb/Fink’s building is located. The
tanks are not of historic significance. The warehouse building, originally owned by The
Texas Company, has been referred to as “an intrusive element” within the NEHMU. It is
deteriorating badly and has lost much of its potential historical integrity due to
changes in design and materials. Our intention is to demolish this structure entirely
prior to the construction of the new expansion.
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M AP S , E XH I B IT S , P L ANS
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S I T E D I A G R A M & V I C I N I T Y
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R E N DE R I N G S
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R E N DE R I N G S
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PE R S P E C T I VE I MA G E S | N ORT H & S O UT H
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PE R S P E C T I VE I MA G E S | E A S T & W E S T
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C O N C E P T UA L S I T E P L A N
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F L O O R PL A N S | L E V E L 1 & 2
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F L O O R PL A N S | L E V E L 3 & BA SE ME N T
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P A R T 2
PROJECT TIMELINE
PUBLIC BENEFITS
PROJECT FINANCIAL INFORMATION
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PU B L I C B E N E F I T
Projects with a high degree of public benefits are typically more likely to receive TIF
assistance. The criteria matrix of this application guides the Board and City
Commission to understand and evaluate the public benefits for a project. Provide a
detailed narrative response to each criterion and include supporting
documentation.
This section answers the following criteria numbers from the TIF Assistance score
sheet: (1,2,3,4,6,7,8,9,10,11,12)
The Wildlands Development will be the first development revitalization to this
district since Mountains Walking. It’s an important development that brings the
benefits of not only smaller commercial spaces for more business for neighbors to
utilize, but also more density of housing. Beyond the increase of taxable units on
site, Wildlands brings a more walkable sense of place for the neighbors and visitors
to congregate and enjoy the landscape in the outdoor living room, whether by foot
or by bike. By removing the curb cuts along Peach and Wallace we create a more
walkable landscape for people to gather and hang out. Along those lines the
additional commercial units along those streets will create move a location for
sharing customers amongst the other businesses in the area. There is also solar
onto the roof and low maintenance materials and a high level of insulating to the
building to create a building that will last the test of time.
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PU B L I C B E N E F I T
Re-occupancy of Partially Vacant Land
This lot has not historically been vacant, but a good percentage of it has not been
utilized to its maximum potential. Since the city is growing so quickly we see it as
necessary to utilize as much space as possible in downtown areas. The addition of
this project will complete the block making the area more vibrant, desirable and
walkable. Project infrastructure will contribute to “completing” E Peach and N
Wallace Streets. Additionally, E Peach Street is a designated “Storefront” block
frontage, and the streetscape will be reflective of that with wider sidewalks and an
activated streetscape.
Elimination of Blight
Currently the south east corner of the lot is occupied by a dilapidated abandoned
building and the northeast corner is occupied by three decommissioned fuel tanks.
This building and the tanks are a hazard to the community, and could potentially
encourage undesirable behaviors. As part of this project and site development, the
infrastructure will contribute to complete and improve conditions on Peach Street
and the alley way running parallel to E Cottonwood St and E Peach St. . Rather than
unsightly, abandoned infrastructure and buildings, the block will be completed and
built to City Engineering Standards. This means pedestrian friendly routes,
sidewalks and nature immersed engagements with the already existing retail
areas. Clearly defined ground level spaces will surround the new building providing
office and retail spaces along with a mixture of high design loft living units.
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Re-creation of New Office/Retail Spaces
The Wildlands Development Building will allow for a (3) story mixed use
commercial/residential building over a parking garage with plans to connect the
Wild Crumb building to the Wildlands project with a sky bridge to unlock allowable
residential square footage. The ground floor of the building will have (3) units with
a total of 3,200 SF commercial spaces for lease or sale and 35 provided parking
spaces. These areas will be well suited for office or retail space with a highly visible
location in the Northeast corridor.
Urban Living Options
This project proposes 2nd and 3rd floor residential units that will range from 1,000
SF to 2,300 SF, feature 11’ ft ceilings and private decks/balconies off of the living
room or bedroom areas. These areas will be well suited for residential dwelling
spaces with a highly visible location in the Northeast corridor. The design of the
building and layout of dwelling units will maximize natural light coupled with
surrounding views of the mountains encompassing the valley. This site is located in
the heart of the Northeast neighborhood and residents will enjoy many options to
access local eateries, music venues, services, bus lines, schools and Downtown.
Health and Mobility
Site development will modernize this block and area of the Northeast Corridor. It is
close to the Blue Line and easily accessible for pedestrians, cyclists, bus riders and
drivers alike. The site will include accessible facilities and a green space for passive
recreation and enjoyment. Its proximity to other Northeast Amenities and the urban
sidewalk network make it an easy destination to access. Site improvements will
also create a clean, safe and inviting location within the district.
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PA R T 2
F O R P R O J E CT S R E Q UE S TI N G O V E R
$50 ,00 0 IN A S S I S T A N C E
Project Financial Information
In order for the Northeast Urban Renewal District Board to adequately review
applications seeking TIF assistance, the following information must be
submitted with the application. This information will be used to perform a
third-party financial analysis to determine the project’s anticipated return on
investment (ROI) and reasonableness of developer profit. The goal of the
Northeast TIF Assistance program is to make projects financially feasible.
Therefore, projects that demonstrate financial need for
public funding will be given priority.
1. Sources & Uses of Funds
a. Identify the sources of funds used to finance the project. Typical sources
include equity, lender financing, mezzanine financing, other anticipated types
of public assistance, and any other types or methods of financing. Describe
the sources of equity and include a term sheet for lender
financing, if available.
b. TIF assistance is available as a reimbursement after the project is complete.
Thus, the project budget must identify the up-front sources intended to
finance the development costs of the project. If determined, specify the
specific line items of the project budget that each source will
finance.
c. Summarize the uses of funds. General categories to be identified include
acquisition and related site costs, hard construction costs, and a breakdown
of soft costs.
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PA R T 2
F O R P R O J E CT S R E Q UE S TI N G O V E R
$50 ,00 0 IN A S S I S T A N C E
2. Development Budget
Provide an accurate and detailed development budget for the project that
includes a detailed breakdown of significant line item costs consistent with
the sample included in the application packet.
The budget should be arranged to identify acquisition and site related costs,
hard costs, and soft costs. Also, identify all line items that are performed by
the developer, owner, or related entities.
Budget of TIF Eligible Expenses
Identify which of the development budget costs are eligible for
reimbursement as allowed by 7-15-
4288, MCA.
Financial Commitments
Submit commitment letters and/or term sheets from all lenders for proposed
debt (such as construction, mezzanine, permanent, and government
financing) and all other financial sources of the project (such as grants, and
tax credits). Commitment letters must clearly specify the nature and terms of
the obligations.
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P R O J E CT E D P R O J E C T M I L E S T O N E S
Site Plan Final Review – September 2021
Building Permitting - October 2021
Mobilization/ Demolition/ Groundbreaking – November 2021
Construction Duration – 13 months
Provide anticipated dates for site acquisition, project start, completion, estimated
date of occupancy, and other project milestones. Multi-phase projects must include
details for each phase. The timeline should
also identify any critical or time-sensitive dates as well as any time constraints facing
the applicant.
(Please refer to the following pages)
Provide detailed explanation on impact on the timeline if TIF assistance is not granted
at the requested amount.
a. If TIF Assistance is not granted and final budgets come back higher than expected,
the project is at risk of being put on hold.
Construction information Size of any existing structure to be demolished or rehabbed;
size of any new construction; types of construction materials (structural and finish);
delineation of square foot allocation by use
a. 6,630 SF of existing building is being remodeled on the interior, with the new
expansion of 38,760SF of wood and steel structure clad in "kebony wood" material
and a semi-glazed brick, with varied locations of corrugated metal. See Questions #4
for delineation of spaces of the building by use.
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S OU R C E S & U S E S O F FU N DS
*Outlaw has highlighted in yellow G&A and Marketing Costs which are all line items that
are performed by the developer, owner, or related entities
Equity for the Wildlands development totals $8.4m
which has been sourced from a small group of friends
and family investors.
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S OU R C E S & U S E S O F FU N DS
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S O U R C ES & U S E S - PRO J E C T
R E V E N U E
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SOU RC E S & U S E S - TER M S S H EET
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D EVE LOP M E NT B U D G E T
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Increased Tax Revenue
This project development will translate into new property tax revenues that
contribute to future Northeast Neighborhood projects. A breakdown of the
anticipated tax projections are as follows:
New Jobs and Local Sales
The project development itself will create jobs in the form of retail, food service and
office job opportunities for local businesses, the commercial space, totaling 3,200
SF will drive the establishment and re-establishment of new and old businesses
alike. Additionally, property management and maintenance positions will be
required as part of the whole community development.
PU B L I C B E N E F I T
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Annual new taxes @ 1.0% mil rate:
Payback to TIF requested
Payback Period
$ 209, 754.75
$ 583,445.48
2.5 Years
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T I F E L I G I B L E EX P E N SE S
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Value of TIF assistance requested –
requests over $50,000 require Part 2
of the application
Demolition of Existing Structures:
Sidewalks, curbs, gutters, and alley:
CILWR:
Public/Utility Infrastructure
Communications Infrastructure: Fiber
Impact Fees:
Total TIF Requested:
$ 98,000.00
$250,000.00
$ 14,194.80
$ 30,000.00
$ 20,000.00
$ 171,250.68
$583,445.48
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RESOLUTION NO. 5370
RESOLUTION APPROVING A PROJECT IN THE NORTHEAST URBAN RENEWAL
DISTRICT AS AN URBAN RENEWAL PROJECT; MAKING FINDINGS WITH
RESPECT THERETO AND APPROVING THE USE OF TAX INCREMENT REVENUES
OR TAX INCREMENT REVENUE BONDS TO REIMBURSE ELIGIBLE COSTS
THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT
BE IT RESOLVED by the City Commission (the “Commission”) of the City of
Bozeman, Montana (the “City”), as follows:
Section 1
Recitals.
1.01 Under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and
43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and
adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects
therein, provide for the segregation and collection of tax increment with respect to property taxes
collected in such areas, and apply tax increment revenues derived from projects undertaken
within the urban renewal area to pay eligible costs.
1.02. Pursuant to the Act and Ordinance No. 1655, adopted on November 28, 2005 (the
“Ordinance”), the Commission created the Northeast Urban Renewal District (the “District”) and
approved the Northeast Urban Renewal District Plan (the “Plan”)as an urban renewal plan in
accordance with the Act, which Plan provides for the segregation and collection of tax increment
revenues with respect to the District.
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1.03. On December 21, 2021, the Commission adopted Resolution 5366, calling a public
hearing to approve a mixed-use development to be known as Wildlands, consisting of demolition
of a warehouse, underground storage tank, above-ground storage tanks and parking lot addressed
as 615 East Peach Street; renovation of a 4,500 square-foot commercial building by converting a
second-floor office suite to two two-bedroom dwelling units and converting the existing
basement level to storage and accessory office space for the bakery tenant on the first-floor level;
new construction of a three-story addition to the existing two-story commercial building at 600
North Wallace Avenue consisting of ground-floor restaurant and retail space and entrance and
accessory uses and spaces, second-level dwelling units and office space and a common open
space plaza, third-level residences and a rooftop deck; related infrastructure and utility
improvements; and related improvements (collectively, the “Project”) on land located in the
District, as an urban renewal project under the Act and the Plan and to approve using tax
increment revenues to reimburse Wild Peach, LLC (the “Developer”), with respect to certain
eligible costs of the Project, including demolition of existing structures, public improvements
including curb, gutter and sidewalk improvements, and public and utility infrastructure, as well
as impact fees, cash in lieu of water rights and fees and charges related to installing fiber optic
cable (the “Eligible Costs”).
1.04. On January 11, 2022, a duly noticed public hearing was held on the question of
approving the Project as an urban renewal project and the use of tax increment revenues to
reimburse the Developer for Eligible Costs and all persons appearing were given an opportunity
to speak at the public hearing.
Section 2
Approval of the Project as an Urban Renewal Project.
The Commission hereby approves the Project as an urban renewal project under the Act
and the Plan. The Project, including the Eligible Costs, is contemplated by and within the scope
of the Plan, and the Eligible Costs are eligible for tax increment financing under the Act.
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Section 3
Findings.
The Commission hereby finds with respect to the Project as follows:
a.no persons will be displaced from their housing by the Project;
b.the Plan and the Project conform to the Bozeman Community Plan or parts
thereof for the City as a whole;
c.the Plan and the Project will afford maximum opportunity, consistent with
the needs of the City as a whole, for the rehabilitation or redevelopment of the
District by private enterprise;
d.taking into account the use of tax increment revenues or the proceeds of
tax increment revenue bonds to reimburse the Developer for all or a portion of the
Eligible Costs, there is expected to be a sound and adequate financial program for
the financing of the Project; and
e.the Project constitutes an urban renewal project within the meaning of the
Act and the Plan.
Section 4
Development Agreement; Use of Tax Increment.
4.01. The Northeast Urban Renewal Board (the “Board”) and the Developer have
negotiated a Development Agreement, the form of which is attached hereto as Exhibit A. The
Development Agreement is hereby approved in substantially the form attached. The City
Manager, or in the event of his absence or disability, his designee, is hereby authorized and
directed to finalize, approve, execute and deliver to the Developer the Development Agreement,
substantially in the form attached as Exhibit A, with such changes as such officer shall deem
necessary or appropriate. The execution and delivery by an appropriate officer of the City of the
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Development Agreement shall be conclusive as to the approval of such officer of the terms of the
Development Agreement.
4.02. The Commission hereby approves the use of tax increment revenues to reimburse
the Developer for Eligible Costs of the Project, subject to the terms and conditions of the
Development Agreement.
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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 January, 2022.
___________________________________
CYNTHIA ANDRUS
Mayor
ATTEST:
___________________________________
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of
Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of
Resolution No. 5370 entitled: “RESOLUTION APPROVING A PROJECT IN THE
NORTHEAST URBAN RENEWAL DISTRICT AS AN URBAN RENEWAL PROJECT;
MAKING FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF
TAX INCREMENT REVENUES OR TAX INCREMENT REVENUE BONDS TO
REIMBURSE ELIGIBLE COSTS THEREOF AND APPROVING A RELATED
DEVELOPMENT AGREEMENT” (the “Resolution”), on file in the original records of the City
in my legal custody; that the Resolution was duly adopted by the City Commission of the City at
a regular meeting on January 11, 2022, and that the meeting was duly held by the City Commission
and was attended throughout by a quorum, pursuant to call and notice of such meeting given as
required by law; and that the Resolution has not as of the date hereof been amended or repealed.
I further certify that, upon vote being taken on the Resolution at said meeting, the following
Commission members voted in favor thereof:
; voted against the same:
; abstained from voting thereon: ; or
were absent: .
WITNESS my hand and seal officially this 11th day of January, 2022.
(SEAL)
__________________________________
MIKE MAAS
City Clerk
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A-1
EXHIBIT A
[Form of Development Agreement]
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DEVELOPMENT AGREEMENT
(Wild Peach)
This DEVELOPMENT AGREEMENT (this “Agreement”) is dated as of January 25,
2022 by and among WILD PEACH, LLC (the “Developer”), OUTLAW REAL ESTATE
PARTNERS, LLC (“Outlaw”) and the CITY OF BOZEMAN, MONTANA, 121 N. Rouse Ave.,
Bozeman, Montana 59771 (the “City”). The Developer, Outlaw and the City are each
individually referred to herein as a “Party” and collectively as the “Parties.”
RECITALS:
WHEREAS, under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts
42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare
and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal
projects therein, provide for the segregation and collection of tax increment with respect to
property taxes collected in such areas, and apply tax increment revenues derived from projects
undertaken within the urban renewal area to pay eligible costs;
WHEREAS, pursuant to the Act and Ordinance No. 1655 adopted by the City
Commission of the City (the “City Commission”) on November 28, 2005, the City has created
the Northeast Urban Renewal District (the “District”) as an urban renewal district and has
approved the Northeast Urban Renewal Plan (the “Plan”) as an urban renewal plan in accordance
with the Act, which Plan provides for the segregation and collection of tax increment revenues
with respect to the District;
WHEREAS, the Developer proposes to undertake the construction of a mixed-use
development consisting of demolition of a warehouse, underground storage tank, above-ground
storage tanks and parking lot addressed as 615 East Peach Street; renovation of a 4,500 square-
foot commercial building by converting a second-floor office suite to two two-bedroom dwelling
units and converting the existing basement level to storage and accessory office space for the
bakery tenant on the first-floor level; new construction of a three-story addition to the existing
two-story commercial building at 600 North Wallace Avenue consisting of ground-floor
restaurant and retail space and entrance and accessory uses and spaces, second-level dwelling
units and office space and a common open space plaza, third-level residences and a rooftop deck;
related infrastructure and utility improvements; and related improvements, the current budget for
which is set forth on Exhibit A hereto (the “Project”), on land in the District at 600 North
Wallace Avenue and 615/629 East Peach Street in Bozeman, Montana, which is legally
described on Exhibit B hereto (the “Land”);
WHEREAS, the Developer submitted to the Northeast Urban Renewal Board of the City
(the “Board”) an application for tax increment assistance with respect to certain eligible costs of
the Project;
WHEREAS, the Board has approved and recommended that the City Commission
approve, subject to the terms and conditions of this Agreement, the application of tax increment
assistance with respect to certain eligible costs of the Project;
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WHEREAS, pursuant to Resolution No. 5370 adopted on January 25, 2022, after a duly
called and noticed public hearing, the City Commission approved the Project as an urban
renewal project under the Plan and the Act and authorized the use of tax increment revenue of
the District to reimburse the Developer for certain eligible costs of the Project described more
particularly on Exhibit C hereto (the “Eligible Costs”) in the maximum amount of $583,445,
subject to the terms and conditions of this Agreement; and
WHEREAS, certain of the Eligible Costs are costs paid by the Developer in connection
with the design, engineering, work, construction, materials, equipment, and other improvements
eligible to be reimbursed, which improvements are identified as such on Exhibit C hereto (the
“Infrastructure Improvements”), and certain of the Eligible Costs are costs to be paid by the
Developer as fees or charges pertaining to the Project, which fees and charges are identified as
such on Exhibit C hereto (the “Project Fees and Charges”); and
WHEREAS, Outlaw, which is the controlling member of the Developer, is under contract
to purchase approximately 3 acres of developable property in the District located at 707 Peach
Street (such 3 acre parcel collectively referred to herein as “707 Peach Street”), and as a
condition to the City’s reimbursing the Developer for Eligible Costs, Outlaw will commit that,
once 707 Peach Street is purchased by Outlaw or by a single-purpose entity of which Outlaw is
the controlling member, any new development at 707 Peach Street will include a minimum of 3
housing units that are deed restricted or restricted by other mechanism acceptable to the City to
be affordable at 120% of area median income, and will record the Restrictive Covenants (as
hereinafter defined) against 707 Peach Street; and
WHEREAS, the City Commission has determined to reimburse the Developer for
Eligible Costs solely out of the Project Generated Tax Increment, as further described herein;
and
WHEREAS, the Parties desire to enter into this Agreement which sets forth the
obligations and commitments of the Parties with respect to the Project, including the Eligible
Costs consisting of the costs of the Infrastructure Improvements and of the Project Fees and
Charges.
NOW, THEREFORE, the City and the Developer, pursuant to the Act, each in
consideration of the representations, covenants and agreements of the other, as set forth herein,
mutually represent, covenant and agree as follows:
Section 1.Definitions; Rules of Interpretation; Exhibits.
1.1.Definitions. For all purposes of this Agreement, except as otherwise expressly
provided or unless the context clearly requires otherwise, the following terms have the meanings
assigned to them, respectively:
“Act” means Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended
or supplemented.
“Affordable Housing Covenants” means the covenants of Outlaw set forth in Section
3.12 hereof.
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“Agreement” means this Development Agreement, dated as of January 25, 2022, by and
among the City, the Developer and Outlaw, as it may be amended or supplemented from time to
time in accordance with the terms hereof.
“City” means the City of Bozeman, Montana, or any successors to its functions under this
Agreement.
“City Commission” means the governing body of the City.
“Developer” means Wild Peach, LLC, a Montana limited liability company, and its
successors and assigns in accordance with and as permitted under this Agreement.
“Developer Certificate” means the certificate attached hereto as Exhibit E.
“District” means the Northeast Urban Renewal District, an urban renewal district created
by the Ordinance pursuant to the Act, as such may be enlarged or reduced from time to time in
accordance with the Act.
“DOR” means the State of Montana Department of Revenue.
“Eligible Costs” means the costs identified as such on the attached Exhibit C.
“Environmental Laws and Regulations” means and includes the Federal Comprehensive
Environmental Compensation Response and Liability Act (“CERCLA” or the “Federal
Superfund Act”) as amended by the Superfund Amendments and Reauthorization Act of 1986
(“SARA”), 42 U.S.C. §§ 9601 et seq.; the Federal Resource Conservation and Recovery Act of
1976 (“RCRA”), 42 U.S.C. §§ 6901 et seq.; the Clean Water Act, 33 U.S.C. § 1321 et seq.; and
the Clean Air Act, 42 U.S.C. §§ 7401 et seq., all as the same may be from time to time amended,
and any other federal, state, county, municipal, local or other statute, code, law, ordinance,
regulation, requirement or rule which may relate to or deal with human health or the environment
including without limitation all land use, zoning, and stormwater control regulations as well as
all regulations promulgated by a regulatory body pursuant to any statute, code, law, ordinance,
regulation, requirement or rule.
“Fiscal Year” means the period commencing on the first day of July of any year and
ending on the last day of June of the next calendar year, or any other twelve-month period
authorized by law and specified by the Commission as the City’s fiscal year.
“Indemnified Parties” has the meaning given to it in Section 7.1.
“Infrastructure Improvements” means the design, engineering, work, construction,
materials, equipment, and the other improvements, the costs of which form a part of the Eligible
Costs described as such in Exhibit C hereto, as the same may be amended or supplemented from
time to time, in accordance with the terms hereof.
“Land” has the meaning given to it in the recitals hereof.
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“Land Use Regulations” means all federal, state and local laws, rules, regulations,
ordinances and plans relating to or governing the development or use of the Land or the Project.
“Milestone” of “Milestones” has the meaning given in Section 3.4 hereof.
“Milestone Date” or “Milestone Dates” has the meaning given in Section 3.4 hereof.
“Ordinance” means Ordinance No. 1655 adopted by the City Commission on November
28, 2005.
“Original Resolution” means Resolution No. 4801 adopted by the City Commission on
May 22, 2017, pursuant to which the City issued the Series 2017 Bond.
“Outlaw” means Outlaw Real Estate Partners, LLC, a Montana limited liability company,
and its successors and assigns in accordance with and as permitted under this Agreement.
“Person” means any individual, corporation, limited liability company, partnership,
limited liability partnership, joint venture, association, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.
“Prevailing Wage Rates” means the Montana Prevailing Wage Rate for public works
projects as published from time to time by and available from the Montana Department of Labor
and Industry, Research and Analysis Bureau, P.O. Box 1728, Helena, Montana 59624, telephone
number (800) 541-3904.
“Project” means the facilities to be constructed by the Developer on the Land pursuant to
this Agreement, as described more particularly on the attached Exhibit A.
“Project Fees and Charges” means those fees and charges pertaining to the Project that
form a part of the Eligible Costs described as such in Exhibit C hereto, as the same may be
amended or supplemented from time to time, in accordance with the terms hereof.
“Project Generated Tax Increment” means the amounts paid by the Developer in the first
five Fiscal Years for which the assessed and taxable values of the Project, as completed, are
reflected in the certified taxable values of the City, as further described in Section 5.1(f) hereof.
“Restricted Units” has the meaning set forth in Section 3.12 hereof.
“Restrictive Covenants” has the meaning set forth in Section 3.12 hereof.
“Series 2017 Bond” means the Tax Increment Urban Renewal Revenue Bond, Series
2017 (Northeast Urban Renewal District), issued in the principal amount of $1,446,000 pursuant
to the Original Resolution.
“State” means the State of Montana.
“Tax Increment” means the amount received by the City pursuant to the Act from the
extension of levies of Taxes (expressed in mills) against the incremental taxable value (as
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defined in the Act) of all Taxable Property, and shall include all payments in lieu of Taxes
attributable to the incremental taxable value and all payments received by the City designated as
replacement revenues for lost Tax Increment.
“Taxable Property” means all real and personal property located in the District and
subject to Taxes, including land, improvements and equipment.
“Taxes” means all taxes levied on an ad valorem basis by any Taxing Body against the
Taxable Property (exclusive of the six mill levy for university purposes levied by the State), and
shall include all payments in lieu of taxes received by the City with respect to Taxable Property.
“Taxing Body” means the City; the County of Gallatin, Montana; High School District
No. 7 (Bozeman), Gallatin County, Montana; Elementary School District No. 7 (Bozeman),
Gallatin County, Montana; the State; and any other political subdivision or governmental unit
that levies or may hereafter levy or cause to be levied Taxes against property within the District.
“Unavoidable Delay” means a delay resulting from a cause over which the Party required
to perform does not have control and which cannot or could not have been avoided by the
exercise of reasonable care, including but not limited to, acts of God, accidents, war, civil unrest,
embargoes, strikes, unavailability of raw materials or manufactured goods, litigation, pandemics,
epidemics, labor shortages, unusually inclement weather and the delays of the other Party or its
contractors, agents or employees in the performance of their duties under or incident to this
Agreement.
1.2.Rules of Interpretation.
(a) The words “herein,” “hereof” and words of similar import, without reference to
any particular section or subdivision, refer to this Agreement as a whole rather than to any of its
particular sections or subdivisions.
(b) References to any particular section or subdivision hereof are to the section or
subdivision of this Agreement in its original signed form, unless otherwise indicated.
(c) The word “or” is not exclusive but is intended to contemplate or encompass one,
more or all of the alternatives conjoined.
1.3.Exhibits. The following Exhibits are attached to and by reference made a part of
this Agreement:
Exhibit A: Project Costs
Exhibit B: Description of the Land
Exhibit C: Eligible Costs
Exhibit D: Milestones
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Exhibit E-1: Form of Developer Certificate to Establish Amount of Eligible
Costs
Exhibit E-2: Form of Developer Certificate Regarding Project Generated Tax
Increment and Request for Reimbursement
Exhibit F: Nondiscrimination and Equal Pay Affirmation
Exhibit G: Sample Affordable Housing Pricing Matrix
Exhibit H: Form of Restrictive Covenants
Section 2.Representations.
2.1.City Representations. The City hereby represents as follows:
(a)Pursuant to the Act, and after a public hearing duly called and held, the City by
the Ordinance has duly created the District.
(b)Pursuant to the Original Resolution, the City has issued and there is outstanding
the Series 2017 Bond. In the Original Resolution, the City reserved the right to issue obligations
having a lien on Tax Increment subordinate to the lien of the Series 2017 Bond (“Subordinate
Obligations”). Any obligation of the City to make payments under this Agreement constitutes a
Subordinate Obligation under the Original Resolution, subordinate and junior in all respects to
the repayment of the Series 2017 Bond and the replenishment of the debt service reserve account
for the Series 2017 Bond, and subject to all other terms and conditions of the Original
Resolution.
(c)Pursuant to Resolution No. 5370 of the City Commission, the City approved the
use of Project Generated Tax Increment, if available, to reimburse the Eligible Costs in a total
amount not to exceed $583,445.
(d)The DOR has advised the City that the base taxable value (as defined in the Act)
of the District is $423,054.
(e)The City Commission has duly authorized the execution and delivery of this
Agreement.
2.2.Developer Representations. The Developer hereby represents as follows:
(a)The Developer is a Delaware limited liability company, duly formed, validly
existing and in good standing under the laws of the State of Delaware and is duly qualified to do
business in the State of Montana. The Developer has the power to enter into this Agreement and
by all necessary corporate action has duly authorized the execution and delivery of this
Agreement.
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(b)The Developer has good marketable title to the Land, free and clear of all liens,
encumbrances and defects except such as do not materially affect the value of the Land or
materially interfere with the use made and proposed to be made of the Land by the Developer.
(c)The Developer has the financial capability or commitments to complete the
Project at a cost not less than $23,500,000.00.
(d)The Developer is not aware of any facts the existence of which would cause the
Developer to be in violation in any material respect of any Environmental Laws and Regulations
applicable to the Project or the Infrastructure Improvements. The Developer has not received
from any local, state or federal official any notice or communication indicating that the activities
of the Developer have been, may be or will be in violation of any Environmental Laws and
Regulations applicable to the Project or the Infrastructure Improvements.
(e)Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions hereof is prohibited or limited by, conflicts with or results in a breach of the terms,
conditions or provisions of the certificate of formation, partnership agreement or operating
agreement of the Developer or any evidence of indebtedness, agreement or instrument of
whatever nature to which the Developer is now a party or by which it is bound, or constitutes a
default under any of the foregoing.
(f)There is no action, suit, investigation or proceeding now pending or, to the
knowledge of the Developer, threatened against or affecting the Developer or its business,
operations, properties or condition (financial or otherwise) before or by any governmental
department, commission, board, authority or agency, or any court, arbitrator, mediator or grand
jury, that could, individually or in the aggregate, materially and adversely affect the ability of the
Developer to complete the Project.
(g)The Developer acknowledges and agrees that the sole source of funds for
reimbursing the Developer under this Agreement is the Project Generated Tax Increment. The
Developer further acknowledges and agrees the amount of Tax Increment in the District is
dependent upon a number of variables, including, without limitation, the taxable value of the
Project, the number of mills levied by Taxing Bodies, and then-prevailing state laws regarding
computation of Tax Increment, and that the City has no control over such variables. If Tax
Increment in the District decreases, the City may need to use Project Generated Tax Increment to
pay debt service on the Series 2017 Bond or to replenish the debt service reserve account for the
Series 2017 Bond, and there may not be Project Generated Tax Increment available to reimburse
the Developer for Eligible Costs, despite the Developer having paid all property taxes then due
with respect to the Project. The Developer agrees that if Project Generated Tax Increment is
required to be used to pay debt service or replenish the debt service reserve account for the
Series 2017 Bond such that the Project Generated Tax Increment is not available to reimburse
the Developer, the City shall have no obligation to pay to the Developer the amount of
reimbursement described in Section 4. The Developer agrees that such event shall not constitute
a default by the City hereunder. In such event, if Developer receives no reimbursement but has
recorded the Restrictive Covenants described in Section 3.12, the City shall consent to the
termination of the Restrictive Covenant.
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2.3.Outlaw Representations. Outlaw hereby represents as follows:
(a)Outlaw is a Delaware limited liability company, duly formed, validly existing and
in good standing under the laws of the State of Delaware and is duly qualified to do business in
the State of Montana. Outlaw has the power to enter into this Agreement and by all necessary
corporate action has duly authorized the execution and delivery of this Agreement.
(b)Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions hereof is prohibited or limited by, conflicts with or results in a breach of the terms,
conditions or provisions of the certificate of formation, partnership agreement or operating
agreement of Outlaw or any evidence of indebtedness, agreement or instrument of whatever
nature to which Outlaw is now a party or by which it is bound, or constitutes a default under any
of the foregoing.
(c)There is no action, suit, investigation or proceeding now pending or, to the
knowledge of Outlaw, threatened against or affecting Outlaw or its business, operations,
properties or condition (financial or otherwise) before or by any governmental department,
commission, board, authority or agency, or any court, arbitrator, mediator or grand jury, that
could, individually or in the aggregate, materially and adversely affect the ability of Outlaw to
comply with and perform the Affordable Housing Covenants.
(d)Outlaw is under contract to purchase 707 Peach Street, and expects to close on the
purchase of 707 Peach Street prior to December 2022.
Section 3.Developer Undertakings; Outlaw Undertakings.
3.1.Construction and Maintenance of Project. The Developer hereby agrees and
commits to the City that it will diligently prosecute to completion the construction of the Project
in accordance with this Agreement, the site plan submitted to the City and all applicable federal,
State and local laws, rules, regulations, ordinances and plans relating to or governing the
development or use of the Project, including applicable Land Use Regulations and
Environmental Laws and Regulations. The Developer agrees and commits to the City that
construction of the Project shall be completed by December 31, 2023, subject to Unavoidable
Delays. The total estimated costs of the Project are shown on Exhibit A hereto. The Developer
has the financial capacity to complete the Project, and the Developer agrees to pay all costs
thereof. If there is an increase in the costs of the Project from that shown on Exhibit A hereto
that cannot be covered by the contingency amount, the Developer shall notify the City of the
increase and submit additional evidence in a form acceptable to the City that the Developer has
the financial capacity to cover such additional costs and complete the Project. At all times
during the term of this Agreement, the Developer will operate and maintain, preserve and keep
the Project or cause the Project to be operated, maintained, preserved and kept for the purposes
for which it was constructed, and with the appurtenances and every part and parcel thereof, in
good repair and condition. The Developer agrees to permit the City and any of its officers,
employees or agents access to the Land for the purpose of inspection of all work being
performed in connection with the Project; provided, however, that the City shall have no
obligation to inspect such work.
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3.2.Preparation, Review and Approval of Construction Plans. In connection with the
Project, the Developer, at its sole expense, shall prepare and submit construction plans, drawings,
and related documents for each portion of the Project to the appropriate City officials for
architectural, engineering or land use review and written approval or permits. The Developer
acknowledges that no review or approval by City officials hereunder may be in any way
construed by the Developer to replace, override or be in lieu of any required review, inspection,
or approval by the City Planning Division, or any other building construction official review or
approvals required by any State laws or local ordinances or regulations. Nothing contained in
this Agreement indicates or evidences that the City has approved or will approve the Project or
any portion thereof. This Agreement does not affect or limit the City’s regulatory powers with
regard to the Project, including, without limitation, those relating to building permits or other
permits or the payment of fees. As further described in Section 7.1, the City shall have no
liability and the Developer shall hold the City harmless with respect to any increases in costs of
the Project related to or arising out of delays resulting from the City’s regulatory actions or
approvals.
3.3.Construction of the Infrastructure Improvements. The Developer shall acquire,
install, construct or otherwise provide the Infrastructure Improvements. The Developer
acknowledges and agrees that the City is not responsible for acquiring, installing, constructing or
otherwise providing the Infrastructure Improvements. The estimated costs of the Infrastructure
Improvements, which form a part of the Eligible Costs, are shown on Exhibit C hereto.
3.4.Milestones of the Project. Certain steps in the development of the Project are
listed on Exhibit D attached hereto (collectively, the “Milestones”; each a “Milestone”), together
with the dates by which the Developer is obligated to complete the Milestones (collectively, the
“Milestone Dates”; each as it relates to a particular Milestone, the “Milestone Date”). The
Developer acknowledges and agrees that the City in reserving or offering to make available Tax
Increment to pay or reimburse the Eligible Costs necessarily means that certain Tax Increment is
not available to pay or reimburse other undertakings or costs for the benefit of the District and
that the City reasonably expects additional Tax Increment as a result of completion of the
Project. The Developer acknowledges and agrees that conditioning the availability of Project
Generated Tax Increment to pay or reimburse the Eligible Costs on completion or satisfaction of
the Milestones by the corresponding Milestone Dates is reasonable. If the Developer is unable to
complete or satisfy a Milestone by the corresponding Milestone Date, the Developer shall make
a formal written request to the Director of Economic Development, with appropriate supporting
material, to extend the Milestone Date and, as appropriate, subsequent Milestone Dates. The
Director of Economic Development may, in his or her sole discretion, (i) determine whether such
extension is appropriate and, if so, fix a new and superseding Milestone Date and also adjust
other subsequent Milestone Dates, along with any other terms or conditions, or (ii) refer the
request to the City Commission to either approve the extension and adjust other Milestone Dates,
as appropriate, or, in its sole discretion, terminate this Agreement, in which case the City will
have no obligation to reimburse the Developer hereunder.
3.5.Prevailing Wage Rates; Competitive Bidding. The Developer understands that
the City is obligated to follow certain laws with respect to the expenditure of public funds, which
includes Tax Increment. The Developer agrees to comply with laws that govern City contracting
obligations, including public procurement laws relating to all of the Infrastructure Improvements,
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such as, without limitation, laws and rules regarding prevailing wage and solicitation of work on
a competitive basis.
Without limitation of the foregoing, the Developer agrees that in the awarding of
contracts for the Infrastructure Improvements (i) it will, and it will cause its contractor to,
publicly bid competitively contracts for each component of the Infrastructure Improvements, and
(ii) through its contract with its contractor, it will, in addition to the requirements of Sections 3.9
and 3.10, require its contractor to, pay the Prevailing Wage Rates on such contracts related to the
Infrastructure Improvements. The Developer will provide to the City all documentation
requested to verify the compliance of the Developer and its contractor with the foregoing
requirements. Failure of the Developer or its contractor to bid competitively contracts for each
component of the Infrastructure Improvements or to require contracts entered into directly with
contractors or sub-contractors to include provisions requiring the contractor or sub-contractor to
pay the Prevailing Wage Rates on the work related to the Infrastructure Improvements will be
considered a breach of this Agreement and the City will be entitled, at its discretion and without
obligation, to exercise any and all measures to assure compliance and retroactive compensation
plus interest to workers not paid in accordance with this Agreement, and recovery of any penalty
or fine assessed by the State attributed to any failure to pay the Prevailing Wage Rates.
Additionally, the Developer acknowledges that a violation of these requirements may, in the
City’s sole discretion, cause the Infrastructure Improvements to be ineligible for the application
of Tax Increment, in which case the City will have no obligation to reimburse or pay the
Developer hereunder.
3.6.Utilities. The Developer shall not interfere with, or construct any improvements
over, any public street or utility easement without the prior written approval of the City. All
connections to public utility lines and facilities shall be subject to approval of the City and any
private utility company involved. The Developer at its own expense shall replace any public
facilities or utilities damaged during the Project by the Developer or its agents or by others acting
on behalf of or under their direction or control of the Developer.
3.7.Permits and Compliance With Laws. The Developer will obtain, in a timely
manner, all required permits, licenses and approvals, and will meet all requirements of all local,
state and federal laws, rules and regulations which must be obtained or met in connection with
the acquisition and construction of the Project, including the Infrastructure Improvements.
Without limiting the foregoing, the Developer will request and seek to obtain from the City or
other appropriate governmental authority all necessary land use, zoning, and building permits.
The Developer will comply in all material respects with all Environmental Laws and Regulations
applicable to the construction, acquisition, and operation of the Project, including the
Infrastructure Improvements, will obtain any and all necessary environmental reviews, licenses
or clearances under, and will comply in all material respects with, Environmental Laws and
Regulations. In addition, the Developer shall comply fully with all applicable state and federal
laws, regulations, and municipal ordinances related to worker safety including but not limited to
the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the
Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State
building and electrical codes, and the Americans with Disabilities Act.
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3.8.Easements. To the extent that the Infrastructure Improvements are to be located
on the Land, the Developer hereby agrees to grant to the City and applicable utility companies
from time to time such easements, rights-of-way and similar licenses in a form required by the
City and as are reasonably necessary to permit the City to own, operate and maintain the
Infrastructure Improvements.
3.9.Nondiscrimination and Equal Pay Affirmation. The Developer agrees to require
its contractor(s) to be in compliance with the City’s Nondiscrimination and Equal Pay
Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated,
regarding activities related to the Project, including the Infrastructure Improvements. The
Developer agrees that in its contracts with its contractors the Developer’s contractor will be
required to require its subcontractors to comply with the City’s Nondiscrimination and Equal Pay
Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated,
regarding activities related to the Project. The Developer agrees to provide copies of all such
contracts upon request by the City.
3.10.Worker’s Compensation Insurance. The Developer shall provide in its
construction contracts related to the Project with all of its respective contractors that such
contractors are to be covered by a Worker’s Compensation insurance program with the State, a
private insurance carrier, or an approved self-insurance plan in accordance with State law.
3.11.Walkaway Provision. The Developer shall have the option, in its sole discretion
and for any reason, to cease developing the Project and terminate this Agreement without penalty
at any time prior to the Developer submitting any request for reimbursement or payment to the
City (“walkaway provision”). If the Developer exercises this walkaway provision, this
Agreement shall immediately terminate and all rights and obligations of the Parties under this
Agreement shall cease, except for those rights and obligations specifically identified in this
Agreement as surviving termination. If the Developer exercises this walkaway provision, the
Developer automatically waives any and all rights to reimbursement or payment from the City
under this Agreement. This walkaway provision shall not limit or prohibit any rights, claims, or
recourse that the City may have in connection with the Project. The Parties expect that, if the
Developer determines to exercise this walkaway provision, the Restrictive Covenants will not be
recorded against 707 Peach Street. If Outlaw records the Restrictive Covenants and, at a later
date, the Developer determines to exercise the walkaway provision, the City agrees to cooperate
with Outlaw to remove the Restrictive Covenants from 707 Peach Street.
3.12.Affordable Housing Covenants. Outlaw agrees that, following the closing of its
purchase of 707 Peach Street, any development at 707 Peach Street will include a minimum of 3
housing units (the “Restricted Units”), which will be restricted for a period not less than 30 years
for use as housing affordable to households with incomes equal to 120% area median income
(“AMI”). As a condition to reimbursement from Project Generated Tax Increment, as described
in Section 5.1 hereof, Outlaw shall record the restrictive covenants, substantially in the form
attached hereto as Exhibit H (the “Restrictive Covenants”) against 707 Peach Street. The
Restrictive Covenants must (i) run with the land, (ii) bind, for a period not less than 30 years, the
Restrictive Units to be affordable at 120% AMI, either as rental units or as owner-occupied units
with restrictions on resale prices, with resale and rental prices tied to affordability at 120% AMI,
and (iii) a third-party nonprofit or government entity with experience in managing affordable
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housing units must manage the rental or sale of the Restricted Units. For avoidance of doubt, a
sample affordability matrix based on AMI is attached as Exhibit G; however, the affordability
requirements in the Restrictive Covenants will be index-based, tied to AMI, and pursuant to the
Restrictive Covenants, rental and sale/resale prices of the Restricted Units will be based on the
most recent affordability data available through the Housing and Urban Development’s Housing
Availability Data System or other similar affordability data that is available at the time of rental
or sale/resale. Outlaw’s covenants described in this Section 3.12 are referred to herein as the
“Affordable Housing Covenants.” Outlaw and the Developer each acknowledge and agree that
the Affordable Housing Covenants are fundamental to the City’s agreements hereunder. Outlaw
acknowledges that, as development proceeds at 707 Peach Street, it may be required to record
other instruments to implement the Affordable Housing Covenants and provide for the
affordability of the Restricted Units, in addition to or in replacement of the Restrictive Covenants
to be recorded as a condition to reimbursement of the Developer under this Agreement, and
Outlaw agrees to record such other instruments if necessary. Outlaw acknowledges that, as
determined by the City, one-person household pricing relates to studios, two-person household
pricing relates to one bedroom units, three-person household pricing relates to two bedroom
units, and four-person household pricing relates to three bedroom units.
Section 4.City Undertakings. Subject to satisfaction of all conditions in Section 5 below,
and solely from Project Generated Tax Increment, subject to the prior lien of the Series 2017
Bond and the debt service reserve account therefor, the City agrees to reimburse the Developer in
an amount equal to the lesser of (i) the amount of the Eligible Costs (not to exceed $583,445), or
(ii) the Project Generated Tax Increment.
Section 5.Reimbursement for the Eligible Costs. Reimbursement of the Developer for
Eligible Costs shall be subject to the following conditions and in accordance with the following
procedures:
5.1.Conditions to Reimbursement.
(a)(i) The Developer must have completed or satisfied each of the Milestones by the
applicable Milestone Date, as such date may have been extended pursuant to Section 3.4 hereof,
(ii) the City must have issued a certificate of occupancy for the Project, (iii) the Infrastructure
Improvements must have been completed in their entirety and the City must have delivered to
the Developer written acceptance of the Infrastructure Improvements (which may be in the form
of a Certificate of Completion or such other format as required by the City), and (iv) the
Developer must demonstrate to the City’s satisfaction, by a title report or other means acceptable
to the City, that the Infrastructure Improvements are free of financial liens and any
encumbrances affecting the Infrastructure Improvements must be acceptable to the City.
(b)Reimbursement by the City for costs of the Infrastructure Improvements must be
based on paid invoices for costs incurred by the Developer, its contractors and subcontractors or
utility companies, which the Developer must supply to the City. The City may reject, in its sole
discretion, any invoice related to the Infrastructure Improvements. The City will notify the
Developer of any rejected invoice and the reason it was rejected.
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(c)The Parties agree that the City will have no obligation to pay or reimburse any of
the Eligible Costs unless at the time of such request (i) all of the Developer’s representations as
set forth in Section 2.2 are true and correct, (ii) the Developer is not in breach of any covenant or
undertaking as set forth in Section 3, and (iii) there shall be adequate Tax Increment on hand to
satisfy all financial obligations related to the Series 2017 Bond and the debt service reserve
account for the Series 2017 Bond such that Project Generated Tax Increment is available to
reimburse the Developer.
(d)The Developer and/or Outlaw shall have provided evidence satisfactory to the
City of Outlaw’s compliance with the Affordable Housing Covenants and the Restrictive
Covenants, which shall include evidence that the Restrictive Covenants have been recorded with
the Gallatin County Clerk and Recorder’s Office and, if development has proceeded at 707
Peach Street, shall include other information regarding the Restricted Units, which may include
the recorded forms of the deeds to the Restricted Units, closing statements prepared by a third-
party escrow agent, outreach and marketing materials relating to the rental or sale of the
affordable housing units, rental and/or sale data relating to the Restricted Units, and/or other
relevant information.
(e)After receiving a certificate of occupancy for the Project, the Developer shall
provide to the City a signed Developer certificate substantially in the form attached as Exhibit E-
1 hereto and acceptable to the City, accompanied by the invoices and lien waivers from the
contractors or subcontractors that have performed the work to be reimbursed. In addition, the
Developer agrees to provide to the City any additional information requested by the City for the
City to determine whether the Developer’s request for reimbursement complies with this
Agreement. Based on this Developer certificate and the related information provided by the
Developer, the City Manager or his or her designee shall determine the total dollar amount of
Eligible Costs that may be reimbursed (up to $583,445).
(f)The Developer or other person(s) or entity responsible for paying such taxes, shall
have paid property taxes with respect to the Project for two full Fiscal Years after the assessed
and taxable values of the Project, as completed, are reflected in the certified taxable values of the
City provided by the Department of Revenue. For example, if the Project is completed in April
2023, the value of the Project as completed will be assessed by the Department of Revenue in
January 2024; included in certified values provided to the City in August 2024; and the
Developer must pay property taxes due November 30, 2024, May 31, 2025, November 30, 2025
and May 31, 2026 (fiscal years 2024/25 and 2025/26) before it is eligible for reimbursement.
The amounts paid by the Developer in the first five Fiscal Years for which the assessed and
taxable values of the Project, as completed, are reflected in the certified taxable values of the
City constitute the “Project Generated Tax Increment.”
If any of the above conditions are not satisfied in the determination of the City, the City shall
have no obligation to reimburse any of the Eligible Costs and the City’s determination to refrain
from reimbursing, or its inability to reimburse, any of the Eligible Costs shall not be or result in a
default of this Agreement.
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5.2.Process for Reimbursement.
(a)Following determination of the dollar amount of the Eligible Costs that may be
reimbursed under Section 5.1(e), and the Developer’s payment of property taxes relating to the
Project as completed for two full Fiscal Years, as described under Section 5.1(f) above,
Developer shall submit to the Director of Economic Development a certificate substantially in
the form attached hereto as Exhibit E-2, together with such supporting documentation as may be
requested by the City, showing the amount of the Project Generated Tax Increment paid by the
Developer at that time.
(b)The Parties expect that the Project Generated Tax Increment generated in the first
two Fiscal Years after the assessed and taxable values of the Project, as completed, are reflected
in the certified taxable values of the City will be sufficient to reimburse the Developer in full for
the Eligible Costs (up to $583,445). However, if the Project does not generate sufficient Project
Generated Tax Increment to reimburse the Developer in full for the Eligible Costs (up to
$583,445) in the first two Fiscal Years after the full assessed and taxable values of the Project, as
completed, are reflected in the City’s certified values, the Developer may submit additional
certificates and requests for reimbursement, substantially in the form attached hereto as Exhibit
E-2. Such certificates may be submitted not more than twice in any Fiscal Year. If the Project
Generated Tax Increment has not been sufficient to reimburse the Developer in full for the
Eligible Costs (up to $583,445) by the end of the fifth Fiscal Year after the assessed and taxable
values of the Project, as completed, are reflected in the certified taxable values of the City, this
Agreement shall terminate and the Developer is not eligible for additional reimbursement.
Section 6.Covenants to Pay Taxes.
6.1.Taxes. The Developer, or, following completion of the Project and the
establishment of the Project as a condominium, the condominium owners’ association, as the
Developer’s successor and assign under this Agreement (the “Condominium Owners’
Association”), shall pay or cause to be paid when due and prior to the imposition of penalty all
Taxes and all installments of any special assessments payable with respect to the Land and the
Project and any improvements thereto or extension thereof.
6.2.Maintenance of Land and Project. The Developer, for itself and its successors
and assigns, including the Condominium Owners’ Association or other future owners of the
Land and the Project, agrees to use its commercially reasonable best efforts to maintain and
operate the Land and the Project so as to be able at all times to pay promptly and when due all
property taxes levied with respect to the Land and the Project.
6.3.Injunction; Specific Performance. The Parties agree that, in the event of a breach
of this Section 6 by the Developer or its successors or assigns, the City would suffer irreparable
harm. Therefore, in the event the Developer or its successors or assigns fails to comply with the
provisions of this Section 6, the Developer agrees that the City may pursue any remedy at law or
in equity, including, without limitation, the remedies of injunction and specific performance.
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Section 7.Indemnification and Insurance.
7.1.Indemnification. The Developer releases the City and all City Commission
members, board members, officers, agents, servants and employees of the City (the “Indemnified
Parties”) from, and covenants and agrees that the Indemnified Parties shall not be liable for, and
agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss, damage,
cost (including reasonable attorneys’ fees), claim, demand, suit, action or other proceeding
whatsoever (i) arising or purportedly arising out of, or resulting or purportedly resulting from,
the acquisition and construction of the Project, including the Infrastructure Improvements, any
violation by the Developer of any agreement, condition or covenant of this Agreement, the
ownership, maintenance and operation of the Project, or the presence on any portion of the Land,
of any dangerous, toxic or hazardous pollutants, contaminants, chemicals, waste, materials or
substances; or (ii) which is proximately caused by the Developer or its officers, agents,
contractors, consultants or employees.
7.2.Insurance. Developer, or, following completion of the Project, the Condominium
Owners’ Association, shall keep and maintain the Project at all times insured against such risks
and in such amounts, with such deductible provisions, as are customary in connection with
facilities of the type and size comparable to the Project, and the Developer, or the Condominium
Owners’ Association, shall carry and maintain, or cause to be carried and maintained, and pay or
cause to be paid timely the premiums for direct damage insurance covering all risks of loss,
including, but not limited to, the following:
1.fire
2.extended coverage perils
3.vandalism and malicious mischief
4.boiler explosion (but only if steam boilers are present)
5.collapse
on a replacement cost basis in an amount equivalent to the Full Insurable Value thereof. “Full
Insurable Value” shall include the actual replacement cost of the Project, exclusive of
foundations and footings, without deduction for architectural, engineering, legal or
administrative fees or for depreciation. The policies required by this Section 7.2 shall be subject
to a no coinsurance clause or contain an agreed amount clause, and must contain a deductibility
provision not exceeding $100,000.
Subject to the terms of any mortgage relating to the Project, policies of insurance
required by this Section 7.2 shall insure and be payable to Developer or the Condominium
Owners’ Association and shall provide for release of insurance proceeds to Developer or the
Condominium Owners’ Association for restoration of loss. The City shall be furnished
certificates showing the existence of such insurance. In case of loss, Developer or the
Condominium Owners’ Association is hereby authorized to adjust the loss and execute proof
thereof in the name of all parties in interest.
During construction of the Project, any and all of the foregoing insurance policies may be
maintained by the Developer’s contractor; provided that once the Project is placed into service,
Developer or the Condominium Owners’ Association shall maintain all of the foregoing
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insurance policies. In addition, as a condition to placing the Project in service, the City may
require that the Developer or owner of the Project obtain additional insurance that would protect
the City or the City’s interest in the Infrastructure Improvements.
In addition to and independent of the above, the Developer shall at the Developer’s
expense secure liability insurance through an insurance company or companies duly licensed and
authorized to conduct insurance business in Montana. The insurance shall not contain any
exclusion for liabilities specifically assumed by the Developer in this Section. The insurance
shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be
asserted or claimed against, recovered from, or suffered by the City in relation to construction of
the Project and the Infrastructure Improvements without limit and without regard to the cause
therefore. The Developer must furnish to the City an accompanying certificate of insurance and
accompanying endorsements in amounts not less than as follows:
Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate
The above amounts shall be exclusive of defense costs. The City, its officers, agents, and
employees, shall be endorsed as an additional or named insured on a primary non-contributory
basis on the Commercial General Liability policy. The insurance and required endorsements
must be in a form suitable to City and shall include no less than a thirty (30) day notice of
cancellation or non-renewal. The City must approve all insurance coverage and endorsements
prior to the Developer commencing work on Project or Infrastructure Improvements. Developer
must notify the City within two (2) business days of Developer’s receipt of notice that any
required insurance coverage will be terminated or Developer’s decision to terminate any required
insurance coverage for any reason.
Section 8.General Provisions.
8.1.Conflicts of Interest; City’s Representatives Not Individually Liable. The
Developer represents that it does not employ, retain, or contract with an officer or employee of
the City and that no member, officer or employee of the City has a personal or financial interest,
direct or indirect, in this Agreement or in the Project, or a financial interest in the Infrastructure
Improvements. No member, officer or employee of the City shall be personally liable to
Developer in the event of any default under or breach of this Agreement by the City, or for any
amount that may become due to Developer for any obligation issued under or arising from the
terms of this Agreement.
8.2.Rights Cumulative. The rights and remedies of the Parties of this Agreement,
whether provided by law or by this Agreement, shall be cumulative, and the exercise by any
Party hereto of any one or more of such remedies shall not preclude the exercise by such Party,
at the same or different times, of any other remedy for the same default or breach or of any of its
remedies for any other default or breach of the Party subject to the limitation of remedies
provided herein. No waiver made by such Party with respect to the performance or the manner
or time thereof, of any obligation under this Agreement, shall be considered a waiver with
respect to the particular obligation of the other Party or a condition to its own obligation beyond
those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard
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to any other rights of the Party making the waiver of any obligations of the other Party. Delay by
a Party hereto instituting or prosecuting any cause of action or claim hereunder shall not be
deemed a waiver of any rights hereunder.
8.3.Term of Agreement.
(a)This Agreement shall remain in effect until the earlier of (i) the date that is 10
days after the date the City reimburses the Developer in full hereunder, or (ii) the termination of
this Agreement pursuant to Section 5.2(b) or pursuant to Section 3.11; provided that this
Agreement may be earlier terminated by the City in its sole discretion at any time after failure by
the Developer to complete or satisfy a Milestone by the applicable Milestone Payment Date (as
such date may be extended as described in Section 3.4).
(b)Notwithstanding the foregoing provisions of this Section 8.3, (i) Sections 6, 7, and
8 of this Agreement shall in all events survive the termination of this Agreement, and (ii) if the
Developer is reimbursed under this Agreement, Section 3.12 shall survive the termination of this
Agreement.
8.4.Limitation on City Liability. No agreements or provisions contained in this
Agreement nor any agreement, covenant or undertaking by the City contained in any document
in connection with the Project, including the Infrastructure Improvements, or the Eligible Costs
shall give rise to any pecuniary liability of the City or a charge against its general credit or taxing
powers, or shall obligate the City financially in any way except with respect to then-available
Project Generated Tax Increment. No failure of the City to comply with any term, condition,
covenant or agreement herein shall subject the City to liability for any claim for damages, costs
or other financial or pecuniary charge except to the extent that the same can be paid or recovered
from then-available Project Generated Tax Increment; and no execution on any claim, demand,
cause of action or judgment shall be levied upon or collected from the general credit, general
funds or taxing powers of the City (except as such constitute then-available Project Generated
Tax Increment). Nothing herein shall preclude a proper party in interest from seeking and
obtaining specific performance against the City for any failure to comply with any term,
condition, covenant or agreement herein; provided that no costs, expenses or other monetary
relief shall be recoverable from the City except as may be payable from the Project Generated
Tax Increment. This Agreement shall not constitute or be construed to give rise to a debt of the
City.
8.5.Assignment. This Agreement is unique among the City, the Developer and
Outlaw and no Party may assign any rights or privileges, or delegate any duties or obligations
under this Agreement, without first obtaining the written consent of the other Party.
Notwithstanding, Outlaw may assign its interest in and delegate its duties under this Agreement
to a related entity that may be created for the purchase of 707 Peach Street, with written notice to
the City identifying such successor entity.
8.6.Successors Bound By Agreement; No Third Party Beneficiary; No Property
Interest. Subject to compliance with Section 8.5, this Agreement will inure to the benefit of and
be binding upon the Parties to this Agreement and their respective successors in interest and
permitted assignees. This Agreement is for the exclusive benefit of the Parties, does not
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constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third
party. This Agreement, by itself, does not create or give rise to a property interest in the Land or
the Project.
8.7.Prior Agreements. This Agreement supersedes, merges and voids any and all
prior discussions, negotiations, agreements and undertakings between the Parties with respect to
the subject matter of this Agreement. The Parties waive and release each other from any claims,
actions, or causes of action that relate in any manner to any prior discussions, negotiations,
agreements and undertakings between the Parties with respect to the subject matter of this
Agreement.
8.8.Entire Agreement. This Agreement, including any exhibits and attachments
hereto, embodies the entire agreement and understanding of the Parties with respect to its subject
matter. All Parties shall be prohibited from offering into evidence in any arbitration or civil
action any terms, conditions, understandings, warranties, statements or representations, whether
oral or written, with respect to the subject matter of this Agreement and that are not contained in
this Agreement.
8.9.Amendments, Changes and Modifications. This Agreement may be amended and
any of its terms may be modified only by written amendment authorized and signed by the
Parties hereto.
8.10.Headings. The headings of articles and sections in this Agreement are inserted for
convenience of reference only and do not limit or amplify the terms and provisions of the
Agreement in any manner. The headings will be ignored and will not affect the construction of
any provisions of this Agreement.
8.11.Notice. Any formal notice, demand or communication required or permitted by
the terms of this Agreement to be given to the City, the Developer or Outlaw will be in writing
and will be delivered to such Party either: (i) by personal hand-delivery; or (ii) by depositing the
same in the United States mail, certified mail with return receipt requested, addressed to such
Party at the address named below, with postage prepaid thereon. Notice will be deemed
complete upon receipt of the notice pursuant to any of the foregoing methods of notice.
If to City:
City of Bozeman
Attention: Bozeman City Manager
121 N. Rouse Ave.
P.O. Box 1230
Bozeman, MT 59771
With a copy to:
City of Bozeman
Attention: Economic Development Director
121 N. Rouse Ave.
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P.O. Box 1230
Bozeman, MT 59771
If to Developer:
Wild Peach, LLC
Attention: Steve Borup & Ryan Kulesza
P.O. Box 161236
Big Sky, MT 59016
If to Outlaw:
Outlaw Real Estate Partners, LLC
Attention: Steve Borup & Ryan Kulesza
P.O. Box 161236
Big Sky, MT 59016
With Copy to:
Holly March Summers
March Law, P.C.
517 S. 22nd Avenue, Suite 1
Bozeman, MT 59718
The City, the Developer and Outlaw, by notice given hereunder, may designate different
addresses to which subsequent notices, certificates or other communications should be sent.
8.12. Severability. If any provision of this Agreement is declared void or held invalid,
such provision will be deemed severed from this Agreement and the remaining provisions of this
Agreement will otherwise remain in full force and effect.
8.13.Duplicate Originals or Counterparts. This Agreement may be executed in two or
more counterparts, each of which will be deemed to be an original copy of this Agreement and
all of which, when taken together, will be deemed to constitute one and the same agreement.
8.14.Place of Performance. The place of performance of this Agreement will be in the
City of Bozeman, Gallatin County, Montana.
8.15.Governing Law. This agreement and the legal relations between the Parties
hereto will be governed by and construed in accordance with the laws of the State of Montana,
without giving effect to any choice of law statutes, rules, or principles.
8.16.Dispute Resolution.
(a)Any claim, controversy, or dispute between the Parties, their agents, employees,
or representatives shall be resolved first by negotiation between senior-level personnel from each
Party duly authorized to execute settlement agreements. Upon mutual agreement of the Parties,
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the Parties may invite an independent, disinterested mediator acceptable to the Parties to assist in
the negotiated settlement discussions.
(b)If the Parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a court of competent
jurisdiction in compliance with the applicable law and the provisions of this Agreement.
8.17.Further Assurances and Corrective Instruments. The Parties agree that they will,
from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and
delivered, such supplements hereto and such further instruments as may reasonably be required
for correcting any inadequate or incorrect description of the Project, including the Infrastructure
Improvements, or the Eligible Costs or for carrying out the expressed intention of this
Agreement.
8.18.Reports/Accountability/Public Information. The Developer agrees to develop
and/or provide documentation as requested by the City demonstrating the Developer’s
compliance with the requirements of this Agreement. The Developer shall allow the City, its
auditors, and other persons authorized by the City to inspect and copy its books and records for
the purpose of verifying that the monies reimbursed to the Developer pursuant to this Agreement
were used in compliance with this Agreement and all applicable provisions of federal, state, and
local law. The Developer shall not issue any statements, releases or information for public
dissemination regarding this Agreement or the work contemplated hereunder without prior
written approval of the City.
[Balance of page intentionally left blank]
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IN WITNESS WHEREOF, the Parties hereto have caused this Development Agreement
to be executed as of the 25th day of January, 2022.
CITY OF BOZEMAN, MONTANA
By:_______________________________________
Printed Name: Jeff Mihelich
Title: City Manager
[Signature Page to Development Agreement]
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WILD PEACH, LLC
By:
Name:
Title:
[Signature Page to Development Agreement]
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OUTLAW REAL ESTATE PARTNERS, LLC
By:
Name:
Title:
[Signature Page to Development Agreement]
257
A-1
EXHIBIT A
PROJECT COSTS
Description of Cost Cost
Land & Building Purchase Price $ 3,400,000
Associated Acquisition Costs 59,000
Soft Costs 1,787,920
Hard Costs 15,909,756
G&A 796,558
Marketing 100,000
Contingency 508,699
Interest Reserve 705,567
Loan Fees 232,500
Total $ 23,500,000
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B-1
EXHIBIT B
LEGAL DESCRIPTION OF THE LAND
259
C-1
EXHIBIT C
ELIGIBLE COSTS
Infrastructure
Improvements:
Demolition of Existing Structures $ 98,000.00
Sidewalks, curbs, gutters, pedestrian mall and
alley 250,000.00
Public/utility infrastructure 30,000.00
Communications infrastructure—fiber 20,000.00
Project Fees and
Charges:
Impact fees 171,250.68
Cash in lieu of water rights 14,194.80
Total Eligible Costs:$ 583,445.48
260
D-1
EXHIBIT D
MILESTONES
MILESTONE MILESTONE DATE
Site Plan Submittal to the City August 27, 2021 – completed
Development Building Permit Submittal February 18, 2022 – completed
Start of Development Construction May 11, 2022
Start of Infrastructure Construction June 1, 2022
Completion of Infrastructure Substantial Construction November 1, 2023
Completion of Development Construction (occupancy) December 31, 2023
261
E-1-1
EXHIBIT E-1
FORM OF DEVELOPER CERTIFICATE TO ESTABLISH AMOUNT OF ELIGIBLE COSTS
TO:City of Bozeman, Montana
FROM:Wild Peach, LLC (the “Developer”)
SUBJECT:Eligible Costs
This Developer Certificate requests $_________ for reimbursement of Eligible Costs, as
defined in the Development Agreement among the Developer, Outlaw Real Estate Partners, LLC
and the City of Bozeman, Montana, dated as of January 25, 2022 (the “Development
Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective
meanings given such terms in the Development Agreement.
Pursuant to Section 5.1(d) of the Development Agreement, the undersigned hereby
certifies on behalf of the Developer that:
(a)the expenditures for which reimbursement is requested are listed in
summary form in the attached schedule headed “Project Expenditures;”
(b)invoices paid by the Developer corresponding to the expenditures set forth
on the attached Project Expenditures Schedule are appended to the attached schedule
headed “Project Invoices;”
(c)the amounts for which reimbursement is requested have been paid by the
Developer to the City for Project Fees and Charges or to contractors, subcontractors,
materialmen, engineers, architects or other persons who or that have performed necessary
or appropriate services or supplied necessary or appropriate materials for the acquisition,
construction, renovation, equipping, and installation of the Infrastructure Improvements;
(d)with respect to the Infrastructure Improvements, the contractor and
subcontractors were solicited and retained competitively and all persons performing work
on the Infrastructure Improvements were paid the Montana prevailing wage for such
work;
(e)the reimbursement of the amounts requested will not result in a breach of
any of the covenants of the Developer contained in the Development Agreement; and
(f)no litigation has been instituted or is threatened with regard to any
amounts sought to be reimbursed, and binding and enforceable lien waivers have been
obtained from all contractors, subcontractors, materialmen, and others with regard to all
work related to any amounts for which reimbursement is requested.
The Developer represents that all of the representations of the Developer in Section 2.2 of
the Development Agreement are true and correct as of the date hereof and the Developer is not in
default of the performance of any of its undertakings or obligations under Section 3 of the
Development Agreement as of the date hereof.
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E-1-2
Dated: _____________, 20__Wild Peach, LLC
By:
Authorized Developer Representative
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E-2-1
EXHIBIT E-2
FORM OF DEVELOPER CERTIFICATE REGARDING PROJECT GENERATED TAX
INCREMENT
TO:City of Bozeman, Montana
FROM:Wild Peach, LLC (the “Developer”)
SUBJECT:Project Generated Tax Increment
This Developer Certificate relates to Project Generated Tax Increment, as defined in the
Development Agreement among the Developer, Outlaw Real Estate Partners, LLC and the City
of Bozeman, Montana, dated as of January 25, 2022 (the “Development Agreement”).
Capitalized terms used but not otherwise defined herein shall have the respective meanings given
such terms in the Development Agreement.
Pursuant to Section 5.2 of the Development Agreement, the undersigned hereby certifies
on behalf of the Developer that on [[___________], 20__, [___________], 20__,
[___________], 20__ and [___________], 20__], the Developer, and/or person(s) or entity
responsible for paying taxes, has paid property taxes relating to the Project in the total amount of
$[______]. The Developer has attached proof of each payment to this certificate.
The Developer is eligible to be reimbursed for $[______]1 in total Eligible Costs. [The
Developer has previously been reimbursed for Eligible Costs in the amount of $[_____], and as
of the date hereof, the Developer is eligible to be reimbursed for an additional $[_______] in
Eligible Costs.]2
The Developer further certifies that all of the representations of the Developer in Section
2.2 of the Development Agreement are true and correct as of the date hereof and the Developer is
not in default of the performance of any of its undertakings or obligations under Section 3 of the
Development Agreement as of the date hereof.
Dated: _____________, 20__Wild Peach, LLC
By:
Authorized Developer Representative
1 [Should be the lesser of total Project Generated Tax Increment in the paragraph above or established
amount of Eligible Costs (not to exceed $[583,445]).]
2 To be used for additional requests pursuant to Section 5.2(b).
264
F-1
EXHIBIT F
265
G-1
EXHIBIT G
Sample Affordable Housing Pricing Matrix
266
G-1
EXHIBIT H
[Form of Affordable Housing Restrictive Covenant and Agreement]
267
When Recorded Return to:
City of Bozeman
City Clerk
PO Box 1230
Bozeman, MT 59771-1230
AFFORDABLE HOUSING
RESTRICTIVE COVENANT AND AGREEMENT
THIS AFFORDABLE HOUSING RESTRICTIVE COVENANT AND
AGREEMENT (“Restrictive Covenant”) made and entered into this ______ day of
________________, 20__, by and between the CITY OF BOZEMAN, a self-governing
municipal corporation organized and existing under its Charter and the laws of the State of
Montana with offices at 121 N. Rouse Avenue, Bozeman, Montana 59771-0640, hereinafter
referred to as “City”, and [____________] located at P.O. Box 161236, Big Sky, MT 59716,
hereinafter referred to as “Owner” and together with the City referred to as the “Parties.”
This Restrictive Covenant applies to the real property (“Property”) the legal description
of which follows:
Lots 1-8 and 11-28 in Block 100 of the Northern Pacific Addition to the City of
Bozeman, according to the plat thereof on file and of record in the office of the Gallatin
County Clerk and Recorder’s Office, Gallatin County, Montana
RECITALS:
WHEREAS, it is the intent and purpose of the Owner to meet the conditions of the
Development Agreement (“Agreement”) entered into between the City, Wild Peach, LLC (“Wild
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Affordable Housing Restrictive Covenant and Agreement Page 2 of 7
Peach”) and a [related entity, Outlaw Real Estate Partners, LLC (“Outlaw”)] in relation to the
development of the Wildlands Project (Application No. ______) by Wild Peach; and
WHEREAS, in order to enhance the long-term affordability of the Northeast
Neighborhood, [Owner][Outlaw] and Wild Peach entered into the Agreement with the City of
Bozeman stipulating that Wild Peach will be reimbursed from tax increment revenues of the City
for a portion of the eligible costs of the Wildlands Project only if, among other requirements and
subject to the terms and conditions of the Agreement, Owner agrees to place a restrictive
covenant on the Property requiring any development of the Property to include a minimum of 3
affordable housing units; and
WHEREAS, Owner agrees that it receives a significant benefit from the Agreement, as
[the controlling member of Wild Peach][an entity with the same controlling member as Wild
Peach]; and
WHEREAS, the parties have determined that it is in the best interests of the City and
Owner, and in furtherance of the public health, safety and welfare of the community to enter into
and implement this Restrictive Covenant.
IN CONSIDERATION of the mutual covenants and agreements herein contained, the
parties hereto agree as follows:
1. Recitals Incorporated by Reference. The above recitals are true and correct, and are
incorporated by reference herein and made a part hereof.
2. Affordable Housing Requirement. The Owner hereby covenants and agrees that any
development of the Property will include a minimum of three (3) residential housing
units, restricted by this Restrictive Covenant throughout the term of this Restrictive
Covenant for use as “Affordable Housing Units,” as defined below. The Affordable
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Affordable Housing Restrictive Covenant and Agreement Page 3 of 7
Housing Units may be operated either as rental units or owner occupied units with
restrictions on resale prices, in the discretion of the Owner. Affordable Housing Units
are defined as housing units that are affordable to households with income equal to 120%
of the area medium income (“AMI”). Rental and sale/resale prices of the Affordable
Housing Units shall be based on the most recent affordability data available through the
Housing and Urban Development’s Affordability Data System for Bozeman or similar
affordability data available at the time of rental or sale/resale. As development of the
Property proceeds, the Owner will record additional instruments clarifying which
residential housing units developed on the Property constitute the Affordable Housing
Units. One-person household pricing relates to studios, two-person household pricing
relates to one bedroom units, three-person household pricing relates to two bedroom
units, and four-person household pricing relates to three bedroom units.
3. Enforcement. Owner agrees this Restrictive Covenant is a binding agreement between
Owner and the City, and that the City benefits by and may enforce this Restrictive
Covenant against the Owner or its successors in interest or assigns to any of the Property
subject to this Restrictive Covenant. The City shall not be liable in the event Owner or
Owner’s agent or a successor or assign of either terminates the tenancy of or refuses to
renew the lease of a tenant of an Affordable Housing Unit or in the event the Owner fails
to comply with the Montana Residential Landlord and Tenant Act or other applicable
laws or regulations.
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Affordable Housing Restrictive Covenant and Agreement Page 4 of 7
4. Satisfaction of Condition of Approval. The City agrees that execution, recordation,
performance of, and compliance with this Restrictive Covenant shall constitute
performance of Wild Peach, LLC’s and Owner’s obligation to provide an affordable
housing restrictive covenant under the Agreement.
5. Term. This Restrictive Covenant shall remain in place and be enforceable for thirty (30)
years from the date of the filing of this Restrictive Covenant with the Gallatin County
Clerk and Recorder or so long as the Property remains residential in nature, whichever is
longer. This Restrictive Covenant may not be removed prior to its natural expiration
without the prior written consent of the Bozeman City Commission.
6. Monitoring and Reporting. During the term of this Restrictive Covenant Owner will
separately contract with an affording housing agency to provide initial and annual income
qualification of tenants, ongoing compliance monitoring, and an annual report to the
Owner and City demonstrating compliance with this Restrictive Covenant. If such
separate contract terminates for any reason during the term of this Restrictive Covenant,
Owner agrees to inform the Community Development Director in writing within ten (10)
days of termination, informing the Community Development Director of Owner’s plan
for renewed compliance with this requirement.
7. Recording. This Restrictive Covenant must be filed and recorded with the Gallatin
County Clerk and Recorder prior to the reimbursement of Wild Peach under the terms of
the Agreement.
8. Governing Law and Venue. This Restrictive Covenant shall be construed under and
governed by the laws of the state of Montana. In the event of litigation, venue is in the
Eighteenth Judicial District Court, in and for County of Gallatin, State of Montana.
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Affordable Housing Restrictive Covenant and Agreement Page 5 of 7
9. Compliance with Laws. The Owner shall comply with all applicable federal, state and
City laws and regulations, including the Montana Residential Landlord and Tenant Act,
§§ 70-24-101 et seq., MCA, if applicable.
10. Attorney’s Fees. In the event it becomes necessary for either party to this Restrictive
Covenant to retain an attorney to enforce any of its terms or conditions, then the
prevailing party shall be entitled to reasonable attorney’s fees and costs, to include the
salary and costs of in-house counsel including City Attorney.
11. Waiver. No waiver by either party of any breach of any term, covenant or agreement
shall be deemed a waiver of the same or any subsequent breach of this same or any other
term, covenant or agreement. No covenant, term or agreement shall be deemed waived
by either party unless waived in writing.
12. Nondiscrimination. The Owner shall not discriminate on the basis of race, color,
religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived
sexual orientation, gender identity, physical or mental disability in the lease, use or
occupancy of the Property or any portion thereof or in connection with the employment
of persons for the operation and management of the Property or any portion thereof.
13. Invalid Provision. The invalidity or unenforceability of any provision of this Restrictive
Covenant shall not affect the other provisions hereof, and this Restrictive Covenant shall
be construed in all respects as if such invalid or unenforceable provision were omitted.
14. No Agency. Nothing in this Restrictive Covenant shall be deemed to create an agency,
partnership, joint venture or employment relationship between the City and Owner.
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Affordable Housing Restrictive Covenant and Agreement Page 6 of 7
15. Modifications. No modifications or amendment of this Restrictive Covenant shall be
valid unless evidenced by a writing signed by the parties hereto and recorded against the
Property.
16. Entire Agreement. This Restrictive Covenant constitutes the entire agreement of the
Parties relating to the subject matter addressed in this Restrictive Covenant. This
Restrictive Covenant supersedes all prior communications, contracts, or agreements
between the Parties with respect to the subject matter addressed in this Restrictive
Covenant, whether oral or written.
17. Successors. This Restrictive Covenant shall be binding upon, inure to the benefit of and
be enforceable by the parties hereto and their respective heirs, successors and assigns and
specifically to any subsequent purchaser of the Property.
18. Covenants to Run with the Land. The Parties intend that the terms of this Restrictive
Covenant shall be covenants running with the land and shall continue in effect with
respect to the entire Property notwithstanding any partition or division of the Property.
19. No Third Party Beneficiary. The terms and provisions of this Restrictive Covenant are
intended solely for the benefit of each party and their respective successors and assigns.
It is not the parties’ intent to confer third party beneficiary rights upon any other person
or entity. Owner affirms that it owns fee title to the Property and has authority to enter
into this Restrictive Covenant and to bind itself to the terms herein.
20. Remedies. In the event Owner or its successors or assigns fails to comply with this
Restrictive Covenant, the City may pursue any remedy at law or in equity, including,
without limitation, the remedies of injunction and specific performance.
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Affordable Housing Restrictive Covenant and Agreement Page 7 of 7
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed the day and year first above written.
[_________________]
By:_______________________________________
Title:_____________________________________
STATE OF MONTANA )
:ss
COUNTY OF GALLATIN )
On this ______ day of ________________, 20___, before me, the undersigned, a Notary
Public for the State of Montana, personally appeared_____________________ known to me to
be the _________________________of [__________], and acknowledged to me that he/she
executed the same for and on behalf of [__________].
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year first above written.
(SEAL)
_________________________________________
(Printed Name Here)
Notary Public for the State of ___________
Residing at _______________________
My Commission Expires:____________
(Use 4 digits for expiration year)
THE CITY OF BOZEMAN
____________________________________
BY: JEFF MIHELICH,
CITY MANAGER
CITY OF BOZEMAN
274
STATE OF MONTANA )
:ss
County of Gallatin )
On this _____ day of ________________ 20__, before me, a Notary Public for the State
of Montana, personally appeared [Jeff Mihelich], known to me to be the person described in and
who executed the foregoing instrument as City Manager for the City of Bozeman, whose name is
subscribed to the within instrument and acknowledged to me that he executed the same for and
on behalf of said City.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal on the day and
year first written above.
(SEAL)
_________________________________________
(Printed Name Here)
Notary Public for the State of Montana
Residing at _______________________
My Commission Expires:____________
(Use 4 digits for expiration year)
275
Memorandum
REPORT TO:City Commission
FROM:Aaron Funk, Controller
Anna Rosenberry, Assistant City Manager
SUBJECT:Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2021 and
Audit Results
MEETING DATE:January 25, 2022
AGENDA ITEM TYPE:Finance
RECOMMENDATION:I move to approve the Fiscal Year 2021 Annual Comprehensive Financial
Report and the accompanying Letter of Governance.
STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable
sources of funding for appropriate City services, and deliver them in a lean
and efficient manner.
BACKGROUND:Section 2-7-503 MCA requires that a financial report be prepared for every
fiscal year. This statute also requires a biannual audit of this report –
including the accounts, financial records, and transactions of all
administrative departments of the City – by independent certified public
accountants selected by the City Commission. The City Commission and City
Administration have historically believed that an annual audit provides a
higher level of financial assurance and fiscal integrity than a biannual audit,
and this intention is expressed in Section 5.09 of the City Charter. This policy,
along with the State legal reporting requirement, has been followed for
fiscal year 2021, and the clean unmodified opinion expressed by the audit
firm of Anderson ZurMuehlen & Co., P.C, has been included in the
accompanying ACFR report.
The Annual Comprehensive Financial Report (ACFR) of the CITY OF
BOZEMAN, MONTANA for the fiscal year ended JUNE 30, 2021 is hereby
submitted to the Commission. Responsibility for both the accuracy of the
data, and the completeness and fairness of the presentation, including all
disclosures, rests with the City. To the best of our knowledge and belief, the
enclosed data are accurate in all material respects and are reported in a
manner designed to present fairly the financial position and results of
operations of the various funds of the City. All disclosures necessary to
enable the reader to gain an understanding of the City's financial activities
have been included.
In addition to the financial audit, the City undertakes a single audit in
276
conformance with the Single Audit Act Amendments of 1996 and U.S. Office
of Management and Budget (OMB) Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Audits. The results of
this single audit, including a schedule of expenditures of federal awards, and
the independent auditor's reports on the City's internal controls and
compliance with legal requirements, are available in the City's single audit
report.
The ACFR is presented in three sections:
The Introduction Section includes the letter of transmittal, the City's
organization chart, and certificates of achievement.
The Financial Section includes the report of the independent auditors,
Management's Discussion and Analysis (MD&A), the basic financial
statements, including the government wide financial statements
comprised of the Statement of Net Position and the Statement of
Activities, and the accompanying notes to the financial statements.
The Financial Statement also includes the fund financial statements
including the governmental funds financial statements, the
proprietary funds financial statements, the fiduciary funds financial
statements, and the combining individual funds financial statements
for the nonmajor governmental funds and the internal service funds.
The Statistical Section includes selected financial and demographic
information, on a multi-year basis.
The transmittal letter read along with the MD&A provides an overview of
the financial statements and the financial performance of the City for fiscal
year 2021.
UNRESOLVED ISSUES:None
ALTERNATIVES:The ACFR is being presented in DRAFT form in case the Commission desires
any changes to be made before the final publishing.
FISCAL EFFECTS:A clean unmodified audit opinion on the City's financial statements is viewed
favorably by investment analysts and strengthens the City's ability to issue
bonds or other debt at a lower interest cost.
Attachments:
FY21 City of Bozeman Draft ACFR.pdf
Report compiled on: January 20, 2022
277
CITY OF BOZEMAN, MONTANA ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Prepared by the City of Bozeman Finance Department DRAFT278
CITY OF BOZEMAN, MONTANA ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021 TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal .......................................................................................................................................................................................................... 1-9 Governmental Financial Officers’ Association Certificate of Achievement ...................................................................................................................... 10 Organizational Chart ........................................................................................................................................................................................................... 11 City Elected Officials and Officers ................................................................................................................................................................................ 12-13 II. FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT ..................................................................................................................................................................... 14-16 A. MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................................................................................ 17-26 B. BASIC FINANCIAL STATEMENTS Government Wide Financial Statements
Statement of Net Position ........................................................................................................................................................................................ 27-28 Statement of Activities ................................................................................................................................................................................................. 29
Fund Financial Statements Governmental Fund Financial Statements Balance Sheet – Governmental Funds .............................................................................................................................................................. 30-31 Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Funds ............................................................................. 32 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................................................................... 33 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to The Statement of Activities – Governmental Funds .............................................................................................................................................. 34 Proprietary Fund Financial Statements Statement of Net Position – Proprietary Funds ................................................................................................................................................. 35-36 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ................................................................................ 37 Statement of Cash Flows – Proprietary Funds .................................................................................................................................................. 38-39
Fiduciary Fund Financial Statements Statement of Fiduciary Net Position – Fiduciary Funds ........................................................................................................................................ 40 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ..................................................................................................................... 41
Notes to Financial Statements ...................................................................................................................................................................................... 42-113 DRAFT279
CITY OF BOZEMAN, MONTANA ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021 TABLE OF CONTENTS (CONTINUED)
C. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT DISCUSSION AND ANALYSIS
Schedule of Changes in Total OPEB Liability & Related Ratios ..................................................................................................................................... 114 Schedule of Proportionate Share of Net Pension Liability and Schedule of Contributions ....................................................................................... 115-117 Notes to Required Supplementary Information – Pension Plan Changes .................................................................................................................. 118-123 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – General Fund .................................................................... 124 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual American Rescue Plan Special Revenue Fund ........................................................................................................................................................... 125 Notes to Required Supplementary Information – Budgetary Information ........................................................................................................................ 126 D. SUPPLEMENTAL INFORMATION Combining and Individual Fund Financial Statements and Schedules– Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds............................................................................................................................. 127-133 Combining Statement of Revenue, Expenditures, and Changes in Fund Balance – Nonmajor Governmental Funds ....................................... 134-140
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Other Major Governmental Funds ................................................................................................................................................................ 141-142 Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
Nonmajor Governmental Funds .................................................................................................................................................................... 143-157 Combining Nonmajor Proprietary Fund Statements Combining Statements of Net Position ............................................................................................................................................................... 158-159 Combining Statements of Revenues, Expenses, and Changes in Net Position .......................................................................................................... 160 Combining Statements of Cash Flows ................................................................................................................................................................ 161-162 Internal Service Funds Statements Combining Statement of Net Position ........................................................................................................................................................................ 163 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................................................................................................... 164 Combining Statements of Cash Flows ................................................................................................................................................................ 165-166
Fiduciary Funds Combining Statements of Fiduciary Net Position – Custodial Funds ........................................................................................................................ 167
Combining Statement of Changes Fiduciary Net Position – Custodial Funds ........................................................................................................... 168 DRAFT280
CITY OF BOZEMAN, MONTANA ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021 TABLE OF CONTENTS (CONTINUED)
III. STATISTICAL SECTION Financial Trends Section
Net Position by Component ....................................................................................................................................................................................... 169 Changes in Net Position ...................................................................................................................................................................................... 170-171 Fund Balances of Governmental Funds ..................................................................................................................................................................... 172 Changes in Fund Balances, Governmental Funds ...................................................................................................................................................... 173
Revenue Capacity Section Assessed value of Taxable Property ........................................................................................................................................................................... 174 City Taxable Market and Taxable Values .................................................................................................................................................................. 175 Tax Increment District Taxable Valuation Detail ...................................................................................................................................................... 176 Downtown Bozeman Improvement District & Comparison to City Taxable Value .................................................................................................. 177 Property Tax Levies in the Downtown Bozeman Improvement District ................................................................................................................... 178 Direct and Overlapping Property Tax Rates .............................................................................................................................................................. 179 Principal Property Tax Payers .................................................................................................................................................................................... 180 Principal Property Tax Payers in Downtown Bozeman Improvement District .......................................................................................................... 181 Property Tax Levies and Collections ......................................................................................................................................................................... 182
Water Sold by Type of Customer ............................................................................................................................................................................... 183 Water and Sewer Rates............................................................................................................................................................................................... 184
Debt Capacity Section
Ratios of Outstanding Debt by Type .......................................................................................................................................................................... 185 Ratios of General Bonded Debt Outstanding ............................................................................................................................................................. 186 Direct and Overlapping Governmental Activities Debt ............................................................................................................................................. 187 Legal Debt Margin Information ................................................................................................................................................................................. 188 Pledged Revenue Coverage ........................................................................................................................................................................................ 189 Debt Service Requirements and Coverage for Downtown Tax Increment District ................................................................................................... 190 Summary of Outstanding SIDs ................................................................................................................................................................................... 191 Revolving Fund Balance and Bond Secured Thereby ................................................................................................................................................ 192 Special Improvement District Assessment Billing and Collections ........................................................................................................................... 193
Demographics and Economic Section Demographic and Economic Statistics ....................................................................................................................................................................... 194 Principal Employers for Gallatin County ................................................................................................................................................................... 195
Operating Information Full-time Equivalent City Government Employees by Function/Program ................................................................................................................ 196
Operating Indicators by Function/Program ................................................................................................................................................................ 197 Capital Asset Statistics by Function/Program ............................................................................................................................................................ 198 DRAFT281
CITY OF BOZEMAN, MONTANA ANNUAL COMPREHENSIVE FINANCIAL REPORT
JUNE 30, 2021 TABLE OF CONTENTS (CONTINUED)
IV. SINGLE AUDIT SECTION Schedule of Expenditures of Federal Awards ................................................................................................................................................................... 199
Notes to Schedule of Expenditures of Federal Awards ..................................................................................................................................................... 200 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based On an Audit of Finance Statements Performed in Accordance with Government Auditing Standards ......................................................... 201-202 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance ..................................................................................................................................................... 203-204 Schedule of Findings and Questioned Costs ..................................................................................................................................................................... 205 Status of Prior Audit Findings ........................................................................................................................................................................................... 206 DRAFT282
PART I INTRODUCTORY SECTION
DRAFT283
1 CITY OF BOZEMAN, MONTANA
DATE, 2021
To the Citizens of the
City of Bozeman, Montana
The Annual Comprehensive Financial Report of the CITY OF BOZEMAN, MONTANA for the fiscal year ended JUNE 30, 2021 is hereby submitted.
Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best
of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position
and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities
have been included.
In addition to the financial audit, the City undertakes a single audit in conformance with the Single Audit Act Amendments of 1996 and U.S. Office of
Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Audits. The results of this single
audit, including a schedule of expenditures of federal awards, and the independent auditor’s reports on the City’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards, are available in the City’s issued
single audit report.
This transmittal letter is designed to complement the MD&A and should be read in conjunction with the MD&A. DRAFT284
2 CITY OF BOZEMAN, MONTANA
CITY OF BOZEMAN PROFILE
The City of Bozeman is located on the eastern slope of the Rocky Mountains and is the county seat of Gallatin County, Montana. Gallatin County encompasses
over 2,500 square miles, bordering Yellowstone National Park to its south. The City encompasses an area over 18 square miles with its next-closest municipality
being the City of Belgrade, approximately 7 miles from our outermost boundary. Bozeman is the county seat of Gallatin County and is the home to Montana
State University – Bozeman, and the Fighting Bobcats. Bozeman is located 143 miles west of Billings and 200 miles east of Missoula.
The City was incorporated in April of 1883 with a city council form of government, and later in January 1922 transitioned to its current city manager/city
commission form of government. The population of Bozeman in 2020 census is 53,293 – which is a total increase of 43% from April 2010 – which continues
Bozeman’s standing as the fourth largest city in the state.
The government provides a full range of services. These services include police and fire protection; sanitation services; water, waste water & storm water
utilities; the construction and maintenance of streets and infrastructure; recreational activities; cultural events; planning and zoning; and general administrative
services. The City, as a primary government, is supported or works closely with certain entities to provide these services to the citizens of the City of Bozeman.
The Bozeman Public Library Board of Trustees, Senior Advisory Council and the Parking Commission are excluded from presentation in these financial
statements, since their relationship with the City is strictly advisory in nature at this time.
DRAFT285
3 CITY OF BOZEMAN, MONTANA
ECONOMIC CONDITION AND OUTLOOK
Policom reported in 2020 that Bozeman is fastest growing Micropolitan area in the United States. With Bozeman’s population growing nearly 20 percent in the
last 5 years, it tops the ranks of population growth across all cities in Montana. Part of the draw to Bozeman is the increased number of college students attending
school at MSU for in-demand engineering and tech degrees, the substantial growth in tech companies migrating to the area, and an increase in relocation during
the pandemic that appears to be fueled by expanded remote-work options. There were 150 new single family homes and 125 multi-family residential building
permits issued in Bozeman in 2021. This continued growth has increased the need for City services and infrastructure. Montana State University has seen a
steady growth of enrollment over the last three years as well.
In to COVID-19, the United States’ economy continues to move forward with uncertainty, after the brief but severe pandemic recession of 2020. Fortunately,
Montana’s tourism industry was able to recover quickly from the initial impact of stay-at-home orders and closed businesses to see record visitation at
Yellowstone National Park during months of 2021. The expansion of our local tourism industry is one of multiple factors that has resulted in a pronounced
labor shortage. Montana’s shortage of workers throughout a wide variety of occupations and industries is as pronounced as anywhere in the country, with a
62% increase in job openings since before the pandemic began. We continue to watch all cash flow in all funds and from all sources and look for opportunities
to meet Bozeman’s infrastructure needs with increased federal funding becoming available.
On March 10, 2021, the House of Representatives approved a Senate-amended version of President Biden's $1.9 trillion COVID-19 relief package - the American
Rescue Plan. The package includes $350 billion in aid for state and local governments, along with additional funding for other areas like education, rental
assistance and transit. The President signed the bill into law on March 11, 2021. The City received over $6 million at the end of FY21 and will receive another
$6 million at the end of FY22.
The Consumer Price Index has grown over the last 10 years for the United States and particularly for the Western States. For FY20 the three year average
change was 1.97% while the Western State CPI-U is showing 3.49% three year average change. Before COVID-19 the unemployment rate is 2.4% and per
capita income is $30,268. The median single family home price for 2020 was $562,000. The top three major employers are Bozeman Deaconess Hospital,
Oracle America and Bozeman School District #7. The number of available jobs in Bozeman is at an all-time high. The City is booming with employment
opportunities as job growth continues to climb. Bozeman also offers a lower unemployment rate than in comparison cities. A tighter job market and lower
unemployment rate sets Bozeman apart from its peer cities.
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4 CITY OF BOZEMAN, MONTANA
BUDGET DEVELOPMENT PROCESS
The City of Bozeman budget serves several purposes. For the citizens of the City of Bozeman, it presents a picture of the city government operations and
intentions for the year. For the City Commission, it serves as a policy tool and as an expression of goals and objectives. For City Management, it is used as
an operating guide and a control mechanism.
The City Manager’s Recommended Budget is created and submitted to the City Commission. Public work sessions are then held by the Commissioners at
which time the City Manager, Finance Director, and department staff explain the budget recommendations and underlying justification for the requests. The
Commission also reviews departmental requests which could not be funded, as an indication of unmet needs. During (or following) the work sessions, the
Commissioners may make adjustments to the proposed budget. Following any adjustments to the City Manager's budget recommendation, a tentative
appropriation ordinance is prepared and a public hearing is held. The Commission may again make adjustments to the budget following the public hearing, after
which time, the Commission passes the appropriation ordinance in final form.
FINANCIAL POLICIES
The overall goal of the City's financial policies is to establish and maintain effective management of the city's financial resources. Formal policy statements
and major objectives provide the foundation for achieving this goal. The City avoids budgetary practices that balance current expenditures at the expense of
meeting future years' expenses and seeks to maintain a diversified and stable revenue base that is estimated in a realistic and conservative manner. For one-
time revenues, highest priority is given to the funding of capital assets or other non-recurring expenditures.
On-going expenditures are limited to levels which can be supported by current revenues. Construction projects and capital purchases of $25,000 or more are
included in the Capital Improvement Plan (CIP), with all capital purchases of $5,000 or more reported as capital outlays in the financial statements. Minor
capital outlays of less than $5,000 are included in the regular operating budget.
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5 CITY OF BOZEMAN, MONTANA
Spending of resources happen in the following order (they are categorized according to Generally Accepted Accounting Principles (GAAP) for state and local
governments, with the following general definitions):
• Restricted -- Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through
constitutional provisions or by enabling legislation.
• Committed -- Amounts constrained to specific purposes by the City Commission; to be reported as committed, amounts cannot be used for any other
purpose unless the City Commission takes action to remove or change the constraint.
• Assigned -- Amounts the City intends to use for a specific purpose; intent can be expressed by the Commission or by an official or body to which the
Commission delegates the authority. The City Commission delegates this authority to the City Manager.
• Unassigned -- Amounts that are available for any purpose; these amounts are reported only in the General Fund.
Long-term debt is limited to capital improvements which cannot be financed from current revenues and repays borrowed funds within a period that does not
exceed the expected useful life of the project. The City does not use long-term debt for financing current operations and adheres to a policy of full public
disclosure with regard to the issuance of debt.
A minimum level of general fund reserve equal to 2 months of annual revenues, or 16.67%, is maintained. This reserve is committed to be used for: cash flow
purposes, accrued employee payroll benefits which are not shown as a liability, unanticipated equipment acquisition and replacement, and to enable the city to
meet unexpected expenditure demands or revenue shortfalls.
The City manages and accounts for its financial activity in accordance with Generally Accepted Accounting Principles (GAAP), as set forth by the
Governmental Accounting Standards Board (GASB). The city maintains its accounting records for general governmental operations on a modified accrual
basis, with revenues recorded when available and measurable, and expenditures recorded when services or goods are received and liabilities incurred.
Accounting records for proprietary fund types and similar trust funds are maintained on an accrual basis, with all revenues recorded when earned and
expenses recorded at the time liabilities are incurred, without regard to receipt or payment of cash.
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6 CITY OF BOZEMAN, MONTANA
Internal Controls
Internal accounting controls are designed to provide reasonable (but not absolute) assurance of the safeguarding of assets against loss, theft or misuse. They
are also designed to aid in the reliability of financial records. The concept of reasonable assurance recognizes that the cost of a control should not exceed the
benefits likely to be derived and that the evaluation of costs and benefits requires estimates and judgments by management.
In developing and evaluating the City’s accounting system, great consideration is given to the adequacy of internal accounting controls. We believe that the
City of Bozeman’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.
HIGHLIGHTS OF FISCAL YEAR 2021 Continued construction of the new Bozeman Public Safety Center:. Ground breaking for the Bozeman Public Safety Center (BPSC) was early April, 2020
with an expected opening date of April 2022. On the November 11th, 2018 ballot, the citizens of
Bozeman voted to issue $36,965,000 in General Obligation bonds to fund the building of the
Bozeman Public Safety Center, which is to house the Police, City Attorneys, Municipal Court, one
Fire Station and public use spaces. The bonds were successfully sold in September of 2019 and will
be repaid using the City’s taxing authority. Total project cost is $43.5M about $37M of that is
building construction. BPSC is three stories and 95,000 square feet. All of the storm water
generated on site will be treated and stay on site and it is planned to have the largest building-mounted solar array in Montana.
Fiscal Year 2021 Strategic Plan Priorities: The Commission reviewed the five priorities from FY20 and added to additional priorities. The seven priorities
guiding the FY21 budget were:
• Community Outreach
• Affordable Housing
• Planning & Land Use Initiatives
• Annexation Analysis & Study
• Parks Maintenance District
• Climate Action
• Tax Fairness and Affordability DRAFT289
7 CITY OF BOZEMAN, MONTANA
Parks & Trails Maintenance District: May 5, 2020 the Citizens of Bozeman voted to approve the
creation of a Parks & Trails District for FY21. The plan for this district has been in the works for
years and developed first with consultants and furthered in the most recent Capital Improvement
Plan and internal staffing plan. This district removed the parks, recreation and aquatics
expenditures out of the general fund, and levied a special assessment to pay for the personnel,
operating and capital expenditures in the future. A citywide park and trail district is an effort to
solve three major issues of deferred maintenance, operations and maintenance of all city owned
parks, and equity.
FOR THE FUTURE
Strategic Plan
With the adoption of the Strategic plan, the FY22 budget incorporated efforts to implement each of the vision statements. The Commission set thirteen
priorities along with strides towards the strategic plan. The highlights of the impact on the budget include:
1. An Engaged Community. Fostering successful collaboration with other public agencies and building on our successes, which is being achieved
through City-County Regional Planning and other areas such as the CATS (EPIC-N) program with MSU. We are continuing our work to foster a
culture of civic engagement by using our adopted communication plan for the organization to expand Community Outreach and community
engagement.
2. An Innovative Economy. Supporting retention and growth of both the traded and local business sectors in coordination with the Economic
Development Plan that is budgeted to be updated. Working with our urban renewal districts we are strategically investing in infrastructure as a
mechanism to encourage economic development. We are reviewing policies, Perusing Grants and Philanthropic Funding, and will aid the
Commission in developing its steps towards its priority of Property Tax Relief.
3. A Safe, Welcoming Community. This budget includes steps towards an Inclusive City with training and a summit. The Bozeman Public Safety Center
opens in the last quarter of FY22. Body worn cameras as planned in the recent capital plan will be integrated with the new technology being
implemented at the Bozeman Public Safety Center. Identify Options to Ban Flavored Tobacco is being explored and a work session is planned for
the Commission. All though new state law might limit our efforts. DRAFT290
8 CITY OF BOZEMAN, MONTANA
4. A Well‐Planned City. The Parks, Recreation, Open Space, and Trails (PROST) Master Plan is being updated and this work started at the end of FY21.
Community Housing will be continuing the implementation of its action plan, which will provide more Affordable Housing opportunities along with
a ballot question for this fall’s election for a standalone mill levy. We have Planning & Land Use Initiatives with the City County Regional Planning,
and Code Updates. We will continue moving forward with our Annexation Analysis & Study with a Commission work session this fall.
5. A Creative, Learning Culture. The 1% of arts has been incorporated into our Capital Improvement Plan and we have projects that will include the 1%
on the ballot for a bond question this fall. This program provides a guaranteed funding mechanism for the acquisition of artwork for new public
facilities and civic spaces.
6. A Sustainable Environment. This Approved Budget looks at Climate Action Plan Implementation and continues to increase the Sustainability
Divisions’ budget from $255,909 in FY20 to $612,088 in FY22. We have work sessions scheduled at the end of FY21 and into FY22 for Sensitive
Lands Protection Planning, and Wetland Preservation and Banking.
7. A High Performance Organization. We have already stated the ground work and will complete in FY22 Advisory Board Consolidation. Throughout
the organization departments are working on collaborating and functioning as a high performing and innovative team. Staff continues to look at its
rates, fees and charges to ensure we are using equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean
and efficient manner.
COVID-19 continued response- We will continue to see the impacts of COVID, and the City will have to respond based on those impacts. We are ensuring
reserves are in place, designing work and work spaces for social distancing, and seeking Federal funding when possible. The economic impacts will be
monitored closely to be able to respond quickly and adjust our plans, strategies and spending.
OTHER INFORMATION
Independent Audit
The State of Montana requires a biannual audit of the books of accounts, financial records, and transactions of all administrative departments of the City by
independent certified accountants selected by the City Commission. It is the belief of the City Commission and Executive staff that an annual audit assures a
higher level of financial management and fiscal responsibility. This policy, along with the legal requirements, has been complied with and the auditors' opinion
of Anderson, ZurMuehlen & Co. P.C., has been included in this report.
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9 CITY OF BOZEMAN, MONTANA
Awards
The Government Finance Officers' Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bozeman
for its annual comprehensive financial report for the fiscal year ended June 30, 2020. This was the 37th consecutive year that the City has received this prestigious
award. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized annual comprehensive financial
report. This report satisfied both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current annual comprehensive financial report continues to meet the
Certificate of Achievement Program's requirement and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements
The preparation of the Annual Comprehensive Financial Report on a timely basis was made possible by the dedicated service of the entire staff of the Finance
Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report.
In closing, without the leadership and support of the governing body of the City, preparation of this report would not have been possible.
Sincerely,
Jeff Mihelich Anna Rosenberry, CPA City Manager Interim Director of Finance
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10 CITY OF BOZEMAN, MONTANA GOVERNMENT FINANCE OFFICERS’ ASSOCIATION CERTIFICATE DRAFT293
11 CITY OF BOZEMAN, MONTANA ORGANIZATIONAL CHART
Fiscal Year 2021
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12 CITY OF BOZEMAN, MONTANA CITY ELECTED OFFICIALS AND OFFICERS
Fiscal Year 2021
ELECTED OFFICIALS
Legislative
Cynthia Andrus Mayor Terence Cunningham Deputy Mayor Christopher Coburn Commissioner I-Ho Pomeroy Commissioner
Jennifer Madgic Commissioner
Judicial Karl Seel Colleen Herrington Municipal Judge Municipal Judge
OFFICERS
Executive Jeff Mihelich Chuck Winn
Anna Rosenberry
Michael Maas
City Manager Assistant City Manager
Assistant City Manager
City Clerk Department of Law Gregory Sullivan City Attorney
Department of Finance Kristin Donald, MBA Finance Director Aaron Funk, CPA Controller Laurae Clark Treasurer
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13 CITY OF BOZEMAN, MONTANA CITY ELECTED OFFICIALS AND OFFICERS
Fiscal Year 2021
OFFICERS (CONTINUED)
Department of Economic Development
Brit Fontenot Department of Information Technology Scott McMahan
Department of Human Resources Cassandra Tozer Department of Public Safety
Director of Economic Development Information Technology Director
Human Resources Director
James Veltkamp Chief of Police
Josh Waldo Fire Chief Department of Public Service Vacant Director of Public Service
Vacant City Engineer
Jon Henderson Director of Strategic Services Department of Public Welfare Mitch Overton Director of Parks & Recreation
Susan Gregory Director of Bozeman Public Library
Department of Planning and Community Development Martin Matsen Director of Planning and Community Development
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PART II FINANCIAL SECTION
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14 1019 E MAIN ST • SUITE 201 • BOZEMAN, MONTANA 59715 TEL: 406.556.6160 • FAX: 406.586.8719 • WEB: www.azworld.com ANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT Honorable Mayor, City Commissioners, and City Manager of the City of Bozeman, Montana Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Bozeman, Montana (the City), as of and for the year ended June 30, 2021, and related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally
accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. DRAFT298
ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
15
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Bozeman, Montana, as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters
Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information – General Fund and Major Special Revenue Funds, Schedule of Changes in Total Other Postemployment Benefits Liability and Related Ratios, and Schedule of Proportionate Share of Net Pension Liability and Schedule of Contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Bozeman’s basic financial statements. The introductory section, supplemental information, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, and is also not a required part of the basic financial statements. The other supplemental information, as listed in the table of contents, and the schedule of expenditures of federal awards, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplemental information, as listed in the table of contents, and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them. DRAFT299
ANDERSON ZURMUEHLEN & CO., P.C
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
16
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated DATE, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Bozeman, Montana DATE
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A. MANAGEMENT’S DISCUSSION AND ANALYSIS
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17 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2021 Management of the City Bozeman (City) offers readers of the basic financial statements this narrative overview and analysis of the financial activities of the
City for the fiscal year ended June 30, 2021. Readers are encouraged to consider the information presented here in conjunction with additional information that is furnished in the letter of transmittal. The focus of the information herein is on the primary government. Overview of the Financial Statements This discussion and analysis is intended as an introduction to the City’s basic financial statements. The basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. In addition to the basic financial statements, also provided are required and other supplementary information. Government-Wide Financial Statements The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities reports how the City’s net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation and sick leave).
The governmental activities reflect the City’s basic services, including police, fire, public works, parks, and general administration. Property taxes, charges for services, state shared revenues, court fines, and recreation fees finance most of these activities. The business-type activities reflect private sector-type operations, such as water, waste water, storm water, solid waste, and parking, where fees for services typically cover all or most of the cost of operations, including depreciation.
The government-wide financial statements include not only the City itself (referred to as the primary government), but also other legally separate entities for which the City is financially accountable. Financial information for most of these component units are reported separately from the financial information presented for the primary government itself. A few component units, although legally separate, function essentially as an agency of the City and, therefore, are included as an integral part of the City. Fund Financial Statements A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into categories: governmental funds, proprietary funds, and fiduciary funds that use different accounting approaches.DRAFT302
18 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021 Governmental funds are used for the City’s basic services and are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting,
which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because this information does not encompass the long-term focus of the government-wide statements, additional information is provided that reconciles the governmental fund financial statements to the government-wide statements explaining the relationship (or differences) between them.
The City maintains individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund and major special revenue funds. Data from the other governmental funds are combined into a single aggregated presentation. Individual fund data for these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for the General Fund. A budgetary comparison schedule has been provided to demonstrate compliance with these budgets for the General Fund in accordance with U.S. GAAP.
The City maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for water, wastewater, stormwater, solid waste and parking services. When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component of the proprietary funds) are the same as the business-type activities
we report in the government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. We use internal service funds to report activities that provide supplies and services for the City’s other programs and activities, such as the Vehicle Maintenance Fund and Health Insurance Fund. Internal service fund activity is reported as governmental activity in the government-wide statements since this activity, the financing of goods and services for other funds of the government, is more governmental than business-type in nature. The City uses fiduciary funds to account for assets held on behalf of outside parties, including other governments. When these assets are held under the terms of a formal trust agreement, a private-purpose trust fund is used. The City is the trustee, or fiduciary, for other funds, including the Municipal Court Fund, the Montana Arts Council Fund (Montana Ballet, Bozeman Symphony Orchestra, and Big Sky Association for the Arts), and the CMC Bozeman Asbestos Site Remediation Fund. It is also responsible for other assets that, because of a trust arrangement, can be used only for the trust beneficiaries. The guidelines for the administration of these funds are contained in applicable financial agreements and/or City ordinances. These documents contain the rules governing the receipt, expenditure, and management of the City’s fiduciary funds. As the statements reflect, the financial activity during the year for these funds is nominal.
We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. DRAFT303
19 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021 Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceeded liabilities and deferred inflows by $543.8 million at the close of the most recent fiscal year. Net position increased by $30.5 million this year as compared to a $53.2 million increase last year. The smaller increase this year was mainly due to revenues being lower and expenses being higher than last year. Some of the revenue decline as well as the increase in expenditures can be attributed to the COVID-19 pandemic. This fiscal year total revenues decreased by $9.9 million while total expenses increased by $10.1 million. Net position of the City also includes $62.1 million (11%) of restricted net position. These are resources subject to external restrictions as to how they may be used by the City.
Table 1 reflects the City’s net position (dollars in thousands) as of June 30, 2021 and 2020:
2021 2020 2021 2020 2021 2020
Current and Other Assets 101,328,809$ 104,868,737$ 49,651,049$ 48,292,893$ 150,979,858$ 153,161,630$
Capital Assets 240,462,418 210,438,294 316,314,532 295,485,973 556,776,950 505,924,267
Total Assets 341,791,227$ 315,307,031$ 365,965,581$ 343,778,866$ 707,756,808$ 659,085,897$
Deferred Outlflows of Resources 9,149,572$ 5,006,016$ 1,587,035$ 850,865$ 10,736,607$ 5,856,881$
Long-term Debt Outstanding (99,017,332)$ (84,043,754)$ (54,074,964)$ (43,968,514)$ (153,092,296)$ (128,012,268)$
Other Liabilities (16,176,604) (18,509,648) (3,170,054) (1,719,369) (19,346,658) (20,229,017)
Total Liabilities (115,193,936)$ (102,553,402)$ (57,245,018)$ (45,687,883)$ (172,438,954)$ (148,241,285)$
Deferred Inflows of Resources (1,740,945)$ (2,693,220)$ (503,558)$ (707,469)$ (2,244,503)$ (3,400,689)$
Net Position:
Net investment in capital assets 196,931,242$ 118,577,368$ 271,812,360$ 260,124,896$ 468,743,602$ 378,702,264$
Restricted for parking capital projects - - 130,316 130,316 130,316 130,316
Restricted for infrastructure capital projects - - 516,199 - 516,199 -
Restricted for drought reserve - - 362,581 - 362,581 -
Restricted for general government 2,389,783 2,379,585 - - 2,389,783 2,379,585
Restricted for Public Safety 14,048,758 9,920,782 - - 14,048,758 9,920,782
Restricted for Public Service 6,134,953 4,038,844 - - 6,134,953 4,038,844
Restricted for Public Welfare 12,457,409 10,049,069 - - 12,457,409 10,049,069
Restricted for capital projects 23,048,892 35,632,587 10,705,061 8,998,147 33,753,953 44,630,734
Restricted for debt service 10,378,317 7,187,509 3,125,439 3,179,102 13,503,756 10,366,611
Unrestricted (31,383,436) 27,280,681 23,152,084 25,801,918 (8,231,352) 53,082,599
Total Net Position 234,005,918$ 215,066,425$ 309,804,040$ 298,234,379$ 543,809,958$ 513,300,804$
Activities Activities Primary Government
Table 1- Net Position
Governmental Business-type Total
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20 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021 Table 2 reflects the City’s changes in net position (dollars in thousands) for the years ended June 30, 2021 and 2020.
2021 2020 2021 2020 2021 2020
Revenues
Program revenues:
Charges for Services 32,771,415$ 25,916,816$ 33,157,599$ 29,674,248$ 65,929,014$ 55,591,064$
Restricted Operating Grants & Contributions 12,156,812 7,622,415 243,536 104,868 12,400,348 7,727,283
Restricted Capital Grants & Contributions 4,518,830 15,429,642 5,427,166 13,312,504 9,945,996 28,742,146
General Revenues
Property Taxes 27,115,391 28,308,301 - - 27,115,391 28,308,301
Unrestricted Operating Grants & Contributions 4,956,187 4,859,238 - - 4,956,187 4,859,238
Other General Revenues (1,274,251) 2,749,288 290,413 1,368,505 (983,838) 4,117,793
Total Revenues 80,244,384 84,885,700 39,118,714 44,460,125 119,363,098 129,345,825
Program Expenses
General Government 11,517,404 9,950,983 - - 11,517,404 9,950,983
Public Safety 22,698,030 20,702,736 - - 22,698,030 20,702,736
Public Service 11,018,661 9,846,732 - - 11,018,661 9,846,732
Public Welfare 13,429,890 10,414,346 - - 13,429,890 10,414,346
Interest and Fiscal Fees 2,105,985 1,763,155 - - 2,105,985 1,763,155
Water - - 10,687,976 9,807,970 10,687,976 9,807,970
Waste Water - - 10,209,279 9,209,689 10,209,279 9,209,689
Non-major activities - - 7,186,719 7,021,575 7,186,719 7,021,575
Total Expenses 60,769,970 52,677,952 28,083,974 26,039,234 88,853,944 78,717,186
Excess (deficiency) before
special items and transfers 19,474,414 32,207,748 11,034,740 18,420,891 30,509,154 50,628,639
Transfers (534,921) (546,353) 534,921 546,353 - -
Increase (decrease) in net position 18,939,493 31,661,395 11,569,661 18,967,244 30,509,154 50,628,639
Net position - beginning 215,066,425 181,193,387 298,234,379 278,916,040 513,300,804 460,109,427
Restatement - 2,211,643 - 351,095 - 2,562,738
Net position - beginning after restatement 215,066,425 183,405,030 298,234,379 279,267,135 513,300,804 462,672,165
Net position - ending 234,005,918$ 215,066,425$ 309,804,040$ 298,234,379$ 543,809,958$ 513,300,804$
Activities Activities Primary Government
Table 2- Changes in Net Position
Governmental Business-type Total
DRAFT305
21 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021 Key elements of the City’s overall Net Position increase are as follows:
• The net position of the City’s governmental activities increased by $18.9 million, or 9%, from $215 million last year to $234 million this year due to revenues exceeding expenses, the details of which are discussed further in the next section.
• The net position of the City’s business-type activities increased by $11.6 million, or 4%, from $298.2 million to $309.8 million. The increase was due primarily to a continuing trend of revenues provided by charges for services exceeding total expenses. This net position cannot be used to make up for deficits reported by governmental activities in the event any such deficits were reported. The City generally can only use the net position of business-type activities to finance the continuing operations of the water, wastewater, solid waste, stormwater, and parking operations. Governmental activities revenues for the year decreased by 5%, or $4.6 million, from $84.8 million to $80.2 million, while total expenses increased by 15%,
or $8.1 million, from $52.7 million to $60.8 million. Governmental revenues decreased primarily from lower restricted capital grants and contributions. In the current year restricted capital grants and contributions totaled $4.5 million compared to $15.4 million in the prior year.
Property Tax revenues decreased by $1.2 million, or 4%, from $28.3 million to $27.1 million. The number of total property tax mills levied decreased by 18.17 mills from 187.7 to 169.53, or -9.6%. The majority of this reduction in mills was made possible by the creation of a voter approved city-wide Park and Trails District that shifts funding from property taxes to a charge for services. Voters approved the creation of the District without a decrease in to the city’s maximum allowable tax levy. The mill value increased by 23.9%, from $125,423 to $155,352. This increase is attributed to new construction
and market value appreciation of property within the city. Based on these factors, this year’s tax levy was 35.64 mills, or approximately $4.6 million, below the statutory maximum allowable tax levy.
Charges for Services, which include Street Assessments, and Fire and Street Impact Fees, and the new Park and Trails District, realized a net
increase of $6.9 million, or 26%, from $25.9 million to $32.8 million. Of this increase, $3.6 million was due to the newly created district. Street Maintenance District assessment revenue increased by 9% by almost $700,000 from $7.8 to $8.5 million due to rate increases approved by the City Commission.
Restricted Capital Grants and Contributions (developer-provided infrastructure reported under Program Revenues) decreased by $10.9 million, from $15.4 million to $4.5 million. Infrastructure contributions will vary year to year depending on the amount of development as well as what stage in the process the development is in.
41%
15%
6%
34%
6%-2%
Revenues by Source -Governmental Activities
Charges for Services
Restricted Operating Grants &ContributionsRestricted Capital Grants &ContributionsProperty Taxes
Unrestricted Operating Grants &ContributionsOther General RevenuesDRAFT
306
22 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021 Program Expenses increased by 15%, or $8.1 million, from $52.7 million to $60.8 million with Public Safety, and Public Welfare being the primary drivers of the increase, with just under $2 million for Public Safety and just over $3 million for Public Welfare. Public Safety saw general increases in operating and
personnel costs among both the Police, Fire, and Building Inspection departments. Public Welfare expenses increased largely due to the increased services approved with the Park and Trails District creation, which added more than a dozen new parks to the city’s maintenance responsibilities. Prior to the District’s creation, these parks were maintained by private homeowner’s associations. The City’s six largest programs—Police, Fire, Public Service, Library, Parks and Recreation—as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions.
Business-type activities total revenues (see Table 2) decreased by $5.3 million, $39.1 million this year compared to $44.5 million last year, while expenses increased by just over $2 million, $28.1 million this year compared to $26 million last year. Revenues declined due to a $7.9 million decrease in Restricted Capital Grants & Contributions, which consisted primarily of privately constructed water, wastewater, and stormwater infrastructure that was contributed to the City by developers. Infrastructure contributions will vary year to year depending on the amount of development as well as what stage in the process the development is in. In the current year the number of developments where contributions related to sewer and water mains occurred decreased from the prior year. Water fund -The City’s water system operating revenue (charges for services) have steadily increased over the past decade as a result of both an increase in
the customer base and due to regular rate increases. FY20 was the first year of adopted rates based on a rate study which adjusted rates based on user class ranging from 0% to 20% increases, and for residential created a tier structure to encourage water conservation. Water revenue increased by $1.2 million, or 12%, due to increases in governmental and commercial rates as well as a dry summer.
$4,770,396
$12,098,903
$25,162,373
$7,415,385
$11,517,404
22,698,030
11,018,661
13,429,890
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
General government Public safety Public service Public welfare
Expenses and Program Revenues -Governmental Activites
Program Revenues Expenses
DRAFT307
23 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021 Wastewater- Revenues in the Wastewater Fund have generally been increasing over the past 10 years. FY20 was the first year of adopted
rates based on a rate study which adjusted rates based on user class ranging from 0% to 8%. In the current year wastewater service charge rates were unchanged with slight increases in hundred cubic feet charge for water usage for all classes accept residential. As a result revenues slightly increased by $485,058 or 5% compared to the prior year.
Solid Waste- Operating revenues in the Solid Waste fund increased by $338,344 or 7%, due mainly to an increase in garbage rates for all sizes over 35/45 gallon.
Operating Expenses increased this year by $2.1 or 8% compared to the prior year, for all the Business-Type Activities combined. Water and wastewater saw increases of 9% and 11%, respectively, while solid waste, parking, and stormwater combined increased by just 2%. The increase was primarily due to salaries and benefits, depreciation, as well as other expenses which include contracted services, and travel and training expenses. The increase in salaries and benefits was due to staff additions, negotiated wage increases, and required increases for health insurance costs. Net capital assets increased by approximately $21
million which also resulted in an increase in depreciation expense. Lastly, the increase in contracted services was mainly due to temporary staffing needs as well as engineering and other services provided for capital related projects.
85%
0%14%
1%
Revenues by Source -Business-Type Activities
Charges for Services
Restricted OperatingGrants & Contributions
Restricted CapitalGrants & Contributions
Other General Revenues
DRAFT308
24 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021 Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financial related legal requirements. Governmental Funds The focus of the City’s governmental funds is to provide information on current year revenues, expenditures, and balances of spendable resources. Such information is useful in assessing the City’s near-term financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of December 31, 2021, the City’s governmental funds reported a combined ending fund balances of $77.3 million, a decrease of $3.7 million in comparison to the prior year. The decrease is primarily due to the increase in capital spending, including the new public safety center building. General fund The General Fund is the main operating fund of the City. The City’s total general fund balance increased by $42,402, or .5%, from $9,140,863 last year to $9,183,265 this year. At the end of the current fiscal year the assigned fund balance was $9,183,265. The unassigned and assigned fund balances for the General Fund at the end of the previous fiscal year were $1,030,550 and $8,110,313, respectively. The increase in assigned fund balance was mainly due to an increase in the number of capital projects budgeted for in fiscal year 2021 but will not be completed until fiscal year 2022. In the current year the City had carry-over capital projects totaling $1,481,514 compared to $675,692 in the prior year. The following factors represent the reasons behind significant changes in the General Fund and significant budgetary variances.
Property tax revenues decreased in the General Fund by $1.9 million or 11%, from 17,701,622 to $15,775,452. The number of property tax mills levied decreased by 22.47 mills, or 18%, from 124.79 to 102.32 and the value of one mill of increased by $29,929, or 23.9%, from $125,423 to $155,352. When combined, these changes resulted in the planned decrease in total property tax revenues. The other major change in revenues was in intergovernmental revenues. Intergovernmental revenues increased by $2.1 million, or 22%, from $9,718,389
last year to $11,864,827 this year. A majority of this increase was due to the CARES Act funding from the State for COVID relief. Total general fund expenditures increased by $2,123,339, or 6%, from $33,202,383 to $35,882,731. The largest general fund expenditures continued to be in Public safety, with $10.1 million spent on Police and $7.5 million spent on Fire. The main factor contributing to increased expenditures in the General Fund were other expenses, which increased $2.8 million, or 514% from $543,334 to $3,336,278. These expenditures include federal, and state passed through grants to other organizations as well as city grants provided to other organizations. However, while the expenses increase over last year, expenditures were still under budget. American Rescue Plan Act (ARPA) Special Revenue Fund This special revenue fund accounts for the ARPA federal grant program. The City received the first installment of the ARPA funding in the current year and per the grantor expenditure guidelines a portion of the funding was used for revenue lost in various departments. Grant guidelines and funding amounts were unknown at the time of preparing the fiscal year 2021 budget. DRAFT309
25 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021 SID Debt Service Accounts for the accumulation of resources and payment of special assessment bond principal and interest related to general improvement, sidewalk, and curb construction projects. Revenues, which are mainly special assessments, increased by $175,459 or 22% from $814,618 to $990,077 with the increase in creation of special districts for project funding. Expenditures increased by $569,186 or 974%, from $58,434 to $362,427 mainly due to the annual principal and interest payments related to the issuance of debt for SID 747. Capital Projects Fund Fund balance decreased by $12.4 million, from $36,466,616 last year to $24,078,408. The decrease was due to the increase in capital outlay expenditures of $18,268,885 primarily for the construction of the Bozeman Public Safety Center. The increase in expenditures was offset by the issuance of $10,501,000 in new debt to fund the capital projects for Manley Road and the Midtown district. Proprietary Funds The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Total net position of the water fund was $165.1 million, and Wastewater was $129.7 million. Net position for all enterprise funds was $309.8 million. Other significant factors concerning the finances of the enterprise funds can be found in the discussion of the City’s business-type activities. Capital Assets and Bonded Debt Administration Capital Assets At the end of 2021 the City had $556.7 million invested in a broad range of capital assets, including police and fire equipment, buildings, park facilities, roads, and water and sewer lines. This amount represents a net increase (including additions and deductions) of roughly $51 million, or 10% over last year. Refer to capital assets disclosure Note 7 for more information. Major additions and capital projects underway include the following expenditures made during this year in Table 3: DRAFT310
26 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021
2021 2020 2021 2020 2021 2020
Land 33.6$ 31.6$ 2.2$ 2.2$ 35.8$ 33.8$
Water Rights - - 2.1 2.1 2.1 2.1
CIP 30.3 3.3 19.2 - 49.5 3.3
Buildings 35.5 35.4 113.9 113.6 149.4 149.0
Other Structures and Improvements 1.1 1.1 30.5 30.5 31.6 31.6
Machinery & Equipment 17.9 16.6 12.2 10.8 30.1 27.4
Property under Capital Lease 0.8 0.8 0.5 0.5 1.3 1.3
Vehicle 4.8 4.4 2.2 2.1 7.0 6.5
Infrastructure 243.5 237.3 350.7 343.3 594.2 580.6
Subtotal 367.5 330.5 533.5 505.1 901.0 835.6
Accumulated Depreciation (127.1) (120.1) (217.2) (209.8) (344.3) (329.9)
Total Capital Assets 240.4$ 210.4$ 316.3$ 295.3$ 556.7$ 505.7$
Activities Activities Totals
Table 3- Captial Assets at Year-End (in millions)
Governmental Business-type
DRAFT311
27 CITY OF BOZEMAN, MONTANA MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED) JUNE 30, 2021 Debt At year-end, the City had $93.2 million in bonds and notes outstanding versus $86 million last year – an increase of $7.1 million, or 8%. Of this amount $43.2
million comprises debt backed by the full faith and credit of the City that decreased $2.2 million. The remainder of the City’s debt, $6.1 million, represents bonds secured by specified revenue sources (i.e Water, and Urban Renewal Tax Increment Property taxes) as shown in Table 4. The issuance of the Tax Increment Urban Renewal Revenue Bonds (Midtown) for $6.5 million and the Special Improvement District 747 Bonds for just over $4 million accounts for
the increase in outstanding debt.
2021 2020 2021 2020 2021 2020
General obligation
bonds (backed by the City)43.2$ 45.4$ -$ -$ 43.2$ 45.4$
Tax Increment Financing
District (TIFD) bonds 10.8 4.7 - - 10.8 4.7
Special Improvement
District Debt 3.9 0.1 - - 3.9 0.1
Notes Payable 2.2 2.5 - - 2.2 2.5
Lease Payable 0.3 0.4 - - 0.3 0.4
Water Revenue Bonds
(backed by specific fee revenues)- - 18.5 18.5 18.5 18.5
Wastewater Revenue Bonds
(backed by specific fee revenues)- - 12.8 12.8 12.8 12.8
Stormwater Revenue Bonds
(backed by specific fee revenues)- - 1.4 1.4 1.4 1.4
Stormwater Lease Payable
(backed by specific fee revenues)- - 0.1 0.1 0.1 0.1
Totals 60.4$ 53.2$ 32.8$ 32.8$ 93.2$ 86.0$
Table 4- Outstanding Debt, at Year-end (in millions)
Governmental Business-type
Activities Activities Total s
Additional information on the City’s bonded debt for the year can be found in Note 9 in the notes to the basic financial statements. Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning the information provided in this report or requests for additional financial information should be addressed to:
Finance Department 121 North Rouse Avenue, Bozeman, Montana 59715. This report is available online at https://www.bozeman.net/government/finance DRAFT312
B. BASIC FINANCIAL STATEMENTS DRAFT313
GOVERNMENT-WIDE FINANCIAL STATEMENTS
DRAFT314
27 CITY OF BOZEMAN, MONTANA STATEMENT OF NET POSITION June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments 73,216,674$ 26,718,327$ 99,935,001$
Restricted cash and investments 15,287,464 20,756,548 36,044,012
Accrued interest 48,667 25,873 74,540
Receivables, net 11,613,455 2,150,301 13,763,756
Notes receivable 455,624 - 455,624
Prepaid expenses 706,925 - 706,925
101,328,809 49,651,049 150,979,858
Capital assets:
Non-depreciable land, water rights and CIP 63,987,140 23,538,746 87,525,886
Other capital assets, net of depreciation 176,475,278 292,775,786 469,251,064
Total capital assets 240,462,418 316,314,532 556,776,950
Total assets 341,791,227 365,965,581 707,756,808
Deferred outflows of resources:
Other post-employment benefits 1,019,771 229,935 1,249,706
Pension plan contributions 8,129,801 1,357,100 9,486,901
Total deferred outflows of resources 9,149,572 1,587,035 10,736,607
Total assets and deferred outflows of resources 350,940,799$ 367,552,616$ 718,493,415$
(Continued) DRAFT315
28 CITY OF BOZEMAN, MONTANA STATEMENT OF NET POSITION (CONTINUED) June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Governmental Business-type
Activities Activities Total
LIABILITIES
Accounts payable and accrued expenses 10,467,914$ 3,170,054$ 13,637,968$
Unearned revenue 5,708,690 - 5,708,690
Current portion of long-term liabilities:
Compensated absences payable 1,854,991 434,995 2,289,986
Capital leases 104,813 5,477 110,290
Closure and post-closure care costs - 310,773 310,773
Bonds and notes 2,940,353 3,313,000 6,253,353
Long-term liabilities, due in more than one year:
Compensated absences 1,334,891 119,066 1,453,957
Capital leases 205,457 5,108 210,565
Closure and post-closure care costs - 1,175,032 1,175,032
Pollution remediation obligations - 890,144 890,144
Other post-employment health benefits - implicit rate subsidy 3,594,727 740,461 4,335,188
Bonds and notes 61,456,686 41,178,587 102,635,273
Net pension liability 27,525,414 5,902,321 33,427,735
Total liabilities 115,193,936 57,245,018 172,438,954
DEFERRED INFLOWS OF RESOURCES
Other post-employment health benefits - implicit rate subsidy 606,510 119,901 726,411
Pension deferrals 1,134,435 383,657 1,518,092
Total deferred inflows of resources 1,740,945 503,558 2,244,503
NET POSITION
Net investment in capital assets 196,931,242 271,812,360 468,743,602
Restricted:
Restricted for parking capital projects - 130,316 130,316
Restricted for infrastructure capital projects - 516,199 516,199
Restricted for drought reserve - 362,581 362,581
Restricted for general government 2,389,783 - 2,389,783
Restricted for public safety 14,048,758 - 14,048,758
Restricted for public service 6,134,953 - 6,134,953
Restricted for public welfare
Expendable 10,827,930 - 10,827,930
Nonexpendable 1,629,479 - 1,629,479
Restricted for capital projects 1,872,757 10,705,061 12,577,818
Restricted for debt service 10,378,317 3,125,439 13,503,756
Unrestricted (10,207,301) 23,152,084 12,944,783
Total net position 234,005,918$ 309,804,040$ 543,809,958$ DRAFT316
29 CITY OF BOZEMAN, MONTANA STATEMENT OF ACTIVITIES Year Ended June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Net (Expense) Revenue and Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary Government
Governmental activities:
General government 11,517,404$ 4,380,033$ 390,363$ -$ (6,747,008)$ (6,747,008)$
Public safety 22,698,030 4,260,366 7,838,537 - (10,599,127) (10,599,127)
Public service 11,018,661 18,836,107 1,807,436 4,518,830 14,143,712 14,143,712
Public welfare 13,429,890 5,294,909 2,120,476 - (6,014,505) (6,014,505)
Interest and fiscal fees 2,105,985 - - - (2,105,985) (2,105,985)
Total governmental activities 60,769,970 32,771,415 12,156,812 4,518,830 (11,322,913) (11,322,913)
Business-type activities:
Water 10,687,976 13,970,784 102,245 2,701,180 6,086,233$ 6,086,233
Waste water 10,209,279 11,691,165 31,453 2,228,364 3,741,703 3,741,703
Solid waste 4,991,829 4,969,868 71,527 - 49,566 49,566
Parking 1,194,091 1,005,788 15,643 - (172,660) (172,660)
Stormwater 1,000,799 1,519,994 22,668 497,622 1,039,485 1,039,485
Total business-type activities 28,083,974 33,157,599 243,536 5,427,166 10,744,327 10,744,327
Total primary government 88,853,944$ 65,929,014$ 12,400,348$ 9,945,996$ (11,322,913) 10,744,327 (578,586)
General revenues
Property taxes 27,115,391 - 27,115,391
Unrestricted grants and contributions 4,956,187 - 4,956,187
Investment earnings 428,653 38,987 467,640
Miscellaneous (1,722,976) 233,508 (1,489,468)
Gain on sale of assets 20,072 17,918 37,990
Transfers (534,921) 534,921 -
Total general revenues and transfers 30,262,406 825,334 31,087,740
Change in net position 18,939,493 11,569,661 30,509,154
Net position, beginning of the year 215,066,425 298,234,379 513,300,804
Net position, end of the year 234,005,918$ 309,804,040$ 543,809,958$
Primary Government
Program Revenues
DRAFT317
FUND FINANCIAL STATEMENTS DRAFT318
GOVERNMENTAL FUND FINANCIAL STATEMENTS DRAFT319
MAJOR GOVERNMENTAL FUNDS
General Fund – This fund accounts for the financial operations of the City, which are not accounted for in any other Fund. Principal sources of revenue are property taxes, state and local shared revenues, licenses and permits, and charges for services provided to other Funds. Principal expenditures in the general fund are made for police and fire protection, public works, and general government.
American Rescue Plan Act (ARPA) Special Revenue Fund - This fund accounts for the ARPA federal grant program. Grant funds must be used for the stated purpose of the grant and must meet grantor expenditure guidelines.
Special Improvement District (SID) Sinking – Accounts for the accumulation of resources and payment of special assessment bond principal and interest related to general improvement, sidewalk, and curb construction projects.
General Improvements Capital Projects Fund – Accounts for the construction of general improvement projects financed by special assessments other than those financed by proprietary funds.
DRAFT320
30 CITY OF BOZEMAN, MONTANA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
American Other Total
General Rescue Plan SID Construction Governmental Governmental
Fund Act Debt Service Capital Projects Funds Funds
ASSETS
Cash and investments 8,572,097$ 5,652,347$ 2,831,693$ 25,974,099$ 28,178,799$ 71,209,035$
Receivables:
Property taxes 1,862,005 - - - 1,556,621 3,418,626
Accrued interest 7,372 - - 33,714 7,581 48,667
Customers, net 2,176,579 - - - 389,948 2,566,527
Special assessments 9,215 - 4,899,665 - 294,242 5,203,122
Other governments 35,654 - - - 369,618 405,272
Due from other city funds 990,414 - - - - 990,414
Advances to other city funds - - - - 1,045,398 1,045,398
Prepaid expenditures 17,751 - - - 255,000 272,751
Notes receivable - - - - 455,624 455,624
Restricted cash and investments - - - 1,406,383 13,881,083 15,287,466
Total assets 13,671,087$ 5,652,347$ 7,731,358$ 27,414,196$ 46,433,914$ 100,902,902$
(continued)
DRAFT321
31 CITY OF BOZEMAN, MONTANA BALANCE SHEET (CONTINUED) GOVERNMENTAL FUNDS June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
American Other Total
General Rescue Plan SID Construction Governmental Governmental
Fund Act Debt Service Capital Projects Funds Funds
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 3,047,977$ -$ 824$ 2,195,975$ 3,654,554$ 8,899,330$
Escheat property payable 91,358 - - - 25,716 117,074
Accrued employee benefits 2,891 - - - 887 3,778
Appearance bonds and other liabilities - - - 1,139,813 - 1,139,813
Advances from other city funds - - 1,045,398 - - 1,045,398
Due to other city funds - - - - 357,630 357,630
Deferred Revenue - 5,652,347 - - 5,652,347
Total liabilities 3,142,226 5,652,347 1,046,222 3,335,788 4,038,787 17,215,370
Deferred inflows of resources
Unavailable revenue-property taxes 126,560 - - - 104,590 231,150
Unavailable revenue-special assessments - 4,880,992 - 88,816 4,969,808
Unavailable revenue-court fines 1,219,036 - - - - 1,219,036
Total deferred inflows of resources 1,345,596 - 4,880,992 - 193,406 6,419,994
Fund balances
Nonspendable - - - 1,884,479 1,884,479
Restricted - 1,804,144 23,048,892 36,965,868 61,818,904
Committed - - 366,743 3,254,901 3,621,644
Assigned 9,183,265 - - 96,473 9,279,738
Unassigned - - - 662,773 - 662,773
Total fund balances 9,183,265 - 1,804,144 24,078,408 42,201,721 77,267,538 DRAFT322
32 CITY OF BOZEMAN, MONTANA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Amounts reported for governmental activities in the statement of net position are different because:
Fund balances - total governmental funds 77,267,538$
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the
governmental funds
Governmental capital assets 367,571,175$
Less: accumulated depreciation (127,108,757) 240,462,418
Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and
liabilities of the internal service funds are included in governmental activities in the statement of net position.
Net position 411,596
Less: capital assets included in governmental activities (2,317,522)
Plus: accumulated depreciation included in governmental activities 1,051,833
Plus: compensated absences included in governmental activities 197,377
Plus: capital lease obligations included in governmental activities 15,006
Plus: other post-employment health benefits and related deferred outflows and inflows included in governmental activities 210,547
Plus: net pension liability and related deferred outflows and inflows included in governmental activities 1,952,179 1,521,016
Deferred inflows of resources are not available to pay for current period expenditures and, therefore, are deferred in the funds.6,419,994
Deferred outflows of resources relating to pensions and other liabilities are not payable in the current period and, therefore,
are not reported in the governmental funds.9,149,572
Pension plan deferrals are deferred inflows of resources on the Statement of Net Position.(1,134,435)
(606,510)
Bond premiums are other financing source revenue in the governmental funds. They are a liability for the statement of net
position and amortized over the life of the issuance.
Bond premium (4,690,194)
Less: amortization 491,720 (4,198,474)
Impact fee credits do not affect current financial resources and therefore are not reported in the governmental funds.(56,343)
Long-term liabilities are not due and payable in the current period and therefore are not reported
in the governmental funds.
Bonds and notes payable, net of bond premium (60,198,565)
Net pension liability (27,525,414)
Capital lease obligations (310,270)
Post-employment health benefits (3,594,727)
Compensated absences (3,189,882) (94,818,858)
Net position of governmental activities 234,005,918$
The assumption change gain in the total other post-employment benefits liability (TOL) is a deferred inflow of resources and is
amortized over the expected future service life; therefore, the balance is deferred and not reported in governmental funds.
DRAFT323
33 CITY OF BOZEMAN, MONTANA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
American Other Total
Rescue Plan SID Construction Governmental Governmental
General Act Debt Service Capital Projects Funds Funds
REVENUES
Taxes 15,775,452$ -$ -$ -$ 11,197,654$ 26,973,106$
Special assessments 103 - 975,387 - 701,419 1,676,909
Licenses and permits 367,895 - - - 2,534,721 2,902,616
Intergovernmental 11,864,827 712,051 - - 2,720,274 15,297,152
Charges for services 3,650,043 - - - 21,197,790 24,847,833
Fines and forfeitures 1,084,870 - - - 84,010 1,168,880
Interest on investments 5,747 - 14,690 27,053 108,157 155,647
Interest on loans receivable - - - - 38,276 38,276
Other 431,551 - - 562,066 773,003 1,766,620
Total revenues 33,180,488 712,051 990,077 589,119 39,355,304 74,827,039
EXPENDITURES
General government 8,178,413 - - - 2,270,613 10,449,026
Public safety 17,062,287 - - 600 2,715,488 19,778,375
Public service - - - 142,616 5,725,767 5,868,383
Public welfare 4,815,295 - - 384,907 6,489,940 11,690,142
Other 3,336,278 - 35,059 - 129,423 3,500,760
Capital outlay 1,885,031 - - 24,705,733 6,017,972 32,608,736
Debt service
Principal payments 42,271 - 192,284 - 2,954,048 3,188,603
Interest and fiscal fees 6,147 - 135,114 - 1,964,724 2,105,985
Total expenditures 35,325,722 - 362,457 25,233,856 28,267,975 89,190,010
Revenues over (under) expenditures (2,145,234) 712,051 627,620 (24,644,737) 11,087,329 (14,362,971)
OTHER FINANCING SOURCES (USES)
Transfers in 2,728,647 - - 1,106,520 2,141,233 5,976,400
Transfers out (557,009) (712,051) - - (5,242,261) (6,511,321)
Issuance of long term debt - - - 11,150,009 - 11,150,009
Sale of capital assets 15,952 - - - 7,792 23,744
Total other financing sources (uses)2,187,590 (712,051) - 12,256,529 (3,093,236) 10,638,832
Net change in fund balances 42,356 - 627,620 (12,388,208) 7,994,093 (3,724,139)
FUND BALANCE, beginning of year 9,140,909 - 1,176,524 36,466,616 34,207,628 80,991,677
FUND BALANCE, end of year 9,183,265$ -$ 1,804,144$ 24,078,408$ 42,201,721$ 77,267,538$ DRAFT324
34 CITY OF BOZEMAN, MONTANA RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds (3,724,139)$
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost
of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is
the amount by which capital outlays and donated infrastructure exceeded depreciation expense in the current period.
Expenditures for capital assets 32,608,736$
Donated infrastructure 4,518,830
Less: current year depreciation (7,121,144) 30,006,422
Governmental funds report asset disposals as sale of capital assets for the cash received. In the statement of
activities, those gains and losses must be adjusted by the assets basis, net of any depreciation.(8,575)
The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds
report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities, unless immaterial. This amount is the net effect of these
differences in the treatment of long-term debt and related items.(64,948,748)
Some revenues reported in the statement of activities do not require the use of current financial resources and,
therefore, are not reported as revenues in governmental funds. The change in deferred inflows of resources is presented
in the statement of activities.2,445,259
Governmental funds do not report a liability for compensated absences. The change in the liability is presented in
the statement of activities.(84,190)
Governmental funds do not report a liability for other post-employment health benefits. The change in the liability is
presented in the statement of activities.(248,035)
Contributions to the pension plans in the current fiscal year are deferred outflows in the Statement of Net Position
The change in the deferred outflows for pension plan contributions presented in the statement of activities.(1,652,466)
Internal service funds are used by management to charge the costs of certain activities to individual funds.
The net revenue (expense) of the internal service funds is reported in the governmental activities.(62,438)
Change in net position of governmental activities (38,276,910)$ DRAFT325
PROPRIETARY FUND FINANCIAL STATEMENTS
DRAFT326
MAJOR PROPRIETARY FUNDS
These funds are used to account for the financing, acquisition, operation and maintenance of water, sewer, and solid waste facilities, which are supported by user charges.
Major Enterprise Funds – Water Fund – Accounts for the City’s water utility operations and to collect and administer water impact fees. Waste Water Fund – Accounts for the City’s sewer utility operations and to collect and administer waste water impact fees. Internal Service Funds – used to account for the goods and services provided by one department to other departments of the City on a cost-reimbursement basis. DRAFT327
35 CITY OF BOZEMAN, MONTANA STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Governmental
Activities
Waste Nonmajor Internal
Water Fund Water Fund Enterprise Funds Total Service Funds
ASSETS
Current assets
Cash and investments 20,024,517$ 3,733,057 2,960,753$ 26,718,327$ 2,007,636$
Receivables:
Accrued interest 21,438 1,468 2,967 25,873 -
Customers, net 687,657 759,177 679,697 2,126,531 19,908
Special assessments 114 66 1,100 1,280 -
Other governments - - 22,490 22,490 -
Prepaid expenses - - - - 434,175
Total current assets 20,733,726 4,493,768 3,667,007 28,894,501 2,461,719
Non-current assets
Other assets:
Restricted cash and investments 14,516,546 5,525,524 714,478 20,756,548 -
Total other assets 14,516,546 5,525,524 714,478 20,756,548 -
Property, plant and equipment
Nondepreciable:
Land 573,847 1,112,597 532,109 2,218,553 -
Water rights 2,120,142 - - 2,120,142 -
Construction in progress 215,402 18,961,219 23,430 19,200,051 -
Depreciable:
Buildings 40,717,384 60,456,748 12,698,895 113,873,027 1,546,120
Other structures and improvements 13,646,910 14,745,401 2,155,300 30,547,611 -
Machinery and equipment 1,665,554 3,180,241 7,330,237 12,176,032 574,046
Vehicles 631,628 701,337 869,226 2,202,191 197,356
Infrastructure 207,301,330 137,466,501 5,901,535 350,669,366 -
Property under capital lease - - 519,943 519,943 -
Accumulated depreciation and amortization (116,106,657) (87,582,239) (13,523,488) (217,212,384) (1,051,833)
Net property, plant and equipment 150,765,540 149,041,805 16,507,187 316,314,532 1,265,689
Total non-current assets 165,282,086 154,567,329 17,221,665 337,071,080 1,265,689
Deferred outflows of resources
Other post-employment benefits 73,817 65,506 90,612 229,935 83,075
Pension plan contributions 453,627 416,165 487,308 1,357,100 550,652
Total deferred outflows of resources 527,444 481,671 577,920 1,587,035 633,727
Total assets and deferred outflows of resources 186,543,256$ 159,542,768$ 21,466,592$ 367,552,616$ 4,361,135$
Enterprise Funds
Business-type Activities
DRAFT328
36 CITY OF BOZEMAN, MONTANA STATEMENT OF NET POSITION (CONTINUED) PROPRIETARY FUNDS June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Governmental
Activities
Waste Nonmajor Internal
Water Fund Water Fund Enterprise Funds Total Service Funds
LIABILITIES
Current liabilities
Accounts payable and accrued expenses 376,901$ 1,978,133$ 815,020$ 3,170,054$ 307,919$
Compensated absences payable 117,543 160,604 156,848 434,995 197,377
Due to other city funds - - - - 632,784
Capital lease obligations due in one year 5,477 - - 5,477 7,765
Closure and post-closure care costs, current portion - - 310,773 310,773 -
Bonds, notes, and loans payable 1,280,000 1,951,000 82,000 3,313,000 -
Total current liabilities 1,779,921 4,089,737 1,364,641 7,234,299 1,145,845
Noncurrent liabilities
Closure and post-closure care costs - - 1,175,032 1,175,032 -
Revenue bonds due after one year 17,267,000 22,631,587 1,280,000 41,178,587 -
Compensated absences payable 73,068 - 45,998 119,066 -
Capital lease obligations 5,108 - - 5,108 7,241
Other post-employment health benefits
implicit rate subsidy 219,120 241,692 279,649 740,461 256,333
Solvent site remediation liability - 890,144 - 890,144 -
Net pension liability 1,972,921 1,809,991 2,119,409 5,902,321 2,357,498
Total noncurrent liabilities 19,537,217 25,573,414 4,900,088 50,010,719 2,621,072
Total liabilities 21,317,138 29,663,151 6,264,729 57,245,018 3,766,917
Deferred inflows of resources
Other post-employment benefits 33,299 40,540 46,062 119,901 37,289
Pension deferrals 128,242 117,651 137,764 383,657 145,333
Total deferred inflows of resources 161,541 158,191 183,826 503,558 182,622
NET POSITION
Net investment in capital assets 132,207,955 124,459,218 15,145,187 271,812,360 1,250,683
Restricted for impact capital projects 7,472,892 3,232,169 - 10,705,061 -
Restricted for infrastructure capital projects 516,199 - - 516,199 -
Restricted for parking capital projects - - 130,316 130,316 -
Restricted for debt service 898,929 2,168,222 58,288 3,125,439 -
Restricted for drought reserve 362,581 - - 362,581 -
Unrestricted 23,606,021 (138,183) (315,754) 23,152,084 (839,087)
Total net position 165,064,577 129,721,426 15,018,037 309,804,040 411,596
Total liabilities, deferred inflows of resources, and net position 186,543,256$ 159,542,768$ 21,466,592$ 367,552,616$ 4,361,135$
Enterprise Funds
Business-type Activities
DRAFT329
37 CITY OF BOZEMAN, MONTANA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS Year Ended June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Governmental
Activities
Waste Nonmajor Internal
Water Fund Water Fund Enterprise Funds Totals Service Funds
OPERATING REVENUES 11,027,542$ 9,926,730$ 7,495,650$ 28,449,922$ 10,777,018$
OPERATING EXPENSES
Salaries and benefits 2,427,120 2,188,578 2,501,694 7,117,392 2,960,510
Materials and supplies 894,195 367,759 425,325 1,687,279 1,042,932
Repairs and maintenance 148,291 208,679 346,393 703,363 19,041
Utilities 285,137 644,827 752,254 1,682,218 34,241
Administrative charges 1,931,737 1,617,175 1,086,433 4,635,345 494,413
Insurance claims - - - - 5,370,303
Other expenses 1,191,978 1,302,606 1,019,166 3,513,750 863,552
Depreciation and amortization 3,189,401 3,298,441 1,016,358 7,504,200 119,822
Changes in estimated closure and
post-closure care costs - - (71,349) (71,349) -
Total operating expenses 10,067,859 9,628,065 7,076,274 26,772,198 10,904,814
Operating income (loss)959,683 298,665 419,376 1,677,724 (127,796)
NON-OPERATING REVENUES (EXPENSES)
Interest income 21,048 5,149 12,790 38,987 9,046
Interest expense (552,156) (581,214) (37,437) (1,170,807) (3,418)
Other income 66,188 123,804 43,516 233,508 11,332
Intergovernmental income 34,284 31,453 36,830 102,567 43,494
Impact fees 2,943,242 1,764,435 - 4,707,677 -
Gain on disposal of assets 6,704 8,214 3,000 17,918 4,904
Total non-operating revenues 2,519,310 1,351,841 58,699 3,929,850 65,358
Income (loss) before contributions and transfers 3,478,993 1,650,506 478,075 5,607,574 (62,438)
Contributions of infrastructure - developers 2,701,180 2,228,364 497,622 5,427,166 -
Transfers in 600,000 - 534,921 1,134,921 -
Transfers out (600,000) - - (600,000) -
Change in net position 6,180,173 3,878,870 1,510,618 11,569,661 (62,438)
NET POSITION, beginning of year 158,884,404 125,842,556 13,507,419 298,234,379 474,034
NET POSITION, end of year 165,064,577$ 129,721,426$ 15,018,037$ 309,804,040$ 411,596$
Enterprise Funds
Business-type Activities
DRAFT330
38 CITY OF BOZEMAN, MONTANA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Governmental
Activities
Waste Nonmajor Internal
Water Fund Water Fund Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 10,876,731$ 9,725,787$ 7,458,288$ 28,060,806$ 10,781,616$
Receipts from others 73,580 123,804 24,026 221,410 54,826
Operating loans from other City funds - - - - 252,741
Payments to suppliers (2,514,229) (1,523,053) (2,521,218) (6,558,500) (1,669,335)
Payments to employees (2,176,349) (2,020,375) (2,401,469) (6,598,193) (8,274,087)
Payments to internal service funds and administrative fees (1,931,737) (1,617,175) (1,086,433) (4,635,345) (494,413)
Net cash flows from operating activities 4,327,996 4,688,988 1,473,194 10,490,178 651,348
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Transfers in 600,000 - 534,921 1,134,921 -
Transfers out (600,000) - - (600,000) -
Receipts from grants and intergovernmental sources 34,284 31,453 36,830 102,567 -
Net cash flows from non-capital financing activities 34,284 31,453 571,751 637,488 -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (1,134,021) (19,944,627) (1,826,945) (22,905,593) (145,416)
Principal paid on bonds, interfund loans, loans and leases (1,248,556) (1,760,000) (135,936) (3,144,492) (6,459)
Interest paid on bonds, interfund loans, loans and leases (552,156) (581,214) (37,437) (1,170,807) (3,418)
Proceeds from issuance of long-term debt - 12,285,587 - 12,285,587 -
Impact fees received 2,943,242 1,764,435 - 4,707,677 -
Proceeds from sale of property, plant and equipment - - - - 4,904
Net cash flows from capital and
related financing activities 8,509 (8,235,819) (2,000,318) (10,227,628) (150,389)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 72,337 35,553 9,823 117,713 9,046
Net cash flows from investing activities 72,337 35,553 9,823 117,713 9,046
Net change in cash and investments 4,443,126 (3,479,825) 54,450 1,017,751 510,005
Cash and investments, beginning of year 30,097,937 12,738,406 3,620,781 46,457,124 1,497,631
Cash and investments, end of year 34,541,063$ 9,258,581$ 3,675,231$ 47,474,875$ 2,007,636$
Classified as:
Cash and investments 20,024,517$ 3,733,057$ 2,960,753$ 26,718,327$ 2,007,636$
Restricted cash and investments 14,516,546 5,525,524 714,478 20,756,548 -
Totals 34,541,063$ 9,258,581$ 3,675,231$ 47,474,875$ 2,007,636$
(continued)
Business-type Activities
Enterprise Funds
DRAFT331
39 CITY OF BOZEMAN, MONTANA STATEMENT OF CASH FLOWS (CONTINUED) PROPRIETARY FUNDS Year Ended June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Governmental
Activities
Waste Nonmajor Internal
Water Fund Water Fund Funds Total Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH FROM OPERATING ACTIVITIES
Operating income (loss)959,683$ 298,665$ 419,376$ 1,677,724$ (127,796)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation and amortization 3,189,401 3,298,441 1,016,358 7,504,200 119,822
Change in estimated closure and
post-closure care costs - - (323,723) (323,723) -
Change in solvent site remediation obligation - (170,202) - (170,202) -
Other income 66,188 123,804 43,516 233,508 54,826
Gain (loss) on disposal of assets 6,704 8,214 3,000 17,918 -
Change in assets and liabilities:
(Increase) Decrease in:
Accounts receivable (150,123) (209,157) (37,362) (396,642) 4,598
Prepaid expenses - - - - 21,580
Other governments receivable - - (22,490) (22,490)
Increase (Decrease) in:
Accounts payable 5,372 1,171,020 274,294 1,450,686 102,057
Due from other city funds - - - - 252,741
Accrued employee benefits payable 28,042 23,910 31,033 82,985 35,143
Deferred inflows - unavailable revenue - - - - -
Net pension 222,729 144,293 69,192 436,214 188,377
Total adjustments 3,368,313 4,390,323 1,053,818 8,812,454 779,144
Net cash flows from operating activities 4,327,996$ 4,688,988$ 1,473,194$ 10,490,178$ 651,348$
SUPPLEMENTAL CASH FLOW INFORMATION
Noncash transactions:
Transferred property, plant and equipment -$ -$ -$ -$ 167,065$
Donated infrastructure 2,701,180 2,228,364 497,622 5,427,166 -
Total noncash transactions 2,701,180$ 2,228,364$ 497,622$ 5,427,166$ 167,065$
Enterprise Funds
Business-type Activities
DRAFT332
FIDUCIARY FUND FINANCIAL STATEMENTS
DRAFT333
FIDUCIARY FUNDS
CUSTODIAL FUNDS Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments, and/or other funds. Custodial
funds are used to report fiduciary activities that are not required to be reported in pension (or other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. Tourism Business Improvement District – Accounts for amounts collected from hotels on behalf of the District, a special-purpose government, whose purpose is to enhance the economic vitality of Bozeman by promoting tourism through sales and marketing strategies. Municipal Court – Accounts for monies held for appearance bonds and restitution .DRAFT334
40 CITY OF BOZEMAN, MONTANA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Custodial
Funds
ASSETS
Cash and cash equivalents 469,777$
Customer receivables 2,607
Total assets 472,384$
LIABILITIES
Accounts payable 425,176
NET POSITION
Restricted for other organizations 47,207
Total liabilities and net position 472,383$ DRAFT335
41 CITY OF BOZEMAN, MONTANA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS June 30, 2021
The Notes to Financial Statements are an integral part of this statement.
Custodial
Funds
ADDITIONS
Contributions
Interest income 1,591$
DEDUCTIONS
Miscellaneous 157
Change in net position 1,434
NET POSITION - Beginning of Year -
Restatements 45,773
NET POSITION - End of Year 47,207$ DRAFT336
NOTES TO FINANCIAL STATEMENTS
DRAFT337
42 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
The City of Bozeman of Gallatin County, Montana (the City) was incorporated as a municipal corporation in 1883. The present City Code of Ordinances was adopted October 3, 2011. Under the charter, the City is governed by a mayor and commission members who comprise the City Commission. The day-to-day affairs of the City are conducted under the supervision of the City Manager, who is appointed by and serves at the pleasure of a majority of the City Commission. The accompanying financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB), the accepted standard-setting body for establishing governmental accounting and financial reporting principles. In June 1999 the GASB issued Statement 34 Basic Financial Statements-and Management’s Discussion and Analysis-for State and Local Governments (GASB 34). This Statement establishes financial reporting requirements for state and local governments throughout the United States. The accompanying financial statements present the financial position of the City and the various funds and fund types, the results of operations of the City
and the various funds and fund types, and the cash flows of the proprietary funds. The financial statements are presented as of June 30, 2021, and for the year then ended. The more significant accounting policies of the City are described below. New Accounting Pronouncement The City implemented the following GASB pronouncement for the year ended June 30, 2021: Statement No. 84, Fiduciary Activities. The goal of this statement is to improve guidance regarding the identification of fiduciary activities for account and financial reporting purposes and how those activities should be
reported. Due to the implementation of GASB 84 the City shows a restatement to Custodial funds of $45,773. Reporting Entity The City has considered all potential component units for which it is financially accountable and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability in Statement 14
The Financial Reporting Entity and Statement 61, The Financial Reporting Entity: Omnibus – an Amendment of GASB Statements No. 14 and No. 34. These criteria include appointing a voting majority of an organization's governing body and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the City. DRAFT338
43 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Reporting Entity (Continued) Although the following entities meet the requirements of Statement 61, they are strictly advisory in nature. Therefore, the government-wide financial statements do not include the financial information of the following entities and their omission does not cause the City’s financial statements to be misleading or incomplete. Should there develop a financial element at some point in the future, the City shall include these entities on its government-wide financial statements.
Senior Center Advisory Council – This council is advisory in nature on senior issues and on how to run the City-owned Senior Center building. The City is responsible for the maintenance and operation of the building.
Parking Commission – The City Commission appoints the governing board of the Parking Commission, which was created by ordinance. The City owns the parking lots, collects the rents, and assigns the lots to the individuals.
City Planning Board – The agreement forming the City Planning Board holds that it will submit its budget to the City Commission for approval, and the City provides all accounting functions and is responsible for the issuance of debt. It is presented with the Special Revenue Funds. Basis of Accounting/Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) present information of all the non-fiduciary activities of the primary government and its component units. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column. These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets and long-term liabilities, are included in the accompanying Statement of Net Position. The City has retroactively included infrastructure in its assets. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Certain eliminations have been made as prescribed by GASB 34 in regards to inter-fund activities, payables, and receivables. All internal balances in the
Statement of Net Position have been eliminated, except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. DRAFT339
44 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting/Measurement Focus (Continued) The City applies all applicable GASB pronouncements (including all National Council on Governmental Accounting Statements and Interpretations currently in effect). The City implemented the following GASB pronouncement for the year ended June 30, 2021: Statement No.84, Fiduciary Activities. The goal of this statement is to improve guidance regarding the identification of fiduciary activities for account and financial reporting purposes and how these activities should be reported. Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances and
changes in fund balances as presented in these statements to the net position and changes in net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met those qualifications.
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current position. Under the
modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources which have been treated as susceptible to accrual by the City are property taxes, intergovernmental revenues, and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. The City has elected to apply the early recognition option of recognizing debt services expenditures provided by GASB Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements. Under this option, an expenditure and a liability are recorded in debt service funds in the current year for amounts due early in the following year, for which resources have been provided during the current year. DRAFT340
45 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting/Measurement Focus (Continued) Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Net Position, and a Statement of Cash Flows for each major proprietary fund. A column representing internal service funds is also presented with the Proprietary Fund Financial Statements. Internal service balances and activities, however, have been combined with the governmental activities in the Government-Wide Financial Statements. Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Operating revenues in the proprietary funds are those
revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Net Position and a Statement of Changes in Fiduciary net Position. The City’s Fiduciary Funds represent Custodial Funds and private-purpose trust fund. Custodial funds are custodial in nature (assets equal liabilities) and do not involve measurement of
results of operations. Therefore, Custodial Funds do not have a measurement focus. These funds are accounted for using the accrual basis of accounting. The following Custodial Funds are included in the Fiduciary Fund financial statements:
Tourism Business Improvement District – Accounts for amounts collected from hotels on behalf of the District, a special-purpose government, whose purpose is to enhance the economic vitality of Bozeman by promoting tourism through sales and marketing strategies.
Municipal Court Trust Fund – Accounts for monies held for appearance bonds and restitution related to criminal arrests and reimbursement for damage caused. Internal Service Funds Internal Service Funds are used to account for goods and services provided by one department to other departments of the City on a cost-reimbursement basis. These direct costs and certain indirect costs are included as part of the program expense reported for the individual functions and activities of these other departments. The following Internal Service Funds are included in the Proprietary Fund Financial Statements:
Vehicle Maintenance Shop – Accounts for the maintenance and repair of vehicles used in the operation of City services.
Medical Health Insurance – Accounts for insurance premium revenues received from the various City departments and retirees, and the related costs of health, vision, and dental insurance premiums incurred by City employees and retirees.
Public Works Administration – Accounts for the professional level management, engineering, and GIS technical support provided to other Public Works divisions, including water, wastewater, solid waste, stormwater, in addition to support provided to other City departments. DRAFT341
46 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Funds As mentioned, the Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. The following major funds are presented in separate columns on the Governmental
Funds Financial Statements, and the Proprietary Funds Financial Statements, respectively:
Governmental Funds
General Fund – this fund accounts for the financial operations of the City, which are not accounted for in any other fund. Principal sources of revenue are property taxes, state and local shared revenues, licenses and permits, and charges for services provided to other funds. Principal expenditures in the General Fund are made for police and fire protection, public welfare, and general government.
American Rescue Plan Act (ARPA) Special Revenue Fund - This fund accounts for the ARPA federal grant program. Grant funds must be used for the stated purpose of the grant and must meet grantor expenditure guidelines.
Special Improvement District (SID) Sinking – Accounts for the accumulation of resources and payment of special assessment bond principal and interest
related to general improvement, sidewalk, and curb construction projects.
General Improvements Capital Projects Fund – Accounts for the construction of general improvement projects financed by special assessments other than those financed by proprietary funds.
Proprietary Funds
Water Fund – Accounts for the City's water utility operations and to collect and administer water impact fees.
Waste Water Fund – Accounts for the City's sewer utility operations and to collect and administer waste water impact fees. Use of Restricted/Unrestricted Net Position When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first. Cash and Investments Cash and investments are under the management of the City's Treasurer and consist primarily of demand deposits and investments in U.S. Government Bonds. Interest income earned as a result of pooling of City deposits is distributed to the appropriate funds utilizing a formula based on the average balance of cash and investments of each fund. Montana State statutes authorize the City to invest in interest-bearing savings accounts, certificates of deposits, and time deposits insured up to $250,000 by the Federal Deposit Insurance Corporation or fully collateralized, U.S. government and U.S. agency obligations and repurchase agreements where there is a master repurchase agreement and collateral held by a third party. DRAFT342
47 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restricted Cash and Investments Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the Balance Sheet because their use is limited by applicable bond covenants. Impact fees collected and line-oversizing fees are restricted for applicable use. Payments in lieu of parking are restricted by code for future parking related capital projects. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Investments Fair Value The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets (these investments are valued using prices quoted in active markets); Level 2 inputs are significant other observable inputs (these investments are valued using matrix pricing); Level 3 inputs are significant unobservable inputs (these investments are valued using consensus pricing).
Eliminations and Reclassifications In the process of aggregating data for the Statement of Net Position and the Statement of Activities, some amounts reported as inter-fund activity and balances
in the funds have been eliminated or reclassified. Internal service fund activity has also been eliminated in the Statement of Activities to remove the “doubling-up” effect. Capital Assets The City’s assets are capitalized at historical cost or estimated historical cost. City policy has set the capitalization threshold for reporting capital assets at $5,000. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. Depreciable capital assets are reported on the Statement of Net Position, net of applicable accumulated depreciation. Capital assets, which are not depreciable such as land, and construction in progress are reported separately. Depreciation expense is reported in the Statement of Activities and is calculated using the straight-line method based on the assets estimated useful life. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Vehicles 5 to 10 years
Machinery and equipment 5 to 30 years
Buildings 20 to 80 years
Other structures and improvements 10 to 100 years
Infrastructure 25 to 100 years DRAFT343
48 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capital Assets (Continued) In accordance with GASB 34, the City has recorded infrastructure assets prospectively from 2005, the date of implementation, and has included infrastructure acquired prior to implementation within the four-year required period. The City defines infrastructure as the basic physical assets that allow the City to function. These assets include the street system, comprised of roads, sidewalks, curbs, and street lights; the water purification and distribution system; the sewer collection and treatment system; park and recreation lands and related improvements; stormwater conveyance system; and buildings and site amenities, including parking and landscaped areas. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. Compensated Absences Payable
Earned but unpaid vacation and sick pay is included as a liability in the proprietary fund types and Government-Wide Financial Statements. The portion relating to the governmental fund types not expected to be paid with expendable, and available resources is not reported in the governmental fund statements unless the liability has matured (i.e., unused reimbursable leave still outstanding following an employee's resignation or retirement).
Inter-fund Receivables and Payables During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those short-term
loans related to goods- and services-type transactions are classified as “due to and from other funds.” Long-term inter-fund loans (noncurrent portion) are reported as “advances to and from other funds.” Inter-fund receivables and payables between funds are eliminated in the Statement of Net Position. On-Behalf Payments for Fringe Benefits On-behalf payments for fringe benefits are direct payments made by one entity to a third-party recipient for the employees of another legally separate entity. On-behalf payments include pension plan contributions. The State's pension contribution is recorded as intergovernmental revenue with an offsetting public safety or general government expenditure in the Pension Special Revenue Fund (see Note 14). Budgets Each year, the City Manager must submit to the City Commission a proposed operating budget for all budget units within the City for the fiscal year commencing July 1. This operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain citizen
comments on the proposed budget. The budget is then legally adopted through passage of the appropriation resolution by the City Commission. The City adopts a final budget each June and amends the budget in August if the initial taxable value estimates were significantly different from the final Certified Values received from the State. DRAFT344
49 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Budgets (Continued) Budgets are legally required for all governmental fund types. These budgets are prepared on the same basis and using the same accounting practices as are used to account and prepare financial reports for the funds. Budgets presented in this report for comparison to actual amounts are presented in accordance with GAAP. Annual appropriated budgets are adopted for all funds and all appropriations lapse at year-end. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. The City Commission may amend the budget during the course of the fiscal year. Montana state statute provides a number of different ways to amend the budget. The first involves a reallocation of existing appropriations among the line items within a specific fund. The second defines a series of scenarios where the governing body has authority to amend the budget without a hearing for donations, land sales, and fee‐based budgets. All other increases in appropriation
authority that are not specifically permitted by statute must be approved through a public hearing process. Any accruing revenue of the municipality not appropriated and any balance at any time remaining after the purpose of an appropriation has been satisfied or
abandoned, may from time to time be appropriated to other uses that do not conflict with any uses for which specifically the revenue was accrued. A public hearing is required for an overall increase in appropriation authority, except in the case of an emergency. In its annual appropriation resolution, the City Commission delegated budget amendment authority to the City Manager for the expenditure of funds from any or all of the following: debt service funds, enterprise funds, internal service funds, trust funds, federal and state grants accepted and approved by the governing body, special assessments, and donations. In all other funds, the City Manager may, without approval from the City Commission, make budget amendments as long as the total appropriation for the department is not exceeded. Spending control is established by the total amount of expenditures budgeted for the fund, but management may exercise control at budgetary line items.
Fund Balance In accordance with GASB Statement 54, the City reports fund balance for governmental funds in two general classifications, nonspendable and spendable. Nonspendable represents the portion of fund balance that is not in spendable form, such as inventories, and, in the general fund, long-term notes and loans receivable. Spendable fund balance is further categorized as restricted, committed, assigned, and unassigned.
The restricted fund balance category contains balances that can be spent only for the specific purposes stipulated by external parties or through enabling legislation. External parties include grantors, debt covenants, votes, and laws and regulations of other governments. The committed fund balance category includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority, the City Commission. The City Commission needs to formally adopt a Resolution in order to establish, modify,
or rescind a fund balance commitment. DRAFT345
50 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Balance (Continued) Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. The City’s policy to authorize the assignment of fund balance is as follows: Assigned Fund Balance can be expressed and authorized directly by the City Commission or by an official to whom the Commission delegates the authority. The City Commission delegates this authority to the City Manager. On DATE, the City Commission accepted and approved the City Manager’s recommendation for the amount of General Fund balance presented on page 24 to be assigned this fiscal year for the specific purposes listed on page 24. Included in the assigned fund balance for the general fund are assignments for the portion of the current general fund balance that is projected to be used to fund expenditures and other cash outflows in excess of the expected revenues and other cash inflows projected for the next fiscal year. Similarly, the City Manager exercised his delegated authority to assign the major Capital Projects Fund balances presented on pages 31 and 36 for the specific purposes listed on page 112 and 113.
Unassigned fund balance is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. In other funds, the unassigned classification should be used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. When both restricted and unrestricted resources are available, spending will occur in the following order, for the identified fund types:
General Fund: Restricted, Committed, Assigned, Unassigned Special Revenue Funds: Restricted, Committed, Assigned Debt Service Funds: Assigned, Committed, Restricted Capital Projects Funds: Restricted, Committed, Assigned
Minimum General Fund – Fund Balance The City does not maintain a stabilization fund. However, the City’s Charter requires an established minimum level of “General Fund Unreserved Fund
Balance,” in accordance with the Government Finance Officers’ Association (GFOA) Best Practices. The GFOA significantly changed their Best Practice Recommendation in October 2009. As a result, in May 2010, the Commission increased the required minimum from 12% to 16 2/3%, or 2 months’ worth of revenues. DRAFT346
51 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 2. CASH AND INVESTMENTS Net Position In funds other than governmental, net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when there are limitations imposed on its use either through enabling legislation or through external restrictions imposed by creditors, grantors, or laws and regulations of other governments. At June 30, 2021, the carrying amount of the City's deposits in local banks and investments is $136,448,790. Interest bearing account balances are covered by the Federal Depository Insurance Corporation (FDIC) up to $250,000 per bank, per depositor. In addition, all noninterest bearing transaction account balances are fully insured by FDIC coverage. Interest bearing account balances not insured by FDIC coverage is $9,486,072. This remaining balance is covered by collateral held by the pledging bank's agent in the City's name.
The City’s cash and investments are reported as follows:
Unrestricted Restricted Total
Governmental activities 73,216,674$ 15,287,464$ 88,504,138$
Business-type activities 26,718,327 20,756,548 47,474,875
Fiduciary funds - 469,777 469,777
99,935,001$ 36,513,789$ 136,448,790$ Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the City’s deposits may not be returned or the City will not be able to recover the collateral securities in the possession of the outside party. The City minimizes custodial credit risk by restrictions set forth in City policy and state law. The City’s policy requires deposits to be 104 percent secured by collateral valued at market value. The City Treasurer maintains a listing of financial institutions, which are approved for investment purposes. Types of securities that may be pledged as collateral are detailed in Section 17-6-103 of the Montana Code Annotated (MCA). City policy requires that specific safeguards against risk of loss be evidenced when the City does not physically hold the securities. DRAFT347
52 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 2. CASH AND INVESTMENTS (CONTINUED)
On June 30, 2021, the following interest rate risks and valuation inputs were associated with the City’s deposits and investments.
Credit Risk
Investment Maturities Rating Fair Value Valuation Inputs
Certificates of deposit
February 2021-April
2021 NA 2,039,060$ Level 2
U.S. Government bonds March 2022 -April
2025 S&P AA+52,729,920 Level 2
U.S. Bank Municipal Investment Account N/A N/A 2,064,073 Level 2
State of Montana Short Term Investment Pool Account N/A N/A 79,000,000
Demand deposits N/A N/A 610,548
Petty cash N/A N/A 5,189
136,448,790$ Credit risk is defined as the risk that an issuer or other counterpart to an investment that will not fulfill its obligation. The above credit risk rating indicates
the probability that the issuer may default in making timely principal and interest payments. The credit ratings presented in the previous tables are provided by Standard and Poor’s Corporation (S&P). The City’s investment policy is to hold investments to maturity with the contractual understanding that these investments are low risk, locked in to a guaranteed rate of return, and are, therefore, not impacted significantly by changes in short term interest rates. The
City has no formal policy relating to interest risk and no formal policy relating to credit risk. The City voluntarily participates in the STIP (Short Term Investment Pool) administered by the Montana Board of Investments (MBOI). A local government’s STIP ownership is represented by shares, the prices of which are fixed at $1.00 per share, and participants may buy or sell shares with one business days’ notice. STIP administrative expenses are charged daily against the STIP income, which is distributed on the first calendar day of each month. Shareholders have the option to automatically reinvest their distribution income in additional shares. STIP is not registered with the Securities and Exchange Commission. STIP is not FDIC insured or otherwise insured or guaranteed by the federal government, the State of Montana, the Montana Board of Investments or any other entity against investment losses and there is no guaranteed rate of return on funds invested in STIP shares. The Montana Board of Investments maintains a reserve fund to offset possible losses and limit fluctuations in STIP’s valuation. The STIP investment portfolio consists of securities with maximum maturity of 2 years. Information on investments held in the STIP can be found in the Annual Report on the Montana Board of Investments website at http://investment.com/AnnualReportsAudits.
DRAFT348
53 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 3. PROPERTY TAX AND SPECIAL ASSESSMENTS REVENUE AND RECEIVABLES
Property Taxes Real property taxes are assessed and collected each fiscal year according to the following property tax calendar:
Lien Date: December 1st for the 1st installment and June 1st for the 2nd installment
Levy Date: November 1st
Due Dates: November 30th for the 1st installment and May 31 for the 2nd installment Personal property taxes are assessed on January 1 of each year and billed in May, with payment due within thirty days. Gallatin County collects all property taxes on behalf of the City and remits collections, including penalties and interest, on a monthly basis. The County assesses a delinquency penalty of 2%. If taxes become delinquent, the County tax collector may sell the property to collect taxes due plus 0.83% per month interest.
Property Taxes (Continued) In the fund financial statements, the City accrues as receivable all property taxes received during the first sixty (60) days of the new fiscal year from Gallatin
County, in accordance with the modified accrual basis. In the government-wide financial statements, all taxes billed, but not yet collected are accrued in accordance with the full accrual basis of accounting, as described in Note 1.
Special Assessments Special assessments receivable represent the uncollected amounts levied against benefited property for the cost of local improvements. Assessments are payable over a period of 18 to 20 years and bear interest of 2.5% to 5.75% per annum. Recognition of the revenues from these assessments has been deferred until both measurable and available in governmental funds. In the Government-Wide Financial Statements, however, these amounts are reported as revenues in the period they are levied. Once received, the monies will be used to meet the annual debt service requirements on related bonds and notes payable. NOTE 4. DEFERRED INFLOWS AND OUTFLOWS OF RESOURCES Deferred inflows of resources in the General Fund represent outstanding general property taxes at June 30, 2021. These amounts are reported as revenue in the Government-Wide Financial Statements in the period in which they are levied. Deferred inflows in Special Revenue Funds represent either revenues received but not considered earned or amounts to be received in the future that are recorded as receivables but not yet earned. The deferred inflows in Debt Service Funds represent future assessments to be received to meet the related debt obligation. Deferred inflows and outflows in the Government-Wide Financial Statements relate to payments made on pension plans after the measurement date for the calculated pension obligations. Deferred inflows and
outflows in the Government-Wide Financial Statements also relate to the implicit rate subsidy of post-employment benefits. DRAFT349
54 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 5. PREPAID RENT (OPERATING LEASE)
On October 22, 1992, the City signed a memorandum of understanding with Gallatin County, Montana, in which the City agreed to lease space from the County's Law and Justice Center for the City Police Department and Municipal Court. The City paid to the County $765,000 during the renovation of the building, which started 1993. The $765,000 constitutes rent for four rental terms of ten years each. During the term of the lease and renewal of the lease, the principal balance of $765,000 will be decreased by equal annual rental payments in the amount of $19,125. If the City and County mutually agree to terminate the lease after the second ten-year term, the County will refund $274,125, to the City for the unused portion of the rent. The lease began when renovations were complete on November 1, 1994. For the year ended June 30, 2021, rent expenditure was $19,125 regarding this lease. NOTE 6. NOTES RECEIVABLE The City had the following notes receivable:
Special Revenue Funds
Economic Development Loan Fund 425,388$
Community Housing Fund 30,236
Total 455,624$ DRAFT350
55 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 7. CAPITAL ASSETS
In accordance with GASB 34, the City has reported all capital assets, with the exception of pre-July 1, 2001, infrastructure in the Government-Wide Statement of Net Position. For the year ended June 30, 2021, depreciation expense on capital assets was charged to the functions and programs as follows:
Governmental Activities:
General Government 338,254$
Public Safety 815,291
Public Services 4,822,992Public Welfare 1,263,742
Total depreciation expense - governmental activities 7,240,279$
Business-type Activities:
Parking 401,057$
Storm Water 175,541
Water 3,189,401
Waste Water 3,298,441
Solid Waste 439,760
Total depreciation expense - business-type activities 7,504,200$ DRAFT351
56 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 7. CAPITAL ASSETS (CONTINUED)
All capital assets of the City are depreciable with the exception of land, water rights, and construction in process, when applicable. Capital assets activity of the City for the year ended June 30, 2021, consisted of the following:
June 30, 2020 Additions Disposals Transfers June 30, 2021
GOVERNMENTAL ACTIVITIES
Non-depreciable:
Land 31,612,231$ 2,005,622$ -$ -$ 33,617,853$
Construction in progress 3,297,530 27,071,757 - - 30,369,287
Depreciable:
Buildings 35,338,788 162,580 - - 35,501,368
Other structures and improvements 1,145,214 - - - 1,145,214
Machinery and equipment 16,586,124 1,428,110 (96,068) -17,918,166
Property under capital lease 771,151 - - - 771,151
Vehicles 4,442,469 455,015 (126,227) - 4,771,257 Infrastructure 237,326,984 6,149,895 - - 243,476,879
Total 330,520,491 37,272,979 (222,295) - 367,571,175
Accumulated depreciation (120,082,197) (7,240,279) 213,719 - (127,108,757)
Total governmental activities 210,438,294$ 30,032,700$ (8,576)$ -$ 240,462,418$
BUSINESS-TYPE ACTIVITIES
Non-depreciable:
Land 2,218,553$ -$ -$ -$ 2,218,553$
Water rights 2,120,142 - - - 2,120,142
Construction in progress - 19,200,051 - - 19,200,051
Depreciable:
Buildings 113,648,314 224,712 - - 113,873,026
Other structures and improvements 30,547,611 - - - 30,547,611
Machinery and equipment 10,818,385 1,357,646 - - 12,176,031
Property under capital lease 519,943 - - - 519,943
Vehicles 2,091,719 180,604 (70,131) - 2,202,192
Infrastructure 343,299,622 7,369,745 - - 350,669,367
Total 505,264,289 28,332,758 (70,131) - 533,526,916
Accumulated depreciation (209,778,315) (7,504,200) 70,131 - (217,212,384)
Total business-type activities 295,485,974$ 20,828,558$ -$ -$ 316,314,532$
Total capital assets 505,924,268$ 50,861,258$ (8,576)$ -$ 556,776,950$ DRAFT352
57 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 7. CAPITAL ASSETS (CONTINUED)
Changes in accumulated depreciation are as follows for the year ended June 30, 2021:
June 30, 2020 Additions Disposals Transfers June 30, 2021
GOVERNMENTAL ACTIVITIES
Buildings (18,559,009)$ (885,356)$ -$ -$ (19,444,365)$
Other structures and improvements (1,130,543) (20,858) - - (1,151,401)
Machinery and equipment (10,265,341) (1,224,105) 87,493 - (11,401,953)
Property under capital lease (307,995) (64,339) - - (372,334)
Vehicles (3,231,327) (279,283) 126,226 - (3,384,384)
Infrastructure (86,587,982) (4,766,338) - - (91,354,320)
Total governmental activities (120,082,197)$ (7,240,279)$ 213,719$ -$ (127,108,757)$
BUSINESS-TYPE ACTIVITIES
Buildings (24,355,232)$ (2,683,563)$ -$ -$ (27,038,795)$
Other structures and improvements (29,317,971) (432,657) - - (29,750,628)
Machinery and equipment (8,225,448) (673,573) - - (8,899,021)
Property under capital lease (285,967) (51,994) - - (337,961)
Vehicles (1,633,837) (82,173) 70,131 - (1,645,879)
Infrastructure (145,959,860) (3,580,240) - - (149,540,100)
Total business-type activities (209,778,315) (7,504,200) 70,131 - (217,212,384)
Total accumulated depreciation (329,860,512)$ (14,744,479)$ 283,850$ -$ (344,321,141)$ NOTE 8. COMPENSATED ABSENCES The City’s policy relating to compensated absences is described in Note 1. The current portion is that which is expected to be paid within one year. This
amount is estimated based on past trends and expected upcoming events. Actual amounts could differ. Historically, compensated absences and pension liabilities have been liquidated primarily by the general fund and the proprietary funds. DRAFT353
58 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 8. COMPENSATED ABSENCES (CONTINUED)
Balance Balance
June 30, 2020 Incurred Satisfied June 30, 2021
Compensated absences:
Governmental activities 3,093,301$ 1,896,557$ (1,799,976)$ 3,189,882$
Business-type activities 532,657 390,517 (369,113) 554,061
Total compensated absences 3,625,958$ 2,287,074$ (2,169,089)$ 3,743,943$
Due within Due after
one year one year Total
Compensated absences:
Governmental activities 1,854,991$ 1,334,891$ 3,189,882$
Business-type activities 434,995 119,066 554,061
Total compensated absences 2,289,986$ 1,453,957$ 3,743,943$ NOTE 9. LONG-TERM DEBT Governmental Activities Long-Term Debt The following is a summary of long-term debt transactions of the City’s governmental activities for the year ended June 30, 2021:
Balance Issuances and Repayments Balance
June 30, 2020 Additions and Deletions June 30, 2021
General obligation bonds 45,445,000$ -$ (2,205,000)$ 43,240,000$
Tax increment financing bonds 4,733,238 6,500,000 (469,583) 10,763,655
Special assessment debt 139,500 4,001,000 (192,284) 3,948,216
Note payable 1,700,000 - (62,883) 1,637,117
Intercap notes payable 781,079 - (171,502) 609,577
Bond premiums 3,778,566 649,009 (229,101) 4,198,474
Subtotal bonds and notes 56,577,383 11,150,009 (3,330,353) 64,397,039
Compensated absences 3,093,301 1,896,557 (1,799,976) 3,189,882
Other post employment benefits liability 2,400,036 - 1,194,691 3,594,727
Net pension liability 21,512,649 6,012,765 - 27,525,414
Totals 83,583,369$ 19,059,331$ (3,935,638)$ 98,707,062$ DRAFT354
59 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 9. LONG-TERM DEBT (CONTINUED) Governmental Activities Long-Term Debt (Continued) The above long-term debt of the City’s governmental activities is presented in the accompanying Statement of Net Position as follows:
Long-term
Current Portion Portion
(due within (due after Total
one year) one year)Long-Term Debt
General obligation bonds 1,980,000$ 41,260,000$ 43,240,000$
Tax increment financing bonds 460,140 10,303,515 10,763,655
Special assessment debt 32,000 3,916,216 3,948,216
Note payable 65,167 1,571,950 1,637,117
Intercap notes payable 173,945 435,632 609,577
Bond premiums 229,101 3,969,373 4,198,474
Subtotal bonds and notes 2,940,353 61,456,686 64,397,039
Compensated absences 1,854,991 1,334,891 3,189,882
Other post employment benefits liability - 3,594,727 3,594,727
Net pension liability - 27,525,414 27,525,414
Totals 4,795,344$ 93,911,718$ 98,707,062$ General Obligation Bonds - The City issues general obligation bonds to provide funds for the acquisition and construction of major capital assets. General obligation bonds are direct obligations of the City and are backed by the full faith and credit of the City. General obligation bonds currently outstanding are as follows:
Due within
Interest Rate Amount one year
General Obligation Refunding Bonds, series 2012
serial maturities through 2021 1.50%-$ -$
General Obligation TOP Bonds, Series 2013
serial maturities through 2034 2.00% 7,180,000 450,000
General Obligation TOP Bonds, Series 2014
serial maturities through 2035 1.00% 3,925,000 225,000
General Obligation Bonds, Series 2019
serial maturities through 2039 2.00% 32,135,000 1,305,000
Total general obligations bonds 43,240,000$ 1,980,000$ DRAFT355
60 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 9. LONG-TERM DEBT (CONTINUED) Governmental Activities Long-Term Debt (Continued) Annual debt service requirements to maturity for general obligation bonds are as follows:
Principal Interest Total
Year ending June 30,
2022 1,980,000$ 1,473,038$ 3,453,038$
2023 2,020,000 1,429,500 3,449,500
2024 2,080,000 1,370,050 3,450,050
2025 2,160,000 1,296,075 3,456,075
2026 2,235,000 1,217,025 3,452,025
2027-2031 12,560,000 4,690,550 17,250,550
2032-2036 13,430,000 2,035,375 15,465,375
2037-2040 6,775,000 332,969 7,107,969
43,240,000$ 13,844,581$ 57,084,581$ Tax Increment Financing Bonds - Tax Increment Financing (TIF) Bonds are not general obligations, but are special limited obligations of the City. The Series 2007 Bonds, the premium, and the interest thereon are not a charge against the general credit or taxing powers of the City. The bonds are payable solely, and equally and ratably from the tax increment revenues received by the City from its Downtown Bozeman Improvement District. If the incremental revenues are insufficient to pay the principal and interest due on the TIF bonds when due, such payment shortfall shall not constitute a default under the TIF agreement. If and when the incremental revenues are sufficient, the City shall pay the amount of any shortfall to the paying agent and registrar without any penalty interest or premium thereon. Due to the uncertainty of the future tax increment receipts, future payments on the TIF bonds may vary from the summary of debt service
requirements. Annual debt services requirements to maturity for the TIF bonds are as follows:
Principal Interest Total
Year ending June 30,
2022 475,140$ 255,732$ 730,872$
2023 485,803 244,248 730,051
2024 501,468 292,163 793,631
2025 517,401 335,691 853,092
2026 531,215 319,318 850,533
2027-2031 2,669,080 1,148,216 3,817,296
2032-2036 1,983,139 325,963 2,309,102
2037-2041 2,020,800 185,000 2,205,800
2042 1,579,609 47,365 1,626,974
10,763,655$ 3,153,696$ 13,917,351$
DRAFT356
61 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 9. LONG-TERM DEBT (CONTINUED) Governmental Activities Long-Term Debt (Continued)
Special Assessment Debt - Special assessment bonds are payable from the collection of special assessments levied against benefited property owners within each special improvement district. To the extent that such special assessment collections are not sufficient to make the required debt service payments, the City is obligated to levy and collect a general property tax on all taxable property in the City to provide additional funding for the debt service payments. The cash balance in the SID Revolving Fund must equal at least 5% of the principal amount of bonds outstanding. If the cash balance is less than 5%, a levy is required to bring the cash balance to the required minimum. The City has issued various special assessment bonds with various maturities through 2040 at interest rates ranging from 2.5% to 5.75%. In addition, the City has issued two notes payable to finance special assessment projects. The following is a schedule of changes in special assessment debt:
Balance Balance
June 30, 2020 Issuances Repayments June 30, 2021
Note Payable to Department of Natural
Resources and Conservation, #WRF-05067 37,000$ -$ (6,000)$ 31,000$
Note Payable to Department of Natural
Resources and Conservation, #SRF-05132 102,500 - (26,000) 76,500
Special Improvement District No. 747 Bond
Series 2020 - 4,001,000 (160,284) 3,840,716
139,500$ 4,001,000$ (192,284)$ 3,948,216$ Annual debt service requirements to maturity for special assessment bonds are as follows:
Note Payable
Principal Interest Total
Year ending June 30,
2022 183,999$ 306,741$ 490,740$
2023 189,799 307,056 496,855
2024 198,253 309,851 508,104
2025 164,866 270,761 435,626
2026 170,142 270,761 440,902
2027-2031 935,952 1,353,803 2,289,755
2032-3036 1,095,610 1,353,803 2,449,413
2037-2040 1,009,595 1,083,042 2,092,637
3,948,216$ 5,255,817$ 1,931,325$ Substantially all special assessment bonds mature 18 to 20 years after the date of issuance but are redeemable at the option of the City whenever cash is available in the respective funds for each issue. The City follows the policy of early redemption on these bonds. Accordingly, a schedule of future interest payments through maturity of the bonds is deemed to be not meaningful and has been excluded. DRAFT357
62 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 9. LONG-TERM DEBT (CONTINUED) Governmental Activities Long-Term Debt (Continued)
Intercap Loans - The City entered in a loan agreement with the Montana Board of Investments to partially finance the reconstruction of South Eighth Avenue. This intercap loan payable had a balance outstanding at June 30, 2021, as follows:
Due within Due after
one year one year Total
Notes payable to Montana Board of Investments in uneven semi-annual
installments including interest at variable rates, ranging from 1.00% to 3.370%:
South 8th Reconstruction, matures in 2022 $ 132,026 $ 66,161 $ 198,187
Upgrade Street Lighting, matures in 2030 13,593 123,945 137,538
Sports Park-Bronken Park improvement, matures in 2029 28,326 245,526 273,852
173,945$ 435,632$ 609,577$ The debt service requirements for the intercap loan at June 30, 2021, are as follows:
Principal Interest Total
Year ending June 30,
2022 173,945$ 4,958$ 178,903$
2023 109,245 992 110,237
2024 44,284 - 44,284
2025 45,520 - 45,520
2026 46,797 - 46,797
2027-2031 189,786 - 189,786
609,577$ 5,950$ 615,527$ Sports Complex Loan - The City entered in a loan agreement with First Security Bank on July 1, 2018 for $1,700,000 for continued improvements to the Bozeman Sports Park, one of the projects identified for funding by the Trail and Open Space General Obligation Bond. The general terms of the loan include
a 3.74% interest rate, 20-year term maturing on June 30, 2039, no origination fee, and semi-annual payments of $62,911. The Sports Park Foundation will provide the funding for the payments through their management of the Sports Park and debt agreements with the City. The
City’s General Fund will take on this debt and make payments. The revenue generated at the Sports Park Foundation will offset the payment. In the event that the Foundation cannot make the debt payment, the City’s General Fund will cover the payment. DRAFT358
63 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 9. LONG-TERM DEBT (CONTINUED) Governmental Activities Long-Term Debt (Continued) The outstanding balance and debt service requirements for the sports complex loan at June 30, 2021, are as follows:
Due within Due after
one year one year Total
65,167$ 1,571,950$ 1,637,117$
Note payable to First Security Bank in semi-annual
installments including interest at 3.74%
through June of 2039
Principal Interest Total
Year ending June 30,
2022 65,167$ 60,628$ 125,795$
2023 67,627 58,168 125,795
2024 70,104 55,691 125,795
2025 72,902 52,893 125,795
2026 75,579 50,216 125,795
2027-2031 422,901 206,073 628,974
2032-2036 508,961 120,014 628,975
2037-2039 353,876 33,867 387,743
1,637,117$ 637,550$ 2,274,667$ Business-type Activities Long-Term Debt
Revenue Bonds - The City also issues bonds where the City pledges income derived from the acquired or constructed assets to pay debt service. Water Revenue Bonds Water revenue bonds outstanding at June 30, 2021, are as follows:
Balance Repayments Balance Long-Term
June 30, 2020 Issuances and Settlements June 30, 2021 Due in One Year Portion
State Revolving Fund Revenue Bond - 12247
Series 2011A, serial maturities through 2032, 3% interest rate $ 6,496,000 $ - $ (481,000) $ 6,015,000 $ 496,000 5,519,000$
State Revolving Fund Revenue Bond - 13291
Series 2011B, serial maturities through 2033, 3% interest rate 6,632,000 - (445,000) 6,187,000 458,000 5,729,000
State Revolving Fund Revenue Bond - 17386
Series 2017, serial maturities through 2037, 2.5% interest rate 6,663,000 - (318,000) 6,345,000 326,000 6,019,000
19,791,000$ -$ (1,244,000)$ 18,547,000$ 1,280,000$ 17,267,000$ DRAFT359
64 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 9. LONG-TERM DEBT (CONTINUED) Business-type Activities Long-Term Debt (Continued)
Water Revenue Bonds (Continued) The revenue bond ordinances specify that the City shall establish various restricted asset accounts and distribute the net revenues for the water fund to the restricted asset accounts and set user rates at levels which will generate minimum net revenues, as defined. The revenue bond ordinances specify that City management and/or the City Commission shall take corrective actions to bring the City into compliance with the revenue bond ordinances, if necessary, and that bondholders shall have the right to institute proceedings, judicial or otherwise, to enforce the covenants of the revenue bond ordinances. The City is in compliance with applicable covenants as of June 30, 2021. Water revenue bond debt service requirements to maturity are as follows:
Principal Interest Total
Year ending June 30,
2022 1,280,000$ 364,590$ 1,644,590$
2023 1,318,000 338,800 1,656,800
2024 1,356,000 312,250 1,668,250
2025 1,395,000 284,930 1,679,930
2026 1,435,000 256,840 1,691,840
2027-2031 7,824,000 833,410 8,657,410
2032-2036 3,464,000 192,940 3,656,940
2037 475,000 7,140 482,140
18,547,000$ 2,590,900$ 21,137,900$
Due within one year $ 1,280,000
Due after one year 17,267,000
18,547,000$ The revenue bond ordinance specifies that the City shall establish various restricted asset accounts and distribute the net revenues for the water fund to the restricted asset accounts and set user rates at levels that will generate minimum net revenues, as defined. The revenue bond ordinances specify that City management and/or the City Commission shall take corrective actions to bring the City into compliance with the revenue bond ordinances, if necessary, and that bondholder shall have the right to institute proceedings, judicial or otherwise, to enforce the covenants of the revenue bond ordinances. The City is in compliance with applicable covenants as of June 30, 2021. DRAFT360
65 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 9. LONG-TERM DEBT (CONTINUED) Business-type Activities Long-Term Debt (Continued)
Waste Water Revenue Bonds Waste Water revenue bonds outstanding at June 30, 2021, are as follows:
Balance Repayments Balance Long-Term
Interest Rate June 30, 2020 Issuances and Settlements June 30, 2021 Due in One Year Portion
Waste Water State Revolving -10252
Series 2010B, serial maturities through 2030 1.75% $ 185,000 $ - $ (18,000) $ 167,000 18,000$ 149,000$
Waste Water Reclamation Facility Revenue Bonds - 10230,
Series 2010D, serial maturities through 2030 3.00% 5,275,000 - (488,000) 4,787,000 502,000 4,285,000
Waste Water Reclamation Facility Revenue Bonds - 10262,
Series 2010F, serial maturities through 2030 3.00% 472,000 - (41,000) 431,000 42,000 389,000
Waste Water Reclamation Facility Revenue Bonds - 11291,
Series 2010C, serial maturities through 2031 3.00% 585,000 - (48,000) 537,000 50,000 487,000
Waste Water Reclamation Facility Revenue Bonds - 11292,
Series 2010G, serial maturities through 2031 3.00% 1,793,000 - (141,000) 1,652,000 146,000 1,506,000
Waste Water Reclamation Facility Revenue Bonds - 11281
Series 2010H, serial maturities through 2031 3.00%5,747,000 - (473,000) 5,274,000 488,000 4,786,000
Waste Water State Revolving - 21490
Series 2020D, serial maturities through 2040 2.50%- 2,807,000 (110,000) 2,697,000 113,000 2,584,000
Waste Water State Revolving - 21487
Series 2020B, serial maturities through 2040 2.50%- 7,786,000 (304,000) 7,482,000 312,000 7,170,000
Waste Water State Revolving - 21506
Series 2020C, serial maturities through 2041 2.50%- 1,392,587 (137,000) 1,255,587 280,000 975,587
Waste Water State Revolving - 21486
Series 2020A Davis/Norton General Obligation Bonds, Forgivable 2.50%- 300,000 - 300,000 - 300,000
14,057,000$ 12,285,587$ (1,760,000)$ 24,582,587$ 1,951,000$ 22,631,587$ DRAFT361
66 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 9. LONG-TERM DEBT (CONTINUED) Business-type Activities Long-Term Debt (Continued)
Waste water revenue bond debt service requirements to maturity are as follows:
Principal Interest Total
Year ending June 30,
2022 1,951,000$ 652,879$ 2,603,879$
2023 2,006,000 610,482 2,616,482
2024 2,069,000 566,848 2,635,848
2025 2,129,000 521,878 2,650,878
2026 2,188,000 475,665 2,663,665
2027-2031 8,818,587 1,098,487 9,917,074
2032-2036 2,860,000 466,518 3,326,518
2037-2041 2,561,000 114,980 2,675,980
24,582,587$ 4,507,737$ 29,090,324$
Due within one year $ 1,951,000
Due after one year 22,631,587
24,582,587$
Stormwater Revenue Bonds Stormwater revenue bonds outstanding at June 30, 2021, are as follows. There has only been one draw-down from the total approved amount of $1,815,000.
Balance Repayments Balance Long-Term
Interest Rate June 30, 2020 Issuances and Settlements June 30, 2021 Due in One Year Portion
Stormwater System Revenue Bond, Series 2015 2.50% $ 1,442,000 $ - $ (80,000) $ 1,362,000 82,000 1,280,000$ DRAFT362
67 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 9. LONG-TERM DEBT (CONTINUED) Business-type Activities Long-Term Debt (Continued)
Stormwater Revenue Bonds (Continued) Stormwater revenue bond debt service requirements to maturity are as follows:
Principal Interest Total
Year ending June 30,
2022 82,000$ 26,830$ 108,830$
2023 84,000 25,180 109,180
2024 87,000 23,490 110,490
2025 89,000 21,740 110,740
2026 90,000 19,950 109,950
2027-2031 490,000 71,410 561,410
2032-2035 440,000 20,050 460,050
1,362,000$ 208,650$ 1,570,650$
Due within one year $ 82,000
Due after one year 1,280,000
1,362,000$ Industrial Revenue and Private Activity Bonds
The City issues tax exempt industrial revenue and private activity bonds to finance construction of facilities within the City, which it sells on installment contracts to the facilities' users. The bonds and the interest payable thereon are not obligations of the City and do not constitute or give rise to a pecuniary liability or contingent liability of the City or a charge against the general credit or taxing power of the City. The bonds are issued under and collateralized by
the indentures and are payable solely from the payments to be made pursuant to the loan agreements between the City and the facilities users. The bonds are not a lien on any of the City’s properties or revenues, other than the facilities for which they were issued.
To provide financial assistance for the acquisition and improvements of the building occupied by a private elementary school, the City has issued a Private Activity Revenue Bond. This bond is secured by the property financed and is payable solely from payments received on the underlying mortgage loan. Upon repayment of the bond, ownership of the acquired facility transfers to the private-sector entity served by the bond issuance. Neither the City nor any political subdivision thereof is obligated in any manner for repayment of the bond. Accordingly, the bond is not reported as a liability in the accompanying financial statements. As of June 30, 2021, the Revenue Bond outstanding had an aggregate principal amount payable of $164,419. DRAFT363
68 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 10. CAPITAL LEASE OBLIGATIONS
In 2015, the City entered into a lease for a Vactor vacuum truck. The lease term is six years payable in annual installments of $57,810 at 3.30%. The total amount capitalized of $367,373 represents the present value of the future lease payments. The payments for this obligation are being recorded in the stormwater fund. In 2016, the City entered into a lease for a RPMTECH Snow Blower with Caterpillar. The lease term is six years payable in six annual installments of $13,933 and one payment of $6,640 at 3.20%. The total amount capitalized of $82,877 represents the present value of the future lease payments. The payments for this obligation are being recorded in the street maintenance fund. In 2018, the City entered into a lease for a printer. The lease term is five years payable in monthly installments of $157. The total amount capitalized of $8,006 represents the present value of future lease payments. The payments for this obligation are being recorded in the general fund.
In 2018, the City entered into a lease for a 2018 Toyota Prius Prime vehicle. The lease term is five years payable in monthly installments of $430 at 7.04%. The total amount capitalized of $16,067 represents the present value of the future lease payments. The payments for this obligation are being recorded in the general fund.
In 2018, the City entered into a lease for a 2019 Toyota Highlander. The lease term is three years payable in monthly installments of $339 at 7.04%. The total amount capitalized of $13,541 represents the present value of the future lease payments. The payments for this obligation are being recorded in the
general fund. In 2018, the City entered into a lease for a used 2015 Toyota Prius vehicle. The lease term is five years payable in monthly installments of $301 at 7.04%. The total amount capitalized of $15,198 represents the present value of the future lease payments. Half of the payments for this obligation are being recorded in the water fund and half are being recorded in the street maintenance special revenue fund. In 2018, the City entered into a lease for a used 2015 Toyota Prius vehicle. The lease term is five years payable in monthly installments of $306 at 7.04%. The total amount capitalized of $15,430 represents the present value of the future lease payments. The payments for this obligation are being recorded in the water fund. In 2018, the City entered into a lease for a used 2015 Toyota Prius vehicle. The lease term is five years payable in monthly installments of $346 at 7.04%. The
total amount capitalized of $20,753 represents the present value of the future lease payments. The payments for this obligation are being recorded in the public administration internal service fund. In 2018, the City entered into a lease for a used 2015 Toyota Prius vehicle. The lease term is five years payable in monthly installments of $301 at 7.04%. The total amount capitalized of $18,072 represents the present value of the future lease payments. The payments for this obligation are being recorded in the public administration internal service fund
DRAFT364
69 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 10. CAPITAL LEASE OBLIGATIONS (CONTINUED)
In 2018, the City entered into a lease for a 2018 motor grader with Caterpillar. The lease term is 6 years payable in five annual installments of $31,023 and one payment of $127,840 at 4.55%. The total amount capitalized of $244,531 represents the present value of the future lease payments. The payments for this obligation are being recorded in the street maintenance special revenue fund. In 2019, the City entered into a lease for a 2019 Elgin Broom Bear Street Sweeper Grader with Merchants Bank. The lease term is six years payable in five annual payments of $41,388 at 4.35%. The total amount capitalized of $223,395 represents the present value of the future lease payments. The payments for this obligation are being recorded in the street maintenance fund. In 2020, the City entered into a lease for a 2020 Toyota Prius vehicle with Toyota Financial Services. The lease term is three years payable in monthly installments of $391 with monthly interest and principal payments of $46 and $345, respectively. The total amount capitalized of $12,813 represents the present value of the future lease payments. The payments for this obligation are being recorded in the general fund.
The capital lease balance outstanding at June 30, 2021, is as follows:
Balance Balance
June 30, 2020 Issuances Repayments June 30, 2021
Governmental Activities:
Snow Blower 2016 32,625 - (12,889) 19,736
Caterpillar 2018 169,920 - (23,292) 146,628
Canon Printer 2018 4,330 - (1,647) 2,683
Elgin Broom Sweeper 148,696 - (34,789) 113,907
Highlander 4,856 - (3,884) 972
Prius Sustainability 6,458 - (5,166) 1,292
Prius Streets 4,993 - (1,503) 3,490
Prius Engineering 9,990 - (3,006) 6,984
Prius Engineering 2 11,474 - (3,452) 8,022
Hybrid 2020 10,697 - (4,141) 6,556
$ 404,039 $ - $ (93,769) $ 310,270
Business-Type Activities:
2015 Vactor Vacuum Truck $ 55,936 -$ $ (55,936) $ -
Prius Water 4,996 - (1,503) 3,493
Prius Water Conservation 10,145 - (3,053) 7,092
$ 71,077 $ - $ (60,492) $ 10,585 DRAFT365
70 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 10. CAPITAL LEASE OBLIGATIONS (CONTINUED)
The following is a schedule, by year, of future minimum lease payments under capital leases, together with the present value of minimum lease payments at June 30, 2021:
Governmental Business-Type
Activities Activities
Year ending June 30,
2022 $ 104,813 $ 5,477
2023 188,910 5,476
2024 42,390 458
2025 - -
Less amount representing interest (25,843) (826)
Present value of future minimum lease payments 310,270$ 10,585$ The property under capital lease and the corresponding accumulated depreciation at June 30, 2021, is as follows:
Activities Activities
Machinery and equipment 902,158$ 605,279$
Less: accumulated depreciation (292,486) (352,657)
609,672$ 252,622$ NOTE 11. CLASSIFICATION OF NET POSITION
In the Government-Wide Financial Statements, net position are classified in the following categories:
Net Investment in Capital Assets – This category groups all capital assets, including infrastructure in future years, into one component of net
position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce this category.
Restricted Net Position – This category represents external restrictions imposed by creditors, grantors, contributors, or laws or regulations of
other governments, and restrictions imposed by law through constitutional provision or enabling legislation. Net Position is presented as restricted by major purpose.
Unrestricted Net Position – This category represents the net position of the City that are not restricted for any project or other purpose.
DRAFT366
71 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 11. CLASSIFICATION OF NET POSITION (CONTINUED)
In the Fund Financial Statements, commitments and assignments segregate portions of fund balance that are either not available or have been earmarked for specific purposes. The various commitments and assignments are established by actions of the City Commission and Management and can be increased, reduced, or eliminated by similar actions. Refer to Note 25 for a further disclosure related to net position classifications. The City’s calculation of net investment in capital assets is as follows:
Net capital assets 240,462,418$
Less: capital related debt (64,707,309)
Plus: unspent capital related debt proceeds 24,480,851
Less: capital related retainage and accounts payables (3,304,716)
Net investment in capital assets 196,931,244$
NOTE 12. DEFICIT FUND BALANCES At June 30, 2021, the following funds had a deficit fund balances: TIFD South Bozeman Technology fund ($7,610), TIF Bonds fund ($1,499) and the Vehicle Maintenance Shop fund ($254,310). The deficit fund balance in the TIFD South Bozeman Technology fund is due to legal counsel costs incurred in the creation of this Tax Increment Financing District in fiscal year 2014. To-date the amount of property tax increment revenue has not been sufficient to eliminate this deficit, but increment revenue is expected to increase in future years. The deficit fund balance in the TIF Bonds fund is due to fiscal agent fees related to the debt. The Midtown TIF fund will reimburse the debt service fund for these costs.
The deficit fund balance in Vehicle Maintenance Shop fund is due to an increase in the materials and supplies and salaries and benefits expenses. The coming year will recover defect balances form all the related shop users. NOTE 13. DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. In accordance with GASB Statement No. 32, the City does not report any balances related to the deferred compensation plan, as these amounts represent neither assets nor liabilities to the City, and the plan is administered by an independent third party. DRAFT367
72 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS Plan Description and Provisions All City of Bozeman full-time employees participate in one of three statewide, cost-sharing, multiple-employer, retirement benefit plans administered by the Public Employees Retirement Division (PERD). Contributions to the three plans are as required by State statute. Fiscal years 2021 and 2020 total payroll and covered payroll for all retirement plans were $26,039,412 and $24,693,753, respectively. Financial information for all three plans is reported in the Public Employees' Retirement Board's published Comprehensive Annual Financial Report for the fiscal year-end. It is available from the PERD at 100 North Park Avenue, Suite 220, P.O. Box 200131, Helena, MT 59620-0131. The authority to establish, amend, and provide cost of living adjustments to all three plans is assigned to the State legislature. The authority to establish and amend contribution rates to all three plans is also assigned to the State legislature. Aggregate Pension Totals The following table aggregates the amounts for all pension plans in which the City participates.
PERS FURS MPORS Total
Pension deferred outflows of resources 5,169,560$ 1,956,808$ 2,360,533$ 9,486,901$
Net pension liability 22,483,506 3,632,981 7,311,248 33,427,735
Pension deferred inflows of resources 1,461,453 33,560 23,079 1,518,092
Pension expense 4,160,601 2,298,883 3,878,270 10,337,754
Public Employees' Retirement System (PERS) In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non-employer contributing entity are required
to recognize and report certain amounts associated with participation in the Public Employees’ Retirement System Defined Benefit Retirement Plan (the Plan). This includes the proportionate share of the collective Net Pension Liability; Pension Expense; and Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers are provided guidance in GASB Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate for reporting, whether provided through cost-sharing, single-employer, or agent plans. These disclosures provide information for employers who are using a June 30, 2020 measurement date for the 2021 reporting.
Summary of Significant Accounting Policies The Montana Public Employee Retirement Administration (MPERA) prepares its financial statements using the accrual basis of accounting. The same accrual
basis was used by MPERA for the purposes of determining the Net Pension Liability (NPL); Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions; Pension Expense; the Fiduciary Net Position; and, Additions to or Deductions from Fiduciary Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by the United States of America.
MPERA applied all applicable pronouncements of the Governmental Accounting Standards Board (GASB). DRAFT368
73 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) General Information about the Pension Plan
Plan Description The PERS-Defined Benefit Retirement Plan (DBRP), administered by the Montana Public Employee Retirement Administration (MPERA), is a multiple-employer, cost-sharing plan established July 1, 1945, and governed by Title 19, chapters 2 & 3, Montana Code Annotated (MCA). This plan provides retirement benefits to covered employees of the State, and local governments, and certain employees of the Montana University System, and school districts. Benefits are established by state law and can only be amended by the Legislature.
All new members are initially members of the PERS-DBRP and have a 12-month window during which they may choose to remain in the PERS-DBRP or
join the PERS-DCRP by filing an irrevocable election. Members may not be participants of both the defined benefit and defined contribution retirement plans. All new members from the universities also have a third option to join the university system’s Montana University System Retirement Program (MUS-RP). Public Employees' Retirement System (PERS)
Benefits Provided The PERS-DBRP provides retirement, disability, and death benefits to plan members and their beneficiaries. Benefits are based on eligibility, years of service, and highest average compensation (HAC). Member rights are vested after five years of service.
Service Retirement Hired prior to July 1, 2011: Age 60, 5 years of membership service; Age 65, regardless of membership service; or Any age, 30 years of membership service.
Service Retirement (Continued) Hired on or after July 1, 2011: Age 65, 5 years of membership services; Age 70, regardless of membership service.
Early Retirement Early retirement, actuarially reduced: Hired prior to July 1, 2011: Age 50, 5 years of membership service; or
Any age, 25 years of membership service.
Hired on or after July 1, 2011: Age 55, 5 years of membership service.
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74 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Public Employees' Retirement System (PERS) (Continued)
Second Retirement (requires returning to PERS-covered employer or PERS service): 1. Retire before January 1, 2016 and accumulate less than 2 years additional service credit or retire on or after January 1, 2016 and accumulate
less than 5 years additional service credit:
a) A refund of member’s contributions plus return interest (currently 2.02% effective July 1, 2018);
b) No service credit for second employment;
c) Start the same benefit amount the month following termination; and
d) Guaranteed Annual Benefit Adjustment (GABA) starts again in the January immediately following the second retirement. 2. Retire before January 1, 2016 and accumulate at least 2 years of additional service credit;
a) A recalculated retirement benefit based on provisions in effect after the initial retirement; and
b) GABA starts on the recalculated benefit in the January after receiving the new benefit for 12 months.
3. Retire on or after January 1, 2016 and accumulate 5 or more years of service credit;
c) The same retirement as prior to the return to service;
d) A second retirement benefit as prior to the second of service based on laws in effect upon the rehire date; and
e) GABA starts on both benefits in January after receiving the original and new benefit for 12 months. Member’s Highest Average Compensation (HAC)
Hired prior to July 1, 2011 – highest average compensation during any consecutive 36 months; Hired on or after July 1, 2011 – highest average compensation during any consecutive 60 months;
Compensation Cap Hired on or after July 1, 2013 – 110% annual cap on compensation considered as a part of member’s highest average compensation. Monthly Benefit Formula Members hired prior to July 1, 2011:
• Less than 25 years of membership service: 1.785% of HAC per year of service credit;
• 25 years of membership service or more: 2% of HAC per year of service credit.
Members hired on or after July 1, 2011:
• Less than 10 years of membership service: 1.5% of HAC per year of service credit;
• 10 years or more, but less than 30 years of membership service: 1.785% of HAC per year of service credit;
• 30 years or more of membership service: 2% of HAC per year of service credit.
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75 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Public Employees' Retirement System (PERS) (Continued)
Guaranteed Annual Benefit Adjustment (GABA)* After the member has completed 12 full months of retirement, the member's benefit increases by the applicable percentage (provided below) each January, inclusive of other adjustments to the member's benefit.
• 3% for members hired prior to July 1, 2007
• 1.5% for members hired between July 1, 2007 and June 30, 2013
• Members hired on or after July 1, 2013: (a) 1.5% for each year PERS is funded at or above 90%; (b) 1.5% is reduced by 0.1% for each 2% PERS is funded below 90%; and (c) 0% whenever the amortization period for PERS is 40 years or more. Overview of Contributions The state Legislature has the authority to establish and amend contribution rates. Member and employer contribution rates are specified by Montana Statute and are a percentage of the member’s compensation. Contributions are deducted from each member’s salary and remitted by participating employers.
Special Funding: The State of Montana, as the non-employer contributing entity, paid to the Plan, additional contributions that qualify as special funding. Those employers who received special funding are all participating employers.
Not Special Funding: Per Montana law, state agencies and universities paid their own additional contributions. The employer paid contributions are not
accounted for as special funding for state agencies and universities but are reported as employer contributions. Member and employer contribution rates are shown in the table below.
State &
Universities
Fiscal Year
Hired
<07/01/11
Hired
>07/01/11 Employer Employer State Employer State
2021 7.900% 7.900% 8.870% 8.770% 0.100% 8.500% 0.370%
2020 7.900% 7.900% 8.770% 8.670% 0.100% 8.400% 0.370%
2019 7.900% 7.900% 8.670% 8.570% 0.100% 8.300% 0.370%
2018 7.900% 7.900% 8.570% 8.470% 0.100% 8.200% 0.370%
2017 7.900% 7.900% 8.470% 8.370% 0.100% 8.100% 0.370%
2016 7.900% 7.900% 8.370% 8.270% 0.100% 8.000% 0.370%
2015 7.900% 7.900% 8.270% 8.170% 0.100% 7.900% 0.370%
2014 7.900% 7.900% 8.170% 8.070% 0.100% 7.800% 0.370%
2012-2013 6.900% 7.900% 7.170% 7.070% 0.100% 6.800% 0.370%
2010-2011 6.900%7.170% 7.070% 0.100% 6.800% 0.370%
2008-2009 6.900%7.035% 6.935% 0.100% 6.800% 0.235%
2000-2007 6.900%6.900% 6.800% 0.100% 6.800% 0.100%
Member School DistrictsLocal Government
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76 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Public Employees' Retirement System (PERS) (Continued)
Overview of Contributions (Continued) 1. Member contributions to the system of 7.9% of member’s compensation are temporary and will be decreased to 6.9% on January 1 following actuary valuation results that show the amortization period has dropped below 25 years and would remain below 25 years following the reduction of both the additional employer and additional member contribution rates.
2. Employer contributions to the system:
a. Effective July 1, 2014, following the 2013 Legislative Session, PERS-employer contributions increase an additional 0.1% a year and will continue over 10 years through 2024. The additional employer contributions including the 0.27% added in 2007 and 2009, will terminate on January 1 following an actuary valuation that shows the amortization period of the PERS-DBRP has dropped below 25 years and remains below the 25 years following the reduction of both the additional employer and member contributions rates.
b. Effective July 1, 2013, employers are required to make contributions on working retirees’ compensation. Member contributions for working
retirees are not required.
c. The portion of employer contributions allocated to the PCR are included in the employers reporting. The PCR was paid off effective March 2016
and the contributions previously directed to the PCR are now directed to member accounts.
3. Non Employer Contributions
a. Special Funding i. The State contributes 0.1% of members’ compensation on behalf of local government entities. ii. The State contributes 0.37% of members’ compensation on behalf of school district entities. iii. The state contributed a Statutory Appropriation from the General Fund of $33,951,000.
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77 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Public Employees' Retirement System (PERS) (Continued)
Actuarial Assumptions The total pension liability (TPL) in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions.
• Investment Return (net of admin expense) 7.34%
• Admin expense as a % of payroll 0.30%
• General Wage Growth* 3.50% *includes Inflation at 2.40%
• Merit Increases 0% to 4.8%
• Postretirement Benefit Increases Guaranteed Annual Benefit Adjustment (GABA) each January. After the member has completed 12 full months of retirement, the member’s benefit increases by the applicable percentage (provided below) each January, inclusive of other adjustments to the member’s benefit.
° 3% for members hired prior to July 1, 2007
° 1.5% for members hired between July 1, 2007 and June 30, 2013
° Members hired on or after July 1, 2013:
a) 1.5% for each year PERS is funded at or above 90%;
b) 1.5% is reduced by 0.1% for each 2% PERS is funded below 90%; and c) 0% whenever the amortization period for PERS is 40 years or more.
• Mortality assumptions among contributing members, service retired members and beneficiaries are based on RP-2000 Combined Employee and Annuitant Mortality Tables projected to 2020 with scale BB, males set back one year.
• Mortality assumptions among disabled members are based on RP-2000 Mortality Tables with no projections.
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78 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Public Employees' Retirement System (PERS) (Continued)
Actuarial Assumptions (Continued) The most recent experience study, performed for the period covering fiscal years 2011 through 2016, is outlined in a report dated May 5, 2017 and can be located on the MPERA website. The long-term expected return on pension plan assets is reviewed as part of the regular experience studies prepared for the Plan. The long-term rate of return as of June 30, 2020, was calculated using the average long-term capital market assumptions published in the Survey of Capital Market Assumptions 2020 Edition by Horizon Actuarial Service, LLC, yielding a median real rate of return of 4.94%. The assumed inflation is based on the intermediate inflation of 2.4% in the 2020 OASDI Trustees Report by the Chief Actuary for Social Security to produce 75-year cost projections. Combining these two results yields a nominal return of 7.34%. Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation (78c & 78f) as of June 30, 2020, are summarized below.
Long-Term Expected
Target Asset Real Rate of Return
Asset Class Allocation Arithmetic Basis
Cash 2.00%0.11%
Domestic Equity 30.00%6.19%
International Equity 16.00%6.92%
Private Investments 14.00%10.37%
Natural Resources 4.00%3.43%
Real Estate 9.00%5.74%
Core Fixed Income 20.00%1.57%
Non-Core Fixed Income 5.00%3.97%
Total 100.00% Discount Rate The discount rate used to measure the TPL was 7.34%. The projection of cash flows used to determine the discount rate assumed that contributions from participating plan members, employers, and non-employer contributing entities would be made based on the Board’s funding policy, which established the contractually required rates under the Montana Code Annotated. The state contributed 0.10% of the salaries paid by local governments and 0.37% paid by school districts. In addition, the state contributed a statutory appropriation from the general fund. Based on those assumptions, the Plan’s fiduciary net position was projected to be adequate to make all the projected future benefit payments of current plan members through the year 2123. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in the discount rate.
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79 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Public Employees' Retirement System (PERS) (Continued)
Sensitivity of the proportionate share of the net pension liability to changes in the discount rate – The following presents the employer’s sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a significant change in the liability. The NPL was calculated using the
discount rate of 7.34%, as well as what the NPL would be if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate.
As of 1.0% Decrease Current Discount 1.0% Increase
Measurement Date at 6.34%Rate at 8.34%
City of Bozeman Net Pension Liability $30,947,214 $22,483,506 $15,374,048 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions GASB Statement 68 allows a measurement date of up to 12 months before the employer’s fiscal year-end can be utilized to determine the Plan’s TPL. The basis for the TPL as of June 30, 2020, was determined by taking the results of the June 30, 2019, actuarial valuation and applying standard roll forward procedures. The roll forward procedure uses a calculation that adds the annual normal cost (also called the service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. The roll forward procedure will include the effects of any assumption changes and legislative changes. The update procedures are in conformity with Actuarial Standards of Practice issued by the Actuarial Standards
Board. The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate shares of the employer’s and
the state of Montana’s NPL for June 30, 2021, and 2020 (reporting dates), are displayed below. The employer’s proportionate share equals the ratio of the employer’s contributions to the sum of all employer and non-employer contributions during the measurement period. The state’s proportionate share for a particular employer equals the ratio of the contributions for the particular employer to the total state contributions paid. The employer recorded a liability of
$22,483,506 and the employer’s proportionate share was 0.852225 percent.
As of Reporting Date Net Pension Liability as of
6/30/21
Net Pension Liability as of
6/30/20
Percent of Collective NPL
as of 6/30/21
Percent of Collective NPL
as of 6/30/20
Change in Percent of
Collective NPL
City of Bozeman Proportionate Share $ 22,483,506 $ 18,018,039 0.8522%0.8620%-0.0098%
State of Montana Proportionate Share associated
with the City 7,096,303 5,867,557 0.2690%0.2807%-0.0117%
Total 29,579,809$ 23,885,596$ 1.1212%1.1427%-0.0215% Changes in Actuarial Assumptions and Methods: The following changes in assumptions or other inputs were made that affected the measurement of the TPL: 1. The discount rate was lowered from 7.65% to 7.34% 2. The investment rate of return was lowered from 7.65% to 7.34%
3. The inflation rate was reduced from 2.75% to 2.40% DRAFT375
80 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Public Employees' Retirement System (PERS) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Changes in Benefit Terms: There have been no changes in benefit terms since the previous measurement date. Changes in Proportionate Share: There were no changes between the measurement date of the collective NPL and the employer’s reporting date that are expected to have a significant effect on the employer’s proportionate share of the collective NPL. Pension Expense At June 30, 2021, the employer recognized $3,000,057 for its proportionate share of the Plan’s pension expense. The employer also recognized grant revenue
of $1,160,544 for the support provided by the State of Montana for its proportionate share of the pension expense associated with the employer.
As of reporting date Pension Expense as of
6/30/21
Pension Expense as of
6/30/20
City’s Proportionate Share 3,000,057$ 2,505,327$
Employer Grant Revenue - State of Montana
Proportionate Share for Employer 1,160,544 398,345
Total 4,160,601$ 2,903,672$ Recognition of Deferred Inflows and Outflows
At June 30, 2021, the employer reported its proportionate share of PERS’ deferred outflows of resources and deferred inflows of resources related to PERS from the following sources:
As of Reporting Date Deferred Outflows of
Resources
Deferred Inflows of
Resources
Expected v. actual experience 362,930$ 642,837$
Projected investment earnings v. actual
investment earnings 1,946,871 -
Changes in assumptions 1,556,897 -
Changes in proportion and differences between
employer contributions and proportionate share
of contributions - 818,616
Employer contributions subsequent to the
measurement date 1,302,862 -
Total 5,169,560$ 1,461,453$ DRAFT376
81 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Public Employees' Retirement System (PERS) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Recognition of Deferred Inflows and Outflows (Continued)
Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in the employer’s pension expense as follows:
For the Reporting Year ended June 30:
Recognition of deferred
outflows and deferred
inflows in future years as
an increase or (decrease)
to pension expense
2022 69,479$
2023 1,169,112$
2024 680,523$
2025 486,401$
2026 -$
Thereafter -$ PERS Disclosure for the Defined Contribution Plan The City contributed to the state of Montana Public Employee Retirement System Defined Contribution Retirement Plan (PERS-DCRP) for employees that
have elected the DCRP. The PERS-DCRP is administered by the PERB and is reported as a multiple employer plan established July 1, 2002, and governed by Title 19, chapters 2 & 3, MCA.
All new PERS members are initially members of the PERS-DBRP and have a 12-month window during which they may choose to remain in the PERS-DBRP or join the PERS-DCRP by filing an irrevocable election. Members may not be participants of both the defined benefit and defined contribution retirement plans.
Member and employer contribution rates are specified by state law and are a percentage of the member’s compensation. Contributions are deducted from each member’s salary and remitted by participating employers. The state Legislature has the authority to establish and amend contribution rates.
Benefits are dependent upon eligibility and individual account balances. Participants are vested immediately in their own contributions and attributable income. Participants are vested after 5 years of membership service for the employer’s contributions to individual accounts and the attributable income. Non-vested contributions are forfeited upon termination of employment per 19-3-2117(5), MCA. Such forfeitures are used to cover the administrative expenses of the PERS-DCRP. DRAFT377
82 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Public Employees' Retirement System (PERS) (Continued)
PERS Disclosure for the Defined Contribution Plan (Continued) At the plan level for the reporting period ended June 30, 2021, the PERS-DCRP employer did not recognize any net pension liability or pension expense for the defined contribution plan. Plan level non-vested forfeitures for the 329 employers that have participants in the PERS-DCRP totaled $775,195. Pension plan fiduciary net position: The stand-alone financial statements of the Montana Public Employees Retirement Board (PERB) Comprehensive Annual Financial Report (CAFR) and the GASB 68 Report disclose the Plan’s fiduciary net position. The reports are available from the PERB at PO Box 200131, Helena, MT 59620-0131, (406) 444-3154 or both are available on the MPERA website at http://mpera.mt.gov/index.shtml. Firefighters’ Unified Retirement System (FURS)
In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non-employer contributing entity are required to recognize and report certain amounts associated with participation in the Firefighters’ Unified Retirement System (the Plan). This includes the proportionate share of the collective Net Pension Liability; Pension Expense; and Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers
are provided guidance in GASB Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate for reporting, whether provided through cost-sharing, single-employer, or agent pension plans. These disclosures provide information for employers who are using a June 30, 2020 measurement date for the 2021 reporting.
Summary of Significant Accounting Policies MPERA prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA for the purposes of determining the Net Pension Liability (NPL); Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions; Pension Expense; the Fiduciary Net Position; and, Additions to or Deductions from Fiduciary Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by the United States of America. MPERA applied all applicable pronouncements of the Governmental Accounting Standards Board (GASB).
General Information about the Pension Plan
Plan Description The Firefighters’ Unified Retirement System (FURS), administered by the Montana Public Employee Retirement Administration (MPERA), is a multiple-
employer, cost-sharing defined benefit plan established in 1981, and governed by Title 19, chapters 2 & 13, Montana Code Annotated (MCA). This plan provides retirement benefits to firefighters employed by first- and second-class cities, other cities and rural fire district departments that adopt the plan, and to firefighters hired by the Montana Air National Guard on or after October 1, 2001. Benefits are established by state law and can only be amended by the
Legislature. DRAFT378
83 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Firefighters’ Unified Retirement System (FURS) (Continued)
Benefits Provided The FURS provides retirement, disability, and death benefits to plan members and their beneficiaries. Benefits are based on eligibility, years of service, and
highest average compensation (HAC). Member rights are vested after five years of service.
Service Retirement and monthly benefit formula
• Hired on or after July 1, 1981, or has elected to be covered by GABA: o 20 years of membership service o 2.5% of HAC x years of service credit
• Hired prior to July 1, 1981, and who had not elected to be covered by GABA, the greater of above, or: o If membership service is less than 20 years:
2% of the highest monthly compensation (HMC) x years of service credit, and o If membership service is greater or equal to 20 years:
50% of HMC + 2% of HMC x years of service credit in excess of 20,
• Early retirement: Age 50 with 5 years of membership service – Normal retirement benefit calculated using HAC and service credit.
Second Retirement:
Applies to retirement system members re-employed in a FURS position on or after July 1, 2017:
• If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before terminating again, the member: o is not awarded service credit for the period of reemployment; o is refunded the accumulated contributions associated with the period of reemployment;
o starting the first month following termination of service, receives the same retirement benefit previously paid to the member; and o does not accrue post-retirement benefit adjustments during the term of reemployment but receives a Guaranteed Annual
Benefit Adjustment (GABA) in January immediately following second retirement.
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84 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Firefighters’ Unified Retirement System (FURS)
Benefits Provided (Continued)
Second Retirement (Continued):
• If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before terminating again, the member:
o Is awarded service credit for the period of reemployment; o Starting the first month following termination services, receives:
The same retirement benefit previously paid to the member; and
A second retirement benefit for the period of reemployment calculated based on the laws in effect as of the members’ rehire date, and o Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA;
On the initial retirement benefit in January immediately following second retirement, and
On the second retirement benefit starting in January after receiving that benefit for at least 12 months. o A member who returns to covered service is not eligible for a disability benefit.
Member’s Compensation Period used in Benefit Calculation
• Hired prior to July 1, 1981 and not electing GABA - highest monthly compensation (HMC)
• Hired after June 30, 1981 and those electing GABA – highest average compensation (HAC) during any consecutive 36 months (or shorter period of total service).
• Part-time firefighter: 15% of regular compensation of a newly confirmed full-time firefighter.
Compensation Cap
• Hired on or after July 1, 2013 – 110% annual cap on compensation considered as part of a member’s highest average compensation.
Guaranteed Annual Benefit Adjustment (GABA)
• Hired on or after July 1, 1997, or those electing GABA, and has been retired for at least 12 months – the member’s benefit increases by 3.0% each January.
Minimum Benefit Adjustment (non-GABA)
• A member with 10 or more years of membership service who has not elected to be covered under GABA - the minimum benefit provided may not be less than 50% of the monthly compensation paid to a newly confirmed active firefighter of the employer that last employed the member as
a firefighter in the current fiscal year. Contributions The State Legislature has the authority to establish and amend contribution rates to the plan. Member and employer contribution rates are specified by Montana Statute and are a percentage of the member’s compensation. Contributions are deducted from each member’s salary and remitted by participating employers. DRAFT380
85 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Firefighters’ Unified Retirement System (FURS) (Continued)
Special Funding MCA 19-13-604 requires the State of Montana to contribute a percentage of total compensation directly to the Plan annually after the end of each fiscal year.
Member, Employer and State contribution rates are shown in the table below.
Non-GABA GABA Employer State
9.50% 10.70% 14.36% 32.61%
7.80%14.36% 32.61%
Member
Fiscal Year
1998 - 2021
1997 Actuarial Assumptions The total pension liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions:
• Investment Return 7.34%
• Admin expense as a % of payroll 0.13%
• General Wage Growth* 3.50% *includes Inflation at 2.40%
• Merit Increases 0% to 6.30%
• Postretirement Benefit Increases
o Guaranteed Annual Benefit Adjustment (GABA) each January
Members hired on or after July 1, 1997 or those electing GABA, and has been retired for at least 12 months, the member’s benefit increases by a maximum of 3% each January.
o Minimum Benefit Adjustment (non-GABA) A member with 10 or more years of membership service who has not elected to be covered under GABA - the minimum benefit provided may not be less than 50% of the monthly compensation paid to a newly confirmed active firefighter of the employer that last employed the member as a firefighter in the current fiscal year.
• Mortality assumptions among contributing members, service retired members and beneficiaries are based on RP-2000 Combined Employee and Annuitant Mortality Tables projected to 2020 using Scale BB, males set back 1 year.
• Mortality assumptions among disabled members are based on RP-2000 Combined Mortality Tables with no projections. DRAFT381
86 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Firefighters’ Unified Retirement System (FURS) (Continued)
Actuarial Assumptions (Continued) The most recent experience study, performed for the period covering fiscal years 2011 through 2016, is outlined in a report dated May 5, 2017 and can be located on the MPERA website. The long-term expected return on pension plan assets is reviewed as part of the regular experience studies prepared for the Plan. The long-term rate of return as of June 30, 2020, was calculated using the average long term capital market assumptions published in the Survey of
Capital Market Assumptions 2020 Edition by Horizon Actuarial Service, LLC, yielding a median real rate of return of 4.94%. The assumed inflation is based on the intermediate inflation of 2.4% in the 2020 OASDI Trustees Report by the Chief Actuary for Social Security to produce 75-year cost projections. Combining these two results yields a nominal return of 7.34%. Best estimates of arithmetic real rates of return for each major asset class included in the target
asset allocation (78c & 78f) as of June 30, 2020, are summarized below.
Long-Term Expected
Target Asset Real Rate of Return
Asset Class Allocation Arithmetic Basis
Cash 2.00%0.11%
Domestic Equity 30.00%6.19%
International Equity 16.00%6.92%
Private Investments 14.00%10.37%
Natural Resources 4.00%3.43%
Real Estate 9.00%5.74%
Core Fixed Income 20.00%1.57%
Non-Core Fixed Income 5.00%3.97%
Total 100.00% Discount Rate The discount rate used to measure the TPL was 7.34%. The projection of cash flows used to determine the discount rate assumed that contributions from participating plan members, employers, and non-employer contributing entities would be made based on the Board’s funding policy, which established the
contractually required rates under the Montana Code Annotated. The state contributed 32.61% of the salaries paid by employers. Based on those assumptions, the Plan’s fiduciary net position was projected to be adequate to make all the projected future benefit payments of current plan members through the year 2133. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the
TPL. A municipal bond rate was not incorporated in the discount rate. DRAFT382
87 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED)
Firefighters' Unified Retirement System (FURS) (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the employer’s sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a significant change the liability. The NPL was calculated using the discount rate of 7.34%, as well as what the NPL would be if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate.
As of 1.0% Decrease Current 1.0% Increase
Measurement Date (6.34%)Discount Rate (8.34%)
City of Bozeman's Net Pension
Liability $5,875,759 $3,632,985 $1,180,903 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions GASB Statement 68 allows a measurement date of up to 12 months before the employer’s fiscal year-end can be utilized to determine the Plan’s TPL. The basis for the TPL as of June 30, 2020, was determined by taking the results of the June 30, 2019, actuarial valuation and applying standard roll forward procedures. The roll forward procedure uses a calculation that adds the annual normal cost (also called the service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. The roll forward procedure will include the effects of any assumption changes and legislative changes. The update procedures are in conformity with Actuarial Standards of Practice issued by the Actuarial Standards Board. The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate shares of the employer’s and the State of Montana’s NPL for June 30, 2021 and 2020 (reporting dates), are displayed below. The employer’s proportionate share equals the ratio of the employer’s contributions to the sum of all employer and non-employer contributions during the measurement period. Due to the existence of the special
funding situation, the state is required to report a proportionate share of a local government’s collective NPL that is associated with the non-state employer. The state’s proportionate share for a particular employer equals the ratio of the contributions for the particular employer to the total state contributions paid. The employer recorded a liability of $3,632,985 and the employer’s proportionate share was 2.3217 percent.
As of Reporting Date NPL as of 6/30/21 NPL as of 6/30/20
Percent of Collective
NPL as of 6/30/21
Percent of Collective
NPL as of 6/30/20
Change in Percent of
Collective NPL
City Proportionate Share $ 3,632,985 $ 2,518,508 2.3217%2.1955%0.1262%
State of Montana Proportionate
Share associated with Employer 8,189,975 6,091,025 5.2340%5.3098%-0.0758%Total 11,822,960$ 8,609,533$ 7.5557%7.5053%0.0504% DRAFT383
88 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Firefighters' Unified Retirement System (FURS) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Changes in Actuarial Assumptions and Methods:
The following changes in assumptions or other inputs were made that affected the measurement of the TPL:
1. The discount rate was lowered from 7.65% to 7.34% 2. The investment rate of return was lowered from 7.65% to 7.34% 3. The inflation rate was reduced from 2.75% to 2.40% Changes in Benefit Terms: There have been no changes in benefit terms since the previous measurement date.
Changes in Proportionate Share: There were no changes between the measurement date of the collective NPL and the employer’s reporting date that are expected to have a significant effect on the employer’s proportionate share of the collective NPL.
Pension Expense At June 30, 2021 reporting date, the employer recognized its proportionate share of the FURS’ pension expense of $704,126. The employer also recognized
grant revenue of $1,594,757 for the support provided by the State of Montana for the proportionate share of the pension expense that is associated with the employer.
As of reporting date Pension Expense as of 6/30/21 Pension Expense as of 6/30/20
City’s Proportionate Share 704,126$ 495,696$
Employer Grant Revenue - State of Montana Proportionate Share for
Employer 1,594,757 1,268,918
Total 2,298,883$ 1,764,614$
DRAFT384
89 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Firefighters' Unified Retirement System (FURS) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Recognition of Deferred Inflows and Outflows
At June 30, 2021, the employer reported its proportionate share of the Plan’s deferred outflows of resources and deferred inflows of resources from the following sources:
Deferred Outflows of Resources Deferred Inflows of Resources
Expected v. actual experience 247,267$ 18,911$
Projected investment earnings v. actual investment earnings 466,405$ -$
Changes in assumptions 645,375$ -$
Changes in proportion and differences between employer
contributions and proportionate share of contributions -$ 14,649$
Employer contributions subsequent to the measurement date 597,763$ -$
Total 1,956,810$ 33,560$ Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in Pension Expense as follows:
For the Reporting Year ended
June 30:
Recognition of deferred outflows and deferred
inflows in future years as an increase or
(decrease) to pension expense
2022 265,442$
2023 343,919$
2024 296,413$
2025 191,710$
Thereafter 228,004$
Pension Plan Fiduciary Net Position: The stand-alone financial statements of the Montana Public Employees Retirement Board (PERB) Comprehensive Annual Financial Report (CAFR) and the
GASB 68 Report disclose the Plan’s fiduciary net position. The reports are available from the PERB at PO Box 200131, Helena, MT 59620-0131, (406) 444-3154 or both are available on the MPERA website at http://mpera.mt.gov/index.shtml. Municipal Police Officers’ Retirement System (MPORS) In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non-employer contributing entity are required to recognize and report certain amounts associated with participation in the Municipal Police Officers’ Retirement System (the Plan). This includes the
proportionate share of the collective Net Pension Liability; Pension Expense; and Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers are provided guidance in GASB Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate for reporting. Whether provided through cost-sharing, single-employer, or agent plans. This report provides information for employers who are using a June 30, 2020 measurement date for the 2021 reporting. DRAFT385
90 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Firefighters' Unified Retirement System (FURS) (Continued)
Summary of Significant Accounting Policies MPERA prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA for the purposes of determining the Net Pension Liability (NPL); Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions; Pension Expense; the Fiduciary Net Position; and, Additions to or Deductions from Fiduciary Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are recognized in the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are recognized in the period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles generally accepted by the United States of America. MPERA applied all applicable pronouncements of the Governmental Accounting Standards Board (GASB).
General Information about the Pension Plan
Municipal Police Officers’ Retirement System (MPORS)
Plan Description
The Municipal Police Officers’ Retirement System (MPORS), administered by the Montana Public Employee Retirement Administration (MPERA), is a multiple-employer, cost-sharing defined benefit plan established in 1974 and governed by Title 19, chapters 2 & 9, Montana Code Annotated (MCA). This plan provides retirement benefits to all municipal police officers employed by first- and second-class cities and other cities that adopt the plan. Benefits are
established by state law and can only be amended by the Legislature. Deferred Retirement Option Plan (DROP): Beginning July 2002, eligible members of MPORS can participate in the DROP by filing a one-time irrevocable election with the Board. The DROP is governed by Title 19, Chapter 9, Part 12, MCA. A member must have completed at least twenty years of membership service to be eligible. They may elect to participate in the DROP for a minimum of one month and a maximum of 60 months and may only participate in the DROP once. A participant remains a member of the MPORS, but will not receive membership service or service credit in the system for the duration of the member’s DROP period. During participation in the DROP, all mandatory contributions continue to the retirement system. A monthly benefit is calculated based on salary and years of service to date as of the beginning of the DROP period. The monthly benefit is paid into the member’s DROP account until the end of the DROP period. At the end of the DROP period, the participant may receive the balance of the DROP account in a lump-sum payment or in a direct rollover to another eligible plan, as allowed by the IRS. If the participant continues employment after the DROP period ends, they will again accrue membership service and service credit. The DROP account cannot be distributed until employment is formally terminated.
DRAFT386
91 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Municipal Police Officers’ Retirement System (MPORS) (Continued)
Benefits Provided MPORS provides retirement, disability, and death benefits to plan members and their beneficiaries. Benefits are based on eligibility, years of service, and
compensation. Member rights are vested after five years of service.
Service Retirement and Monthly Benefit Formula:
• 20 years of membership service, regardless of age
• Age 50 with 5 years of membership service (Early Retirement)
• 2.5% of FAC x years of service credit
Second Retirement: Re-calculated using specific criteria for members who return to covered MPORS employment prior to July 1, 2017:
• Less than 20 years of membership service, upon re-employment, repay benefits and subsequent retirement is based on total MPORS
service.
• More than 20 years of membership service, upon re-employment, receives initial benefit and a new retirement benefit based on
additional service credit and FAC after re-employment.
Applies to retirement system members re-employed in a MPORS position on or after July 1, 2017:
1) If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before terminating again,
the member: a. Is not awarded service credit for the period of reemployment; b. Is refunded the accumulated contributions associated with the period of reemployment;
Starting the first month following termination of service, receives the same retirement benefit previously paid to the member; and c. Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement.
2) If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before terminating again, the member: a. Is awarded service credit for the period of reemployment; b. Starting the first month following termination of service, receives: i. The same retirement benefit previously paid to the member, and ii. A second retirement benefit for the period of reemployment calculated based on the laws in effect as of the member’s rehire date; and DRAFT387
92 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Municipal Police Officers’ Retirement System (MPORS) (Continued)
Second Retirement (Continued): c. Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA: i. On the initial retirement benefit in January immediately following second retirement, and ii. On the second retirement benefit starting in January after receiving that benefit for at least 12 months.
3) A member who returns to covered service is not eligible for a disability benefit.
Member’s Final Average Compensation (FAC) Hired prior to July 1, 1977 - average monthly compensation of final year of service; Hired on or after July 1, 1977 – final average compensation (FAC) for last consecutive 36 months. Compensation Cap
Hired on or after July 1, 2013 – 110% annual cap on compensation considered as part of a member’s highest FAC.
Guaranteed Annual Benefit Adjustment (GABA) Hired on or after July 1, 1997, or those electing GABA, and has been retired for at least 12 months, a GABA will be made each year in January
equal to 3.0%.
Minimum Benefit Adjustment (non-GABA) The minimum benefit provided may not be less than 50% of the compensation paid to a newly confirmed police officer of the employer that last
employed the member as a police officer in the current fiscal year. Contributions The State Legislature has the authority to establish and amend contribution rates to the plan. Member and employer contribution rates are specified by Montana Statute and are a percentage of the member’s compensation. Contributions are deducted from each member’s salary and remitted by participating employers.
Special Funding MCA 19-9-702 requires the State of Montana to contribute a percentage of total compensation directly to the Plan annually after the end of each fiscal year. Member, Employer and State contribution rates are shown in the table below.
Fiscal Year Hired <7/1/75 Hired >6/30/75 Hired >6/30/79
Hired >6/30/97
GABA Employer State
2000-2021 5.800% 7.000% 8.500% 9.000% 14.410% 29.370%
1998-1999 7.800% 9.000% 10.500% 11.000% 14.410% 29.370%
1997 7.800% 9.000% 10.500%14.360% 29.370%
Member
DRAFT388
93 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Municipal Police Officers’ Retirement System (MPORS) (Continued)
Actuarial Assumptions The total pension liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions.
• Investment Return (net of admin expense) 7.34%
• Admin Expense as % of Payroll 0.15%
• General Wage Growth* 3.50% *includes Inflation at 2.40%
• Merit Increases 0% to 6.60%
• Postretirement Benefit Increases i. Guaranteed Annual Benefit Adjustment (GABA) each January
Hired on or after July 1, 1997, or those electing GABA, and has been retired for at least 12 months, a GABA will be made each
year in January equal to 3%.
ii. Minimum Benefit Adjustment (non-GABA)
Benefit for a retired member or member’s survivor and member did not elect GABA - The minimum benefit provided may not be less than 50% of the compensation paid to a newly confirmed police officer of the employer that last employed the member as a police officer in the current fiscal year.
• Mortality assumptions among contributing members, service retired members and beneficiaries were based on RP-2000 Combined Employee and Annuitant Mortality Tables projected to 2020 using scale BB, set back one year for males.
• Mortality assumptions among Disabled Retirees were based on RP-2000 Combined Mortality Tables with no projects. The most recent experience study, performed for the period covering fiscal years 2011 through 2016, is outlined in a report dated May 5, 2017 and can be
located on the MPERA website. The long-term expected return on pension plan assets is reviewed as part of the regular experience studies prepared for the Plan. The long-term rate of return as of June 30, 2020, was calculated using the average long-term capital market assumptions published in the Survey of Capital Market Assumptions 2020 Edition by Horizon Actuarial Service, LLC, yielding a median real rate of return of 4.94%. The assumed inflation is based
on the intermediate inflation of 2.4% in the 2020 OASDI Trustees Report by the Chief Actuary for Social Security to produce 75-year cost projections. Combining these two results yields a nominal return of 7.34%. Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation (78c & 78f) as of June 30, 2020, are summarized on the following page.
DRAFT389
94 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED)
Municipal Police Officers' Retirement System (MPORS) (Continued)
Actuarial Assumptions (Continued)
Long-Term Expected
Target Asset Real Rate of Return
Asset Class Allocation Arithmetic Basis
Cash 2.00%0.11%
Domestic Equity 30.00%6.19%
International Equity 16.00%6.92%
Private Investments 14.00%10.37%
Natural Resources 4.00%3.43%
Real Estate 9.00%5.74%
Core Fixed Income 20.00%1.57%
Non-Core Fixed Income 5.00%3.97%
Total 100.00%
Discount Rate The discount rate used to measure the TPL was 7.34%. The projection of cash flows used to determine the discount rate assumed that contributions from participating plan members, employers, and non-employer contributing entities would be made based on the Board’s funding policy, which established the contractually required rates under the Montana Code Annotated. The state contributed 29.37% of the salaries paid by employers. Based on those assumptions, the Plan’s fiduciary net position was projected to be adequate to make all the projected future benefit payments of current plan members through the year 2134. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in the discount rate. Sensitivity of the proportionate share of the net pension liability to changes in the discount rate The following presents the employer’s sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a significant change in the liability. The NPL was calculated using the discount rate of 7.34%, as well as what the NPL would be if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate.
As of 1.0% Decrease Current 1.0% Increase
Measurement Date (6.34%)Discount Rate (8.34%)
City of Bozeman's Net Pension
Liability $10,422,645 $7,311,248 $4,826,065 DRAFT390
95 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Municipal Police Officers' Retirement System (MPORS) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions GASB Statement 68 allows a measurement date of up to 12 months before the employer’s fiscal year-end can be utilized to determine the Plan’s TPL. The basis for the TPL as of June 30, 2020, was determined by taking the results of the June 30, 2019, actuarial valuation and applying standard roll forward procedures. The roll forward procedure uses a calculation that adds the annual normal cost (also called the service cost), subtracts the actual benefit payments and refunds for the plan year, and then applies the expected investment rate of return for the year. The roll forward procedure will include the effects of any assumption changes and legislative changes. The update procedures are in conformity with Actuarial Standards of Practice issued by the Actuarial Standards Board. The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate shares of the employer’s and the State of Montana’s NPL for June 30, 2021 and 2020 (reporting dates), are displayed below. The employer’s proportionate share equals the ratio of the
employer’s contributions to the sum of all employer and non-employer contributions during the measurement period. Due to the existence of the special funding situation, the state is required to report a proportionate share of a local government’s collective NPL that is associated with the non-state employer. The state’s proportionate share for a particular employer equals the ratio of the contributions for the particular employer to the total state contributions paid.
The employer recorded a liability of $7,311,248 and the employer’s proportionate share was 2.9892 percent.
As of Reporting Date NPL as of 6/30/2021 NPL as of 6/30/2020
Percent of
Collective NPL as
of 6/30/2021
Percent of
Collective NPL as
of 6/30/2020
Change in Percent
of Collective NPL
City Proportionate Share 7,311,248$ 5,712,381$ 2.9892%2.8699%0.1193%
State of Montana Proportionate
Share associated with Employer 14,746,046$ 11,632,402$ 6.0290%5.8441%0.1849%
Total 22,057,294$ 17,344,783$ 9.0182%8.7140%0.3042%
Changes in Actuarial Assumptions and Methods The following changes in assumptions or other inputs were made that affected the measurement of the TPL:
1. The discount rate was lowered from 7.65% to 7.34% 2. The investment rate of return was lowered from 7.65% to 7.34% 3. The inflation rate was reduced from 2.75% to 2.40%
Changes in Benefit Terms There have been no changes in benefit terms since the previous measurement date.
DRAFT391
96 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Municipal Police Officers' Retirement System (MPORS) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Changes in Proportionate Share There were no changes between the measurement date of the collective NPL and the employer’s reporting date that are expected to have a significant effect on the employer’s proportionate share of the collective NPL.
Pension Expense At June 30, 2021 reporting date, the employer recognized its proportionate share of the Plan’s pension expense of $1,271,558. The employer also recognized grant revenue of $2,606,712 for the support provided by the State of Montana for the proportionate share of the pension expense that is associated with the employer.
As of reporting date Pension Expense as of
6/30/21
Pension Expense as of
6/30/20
City's Proportionate Share 1,271,558$ 854,376$
State of Montana Proportionate Share associated with the City 2,606,712 1,393,465
Total 3,878,270$ 2,247,841$ Recognition of Deferred Inflows and Outflows At June 30, 2021, the employer reported its proportionate share of MPORS' deferred outflows of resources and deferred inflows of resources related to MPORS
from the following sources:
As of reporting date
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Expected v. actual experience 350,445$ 23,079$
Projected investment earnings v. actual investment earnings 568,571 -
Changes in assumptions 621,310 -
Changes in proportion and differences between employer
contributions and proportionate share of contributions 57,924 -
Employer contributions subsequent to the measurement date 762,283 -
Total 2,360,533$ 23,079$ DRAFT392
97 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 14. EMPLOYEE BENEFIT PLANS (CONTINUED) Municipal Police Officers' Retirement System (MPORS) (Continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued)
Recognition of Deferred Inflows and Outflows (Continued)
Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in Pension Expense as follows:
For the Reporting Year ended
June 30:
Recognition of deferred outflows
and deferred inflows in future
years as an increase or
(decrease) to pension expense
2022 442,636$
2023 562,472$
2024 438,691$
2025 131,373$
Thereafter -$
Pension Plan Fiduciary Net Position The stand-alone financial statements (76d) of the Montana Public Employees Retirement Board (PERB) Comprehensive Annual Financial Report (CAFR) and the GASB 68 Report disclose the Plan’s fiduciary net position. The reports are available from the PERB at PO Box 200131, Helena, MT 59620-0131, (406) 444-3154 or both are available on the MPERA website at http://mpera.mt.gov/index.shtml. NOTE 15. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS In addition to providing a deferred compensation plan, the City provides other post-employment benefits (OPEB) allowing its retired employees to continue their medical, dental, and vision care coverage through the City's group health plan until death (Retiree Health Plan). The single-employer defined benefit post-employment health care plan allows retirees to participate, as a group, at a rate that does not cover all of the related costs. This results in the reporting of an implied rate subsidy in the financial statements and footnotes. The City's contract with Allegiance Benefits details the plan eligibility. MMIA is the administrator of the plan, which covers both active and retired members. In accordance with MCA 2-18-704, the City’s retirees may continue coverage for themselves and their covered eligible dependents, if they are eligible for public employees' retirement by virtue of their employment with the City of Bozeman.
The City's current labor contracts do not include any obligations for payments to retirees. The City also allows terminated employees to continue their health care coverage for 18 months past the date of termination as required by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).
OPEB is recorded on an accrual basis for all enterprise and internal service funds. OPEB is recorded on a modified accrual basis for the governmental funds. Plan contributions are recognized in the period in which the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. DRAFT393
98 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 15. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
Funding Policy The plan is unfunded by the City and plan members receiving benefits contribute 100 percent of their cost of the benefits on a pay-as-you-go basis. The City plan’s administratively established retiree medical, dental, and vision premiums vary between $41 and $2,249 per month depending on the medical plan selected, family coverage, and Medicare eligibility. The plan provides different coinsurance amounts depending on whether members use preferred, non-preferred, or other hospitals. Depending on the plan, for a single individual, after an annual deductible of $500 to $2,800 for non-Medicare-eligible retirees, the plan reimburses 60% to 80% of allowed charges after deductible and up to the out-of-pocket maximum, and then 100%. Depending on the plan, for a family, after an annual deductible of $1,000 to $5,600 for non-Medicare-eligible retirees, the plan reimburses 60% to 80% of allowed charges after deductible and up to the out-of-pocket maximum, and then 100%. Employees Covered by Benefit Terms At June 30, 2021, the following employees were covered by the benefit terms:
Category Count
Active employees 462 Inactive employees or beneficiaries currently receiving benefit payments 32
Total 494 Contributions
Benefit contributions are paid by the City as they come due. Total OPEB Liability (TOL) The City’s total OPEB liability of $4,335,188 was measured as of June 30, 2020, and was determined by an actuarial valuation as of that date. Changes in the TOL for the year ended June 30, 2021 are as follows:
Service cost 218,391$
Interest on OPEB obligation 105,950
Difference between expected & actual expense (8,615)
Benefits paid (119,793)
Changes in assumptions 1,270,632
Changes in OPEB obligation 1,466,565
OPEB obligation - beginning of year 2,868,623
OPEB obligation - end of year 4,335,188$ DRAFT394
99 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 15. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
Total OPEB Liability (TOL) (Continued) There is sensitivity of the TOL to changes in the discount rate. The TOL of the City as well as what the City’s TOL would be if it were calculated using a discount rate that is one percentage point lower (1.21%) or one percentage point higher (3.21%) follows:
1% Decrease Discount Rate 1% Increase
(1.21%) (2.21%) (3.21%)
Total OPEB liability 4,858,376$ 4,335,188$ 3,873,361$ There is also sensitivity of the TOL to changes in the healthcare cost rates. The TOL of the City as well as what the City’s TOL would be if it were recalculated using healthcare cost trend rates that are one percentage point lower (6.5%) or one percentage point higher (8.5%) than the current healthcare cost trend rate follows:
1% Decrease Discount Rate 1% Increase
(6.5%) (7.5%) (8.5%)
Total OPEB liability 3,757,755$ 4,335,188$ 5,032,260$ For the year ended June 30, 2021, the City recognized an OPEB expense of $452,200. At June 30 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes of assumptions 1,249,705$ (726,411)$
Total 1,249,705$ (726,411)$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
2022 127,859$
2023 127,859
2024 127,859
2025 127,861
2026 167,339
Thereafter (155,483)
Total 523,294$
Year Ended June 30:
DRAFT395
100 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 15. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
The June 30, 2021, year-end OPEB cost is reported in the City’s funds as follows:
Functions/Programs Expenses
PRIMARY GOVERNMENT
Governmental activities:
General government 262,009$
Public safety 447,457
Public service 71,797
Public welfare 313,050
Total governmental activities 1,094,313
Business-type activities:
Water 88,641
Waste water 78,092
Solid waste 69,415
Parking 15,312
Storm water 20,416
Total business-type activities 271,876
Total primary government 1,366,189$ Actuarial Methods and Assumptions The City’s actuarial valuation is completed on a biennial frequency, provided no significant events have occurred warranting new measurement. The City
completed the valuation for fiscal year 2020, with an estimate provided for fiscal year 2021. For fiscal year 2021, an estimated valuation was derived based on the 2020 actual costs and participants. As a result of this biennial valuation, we have marked the fields as “n/a” where actual financial data was not used to generate the estimate. As of July 1, 2020, the most recent valuation date, the City’s total OPEB liability was determined using the following actuarial
assumptions: The following key assumptions were chosen by the City:
1. Discount Rate: 2.21 % for determining fiscal 2021 disclosure and estimated fiscal 2021 expense; 3.50% for determining fiscal 2020 liability and fiscal 2020 expense.
2. Inflation Rate: 2.5% long-term.
3. Expected Real Rate of Return on Assets: N/A. DRAFT396
101 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 15. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
Actuarial Methods and Assumptions (Continued)
4. Health Care Claim and Contribution Trend Rates: Updated from 7.5% initial in fiscal 2021 and 4.5% ultimate in fiscal 2041.
5. Average Salary Increase: 1.50%
6. Retirement Rates: Based on actuarial valuation for statewide retirement systems as of June 30, 2020
7. Retiree Participation Rate: 35%
8. Lapse Rate: 15% per year
9. Marriage Assumption: For future retirees, 60% of participants are assumed to be married, with husbands 3 years older than wives The discount rate was based on a yield or index rate for a 20-year, tax-exempt, general obligation municipal bond with an average rating of AA/Aa or higher. Rates were taken from the Bond Buyer 20-Bond GO index as of the measurement date.
Mortality rates were based on the Pub-2010 Public Retirement Plan Public Safety mortality table projected generationally with Scale MP-2020 for MPORS and FURS (Police and Fire, respectively_ and Pub-2010 Public Retirement Plans General mortality table projected generationally with Scale MP-2020 for PERS (all other employees).
The medical trend rate table was reset in fiscal 2021.
Projections of the sharing of benefit-related costs for financial reporting purposes are based on an established pattern of practice. This report constitutes the only analysis and presentation of the City’s post-employment benefit plan. There is no separate, audited GAAP-basis post-employment benefit plan report. NOTE 16. JOINT VENTURE AGREEMENTS Joint ventures are legal entities or other organizations that result in a contractual arrangement and that are owned, operated, or governed by two or more participants. Each participant retains both an ongoing financial interest and an ongoing financial responsibility. As of June 30, 2021, the City has entered into joint venture contractual arrangements, as described on the following page. 911 Communication Center The City and Gallatin County, Montana (the County) have entered into an inter-local agreement for the purposes of establishment of the operation and financing
of a 911 communication services division (the Division) for dispatch and records services, to define the relationship of the Administrative Board with the City and County, and to establish the line of authority for personnel furnishing the communication services to the City and County and others who may contract for the services. DRAFT397
102 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 16. JOINT VENTURE AGREEMENTS (CONTINUED) City-County Drug Forfeitures The City and County have entered into an inter-local agreement for the purposes of establishment of a joint drug forfeiture account funded from drug related forfeitures, seizures, and prosecutions of City and County law enforcement cases and to establish an equitable means of distributing those funds to continue drug interdiction activities. The goal of the agreement is to make the City and County Drug Enforcement operations less reliant on the general and public safety fund monies of the City and County. The original term of the agreement was for a period of one year, beginning September 20, 2004 and automatically renews for a period of one year until terminated by either party with written notice of intent to terminate. Financial information regarding the joint drug forfeiture account can be obtained by contacting the City of Bozeman Department of Finance, 411 East Main Street, Bozeman, MT 59715. The County and City have entered into various other joint venture contractual arrangements, memorandums of understanding and inter-local agreements to support the following programs and/or operations: Victim Witness, Hazardous Materials, Solid Waste (Disposal and Convenient Site), Fire Warden/Chief, Evidence Technician, Library Services, Board of Health, and rental of the Law and Justice Center. The financial interests are not material.
Montana Municipal Interlocal Authority The City and Montana Municipal Interlocal Authority (MMIA) have entered into a 20-year agreement in December 2012 to share up to $1 million in profits
from the sale of city-owned property known as the Mandeville Farm. The agreement came about as part of a settlement on legal claims from the City of Bozeman vs. MMIA litigation. A “profit” shall occur only when the City has recovered its total investment in the property, which includes the original purchase price together with all “costs of development” as defined in the settlement agreement.
NOTE 17. RESTRICTED NET POSITION At June 30, 2021, the balances of restricted net position for business-type activities are as follows:
Waste Water Nonmajor
Water Fund Fund Enterprise Total
Restricted by revenue bond covenants:
For bond reserve 898,929$ 2,168,222$ 58,288$ 3,125,439$
Restricted by ordinance:
Cash in lieu of parking - - 130,316 130,316
Cash in lieu of infrastructure 516,199 - - 516,199
Drought reserve 362,581 - - 362,581
Impact fees 7,472,892 3,232,169 - 10,705,061
9,250,601$ 5,400,391$ 188,604$ 14,839,596$
Business-Type Activities
DRAFT398
103 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 18. INTERFUND TRANSFERS AND ASSETS/LIABILITIES
A summary of interfund transfers reported in the fund financial statements for the year ended June 30, 2021, follows:
American NonmajorGeneral Fund Rescue Plan Act Governmental Water Total
General Fund -$ 388,469$ 2,340,178$ -$ 2,728,647$ American Rescue Plan A - - - - - SID Debt Service - - - - - Capital projects 103,009 - 1,003,511 - 1,106,520 Nonmajor Governmental 44,000 198,661 1,898,572 - 2,141,233 Water Enterprise - - - 600,000 600,000 Waste Water Enterprise - - - - - Nonmajor Enterprise 410,000 124,921 - - 534,921 Total 557,009$ 712,051$ 5,242,261$ 600,000$ 7,111,321$
Governmental FundsTransfers From Transfers ToProprietary
DRAFT399
104 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 18. INTERFUND TRANSFERS AND ASSETS/LIABILITIES (CONTINUED)
Transfers are used to (1) move revenues from the fund that statute or budgets requires to collect them to the fund that statute or budgets require to expend them, (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and (3) to transfer non-restricted interest income from the permanent fund to the general fund. A summary of advances and due from/to other funds at June 30, 2021, is as follows:
Advances to Advances from
other City funds other City funds
Major Fund:
SID Sinking Debt Service -$ 1,045,398$
Non-major Governmental Fund:
SID Revolving Debt Service 1,045,398 - 1,045,398$ 1,045,398$
Due from Due to
other City funds other City funds
Major Funds:
General fund 990,414$ -$
Non-major Governmental Funds:
TIFD South Bozeman Technology - 7,626
G.O. Bonds Debt Service Fund - 348,505
TIF Bonds 1,499
Internal Service Fund:
Vehicle Maintenance - 591,578
Medical Health Insurance - 41,206 990,414$ 990,414$ Interfund balances reported as due from or due to other funds are usually a result of transfers for reporting purposes to cover negative cash balances within a fund. These transfers are reversed as cash becomes available in a fund where cash previously had been in a deficit. DRAFT400
105 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 19. RISK MANAGEMENT
The City faces a considerable number of risks of loss, including a) damage to and loss of property and contents, b) employee torts, c) professional liability (i.e. errors and omissions), d) environmental damage, e) workers' compensation (i.e. employee injuries), and f) medical insurance cost of employees. A variety of methods are used to provide insurance for these risks. Commercial policies, transferring all risks of loss except for small deductible amounts, are purchased for property and content damage and professional liabilities. The City participates in two state-wide public risk pools operated by the Montana Municipal Interlocal Authority (MMIA), for workers' compensation and for tort liability. Employee medical insurance is provided through a cost-sharing multiple-employer defined benefit plan administered by MMIA. The plan offers health, dental and vision benefits and flexible spending and health savings accounts. Given the lack of coverage available, the City has no coverage for potential losses from environmental damages. Commercial Policies Coverage limits and the deductibles on the commercial policies have stayed relatively constant for the last several years. The premiums for the policies are allocated between the City's Enterprise Funds and the General Fund. Premiums are subsidized through a special purpose property tax levy, based on total
appropriations. Settled claims resulting from these risks did not exceed commercial insurance coverage during the three years ended June 30, 2021, 2020, and 2019. Public Entity Risk Pools In 1986, the City joined together with other Montana cities to form the Montana Municipal Interlocal Authority, which established a workers' compensation plan and a tort liability plan. Both public entity risk pools currently operate as common risk management and insurance programs for the member governments.
The liability limits for damages in tort action are $750,000 per claim and $1.5 million per occurrence, and $12.5 million per occurrence for any claim that is not subject to the limitations on governmental liability, as described in Montana Code Annotated Section 2-9-108 (the Statute) or any successor statute, either as matter of law, by operation of the Statute, or by a judicial determination that the Statute is inapplicable or is otherwise invalid, with $11,250 deductible per occurrence. State tort law limits the City's liability to $1.5 million. The City pays premiums for its employee injury insurance coverage, which is allocated to the employer funds based on total salaries and wages. The agreements for formation of the pools provide that they will be self-sustaining through member premiums. The tort liability plan and workers' compensation program issued debt of $4.41 million and $6.155 million, respectively, to immediately finance the necessary insurance reserves. All members signed a contingent note for a pro rata share of this liability in case operating revenues were insufficient to cover the debt service; the debt was retired in 2011. The City also owns a policy with MMIA for loss or damage to property. This is an all-risk policy, essentially all property owned by the City being insured
for 100% of replacement cost, subject to a $5,000 deductible per occurrence. MMIA reinsures their property insurance with a national municipal pool, Public Entities’ Property Insurance. NOTE 20. CONTINGENCIES
The City is involved with several lawsuits, which arise out of the normal course of operations by the City. Management of the City intends to vigorously defend each claim and believes no material losses will be incurred on such claims. DRAFT401
106 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 21. SOLID WASTE LANDFILL CLOSURE AND POST-CLOSURE CARE COSTS
The City has a municipal solid waste landfill. State and Federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after final closure. The City stopped accepting waste effective June 30, 2008. The final capping of the cells is still pending. The City has accrued a liability for $1,485,805, which is its estimate of future landfill closure and post-closure care costs as of June 30, 2021. This amount is based on a Corrective Measures Assessment completed in September 2014 by a third party engineering firm, from which a remediation plan has been adopted by the City and has been approved the Montana Department of Environmental Quality. The cost of post closure care is an estimate and is subject to changes resulting from inflation, deflation, technology, or changes in applicable laws or regulations. DRAFT402
107 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021 NOTE 21. SOLID WASTE LANDFILL CLOSURE AND POST-CLOSURE CARE COSTS (CONTINUED) The Solid Waste Fund accounts for the City’s solid waste collection, recycling, and disposal utility operation – including assets, liabilities, and post-closure costs associated with the closed Story Mill landfill. Segment information for the landfill is as follows: Condensed Statement of Net PositionRestricted cash and cash equivalents106,840$ Capital assets, net of depreciation777,398 Total assets884,238$ Current liabilities72,801$ Closure and post-closure care cost1,485,805 Total liabilities1,558,606 Restricted for debt service(674,368) Total net position(674,368) Total liabilities and net position884,238$ Condensed Statement of Revenues, Expenses and Changes in Net PositionOperating revenues and expenses:Operating revenues -$ Operating expensesDepreciation 30,709 Change in post closure cost estimate (71,349) Other operating - Total operating expenses (40,640) Operating profit 40,640 Non-operating revenues (expenses):Interest income 299 Transfers 310,000 Total non-operating revenues 310,299 Change in net position 350,939 Net position, beginning of year (1,025,307) Net position, end of year (674,368)$ DRAFT403
108 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 22. SEGMENT INFORMATION FOR WATER ENTERPRISE FUND
The City’s Water Fund accounts for the City’s water utility operations and collection and administration of water impact fees. Segment information for the utility operations, excluding impact fees, is as follows:
Condensed Statement of Net Position
Current assets 20,895,348$
Capital assets 147,332,738
Other assets 7,571,098
Total assets 175,799,184$
Current liabilities 1,800,342$
Non-current liabilities 19,631,167
Total liabilities 21,431,509
Net investment in capital assets 128,775,153
Restricted for debt service 7,043,653
Unrestricted 18,548,869
Total net position 154,367,675
Total liabilities and net position 175,799,184$ DRAFT404
109 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 22. SEGMENT INFORMATION FOR WATER ENTERPRISE FUND (CONTINUED)
Condensed Statement of Revenues, Expenses, and Changes in Net Position
Operating revenues and expenses:
Operating revenues 11,027,544$
Operating expenses:
Depreciation 3,044,346
Other operating 6,701,803
Total operating expenses 9,746,149
Operating loss 1,281,395
Non-operating revenues (expenses)
Interest income 17,694
Interest expense (552,155)
Grant income 34,284
Gain on sale of assets 6,704
Contributions of infrastructure 2,701,180
Other income 75,012
Transfers 600,000
Total non-operating revenues 2,882,719
Change in net position 4,164,114
Net position, beginning of year 150,203,561
Net position, end of year 154,367,675$
Condensed Statement of Cash Flows
Net cash provided by operating activities 4,543,231$
Net cash flows from capital and related financing activities (2,391,270)
Net cash flows from noncapital and financing activities 634,284
Net cash flows from investing activities 17,694
Net change in cash flows 2,803,939
Beginning cash and equivalents 24,430,155
Ending cash and equivalents 27,234,094$ DRAFT405
110 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 23. IMPACT FEES
On January 22, 1996, the City Commission adopted fire, water, waste water and street impact fees in Ordinance number 1414. The impact fees were first effective on March 23, 1996. Impact fees were set at a percentage of the cost of the impact, as follows:
Original, as of Change as of Change as of Change as of Change as of Change as ofMarch 23, 1996 May 10, 1998 January 15, 1999 July 15, 1999 January 1, 2013 March 30, 2013
Fire impact fee 90% 90%90%90%100%100%
Water impact fee 35% 50%90%90%100%100%
Waste water impact fee 35% 50%90%90%100%100%
Street impact fee 10% 10%75%90%90%100% An applicant may obtain an Impact Fee Credit by dedication of non-site-related land or construction of non-site-related improvements. Credits must be made before the beginning of improvement construction, must comply with the City’s Capital Improvements Program, and must be approved by the City Commission. Credits may be used only for like-type impact fees. The full provisions for impact fee credits are contained in Chapter 3.24 of the Bozeman Municipal Code. For proprietary type funds, the City records a liability for the impact fee credit and capitalizes the underlying asset. For governmental-type funds, the credits are only disclosed in the footnotes. For government-wide financial reporting, the outstanding credits are reported as unearned revenue. The Water Impact Fee Fund, Street Impact Fee Fund, and Waste Water Impact Fee Fund have recorded impact fee credits amounting to $33,232, $56,343, and $129,042, respectively, as of June 30, 2021. The Fire Impact Fee Fund does not have any outstanding credits. The following impact fee revenues were collected and expensed/expended during fiscal year 2021:
Expenses,Beginning Expenditures, Balances Impact Fees Other Income and Transfers Ending Balances
Fire 3,242,512$ 594,962$ 8,860$ (32,963)$ 3,813,371$
Water 8,679,257 2,943,242 3,354 (928,948) 10,696,905
Waste water 6,525,616 1,764,435 4,004 (456,464) 7,837,591
Streets 4,725,249 6,439,227 26,785 (3,185,853) 8,005,408
Total 23,172,634$ 11,741,866$ 43,003$ (4,604,228)$ 30,353,275$
DRAFT406
111 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 24. POLLUTION REMEDIATION OBLIGATIONS Jewel v. City of Bozeman / State of Montana v. City of Bozeman This action was filed in the United States District Court for the District of Montana. The multi-count complaint reduced itself to a cost recovery action under the Federal Superfund (CERCLA) and State Superfund (CECRA). On July 8, 1999, the City, Jewel Food Stores, Inc. and the other parties reached a final settlement agreement in this action. The settlement, in part, required Jewel Food Stores, Inc. to pay the City of Bozeman $1,200,000, the City and Jewel to extend alternative water supply to businesses and residents in the North 19th Avenue area of the City; and Jewel and the City to share specified remediation costs on an equal basis (50% each) up to a cumulative amount of $4,000,000, and for eligible costs in excess of that amount, to be shared 70% by Jewel and 30% by the City. The City is reimbursed by insurers for 23% of the City’s expenditures for these purposes. The Montana Department of Environmental Quality (MDEQ) issued the Record of Decision (ROD) for the Bozeman Solvent Site (BSS) in August 2011. The Administrative Order of Consent (AOC) was finalized in January 2012. The ROD and AOC specifically delineate the remediation to be completed for the BSS. The AOC serves as the legal mechanism for the implementation of the selected remedies identified in the ROD. Though remediation is currently
underway and may be completed relatively quickly, monitoring of the site will continue for a period of up to 30 years. Tasman Geosciences, Inc. serves as the contractor for the potentially liable parties (the City of Bozeman and CVS Pharmacy, Inc.). Based on the selected remedies identified in the ROD, Tasman has completed a long-term cost projection for the project in February 2016. The long-term cost projection was reviewed in September 2017 and, at that time,
it was determined it was still an accurate projection. This cost projection includes all remediation and monitoring cost, as well as, the MDEQ cost recovery associated with the BSS. The long-term cost projection for the City is $2,089,997 in remediation costs. Reduced by its insurer’s reimbursement, the amount is $1,175,032. This liability is recorded in the Waste Water Fund, is an estimate, and is subject to changes resulting from inflation, deflation, technology, or
changes in applicable laws or regulations. CMC Asbestos Bozeman CECRA Facility In 2001, the City purchased property located within the CMC Asbestos Bozeman Facility (the “Facility”), a former asbestos ore storage and processing, recycling/salvage yard. In 2002, contractors for the City, under the Montana Voluntary Cleanup and Redevelopment Act (VCRA), submitted a Voluntary Cleanup Plan (VCP), which was approved by the Department of Environmental Quality (DEQ). Remediation work on City-owned property was completed in October 2003. On December 21, 2006, the City agreed to complete remedial actions at the remainder of the Facility, which included adjacent, private properties. The City submitted an Addendum to its original VCP, and cleanup work under the approved Addendum was completed in June 2009. On October 20, 2010, the City received notice from the DEQ stating that no further action is required at the facility and that the DEQ proposes removing the Facility from the CECRA priority list. Pursuant to an August 2007 Stipulated Agreement between the City and all other involved parties, additional cleanup
after issuance of the DEQ’s closure letter may be required by DEQ based upon property use changes, modification of structures, or other factors. The City has an ongoing claim against the State orphan share for the orphan share funds’ proportional share of these post-closure clean-up costs. In addition, all other parties are still liable for their proportional share of the clean-up. The result is that should additional work be required at the Facility, the City will only be liable for 1% of the total post-closure clean-up costs.
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112 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 25. NET POSITION COMPOSITION
The table presented below displays the City’s fund balances by major purpose as displayed on page 31 of the governmental funds balance sheet.
American Nonmajor Total
General Rescue Plan SID Construction Governmental Governmental
Fund Act Debt Service Capital Projects Funds Funds
Nonspendable
Prepaids -$ -$ -$ -$ 255,000$ 255,000$
Cemetery perpetual care - - - - 1,629,479 1,629,479
Total nonspendable - - - - 1,884,479 1,884,479
Restricted
General government-Planning - - - - 1,316,451 1,316,451
General government-Health Insurance - - - - 1,041,753 1,041,753
General government-other - - - - 105 105
Public safety - Building Inspection - - - - 1,803,339 1,803,339
Public safety-Fire Impact - - - - 3,813,371 3,813,371
Public safety-Victim Witness - - - - 426,640 426,640
Public safety-other - - - - 8,005,408 8,005,408
Public service - - - - 4,153,438 4,153,438
Public service - Gas Tax - - - - 1,533,621 1,533,621
Public service - Community Transportation - - - - - -
Public service - Lighting Districts - - - - 427,013 427,013
Public welfare - Tax Increment Districts - - - - 71,519 71,519
Public welfare - Econ Develop Loan Fund - - - - 788,150 788,150
Public welfare - Tree Maint. District - - - - 632,595 632,595
Public welfare - other - - - - 9,295,368 9,295,368
Capital projects - - - 23,048,892 - 23,048,892
Debt serive - TIF Bonds - - - - (1,499) (1,499)
Debt service - SID Sinking - - 1,804,144 - - 1,804,144
Debt service - SID Revolving Fund - - - - 3,601,325 3,601,325
Debt service - GO Bonds - - - - 57,271 57,271
Total restricted - - 1,804,144 23,048,892 36,965,868 61,818,904
DRAFT408
113 CITY OF BOZEMAN, MONTANA NOTES TO FINANCIAL STATEMENTS (CONTINUED) June 30, 2021
NOTE 25. NET POSITION COMPOSITION (CONTINUED)
American Nonmajor Total
General Rescue Plan SID Construction Governmental Governmental
Fund Act Debt Service Capital Projects Funds Funds
Committed
Public safety - - - - 556,229 556,229
Public welfare - - - - 2,698,672 2,698,672
Capital projects - - - 366,743 - 366,743
Total committed - - - 366,743 3,254,901 3,621,644
Assigned
General government 2,225,256 - - - - 2,225,256
Public welfare - - - - 96,473 96,473
Capital projects 1,481,514 - - - - 1,481,514
Budget ordinance minimum 16.67%5,476,495 - - - - 5,476,495
Total assigned 9,183,265 - - - 96,473 9,279,738
Unassigned - - - 662,773 - 662,773
Total net position 9,183,265$ -$ 1,804,144$ 24,078,408$ 42,201,721$ 77,267,538$ NOTE 26. COMMITMENTS The City entered into a contract to construct the Bozeman Public Safety Center. The contract commitment for the project is $36,984,237. For the year ended June 30, 2021, the City had incurred $16,902,063 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into various contracts for various road and streetscape projects. The contract commitments for the projects are $16,278,380. For the year ended June 30, 2021, the City had incurred $15,560,511 towards the projects. The City entered into a contract to construct the Davis Lane lift station and Norton East Ranch sewer project. The contract commitment for the project is $16,636,159. For the year ended June 30, 2021, the City had incurred $14,691,961 towards the project.
DRAFT409
C. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN
MANAGEMENT DISCUSSION AND ANALYSIS DRAFT410
114 CITY OF BOZEMAN, MONTANA SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS Year Ended June 30, 2021
GASB Statement No. 75 was implemented beginning in fiscal year 2018. This Statement requires supplementary information for 10-year schedules containing service cost, changes of benefit terms, if any, differences between expected and actual experience, changes of actuarial assumptions or other inputs, and benefit
payments, as applicable to the Local Government’s OPEB plan and method of calculating OPEB liability. Assets are not accumulated in a trust that meets the criteria in GASB Statement No. 75, paragrpah 4 to pay related benefits. The total OPEB liability and ratio
of OPEB liability as a percentage of covered-employee payroll as of June 30, 2021 is determined as follows:
Total OPEB Liability 2021 2020 2019 2018
Service cost 218,391$ 224,433$ 180,183$ 256,948$
Interest 105,950 105,809 88,126 81,562 Assumption changes (8,615) 86,881 225,374 (653,711)
Difference between expected and actual experience (119,793) - (502,125) 431,737
Benefit payments 1,270,632 (116,330) (118,184) (431,737)
Net change in total OPEB liability 1,466,565 300,793 (126,626) (315,201)
Total OPEB liability - beginning of year 2,868,623 2,567,830 2,694,455 3,009,656
Total OPEB liability - ending of year 4,335,188$ 2,868,623$ 2,567,829$ 2,694,455$
Covered-employee payroll 24,490,157$ 24,490,157$ 23,503,572$ 45,345,305$ Total OPEB liability as a percentage of
covered-employee payroll 17.70% 11.71% 10.93%5.94%
* Schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Assumption changes. Changes of assumptions reflect the effects of changes in the discount rate used each period. The following are the discount rates used for each period presented:
6/30/2021 2.21%
6/30/2020 3.50%
6/30/2019 3.87%
6/30/2018 3.13%
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115 CITY OF BOZEMAN, MONTANA SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY AND SCHEDULE OF CONTRIBUTIONS For the Last Ten Fiscal Years*
Schedule of Proportionate Share of the Net Pension Liability:
As of Reporting Date 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (percentage)85.2225% 0.8620% 0.8336% 1.0419% 1.0218% 0.9588% 0.91505%
Employer's net pension liability (amount) $ 22,483,506 $ 18,018,037 $ 17,399,265 $ 20,291,988 $ 17,404,143 $ 13,403,285 $ 11,401,613
State's net pension liability (amount) $ 7,096,303 $ 5,867,557 $ 5,822,595 $ 266,967 $ 212,659 $ 164,637 $ 139,231
Total $ 29,579,809 $ 23,885,594 $ 23,221,860 $ 20,558,955 $ 17,616,802 $ 13,567,922 $ 11,540,844
Employer's covered payroll $ 14,298,930 $ 14,222,530 $ 13,764,340 $ 12,924,792 $ 12,238,920 $ 11,189,797 $ 10,479,122
Employer's proportionate share as a percent of covered payroll 157.24% 126.69% 126.41% 157.00% 142.20% 119.78% 111.22%
Plan fiduciary net position as a percent of total pension liability 68.90%73.85%73.47%73.75%74.71%78.40%79.90%
Schedule of Contributions:
As of Reporting Date 2021 2020 2019 2018 2017 2016 2015
Contractually required DB contributions $ 1,302,862 $ 1,239,718 $ 1,223,234 $ 1,161,210 $ 1,081,810 $ 1,022,996 $ 922,084
Plan choice rate required contributions $ - $ - $ - $ - $ - $ 28,892 $ 52,151
Contributions in relation to the contractually required contributions $ 1,302,862 $ 1,239,718 $ 1,223,234 $ 1,161,210 $ 1,081,810 $ 1,051,888 $ 974,235
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ -
Employer's covered payroll $ 14,855,905 $ 14,298,930 $ 14,222,530 $ 13,764,340 $ 12,924,792 $ 12,238,920 $ 11,189,797
Contributions as a percent of covered payroll 8.77%8.67%8.60%8.44%8.37%8.59%8.71%
PERS
PERS
*The amounts presented for each fiscal year were determined as of June 30. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
DRAFT412
116 CITY OF BOZEMAN, MONTANA SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY AND SCHEDULE OF CONTRIBUTIONS (CONTINUED) Year Ended June 30, 2021
Schedule of Proportionate Share of the Net Pension Liability:
As of Reporting Date 2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (percentage)2.3217% 2.1955% 2.3663% 2.3492% 2.3705% 2.4336% 2.4192%
Employer's net pension liability (amount) $ 3,632,985 $ 2,518,508 $ 2,725,281 $ 2,655,380 $ 2,707,390 $ 2,489,054 $ 2,361,551
State's net pension liability (amount) $ 8,189,975 $ 6,091,025 $ 6,231,502 $ 6,030,078 $ 6,134,093 $ 5,543,784 $ 5,327,544
Total $ 11,822,960 $ 8,609,533 $ 8,956,783 $ 8,685,458 $ 8,841,483 $ 8,032,838 $ 7,689,095
Employer's covered payroll $ 4,052,989 $ 3,807,151 $ 3,726,746 $ 3,511,860 $ 3,338,041 $ 3,270,451 $ 3,142,481
Employer's proportionate share as a percent of covered payroll 89.64%66.15%73.13%75.61%81.11%76.11%75.15%
Plan fiduciary net position as a percent of total pension liability 75.34%80.08%79.03%77.77%75.48%76.90%76.70%
Schedule of Contributions:
As of Reporting Date 2021 2020 2019 2018 2017 2016 2015
Contractually required contributions $ 597,763 $ 582,009 $ 524,670 $ 548,518 $ 504,303 $ 477,250 $ 478,776
Contributions in relation to the contractually required contributions $ 597,763 $ 582,009 $ 524,670 $ 548,518 $ 504,303 $ 477,250 $ 478,776
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ -
Employer's covered payroll $ 4,162,698 $ 4,052,989 $ 3,807,151 $ 3,726,746 $ 3,511,860 $ 3,338,041 $ 3,270,451
Contributions as a percent of covered payroll 14.36%14.36%13.78%14.72%14.36%14.03%14.64%
FURS
FURS
*The amounts presented for each fiscal year were determined as of June 30. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
DRAFT413
117 CITY OF BOZEMAN, MONTANA SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY AND SCHEDULE OF CONTRIBUTIONS (CONTINUED) Year Ended June 30, 2021
Schedule of Proportionate Share of the Net Pension Liability:
2021 2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (percentage)2.9892% 2.8699% 2.9325% 3.0402% 3.0842% 2.9746% 3.0209%
Employer's net pension liability (amount) $ 7,311,248 $ 5,712,381 $ 5,022,189 $ 5,408,979 $ 5,552,007 $ 4,920,638 $ 4,746,933
State's net pension liability (amount) $ 14,746,046 $ 11,632,402 $ 10,266,345 $ 11,024,418 $ 11,020,975 $ 9,969,680 $ 9,589,371
Total $ 22,057,294 $ 17,344,783 $ 15,288,534 $ 16,433,397 $ 16,572,982 $ 14,890,318 $ 14,336,304
Employer's covered payroll $ 5,120,608 $ 4,729,931 $ 4,628,804 $ 4,555,121 $ 4,353,897 $ 4,116,930 $ 4,053,265
Employer's proportionate share as a percent of covered payroll 142.78% 120.77% 108.50% 118.75% 127.52% 119.52% 117.11%
Plan fiduciary net position as a percent of total pension liability 64.84%68.84%70.95%68.34%65.62%66.90%67.01%
Schedule of Contributions:
2021 2020 2019 2018 2017 2016 2015
Contractually required contributions $ 764,283 $ 732,880 $ 684,296 $ 692,318 $ 655,143 $ 637,789 $ 596,791
Contributions in relation to the contractually required contributions $ 764,283 $ 732,880 $ 684,296 $ 692,318 $ 655,143 $ 637,789 $ 596,791
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ -
Employer's covered payroll $ 5,303,384 $ 5,120,608 $ 4,729,931 $ 4,628,804 $ 4,555,121 $ 4,353,897 $ 4,116,930
Contributions as a percent of covered payroll 14.41%14.31%14.47%14.96%14.38%14.65%14.50%
MPORS
*The amounts presented for each fiscal year were determined as of June 30. Schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
MPORS
DRAFT414
118 CITY OF BOZEMAN, MONTANA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - PENSION PLAN CHANGES Year Ended June 30, 2021
CHANGE OF BENEFIT TERMS
The following changes to the PERS, FURS, and MPORS plan provisions were made as identified:
2017 Legislative Changes – PERS:
Working Retiree Limitations – for PERS Effective July 1, 2017, if a PERS retiree returns as an independent contractor to what would otherwise be PERS-covered employment, general contractor overhead costs are excluded from PERS working retiree limitations. Refunds
1) Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their accumulated contributions in a lump sum.
2) Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund must do so within 90 days of termination of service.
3) Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump-sum payment. Interest Credited To Member Accounts Effective July 1, 2017, the interest rate credited to member accounts increased from 0.25% to 0.77%. Lump-Sum Payouts Effective July 1, 2017, lump-sum payouts in all systems are limited to the member’s accumulated contributions rate than the present value of the member’s
benefit. Disabled PERS Defined Contribution (DC) Members PERS members hired after July 1, 2011 have a normal retirement age of 65. PERS DC members hired after July 1, 2011 who became disabled were previously only eligible for a disability benefit until age 65. Effective July 1, 2017, these individuals will be eligible for a disability benefit until they reach 70, thus ensuring the same 5-year time period available to PERS DC disabled members hired prior to July 1, 2011 who have a normal retirement age of 60 and are eligible for a disability benefit until age 65. DRAFT415
119 CITY OF BOZEMAN, MONTANA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - PENSION PLAN CHANGES (CONTINUED) Year Ended June 30, 2021
CHANGE OF BENEFIT TERMS (CONTINUED)
2017 Legislative Changes – FURS:
Working Retiree Limitations – for FURS
Applies to retirement system members who return on or after July 1, 2017 to covered employment in the system from which they retired.
a. Members who return for less than 480 hours in a calendar year:
i. May not become an active member in the system; and
ii. Are subject to a $1 reduction in their retirement benefit for each $3 earned in excess of $5,000 in the calendar year. b. Members who return for 480 or more hours in a calendar year:
i. Must become an active member of the system;
ii. Will stop receiving a retirement benefit from the system; and
iii. Will be eligible for a second retirement benefit if they earn 5 or more years of service credit through their second employment.
c. Employee, employer and state contributions, if any, apply as follows:
i. Employer contributions and state contributions (if any) must be paid on all working retirees;
ii. Employee contributions must be paid on working retirees who return to covered employment for 480 or more hours in a calendar
year.
Second Retirement Benefit – for FURS
Applies to retirement system members who return on or after July 1, 2017 to active service covered by the system from which they retired.
a. If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before terminating again, the member:
i. Is not awarded service credit for the period of reemployment;
ii. Is refunded the accumulated contributions associated with the period of reemployment;
iii. Starting the first month following termination of service, receives the same retirement benefit previously paid to the member; and
iv. Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a Guaranteed Annual Benefit
Adjustment (GABA) in January immediately following second retirement. DRAFT416
120 CITY OF BOZEMAN, MONTANA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - PENSION PLAN CHANGES (CONTINUED) Year Ended June 30, 2021
CHANGE OF BENEFIT TERMS (CONTINUED)
2017 Legislative Changes – FURS (Continued):
Working Retiree Limitations – for FURS (Continued)
Second Retirement Benefit – for FURS (Continued)
Applies to retirement system members who return on or after July 1, 2017 to active service covered by the system from which they retired.
b. If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before terminating again, the member:
i. Is awarded service credit for the period of reemployment;
ii. Starting the first month following termination of service, receives:
1. The same retirement benefit previously paid to the member, and
2. A second retirement benefit for the period of reemployment calculated based on the laws in effect as of the member’s rehire date; and
iii. Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA:
1. On the initial retirement benefit in January immediately following second retirement, and
2. On the second retirement benefit starting in January after receiving that benefit for at least 12 months.
c. A member who returns to covered service is not eligible for a disability benefit
Refunds
• Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their accumulated contributions in a lump sum.
• Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund must do so within 90 days of termination of service.
• Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump-sum payment.
Interest Credited to Member Accounts
• Effective July 1, 2017, the interest rate credited to member accounts increased from 0.25% to 0.77%
Lump-Sum Payouts
• Effective July 1, 2017, lump-sum payouts in all systems are limited to the member’s accumulated contributions rate than the present value of the member’s benefit.
DRAFT417
121 CITY OF BOZEMAN, MONTANA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - PENSION PLAN CHANGES (CONTINUED) Year Ended June 30, 2021
CHANGE OF BENEFIT TERMS (CONTINUED)
2017 Legislative Changes – MPORS:
Working Retiree Limitations – for MPORS
Applies to retirement system members who return on or after July 1, 2017 to covered employment in the system from which they retired.
• Members who return for less than 480 hours in a calendar year:
a. May not become an active member in the system; and
b. Are subject to a $1 reduction in their retirement benefit for each $3 earned in excess of $5,000 in the calendar year.
• Members who return for 480 or more hours in a calendar year:
a. Must become an active member of the system;
b. Will stop receiving a retirement benefit from the system; and
c. Will be eligible for a second retirement benefit if they earn 5 or more years of service credit through their second employment.
• Employee, employer and state contributions, if any, apply as follows:
a. Employer contributions and state contributions (if any) must be paid on all working retirees;
b. Employee contributions must be paid on working retirees who return to covered employment for 480 or more hours in a calendar year.
Second Retirement Benefit – for MPORS
Applies to retirement system members who return on or after July 1, 2017 to active service covered by the system from which they retired.
• If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit before terminating again, the member:
a. Is not awarded service credit for the period of reemployment;
b. Is refunded the accumulated contributions associated with the period of reemployment;
c. Starting the first month following termination of service, receives the same retirement benefit previously paid to the member; and
d. Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement.
2017 Legislative Changes:
• If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit before terminating again, the member:
a. Is awarded service credit for the period of reemployment;
b. Starting the first month following termination of service, receives:
i. The same retirement benefit previously paid to the member, and
ii. A second retirement benefit for the period of reemployment calculated based on the laws in effect as of the member’s rehire date; and DRAFT418
122 CITY OF BOZEMAN, MONTANA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - PENSION PLAN CHANGES (CONTINUED) Year Ended June 30, 2021
CHANGE OF BENEFIT TERMS (CONTINUED)
2017 Legislative Changes – MPORS (Continued):
Second Retirement Benefit – for MPORS (Continued)
c. Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA:
i. On the initial retirement benefit in January immediately following second retirement, and
ii. On the second retirement benefit starting in January after receiving that benefit for at least 12 months.
• A member who returns to covered service is not eligible for a disability benefit.
Refunds
• Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their accumulated contributions in a lump sum.
• Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund must do so within 90 days of termination of service.
• Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump-sum payment.
Interest Credited to Member Accounts
• Effective July 1, 2017, the interest rate credited to member accounts increased from 0.25% to 0.77%
Lump-sum payouts
• Effective July 1, 2017, lump-sum payouts in all systems are limited to the member’s accumulated contributions rate than the present value of the member’s benefit.
DRAFT419
123 CITY OF BOZEMAN, MONTANA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - PENSION PLAN CHANGES (CONTINUED) Year Ended June 30, 2021
CHANGES IN ACTUARIAL ASSUMPTIONS AND METHODS Method and Assumptions used in Calculations of Actuarially Determined Contributions The following Actuarial Assumptions were adopted from the June 30, 2019 actuarial valuation:
PERS FURS MPORS
General Wage Growth* 3.50% 3.50% 3.50%
Investment Rate of Return* 7.65% 7.65% 7.65%
*Includes inflation at 2.75% 2.75% 2.75%
Merit increase 0% to 8.47% 0% to 6.30% 0% to 6.60%
Asset valuation method Four-year smoothed market 4-year smoothed market 4-year smoothed market Actuarial cost method Entry age normal Entry age normal Entry age normal Amortization method Level percentage of payroll, open Level percentage of pay, open Level percentage of pay, open
Mortality (Healthy members) For Males & Females: RP 2000 Combined Employee and Annuitant Mortality Table projected to 2020 using
Scale BB, males set back 1 year
For Males & Females: RP 2000 Combined Employee and Annuitant Mortality Table projected to 2020 using
Scale BB, males set back 1 year
For Males & Females: RP 2000 Combined Employee and Annuitant Mortality Table projected to 2020
using Scale BB, males set back 1 year Mortality (Disabled members) For Males & Females: RP 2000 Combined Mortality Table, with no
projections
For Males & Females: RP 2000 Combined Mortality Table For Males & Females: RP 2000 Combined Mortality Table
Admin Expense as a % of Payroll 0.30% 0.13% 0.15%
Administrative expenses are recognized by an additional amount added to the normal cost contribution rate for the System. This amount varies from year to year based on the prior year’s actual administrative expenses. DRAFT420
124 CITY OF BOZEMAN, MONTANA SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL – GENERAL FUND Year Ended June 30, 2021
Variance with
Actual Final Budget
Original Final Amounts Positive (Negative)
Budgetary fund balance, July 1 1,116,288$ 914,230$ 5,062,455$ 4,148,225$
Resources (inflows):
Taxes 16,230,541 16,230,541 15,775,452 (455,089)
Special assessments - - 103 103
Licenses and permits 371,900 371,900 367,895 (4,005)
Intergovernmental 8,591,802 8,591,802 11,864,827 3,273,025
Charges for services 3,573,896 3,573,896 3,650,043 76,147
Fines and forfeitures 1,070,000 1,070,000 1,084,870 14,870
Sale of assets 5,000 5,000 15,952 10,952
Interest on investments 80,000 80,000 5,747 (74,253)
Transfers from other funds 2,580,934 5,767,907 2,728,647 (3,039,260)
Proceeds of long-term debt - - - -
Other 354,890 354,890 431,551 76,661
Amounts available for appropriation 33,975,251 36,960,166 40,987,542 4,027,376
Charges to appropriations (outflows):
Current
General government 8,519,623 8,519,623 8,178,413 341,210
Public safety 15,019,654 15,019,654 17,062,287 (2,042,633)
Public service - - - -
Public welfare 5,810,264 6,437,819 4,815,295 1,622,524
Other 4,015,799 9,473,995 3,336,278 6,137,717
Capital outlay 857,364 1,255,968 1,885,031 (629,063)
Debt service 54,387 54,387 48,418 5,969
Transfers to other funds 540,000 3,726,973 557,009 3,169,964
Total charges to appropriations 34,817,091 44,488,419 35,882,731 8,605,688
Budgetary fund balance, June 30 (841,840)$ (7,528,253)$ 5,104,811$ 12,633,064$
Budgeted Amounts
DRAFT421
125 CITY OF BOZEMAN, MONTANA SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND Year Ended June 30, 2021
Variance with
Actual Amounts Final Budget
Original Final Budgetary Basis Positive (Negative)
Budgetary fund balance, July 1 -$ -$ -$ -$
Resources (inflows):
Taxes - - - -
Special assessments - - - -
Licenses and permits - - - -
Intergovernmental - - 712,051 712,051
Charges for services - - - -
Fines and forfeitures - - - -
Interest on investments - - - -
Transfers from other funds - - - -
Proceeds from long-term debt - - - -
Premium on bonds issued - - - -
Proceeds from the sale of capital assets - - - -
Other - - - -
Amounts available for appropriation - - 712,051 712,051
Charges to appropriations (outflows):
Current
General government - - - -
Public safety - - - -
Public service - - - -
Public welfare - - - -
Capital outlay - - - -
Debt service - - - -
Transfers to other funds - - 712,051 (712,051)
Total charges to appropriations - - 712,051 (712,051)
Budgetary fund balance, June 30 -$ -$ -$ -$
Budgeted Amounts
DRAFT422
126 CITY OF BOZEMAN, MONTANA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – BUDGETARY INFORMATION Year Ended June 30, 2021
General American Rescue
Fund Plan Act
Sources/inflows of resources
Actual amounts (budgetary basis) "available for appropriation"
from the budgetary comparison schedule 40,987,542$ 712,051$
Differences - budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource
but is not a current-year revenue for financial reporting purposes. (5,062,455) -
Transfers from other funds are inflows of budgetary resources but
are not revenues for financial reporting purposes (2,728,647) -
The proceeds from the issuance of long-term debt are a
budgetary resource but are a other financing source for
financial reporting purposes - -
The proceeds from the sale of assets are budgetary resources
but are regarded as a special item, rather than revenue, for
financial reporting purposes (15,952) -
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances -
governmental funds 33,180,488$ 712,051$
Uses/outflows of resources
Actual amounts (budgetary basis) "total charges to appropriations"
from the budgetary comparison schedule 35,882,731$ 712,051$
Differences - budget to GAAP:
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes.(557,009) (712,051)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances -
governmental funds 35,325,722$ -$ DRAFT423
D. SUPPLEMENTAL INFORMATION DRAFT424
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES DRAFT425
NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS
Departmental Special Revenues – Accounts for monies received and expended for projects relating to various City departments.
Street Impact Fees Special Revenue Fund – Accounts for the collection and expenditures associated with the street impact fees.
Street Maintenance – This special revenue fund accounts for special assessment revenues levied, received, and expended for street maintenance provided to specific property owners.
Fire Impact Fees Special Revenues – Accounts for the collection and expenditures associated with the fire impact fees.
City Planning Board – Accounts for monies received from various sources including property taxes, fees, and County revenues. Expenditures are for short-term and long-term planning of City and adjacent County zones. Section 76-1-102 MCA provides that the purpose of City planning is to encourage local governments to improve the present health, safety, convenience, and welfare of the citizens.
Health-Medical Insurance – Accounts for property tax revenues received and transferred to the general fund for premiums and deductibles on group insurance coverage for City employees.
Gas Tax Apportionment – Accounts for revenues from State gasoline taxes apportioned from the State of Montana Department of Highways.
Drug Forfeitures – Accounts for monies received from fines and forfeitures of drug-related criminal prosecution, to be expended on drug law enforcement and education.
City-County Drug Forfeitures – Accounts for monies received from fines and forfeitures of drug-related criminal prosecution, from an inter-local agreement with the County, to be expended on drug law enforcement and education.
Victim/Witness Advocate – Accounts for monies collected through the Court system to assist with Victim and Witness Advocate Program.
Tree Maintenance – Accounts for special assessment revenues levied, received, and expended for tree maintenance provided to specific property owners.
Parks and Trails District Fund: – In May 2020, the Citizens of Bozeman approved the creation of a Parks and Trails District. This fund accounts for the special assessment and rental revenues collected, and the operating and capital expenditures required to manage and maintain citywide parks and trails.
Community Transportation – Accounts for federal funding for highways, mass transit, and alternative transportation programs as defined by the Intermodal Surface Transportation Efficiency Act (ISTEA). Money is distributed on a per-capita basis.
Fire Department Equipment– Accounts for Public Safety mill levy tax revenues for fire department capital and equipment.
Economic Development Revolving Loan Fund – Accounts for revenues received and expended relative to loans made in accordance with the Community Development Block Grant Program, for economic development purposes.
Housing Revolving Loan Fund – Accounts for revenues received and expended relative to loans made in accordance with the Community Development Block Grant Program, for housing development purposes.
Community Housing – Accounts for money set aside by the City Commission and related expenditure for the establishment of safe, decent, and affordable housing for low and moderate-income citizens. DRAFT426
SPECIAL REVENUE FUNDS (CONTINUED)
TIF Downtown Improvement District – In November 1995, the City adopted an Urban Renewal Plan for the downtown area. This fund accounts for the revenue
and expenditures associated with this tax increment financing district and associated business improvement district.
Building Inspection Fund – Accounts for all activity related to enforcing the building regulation adopted by the City. It includes all the money and staff associated with executing any aspect of the code enforcement program.
Street Arterial & Collector District – Accounts for special assessment revenues levied, received, and expended for necessary transportation infrastructure.
Street Lighting – Accounts for special assessment revenues levied, received, and expended for street and public highway lighting provided to specific property owners.
Park Land – Accounts for monies donated for the purpose of acquiring and developing City Parks.
Municipal Court Restitution – Accounts for checks that were canceled on the restitution checking account, per MCA 46-18-250.
TIF N.E. Urban Renewal – In August of 2005, the City created an Urban Renewal Plan for the Northeast Urban section of Bozeman. This fund accounts for the revenue and expenditures associated with the district.
TIF N 7th Corridor - In August of 2005, the City created a Renewal Plan for the North 7th Avenue business district. This fund accounts for the revenue and
expenditures associated with the district.
TIF Mandeville/Wheat Dr. – In December 2006, the City created a tax increment financing district to encourage the attraction and retention of value-adding farming industries. This fund accounts for the revenue and expenditures associated with the district.
TIF South Bozeman Technology – In December 2012, the City created a tax increment financing district to improve existing infrastructure deficiencies on property adjacent to Montana State University and the Innovation Campus. This fund accounts for the revenue and expenditures associated with the district.
DEBT SERVICE FUNDS
Special Improvement District (SID) Revolving – Accounts for property tax revenues received and expended for the payment of special improvement district bond principal and interest.
General Obligation Bonds Debt Service Fund – Accounts for the debt service payments associated with the Library and Transportation general obligation bonds.
Tax Increment Financing Bonds Debt Service Fund – Accounts for the debt service payments associated with the Tax Increment Urban Renewal Revenue Bonds issued as partial funding for the construction of a Downtown Intermodal Parking Facility. PERMANENT FUNDS
Perpetual Cemetery Care – Accounts for 15% maintenance fee received from the sale of City cemetery plots, which is to be used for perpetual care. The interest income from the trust is transferred to the general fund for use in maintaining the City’s cemetery. DRAFT427
127 CITY OF BOZEMAN, MONTANA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2021
City
Street Planning Health-Medical Gas Tax
Maintenance Departmental Board Insurance Apportionment
ASSETS
Cash and cash equivalents 1,710,418$ 1,928,076$ 1,194,588$ 811,663$ 1,537,231$
Receivables:
Property taxes - 11,837 23,899 255,523 -
Accrued interest - - - - -
Customers, net 11,937 3,016 113 - -
Special assessments 157,419 - - - -
Other governments - 369,618 - - -
Others - - - - -
Advances to other city funds - - - - -
Prepaid expenditures - 255,000 - - -
Notes receivable - - - - -
Restricted cash and cash equivalents - 25,000 133,308 - -
Total assets 1,879,774$ 2,592,547$ 1,351,908$ 1,067,186$ 1,537,231$
LIABILITIES
Accounts payable 133,600$ 267,574$ 33,090$ -$ 3,610$
Appearance bonds and other liabilities - - - - -
Escheat property payable 678 - - - -
Accrued employee benefits payable - - - - -
Due to other funds - - - - -
Total liabilities 134,278 267,574 33,090 - 3,610
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes - 1,182 2,367 25,433 -
Unavailable revenue-special assessments 77,224 2,492 - - -
Total deferred inflows of resources 77,224 3,674 2,367 25,433 -
FUND BALANCES
Nonspendable - 255,000 - - -
Restricted 1,668,272 71,519 1,316,451 1,041,753 1,533,621
Committed - 1,898,307 - - -
Assigned - 96,473 - - -
Unassigned - - - - -
Total fund balances 1,668,272 2,321,299 1,316,451 1,041,753 1,533,621
Total liabilities, deferred inflows
of resources, and fund balances 1,879,774$ 2,592,547$ 1,351,908$ 1,067,186$ 1,537,231$
(continued)
Special Revenue Funds
DRAFT428
128 CITY OF BOZEMAN, MONTANA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) June 30, 2021
Downtown Building Economic
Tree Fire Improvement Inspection Development
Maintenance Impact Fees District Fund Revolving Loan
ASSETS
Cash and cash equivalents 652,571$ (5)$ 4,942,569$ 1,911,305$ -$
Receivables:
Property taxes - - 591,342 - -
Accrued interest - - - 2,736 -
Customers, net - - - - 362,762
Special assessments 16,685 - 1,461 - -
Other governments - - - - -
Others - - - - -
Advances to other city funds - - - - -
Prepaid expenditures - - - - -
Notes receivable - - - - 425,388
Restricted cash and cash equivalents - 3,813,424 - - -
Total assets 669,256$ 3,813,419$ 5,535,372$ 1,914,041$ 788,150$
LIABILITIES
Accounts payable 27,561$ 48$ 2,141,389$ 109,815$ -$
Appearance bonds and other liabilities - - - - -
Escheat property payable - - - - -
Accrued employee benefits payable - - - 887 -
Due to other funds - - - - -
Total liabilities 27,561 48 2,141,389 110,702 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes - - - - -
Unavailable revenue-special assessments 9,100 - - - -
Total deferred inflows of resources 9,100 - - - -
FUND BALANCES
Nonspendable - - - - -
Restricted 632,595 3,813,371 3,393,983 1,803,339 788,150
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 632,595 3,813,371 3,393,983 1,803,339 788,150
Total liabilities, deferred inflows
of resources, and fund balances 669,256$ 3,813,419$ 5,535,372$ 1,914,041$ 788,150$
(continued)
Special Revenue Funds
DRAFT429
129 CITY OF BOZEMAN, MONTANA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) June 30, 2021
Special Revenue Funds
Street Arterial
Community and Collector TIF TIF N.E.
Housing District N 7th Corridor Urban Renewal
ASSETS
Cash and cash equivalents 1,052,814$ 2,522,609$ 2,889,781$ 495,028$
Receivables:
Property taxes 39,497 - 173,673 73,074
Accrued interest - - 4,845 -
Customers, net (417) - - -
Special assessments - 30,452 - -
Other governments - - - -
Others - - - -
Advances to other city funds - - - -
Prepaid expenditures - - - -
Notes receivable 30,236 - - -
Restricted cash and cash equivalents - - - 92,000
Total assets 1,122,130$ 2,553,061$ 3,068,299$ 660,102$
LIABILITIES
Accounts payable 318,165$ 67,895$ 11,037$ 26,032$
Appearance bonds and other liabilities - - - -
Escheat property payable - - - -
Accrued employee benefits payable - - - -
Due to other funds - - - -
Total liabilities 318,165 67,895 11,037 26,032
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes 3,600 - 31,198 -
Unavailable revenue-special assessments - - - -
Total deferred inflows of resources 3,600 - 31,198 -
FUND BALANCES
Nonspendable - - - -
Restricted - 2,485,166 3,026,064 634,070
Committed 800,365 - - -
Assigned - - - -
Unassigned - - - -
Total fund balances 800,365 2,485,166 3,026,064 634,070
Total liabilities, deferred inflows
of resources, and fund balances 1,122,130$ 2,553,061$ 3,068,299$ 660,102$
(continued)DRAFT430
130 CITY OF BOZEMAN, MONTANA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) June 30, 2021
Special Revenue Funds
TIF Mandeville/ TIFD South Boz Victim/Witness Fire Department Street
Wheat Dr.Technology Advocate Equipment Lighting
ASSETS
Cash and cash equivalents 118,265$ 15$ 441,878$ 513,644$ 451,317$
Receivables:
Property taxes 2,487 - - 47,311 -
Accrued interest - - - - -
Customers, net - - 4,589 - -
Special assessments - - - - 10,677
Other governments - - - - -
Others - - - - -
Advances to other city funds - - - - -
Prepaid expenditures - - - - -
Notes receivable - - - - -
Restricted cash and cash equivalents - - - - -
Total assets 120,752$ 15$ 446,467$ 560,955$ 461,994$
LIABILITIES
Accounts payable -$ -$ 19,827$ -$ 34,981$
Appearance bonds and other liabilities - - - - -
Escheat property payable - - - - -
Accrued employee benefits payable - - - - -
Due to other funds - 7,626 - - -
Total liabilities - 7,626 19,827 - 34,981
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes - - - 4,726 -
Unavailable revenue-special assessments - - - - -
Total deferred inflows of resources - - - 4,726 -
FUND BALANCES
Nonspendable - - - - -
Restricted 120,752 (7,611) 426,640 - 427,013
Committed - - - 556,229 -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 120,752 (7,611) 426,640 556,229 427,013
Total liabilities, deferred inflows
of resources, and fund balances 120,752$ 15$ 446,467$ 560,955$ 461,994$
(continued) DRAFT431
131 CITY OF BOZEMAN, MONTANA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) June 30, 2021
Parks and
Park Street Municipal Court Trails
Land Impact Fees Restitution District Total
ASSETS
Cash and cash equivalents 1,316,125$ -$ 26,143$ 1,002,955$ 25,518,990$
Receivables:
Property taxes - - - - 1,218,643
Accrued interest - - - - 7,581
Customers, net - - - - 382,000
Special assessments - - - 77,548 294,242
Other governments - - - - 369,618
Others - - - -
Advances to other city funds - - - - -
Prepaid expenditures - - - - 255,000
Notes receivable - - - - 455,624
Restricted cash and cash equivalents - 8,181,411 - - 12,245,143
Total assets 1,316,125$ 8,181,411$ 26,143$ 1,080,503$ 40,746,841$
LIABILITIES
Accounts payable 24,984$ 176,003$ 1,000$ 243,534$ 3,640,145$
Appearance bonds and other liabilities - - - - -
Escheat property payable - - 25,038 - 25,716
Accrued employee benefits payable - - - - 887
Due to other funds - - - - 7,626
Total liabilities 24,984 176,003 26,038 243,534 3,674,374
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes - - - - 68,506
Unavailable revenue-special assessments - - - - 88,816
Total deferred inflows of resources - - - - 157,322
FUND BALANCES
Nonspendable - - - - 255,000
Restricted 1,291,141 8,005,408 105 836,969 33,308,771
Committed - - - - 3,254,901
Assigned - - - - 96,473
Unassigned - - - - -
Total fund balances 1,291,141 8,005,408 105 836,969 36,915,145
Total liabilities, deferred inflows
of resources, and fund balances 1,316,125$ 8,181,411$ 26,143$ 1,080,503$ 40,746,841$
(continued)
Special Revenue Funds
DRAFT432
132 CITY OF BOZEMAN, MONTANA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) June 30, 2021
SID G.O.TIF
Revolving Bonds Bonds Total
ASSETS
Cash and cash equivalents 2,555,927$ 103,882 -$ 2,659,809$
Receivables:
Property taxes - 337,978 - 337,978
Accrued interest - - - -
Customers, net - - - -
Special assessments - - - -
Other governments - - - -
Others - - - -
Advances to other city funds 1,045,398 - - 1,045,398
Prepaid expenditures - - - -
Notes receivable - - - -
Restricted cash and cash equivalents - - - -
Total assets 3,601,325$ 441,860$ -$ 4,043,185$
LIABILITIES
Accounts payable -$ -$ -$ -$
Appearance bonds and other liabilities - - - -
Escheat property payable - - - -
Accrued employee benefits payable - - - -
Due to other funds - 348,505 1,499 350,004
Total liabilities - 348,505 1,499 350,004
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes - 36,084 - 36,084
Unavailable revenue-special assessments - - - -
Total deferred inflows of resources - 36,084 - 36,084
FUND BALANCES
Nonspendable - - - -
Restricted 3,601,325 57,271 (1,499) 3,657,097
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total fund balances 3,601,325 57,271 (1,499) 3,657,097
Total liabilities, deferred inflows
of resources, and fund balances 3,601,325$ 441,860$ -$ 4,043,185$
(continued)
Debt Service Funds
DRAFT433
133 CITY OF BOZEMAN, MONTANA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) June 30, 2021
Permanent Total
Fund Nonmajor
Perpetual Governmental
Cemetery Care Funds
ASSETS
Cash and cash equivalents -$ 28,178,799$
Receivables:
Property taxes - 1,556,621
Accrued interest - 7,581
Customers, net 7,948 389,948
Special assessments - 294,242
Other governments - 369,618
Others - -
Advances to other city funds - 1,045,398
Prepaid expenditures - 255,000
Notes receivable - 455,624
Restricted cash and cash equivalents 1,635,940 13,881,083
Total assets 1,643,888$ 46,433,914$
LIABILITIES
Accounts payable 14,409$ 3,654,554$
Appearance bonds and other liabilities - -
Escheat property payable - 25,716
Accrued employee benefits payable - 887
Due to other funds - 357,630
Total liabilities 14,409 4,038,787
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-property taxes - 104,590
Unavailable revenue-special assessments - 88,816
Total deferred inflows of resources - 193,406
FUND BALANCES
Nonspendable 1,629,479 1,884,479
Restricted - 36,965,868
Committed - 3,254,901
Assigned - 96,473
Unassigned - -
Total fund balances 1,629,479 42,201,721
Total liabilities, deferred inflows
of resources, and fund balances 1,643,888$ 46,433,914$ DRAFT434
134 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2021
City
Street Planning Health-Medical Gas Tax
Maintenance Departmental Board Insurance Apportionment
REVENUES
Taxes -$ 128,936$ 258,630$ 2,762,846$ -$
Special assessments 28,385 - - - -
Licenses and permits 31,841 - - - -
Intergovernmental 26,715 757,401 159,058 - 1,618,008
Charges for services 7,028,315 9,835 1,154,578 - -
Fines and forfeitures - 24,694 - - -
Interest on investments 3,713 11,845 6,250 2,127 8,522
Interest on loans receivable - - - - -
Other 43,256 128,608 42,865 - -
Total revenues 7,162,225 1,061,319 1,621,381 2,764,973 1,626,530
EXPENDITURES
Current:
General government - 146,755 2,031,363 - -
Public safety - 536,040 - - -
Public service 4,439,778 - - - 342,125
Public welfare - 430,354 - - -
Other - 129,423 - - -
Capital outlay 1,043,447 117,448 41,202 - 549,332
Debt service:
Principal 216,582 62,883 - - -
Interest and fiscal fees 23,191 62,912 - - -
Total expenditures 5,722,998 1,485,815 2,072,565 - 891,457
Revenues over (under) expenditures 1,439,227 (424,496) (451,184) 2,764,973 735,073
OTHER FINANCING SOURCES (USES)
Transfers in 50,000 270,608 221,507 - -
Transfers out (724,647) - - (2,545,822) (864,776)
Sale of capital assets 5,715 - - - -
Issuance of long term debt - - - - -
Total other financing sources (uses)(668,932) 270,608 221,507 (2,545,822) (864,776)
Net change in fund balance 770,295 (153,888) (229,677) 219,151 (129,703)
FUND BALANCES, beginning of year 897,977 2,475,187 1,546,128 822,602 1,663,324
FUND BALANCES, end of year 1,668,272$ 2,321,299$ 1,316,451$ 1,041,753$ 1,533,621$
(continued)
Special Revenue Funds
DRAFT435
135 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Downtown Building Economic
Tree Fire Improvement Inspection Development
Maintenance Impact Fees District Fund Revolving Loan
REVENUES
Taxes -$ -$ 1,841,880$ -$ -$
Special assessments 1,851 - 175,445 - -
Licenses and permits - - 1,750 2,501,130 -
Intergovernmental 11,469 - 360 128,539 -
Charges for services 790,230 594,962 - 496 -
Fines and forfeitures - - - - -
Interest on investments 2,935 8,860 5,512 2,131 3,304
Interest on loans receivable - - - - 18,460
Other 17,743 - - 11 -
Total revenues 824,228 603,822 2,024,947 2,632,307 21,764
EXPENDITURES
Current:
General government - - - - -
Public safety - 32,963 - 2,129,007 -
Public service - - - - -
Public welfare 699,279 - 782,429 - 40,766
Other - - - - -
Capital outlay 14,500 - - 190,607 -
Debt service:
Principal - - - - -
Interest and fiscal fees - - - - -
Total expenditures 713,779 32,963 782,429 2,319,614 40,766
Revenues over (under) expenditures 110,449 570,859 1,242,518 312,693 (19,002)
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out - - (371,198) (5,060) -
Sale of capital assets - - - - -
Issuance of long term debt - - - - -
Total other financing sources (uses)- - (371,198) (5,060) -
Net change in fund balance 110,449 570,859 871,320 307,633 (19,002)
FUND BALANCES, beginning of year 522,146 3,242,512 2,522,663 1,495,706 807,152
FUND BALANCES, end of year 632,595$ 3,813,371$ 3,393,983$ 1,803,339$ 788,150$
(continued)
Special Revenue Funds
DRAFT436
136 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Special Revenue Funds
Street Arterial
Community and Collector TIF TIF N.E.
Housing District N 7th Corridor Urban Renewal
REVENUES
Taxes 391,293$ -$ 1,114,009$ 468,352$
Special assessments - 3,359 - -
Licenses and permits - - - -
Intergovernmental 1,305 - 1,144 150
Charges for services - 1,421,018 - -
Fines and forfeitures - - - -
Interest on investments 8,276 6,472 3,777 1,594
Interest on loans receivable 110 - - -
Other - 179,569 - -
Total revenues 400,984 1,610,418 1,118,930 470,096
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Public service - 88,643 - -
Public welfare 1,288,706 - 294,746 55,538
Other - - - -
Capital outlay - 895,573 53,817 3,300
Debt service:
Principal - - - 45,583
Interest and fiscal fees - - - 46,417
Total expenditures 1,288,706 984,216 348,563 150,838
Revenues over (under) expenditures (887,722) 626,202 770,367 319,258
OTHER FINANCING SOURCES (USES)
Transfers in - 864,776 - -
Transfers out - - (630,758) -
Sale of capital assets - - - -
Issuance of long term debt - - - -
Total other financing sources (uses)- 864,776 (630,758) -
Net change in fund balance (887,722) 1,490,978 139,609 319,258
FUND BALANCES, beginning of year 1,688,087 994,188 2,886,455 314,812
FUND BALANCES, end of year 800,365$ 2,485,166$ 3,026,064$ 634,070$
(continued) DRAFT437
137 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Special Revenue Funds
TIF Mandeville/ TIFD South Boz Victim/Witness Fire Department Street
Wheat Dr.Technology Advocate Equipment Lighting
REVENUES
Taxes 8,689$ -$ -$ 515,700$ -$
Special assessments - - - - 487,405
Licenses and permits - - - - -
Intergovernmental - - - - -
Charges for services - - - - -
Fines and forfeitures - - 59,316 - -
Interest on investments 619 - 2,504 1,458 2,661
Interest on loans receivable - - - - -
Other - - - - -
Total revenues 9,308 - 61,820 517,158 490,066
EXPENDITURES
Current:
General government - - 92,495 - -
Public safety - - - 17,478 -
Public service - - - - 475,525
Public welfare - - - - -
Other - - - - -
Capital outlay - - - 152,064 -
Debt service:
Principal - - - - -
Interest and fiscal fees - - - - -
Total expenditures - - 92,495 169,542 475,525
Revenues over (under) expenditures 9,308 - (30,675) 347,616 14,541
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out - - - (50,000) (50,000)
Sale of capital assets - - - - -
Issuance of long term debt - - - - -
Total other financing sources (uses)- - - (50,000) (50,000)
Net change in fund balance 9,308 - (30,675) 297,616 (35,459)
FUND BALANCES, beginning of year 111,444 (7,611) 457,315 258,613 462,472
FUND BALANCES, end of year 120,752$ (7,611)$ 426,640$ 556,229$ 427,013$
(continued) DRAFT438
138 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Municipal Parks and
Park Street Court Trails
Land Impact Fees Restitution District Totals
REVENUES
Taxes -$ -$ -$ -$ 7,490,335$
Special assessments - - - 4,974 701,419
Licenses and permits - - - - 2,534,721
Intergovernmental - - - 16,125 2,720,274
Charges for services - 6,439,227 - 3,659,522 21,098,183
Fines and forfeitures - - - - 84,010
Interest on investments 7,157 4,592 - 1,499 95,808
Interest on loans receivable - - - - 18,570
Other 328,818 22,192 - 9,941 773,003
Total revenues 335,975 6,466,011 - 3,692,061 35,516,323
EXPENDITURES
Current:
General government - - - - 2,270,613
Public safety - - - - 2,715,488
Public service - 379,696 - - 5,725,767
Public welfare 192,034 - - 2,706,088 6,489,940
Other - - - - 129,423
Capital outlay - 2,806,157 - 150,525 6,017,972
Debt service:
Principal - - - - 325,048
Interest and fiscal fees - - - - 132,520
Total expenditures 192,034 3,185,853 - 2,856,613 23,806,771
Revenues over (under) expenditures 143,941 3,280,158 - 835,448 11,709,552
OTHER FINANCING SOURCES (USES)
Transfers in - - - - 1,406,891
Transfers out - - - - (5,242,261)
Sale of capital assets - - - 2,077 7,792
Issuance of long term debt - - - - -
Total other financing sources (uses)- - - 2,077 (3,827,578)
Net change in fund balance 143,941 3,280,158 - 837,525 7,881,974
FUND BALANCES, beginning of year 1,147,200 4,725,250 105 (556) 29,033,171
FUND BALANCES, end of year 1,291,141$ 8,005,408$ 105$ 836,969$ 36,915,145$
(continued)
Special Revenue Funds
DRAFT439
139 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
SID G.O.TIF
Revolving Bonds Bonds Totals
REVENUES
Taxes -$ 3,707,319$ -$ 3,707,319$
Special assessments - - - -
Licenses and permits - - - -
Intergovernmental - - - -
Charges for services 718 - - 718
Fines and forfeitures - - - -
Interest on investments 1,657 2,151 - 3,808
Interest on loans receivable 19,706 - - 19,706
Other - - - -
Total revenues 22,081 3,709,470 - 3,731,551
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Public service - - - -
Public welfare - - - -
Other - - - -
Capital outlay - - - -
Debt service:
Principal - 2,205,000 424,000 2,629,000
Interest and fiscal fees - 1,520,363 311,841 1,832,204
Total expenditures - 3,725,363 735,841 4,461,204
Revenues over (under) expenditures 22,081 (15,893) (735,841) (729,653)
OTHER FINANCING SOURCES (USES)
Transfers in - - 734,342 734,342
Transfers out - - - -
Sale of capital assets - - - -
Issuance of long term debt - - - -
Total other financing sources (uses)- - 734,342 734,342
Net change in fund balance 22,081 (15,893) (1,499) 4,689
FUND BALANCES, beginning of year 3,579,244 73,164 - 3,652,408
FUND BALANCES, end of year 3,601,325$ 57,271$ (1,499)$ 3,657,097$
Debt Service Funds
DRAFT440
140 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Permanent Total
Fund Nonmajor
Cemetery Governmental
Perpetual Care Funds
REVENUES
Taxes -$ 11,197,654$
Special assessments - 701,419
Licenses and permits - 2,534,721
Intergovernmental - 2,720,274
Charges for services 98,889 21,197,790
Fines and forfeitures - 84,010
Interest on investments 8,541 108,157
Interest on loans receivable - 38,276
Other - 773,003
Total revenues 107,430 39,355,304
EXPENDITURES
Current:
General government - 2,270,613
Public safety - 2,715,488
Public service - 5,725,767
Public welfare - 6,489,940
Other - 129,423
Capital outlay - 6,017,972
Debt service:
Principal - 2,954,048
Interest and fiscal fees - 1,964,724
Total expenditures - 28,267,975
Revenues over (under) expenditures 107,430 11,087,329
OTHER FINANCING SOURCES (USES)
Transfers in - 2,141,233
Transfers out - (5,242,261)
Sale of capital assets - 7,792
Issuance of long term debt - -
Total other financing sources (uses)- (3,093,236)
Net change in fund balance 107,430 7,994,093
FUND BALANCES, beginning of year 1,522,049 34,207,628
FUND BALANCES, end of year 1,629,479$ 42,201,721$ DRAFT441
141 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL SID DEBT SERVICE Year Ended June 30, 2021
Variance
Positive
Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$
Special assessments 598,804 975,387 376,583
Licenses and permits - - -
Intergovernmental - - -
Charges for services - - -
Fines and forfeitures - - -
Interest on investments 28,345 14,690 (13,655)
Loan repayment - - -
Other - - -
Total revenues 627,149 990,077 362,928
EXPENDITURES - BUDGET UNIT 172,728 362,457 (189,729)
Revenues over (under) expenditures 454,421 627,620 173,199
OTHER FINANCING SOURCES (USES)
Transfers in 3,186,973 - (3,186,973)
Transfers out - - -
Long-term debt issued - - -
Sale of capital assets - - -
Total other financing sources (uses)3,186,973 - (3,186,973)
Revenues and other sources over
(under) expenditures 3,641,394$ 627,620 (3,013,774)$
FUND BALANCES, beginning of year 1,176,524
FUND BALANCES, end of year 1,804,144$
SID Debt Service
DRAFT442
142 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL CONSTRUCTION CAPITAL PROJECTS Year Ended June 30, 2021
Variance
Positive
Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$
Special assessments - - -
Licenses and permits - - -
Intergovernmental - - -
Charges for services - - -
Fines and forfeitures - - -
Interest on investments 534,000 27,053 (506,947)
Loan repayment - - -
Other - 562,066 562,066
Total revenues 534,000 589,119 55,119
EXPENDITURES - BUDGET UNIT 47,586,156 25,233,856 22,352,300
Revenues over (under) expenditures (47,052,156) (24,644,737) 22,407,419
OTHER FINANCING SOURCES (USES)
Transfers in 2,316,671 1,106,520 (1,210,151)
Transfers out - - -
Long-term debt issued 7,149,009 11,150,009 4,001,000
Sale of capital assets - - -
Total other financing sources (uses)9,465,680 12,256,529 2,790,849
Revenues and other sources over
(under) expenditures (37,586,476)$ (12,388,208) 25,198,268$
FUND BALANCES, beginning of year 36,466,616
FUND BALANCES, end of year 24,078,408$
Construction Capital Projects
DRAFT443
143 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ 129,408$ 128,936$ (472)$
Special assessments 21,100 28,385 7,285 - - -
Licenses and permits 18,000 31,841 13,841 - - -
Intergovernmental - 26,715 26,715 723,891 757,401 33,510
Charges for services 6,658,156 7,028,315 370,159 35,000 9,835 (25,165)
Fines and forfeitures - - - 62,500 24,694 (37,806)
Interest on investments 11,000 3,713 (7,287) 20,500 11,845 (8,655)
Loan repayment - - - 1,175 - (1,175)
Other 25,000 43,256 18,256 93,200 128,608 35,408
Total revenues 6,733,256 7,162,225 428,969 1,065,674 1,061,319 (4,355)
EXPENDITURES - BUDGET UNIT 6,378,298 5,722,998 655,300 1,602,637 1,485,815 116,822
Revenues over (under) expenditures 354,958 1,439,227 1,084,269 (536,963) (424,496) 112,467
OTHER FINANCING SOURCES (USES)
Transfers in 50,000 50,000 - 105,644 270,608 164,964
Transfers out (724,647) (724,647) - - - -
Long-term debt issued - - - - - -
Sale of capital assets - 5,715 5,715 - - -
Total other financing sources (uses)(674,647) (668,932) 5,715 105,644 270,608 164,964
Revenues and other sources over
(under) expenditures (319,689)$ 770,295 1,089,984$ (431,319)$ (153,888) 277,431$
FUND BALANCES, beginning of year 897,977 2,475,187
FUND BALANCES, end of year 1,668,272$ 2,321,299$
(continued)
Special Revenue Funds
Street Maintenance Departmental Special Revenues
DRAFT444
144 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes 258,816$ 258,630$ (186)$ 2,768,752$ 2,762,846$ (5,906)$
Special assessments - - - - - -
Licenses and permits - - - - - -
Intergovernmental 115,766 159,058 43,292 - - -
Charges for services 1,046,398 1,154,578 108,180 - - -
Fines and forfeitures - - - - - -
Interest on investments 10,000 6,250 (3,750) - 2,127 2,127
Loan repayment - - - - - -
Other 50,500 42,865 (7,635) - - -
Total revenues 1,481,480 1,621,381 139,901 2,768,752 2,764,973 (3,779)
EXPENDITURES - BUDGET UNIT 2,545,583 2,072,565 473,018 - - -
Revenues over (under) expenditures (1,064,103) (451,184) 612,919 2,768,752 2,764,973 (3,779)
OTHER FINANCING SOURCES (USES)
Transfers in 162,174 221,507 59,333 - - -
Transfers out - - - (2,768,752) (2,545,822) 222,930
Long-term debt issued - - - - - -
Sale of capital assets - - - - - -
Total other financing sources (uses)162,174 221,507 59,333 (2,768,752) (2,545,822) 222,930
Revenues and other sources over
(under) expenditures (901,929)$ (229,677) 672,252$ -$ 219,151 219,151$
FUND BALANCES, beginning of year 1,546,128 822,602
FUND BALANCES, end of year 1,316,451$ 1,041,753$
(continued)
City Planning Board Health-Medical Insurance
Special Revenue Funds
DRAFT445
145 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ -$ -$ -$
Special assessments - - - 2,000 1,851 (149)
Licenses and permits - - - - - -
Intergovernmental 1,160,000 1,618,008 458,008 - 11,469 11,469
Charges for services - - - 806,252 790,230 (16,022)
Fines and forfeitures - - - - - -
Interest on investments 5,000 8,522 3,522 4,000 2,935 (1,065)
Loan repayment - - - - - -
Other - - - 6,000 17,743 11,743
Total revenues 1,165,000 1,626,530 461,530 818,252 824,228 5,976
EXPENDITURES - BUDGET UNIT 2,004,500 891,457 1,113,043 867,909 713,779 154,130
Revenues over (under) expenditures (839,500) 735,073 1,574,573 (49,657) 110,449 160,106
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out (500,000) (864,776) (364,776) - - -
Long-term debt issued - - - - - -
Sale of capital assets - - - - - -
Total other financing sources (uses)(500,000) (864,776) (364,776) - - -
Revenues and other sources over
(under) expenditures (1,339,500)$ (129,703) 1,209,797$ (49,657)$ 110,449 160,106$
FUND BALANCES, beginning of year 1,663,324 522,146 FUND BALANCES, end of year 1,533,621$ 632,595$
(continued)
Tree MaintenanceGas Tax Apportionment
Special Revenue Funds
DRAFT446
146 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Downtown Improvement District
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ 1,919,863$ 1,841,880$ (77,983)$
Special assessments - - - 175,000 175,445 445
Licenses and permits - - - 750 1,750 1,000
Intergovernmental - - - 56,050 360 (55,690)
Charges for services 450,000 594,962 144,962 - - -
Fines and forfeitures - - - - - -
Interest on investments 20,000 8,860 (11,140) 50,740 5,512 (45,228)
Loan repayment - - - - - -
Other - - - - - -
Total revenues 470,000 603,822 133,822 2,202,403 2,024,947 (177,456)
EXPENDITURES - BUDGET UNIT 22,500 32,963 (10,463) 1,869,955 782,429 1,087,526
Revenues over (under) expenditures 447,500 570,859 123,359 332,448 1,242,518 910,070
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out - - - (332,448) (371,198) (38,750)
Long-term debt issued - - - - - -
Sale of capital assets - - - - - -
Total other financing sources (uses)- - - (332,448) (371,198) (38,750)
Revenues and other sources over
(under) expenditures 447,500$ 570,859 123,359$ -$ 871,320 871,320$
FUND BALANCES, beginning of year 3,242,512 2,522,663
FUND BALANCES, end of year 3,813,371$ 3,393,983$
(continued)
Special Revenue Funds
Fire Impact Fees Special Revenue
DRAFT447
147 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ -$ -$ -$
Special assessments - - - - - -
Licenses and permits 2,050,000 2,501,130 451,130 - - -
Intergovernmental - 128,539 128,539 - - -
Charges for services 600 496 (104) - - -
Fines and forfeitures - - - - - -
Interest on investments 20,000 2,131 (17,869) - 3,304 3,304
Loan repayment - - - 50,000 18,460 (31,540)
Other - 11 11 - - -
Total revenues 2,070,600 2,632,307 561,707 50,000 21,764 (28,236)
EXPENDITURES - BUDGET UNIT 3,217,852 2,319,614 898,238 31,000 40,766 (9,766)
Revenues over (under) expenditures (1,147,252) 312,693 1,459,945 19,000 (19,002) (38,002)
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out - (5,060) (5,060) - - -
Long-term debt issued - - - - - -
Sale of capital assets - - - - - -
Total other financing sources (uses)- (5,060) (5,060) - - -
Revenues and other sources over
(under) expenditures (1,147,252)$ 307,633 1,454,885$ 19,000$ (19,002) (38,002)$
FUND BALANCES, beginning of year 1,495,706 807,152
FUND BALANCES, end of year 1,803,339$ 788,150$
(continued)
Special Revenue Funds
Economic Development Revolving Loan FundBuilding Inspection Fund
DRAFT448
148 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes 388,224$ 391,293$ 3,069$ -$ -$ -$
Special assessments - - - - 4,974 4,974
Licenses and permits - - - - - -
Intergovernmental - 1,305 1,305 - 16,125 16,125
Charges for services - - - 3,713,907 3,659,522 (54,385)
Fines and forfeitures - - - - - -
Interest on investments 5,000 8,276 3,276 2,500 1,499 (1,001)
Loan repayment 1,000 110 (890) - - -
Other 578,028 - (578,028) - 9,941 9,941
Total revenues 972,252 400,984 (571,268) 3,716,407 3,692,061 (24,346)
EXPENDITURES - BUDGET UNIT 1,749,705 1,288,706 460,999 3,632,174 2,856,613 775,561
Revenues over (under) expenditures (777,453) (887,722) (110,269) 84,233 835,448 751,215
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out - - - - - -
Long-term debt issued - - - -
Sale of capital assets - - - - 2,077 2,077
Total other financing sources (uses)- - - - 2,077 2,077
Revenues and other sources over
(under) expenditures (777,453)$ (887,722) (110,269)$ 84,233$ 837,525 753,292$
FUND BALANCES, beginning of year 1,688,087 (556)
FUND BALANCES, end of year 800,365$ 836,969$
(continued)
Special Revenue Funds
Parks and Trails District FundCommunity Housing
DRAFT449
149 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ 1,089,328$ 1,114,009$ 24,681$
Special assessments 3,500 3,359 (141) - - -
Licenses and permits - - - - - -
Intergovernmental - - - 37,927 1,144 (36,783)
Charges for services 1,442,306 1,421,018 (21,288) - - -
Fines and forfeitures - - - - - -
Interest on investments 7,000 6,472 (528) 37,500 3,777 (33,723)
Loan repayment - - - - - -
Other 300,667 179,569 (121,098) - - -
Total revenues 1,753,473 1,610,418 (143,055) 1,164,755 1,118,930 (45,825)
EXPENDITURES - BUDGET UNIT 3,950,262 984,216 2,966,046 2,401,755 348,563 2,053,192
Revenues over (under) expenditures (2,196,789) 626,202 2,822,991 (1,237,000) 770,367 2,007,367
OTHER FINANCING SOURCES
Transfers in 500,000 864,776 364,776 - - -
Transfers out - - - (630,758) (630,758) -
Long-term debt issued - - - - - -
Sale of capital assets - - - - - -
Total other financing sources (uses)500,000 864,776 364,776 (630,758) (630,758) -
Revenues and other sources over
(under) expenditures (1,696,789)$ 1,490,978 3,187,767$ (1,867,758)$ 139,609 2,007,367$
FUND BALANCES, beginning of year 994,188 2,886,455
FUND BALANCES, end of year 2,485,166$ 3,026,064$
(continued)
Street Arterial and Collector District TIF N. 7th Corridor
Special Revenue Funds
DRAFT450
150 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes 268,847$ 468,352$ 199,505$ 25,000$ 8,689$ (16,311)$
Special assessments - - - - - -
Licenses and permits - - - - - -
Intergovernmental 1,354 150 (1,204) - - -
Charges for services - - - - - -
Fines and forfeitures - - - - - -
Interest on investments 3,000 1,594 (1,406) - 619 619
Loan repayment - - - - - -
Other - - - - - -
Total revenues 273,201 470,096 196,895 25,000 9,308 (15,692)
EXPENDITURES - BUDGET UNIT 273,201 150,838 122,363 - - -
Revenues over (under) expenditures - 319,258 319,258 25,000 9,308 (15,692)
OTHER FINANCING SOURCES
Transfers in - - - - - -
Transfers out - - - - - -
Long-term debt issued - - - - - -
Sale of capital assets - - - - - -
Total other financing sources (uses)- - - - - -
Revenues and other sources over
(under) expenditures -$ 319,258 319,258$ 25,000$ 9,308 (15,692)$
FUND BALANCES, beginning of year 314,812 111,444
FUND BALANCES, end of year 634,070$ 120,752$
(continued)
TIF N.E. Urban Renewal TIF Mandeville/Wheat Dr.
Special Revenue Funds
DRAFT451
151 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ -$ -$ -$
Special assessments - - - - - -
Licenses and permits - - - - - -
Intergovernmental - - - - - -
Charges for services - - - - - -
Fines and forfeitures - - - 70,000 59,316 (10,684)
Interest on investments - - - 3,500 2,504 (996)
Loan repayment - - - - - -
Other - - - - - -
Total revenues - - - 73,500 61,820 (11,680)
EXPENDITURES - BUDGET UNIT - - - 90,000 92,495 (2,495)
Revenues over (under) expenditures - - - (16,500) (30,675) (14,175)
OTHER FINANCING SOURCES
Transfers in - - - - - -
Transfers out - - - - - -
Long-term debt issued - - - - - -
Sale of capital assets - - - - - -
Total other financing sources (uses)- - - - - -
Revenues and other sources over
(under) expenditures -$ - -$ (16,500)$ (30,675) (14,175)$
FUND BALANCES, beginning of year (7,611) 457,315
FUND BALANCES, end of year (7,611)$ 426,640$
(continued)
TIFD South Boz Technology Victim/Witness Advocate
Special Revenue Funds
DRAFT452
152 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes 517,632$ 515,700$ (1,932)$ -$ -$ -$
Special assessments - - - 469,993 487,405 17,412
Licenses and permits - - - - - -
Intergovernmental - - - - - -
Charges for services - - - - - -
Fines and forfeitures - - - - - -
Interest on investments 5,000 1,458 (3,542) 5,890 2,661 (3,229)
Loan repayment - - - - - -
Other - - - - - -
Total revenues 522,632 517,158 (5,474) 475,883 490,066 14,183
EXPENDITURES - BUDGET UNIT 537,500 169,542 367,958 522,554 475,525 47,029
Revenues over (under) expenditures (14,868) 347,616 362,484 (46,671) 14,541 61,212
OTHER FINANCING SOURCES
Transfers in - - - - - -
Transfers out (50,000) (50,000) - (6,380) (50,000) (43,620)
Long-term debt issued - - - - - -
Sale of capital assets - - - - - -
Total other financing sources (uses)(50,000) (50,000) - (6,380) (50,000) (43,620)
Revenues and other sources over
(under) expenditures (64,868)$ 297,616 362,484$ (53,051)$ (35,459) 17,592$
FUND BALANCES, beginning of year 258,613 462,472
FUND BALANCES, end of year 556,229$ 427,013$
(continued)
Special Revenue Funds
Fire Department Equipment Street Lighting
DRAFT453
153 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ -$ -$ -$
Special assessments - - - - - -
Licenses and permits - - - - - -
Intergovernmental - - - - - -
Charges for services - - - - - -
Fines and forfeitures - - - - - -
Interest on investments 4,500 7,157 2,657 - - -
Loan repayment - - - - - -
Other 50,000 328,818 278,818 - - -
Total revenues 54,500 335,975 281,475 - - -
EXPENDITURES - BUDGET UNIT 5,000 192,034 (187,034) - - -
Revenues over (under) expenditures 49,500 143,941 94,441 - - -
OTHER FINANCING SOURCES
Transfers in - - - - - -
Transfers out - - - - -
Long-term debt issued - - - - - -
Sale of capital assets - - - - - -
Total other financing sources (uses)- - - - - -
Revenues and other sources over
(under) expenditures 49,500$ 143,941 94,441$ -$ - -$
FUND BALANCES, beginning of year 1,147,200 105
FUND BALANCES, end of year 1,291,141$ 105$
(continued)
Special Revenue Funds
Park Land Municipal Court Restitution
DRAFT454
154 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ 7,365,870$ 7,490,335$ 124,465$
Special assessments - - - 671,593 701,419 29,826
Licenses and permits - - - 2,068,750 2,534,721 465,971
Intergovernmental - - - 2,094,988 2,720,274 625,286
Charges for services 4,000,000 6,439,227 2,439,227 18,152,619 21,098,183 2,945,564
Fines and forfeitures - - - 132,500 84,010 (48,490)
Interest on investments 60,000 4,592 (55,408) 275,130 95,808 (179,322)
Loan repayment - - - 52,175 18,570 (33,605)
Other 1,000 22,192 21,192 1,104,395 773,003 (331,392)
Total revenues 4,061,000 6,466,011 2,405,011 31,918,020 35,516,323 3,598,303
EXPENDITURES - BUDGET UNIT 13,784,530 3,185,853 10,598,677 45,486,915 23,806,771 21,680,144
Revenues over (under) expenditures (9,723,530) 3,280,158 13,003,688 (13,568,895) 11,709,552 25,278,447
OTHER FINANCING SOURCES
Transfers in - - - 817,818 1,406,891 589,073
Transfers out - - - (5,012,985) (5,242,261) (229,276)
Long-term debt issued - - - - - -
Sale of capital assets - - - - 7,792 7,792
Total other financing sources (uses)- - - (4,195,167) (3,827,578) 367,589
Revenues and other sources over
(under) expenditures (9,723,530)$ 3,280,158 13,003,688$ (17,764,062)$ 7,881,974 25,646,036$
FUND BALANCES, beginning of year 4,725,250 29,033,171
FUND BALANCES, end of year 8,005,408$ 36,915,145$
(continued)
TotalStreet Impact Fees
Special Revenue Funds
DRAFT455
155 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Debt Service Funds
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ 2,791,804 3,707,319$ 915,515$
Special assessments - - - - - -
Intergovernmental - - - - - -
Charges for services - 718 718 - - -
Interest on investments 50,000 1,657 (48,343) - 2,151 2,151
Loan repayment 5,000 19,706 14,706 - - -
Other - - - - - -
Total revenue 55,000 22,081 (32,919) 2,791,804 3,709,470 917,666
EXPENDITURES
Other - - - - - -
Debt service:
Principal - - - 1,900,797 2,205,000 (304,203)
Interest and fiscal fees - - - 1,533,007 1,520,363 12,644
Total expenditures - - - 3,433,804 3,725,363 (291,559)
Revenues over (under) expenditures 55,000 22,081 (32,919) (642,000) (15,893) 626,107
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out (4,500,133) - 4,500,133 - - -
Proceeds of long-term debt - - - - - -
Total other financing sources (uses)(4,500,133) - 4,500,133 - - -
Revenues and other sources over (under) expenditures (4,445,133)$ 22,081 4,467,214$ (642,000)$ (15,893) 626,107$
FUND BALANCES, beginning of year 3,579,244 73,164
FUND BALANCES, end of year 3,601,325$ 57,271$
(continued)
G.O. BondsSID Revolving
DRAFT456
156 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance Variance
Favorable Positive
Budget Actual (Unfavorable) Budget Actual (Negative)
REVENUES
Taxes -$ -$ -$ 2,791,804$ 3,707,319$ 915,515$
Special assessments - - - - - -
Intergovernmental - - - - - -
Charges for services - - - - 718 718
Interest on investments - - - 50,000 3,808 (46,192)
Loan repayment - - - 5,000 19,706 14,706
Other - - - - - -
Total revenue - - - 2,846,804 3,731,551 884,747
EXPENDITURES
Other - - - - - -
Debt service:
Principal 249,000 424,000 (175,000) 2,149,797 2,629,000 (479,203)
Interest and fiscal fees 83,448 311,841 (228,393) 1,616,455 1,832,204 (215,749)
Total expenditures 332,448 735,841 (403,393) 3,766,252 4,461,204 (694,952)
Revenues over (under) expenditures (332,448) (735,841) (403,393) (919,448) (729,653) 189,795
OTHER FINANCING SOURCES (USES)
Transfers in 332,448 734,342 401,894 332,448 734,342 401,894
Transfers out - - - (4,500,133) - 4,500,133
Proceeds of long-term debt - - - - - -
Total other financing sources (uses)332,448 734,342 401,894 (4,167,685) 734,342 4,902,027
Revenues and other sources over (under) expenditures -$ (1,499) (1,499)$ (5,087,133)$ 4,689 5,091,822$
FUND BALANCES, beginning of year - 3,652,408
FUND BALANCES, end of year (1,499)$ 3,657,097$
(continued)
TIF Bonds
Debt Service Funds
Total
DRAFT457
157 CITY OF BOZEMAN, MONTANA SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET TO ACTUAL NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2021
Variance
Positive
Budget Actual (Negative)
REVENUES
Intergovernmental -$ -$ -$
Charges for services 90,500 98,889 8,389
Interest on investments 10,000 8,541 (1,459)
Total revenues 100,500 107,430 6,930
EXPENDITURES - BUDGET UNIT - - -
Revenues over (under) expenditures 100,500 107,430 6,930
OTHER FINANCING SOURCES (USES)- - -
Revenues and other sources over
(under) expenditures 100,500$ 107,430 6,930$
FUND BALANCES, beginning of year 1,522,049
FUND BALANCES, end of year 1,629,479$
Cemetery Perpetual Care
Permanent Fund
DRAFT458
COMBINING NONMAJOR PROPRIETARY FUNDS DRAFT459
NONMAJOR PROPRIETARY FUNDS
Parking Fund – Accounts for the City’s parking enforcement and facilities operations. Stormwater Fund – Accounts for the City’s stormwater management and mitigation operations.
Solid Waste Fund – Accounts for the City’s garbage collection service and recycling operations. DRAFT460
158 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF NET POSITION NONMAJOR PROPRIETARY FUNDS June 30, 2021
Solid Parking Stormwater
Waste Fund Fund Fund Total
ASSETS
Current assets
Cash and investments 82,492$ 1,491,742$ 1,386,519$ 2,960,753$
Receivables:
Accrued interest - 2,967 - 2,967
Customers, net 428,808 112,911 137,978 679,697
Special assessments 580 - 520 1,100
Other governments 22,490 - - 22,490
Total current assets 534,370 1,607,620 1,525,017 3,667,007
Non-current assets
Other assets:
Restricted cash and investments 106,840 549,350 58,288 714,478
Total other assets 106,840 549,350 58,288 714,478
Property, plant and equipment, net
Nondepreciable:
Land 228,673 303,436 - 532,109
Construction in progress - - 23,430 23,430
Depreciable:-
Buildings 769,975 11,904,705 24,215 12,698,895
Other structures and improvements 2,155,300 - - 2,155,300
Machinery and equipment 6,664,485 428,507 237,245 7,330,237
Vehicles 536,164 151,122 181,940 869,226
Infrastructure 118,081 47,058 5,736,396 5,901,535
Property under capital lease - - 519,943 519,943
Accumulated depreciation and amortization (7,378,413) (5,183,735) (961,340) (13,523,488)
Net property, plant and equipment 3,094,265 7,651,093 5,761,829 16,507,187
Total non current assets 3,201,105 8,200,443 5,820,117 17,221,665
Deferred outflows of resources
Other post-employment benefits 58,964 13,858 17,790 90,612
Pension plan contributions 317,338 69,403 100,567 487,308
Total deferred outflows of resources 376,302 83,261 118,357 577,920
Total assets 4,111,777$ 9,891,324$ 7,463,491$ 21,466,592$
(continued)
Enterprise Funds
Business-type Activities
DRAFT461
159 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF NET POSITION NONMAJOR PROPRIETARY FUNDS (CONTINUED) June 30, 2021
Solid Parking Stormwater
Waste Fund Fund Fund Total
LIABILITIES
Current liabilities
Accounts payable and accrued expenses 766,001$ 34,374$ 14,645$ 815,020$
Compensated absences payable 94,059 21,479 41,310 156,848$
Due to other city funds - - - -
Capital lease obligations payable in one year - - - -
Closure and post-closure care costs, current portion 310,773 - - 310,773
Bonds and leases payable in one year - - 82,000 82,000
Total current liabilities 1,170,833 55,853 137,955 1,364,641
Noncurrent liabilities
Closure and post-closure care costs 1,175,032 - - 1,175,032
Capital lease obligations - - - -
Revenue bonds due after one year - - 1,280,000 1,280,000
Compensated absences payable 45,998 - - 45,998
Other post-employment health benefits 191,125 54,761 33,763 279,649
Appearance bond and other liabilities - - - -
Net pension liability 1,380,171 301,850 437,388 2,119,409
Total noncurrent liabilities 2,792,326 356,611 1,751,151 4,900,088
Total liabilities 3,963,159 412,464 1,889,106 6,264,729
Deferred inflows of resources
Other post-employment benefits 31,089 10,436 4,537 46,062
Pension deferrals 89,712 19,621 28,431 137,764
Total deferred inflows of resources 120,801 30,057 32,968 183,826
NET POSITION
Net Investment in capital assets 3,094,265 7,651,093 4,399,829 15,145,187
Restricted for impact capital projects - - - -
Restricted for parking capital projects - 130,316 - 130,316
Restricted for debt service - - 58,288 58,288
Unrestricted (3,066,448) 1,667,394 1,083,300 (315,754)
Total net position 27,817 9,448,803 5,541,417 15,018,037
Total liabilities, deferred inflows and net position 4,111,777$ 9,891,324$ 7,463,491$ 21,466,592$
Enterprise Funds
Business-type Activities
DRAFT462
160 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION NONMAJOR PROPRIETARY FUNDS Year Ended June 30, 2021
Solid Parking Stormwater
Waste Fund Fund Fund Totals
OPERATING REVENUES 4,969,868$ 1,005,788$ 1,519,994$ 7,495,650$
OPERATING EXPENSES
Salaries and benefits 1,703,850 329,857 467,987 2,501,694
Materials and supplies 390,251 20,144 14,930 425,325
Repairs and maintenance 315,369 12,550 18,474 346,393
Utilities 710,487 34,418 7,349 752,254
Administrative charges 799,170 92,239 195,024 1,086,433
Other expenses 656,748 293,428 68,990 1,019,166
Depreciation and amortization 439,760 401,057 175,541 1,016,358
Changes in estimated closure and post-
closure care costs (71,349) - - (71,349)
Total operating expenses 4,944,286 1,183,693 948,295 7,076,274
Operating income (loss)25,582 (177,905) 571,699 419,376
NON-OPERATING REVENUES (EXPENSES)
Interest income 3,901 2,313 6,576 12,790
Interest expense - - (37,437) (37,437)
Other income 27,115 16,401 - 43,516
Intergovernmental income 23,984 5,245 7,601 36,830
Gain (loss) on sale of assets 3,000 - - 3,000
Total non-operating revenues (expenses)58,000 23,959 (23,260) 58,699
Income (loss) before contributions and transfers 83,582 (153,946) 548,439 478,075
Contributions of infrastructure - developers - - 497,622 497,622
Transfers in 310,000 124,921 100,000 534,921
Transfers out - - - -
Change in net position 393,582 (29,025) 1,146,061 1,510,618
NET POSITION, beginning of year (365,765) 9,477,828 4,395,356 13,507,419
NET POSITION, end of year 27,817$ 9,448,803$ 5,541,417$ 15,018,037$
Business-type Activities
Enterprise Funds
DRAFT463
161 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF CASH FLOWS - NONMAJOR PROPRIETARY FUNDS Year Ended June 30, 2021
Solid Parking Stormwater
Waste Fund Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,935,932$ 1,007,685$ 1,514,671$ 7,458,288$
Receipts from others 7,625 16,401 - 24,026
Payments to suppliers (2,023,151) (364,124) (133,943) (2,521,218)
Payments to employees (1,556,706) (365,687) (479,076) (2,401,469)
Payments to internal service funds and administrative fees (799,170) (92,239) (195,024) (1,086,433)
Net cash flows from operating activities 564,530 202,036 706,628 1,473,194
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers in 310,000 124,921 100,000 534,921
Receipts from grants and intergovernmental sources 23,984 5,245 7,601 36,830
Net cash flows from non-capital financing activities 333,984 130,166 107,601 571,751
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (1,437,269) (99,775) (289,901) (1,826,945)
Principal paid on bonds, interfund loans, loans and leases - - (135,936) (135,936)
Interest paid on bonds, interfund loans, loans and leases - - (37,437) (37,437)
Net cash flows from capital and related financing activities (1,437,269) (99,775) (463,274) (2,000,318)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 3,901 (654) 6,576 9,823
Net cash flows from investing activities 3,901 (654) 6,576 9,823
Net change in cash and investments (534,854) 231,773 357,531 54,450
Cash and investments, beginning of year 724,186 1,809,319 1,087,276 3,620,781
Cash and investments, end of year 189,332$ 2,041,092$ 1,444,807$ 3,675,231$
(continued) DRAFT464
162 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF CASH FLOWS - NONMAJOR PROPRIETARY FUNDS (CONTINUED) Year Ended June 30, 2021
Solid Parking Stormwater
Waste Fund Fund Fund Total
Cash and investments classified as:
Cash and investments 82,492$ 1,491,742$ 1,386,519$ 2,960,753$
Restricted cash and investments 106,840 549,350 58,288 714,478
Totals 189,332$ 2,041,092$ 1,444,807$ 3,675,231$
Noncash transactions: donated infrastructure -$ -$ 497,622$ 497,622$
RECONCILIATION OF OPERATING LOSS
TO NET CASH FROM OPERATING ACTIVITIES:
Operating income (loss)25,582$ (177,905)$ 571,699$ 419,376$
Adjustments to reconcile operating loss
to net cash from operating activities:
Depreciation and amortization 439,760 401,057 175,541 1,016,358
Change in estimated closure costs (323,723) - - (323,723)
Other income 27,115 16,401 - 43,516
Gain (loss) on sale of assets 3,000 - - 3,000
Change in assets and liabilities:
(Increase) decrease in:
Accounts receivable (33,936) 1,897 (5,323) (37,362)
Other governments receivable (22,490) (22,490)
Increase (decrease) in:
Accounts payable 302,078 (3,584) (24,200) 274,294
Accrued employee benefits payable 25,568 (1,026) 6,491 31,033
Net pension liabilities 121,576 (34,804) (17,580) 69,192
Total adjustments 538,948 379,941 134,929 1,053,818
Net cash from operating activities 564,530$ 202,036$ 706,628$ 1,473,194$ DRAFT465
INTERNAL SERVICE FUND STATEMENTS
DRAFT466
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the goods or services provided by one department to other departments of the City on a cost-reimbursement basis. Vehicle Maintenance Shop – Accounts for the maintenance and repair of vehicles used in operation of City services. Medical Health Insurance – Accounts for insurance premiums received from the various City departments and retirees, and the related costs of health and dental premiums paid to the City’s insurance provider. Public Works Administration – Accounts for the professional level management, engineering, and GIS technical support provided to other Public Works divisions, including water, wastewater, solid waste, stormwater, in addition to support provided to other City departments. DRAFT467
163 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF NET POSITION - INTERNAL SERVICE FUNDS Year Ended June 30, 2021
Vehicle Medical Public
Maintenance Health Works
Shop Insurance Administration Total
ASSETS
Current assets
Cash and equivalents -$ -$ 2,007,636$ 2,007,636$
Customer receivables, net 3,582 16,326 - 19,908
Prepaid expenses - 434,175 - 434,175
Total current assets 3,582 450,501 2,007,636 2,461,719
Property, plant, and equipment
Machinery and equipment 179,932 - 394,114 574,046
Vehicles 85,283 - 112,073 197,356
Buildings 1,424,215 - 121,905 1,546,120
Less: accumulated depreciation (771,867) - (279,966) (1,051,833)
Net property, plant, and equipment 917,563 - 348,126 1,265,689
Deferred outflows of resources
Other post-employment benefits 21,231 - 61,844 83,075
Pension plan contributions 124,249 - 426,403 550,652
Total deferred outflows of resources 145,480 - 488,247 633,727
Total assets and deferred outflows of resources 1,066,625$ 450,501$ 2,844,009$ 4,361,135$
LIABILITIES
Current liabilities
Accounts payable 79,758$ -$ 228,161$ 307,919$
Compensated absences payable 30,834 - 166,543 197,377
Current portion of capital lease obligations - - 7,765 7,765
Due to other city funds 591,578 41,206 - 632,784
Total current liabilities 702,170 41,206 402,469 1,145,845
Non-current liabilities
Other post-employment health benefits 62,124 - 194,209 256,333
Capital lease obligations - - 7,241 7,241
Net pension liability 518,540 - 1,838,958 2,357,498
Total non-current liabilities 580,664 - 2,040,408 2,621,072
Total liabilities 1,282,834 41,206 2,442,877 3,766,917
Deferred inflows of resources
Other post-employment health benefits 9,014 - 28,275 37,289
Pension deferrals 29,087 - 116,246 145,333
Total deferred inflows of resources 38,101 - 144,521 182,622
NET POSITION
Net investment in capital assets 917,563 - 333,120 1,250,683
Unrestricted (1,171,873) 409,295 (76,509) (839,087)
Total net position (254,310) 409,295 256,611 411,596
Total liabilities, deferred inflows of resources and net position 1,066,625$ 450,501$ 2,844,009$ 4,361,135$ DRAFT468
164 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - INTERNAL SERVICE FUNDS Year Ended June 30, 2021
Vehicle Medical Public
Maintenance Health Works
Shop Insurance Administration Total
OPERATING REVENUES 1,645,934$ 5,413,756$ 3,717,328 10,777,018$
OPERATING EXPENSES
Salaries and benefits 706,132 - 2,254,378 2,960,510
Materials and supplies 969,604 - 73,328 1,042,932
Repairs and maintenance 16,080 - 2,961 19,041
Utilities 26,257 - 7,984 34,241
Administrative charges 211,816 - 282,597 494,413
Insurance claims - 5,370,303 - 5,370,303
Other expenses 40,330 76,131 747,091 863,552
Depreciation 57,686 - 62,136 119,822
Total operating expenses 2,027,905 5,446,434 3,430,475 10,904,814
Operating income (loss)(381,971) (32,678) 286,853 (127,796)
NON-OPERATING REVENUES (EXPENSES)
Interest income - - 9,046 9,046
Interest expense (1,726) (388) (1,304) (3,418)
Other income 345 10,792 195 11,332
Intergovernmental income 10,487 - 33,007 43,494
Gain (loss) on sale of assets 4,904 - - 4,904
Total non-operating revenue (expenses)14,010 10,404 40,944 65,358
Income before transfers (367,961) (22,274) 327,797 (62,438)
Transfers in - - - -
Change in net position (367,961) (22,274) 327,797 (62,438)
NET POSITION, beginning of year 113,651 431,569 (71,186) 474,034
NET POSITION, end of year (254,310)$ 409,295$ 256,611$ 411,596$ DRAFT469
165 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS Year Ended June 30, 2021
Vehicle Medical Public
Maintenance Health Works
Shop Insurance Administration Total
CASH FLOWS FROM OPERATIONS
Receipts from customers 1,643,333$ 5,420,955$ 3,717,328$ 10,781,616$
Receipts from others 10,832 10,792 33,202 54,826
Operating loans from other City funds 259,246 (6,505) - 252,741
Payments to suppliers (998,812) (76,131) (594,392) (1,669,335)
Payments to employees (692,760) (5,348,723) (2,232,604) (8,274,087)
Payments to Internal Service Funds and administrative fees (211,816) - (282,597) (494,413)
Net cash flows from operating activities 10,023 388 640,937 651,348
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Additions to property, plant and equipment (13,201) - (132,215) (145,416)
Proceeds from sale of capital assets 4,904 - - 4,904
Proceeds from issuance of long-term debt - - - -
Principal paid on bonds, interfund loans, loans and leases - - (6,459) (6,459)
Interest paid on bonds, interfund loans, loans and leases (1,726) (388) (1,304) (3,418)
Net cash flows from capital and related financing activities (10,023) (388) (139,978) (150,389)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers in - - - -
CASH FLOWS FROM INVESTING ACTIVITIESInterest on investments - - 9,046 9,046
Net increase (decrease) in cash and cash equivalents - - 510,005 510,005
CASH AND EQUIVALENTS, beginning of year - - 1,497,631 1,497,631
CASH AND EQUIVALENTS, end of year -$ -$ 2,007,636$ 2,007,636$
(continued)DRAFT470
166 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDS (CONTINUED) Year Ended June 30, 2021
Vehicle Medical Public
Maintenance Health Works
Shop Insurance Administration Total
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH FROM OPERATING ACTIVITIES
Operating income (loss)(381,971)$ (32,678)$ 286,853$ (127,796)$
Adjustments to reconcile operating income (loss)
to net cash from operating activities:
Depreciation 57,686 - 62,136 119,822
Other income 10,832 10,792 33,202 54,826
Changes in assets and liabilities:
(Increase) decrease in:
Other receivables
Customer receivables (2,601) 7,199 - 4,598
Prepaid expenses - 21,580 - 21,580
Increase (decrease) in:
Accounts payable 8,040 - 94,017 102,057
Due to other city funds 259,246 (6,505) - 252,741
Compensated absences payable 7,587 - 4,804 12,391
Other post-employment health benefits 5,785 - 16,967 22,752
Net pension 45,419 - 142,958 188,377
Total adjustments 391,994 33,066 354,084 779,144
Net cash from operating activities 10,023$ 388$ 640,937$ 651,348$
DRAFT471
FIDUCIARY FUND STATEMENTS
DRAFT472
FIDUCIARY FUNDS
CUSTODIAL FUNDS Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments, and/or other funds. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (or other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. Tourism Business Improvement District – Accounts for amounts collected from hotels on behalf of the District, a special-purpose government, whose purpose is to enhance the economic vitality of Bozeman by promoting tourism through sales and marketing strategies. Municipal Court – Accounts for monies held for appearance bonds and restitution.
DRAFT473
167 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF FIDUCIARY NET POSITION – CUSTOIDAL FUNDS June 30, 2021
Tourism
Municipal Business Improvement Total of
Court District Custodial Funds
ASSETS
Cash and investments 419,607$ 50,170$ 469,777$
Customer receivables 2,607 - 2,607
Total assets 422,214$ 50,170$ 472,384$
LIABILITIES
Accounts payable 425,176 - 425,176
NET POSITION
Restricted for other organization or individuals (2,963) 50,170 47,207
Total liabilities and net position 422,213$ 50,170$ 472,383$ DRAFT474
168 CITY OF BOZEMAN, MONTANA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – CUSTODIAL FUNDS Year Ended June 30, 2021
Tourism
Municipal Business Improvement Total of
Court District Custodial Funds
ADDITIONS
Contributions
Interest income -$ 1,591$ 1,591$
DEDUCTIONS
Miscellaneous 157 - 157
Change in net position (157) 1,591 1,434
NET POSITION - Beginning of Year - - -
Restatements (2,806) 48,579 45,773
NET POSITION - End of Year (2,963)$ 50,170$ 47,207$ DRAFT475
PART III
STATISTICAL SECTION DRAFT476
Statistical Section
This part of the City of Bozeman’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures ad required supplementary information says about the government’s overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. 169 Revenue Capacity These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. 174 Debt Capacity
These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. 185
Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. 194
Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. 196
Sources: Unless otherwise notes, the information in these schedules is derived from the City of Bozeman annual comprehensive financial reports for the relevant
year. DRAFT477
FINANCIAL TRENDS SECTION DRAFT478
169 CITY OF BOZEMAN, MONTANA NET POSITION BY COMPONENT Past Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets 88,500,437$ 89,081,484$ 89,267,076$ 93,409,850$ 104,342,191$ 115,696,956$ 137,058,945$ 155,191,911$ 118,577,368$ 196,931,242$
Restricted 20,797,365 27,255,029 35,621,803 41,755,126 42,829,320 41,583,992 36,522,195 21,202,050 69,208,376 47,281,977
Unrestricted 15,470,543 11,521,053 12,127,224 (5,137,642) (3,923,466) (4,839,467) (5,514,909) 4,799,426 27,280,681 (10,207,301)
Total governmental activities 124,768,345$ 127,857,566$ 137,016,103$ 130,027,334$ 143,248,045$ 152,441,481 168,066,231 181,193,387 215,066,425 234,005,918
Business-type activities
Net investment in capital assets 192,485,459$ 199,394,551$ 205,501,357$ 211,419,777$ 221,385,655$ 229,372,281$ 239,254,236$ 245,190,586$ 260,124,896$ 271,812,360$
Restricted 11,446,886 3,098,125 3,372,927 4,977,984 4,990,635 8,866,951 13,070,517 12,671,931 12,307,565 14,839,596
Unrestricted 2,809,558 10,643,337 8,723,353 6,619,399 10,582,408 9,154,014 12,923,470 21,053,523 25,801,918 23,152,084
Total business-type activities 206,741,903$ 213,136,013$ 217,597,637$ 223,017,160$ 236,958,698$ 247,393,246 265,248,223 278,916,040 298,234,379 309,804,040
Primary government
Net investment in capital assets 280,985,896$ 288,476,035$ 294,768,433$ 304,829,627$ 325,727,846$ 345,069,237$ 376,313,181$ 400,382,497$ 413,581,765$ 468,743,602$
Restricted 32,244,251 30,353,154 38,994,730 46,733,110 47,819,955 50,450,943 49,592,712 33,873,981 81,515,941 62,121,573
Unrestricted 18,280,101 22,164,390 20,850,577 1,481,757 6,658,942 4,314,547 7,408,561 25,852,949 53,082,599 12,944,783
Total primary government net position 331,510,248$ 340,993,579$ 354,613,740$ 353,044,494$ 380,206,743$ 399,834,727$ 433,314,454$ 460,109,427$ 548,180,305$ 543,809,958$
Fiscal Years
DRAFT479
170 CITY OF BOZEMAN, MONTANA CHANGES IN NET POSITION Past Ten Fiscal Years (accrual basis of accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental Activities:
General Government 8,706,665$ 7,373,368$ 6,989,830$ 7,417,644$ 8,058,925$ 9,415,702$ 9,896,366$ 10,310,075$ 9,854,245$ 11,517,404$
Public Safety 13,215,680 14,340,301 15,297,088 17,023,578 18,391,357 17,689,004 18,637,422 19,699,377 20,664,687 22,698,030
Public Service 8,174,461 3,939,061 6,031,768 6,458,930 6,861,939 7,857,917 8,615,272 9,850,802 9,781,345 11,018,661
Public Welfare 7,249,008 6,518,822 7,417,158 7,579,653 7,994,697 9,210,264 9,476,010 9,658,817 10,354,632 13,429,890
Other - - - - - - -
Interest and Fiscal Fees 636,478 433,766 179,280 824,266 893,470 771,714 781,255 786,236 1,763,155 2,105,985
Total Governmental Activities Expenses 37,982,292$ 32,605,318$ 35,915,124$ 39,304,071$ 42,200,388$ 44,944,601$ 47,406,325$ 50,305,307$ 52,418,064$ 60,769,970$
Business-Type Activities:
Water 11,674,222$ 6,154,746$ 6,869,870$ 7,995,910$ 9,273,395$ 9,740,629$ 9,832,508$ 9,984,114$ 9,807,970$ 10,687,976$
Waste Water 10,203,165 6,121,663 8,955,592 6,940,983 8,163,312 8,590,477 8,548,138 9,291,509 9,209,689 10,209,279
Solid Waste 2,584,899 2,475,680 6,958,209 3,308,441 4,570,884 4,262,650 4,535,865 4,739,710 4,665,613 4,991,829
Non-Major Activities 990,229 852,561 966,454 1,098,771 1,300,612 1,827,722 2,011,950 2,043,748 2,355,962 2,194,890
Total Business-Type Activities Expenses 25,452,515$ 15,604,650$ 23,750,125$ 19,344,105$ 23,308,203$ 24,421,478$ 24,928,461$ 26,059,081$ 26,039,234$ 28,083,974$
Total Primary Government Expenses 63,434,807$ 48,209,968$ 59,665,249$ 58,648,176$ 65,508,591$ 69,366,079$ 72,334,786$ 76,364,388$ 78,457,298$ 88,853,944$
Program Revenues
Governmental Activities:
Charges for Services:
General Government 1,949,125$ 1,966,966$ 2,453,015$ 1,947,445$ 2,530,474$ 2,683,016$ 3,139,427$ 3,777,184$ 3,546,689$ 4,380,033$
Public Safety 2,638,811 3,219,231 3,290,573 3,211,911 3,347,859 3,175,257 2,234,994 4,158,560 4,020,453 4,260,366
Public Service 4,983,420 6,655,604 7,623,178 8,784,447 9,310,147 10,342,921 15,531,304 12,189,258 16,522,229 18,836,107
Public Welfare 1,102,896 1,593,212 613,322 1,097,845 1,213,526 1,414,394 1,593,025 1,724,864 1,567,557 5,294,909
Operating Grants and Contributions 566,586 406,239 457,354 2,254,052 2,494,244 2,715,986 3,021,400 5,419,871 7,622,415 12,156,812
Capital Grants and Contributions 635,758 844,935 4,762,416 2,960,051 5,018,559 2,667,352 7,651,008 6,593,221 15,429,642 4,518,830
Total Governmental Activities Program Revenues 11,876,596$ 14,686,187$ 19,199,858$ 20,255,751$ 23,914,809$ 22,998,926$ 33,171,158$ 33,862,958$ 48,708,985$ 49,447,057$
Business-Type Activities
Charges for Services:
Water 7,921,483$ 9,585,939$ 9,842,699$ 9,969,058$ 11,935,016$ 11,166,944$ 12,915,454$ 11,438,495$ 11,913,879$ 13,970,784$
Waste Water 7,488,473 8,560,438 8,852,738 9,008,247 9,283,600 9,668,524 10,686,506 10,445,185 10,671,361 11,691,165
Solid Waste 2,570,644 2,532,676 2,725,465 2,953,414 2,617,243 3,613,721 3,926,123 4,228,099 4,631,523 4,969,868
Non-Major Activities 382,968 644,672 872,325 891,379 3,207,605 2,172,399 2,282,839 2,308,182 2,457,485 2,525,782
Operating Grants and Contributions - - 9,596 123,439 134,946 169,509 134,523 83,264 104,868 243,536
Capital Grants and Contributions:566,138 156,123 5,898,923 6,385,418 11,287,654 7,774,707 9,944,719 8,324,760 13,312,504 5,427,166
Total Business-Type Activities Program Revenues 18,929,706$ 21,479,848$ 28,201,746$ 29,330,955$ 38,466,064$ 34,565,804$ 39,890,164$ 36,827,985$ 43,091,620$ 38,828,301$
Total Primary Government Program Revenues 30,806,302$ 36,166,035$ 47,401,604$ 49,586,706$ 62,380,873$ 57,564,730$ 73,061,322$ 70,690,943$ 91,800,605$ 88,275,358$
Fiscal Year
DRAFT480
171 CITY OF BOZEMAN, MONTANA CHANGES IN NET POSITION (CONTINUED) Past Ten Fiscal Years (accrual basis of accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net (Expense) / Revenue
Governmental Activities (26,105,696)$ (17,919,131)$ (16,715,266)$ (19,048,320)$ (18,285,579)$ (21,945,675)$ (14,235,167)$ (16,442,349)$ (3,709,079)$ (11,322,913)$
Business-Type Activities (6,522,809) 5,875,198 4,060,921 9,986,850 15,157,861 10,144,326 14,961,703 10,768,904 17,052,386 10,744,327
Total Primary Government Net Expense (32,628,505)$ (12,043,933)$ (12,654,345)$ (9,061,470)$ (3,127,718)$ (11,801,349)$ 726,536$ (5,673,445)$ 13,343,307$ (578,586)$
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes
Property Taxes 15,716,055$ 16,429,959$ 17,561,022$ 20,203,718$ 21,234,288$ 21,708,812$ 22,532,724$ 23,823,994$ 28,308,301$ 27,115,391$
Unrestricted Grants and Contributions 6,898,717 6,342,884 7,436,419 7,699,711 7,992,180 8,372,625 6,171,297 4,658,177 4,859,238 4,956,187
Investment Earnings 283,090 243,744 355,790 403,152 519,637 554,870 64,058 1,490,286 1,604,365 428,653
Miscellaneous 155,484 - 293,884 374,966 418,215 1,317,137 2,320,536 1,009,437 1,128,061 (1,722,976)
Gain (Loss) on sale of assets 4,414 1,765 236,688 - 123,934 (71,335) 28,861 167,291 16,862 20,072
Transfers of Capital Assets (2,088) - - - - -
Transfers (37,136) (10,000) (10,000) (410,016) 1,218,036 (742,999) (758,084) (475,000) (546,353) (534,921)
Extraordinary Items - - - - -
Total Governmental Activities 23,018,536$ 23,008,352$ 25,873,803$ 28,271,531$ 31,506,290$ 31,139,110$ 30,359,392$ 30,674,185$ 35,370,474$ 30,262,406$
Business-Type Activities:
Unrestricted Grants and Contributions 2,115$ 508,912$ -$ -$ -$ -$ -$ -$ -$ -$
Investment Earnings - - - - - 304,231 3,389 1,010,849 846,331 38,987
Transfers of Capital Assets 2,088 - - - - - - - - -
Miscellaneous - - - - - 1,256,284 2,529,824 362,631 518,162 233,508
ARRA Debt Forgiveness - - 390,700 - - - - - - -
Gain (Loss) on sale of assets - - - - - (2,013,292) 10,005 (172,428) 4,012 17,918
Transfers 37,136 10,000 10,000 380,347 (1,218,036) 742,999 758,084 475,000 546,353 534,921
Total Business-Type Activities 41,339 518,912 400,700 380,347 (1,218,036) 290,222 3,301,302 1,676,052 1,914,858 825,334
Total Primary Government 23,059,875 23,527,264 26,274,503 28,651,878 30,288,254 31,429,332 33,660,694 32,350,237 37,285,332 31,087,740
Restatement of Beginning Net Position
Governmental Activities -$ -$ -$ -$ -$ -$ -$ (1,104,680)$ 2,211,643$ -$
Business-Type Activities - - - - - - - 1,222,861 351,095 -
Total Primary Government -$ -$ -$ -$ -$ -$ -$ 118,181$ 2,562,738$ -$
Change in Net Position
Governmental Activities (3,087,160)$ 5,089,221$ 9,158,537$ 9,223,211$ 13,220,711$ 9,193,435$ 16,124,225$ 13,127,156$ 33,873,038$ 18,939,493$
Business-Type Activities (6,481,470) 6,394,110 4,461,621 10,367,197 13,939,825 10,434,548 18,263,005 13,667,817 19,318,339 11,569,661
Total Primary Government (9,568,630)$ 11,483,331$ 13,620,158$ 19,590,408$ 27,160,536$ 19,627,983$ 34,387,230$ 26,794,973$ 53,191,377$ 30,509,154$
Fiscal Year
DRAFT481
172 CITY OF BOZEMAN, MONTANA FUND BALANCE - GOVERNMENT FUNDS Past Ten Fiscal Years (modified accrual basis of accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Unreserved - - - - - - - - - -
Nonspendable - - - - - - - - - -
Restricted - - - - - - - - - -
Committed - - - - - - - - - -
Assigned 7,062,964 7,327,375 6,420,760 6,061,965 5,541,841 6,402,882 7,739,020 7,739,582 8,110,313 9,183,265
Unassigned 264,091 - 193,534 - 979,258 87,274 (274,252) - 1,030,550 -
Total general fund 7,327,055$ 7,327,375$ 6,614,294$ 6,061,965$ 6,521,099$ 6,490,156$ 7,464,768$ 7,739,582$ 9,140,863$ 9,183,265$
All Other Governmental
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Unreserved, reported in:
Special revenue funds - - - - - - - - - -
Capital projects funds - - - - - - - - - -
Debt service funds - - - - - - - - - -
Nonspendable 1,113,484 1,193,530 1,269,557 2,061,790 1,426,575 1,533,338 1,623,816 1,735,591 1,796,174 1,884,479
Restricted 19,683,881 26,061,499 19,927,526 12,546,935 39,856,356 38,938,127 34,403,744 23,129,241 65,273,723 61,818,904
Committed 3,463,714 851,322 3,075,505 3,088,936 3,528,263 3,901,694 3,856,238 4,279,091 4,328,163 3,621,644
Assigned - - 229,602 - 7,425,398 7,259,749 1,868,485 1,293,436 578,852 96,473
Unassigned (51,586) 456,669 (184,101) (97,173) 914,535 107,103 (42,648) 8,731,534 (125,584) 662,773
Total all other governmental funds 24,209,493$ 28,563,020$ 24,318,089$ 17,600,488$ 53,151,127$ 51,740,011$ 41,709,635$ 39,168,893$ 71,851,328$ 68,084,273$
Note: The City of Bozeman implemented the new standards for reporting fund balance GASB Statement 54 in fiscal year 2011
Fiscal Year
DRAFT482
173 CITY OF BOZEMAN, MONTANA CHANGES IN FUND BALANCES - GOVERNMENT FUNDS Past Ten Fiscal Years (modified accrual basis of accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes 16,057,318 16,540,972 17,385,371 20,404,236 21,303,074 21,682,667$ 22,553,972$ 23,788,018$ 28,321,349$ 26,973,106$
Special assessments 1,898,007 1,752,615 2,011,944 1,578,855 1,265,954 1,163,275$ 1,137,103$ 1,116,925$ 1,390,355$ 1,676,909$
Licenses and permits 1,214,705 1,629,744 1,784,282 1,827,842 2,112,090 2,092,673$ 2,541,727$ 2,392,081$ 2,524,368$ 2,902,616$
Intergovernmental 7,697,637 7,586,007 8,208,770 8,562,937 8,920,424 8,956,044$ 9,419,104$ 10,488,662$ 12,600,824$ 15,297,152$
Charges for service 6,891,594 8,806,969 9,656,123 10,629,791 12,283,683 13,743,830$ 17,885,529$ 16,987,622$ 20,142,910$ 24,847,833$
Fines and forfeitures 1,364,617 1,394,652 1,411,162 1,305,166 1,253,705 1,256,525$ 1,240,154$ 1,234,324$ 1,199,601$ 1,168,880$
Interest on investments 281,239 239,778 329,086 370,305 479,699 520,690$ 34,709$ 1,439,743$ 1,343,201$ 155,647$
Loan repayment 306,385 157,069 63,980 94,989 38,552 31,837$ 25,827$ 31,695$ 44,930$ 38,276$
Other 155,484 394,677 287,089 363,274 415,646 1,307,668$ 2,313,097$ 995,553$ 1,790,144$ 1,766,620$
Total revenues 35,866,986 38,502,483 41,137,807 45,137,395 48,072,827 50,755,209 57,151,222 58,474,623 69,357,682 74,827,039
Expenditures
General government 6,266,566 7,276,839 6,138,575 6,594,474 7,318,539 7,643,886 8,268,285 8,782,078 9,280,183 10,449,026
Public safety 12,513,270 13,822,691 14,637,886 15,086,695 16,485,549 16,812,131 17,602,966 18,005,944 19,598,592 19,778,375
Public service 2,738,066 2,805,612 3,498,770 3,786,283 3,840,405 4,422,771 4,955,559 5,774,783 5,376,499 5,868,383
Public welfare 6,184,073 6,216,387 6,678,347 7,366,955 7,245,425 7,654,059 7,975,354 8,339,885 9,046,331 11,690,142
Other - 15,776 1,046,712 1,113,340 418,431 506,169 655,532 728,642 665,517 3,500,760
Capital outlay 3,881,388 2,782,435 8,053,456 9,905,333 9,337,470 12,468,020 18,420,501 19,106,110 24,265,809 32,608,736
Debt service -
Principal 3,235,664 1,826,126 1,482,142 1,121,593 1,345,250 1,422,555 1,500,687 1,635,369 6,639,947 3,188,603
Interest & Fiscal Fees 666,082 445,736 380,950 824,266 893,470 771,714 718,597 786,238 1,763,155 2,105,985
Total expenditures 35,485,109 35,191,602 41,916,838 45,798,939 46,884,539 51,701,305 60,097,481 63,159,049 76,636,033 89,190,010
Excess of revenues
over (under) expenditures 381,877 3,310,881 (779,031) (661,544) 1,188,288 (946,096) (2,946,259) (4,684,426) (7,278,351) (14,362,971)
Other Financing Sources (Uses)
Proceeds from borrowing - - - - -
Transfers in 3,482,550 4,291,417 3,103,787 4,816,671 6,483,413 3,950,059 4,394,277 4,202,825 8,867,568 5,976,400
Transfers out (3,821,010) (4,454,505) (3,113,787) (5,197,018) (5,496,492) (4,693,058) (5,152,361) (4,677,825) (9,413,920) (6,511,321)
Issuance of debt 3,357,798 1,203,279 10,012,647 5,619,361 47,406 234,702 1,103,586 2,859,598 41,878,844 10,501,000
Premium on Bonds Issued - - - - - - - - - 649,009
Payments to Refunded Bond Escrow Agent (3,120,000) - - - - - - - - -
Sales of capital assets 59,204 2,775 243,092 64,855 227,984 43,277 35,144 33,898 29,567 23,744
Total other financing sources (uses)(41,458) 1,042,966 10,245,739 5,303,869 1,262,311 (465,020) 380,646 2,418,496 41,362,059 10,638,832
Extraordinary items
Net change in fund balances 340,419$ 4,353,847$ 9,466,708$ 4,642,325$ 2,450,599$ (1,411,116)$ (2,565,613)$ (2,265,930)$ 34,083,708$ (3,724,139)$
Debt service as a percentage of 12.3%7.0%5.5%5.4%6.0%5.6%5.3%5.5% 16.0%9.4%
noncapital expenditures
Fiscal Year
DRAFT483
REVENUE CAPACITY SECTION
DRAFT484
174 CITY OF BOZEMAN, MONTANA ASSESSED VALUE OF TAXABLE PROPERTY Past Ten Fiscal Years
Fiscal Total Total Assessed Taxable
Year Taxable Direct Total Value ** as a
Ended Residential Commercial & Other Assessed Tax Market Percentage of
June 30,Property Industrial Property Property Value **Rate Value *Total Market Value
2011 45,023,440 30,551,620 4,823,940 80,399,000 168.75 2,827,548,097 2.843%
2012 45,954,720 31,183,560 4,923,720 82,062,000 166.75 2,994,740,226 2.740%
2013 46,606,560 31,625,880 4,993,560 83,226,000 166.75 3,176,282,865 2.620%
2014 47,956,720 32,542,060 5,138,220 85,637,000 173.08 3,386,295,608 2.529%
2015 50,978,520 31,641,840 5,273,640 87,894,000 188.76 3,598,269,877 2.443%
2016 50,899,738 29,864,642 5,799,800 86,564,180 210.16 5,698,588,679 1.519%
2017 52,777,954 30,966,657 6,013,815 89,758,426 205.30 5,870,738,906 1.529%
2018 56,952,419 37,199,199 7,043,156 101,194,775 187.33 6,745,351,312 1.500%
2019 58,712,093 38,348,553 7,260,771 104,321,416 191.24 6,981,943,409 1.494%
2020 70,588,175 46,105,567 8,729,455 125,423,197 187.70 8,596,253,775 1.459%
2021 87,432,389 57,107,580 10,812,534 155,352,503 165.62 10,724,564,866 1.449%
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property in Gallatin County is reassessed by the State Department of Revenue every two years.
* Sales price of property is not public record in the State of Montana, so the Total Market Value was used instead
** Includes tax-exempt property DRAFT485
175 CITY OF BOZEMAN, MONTANA CITY TAXABLE MARKET AND TAXABLE VALUES Past Ten Fiscal Years
Fiscal Net Taxable Value
Year Incremental Value (excludes Tax Taxable Value
Ended Taxable Full for All Tax Increment Districts for Open Space
June 30,Market Value Taxable Value Increment Districts Incremental Values)Purposes
2012 2,994,740,226 85,345,227 3,282,766 82,062,461 n/a *
2013 3,176,282,865 86,934,533 3,708,138 83,226,395 n/a *
2014 3,386,295,608 89,650,917 4,013,561 85,637,356 85,615,328
2015 3,598,269,877 92,081,322 4,186,781 87,894,541 90,735,030
2016 5,698,588,679 90,787,797 4,223,617 86,564,180 91,973,923
2017 5,870,738,906 94,102,761 4,344,335 89,758,426 93,212,816
2018 6,745,351,312 106,224,806 5,030,031 101,194,775 105,727,520
2019 6,981,943,409 109,713,782 5,392,366 104,321,416 191,152,592
2020 8,596,253,775 133,582,036 8,158,839 125,423,197 133,391,037
2021 10,724,564,866 166,838,141 11,485,638 155,352,503 137,765,762
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is assessed by the State Department of Revenue every two years.
* No certified value available, first certification available for FY2014
DRAFT486
176 CITY OF BOZEMAN, MONTANA TAX INCREMENT DISTRICT TAXABLE VALUATION DETAIL Past Ten Fiscal Years
Fiscal
Year
Ended Base Incremental Total Base Incremental Total Base Incremental Total
June 30,Taxable Taxable Taxable Taxable Taxable Taxable Taxable Taxable Taxable
2012 1,328,695 2,251,286 3,579,981 423,054 133,197 556,251 2,886,997 840,137 3,727,134
2013 1,328,695 2,396,293 3,724,988 423,054 150,217 573,271 2,886,997 1,084,216 3,971,213
2014 1,328,695 2,586,963 3,915,658 423,054 172,608 595,662 2,886,997 1,193,297 4,080,294
2015 1,328,695 2,718,220 4,046,915 423,054 190,579 613,633 2,886,997 1,225,604 4,112,601
2016 1,328,695 2,898,551 4,227,246 423,054 214,470 637,524 2,886,997 1,055,385 3,942,382
2017 1,328,695 3,068,902 4,397,597 423,054 193,281 616,335 3,473,127 1,003,546 4,476,673
2018 1,328,695 3,769,917 5,098,612 423,054 223,765 646,819 3,507,723 948,746 4,456,469
2019 1,328,695 4,159,996 5,488,691 423,054 229,047 652,101 3,507,723 982,574 4,490,297
2020 1,328,695 5,987,410 7,316,105 423,054 457,274 880,328 3,507,723 1,714,155 5,221,878
2021 1,328,695 6,247,663 7,576,358 423,054 477,252 900,306 3,507,723 1,707,571 5,215,294
Fiscal
Year
Ended Base Incremental Total Base Incremental Total Base Incremental Total
June 30,Taxable Taxable Taxable Taxable Taxable Taxable Taxable Taxable Taxable
2012 - - - 4,638,746 3,224,620 7,863,366
2013 - - - 4,638,746 3,630,726 8,269,472
2014 417 - 417 4,639,163 3,952,868 8,592,031
2015 417 3 420 4,639,163 4,134,406 8,773,569
2016 417 - 417 4,639,163 4,168,406 8,807,569
2017 417 - 283 5,225,293 4,265,729 9,491,022
2018 417 - 305 5,259,889 4,942,428 10,202,317
2019 244,332 20,749 265,081 417 - 305 5,504,221 5,392,366 10,896,587
2020 244,332 - 242,439 417 - 327 5,504,221 8,158,839 13,661,077
2021 244,332 - 244,332 417 - 417 5,504,221 8,432,486 13,936,707
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is assessed by the State Department of Revenue every two years.
*Previously North 7th Corridor
*New district created in FY19
NORTH PARK URBAN RENEWAL**BOZEMAN TECHNOLOGY TOTAL
BOZEMAN DOWNTOWN NORTHEAST URBAN RENEWAL DISTRICT BOZEMAN MIDTOWN*
DRAFT487
177 CITY OF BOZEMAN, MONTANA DOWNTOWN BOZEMAN IMPROVEMENT DISTRICT & COMPARISON TO CITY TAXABLE VALUE Past Ten Fiscal Years
Fiscal Taxable City Taxable Value The District's
Year Market Value Taxable Value of Incremental (Excluding ALL tax Incremental Taxable
Ended of Property in Property in the Taxable increment district Value as Percentage of
June 30,the District District Value valuations)City's Taxable Value
2012 129,285,686 3,579,981 2,251,286 82,062,461 2.74%
2013 142,099,662 3,724,988 2,396,293 83,226,395 2.88%
2014 153,063,721 3,915,658 2,586,963 85,367,356 3.03%
2015 190,128,511 4,046,915 2,718,220 87,894,541 3.09%
2016 259,138,001 4,227,246 2,898,551 86,564,180 3.35%
2017 265,793,431 4,397,597 3,068,902 89,758,426 3.42%
2018 297,005,720 5,098,612 3,769,917 101,194,775 3.73%
2019 319,728,707 5,488,691 4,159,996 104,321,416 3.99%
2020 447,565,041 7,316,105 5,987,410 125,423,197 4.77%
2021 465,530,358 9,222,257 6,247,663 155,352,503 4.02%
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is assessed by the State Department of Revenue every two years.
Downtown Bozeman Improvement District
DRAFT488
178 CITY OF BOZEMAN, MONTANA PROPERTY TAX LEVIES IN THE DOWNTOWN BOZEMAN IMPROVEMENT DISTRICT Past Ten Fiscal Years
Taxing Entity 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Statewide School Equalization 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00
Gallatin County Operating and Bond 88.69 87.40 88.38 89.55 99.77 100.41 91.23 98.87 91.17 97.59
Open Space Bond 5.99 4.89 4.90 4.95 5.03 5.85 5.13 4.69 3.90
County-Wide School 95.61 96.47 101.28 99.94 106.85 105.39 99.67 102.44 96.45 96.74
Bozeman High School District 73.48 71.81 73.16 72.97 76.76 77.25 73.10 108.95 92.77 97.61
Bozeman Elementary School District 123.38 131.45 145.25 143.70 151.15 154.81 146.92 142.63 125.90 121.74
City of Bozeman 166.75 166.75 173.08 188.76 210.16 205.30 187.33 191.24 187.70 169.53
TOTAL 593.90 598.77 626.05 639.87 689.72 689.01 643.38 688.82 637.89 623.21
Exempt from Tax Increment
University Millage 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00
Gallatin Conservation District 1.00 0.98 0.97 0.95 1.05 1.01 0.89 0.91 0.77
County-Wide Planning 2.40 2.39 2.39 2.35 2.39 2.39 2.48 2.50 2.22 1.48
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is assessed by the State Department of Revenue every six years and beginning in 2017 every two years.
Fiscal Year
DRAFT489
179 CITY OF BOZEMAN, MONTANA DIRECT AND OVERLAPPING PROPERTY TAX RATES Past Ten Fiscal Years (rate per $1,000 of assessed value)
Fiscal General Total
Year Obligation Direct Bozeman
Ended Basic Debt Tax School Gallatin State of
June 30,Rate Service Rate District County Montana
2012 157.19 9.56 166.75 196.86 215.77 46.00
2013 158.38 8.37 166.75 203.26 215.10 46.00
2014 164.83 8.25 173.08 218.41 221.00 46.00
2015 177.52 11.24 188.76 216.67 215.78 46.00
2016 194.51 15.65 210.16 227.91 241.69 46.00
2017 190.17 15.13 205.30 232.06 241.69 46.00
2018 173.92 13.41 187.33 220.02 223.33 46.00
2019 178.22 13.02 191.24 251.58 206.00 46.00
2020 162.45 25.63 188.08 218.67 191.52 46.00
2021 136.87 28.75 165.62 219.35 194.33 46.00
Source: Based on information provided by Gallatin County and Department of Revenue
DRAFT490
180 CITY OF BOZEMAN, MONTANA PRINCIPAL PROPERTY TAX PAYERS Current Year and Ten Years Ago
Percentage Percentage
of Total City of Total City
Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Northwestern Energy - Transmission & Distribution 6,339,111 1 4.75%3,102,385 1 3.84%
CCC Bozeman LLC 761,000 2 0.57%
Verizon Inc 625,712 3 0.47%
Charter Communications Inc (formerly Bresnan)545,175 4 0.41%1,053,442 3 1.30%
Harry Daum - Gallatin Mall 532,374 5 0.40%515,630 5 0.64%
GKT Bozeman Gateway LLC & 514,332 6 0.39%
NB Stadium View DST 483,105 7 0.36%
Springs VII at Bozeman LLC 476,646 8 0.36%
Stone Ridge Partners LLC 423,867 9 0.32%362,604 7 0.45%
REVESCO (USA) Properties of Bozeman LP 413,802 10 0.31%
Bridger Peaks Holding LLC 401,003 11 0.30%328,509 8 0.41%
Baxter Meadows Apartments LLC 372,792 12 0.28%
J & D Family Limited Partnership 370,113 13 0.28%
Crestview Lake LLC 367,506 14 0.28%
Centurylink, Inc. (Qwest)353,427 15 0.26%1,117,377 2 1.38%
Bozeman Health Deaconess Hospital 335,546 16 0.25%
G25 Holdings LLC 329,206 17 0.25%
Etha Hotel LLC 320,008 18 0.24%
COSTCO Wholesale Corporation 316,499 19 0.24%
Cannery District Partners LLC 298,319 20 0.22%
SNH/LTA Properties Trust 293,589 21 0.22%
Wal-Mart Stores 293,456 22 0.22%374,454 6 0.46%
State of Montana 282,414 23 0.21%
Bridge Embassy House LP 268,337 24 0.20%
Highgate Bozeman LLC 260,213 25 0.19%325,730 9 0.40%
Celloco Partnership 582,609 4 0.72%
BVI/HJSI Bozeman LLC 319,807 10 0.40%
Total 15,977,552$ 11.96%8,082,547$ 10.01%
Total City Taxable Assessed Value 133,582,036$ 78,290,000$
2021 2012
DRAFT491
181 CITY OF BOZEMAN, MONTANA PRINCIPAL PROPERTY TAX PAYERS IN DOWNTOWN BOZEMAN IMPROVEMENT DISTRICT Current Year and Prior Year
Percentage Percentage
of Total City of Total City
Total Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Business Value Rank Value Value Rank Value
G25 HOLDINGS LLC Property Investor/Developer 329,206 1 4.37%329,206 1 4.51%
ETHA Hotel LLC Property Investor/Developer 320,008 2 4.25%
First Security Bank Bank 257,915 3 3.42%258,837 2 3.55%
5 West LLC Multi Tenant Commercial/Residential Buildling 167,052 4 2.22%167,052 3 2.29%
F&H, LLC Property Investor/Developer 141,830 5 1.88%141,830 4 1.94%
Moose Point LP Commercial Property Developer 127,363 6 1.69%127,363 5 1.75%
Atlantic Financial Group Ltd.Bank 124,416 7 1.65%124,416 6 1.70%
777 Building Multi Tenant Office Retail Building 121,198 8 1.61%121,198 7 1.66%
M & J Cowdrey LLC Property Investor/Developer 110,165 9 1.46%110,165 8 1.51%
Downtowner Group LLC Business Support Services 108,936 10 1.45%108,936 9 1.49%
Glacier Bank Bank 107,196 11 1.42%
Masonic Temple Inc of Bozeman Event Space 100,428 12 1.33%100,428 10 1.38%
Total 2,015,713$ 26.77%1,589,431$ 21.78%
Total Downtown BID Taxable Assessed Value 7,530,386$ 7,297,724$
20202021
DRAFT492
182 CITY OF BOZEMAN, MONTANA PROPERTY TAX LEVIES AND COLLECTIONS Past Ten Fiscal Years
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years Amount of Levy
2012 13,683,839 13,108,003 95.79%454,515 13,562,518 99.11%
2013 13,878,293 13,633,347 98.24%201,182 13,834,529 99.68%
2014 14,821,724 14,482,502 97.71%219,735 14,702,237 99.19%
2015 16,590,871 16,559,270 99.81%31,601 16,590,871 100.00%
2016 18,191,892 18,009,556 99.00%68,812 18,078,368 99.38%
2017 18,338,501 18,069,230 98.53%90,643 18,159,873 99.03%
2018 18,956,357 18,791,653 99.13%53,429 18,845,082 99.41%
2019 19,950,675 19,940,784 99.95%9,891 19,950,675 100.00%
2020 23,589,506 23,381,671 99.12%207,835 23,589,506 100.00%
2021 21,454,058 21,017,696 97.97%- 21,017,696 97.97%
Source:Gallatin County
City Manager's Final Adopted Budget
Collected within the
Fiscal Year of the Levy Total Collections to Date
DRAFT493
183 CITY OF BOZEMAN, MONTANA WATER SOLD BY TYPE OF CUSTOMER Past Ten Fiscal Years (in hundreds of cubic feet “HCF”)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Type of Customer
Residential 1,323,816 1,513,986 1,433,833 1,385,140 1,493,192 1,601,439 1,623,881 1,556,249 1,546,308 1,788,984
Government 49,349 59,589 52,448 53,165 51,923 56,956 75,001 54,270 103,536 73,416
MSU 235,965 233,484 213,698 210,107 208,618 225,394 217,967 238,968 178,368 171,840
Commercial 602,352 638,337 607,444 599,193 610,741 620,761 618,398 627,116 506,868 590,076
Total 2,211,481 2,445,396 2,307,423 2,247,605 2,364,473 2,504,550 2,535,247 2,476,603 2,335,080 2,624,316
Total direct rate 2,887.40$ 2,955.66$ 3,053.40$ 3,105.14$ 3,175.41$ 3,256.72$ 3,337.92$ 3,508.94$ 3,757.07$ 3,697.72$
per 1,000 HCF
Source: City of Bozeman Finance Department
Fiscal Year
DRAFT494
184 CITY OF BOZEMAN, MONTANA WATER AND SEWER RATES Past Ten Fiscal Years
Fiscal
Year Monthly Rate per Monthly Rate per
Ended Base 1,000 Base 1,000
June 30,Rate Gallons Rate Gallons
2011 13.42$ 21.02$ 14.73$ 24.41$
2012 14.02$ 21.96$ 15.61$ 25.87$
2013 14.65$ 22.95$ 16.55$ 27.42$
2014 14.65$ 22.95$ 17.56$ 29.10$
2015 14.65$ 22.95$ 17.56$ 29.10$
2016 15.02$ 23.53$ 18.09$ 29.98$
2017 15.39$ 24.11$ 18.63$ 30.87$
2018 15.70$ 24.60$ 19.01$ 31.50$
2019 16.17$ 25.33$ 19.58$ 32.45$
2020 16.17$ 25.33$ 19.58$ 32.45$
2021 16.17$ 25.33$ 19.58$ 32.45$
* For Residential Customers, using 5/8 inch meter size.
Sources:City of Bozeman, Montana Commission Resolution 4327
City of Bozeman, Montana Commission Resolution 4328
City of Bozeman, Montana Commission Resolution 4454
City of Bozeman, Montana Commission Resolution 4626 & 4627
City of Bozeman, Montana Commission Resolution 4819 & 4820
City of Bozeman, Montana Commission Resolution 4927 & 4928
City of Bozeman, Montana Commission Resolution 5065 & 5066
City of Bozeman, Montana Commission Resolution 5273 & 5274
Water Sewer
DRAFT495
DEBT CAPACITY
DRAFT496
185 CITY OF BOZEMAN, MONTANA RATIOS OF OUTSTANDING DEBT BY TYPE Past Ten Fiscal Years
Fiscal
Year General Sports Special Tax Increment Water Wastewater Stormwater Total PercentageEndedObligationBond Notes Capital Park Assessment Financing Revenue State of MT Revenue Capital Primary of Personal Per
June 30,Bonds Premiums Payable Leases Loan Payable Bonds Bonds Bonds RLF Loans Bond Leases Government Income Capita
2012 3,080,000 306,727 203,860 2,269,500 5,370,000 182,577 23,853,427 - - 35,266,091 4.39%925.23$
2013 2,445,000 1,198,823 149,892 1,659,500 5,195,000 13,751,878 22,501,119 - - 46,901,212 5.56% 1,210.26$ 2014 11,685,000 1,086,396 94,176 1,185,500 5,015,000 18,140,000 21,025,565 - - 58,231,637 6.83% 1,498.50$
2015 16,320,000 262,425 963,274 295,912 890,500 4,825,000 17,365,000 19,972,565 229,750 434,598 61,559,024 7.25% 1,477.65$ 2016 15,570,000 248,967 884,844 249,501 662,500 4,630,000 16,567,000 18,930,565 1,440,430 363,749 59,547,556 7.01% 1,371.91$
2017 14,710,000 235,509 902,500 270,492 501,000 4,425,000 15,760,000 17,856,000 1,367,430 290,538 56,318,469 6.13% 1,244.61$ 2018 13,835,000 222,051 763,588 463,535 406,000 5,018,931 19,107,497 16,368,000 1,292,430 214,887 57,691,920 5.80% 1,238.13$
2019 12,940,000 208,593 937,009 651,453 1,700,000 171,500 5,338,811 21,001,000 15,229,000 1,520,000 183,591 59,880,957 5.71% 1,233.84$ 2020 45,445,000 3,778,566 781,079 404,043 1,700,000 139,500 4,733,238 19,791,000 14,057,000 1,442,000 71,077 92,342,503 7.22% 1,853.11$
2021 43,240,000 4,198,474 609,577 310,270 1,637,117 3,948,216 10,763,655 18,547,000 24,582,587 1,362,000 10,585 109,209,481 7.84% 2,049.23$
Sources:City Manager's Final Adopted Budget
City of Bozeman Finance Department
Governmental Activities Business-Type Activities
DRAFT497
186 CITY OF BOZEMAN, MONTANA RATIOS OF GENERAL BONDED DEBT OUTSTANDING Past Ten Fiscal Years
Percentage of
Fiscal Actual
Year General Tax Increment Taxable
Ended Obligation Bond Financing District Value of Per
June 30,Bonds Premiums Bonds Total Property Capita
2011 3,710,000 5,535,000 9,245,000 11.5%247.76$
2012 3,080,000 5,370,000 8,450,000 10.3%221.69$
2013 2,445,000 5,195,000 7,640,000 9.2%197.15$
2014 11,685,000 5,015,000 16,700,000 19.5%429.75$
2015 16,320,000 262,425 4,825,000 21,145,000 24.1%507.56$
2016 15,570,000 428,967 4,630,000 20,200,000 23.3%465.38$
2017 14,710,000 235,509 4,425,000 19,135,000 21.3%422.87$
2018 13,835,000 222,051 4,926,931 18,761,931 18.5%402.65$
2019 12,940,000 208,593 5,338,811 18,278,811 17.5%376.63$
2020 45,445,000 3,785,489 4,733,238 50,178,238 40.0%1,006.97$
2021 43,240,000 4,198,474 10,763,655 54,003,655 34.8%1,013.33$
Source:City Manager's Final Adopted Budget
Debt Outstanding is reduced by cash held for bond reserves for the purposes of this table
General Bonded Debt Outstanding
DRAFT498
187 CITY OF BOZEMAN, MONTANA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Debt Estimated
Outstanding Estimated Share of
as of Percentage Overlapping
June 30, 2021 Applicable (1)Debt
Overlapping Bonded Indebtedness
Gallatin County:
Various issues outstanding $24,175,000 37%8,889,685$
Bozeman School District #7:
Various issues outstanding 188,484,555$ 33%61,650,259$
Subtotal overlapping debt 70,539,944$
City of Bozeman, Montana
Direct Debt 64,707,309$ 100%64,707,309$
Total Direct & Overlapping Debt 135,247,252
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of Bozeman. This process recognizes that, when considering the City's ability to issue and repay long-term debt,
the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply
that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages
were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's
boundaries and dividing it by each entity's total taxable assessed value.
Sources:
City of Bozeman Finance Department
Gallatin County Assessor's Office
Bozeman School District #7DRAFT
499
188 CITY OF BOZEMAN, MONTANA LEGAL DEBT MARGIN INFORMATION Past Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Debt limit*74,875,000 76,450,000 84,657,000 84,500,000 142,464,717 147,500,000 168,633,783 174,548,585 214,906,344 268,114,122
Total net debt applicable to limit (11,230,087)$ (10,648,215)$ (19,066,072)$ (23,557,111)$ (22,245,812)$ (21,044,501)$ (20,709,106)$ (21,947,366)$ (57,148,561)$ (64,707,309)$
Legal debt margin 63,644,913$ 65,801,785$ 65,590,928$ 60,942,889$ 120,218,905$ 126,455,499$ 147,924,677$ 152,601,219$ 157,757,783$ 203,406,813$
Total net debt applicable to the limit 15.0% 13.9% 22.5% 27.9% 15.6% 14.3% 12.3% 12.6% 26.6% 24.1%
as a percentage of debt limit
*2.5% of total market value of taxable property of $8.6 Billion per MCA 2019 7-7-4201
Source: City Manager's Final Adopted Budget
Fiscal Years
DRAFT500
189 CITY OF BOZEMAN, MONTANA PLEDGED REVENUE COVERAGE Past Ten Fiscal Years
Fiscal
Year Utility Less:Special
Ended Service Operating Assessment
June 30,Charges Expenses Principal Interest Coverage Collections Principal Interest Coverage
2012 6,814,990 (4,063,529) (159,000) (6,405) 2,586,056 858,699 (2,082,000) (192,320) (1,415,621)
2013 7,806,922 (4,364,506) (502,000) (163,250) 2,777,166 820,090 (650,975) (103,198) 65,917
2014 7,871,386 (4,405,464) (751,000) (429,438) 2,285,484 1,054,483 (474,000) (73,760) 506,723
2015 7,748,913 (4,973,926) (775,000) (538,425) 1,461,562 586,116 (295,000) (50,070) 241,046
2016 8,414,870 (6,176,752) (798,000) (515,010) 925,108 705,143 (228,000) (39,343) 437,800
2017 9,281,821 (6,589,396) (822,000) (490,890) 1,379,535 558,988 (161,500) (30,335) 367,153
2018 10,157,888 (6,494,121) (1,141,000) (530,881) 1,991,886 506,819 (95,000) (23,221) 388,598
2019 9,396,171 (6,525,730) (1,176,000) (578,954) 1,115,487 518,351 (234,500) (18,740) 265,111
2020 9,852,377 (6,848,489) (1,210,000) (587,350) 1,206,538 775,230 (32,000) (26,434) 716,796
2021 11,027,542 (6,878,458) (1,244,000) (552,156) 2,352,928 975,387 (192,284) (135,114) 647,989
Fiscal
Year Utility Less:
Ended Service Operating
June 30,Charges Expenses Principal Interest Coverage
2012 6,385,404 (3,784,420) (883,000) (857,842) 860,141
2013 6,916,226 (3,947,821) (1,465,227) (847,778) 655,400
2014 7,204,486 (5,895,751) (1,084,854) (660,771) (436,891)
2015 7,631,117 (3,914,454) (1,053,000) (632,268) 2,031,395
2016 7,927,692 (5,139,029) (1,042,000) (552,269) 1,194,394
2017 8,566,893 (5,496,164) (1,074,565) (545,267) 1,450,897
2018 8,876,017 (5,158,989) (1,104,000) (513,009) 2,100,019
2019 9,336,007 (6,348,468) (1,139,000) (479,859) 1,368,680
2020 9,441,675 (6,592,798) (1,172,000) (446,064) 1,230,813
2021 9,926,730 (6,329,624) (1,760,000) (581,214) 1,255,892
Waste Water Revenue Bonds
Debt Service
Water Revenue Bonds Special Assessment Bonds
Debt Service Debt Service
DRAFT501
190 CITY OF BOZEMAN, MONTANA DEBT SERVICE REQUIREMENTS AND COVERAGE FOR TAX INCREMENT DISTRICTS Past Ten Fiscal Years
Fiscal
Year Revenues Annual Revenues Annual
Ended Available Debt Service Available Debt Service
June 30,for Debt Service Payment Coverage for Debt Service Payment Coverage
2012 1,266,104 421,688 3.00 - - -
2013 1,497,572 425,088 3.52 - - -
2014 1,644,960 423,088 3.89 - - -
2015 1,853,725 425,888 4.35 - - -
2016 2,066,749 423,288 4.88 - - -
2017 2,160,187 425,488 5.08 - - -
2018 2,430,377 422,288 5.76 149,580 92,000 1.63
2019 2,150,531 423,573 5.08 164,252 95,000 1.73
2020 1,803,534 447,987 4.03 289,196 92,000 3.14
2021 1,847,752 332,448 5.56 470,096 92,000 5.11
**$863,000 Bond issuance for the Northeast Urban Renewal District on 7/20/2017
Fiscal
Year Revenues Annual
Ended Available Debt Service
June 30,for Debt Service Payment Coverage
2012 - - -
2013 - - -
2014 - - -
2015 - - -
2016 - - -
2017 - - -
2018 - - -
2019 - - -
2020 - - -
2021 1,118,930 401,893 2.78
**$6,500,000 Bond issuance for the Northeast Urban Renewal District on 7/9/2020
MIDTOWN IMPROVEMENT DISTRICT
DOWNTOWN IMPROVEMENT DISTRICT NORTHEAST URBAN RENEWAL DISTRICT
DRAFT502
191 CITY OF BOZEMAN, MONTANA SUMMARY OF OUTSTANDING SIDs Current Fiscal Year
Bond Original Maturity Bonds Cash Assessments Delinquent
Issue Amount Date Outstanding Balance Outstanding Assessments
SID 674 494,000$ 7/1/2024 107,500 23,205 72,918 -
SID 747 4,001,000$ 7/1/2040 3,840,716 - 3,144,623 8,166
TOTAL 494,000$ 107,500$ 23,205$ 72,918$ -$
As of June 30, 2021
DRAFT503
192 CITY OF BOZEMAN, MONTANA REVOLVING FUND BALANCE AND BOND SECURED THEREBY Past Ten Fiscal Years
Fiscal
Year
Ended Revolving Fund Principal
June 30,Cash Balance Amount of Debt
2012 3,190,244 2,269,500
2013 2,443,769 1,803,029
2014 2,474,971 1,317,226
2015 2,948,129 1,295,224
2016 2,924,604 1,120,708
2017 2,874,013 1,040,533
2018 2,903,817 916,503
2019 3,020,315 643,983
2020 2,173,692 1,537,286
2021 2,555,927 1,152,898
DRAFT504
193 CITY OF BOZEMAN, MONTANA SPECIAL IMPROVEMENT DISTRICT ASSESSMENT BILLING AND COLLECTIONS Past Ten Fiscal Years
Fiscal Assessment Total Annual
Year Billing Collections
2012 750,418 858,699
2013 741,886 820,090
2014 676,613 1,054,484
2015 538,697 586,116
2016 543,351 705,143
2017 528,622 558,988
2018 505,481 506,819
2019 476,212 518,351
2020 642,408 703,796
2021 594,719 649,643 DRAFT505
DEMOGRAPHIC AND ECONOMIC INFORMATION DRAFT506
194 CITY OF BOZEMAN, MONTANA DEMOGRAPHIC AND ECONOMIC STATISTICS Past Ten Fiscal Years
Fiscal Estimated Per Residents
Year Annual %Capita Median with Bachelors Pre K-12
Ended Change in Personal Personal Age Degree or School Unemployment
June 30,Population Population Income Income (years)Higher Schooling Enrollment Rate
2012 38,116 2.1% 803,487,262$ 24,709$ 27.2 53.9%5,810 5.2%
2013 38,753 1.6% 843,399,480$ 25,608$ 27.1 55.4%5,994 4.3%
2014 38,860 0.3% 852,165,042$ 26,427$ 26.8 53.3%6,216 3.5%
2015 41,660 6.7% 849,198,410$ 26,335$ 27.3 53.6%6,294 2.9%
2016 43,405 4.0% 849,682,100$ 26,350$ 27.5 54.4%6,533 2.8%
2017 45,250 4.1% 918,565,430$ 26,506$ 27.7 56.5%6,770 2.8%
2018 46,596 2.9% 993,940,022$ 28,748$ 27.9 55.6%6,908 2.8%
2019 48,532 4.0% 1,047,804,618$ 29,097$ 28 56.9%7,015 3.8%
2020 49,831 2.6% 1,279,025,432$ 30,268$ 28 56.8%7,152 4.5%
2021 53,293 6.5% 1,393,673,190$ 32,865$ 28 58.7%6,893 3.2%
Sources:
Bozeman Public Schools
U.S. Bureau of Labor Statistics
U.S. Census Bureau DRAFT507
195 CITY OF BOZEMAN, MONTANA PRINCIPAL EMPLOYERS FOR GALLATIN COUNTY Current Year and Ten Years Ago
Employers Class Employers Class
By Class Size By Class Size
Bozeman Health 9 Bozeman Deaconess Hospital 9
Oracle America 7 Oracle America Inc.7
Kenyon Noble Lumber & Hardware 7 Wal-Mart 7
Town Pump Convenience Stores 7 Albertson’s 6
Wal Mart 7 Community Food Co-Op 6
Zoot Enterprises 6 Costco 6
Albertson's 6 Croakies 6
Target 6 First Security Bank 6
Bridger Bowl 6 Gibson Guitar 6
Community Food Co-Op 6 Kenyon Noble Lumber & Hardware 6
Costco 6 Lowes 6
Glacier Bancorp 6 Luzenac America 6
First Student 6 Martel Construction 6
McDonalds 6 McDonald's 6
Murdoch's Ranch & Home Supply 6 Murdoch's Ranch & Home Supply 6
Ressler Motors 6 Ressler Chevrolet Cadillac & Toyota 6
Rosauers Food & Drug 6 Rosauers Supermarket 6
Town & Country Foods 6 Town & Country Foods 6
UPS 6 Town Pump 6
Williams Plumbing & Heating 6 Zoot Enterprises 6
Public Employer Public Employer
Employers Class Employers Class
By Class Size By Class Size
Montana State University 9 Montana State University 9
Belgrade School District 8 Bozeman School District #7 9
Bozeman School District 8 City of Bozeman 7
Gallatin County 8 Gallatin County 7
City of Bozeman 7
Class 6 - 100 to 249 Employees
Class 7 - 250 to 499 Employees
Class 8 - 500 to 999 Employees
Class 9 - 1,000+ Employees Source: Montana Department of Labor & Industry
DRAFT508
OPERATING INFORMATION DRAFT509
196 CITY OF BOZEMAN, MONTANA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION / PROGRAM Past Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021General GovernmentCity Commission 2.10 2.10 2.10 2.10 2.10 2.10 0.10 2.10 2.10 2.10City Manager 8.00 8.00 5.00 5.00 6.00 6.00 9.00 9.00 9.00 9.00Municipal Court 8.50 8.50 8.50 9.00 8.50 8.50 9.50 9.50 9.60 9.98City Attorney 7.00 7.00 7.00 9.00 10.20 10.20 10.70 10.70 11.70 12.70Administrative Services - - 19.00 21.00 21.50 23.50 - - - Human Resources 4.00 5.00 5.00 5.00Finance *10.00 11.00 - - - - 12.50 13.50 13.50 15.00Information Technology *6.00 6.00 - - - - 6.00 7.00 7.00 7.00Community Development 8.75 9.00 8.00 12.60 11.60 13.00 13.00 14.25 15.25 15.25Building Maintenance 3.00 3.50 3.50 3.50 3.50 3.50 4.50 5.00 5.00 6.00Total General Government 53.35 55.10 53.10 62.20 63.40 66.80 69.30 76.05 78.15 82.03
Public SafetyPolice Department 71.25 72.75 72.75 72.25 71.70 72.70 72.70 74.55 75.55 76.95Fire Department 41.75 43.75 45.75 45.00 46.00 46.00 46.00 47.00 50.00 50.00Building Inspection 10.55 10.55 12.55 14.00 18.50 18.50 19.50 19.75 19.75 19.75Parking4.50 4.50 5.50 6.00 6.00 6.00 6.00 6.00 6.00 6.00Total Public Safety 128.05 131.55 136.55 137.25 142.20 143.20 144.20 147.30 151.30 152.70
Public ServicesPublic Services Administration / Engineering 10.00 10.00 12.00 6.58 10.25 11.50 11.50 16.25 18.25 22.25Streets17.62 17.62 18.62 16.20 18.85 19.85 21.85 21.35 22.30 22.30Storm Water - 1.00 1.00 4.00 6.25 6.50 7.50 7.50 8.50 9.50Water Conservation 2.25 3.00 3.00Water Treatment Plant 9.77 9.77 11.27 12.75 10.50 10.50 10.00 10.00 10.00 10.00Water Operations 15.62 15.62 15.62 17.33 14.45 14.45 14.50 14.50 15.70 15.65Wastewater Operations 10.25 10.25 11.25 13.09 13.30 14.05 12.00 12.50 13.55 14.55Wastewater Plant 15.87 16.37 17.47 15.50 14.75 14.75 15.00 15.00 16.00 16.00Solid Waste Collection/Recycling 15.74 15.74 15.74 15.90 15.15 16.15 17.15 17.15 18.75 19.75Vehicle Maintenance 5.00 5.00 5.00 5.00 6.50 6.50 7.50 7.50 8.50 8.50Total Public Services 99.87 101.37 107.97 106.35 110.00 114.25 117.00 124.00 134.55 141.50
Public WelfareCemetery (numerous short terms)3.33 3.33 3.33 4.90 5.04 5.04 4.75 4.25 4.25 4.55Parks (numerous short terms)11.77 11.77 11.77 15.40 14.51 14.51 14.90 18.00 18.00 19.75Forestry4.60 4.60 4.60 5.95 5.65 6.65 5.20 6.00 6.00 6.65Library21.66 21.56 23.11 23.41 26.02 28.02 28.02 28.02 28.02 26.53Recreation (numerous short terms)15.83 15.83 16.83 16.83 23.55 24.26 23.41 24.80 24.80 21.90Community Services 2.00 2.00 4.00 3.50 3.50 3.50 2.00 2.00 3.00 3.00Sustainability1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50Total Public Welfare 59.19 59.09 65.14 71.49 79.77 83.48 79.78 84.57 85.57 83.88
Total of all Funds 340.46 347.11 362.76 377.29 395.37 407.73 410.28 431.92 449.57 460.11
Source: City Manager's Final Adopted Budget
* Administrative Services was created in fiscal year 2014 and consists of Finance, Information Technology and Human Resources
Fiscal Years
DRAFT510
197 CITY OF BOZEMAN, MONTANA OPERATING INDICATORS BY FUNCTION / PROGRAM Past Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Finance
SID Statements 16,000 16,200 16,424 16,506 16,893 17,200 17,463 18,185 18,552 18,895 Utility Bills 135,000 138,000 155,000 162,000 166,000 169,000 172,000 168,280 176,263 180,720 Accounts Payable Checks Processed 11,962 12,519 10,453 11,098 11,000 11,800 12,350 11,762 11,800 12,488 Police*Number of Officers 60 63 63 61 60 61 60 60 60 60 Calls for Service 45,358 47,361 48,542 46,290 47,400 48,200 47,136 50,548 48,099 48,560 Arrests 2,152 2,096 2,165 2,195 2,078 2,427 2,314 2,618 2,017 2,118 Misdemeanor Citations Issued - includes traffic 5,234 5,205 6,045 6,169 6,390 5,886 4,940 5,430 4,800 4,058 Traffic Stops 9,358 10,629 8,210 7,757 7,482 7,900 7,675 9,600 8,410 8,736 Traffic Crashes 1,264 1,320 1,469 1,601 1,792 1,850 1,958 1,840 1,813 1,351 Fire Fires, Hazardous Conditions & Rupture/Explosions 278 309 340 296 349 445 564 522 340 315Emergency Medical Services/Rescue 1,483 1,941 2,051 2,032 2,424 3,062 3,320 3,073 3,154 3,557 Service Calls 187 145 212 202 244 334 438 406 239 170 Building InspectionCommercial Permits: Number 1,420 1,305 1,165 1,560 1,628 1,731 883 768 702 707 Value (Millions)95.03 69.64 $44.50 $98.02 $164.47 $65 $216 $249 $302 $237Residential Permits: Number 2,421 2,338 2,911 2,836 3,937 3,905 3,222 2,307 2,094 2,674 Value (Millions)89.74 146.32 $130.68 $191.97 $200 $130 $340 $311 $176 $233WaterNew Service Main Taps 20 41 57 70 60 72 65 101 96 100Meter Replacement/Repair 279 113 479 1006 978 1500 994 1042 528 1273Water Main Breaks/Repairs 6 4 7 5 7 6 7 5 11 14WastewaterMain Line Flushing (in Miles)90 47 30 90 50 30.9 50 37.5 48 33.3New Infrastructure TV (in Miles)1 2.6 2 8 2.6 9.9 7 2.8 3.3 7.4New Service Taps 4 17 37 44 20 30 30 56 25 34Solid Waste Collection & RecyclingResidential Accounts 7,240 7,470 7,869 8,369 8,878 9,695 10,384 10,884 11,321 11,841 Commercial Customers 281 265 258 265 461 449 515 573 566 520 Recycling Customers 1,000 1,135 1,601 2,100 2,663 3,386 3,854 4,434 4,867 5,526 Annual Tonnage Collected: Collections Program 11,248 10,695 10,960 11,457 11,691 12,490 17,657 18,880 19,815 19,955 Vehicle MaintenanceWork Orders Processed 1,473 1,646 1,717 1,549 1,453 1,509 2,592 2,392 2,057 3,718 Gallons of Oil Disposed 8,751 8,640 8,740 8,969 7,395 6,475 5,007 5,522 4,900 5,787
ParksPark Reservations 320 350 400 400 400 400 425 493 423 912
Sources: City Manager's Final Adopted Budget City of Bozeman Finance Department
*Police statistics are based on calendar year
Fiscal Year Ended June 30,DRAFT511
198 CITY OF BOZEMAN, MONTANA CAPITAL ASSET STATISTICS BY FUNCTION / PROGRAM Past Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units (Cars)20 20 20 22 21 21 22 21 21 24
Patrol Units (Motorcycles)4 4 4 2 3 3 3 3 3 3
Fire
Stations 3 3 3 3 3 3 3 3 3 3
Fire Trucks 6 6 7 7 7 7 7 7 7 7
Streets
Street & Alley Mileage 254.957 255.769 252 253 254 274 280 284 291 293
Lane Miles Painted 41.0 37.0 34.6 49.2 50.0 50.0 52.0 48.0 53.1 51.2
Number of Signs Installed/Repaired 1120 669 798 600 600 600 708 394 1107 1270
Water
Water Mains (Miles)261.33 264.61 267.28 268.57 274.89 276.92 283.95 286.68 297.10 299.52
Fire Hydrants 2,351 2,388 2,406 2,419 2,511 2,573 2,618 2,668 2,758 2,782
Wastewater
Sanitary Sewers (Miles)207.56 210.22 211.51 212.53 219.14 224.28 234.64 236.04 239.00 242.43
Number of Manholes 4,084 4,154 4,185 4,219 4,360 4,492 4,614 4,677 4,828 5,023
Solid Waste
Number of Collection Vehicles 8 8 8 8 8 8 8 8 6 6
Number of Roll-off Trucks 4 4 4 4 4 4 5 5 5 5
Number of Recycling Trucks 1 1 2 2 2 2 2 2 2 2
Number of Compost Collection Trucks 2 2 2 2 2 2 1 1 1 1
Parks
Formal Turf Acres 125 125 125 126 140 140 172 192 192 192
Natural Parkland Acres 220 220 220 220 220 220 323 343 388 413
Miles of Trails 55 55 61 63 63 63 63 65 65 65
Sources: City Manager's Final Adopted Budget
City of Bozeman Finance Department
City of Bozeman GIS Department
City of Bozeman Police Department
Fiscal Year Ended June 30,
DRAFT512
PART IV SINGLE AUDIT SECTION
DRAFT513
199 CITY OF BOZEMAN, MONTANA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2021
Federal Awards
Pass Through Grant Total Awards to
FEDERAL GRANTOR CFDA Grantors Number Award Revenue Expended Subrecipients
U.S. Department of Justice
Rural Domestic Violence Assistance Program 16.589 OVW 2018-WR-AX-0002 523,712$ 135,960$ 138,816$ 57,567$
Adult Drug Court Discretionary Grant Program: Implementation 16.585 2017-VV-BX-0006 400,000 83,528 87,828 -
Passed through Gallatin County:
Edward Byrne Memorial Justice Assistance Grant Program:
Missouri River Drug Task Force 16.738 N/A 75,172 75,172 75,172 -
Bullet-Proof Vest Partnership 16.607 N/A - - 2,493 -
COVID-19 Coronavirus Emergency Supplemental Funding 16.034 2020-VD-BX-1066 60,489 34,154 38,095 -
Total U.S. Department of Justice 1,059,373 328,814 342,404 57,567
Office of National Drug Control Policy
Passed through the University of Baltimore
Combating Opioid Overdose through
Community-level Internvestion Initiative (COOCLI)95.007 G1999ONDCP06A 55,238 55,238 55,238 -
U.S. Department of the Treasury
Passed through the State of Montana:
COVID-19 CARES Act - Coronavirus Relief Fund 21.019 N/A 3,305,719 3,305,719 3,305,719 -
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 6,364,398 712,051 712,051
Total U.S. Department of Justice 9,670,117 4,017,770 4,017,770 -
U.S. Department of the Interior
WaterSMART: Cemetery Irrigation Project 15.507 N/A 7,565 7,565 7,565 -
U.S. Department of Transportation
Passed through MT Dept. of Transportation: Highway Traffic Safety
State and Community Highway Safety 20.600 00-03-09-02 1,218 1,218 1,218 -
National Priority Safety Programs 20.616 00-03-09-02 5,277 5,277 5,277 -
Passed through Historical Society:
Historic Preservation Grants in Aid 15.904 6,000 6,000 6,000 -
Total U.S. Department of Transportation 12,495 12,495 12,495 -
Total Federal Financial Assistance 10,804,788$ 4,421,882$ 4,435,472$ 57,567$ DRAFT514
200 CITY OF BOZEMAN, MONTANA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2021
NOTE 1. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes federal award activity of the City under programs of the federal
government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a select portion of the operations of the City, it is not intended to, and does not present, the financial position, changes in net assets,
or cash flows of the City. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES The Schedule has been prepared on the accrual basis of accounting, which is the method of accounting used for the financial statements. Such expenditures are recognized following Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule present adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. NOTE 3. INDIRECT COST RATE The City has elected not to use the optional 10 percent de minimis indirect cost rate allowed by Uniform Guidance.
NOTE 4. MATCHING
The City has not expended matching contributions during the year ended June 30, 2021.
NOTE 5. LOAN AND LOAN GUARANTEES The City has no direct loan guarantees at June 30, 2021. DRAFT515
201
1019 E MAIN ST • SUITE 201 • BOZEMAN, MONTANA 59715 TEL: 406.556.6160 • FAX: 406.586.8719 • WEB: www.azworld.com ANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor, City Commissioners, and City Manager of the City of Bozeman, Montana We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Bozeman, Montana (the City), as of and for the year
ended June 30, 2021, which collectively comprise the City’s basic financial statements and have issued our report thereon, dated . Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Bozeman’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Bozeman’s internal control. Accordingly, we do not express an opinion on
the effectiveness of City of Bozeman’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Bozeman’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards. DRAFT516
ANDERSON ZURMUEHLEN & CO., P.C CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS 202
Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Bozeman, Montana DATE
DRAFT517
203
1019 E MAIN ST • SUITE 201 • BOZEMAN, MONTANA 59715 TEL: 406.556.6160 • FAX: 406.586.8719 • WEB: www.azworld.com ANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Report on Compliance for Each Major Federal Program We have audited the City of Bozeman (the City)’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2021. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.
Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. Opinion on Each Major Federal Program
In our opinion, the City of Bozeman, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021. Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the
types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. DRAFT518
ANDERSON ZURMUEHLEN & CO., P.C CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
204
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the
results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Bozeman, Montana DATE DRAFT519
205 CITY OF BOZEMAN, MONTANA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2021
Section I - Summary of Auditor’s Results Financial Statements Type of auditor’s report issued: Unmodified Internal control over financial reporting: Material weakness identified? No Significant deficiencies identified not considered to be material weaknesses? None reported
Noncompliance material to financial statements noted? No
Federal Awards Internal control over major programs:
Material weakness identified? No Significant deficiencies identified not considered to be material weaknesses? None reported Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)? Yes
Identification of Major Programs: 21.019 COVID-19 CARES Act – Coronavirus Relief Fund
Dollar threshold used to distinguish between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? No DRAFT520
206 CITY OF BOZEMAN, MONTANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
Year Ended June 30, 2021
Section II – Financial Statement Findings None Reported. Section III – Federal Award Finding and Questioned Costs None Reported. Status of Prior Year Financial Statement Findings: None Reported. Status of Prior Year Federal Award Findings and Questioned Costs:
None Reported.
DRAFT521