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01-14-25 City Commission Agenda and Packet Materials
A. Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse B. Pledge of Allegiance and a Moment of Silence or Mindfulness C. Changes to the Agenda D. FYI E. Commission Disclosures F. Consent F.1 Accounts Payable Claims Review and Approval (Edwards) F.2 Authorize the City Manager to Sign the Non-Profit Grant Agreement with the Human Resource Development Council IX Adopted in the Fiscal Year 2025 Budget on June 25, 2024(Hodnett) THE CITY COMMISSION OF BOZEMAN, MONTANA REGULAR MEETING AGENDA Tuesday, January 14, 2025 How to Participate: If you are interested in commenting in writing on items on the agenda please send an email to comments@bozeman.net or visit the Public Comment Page prior to 12:00 p.m. on the day of the meeting. At the direction of the City Commission, anonymous public comments are not distributed to the City Commission or staff. Public comments will also be accepted in-person and through video conference during the appropriate agenda items but you may only comment once per item. As always, the meeting will be recorded and streamed through the Commission's video page and available in the City on cable channel 190. For more information please contact the City Clerks' Office at 406.582.2320. This meeting will be held both in-person and also using an online video conferencing system. You can join this meeting: Via Video Conference: 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, channel 190, or attend in- person United States Toll +1 669 900 9128 Access code: 933 7244 1920 1 F.3 Authorize the City Manager to Sign a Maintenance Agreement with the Montana Department of Transportation for the North 7th Ave Intersections Project at Mendenhall, Peach St/Durston Rd, Tamarack St, and Oak St, Project UPN 9313(Lonsdale) F.4 Authorize the City Manager to sign The First amendment to the Professional Services Agreement with Summit Utilities LLC for Utility Locating Services(Pericich) G. Action Items G.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2024 and Audit Results(Hodnett) H. Appointments H.1 Appointments to the Economic Vitality Board(Newby) H.2 Appointment to the Community Development Advisory Board(Newby) H.3 Appointment to the Historic Preservation Advisory Board.(Newby) H.4 Appointments to the Building Board of Appeals (Newby) I. FYI / Discussion J. Adjournment Consider the Motion: I move to approve the Fiscal Year 2024 Annual Comprehensive Financial Report and the accompanying Letter of Governance. Consider the Motion: I move to appoint up to three members to the Economic Vitality Board to a term ending December 31, 2026. AND I move to appoint [INSERT NAME] as the Chair, and [INSERT NAME] as the Vice-chair of the Economic Vitality Board. Consider the Motion: I move to appoint up to four at-large members to the Community Development Board for terms ending December 31, 2027. Consider the Motion: I move to appoint to appoint one member to the Historic Preservation Advisory Board to the at-large position with a term expiring June 30, 2026. Consider the Motion: I move to appoint up to four members to the Building Board of Appeals to terms ending December 31, 2026 or December 31, 2027. AND I move to appoint [INSERT NAME] as the Chair, and [INSERT NAME] as the Vice-chair of the Building Board of Appeals. City Commission meetings are open to all members of the public. If you have a disability that requires assistance, please contact our ADA Coordinator, David Arnado, at 406.582.3232. Commission meetings are televised live on cable channel 190 and streamed live on our Meeting Videos Page. 2 Memorandum REPORT TO:City Commission FROM:Nicole Armstrong, Accounts Payable Clerk Rhonda Edwards, Accounts Payable Clerk Aaron Funk, City Controller Melissa Hodnett, Finance Director SUBJECT:Accounts Payable Claims Review and Approval MEETING DATE:January 14, 2025 AGENDA ITEM TYPE:Finance RECOMMENDATION:The City Commission is recommended to make a motion and approve payment of claims as presented. 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:Montana Code Annotated, Section 7-6-4301 requires claims to be presented to the City Commission within one year of the date the claims accrued. Claims presented to the City Commission under this item have been reviewed and validated by the Finance Department. The Department has ensured that all goods and services have been received along with necessary authorizations and supporting documentation. Please provide approval for checks dated January 15th and 22nd, 2025. UNRESOLVED ISSUES:None ALTERNATIVES:The City Commission could decide not to approve these claims or a portion of the claims presented. This alternative is not recommended as it may result in unbudgeted late fees assessed against the City. 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 https://www.bozeman.net/departments/finance/purchasing. Report compiled on: August 21, 2024 3 Memorandum REPORT TO:City Commission FROM:Jamie Grabinski, Grants Coordinator Melissa Hodnett, Finance Director SUBJECT:Authorize the City Manager to Sign the Non-Profit Grant Agreement with the Human Resource Development Council IX Adopted in the Fiscal Year 2025 Budget on June 25, 2024 MEETING DATE:January 14, 2025 AGENDA ITEM TYPE:Grant RECOMMENDATION:Consent agenda STRATEGIC PLAN:3.2 Health & Safety Action: Work with our partners to improve education, public awareness, and to coordinate programs concerning emergency services, criminal justice, and important social services. BACKGROUND:On June 25, 2024, the City Commission approved the following non-profit grant award with the adoption of the FY25 Budget. This agenda item formalizes the grant by authorizing the City Manager to sign the grant agreement for the Human Resource Development Council IX for $360,000 to support overnight staffing at the Warming Center from April to October. UNRESOLVED ISSUES:None. ALTERNATIVES:None. FISCAL EFFECTS:Total expenditures are expected to be $360,000. Expenditures are included in the adopted FY25 budget. Attachments: FY25_HRDC_GF_Grant_Agreement.pdf Report compiled on: August 26, 2024 4 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 1 CITY OF BOZEMAN GRANT AGREEMENT HRDC IX, Bozeman Warming Center THIS AGREEMENT is made and entered into this 21st day of January, 2025 by and between the City of Bozeman, Montana, a self-governing municipal corporation operating pursuant to its Charter and the laws of the State of Montana, located at 121 N. Rouse Ave., Bozeman MT 59771 (“City”) as GRANTOR and HRDC IX a non-profit organization located at 32 S. Tracy Ave., Bozeman, MT as GRANTEE. WHEREAS, on October 17, 2005 the Bozeman City Commission adopted Resolution No. 3866 establishing policies for the granting of funds from the City of Bozeman to a requesting entity; and WHEREAS, HRDC IX submitted a proposal to the City Commission for a grant of $500,000 for for overnight staffing of the Warming Center from April to October and onsite security (the “Project”) that would benefit from the City funding; and WHEREAS, the City Commission may make grants of money for public purposes pursuant to Sect. 7-1-4124(9), MCA; and WHEREAS, the City Commission determines the granting of funds under this Agreement is for a public purpose benefitting the community by providing emergency shelter to people experiencing homelessness in alignment with City of Bozeman’s Strategic Plan (3.2); and WHEREAS, on June 25, 2024, the Commission appropriated $360,000 for the Project. THE PARTIES AGREE: 1. The Grant. The City will grant and release to GRANTEE a sum of up to three hundred sixty thousand dollars ($360,000) from its General Fund (the “Grant”) pursuant to the payment terms in Section 4. 2. Term of Grant. This Agreement becomes effective on the date of signing and shall terminate on June 30, 2025. 3. Use of Grant Funds. Grant funds in the amount of up to three hundred sixty thousand dollars ($360,000) will be used by GRANTEE for the sole purpose of funding overnight staffing of the Warming Center from April to October as described in the proposal submitted by GRANTEE to the City Commission, attached hereto as Exhibit A and by this reference incorporated herein. Eligible expenses must be incurred during the term of this Agreement and service city of Bozeman residents. Eligible expenses must be requested for reimbursement no later than July 20th, 2025, following the expiration of this Agreement. Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 5309 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 2 4. Payment of Grant Funds a. The City will remit the Grant funds to the GRANTEE following the execution of this Agreement. b. Modifications to the scope of work or term of this Agreement must be submitted as a written request by the GRANTEE. The City’s Director of Finance must review and approve all requests prior to the expiration of this Agreement. c. The City will have no obligation to pay any Grant funds unless at the time of the request for payment (i) all of GRANTEE’s representations as set forth in Section 5 are true and correct, and (ii) GRANTEE is not in breach of any term of this Agreement. If any of the above conditions are not satisfied in sole the determination of the City, the City shall have no obligation to make payment and the City’s determination to refrain from paying, or its inability to pay, any of the Grant funds shall not be or result in a default of this Agreement. 5. Grantee Representations a. GRANTEE has familiarized itself with the nature and extent of this Agreement and with all local conditions and federal, state, and local laws, ordinances, rules, and regulations that in any manner may affect GRANTEE’s performance under this Agreement. b. GRANTEE represents and warrants to City that it has the experience and ability to perform its obligations under this Agreement; that it will perform said obligations 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 for GRANTEE to meet this warranty. c. GRANTEE represents and warrants to City that the Grant funds are necessary to accomplish the financial requirements of the Project and that the Project will benefit City of Bozeman citizens. 6. Reports/Accountability/Public Information. If Grant funds are paid to GRANTEE, GRANTEE will provide to the City a formal written report that includes, at a minimum, the proof of expenses paid. GRANTEE will also provide to the City Commission a formal presentation that includes detail regarding use of Grant funds. GRANTEE agrees to develop and/or provide such other documentation as requested by the City demonstrating GRANTEE’s compliance with the requirements of this Agreement. Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 6310 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 3 GRANTEE must 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 monies provided to GRANTEE pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. GRANTEE will retain such records for seven years after receipt of final payment under this Agreement unless permission to destroy them is granted by the City. GRANTEE shall not issue any statements, releases or information for public dissemination without prior approval of the City. 7. Permits and Compliance With Laws. GRANTEE 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 Project. 8. Independent Contractor Status. The parties agree that GRANTEE, its agents, employees, contractors, or subcontractors, are independent contractors for purposes of this Agreement and are not to be considered employees or agents of the City for any purpose. GRANTEE and its agents, employees, contractors, or subcontractors are 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. GRANTEE, its agents, employees, contractors, or subcontractors, are not authorized to represent the City or otherwise bind the City in any way. 9. Default and Termination. If GRANTEE fails to comply with any condition of this Agreement at the time or in the manner provided for, the City may terminate this Agreement if the default is not cured within fifteen (15) days after written notice is provided to GRANTEE. The notice will set forth the items to be cured. If this Agreement is terminated pursuant to this Section, GRANTEE will repay to the City any Grant funds already delivered to GRANTEE for the Project. 10. Limitation on GRANTEE’s Damages; Time for Asserting Claim a. In the event of a claim for damages by GRANTEE under this Agreement, GRANTEE’s damages shall be limited to contract damages and GRANTEE 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 GRANTEE wants to assert a claim for damages of any kind or nature, GRANTEE must first 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 ninety (90) days of the facts and Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 7311 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 4 circumstances giving rise to the claim. In the event GRANTEE fails to provide such notice, GRANTEE shall waive all rights to assert such claim. 11. Representatives a. City’s Representative. The City’s Representative for the purpose of this Agreement shall be Director of Finance, Melissa Hodnett or such other individual as City may designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission must be directed to the City’s Representative and approvals or authorizations will be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, GRANTEE may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. GRANTEE’s Representative. GRANTEE’s Representative for the purpose of this Agreement shall be Heather Grenier or such other individual as GRANTEE designates in writing. Whenever direction to or communication with GRANTEE is required by this Agreement, such direction or communication must be directed to GRANTEE’s Representative; provided, however, that in exigent circumstances when GRANTEE’s Representative is not available, City may direct its direction or communication to other designated GRANTEE personnel or agents. 12. Indemnity/Waiver of Claims/Insurance. To the fullest extent permitted by law, GRANTEE agrees to defend, indemnify and hold the City and its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) harmless against all third party claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, which arise out of, relate to or result from GRANTEE’s (i) negligence, or (ii) willful or reckless misconduct. 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 indemnitee(s) which would otherwise exist as to such indemnitee(s). GRANTEE’s indemnification obligations under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should any indemnitee described herein be required to bring an action against GRANTEE to assert its right to defense or indemnification under this Agreement or under GRANTEE’s applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 8312 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 5 indemnification or defense but only if a court of competent jurisdiction determines GRANTEE was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against 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. GRANTEE also waives any and all claims and recourse against the City or its officers, agents or employees, 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 his 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. In addition to and independent from the above, GRANTEE shall at GRANTEE’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 GRANTEE in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by GRANTEE in this Section unless and to the extent coverage for such liability is not reasonably available. 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 and GRANTEE 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 The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional 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 delivery of Grant funds to GRANTEE. GRANTEE shall notify City within two (2) business days of Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 9313 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 6 GRANTEE’s receipt of notice that any required insurance coverage will be terminated or GRANTEE’s decision to terminate any required insurance coverage for any reason. 13. Nondiscrimination, Equal Pay. GRANTEE agrees that all hiring by GRANTEE of persons performing this Grant Agreement shall be on the basis of merit and qualifications. GRANTEE will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. GRANTEE 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. In addition, GRANTEE 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). GRANTEE must report to the City any violations of the Montana Equal Pay Act that GRANTEE has been found liable for or guilty of within 30 days of such finding for violations occurring during the term of this Agreement. GRANTEE shall require these nondiscrimination terms of its subcontractors providing services under this Grant Agreement. 14. Public Meetings and Access to Public Records a. Meetings of GRANTEE that pertain to the receipt or expenditure of Grant funds from the City may be subject to the open meeting requirements of Montana law, including those set forth in Title 7, Chapter 1, Part 41, MCA and Title 2, Chapter 3, MCA. To ensure compliance, GRANTEE must provide agendas for meetings that pertain to the receipt or expenditure of Grant funds covered by this Agreement to the City Clerk’s office no later than 72 working hours prior to meeting for notice on the City’s official posting board and any other sites deemed reasonable by the Clerk’s office. In addition, meeting minutes will be kept by GRANTEE and provided to the City Clerk’s office no later than 90 days after the meeting. These minutes shall be posted and made available to the public by the City Clerk’s office except for those minutes taken during a closed meeting in accordance with 2-3-203, MCA. Minutes taken during a closed meeting shall also be provided to the City Clerk’s office but shall be handled in accordance with the City Clerk’s regular executive session protocol and kept private in a secured cabinet. b. In accordance with 7-1-4144, MCA and subject to any applicable legal obligation to protect and preserve individual confidential or private information, upon reasonable request and at reasonable times during normal business hours, GRANTEE shall make Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 10314 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 7 such records available for inspection and copying by members of the public. GRANTEE may charge for such copying in accordance with the policies of the City, which GRANTEE hereby adopts for such purposes. c. To determine whether a meeting or part of a meeting may be closed to the public and to determine whether information contained in GRANTEE documents is protected by law from disclosure, GRANTEE may seek a determination of the City Attorney at no cost to GRANTEE. Such request and determination shall not create an attorney- client relationship between GRANTEE and the City. 15. Attorney’s Fees and Costs. In the event it becomes necessary for a party to this Agreement 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 shall be entitled to reasonable attorney’s fees and costs, including fees, salary, and costs of in- house counsel to include City Attorney. 16. Integration and Modification. This document contains the entire agreement between the parties and no statements, promises or inducements made by either party or agents of either party not contained in this written Agreement may be considered valid or binding. This Agreement may not be modified except by written agreement signed by both parties. 17. 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. 18. No Assignment. GRANTEE may not subcontract or assign GRANTEE’s rights, including the right to Grant payments, or any other rights or duties arising hereunder, without the prior written consent of City. 19. No Third-Party Beneficiary. The terms and provisions of this Agreement 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. 20. Choice of Law. This Agreement shall be governed and construed in accordance with the laws of the State of Montana without regard to conflict of law provisions. The Parties Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 11315 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 8 agree to submit to the personal and exclusive jurisdiction of the courts located within Gallatin County, Montana. 21. 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. 22. Severability. If any portion of this Agreement is held to be void or unenforceable, the balance of the Agreement shall continue in effect. 23. Counterparts. This Agreement may be executed in counterparts, which together constitute one instrument. 24. 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. IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year indicated below. _______________________ Date: __________ Chuck Winn, City Manager City of Bozeman _______________________ Date: __________ Heather Grenier, President and CEO HRDC IX Approved as to form: _______________________ Date: __________ Greg Sullivan, City Attorney City of Bozeman Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 12/20/2024 12316 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Exhibit A Exhibit A Grant Proposal Grant Project Overview: HRDC’s Warming Center is open year-round and provides a warm, safe place to spend the night while connecting guests with programming and services designed to help people get back on the path towards self-sufficiency and make their experience of homelessness rare, brief, and one-time. HRDC’s funding request is for operational funding for Shelter operations the emergency shelter. Specifically, the funding will support overnight staffing at the Warming Center from April to October. City Commission Award: On June 25, 2024, the Bozeman City Commission approved the grant award in the amount of $360,000. This grant must be used to support overnight staffing at the Warming Center from April-October. Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 13317 Memorandum REPORT TO:City Commission FROM:Taylor Lonsdale, Transportation Engineer Nick Ross, Director of Transportation and Engineering SUBJECT:Authorize the City Manager to Sign a Maintenance Agreement with the Montana Department of Transportation for the North 7th Ave Intersections Project at Mendenhall, Peach St/Durston Rd, Tamarack St, and Oak St, Project UPN 9313 MEETING DATE:January 14, 2025 AGENDA ITEM TYPE:Agreement - Agency/Non-profit RECOMMENDATION:Authorize the City Manager to Sign a Maintenance Agreement with the Montana Department of Transportation for the North 7th Ave Intersections Project at Mendenhall, Peach St/Durston Rd, Tamarack St, and Oak St, Project UPN 9313 STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other public agencies and build on these successes. BACKGROUND:The intent of this agreement is to define construction and maintenance responsibilities between the Montana Department of Transportation (MDT) and city of Bozeman (city) for the North 7th Avenue Intersections Project (UPN 9313). This MDT project is making improvements to the intersections of North 7th Avenue with Mendenhall St, Peach St/Durston Rd, Tamarack St, and Oak St. Improvements include ADA improvements, added lanes at Peach St and Oak St, and updated signal timing. The project is scheduled for construction in 2025. Staff has reviewed the agreement and recommends authorizing the City Manager to sign the agreement. UNRESOLVED ISSUES:None. ALTERNATIVES:None identified or recommended. FISCAL EFFECTS:The maintenance of the facilities will be undertaken through existing budget appropriations. Attachments: 14 N 7th Ave Intersections Project UPN 9313_MDT Agreement_for signature.pdf Report compiled on: December 20, 2024 15 MDT-ENG-011 V 1.2 – Rev 12/19/19 City/County/Town Construction Agreement Checklist This agreement is intended to be used on MDT-constructed projects that involve cities, counties, or towns. Filling out the information below will help you ensure you have all the necessary information to complete this agreement and will assist reviewers. This checklist must be included with your proposed agreement when it is distributed for review. Agreement with: City of Bozeman Enter entire string: City of Bozeman Prepared by: Rebecca Barbula General Project Information Federal Project ID: CMDP 118-1(5)0 UPN: 9313000 Project Name: N 7TH AVE INT IMPROV - BOZEMAN Project Scope: Choose an item. Other: Traffic Signals & Lighting Local Street Name: North 7th Avenue, West Peach Street, and West Oak Street Route Number Corridor Number System Local Street Name Begin RP End RP Roadway Maintenance Authority N-118 C001207 National Highway North 7th Avenue 0.036 0.986 MDT U-1204 C001204 Urban West Peach Street 0.426 0.878 City U-1202 C001202 Urban West Oak Street 0.645 0.794 City L-16-1117 C074398 Off-System West Oak Street 0.591 0.734 City Is this within an MPO area? No Bridge Identification Number/NBI: [Enter Bridge IN/NBI if Applicable] Required Project Provisions Will the project have a Storm Water Pollution Prevention Plan (SWPPP)? Yes Is the project in a Municipal Separate Storm Sewer System (MS4) area? Yes Does the project involve a Class V injection well? Choose an item. Project Features Select the checkbox next to every feature listed below that your project includes and that you intend to address in the current agreement. Standard language is provided in the template for these features. ☒ Sidewalks ☐ Shared-Use Path ☒ Lighting ☒ Landscaping and/or Irrigation ☐ Benches/Bike Racks/Planters/Tree Grates and/or other Sidewalk Amenities ☐ Bulb-outs List any other project features covered by this agreement: City Signage 16 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 2 of 2 Special Funding (Fill out if applicable) If the project involves funding types that require local government funding contribution (e.g. matching funds or funds to finance specific project features) and/or concurrence with the use of funding, indicate below. Funding Type: CMAQ Local Agency Funding? No If “Other” selected, describe funding: Click or tap here to enter text. Did you edit any of the standard language in the template? ☒☒☒☒ Yes ☐☐☐☐ No 17 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 1 of 11 Construction and Maintenance Agreement CMDP 118-1(5)0 N 7TH AVE INT IMPROV - BOZEMAN UPN 9313000 This Agreement by and between City of Bozeman (City), and the Montana Department of Transportation (MDT, Department, or State) (collectively Parties), establishes the responsibilities and duties of the Parties with respect to project activities on a portion of North 7th Avenue, West Peach Street, and West Oak Street located within the City of Bozeman, Montana as set forth generally below: Table 1 Route Number Corridor Number System Local Street Name Begin RP End RP Roadway Maintenance Authority N-118 C001207 National Highway North 7th Avenue 0.036 0.986 MDT U-1204 C001204 Urban West Peach Street 0.426 0.878 City U-1202 C001202 Urban West Oak Street 0.645 0.794 City L-16-1117 C074398 Off-System West Oak Street 0.591 0.734 City Whereas, the construction will be accomplished through Uniform Project Number 9313000, Federal-Aid Project Number CMDP 118-1(5)0, titled N 7TH AVE INT IMPROV - BOZEMAN (Project). Refer to Table 1 above for locations; and, Whereas, State and/or Federal Highway Administration (FHWA) funds will be used to pay for the construction, the City and State must ensure that federal and state requirements are met in fulfilling its obligations to the FHWA and for the Project to remain eligible for state and/or federal funding; and, Whereas, a portion of the Project lies on the designated National and Urban Highway System (on-system) (N-118, U-1204, and U-1202) under the jurisdiction of the Montana Transportation Commission and MDT as per Mont. Code Ann. 60-2-110, and a portion of the Project is not on the designated State and Federal Highway System (off-system) (L-16-1117); and, Whereas, Congestion Mitigation and Air Quality funds (CMAQ) will be used for the construction of the Project; and Whereas, the City and MDT are also parties to a City/State Memorandum of Agreement N 7th Avenue Corridor (N-118) Streetscaping Projects and Maintenance and Amendment #1 18 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 2 of 11 (City/State N 7th MOA) for N 7th Avenue Corridor (N-118) Streetscape Projects and Maintenance setting forth the responsibilities of the Parties related to performance of construction and maintenance of roadway and right-of-way features on North 7th Avenue (N-118) designated by the Montana Transportation Commission and maintained by MDT; and, Whereas, the City and MDT are also parties to a City-Maintained Urban Highway System Routes Citywide Memorandum of Agreement (City-Maintained Urban MOA) setting forth the responsibilities of the Parties related to performance of construction and maintenance of roadway and right-of-way features on Urban Highway System Routes designated by the Montana Transportation Commission and not maintained by MDT; and, Whereas, the City and MDT recognize the need to construct the Project and to duly execute this Agreement in advance of construction phase programming; and, Whereas, the City desires to have the Project constructed, the City deeming it to be a valuable and beneficial consideration, and it will perform the functions, duties and responsibilities as set forth in this Agreement; Now, therefore, the Parties agree as follows: ARTICLE I. GENERAL OBLIGATIONS OF MDT 1. MDT will design and award a Contract to construct the Project. 2. MDT will provide the City opportunities to participate in the Project’s development, including invitation to the final inspection of the Project. 3. MDT will, in accordance with the City/State N 7th MOA, incorporated herein by this reference, maintain the roadway surface on North 7th Avenue, including pavement repair, pavement preservation, and snowplowing, and will maintain all features on North 7th Avenue, including signals (if present) and non-decorative roadway lighting, within the roadway prism unless otherwise noted herein. 4. If the City does not fulfill any maintenance requirements stated herein, MDT may complete the required maintenance and seek compensation from the City. In doing so, MDT must first provide notice to the City allowing time to complete any such maintenance. If MDT performs such maintenance under this section, it must provide detailed invoices of such costs to the City. 5. For any maintenance requirements that are the obligation of the City, as stated herein, MDT may complete any maintenance required due to a public emergency and seek compensation from the City for any costs incurred. In doing so, MDT may first provide notice to the City, when possible, allowing time to complete any such maintenance. If MDT performs maintenance under this section, it must provide detailed invoices of such costs to the City. 6. MDT is the issuing authority for all future encroachment and approach permits on North 7th Avenue. 19 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 3 of 11 ARTICLE II. GENERAL OBLIGATIONS OF THE CITY 1. The City agrees to conform in all regards to Mont. Code Ann. Title 61, Chapter 8, and will not take any action, by enacting an ordinance or otherwise, in contradiction of the traffic laws in Mont. Code Ann. Title 61, Chapter 8. 2. The City will provide appropriate and timely input during the Project’s development. 3. The City will continue to enforce the ordinances, laws and/or regulations necessary and essential for the operations of the Project. 4. The City will conduct all Roadway Maintenance as defined and set forth in the City- Maintained Urban MOA, incorporated herein by this reference. 5. The City is responsible for issuing all future encroachment and approach permits, unless otherwise provided herein, in accordance with the City-Maintained Urban MOA. 6. The City agrees no fixture, building, structure, or other permanent installation other than those approved by MDT shall be constructed or placed within MDT right-of-way without prior written approval from MDT. 7. The City agrees that any City-performed maintenance that occurs within MDT right- of-way must be reviewed and approved by the appropriate MDT District Maintenance Office prior to initiation of the maintenance. 8. The City agrees to regulate utility occupancy on the right-of-way of the City- maintained routes within the Project limits, as set forth in Table 1 herein, in conformance with occupancy regulations that comply with or are more restrictive than the requirements of the Administrative Rule of Montana, 18.7.201 thru 18.7.241, governing "Right of Way Occupancy by Utilities." 9. The City agrees it will assume full and complete responsibility for those portions of the Project on the City-maintained routes within the Project limits, as set forth in Table 1 herein, upon notification by MDT of the Project’s Substantial Completion. The City’s acceptance of those portions of the substantially completed Project includes accepting any right of way acquired for the Project and ownership and responsibility for any permits obtained for the Project. ARTICLE III. PROJECT-SPECIFIC PROVISIONS 1. Construction Storm Water General Permit a. The Local Agency agrees to have a certified SWPPP administrator (as required in section 3.2 of the MPDES CGP) on staff or under contract to perform that duty, and a valid registered account within MDEQ’s Fees, Applications, and Compliance Tracking System (FACTS) prior to construction completion. 20 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 4 of 11 b. Upon completion of all physical work associated with construction activity, the Parties will inspect the temporary erosion and sediment control measures and devices as part of MDT’s final inspection with MDT’s Contractor. MDT will provide the Local Agency with the Storm Water Pollution Prevention Plan (SWPPP) package for Local Agency review. Within ten (10) days of receiving the package, the Local Agency will provide MDT with an itemized list of any outstanding records or deficiencies associated with the SWPPP. Upon MDT’s and the Local Agency’s approval of site conditions, measures, devices and all pertinent records, the Department will notify the Contractor to begin the Permit Transfer Notification in DEQ FACTS. The Local Agency must log into FACTS to review and sign the transfer request within ten (10) business days. c. Once DEQ transfers the Construction Storm Water General Permit Authorization, the Local Agency will inspect, maintain, and revise the Best Management Practice devices (BMPs) in accordance with DEQ permit requirements until final stabilization is met and permit coverage is terminated. d. MDT agrees to pay annual fees associated with permit coverage until termination. To ensure payment, the Local Agency must forward invoices to MDT’s Environmental Services Bureau. 2. Small Municipal Separate Storm Sewer System (MS4) Permit a. MDT concludes, and the City agrees, the Project work is designed in compliance with applicable Small MS4 Permit requirements. b. The City agrees to operate, monitor and maintain storm water management features in compliance with applicable MS4 requirements. ARTICLE IV. PROJECT-SPECIFIC FEATURES 1. Sidewalks – West Peach Street (U-1204), West Oak Street (U-1202), and West Oak Street (L-16-1117) a. Upon completion of the Project by the State and its Contractor, the City agrees to maintain and repair the sidewalks within the Project limits on West Peach Street and West Oak Street and ensure they are safe and functional for the traveling public. 21 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 5 of 11 2. Sidewalks – North 7th Avenue (N-118) a. Upon completion of the Project by the State and its Contractor, the City agrees to maintain and repair the sidewalks within the Project limits on North 7th Avenue in accordance with the City/State N 7th MOA and any duly executed amendments thereto. 3. Lighting – West Peach Street (U-1204), West Oak Street (U-1202) and West Oak Street (L-16-1117) a. Upon completion of the Project by the State and its Contractor, the City agrees that it is responsible, at no cost to MDT, to service, maintain, repair and pay the costs of operating (including utility costs) the decorative and/or pedestrian lighting installed as part of this Project. b. For the purposes of this Agreement, “maintenance of street lighting”, is defined as: the inspection of the lighting system for operation, cleaning lamps, lenses and reflectors, stocking of replacement parts, bulb replacement, and repairs to and replacement of damaged fixtures. c. Any major repair costs for lighting damage not recoverable from third parties shall be the responsibility of the City. d. If the cost of energy is raised by the utility company, the City, town or special improvement district shall pay their proportionate share of the rate increase. 4. Lighting – North 7th Avenue (N-118) a. Upon completion of the Project by the State and its Contractor, the City agrees to maintain and repair the lighting within the Project limits on North 7th Avenue in accordance with the City/State N 7th MOA and any duly executed amendments thereto. 5. Landscaping/Irrigation Equipment – West Peach Street (U-1204), West Oak Street (U-1202) and West Oak Street (L-16-1117) a. Upon completion of the Project by the State and its Contractor, the City agrees that it is responsible, at no cost to MDT, to service, maintain and repair the landscaping and irrigation equipment installed as part of this Project. b. For the purposes of this Agreement, “maintenance of landscaping and irrigation system,” is defined as: mowing, watering, debris removal, weed control, fertilizing, tree/shrub trimming including removal, replacement and maintenance of sight triangles, the repair and replacement of fences, and 22 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 6 of 11 maintenance of all features in compliance with ADA/PROWAG. The irrigation system shall be fully operational, free of leaks, with heads selected and adjusted to reduce water waste. c. If the City is not able to complete the maintenance on the landscaping and irrigation system as per this Agreement, the improvements may become the property of MDT, without reimbursement. If landscaping or irrigation become MDT property, MDT will maintain the property as it sees fit and may remove the landscaping and irrigation system without City approval. MDT may seek compensation for the maintenance or removal of the landscaping and irrigation system from the City. 6. Landscaping/Irrigation Equipment – North 7th Avenue (N-118) a. Upon completion of the Project by the State and its Contractor, the City agrees to maintain and repair the landscaping/irrigation equipment within the Project limits on North 7th Avenue in accordance with the City/State N 7th MOA and any duly executed amendments thereto. 7. City Signage – North 7th Avenue (N-118), West Peach Street (U-1204), West Oak Street (U-1202) and West Oak Street (L-16-1117) a. Upon completion of the Project by the State and its Contractor, the City agrees that it is responsible, at no cost to MDT, to maintain the City signs within the Project. b. For the purposes of this Agreement, “maintenance of signs,” is defined as: the inspection, cleaning, repair and replacement of signs damaged through weathering, vandalism, wind, or other means. ARTICLE V. GENERAL TERMS AND CONDITIONS 1. Term – The term of this Agreement shall be ten (10) years. After the initial ten (10) year term, this Agreement will renew automatically, for successive one (1) year terms, unless superseded by a new Agreement between the parties. 2. Termination – This Agreement may be terminated by MDT if the City violates or breaches any term, condition, or article of this Agreement and the City has failed to correct (or reasonably initiate correction) within 60 days of receiving notice in writing addressed to the City’s representative, of such violation or breach of any term, condition, or article of this Agreement. If this Agreement is terminated, the improvements become the property of MDT, without reimbursement. MDT will maintain the property as it sees fit and may remove the improvements without City 23 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 7 of 11 or landowner approval. MDT may seek compensation for maintenance or removal of the improvements from the City. 3. Other Agreements – Other Agreements pertaining to the project area remain in full force and effect. In the case of a conflict between this Agreement and a previously executed Agreement, the terms of this Agreement apply. 4. Hold Harmless & Indemnification a. The City agrees to protect, defend, indemnify, and hold MDT, its elected and appointed officials, agents, and employees, while acting within their duties as such, harmless from and against all claims, liabilities, demands, causes of action, and judgments ( including the cost of defense and reasonable attorney fees) arising in favor of or asserted by the City’s employees or third parties on account of personal or bodily injury, death or damage to property, arising out of the acts or omissions of the City, its agents, or sub-contractors, under this Agreement, except the negligence of MDT. b. MDT agrees to protect, defend, indemnify, and hold the City, its elected and appointed officials, agents, and employees, while acting within their duties as such, harmless from and against all claims, liabilities, demands, causes of action, and judgments ( including the cost of defense and reasonable attorney fees) arising in favor of or asserted by the MDT’s employees or third parties on account of personal or bodily injury, death or damage to property, arising out of the acts or omissions of MDT, its agents, or sub-contractors, under this Agreement, except the negligence of the City. 5. Insurance a. General Requirements: Each party shall maintain for the duration of this Agreement, at its own cost and expense, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the duties and obligations in this Agreement by each party, its agents, employees, representatives, assigns, or sub-contractors. This insurance shall cover such claims as may be caused by any negligent act or omission. b. General Liability Insurance: Each party shall purchase and maintain occurrence coverage with combined single limits for bodily injury, personal injury, and property damage of $1 million per occurrence and $2 million aggregate per year to cover such claims as may be caused by or arising out of any negligent acts or omissions in work or services performed under this Agreement, or as established by statutory tort limits as provided by a public entity self-insurance program either individually or on a pool basis as provided by Mont. Code Ann. Title 2, Chapter 9. 24 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 8 of 11 c. General Provisions: All insurance coverage must be with a carrier licensed to do business in the State of Montana or by a public entity self-insured program either individually or on a pool basis. Each party must notify the other immediately of any material change in insurance coverage, such as changes in limits, coverage, change in status of policy, etc. Each party reserves the right to request complete copies of the other party’s insurance policy or self-insured memorandum of coverage at any time. d. Workers’ Compensation Insurance: The City must maintain workers’ compensation insurance and require its contractors and its contractor’s sub- contractors to carry their own workers compensation coverage while performing work within MDT right-of-way in accordance with Mont. Code Ann. §§39-71-401 and 39-71-405. Neither the contractor nor its employees are employees of MDT. This insurance/exemption must be valid for the entire Agreement period. 6. Public Safety It is agreed, if any repairs to the elements of the Project must be performed to address or prevent a public hazard, the City will immediately protect the area from public access, contact the appropriate MDT District Maintenance Office, and make reasonable and timely effort to correct or repair the hazard. 7. Invoicing and Indirect Cost (IDC) If MDT incurs any costs resulting from this Agreement, MDT shall be entitled to be compensated for such costs by the City and the City shall pay the same within thirty (30) days of its receipt of such invoices. Mont. Code Ann. §17-1-106, requires any state agency, including MDT, which receives non-general funds to identify and recover its indirect costs (IDC). These costs are in addition to direct project costs. MDT’s IDC rate is determined annually as a percentage of the project’s direct costs to cover the project’s share of MDT’s IDC as defined by 2 CFR Part 200, Appendix VII. MDT’s current IDC rate is 11.32% for fiscal year 2025 (July 1, 2024 to June 30, 2025). If the work occurs or extends into fiscal year 2025 or beyond the IDC rate will be charged at the rate agreed to by MDT and FHWA. i. Invoice will be sent to: City of Bozeman Attn: Nicholas Ross, Director of Transportation and Engineering P.O. Box 1203 Bozeman, MT 59770 nross@bozeman.net ii. Payments shall be made to: Montana Department of Transportation Attention: Collections 25 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 9 of 11 2701 Prospect Avenue PO Box 201001 Helena, MT 59620-1001 8. Choice of Law and Venue – This Agreement shall be governed by the laws of Montana. The parties agree that any litigation concerning this Agreement must be brought in the First Judicial District Court, in and for the County of Lewis and Clark, State of Montana, and each party shall pay its own costs and attorney fees except as otherwise noted in this agreement. 9. Binding Effect -- The benefits and obligations set forth in this Agreement shall be binding upon, and inure to the benefit of, their respective successors, administrators and assigns of the Parties. 10. Relationship of Parties -- Nothing contained in this Agreement shall be deemed or construed (either by the parties hereto or by any third party) to create the relationship of principal and agent or create any partnership joint venture or other association between the Parties. 11. Non-Discrimination – The City will require that during the performance of any work arising out of this Agreement the City, for itself, assignees, and successors shall comply with all applicable non-discrimination regulation set forth in Attachment “A” attached hereto and made part of this Agreement. 12. ADA - MDT requires that any construction resulting from this Agreement must include appropriate pedestrian facilities that meet or exceed current MDT standards for accessibility as set forth by the United States Department of Justice 2010 ADA Standards for Accessible Design, United States Access Board Accessibility Guidelines for Pedestrian Facilities in the Public Right-of-Way, and MDT’s Detailed Drawings, 608 series. 13. Audit – The City grants to the Legislative Auditor and the Legislative Fiscal Analysts the right, without prior notice and during normal business hours, to audit, at their own costs and expense, all records, reports, and other documents, the City maintains in connection with this Agreement. 14. Utilities -- This Agreement is subject to the right of any private or public utility entity now lawfully occupying the right-of-way to continue to operate and maintain utility facilities thereupon. Copies of existing utility permits may be obtained from the MDT District Utility Agent. 15. Amendment and Modification -- This Agreement may be modified or amended only by written Addendum signed by the parties. In addition to the terms and conditions contained herein, the provisions of any Addendum may be incorporated and made a part hereof by this reference in the terms of the amendment so provided. In the event of any conflict between the terms and conditions hereof and the provisions of any Addendum, the provision of the Addendum shall control, unless the provisions thereof are prohibited by law. 26 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 10 of 11 16. Access and Retention of Records – The City agrees to provide the State, Legislative Auditor, or their authorized agents access to any records necessary to determine compliance with the Agreement. The City agrees to create and retain records supporting this Agreement for a period of three (3) years after the completion date of the Agreement or the conclusion of any claim, litigation or exception relating to the State of Montana or a third party. 17. Representatives a. City’s Representative: The City’s Representative for this Agreement shall be the City Manager or designee 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, MDT may direct its communication or submission to other designated City personnel or agents. b. MDT’s Representative: The MDT Representative for this Agreement shall be the District Administrator or Maintenance Chief or such other individual as MDT shall designate in writing. Whenever direction to or communication with MDT is required by this Agreement, such direction or communication shall be directed to MDT’s Representative; provided, however, that in exigent circumstances when MDT’s Representative is not available, City may direct its direction or communication or submission to other designated MDT personnel or agents. 18. Counterpart Execution – This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same Agreement. The counterparts of this Agreement may be executed and delivered by facsimile or other electronic signature by any of the parties to any other party and the receiving party may rely on the receipt of such document so executed and delivered by facsimile or other electronic means as if the original had been received. 27 MDT-ENG-011 V 1.3 – Rev 9/12/23 Page 11 of 11 IN WITNESS WHEREOF, MDT’s authorized representative has hereunto signed on behalf of the State of Montana, and the City’s authorized representative on behalf of the City, has signed and affixed hereto the seal of the City. STATE OF MONTANA, DEPARTMENT OF TRANSPORTATION By Montana Department of Transportation Date Approved for Legal Content Approved for Civil Rights CITY OF BOZEMAN Chuck Winn, Interim City Manager Date ATTEST: APPROVED AS TO FORM AND CONTENT: Mike Mass, City Clerk Greg Sullivan, City Attorney 28 ATTACHMENT A: MDT NONDISCRIMINATION AND DISABILITY ACCOMMODATION NOTICE 29 Page 1 of 4 Rev. 01/2022 MDT NONDISCRIMINATION AND DISABILITY ACCOMMODATION NOTICE Montana Department of Transportation (“MDT”) is committed to conducting all of its business in an environment free from discrimination, harassment, and retaliation. In accordance with State and Federal law MDT prohibits any and all discrimination and protections are all inclusive (hereafter “protected classes”) by its employees or anyone with whom MDT does business: Federal protected classes State protected classes Race, color, national origin, sex, sexual orientation, gender identity, age, disability, income-level & Limited English Proficiency Race, color, national origin, parental/marital status, pregnancy, childbirth, or medical conditions related to pregnancy or childbirth, religion/creed, social origin or condition, genetic information, sex, sexual orientation, gender identification or expression, ancestry, age, disability mental or physical, political or religious affiliations or ideas, military service or veteran status, vaccination status or possession of immunity passport For the duration of this contract/agreement, the PARTY agrees as follows: (1) Compliance with Regulations: The PARTY (hereinafter includes consultant) will comply with all Acts and Regulations of the United States and the State of Montana relative to Non- Discrimination in Federally and State-assisted programs of the U.S. Department of Transportation and the State of Montana, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract. (2) Non-discrimination: a. The PARTY, with regard to the work performed by it during the contract, will not discriminate, directly or indirectly, on the grounds of any of the protected classes in the selection and retention of subcontractors, including procurements of materials and leases of equipment, employment, and all other activities being performed under this contract/agreement. b. The PARTY will provide notice to its employees and the members of the public that it serves that will include the following: i. A statement that the PARTY does not discriminate on the grounds of any protected classes. ii. A statement that the PARTY will provide employees and members of the public that it serves with reasonable accommodations for any known disability, upon request, pursuant to the Americans with Disabilities Act as Amended (ADA). iii. Contact information for the PARTY’s representative tasked with handling non- discrimination complaints and providing reasonable accommodations under the ADA. iv. Information on how to request information in alternative accessible formats. 30 Page 2 of 4 Rev. 01/2022 c. In accordance with Mont. Code Ann. § 49-3-207, the PARTY will include a provision, in all of its hiring/subcontracting notices, that all hiring/subcontracting will be on the basis of merit and qualifications and that the PARTY does not discriminate on the grounds of any protected class. (3) Participation by Disadvantaged Business Enterprises (DBEs): a. If the PARTY receives federal financial assistance as part of this contract/agreement, the PARTY will make all reasonable efforts to utilize DBE firms certified by MDT for its subcontracting services. The list of all currently certified DBE firms is located on the MDT website at mdt.mt.gov/business/contracting/civil/dbe.shtml b. By signing this agreement, the PARTY assures MDT that: The contractor, sub recipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate. c. The PARTY must include the above assurance in each contract/agreement the PARTY enters. (4) Solicitation for Subcontracts, Including Procurement of Materials and Equipment: In all solicitations, either by competitive bidding, or negotiation, made by the PARTY for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the PARTY of the PARTY’s obligation under this contract/agreement and all Acts and Regulations of the United States and the State of Montana related to Non-Discrimination. (5) Information and Reports: The PARTY will provide all information and reports required by the Acts, Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information and its facilities as may be determined by MDT or relevant US DOT Administration to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish the information, the PARTY will so certify to MDT or relevant US DOT Administration, as appropriate, and will set forth what efforts it has made to obtain the information. (6) Sanctions for Noncompliance: In the event of a PARTY’s noncompliance with the Non- discrimination provisions of this contract/agreement, MDT will impose such sanctions as it or the relevant US DOT Administration may determine to be appropriate, including, but not limited to: a. Withholding payments to the PARTY under the contract/agreement until the PARTY complies; and/or b. Cancelling, terminating, or suspending the contract/agreement, in whole or in part. 31 Page 3 of 4 Rev. 01/2022 (7) Pertinent Non-Discrimination Authorities: During the performance of this contract/agreement, the PARTY, for itself, its assignees, and successor in interest, agrees to comply with the following non-discrimination statutes and authorities; including but not limited to: Federal - Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21; - The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); - Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), (prohibits discrimination on the basis of sex); - Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27; - The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age); - Airport and Airways Improvement Act of 1982, (49 U.S.C. § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); - The Civil Rights Restoration Act of 1987, (PL 100-209), (broadened the scope, coverage, and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients, and contractors, whether such programs or activities are Federally funded or not); - Titles II and III of the Americans with Disabilities Act, which prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as implemented by Department of Transportation regulations at 49 CFR parts 37 and 38; - The Federal Aviation Administration’s Non-Discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); - Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which prevents discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; - Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of Limited English Proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); 32 Page 4 of 4 Rev. 01/2022 - Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. § 1681 et seq.). - Executive Order 13672 prohibits discrimination in the civilian federal workforce on the basis of gender identity and in hiring by federal contractors on the basis of both sexual orientation and gender identity. State - Mont. Code Ann. § 49-3-205 Governmental services; - Mont. Code Ann. § 49-3-206 Distribution of governmental funds; - Mont. Code Ann. § 49-3-207 Nondiscrimination provision in all public contracts. (8) Incorporation of Provisions: The PARTY will include the provisions of paragraph one through seven in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and/or directives issued pursuant thereto. The PARTY will take action with respect to any subcontract or procurement as MDT or the relevant US DOT Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the PARTY becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the PARTY may request MDT to enter into any litigation to protect the interests of MDT. In addition, the PARTY may request the United States to enter into the litigation to protect the interests of the United States. 33 Memorandum REPORT TO:City Commission FROM:Nick Pericich Shawn Kohtz SUBJECT:Authorize the City Manager to sign The First amendment to the Professional Services Agreement with Summit Utilities LLC for Utility Locating Services MEETING DATE:January 14, 2025 AGENDA ITEM TYPE:Agreement - Vendor/Contract RECOMMENDATION:Authorize the City Manager to sign this document STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and maintenance for existing and new infrastructure. BACKGROUND:Summit Utilities performs utility locate requests for water, sanitary sewer, stormwater, signals and lighting after a successful request for proposal in 2023. Summit Utilities was purchased by Stake Center and the agreement was adjusted to reflect that. There is no fundamental change with the operation of Summit, just a change reflecting the new partnership. UNRESOLVED ISSUES:None ALTERNATIVES:N/A FISCAL EFFECTS:The fiscal components are not changing. Attachments: PSA Amendment Summit Utilities 1.2.25.docx Report compiled on: January 2, 2025 34 First Amendment to Professional Services Agreement for Damage Prevention Services Page 1 of 2 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT THIS FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR Damage Prevention Services dated March 21, 2023, (the “Agreement”) is made and entered into this 14th day of January, 2025, 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 Summit Utility Services, LLC, with a mailing address of PO Box 10 Arlee, MT 59821, hereinafter referred to as “Contractor.” In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree to amend the Agreement as follows: 1.Modification and Assignability. Section 16 of the Agreement allows for the modification and assignment of the contract with the City’s written consent. Contractor underwent a change in ownership on or around December 31, 2024, and notified the City accordingly. Specifically, Contractor advised the City of the following: “Summit Holding Company LLC, f/k/a Summit Utility Services, LLC, (“Legacy Summit”) plans to enter into an agreement to transfer the assets, rights, and operations of its business to Summit Utility Services, LLC (“Summit”), a newly formed and wholly owned direct subsidiary of Legacy Summit (the “Transfer”), and, following the Transfer, an affiliate of Stake Center will purchase 100% of the equity interests in Summit (the “Purchase”, and, together with the Transfer, the “Transaction”).” The City hereby agrees to the modification of ownership of Contractor and assigns the Agreement to Contractor under new ownership. Contractor remains bound by all the terms and conditions of the Agreement. 2.Agreement still valid. All remaining terms and provisions of the Agreement remain valid. **** END OF AGREEMENT EXCEPT FOR SIGNATURES **** 35 First Amendment to Professional Services Agreement for Damage Prevention Services Page 2 of 2 IN WITNESS WHEREOF,the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA SUMMIT HOLDING COMPANY, LLC By________________________________By_____________________________ Chuck Winn, Interim City Manager Print Name: Troy Holzworth Title: President APPROVED AS TO FORM By_______________________________ Greg Sullivan, Bozeman City Attorney 36 Memorandum REPORT TO:City Commission FROM:Melissa Hodnett, Finance Director Janeen Hathcock, Senior Audit Manager, Eide Bailly SUBJECT:Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2024 and Audit Results MEETING DATE:January 14, 2025 AGENDA ITEM TYPE:Finance RECOMMENDATION:Consider the Motion: I move to approve the Fiscal Year 2024 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 2024, and the clean unmodified opinion expressed by the audit firm of Eide Bailey LLC (EB) has been included in the accompanying Annual Comprehensive Financial Report (ACFR). The ACFR of the CITY OF BOZEMAN, MONTANA for the fiscal year ended JUNE 30, 2024 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 37 of the City's financial activities have been included. The ACFR is presented in four sections, beginning with an Introduction Section. This contains the letter of transmittal of the ACFR, 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) which provides an overview of the City's financial performance over the fiscal year, the basic and fund financial statements, and the accompanying note disclosures to the financial statements. The basic financial statements provide a summary of the government wide funds and include the Statement of Net Position and the Statement of Activities. The accompanying fund financial statements provide financial detail of the governmental funds, the proprietary funds, and the fiduciary funds, as well as the combining individual funds financial statements for the nonmajor governmental and proprietary funds and the internal service funds. The Statistical Section contains selected financial and demographic information on a multi-year basis. The Single Audit section is an addition to the financial audit that the City undertakes in conformance with the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Audits. The results of the 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 contained in the City's single audit report. UNRESOLVED ISSUES:None ALTERNATIVES:N/A FISCAL EFFECTS:An unmodified or "clean" 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: City of Bozeman 2024 Governance Letter.pdf FY 2024 City of Bozeman ACFR_12.20.2024.pdf Report compiled on: December 20, 2024 38 1 December 20, 2024 To the Honorable Mayor and Members of the City Commission City of Bozeman, Montana We have audited the financial statements of City of Bozeman as of and for the year ended June 30, 2024, and have issued our report thereon dated December 20, 2024. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance As communicated in our letter dated September 13, 2024, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and to express an opinion on whether the City of Bozeman complied 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 of Bozeman major federal programs. Our audit of the financial statements and major program compliance does not relieve you or management of its respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of City of Bozeman solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. Our responsibility, as prescribed by professional standards as it relates to the audit of City of Bozeman major federal program compliance, is to express an opinion on the compliance for each of City of Bozeman major federal programs based on our audit of the types of compliance requirements referred to above. An audit of major program compliance includes consideration of internal control over compliance with the types of compliance requirements referred to above as a basis for designing audit procedures that are appropriate in the circumstances 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, as a part of our major program compliance audit, we considered internal control over compliance for these purposes and not to provide any assurance on the effectiveness of the City of Bozeman’s internal control over compliance. What inspires you, inspires us. | eidebailly.com 401 N. 31st St., Ste. 1120 | P.O. Box 7112 | Billings, MT 59103-7112 | TF 800.824.9797 | T 406.896.2400 | F 406.252.8600 | EOE 39 2 We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. We have provided our comments regarding internal controls during our audit in our 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 dated December 20, 2024. We have also provided our comments regarding compliance with the types of compliance requirements referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated December 20, 2024. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence. Significant Risks Identified As stated in our auditor’s report, professional standards require us to design our audit to provide reasonable assurance that the financial statements are free of material misstatement whether caused by fraud or error. In designing our audit procedures, professional standards require us to evaluate the financial statements and assess the risk that a material misstatement could occur. Areas that are potentially more susceptible to misstatements, and thereby require special audit considerations, are designated as “significant risks.” We have identified the following as significant risks. • Management Override - Professional standards require auditors to address the possibility of management overriding controls. Accordingly, we identified as a significant risk that management of the City may have the ability to override controls that the organization has implemented. Management may override the City’s controls in order to modify the financial records with the intent of manipulating the financial statements to overstate the organization’s financial performance or with the intent of concealing fraudulent transactions. • Revenue Recognition - We identified revenue recognition as a significant risk in the areas of receivables and unavailable revenue received due to management judgment and financial and operational incentives for the City to overstate revenues. • Capitalization – We identified capitalization as a significant risk based on our professional judgment that potential errors could be made in the capital asset reconciliation process and incorrectly classified as additions. • Donated Infrastructure Assets – We identified donated infrastructure assets as a significant risk due to there being a significant estimate involved with these items. • Net Pension/OPEB Liability– We identified NPL/NOL as a significant risk due to there being a significant estimate involved with these items. • Impact fee calculation– We identified impact fee calculation as a significant risk due to there being issues in the prior year audit. 40 3 Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by City of Bozeman is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements are: Management’s estimate of the valuations surrounding the net pension and OPEB liability are based on actuarial valuations. The estimate of the incurred but not reported claims are based on prior experience. We evaluated the key factors and assumptions used to develop the estimates and determined that the estimates are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting City of Bozeman’s financial statements relate to the disclosures of Defined Benefit Pension Plans 11; Risk Management in Note 17; and Commitments in Note 22. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future- period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. 41 4 There were no corrected misstatements that we identified as a result of our audit procedures. The effect of the reversal of a prior year uncorrected misstatement as of and for the year ended June 30, 2024, is an overstatement of income of $165,520, and overstatement of fund balance for aggregate remaining of $165,520. The following summarizes corrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole, however was elected to be corrected by management. Government wide: DR. Accounts Receivable $361,364 CR. Accounts Payable $189,084 CR. Revenue 172,280 Correct County property tax levy totals Aggregate remaining: DR. Accounts Receivable $361,364 CR. Accounts Payable $189,084 CR. Revenue 172,280 Correct County property tax levy totals Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. We did not identify any circumstances that affect the form and content of the auditor’s report. Representations Requested from Management We have requested certain written representations from management which are included in the management representation letter dated December 20, 2024. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. 42 5 Other Significant Matters, Findings, or Issues In the normal course of our professional association with City of Bozeman, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as City of Bozeman’s auditors. Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in City of Bozeman’s annual reports, does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements. The financial statements include the financial statements of the Bozeman Public Library Foundation (“the Foundation), which we considered to be a significant component of the consolidated financial statements. The financial statements of the Foundation were audited by other auditors and we did not assume responsibility for the audit performed by the other auditors, rather have referred to their audit in our report. Our decision to refer to the report of the other auditor is based upon– (1) our evaluation of the materiality of the Foundation with respect to the consolidated financial statements as a whole; (2) the ability for group management to provide necessary audit evidence with respect to the Foundation; (3) our consideration of the timing requirements of the engagempent. Our audit procedures with respect to the Foundation included required correspondence with the other auditor, obtaining and reading their auditor’s report and the related financial statements, and other procedures as considered necessary. Our audit procedures with respect to Rudd and Company, PLLC included obtaining an understanding of Rudd and Company, PLLC and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements of Rudd and Company, PPLC and completion of further audit procedures. This report is intended solely for the information and use of the City Commission, and management of City of Bozeman and is not intended to be, and should not be, used by anyone other than these specified parties. Billings, Montana 43 Annual Comprehensive Financial Report Year Ended June 30, 2024 City of Bozeman, Montana Prepared by the Finance Department 44 Introductory Section Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I Listing of City Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VI Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VII Certificate of Achievement for Excellence in Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VIII Financial Section Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Management's Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Fund Financial Statements Balance Sheet - Government Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Reconciliation of the Governmental Funds Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Proprietary Funds Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Statement of Revenues, Expenses and Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Fiduciary Funds Statement of Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Statement of Changes in Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 Notes to the Schedule of Changes in Total OPEB Liability and Related Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104 Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions . . . . . . . . . . . . .105 Montana Public Employees Retirement System Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105 Montana Firefighters' Retirement System Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106 Montana Municipal Police Officers' Retirement System Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 Notes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions . . .108 Schedule of Revenue, Expenditures, and Changes in Fund Balances - Budget to Actual - Budgetary Basis General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 Major Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113 Notes to the Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget to Actual – Budgetary Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 City of Bozeman, Montana Table of Contents June 30, 2024 45 Other Supplementary Information Combining and Individual Fund Statements and Schedules Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Major Debt Service Fund and Major Capital Projects Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Nonmajor Governmental Funds Description of Nonmajor Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117 Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . . . . . . . . . . . . . .126 Expenditures, and Changes in Fund Balances - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .134 Nonmajor Enterprise Funds Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146 Combining Statement of Revenues, Expenditures, and Changes in Net Position . . . . . . . . . . . . . . . . . . . . . .147 Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148 Internal Service Funds Description of Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149 Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150 Combining Statement of Revenues, Expenditures, and Changes in Net Position . . . . . . . . . . . . . . . . . . . . . .152 Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153 Custodial Funds Description of Custodial Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154 Combining Statement of Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155 Combining Statement of Changes in Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156 Statistical Section Introduction to Statistical Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158 Financial Trends Components of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160 Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161 Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164 Changes in Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165 Revenue Capacity Assessed Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167 City Taxable Market and Taxable Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168 Tax Increment District Taxable Valuation Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169 Downtown Bozeman Improvement District & Comparison to City Taxable Value . . . . . . . . . . . . . . . . . . . . . . . .172 Property Tax Levies for Tax Increment/Urban Renewal Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173 Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .174 Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175 Principal Property Taxpayers in Downtown Bozeman Improvement District . . . . . . . . . . . . . . . . . . . . . . . . . . . .176 Properties in the Bozeman Midtown Urban Renewal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177 Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District . . . . . . . . . . . . . . . . . . .178 Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179 Water Sold by Type of Customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180 Water and Sewer Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181 City of Bozeman, Montana Table of Contents June 30, 2024 46 Debt Capacity Ratios of Outstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .182 Ratios of General Bonded Debt Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183 Ratios of General Bonded Debt Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184 Legal Debt Margin Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185 Pledged Revenue Coverage – Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186 Pledged Revenue Coverage – Business-Type Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .187 Debt Service Requirements and Coverage for Tax Increment Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .188 Summary of Outstanding SIDs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189 Revolving Fund Balance and Bond Secured Thereby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .190 Special Improvement District Assessment Billing and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191 Demographic and Economic Information Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192 Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193 Operating Information Full-Time Equivalent City Government Employees by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .194 Operating Indicators by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195 Capital Assets Statistics by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196 Single Audit Section 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Schedule of Expenditures of Federal Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203 Notes to Schedule of Expenditures of Federal Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204 City of Bozeman, Montana Table of Contents June 30, 2024 47 Introductory SectionYear Ended June 30, 2024City of Bozeman, Montana 48 Letter of Transmittal December 20, 2024 To the Honorable Mayor, City Commission, and 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, 2024, is hereby submitted. The financial statements and supporting schedules have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and meet the requirements of the standards as prescribed by the Secretary of State Audits Division. We believe the enclosed data, as presented, is 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 are included. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Eide Bailly LLP, Certified Public Accountants, have issued an unmodified or “clean” opinion on the City’s financial statements for the fiscal year ended June 30, 2024. The independent auditors report is located at the front of the Financial Section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. 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. CITY OF BOZEMAN PROFILE The City of Bozeman, home to 60,4251 residents, sits in the center of Gallatin County, flanked by the Bridger Mountains and Custer Gallatin National Forest, just south of the Missouri River Headwaters. This diverse Rocky Mountain landscape creates easy access to year-round outdoor activities for Bozeman residents including hiking, mountain biking, climbing, camping, fishing, and downhill and cross-country skiing. The City encompasses an area of approximately 20 square miles with its next-closest municipality being the City of Belgrade, approximately seven miles from the City’s outermost boundary. Bozeman is the county seat of Gallatin County, with a population of 132,441. Bozeman has a uniquely diverse economy, highly educated workforce, and exceptional quality of life. 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 the 2020 census is 53,293 – which is a total increase of 43% from April 2010 – continues Bozeman’s standing as the fourth largest city in the state. 1US Census; ESRI Business Analyst; Economic & Planning Systems Inc. I 49 The government provides a full range of services. These services include police and fire protection; sanitation services; water, wastewater & storm water utilities; the construction and maintenance of transportation infrastructure; recreational activities including construction and maintenance of parks & trails; planning and zoning; and general administrative services. ECONOMIC OUTLOOK Bozeman has earned recognition as one of the most desirable places to live in the United States, thanks to its unparalleled access to outdoor recreation activities and uncrowded spaces. As Montana’s fourth-largest city and the largest city in Gallatin County, Bozeman serves as a dynamic urban hub with a vibrant downtown featuring street festivals, farmers markets, lively nightlife, and cultural venues that attract residents and visitors alike. Bozeman’s collegiate atmosphere, fueled by its role as home to Montana State University (MSU), makes it a gateway for newcomers and a driving economic force for the region. In 2024, Bozeman was ranked #1 for Strongest Economy among the fastest growing micropolitan cities by POLICOM for the seventh consecutive year. Economic strength is defined as “the long-term tendency for an area to consistently grow in both size and quality.” Bozeman’s 2023 estimated population is 60,4252 residents, reflecting a 3.7% average annual growth rate between 2010 and 2023. Bozeman is one of the fastest growing U.S. cities, adding an estimated 1,800 residents per year since 2010. While Bozeman’s economy has historically been concentrated in tourism and retail sectors—known for lower-wage jobs—there is notable growth in knowledge-based industries, such as professional and technical services, as well as in manufacturing. Enrollment at MSU continues to grow, particularly in high-demand technology and engineering programs, attracting talent, and contributing to population and economic growth. Bozeman’s real estate market remains robust. As of Q2 2024, the median price for a single-family home is $784,500, a 71% increase from the 2019 median of $460,000. Recent construction has played a role in moderating appreciation: from 2018-2023, multifamily housing accounted for 54.4% of total new residential construction, while single-family attached units made up 26.8%. More than eight major apartment complexes with 50+ units have been completed between 2023 and mid-2024. Construction activity has likely contributed to slowing home price appreciation in recent years. Bozeman saw a 3.6% decline in median home prices from 2022 to 2023, followed by a modest 1.9% increase through Q2 2024. Bozeman’s strong economic fundamentals, population growth, and expanding industries position the City for continued long-term success while maintaining its unique quality of life. 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 annually. 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. Public comment is accepted at all work sessions and budget adoption agenda items. During (or following) the work sessions, the Commissioners may adjust the recommended budget. Following any adjustments to the City Manager's budget recommendation, a tentative appropriation ordinance is prepared, and another public hearing is held. The Commission may make additional adjustments following the public hearing, after which time, the Commission passes the appropriation ordinance in final form. The legal level of budgetary control is established at the service area level. 2US Census; ESRI Business Analyst; Economic & Planning Systems Inc. II 50 FINANCIAL POLICIES The City of Bozeman is committed to responsible fiscal management through financial integrity, transparency, and long-term planning. The policies aim to ensure proper controls over financial resources, deliver quality services efficiently, maintain infrastructure, ensure financial stability, and protect the City’s credit rating. They are reviewed annually as part of the budget process. 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. One-time revenues will only be used to fund capital assets or other non-recurring expenditures. On-going expenditures are limited to levels which can be supported by conservatively projected 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. Long-term debt is limited to significant capital improvements which either cannot be financed from current revenues, or would result in intergenerational equity for tax or rate payers. All debt obligations will be repaid 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. The City updates its long-term financial projections on an on-going basis and identifies both current and long-term funding needs and challenges to ensure financial stability of the City into the future. The City maintains and updates long-term financial plans on at least an annual basis for the following funds and programs: General Fund (including Police and Fire), Water, Water Reclamation, Stormwater, Solid Waste, Parks & Trails District, Forestry District, and all Streets departments. A minimum level of General Fund operating reserve equal to 2 months of annual revenues, or 16.67%, is maintained in compliance with Bozeman Municipal Code. 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 operating 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. MAJOR INITIATIVES City Commission Priorities – 2024-2026 Every two years, Bozeman City Commission meets to discuss the priorities process, a list of goals that the elected body directs city staff to complete within a two-year time frame. All goals are important projects that impact our community and are unique activities that staff perform within the designated timeframe. Priorities for the 2025 Biennium were discussed at a public work session on January 26, 2024, and are based on the City’s Strategic Plan, adopted in 2018, and three major long-range plans – the Climate Action Plan, Community Affordable Housing Plan, and the Growth Policy. Final adoption of the priorities below occurred by resolution on August 6, 2024. III 51 An Engaged Community •Foster and build public trust, support, and pride in local government. Safe, Welcoming Community •Develop a Tenants Right to Counsel Program. •Develop a comprehensive regional strategy on homelessness. •Implement at least 8 recommendations from the Belonging in Bozeman Plan. A Well-Planned City•Rework and restore a new Historic Preservation Policy - including trees and landmarks. •Encourage the creation of ADUs in our city through an ADU Incentive Program. •Create an Affordable Housing Preservation Policy. •Ramp up the SAFE Plan and become a Gold-level Bike Friendly Community. •Sustainable Environment. •Create a Bozeman Creek Resiliency Plan. 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 Eide Bailly LLP, has been included in this report. Awards The Government Finance Officers' Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bozeman for its comprehensive annual financial report for the fiscal year ended June 30, 2023 and for the 40th consecutive year. The Certificate of Achievement is a prestigious national award that is an important recognition of conformance with the highest standards for preparation of state and local government financial reports. To be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized annual comprehensive financial report that conforms to program standards and satisfies generally accepted accounting principles and applicable legal requirements. The City believes this annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirement and will submit it to the GFOA to determine its eligibility for another certificate. The GFOA also presented an award of Distinguished Budget Presentation to the City of Bozeman, Montana, for its annual budget for the biennium beginning July 1, 2024, and ending June 30, 2026. The City has received this award for each budget it has prepared in the past 33 years. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. The award represents the City’s commitment to meeting the highest principles of governmental budgeting. IV 52 E Finance Acknowledgments A MT 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, with special thanks to Aaron Funk for his dedication and expertise in financial reporting. We would also like to express appreciation to the City Commission for their interest and support in planning and overseeing the operations of the City in a responsible and professional manner. Chuck Winn Interim City Manager Melissa Hodnett Director of Finance . . © 121 Nonh Rouse Avenue : @ �-i;e�;n1,21�� 59771.1230 , ® 406-582-2303 ® 406-582-23·11 www.bozemon.11et .. • TDD: 406-582-2301 THE MOST LIVABLE PLACE. V 53 Listing of City Officials Name Position Elected Officials Legislative Terence Cunningham Mayor Joey Morrison Deputy Mayor Emma Bode Commissioner Douglas Fischer Commissioner Jennifer Madgic Commissioner Judicial J. Colleen Herrington Municipal Judge Karolina Tierney Municipal Judge Officers Executive Chuck Winn Interim City Manager Jon Henderson Assistant City Manager Michael Maas City Clerk Department of Law Gregory Sullivan City Attorney Department of Finance Melissa Hodnett, MBA Finance Director Aaron Funk, CPA Controller Laurae Clark Treasurer Department of Economic Development Brit Fontenot Director of Economic Development Department of Information Technology Scott McMahan Information Technology Director Department of Human Resources Cassandra Tozer Human Resources Director Department of Public Safety James Veltkamp Chief of Police Josh Waldo Fire Chief Department of Public Service Nicholas Ross Director of Transportation and Engineering Jon Henderson Director of Strategic Services Department of Public Welfare Mitch Overton Director of Parks and Recreation Susan Gregory Director of Bozeman Public Library Development Erin George Interim Director of Community Development City of Bozeman, Montana Listing of City Officials June 30, 2024 VI 54 Organizational Chart City of Bozeman, Montana Organizational Chart June 30, 2024 VII 55 Certificate of Achievement for Excellence in Financial Reporting VIII 56 Financial SectionYear Ended June 30, 2024City of Bozeman, Montana 57 1 Independent Auditor’s Report To the Honorable Mayor and City Council City of Bozeman Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Bozeman (the City), as of and for the year ended June 30, 2024 and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Bozeman, as of June 30, 2024, 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. We did not audit the financial statements of the Bozeman Public Library Foundation, which represent 100%, of the net position, and revenues of the discretely presented component unit as of June 30, 2024. Those statements were audited by other auditors whose report(s) has been furnished to us, and our opinion, insofar as it relates to the amounts included for the discretely presented component unit, is based solely on the report(s) of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. What inspires you, inspires us. | eidebailly.com 401 N. 31st St., Ste. 1120 | P.O. Box 7112 | Billings, MT 59103-7112 | TF 800.824.9797 | T 406.896.2400 | F 406.252.8600 | EOE 58 2 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. 59 3 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in total OPEB liability and related ratios, schedules of employer’s share of net pension liability, schedules of employer’s contributions, and schedules of revenue, expenditures, and changes in fund balance – budget to actual – budgetary basis for the general fund and major special revenue funds be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining fund financial statements and the individual budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the combining fund financial statements and the individual budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 60 4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2024 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, 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. Billings, Montana December 20, 2024 61 Management's Discussion and Analysis Management of the City of Bozeman (the 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, 2024. 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, wastewater, 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. City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 5 62 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 operations. 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. City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 6 63 Government-wide Financial Analysis Net Position 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 $693.4 million at the close of the most recent fiscal year. Net position increased by $57.2 million this year as compared to a $48.6 million increase last year. Net position of the City includes $115.3 million (16.6%) of restricted net position. These are resources subject to external restrictions as to how they may be used by the City. The majority of the net position, 82.0%, is invested in capital assets (land, buildings, infrastructure, etc.) less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to community members; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate the liabilities. The following table presents condensed financial information on the City’s net position for the fiscal years ending June 30, 2024 and 2023. Governmental Activities Business-Type Activities Total 2024 2023 2024 2023 2024 2023 Assets Current and other assets $ 122,590,942 $ 108,097,028 $ 66,564,321 $ 61,772,593 $ 189,155,263 $ 169,869,621 Capital assets 329,123,620 298,922,399 345,864,779 338,222,054 674,988,399 637,144,453 Total assets 451,714,562 407,019,427 412,429,100 399,994,647 864,143,662 807,014,074 Deferred Outflows of Resources 9,359,680 8,250,714 1,966,535 1,302,625 11,326,215 9,553,339 Liabilities Other liabilities 16,610,221 19,669,995 2,792,289 2,827,483 19,402,510 22,497,478 Long-term liabilities 109,743,904 101,721,336 50,542,101 52,757,557 160,286,005 154,478,893 Total liabilities 126,354,124 121,391,331 53,334,390 55,585,040 179,688,515 176,976,371 Deferred Inflows of Resources 1,716,022 2,500,575 710,387 933,712 2,426,409 3,434,287 Net position Net investment in capital assets 259,727,878 236,885,005 308,955,362 297,691,119 568,683,239 534,576,124 Restricted 69,617,937 46,965,688 45,687,628 31,659,041 115,305,565 78,624,729 Unrestricted 3,658,281 7,527,542 5,707,868 15,428,360 9,366,149 22,955,902 Total net position $ 333,004,096 $ 291,378,235 $ 360,350,858 $ 344,778,520 $ 693,354,953 $ 636,156,755 City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 64 The following table presents condensed financial information on the City’s changes in net position for the fiscal years ending June 30, 2024 and 2023. Governmental Activities Business-Type Activities Total 2024 2023 2024 2023 2024 2023 Revenues Program revenues Charges for services $ 42,176,670 $ 36,321,320 $ 41,767,592 $ 35,954,215 $ 83,944,263 $ 72,275,535 Operating grants and contributions 13,255,074 12,843,761 1,677,660 1,435,529 14,932,734 14,279,290 Capital grants and contributions 14,726,239 14,514,120 7,079,665 11,084,423 21,805,904 25,598,543 General revenues Taxes 45,454,899 39,860,197 — — 45,454,899 39,860,197 Unrestricted intergovernmental 5,717,540 5,370,015 — — 5,717,540 5,370,015 Unrestricted investment earnings (losses) 4,448,723 1,118,619 3,102,361 833,995 7,551,084 1,952,614 Miscellaneous 3,348,246 1,225,899 329,371 226,026 3,677,617 1,451,925 Gain (loss) on disposal of capital assets 393,500 2,726,201 — (13,856) 393,500 2,712,345 Total revenues 129,520,891 113,980,132 53,956,649 49,520,332 183,477,540 163,500,464 Expenses General government 21,008,788 17,726,413 — — 21,008,788 17,726,413 Public safety 29,522,432 28,002,592 — — 29,522,432 28,002,592 Public service 14,780,608 14,646,742 — — 14,780,608 14,646,742 Public welfare 20,213,912 15,343,285 — — 20,213,912 15,343,285 Interest and fiscal charges 1,963,485 2,070,117 — — 1,963,485 2,070,117 Water — — 15,227,618 13,882,728 15,227,618 13,882,728 Waste water — — 13,276,495 11,979,470 13,276,495 11,979,470 Solid waste — — 6,835,328 7,980,984 6,835,328 7,980,984 Parking — — 1,598,141 1,565,405 1,598,141 1,565,405 Stormwater — — 1,847,848 1,711,451 1,847,848 1,711,451 Total expenses 87,489,225 77,789,149 38,785,430 37,120,038 126,274,655 114,909,187 Excess before transfers 42,031,665 36,190,983 15,171,219 12,400,294 57,202,885 48,591,277 Transfers (401,119) (1,667,658) 401,119 1,667,658 — — Change in net position 41,630,546 34,523,325 15,572,338 14,067,952 57,202,885 48,591,277 Beginning net position, as adjusted 291,373,550 256,854,910 344,778,520 330,710,568 636,152,070 587,565,478 Ending net position $ 333,004,096 $ 291,378,235 $ 360,350,858 $ 344,778,520 $ 693,354,954 $ 636,156,755 Governmental Activities The net position of the City’s governmental activities increased by $41.6 million or 14.3% from $291.4 million last year to $333.0 million this year due to revenues exceeding expenses. Governmental activities revenues for the year increased $15.5 million or 13.6%, from $114.0 million in fiscal year 2023 (FY23) to $129.5 million in fiscal year 2024 (FY24), while total expenses increased by $9.7 million or 12.5%, from $77.8 million in FY23 to $87.5 million in FY24. City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 8 65 Revenue by Source - Governmental Activities 32.6% 10.2% 11.4%35.1% 4.4% 3.4% 2.9% Charges for services Operating grants and contributions Capital grants and contributions Taxes Unrestricted intergovernmental Unrestricted investment earnings (losses) Miscellaneous Property tax revenues increased by $5.6 million or 14.0% from $39.9 million to $45.5 million. Mill values for the City of Bozeman increased by 54.7% based on the latest assessments from the Department of Revenue. The City levied 150.72 mills in fiscal year 2024 compared to 204.50 in the prior year. The increase in total revenue generated is a result of the City Commission's Adopted FY24 Budget which focuses on maintaining and improving the level of service the City provides to the citizens of Bozeman. Charges for services, which primarily includes street assessments, fire and street impact fees, and the park and trails assessments, increased by $5.9 million or 16.1% from $36.3 million in FY23 to $42.2 million in FY24. Street impact fees increased by $2.5 million or 48.7% from $5.2 million in FY23 to $7.7 million in FY24. Street impact fee revenues fluctuate significantly from year to year based on the volume, size, and timing of new development. General Fund charges for services increased by $1.4 million or 22% year over year. Charges for services in the General Fund are primarily billings to other City departments for services including the City Manager’s Office, Legal, Human Resources, Information Technology, and Finance. The increase year over year represents an increase in services provided to other departments. Parks & Trails District assessments increased by approximately $0.5 million or 8.2% from $5.8 million in FY23 to $6.3 million in FY24, due to a 7% increase in special assessments to pay for deferred maintenance and due to growth in the district. The Street Maintenance District assessment revenue increased by approximately $0.75 million or 9.2% due to a 8% increase in special assessments and growth in the district. Program expenses increased by $9.7 million or 12.5%, from $77.8 million in FY23 to $87.5 million in FY24. A combination of increased costs of operations expenditures and personnel costs resulted in this increase. General government expenses increased by $3.3 million or 18.5% from $17.7 million to $21.0 million. Approximately $0.6 million of the increase is attributed to salary and benefits increases, specifically an increase in the cost of providing health insurance, which was offset by savings from vacant positions. In addition, General Fund outside entity grants increased between FY23 and FY24 by $0.4 million. City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 9 66 Public safety expenses increased by $1.5 million or 5.4% from $28.0 million in FY23 to $29.5 million in FY24. Public service expenses increased by $0.1 million or 0.9% from $14.6 million in FY23 to $14.8 million in FY24 primarily in salaries & benefits. Negotiated contract increases for represented officers, four new patrol officer positions, and one new lieutenant position contributed to the increase. Public welfare expenses increased by $4.9 million or 31.7% from $15.3 million in FY23 to $20.2 million in FY24. Approximately $1.6 million and $1.9 million is attributed to grants, contributions, and development agreements provided from Community Housing and the Midtown Tax Increment District, respectively. Approximately $1.1 million is attributed to salary and benefits increases. Interest and fiscal charges decreased by approximately $0.11 or 5.2% from $2.07 million in FY23 to $1.96 million in FY24. The following graph illustrates how program revenues offset program expenses for the governmental activities. Expenses and Program Revenues - Governmental Activities $21,008,788 $29,522,432 $14,780,608 $20,213,912 $17,094,387 $6,333,264 $40,420,505 $6,309,827 Program Expenses Program Revenues General Government Public Safety Public Service Public Welfare $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 10 67 Business-Type Activities The net position of the City’s business-type activities increased by $15.6 million or 4.5% from $344.8 million last year to $360.4 million this year. Overall, the revenues provided by charges for services continued to exceed total expenses, the details of which are discussed further below. Business-type 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, storm water, and parking funds. Revenue by Source - Business-Type Activities 77.4% 3.1% 13.1% 6.4% Charges for Services Operating Grants and Contributions Capital Grants and Contributions Other General Revenues Business-type activities total revenues increased by $4.4 million or 9.0% from $49.5 million in FY23 to $54.0 million in FY24, and expenses increased by $1.7 million or 4.5%, from $37.1 million in FY23 to $38.8 million in FY24. Charges for services revenue increased by 16.2% or $5.8 million. Approximately, $3.3 million of the increase is attributable to increases in water and wastewater impact fees, which are contributions to the City by developers. In addition, user rates for water and wastewater increased 12% and user rates for solid waste increased by 8% during FY24. Impact fee revenues fluctuate significantly from year to year based on the volume, size, and timing of new development. Capital grants and contributions decreased by $4.0 million or 36.1% from $11.1 million in FY23 to $7.1 million in FY24. Restricted capital grants & contributions consist primarily of privately constructed water, wastewater, and storm water 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. City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 68 Operating Expenses – Water expenses increased by $1.3 million or 9.7%. Approximately $0.6 million is attributed to salary and benefits increases. Costs for materials and supplies as well as administrative charges increased by approximately $0.5 million. Wastewater expenses increased by $1.3 million or 10.8%. Approximately $0.6 million is attributed to salary and benefits increases. Costs for administrative charges and other services increased by approximately $0.8 million. Solid waste expenses decreased by $1.1 million or 14.4%. The decrease is attributable to a decrease in the estimated closure and post- closure costs of the landfill. In FY23 additional closure costs were estimated as a result of regulatory requirements, however no additional expenditures were required in FY24. Parking expenses and Stormwater expenses minimally increased by $0.03 million or 2.1%, and $0.1 million or 8.0%, respectively. Consistent with governmental activities, the increase in salary and benefits costs were primarily due to contracted increases in salaries and increases to the cost of providing benefits. The following graph illustrates how program revenues offset program expenses for the business-type activities. Expenses and Program Revenues - Business-Type Activities $15,227,618 $13,276,495 $6,835,328 $1,598,141 $1,847,848 $20,727,066 $19,129,334 $6,687,031 $1,220,769 $2,760,716 Program Expenses Program Revenues Water Waste Water Solid Waste Parking Stormwater $0 $2,500,000 $5,000,000 $7,500,000 $10,000,000 $12,500,000 $15,000,000 $17,500,000 $20,000,000 $22,500,000 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 June 30, 2024, the City’s governmental funds reported combined ending fund balances of $98.3 million, an increase of $17.3 million or 21.4% in comparison to the prior year. City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 12 69 The General Fund is the main operating fund of the City. The City’s total General Fund balance increased by $11.2 million or 74.3%, from $15.1 million in FY23 to $26.3 million in FY24. The majority of the increase in fund balance is related to $4.3 million in debt proceed and $1.8 million in transfers in to fund the General Fund portion of recreation capital projects. Projects are underway, however the majority of the General Fund funded portion of expenditures will occur in future years. Savings in operating costs compared to budget, including salaries & benefits, also contributed to the increase. Total General Fund expenditures increased by approximately $4.3 million, from $44.0 million in FY23 to $48.3 million in FY24. Approximately $1.5 million of the increase is in general government, and $1.6 million is in public safety expenditures. As noted above, these increases were primarily in salary and benefits costs based on contracted increases in salaries, an increased cost of providing benefits, and the increased costs of contracted services. Significant variances (variances over 10%) between original and final budgets for the General Fund were as follows: •The capital outlay budget in the General Fund was amended by $0.6 million to carry forward capital projects originally budgeted in fiscal year 2023 but not completed by June 30, 2023. Significant expenditures variances (variances over 10%) between the final budget compared to actual results were as follows: •General government actual expenditures were $3.1 million or 19% under budget. Significant budget savings due to vacancy in the City Manager's office is the main driver of this variance. Vacancy savings were also observed in the City Attorney's Office, Facilities Management Department, and Information Technology Department. In addition, Montana Budget Law requires local governments to budget all outflows of cash from the local government, resulting in the appearance of budget savings for subscription based technology arrangements. •Public welfare actual expenditures were $1.3 million or 15% under budget due primarily to vacancy savings and unexpended contract amounts that will be needed in future years. •The budget for other expenditures was $0.8 million under budget or 26%. The budget line item accounts for unanticipated expenditures that may occur during the fiscal year of up to 1% of the total General Fund budget. None of these funds were required in FY24. •Capital outlay expenditures were $0.9 million or 35% under budget due primarily to the City Hall Renovation project. The budget includes $1.5 million which will need to be carried forward to spend in FY25 and FY26. •Actual expenditures exceeded budget in debt principal and interest due to subscription-based technology arrangement non-cash adjustments that are not considered a disbursement, expenditure, or obligation per the Montana Local Government Budget Act. The Street Maintenance District Fund accounts for city-wide special assessments to pay for street maintenance expenditures. The fund balance increased $3.1 million from $1.8 million in FY23 to $4.9 million in FY24. Revenues increased from $8.8 million in FY23 to $12.8 million in FY24 due to an 8% increase in the billed assessment to support the approved budget and capital improvement plan, and an increase in gas tax apportionment from a one-time payment under the now- repealed Bridge and Road Safety Accountability Act (BaRSAA). The Downtown Improvement District accounts for the revenue and expenditures associated with this tax increment financing district. Fund balance increased $2.1 million or 39.7% from $5.3 million in FY23 to $7.4 million in FY24. The increase was primarily due to delays in planned projects for the downtown district. The delays also resulted in the budgeted expenditures exceeding actual expenditures by $5.1 million. City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 13 70 The SID Debt Service Fund accounts for the accumulation of resources and payment of special assessment bond principal and interest related to general improvement, sidewalk, and curb construction projects. SIDs or Special Improvement Districts are authorized under Montana Code Annotated (MCA) in order to undertake certain local improvements to benefit specific property owners located within City limits, and to assess the cost of those improvements to benefited property owners. Fund balance decreased by $0.48 million or 31.6% from $1.5 million in FY23 to $1.0 million in FY24. The decrease was primarily due to a transfer out to finance a special improvement district. The Construction Capital Projects Fund accounts for the construction of general improvement projects financed by special assessments other than those financed by proprietary funds. Fund balance decreased by $4.1 million or 39.2%, from $10.5 million in FY23 to $6.4 million in FY24. The decrease is primarily due to capital outlay expenditures related to significant capital projects largely completed in FY24. Capital Asset and Debt Administration Capital Assets At the end of FY24 the City had $675.0 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 $37.8 million or 5.9%, from $637.1 million in FY23 to $675.0 million in FY24. Major additions and capital projects during the year include: $6.6 million for Cottonwood Road construction and improvements; $2.4 million for swim center repairs and improvements, $9.4 million for construction of Fire Station 2, and $1.2 million for a new fire engine. The following table presents a summary of capital assets, net of accumulated depreciation/amortization as of June 30, 2024 and 2023. Amounts are shown in thousands. Governmental Activities Business-Type Activities Total 2024 2023 2024 2023 2024 2023 Capital assets (net of accumulated depreciation/amortization where applicable) Land $ 41,728 $ 38,073 $ 2,219 $ 2,219 $ 43,946 $ 40,292 Artwork 43 15 — — 43 15 Right of way/Intangibles — — 2,762 2,762 2,762 2,762 Construction in progress 26,756 19,467 7,641 6,576 34,397 26,043 Buildings 57,997 55,371 81,603 84,178 139,600 139,549 Improvements other than buildings — — 56 163 56 163 Machinery and equipment 10,854 9,028 3,987 3,206 14,840 12,234 Infrastructure 188,093 173,970 246,946 238,650 435,040 412,620 Vehicles 2,600 1,676 651 468 3,252 2,144 Right-of-use lease assets 215 306 — — 215 306 Subscription-based IT assets 838 1,016 — — 838 1,016 Total capital assets $ 329,124 $ 298,922 $ 345,865 $ 338,222 $ 674,988 $ 637,144 Additional information on the City of Bozeman’s capital assets can be found in Note 6 of this report. City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 14 71 Long Term Liabilities At fiscal year-end, the City had $160.3 million of bonds, notes, leases, and SBITAs payable outstanding compared to $154.5 million last year – an increase of $5.8 million or 3.8%. Of this amount, $49.7 million comprises general obligation debt backed by the full faith and credit of the city. The increase is due to the issuance of $6.2 million of general obligation bonds in May 2024. Additional information on the City’s long-term debt for can be found in Note 7 in the notes to the basic financial statements. The following table presents a summary of long term debts as of June 30, 2024 and 2023. Amounts are shown in thousands. Governmental Activities Business-Type Activities Total 2024 2023 2024 2023 2024 2023 General obligation bonds $ 49,675 $ 45,765 $ — $ — $ 49,675 $ 45,765 Tax increment financing bonds 9,301 9,803 — — 9,301 9,803 Special assessment bonds 3,168 3,372 — — 3,168 3,372 Water revenue bonds — — 14,593 15,949 14,593 15,949 Wastewater revenue bonds — — 23,888 25,939 23,888 25,939 Storm water revenue bonds — — 1,109 1,196 1,109 1,196 Notes payable 1,716 2,046 — — 1,716 2,046 Unamortized premiums 4,337 4,230 — — 4,337 4,230 Financed purchases payable 1,482 873 — — 1,482 873 Leases payable 259 344 — — 259 344 Subscription-based IT agreements 626 853 — — 626 853 Landfill closure/postclosure — — 1,982 2,359 1,982 2,359 Pollution remediation — — 537 537 537 537 Compensated absences 4,095 3,939 695 680 4,790 4,619 Total OPEB liability 3,972 3,688 823 763 4,795 4,451 Net pension liability 31,113 26,808 6,915 5,335 38,028 32,143 Total long-term liabilities $ 109,744 $ 101,721 $ 50,542 $ 52,758 $ 160,286 $ 154,479 The City’s general obligation bonds have been assigned ratings of “Aa3” (TOP, Series 2013 and Series 2014), “Aa1” (BPSC, Series 2019, FS2, Series 2022, and Recreation Improvements Series 2024A and 2024B), by Moody’s Investor Services (Moody’s). The City’s tax increment financing bonds have been assigned ratings of “BBB” (Downtown, Series 2020), and “AA” (Midtown, Series 2020) by Standard & Poor’s Rating Services (S&P). In Montana, state law establishes the limit of debt a municipality can hold against its General Government operations. With some exceptions, a municipality may incur debt up to 2.5% of the total assessed value of taxable property within the city or town (7-7-4201, MCA). The City's total FY24 taxable value was $443,265,826 resulting in a debt limit of $11,081,646. The City's total outstanding debt backed by the General Fund ending FY24 was $51,391,030, within the limit set by statute. City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 15 72 Economic Factors and Next Year’s Budgets and Rates Bozeman's 2023 population is estimated to be 60,425 residents by the Bozeman Economic and Market Update report compiled by Economic & Planning Systems, Inc., which is approximately 45.6% of the total population of Gallatin County. Between 2010-2023 the growth rate was 3.7% annually according to this report published in September 2024. As noted in the Transmittal Letter, Bozeman continues to be one of the fastest growing cities in the country. This level of growth continues to put a huge demand on City services and City resources. Budgets in recent years have tried to reduce the impact of increasing cost of services and growth on homeowners in Bozeman. However, those policies resulted in significant deferred maintenance and a lack of funding to address it. As a result, the adopted fiscal year 2025 operating budget includes significant rate increases to support utility infrastructure, including 12% revenue increases for water, 6% revenue increases for sewer service. Inflationary 3% increases are included for stormwater, street maintenance district, street arterial & collector district, parks & trails district, and tree maintenance/forestry. Property taxes are estimated to increase approximately 5% for a typical single-family homeowner due primarily to a decrease in the mill value as a result of significant numbers of taxable value protests in the prior year. The economic outlook and budget projections for next year are conservative. Increases in personnel costs will range from 5.0-6.5% based on bargaining unit contracts. The cost of infrastructure, contracted services, and right of way has increased significantly over the past few years resulting in significant inflation to the Capital plan. While the rate of inflation has slowed, current pricing still impacts the ability to maintain affordable rates and taxes and maintain essential City services. The City developed its next budget with the goal of toward maintaining current services in spite of significant growth pressures, supporting City Commission priorities, and supporting the City’s basic infrastructure. 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 P.O. Box 1230 Bozeman, MT 59771 This report is available online at https://www.bozeman.net/departments/finance City of Bozeman, MontanaManagement's Discussion and Analysis June 30, 2024 16 73 City of Bozeman, Montana Basic Financial StatementsGovernment-Wide Financial Statements 74 Statement of Net Position Discretely Presented Primary Government Component Unit Governmental Business-Type Bozeman Public BusinessActivitiesActivitiesTotalLibrary Foundation Improvement District Assets Cash and investments $ 79,975,656 $ 27,156,712 $ 107,132,367 $ 237,588 $ 117,135 Certificates of deposit, short-term — — — 1,250,000 — Receivables (net of allowance for uncollectibles): Interest 407,464 238,635 646,099 17,184 — Taxes 3,408,552 — 3,408,552 — — Accounts 5,665,240 2,938,855 8,604,095 16,000 3,750 Special assessments 3,435,522 3,244 3,438,766 — 10,398 Intergovernmental 1,041,566 233,389 1,274,955 — — Leases — 308,201 308,201 — — Notes receivable 598,921 — 598,921 — — Prepaid items 690,787 — 690,787 — 31,115 Other assets 8,657 — 8,657 1,019,734 — Restricted assets Cash and investments 27,358,575 35,685,286 63,043,861 — — Investments — — — 4,872,382 — Capital Assets, net of accumulated depreciation amortization, where applicable Land 41,727,885 2,218,554 43,946,439 — — Artwork 42,698 — 42,698 10,046 — Intangible - water rights — 2,762,142 2,762,142 — — Construction in progress 26,756,204 7,641,067 34,397,271 — — Buildings 57,997,017 81,602,602 139,599,620 — — Improvements other than buildings — 55,912 55,912 — — Machinery and equipment 10,897,889 3,986,653 14,884,542 — 9,088 Infrastructure 188,093,344 246,946,460 435,039,804 — — Vehicles 2,593,753 651,389 3,245,142 — — Right-of-use lease assets 177,293 — 177,293 — — Subscription-based IT assets 837,536 — 837,536 — — Total assets 451,714,561 412,429,100 864,143,661 7,422,934 171,486 Deferred Outflows of Resources Other postemployment benefits 562,063 132,712 694,775 — — Pension plans 8,797,617 1,833,823 10,631,441 — — Total deferred outflows of resources 9,359,680 1,966,535 11,326,216 — — City of Bozeman, MontanaStatement of Net Position June 30, 2024 The Notes to Financial Statements are an integral part of this statement 18 75 Discretely Presented Primary Government Component Unit Governmental Business-Type Bozeman Public Business Activities Activities Total Library Foundation Improvement District Liabilities Accounts payable 11,862,482 1,848,137 13,710,619 10,077 — Escheat property payable 174,774 — 174,774 — — Retainage and other payables 862,971 129,917 992,889 — — Intergovernmental — 546,450 546,450 — Accrued payroll 1,671 304 1,975 12,794 4,589 Accrued interest payable 5,515 — 5,515 — — Unearned revenue 3,702,808 267,481 3,970,289 — — Debt Due within one year, other than OPEB and pensions 6,865,295 4,210,605 11,075,900 — — Due in more than one year, other than OPEB and pensions 67,793,317 38,593,310 106,386,628 — — Total OPEB liability 3,971,939 823,056 4,794,995 — — Net pension liability 31,113,352 6,915,130 38,028,482 — — Total liabilities 126,354,124 53,334,390 179,688,515 22,871 4,589 Deferred Inflows of Resources Other postemployment benefits 829,738 167,054 996,792 — — Pension plans 886,284 246,646 1,132,930 — — Lease related — 296,686 296,686 — — Total deferred inflows of resources 1,716,022 710,387 2,426,408 — — Net Position Net investment in capital assets 259,727,878 308,955,362 568,683,240 — — Restricted for General government 4,555,729 — 4,555,729 — — Public safety 21,993,773 — 21,993,773 — — Public service 10,915,931 — 10,915,931 — — Public welfare — — 166,897 Expendable 22,083,299 — 22,083,299 3,995,376 — Nonexpendable 2,126,653 — 2,126,653 3,404,687 — Debt service 2,747,610 — 2,747,610 — — Capital improvements 5,194,942 45,687,628 50,882,570 — — Unrestricted 3,658,281 5,707,868 9,366,149 — — Total net position $ 333,004,096 $ 360,350,858 $ 693,354,954 $ 7,400,063 $ 166,897 City of Bozeman, MontanaStatement of Net Position (Continued) June 30, 2024 The Notes to Financial Statements are an integral part of this statement 19 76 Statement of ActivitiesProgram Revenues Net (Expense) Revenue and Changes in Net Position Operating Capital Primary Government Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary government Governmental activities General government $ 21,008,788 $ 8,453,622 $ 8,640,766 $ — $ (3,914,401) $ — $ (3,914,401) Public safety 29,522,432 6,333,264 — — (23,189,168) — (23,189,168) Public service 14,780,608 26,135,750 3,547,753 10,737,001 25,639,896 — 25,639,896 Public welfare 20,213,912 1,254,034 1,066,556 3,989,237 (13,904,085) — (13,904,085) Interest 1,963,485 — — — (1,963,485) — (1,963,485) Total governmental activities 87,489,225 42,176,670 13,255,074 14,726,239 (17,331,242) — (17,331,242) Business-type activities Water 15,227,618 17,180,977 684,477 2,861,612 — 5,499,448 5,499,448 Waste water 13,276,495 14,693,222 942,225 3,493,887 — 5,852,839 5,852,839 Solid waste 6,835,328 6,655,306 31,725 — — (148,297) (148,297) Parking 1,598,141 1,214,125 6,644 — — (377,372) (377,372) Stormwater 1,847,848 2,023,962 12,588 724,167 — 912,868 912,868 Total business-type activities 38,785,430 41,767,592 1,677,660 7,079,665 — 11,739,487 11,739,487 Total primary government $ 126,274,656 $ 83,944,263 $ 14,932,734 $ 21,805,904 (17,331,242) 11,739,487 (5,591,756) General revenues Property taxes 45,454,899 — 45,454,899 Unrestricted intergovernmental 5,717,540 — 5,717,540 Unrestricted investment earnings 4,448,723 3,102,361 7,551,084 Miscellaneous 3,348,246 329,371 3,677,617 Gain on disposal of assets 393,500 — 393,500 Transfers (401,119) 401,119 — Total general revenue and transfers 58,961,788 3,832,851 62,794,640 Change in net position 41,630,546 15,572,338 57,202,884 Net position - 6/30/2023, as previously reported 291,378,235 344,778,520 636,156,755 Change to financial reporting entity (nonmajor to discrete CU) (4,685) (4,685) Net position - ending $ 333,004,096 $ 360,350,858 $ 693,354,954 City of Bozeman, MontanaStatement of ActivitiesYear Ended June 30, 2024 The Notes to Financial Statements are an integral part of this statement 20 77 Net (Expense) Revenue and Program Revenues Changes in Net Position Component Unit Operating Bozeman Public Business Charges for Grants and Library Improvement Functions/Programs Expenses Services Contributions Foundation District Component Unit Bozeman Public Library Foundation General government $ 2,990,861 $ — $ 3,564,158 573,297 — Business Improvement District Public welfare 285,446 281,875 — — (3,571) Total component unit activities $ 3,276,307 $ 281,875 $ 3,564,158 573,297 (3,571) General revenues Property taxes — — Unrestricted intergovernmental — — Unrestricted investment earnings 542,180 — Miscellaneous 24,559 — Gain on disposal of assets — — Long-term debt proceeds — — Transfers — — Total general revenue and transfers 566,739 — Change in net position 1,140,036 (3,571) Net position - 6/30/2023, as previously reported 6,260,027 165,783 Change to financial reporting entity (nonmajor to discrete CU) — 4,685 Net position - ending $ 7,400,063 $ 166,897 City of Bozeman, MontanaStatement of Activities (Continued)Year Ended June 30, 2024 The Notes to Financial Statements are an integral part of this statement 21 78 Governmental Fund Financial Statements Fund Financial Statements 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 welfare, and general government. Street Maintenance District Special Revenue Fund – This special revenue fund accounts for special assessment revenues levied, received, and expended for street maintenance provided to specific property owners. 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. Special Improvement District (SID) Debt Service – Accounts for the accumulation of resources and payment of special assessment bond principal and interest for general improvement, sidewalk, and curb construction projects. Construction Capital Projects Fund – Accounts for the construction of general improvement projects financed by special assessments and general obligation debt other than those financed by proprietary funds. The Notes to Financial Statements are an integral part of this statement 22 79 Balance Sheet - Government Funds General Street Maintenance District Downtown Improvement District SID Debt Service Construction Capital Projects Other Governmental Funds Total Governmental Funds Assets Cash and investments $ 23,102,731 $ 5,240,466 $ 10,952,668 $ 2,394,484 $ 7,211,860 $ 28,010,987 $ 76,913,197 Receivables (net of allowance for uncollectibles) Property taxes 2,343,324 — 208,992 — — 856,237 3,408,552 Accrued interest 102,871 20,158 42,131 9,296 18,160 203,362 395,978 Accounts 1,251,617 848 361,364 — — 4,024,666 5,638,496 Special assessment 575 185,298 — 3,065,662 — 183,987 3,435,522 Intergovernmental 478,829 — — — — 16,287 495,116 Due from other funds 3,287,225 — — — — — 3,287,225 Advances to other funds — — — — — 1,372,646 1,372,646 Prepaid items 124,570 — — — — — 124,570 Notes receivable — — — — — 598,921 598,921 Restricted cash and investments 1,004,710 — — — 1,485,098 24,868,768 27,358,575 Total assets $ 31,696,452 $ 5,446,770 $ 11,565,154 $ 5,469,443 $ 8,715,118 $ 60,135,861 $ 123,028,798 City of Bozeman, MontanaBalance Sheet - Government FundsJune 30, 2024 The Notes to Financial Statements are an integral part of this statement 23 80 General Street Maintenance District Downtown Improvement District SID Debt Service Construction Capital Projects Other Governmental Funds Total Governmental Funds Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable $ 3,904,639 $ 435,664 $ 4,140,929 $ 7,690 $ 1,692,512 $ 1,247,243 $ 11,428,677 Escheat property payable 154,081 678 — — — 20,016 174,774 Accrued payroll — — — — — 1,671 1,671 Interest payable — — — — — 4,412 4,412 Retainage payable 8,730 3,714 — — 643,095 207,431 862,971 Advances from other funds — — — 1,372,646 — — 1,372,646 Due to other funds — — — — — 2,736,731 2,736,731 Unearned revenue 31,500 77,224 — — 16,585 3,577,498 3,702,807 Total liabilities 4,098,950 517,280 4,140,929 1,380,336 2,352,192 7,795,002 20,284,690 Deferred Inflows of Resources Unavailable revenue - property taxes 163,909 — — — — 119,359 283,268 Unavailable revenue - special assessments — — — 3,050,752 — — 3,050,752 Unavailable revenue - court fines 1,157,635 — — — — — 1,157,635 Total deferred inflows of resources 1,321,544 — — 3,050,752 — 119,359 4,491,655 Fund Balance Nonspendable 124,570 — — — — 2,002,083 2,126,653 Restricted 89,079 4,929,490 7,424,225 1,038,355 6,362,926 48,815,193 68,659,268 Committed 3,291,645 — — — — 2,318,664 5,610,309 Assigned 1,638,700 — — — — 1,554,280 3,192,980 Unassigned 21,131,964 — — — — (2,468,720) 18,663,244 Total fund balance 26,275,958 4,929,490 7,424,225 1,038,355 6,362,926 52,221,500 98,252,454 Total liabilities, deferred inflows of resources, and fund balances $ 31,696,452 $ 5,446,770 $ 11,565,154 $ 5,469,443 $ 8,715,118 $ 60,135,861 $ 123,028,799 City of Bozeman, MontanaBalance Sheet - Government FundsJune 30, 2024 The Notes to Financial Statements are an integral part of this statement 24 81 Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances - Governmental Funds $ 98,252,454 Amounts reported for governmental activities in the statement of net position are different because: Capital assets, net of depreciation, used in governmental activities are not financial resources and, therefore, are not reported in the funds. 329,123,619 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 the governmental activities in the statement of net position. 3,292,960 Other assets are not available to pay for current-period expenditures and, therefore, are either not recognized as a receivable or are unearned in the funds. 4,491,655 Impact fee credits do not affect current financial resources and, therefore, are not reported in the governmental funds. (56,346) Deferred outflows and inflows of resources related to pensions and other postemployment benefits are applicable to future periods and, therefore, are not reported in the funds. 7,643,659 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. (109,743,904) Net Position of Governmental Activities $ 333,004,096 City of Bozeman, MontanaReconciliation of the Governmental Funds Balance Sheetto the Statement of Net PositionJune 30, 2024 The Notes to Financial Statements are an integral part of this statement 25 82 Statement of Revenues, Expenditures, and Changes in Fund Balances General American Rescue Plan Street Maintenance District Downtown Improvement District SID Debt Service Capital Projects Other Governmental Funds Total Governmental Funds Revenues Taxes $ 29,539,101 $ — $ — $ 2,656,682 $ — $ — $ 13,234,982 $ 45,430,765 Special assessments 185 — 21,385 — 515,511 — 444,055 981,136 Licenses and permits 414,079 — 30,993 — — — 4,321,830 4,766,902 Intergovernmental 10,400,706 — 3,525,352 67,266 — — 4,895,481 18,888,805 Charges for services 7,708,629 — 8,973,561 — — — 19,421,661 36,103,851 Fines and forfeitures 914,294 — — — — — 53,578 967,872 Interest on investments 554,609 — 130,782 257,100 75,484 163,063 1,624,682 2,805,720 Change in fair market value of investments 118,400 — 9,478 112,129 31,425 276,307 935,158 1,482,897 Interest on loans receivable — — — — — — 52,566 52,566 Miscellaneous 482,069 — 75,875 115 — — 2,751,309 3,309,370 Total revenues 50,132,074 — 12,767,426 3,093,293 622,420 439,370 47,735,302 114,789,884 Expenditures Current General government 13,074,257 — — — — — 3,073,747 16,148,004 Public safety 22,488,680 — — — — 13,449 4,728,643 27,230,772 Public works — — 7,435,068 — — 3,507 908,640 8,347,215 Public welfare 7,149,472 — — 646,748 — 65,271 10,504,586 18,366,077 Other 2,292,267 — — — — — — 2,292,263 Capital outlay 3,086,381 — 3,087,855 — — 11,543,267 8,284,137 26,001,640 Debt service Principal 170,426 — 301,954 — 204,722 — 3,198,795 3,875,897 Interest and fiscal charges 29,755 — 63,034 — 115,554 — 2,075,240 2,283,583 Total expenditures 48,291,237 — 10,887,911 646,748 320,276 11,625,494 32,773,787 104,545,451 Excess (Deficiency) of Revenues over (under) Expenditures 1,840,836 — 1,879,515 2,446,545 302,145 (11,186,124) 14,961,514 10,244,433 City of Bozeman, Montana Statement of Revenues, Expenditures, and Changes in Fund BalancesGovernmental FundsYear Ended June 30, 2024 The Notes to Financial Statements are an integral part of this statement 26 83 General American Rescue Plan Street Maintenance District Downtown Improvement District SID Debt Service Capital Projects Other Governmental Funds Total Governmental Funds Other Financing Sources (Uses) Transfers in 6,725,110 — 292,179 — — 6,703,714 4,806,008 18,527,011 Transfers out (1,630,772) — — (332,831) (782,130) (2,046,405) (14,229,265) (19,021,403) Issuance of long-term debt 4,255,244 — 911,912 — — 2,424,019 — 7,591,175 Sale of capital assets 7,536 — 151 — — — — 7,687 Total other financing sources (uses) 9,357,116 — 1,204,243 (332,831) (782,130) 7,081,328 (9,423,257) 7,104,470 Net Change in Fund Balance 11,197,953 — 3,083,758 2,113,714 (479,985) (4,104,796) 5,538,258 17,348,903 Fund Balance (Deficit) - 6/30/2023, as previously reported 15,078,005 54,789 1,845,732 — 1,518,340 10,467,723 51,943,648 80,908,237 Change within financial reporting entity (major to nonmajor) — (54,789) — — — — 54,789 — Change within financial reporting entity (nonmajor to major) — — — 5,315,195 — — (5,315,195) — Change to financial reporting entity (nonmajor to discrete CU) — — — (4,685) — — — (4,685) Fund Balance, Beginning of Year, as adjusted 15,078,005 — 1,845,732 5,310,511 1,518,340 10,467,723 46,683,242 80,903,552 Fund Balance, End of Year $ 26,275,958 $ — $ 4,929,490 $ 7,424,225 $ 1,038,355 $ 6,362,927 $ 52,221,500 $ 98,252,455 City of Bozeman, Montana Statement of Revenues, Expenditures, and Changes in Fund BalancesGovernmental FundsYear Ended June 30, 2024 The Notes to Financial Statements are an integral part of this statement 27 84 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Net Change in Fund Balances - Total Governmental Funds $ 17,348,903 Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported as expenditures in governmental funds. However, 30,399,008 in the statement of activities the cost of capital assets is allocated over their estimated useful lives as depreciation/amortization expense. When capital assets are disposed, the net effect is to reduce net position. Revenues in the statement of activities that do not provide current financial (671,523) resources are not reported as revenues in the funds. Internal service funds are used by management to charge the costs of 56,728 certain activities to individual funds. The net revenue (expense) of the internal service funds is reported in the governmental activities. In the statement of activities compensated absences are measured by the (183,258) amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used. In the statement of activities OPEB is measured by the amounts earned (291,951) during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used. In the statement of activities the cost of pension benefits earned net of (1,648,484) employee contributions is reported pension expense. In the governmental funds, however, the contributions are reported as expense. The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of 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 when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. (3,378,877) Change in Net Position of Governmental Activities $ 41,630,546 City of Bozeman, MontanaReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesYear Ended June 30, 2024 The Notes to Financial Statements are an integral part of this statement 28 85 Proprietary Fund Financial Statements Proprietary Funds Proprietary funds are used to account for activities that receive significant support from fees and charges. The City has two types of proprietary funds: enterprise funds and internal service funds. Major Enterprise Funds Water Fund – This fund accounts for the City's water utility operations and to collect and administer water impact fees. Waste Water Fund – This fund accounts for the City's sewer utility operations and to collect and administer waste water impact fees. Solid Waste Fund – This fund accounts for the City’s garbage collection service and recycling operations. 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. The City’s internal service funds are aggregated and presented in one column in the proprietary fund financial statements. The Notes to Financial Statements are an integral part of this statement 29 86 Statement of Net Position Business-type Activities Governmental Activities Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds Assets Current Assets Cash and investments $ 16,438,762 $ 7,448,114 $ — $ 3,269,836 $ 27,156,712 $ 3,062,459 Receivables (net of allowance for uncollectibles): Interest 163,304 59,280 — 16,051 238,635 11,486 Accounts 889,039 1,235,350 626,609 187,858 2,938,855 26,742 Special assessments 1,740 158 646 699 3,244 — Intergovernmental 207,667 25,722 — — 233,389 — Leases 308,201 — — — 308,201 — Prepaid items — — — — — 566,218 Other current assets — — — — — 8,657 Total current assets 18,008,712 8,768,624 627,255 3,474,443 30,879,035 3,675,562 Noncurrent Assets Restricted assets Cash and investments 26,812,081 8,092,648 — 780,557 35,685,286 — Capital assets Land 573,847 1,112,597 228,673 303,436 2,218,554 — Construction in progress 3,752,064 2,751,323 826,104 311,576 7,641,067 — Intangible water rights 2,762,142 — — — 2,762,142 — Buildings 40,717,384 63,113,469 769,975 11,995,291 116,596,120 1,546,120 Improvements other than buildings 13,646,910 14,745,401 2,155,300 — 30,547,612 — Machinery and equipment 2,474,539 4,474,339 7,426,664 1,319,031 15,694,573 784,189 Vehicles 920,323 723,533 548,499 400,216 2,592,571 231,467 Infrastructure 227,967,712 171,018,409 118,081 9,728,583 408,832,785 29,314 Right-of-use lease assets — — — — — 423,122 Less accumulated depreciation/amortization (125,969,102) (98,016,497) (9,089,102) (7,945,943) (241,020,644) (1,672,735) Total capital assets, net of accumulated depreciation/amortization 166,845,821 159,922,574 2,984,194 16,112,190 345,864,779 1,341,477 Total noncurrent assets 193,657,902 168,015,222 2,984,194 16,892,747 381,550,064 1,341,477 Total assets 211,666,614 176,783,846 3,611,449 20,367,190 412,429,100 5,017,039 City of Bozeman, MontanaStatement of Net PositionProprietary FundsJune 30, 2024 The Notes to Financial Statements are an integral part of this statement 30 87 Business-type Activities Governmental Activities Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds Deferred Outflows of Resources Other postemployment benefits 37,911 38,553 35,770 20,478 132,712 40,230 Pension plans 664,931 522,786 402,258 243,848 1,833,823 935,861 Total deferred outflows of resources 702,842 561,339 438,028 264,326 1,966,535 976,091 Liabilities Current Liabilities Accounts payable 908,922 545,470 283,372 110,373 1,848,137 377,455 Retainage payable 62,677 30,158 37,082 — 129,917 — Due to other funds — — 546,450 — 546,450 4,044 Accrued payroll 1,879 (1,792) 218 — 304 — Accrued interest payable — — — — — 1,103 Current portion of long-term debt 1,641,420 2,230,098 166,102 172,984 4,210,604 353,661 Unearned revenue — 267,481 — — 267,481 — Total current liabilities 2,614,898 3,071,414 1,033,224 283,357 7,002,893 736,263 Noncurrent Liabilities Landfill closure costs — — 1,982,403 — 1,982,403 — Solvent site remediation liabliity — 536,669 — — 536,669 — Long-term debt, net of current portion Bonds payable 13,198,000 21,777,000 — 1,020,000 35,995,000 — Leases payable — — — — — 194,363 Compensated absences 30,892 21,194 31,236 (4,082) 79,240 82,596 Total OPEB liability 246,339 262,039 213,232 101,446 823,056 287,707 Net pension liability 2,507,376 1,971,363 1,516,869 919,522 6,915,130 3,529,020 Total noncurrent liabilities 15,982,607 24,568,265 3,743,739 2,036,886 46,331,497 4,093,686 Total liabilities 18,597,504 27,639,679 4,776,963 2,320,244 53,334,390 4,829,949 City of Bozeman, MontanaStatement of Net PositionProprietary FundsJune 30, 2024 The Notes to Financial Statements are an integral part of this statement 31 88 Business-type Activities Governmental Activities Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds Deferred Inflows of Resources Other postemployment benefits 50,108 54,436 41,765 20,745 167,054 61,161 Pension plans 89,432 70,314 54,103 32,797 246,646 125,871 Lease related 296,686 — — — 296,686 — Total deferred inflows resources 436,226 124,750 95,868 53,542 710,387 187,032 Net Position Net investment in capital assets 152,695,885 138,269,688 2,947,111 15,042,677 308,955,362 1,061,006 Restricted for: Drought reserve 1,025,136 — — 1,025,136 — Water rights 8,616,751 8,616,751 — Impact capital projects 24,659,618 10,082,360 — — 34,741,978 — Infrastructure capital projects 581,494 — — — 581,494 — Parking capital projects — — — 722,269 722,269 — Unrestricted 5,756,842 1,228,708 (3,770,465) 2,492,784 5,707,868 (84,858) Total net position $ 193,335,726 $ 149,580,756 $ (823,354) $ 18,257,730 $ 360,350,858 $ 976,148 City of Bozeman, MontanaStatement of Net PositionProprietary FundsJune 30, 2024 The Notes to Financial Statements are an integral part of this statement 32 89 Statement of Revenues, Expenses and Changes in Net Position Business-type Activities Governmental Activities Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds Operating Revenues Charges for services $ 12,520,898 $ 11,878,072 $ 6,655,306 $ 3,238,087 $ 34,292,363 $ 15,771,867 Operating Expenses Salaries and benefits 3,882,961 3,079,153 2,360,185 1,360,044 10,682,343 5,755,094 Materials and supplies 1,546,784 523,869 568,811 62,925 2,702,389 1,239,414 Repairs and maintenance 216,651 323,775 377,593 88,948 1,006,967 22,860 Utilities 333,683 902,186 781,011 50,072 2,066,952 40,978 Administrative charges 3,833,759 2,769,397 1,599,134 615,759 8,818,049 978,434 Other services 1,663,427 1,485,209 845,226 617,405 4,611,267 7,802,179 Depreciation/amortization 3,305,900 3,500,042 493,880 611,207 7,911,030 244,071 Change in estimated closure and post-closure care costs — — (190,512) — (190,512) — Total operating expenses 14,783,165 12,583,631 6,835,328 3,406,360 37,608,483 16,083,031 Operating Income (Loss) (2,262,267) (705,559) (180,022) (168,272) (3,316,120) (311,164) City of Bozeman, MontanaStatement of Revenues, Expenses and Changes in Fund Net PositionProprietary FundsYear Ended June 30, 2024 The Notes to Financial Statements are an integral part of this statement 33 90 Business-type Activities Governmental Activities Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds Nonoperating Revenues (Expenses) Gain (loss) on disposal of assets (4,066) (16,236) — (10,267) (30,570) 8,132 Interest income 1,372,635 494,464 (12,639) 131,279 1,985,739 77,979 Net (decrease) increase in fair market value of 769,378 258,266 13,365 75,613 1,116,622 82,126 investments Interest expense (440,388) (676,628) — (29,363) (1,146,378) (16,302) Intergovernmental revenues 684,477 942,225 31,725 19,232 1,677,660 83,809 Impact fees 4,660,079 2,815,150 — — 7,475,229 — Lease income 46,333 — — — 46,333 — Miscellaneous revenue 179,789 12,857 69,017 21,375 283,038 38,874 Total nonoperating revenues (expenses) 7,268,237 3,830,098 101,469 207,869 11,407,673 274,620 Income (Loss) before contributions and transfers 5,005,970 3,124,539 (78,553) 39,597 8,091,553 (36,544) Transfers in 69,979 97,834 352,800 — 520,613 93,272 Transfers out (46,636) (26,222) — (46,636) (119,494) — Capital contributions 2,861,612 3,493,887 — 724,167 7,079,665 — Change in net position 7,890,925 6,690,038 274,247 717,128 15,572,337 56,728 Total net position, beginning of year 185,444,801 142,890,717 (1,097,601) 17,540,603 344,778,520 919,420 Total net position (deficit), end of year $ 193,335,726 $ 149,580,756 $ (823,354) $ 18,257,730 $ 360,350,858 $ 976,148 City of Bozeman, MontanaStatement of Revenues, Expenses and Changes in Fund Net PositionProprietary FundsYear Ended June 30, 2024 The Notes to Financial Statements are an integral part of this statement 34 91 Statement of Cash Flows Business-type Activities Governmental Activities Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds Operating Activities Receipts from customers and users $ 12,567,579 $ 11,698,209 $ 6,621,307 $ 3,234,831 $ 34,121,926 $ 15,762,703 Other operating cash receipts 179,789 12,857 69,017 21,375 283,037 38,874 Payments to suppliers (3,493,844) (3,556,542) (3,335,469) (841,014) (11,226,869) (9,157,510) Payments to and on behalf of employees (3,524,876) (2,891,735) (2,166,850) (1,301,554) (9,885,015) (5,027,916) Payments to internal service funds and administration (3,833,760) (2,769,397) (1,599,134) (615,759) (8,818,050) (978,435) Net cash from (used for) operating activities 1,894,888 2,493,392 (411,129) 497,879 4,475,029 637,716 Noncapital Financing Activities Transfers to other funds (46,636) (26,222) — (46,636) (119,494) — Transfers from other funds 69,979 97,834 352,800 — 520,613 93,272 Intergovernmental operating grants 477,278 1,112,172 31,725 19,232 1,640,406 83,809 Impact fees 4,660,079 2,815,150 — — 7,475,229 — Lease payments received 41,752 — — — 41,752 — Net cash from (used for) noncapital financing activities 5,202,452 3,998,934 384,525 (27,404) 9,558,507 177,081 Capital and Related Financing Activities Payments received on advances to other funds — — 546,450 — 546,450 (896,862) Acquisition of capital assets (4,126,724) (2,936,734) (1,067,647) (373,553) (8,504,658) (38,154) Debt service Principal (1,356,000) (2,051,000) — (87,000) (3,494,000) (100,695) Interest (440,388) (676,628) — (29,363) (1,146,379) (17,351) Net cash used for capital and related financing activities (5,923,112) (5,664,362) (521,197) (489,916) (12,598,587) (1,053,062) Investing Activity Interest and dividends from investments 2,084,633 730,301 1,744 201,252 3,017,930 158,201 Change in cash and investments 3,258,861 1,558,265 (546,057) 181,811 4,452,879 (80,063) Cash and investments, beginning of year 39,991,982 13,982,497 546,057 3,868,581 58,389,117 3,142,522 Cash and investments, end of year $ 43,250,843 $ 15,540,762 $ — $ 4,050,392 $ 62,841,996 $ 3,062,459 City of Bozeman, MontanaStatement of Cash FlowsProprietary FundsYear Ended June 30, 2024 The Notes to Financial Statements are an integral part of this statement 35 92 Business-type Activities Governmental Activities Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds Reconciliation of Operating Loss to Net Cash from (Used for) Operating ActivitiesOperating loss $ (2,262,267) $ (705,559) $ (180,022) $ (168,272) $ (3,316,120) $ (311,164) Adjustments to reconcile operating loss to net cash from (used for) operating activities Depreciation/amortization 3,305,900 3,500,042 493,880 611,207 7,911,030 244,071 Landfill closure/postclosure costs — — (190,512) — (190,512) — Other operating cash receipts 179,789 12,857 69,017 21,375 283,037 38,874 Changes in assets and liabilities Accounts receivable 46,619 (251,660) (33,646) (2,623) (241,309) (9,163) Special assessments receivable 62 (16) (353) (633) (941) — Prepaid expenses — — — — — (40,265) Pension related deferred outflows (270,657) (209,028) (157,513) (84,293) (721,491) (439,867) OPEB related deferred outflows 21,300 15,607 14,012 6,662 57,581 24,239 Vouchers payable 327,906 (317,458) (608,269) (21,664) (619,485) (11,819) Retainage payable (61,206) (4,043) 31,787 — (33,462) — Payroll payable (253) (253) — — (507) — Compensated absences 36,331 (48,516) 23,007 3,824 14,646 (27,605) Unearned revenue — 71,812 — — 71,812 — Landfill closure accruals — — (186,344) — (186,344) — Net pension liability 616,388 466,542 343,041 154,275 1,580,246 1,118,021 Total OPEB liability 22,381 16,401 14,724 7,001 60,507 25,473 Pension related deferred inflows (49,006) (39,853) (31,832) (23,226) (143,917) 47,858 OPEB related deferred inflows (18,399) (13,482) (12,104) (5,755) (49,740) (20,939) Net cash from (used for) operating activities $ 1,894,888 $ 2,493,392 $ (411,129) $ 497,879 $ 4,475,029 $ 637,716 Supplemental Schedule of Noncash Investing and Financing Activities Acquisition of capital assets through capital contributions and donations $ 2,861,612 $ 3,493,887 $ — $ 724,167 $ 7,079,665 $ — City of Bozeman, MontanaStatement of Cash FlowsProprietary FundsYear Ended June 30, 2024 The Notes to Financial Statements are an integral part of this statement 36 93 Fiduciary Fund Financial Statements Fiduciary FundsCustodial Funds Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. 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. 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 – Accounts for monies held for appearance bonds and restitution to criminal arrests and reimbursement for damage caused. The custodial funds are aggregated and presented in one column in the fiduciary funds financial statements. The Notes to Financial Statements are an integral part of this statement 37 94 Statement of Fiduciary Net Position Custodial Funds Assets Cash and investments $ 448,964 Receivables (net of allowance for uncollectibles): Accounts 2,892 Total assets 451,856 Liabilities Deposits payable 404,107 Net Position Restricted for Other organization or individuals $ 47,749 City of Bozeman, MontanaStatement of Fiduciary Net PositionFiduciary FundsJune 30, 2024 The Notes to Financial Statements are an integral part of this statement 38 95 Statement of Changes in Fiduciary Net Position Custodial Funds Additions Miscellaneous $ — Deductions 30 Change in net position (30) Net Position, Beginning of Year 47,779 Net Position, End of Year $ 47,749 City of Bozeman, MontanaStatement of Changes in Fiduciary Net PositionFiduciary FundsJune 30, 2024 The Notes to Financial Statements are an integral part of this statement 39 96 Notes to Financial Statements Note 1 - Summary of 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 four 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. 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, 2024, and for the year then ended. The more significant accounting policies of the City are described below. The following is a summary of the City’s significant accounting policies: 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. Determining whether certain organizations are component units, organizations that are legally separate, tax-exempt entities are required to be reported as a discretely presented component unit if the following criteria is met. •The economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the City. •The City is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization. •The economic resources received or held by the separate organization that the City is entitled to or otherwise has the ability to access are significant. Discretely Presented Component Units – The Bozeman Public Library Foundation (the Foundation) is a nonprofit agency organized to support the Bozeman Public Library through raising, receiving, administering, and disbursing funds, grants, bequests, and gifts for the sole benefit of the library. The resources were deemed to be significant and therefore, the Foundation is included as a discretely presented component unit under GASB Statement 39. The Foundation was incorporated with the State of Montana on August 29, 1983, and subsequently amended on December 15, 1989. The governing board consists of an elected president and elected members of the board of directors. Separately issued internal financial statements of the Foundation may be obtained by contacting the Foundation’s offices at 626 East Main Street, Bozeman, MT 59715. The fiscal year end of the Foundation is December 31. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 40 97 Discretely Presented Component Unit - The Bozeman Downtown Business Improvement District (BDBID) was created in 2000 per Resolution 5140 pursuant to section 7-12-1141, Montana Coded Annotated (MCA). Upon re-evaluation the city determined the BDBID should be reported as a discretly presented component unit. The BDBID qualifies as a separate legal entity of which the City Commission appoints a voting majority of the BDBID Board and is responsible for approving and modifying the budget. Based on these factors and because the BDBID governing body is not substantively the same as the City Commission the BDBID is included as a discretely presented component unit under GASB Statement 39. The BDBID is funded by the special assessments from property owners within the district to support services and projects that help beautify and maintain downtown Bozeman. The governing board consists of at least five, but no more than seven appointed members who are owners of real property subject to the jurisdiction of the BDBID or a formally appointed representative of a real property owner. Financial statements of the BDBID may be obtained by contacting the Downtown Bozeman Partnership's offices at 222 East Main Street, Suite 302, Bozeman, MT 59715. The fiscal year end of the BDBID is December 31. 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. Certain amounts presented in the prior year data in these notes have been reclassified to be consistent with the current year’s presentation. 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 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. The City applies all applicable GASB pronouncements including all National Council on Governmental Accounting Statements and Interpretations currently in effect. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 41 98 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 current net 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. The City reports the following 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 welfare, and general government. Street Maintenance District Special Revenue Fund – This special revenue fund accounts for special assessment revenues levied, received, and expended for street maintenance provided to specific property owners. 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. Special Improvement District (SID) Debt Service – Accounts for the accumulation of resources and payment of special assessment bond principal and interest for general improvement, sidewalk, and curb construction projects. Construction Capital Projects Fund – Accounts for the construction of general improvement projects financed by special assessments and general obligation debt other than those financed by proprietary funds. 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. City of Bozeman, Montana 99 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. The City reports the following major proprietary funds: Water Fund – This fund accounts for the City's water utility operations and to collect and administer water impact fees. Waste Water Fund – This fund accounts for the City's sewer utility operations and to collect and administer waste water impact fees. Solid Waste Fund – This fund accounts for the City’s garbage collection service and recycling operations. Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s Fiduciary Funds represent custodial funds. Custodial funds are custodial in nature (assets equal liabilities) and use the economic resources measurement focus. These funds are accounted for using the accrual basis of accounting. The following custodial fund is 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 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 43 100 Cash and Cash Equivalents Cash and cash equivalents 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. Restricted Cash and Investments Restricted cash and investments are those whose use is restricted to specific purposes by state statute, bond indenture, or otherwise. The City’s restricted cash and investments are primarily restricted for construction and maintenance of City infrastructure, debt service and urban renewal. 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). 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. 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 represents 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. City of Bozeman, Montana 101 Interfund Receivables and Payables All outstanding balances between funds are reported as “due to/from other funds” (current portion) or “advances to/from other funds” (non-current portion). Any residual balances outstanding between the governmental activities and business- type activities are reported in the government-wide financial statements as “internal balances”. Lease Receivables Lease receivables are recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods (consumption method) and are recorded as prepaid items in both government-wide and fund financial statements. 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, works of art, 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: Buildings 20-80 years Other structures and improvements 10-100 years Infrastructure/flood control 25-100 years Machinery and equipment 5-30 years Vehicles 5-10 years 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. Right-of-use lease assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. Right-of-use lease assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to place the lease asset into service. Right-of-use lease assets are amortized over the shorter of the lease term or useful life of the underlying asset using the straight-line method. The amortization period varies from 1 to 4 years. City of Bozeman, Montana 102 Right to use subscription IT assets are recognized at the subscription commencement date and represent the City’s right to use the underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line method. The amortization period varies from 2 to 5 years. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds on a straight-line basis over the term of the related issue. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments is discounted based on a borrowing rate determined by the City. Subscription liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments is discounted based on a borrowing rate determined by the City. Compensated Absences 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). 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 11). Postemployment Benefits Other Than Pensions (OPEB) Under the provisions of the various employee and union contracts, the District provides certain postemployment benefits other than pensions to eligible retirees. These OPEB obligations are funded on a pay-as-you-go basis. The total OPEB liability, deferred outflows/inflows of resources, and OPEB expense were actuarially determined in accordance with GASB Statement No. 75. Additional information can be found in Note 10. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 46 103 Pensions Montana Public Employees’ Retirement Association (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). Additional information can be found in Note 11. Deferred Outflows and Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has three items that qualify for reporting in this category. They are the contributions made to pension plans after the measurement date and prior to the fiscal year-end, changes in the net pension liability not included in pension expense, and changes in the total other post employments benefits liability not included in OPEB expense, reported in the district-wide statement of net position. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has four types of items that qualify for reporting in this category. The City reports unavailable revenues from property taxes, special assessments, and court fines on the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item is deferred inflows related to leases where the City is the lessor and is reported in the governmental funds balance sheet and statement of net position. The deferred inflows of resources related to leases are recognized as an inflow of resources (revenue) on the straight-line basis over the term of the lease. The other items are changes in the net pension liability not included in pension expense and changes in the total other post-employment benefits liability not included in OPEB expense reported in the district-wide statement of net position. Net Position Net position represents the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources in the City’s financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization, and unspent bond proceeds for capital purposes reduced by the outstanding balances of any long-term debt or lease attributable to the acquisition, construction, or improvement of those assets, retainage payable, and accounts payable related to capital asset construction. 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. Unrestricted net position is the net amount of assets and liabilities that are not included in the determination of net investment in capital assets or the restricted component of 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. City of Bozeman, Montana 104 As a nonprofit organization operating under the Financial Accounting Standards Board (FASB), the Foundation reports net position with restricted or unrestricted funds, in accordance with donor requests. Fund Balance In accordance with GASB Statement 54, the City reports fund balance for governmental funds in two general classifications, nonspendable and spendable. Nonspendable Fund Balance – 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. Restricted Fund Balance – 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. Committed Fund Balance – 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. Assigned Fund Balance – amounts 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. 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. Unassigned Fund Balance – 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, of 2 months or 16.67%, of operating revenues. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 48 105 Implementation of GASB Statement No. 100 As of July 1, 2022, the City adopted GASB Statement No. 100, Accounting Changes and Errors. The implementation of this standard establishes accounting and financial reporting requirements for (a) accounting changes and (b) the correction of an error in previously issued financial statements (error correction). This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. There were a few changes to beginning balances as a result of implementing this standard. As a result of these adjustments there were effects on beginning net position. A summary of these adjustments can be found in Note 23. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 106 Note 2 - Reconciliation of Government-Wide and Fund Financial Statements Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position The governmental fund balance sheet includes reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government – wide statement of net position. One element of that reconciliation explains that “long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.” The details of this difference are as follows: Bonds payable $ 62,143,933 Notes payable 1,716,030 Unamortized premium 4,337,187 Financed purchases payable 1,481,531 Leases payable 258,670 SBITAs 626,375 Compensated absences 4,094,887 Total OPEB liability 3,971,939 Net pension liability 31,113,352 Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities $ 109,743,904 Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “Capital outlays are reported as expenditures in governmental funds. However, in the statement of activities the cost of capital assets is allocated over their estimated useful lives and reported as depreciation/amortization expense.” City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 50 107 The details of this difference are as follows: Capital outlay reported in fund financial statements $ 26,001,640 Plus: assets transferred in from enterprise funds 27,703 Plus: donated/contributed assets 15,539,939 Plus: assets purchased by internal service funds 38,154 Plus: prior year construction in progress added as asset in current year 13,088,548 Capital asset increases per Note 6 $ 54,695,984 Less: assets disposed (865,949) Less: prior year construction in progress added as asset in current year (13,088,548) Capital asset decreases per Note 6 (13,954,497) Depreciation/amortization expense (10,950,625) Plus: accumulated depreciation on assets transferred in from enterprise funds (13,370) Accumulated depreciation/amortization increases per Note 6 (10,963,995) Less: accumulated depreciation/amortization on assets disposed 423,727 Accumulated depreciation/amortization decreases per Note 6 423,727 Capital assets purchased by internal service funds (38,154) Gain on assets transferred to internal service funds (8,129) Depreciation/amortization expense included in net expense of internal service funds 244,071 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ 30,399,008 Another element of that reconciliation states that, “The issuance of long-term debt 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 when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.” The details of this difference are as follows: Issuance of bonded debt $ (6,175,090) Purchasers discount on bonded debt (34,910) Principal payments on bonded debt 3,006,123 Principal payments on notes payable 329,475 Premium on bonded debt issued (361,985) Amortization of premium on bonded debt 254,881 Issuance of financed purchases payable (911,912) Principal payments on financed purchases payable 303,056 Principal payments on leases payable 85,131 Issuance of SBITAs (107,277) Principal payments on SBITA 252,807 Partial redemption of SBITA 81,520 Principal payments recorded in internal service funds (100,696) Net adjustment to net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ (3,378,877) City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 51 108 Note 3 - Stewardship, Compliance, and Accountability 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. 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 service area 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 each service area, but management may exercise control at budgetary line items. Deficit Fund Balance/Net Position The following funds had a deficit fund balance/net position at June 30, 2024: Governmental Funds Nonmajor Funds General Obligation Bonds $ 193,455 Fire Department Equipment 2,275,265 Proprietary Funds Enterprise Funds Solid Waste 823,354 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 52 109 The deficit fund balance in General Obligation Bonds fund is due to a timing difference between the debt payment related to Fire Station 2 bonds and tax collections. The city elects to pay debt payments due on July 1st on or just before June 30th each fiscal year. The taxes related to the July 1st payment will be collected in fiscal year 2025. The deficit fund balance in the Fire Department Equipment fund is due to capital purchases exceeding expected project costs. The overages will be recovered through fiscal year 2025 tax revenues as well as proceeds from debt anticipated to be issued in fiscal year 2025. The deficit fund balance in the Solid Waste fund resulted from rates for solid waste services not increasing with the costs of operations. The city had not increased residential solid waste rates in over three years. Based on a thorough rate setting analysis the city implemented new solid waste rates in fiscal year 2024 that incorporates funding for the fund balance deficit. Note 4 - Cash and Investments At June 30, 2024, the carrying amount of the City's deposits in local banks and investments was $3,088,613. 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 $2,843,606. 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: Cash and investments Statement of net position $ 107,132,367 Statement of fiduciary net position 448,964 Restricted cash and investments Statement of net position 63,043,861 $ 170,625,193 Deposits $ 1,412,065 Investments 169,213,128 $ 170,625,193 Custodial Credit Risk – 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. Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy limits investing funds primarily in short- and intermediate-term liquid securities of high credit quality to ensure adequate liquidity and minimize the impact of changes in interest rates. Portfolios are structured so that securities mature concurrent with cash needs to meet anticipated demands. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 53 110 Credit Risk – 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 following table 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. On June 30, 2024, the following interest rate and credit risks and valuation inputs were associated with the City’s deposits and investments. Investment Type Credit Rating Fair Value Not Applicable < 1 1 - 5 Primary Government U.S. Government bonds S&P AA+$ 95,536,580 $ — $ 34,366,860 $ 61,169,720 Certificates of Deposit N/A 1,200,000 1,200,000 — — MMIA Account N/A 476,548 476,548 — — State of Montana Short Term Investment Pool N/A 72,000,000 72,000,000 — $ 169,213,128 $ 73,676,548 $ 34,366,860 $ 61,169,720 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 (MBOI) or any other entity against investment losses and there is no guaranteed rate of return on funds invested in STIP shares. The MBOI 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 MBOI website at https://investmentmt.com/Annual- Reports. Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The City’s investment policy diversifies the portfolios by limiting investments to avoid overconcentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities and the State of Montana Investment Pool). No more than 40% of the total portfolio may be with any one financial institution, excluding the State of Montana Investment Pool. The City’s investment policy also has limits on the following allowable deposits and investments: repurchase agreements shall not exceed 25 percent of the City’s portfolio or $3,000,000, certificates of deposit issued by commercial banks shall not exceed 25% of the City’s portfolio, and certificates of deposit issued by savings and loan associations shall not exceed 5% of the City’s portfolio. No more than 30% of the total portfolio may be invested in certificates of deposit with any one financial institution, and each financial institution must be a member of the FDIC. None of the established limits were exceeded as of June 30, 2024. Fair Value – The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are described as follows: City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 54 111 Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets in active markets that the City has the ability to access. Level 2 – Inputs to the valuation methodology include: 1.Quoted prices for similar assets or liabilities in active markets: 2.Quoted prices for identical or similar assets or liabilities in active markets; 3.Inputs other than quoted prices that are observable for the asset or liability; 4.Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Inputs to the valuation methodology that are unobservable and significant to the fair value measurement. The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table presents the assets measure at fair value on a recurring basis, except those measured at net asset value (NAV) and cost as identified below, at June 30, 2024: Total Level 1 Level 2 Level 3 Primary Government US Government Bonds $ 95,536,580 $ — $ 95,536,580 $ — $ 95,536,580 $ — $ 95,536,580 $ — U.S. Government and Agency securities, money market mutual funds, and certificates of deposit classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for these securities. Corporate bonds, municipal bonds, corporate commercial paper, bond and equity mutual funds classified in Level 2 of the fair value hierarchy are valued using techniques such as quoted prices for similar investments in active and inactive markets as well as inputs other than quoted prices that are observable for these assets. Investments with the STIP totaling $72,000,000 are measured at net asset value (NAV) and are not subject to GASB 72 leveling. Investments in certificates of deposit and MMIA accounts are measured at cost and are not subject to GASB 72 leveling. The Foundation and Business Improvement District report cash and investments at December 31, 2023 and June 30, 2024, respectively, as follows. Investments are considered to be Level 1. Bozeman Public Business Library Foundation Improvement District Cash and Investments Cash and cash equivalents $ 237,588 $ 117,135 Restricted investments 4,872,382 — Total cash and investments $ 5,109,970 $ 117,135 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 55 112 Note 5 - Notes Receivable Loans receivable as of June 30, 2024, were as follows: Loan Program Interest Rate Maturity Date Amount Economic Development Loan Fund 3.0-8.0%2024-2028 $ 586,422 Community Housing Fund —%2026 12,499 $ 598,921 Note 6 - Capital Assets Governmental activities capital asset activity for the year ended June 30, 2024, was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental Activities Capital assets, not being depreciated/amortized Land $ 38,072,640 $ 3,655,246 $ — $ — $ 41,727,885 Artwork 15,000 27,698 — — 42,698 Construction in progress 19,466,651 20,378,101 13,088,548 — 26,756,204 Total capital assets, not being depreciated/amortized 57,554,291 24,061,045 13,088,548 — 68,526,787 Capital assets, being depreciated/amortized Buildings 76,863,064 6,075,272 438,745 (966,381) 81,533,211 Machinery and equipment 23,366,106 3,737,612 224,212 — 26,879,506 Infrastructure 277,614,941 19,337,405 — 966,381 297,918,727 Vehicles 5,394,139 1,349,672 202,992 27,703 6,568,523 Right-of-use lease building 423,122 — — — 423,122 Right-of-use lease vehicles 19,833 — — — 19,833 Subscription-based IT assets 1,154,002 107,277 — — 1,261,279 Total capital assets, being depreciated/ amortized 384,835,207 30,607,239 865,949 27,703 414,604,200 Less accumulated depreciation/amortization for Buildings 21,491,618 2,044,576 — — 23,536,194 Machinery and equipment 14,337,790 1,908,746 220,734 — 16,025,802 Infrastructure 103,645,367 6,180,016 — — 109,825,383 Vehicles 3,717,800 439,981 202,992 13,370 3,968,159 Right-of-use lease building 126,937 84,624 — — 211,561 Right-of-use lease vehicles 9,917 6,611 — — 16,527 Subscription-based IT assets 137,670 286,073 — — 423,743 Total accumulated depreciation/ amortization 143,467,099 10,950,625 423,727 13,370 154,007,368 Total capital assets, being depreciated/amortized, net 241,368,108 19,656,613 442,221 14,333 260,596,832 Governmental Activities Capital Assets, Net $ 298,922,399 $ 43,717,658 $ 13,530,770 $ 14,333 $ 329,123,620 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 56 113 Depreciation/amortization expense was charged to functions/programs of the government as follows: Governmental activities General government $ 498,534 Public safety 2,291,660 Public service 6,312,594 Public health and welfare 1,847,837 Total depreciation/amortization expense - governmental activities $ 10,950,625 Business-type activities capital asset activity for the year ended June 30, 2024, was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Business-Type Activities Capital assets, not being depreciated Land $ 2,218,553 $ — $ — $ — $ 2,218,554 Intangible water rights 2,762,142 — — — 2,762,142 Construction in progress 6,575,780 6,065,369 5,000,081 — 7,641,067 Total capital assets, not being depreciated 11,556,475 6,065,369 5,000,081 — 12,621,763 Capital assets, being depreciated Buildings 116,563,119 33,000 — — 116,596,119 Improvements other than buildings 30,547,611 — — — 30,547,612 Machinery and equipment 14,111,625 1,582,948 — — 15,694,572 Infrastructure 396,244,459 12,604,562 16,236 — 408,832,785 Vehicles 2,321,747 298,527 — (27,703) 2,592,571 Total capital assets, being depreciated 559,788,561 14,519,038 16,236 (27,703) 574,263,659 Less accumulated depreciation for Buildings 32,384,927 2,608,590 — — 34,993,517 Improvements other than buildings 30,384,564 107,136 — — 30,491,700 Machinery and equipment 10,905,678 802,241 — — 11,707,919 Infrastructure 157,594,415 4,291,910 — — 161,886,325 Vehicles 1,853,398 101,155 — (13,370) 1,941,183 Total accumulated depreciation 233,122,982 7,911,031 — (13,370) 241,020,643 Total capital assets, being depreciated, net 326,665,579 6,608,006 16,236 (14,333) 333,243,016 Business-Type Activities Capital Assets, Net $ 338,222,054 $ 12,673,375 $ 5,016,317 $ (14,333) $ 345,864,779 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 57 114 Depreciation expense was charged to functions/programs of the government as follows: Business-type activities Water $ 372,923 Wastewater 238,285 Solid Waste 3,305,901 Parking 3,500,042 Stormwater 493,880 Total depreciation expense - business-type activities $ 7,911,031 Note 7 - Long-Term Debt The following is a summary of changes in long-term debt of the City for the year ended December 31, 2024: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities Bonds payable General obligation bonds $ 45,765,000 $ 6,210,000 $ 2,300,000 $ 49,675,000 $ 2,545,000 Tax increment financing bonds 9,802,767 — 501,401 9,301,366 517,401 Special assessment bonds 3,372,289 — 204,722 3,167,567 171,541 Total bonds payable 58,940,056 6,210,000 3,006,123 62,143,933 3,233,942 Notes payable Notes payable 1,719,323 — 285,104 1,434,219 72,902 Intercap notes payable 326,182 — 44,371 281,811 45,576 Total notes payable 2,045,505 — 329,475 1,716,030 118,478 Unamortized premium 4,230,082 361,985 254,881 4,337,187 254,880 Financed purchases payable 872,674 911,912 303,056 1,481,531 246,537 Leases payable 343,801 — 85,131 258,670 87,876 Subscription IT agreements 853,425 107,277 334,327 626,375 251,131 Compensated absences 3,939,236 2,809,430 2,653,777 4,094,887 2,653,777 $ 71,224,779 $ 10,400,602 $ 6,966,770 $ 74,658,613 $ 6,865,295 Business-Type Activities Bonds payable Water revenue bonds $ 15,949,000 $ — $ 1,356,000 $ 14,593,000 $ 1,395,000 Wastewater revenue bonds 25,939,000 — 2,051,000 23,888,000 2,111,000 Stormwater revenue bonds 1,196,000 — 87,000 1,109,000 89,000 Total bonds payable 43,084,000 — 3,494,000 39,590,000 3,595,000 Landfill closure/postclosure 2,359,259 — 376,856 1,982,403 — Pollution remediation obligation 536,669 — — 536,669 — Compensated absences 680,196 630,252 615,605 694,843 615,605 $ 46,660,124 $ 630,252 $ 4,486,461 $ 42,803,915 $ 4,210,605 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 58 115 Bonds Payable At June 30, 2024, the City had the following bond issuances outstanding: Principal Final Maturity Interest Rate Original Issue Outstanding Governmental Activities: General obligation bonds TOP Bonds, Series 2013 2034 2.00 - 4.00%$ 9,900,000 $ 5,795,000 TOP Bonds, Series 2014 2035 2.00 - 4.00% 5,100,000 3,235,000 BPSC Bonds, Series 2019 2039 2.00 - 4.00% 34,405,000 28,130,000 Refunding Bonds, Series 2022 2042 4.00 - 5.00% 25,640,000 6,305,000 GO Rec Improvement Bonds, Series 2024A 2044 4.00 - 5.00% 2,280,000 2,280,000 Limited Tax GO Bonds, Series 2024B 2043 4.00 - 5.00% 3,930,000 3,930,000 Total general obligation bonds $ 81,255,000 $ 49,675,000 Tax increment financing bonds Refunding Bonds, Series 2020 2032 2.44%$ 3,689,000 $ 2,389,000 Series 2017 2042 4.10% 1,446,000 1,142,366 Series 2020 2044 2.00 - 4.00% 6,325,000 5,770,000 Total sales tax revenue bonds $ 11,460,000 $ 9,301,366 Special assessment bonds Special Improvement District No. 747, Series 2020 2040 3.175%$ 4,001,000 $ 3,167,567 Note payable to Department of Natural Resources and Conservation, #WRF-05067 2024 3.750% — — Note payable to Department of Natural Resources and Conservation, #SRF-05132 2024 3.750% — — Total taxable appropriation bonds $ 4,001,000 $ 3,167,567 Total governmental activities $ 96,716,000 $ 62,143,933 Business-Type Activities Water revenue bonds Series 2011A 2032 3.00%$ 9,491,000 $ 4,483,000 Series 2011B 2033 3.00% 9,552,000 4,771,000 Series 2017 2037 2.50% 7,573,000 5,339,000 Total water revenue bonds $ 26,616,000 $ 14,593,000 Waste water revenue bonds Series 2010B 2030 1.75%$ 359,300 $ 111,000 Series 2010D 2030 3.00% 8,308,000 3,233,000 Series 2010F 2030 3.00% 729,000 300,000 Series 2010C 2031 3.00% 885,081 383,000 Series 2010G 2031 3.00% 3,605,565 1,195,000 Series 2010H 2031 3.00% 8,692,000 3,766,000 Sereis 2020D 2040 2.50% 2,807,000 2,351,000 Series 2020B 2040 2.50% 7,786,000 6,522,000 Series 2020C 2041 2.50% 6,693,321 5,727,000 Series 2020A 2040 —% 300,000 300,000 Total water revenue bonds $ 40,165,267 $ 23,888,000 Stormwater revenue bonds Series 2015 2035 2.50%$ 1,815,000 $ 1,109,000 Total business-type activities $ 135,377,534 $ 39,590,000 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 59 116 There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. 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 are recorded in the governmental activities in the government-wide statement. Principal and interest on these bonds are payable from the debt service funds. Tax Increment Financing (TIF) Bonds – Tax Increment Financing (TIF) Bonds are not general obligations, but are special limited obligations of the City. TIF bonds are recorded in the governmental activities in the government-wide statement. The bonds are payable solely, and equally and ratably from the tax increment revenues received by the City from its Downtown Bozeman Improvement District, Northeast Improvement District, and Midtown 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. Principal and interest on these bonds are payable from the TIF debt service fund. Special Assessment Bonds – 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. Principal and interest on these bonds are payable from the SID debt service fund. Revenue Bonds -The City also issues bonds where the City pledges income derived from the acquired or constructed assets to pay debt service. 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, 2024. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 60 117 The annual requirements to amortize the bonded debt outstanding for the governmental activities as of June 30, 2024, are as follows: Years Ending General Obligation Bonds Tax Increment Financing Bonds June 30, Principal Interest Principal Interest 2025 $ 2,545,000 $ 1,878,086 $ 517,401 $ 320,441 2026 2,670,000 1,745,963 531,215 304,068 2027 2,780,000 1,637,338 545,171 287,104 2028 2,890,000 1,517,438 564,152 269,745 2029 3,015,000 1,402,438 586,381 251,566 2030 -2034 17,070,000 5,018,188 2,527,660 975,218 2035 -2039 15,040,000 2,005,306 1,929,529 581,021 2040 -2044 3,665,000 360,600 2,099,856 191,340 $ 49,675,000 $ 15,565,355 $ 9,301,366 $ 3,180,503 Years Ending Special Assessment Bonds Total Governmental Activities June 30, Principal Interest Principal Interest 2025 $ 171,541 $ 99,219 $ 3,233,942 $ 2,297,746 2026 177,031 93,730 3,378,246 2,143,761 2027 182,696 88,064 3,507,867 2,012,506 2028 188,543 82,218 3,642,695 1,869,400 2029 194,577 76,184 3,795,958 1,730,188 2030 -2034 1,070,368 283,432 20,668,029 6,276,837 2035 -2039 1,182,811 100,847 18,152,340 2,687,174 2040 -2044 — — 5,764,856 551,940 $ 3,167,567 $ 823,693 $ 62,143,933 $ 19,569,551 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 61 118 The annual requirements to amortize the bonded debt outstanding for the business-type activities as of June 30, 2024, are as follows: Years Ending Water Revenue Bonds Waste Water Revenue Bonds June 30, Principal Interest Principal Interest 2025 $ 1,395,000 $ 284,930 $ 2,111,000 $ 489,298 2026 1,435,000 256,840 2,171,000 445,388 2027 1,477,000 227,930 2,234,000 400,265 2028 1,520,000 198,170 2,298,000 353,798 2029 1,563,000 167,560 2,365,000 306,013 2030 -2034 5,814,000 390,690 6,124,000 993,701 2035 -2039 1,389,000 139,611 4,996,000 451,120 2040 -2044 — — 1,289,000 25,663 $ 14,593,000 $ 1,665,731 $ 23,588,000 $ 3,465,245 Years Ending Stormwater Revenue Bonds Total Business-Type Activities June 30, Principal Interest Principal Interest 2025 $ 89,000 $ 21,740 $ 3,595,000 $ 795,968 2026 90,000 19,950 3,696,000 722,178 2027 94,000 18,130 3,805,000 646,325 2028 96,000 16,240 3,914,000 568,208 2029 97,000 14,320 4,025,000 487,893 2030 -2034 530,000 41,070 12,468,000 1,425,461 2035 -2039 113,000 1,700 6,498,000 592,431 2040 -2044 — — 1,289,000 25,663 $ 1,109,000 $ 133,150 $ 39,290,000 $ 5,264,126 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, 2024, the Revenue Bond outstanding had an aggregate principal amount payable of $87,989. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 62 119 Notes Payable At June 30, 2024, the City had the following notes payable outstanding: Principal Final Maturity Interest Rate Original Issue Outstanding Governmental Activities: Notes payable Sports Park Loan 2039 3.74% 1,700,000 1,434,218 Total notes payable $ 1,700,000 $ 1,434,218 Intercap notes payable Upgrade Street Lighting 2030 1.55 - 5.75%$ 199,231 $ 95,950 Sports Park-Bronken Park Improvements 2029 1.00 - 5.75% 314,559 185,860 Total intercap notes payable $ 513,790 $ 281,811 Total governmental activities $ 3,400,000 $ 1,716,030 Future payments on notes payable are as follows: Governmental Activities Years Ending June 30, Principal Interest 2025 $ 118,478 $ 52,893 2026 122,399 50,216 2027 126,533 47,363 2028 130,755 44,463 2029 135,306 41,273 2030 -2034 513,732 156,349 2035 -2039 568,827 60,148 2040 -2044 — — $ 1,716,030 $ 452,705 Financed Purchases Payable Financed purchases payable consists of direct borrowing financing agreements for the purchase of various pieces of machinery and equipment. Financed purchases payable of the governmental activities are paid by the General Fund and Street Maintenance Fund. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 63 120 Future payments on financed purchases payable are as follows: Governmental Activities Years Ending June 30, Principal Interest 2025 $ 246,537 $ 74,099 2026 241,975 60,918 2027 254,723 48,070 2028 495,164 36,039 2029 243,134 3,746 $ 1,481,532 $ 222,872 Leases Payable Leases payable consists of long-term leases as described in Note 8. Leases payable of the governmental activities are liquidated by the General Fund and the Public Works Administration Fund. Subscription IT Agreements Subscription IT agreements consists of long-term software contracts as described in Note 9. Subscriptions payable of the governmental activities are liquidated by the General Fund, City Planning Fund, and Public Works Administration Fund. Landfill Closure/Postclosure Landfill Closure/Postclosure liability consists of expected future obligations relating to the municipal landfill. See Note 20 for additional information. Pollution Remediation Liability Pollution remediation liability consists of expected future obligations relating to remediation of the Bozeman Solvent Site. See Note 21 for additional information. Compensated Absences The entire portion of accumulated unpaid vacation is considered short term for the reason that historically, unpaid vacation is utilized within one year either through vacation payouts when employees terminate their service with the City or with the use of annual leave throughout the year. Within the governmental activities, the General Fund has typically been used in prior years to liquidate the liability for compensated absences. Compensated absences for the business-type activities are liquidated from the fund in which they are earned. Note 8 - Leases Lessor Activities The City has accrued a receivable for a land lease. The remaining receivable for this lease was $308,201 for the year ended June 30, 2024. Deferred inflows related to these leases were $296,686 as of June 30, 2024. Interest revenue recognized on these leases was $16,664 for the year ended June 30, 2024. Principal receipts of $25,088 were recognized during the fiscal year. The interest rate used to value the lease was 5%. Final receipt is expected in fiscal year 2033. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 64 121 Lessee Activities The City has entered into various lease agreements for a vehicle and office space. The City is required to make principal and interest payments through February 2028. For lease agreements with no specified interest rate, the lease liability was valued using a discount rate of 5% based on the City’s incremental borrowing rate at the inception of the leases. The future principal and interest lease payments as of June 30, 2024, are as follows: Years Ending Governmental Activities June 30,Principal Interest 2025 $ 87,876 $ 10,922 2026 94,477 6,427 2027 76,316 1,599 $ 258,670 $ 18,948 Note 9 - Subscription-Based Information Technology Arrangements (SBITAs) The City has entered into SBITA contracts for various operating software. The City is required to make principal and interest payments through January 2029. The SBITA contracts have interest rates of 5% which was determined based on the City’s incremental borrowing rate at the inception of the subscriptions. The future principal and interest payments as of June 30, 2024, are as follows: Years Ending Governmental Activities June 30,Principal Interest 2025 $ 261,199 $ 24,643 2026 132,764 15,875 2027 113,307 9,379 2028 119,105 3,453 2029 — — $ 626,375 $ 53,350 Note 10 - Other Post-Employments Benefit 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 65 122 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 $2,688 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 $3,200 for non-Medicare- eligible retirees, the plan reimburses 70% 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 $6,400 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 July 1,2023, the census valuation date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefit payments 23 Inactive employees entitled to but not yet receiving benefit payments — Active employees 412 435 Contributions Benefit contributions are paid by the City as they come due. Total OPEB Liability (TOL) The City’s total OPEB liability of $4,797,995 for the June 30, 2024, reporting date was measured as of June 30, 2023, and was determined by an actuarial valuation as of July 1, 2023. Changes in the TOL for the year ended June 30, 2024, are as follows: Balance as of July 1, 2023 $ 4,450,558 Changes from the Prior Year: Service cost 308,978 Interest cost 173,250 Assumption changes (8,982) Differences between expected and actual experience — Benefit payments (128,809) Net Change 344,437 Balance at June 30, 2024 $ 4,794,995 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 66 123 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 (2.69%) or one percentage point higher (4.69%) follows: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate Discount rate 2.86 % 3.86 % 4.86 % Total OPEB Liability $ 5,417,577 $ 4,794,995 $ 4,257,020 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 or one percentage point higher than the current healthcare cost trend rate follows: 1% Decrease in 1% Increase in Trend Rates Trend Rates Trend Rates Trend rate 6.50%, grading to 7.50%, grading to 8.50%, grading to 3.50% over 20 years 4.50% over 20 years 5.50% over 20 years Total OPEB Liability $ 4,138,131 $ 4,794,995 $ 5,587,577 For the year ended June 30, 2024, the City recognized OPEB expense of $517,878. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between actual and expected experience $ — $ 148,014 Assumption changes 694,775 848,778 $ 694,775 $ 996,792 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 67 124 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEBs will be recognized in OPEB expense as follows: OPEB Years Ended June 30,Expense Amount 2025 $ 35,652 2026 75,190 2027 (147,560) 2028 (218,963) 2029 (46,336) Thereafter — The June 30, 2024, year-end OPEB cost is reported in the City’s funds as follows: Functions/Programs Governmental Activities General government $ 87,466 Public safety 148,000 Public works 62,116 Public health and welfare 129,321 Total governmental activities 426,903 Business-type Activities Water 33,652 Wastewater 24,659 Solid waste 22,138 Parking 2,619 Stormwater 7,907 Total business-type activities 90,975 Total $ 517,878 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 68 125 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 2024. As of July 1, 2023, 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: •Discount Rate: 3.69% for determining fiscal 2023 liability and expense. •Inflation Rate: 2.5% long-term. •Expected Real Rate of Return on Assets: N/A •Health Care Claim and Contribution Trend Rates: 7.50% initial in fiscal 2024 and 4.50% ultimate in fiscal 2044. •Average Salary Increase: Not applicable. •Retirement Rates: Based on actuarial valuation for statewide retirement systems as of June 30, 2022 •Retiree Participation Rate: 35% of future eligible retirees are assumed to participate in the Plan upon retirement. 80% of retirees are assumed to elect the same medical plan upon retirement that they have while being employed and 20% are assumed to elect the HDHP plan. •Lapse Rate: 15% per year •Marriage Assumption: 60% of all future eligible retired employees are assumed to be married at retirement and elect spousal coverage. Husbands are assumed to be three years older than their 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-2021 for MPORS and FURS (Police and Fire, respectively) and Pub-2010 Public Retirement Plans General mortality table projected generationally with Scale MP-2021 for PERS (all other employees). The medical trend rate table was reset in fiscal 2023. 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 69 126 Note 11 - Defined Benefit Pension Plans 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 2024 and 2023 total payroll and covered payroll for all retirement plans were $34,780,786 and $31,950,316, respectively. Financial information for all three plans is reported in the Public Employees' Retirement Board's published Annual Comprehensive 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. For the year ended December 31, 2024 the City reported its proportionate share of net pension liabilities, deferred outflows of resources, deferred inflows of resources, and pension expense for each of the plans as follows: Deferred Outflows of Resources Net Pension Liability Deferred Inflows of Resources Pension Expense PERS $ 7,330,769 $ 27,643,462 $ 985,976 $ 4,788,044 FURS 1,867,779 3,335,681 40,145 810,451.00 MPORS 1,432,892 7,049,339 106,809 1,295,972 Total all plans $ 10,631,441 $ 38,028,482 $ 1,132,930 $ 6,894,467 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, 2023, measurement date for the 2024 reporting. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 70 127 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 (TPL); 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 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 PERSDBRP 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). 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. Retirement benefits are as follows: Service retirement: •Hired prior to July 1, 2011:◦Age 60, 5 years of membership service◦Age 65, regardless of membership service◦Any age, 30 years of membership service•Hired on or after July 1, 2011:◦Age 65, 5 years of membership service◦Age 70, regardless of membership service City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 71 128 Early Retirement: •Hired prior to July 1, 2011:◦Age 50, 5 years of membership service◦Any age, 25 years of membership service•Hired on or after July 1, 2011:◦Age 55, 5 years of membership service Second Retirement (requires returning to PERS-covered employer or PERS service): •Retired before January 1, 2016, and accumulate less than 2 years additional service credit or retired on or after January 1, 2016, and accumulate less than 5 years additional service credit:◦A refund of member’s contributions plus return interest (currently 2.02% effective July 1, 2018).◦No service credit for second employment.◦ Start the same benefit amount the month following termination; and◦Guaranteed Annual Benefit Adjustment (GABA) starts again in the January immediately following the second retirement.•Retired before January 1, 2016, and accumulate at least 2 years of additional service credit:◦A recalculated retirement benefit based on provisions in effect after the initial retirement; and◦GABA starts on the recalculated benefit in the January after receiving the new benefit for 12 months.•Retired on or after January 1, 2016, and accumulate 5 or more years of service credit:◦The same retirement as prior to the return to service.◦A second retirement benefit as prior to the second period of service based on laws in effect upon the rehire date; and◦GABA starts on both benefits in the January after receiving the original and the 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 a 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. 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 all other adjustments to the member’s benefit. •3.0% 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:◦1.5% for each year PERS is funded at or above 90%;◦1.5% reduced by 0.1% for each 2.0% PERS is funded below 90%; and◦0% whenever the amortization period for PERS is 40 years or more. 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 72 129 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. Member State & University Local Government Local Government Fiscal Year Hired <07/01/2011 Hired >07/01/2011 Employer Employer State Employer State 2024 7.900%7.900%9.170%9.070%0.100%8.800%0.370% 2023 7.900%7.900%9.070%8.970%0.100%8.700%0.370% 2022 7.900%7.900%8.970%8.870%0.100%8.600%0.370% 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%N/A 7.170%7.070%0.100%6.800%0.370% 2008-2009 6.900%N/A 7.035%6.935%0.100%6.800%0.235% 2000-2007 6.900%N/A 6.900%6.800%0.100%6.800%0.100% Member contributions to the system of 7.9% 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. Employer contributions to the system: •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 actuary valuation results that show the amortization period has dropped below 25 years and would remain below the 25 years following the reduction of both the additional employer and additional member contributions rates. •Effective July 1, 2013, employers are required to make contributions on working retirees’ compensation. Member contributions for working retirees are not required. •The portion of employer contributions allocated to the Plan Choice Rate (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. Non-Employer Contributions: Special Funding •The state contributed 0.1% of members’ compensation on behalf of local government entities. •The state contributed 0.37% of members’ compensation on behalf of school district entities. •The state contributed a Statutory Appropriation from the General Fund of $34,979,900. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 73 130 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. The basis for the Total Pension Liability (TPL) as of June 30, 2023, is on an actuarial valuation performed by the Plan’s actuary as of June 30, 2023. 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, 2024 and 2023 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 $27,643,462 and the employer’s proportionate share was 1.132764%. Net Pension Liability as of Percent of Collective NPL as of Change in 6/30/2024 6/30/2023 6/30/2024 6/30/2023 Percent of Reporting Date Reporting Date Reporting Date Reporting Date Collective NPL City Proportionate Share $ 27,643,462 $ 21,527,855 1.132764 % 0.905336 % 0.227428 % State of Montana Proportionate Share associated with the City $ 7,678,503 $ 6,454,277 0.314647 % 0.271429 % 0.043218 % Total $ 35,321,965 $ 27,982,132 1.447411 % 1.176765 % 0.270646 % Changes in actuarial assumptions and methods: The following changes in assumptions or other inputs were made that affected the measurement of the TPL. •The discount rate was increased from 7.06% to 7.30%. •The investment rate of return was increased from 7.06% to 7.30%. •Updated all mortality tables to the PUB2010 tables for general employees. •Updated the rates of withdrawal, retirement, and disability. •Lowered the payroll growth assumption from 3.50% to 3.25%. •The inflation rate was increased from 2.40% to 2.75%. 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 to the Plan 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, 2024, the reporting date, the employer recognized a Pension Expense of $4,788,044 for its proportionate share of the Plan’s pension expense. The employer also recognized grant revenue of $720,357 for the support provided by the State of Montana for its proportionate share of the pension expense associated with the employer. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 74 131 At June 30, 2024, the reporting date, 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 vs actual experience $ 1,100,992 $ — Project investment earnings vs. actual investment earnings 70,138 — Changes in assumptions — 985,976 Changes in proportion and differences between employer contributions and proportionate share of contributions 4,070,698 — City contributions subsequent to the measurement date 2,088,941 $ 7,330,769 $ 985,976 The $2,088,941 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred 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 (Decrease) to Pension Expense 2025 $1,526,824 2026 1,262,212 2027 1,634,600 2028 (167,783) Actuarial Assumptions: The total pension liability measured as of June 30, 2023, for the June 30, 2024, reporting date, was determined on the results of an actuarial valuation date of June 30, 2023, using the following actuarial assumptions, applied to all periods included in the measurement. Among those assumptions were the following: Investment return (net of pension plan investment expense, including inflation)7.30% General wage growth* *includes inflation at 3.50% 2.75% Merit increases 0% to 4.80% 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 (below) each January, inclusive of all other adjustments to the member's benefit. Members hired prior to July 1, 2007 3.00% Members hired between July 1, 2007 & June 30, 2013 1.50% Members hired on or after July 1, 2013 For each year PERS is funded at or above 90%1.50%The 1.5% is reduced by 0.1% for each 2.0% PERS is funded below 90% Whenever the amortization period for PERS is 40 years or more —% City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 75 132 For active members, mortality rates were based on PUB-2010 General Amount Weighted Employer Mortality projected to 2021 for males and females, projected generationally using MP-2021. For disabled retirees, the mortality rates were based on PUB-2010 General Amount Weighted Disabled Retiree Mortality table, projected to 2021, set forward one year for both males and females. For contingent survivors, mortality rates were based on PUB-2010 General Amount Weighted Contingent Survivor Mortality projected to 2021 with ages set forward one year for males and females, projected generationally using MP-2021. For healthy retirees, morality rates were based on PUB-2010 General Amount Weighted Healthy Retiree Mortality table projected to 2021, with ages set forward one year and adjusted 104% for males and 103% for females, projected generationally using MP-2021. The actuarial assumptions and methods utilized in the June 30, 2023 valuation, were developed in the five-year experience study for the period ending 2021. Discount Rate: The discount rate used to measure the TPL was 7.30%. 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 2127. 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. Target Allocations: The long-term expected rate of return on pension plan investments is reviewed as part of regular experience studies prepared for the Plan about every five years. The long-term rate of return as of June 30, 2023, is based on analysis in the experience study report dated May 2, 2022, without consideration for the administrative expense analysis shown. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical data, estimates inherent in current market data, and an analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation), along with estimates of variability and correlations for each asset class. These ranges were combined to develop the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change absent a significant change in the asset allocation, a change in the underlying inflation assumption, or a fundamental change in the market that alters expected returns in future years. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class as of the most recent experience study, are summarized in the following table. Asset Class Target Asset Allocation Long-Term Expected Real Rate of Return Arithmetic Basis Cash 3.0 %(0.33%) Domestic Equity 30.0 % 5.90 % International Equity 17.0 % 7.14 % Private Investments 15.0 % 9.13 % Real Assets 5.0 % 4.03 % Real Estate 9.0 % 5.41 % Core Fixed Income 15.0 % 1.14 % Non-Core Fixed Income 6.0 % 3.02 % Total 100.0 % City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 76 133 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 7.30%, as well as what the TPL would be if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate. 1.0% Decrease (6.30%) Current Discount Rate 1.0% Increase (8.30%) City's proportionate share of the net pension liability $ 39,930,879 $ 27,643,462 $ 17,335,417 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. At the plan level for the measurement period ended June 30, 2023, 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 348 employers that have participants in the PERS-DCRP totaled $1,409,309. Pension Plan Fiduciary Net Position The stand-alone financial statements of the Montana Public Employees Retirement Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan’s fiduciary net position. These reports, as well as the actuarial valuations and experience study, are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or are available on the MPERA website at https://mpera.mt.gov/about/annualreports1/annualreports. 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, 2023, measurement date for the 2024 reporting. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 77 134 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 (TPL); 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. 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 member has elected to be covered by GABA: ◦20 years of membership service, regardless of age ◦2.5% of HAC times years of service credit •Hired prior to July 1, 1981, and not elected to be covered by GABA, the greater of above or: ◦If membership service is less than 20 years: 2% of the highest monthly compensation (HMC) for each year of service credit; ◦If membership service is greater than or equal to 20 years: 50% of HMC plus 2% of HMC for each year 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: ◦is not awarded service credit for the period of reemployment; ◦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 ◦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. •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: ◦is awarded service credit for the period of reemployment; City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 78 135 ◦starting the first month following termination of service, 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 ◦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. •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 a 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. 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. Member Fiscal Year Non-GABA GABA Employer State 1998 – 2024 9.500%10.700%14.360%32.610% 1997 7.800%N/A 14.360%32.610% 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. The basis for the Total Pension Liability (TPL) as of June 30, 2023, is on an actuarial valuation performed by the Plan’s actuary as of June 30, 2023. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 79 136 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, 2024 and 2023 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 $3,335,681 and the employer’s proportionate share was 2.2094%. Net Pension Liability as of Percent of Collective NPL as of Change in June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Percent of Reporting Date Reporting Date Reporting Date Reporting Date Collective TPL City Proportionate Share $ 3,335,681 $ 3,494,798 2.2094 % 2.2000 % 0.0094 % State of Montana Proportionate Share associated with the City $ 7,570,801 $ 7,906,822 5.0144 % 4.9775 % 0.0369 % Total $ 10,906,482 $ 11,401,620 7.2238 % 7.1775 % 0.0463 % Changes in actuarial assumptions and methods: The following changes in assumptions or other inputs were made that affected the measurement of the TPL. •The discount rate was increased from 7.06% to 7.30%. •The investment rate of return was increased from 7.06% to 7.30%. •The payroll growth rate was reduced from 3.50% to 3.25%. •All mortality tables were updated to the PUB2010 tables for public safety employees. •Updated the rates of withdrawal, retirement, disability and merit increase scales. •The inflation rate was increased from 2.40% to 2.75%. 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 to the Plan 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, 2024, the reporting date, the employer recognized its proportionate share of the Plan’s pension expense of $810,451. The employer also recognized grant revenue of $1,890,464 for the support provided by the State of Montana for its proportionate share of the pension expense that is associated with the employer. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 80 137 Recognition of Deferred Inflows and Outflows: At June 30, 2024, the reporting date, 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 Deferred Inflows of Resources of Resources Expected vs actual experience $ 308,640 $ 3,429 Project investment earnings vs. actual investment earnings 87,654 — Changes in assumptions 713,329 — contributions and proportionate share of contributions — 36,716 City contributions subsequent to the measurement date 758,156 $ 1,867,779 $ 40,145 The $758,156 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025 . Other amounts reported as deferred outflows of resources and deferred 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 (Decrease) to Pension Expense 2025 $ 211,144 2026 138,477 2027 555,696 2028 140,264 Thereafter 23,897 Actuarial Assumptions: The total pension liability measured as of June 30, 2023, for the June 30, 2024, reporting date, was determined on the results of an actuarial valuation date of June 30, 2023, using the following actuarial assumptions, applied to all periods included in the measurement. Among those assumptions were the following: Investment return (net of pension plan 7.30% investment expense, including inflation) General wage growth* *includes inflation at 3.50% 2.75% Merit increases 1.00% to 6.40% Postretirement Benefit Increases Guaranteed Annual Benefit Adjustment (GABA) each January Members hired on or after July 1, 1997, or those electing GABA (requires 12 full months of retirement before GABA 3.00% will be made) Minimum Benefit Adjustment (non-GABA) Members with 10 or more yars of membership service The minimum benefit provided should and member did not elect GABA not be less than 50% of the current base compensation of a newly confirmed active firefighter of the employer that last employed the member as a fire fighter. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 81 138 For active members, mortality rates were based on PUB-2010 Safety Amount Weighted Healthy Retiree Mortality projected to 2021 for males and females, projected generationally using MP-2021. For healthy retirees, morality rates were based on PUB-2010 Safety Amount Weighted Healthy Retiree Mortality table projected to 2021, with ages set forward one year for males, adjusted 105% for males and 100% for females, projected generationally using MP-2021. For contingent survivors, mortality rates were based on PUB-2010 Safety Amount Weighted Contingent Survivor Mortality projected to 2021 with ages set forward one year for males, projected generationally using MP-2021. For disabled retirees, the mortality rates were based on PUB-2010 Safety Amount Weighted Disabled Retiree Mortality table, projected to 2021, set forward one year for males. The actuarial assumptions and methods utilized in the June 30, 2023, valuation, were developed in the five-year experience study for the period ending 2021. Discount Rate: The discount rate used to measure the TPL was 7.30%. 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. Target Allocations: The long-term expected rate of return on pension plan investments is reviewed as part of regular experience studies prepared for the Plan about every five years. The long-term rate of return as of June 30, 2023, is based on analysis in the experience study report dated May 2, 2022, without consideration for the administrative expense analysis shown. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical data, estimates inherent in current market data, and an analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation), along with estimates of variability and correlations for each asset class. These ranges were combined to develop the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change absent a significant change in the asset allocation, a change in the underlying inflation assumption, or a fundamental change in the market that alters expected returns in future years. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 82 139 The target asset allocation and best estimates of arithmetic real rate of return for each major asset class as of the most recent experience study, are summarized in the following table. Long-Term Expected Real Target Asset Rate of Return Asset Class Allocation Arithmetic Basis Cash 3.0 %(0.33%) Domestic Equity 30.0 % 5.90 % International Equity 17.0 % 7.14 % Private Investments 15.0 % 9.13 % Real Assets 5.0 % 4.03 % Real Estate 9.0 % 5.41 % Core Fixed Income 15.0 % 1.14 % Non-Core Fixed Income 6.0 % 3.02 % Total 100.0 % 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 7.30%, 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. 1% Decrease Current Discount 1% Increase (6.30%)Rate (7.30%)(8.30%) City's proportionate share of the net pension liability $ 6,083,526 $ 3,335,681 $ 1,142,539 Pension plan fiduciary net position: The stand-alone financial statements (76d) of the Montana Public Employees Retirement Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan’s fiduciary net position. The reports, as well as the actuarial valuations and experience study, are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or are available on the MPERA website at https://mpera.mt.gov/ about/annualreports1/annualreports. 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 Total 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, 2023, measurement date for the 2024 reporting. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 83 140 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 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. 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 times years of service credit. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 84 141 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: •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: ◦is not awarded service credit for the period of reemployment; ◦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 ◦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. •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: ◦is awarded service credit for the period of reemployment; ◦starting the first month following termination of service, 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 ◦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. •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 a part of a member’s 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%. 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 85 142 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. Member Hired before Hired after Hired after Hired after Fiscal Year 7/1/1975 6/30/1975 6/30/1979 6/30/1997 GABA Employer State 2000 - 2024 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% 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. The basis for the Total Pension Liability (TPL) as of June 30, 2023, is on an actuarial valuation performed by the Plan’s actuary as of June 30, 2023. 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, 2024 and 2023 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 TPL 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 $7,049,339 and the employer’s proportionate share was 3.0406%. Net Pension Liability as of Percent of Collective NPL as of Change in June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Percent of Reporting Date Reporting Date Reporting Date Reporting Date Collective TPL City Proportionate Share $ 7,049,339 $ 7,120,779 3.0406 % 3.0145 % 0.0261 % Share associated with the City $ 14,227,120 $ 14,472,724 6.1366 % 6.1270 % 0.0096 % Total $ 21,276,459 $ 21,593,503 9.1772 % 9.1415 % 0.0357 % City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 86 143 Changes in actuarial assumptions and methods: The following changes in assumptions or other inputs were made that affected the measurement of the TPL. •The discount rate was increased from 7.06% to 7.30%. •The investment rate of return was increased from 7.06% to 7.30%. •All mortality assumptions were updated to the PUB2010 tables for public safety employees. •Rates of withdrawal, retirement, disability retirement, and merit increases were updated. •Payroll growth assumption was lowered from 3.50% to 3.25%. •The inflation rate was increased from 2.40% to 2.75%. 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 to the Plan 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, 2024, the reporting date, the employer recognized its proportionate share of the Plan’s pension expense of $1,295,972. The employer also recognized grant revenue of $2,452,859.00 for the support provided by the State of Montana for its proportionate share of the pension expense associated with the employer. Recognition of Deferred Inflows and Outflows: June 30, 2024, the reporting date, 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 Deferred Inflows of Resources of Resources Expected vs actual experience $ 92,180 $ 14,903 Project investment earnings vs. actual investment earnings 98,959 — Changes in assumptions 211,589 91,906 Changes in proportion and differences between employer contributions and proportionate share of contributions 97,861 — City contributions subsequent to the measurement date 932,302 $ 1,432,891 $ 106,809 The $932,302 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: For the Reporting Recognition of Deferred Outflows and Deferred Inflows in Year Ended June 30, Future Years as an Increase (Decrease) to Pension Expense 2024 $ 166,044 2025 (137,047) 2026 395,455 2027 (30,672) Thereafter — City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 87 144 Actuarial Assumptions: The total pension liability measured as of June 30, 2023, for the June 30, 2024, reporting date, was determined on the results of an actuarial valuation date of June 30, 2023, using the following actuarial assumptions, applied to all periods included in the measurement. Among those assumptions were the following: Investment return (net of pension plan 7.30% investment expense, including inflation) General wage growth* *includes inflation at 3.50% 2.75% Merit increases 1.0% to 6.4% Postretirement Benefit Increases Guaranteed Annual Benefit Adjustment (GABA) each January Members hired on or after July 1, 1997, or those electing GABA (requires 12 full months of retirement before GABA 3.00% will be made) Minimum Benefit Adjustment (non-GABA) Benefit for a retired member or member's survivor and member did not elect GABA The minimum benefit provided should not be less than 50% of the monthly compensation paid to a newly confirmed police officer of the employer that last employed the member as a police officer For active members, mortality rates were based on PUB-2010 Safety Amount Weighted Healthy Retiree Mortality projected to 2021 for males and females, projected generationally using MP-2021. For healthy retirees, morality rates were based on PUB-2010 Safety Amount Weighted Healthy Retiree Mortality table projected to 2021, with ages set forward one year for males, adjusted 105% for males and 100% for females, projected generationally using MP-2021. . For disabled retirees, the mortality rates were based on PUB-2010 Safety Amount Weighted Disabled Retiree Mortality table, projected to 2021, set forward one year for males. For contingent survivors, mortality rates were based on PUB-2010 Safety Amount Weighted Contingent Survivor Mortality projected to 2021 with ages set forward one year for males, projected generationally using MP-2021 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 88 145 The actuarial assumptions and methods utilized in the June 30, 2023, valuation, were developed in the five-year experience study for the period ending 2021. Discount Rate: The discount rate used to measure the TPL was 7.30%. 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. Target Allocations: The long-term expected rate of return on pension plan investments is reviewed as part of regular experience studies prepared for the Plan about every five years. The long-term rate of return as of June 30, 2023 is based on analysis in the experience study report dated May 2, 2022, without consideration for the administrative expense analysis shown. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical data, estimates inherent in current market data, and an analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation), along with estimates of variability and correlations for each asset class. These ranges were combined to develop the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change absent a significant change in the asset allocation, a change in the underlying inflation assumption, or a fundamental change in the market that alters expected returns in future years. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class as of the most recent experience study, are summarized in the following table. Long-Term Expected Real Target Asset Rate of Return Asset Class Allocation Arithmetic Basis Cash 3.0 %(0.33%) Domestic Equity 30.0 % 5.90 % International Equity 17.0 % 7.14 % Private Investments 15.0 % 9.13 % Real Assets 5.0 % 4.03 % Real Estate 9.0 % 5.41 % Core Fixed Income 15.0 % 1.14 % Non-Core Fixed Income 6.0 % 3.02 % Total 100.0 % City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 89 146 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 7.30%, 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. 1% Decrease Discount 1% Increase (6.30%)Rate (7.30%)(8.30%) City's proportionate share of the net pension liability $ 10,878,503 $ 7,049,339 $ 4,009,014 Pension plan fiduciary net position: The stand-alone financial statements of the Montana Public Employees Retirement Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan’s fiduciary net position. These reports, as well as the actuarial valuations and experience study, are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or are available on the MPERA website at https://mpera.mt.gov/about/ annualreports1/annualreports. Note 12 - Interfund Activity Interfund receivables/payables are used when a fund has a cash deficit, as well as for other short-term amounts owed between funds. Due from: Nonmajor Governmental Solid Waste Internal Funds Fund Service Funds Total Due to: General Fund $ 2,736,731 $ 546,450 $ 4,044 $ 3,287,225 Interfund advances are used to account for long-term advances between funds. A summary of the City’s interfund advances is as follows: Advances to Advances from other City funds other City Funds SID Debt Service $ — $ 1,372,646 Nonmajor Governmental Funds 1,372,646 — $ 1,372,646 $ 1,372,646 Interfund Transfers 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 90 147 The following interfund transfers occurred during the year ended June 30, 2024: City of Bozeman - Schedule of Transfers "IN" as of June 30, 2024 Transfer To:Transfer From:Amount Explanation General Fund Health-Medical Insurance $ 3,178,705 Health insurance premiums paid General Fund American Rescue Plan 1,500,000 General government services expenses under revenue recovery portion of grant General Fund Capital Projects 2,046,405 Reimbursement for prior year estimated project cost overages upon project completion Total transfers to General Fund 6,725,110 Capital Projects SID Debt Service 782,130 Support for capital projects Capital Projects General Fund 83,977 Per Resolution #4265 Library operating budget surplus Capital Projects Fire Department Equipment 2,000,000 Support for capital projects Capital Projects Fire Impact Fee 3,800,000 Support for capital projects Capital Projects General Fund 37,607 Support for capital projects Total transfers to Capital Project Fund 6,703,714 Street Maintenance District Gas Tax Apportionment 265,958 Close out fund Street Maintenance District Wastewater Fund 26,222 Reimbursement for prior years mis-coded energy expenses Total transfer to Street Maintenance District Fund 292,179 City Planning Health-Medical Insurance 191,328 Health insurance premiums paid City Planning American Rescue Plan 2,447,497 General government services expenses under revenue recovery portion of grant Metropolitan Planning Organization General Fund 5,876 Support for non-grant eligible operating costs Departmental General Fund 158,398 Support and match for operating costs not covered by grant funding Departmental Health-Medical Insurance 22,837 Health insurance premiums paid SID Revolving General Fund 992,114 Support for SID and minimum outstanding debt requirement TIF Bonds Downtown Improvement District 332,831 Annual bond payment TIF Bonds North 7th Corridor TIF District 411,250 Annual bond payment Park Land North 7th Corridor TIF District 243,877 Support for capital projects Total transfers to Non-Major Governmental Funds 4,806,008 Water American Rescue Plan 69,979 Support for capital projects Wastewater American Rescue Plan 97,834 Support for capital projects Solid Waste General Fund 352,800 Support for landfill monitoring Total transfers to Major Proprietary Funds 520,613 Public Works Administration Stormwater 46,636 Share of annual lease payment Public Works Administration Water 46,636 Share of annual lease payment Total transfers to Internal Service Funds 93,272 Total Transfers "IN"$ 19,140,896 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 91 148 City of Bozeman - Schedule of Transfers "OUT" as of June 30, 2024 Transfer From:Transfer To:Amount Explanation General Fund Capital Projects $ 83,977 Per Resolution #4265 Library operating budget surplus General Fund Capital Projects 37,607 Support for capital projects General Fund Metropolitan Planning Organization 5,876 Support for non-grant eligible operating costs General Fund Departmental 158,398 Support and match for operating costs not covered by grant funding General Fund SID Revolving 992,114 Support for SID and minimum outstanding debt requirement General Fund Solid Waste 352,800 Support for landfill monitoring Total transfers from General Fund 1,630,772 Downtown Improvement District TIF Bonds 332,831 Annual bond payment Total transfers from Downtown Improvement District 332,831 SID Debt Service Capital Projects 782,130 Support for capital projects Total transfers from SID Debt Service Fund 782,130 Capital Projects General Fund 2,046,405 Reimbursement for prior year estimated project cost overages upon project completion Total transfers from Capital Projects Fund 2,046,405 Health-Medical Insurance General Fund 3,178,705 Health insurance premiums paid Health-Medical Insurance City Planning 191,328 Health insurance premiums paid Health-Medical Insurance Departmental 22,837 Health insurance premiums paid Fire Department Equipment Capital Projects 2,000,000 Support for capital projects Fire Impact Fee Capital Projects 3,800,000 Support for capital projects Gas Tax Apportionment Street Maintenance District 265,958 Close out fund American Rescue Plan General Fund 1,500,000 General government services expenses under revenue recovery portion of grant American Rescue Plan City Planning 2,447,497 General government services expenses under revenue recovery portion of grant American Rescue Plan Water 69,979 Support for capital projects American Rescue Plan Wastewater 97,834 Support for capital projects North 7th Corridor TIF District TIF Bonds 411,250 Annual bond payment North 7th Corridor TIF District Park Land 243,877 Support for capital projects Total transfers from Non-Major Departmental Funds 14,229,265 Stormwater Public Works Administration 46,636 Share of annual lease payment Water Public Works Administration 46,636 Share of annual lease payment Wastewater Fund Street Maintenance District 26,222 Reimbursement for prior years mis-coded energy expenses Total transfers from Major Proprietary Funds 119,494 Total Transfers "FROM"$ 19,140,896 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 92 149 Note 13 - Net Position/Fund BalancesNet Investment in Capital Assets The amounts comprising the City’s net investment in capital assets on the government-wide statement of net position are as follows: Governmental Business-Type Activities Activities Capital Assets, Net of Accumulated Depreciation/Amortization $ 329,123,620 $ 345,864,779 Capital Related Debt (70,563,725) (39,590,000) Capital Debt Proceeds Not Yet Expended 4,060,531 — Capital Debt Reserve Balances — 3,321,798 Retainage Payable (862,971) (129,917) Accounts Payable Related to Capital Asset Acquisition (2,029,577) (511,298) Net Investment in Capital Assets $ 259,727,878 $ 308,955,362 The amounts comprising the City’s net investment in capital assets in the enterprise funds statement of net position are as follows: Water Waste Water Solid Waste Nonmajor Fund Fund Fund Funds Capital Assets, Net of Accumulated Depreciation/Amortization $ 166,845,821 $ 159,922,574 $ 2,984,194 $ 16,112,190 Capital Related Debt (14,593,000) (23,888,000) — (1,109,000) Capital Debt Reserve Balances 898,599 2,364,911 — 58,288 Retainage Payable (62,677) (30,158) (37,082) — Accounts Payable Related to Capital Asset Acquisition (392,858) (99,639) — (18,802) Net Investment in Capital Assets $ 152,695,885 $ 138,269,688 $ 2,947,111 $ 15,042,676 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 93 150 Fund Balances The City classified fund balances within the governmental funds are as follows at June 30, 2024: Street Downtown Other Maintenance Improvement SID Capital Governmental General Fund District District Debt Service Projects Funds Total Fund Balances Nonspendable Cemetary perpetual care $ — $ — $ — $ — $ — $ 2,002,083 $ 2,002,083 Prepaid items 124,570 — — — — — 124,570 Total nonspendable 124,570 — — — — 2,002,083 2,126,653 Restricted General government Planning — — — — — 3,067,147 3,067,147 Health Insurance — — — — — 608,232 608,232 Other 89,079 — — — — 791,271 880,350 Public safety Building inspection — — — — — 1,438,947 1,438,947 Fire impact — — — — — 1,989,851 1,989,851 Victim witness — — — — — 362,755 362,755 Other 18,202,220 18,202,220 Public service Lighting districts — — — — — 442,593 442,593 Other — 4,929,490 5,543,848 10,473,338 Public welfare Tax increment districts 7,424,225 5,235,013 12,659,238 Economic development loans — — — — — 984,681 984,681 Tree maintenance district — — — — — 700,506 700,506 Other — — — — — 7,738,874 7,738,874 Capital projects — — — — 6,362,926 — 6,362,926 Debt service SID Sinking — — — 1,038,355 — — 1,038,355 SID Revolving Fund — — — — — 1,709,255 1,709,255 Total restricted 89,079 4,929,490 7,424,225 1,038,355 6,362,926 48,815,193 68,659,268 Committed Public welfare — — — — — 2,318,664 2,318,664 Capital projects 3,291,645 — — — — — 3,291,645 Total committed 3,291,645 — — — — 2,318,664 5,610,309 Assigned General government 1,638,700 1,638,700 Public service — — — — — 1,439,085 1,439,085 Public welfare — — — — — 115,195 115,195 Total assigned 1,638,700 — — — — 1,554,280 3,192,980 Unassigned 21,131,964 — — — — (2,468,720) 18,663,244 Total Fund Balances $ 26,275,958 $ 4,929,490 $ 7,424,225 $ 1,038,355 $ 6,362,926 $ 52,221,500 $ 98,252,454 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 94 151 Note 14 - Deferred Compensation Plan The City offers its employees a defined contribution, 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. The City does not contribute to the plan, and it 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, ICMA Retirement Corporation. Note 15 - The Street Impact Fee Fund, Water Impact Fee Fund and Wastewater Impact Fee Fund 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, to be phased out over 5 years. Beginning on March 30, 2013, all impact fees are charged at 100% of the impact. 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 Wastewater Impact Fee Fund have recorded impact fee credits amounting to $0, $33,232, and $114,576, respectively, for the fiscal year ending June 30, 2024. The Fire Impact Fee Fund does not have any outstanding credits. The following impact fee revenues were collected and expensed/expended during fiscal year 2024: Expenses, Beginning Expenditures,Ending Balances Impact Fees Other Income and Transfers Balances Fire $ 4,842,733 $ 724,018 $ 262,341 $ (3,839,241) $ 1,989,852 Water 19,870,111 4,660,079 571,579 (442,151) 24,659,618 Wastewater 11,168,112 2,815,150 228,752 (315,545) 13,896,469 Streets 13,911,165 7,741,627 808,772 (4,259,344) 18,202,220 Totals $ 49,792,121 $ 15,940,874 $ 1,871,444 $ (8,856,280) $ 58,748,159 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, 2024, the City has entered into joint venture contractual arrangements, as follows: 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 95 152 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 - 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, 2024, 2023, and 2022. 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 96 153 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 18 - Litigation The City generally follows the practice of recording liabilities resulting from claims and legal actions only when they become fixed or determinable in amount. In the opinion of City Counsel and management, such claims against the City not covered by insurance, would not materially affect the financial condition of the City at June 30, 2024. Note 19 - Contingencies Various claims and lawsuits involving the City can be pending at any given time. These claims are either covered by insurance or are the types which are normal in City operations and do not present any material risk of financial disruption. City management believes that the total amount of liability, if any, which may arise from such claims and lawsuits beyond that which is covered by insurance would not have a material effect on the City's financial condition or its ability to carry out its activities. Note 20 - Municipal 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 $1,982,403, which is its estimate of future landfill closure and post-closure care costs as of June 30, 2024. 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 by 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 97 154 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 Position Restricted cash and investments $ 101,386 Total assets 101,386 Current liabilities 8,255 Closure and post-closure care cost 1,982,403 Total liabilities 1,990,658 Restricted for debt service $ (1,889,272) Condensed Statement of Revenues, Expenses and Changes in Net Position Operating revenues and expenses: Operating expenses Change in post closure cost estimate (190,512) Other operating 37 Total operating expenses (190,475) Operating profit 190,475 Non-operating revenues (expenses): Interest income 1,220 Transfers 352,800 Total non-operating revenues 354,020 Change in net position 544,495 Net position, beginning of year (2,433,767) Net position, end of year $ (1,889,272) Note 21 - 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. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 98 155 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 $536,669. This liability is recorded in the Wastewater 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. Note 22 - Commitments The City entered into a contract to repair and remodel the Bozeman Swim Center. The contract commitment for the project is $5,470,775.80. For the year ended June 30, 2024, the City had incurred $2,932,585.18 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into various contracts for road and streetscape projects. The contract commitments for the projects are $12,548,999.87. For the year ended June 30, 2024, the City had incurred $10,109,270.15 towards the projects, which are reported as construction in progress in the Statement of Net Position. The City entered into a contract to construct the Fire Station #2 project. The contract commitment for the project is $11,785,667. For the year ended June 30, 2024, the City had incurred $9,695,396.52 towards the project, which is reported as construction in progress in the Statement of Net Position. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 99 156 The City entered into a contract for construction services for the Solid Waste addition project. The contract commitment for the project is $820,340. For the year ended June 30, 2024, the City had incurred $704,565.60 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract for drilling services for the groundwater investigation project. The contract commitment for the project is $550,850. For the year ended June 30, 2024, the City had incurred $145,464 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract for construction services for the 3rd/4th/5th Avenue water renovations project. The contract commitment for the project is $1,780,840. For the year ended June 30, 2024, the City had incurred $436,583.81 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract for construction services for the City Hall elevator modernization project. The contract commitment for the project is $178,022.40. For the year ended June 30, 2024, the City had incurred $15,498 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract to replace the City Shops roof. The contract commitment for the project is $224,173. For the year ended June 30, 2024, the City had incurred $42,592.87 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract for excavation services for the 5th Avenue Trail project. The contract commitment for the project is $339,425. For the year ended June 30, 2024, the City had incurred $213,685 towards the project, which is reported as construction in progress in the Statement of Net Position. The City entered into a contract for construction services for the Aspen Street pedestrian bridge project. The contract commitment for the project is $394,000.62. For the year ended June 30, 2024, the City had incurred $60,880.41 towards the project, which is reported as construction in progress in the Statement of Net Position. City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 100 157 Note 23 - GASB 100 Accounting Changes American Rescue Plan funding no longer met the minimum thresholds to qualify as a major fund in 2024. As such, these funds have changed from major to non-major status. Downtown Improvement District funds met the minimum thresholds to qualify as a major fund in 2024. As such, these funds have changed from non-major status to major status. A new discrete component unit, the Bozeman Improvement District, was created in 2024. As such, a portion of Downtown Improvement District funds directly supported this new component unit. The implementation of a new discrete component unit and subsequent funding resulted in a decrease to Governmental Activities. A summary of these changes are as follows: Reporting Units affected by Adjustments to and Restatements of Beginning Balances Funds Government Wide Component Unit American Rescue Plan Fund Downtown Improvement District Fund Nonmajor Governmental Governmental Activities Business Improvement District 6/30/23, as previously reported $ 54,789 $ — $ 51,943,648 $ 291,378,235 $ — Change from major to nonmajor fund (54,789) — 54,789 — — Change from nonmajor to major fund — 5,315,195 (5,315,195) — — Change to reporting entity (nonmajor to discrete CU) — (4,685) — (4,685) 4,685 6/30/23, as adjusted or restated $ — $ 5,310,510 $ 46,683,242 $ 291,373,550 $ 4,685 City of Bozeman, MontanaNotes to the Financial Statements June 30, 2024 101 158 Required Supplementary InformationJune 30, 2024City of Bozeman, Montana 159 Schedule of Changes in Total OPEB Liability and Related Ratios Last 10 Fiscal Years* 2024 2023 2022 2021 2020 2019 2018 Service cost $ 308,978 $ 386,864 $ 348,856 $ 218,391 $ 224,433 $ 180,183 $ 256,948 Interest cost 173,250 116,219 101,891 105,950 105,809 88,126 81,562 Assumption changes (8,982) (862,570) 428,413 1,270,632 86,882 225,374 (653,711) Differences between expected and actual experience — (110,114) — (8,615) — (502,125) 431,737 Benefit payments (128,809) (146,957) (147,232) (119,793) (116,330) (118,184) (431,737) Net change in total OPEB liability 344,437 (616,558) 731,928 1,466,565 300,794 (126,626) (315,201) Total OPEB liability, beginning of year 4,450,558 5,067,116 4,335,188 2,868,623 2,567,829 2,694,455 3,009,656 Total OPEB liability, end of year $ 4,794,995 $ 4,450,558 $ 5,067,116 $ 4,335,188 $ 2,868,623 $ 2,567,829 $ 2,694,455 Covered payroll $ 37,388,341 $ 29,433,945 $ 27,432,420 $ 29,119,539 $ 24,490,157 $ 23,503,572 $ 45,345,305 City's total OPEB liability as a percentage of covered payroll 12.82 % 15.12 % 18.47 % 14.89 % 11.71 % 10.93 % 5.94 % *GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. City of Bozeman, MontanaSchedule of Changes in Total OPEB Liability and Related Ratios June 30, 2024 103 160 Notes to the Schedule of Changes in Total OPEB Liability and Related Ratios Assets are not accumulated in a trust that meets the criteria in GASB Statement No. 75, paragraph 4 to pay related benefits. 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: 6/30/2024 3.86% 6/30/2023 3.69% 6/30/2022 2.16% 6/30/2021 2.21% 6/30/2020 3.50% 6/30/2019 3.87% 6/30/2018 3.13% City of Bozeman, MontanaNotes to the Schedule of Changes in Total OPEB Liability and Related Ratios June 30, 2024 104 161 Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions Montana Public Employees Retirement System Pension PlanSchedule of Employer’s Share of Net Pension Liability Last 10 Fiscal Years* Measurement Date Employer's Proportion (Percentage) of the Net Pension Liability Employer's Proportionate Share (Amount) of the Net Pension Liability (a) State's Proportionate Share (Amount) of the Net Pension Liability (b) Total Proportionate Share (Amount) of the Net Pension Liability (a+b) Employer's Covered-Payroll (c) Employer's Proportionate Share of the Total Pension Liability as a Percentage of its Covered-Payroll (a/c) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 6/30/2023 1.1328%$ 27,643,462 $ 7,678,503 $ 35,321,965 $ 21,060,215 131.26%73.93% 6/30/2022 0.9053%$ 21,527,855 $ 6,454,277 $ 27,982,132 $ 15,910,277 135.31%73.66% 6/30/2021 0.8410%$ 15,249,847 $ 4,507,680 $ 19,757,527 $ 14,855,905 102.65%79.91% 6/30/2020 0.8522%$ 22,483,506 $ 7,096,303 $ 29,579,809 $ 14,298,930 157.24%68.90% 6/30/2019 0.8620%$ 18,018,037 $ 5,867,557 $ 23,885,594 $ 14,222,530 126.69%73.85% 6/30/2018 0.8336%$ 17,399,265 $ 5,822,595 $ 23,221,860 $ 13,764,340 126.41%73.47% 6/30/2017 1.0419%$ 20,291,988 $ 266,967 $ 20,558,955 $ 12,924,792 157.00%73.75% 6/30/2016 1.0218%$ 17,404,143 $ 212,659 $ 17,616,802 $ 12,238,920 142.20%74.71% 6/30/2015 0.9588%$ 13,403,285 $ 164,637 $ 13,567,922 $ 11,189,797 119.78%78.40% 6/30/2014 0.9150%$ 11,401,613 $ 139,231 $ 11,540,844 $ 10,479,122 108.80%79.90% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend in compiled, the City will present information for those years for which information is available. Schedule of Employer’s Contributions Last 10 Fiscal Years* Reporting Date Statutorily Required Contribution (a) Plan Choice Rate Required Contribution (b) Contributions in Relation to the Statutorily Required Contribution (c) Contribution Deficiency (Excess) (a+b-c) Covered- Payroll (d) Contributions as a Percentage of Covered- Payroll (c/d) 6/30/2024 $ 2,088,941 $ — $ 2,088,941 $ — $ 23,031,318 9.07% 6/30/2023 $ 1,904,834 $ — $ 1,904,834 $ — $ 21,060,215 9.04% 6/30/2022 $ 1,414,999 $ — $ 1,414,999 $ — $ 15,910,277 8.89% 6/30/2021 $ 1,316,517 $ — $ 1,316,517 $ — $ 14,855,905 8.86% 6/30/2020 $ 1,252,776 $ — $ 1,252,776 $ — $ 14,298,930 8.76% 6/30/2019 $ 1,223,234 $ — $ 1,223,234 $ — $ 14,222,530 8.60% 6/30/2018 $ 1,161,210 $ — $ 1,161,210 $ — $ 13,764,340 8.44% 6/30/2017 $ 1,081,810 $ — $ 1,081,810 $ — $ 12,924,792 8.37% 6/30/2016 $ 1,022,996 $ 28,892 $ 1,051,888 $ — $ 12,238,920 8.59% 6/30/2015 $ 922,084 $ 52,151 $ 974,235 $ — $ 11,189,797 8.71% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend in compiled, the City will present information for those years for which information is available. City of Bozeman, MontanaSchedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s ContributionsMontana Public Employees' Retirement System Pension Plan June 30, 2024 105 162 Montana Firefighters' Retirement System Pension Plan Schedule of Employer’s Share of Net Pension Liability Last 10 Fiscal Years* Employer's Employer's State's Total Proportionate Employer's Proportionate Proportionate Proportionate Share of the Net Plan Fiduciary Proportion Share (Amount)Share (Amount)Share (Amount)Pension Liability Net Position as (Percentage)of the Net of the Net of the Net Employer's as a Percentage a Percentage of Measurement of the Net Pension Liability Pension Liability Pension Liability Covered-of its Covered-the Total Pension Date Pension Liability (a)(b)(a+b)Payroll (c)Payroll (a/c)Liability 6/30/2023 2.2094%$ 3,335,681 $ 7,570,801 $ 10,906,482 $ 4,759,139 70.09%81.00% 6/30/2022 2.2000%$ 3,494,798 $ 7,906,822 $ 11,401,620 $ 4,263,039 81.98%78.76% 6/30/2021 2.2620%$ 1,935,764 $ 4,393,566 $ 6,329,330 $ 4,162,698 46.50%87.72% 6/30/2020 2.3217%$ 3,632,985 $ 8,189,975 $ 11,822,960 $ 4,052,989 89.64%75.34% 6/30/2019 2.1955%$ 2,518,508 $ 6,091,025 $ 8,609,533 $ 3,807,151 66.15%80.08% 6/30/2018 2.3663%$ 2,725,281 $ 6,231,502 $ 8,956,783 $ 3,726,746 73.13%79.03% 6/30/2017 2.3492%$ 2,655,380 $ 6,030,078 $ 8,685,458 $ 3,511,860 75.61%77.77% 6/30/2016 2.3705%$ 2,707,390 $ 6,134,093 $ 8,841,483 $ 3,338,041 81.11%75.48% 6/30/2015 2.4336%$ 2,489,054 $ 5,543,784 $ 8,032,838 $ 3,270,451 76.11%76.90% 6/30/2014 2.4192%$ 2,361,551 $ 5,327,544 $ 7,689,095 $ 3,142,481 75.15%76.71% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend in compiled, the City will present information for those years for which information is available. Schedule of Employer’s Contributions Last 10 Fiscal Years* Contributions in Relation to the Contributions as Statutorily Statutorily Contribution a Percentage of Reporting Required Required Deficiency Covered-Covered- Date Contribution (a)Contribution (b)(Excess) (a-b)Payroll (c)Payroll (b/c) 6/30/2024 $ 758,156 $ 758,156 $ — $ 5,279,640 14.36% 6/30/2023 $ 684,507 $ 684,507 $ — $ 4,759,139 14.38% 6/30/2022 $ 616,605 $ 616,605 $ — $ 4,263,039 14.46% 6/30/2021 $ 595,510 $ 595,510 $ — $ 4,162,698 14.31% 6/30/2020 $ 596,564 $ 596,564 $ — $ 4,052,989 14.72% 6/30/2019 $ 524,670 $ 524,670 $ — $ 3,807,151 13.78% 6/30/2018 $ 548,518 $ 548,518 $ — $ 3,726,746 14.72% 6/30/2017 $ 504,303 $ 504,303 $ — $ 3,511,860 14.36% 6/30/2016 $ 477,250 $ 477,250 $ — $ 3,338,041 14.30% 6/30/2015 $ 478,776 $ 478,776 $ — $ 3,270,451 14.64% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend in compiled, the City will present information for those years for which information is available. City of Bozeman, MontanaSchedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s ContributionsMontana Firefighters' Retirement System Pension Plan June 30, 2024 106 163 Montana Municipal Police Officers' Retirement System Pension PlanSchedule of Employer’s Share of Net Pension Liability Last 10 Fiscal Years* Employer's Employer's State's Total Proportionate Employer's Proportionate Proportionate Proportionate Share of the Net Plan Fiduciary Proportion Share (Amount)Share (Amount)Share (Amount)Pension Liability Net Position as (Percentage)of the Net of the Net of the Net Employer's as a Percentage a Percentage of Measurement of the Net Pension Liability Pension Liability Pension Liability Covered-of its Covered-the Total Pension Date Pension Liability (a)(b)(a+b)Payroll (c)Payroll (a/c)Liability 6/30/2023 3.0406%$ 7,049,339 $ 14,227,120 $ 21,276,459 $ 6,130,962 114.98%71.65% 6/30/2022 3.0145%$ 7,120,779 $ 14,472,724 $ 21,593,503 $ 5,623,538 126.62%69.67% 6/30/2021 2.9306%$ 5,327,439 $ 10,828,332 $ 16,155,771 $ 5,303,838 100.44%75.76% 6/30/2020 2.9892%$ 7,311,248 $ 14,746,046 $ 22,057,294 $ 5,120,608 142.78%64.84% 6/30/2019 2.8699%$ 5,712,381 $ 11,632,402 $ 17,344,783 $ 4,729,931 120.77%68.84% 6/30/2018 2.9325%$ 5,022,189 $ 10,266,345 $ 15,288,534 $ 4,628,804 108.50%70.95% 6/30/2017 3.0402%$ 5,408,979 $ 11,024,418 $ 16,433,397 $ 4,555,121 118.75%68.34% 6/30/2016 3.0842%$ 5,552,007 $ 11,020,975 $ 16,572,982 $ 4,353,897 127.52%65.62% 6/30/2015 2.9746%$ 4,920,638 $ 9,969,680 $ 14,890,318 $ 4,116,930 119.52%66.90% 6/30/2014 3.0209%$ 4,746,933 $ 9,589,371 $ 14,336,304 $ 3,142,481 151.06%67.01% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend in compiled, the City will present information for those years for which information is available. Schedule of Employer’s Contributions Last 10 Fiscal Years* Contributions in Relation to the Contributions as Statutorily Statutorily Contribution a Percentage of Reporting Required Required Deficiency Covered-Covered- Date Contribution (a)Contribution (b)(Excess) (a-b)Payroll (c)Payroll (b/c) 6/30/2024 $ 932,302 $ 932,302 $ — $ 6,469,828 14.41% 6/30/2023 $ 892,375 $ 892,375 $ — $ 6,130,962 14.56% 6/30/2022 $ 816,313 $ 816,313 $ — $ 5,623,538 14.52% 6/30/2021 $ 763,261 $ 763,261 $ — $ 5,303,838 14.39% 6/30/2020 $ 732,880 $ 732,880 $ — $ 5,120,608 14.31% 6/30/2019 $ 684,296 $ 684,296 $ — $ 4,729,931 14.47% 6/30/2018 $ 692,318 $ 692,318 $ — $ 4,628,804 14.96% 6/30/2017 $ 655,143 $ 655,143 $ — $ 4,555,121 14.38% 6/30/2016 $ 637,789 $ 637,789 $ — $ 4,353,897 14.65% 6/30/2015 $ 596,791 $ 596,791 $ — $ 4,116,930 14.50% *GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend in compiled, the City will present information for those years for which information is available. City of Bozeman, MontanaSchedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s ContributionsMontana Municipal Police Officers' Retirement System Pension Plan June 30, 2024 107 164 Notes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions 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 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. 2017 Legislative Changes – FURS: Working Retiree Limitations 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: ◦May not become an active member in the system; and ◦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: ◦Must become an active member of the system; ◦Will stop receiving a retirement benefit from the system; and ◦Will be eligible for a second retirement benefit if they earn 5 or more years of service credit through their second employment. City of Bozeman, MontanaNotes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions June 30, 2024 108 165 •Employee, employer and state contributions, if any, apply as follows: ◦Employer contributions and state contributions (if any) must be paid on all working retirees; ◦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 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: ◦Is not awarded service credit for the period of reemployment; ◦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 ◦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. •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: ◦Is awarded service credit for the period of reemployment; ◦Starting the first month following termination of service, 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 member’s rehire date; and ◦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. •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. City of Bozeman, MontanaNotes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions June 30, 2024 109 166 2017 Legislative Changes – MPORS: Working Retiree Limitations 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: ◦May not become an active member in the system; and ◦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: ◦Must become an active member of the system; ◦Will stop receiving a retirement benefit from the system; and ◦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: ◦Employer contributions and state contributions (if any) must be paid on all working retirees; ◦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 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: ◦Is not awarded service credit for the period of reemployment; ◦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 ◦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. •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: ◦Is awarded service credit for the period of reemployment; ◦Starting the first month following termination of service, 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 member’s rehire date; and ◦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. •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. City of Bozeman, MontanaNotes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions June 30, 2024 110 167 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. Method and Assumptions used in Calculations of Actuarially Determined Contributions The following actuarial assumptions and methods were used to determine contribution rates reported for fiscal year ending June 30, 2023, which were based on the results of the June 30, 2022 actuarial valuation: PERS FURS MPORS General Wage Growth*3.50%3.50%3.50% Investment Rate of Return*7.30%, net of pension plan investment and administrative expenses 7.30%, net of pension plan investments and administrative expenses 7.30%, net of pension plan investments and administrative expenses *Includes inflation at 2.75%2.75%2.75% Merit salary increase 0% to 4.80%1% to 6.40%1% to 6.40% Asset valuation method Four-year smoothed market Four-year smoothed market Four-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 payroll, open Level percentage of pay, open Remaining amortization period 30 years Mortality •Active Participants PUB-2010 General Amount Weighted Employee Mortality projected to 2021 for males and females. Projected generationally using MP-2021. PUB-2010 Safety Amount Weighted Employee Mortality projected to 2021 for males and females. Projected generationally using MP-2021. PUB-2010 Safety Amount Weighted Employee Mortality projected to 2021 for males and females. Projected generationally using MP-2021. •Healthy Retiree PUB-2010 General Amount Weighted Disabled Retiree mortality table, projected to 2021, set forward one year for both males and females. PUB-2010 Safety Amount Weighted Healthy Retiree Mortality Table projected to 2021, set forward one year for males and adjusted 105% for males and 100% for females. Projected generationally using MP-2021. PUB-2010 Safety Amount Weighted Healthy Retiree mortality table projected to 2021 set forward one year for males and adjusted 105% for males, and 100% for females. Projected generationally using MP-2021. •Disabled Retiree PUB-2010 General Amount Weighted Contingent Survivor Mortality projected to 2021 with ages set forward one year for males and females. Projected PUB 2010 Safety Amount Weighted Disabled Retiree Mortality projected to 2021, set forward one year for males. PUB-2010 Safety Amount Weighted Disabled Retiree mortality table projected to 2021, set forward one year for males. •Contingent Survivor PUB-2010 General Amount Weighted Healthy Retiree Mortality Table projected to 2021, with ages set forward one year and adjusted 104% for males and 103% for females. Projected generationally using MP-2021. PUB-2010 Safety Amount Weighted Contingent Survivor Mortality projected to 2021, set forward one year for males. Projected generationally using MP-2021. PUB-2010 Safety Amount Weighted Contingent Survivor Mortality projected to 2021, set forward one year for males. Projected generationally using MP-2021. 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. The actuarial assumptions and methods utilized in the June 30, 2022 valuation, were developed in the five-year experience study for the period ending 2021. City of Bozeman, MontanaNotes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions June 30, 2024 111 168 Schedule of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary BasisGeneral Fund Original Budget Final Budget Actual Amounts Variance With Final Budget Budgetary Fund Balance, July 1 $ 11,920,990 $ 11,920,990 $ 11,920,990 $ — Resources (inflows): Taxes 28,850,300 28,850,300 29,539,101 688,801 Special assessments — 185 185 Licenses and permits 420,400 420,400 414,079 (6,321) Intergovernmental 10,316,100 10,316,100 10,400,706 84,606 Charges for services 7,384,000 7,384,000 7,708,629 324,629 Fines and forfeitures 893,300 893,300 914,294 20,994 Interest on investments 250,000 250,000 554,609 304,609 Change in fair market value of investments — — 118,400 118,400 Miscellaneous 219,900 219,900 482,069 262,169 Transfers in 5,176,600 5,176,600 6,725,110 1,548,510 Issuance of long-term debt — — 4,255,244 4,255,244 Sale of capital assets 12,600 12,600 7,536 (5,065) Amounts available for appropriation 65,444,190 65,444,190 73,040,952 7,596,762 Charges to Appropriations (outflows): Current General government 16,107,400 16,185,100 13,074,257 3,110,843 Public safety 23,101,400 23,141,200 22,488,680 652,520 Public welfare 8,407,500 8,433,300 7,149,472 1,283,828 Other 3,102,800 3,102,800 2,292,267 810,533 Capital outlay 4,125,700 4,728,400 3,086,381 1,642,019 Debt service Principal 58,500 58,500 170,426 (111,926) Interest and fiscal charges 2,900 2,900 29,755 (26,855) Transfers to other funds 800,800 800,800 1,630,772 (829,972) Total charges to appropriations 55,707,000 56,453,000 49,922,009 6,530,991 Budgetary fund balance, June 30 $ 9,737,190 $ 8,991,190 $ 23,118,943 $ 14,127,753 City of Bozeman, MontanaSchedule of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary BasisGeneral Fund June 30, 2024 112 169 Major Special Revenue Funds Street Maintenance District Special Revenue Fund Downtown Improvement District Special Revenue Fund Original Budget Final Budget Actual Amounts Variance With Final Budget Original Budget Final Budget Actual Amounts Variance With Final Budget Budgetary Fund Balance, July 1 $ 1,845,732 $ 1,845,732 $ 1,845,732 $ — $ 5,310,511 $ 5,310,511 $ 5,310,511 $ — Resources (inflows): Taxes — — — — 1,558,200 1,558,200 2,656,682 1,098,482 Special assessments 19,700 19,700 21,385 1,685 — — — — Licenses and permits 24,300 24,300 30,993 6,693 — — — — Intergovernmental 1,989,100 1,989,100 3,525,352 1,536,252 57,100 57,100 67,266 10,166 Charges for services 9,060,700 9,060,700 8,973,561 (87,139) — — — — Interest on investments 25,000 25,000 130,782 105,782 2,100 2,100 257,100 255,000 Change in fair market value of Investments — — 9,478 9,478 — — 112,129 112,129 Miscellaneous 18,300 18,300 75,875 57,575 — — 115 115 Transfers in — 292,180 292,179 (1) — — — — Issuance of long-term debt — — 911,912 911,912 — — — — Sale of capital assets 20,800 20,800 151 (20,649) — — — — Amounts available for appropriation 13,003,632 13,295,812 15,817,401 2,521,589 6,927,911 6,927,911 8,403,803 1,475,893 Charges to Appropriations (outflows): Current Public works 8,327,400 8,061,400 7,435,068 626,332 — — — — Public welfare — — — — 5,788,100 5,788,100 646,748 5,141,352 Capital outlay 2,371,900 3,944,300 3,087,855 856,445 2,525,000 2,525,000 — 2,525,000 Debt service — Principal 213,800 213,800 301,954 (88,154) — — — — Interest and fiscal charges — — 63,034 (63,034) — — — — Transfers to other funds — — — — 332,800 332,800 332,831 (31) Total charges to appropriation 10,913,100 12,219,500 10,887,911 1,331,589 8,645,900 8,645,900 979,578 7,666,322 Budgetary fund balance, June 30 $ 2,090,532 $ 1,076,312 $ 4,929,490 $ 3,853,178 $ (1,717,989) $ (1,717,989) $ 7,424,225 $ 9,142,214 City of Bozeman, MontanaSchedule of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary BasisMajor Special Revenue Funds June 30, 2024 113 170 Notes to the Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget to Actual – Budgetary Basis General Fund Street Maintenance District Downtown Improvement District Sources/ inflows of resources Actual amounts (budgetary basis) "available for appropriation" from the budgetary comparison schedule $ 73,040,952 $ 15,817,401 $ 8,403,803 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. (11,920,990) (1,845,732) (5,310,511) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes. (6,725,110) (292,179) — The proceeds from the issuance of long-term debt or a lease are a budgetary resource but are another financing source for financial reporting purposes. (4,255,244) (911,912) — The proceeds from the sale of assets are budgetary resources but are regarded as a special item, rather than revenue, for financial reporting purposes. (7,536) (151) — Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds $ 50,132,074 $ 12,767,426 $ 3,093,293 Uses/ outflows of resources Actual amounts (budgetary basis) "total charges to appropriations"from the budgetary comparison schedule $ 49,922,009 $ 10,887,911 $ 979,578 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes. (1,630,772) — (332,831) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds $ 48,291,237 $ 10,887,911 $ 646,748 City of Bozeman, MontanaNotes to the Schedule of Revenue, Expenditures, and Changes in Fund BalancesBudget to Actual – Budgetary Basis June 30, 2024 114 171 Other Supplementary InformationJune 30, 2024City of Bozeman, Montana 115 172 Combining and Individual Fund Statements and SchedulesStatement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Major Debt Service Fund and Major Capital Projects Fund SID Debt Service Capital Projects Final Budget Actual Amounts Variance with Final Budget Final Budget Actual Amounts Variance with Final Budget Revenues Special assessments $ 742,200 $ 515,511 $ (226,689) $ — $ — $ — Interest on investments 41,900 75,484 33,584 107,700 163,063 55,363 Change in fair market value of investments — 31,425 31,425 — 276,307 276,307 Miscellaneous — — — 3,000,000 — (3,000,000) Total revenues 784,100 622,420 (161,680) 3,107,700 439,370 (2,668,330) Expenditures Current Public safety — — — — 13,449 (13,449) Public works — — — — 3,507 (3,507) Public welfare — — — — 65,271 (65,271) Capital outlay — — — 124,361,600 11,543,267 112,818,333 Debt service — — — — Principal 196,800 204,722 (7,922) — — — Interest and fiscal charges 111,000 115,554 (4,554) — — — Total expenditures 307,800 320,276 (12,476) 124,361,600 11,625,494 112,736,106 Excess (Deficiency) of Revenues over (under) Expenditures 476,300 302,145 (174,155) (121,253,900) (11,186,124) 110,067,776 Other Financing Sources (Uses) Transfers in — — — 7,599,000 6,703,714 (895,286) Transfers out — (782,130) (30) — (2,046,405) (2,046,405) Proceeds from Long-Term Debt, net — — — 105,787,100 2,424,019 (103,363,081) Total other financing sources (uses) (782,100) (782,130) (30) 113,386,100 7,081,328 (106,304,772) Net Change in Fund Balance $ (305,800) (479,985) $ (174,185) $ (7,867,800) (4,104,796) $ 3,763,004 Fund Balance, Beginning of Year 1,518,340 10,467,723 Fund Balance, End of Year $ 1,038,355 $ 6,362,927 City of Bozeman, MontanaStatement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Major Debt Service Fund and Major Capital Projects Fund June 30, 2024 116 173 Nonmajor Governmental FundsDescription of Nonmajor FundsSpecial Revenue Funds Departmental Special Revenues – Accounts for monies received and expended for projects relating to various City departments. City Planning – 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. 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. Health-Medical Insurance – Accounts for property tax revenues received and transferred to the General Fund and City Planning 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. Tree Maintenance – Accounts for special assessment revenues collected and expended for maintenance of trees in the right of way. Fire Impact Fee – Accounts for the collection and expenditures of fire impact fees. Street Impact Fee – Accounts for the collection and expenditures of street impact fees. Building Inspection Fund – Accounts for all activity related to enforcing the building regulations and codes adopted by the City Commission. It includes all the money and staff associated with executing any aspect of the code enforcement program. Pole Yard TIF – In November 2020, the City created a tax increment financing district to eliminate conditions that contribute to blight substantially impairing sound growth of the City through investments in public infrastructure and efficient delivery of public services. The fund accounts for the revenue and expenditures associated with the district. 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. 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. Metropolitan Planning Organization – This fund accounts for transportation planning and alternative transportation services in Gallatin County. Street Arterial & Collector District – Accounts for special assessment revenues collected and expended for necessary transportation infrastructure. TIF N 7th Corridor – In August of 2005, the City created a tax increment financing district to eliminate conditions that contribute to blight substantially impairing sound growth of the City through investments in public infrastructure and efficient delivery of public services. The fund accounts for the revenue and expenditures associated with the district. City of Bozeman, MontanaDescription of Nonmajor FundsNonmajor Governmental Funds June 30, 2024 117 174 TIF N.E. Urban Renewal – In August of 2005, the City created a tax increment financing district to eliminate conditions that contribute to blight substantially impairing sound growth of the City through investments in public infrastructure and efficient delivery of public services. The 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. Victim/Witness Advocate – Accounts for monies collected through the Court system to assist with Victim and Witness Advocate Program. Fire Department Equipment– Accounts for 4.0 mills approved by voters in 2007 for fire department capital and equipment. 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. 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 revenue collected and expended to manage and maintain citywide parks and trails. Street Lighting – Accounts for special assessment revenues colleted 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. 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 City's outstanding general obligation bonds. Tax Increment Financing Bonds Debt Service Fund – Accounts for the debt service payments associated with outstanding Tax Increment Urban Renewal Revenue Bonds. Permanent Funds Perpetual Cemetery Care – Accounts for the 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. City of Bozeman, MontanaDescription of Nonmajor FundsNonmajor Governmental Funds June 30, 2024 118 175 Combining Balance Sheet Special Revenue Funds Health-Medical Gas Tax Departmental City Planning ARPA Insurance Apportionment Assets Cash and investments $ 2,459,415 $ 3,077,448 $ 437,478 $ 461,909 $ — Receivables (Net of allowance for uncollectibles) — Property taxes 11,445 21,522 — 163,881 — Accrued interest 9,260 11,537 2,329 1,777 — Accounts 17,547 — — — — Special assessments — — — — — Intergovernmental 10,411 — — Advances to other funds — — — — — Notes receivable — — — — — Restricted cash and investments 47,357 — — — — Total assets $ 2,555,435 $ 3,110,507 $ 439,807 $ 627,567 $ — Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable $ 91,798 $ 39,306 $ — $ — $ — Escheat property payable — — — — — Accrued employee benefits — 784 — — — Interest payable — 1,103 — — — Appearance bonds and other liabilities — — — — — Due to other funds — — — — — Unearned revenue 35,308 — 174,091 — — Total liabilities 127,106 41,193 174,091 — — Deferred Inflows of Resources Unavailable revenue - property taxes 1,144 2,167 — 19,335 — Fund Balance (Deficit) Nonspendable — — — — — Restricted 525,452 3,067,147 265,716 608,232 — Committed 347,453 — — — — Assigned 1,554,280 — — — — Unassigned — — — — — Total fund balance (deficit) 2,427,185 3,067,147 265,716 608,232 — Total liabilities, deferred inflows of resources, and fund balances $ 2,555,435 $ 3,110,507 $ 439,807 $ 627,567 $ — City of Bozeman, MontanaCombining Balance SheetNonmajor Governmental Funds June 30, 2024 119 176 Special Revenue Funds Tree Building Pole Yard Maintenance Fire Impact Fee Street Impact Fee Inspection TIF District Assets Cash and investments $ 739,659 $ — $ — $ 1,573,127 $ 830,064 Receivables (Net of allowance for uncollectibles) Property taxes — — — — 14,844 Accrued interest 2,845 22,217 69,835 6,050 — Accounts — — 3,604,670 — — Special assessments 18,478 — — — — Intergovernmental — — — — — Advances to other funds — — — — — Notes receivable — — — — — Restricted cash and investments — 1,967,636 18,089,957 — — Total assets $ 760,982 $ 1,989,853 $ 21,764,462 $ 1,579,177 $ 844,908 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable $ 51,376 $ 2 $ 104,779 $ 136,034 $ — Escheat property payable — — — — — Accrued employee benefits — — — 887 — Interest payable — — — 3,309 — Appearance bonds and other liabilities — — 120,275 — — Due to other funds — — — — — Unearned revenue 9,100 — 3,337,188 — — Total liabilities 60,476 2 3,562,242 140,230 — Deferred Inflows of Resources Unavailable revenue - property taxes — — — — — Fund Balance (Deficit) Nonspendable — — — — — Restricted 700,506 1,989,851 18,202,220 1,438,947 844,908 Committed — — — — — Assigned — — — — — Unassigned — — — — — Total fund balance (deficit) 700,506 1,989,851 18,202,220 1,438,947 844,908 Total liabilities, deferred inflows of resources, and fund balances $ 760,982 $ 1,989,853 $ 21,764,462 $ 1,579,177 $ 844,908 City of Bozeman, MontanaCombining Balance SheetNonmajor Governmental Funds June 30, 2024 120 177 Special Revenue Funds Economic Metropolitan Street Arterial North Development Community Planning and Collector 7th Corridor Revolving Loans Housing Organization District TIF District Assets Cash and investments $ — $ 1,951,116 $ — $ 3,494,786 $ 2,083,449 Receivables (Net of allowance for uncollectibles) Property taxes — 87,023 — — 198,413 Accrued interest — 7,505 — 13,443 8,014 Accounts 398,259 — — — — Special assessments — — — 35,423 — Intergovernmental — — 5,876 — — Advances to other funds — — — — — Notes receivable 586,422 12,499 — — — Restricted cash and investments — — — 2,124,753 512,091 Total assets $ 984,681 $ 2,058,143 $ 5,876 $ 5,668,405 $ 2,801,967 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable $ — $ 78,152 $ 1,110 $ 49,385 $ 247,514 Escheat property payable — — — — — Accrued employee benefits — — — — — Interest payable — — — — — Appearance bonds and other liabilities — — — 75,172 10,684 Due to other funds — — 4,766 — — Unearned revenue — — — — — Total liabilities — 78,152 5,876 124,557 258,198 Deferred Inflows of Resources Unavailable revenue - property taxes — 8,780 — — 56,844 Fund Balance (Deficit) Nonspendable — — — — — Restricted 984,681 — — 5,543,848 2,486,925 Committed — 1,971,211 — — — Assigned — — — — — Unassigned — — — — — Total fund balance (deficit) 984,681 1,971,211 — 5,543,848 2,486,925 Total liabilities, deferred inflows of resources, and fund balances $ 984,681 $ 2,058,143 $ 5,876 $ 5,668,405 $ 2,801,967 City of Bozeman, MontanaCombining Balance SheetNonmajor Governmental Funds June 30, 2024 121 178 Special Revenue Funds Northeast Mandeville/ Urban Renewal Wheat Drive Victim/Witness Fire Department South Bozeman TIF District TIF District Advocate Equipment TIF District Assets Cash and investments $ 1,468,438 $ 200,465 $ 360,371 $ — $ 102,703 Receivables (Net of allowance for uncollectibles) Property taxes 39,388 12,294 — 58,460 — Accrued interest 5,649 771 1,386 — 395 Accounts — — 2,899 — — Special assessments — — — — — Intergovernmental — — — — — Advances to other funds — — — — — Notes receivable — — — — — Restricted cash and investments 92,000 — — — — Total assets $ 1,605,475 $ 213,530 $ 364,656 $ 58,460 $ 103,098 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable $ 1,214 $ — $ 1,901 $ 13,129 $ 16,409 Escheat property payable — — — — — Accrued employee benefits — — — — — Interest payable — — — — — Appearance bonds and other liabilities 1,300 — — — — Due to other funds — — — 2,315,200 — Unearned revenue — — — — — Total liabilities 2,514 — 1,901 2,328,329 16,409 Deferred Inflows of Resources Unavailable revenue - property taxes — — — 5,396 — Fund Balance (Deficit) Nonspendable — — — — — Restricted 1,602,961 213,530 362,755 — 86,689 Committed — — — — — Assigned — — — — — Unassigned — — — (2,275,265) — Total fund balance (deficit) 1,602,961 213,530 362,755 (2,275,265) 86,689 Total liabilities, deferred inflows of resources, and fund balances $ 1,605,475 $ 213,530 $ 364,656 $ 58,460 $ 103,098 City of Bozeman, MontanaCombining Balance SheetNonmajor Governmental Funds June 30, 2024 122 179 Special Revenue Funds Total NonmajorParks and Trails Street Municipal Court Special District Lighting Park Land Restitution Revenue Funds Assets Cash and investments $ 5,129,788 $ 456,004 $ 2,848,409 $ — $ 27,674,629 Receivables (Net of allowance for uncollectibles) Property taxes — — — — 607,270 Accrued interest 19,732 1,625 10,957 — 195,325 Accounts — — — — 4,023,375 Special assessments 122,597 7,489 — — 183,987 Intergovernmental — — — — 16,287 Advances to other funds — — — — — Notes receivable — — — — 598,921 Restricted cash and investments — — — 20,121 22,853,915 Total assets $ 5,272,117 $ 465,118 $ 2,859,366 $ 20,121 $ 56,153,709 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable $ 367,736 $ 22,525 $ 24,873 $ — $ 1,247,243 Escheat property payable — — — 20,016 20,016 Accrued employee benefits — — — — 1,671 Interest payable — — — — 4,412 Appearance bonds and other liabilities — — — — 207,431 Due to other funds — — — — 2,319,966 Unearned revenue — — — — 3,555,687 — Total liabilities 367,736 22,525 24,873 20,016 7,356,426 Deferred Inflows of Resources Unavailable revenue - property taxes — — — — 93,666 Fund Balance (Deficit) Nonspendable — — — — — Restricted 4,904,381 442,593 2,834,493 105 47,105,938 Committed — — — — 2,318,664 Assigned — — — — 1,554,280 Unassigned — — — — (2,275,265) Total fund balance (deficit) 4,904,381 442,593 2,834,493 105 48,703,617 Total liabilities, deferred inflows of resources, and fund balances $ 5,272,117 $ 465,118 $ 2,859,366 $ 20,121 $ 56,153,709 City of Bozeman, MontanaCombining Balance SheetNonmajor Governmental Funds June 30, 2024 123 180 Debt Service Funds Total Nonmajor SID General Obligation Debt Service Revolving Bonds TIF Bonds Funds Assets Cash and investments $ 336,358 $ — $ — $ 336,358 Receivables (Net of allowance for uncollectibles) Property taxes — 248,967 — 248,967 Accrued interest 251 36 — 287 Accounts — — — — Special assessments — — — — Intergovernmental — — — — Advances to other funds 1,372,646 — — 1,372,646 Notes receivable — — — — Restricted cash and investments — — — — Total assets $ 1,709,255 $ 249,003 $ — $ 1,958,258 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable — — — — Escheat property payable — — — — Accrued employee benefits — — — — Interest payable — — — — Appearance bonds and other liabilities — — — — Due to other funds $ — $ 416,765 $ — $ 416,765 Unearned revenue — — — — Total liabilities — 416,765 — 416,765 Deferred Inflows of Resources Unavailable revenue - property taxes — 25,693 — 25,693 Fund Balance (Deficit) Nonspendable — — — — Restricted 1,709,255 — — 1,709,255 Committed — — — — Assigned — — — — Unassigned — (193,458) — (193,455) Total fund balance (deficit) 1,709,255 (193,458) — 1,515,800 Total liabilities, deferred inflows of resources, and fund balances $ 1,709,255 $ 249,003 $ — $ 1,958,258 City of Bozeman, MontanaCombining Balance SheetNonmajor Governmental Funds June 30, 2024 124 181 Permanent Fund Total Total Nonmajor Cemetary Governmental Perpetual Care Funds Assets Cash and investments $ — $ 28,010,987 Receivables (Net of allowance for uncollectibles) Property Taxes Receivable — 856,237 Accrued interest receivable 7,750 203,362 Customers receivables, net 1,291 4,024,666 Special assessment receivables — 183,987 Other government receivables — 16,287 Advances to other funds — 1,372,646 Notes receivable — 598,921 Restricted Cash 2,014,853 24,868,768 Total assets $ 2,023,894 $ 60,135,861 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable $ — $ 1,247,243 Escheat property payable — 20,016 Accrued employee benefits — 1,671 Interest payable — 4,412 Appearance bonds and other liabilities — 207,431 Due to other funds — 2,736,731 Unearned revenue 21,811 3,577,498 Total liabilities 21,811 7,795,002 Deferred Inflows of Resources Deferred Inflows- property taxes — 119,359 Fund Balance (Deficit) Nonspendable 2,002,083 2,002,083 Restricted — 48,815,193 Committed — 2,318,664 Assigned — 1,554,280 Unassigned — (2,468,720) Total fund balance (deficit) 2,002,083 52,221,500 Total liabilities, deferred inflows of resources, and fund balances $ 2,023,894 $ 60,135,861 City of Bozeman, MontanaCombining Balance SheetNonmajor Governmental Funds June 30, 2024 125 182 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds Health-Medical Gas Tax Departmental City Planning ARPA Insurance Apportionment Revenues Taxes $ 186,319 $ 349,560 $ — $ 2,616,796 $ — Special assessments — — — — — Licenses and permits — 98,758 — — — Intergovernmental 317,579 181,212 4,115,310 — — Charges for services 51,125 1,312,122 — — — Fines and forfeits — — — — — Interest on investments 79,144 74,283 70,175 11,264 4,833 Change in fair market value of investments 29,099 5,264 140,751 31,499 19,602 Interest on loans receivable — — — — — Miscellaneous 13,710 78,177 — — — Total revenues 676,976 2,099,376 4,326,237 2,659,558 24,435 Expenditures Current General government — 3,015,871 — — — Public safety 456,313 — — — — Public works — — — — — Public welfare 190,001 — — — — Other — — — — — Capital outlay — — — — — Debt service — — — Principal 34,690 22,422 — — — Interest and fiscal charges 28,208 1,304 — — — Total expenditures 709,211 3,039,597 — — — Excess (Deficiency) of Revenues Over (Under) Expenditures (32,235) (940,221) 4,326,237 2,659,558 24,435 Other Financing Sources (Uses) Transfers in 147,998 2,638,825 — — — Transfers out — — (4,115,310) (3,392,870) (265,958) Proceeds from Long-Term Debt, net — — — — — Issuance of long-term debt — — — — — Lease proceeds — — — — — Sale of capital assets — — — — — Total other financing sources (uses) 147,998 2,638,825 (4,115,310) (3,392,870) (265,958) Net Change in Fund Balances 115,764 1,698,604 210,927 (733,311) (241,523) Fund Balance, Beginning of Year, as previously presented 2,311,421 1,368,543 54,789 1,341,543 241,523 Change within financial reporting entity (major to nonmajor) — — 54,789 — — Change within financial reporting entity (nonmajor to major) — — — — — Fund Balance, Beginning of Year, as adjusted 2,311,421 1,368,543 54,789 1,341,543 241,523 Fund Balance, End of Year $ 2,427,185 $ 3,067,147 $ 265,716 $ 608,232 $ — City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds Year Ended June 30, 2024 126 183 Special Revenue Funds Tree Fire Street Building Pole Yard Maintenance Impact Fee Impact Fee Inspection TIF District Revenues Taxes $ — $ — $ — $ — $ 498,428 Special assessments 2,428 — — — — Licenses and permits — — — 4,223,073 — Intergovernmental 7,420 — — 171,305 11,592 Charges for services 935,893 724,018 7,741,627 51,300 — Fines and forfeits — — — — — Interest on investments 21,760 180,293 544,486 36,525 — Change in fair market value of investments 14,006 82,048 261,829 16,265 — Interest on loans receivable — — — — — Miscellaneous 30,976 — 2,457 19,125 — Total revenues 1,012,483 986,359 8,550,399 4,517,593 510,021 Expenditures Current General government — — — — — Public safety — 39,241 — 3,967,907 — Public works — — 388,475 — — Public welfare 872,804 — — — — Other — — — — — Capital outlay 56,364 — 3,870,868 37,548 — Debt service Principal — — — 89,867 — Interest and fiscal charges — — — 4,997 — Total expenditures 929,168 39,241 4,259,344 4,100,319 — Excess (Deficiency) of Revenues Over (Under) Expenditures 83,316 947,118 4,291,055 417,274 510,021 Other Financing Sources (Uses) Transfers in — — — — — Transfers out — (3,800,000) — — — Proceeds from Long-Term Debt, net — — — — — Issuance of long-term debt — — — — — Lease proceeds — — — — — Sale of capital assets — — — — — Total other financing sources (uses) — (3,800,000) — — — Net Change in Fund Balances 83,316 (2,852,882) 4,291,055 417,274 510,021 Fund Balance, Beginning of Year, as previously presented 617,190 4,842,733 13,911,165 1,021,673 334,887 Change within financial reporting entity (major to nonmajor) — — — — — Change within financial reporting entity (nonmajor to major) — — — — — Fund Balance, Beginning of Year, as adjusted 617,190 4,842,733 13,911,165 1,021,673 334,887 Fund Balance, End of Year $ 700,506 $ 1,989,851 $ 18,202,220 $ 1,438,947 $ 844,908 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds Year Ended June 30, 2024 127 184 Special Revenue Funds Economic Metropolitan Street Arterial Development Community Planning and Collector Revolving Loans Housing Organization District Revenues Taxes $ — $ 1,415,586 $ — $ — Special assessments — — — 4,424 Licenses and permits — — — — Intergovernmental — 1,607 70 — Charges for services — — — 1,816,473 Fines and forfeits — — — — Interest on investments 271 61,425 — 101,302 Change in fair market value of investments — 45,934 — 80,130 Interest on loans receivable 42,657 — — — Miscellaneous — 89 5,876 1,323,678 Total revenues 42,928 1,524,641 5,946 3,326,007 Expenditures Current General government — — — — Public safety — — — — Public works — — 11,822 14,183 Public welfare 45,492 1,893,653 — — Other — — — — Capital outlay — — — 2,119,189 Debt service Principal — — — — Interest and fiscal charges — — — — Total expenditures 45,492 1,893,653 11,822 2,133,372 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,564) (369,012) (5,876) 1,192,635 Other Financing Sources (Uses) Transfers in — — 5,876 — Transfers out — — — — Proceeds from Long-Term Debt, net — — — — Issuance of long-term debt — — — — Lease proceeds — — — — Sale of capital assets — — — — Total other financing sources (uses) — — 5,876 — Net Change in Fund Balances (2,564) (369,012) — 1,192,635 Fund Balance, Beginning of Year, as previously presented 987,245 2,340,223 — 4,351,213 Change within financial reporting entity (major to nonmajor) — — — — Change within financial reporting entity (nonmajor to major) — — — — Fund Balance, Beginning of Year, as adjusted 987,245 2,340,223 — 4,351,213 Fund Balance, End of Year $ 984,681 $ 1,971,211 $ — $ 5,543,848 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds Year Ended June 30, 2024 128 185 Special Revenue Funds North Northeast Mandeville/ 7th Corridor Urban Renewal Wheat Drive Victim/Witness TIF District TIF District TIF District Advocate Revenues Taxes $ 2,410,651 $ 673,004 $ 38,082 $ — Special assessments — — — — Licenses and permits — — — — Intergovernmental 50,535 1,818 — 798 Charges for services — — — — Fines and forfeits — — — 53,578 Interest on investments 62,473 38,795 6,048 12,103 Change in fair market value of investments 66,230 11,246 2,707 8,269 Interest on loans receivable — — — — Miscellaneous 164 49 — — Total revenues 2,590,054 724,912 46,836 74,748 Expenditures Current General government — — — 57,876 Public safety — — — — Public works — — — — Public welfare 2,152,298 43,766 — — Other — — — — Capital outlay 238,630 40,855 — — Debt service Principal — 43,401 — — Interest and fiscal charges — 48,599 — — Total expenditures 2,390,928 176,621 — 57,876 Excess (Deficiency) of Revenues Over (Under) Expenditures 199,125 548,291 46,836 16,872 Other Financing Sources (Uses) Transfers in — — — — Transfers out (655,127) — — — Proceeds from Long-Term Debt, net — — — — Issuance of long-term debt — — — — Lease proceeds — — — — Sale of capital assets — — — — Total other financing sources (uses) (655,127) — — — Net Change in Fund Balances (456,002) 548,291 46,836 16,872 Fund Balance, Beginning of Year, as previously presented 2,942,927 1,054,670 166,694 345,883 Change within financial reporting entity (major to nonmajor) — — — — Change within financial reporting entity (nonmajor to major) — — — — Fund Balance, Beginning of Year, as adjusted 2,942,927 1,054,670 166,694 345,883 Fund Balance, End of Year $ 2,486,925 $ 1,602,961 $ 213,530 $ 362,755 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds Year Ended June 30, 2024 129 186 Special Revenue Funds Fire Department South Bozeman Parks and Trails Street Equipment TIF District District Lighting Revenues Taxes $ 959,539 $ 47,705 $ — $ — Special assessments — — 15,179 422,024 Licenses and permits — — — — Intergovernmental — — 36,233 — Charges for services — — 6,688,040 — Fines and forfeits — — — — Interest on investments — 2,592 130,931 16,048 Change in fair market value of investments 13,582 (1,506) 47,294 (6,181) Interest on loans receivable — — — — Miscellaneous — — 469,377 — Total revenues 973,122 48,791 7,387,054 431,891 Expenditures Current General government — — — — Public safety 265,183 — — — Public works — — — 494,160 Public welfare — 16,409 5,276,162 — Other — — — — Capital outlay 1,383,271 — 492,191 — Debt service — Principal — — 35,415 — Interest and fiscal charges — — 27,483 — Total expenditures 1,648,454 16,409 5,831,250 494,160 Excess (Deficiency) of Revenues Over (Under) Expenditures (675,333) 32,382 1,555,804 (62,269) Other Financing Sources (Uses) Transfers in — — 33,237 — Transfers out (2,000,000) — — — Proceeds from Long-Term Debt, net — — — — Issuance of long-term debt — — — — Lease proceeds — — — — Sale of capital assets — — — — Total other financing sources (uses) (2,000,000) — 33,237 — Net Change in Fund Balances (2,675,333) 32,382 1,589,041 (62,269) Fund Balance, Beginning of Year, as previously presented 400,068 54,307 3,315,340 504,862 Change within financial reporting entity (major to nonmajor) — — — — Change within financial reporting entity (nonmajor to major) — — — — Fund Balance, Beginning of Year, as adjusted 400,068 54,307 3,315,340 504,862 Fund Balance, End of Year $ (2,275,265) $ 86,689 $ 4,904,381 $ 442,593 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds Year Ended June 30, 2024 130 187 Special Revenue Funds Municipal Downtown Total Nonmajor Court Improvement Special Park Land Restitution District Revenue Funds Revenues Taxes $ — $ — $ 9,195,670 Special assessments — — 444,055 Licenses and permits — — 4,321,830 Intergovernmental — — 4,895,481 Charges for services — — 19,320,598 Fines and forfeits — — 53,578 Interest on investments 87,279 — 1,542,033 Change in fair market value of investments 25,796 — 893,862 Interest on loans receivable — — 42,657 Miscellaneous 807,631 — 2,751,309 Total revenues 920,706 — 43,461,072 Expenditures Current General government — — 3,073,747 Public safety — — 4,728,643 Public works — — 908,640 Public welfare 14,000 — 10,504,586 Other — — — Capital outlay 45,220 — 8,284,137 Debt service Principal 215,000 — 440,795 Interest and fiscal charges 18,719 — 129,309 Total expenditures 292,939 — 28,069,856 Excess (Deficiency) of Revenues Over (Under) Expenditures 627,767 — 15,391,216 Other Financing Sources (Uses) Transfers in 243,877 — 3,069,814 Transfers out — — (14,229,265) Proceeds from Long-Term Debt, net — — — Issuance of long-term debt — — — Lease proceeds — — — Sale of capital assets — — — Total other financing sources (uses) 243,877 — (11,159,451) Net Change in Fund Balances 871,644 — — 4,231,765 Fund Balance, Beginning of Year, as previously presented 1,962,849 105 5,315,195 49,732,258 Change within financial reporting entity (major to nonmajor) — — — 54,789 Change within financial reporting entity (nonmajor to major) — — (5,315,195) (5,315,195) Fund Balance, Beginning of Year, as adjusted 1,962,849 105 — 44,471,852 Fund Balance, End of Year $ 2,834,493 $ 105 $ — $ 48,703,617 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds Year Ended June 30, 2024 131 188 Debt Service Funds Total Nonmajor SID General Obligation Debt Service Revolving Bonds TIF Bonds Funds Revenues Taxes $ — $ 4,039,312 $ — $ 4,039,312 Special assessments — — — — Licenses and permits — — — — Intergovernmental — — — — Charges for services — — — — Fines and forfeits — — — — Interest on investments 1,554 17,436 — 18,990 Change in fair market value of investments 8,471 (136) — 8,335 Interest on loans receivable 9,909 — — 9,909 Miscellaneous — — — — Total revenues 19,933 4,056,612 — 4,076,545 Expenditures Current General government — — — — Public safety — — — — Public works — — — — Public welfare — — — — Other — — — — Capital outlay — — — — Debt service Principal — 2,300,000 458,000 2,758,000 Interest and fiscal charges — 1,659,850 286,081 1,945,931 Total expenditures — 3,959,850 744,081 4,703,931 Excess (Deficiency) of Revenues Over (Under) Expenditures 19,933 96,762 (744,081) (627,386) Other Financing Sources (Uses) Transfers in 992,114 — 744,081 1,736,195 Transfers out — — — — Proceeds from Long-Term Debt, net — — — — Issuance of long-term debt — — — Lease proceeds — — — — Sale of capital assets — — — — Total other financing sources (uses) 992,114 — 744,081 1,736,195 Net Change in Fund Balances 1,012,047 96,762 — 1,108,809 Fund Balance, Beginning of Year, as previously presented 697,208 (290,217) — 406,991 Change within financial reporting entity (major to nonmajor) — — — — Change within financial reporting entity (nonmajor to major) — — — — Fund Balance, Beginning of Year, as adjusted 697,208 (290,217) — 406,991 Fund Balance, End of Year $ 1,709,255 $ (193,455) $ — $ 1,515,800 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds Year Ended June 30, 2024 132 189 Permanent Fund Total Nonmajor Cemetery Governmental Perpetual Care Funds Revenues Taxes $ — $ 13,234,982 Special assessments — 444,055 Licenses and permits — 4,321,830 Intergovernmental — 4,895,481 Charges for services 101,063 19,421,661 Fines and forfeits — 53,578 Interest on investments 63,660 1,624,682 Change in fair market value of investments 32,961 935,158 Interest on loans receivable — 52,566 Miscellaneous — 2,751,309 Total revenues 197,684 47,735,302 Expenditures Current General government — 3,073,747 Public safety — 4,728,643 Public works — 908,640 Public welfare — 10,504,586 Other — — Capital outlay — 8,284,137 Debt service Principal — 3,198,795 Interest and fiscal charges — 2,075,240 Total expenditures — 32,773,787 Excess (Deficiency) of Revenues Over (Under) Expenditures 197,684 14,961,514 Other Financing Sources (Uses) Transfers in — 4,806,008 Transfers out — (14,229,265) Proceeds from Long-Term Debt, net — — Issuance of long-term debt — Lease proceeds — — Sale of capital assets — — Total other financing sources (uses) — (9,423,257) Net Change in Fund Balances 197,684 5,538,258 Fund Balance, Beginning of Year, as previously presented 1,804,399 51,943,648 Change within financial reporting entity (major to nonmajor) — 54,789 Change within financial reporting entity (nonmajor to major) — (5,315,195) Fund Balance, Beginning of Year, as adjusted 1,804,399 46,683,242 Fund Balance, End of Year $ 2,002,083 $ 52,221,500 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds Year Ended June 30, 2024 133 190 Expenditures, and Changes in Fund Balances - Budget and ActualSpecial Revenue Funds Departmental City Planning ARPA Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ 183,300 $ 186,319 $ 3,019 $ 411,400 $ 349,560 $ (61,840) $ — $ 200,000 $ — $ — Special Assessments — — — — — — — — — Licenses and permits — — — 65,700 98,758 33,058 — — — Intergovernmental 183,000 317,579 134,579 188,100 181,212 (6,888) 4,543,500 4,115,310 (428,190) Charges for services — 51,125 51,125 1,406,500 1,312,122 (94,378) — — — Fines and forfeitures — — — — — — — — — Interest on investments 27,800 79,144 51,344 1,700 74,283 72,583 156,700 70,175 (86,525) Change in fair market value of investments — 29,099 29,099 — 5,264 5,264 — 140,751 140,751 Interest on loans receivable — — — — — — — — — Miscellaneous — 13,710 13,710 49,300 78,177 28,877 — — — Total revenues 394,100 676,976 282,876 2,122,700 2,099,376 (23,324) 4,700,200 4,326,237 (373,963) Expenditures Current General government — — — 4,206,100 3,015,871 1,190,229 — — — Public safety 262,800 456,313 (193,513) — — — — — — Public works — — — — — — — — — Public welfare 206,500 190,001 16,499 — — — — — — Other 180,900 — 180,900 — — — — — — Capital outlay — — — 65,000 — 65,000 — — — Debt service — — — — Principal 70,100 34,690 35,411 — 22,422 (22,422) — — — Interest and fiscal charges 55,700 28,208 27,492 — 1,304 (1,304) — — — Total expenditures 776,000 709,211 66,789 4,271,100 3,039,597 1,231,503 — — — Excess (Deficiency) of Revenues over (under) Expenditures (381,900) (32,235) 349,665 (2,148,400) (940,221) 1,208,179 4,700,200 4,326,237 (373,963) Other Financing Sources (Uses) Transfers in 122,200 147,998 25,798 2,754,300 2,638,825 (115,475) — — — Transfers out — — — — — — (4,900,200) (4,115,310) 784,890 Proceeds from Long-Term Debt, net — — — — — — — — — Issuance of long-term debt — — — — — — — — — Lease proceeds — — — — — — — — — Sale of capital assets — — — — — — — — — Total other financing sources (uses) 122,200 147,998 25,798 2,754,300 2,638,825 (115,475) (4,900,200) (4,115,310) 784,890 Net Change in Fund Balance $ (259,700) 115,763 $ 375,463 $ 605,900 1,698,604 $ 1,092,704 $ (200,000) 210,927 $ 410,927 Fund Balance, Beginning of Year 2,311,422 1,368,543 54,789 Fund Balance, End of Year $ 2,427,185 $ 3,067,147 $ 265,716 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 134 191 Special Revenue Funds Health-Medical Insurance Gas Tax Apportionment Tree Maintenance Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ 2,637,700 $ 2,616,796 $ (20,904) $ — $ — $ — $ — $ — $ — Special Assessments — — — — — — 2,000 2,428 428 Licenses and permits — — — — — — — — — Intergovernmental — — — — — — 10,000 7,420 (2,580) Charges for services — — — — — — 934,900 935,893 993 Fines and forfeitures — — — — — — — — — Interest on investments 3,800 11,264 7,464 — 4,833 4,833 8,400 21,760 13,360 Change in fair market value of investments — 31,499 31,499 — 19,602 19,602 — 14,006 14,006 Interest on loans receivable — — — — — — — — — Miscellaneous — — — — — — 10,000 30,976 20,976 Total revenues 2,641,500 2,659,558 18,058 — 24,435 24,435 965,300 1,012,483 47,183 Expenditures Current General government — — — — — — — — — Public safety — — — — — — — — — Public works — — — — — — — — — Public welfare — — — — — — 978,900 872,804 106,096 Other — — — — — — — — — Capital outlay — — — — — — 215,000 56,364 158,636 Debt service — Principal — — — — — — — — — Interest and fiscal charges — — — — — — — — — Total expenditures — — — — — — 1,193,900 929,168 264,732 Excess (Deficiency) of Revenues over (under) Expenditures 2,641,500 2,659,558 18,058 — 24,435 24,435 (228,600) 83,316 311,916 Other Financing Sources (Uses) Transfers in — — — — — — — — — Transfers out (3,775,000) (3,392,870) 382,130 (265,958) (265,958) — — — — Proceeds from Long-Term Debt, net — — — — — — — — — Issuance of long-term debt — — — — — — — Lease proceeds — — — — — — — Sale of capital assets — — — — — — — — — Total other financing sources (uses) (3,775,000) (3,392,870) 382,130 (265,958) (265,958) — — — — Net Change in Fund Balance $ (1,133,500) (733,311) $ 400,189 $ (265,958) (241,523) $ 24,435 $ (228,600) 83,316 $ 311,916 Fund Balance, Beginning of Year 1,341,543 241,523 617,190 Fund Balance, End of Year $ 608,232 $ — $ 700,506 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 135 192 Special Revenue Funds Fire Impact Fee Street Impact Fee Building Inspection Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ — $ — $ — $ — $ — $ — $ — $ — $ — Special Assessments — — — — — — — — — Licenses and permits $ — $ — $ — $ — $ — $ — $ 3,797,000 $ 4,223,073 $ 426,073 Intergovernmental — — — — — — 214,000 171,305 (42,695) Charges for services 558,200 724,018 165,818 6,176,700 7,741,627 1,564,927 28,000 51,300 23,300 Fines and forfeitures — — — — — — — — — Interest on investments 63,100 180,293 117,193 184,500 544,486 359,986 18,300 36,525 18,225 Change in fair market value of investments — 82,048 82,048 — 261,829 261,829 — 16,265 16,265 Interest on loans receivable — — — — — — — — — Miscellaneous — — — 200 2,457 2,257 — 19,125 19,125 Total revenues 621,300 986,359 365,059 6,361,400 8,550,399 2,188,999 4,057,300 4,517,593 460,293 Expenditures Current General government — — — — — — — — — Public safety 27,900 39,241 (11,341) — — — 4,464,300 3,967,907 496,393 Public works — — — 358,800 388,475 (29,675) — — — Public welfare — — — — — — — — — Other — — — — — — — — — Capital outlay 1,500,000 — 1,500,000 8,721,700 3,870,868 4,850,832 115,000 37,548 77,452 Debt service Principal — — — — — — — 89,867 (89,867) Interest and fiscal charges — — — — — — — 4,997 (4,997) Total expenditures 1,527,900 39,241 1,488,659 9,080,500 4,259,344 4,821,156 4,579,300 4,100,319 478,981 Excess (Deficiency) of Revenues over (under) Expenditures (906,600) 947,118 1,853,718 (2,719,100) 4,291,055 7,010,155 (522,000) 417,274 939,274 Other Financing Sources (Uses) Transfers in — — — — — — — — — Transfers out (3,800,000) (3,800,000) — — — — — — — Proceeds from Long-Term Debt, net — — — — — — — — — Issuance of long-term debt — — — — — — Lease proceeds — — — — — — Sale of capital assets — — — — — — — — — Total other financing sources (uses) (3,800,000) (3,800,000) — — — — — — — Net Change in Fund Balance $ (4,706,600) (2,852,882) $ 1,853,718 $ (2,719,100) 4,291,055 $ 7,010,155 $ (522,000) 417,274 $ 939,274 Fund Balance, Beginning of Year 4,842,733 13,911,165 1,021,673 Fund Balance, End of Year $ 1,989,851 $ 18,202,220 $ 1,438,947 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 136 193 Special Revenue Funds Pole Yard TIF District Economic Development Revolving Loans Community Housing Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ 319,500 $ 498,428 $ 178,928 $ — $ — $ — $ 1,389,700 $ 1,415,586 $ 25,886 Special Assessments — — — — — — — — — Licenses and permits — — — — — — — — — Intergovernmental 4,000 11,592 7,592 — — — 2,000 1,607 (393) Charges for services — — — — — — — — — Fines and forfeitures — — — — — — — — — Interest on investments — — — — 271 271 5,600 61,425 55,825 Change in fair market value of investments — — — — — — — 45,934 45,934 Interest on loans receivable — — — — 42,657 42,657 — — — Miscellaneous — — — — — — — 89 89 Total revenues 323,500 510,021 186,521 — 42,928 42,928 1,397,300 1,524,641 127,341 Expenditures Current General government — — — — — — — — — Public safety — — — — — — — — — Public works — — — — — — — — — Public welfare 600,000 — 600,000 — 45,492 (45,492) 3,552,700 1,893,653 1,659,047 Other — — — — — — — — — Capital outlay — — — — — — — — — Debt service Principal — — — — — — — — — Interest and fiscal charges — — — — — — — — — Total expenditures 600,000 — 600,000 — 45,492 (45,492) 3,552,700 1,893,653 1,659,047 Excess (Deficiency) of Revenues over (under) Expenditures (276,500) 510,021 786,521 — (2,564) (2,564) (2,155,400) (369,012) 1,786,388 Other Financing Sources (Uses) Transfers in — — — — — — — — — Transfers out — — — — — — — — — Proceeds from Long-Term Debt, net — — — — — — — — — Issuance of long-term debt — — — — — — Lease proceeds — — — — — — Sale of capital assets — — — — — — — — — Total other financing sources (uses) — — — — — — — — — Net Change in Fund Balance $ (276,500) 510,021 $ 786,521 $ — (2,564) $ (2,564) $ (2,155,400) (369,012) $ 1,786,388 Fund Balance, Beginning of Year 334,887 987,245 2,340,223 Fund Balance, End of Year $ 844,908 $ 984,681 $ 1,971,211 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 137 194 Special Revenue Funds Metropolitan Planning Organization Street Arterial and Collector District North 7th Corridor TIF District Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ — $ — $ — $ — $ — $ — $ 1,999,200 $ 2,410,651 $ 411,451 Special Assessments — — — 3,500 4,424 924 — — — Licenses and permits — — — — — — — — — Intergovernmental — 70 70 — — — 39,500 50,535 11,035 Charges for services — — — 1,779,100 1,816,473 37,373 — — — Fines and forfeitures — — — — — — — — — Interest on investments — — — 56,400 101,302 44,902 28,100 62,473 34,373 Change in fair market value of investments — — — — 80,130 80,130 — 66,230 66,230 Interest on loans receivable — — — — — — — — — Miscellaneous — 5,876 5,876 753,400 1,323,678 570,278 — 164 164 Total revenues — 5,946 5,946 2,592,400 3,326,007 733,607 2,066,800 2,590,054 523,254 Expenditures Current General government — — — — — — — — — Public safety — — — — — — — — — Public works — 11,822 (11,822) 233,100 14,183 218,917 — — — Public welfare — — — — — — 2,165,900 2,152,298 13,602 Other — — — — — — — — — Capital outlay — — — 5,553,100 2,119,189 3,433,911 725,000 238,630 486,370 Debt service Principal — — — — — — — — — Interest and fiscal charges — — — — — — — — — Total expenditures — 11,822 (11,822) 5,786,200 2,133,372 3,652,828 2,890,900 2,390,928 499,972 Excess (Deficiency) of Revenues over (under) Expenditures — (5,876) (5,876) (3,193,800) 1,192,635 4,386,435 (824,100) 199,125 1,023,225 Other Financing Sources (Uses) Transfers in — 5,876 5,876 — — — — — — Transfers out — — — — — — (655,200) (655,127) 73 Proceeds from Long-Term Debt, net — — — — — — — — — Issuance of long-term debt — — — — — — Lease proceeds — — — — — — Sale of capital assets — — — — — — — — — Total other financing sources (uses) — 5,876 5,876 — — — (655,200) (655,127) 73 Net Change in Fund Balance $ — — $ — $ (3,193,800) 1,192,635 $ 4,386,435 $ (1,479,300) (456,002) $ 1,023,298 Fund Balance, Beginning of Year — 4,351,213 2,942,927 Fund Balance, End of Year $ — $ 5,543,848 $ 2,486,925 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 138 195 Special Revenue Funds Northeast Urban Renewal TIF District Mandeville/Wheat Drive TIF District Victim/Witness Advocate Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ 498,700 $ 673,004 $ 174,304 $ 24,700 $ 38,082 $ 13,382 $ — $ — $ — Special Assessments — — — — — — — — — Licenses and permits — — — — — — — — — Intergovernmental 1,300 1,818 518 — — — — 798 798 Charges for services — — — — — — — — — Fines and forfeitures — — — — — — — 53,578 53,578 Interest on investments 11,000 38,795 27,795 2,100 6,048 3,948 5,900 12,103 6,203 Change in fair market value of investments — 11,246 11,246 — 2,707 2,707 — 8,269 8,269 Interest on loans receivable — — — — — — — — — Miscellaneous — 49 49 — — — — — — Total revenues 511,000 724,912 213,912 26,800 46,836 20,036 5,900 74,748 68,848 Expenditures Current General government — — — — — — 105,000 57,876 47,124 Public safety — — — — — — — — — Public works — — — — — — — — — Public welfare 60,500 43,766 16,734 160,200 — 160,200 — — — Other — — — — — — — — — Capital outlay 986,900 40,855 946,045 — — — — — — Debt service Principal 43,500 43,401 99 — — — — — — Interest and fiscal charges 49,500 48,599 901 — — — — — — Total expenditures 1,140,400 176,621 963,779 160,200 — 160,200 105,000 57,876 47,124 Excess (Deficiency) of Revenues over (under) Expenditures (629,400) 548,291 1,177,691 (133,400) 46,836 180,236 (99,100) 16,872 115,972 Other Financing Sources (Uses) Transfers in — — — — — — — — — Transfers out — — — — — — — — — Proceeds from Long-Term Debt, net — — — — — — — — — Issuance of long-term debt — — — — — — Lease proceeds — — — — — — Sale of capital assets — — — — — — — — — Total other financing sources (uses) — — — — — — — — — Net Change in Fund Balance $ (629,400) 548,291 $ 1,177,691 $ (133,400) 46,836 $ 180,236 $ (99,100) 16,872 $ 115,972 Fund Balance, Beginning of Year 1,054,670 166,694 345,883 Fund Balance, End of Year $ 1,602,961 $ 213,530 $ 362,755 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 139 196 Special Revenue Funds Fire Department Equipment South Bozeman TIF District Parks and Trails District Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ 731,000 $ 959,539 $ 228,539 $ 35,700 $ 47,705 $ 12,005 $ — $ — $ — Special Assessments — — — — — — — 15,179 15,179 Licenses and permits — — — — — — — — — Intergovernmental — — — — — — 457,000 36,233 (420,767) Charges for services — — — — — — 6,257,200 6,688,040 430,840 Fines and forfeitures — — — — — — — — — Interest on investments 19,900 — (19,900) 400 2,592 2,192 31,700 130,931 99,231 Change in fair market value of investments — 13,582 13,582 — (1,506) (1,506) — 47,294 47,294 Interest on loans receivable — — — — — — — — — Miscellaneous — — — — — — 10,000 469,377 459,377 Total revenues 750,900 973,122 222,222 36,100 48,791 12,691 6,755,900 7,387,054 631,154 Expenditures Current General government — — — — — — — — — Public safety — 265,183 (265,183) — — — — — — Public works — — — — — — — — — Public welfare — — — 38,000 16,409 21,591 6,202,000 5,276,162 925,838 Other — — — — — — — — — Capital outlay 1,476,100 1,383,271 92,829 — — — 2,820,200 492,191 2,328,009 Debt service Principal — — — — — — — 35,415 (35,415) Interest and fiscal charges — — — — — — — 27,483 (27,483) Total expenditures 1,476,100 1,648,454 (172,354) 38,000 16,409 21,591 9,022,200 5,831,250 3,190,950 Excess (Deficiency) of Revenues over (under) Expenditures (725,200) (675,333) 49,867 (1,900) 32,382 34,282 (2,266,300) 1,555,804 3,822,104 Other Financing Sources (Uses) Transfers in — — — — — — — 33,237 33,237 Transfers out (2,849,800) (2,000,000) 849,800 — — — — — — Proceeds from Long-Term Debt, net 2,437,200 — (2,437,200) — — — 1,385,000 — (1,385,000) Issuance of long-term debt — — — — — — Lease proceeds — — — — — — Sale of capital assets 1,000,000 — (1,000,000) — — — — — — Total other financing sources (uses) 587,400 (2,000,000) (2,587,400) — — — 1,385,000 33,237 (1,351,763) Net Change in Fund Balance $ (137,800) (2,675,333) $ (2,537,533) $ (1,900) 32,382 $ 34,282 $ (881,300) 1,589,041 $ 2,470,341 Fund Balance, Beginning of Year 400,068 54,307 3,315,340 Fund Balance, End of Year $ (2,275,265) $ 86,689 $ 4,904,381 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 140 197 Special Revenue Funds Street Lighting Park Land Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ — $ — $ — $ — $ — $ — Special Assessments 553,400 422,024 (131,376) — — — Licenses and permits — — — — — — Intergovernmental — — — — — — Charges for services — — — — — — Fines and forfeitures — — — — — — Interest on investments 8,000 16,048 8,048 24,700 87,279 62,579 Change in fair market value of investments — (6,181) (6,181) — 25,796 25,796 Interest on loans receivable — — — — — — Miscellaneous — — — 1,096,200 807,631 (288,569) Total revenues 561,400 431,891 (129,509) 1,120,900 920,706 (200,194) Expenditures Current General government — — — — — — Public safety — — — — — — Public works 542,500 494,160 48,340 — — — Public welfare — — — 260,000 14,000 246,000 Other — — — — — — Capital outlay — — — 363,600 45,220 318,380 Debt service — Principal — — — 338,700 215,000 123,700 Interest and fiscal charges — — — — 18,719 (18,719) Total expenditures 542,500 494,160 48,340 962,300 292,939 669,361 Excess (Deficiency) of Revenues over (under) Expenditures 18,900 (62,269) (81,169) 158,600 627,767 469,167 Other Financing Sources (Uses) Transfers in — — — 243,900 243,877 (23) Transfers out — — — — — — Proceeds from Long-Term Debt, net — — — — — — Issuance of long-term debt — — — — — Lease proceeds — — — — — Sale of capital assets — — — — — — Total other financing sources (uses) — — — 243,900 243,877 (23) Net Change in Fund Balance $ 18,900 (62,269) $ (81,169) $ 402,500 871,644 $ 469,144 Fund Balance, Beginning of Year 504,862 1,962,849 Fund Balance, End of Year $ 442,593 $ 2,834,493 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 141 198 Special Revenue Funds Municipal Court Restitution Total Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ — $ — $ — $ 8,230,900 $ 9,195,670 $ 964,770 Special Assessments — — — 558,900 444,055 (114,845) Licenses and permits — — — 3,862,700 4,321,830 459,130 Intergovernmental — — — 5,642,400 4,895,481 (746,919) Charges for services — — — 17,140,600 19,320,598 2,179,998 Fines and forfeitures — — — — 53,578 53,578 Interest on investments — — — 658,100 1,542,033 883,933 Change in fair market value of investments — — — — 893,862 893,862 Interest on loans receivable — — — — 42,657 42,657 Miscellaneous — — — 1,919,100 2,751,309 832,209 Total revenues — — — 38,012,700 43,461,073 5,448,373 Expenditures Current General government — — — 4,311,100 3,073,747 1,237,353 Public safety — — — 4,755,000 4,728,643 26,357 Public works — — — 1,134,400 908,640 225,760 Public welfare — — — 14,224,700 10,504,586 3,720,114 Other — — — 180,900 — 180,900 Capital outlay — — — 22,541,600 8,284,137 14,257,463 Debt service Principal — — — 452,300 440,795 11,505 Interest and fiscal charges — — — 105,200 129,309 (24,109) — Total expenditures — — — 47,705,200 28,069,856 19,635,344 Excess (Deficiency) of Revenues over (under) Expenditures — — — (9,692,500) 15,391,216 25,083,716 Other Financing Sources (Uses) Transfers in — — — 3,120,400 3,069,814 (50,586) Transfers out — — — (16,246,158) (14,229,265) 2,016,893 Proceeds from Long-Term Debt, net — — — 3,822,200 — (3,822,200) Issuance of long-term debt — — — — — — Lease proceeds — — — — — — Sale of capital assets — — — 1,000,000 — (1,000,000) Total other financing sources (uses) — — — (8,303,558) (11,159,451) (2,855,893) Net Change in Fund Balance $ — — $ — $ (17,996,058) 4,231,765 $ 22,227,823 Fund Balance, Beginning of Year 105 44,471,852 Fund Balance, End of Year $ 105 $ 48,703,617 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 142 199 Debt Service Funds SID Revolving General Obligation Bonds TIF Bonds Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ — $ — $ — $ 3,993,700 $ 4,039,312 $ 45,612 $ — $ — $ — Special Assessments — — — — — — — — — Licenses and permits — — — — — — — — — Intergovernmental — — — — — — — — — Charges for services — — — — — — — — — Fines and forfeitures — — — — — — — — — Interest on investments 8,400 1,554 (6,846) 1,900 17,436 15,536 — — — Change in fair market value of investments — 8,471 8,471 — (136) (136) — — — Interest on loans receivable — 9,909 9,909 — — — — — — Miscellaneous — — — — — — — — — Total revenues 8,400 19,933 11,533 3,995,600 4,056,612 61,012 — — — Expenditures Current General government — — — — — — — — — Public safety — — — — — — — — — Public works — — — — — — — — — Public welfare — — — — — — — — — Other — — — — — — — — — Capital outlay — — — — — — — — — Debt service Principal — — — 2,589,600 2,300,000 289,600 458,000 458,000 — Interest and fiscal charges — — — 1,371,300 1,659,850 (288,550) 286,100 286,081 19 Total expenditures — — — 3,960,900 3,959,850 1,050 744,100 744,081 19 Excess (Deficiency) of Revenues over (under) Expenditures 8,400 19,933 11,533 34,700 96,762 62,062 (744,100) (744,081) 19 Other Financing Sources (Uses) Transfers in — 992,114 992,114 — — — 744,100 744,081 (19) Transfers out (27,100) — 27,100 (130,000) — 130,000 — — — Proceeds from Long-Term Debt, net — — — — — — — — — Issuance of long-term debt — — — — — — — Lease proceeds — — — — — — — — Sale of capital assets — — — — — — — — — Total other financing sources (uses) (27,100) 992,114 1,019,214 (130,000) — 130,000 744,100 744,081 (19) Net Change in Fund Balance $ (18,700) 1,012,047 $ 1,030,747 $ (95,300) 96,762 $ 192,062 $ — — $ — Fund Balance, Beginning of Year 697,208 (290,217) — Fund Balance, End of Year $ 1,709,255 $ (193,455) $ — City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 143 200 Debt Service Funds Permanent Fund Total Cemetery Perpetual Care Total Final Actual Variance with Final Actual Variance with Final Actual Variance with Budget Amounts Final Budget Budget Amounts Final Budget Budget Amounts Final Budget Revenues Taxes $ 3,993,700 $ 4,039,312 $ 45,612 $ — $ — $ — $ 12,224,600 $ 13,234,982 $ 1,010,382 Special Assessments — — — — — — 558,900 444,055 (114,845) Licenses and permits — — — — — — 3,862,700 4,321,830 459,130 Intergovernmental — — — — — — 5,642,400 4,895,481 (746,919) Charges for services — — — 62,300 101,063 38,763 17,202,900 19,421,661 2,218,761 Fines and forfeitures — — — — — — — 53,578 53,578 Interest on investments 10,300 18,990 8,690 24,400 63,660 39,260 692,800 1,624,682 931,882 Change in fair market value of investments — 8,335 8,335 — 32,961 32,961 — 935,158 935,158 Interest on loans receivable — 9,909 9,909 — — — — 52,566 52,566 Miscellaneous — — — — — — 1,919,100 2,751,309 832,209 Total revenues 4,004,000 4,076,545 72,545 86,700 197,684 110,984 42,103,400 47,735,302 5,631,902 Expenditures Current General government — — — — — — 4,311,100 3,073,747 1,237,353 Public safety — — — — — — 4,755,000 4,728,643 26,357 Public works — — — — — — 1,134,400 908,640 225,760 Public welfare — — — — — — 14,224,700 10,504,586 3,720,114 Other — — — — — — 180,900 — 180,900 Capital outlay — — — — — — 22,541,600 8,284,137 14,257,463 Debt service — — Principal 3,047,600 2,758,000 289,600 — — — 3,499,900 3,198,795 301,105 Interest and fiscal charges 1,657,400 1,945,931 (288,531) — — — 1,762,600 2,075,240 (312,640) Total expenditures 4,705,000 4,703,931 1,069 — — — 52,410,200 32,773,787 19,636,413 Excess (Deficiency) of Revenues over (under) Expenditures (701,000) (627,386) 73,614 86,700 197,684 110,984 (10,306,800) 14,961,515 25,268,315 Other Financing Sources (Uses) Transfers in 744,100 1,736,195 992,095 — — — 3,864,500 4,806,008 941,508 Transfers out (157,100) — 157,100 — — — (16,403,258) (14,229,265) 2,173,993 Proceeds from Long-Term Debt, net — — — — — — 3,822,200 — (3,822,200) Issuance of long-term debt — — — — — — — Lease proceeds — — — — — — — — Sale of capital assets — — — — — — 1,000,000 — (1,000,000) Total other financing sources (uses) 587,000 1,736,195 1,149,195 — — — (7,716,558) (9,423,257) (1,706,699) Net Change in Fund Balance $ (114,000) 1,108,809 $ 1,222,809 $ 86,700 197,684 $ 110,984 $ (18,023,358) 5,538,258 $ 23,561,616 Fund Balance, Beginning of Year 406,991 1,804,399 46,683,242 Fund Balance, End of Year $ 1,515,800 $ 2,002,083 $ 52,221,500 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualNonmajor Governmental Funds Year Ended June 30, 2024 144 201 Nonmajor Enterprise FundsDescription of Nonmajor Funds The enterprise funds account for the operations that are financed and operated in a manner similar to private business enterprises where the intent of the City is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges, or where the City has decided that periodic determination of the revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or for other purposes. The City operates the following nonmajor enterprise 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. 145 202 Combining Balance Sheet Parking Storm Water TotalAssets Current Assets Cash and cash investments $ 1,217,151 $ 2,052,684 $ 3,269,836 Receivables (net of allowance for uncollectibles): Interest 7,459 8,592 16,051 Accounts — 187,858 187,858 Special assessments — 699 699 Total current assets 1,224,610 2,249,833 3,474,443 Noncurrent Assets Restricted assets Cash and investments 722,269 58,288 780,557 Capital Assets Land 303,436 — 303,436 Construction in progress — 311,576 311,576 Buildings 11,971,077 24,215 11,995,291 Machinery and equipment 561,843 757,188 1,319,031 Vehicles 203,079 197,137 400,216 Infrastructure 47,058 9,681,525 9,728,583 Less accumulated depreciation/amortization (6,347,739) (1,598,203) (7,945,943) Total capital assets, net of accumulated depreciation/amortization 6,738,753 9,373,438 16,112,190 Total noncurrent assets 7,461,022 9,431,726 16,892,747 Total assets 8,685,632 11,681,559 20,367,190 Deferred Outflows of Resources OPEB 10,695 9,783 20,478 Pensions 84,244 159,604 243,848 Total deferred outflows of resources 94,939 169,387 264,326 Liabilities Current Liabilities Accounts payable 71,840 38,533 110,373 Current portion of long-term debt 26,137 146,847 172,984 Current Debt/Bonds — 89,000 89,000 Compensated absences payable 14,928 64,974 79,902 Total current liabilities 97,977 185,380 283,357 Noncurrent Liabilities Long-term debt, net of current portion Bonds payable — 1,020,000 1,020,000 Compensated absences (11,209) 7,127 (4,082) Compensated absences payable 14,928 64,974 79,901 Total OPEB liability 60,008 41,438 101,446 Net pension liability 317,674 601,848 919,522 Total noncurrent liabilities 366,473 1,670,413 2,036,886 Total liabilities 464,450 1,855,794 2,320,244 Deferred Inflows of Resources OPEB Plans 13,080 7,665 20,745 Pension plans 11,331 21,466 32,797 Total deferred inflows of resources 24,411 29,132 53,542 Net Position Net investment in capital assets 6,738,753 8,303,924 15,042,677 Restricted for: Parking capital projects 722,269 722,269 Unrestricted 830,688 1,662,096 2,492,784 Total net position $ 8,291,710 $ 9,966,020 $ 18,257,730 City of Bozeman, MontanaCombining Statement of Net PositionNonmajor Enterprise Funds Year Ended June 30, 2024 146 203 Combining Statement of Revenues, Expenditures, and Changes in Net Position Parking Storm Water Total Operating Revenues Charges for services $ 1,214,125 $ 2,023,962 $ 3,238,087 Operating Expenses Salaries and benefits 456,131 903,913 1,360,044 Materials and supplies 39,187 23,738 62,925 Repairs and maintenance 60,349 28,599 88,948 Utilities 44,528 5,543 50,072 Administrative charges 132,818 482,941 615,759 Other services 481,938 135,467 617,405 Depreciation/amortization 372,923 238,285 611,207 Change in estimated closure and post-closure care costs — — — Total operating expenses 1,587,874 1,818,486 3,406,360 Operating Income (Loss) (373,749) 205,476 (168,273) Nonoperating Revenues (Expenses) Loss on disposal of assets (10,267) — (10,267) Interest income 61,524 69,755 131,279 Net increase in fair market value of investments 40,163 35,451 75,613 Interest expense and bond fees — (29,363) (29,363) Intergovernmental revenues 6,644 12,588 19,232 Impact fees — — — Lease income — — — Miscellaneous revenue 8,354 13,020 21,375 Total nonoperating revenues (expenses) 106,418 101,451 207,869 Income (Loss) before Contributions and Transfers (267,331) 306,928 39,597 Transfers in — — — Transfers out — (46,636) (46,636) Capital contributions from other governments — 724,167 724,167 Change in Net Position (267,331) 984,458 717,127 Total Net Position, Beginning of Year 8,559,041 8,981,562 17,540,603 Total Net Position, End of Year $ 8,291,710 $ 9,966,020 $ 18,257,730 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Net PositionNonmajor Enterprise Funds Year Ended June 30, 2024 147 204 Combining Statement of Cash Flows Parking Storm Water Total Operating Activities Receipts from customers and users $ 1,215,729 $ 2,019,102 $ 3,234,831 Other operating cash receipts 8,354 13,020 21,375 Payments to suppliers (634,665) (206,349) (841,014) Payments to and on behalf of employees (456,951) (844,603) (1,301,554) Payments to internal service funds and administration (132,818) (482,941) (615,759) Net Cash from (Used for) Operating Activities (351) 498,229 497,879 Noncapital Financing Activities Transfers to other funds — (46,636) (46,636) Intergovernmental operating grants 6,644 12,588 19,232 Net Cash from Noncapital Financing Activities 6,644 (34,048) (27,404) Capital and Related Financing Activities Acquisition of capital assets (108,886) (264,667) (373,553) Debt service Principal — (87,000) (87,000) Interest — (29,363) (29,363) Net Cash Used for Capital and Related Financing Activities (108,886) (381,030) (489,916) Investing Activity Interest and dividends from investments 99,448 101,805 201,252 Change in cash and investments (3,145) 184,956 181,811 Cash and investments, beginning of year 1,942,565 1,926,016 3,868,581 Cash and investments, end of year $ 1,939,420 $ 2,110,972 $ 4,050,392 Reconciliation of Operating Loss to Net Cash from (Used for) Operating Activities Operating income (loss)$ (373,749) $ 205,476 $ (168,272) Adjustments to reconcile operating income (loss) to net cash from (used for) operating activities Depreciation/amortization 372,923 238,285 611,207 Other operating cash receipts 8,354 13,020 21,375 Changes in assets and liabilities Accounts receivable 1,604 (4,227) (2,623) Special assessments receivable — (633) (633) Pension related deferred outflows (24,918) (59,375) (84,293) OPEB related deferred outflows 1,658 5,004 6,662 Vouchers payable (8,662) (13,002) (21,664) Compensated absences (1,508) 5,334 3,824 Net pension liability 33,138 121,137 154,275 Total OPEB liability 1,742 5,259 7,001 Pension related deferred inflows (9,500) (13,726) (23,226) OPEB related deferred inflows (1,432) (4,323) (5,755) Net cash from (used for) operating activities $ (350) $ 498,229 $ 497,879 Supplemental Schedule of Noncash Acquisition of capital assets through capital contributions and donations $ — $ 724,167 $ 724,167 City of Bozeman, MontanaCombining Statement of Cash FlowsNonmajor Enterprise Funds Year Ended June 30, 2024 148 205 Internal Service FundsDescription of 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. The City operates the following internal service funds: 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. City of Bozeman, MontanaDescription of Internal Service FundsInternal Service Funds Year Ended June 30, 2024 149 206 Combining Balance Sheet Vehicle Maintenance Shop Medical Health Insurance Public Works Administration Total Assets Current Assets Cash and investments $ 106,447 $ — $ 2,956,012 $ 3,062,459 Receivables (net of allowance for uncollectibles): Interest 409 — 11,077 11,486 Accounts 3,241 23,502 — 26,742 Prepaid items — 566,218 — 566,218 Other assets — — 8,657 8,657 Total current assets 110,097 589,719 2,975,747 3,675,562 Noncurrent Assets Capital Assets Buildings 1,424,215 — 121,905 1,546,120 Machinery and equipment 255,469 — 528,721 784,189 Vehicles 88,980 — 142,487 231,467 Infrastructure — — 29,314 29,314 Right-of-use lease assets — — 423,122 423,122 Less accumulated depreciation/amortization (945,696) — (727,039) (1,672,735) Total capital assets, net of accumulated depreciation/amortization 822,967 — 518,510 1,341,477 Total noncurrent assets 822,967 — 518,510 1,341,477 Total assets 933,064 589,719 3,494,256 5,017,039 Deferred Outflows of Resources Other postemployment benefits 12,696 — 27,534 40,230 Pension plans 182,459 — 753,402 935,861 Total deferred outflows of resources 195,155 — 780,936 976,091 City of Bozeman, MontanaCombining Balance SheetInternal Service Funds Year Ended June 30, 2024 150 207 Vehicle Maintenance Shop Medical Health Insurance Public Works Administration Total Liabilities Current Liabilities Accounts payable 108,877 398 268,180 377,455 Due to other funds — 4,044 — 4,044 Accrued interest payable — — 1,103 1,103 Current portion of long-term debt 40,893 — 312,768 353,661 Current Debt/Bonds — — 86,108 86,108 Total current liabilities 149,770 4,442 582,051 736,263 Noncurrent Liabilities Long-term debt, net of current portion Leases payable — — 194,363 194,363 Compensated absences 2,913 — 79,683 82,596 Total OPEB liability 70,299 — 217,408 287,707 Net pension liability 688,031 — 2,840,989 3,529,020 Total noncurrent liabilities 761,243 — 3,332,443 4,093,686 Total liabilities 911,013 4,442 3,914,494 4,829,949 Deferred Inflows of Resources Other postemployment benefits 12,405 — 48,756 61,161 Pension plans 24,540 — 101,331 125,871 Total deferred inflows of resources 36,945 — 150,087 187,032 Net Position Net investment in capital assets 822,967 — 238,039 1,061,006 Unrestricted (642,707) 585,277 (27,428) (84,858) Total net position $ 180,260 $ 585,277 $ 210,611 $ 976,148 City of Bozeman, MontanaCombining Balance SheetInternal Service Funds Year Ended June 30, 2024 151 208 Combining Statement of Revenues, Expenditures, and Changes in Net Position Vehicle Maintenance Shop Medical Health Insurance Public Works Administration Total Operating Revenues Charges for services $ 3,627,068 $ 6,639,354 $ 5,505,445 15,771,867 Operating Expenses Salaries and benefits 1,072,126 — 4,682,970 5,755,094 Materials and supplies 1,210,070 — 29,344 1,239,414 Repairs and maintenance 20,443 — 2,416 22,860 Utilities 30,915 — 10,063 40,978 Administrative charges 275,514 — 702,921 978,434 Other services 59,106 6,585,647 1,157,427 7,802,179 Depreciation/amortization 72,499 — 171,572 244,071 Total operating expenses 2,740,672 6,585,647 6,756,713 16,083,031 Operating Income (Loss) 886,395 53,707 (1,251,267) (311,164) Nonoperating Revenues (Expenses) Gain (loss) on disposal of assets — — 8,132 8,132 Interest income (10,080) (513) 88,573 77,979 Net (decrease) increase in fair market value of (1,561) — 83,687 82,126 investments Interest expense and bond fees — — (16,302) (16,302) Intergovernmental revenues 14,390 — 69,419 83,809 Miscellaneous revenue 14,800 10,852 13,222 38,874 Total nonoperating revenues (expenses) 17,549 10,339 246,732 274,620 Income (Loss) before Contributions and Transfers 903,945 64,046 (1,004,535) (36,544) Transfers in — — 93,272 93,272 Change in Net Position 903,945 64,046 (911,263) 56,728 Total Net Position, Beginning of Year (723,685) 521,231 1,121,874 919,420 Total Net Position (Deficit), End of Year $ 180,260 $ 585,277 $ 210,611 $ 976,148 City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Net PositionInternal Service Funds Year Ended June 30, 2024 152 209 Combining Statement of Cash Flows Vehicle Maintenance Shop Medical Health Insurance Public Works Administration Total Operating Activities Receipts from customers and users $ 3,625,739 $ 6,631,519 $ 5,505,445 $ 15,762,703 Other operating cash receipts 14,800 10,852 13,222 38,874 Payments to suppliers (1,385,567) (6,625,938) (1,146,005) (9,157,510) Payments to and on behalf of employees (956,252) — (4,071,664) (5,027,916) Payments to internal service funds and administration (275,514) — (702,921) (978,435) Net Cash from (Used for) Operating Activities 1,023,206 16,433 (401,923) 637,716 Noncapital Financing Activities Transfers from other funds — — 93,272 93,272 Intergovernmental operating grants 14,390 — 69,419 83,809 Net Cash from Noncapital Financing Activities 14,390 — 162,691 177,081 Capital and Related Financing Activities Payments received on advances to other funds (880,942) (15,920) — (896,862) Acquisition of capital assets (38,154) — — (38,154) Debt service Principal — — (100,695) (100,695) Interest — — (17,351) (17,351) Net Cash Used for Capital and Related Financing Activities (919,096) (15,920) (118,046) (1,053,062) Investing Activity Interest and dividends from investments (12,051) (513) 170,765 158,201 Change in cash and investments 106,450 — (186,513) (80,063) Cash and investments, beginning of year — — 3,142,522 3,142,522 Cash and investments, end of year $ 106,452 $ — $ 2,956,012 $ 3,062,459 Reconciliation of Operating Loss to Net Cash (Used for) from Operating Activities Operating income (loss)$ 886,395 $ 53,707 $ (1,251,267) $ (311,164) Adjustments to reconcile operating loss to net cash from (used for) operating activities Depreciation/amortization 72,499 — 171,572 244,071 Other operating cash receipts 14,800 10,852 13,222 38,874 Changes in assets and liabilities Accounts receivable (1,329) (7,835) — (9,163) Prepaid expenses — (40,265) — (40,265) Pension related deferred outflows (75,027) — (364,840) (439,867) OPEB related deferred outflows 5,317 — 18,922 24,239 Vouchers payable (65,038) (26) 53,245 (11,819) Compensated absences 5,324 — (32,929) (27,605) Net pension liability 201,228 — 916,793 1,118,021 Total OPEB liability 5,588 — 19,885 25,473 Pension related deferred inflows (21,963) — 69,821 47,858 OPEB related deferred inflows (4,593) — (16,346) (20,939) Net cash from (used for) operating activities $ 1,023,203 $ 16,433 $ (401,923) $ 637,716 City of Bozeman, MontanaCombining Statement of Cash FlowsInternal Service Funds Year Ended June 30, 2024 153 210 Custodial FundsDescription of Custodial Funds Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. 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. The City has the following custodial funds: Municipal Court Trust Fund – Accounts for monies held for appearance bonds and restitution to criminal arrests and reimbursement for damage caused. 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. 154 211 Combining Statement of Fiduciary Net Position Tourism Business Municipal Improvement Court District Total Assets Cash and Investments $ 398,794 $ 50,170 $ 448,964 Receivables (net of allowance for uncollectibles): Customers receivables, net 2,892 — 2,892 Total assets 401,686 50,170 451,856 Liabilities Accounts Payable 404,107 — 404,107 Net Position Restricted for Other organization or individuals $ (2,421) $ 50,170 $ 47,749 City of Bozeman, MontanaCombining Statement of Fiduciary Net PositionCustodial Funds Year Ended June 30, 2024 155212 Combining Statement of Changes in Fiduciary Net PositionTourism Business Municipal Improvement Court District Total Additions Miscellaneous $ — $ — $ — Deductions 30 — 30 Change in Net Position (30) — (30) Net Position, Beginning (2,391) 50,170 47,779 Net Position, Ending $ (2,421) $ 50,170 $ 47,749 City of Bozeman, MontanaCombining Statement of Changes in Fiduciary Net PositionCustodial Funds Year Ended June 30, 2024 156213 Statistical SectionYear Ended June 30, 2024City of Bozeman, Montana 157 214 Introduction to 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, and required supplementary information says about the City's overall financial health. Financial Trends – These schedules contain trend information to help the reader understand and assess how the government’s financial position has changed over time. Components of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160 Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .161 Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164 Changes in Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165 Revenue Capacity – These schedules contain information to assist the reader in understanding and assessing the factors affecting the government’s ability to generate its own-source revenues. Assessed Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167 City Taxable Market and Taxable Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168 Tax Increment District Taxable Valuation Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169 Downtown Bozeman Improvement District & Comparison to City Taxable Value . . . . . . . . . . . . . . . . . . . . . . . . . .172 Property Tax Levies for Tax Increment/Urban Renewal Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173 Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .174 Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175 Principal Property Taxpayers in Downtown Bozeman Improvement District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176 Properties in the Bozeman Midtown Urban Renewal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177 Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District . . . . . . . . . . . . . . . . . . . . .178 Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179 Water Sold by Type of Customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180 Water and Sewer Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181 City of Bozeman, Montana Introduction to Statistical Section Year Ended June 30, 2024 215 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. Ratios of Outstanding Debt by Type ...............................................................................................................................182 Ratios of General Bonded Debt Outstanding ..................................................................................................................183 Ratios of General Bonded Debt Outstanding ..................................................................................................................184 Legal Debt Margin Information .......................................................................................................................................185 Pledged Revenue Coverage – Governmental Activities ..................................................................................................186 Pledged Revenue Coverage – Business-Type Activities ..................................................................................................187 Debt Service Requirements and Coverage for Tax Increment Districts ..........................................................................188 Summary of Outstanding SIDs .........................................................................................................................................189 Revolving Fund Balance and Bond Secured Thereby ......................................................................................................190 Special Improvement District Assessment Billing and Collections..................................................................................191 Demographic and Economic Information – These schedules offer demographic and economic information to (1) assist the reader in understanding the socioeconomic environment within which a government operates and (2) provide information that facilitates comparisons of financial statement information over time and among governments. Demographic and Economic Statistics ..................................................................................................................................192 Principal Employers ...............................................................................................................................................................193 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. Full-Time Equivalent City Government Employees by Function/Program ............................................................................194 Operating Indicators by Function/Program ..........................................................................................................................195 Capital Assets Statistics by Function/Program ......................................................................................................................196 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. City of Bozeman, Montana Introduction to Statistical Section Year Ended June 30, 2024 159 216 Financial TrendsComponents of Net Position Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Governmental Activities Net investment in capital assets $ 93,409,850 $ 104,342,191 $ 115,696,956 $ 137,058,945 $ 155,191,911 $ 118,577,368 $ 196,931,242 $ 217,241,690 $ 236,885,005 $ 259,727,878 Restricted 41,755,126 42,829,320 41,583,992 36,522,195 21,202,050 69,208,376 68,458,112 55,321,501 46,965,688 69,617,937 Unrestricted (5,137,642) (3,923,466) (4,839,467) (5,514,909) 4,799,426 27,280,681 (31,383,436) (15,708,281) 7,527,542 3,658,281 Total Governmental Activities Net Position 130,027,334 143,248,045 152,441,481 168,066,231 181,193,387 215,066,425 234,005,918 256,854,910 291,378,235 333,004,096 Business-Type Activities Net investment in capital assets 211,419,777 221,385,655 229,372,281 239,254,236 245,190,586 260,124,896 271,812,360 286,461,913 297,691,119 308,955,362 Restricted 4,977,984 4,990,635 8,866,951 13,070,517 12,671,931 12,307,565 14,839,596 29,337,941 31,659,041 45,687,628 Unrestricted 6,619,399 10,582,408 9,154,014 12,923,470 21,053,523 25,801,918 23,152,084 14,910,714 15,428,360 5,707,868 Total Business-Type Activities Net Position 223,017,160 236,958,698 247,393,246 265,248,223 278,916,040 298,234,379 309,804,040 330,710,568 344,778,520 360,350,858 Primary Government Net investment in capital assets 304,829,627 325,727,846 345,069,237 376,313,181 400,382,497 378,702,264 468,743,602 503,703,603 534,576,124 568,683,240 Restricted 46,733,110 47,819,955 50,450,943 49,592,712 33,873,981 81,515,941 83,297,708 84,659,442 78,624,729 115,305,565 Unrestricted 1,481,757 6,658,942 4,314,547 7,408,561 25,852,949 53,082,599 (8,231,352) (797,567) 22,955,902 9,366,149 Total Primary Government Net Position $ 353,044,494 $ 380,206,743 $ 399,834,727 $ 433,314,454 $ 460,109,427 $ 513,300,804 $ 543,809,958 $ 587,565,478 $ 636,156,755 $ 693,354,954 City of Bozeman, MontanaComponents of Net Position Last Ten Fiscal Years(Accrual Basis of Accounting) 160 217 Changes in Net Position Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Expenses Governmental Activities General government $ 7,417,644 $ 8,058,925 $ 9,415,702 $ 9,896,366 $ 10,310,075 $ 9,854,245 $ 11,517,404 $ 12,352,494 $ 17,726,413 $ 21,008,788 Public safety 17,023,578 18,391,357 17,689,004 18,637,422 19,699,377 20,664,687 22,698,030 22,442,450 28,002,592 29,522,432 Public works 6,458,930 6,861,939 7,857,917 8,615,272 9,850,802 9,781,345 11,018,661 12,176,141 14,646,742 14,780,608 Public health and welfare 7,579,653 7,994,697 9,210,264 9,476,010 9,658,817 10,354,632 13,429,890 16,211,729 15,343,285 20,213,912 Interest and fiscal charges 824,266 893,470 771,714 781,255 786,236 1,763,155 2,105,985 2,051,119 2,070,117 1,963,485 Total governmental activities expenses 39,304,071 42,200,388 44,944,601 47,406,325 50,305,307 52,418,064 60,769,970 65,233,933 77,789,149 87,489,225 Business-Type Activities Water 6,869,870 7,995,910 9,273,395 9,740,629 9,832,508 9,984,114 9,807,970 10,687,976 13,882,728 15,227,618 Waste water 8,955,592 6,940,983 8,163,312 8,590,477 8,548,138 9,291,509 9,209,689 10,209,279 11,979,470 13,276,495 Solid waste 6,958,209 3,308,441 4,570,884 4,262,650 4,535,865 4,739,710 4,665,613 4,991,829 7,980,984 6,835,328 Parking 805,274 789,186 830,869 897,278 1,133,777 1,119,466 1,304,465 1,183,693 1,565,405 1,598,141 Stormwater 161,180 309,585 469,743 930,444 878,173 924,282 1,051,497 985,732 1,711,451 1,847,848 Total business-type activities expenses 23,750,125 19,344,105 23,308,203 24,421,478 24,928,461 26,059,081 26,039,234 28,058,509 37,120,038 38,785,430 Total Primary Government Expenses $ 63,054,196 $ 61,544,493 $ 68,252,804 $ 71,827,803 $ 75,233,768 $ 78,477,145 $ 86,809,204 $ 93,292,442 $ 114,909,187 $ 126,274,656 City of Bozeman, Montana Changes in Net Position Last Ten Fiscal Years(Accrual Basis of Accounting) 161 218 Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Program Revenues Governmental Activities e s Charges for services General government $ 1,947,445 $ 2,530,474 $ 2,683,016 $ 3,139,427 $ 3,777,184 $ 3,546,689 $ 4,380,033 $ 5,472,678 $ 7,128,575 $ 8,453,622 Public safety 3,211,911 3,347,859 3,175,257 2,234,994 4,158,560 4,020,453 4,260,366 4,317,541 4,942,022 6,333,264 Public works 8,784,447 9,310,147 10,342,921 15,531,304 12,189,258 16,522,229 18,836,107 19,176,512 22,563,519 26,135,750 Public health and welfare 1,097,845 1,213,526 1,414,394 1,593,025 1,724,864 1,567,557 5,294,909 6,833,910 1,687,204 1,254,034 Operating grants and contributions 2,254,052 2,494,244 2,715,986 3,021,400 5,419,871 7,622,415 12,156,812 7,707,580 12,843,761 13,255,074 Capital grants and contributions 2,960,051 5,018,559 2,667,352 7,651,008 6,593,221 15,429,642 4,518,830 12,153,695 14,514,120 14,726,239 Total governmental activities program revenues 20,255,751 23,914,809 22,998,926 33,171,158 33,862,958 48,708,985 49,447,057 55,661,916 63,679,201 70,157,983 Business-Type Activities Charges for services Water 9,969,058 11,935,016 11,166,944 12,915,454 11,438,495 11,913,879 13,970,784 15,431,185 14,886,895 17,180,977 Waste water 9,008,247 9,283,600 9,668,524 10,686,506 10,445,185 10,671,361 11,691,165 12,684,974 12,343,552 14,693,222 Solid waste 2,953,414 2,617,243 3,613,721 3,926,123 4,228,099 4,631,523 4,969,868 5,431,005 5,872,630 6,655,306 Parking 576,357 597,238 878,458 958,378 958,504 1,028,036 1,005,788 1,062,010 968,042 1,214,125 Stormwater 304,906 943,621 1,293,941 1,324,461 1,349,678 1,429,449 1,519,994 1,673,866 1,883,096 2,023,962 Operating grants and contributions 123,439 134,946 169,509 134,523 83,264 104,868 243,536 1,511,436 1,435,529 1,677,660 Capital grants and contributions 6,385,418 11,287,654 7,774,707 9,944,719 8,324,760 13,312,504 5,427,166 13,064,462 11,084,423 7,079,665 Total business-type activities program revenues 29,320,839 36,799,318 34,565,804 39,890,164 36,827,985 43,091,620 38,828,301 50,858,938 48,474,167 50,524,917 Total Primary Government Program Revenues $ 49,576,590 $ 60,714,127 $ 57,564,730 $ 73,061,322 $ 70,690,943 $ 91,800,605 $ 88,275,358 $ 106,520,854 $ 112,153,368 $ 120,682,900 Net Revenue (Expense) Governmental Activities $ (19,048,320) $ (18,285,579) $ (21,945,675) $ (14,235,167) $ (16,442,349) $ (3,709,079) $ (11,322,913) $ (9,572,017) $ (14,109,948) $ (17,331,242) Business-Type Activities 5,570,714 17,455,213 11,257,601 15,468,686 11,899,524 17,032,539 12,789,067 22,800,429 11,354,129 11,739,487 Total Primary Government Net Revenue (Expense)$ (13,477,606) $ (830,366) $ (10,688,074) $ 1,233,519 $ (4,542,825) $ 13,323,460 $ 1,466,154 $ 13,228,412 $ (2,755,819) $ (5,591,756) City of Bozeman, MontanaChanges in Net Position (Continued) Last Ten Fiscal Years(Accrual Basis of Accounting) 162 219 Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024General Revenues and Other Changes in Net Position Governmental Activities Property taxes $ 20,203,718 $ 21,234,288 $ 21,708,812 $ 22,532,724 $ 23,823,994 $ 28,308,301 $ 27,115,391 $ 29,432,001 $ 39,860,197 $ 45,454,899 Unrestricted intergovernmental 7,699,711 7,992,180 8,372,625 6,171,297 4,658,177 4,859,238 4,956,187 5,099,529 5,370,015 5,717,540 Unrestricted investment earnings (losses) 403,152 519,637 554,870 64,058 1,490,286 1,604,365 428,653 (1,685,354) 1,118,619 4,448,723 Miscellaneous 374,966 418,215 1,317,137 2,320,536 1,009,437 1,128,061 (1,722,976) 520,517 1,225,899 3,348,246 Gain (loss) on disposal of capital asset — 123,934 (71,335) 28,861 167,291 16,862 20,072 (15,735) 2,726,201 393,500 Transfers (410,016) 1,218,036 (742,999) (758,084) (475,000) (546,353) (534,921) (1,396,976) (1,667,658) (401,119) Total governmental activities 28,271,531 31,506,290 31,139,110 30,359,392 30,674,185 35,370,474 30,262,406 31,953,982 48,633,273 58,961,788 Business-Type Activities Unrestricted investment earnings — — 304,231 3,389 1,010,849 846,331 38,987 (1,291,575) 833,995 3,102,361 Miscellaneous — — 1,256,284 2,529,824 362,631 518,162 233,508 219,770 226,026 329,371 (Loss) gain on disposal of capital asset — — (2,013,292) 10,005 (172,428) 4,012 17,918 1,031 (13,856) — Transfers 380,347 (1,218,036) 742,999 758,084 475,000 546,353 534,921 1,396,976 1,667,658 401,119 Total business-type activities 380,347 (1,218,036) 290,222 3,301,302 1,676,052 1,914,858 825,334 326,202 2,713,823 3,832,851 Total Primary Government $ 28,651,878 $ 30,288,254 $ 31,429,332 $ 33,660,694 $ 32,350,237 $ 37,285,332 $ 31,087,740 $ 32,280,184 $ 51,347,096 $ 62,794,640 Change in Net Position Governmental Activities $ 9,223,211 $ 13,220,711 $ 9,193,435 $ 16,124,225 $ 14,231,836 $ 31,661,395 $ 18,939,493 $ 22,381,965 $ 34,523,325 $ 41,630,546 Business-Type Activities 5,951,061 16,237,177 11,547,823 18,769,988 13,575,576 18,947,397 13,614,401 23,126,631 14,067,952 15,572,338 Total Primary Government Change in Net Position $ 15,174,272 $ 29,457,888 $ 20,741,258 $ 34,894,213 $ 27,807,412 $ 50,608,792 $ 32,553,894 $ 45,508,596 $ 48,591,277 $ 57,202,884 City of Bozeman, MontanaChanges in Net Position (Continued) Last Ten Fiscal Years(Accrual Basis of Accounting) 163 220 Fund Balances of Governmental Funds Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Fund Nonspendable $ — $ — $ — $ — $ — $ — $ — $ — $ 37,167 $ 124,570 Restricted — — — — — — — — Restricted 89,079 Committed — — — — — — — — 6,087,489 3,291,645 Assigned 6,061,965 5,541,841 6,402,882 7,739,020 7,739,582 8,110,313 9,313,580 8,708,695 — 1,638,700 Unassigned — 979,258 87,274 (274,252) — 1,030,550 (130,315) (107,076) 8,953,349 21,131,964 Total General Fund $ 6,061,965 $ 6,521,099 $ 6,490,156 $ 7,464,768 $ 7,739,582 $ 9,140,863 $ 9,183,265 $ 8,601,619 $ 15,078,005 $ 26,275,958 All Other Governmental Funds Nonspendable $2,061,790 $1,426,575 $1,533,338 $1,623,816 $1,735,591 $1,796,174 $1,884,479 $1,919,979 $1,804,399 $2,002,083 Restricted 12,546,935 39,856,356 38,938,127 34,403,744 23,129,241 65,273,723 61,818,904 55,582,529 60,797,482 68,570,189 Committed 3,088,936 3,528,263 3,901,694 3,856,238 4,279,091 4,328,163 3,621,644 3,168,927 603,360 2,318,664 Assigned — 7,425,398 7,259,749 1,868,485 1,293,436 578,852 96,473 134,135 2,927,964 1,554,280 Unassigned (97,173) 914,535 107,103 (42,648) 8,731,534 (125,584) 662,773 (312,180) (302,973) (2,468,720) Total All Other Governmental Funds $ 17,600,488 $ 53,151,127 $ 51,740,011 $ 41,709,635 $ 39,168,893 $ 71,851,328 $ 68,084,273 $ 60,493,390 $ 65,830,232 $ 71,976,496 City of Bozeman, MontanaFund Balances of Governmental Funds Last Ten Fiscal Years(Modified Accrual Basis of Accounting) 164 221 Changes in Fund Balances of Governmental Funds Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenues Taxes $ 20,404,236 $ 21,303,074 $ 21,682,667 $ 22,553,972 $ 23,788,018 $ 28,321,349 $ 26,973,106 $ 29,607,197 $ 39,657,027 $ 45,430,765 Special assessments 1,578,855 1,265,954 1,163,275 1,137,103 1,116,925 1,390,355 1,676,909 1,616,318 1,293,350 981,136 Licenses and permits 1,827,842 2,112,090 2,092,673 2,541,727 2,392,081 2,524,368 2,902,616 2,850,060 3,542,188 4,766,902 Intergovernmental 8,562,937 8,920,424 8,956,044 9,419,104 10,488,662 12,600,824 15,297,152 12,638,682 18,089,987 18,888,805 Charges for services 10,629,791 12,283,683 13,743,830 17,885,529 16,987,622 20,142,910 24,847,833 30,095,236 30,136,508 36,103,851 Fines and forfeitures 1,305,166 1,253,705 1,256,525 1,240,154 1,234,324 1,199,601 1,168,880 1,053,196 1,069,270 967,872 Investment income (losses) 370,305 479,699 520,690 34,709 1,439,743 1,343,201 155,647 (1,885,520) 1,092,193 4,288,617 Loan repayments 94,989 38,552 31,837 25,827 31,695 44,930 38,276 53,539 30,346 52,566 Miscellaneous 363,274 415,646 1,307,668 2,313,097 995,553 1,790,144 1,766,620 2,712,894 2,031,152 3,309,370 Total revenues 45,137,395 48,072,827 50,755,209 57,151,222 58,474,623 69,357,682 74,827,039 78,741,602 96,942,021 114,789,884 Expenditures General government 6,594,474 7,318,539 7,643,886 8,268,285 8,782,078 9,280,183 10,449,026 11,891,184 15,001,137 16,148,004 Public safety 15,086,695 16,485,549 16,812,131 17,602,966 18,005,944 19,598,592 19,778,375 22,104,511 25,534,451 27,230,772 Public works 3,786,283 3,840,405 4,422,771 4,955,559 5,774,783 5,376,499 5,868,383 6,977,080 8,454,661 8,347,215 Public health & welfare 7,366,955 7,245,425 7,654,059 7,975,354 8,339,885 9,046,331 11,690,142 14,598,944 13,296,225 18,366,077 Other 1,113,340 418,431 506,169 655,532 728,642 665,517 3,500,760 2,204,370 1,836,292 2,292,263 Capital outlay 9,905,333 9,337,470 12,468,020 18,420,501 19,106,110 24,265,809 32,608,736 30,801,575 17,918,459 26,001,640 Debt service Principal 1,121,593 1,345,250 1,422,555 1,500,687 1,635,369 6,639,947 3,188,603 2,969,165 3,927,518 3,875,897 Interest and fiscal charges 824,266 893,470 771,714 718,597 786,238 1,763,155 2,105,985 2,051,119 2,304,135 2,283,583 Total expenditures 45,798,939 46,884,539 51,701,305 60,097,481 63,159,049 76,636,033 89,190,010 93,597,948 88,272,878 104,545,451 Excess (Deficiency) of Revenues over (under) Expenditures (661,544) 1,188,288 (946,096) (2,946,259) (4,684,426) (7,278,351) (14,362,971) (14,856,346) 8,669,143 10,244,433 City of Bozeman, MontanaChanges in Fund Balances of Governmental Funds Last Ten Fiscal Years(Accrual Basis of Accounting) 165 222 Other Financing Sources (Uses) Transfers in 4,816,671 6,483,413 3,950,059 4,394,277 4,202,825 8,867,568 5,976,400 10,802,182 23,487,954 18,527,011 Transfers out (5,197,018) (5,496,492) (4,693,058) (5,152,361) (4,677,825) (9,413,920) (6,511,321) (12,199,158) (25,155,612) (19,021,403) Bonds issued 5,619,361 47,406 234,702 1,103,586 2,859,598 41,878,844 10,501,000 7,045,000 — — Premium (discount) on bonds — — — — — — 649,009 515,591 — — Leases and other debt issued — — — — — — — 19,833 2,011,672 7,591,175 Sale of capital assets 64,855 227,984 43,277 35,144 33,898 29,567 23,744 34,836 2,800,071 7,687 Total other financing sources (uses) 5,303,869 1,262,311 (465,020) 380,646 2,418,496 41,362,059 10,638,832 6,218,284 3,144,085 7,104,470 Net Change in Fund Balances $ 4,642,325 $ 2,450,599 $ (1,411,116) $ (2,565,613) $ (2,265,930) $ 34,083,708 $ (3,724,139) $ (8,638,062) $ 11,813,228 $ 17,348,903 City of Bozeman, MontanaChanges in Fund Balances of Governmental Funds Last Ten Fiscal Years(Accrual Basis of Accounting) 166 223 Revenue CapacityAssessed Value of Taxable Property Assessed Taxable Value Fiscal Year Commercial as a Percentage Ended Residential and Industrial Total Taxable Total Direct Total Market of Total Market June 30,Property Property Other Property Assessed Value*Tax Rate Value**Value 2024 $ 139,071,121 $ 90,836,077 $ 17,198,561 $ 247,105,759 150.72 $ 17,730,663,050 1.394 % 2023 89,925,341 58,735,884 11,120,831 159,782,056 204.50 11,021,338,679 1.450 % 2022 87,432,389 57,107,580 10,812,534 155,352,503 154.12 10,724,564,866 1.449 % 2021 72,903,489 47,617,844 9,015,783 129,537,116 169.48 8,875,762,356 1.459 % 2020 70,588,175 46,105,567 8,729,455 125,423,197 188.45 8,596,253,775 1.459 % 2019 58,712,093 38,348,553 7,260,771 104,321,417 191.24 6,981,943,409 1.494 % 2018 56,952,419 37,199,199 7,043,156 101,194,774 187.33 6,745,351,312 1.500 % 2017 52,777,954 30,966,657 6,013,815 89,758,426 205.30 5,870,738,906 1.529 % 2016 50,899,738 29,864,642 5,799,800 86,564,180 210.16 5,698,588,679 1.519 % 2015 50,978,520 31,641,840 5,273,640 87,894,000 188.76 3,598,269,877 2.443 % 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. * Includes tax-exempt property ** Sales price of property is not public record in the State of Montana, so the Total Market Value was used instead City of Bozeman, Montana Assessed Value of Taxable Property Last Ten Fiscal Years 167 224 City Taxable Market and Taxable Values Net Taxable Value (Excludes Incremental Tax Increment Fiscal Year Value for All Districts Taxable Value Ended Taxable Full Tax Increment Incremental for Open Space June 30,Market Value Taxable Value Districts Values)Purposes 2024 $ 17,730,663,050 $ 268,988,379 $ 21,882,620 $ 247,105,759 $ 259,899,096 2023 11,021,338,679 171,848,662 12,066,606 159,782,056 172,444,905 2022 10,724,564,866 166,838,141 11,485,638 155,352,503 164,979,565 2021 8,875,762,356 137,983,427 8,446,311 129,537,116 137,765,762 2020 8,596,253,775 133,582,036 8,158,839 125,423,197 133,391,037 2019 6,981,943,409 109,713,782 5,392,365 104,321,417 191,152,592 2018 6,745,351,312 106,224,806 5,030,032 101,194,774 105,727,520 2017 5,870,738,906 94,102,761 4,344,335 89,758,426 93,212,816 2016 5,698,588,679 90,787,797 4,223,617 86,564,180 91,973,923 2015 3,598,269,877 92,081,322 4,187,322 87,894,000 90,735,030 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. City of Bozeman, Montana City Taxable Market and Taxable Values Last Ten Fiscal Years 168 225 Tax Increment District Taxable Valuation Detail Fiscal Year Bozeman Downtown Northeast Renewal District Bozeman Midtown* Ended Incremental Incremental Incremental June 30,Taxable Taxable Total Taxable Taxable Taxable Taxable Taxable Taxable Taxable 2024 $ 1,328,695 $ 13,789,647 $ 15,118,342 $ 423,054 $ 1,382,658 $ 1,805,712 $ 3,507,723 $ 5,397,828 $ 8,905,551 2023 1,328,695 8,245,319 9,574,014 423,054 660,471 1,083,525 3,507,723 2,751,885 6,259,608 2022 1,328,695 7,893,562 9,222,257 423,054 636,368 1,059,422 3,507,723 2,589,893 6,097,616 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 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 2019 1,328,695 4,159,996 5,488,691 423,054 229,047 652,101 3,507,723 982,574 4,490,297 2018 1,328,695 3,769,917 5,098,612 423,054 223,765 646,819 3,507,723 948,746 4,456,469 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 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 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 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 City of Bozeman, Montana Tax Increment District Taxable Valuation Detail Last Ten Fiscal Years 169 226 Fiscal Year North Park Urban Renewal**Bozeman Technology Pole Yard Urban Renewal*** Ended Incremental Incremental Incremental June 30,Base Taxable Taxable Total Taxable Base Taxable Taxable Total Taxable Base Taxable Taxable Total Taxable 2024 $ 244,332 $ 85,307 $ 329,639 $ 417 $ 98,233 $ 98,650 $ 1,137,056 $ 1,128,947 $ 2,266,003 2023 244,332 37,133 281,465 417 56,410 56,827 1,137,056 315,388 1,452,444 2022 244,332 53,750 298,082 417 56,410 56,827 1,137,056 255,655 1,392,711 2021 244,332 13,824 258,156 417 — 417 — — — 2020 244,332 — 244,332 417 — 417 — — — — 2019 244,332 20,749 265,081 417 — 417 — — — 2018 — — — 417 — 417 — — — 2017 — — — 417 — 417 — — — — 2016 — — — 417 — 417 — — — 2015 — — — 417 3 420 — — — 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. **New District created in fiscal year 2019 ***New District created in fiscal year 2022 City of Bozeman, Montana Tax Increment District Taxable Valuation Detail (Continued) Last Ten Fiscal Years 170 227 Fiscal Year Total Ended Incremental June 30,Base Taxable Taxable Total Taxable 2024 $ 6,641,277 $ 21,882,620 $ 28,523,897 2023 6,641,277 12,066,606 18,707,883 2022 6,641,277 11,485,638 18,126,915 2021 5,504,221 8,446,310 13,950,531 2020 5,504,221 8,158,839 13,663,060 2019 5,504,221 5,392,366 10,896,587 2018 5,259,889 4,942,428 10,202,317 2017 5,225,293 4,265,729 9,491,022 2016 4,639,163 4,168,406 8,807,569 2015 4,639,163 4,134,406 8,773,569 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. City of Bozeman, Montana Tax Increment District Taxable Valuation Detail (Continued) Last Ten Fiscal Years 171 228 Downtown Bozeman Improvement District & Comparison to City Taxable ValueDowntown Bozeman Improvement District City Taxable The District's Value Incremental Taxable (Excluding ALL Taxable Value Fiscal Year of Taxable Value Tax Increment Percentage Ended Property in the of Property Incremental District of the City's June 30,District in the District Taxable Value Valuations)Taxable Value 2024 $ 929,774,932 $ 15,118,342 $ 13,789,647 $ 247,105,759 5.58 % 2023 607,434,219 9,574,014 8,245,319 159,782,056 5.16 % 2022 580,867,055 9,222,257 7,893,562 155,352,503 5.08 % 2021 465,530,358 7,576,358 6,247,663 129,537,116 4.82 % 2020 447,565,041 7,316,105 5,987,410 125,423,197 4.77 % 2019 319,728,707 5,488,691 4,159,996 104,321,417 3.99 % 2018 297,005,720 5,098,612 3,769,917 101,194,774 3.73 % 2017 265,793,431 4,397,597 3,068,902 89,758,426 3.42 % 2016 259,138,001 4,227,246 2,898,551 86,564,180 3.35 % 2015 190,128,511 4,046,915 2,718,220 87,894,000 3.09 % 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. City of Bozeman, Montana Downtown Bozeman Improvement District & Comparison to City Taxable Value Last Ten Fiscal Years 172 229 Property Tax Levies for Tax Increment/Urban Renewal Districts Fiscal Year Taxing Entity 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 89.55 99.77 100.41 91.23 98.87 91.17 99.09 93.48 95.05 75.81 Open Space Bond 4.95 5.03 5.85 5.13 4.69 3.90 4.04 3.74 2.30 1.32 County-Wide School 99.94 106.85 105.39 99.67 102.44 96.45 96.74 91.29 89.58 80.70 Bozeman High School District 72.97 76.76 77.25 73.10 108.95 92.77 97.61 84.86 86.05 62.51 Bozeman Elementary School District 143.70 151.15 154.81 146.92 142.63 125.90 121.74 101.99 102.09 77.21 City of Bozeman 188.76 210.16 205.30 187.33 191.24 187.70 163.62 152.12 204.50 150.72 Total revenues 639.87 689.72 689.01 643.38 688.82 637.89 622.84 567.48 619.57 488.27 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 0.95 1.05 1.01 0.89 0.91 0.77 — — — — County-Wide Planning 2.35 2.39 2.39 2.48 2.50 2.22 1.48 2.18 2.23 1.59 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. City of Bozeman, Montana Property Tax Levies for Tax Increment/Urban Renewal Districts Last Ten Fiscal Years 173 230 Direct and Overlapping Property Tax Rates Fiscal Year General Ended Obligation Total Direct Bozeman School Gallatin State of June 30,Basic Rate Debt Service Tax Rate District County Montana 2024 133.90 16.82 150.72 139.72 157.83 46.00 2023 181.15 — 181.15 188.14 186.93 46.00 2022 131.89 22.23 154.12 219.35 195.83 46.00 2021 140.73 28.75 169.48 218.67 191.52 46.00 2020 162.82 25.63 188.45 251.58 206.00 46.00 2019 178.22 13.02 191.24 220.02 223.33 46.00 2018 173.92 13.41 187.33 232.06 241.69 46.00 2017 190.17 15.13 205.30 227.91 241.69 46.00 2016 194.51 15.65 210.16 216.67 215.78 46.00 2015 177.52 11.24 188.76 218.41 221.00 46.00 Source: Based on information provided by Gallatin County and Department of Revenue City of Bozeman, Montana Direct and Overlapping Property Tax Rates Last Ten Fiscal Years 174 231 Principal Property Taxpayers 2024 2015 Percentage of Percentage of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Valuation Rank Valuation Valuation Rank Valuation Northwestern Energy - T & D $ 7,686,407.00 1 3.11%$ 3,830,123 1 4.36% Plato MT I Propco LLC 1,441,254.00 2 0.58% — N/A N/A Harvest Parkway Drive LLC 996,211.00 3 0.40% — N/A N/A Bozeman Apartment Group Owners LLC 979,189.00 4 0.40% — N/A N/A Cannery District Partners LLC 858,298.00 5 0.35% — N/A N/A Straightaway Bozeman Investors LLC 843,046.00 6 0.34% — N/A N/A NB Stadium View DST 780,225.00 7 0.32% — N/A N/A GKT Bozeman Gateway LLC 763,717.00 8 0.31% — N/A N/A Etha Hotel LLC 728,043 9 0.29% — N/A N/A Crestview Lake LLC 669,190 10 0.27% — N/A N/A Centurylink, Inc. (Qwest) — N/A N/A 733,061 2 0.83% Bresnan Communications — N/A N/A 596,481 3 0.68% Verizon Wireless — N/A N/A 460,115 6 0.52% Harry Daum - Gallatin Mall — N/A N/A 496,708 4 0.57% Stone Ridge Partners LLC — N/A N/A 472,006 5 0.54% J & D Family LLP — N/A N/A 355,492 9 0.40% Bridger Peaks Holding LLC — N/A N/A 362,555 7 0.41% First Security Bank — N/A N/A 362,097 8 0.41% George E. Westlake — N/A N/A 327,461 10 0.37% Total attributable to top taxpayers 15,745,580 6.37% 7,996,099 9.10% Total of all other properties 231,360,179 93.63% 79,897,901 90.90% $ 247,105,759 100.00%$ 87,894,000 100.00% Source: Gallatin County Treasurer City of Bozeman, Montana Principal Property Taxpayers Last Ten Fiscal Years 175 232 Principal Property Taxpayers in Downtown Bozeman Improvement District 2024 2023 Percentage of Percentage of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Business Valuation Rank Valuation Valuation Rank Valuation Straight Away Bozeman Investors LLC Commercial $ 843,046 1 5.58%$ 401,588 2 4.19% ETHA Hotel LLC Property Investor/Developer 728,043 2 4.82% 479,342 1 5.01% First Security Bank Bank 606,737 3 4.01% 283,859 4 2.96% G25 Holdings LLC Property Investor/Developer 438,524 4 2.90% 332,967 3 3.48% 106 East Babcock LLC Multi-Tenant Commercial/Residential Building 266,585 5 1.76% 216,271 5 2.26% 5 West LLC Multi-Tenant Commercial/Residential Building 257,480 6 1.70% 185,489 6 1.94% Downtowner Group LLC Business Support Services 226,707 7 1.50% 150,146 9 1.57% 104 East Main LLC Multi-Tenant Commercial/Residential Building 221,207 8 1.46% 161,377 8 1.69% Main St Holdings LLC Property Investor/Developer 206,603 9 1.37% — N/A N/A Osborne Building LLC Multi-Tenant Commercial/Residential Building 204,900 10 1.36% 166,700 7 1.74% Moose Point LP Commercial Property Developer — N/A N/A 142,399 10 1.49% Total attributable to top taxpayers 3,999,832 26.46% 2,520,138 26.32% Total of all other properties 11,118,510 73.54% 7,053,876 73.68% $ 15,118,342 100.00%$ 9,574,014 100.00% Source: Gallatin County Treasurer City of Bozeman, Montana Principal Property Taxpayers in Downtown Bozeman Improvement District Current Year and Prior Year 176 233 Properties in the Bozeman Midtown Urban Renewal District 2023/2024 2022/2023 Percentage of Percentage of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Property Type/Property Tax Classification Valuation Valuation Valuation Valuation 3 agricultural land $ 16,884 $ 814 $ 16,239 $ 803 4 residential 83,822,014 1,127,288 48,687,693 652,961 4 commercial 405,538,454 7,664,673 290,738,314 5,494,952 5 pollution control, electric and telephone cooperatives 101,953 3,058 4,215 126 8 business equipment 3,148,932 47,256 2,602,716 39,042 9 pipelines and non-electric generating property of electric utility 354,606 42,554 411,219 49,346 13 electrical generation and telecommunication 331,789 19,908 372,962 22,378 $ 493,314,632 $ 8,905,551 $ 342,833,358 $ 6,259,608 Source: Montana Department of Revenue City of Bozeman, Montana Properties in the Bozeman Midtown Urban Renewal District Current Year and Prior Year 177 234 Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District 2023/2024 2022/2023 Percentage of Percentage of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Valuation Rank Valuation Valuation Rank Valuation Rocky Mountain Retail LLC $ 336,792 1 3.78%$ 220,308 3 2.47% TCIP Partnership 328,800 2 3.69% 264,335 1 2.97% Grantree Hotels LP 302,400 3 3.40% 219,618 4 2.47% Walmart Stores Inc. 299,912 4 3.37% 247,136 2 2.78% Westlake, George 285,878 5 3.21% 187,745 6 2.11% Buffalo Ventures LLC 262,215 6 2.94% 213,835 5 2.40% Aspen Land Co LLC 252,393 7 2.83% 163,602 8 1.84% DK Martinen LLC 221,170 8 2.48% — N/A N/A Bozeman Hospitality LLC 209,998 9 2.36% 167,963 7 1.89% Oak Street Partnership 193,353 10 2.17% 146,997 9 1.65% RSVP Motel LLC — N/A N/A 136,794 10 1.54% Total attributable to top taxpayers 2,692,911 30.24% 1,968,333 22.10% Total of all other properties 6,212,640 69.76% 4,291,275 48.19% $ 8,905,551 100.00%$ 6,259,608 70.29% Source: Gallatin County Treasurer City of Bozeman, Montana Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District Current Year and Prior Year 178 235 Property Tax Levies and Collections Collected Within the Fiscal Year of the Levy Total Collections to Date Fiscal Year Taxes Levied Collections in Ended for the Percentage Subsequent Percentage June 30,Fiscal Year Amount of Levy Years Amount of Levy 2024 $ 37,252,252 $ 36,055,455 96.79%$ — $ 36,055,455 96.79% 2023 32,675,419 32,618,261 99.83%130,856 32,749,117 100.23% 2022 23,793,072 23,777,644 99.94% 38,861 23,816,505 100.10% 2021 21,454,058 21,017,696 97.97% 62,849 21,080,545 98.26% 2020 23,589,506 23,381,671 99.12% 207,835 23,589,506 100.00% 2019 19,950,675 19,940,784 99.95% 9,891 19,950,675 100.00% 2018 18,956,357 18,791,653 99.13% 59,105 18,850,758 99.44% 2017 18,338,501 18,069,230 98.53% 100,060 18,169,290 99.08% 2016 18,191,892 18,009,556 99.00% 74,846 18,084,402 99.41% 2015 16,590,871 16,559,270 99.81% 31,601 16,590,871 100.00% Source: Gallatin CountyCity Manager's Final Adopted Budget City of Bozeman, Montana Property Tax Levies and Collections Last Ten Fiscal Years 179 236 Water Sold by Type of Customer Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Residential 1,385,140 1,493,192 1,601,439 1,623,881 1,556,249 1,546,308 1,788,984 1,612,932 1,583,076 1,516,380 Government 53,165 51,923 56,956 75,001 54,270 103,536 73,416 82,308 110,364 123,972 MSU 210,107 208,618 225,394 217,967 238,968 178,368 171,840 199,080 202,164 202,872 Commercial 599,193 610,741 620,761 618,398 627,116 506,868 590,076 578,688 600,456 579,012 Total 2,247,605 2,364,474 2,504,550 2,535,247 2,476,603 2,335,080 2,624,316 2,473,008 2,496,060 2,422,236 Total direct rate per 1,000 HCF $ 3,105.14 $ 3,175.41 $ 3,256.73 $ 3,337.92 $ 3,508.94 $ 3,757.07 $ 3,697.72 $ 4,001.23 $ 4,054.42 $ 4,454.54 Source: City of Bozeman Finance Department City of Bozeman, Montana Water Sold by Type of Customer(in hundreds of cubic feet [HCF]) Last Ten Fiscal Years 180 237 Water and Sewer Rates Water*Sewer* Fiscal Year Ended Monthly Rate per Monthly Rate per June 30,Base Rate 1,000 Gallons Base Rate 1,000 Gallons 2024 $ 18.11 $ 28.37 $ 21.93 $ 36.34 2023 $ 16.17 $ 25.33 $ 19.58 $ 32.45 2022 $ 16.17 $ 25.33 $ 19.58 $ 32.45 2021 $ 16.17 $ 25.33 $ 19.58 $ 32.45 2020 $ 16.17 $ 25.33 $ 19.58 $ 32.45 2019 $ 16.17 $ 25.33 $ 19.58 $ 32.45 2018 $ 15.70 $ 24.60 $ 19.01 $ 31.50 2017 $ 15.39 $ 24.11 $ 18.63 $ 30.87 2016 $ 15.02 $ 23.53 $ 18.09 $ 29.98 2015 $ 14.65 $ 22.95 $ 17.56 $ 29.10 * 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 City of Bozeman, Montana Water and Sewer Rates Last Ten Fiscal Years 181 238 Debt CapacityRatios of Outstanding Debt by Type Governmental Activities Business-type Activities General Tax Increment Special Financed Subscription Water Wastewater Stormwater Total Percentage Obligation Financing Assessment Notes & Leases IT Unamortized Revenue Revenue Revenue Leases Primary of Personal Per Year Bonds Bonds Bonds Payable Payable Agreements Premium Year Bonds Bonds Bond Payable Government Income (1)Capita (2) 2024 $ 49,675,000 $ 9,301,366 $ 3,167,567 $ 1,716,030 $ 1,740,201 $ 626,375 $ 4,337,187 2024 $ 14,593,000 $ 23,888,000 $ 1,109,000 $ — $ 110,153,725 4 %$ 1,922 2023 45,765,000 9,802,767 3,372,289 2,045,505 343,801 853,425 4,230,082 2023 15,949,000 25,939,000 1,196,000 — 109,496,869 6 % 1,951 2022 47,990,000 10,288,570 3,764,217 2,322,582 630,917 — 4,484,963 2022 17,267,000 27,932,231 1,280,000 — 115,962,502 7 % 2,126 2021 43,240,000 10,763,655 3,948,216 2,246,694 310,270 — 4,198,474 2021 18,547,000 24,582,587 1,362,000 434,598 109,635,515 8 % 2,057 2020 45,445,000 4,733,238 139,500 2,481,079 404,043 — 3,778,566 2020 19,791,000 14,057,000 1,442,000 363,749 92,637,195 7 % 1,859 2019 12,940,000 5,338,811 171,500 2,637,009 651,453 — 208,593 2019 21,001,000 15,229,000 1,520,000 290,538 59,989,923 6 % 1,236 2018 13,835,000 5,018,931 406,000 763,588 463,535 — 222,051 2018 19,107,497 16,368,000 1,292,430 214,887 57,693,937 6 % 1,238 2017 14,710,000 4,425,000 501,000 902,500 270,492 — 235,509 2017 15,760,000 17,856,000 1,367,430 183,591 56,213,539 6 % 1,242 2016 15,570,000 4,630,000 662,500 884,844 249,501 — 248,967 2016 16,567,000 18,930,565 1,440,430 71,077 59,256,900 7 % 1,365 2015 16,320,000 4,825,000 890,500 963,274 295,912 — 262,425 2015 17,365,000 19,972,565 229,750 10,585 61,137,026 7 % 1,468 Sources: City Manager's Final Adopted Budget City of Bozeman Finance Department City of Bozeman, Montana Ratios of Outstanding Debt by Type Last Ten Fiscal Years 182 239 Ratios of General Bonded Debt Outstanding General Tax Increment Percentage of Obligation Financing Market Value Per Year Bonds District Bonds Total of Property Capita 2024 $ 49,675,000 $ 9,301,366 $ 58,976,366 23.87 %$ 1,029.17 2023 45,765,000 9,802,767 55,567,767 34.78 %$ 990.11 2022 47,990,000 10,288,570 58,278,570 37.51 %$ 1,068.45 2021 43,240,000 10,763,655 54,003,655 41.69 %$ 1,013.33 2020 45,445,000 4,733,238 50,178,238 40.01 %$ 1,006.97 2019 12,940,000 5,338,811 18,278,811 17.52 %$ 376.63 2018 13,835,000 4,926,931 18,761,931 18.54 %$ 402.65 2017 14,710,000 4,425,000 19,135,000 21.32 %$ 422.87 2016 15,570,000 4,630,000 20,200,000 23.34 %$ 465.38 2015 16,320,000 4,825,000 21,145,000 24.06 %$ 507.56 Source: City Manager's Final Adopted Budget Debt Outstanding is reduced by cash held for bond reserves for the purposes of this table City of Bozeman, Montana Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years 183 240 Ratios of General Bonded Debt Outstanding Estimated Estimated Share Debt Percentage of Overlapping Taxing Entity Outstanding Applicable (1)Debt City of Bozeman $ 69,937,350 100.00%$ 69,937,350 Gallatin County 45,125,038 36.17 % 16,321,286 Bozeman School District #7 151,745,912 62.00 % 94,087,669 Subtotal overlapping debt 196,870,950 110,408,955 Total Direct and Overlapping Debt $ 266,808,300 $ 180,346,305 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 #7 City of Bozeman, Montana Computation of Direct and Overlapping Debt Last Ten FIscal Years 184 241 Legal Debt Margin Information Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Debt limit*$ 84,500,000 $ 142,464,717 $ 147,500,000 $ 168,633,783 $ 174,548,585 $ 214,906,344 $ 221,894,059 $ 268,114,122 $ 275,533,467 $ 443,265,826 Total net debt applicable to limit 23,557,111 22,245,812 21,044,501 20,709,105 21,947,366 56,981,426 64,707,309 69,481,249 65,559,444 51,391,030 Legal debt margin $ 60,942,889 $ 120,218,905 $ 126,455,499 $ 147,924,678 $ 152,601,219 $ 157,924,918 $ 157,186,750 $ 198,632,873 $ 209,974,023 $ 391,874,796 Total net debt applicable as a percentage of debt limit 27.88 % 15.61 % 14.27 % 12.28 % 12.57 % 26.51 % 29.16 % 25.91 % 23.79 % 11.59 % *2.5% of total market value of taxable property per MCA 7-7-4201 Source: City Manager's Final Adopted Budget and Certified Taxable Values from the Department of Revenue City of Bozeman, Montana Legal Debt Margin Information Last Ten Fiscal Years 185 242 Pledged Revenue Coverage – Governmental Activities Special Assessment Bonds Special Assessment Debt Service Year Collections Principal Interest Total Coverage 2024 $ 515,511 $ 204,722 $ 115,554 $ 320,276 1.61 2023 569,231 391,928 128,795 520,723 1.09 2022 901,483 183,999 135,136 319,135 2.82 2021 975,387 192,284 135,114 327,398 2.98 2020 775,230 32,000 26,434 58,434 13.27 2019 518,351 234,500 18,740 253,240 2.05 2018 506,819 95,000 23,221 118,221 4.29 2017 558,988 161,500 30,335 191,835 2.91 2016 705,143 228,000 39,343 267,343 2.64 2015 586,116 295,000 50,070 345,070 1.70 City of Bozeman, Montana Pledged Revenue Coverage – Governmental Activities Last Ten FIscal Years 186 243 Pledged Revenue Coverage – Business-Type Activities Water Revenue Bonds Water Less:Net Available Debt Service Year Revenue Expenditures Revenue Principal Interest Total Coverage 2024 $ 12,520,898 $ 11,477,265 $ 1,043,633 $ 1,356,000 $ 440,388 $ 1,796,388 0.58 2023 12,314,794 10,150,775 2,164,019 1,318,000 478,523 1,796,523 1.20 2022 11,613,448 7,868,703 3,744,745 1,280,000 515,842 1,795,842 2.09 2021 11,027,542 6,878,458 4,149,084 1,244,000 552,156 1,796,156 2.31 2020 9,852,377 6,848,489 3,003,888 1,210,000 587,350 1,797,350 1.67 2019 9,396,171 6,525,730 2,870,441 1,176,000 578,954 1,754,954 1.64 2018 10,157,888 6,494,121 3,663,767 1,141,000 530,881 490,890 7.46 2017 9,281,821 6,589,396 2,692,425 822,000 490,890 1,312,890 2.05 2016 8,414,870 6,176,752 2,238,118 798,000 515,010 1,313,010 1.70 2015 7,748,913 4,973,926 2,774,987 775,000 538,425 1,313,425 2.11 Waste Water Revenue Bonds Water Less:Net Available Debt Service Year Revenue Expenditures Revenue Principal Interest Total Coverage 2024 $ 11,878,072 $ 9,083,589 $ 2,794,483 $ 2,051,000 $ 676,628 $ 2,727,628 1.02 2023 10,787,474 7,621,951 3,165,523 1,993,321 733,053 2,726,374 1.16 2022 10,389,216 6,607,192 3,782,024 1,951,000 729,704 2,680,704 1.41 2021 9,926,730 6,329,624 3,597,106 1,760,000 581,214 2,341,214 1.54 2020 9,441,675 6,592,798 2,848,877 1,172,000 446,064 1,618,064 1.76 2019 9,336,007 6,348,468 2,987,539 1,139,000 479,859 1,618,859 1.85 2018 8,876,017 5,158,989 3,717,028 1,104,000 513,009 1,617,009 2.30 2017 8,566,893 5,496,164 3,070,729 1,074,565 545,267 1,619,832 1.90 2016 7,927,692 5,139,029 2,788,663 1,042,000 552,269 1,594,269 1.75 2015 7,631,117 3,914,454 3,716,663 1,053,000 632,268 1,685,268 2.21 City of Bozeman, Montana Pledged Revenue Coverage – Business-Type Activities Last Ten FIscal Years 187 244 Debt Service Requirements and Coverage for Tax Increment Districts Downtown Improvement District Northeast Urban Renewal District*Midtown Improvement District** Revenues Annual Revenues Annual Revenues Annual Available for Debt Service Available for Debt Service Available for Debt Service Year Debt Service Payment Coverage Debt Service Payment Coverage Debt Service Payment Coverage 2024 $ 12,715,048 $ 332,831 38.20 $ 724,912 $ 92,000 7.88 $ 2,590,054 $ 411,250 6.30 2023 2,347,685 330,150 7.11 414,674 92,000 4.51 1,734,350 409,950 4.23 2022 1,483,518 332,372 4.46 397,037 92,000 4.32 1,701,529 408,550 4.16 2021 1,847,752 332,448 5.56 470,096 92,000 5.11 1,118,930 401,893 2.78 2020 1,803,534 447,987 4.03 289,196 92,000 3.14 — — N/A 2019 2,150,531 423,573 5.08 164,252 95,000 1.73 — — N/A 2018 2,430,377 422,288 5.76 149,580 92,000 1.63 — — N/A 2017 2,160,187 425,488 5.08 — — N/A — — N/A 2016 2,066,749 423,288 4.88 — — N/A — — N/A 2015 1,853,725 425,888 4.35 — — N/A — — N/A *$863,000 Bond issuance for the Northeast Urban Renewal District on 7/20/2017 **$6,500,000 Bond issuance for the Northeast Urban Renewal District on 7/9/2020 City of Bozeman, Montana Debt Service Requirements and Coverage for Tax Increment Districts Last Ten Fiscal Years 188 245 Summary of Outstanding SIDs Bonds Assessments Delinquent Bond Issue Original Amount Maturity Date Outstanding Cash Balance Outstanding Assessments SID 674 $ 494,000 7/1/2024 $ — $ (13,635) $ — $ 326 SID 747 4,001,000 7/1/2040 3,167,567 (26,113) 2,417,711 7,522 Total $ 4,495,000 $ 3,167,567 $ (39,748) $ 2,417,711 $ 7,848 City of Bozeman, Montana Summary of Outstanding SIDs Last Ten FIscal Years 189 246 Revolving Fund Balance and Bond Secured Thereby Revolving Fund Principal Fiscal Year Ended June 30, Cash Balance Amount of Debt 2024 $ 336,358 $ 1,372,646 2023 54,728 680,263 2022 766,881 766,510 2021 2,555,927 1,152,898 2020 2,173,692 1,537,286 2019 3,020,315 643,983 2018 2,903,817 916,503 2017 2,874,013 1,040,533 2016 2,924,604 1,120,708 2015 2,948,129 1,295,224 City of Bozeman, Montana Revolving Fund Balance and Bond Secured Thereby Last Ten FIscal Years 190 247 Special Improvement District Assessment Billing and Collections Assessment Total Annual Fiscal Year Ended June 30, Billing Collections 2024 $ 513,169 $ 515,511 2023 567,476 569,230 2022 578,154 599,831 2021 594,719 649,643 2020 642,408 703,796 2019 476,212 518,351 2018 505,481 506,819 2017 528,622 558,988 2016 543,351 705,143 2015 538,697 586,116 City of Bozeman, Montana Special Improvement District Assessment Billing and Collections Last Ten FIscal Years 191 248 Demographic and Economic InformationDemographic and Economic Statistics Percentage Residents (age Change in Per Capita 25 and over)Pre K-12 Estimated Estimated Personal Personal with Bachelor's School Unemployment Year Population Population Income Income Median Age Degree or Higher Enrollment Rate 2024 57,305 2.11 %$ 2,615,240,500 $ 53,500 28.3 64.2%7,386 2.1% 2023 56,123 2.89 %1,952,338,137 39,939 28.0 63.8%7,357 1.9% 2022 54,545 2.35 % 1,700,066,144 36,526 29.0 63.1%7,308 2.1% 2021 53,293 6.95 % 1,393,673,190 32,865 28.0 58.7%6,893 3.2% 2020 49,831 2.68 % 1,279,025,432 30,268 28.0 56.8%7,152 4.5% 2019 48,532 4.15 % 1,047,804,618 29,097 28.0 56.9%7,015 3.8% 2018 46,596 2.97 % 993,940,022 28,748 27.9 55.6%6,908 2.8% 2017 45,250 4.25 % 918,565,430 26,506 27.7 56.5%6,770 2.8% 2016 43,405 4.19 % 849,682,100 26,350 27.5 54.4%6,533 2.8% 2015 41,660 #DIV/0! 849,198,410 26,335 27.3 53.6%6,294 2.9% Sources: Bozeman Public Schools U.S. Bureau of Labor Statistics U.S. Census Bureau City of Bozeman, Montana Demographic and Economic Statistics Last Ten Fiscal Years 192 249 Principal Employers 2024 2015 Employer Employer Private Employers by Class Class Size Private Employers by Class Class Size Albertsons 6 Albertsons 6 Big Sky Resort 8 Bridger Bowl 6 Bozeman Deaconess Hospital 9 Community Food Co-Op 6 Bozeman Health Medical Group 7 Costco 6 Bridger Bowl 7 Federal Premium Ammunition 6 Costco 7 First Student 6 Gibson Brands 6 Kenyon Noble Lumber & Hardware 6 Glacier Bancorp 6 Korman Marketing Group 6 Kenyon Noble Lumber & Hardware 7 Martel Construction 6 Lone Mountain Land Company 7 McDonalds 6 McDonalds 6 Murdoch's Ranch & Home Supply 6 Montage Big Sky 7 Ressler Motor 6 Murdoch's Ranch & Home Supply 6 Rosauers Super Markets 6 Oracle America 7 Simkins Hallin Lumber & Hardware 6 Ressler Motors 7 Town & Country Foods 6 Town & Country Foods 8 Town Pump Convenience Stores 6 Town Pump 7 Zoot Enterprises 6 Wal-Mart 7 Oracle America 7 Williams Plumbing & Heating 6 Wal-Mart 7 Zoot Enterprises 6 Bozeman Deaconess Hospital 9 Employer Employer Public Employers by Class Class Size Public Employers by Class Class Size Montana State University 9 Montana State University 9 Belgrade School District 8 Belgrade School District 8 Bozeman School District 8 School District #7 9 Gallatin County 8 Gallatin County 7 City of Bozeman 7 City of Bozeman 7 Department of Agriculture 7 Source: Montana Department of Labor & Industry Class 6 - 100 to 249 Employees Class 7 - 250 to 499 Employees Class 8 - 500 to 999 Employees Class 9 - 1,000+ Employees City of Bozeman, Montana Principal Employers Current Year and Nine Years Ago 193 250 Operating InformationFull-Time Equivalent City Government Employees by Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government City Commission 2.10 2.10 2.10 0.10 2.10 2.10 2.10 2.10 2.10 2.10 City Manager 5.00 6.00 6.00 9.00 9.00 9.00 9.00 9.00 8.00 9.00 Municipal Court 9.00 8.50 8.50 9.50 9.50 9.60 9.98 11.23 12.25 12.25 City Attorney 9.00 10.20 10.20 10.70 10.70 11.70 12.70 12.70 13.00 14.00 Administrative Services* 21.00 21.50 23.50 — — — — — — — Human Resources* — — — 4.00 5.00 5.00 5.00 5.00 6.00 6.00 Finance* — — — 12.50 13.50 13.50 15.00 14.00 8.25 10.25 Information Technology* — — — 6.00 7.00 7.00 7.00 8.00 9.00 10.00 Community Development 12.60 11.60 13.00 13.00 14.25 15.25 15.25 18.25 21.00 20.00 Facilities Management 3.50 3.50 3.50 4.50 5.00 5.00 6.00 7.00 8.00 9.50 Total general government 62.20 63.40 66.80 69.30 76.05 78.15 82.03 87.28 87.60 93.10 Public safety Police Department 72.25 71.70 72.70 72.70 74.55 75.55 76.95 80.95 83.30 88.80 Fire Department 45.00 46.00 46.00 46.00 47.00 50.00 50.00 50.00 48.00 51.00 Building Inspection 14.00 18.50 18.50 19.50 19.75 19.75 19.75 19.75 23.25 23.25 Parking 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.17 5.82 Total public safety 137.25 142.20 143.20 144.20 147.30 151.30 152.70 156.70 160.72 168.87 Public Services Public Services Admin/Engineering 6.58 10.25 11.50 11.50 16.25 18.25 22.25 26.25 31.25 30.25 Streets 16.20 18.85 19.85 21.85 21.35 22.30 22.30 22.30 26.10 26.10 Metropolitan Planning Organization (MPO) ** — — — — — — — — — 1.00 Storm Water 4.00 6.25 6.50 7.50 7.50 8.50 9.50 9.50 8.75 8.75 Water 30.08 24.95 24.95 24.50 26.75 28.70 28.65 29.65 31.55 32.55 Wastewater 28.59 28.05 28.80 27.00 27.50 29.55 30.55 30.55 27.45 27.45 Solid Waste Collection/Recycling 15.90 15.15 16.15 17.15 17.15 18.75 19.75 19.75 21.40 21.40 Vehicle Maintenance 5.00 6.50 6.50 7.50 7.50 8.50 8.50 9.50 9.50 9.50 Total public services 106.35 110.00 114.25 117.00 124.00 134.55 141.50 147.50 156.00 157.00 Public Welfare Parks & Recreation 43.08 48.75 50.46 48.26 53.05 53.05 52.85 52.85 55.16 60.16 Library 23.41 26.02 28.02 28.02 28.02 28.02 26.53 26.53 26.87 26.87 Neighborhood Services*** — — — — — — — — — 4.85 Economic Development 3.50 3.50 3.50 2.00 2.00 3.00 3.00 3.00 3.83 3.83 Sustainability 1.50 1.50 1.50 1.50 1.50 1.50 1.50 3.00 3.00 3.00 Total public services 71.49 79.77 83.48 79.78 84.57 85.57 83.88 85.38 88.86 98.71 Total 377.29 395.37 407.73 410.28 431.92 449.57 460.11 476.86 493.18 517.68 Source: City Manager's Final Adopted Budget * Administrative Services consists of Finance, Information Technology and Human Resources. Beginning in fiscal year 2018, these programs are reported separately. City of Bozeman, Montana Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years 194 251 Operating Indicators by Function/Program2015201620172018201920202021202220232024 Finance SID Statements 16,506 16,893 17,200 17,463 18,185 18,552 18,895 19,655 20,001 20,001 Utility Bills 162,000 166,000 169,000 172,000 168,280 176,263 180,720 205,092 208,259 210,695 Accounts Payable Checks Processed 11,098 11,000 11,800 12,350 11,762 11,800 12,488 10,543 9,846 11,790 Police Number of Officers 61 60 61 60 60 60 60 60 61 62 Calls for Service 46,290 47,400 48,200 47,136 50,548 48,099 48,560 69,857 49,182 44,227 Arrests 2,195 2,078 2,427 2,314 2,618 2,017 2,118 1,936 2,402 1,688 Misdemeanor Citations Issued - includes traffic 6,169 6,390 5,886 4,940 5,430 4,800 4,058 4,012 5,460 5,075 Traffic Stops 7,757 7,482 7,900 7,675 9,600 8,410 8,736 8,062 5,991 4,207 Traffic Crashes 1,601 1,792 1,850 1,958 1,840 1,813 1,351 1,452 1,707 1,601 Fire* Fires, Hazardous Conditions, Rupture/Explosions 296 349 445 564 522 340 304 319 367 460 Emergency Medical Services/Rescue 2,032 2,424 3,062 3,320 3,073 3,154 3,005 2,716 2,714 2,275 Service Calls 202 244 334 438 406 239 170 311 282 285 Building Inspection Commercial Permits Number 1,560 1,628 1,731 883 768 702 707 548 1,014 878 Value (Millions)$ 98.02 $ 164.47 $ 65.00 $ 216.00 $ 249.00 $ 302.00 $ 237.00 $ 201.00 $ 271.00 $ 276.00 Residential Permits Number 2,836 3,937 3,905 3,222 2,307 2,094 2,674 1,947 2,354 2,117 Value (Millions)$ 191.97 $ 200.00 $ 130.00 $ 340.00 $ 311.00 $ 176.00 $ 233.00 $ 479.00 $ 444.00 $ 686.00 Water New Service Main Taps 70 60 72 65 101 96 100 60 25 37 Meter Replacement/Repair 1,006 978 1,500 994 1,042 528 1,273 1,285 645 781 Water Main Breaks/Repairs 5 7 6 7 5 11 14 9 5 4 Wastewater Main Line Flushing (in Miles)90.0 50.0 30.9 50.0 37.5 48.0 33.3 73.7 55.1 56.1 New Infrastructure TV (in Miles)8.00 2.60 9.90 7.00 2.80 3.30 7.40 6.77 3.70 6.32 New Service Taps 44 20 30 30 56 25 34 19 19 12 Solid Waste Collection & Recycling Residential Accounts 8,369 8,878 9,695 10,384 10,884 11,321 11,841 12,317 12,379 12,560 Commercial Customers 265 461 449 515 573 566 520 612 649 648 Recycling Customers 2,100 2,663 3,386 3,854 4,434 4,867 5,526 6,025 6,231 6,426 Annual Tonnage Collected: Collections Program 11,457 11,691 12,490 17,657 18,880 19,815 19,955 21,369 23,530 23,768 Vehicle Maintenance Work Orders Processed 1,549 1,453 1,509 2,592 2,392 2,057 3,718 1,802 1,845 1,814 Gallons of Oil Disposed 8,969 7,395 6,475 5,007 5,522 4,900 5,787 2,925 4,676 5,596 Parks Park Reservations 400 400 400 425 493 423 912 1,433 938 1,868 Sources: City Manager's Final Adopted Budget, City of Bozeman Finance Department *Statistics are based on calendar year City of Bozeman, Montana Operating Indicators by Function/Program Last Ten Fiscal Years 195 252 Capital Assets Statistics by Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units (Cars)*22 21 21 22 21 21 24 20 22 22 Patrol Units (Motorcycles)2 3 3 3 3 3 3 3 3 3 Fire Stations 3 3 3 3 3 3 3 3 3 3 Fire Trucks 7 7 7 7 7 7 7 7 9 9 Streets Street & Alley Mileage 262 266 267 271 275 280 282 286 297 319 Lane Miles Painted 49 50 50 52 48 53 51 51 53 54 Number of Signs Installed/Repaired 600 600 600 708 394 1,107 1,270 273 467 355 Water Water Mains (Miles)268.57 274.89 276.92 283.95 286.68 297.10 299.52 304.53 309.46 317.54 Fire Hydrants 2,419 2,511 2,573 2,618 2,668 2,758 2,782 2,835 2,932 3,097 Wastewater Sanitary Sewers (Miles)212.53 219.14 224.28 234.64 236.04 239.00 242.43 254.14 254.79 257.95 Number of Manholes 4,219 4,360 4,492 4,614 4,677 4,828 5,023 5,051 5,125 5,216 Solid Waste Number of Collection Vehicles 8 8 8 8 8 6 6 8 9 10 Number of Roll-off Trucks 4 4 4 5 5 5 5 5 5 5 Number of Recycling Trucks 2 2 2 2 2 2 2 2 2 2 Number of Compost Collection Trucks 2 2 2 1 1 1 1 1 1 1 Parks Formal Turf Acres 126 140 140 172 192 192 192 196 475 475 Natural Parkland Acres 220 220 220 323 343 388 413 413 436 436 Miles Trails 63 63 63 63 65 65 65 71 79 7 *Patrol cars determined by Vehicle & Equipment Master List-Fire Extinguishers tab-Total of "Utility" & "Interceptor" vehicles 206 Sources: City Manager's Final Adopted Budget City of Bozeman Finance Department City of Bozeman GIS Department City of Bozeman Police Department City of Bozeman, Montana Capital Assets Statistics by Function/Program Last Ten Fiscal Years 196 253 Federal Awards Reports in Accordance with the Uniform Guidance June 30, 2024 City of Bozeman, Montana 197eidebailly.com 254 198 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 The City Commission 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 (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Bozeman (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 20, 2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing 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 the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’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 City’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. What inspires you, inspires us. | eidebailly.com 401 N. 31st St., Ste. 1120 | P.O. Box 7112 | Billings, MT 59103-7112 | TF 800.824.9797 | T 406.896.2400 | F 406.252.8600 | EOE 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 or significant deficiencies may exist that were not identified. 255 199 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from 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 financial statements. 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. 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 City’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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Billings, Montana December 20, 2024 256 200 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance The City Commission City of Bozeman, Montana Report on Compliance for Each Major Federal Program Opinion on the Major Federal Program We have audited City of Bozeman’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal program for the year ended June 30, 2024. The City’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2024. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. What inspires you, inspires us. | eidebailly.com 401 N. 31st St., Ste. 1120 | P.O. Box 7112 | Billings, MT 59103-7112 | TF 800.824.9797 | T 406.896.2400 | F 406.252.8600 | EOE 257 201 Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. •Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 258 202 Report on Internal Control over Compliance 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 a 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 Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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. Billings, Montana December 20, 2024 259 203 City of Bozeman, Montana Schedule of Expenditures of Federal Awards Year Ended June 30, 2024 Federal Pass-through Financial Entity Assistance Identifying Federal Grantor/Pass-Through Grantor/Program or Cluster Title Listing Number Expenditures U.S. Department of Agriculture Passed through Montana Department of Natural Resources and Conservation: Cooperative Forestry Assistance 10.664 FHE-21-101 2,603$ Total U.S. Department of Agriculture 2,603 U.S. Department of Interior Passed through Montana Historical Society: Historic Preservation Fund Grants-in-Aid 15.904 MT-23-012 8,000 Total U.S. Department of Interior 8,000 U.S. Department of Justice Direct Program: Treatment Court Discretionary Grant Program 16.585 15PBJA-23-GG-04278-DGCT 63,558 Bulletproof Vest Partnership Program 16.607 10,411 Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-23-GG-03578-JAGX 2,410 Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-23-GG-03578-JAGX 2,115 Passed Montana Department of Crime Control: National Criminal History Improvement Program 16.554 2020-RU-BZ-K026 3,378 Passed through Haven: 16.738 Rural FY21-24 BvsA-BPD 5,989 Passed through Gallatin County: 16.738 2024055 70,188 Total U.S. Department of Justice 158,049 U.S Department of Energy Passed through Montana Department of Environmental Quality State Energy Program 81.041 EE-0008656 12,000 Total U.S. Department of Transportation 12,000 U.S. Department of Homeland Security Passed through Montana Disaster and Emergency Services: Homeland Security Grant Program (Fire)97.067 EMW-2021-SS-00042 34,336 Homeland Security Grant Program (Fire Dept. HazMat)97.067 FY23 SHSP Bozeman FD Hazmat 11,119 Homeland Security Grant Program (Police)97.067 EMW-2022-SS-00078 1,123 Total U.S. Department of Homeland Security 46,578 U.S Department of Transportation Passed through Montana Department of Transportation: Highway Traffic Safety State and Community Highway Safety 20.6 00-03-09-02 593 National Priority Safety Programs 20.616 00-03-09-02 1,229 State and Community Highway Safety 20.6 112824 620 National Priority Safety Programs 20.616 112824 371 Total U.S. Department of Transportation 2,813 U.S. Department of Treasury Direct Program: COVID 19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 4,115,310 Passed through Montana Department of Natural Resources and Conservation: COVID 19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 Various 1,223,374 Total U.S. Department of Treasury 5,338,684 Total Federal Financial Assistance 5,568,727$ Edward Byrne Memorial Justice Assistance Grant Program: Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program Edward Byrne Memorial Justice Assistance Grant Program: Missouri River Drug Task Force 260 204 City of Bozeman, Montana Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2024 Note A - Basis of Presentation The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the City of Bozeman, Montana (the City) under programs of the federal government for the year ended June 30, 2024. The information is presented in accordance with the 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). Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the City. Note B - Significant Accounting Policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal assistance has been provided to a subrecipient. Note C - Indirect Cost Rate The City has not elected to use the 10% de minimus cost rate. 261 205 City of Bozeman, Montana Schedule of Findings and Questioned Costs Year Ended June 30, 2024 Section I – Summary of Auditor’s Results FINANCIAL STATEMENTS Type of auditor's report issued Unmodified Internal control over financial reporting:Material weaknesses identified No Significant deficiencies identified not considered to be material weaknesses None Noncompliance material to financial statements noted?No FEDERAL AWARDS Internal control over major program: Material weaknesses 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 Uniform Guidance 2 CFR 200.516:No Identification of major programs: Federal Financial Assistance Listing Covid 19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 Dollar threshold used to distinguish between type A and type B programs:$750,000 Auditee qualified as low-risk auditee?Yes Name of Federal Program 262 206 City of Bozeman, Montana Schedule of Findings and Questioned Costs Year Ended June 30, 2024 Section II – Financial Statement Findings Our audit did not disclose any matters required to be reported. Section III – Federal Award Findings and Questioned Costs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a.) Section IV – State of Montana Compliance Findings Our audit did not disclose any matters required to be reported. 263 Summary Schedule of Prior Year Audit Findings Financial Statement Findings Finding 2023-001: Street Impact Fees -Assessment Initial Fiscal Year Finding Occurred: 2023 Finding Summary: The City of Bozeman (City) did not have adequate internal controls to ensure street impact fees were assessed and recorded consistently and that adequate documentation was maintained to support the amounts that were charged. Status: The City should enhance internal controls to ensure street impact fees are consistently assessed and appropriately recorded and that documentation is maintained to support the inputs into the calculations performed. This recommendation has been implemented. Federal Awards Findings No findings reported. 207 264 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Mike Maas, City Clerk Brit Fontenot, Economic Development Director SUBJECT:Appointments to the Economic Vitality Board MEETING DATE:January 14, 2025 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Consider the Motion: I move to appoint up to three members to the Economic Vitality Board to a term ending December 31, 2026. AND I move to appoint [INSERT NAME] as the Chair, and [INSERT NAME] as the Vice-chair of the Economic Vitality Board. 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:The Economic Vitality Board has three positions available due to the expiration of terms. The new terms expire December 31, 2026. The City Clerks Office posted the vacant position online and ran a legal ad in the Bozeman Daily Chronicle. Applications were open and accepted until November 8, 2024. Five applications were received. An interview panel was held in conformance with Resolution 5323. The roles of Chair and Vice-chair will also need to be appointed. UNRESOLVED ISSUES:None ALTERNATIVES:As per Commission FISCAL EFFECTS:None Attachments: Danielle Rogers.pdf 10-03-24 - CAB Applications - Reed Newman.pdf 10-18-24 - CAB Applications - Albert Jones.pdf 11-07-24 - CAB Applications - Will Shepherd.pdf 265 11-08-24 - CAB Applications - Nathan Stein.pdf 03-12-24 - CAB Applications - Darrell Cherry.pdf Report compiled on: December 2, 2024 266 From:webadmin@bozeman.net To:Agenda Subject:Citizen Advisory Board Application Date:Monday, September 27, 2021 5:03:44 PM A new entry to a form/survey has been submitted. Form Name:Citizen Advisory Board Application Date & Time:09/27/2021 5:03 PM Response #:24 Submitter ID:44042 IP address:71.15.199.23 Time to complete:28 min. , 10 sec. Survey Details Page 1 WELCOME Thank you for your interest in joining a Citizen Advisory Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Advisory Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerk's Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerk's Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT 267 Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323. Applicant Information First Name Danielle Last Name Rogers Physical Address 509 N Ferguson PO Box (if different from physical address) Unit C City Bozeman State Montana Zip Code 59718 Primary Phone (406) 587-2450 Additional Phone (406) 589-5286 Current Occupation Christian Education Director Employer Pilgrim Congregational UCC Email rogersmt@mail.com Which position are you applying for? (○) Economic Vitality Board Do You Live in the City Limits? (Some positions do require you live within Bozeman city limits while others do not.) (○) Yes How long have you lived in the Bozeman Area? (○) 11 years or more Have you ever served on a City or County Board or Commission? (○) No Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I am very invested in serving on the Economic Vitality Board and addressing some key areas impacting moderate and lower income earners. I have lived in Bozeman for almost thirty years and our explosive growth and rising property costs, has made it difficult for people to enter the housing market or rent apartments and homes. Stagnant wages and our current health crisis has made many Bozeman residents move to less expensive areas or find themselves housing insecure. Currently I am a TRI-Chair for the Montana Poor People's Campaign. This important organization reformed in 2018 to finish Rev. DR. Martin Luther's King's vision by addressing five interlocking injustices: one of which is systemic poverty. Our committee is a grass roots effort and encourages personal narratives by impacted individuals to become advocates for change. I believe systemic poverty is not a result of one's moral failure or lack of good judgment. Instead it is a societal failure. I also am a ordained Minister and currently am the Christian Education Director for Pilgrim Congregational UCC Church. My denomination is actively involved in 268 addressing the needs of the poor and work side by side with other non profit organizations. I have organized various supply and clothing drives with our Indigenous Leaders and Hopa Mountain during the Covid-19 Crisis. I have served on the Ethics Committee for Bozeman Deaconess Hospital during the 2020 Covid-19 crisis. I have also served on The American Red Cross disaster Action team. Lastly I have lived bellow the poverty line as a child and young adult, and faced housing insecurity. I am aware of the myriad of emotions and stress this creates on one's emotional and physical health. My experience would bring a personal narrative and real world example of how one survives in Bozeman while being a lower earner. I know this community very well, and hope to serve on this board and bring more personal knowledge and concrete resources to the table. My work as a Tri-Team Chair with the MT Poor People's Campaign and my current work in Ministry brings a great deal of first hand knowledge. The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. Diversity, Equity and Inclusion is very important and I am glad to see this be a active part of this committee. I am biracial of African American and South Asian ancestry. I first moved to Bozeman in 1992 with my Mother Rev. Denise Rogers who passed in 2019. During the early 90's White Supremacist groups were canvasing areas and Bozeman became a hotspot. My Mother and I formed The Montana Hate Free Zone to galvanize the community, denounce white supremacy and engage in conversations about race. For over twenty years I helped plan Rev. Dr. Martin Luther King celebrations, Kwanzaa Celebrations, I spoke to various Interfaith groups. I organized rallies against the detainment of children at our borders and spoke at the 2020 Women's March in Bozeman. Personally I joined a historical Black Sorority, and was a member of the Montana NAACP during it's brief MT Chapter inception. I was a keynote speaker at MSU in 2020 for their Toni Morrison Celebration event. Currently I have advocated for the passing of our Bozeman School Board's Equity Policy and founded the Bozeman Pro Equity Majority group with several others invested in seeing this policy passed. As a person of color who remembers the various physical threats my Mother faced and has decided to call Bozeman home, I do bring a wealth of personal narratives and a perspective. Having more diverse voices helps ensure this committee is helping address issues for all Bozeman residents including many not currently afforded a sit at any table. My long collective memory of the past may also bring fresh ideas and other networks to help with this important work. Presently I am a member on the Bozeman Task Force for CEDAW initiative which address the elimination of discrimination against women and girls and the safety of women and girls in our community. References: Please provide name, phone, and email contact information for two references. Reference 1 Carson Taylor (406) 587-2356 Email carsongtaylor@gmail.com Reference 2 Bonnie Sachatello-Sawyer Executive Director of Hopa Mountain (406) 586-2455 Email bsawyer@hopamountain.org The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? (○) Yes How did you hear about this board or vacancy? from Montana Now and Jan Strout Is there any other information that you feel we need to know? I am Asthmatic and have fibromyalgia, a neurological pain condition. I am hoping if offered a position on 269 this Super Board we will have a option for Zoom meetings especially during this Covid-19 health crisis. I would like the committee to provide areas for people of all abilities to engage in this work safely. Having voices with disabilities is important for equity work and I ask that you discuss accommodating those of us wanting to serve but may have to do so remotely at times. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Mike Gray, at 582-3232 (TDD 582-2301). Please note that for most Citizen Advisory Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Thank you, City Of Bozeman This is an automated message generated by Granicus. Please do not reply directly to this email. 270 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Reed Newman * Residential Address 3016 West Villard Street E Bozeman MT 59718 * Primary Phone (406) 600-3513 * Current Occupation Civil Litigation Paralegal * Employer Baldwin Law PLLC * Email reed.jnewman@outlook.com Which position are you applying for? Economic Vitality Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 11 years or more * Have you ever served on a City or County Board or Commission? No Where, how long, and what Board? **SKIPPED** * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. Since my start in the legal field, I have become intimately aware of the civil processes and local regulations that govern our city. I've also had the privilege of reading hundreds of pages of Montana government literature due to my job position. Personally, I feel deeply connected to Bozeman; I've lived here for 20 years now and have seen much change in the area and would love to be a part of enacting that change. I can bring a fresh, considerate, and intelligent perspective to the board. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. My efforts to expand my understanding of DEI have largely consisted of keeping an open mind. I travel, learn, and continue to experience cultures and experiences other than the ones I was raised with/within. As a young graduate, my proximity to the vast diversity at the local university has contributed greatly to this. Additionally, the nature of my job requires that I converse often with people in other areas, further broadening my diversity exposure. Page | 1 271 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Andrew Houser * Phone (406) 599-9658 * Email ahouser78@yahoo.com * Reference #2 Full Name Meghan Dayton * Phone (406) 223-8234 * Email dayton.meghan@gmail.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? Bozeman Daily Chronicle Is there any other information that you feel we need to know? I'm a Notary Public, if that impacts anything. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 272 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Albert Jones * Residential Address 111 W. Lamme Street Apt. 305 Bozeman Montana 59715 * Primary Phone (850) 274-9348 * Current Occupation Attorney * Employer Goetz, Geddes & Gardner P.C. * Email albertandcolleenjones@gmail.com Which position are you applying for? Economic Vitality Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 1-5 years * Have you ever served on a City or County Board or Commission? No Where, how long, and what Board? **SKIPPED** * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I have worked on municipal and planning matters as a summer associate at a law firm. Before that, I was an Army officer, part of which included training in evaluating the characteristics of urban environments from a wholistic standpoint (PMESII-PT). I have a master's degree in Higher Education Administration, which included courses in resource management and college campus/community analysis. I am interested in the economic challenges that a rapidly-expanding community faces. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. I have studied the effects of discrimination through legal cases, including instances of intersectional discrimination, age discrimination, veterans status, and religious inclusion. I have also worked at an HBCU as an ROTC instructor and have done my best to meaningfully engage with people from all socioeconomic strata. Page | 1 273 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Jeffrey Tierney * Phone (406) 788-5063 * Email jtierney@goetzlawfirm.com * Reference #2 Full Name Devlan Geddes * Phone (406) 579-9204 * Email devlan@goetzlawfirm.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? Website Is there any other information that you feel we need to know? I like to consider dynamic and difficult challenges that have to be worked out over time. I think the EVB is a great place to grapple with problems of growth that play out in the long term. We have loved Bozeman since moving here, and I am excited to find some way to serve the community, even as it changes under our feet. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 274 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Will Shepard * Residential Address 216 N 5th Ave Bozeman MT 59715 * Primary Phone (802) 359-3886 * Current Occupation Government Affairs Director * Employer Gallatin Association of Realtors * Email will.mc.shepard@gmail.com Which position are you applying for? Economic Vitality Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 6-10 years * Have you ever served on a City or County Board or Commission? Yes Where, how long, and what Board? City of Bozeman's Economic Vitality Board - 8 months. * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I am invested and active in the community, politically attuned, and full of hope that Bozeman will continue to be a welcoming place for all people and businesses. I will bring a young adult Bozeman perspective, well-versed in every BZN and County policy, balanced political viewpoints, experience, and passion to this board. With diverse professional experience and an MSU PSCI degree, above all else, I am an engaged BZN resident, I research diligently, listen well, and seek compromise. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. A highlight of being in Bozeman politics is helping bolster and enact the Belonging in Bozeman plan. I work actively on the Regional Housing Coalition to find equitable solutions to the county’s housing crisis. I read up on and engage in conversations that expand my perspective, knowledge, and understanding to better support local DEI efforts. I believe that broadening my perspective, actively participating, and genuine interest are crucial aspects to making positive strides in DEI efforts. Page | 1 275 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Sam Jackson * Phone (980) 348-7999 * Email samuelpate91@gmail.com * Reference #2 Full Name Gianna Paglia * Phone (914) 815-7949 * Email Giannampaglia@gmail.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? BZN email list & Brit Fontenot. I also served on this Board last year and have been hoping to serve on it again. Is there any other information that you feel we need to know? Participation in local government is the single most important way to enact positive change. Ensuring that all political perspectives are valued, accounted for, and considered is equally important for positively impacting BZN and the community. I pride myself on giving valuable feedback on policies, plans, and goals. I will bring energy and a fresh perspective. I will serve on this Board as a BZN resident, not an employee of GAR, please do not discount my application for that reason. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 276 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Nathan Stein * Residential Address 2220 Remington Way Unit 213 Bozeman MT 59718 * Primary Phone (847) 420-6800 * Current Occupation Executive Director * Employer Headwaters Community Housing Trust * Email nathanandrewstein@gmail.com Which position are you applying for? Economic Vitality Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 1-5 years * Have you ever served on a City or County Board or Commission? No Where, how long, and what Board? **SKIPPED** * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. As a young professional, a renter, and the Executive Director of an organization deeply invested in the future of this community, specifically at the intersection of housing and economic opportunity. I am eager to learn, engage with, and support the City's efforts to build a Bozeman where everyone can thrive. We need to be learning from, partnering with, and mobilizing our business community towards solutions to the challenges we're facing, and I'd love the opportunity to be a part of that work. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. DEIJ work has been a deeply rewarding growth area for me over the last years. A big part of my worldview is informed by the fact that I am incredibly privileged in many ways, and I think I have a responsibility to use my position to make things better for other people. When thinking about economic development, it's vital to understand structural and historic inequities, strive to correct them, and ensure that prosperity is shared with BIPOC communities that have too often been excluded. Page | 1 277 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Carson Taylor * Phone (406) 579-7423 * Email carsongtaylor@gmail.com * Reference #2 Full Name Stephanie McDowell * Phone (406) 548-4248 * Email smcdowell@bridgercare.org * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? I was notified by Kelly Pohl of a number of board vacancies. Is there any other information that you feel we need to know? I work with City Staff in my day job and deeply value those partnerships -- I want to note here that I trust them and sitting board members completely to fill these vacancies in the way that best serves the community, and I'll support their appointment decisions 100%, even if I'm not selected! Thank you all for all you do. -Nathan If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 278 WELCOME Thank you for your interest in joining a Citizen Advisory Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Advisory Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323. Applicant Information * Full Name Darrell Cherry * Residential Address 894 Ferguson Ave. Bozeman MT 59718 * Primary Phone (312) 810-4292 * Current Occupation retired * Employer N/A * Email darrellcherry2@gmail.com Which position are you applying for? Economic Vitality Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 6-10 years * Have you ever served on a City or County Board or Commission? No Where, how long, and what Board? **SKIPPED** * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I am the former COO of the Ridge Athletic Club, have orchestrated multi-million dollar financial turnarounds for companies, have trained hundreds of people in customer service and sales, am excellent with program development, and am an avid reader and writer. I was initially torn between applying for the At Large position available with the library or the Economic Vitality Board, but it appears that the Library position is filled, so my decision was made for me. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. As a veteran with a disability, I am astutely aware of the DEI challenges that take place nationally and at the local level. As a board member of the Gallatin Valley YMCA, we take diversity very seriously and are continually looking for ways to address this problem in our non-profit arena. Page | 1 279 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Jeff Schlauch * Phone (406) 570-1784 * Email jschlauch@gmail.com * Reference #2 Full Name Steve Roderick * Phone (406) 570-3636 * Email steve@ridgeathletic.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? Bozeman website Is there any other information that you feel we need to know? Along with being on the board of directors for the YMCA, I am also considering joining the board for the Sweet Pea Festival. However, if I receive the honor of getting this position, I will forego joining the Sweet Pea board. Also, my disability, though getting better, does make mobility challenging at times. I use a walking stick but feel that I am getting better each day. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Mike Gray, at 406-582-3232 (TDD 406-582-2301). Please note that for most Citizen Advisory Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 280 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Mike Maas, City Clerk Chris Saunders, Community Development Manager SUBJECT:Appointment to the Community Development Advisory Board MEETING DATE:January 14, 2025 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Consider the Motion: I move to appoint up to four at-large members to the Community Development Board for terms ending December 31, 2027. 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:The Community Development Board has four positions available due to a combination of vacancy and the expiration of terms. The new terms will expire on December 31, 2027. The four at-large positions are Mayoral appointments. The City Clerks' Office posted the notice of positions online and ran a legal ad in the Bozeman Daily Chronicle. Applications were open and accepted until November 8, 2023. Six applications were received. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by the Commission. FISCAL EFFECTS:None Attachments: 01-20-23 - CAB Applications - Jason Delmue.pdf 09-11-24 - CAB Applications - Michael Stone.pdf 09-19-24 - CAB Applications - Kate Richter Green.pdf 10-16-24 - CAB Applications - Andrew Webster.pdf 11-19-24 - CAB Applications - Mark Egge.pdf 11-27-24 - CAB Applications - Lessa Millard.pdf Report compiled on: December 2, 2024 281 From:City of Bozeman, MT To:Agenda Subject:*NEW SUBMISSION* Citizen Advisory Board Application Date:Friday, January 20, 2023 4:46:57 PM Citizen Advisory Board Application Submission #:2198294 IP Address:98.127.252.86 Submission Date:01/20/2023 4:46 Survey Time:22 minutes, 45 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Read-Only Content Applicant Information Full Name Jason Delmue Residential Address 18 E. Peach St. Bozeman, MT 59715 Primary Phone 4066002896 Additional Phone Current Occupation small-scale, compatible infill development Downtown Employer My Bad Self Email delmue@yahoo.com Which position are you applying for? Community Development Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 11 years or more Have you ever served on a City or County Board or Commission? Yes 282 Where, how long, and what Board? Bozeman Area Bicycle Advisory Board from 2006 to when the advisory boards were reorganized, at which time I was the President of BABAB. Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. Keenly interested in sustainable growth and local governance and have been following the City's several plans and code updates as well as the proceedings of the Community Development Dept and Commission. Professional education in accounting, then law. Professional experience in reading and applying statutory/code regimes. Personal experience in compatible infill development Downtown, from planning through construction and site maintenance. Versed in the pressures of growth and the trade-offs. The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. I am generally familiar with DEI in our community, most regularly in the City and School District's efforts to promote DEI (and, in the case of the schools, the complimentary SEL). Specifically regarding the City of Bozeman's efforts, I read the policy review Bozeman as an Inclusive City, watched the Fall 2021 Roundtable on Equity and Inclusion, and read the quarterly Inclusive City Reports as well as saw some of the presentations to the Commission. I will continue to pay attention to this. References Read-Only Content Reference #1 Full Name Rob Pertzborn Phone 4065828988 Email rpertzborn@intrinsikarchitecture.com Section Break Reference #2 Full Name Taylor Lonsdale Phone 4065822286 Email tlonsdale@bozeman.net The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? From following the City Commission and the Community Development Advisory Board Is there any other information that you feel we need to know? I have a track record of prioritizing community benefit over personal interest. One example was pursuing bike lanes on Peach Street, on which my house fronts. Working with others on BABAB and Rob Pertzborn, we measured the street sections block by block to determine how bike lanes could fit. The solution was to remove parking on the south side of Peach (my side) and have only a bike lane. Doing so reduced the development potential of my own property (as well as removed the street parking). 283 Read-Only Content Thank you, City Of Bozeman This is an automated message generated by Granicus. Please do not reply directly to this email. 284 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Michael Stone * Residential Address 621 N 17th Ave Bozeman MT 59715 * Primary Phone (406) 945-1323 * Current Occupation Software Engineer * Employer Trinity Technology Group, Inc. * Email mfstone11235@gmail.com Which position are you applying for? Community Development Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 1-5 years * Have you ever served on a City or County Board or Commission? No Where, how long, and what Board? **SKIPPED** * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I have 10+ of experience in GIS in Montana and a robust understanding of Montana's geography. I have worked as a planner for Cascade County, MT and led the process for revising their county-wide zoning regulations and growth policy assessment during my tenure. As the GIS Manager for Gallatin County, I created the county's first road naming and addressing standards and policies. I have extensive experience in community development from these professional experiences as well as personal pursuits. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. I have actively engaged in expanding my understanding of DEI through various channels. This includes professional work in fair housing and equity, reading literature about systemic inequality, and facilitating community discussions that foster inclusivity. I also regularly reflect on my own experiences and biases, seeking feedback to improve. These efforts help me advocate for equity and create inclusive environments in both personal and professional settings. Page | 1 285 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Eric Semerad * Phone (406) 582-3050 * Email eric.semerad@gallatin.mt.gov * Reference #2 Full Name Sean O'Callaghan * Phone (406) 582-3130 * Email ean.ocallaghan@gallatin.mt.gov * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? City website Is there any other information that you feel we need to know? I am a landlord but not for property in Gallatin County. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 286 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Kate Richter Green * Residential Address 4624 McCafferty St. Bozeman MT 59718-5708 * Primary Phone (310) 699-4645 * Current Occupation Vice President Current Programming * Employer BeAlive Studios * Email kate.richter@gmail.com Which position are you applying for? Community Development Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 1-5 years * Have you ever served on a City or County Board or Commission? No Where, how long, and what Board? **SKIPPED** * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I am a fourth-generation Montanan (now raising a fifth gen here!) and a graduate of Montana State University (Go Bobcats!). I have spent the bulk of my career in entertainment and am fortunate to have relocated back to Bozeman last Summer. Bozeman today is not the Bozeman of my college days. Many positive and many negative changes have happened in recent years and I have a vested interest in this community and State. I would love to have a more active role in this beautiful town. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. Growing up in Billings I was surrounded by diversity. My mother was a teacher in low-poverty schools and my father was a prosecuting attorney. From a young age they opened my eyes to the issues that can affect people - based on socio economic disparity or other factors - and stressed the importance of helping others if you are fortunate enough to afford to volunteer time or resources. Not only do I try to engage in my community but I am now including my daughters in my efforts. Page | 1 287 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Amanda Schultz * Phone (406) 581-0881 * Email amanda.schultz@gmail.com * Reference #2 Full Name Liz Reeve * Phone (310) 745-9487 * Email lizsreeve@icloud.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? Montana Festival Is there any other information that you feel we need to know? Though I have not served on a City Board, I have served on many boards and volunteer. I was on the Board for MCFTA in Midland, Michigan for 5 years and volunteered at the local shelter as well as for various local events. Currently, I work with Haven here in Bozeman, am team Manager for my daughter's hockey team, and am very involved in their sports and academics. I also LOVE being back in Bozeman and love hiking, yoga, and DJ'ing youth hockey games. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 288 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Andrew Webster * Residential Address 880 North 15th Avenue Bozeman MT 59715 * Primary Phone (651) 380-9011 * Current Occupation Retired from a career in International Marketing * Employer None * Email andrew59715@gmail.com Which position are you applying for? Community Development Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 11 years or more * Have you ever served on a City or County Board or Commission? Yes Where, how long, and what Board? To many to list here. * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I've served on multiple city and nonprofit boards since the 1990's, including Planning Commission Chair. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. I served as a Peace Corps volunteer in the 1980's, before the term was invented. References Please provide name, phone, and email contact information for two references. Page | 1 289 * Reference #1 Full Name Kathy Webster * Phone (406) 581-7632 * Email andrew59715@gmail.com * Reference #2 Full Name Dr. Justin Eisel * Phone (218) 428-4301 * Email andrew59715@gmail.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? It was suggested I apply for it by several community members Is there any other information that you feel we need to know? **SKIPPED** If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 290 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Mark Egge * Residential Address 1548 S Grand Ave Bozeman MT 59715 * Primary Phone (406) 548-4488 * Current Occupation Transportation Planner * Employer High Street Consulting Group * Email mark@eateggs.com Which position are you applying for? **SKIPPED** Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 11 years or more * Have you ever served on a City or County Board or Commission? Yes Where, how long, and what Board? Bozeman Parking Commission (2017 – 2021), outgoing chair; Bozeman Planning Board (2019 – 2021), member; Streamline UTD Board (2020 – Present), chair. Community Development Board (Jan. 2024 – Present) * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I am a planning professional (focused on statewide transportation planning) and an AICP Certified Planner. I have been an active participant in statewide policy conversations about housing development and affordability, including as a member of the Governor’s Housing Task Force (and subtask co-lead for the Task Force’s first and third report). I’m a subject matter expert on transportation planning and the interrelationship between land use planning and multimodal transportation systems. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. Equity is central to my work in transportation planning, where we ask not just what the best projects are, but also who benefits from those investments. For instance, in the coming weeks, the Bureau of Transportation Statistics will release a new Transportation Insecurity Analysis Tool and dataset. I led the development of the tool, which supports analysis of transportation and housing costs and analysis of equity in the transportation system in terms of safety and access to daily destinations. Page | 1 291 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Randy Carpenter * Phone (406) 582-8937 * Email randy2029@gmail.com * Reference #2 Full Name Cathy Costakis * Phone (406) 581-8650 * Email costakisce@gmail.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? Current Member Is there any other information that you feel we need to know? Application to the Community Development Board If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 292 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Lessa Millard * Residential Address 614 S Ferguson Ave Ste 3 BOZEMAN Montana 59718 * Primary Phone (406) 581-5599 * Current Occupation Principal Landscape Architect * Employer inContour, Landscape Archtiecture * Email lessa@incontour.com Which position are you applying for? Community Development Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) No How long have you lived in the Bozeman Area? 11 years or more * Have you ever served on a City or County Board or Commission? Yes Where, how long, and what Board? Tree Board, 4 years; Design Review Board 4 years * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. With over 20 years in landscape architecture and as a Bozeman native, I bring a deep understanding of the city’s development needs. My four years on both the Tree Board and Design Review Board have given me valuable insight into how City Boards function and contribute to Bozeman’s growth. Currently not serving on any other boards, I have the time and commitment to dedicate to the Community Development Board. I’m passionate about responsible growth while preserving our identity. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. As a woman in a traditionally male-dominated field, I’ve gained valuable insight into the challenges surrounding diversity, equity, and inclusion, including barriers that can affect minority-owned businesses. I’ve deepened my understanding of DEI through workshops on inclusive design and community engagement. As a landscape architect, I prioritize accessibility, cultural representation, and equitable access, striving to foster inclusivity in every aspect of my work and community involvement. Page | 1 293 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Jami Lorenz * Phone (406) 207-7392 * Email jamilorenz@gmail.com * Reference #2 Full Name Scott Bechtle * Phone (406) 599-1742 * Email scottb@bechtlearchitects.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? City Board Webpage Is there any other information that you feel we need to know? Thank you for your consideration. I look forward to potentially serving on this important City Board! If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 294 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Sarah Rosenberg, Associate Planner Erin George, Director of Community Development SUBJECT:Appointment to the Historic Preservation Advisory Board. MEETING DATE:January 14, 2025 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Consider the Motion: I move to appoint to appoint one member to the Historic Preservation Advisory Board to the at-large position with a term expiring June 30, 2026. 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:The Bozeman Historic Preservation Advisory Board was created under Chapter 2, Article 5, and Division 6 of the Bozeman Municipal Code. This chapter is designed as a measure to establish a local historic preservation program designed to promote the preservation of historic and prehistoric sites, structures, objects, buildings, and historic districts by addressing historic preservation issues at the local level and integrating them into local, state, and federal planning and decision-making processes. The historic preservation program includes identification, evaluation, and protection of historic resources within the city (Ordinance No. 1180, Section 2, 1985). The Bozeman Historic Preservation Advisory Board shall serve in an advisory capacity to the City Commission and other staff members or boards seeking advice on historic preservation issues (Ordinance No. 1454, Section 2, 1998; Ordinance No. 1180, Section 3, 1985). Members are appointed to staggered two-year terms comprised of up to seven members per Ordinance 1927 via any combination of the following: 1. At least three members shall meet the Secretary of the Interior's Professional Qualification Standards in the disciplines of history, planning, archaeology, architecture, architectural history, historic archaeology, or other historic preservation-related disciplines such as cultural geography or cultural anthropology. 2. At least one member shall be an architect holding state or NCARB registration. Retired professionals shall be given consideration equal to that of practicing professionals. Residency within the city shall not be a prerequisite for membership as a professional representative. 3. At least one member shall 295 live in or own property in a Bozeman historic district, on file at the city planning office. A member may be chosen from a locally or nationally designed district. 4. At least four members shall be at-large representatives who reside or own property within the city limits. This board currently has one vacancy. The City Clerk’s Office has received one application, with their relevant qualifications indicated below: Applicant: Jim Webster, At-Large Position with a term expiring June 30, 2026. Commissioner Madgic is the City Commission liaison for this board. Bozeman Historic Preservation Advisory Board appointments are Commission appointments. UNRESOLVED ISSUES:None ALTERNATIVES:As suggested by the City Commission FISCAL EFFECTS:None Attachments: James (Jim) Webster 12-11-24.pdf Report compiled on: January 6, 2025 296 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name James (Jim) Webster * Residential Address 311 South Third Ave. Bozeman MT 59715 * Primary Phone (406) 581-8614 * Current Occupation Investment Advisor * Employer D.A. Davidson & Co. 1999-Present) * Email jwebster587@gmail.com Which position are you applying for? Historic Preservation Advisory Board Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 11 years or more * Have you ever served on a City or County Board or Commission? Yes Where, how long, and what Board? HPAB from 1993-2008; Story Mansion Task Force from 2003-2007 * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I was an active member of the HPAB on my first "go-round" serving as Chair, Vice-Chair and Secretary over my 15 year period. I was extremely active in the city's process of acquiring the Story Mansion in 2002-2003 and when City Manager Clark Johnson asked me to Co-Chair the Story Mansion Task Force right after the city purchased the property, I was inspired to do so. As a result, I was drawn into many controversial discussions and worked to always act in the best interests of the community. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. We practice DEI regularly at D.A. Davidson and there are written guidelines that speak to our adherence to them as employees. These are principles that I believe in and thus they are part of my own ethos. References Page | 1 297 Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Todd Wilkinson * Phone (406) 587-4876 * Email tawilk@aol.com * Reference #2 Full Name Allyson Brekke * Phone (406) 579-5525 * Email allycaroline@gmail.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? I understand from the city's HPO, Sarah Rosenberg, that there is a recent vacancy. Is there any other information that you feel we need to know? Thank you for considering my application. I feel that I can add some constructive ideas to the mix on the HPAB and look forward to doing so. The wheel is "spinning faster" in Bozeman, and now more than ever, we need to be thoughtful and mindful of how we face the changes that challenge our area. For the record, I have worked with my two above references on preservation issues. Todd and I are both former HPAB members and Allyson Brekke became City HPO right after the Story Mansion purchase. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 298 Memorandum REPORT TO:City Commission FROM:Alex Newby, Deputy City Clerk Mike Maas, City Clerk Ben Abbey, Chief Building Official SUBJECT:Appointments to the Building Board of Appeals MEETING DATE:January 14, 2025 AGENDA ITEM TYPE:Citizen Advisory Board/Commission RECOMMENDATION:Consider the Motion: I move to appoint up to four members to the Building Board of Appeals to terms ending December 31, 2026 or December 31, 2027. AND I move to appoint [INSERT NAME] as the Chair, and [INSERT NAME] as the Vice-chair of the Building Board of Appeals. 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:The Building Board of Appeals has five positions available due to vacancy. Two terms will end December 31, 2026 and three terms will end December 31, 2027. The five at-large positions are Mayoral appointments. The City Clerks' Office posted the notice of positions online and ran a legal ads in the Bozeman Daily Chronicle. Four applications were received. The roles of Chair and Vice-chair will also need to be appointed. UNRESOLVED ISSUES:None ALTERNATIVES:As determined by Commission. FISCAL EFFECTS:None. Attachments: 05-09-23 - CAB Applications - Eugene Graf.pdf 05-03-24 - CAB Applications - Jon Zemans.pdf 11-20-24 - CAB Applications - Thomas Kujawa.pdf 01-07-25 - CAB Applications - Andrew Arena.pdf Report compiled on: January 8, 2025 299 300 From:City of Bozeman, MT To:Agenda Subject:*NEW SUBMISSION* Citizen Advisory Board Application Date:Tuesday, May 9, 2023 3:57:30 PM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Citizen Advisory Board Application Submission #:2423956 IP Address:69.145.52.232 Submission Date:05/09/2023 3:57 Survey Time:6 minutes, 15 seconds You have a new online form submission. Note: all answers displaying "*****" are marked as sensitive and must be viewed after your login. Read-Only Content Applicant Information Full Name Eugene Graf Residential Address 211 Mathewbird Cir Bozeman, MT 59715 Primary Phone 4065798248 Additional Phone Current Occupation Home Builder Employer E.G. Construction Email eugene@eg-construction.com Which position are you applying for? Building Board of Appeals Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 301 11 years or more Have you ever served on a City or County Board or Commission? Yes Where, how long, and what Board? Bozeman planning board, bozeman economic development board 2010 era for both Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I have been in the building profession for 20+ years and believe in a positive relationship between the city staff and the professional world and a clear predictable process is detrimental for that to happen. I believe I can be a voice for both sides in conflict resolution The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. I treat everyone respectfully References Read-Only Content Reference #1 Full Name Bill Fiedler Phone 4065390959 Email bill@distinctivelighting.com Section Break Reference #2 Full Name Chris Budeski Phone 4065399711 Email chris@mad-eng.com The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? through the grapes vine Is there any other information that you feel we need to know? Read-Only Content Thank you, City Of Bozeman This is an automated message generated by Granicus. Please do not reply directly to this email. 302 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323. Applicant Information * Full Name Jon Zemans * Residential Address 1421 Kenyon Drive Bozeman MT 59715 * Primary Phone (406) 209-6840 * Current Occupation Retired Healthcare CEO * Employer The Wesley Group, Rochester, NY * Email jonz39@yahoo.com Which position are you applying for? Building Board of Appeals Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 6-10 years * Have you ever served on a City or County Board or Commission? Yes Where, how long, and what Board? Chairman, Commission to Analyze Savings & Efficiency, Office of the County Executive, Monroe County, NY (Back in the Day) * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. University of Chicago MBA, 40 years management experience. Photographer and grandfather. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. Treasurer & Director, Greater Community of Churches, Rochester, NY References Please provide name, phone, and email contact information for two references. Page | 1 303 * Reference #1 Full Name Andy Knight * Phone (406) 582-2023 * Email aknight@bozeman.net * Reference #2 Full Name George Haddenhorst * Phone (406) 860-0436 * Email Ghaddenhorst@gmail.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? Email from City of Bozeman, MT Is there any other information that you feel we need to know? Not likely. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Mike Gray, at 406.582.3232 (TDD 406.582.2301). Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 304 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Thomas Kujawa * Residential Address 2463 Blackfeet Ln Bozeman Montana 59715 * Primary Phone (406) 580-2939 * Current Occupation Structural Engineer * Employer Hicks Engineering PC * Email tkujawa@hicksengineeringpc.com Which position are you applying for? Building Board of Appeals Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 11 years or more * Have you ever served on a City or County Board or Commission? No Where, how long, and what Board? n/a * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. Tom Kujawa is a Professional Structural Engineer and Principal & VP at Hicks Engineering PC. He has extensive experience with building codes and all major building materials. He works closely with professional design teams and understands building construction, development, and community impacts. Tom has lived in Bozeman since 2003. He offers a deep understanding of the importance of building codes, development challenges, and is impartial in his approach to situations with divergent viewpoints. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. Tom has a personal appreciation for individuality and the value that it brings to a community. He prides himself on approaching situations and relationships without judgement and values how much can be learned from various peoples’ backgrounds, ideals, beliefs, struggles and identities. In larger settings, he advocates for those that may be less vocal, but nonetheless have important messages to share, and endeavors to bring all stakeholders together when making impactful decisions. Page | 1 305 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name John How * Phone (406) 589-5335 * Email john.how@montana.edu * Reference #2 Full Name Kyle Scarr * Phone (406) 461-8465 * Email Kyle.Scarr@tdhengineering.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? Ben Abbey (Bozeman Chief Building Offical) Is there any other information that you feel we need to know? As a member of the Building Code Board of Appeals, Tom will maintain impartiality while reviewing appeals, interpreting the building code, and making recommendations. He will leverage his professional experience and maintain a fair and balanced approach to the challenges and requests he will face. As a volunteer, he is committed to dedicating the necessary time to review each application in detail and provide objective findings and recommendations. He would be honored to serve on the Board. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 306 WELCOME Thank you for your interest in joining a City Board. The City of Bozeman elected officials and staff believe in the value of public participation and local governance in the decision-making process and encourage all interested members of our community to apply. As set forth in Resolution 5323, the City is committed to building Boards that advance the City’s goals of increasing diversity, equity, and inclusion. Because of this goal, the City is actively working to achieve membership that reflects, at the least, the demographics of our community. Women, minorities, individuals with disabilities, veterans, and other underrepresented groups are encouraged to apply. CONTACT INFORMATION The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. The City will need to communicate with all board members via email for a number of annual communications, so a valid email address is required for all applicants. Please notify the City Clerks' Office if your email address changes for any reason. Please note that your application will become public information. All required fields are marked with a red asterisk *. STANDARDS OF CONDUCT Each official and employee serving on a multimember agency is expected to devote the time and effort necessary to ensure the successful functioning of such agency (Bozeman Municipal Code, Section 2.03.490.C.). Additional standards of conduct and norms are included in Resolution 5323 and Ordinance 2157. Applicant Information * Full Name Andrew Arena * Residential Address 1007 S. Bozeman Ave. Bozeman MT 59715 * Primary Phone (406) 539-3640 * Current Occupation Sales Lead/ Estimator * Employer DP Doors & Millwork * Email arenaconstruction.mt@gmail.com Which position are you applying for? Building Board of Appeals Do you live in City Limits? (Some positions do require you live within Bozeman city limits, while others do not.) Yes How long have you lived in the Bozeman Area? 6-10 years * Have you ever served on a City or County Board or Commission? No Where, how long, and what Board? **SKIPPED** * Please describe your professional and personal experiences, interest, and qualifications that make you a good fit for this board. I’ve worked in the trades for 17 years, starting in hardscape and masonry during high school summers and transitioning to frame-to-finish carpentry after earning an AS in Construction Technology from Southern Maine Community College. I’ve managed diverse construction projects and owned a remodeling business before shifting to sales. My background as a freelance writer has helped to blend my industry expertise with strong communication skills, making me a prime candidate for this position. * The City of Bozeman strongly values diversity, equity and inclusion (DEI). Describe any efforts you have engaged in to expand your understanding of DEI. I recently began organizing adult rec volleyball open gyms with Overtime Sports. This experience has enhanced my understanding of diversity, equity, and inclusion. It’s taught me to foster connections across diverse backgrounds, ensure fair play, and create a welcoming space. Creating balanced participation, resolving conflicts, and addressing biases emphasized the importance of empathy, clear communication, and providing equitable opportunities to build an inclusive and collaborative community. Page | 1 307 References Please provide name, phone, and email contact information for two references. * Reference #1 Full Name Gordon Smith * Phone (650) 245-3118 * Email gsmith@raindale.com * Reference #2 Full Name Shawn Holmes * Phone (406) 220-1284 * Email s.holmes@dpdoorsmt.com * The Bozeman City Charter, voted in by the citizens of Bozeman in 2008, requires annual ethics training. If appointed, do you understand you will be expected to take online and in person ethics training? Yes How did you hear about this board or vacancy? My friends Ashlie Gilbert and Shelby Smith. Is there any other information that you feel we need to know? Given the opportunity, I would be excited to put my building and construction knowledge to use in a new and different application. If you have a disability that requires assistance or need accommodations, please contact our ADA Coordinator, Max Ziegler, at 406.582.2439. Please note that for most City Boards, materials are distributed electronically for each meeting. Your application and all information submitted is considered a public record. All applications are included in the City Commission’s Meeting materials for consideration which are electronically archived and available to the public. Page | 2 308 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 1 CITY OF BOZEMAN GRANT AGREEMENT HRDC IX, Bozeman Warming Center THIS AGREEMENT is made and entered into this 21st day of January, 2025 by and between the City of Bozeman, Montana, a self-governing municipal corporation operating pursuant to its Charter and the laws of the State of Montana, located at 121 N. Rouse Ave., Bozeman MT 59771 (“City”) as GRANTOR and HRDC IX a non-profit organization located at 32 S. Tracy Ave., Bozeman, MT as GRANTEE. WHEREAS, on October 17, 2005 the Bozeman City Commission adopted Resolution No. 3866 establishing policies for the granting of funds from the City of Bozeman to a requesting entity; and WHEREAS, HRDC IX submitted a proposal to the City Commission for a grant of $500,000 for for overnight staffing of the Warming Center from April to October and onsite security (the “Project”) that would benefit from the City funding; and WHEREAS, the City Commission may make grants of money for public purposes pursuant to Sect. 7-1-4124(9), MCA; and WHEREAS, the City Commission determines the granting of funds under this Agreement is for a public purpose benefitting the community by providing emergency shelter to people experiencing homelessness in alignment with City of Bozeman’s Strategic Plan (3.2); and WHEREAS, on June 25, 2024, the Commission appropriated $360,000 for the Project. THE PARTIES AGREE: 1. The Grant. The City will grant and release to GRANTEE a sum of up to three hundred sixty thousand dollars ($360,000) from its General Fund (the “Grant”) pursuant to the payment terms in Section 4. 2. Term of Grant. This Agreement becomes effective on the date of signing and shall terminate on June 30, 2025. 3. Use of Grant Funds. Grant funds in the amount of up to three hundred sixty thousand dollars ($360,000) will be used by GRANTEE for the sole purpose of funding overnight staffing of the Warming Center from April to October as described in the proposal submitted by GRANTEE to the City Commission, attached hereto as Exhibit A and by this reference incorporated herein. Eligible expenses must be incurred during the term of this Agreement and service city of Bozeman residents. Eligible expenses must be requested for reimbursement no later than July 20th, 2025, following the expiration of this Agreement. Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 5309 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 2 4. Payment of Grant Funds a. The City will remit the Grant funds to the GRANTEE following the execution of this Agreement. b. Modifications to the scope of work or term of this Agreement must be submitted as a written request by the GRANTEE. The City’s Director of Finance must review and approve all requests prior to the expiration of this Agreement. c. The City will have no obligation to pay any Grant funds unless at the time of the request for payment (i) all of GRANTEE’s representations as set forth in Section 5 are true and correct, and (ii) GRANTEE is not in breach of any term of this Agreement. If any of the above conditions are not satisfied in sole the determination of the City, the City shall have no obligation to make payment and the City’s determination to refrain from paying, or its inability to pay, any of the Grant funds shall not be or result in a default of this Agreement. 5. Grantee Representations a. GRANTEE has familiarized itself with the nature and extent of this Agreement and with all local conditions and federal, state, and local laws, ordinances, rules, and regulations that in any manner may affect GRANTEE’s performance under this Agreement. b. GRANTEE represents and warrants to City that it has the experience and ability to perform its obligations under this Agreement; that it will perform said obligations 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 for GRANTEE to meet this warranty. c. GRANTEE represents and warrants to City that the Grant funds are necessary to accomplish the financial requirements of the Project and that the Project will benefit City of Bozeman citizens. 6. Reports/Accountability/Public Information. If Grant funds are paid to GRANTEE, GRANTEE will provide to the City a formal written report that includes, at a minimum, the proof of expenses paid. GRANTEE will also provide to the City Commission a formal presentation that includes detail regarding use of Grant funds. GRANTEE agrees to develop and/or provide such other documentation as requested by the City demonstrating GRANTEE’s compliance with the requirements of this Agreement. Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 6310 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 3 GRANTEE must 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 monies provided to GRANTEE pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. GRANTEE will retain such records for seven years after receipt of final payment under this Agreement unless permission to destroy them is granted by the City. GRANTEE shall not issue any statements, releases or information for public dissemination without prior approval of the City. 7. Permits and Compliance With Laws. GRANTEE 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 Project. 8. Independent Contractor Status. The parties agree that GRANTEE, its agents, employees, contractors, or subcontractors, are independent contractors for purposes of this Agreement and are not to be considered employees or agents of the City for any purpose. GRANTEE and its agents, employees, contractors, or subcontractors are 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. GRANTEE, its agents, employees, contractors, or subcontractors, are not authorized to represent the City or otherwise bind the City in any way. 9. Default and Termination. If GRANTEE fails to comply with any condition of this Agreement at the time or in the manner provided for, the City may terminate this Agreement if the default is not cured within fifteen (15) days after written notice is provided to GRANTEE. The notice will set forth the items to be cured. If this Agreement is terminated pursuant to this Section, GRANTEE will repay to the City any Grant funds already delivered to GRANTEE for the Project. 10. Limitation on GRANTEE’s Damages; Time for Asserting Claim a. In the event of a claim for damages by GRANTEE under this Agreement, GRANTEE’s damages shall be limited to contract damages and GRANTEE 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 GRANTEE wants to assert a claim for damages of any kind or nature, GRANTEE must first 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 ninety (90) days of the facts and Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 7311 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 4 circumstances giving rise to the claim. In the event GRANTEE fails to provide such notice, GRANTEE shall waive all rights to assert such claim. 11. Representatives a. City’s Representative. The City’s Representative for the purpose of this Agreement shall be Director of Finance, Melissa Hodnett or such other individual as City may designate in writing. Whenever approval or authorization from or communication or submission to City is required by this Agreement, such communication or submission must be directed to the City’s Representative and approvals or authorizations will be issued only by such Representative; provided, however, that in exigent circumstances when City’s Representative is not available, GRANTEE may direct its communication or submission to other designated City personnel or agents and may receive approvals or authorization from such persons. b. GRANTEE’s Representative. GRANTEE’s Representative for the purpose of this Agreement shall be Heather Grenier or such other individual as GRANTEE designates in writing. Whenever direction to or communication with GRANTEE is required by this Agreement, such direction or communication must be directed to GRANTEE’s Representative; provided, however, that in exigent circumstances when GRANTEE’s Representative is not available, City may direct its direction or communication to other designated GRANTEE personnel or agents. 12. Indemnity/Waiver of Claims/Insurance. To the fullest extent permitted by law, GRANTEE agrees to defend, indemnify and hold the City and its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) harmless against all third party claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, which arise out of, relate to or result from GRANTEE’s (i) negligence, or (ii) willful or reckless misconduct. 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 indemnitee(s) which would otherwise exist as to such indemnitee(s). GRANTEE’s indemnification obligations under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should any indemnitee described herein be required to bring an action against GRANTEE to assert its right to defense or indemnification under this Agreement or under GRANTEE’s applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 8312 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 5 indemnification or defense but only if a court of competent jurisdiction determines GRANTEE was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against 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. GRANTEE also waives any and all claims and recourse against the City or its officers, agents or employees, 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 his 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. In addition to and independent from the above, GRANTEE shall at GRANTEE’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 GRANTEE in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by GRANTEE in this Section unless and to the extent coverage for such liability is not reasonably available. 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 and GRANTEE 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 The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional 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 delivery of Grant funds to GRANTEE. GRANTEE shall notify City within two (2) business days of Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 9313 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 6 GRANTEE’s receipt of notice that any required insurance coverage will be terminated or GRANTEE’s decision to terminate any required insurance coverage for any reason. 13. Nondiscrimination, Equal Pay. GRANTEE agrees that all hiring by GRANTEE of persons performing this Grant Agreement shall be on the basis of merit and qualifications. GRANTEE will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. GRANTEE 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. In addition, GRANTEE 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). GRANTEE must report to the City any violations of the Montana Equal Pay Act that GRANTEE has been found liable for or guilty of within 30 days of such finding for violations occurring during the term of this Agreement. GRANTEE shall require these nondiscrimination terms of its subcontractors providing services under this Grant Agreement. 14. Public Meetings and Access to Public Records a. Meetings of GRANTEE that pertain to the receipt or expenditure of Grant funds from the City may be subject to the open meeting requirements of Montana law, including those set forth in Title 7, Chapter 1, Part 41, MCA and Title 2, Chapter 3, MCA. To ensure compliance, GRANTEE must provide agendas for meetings that pertain to the receipt or expenditure of Grant funds covered by this Agreement to the City Clerk’s office no later than 72 working hours prior to meeting for notice on the City’s official posting board and any other sites deemed reasonable by the Clerk’s office. In addition, meeting minutes will be kept by GRANTEE and provided to the City Clerk’s office no later than 90 days after the meeting. These minutes shall be posted and made available to the public by the City Clerk’s office except for those minutes taken during a closed meeting in accordance with 2-3-203, MCA. Minutes taken during a closed meeting shall also be provided to the City Clerk’s office but shall be handled in accordance with the City Clerk’s regular executive session protocol and kept private in a secured cabinet. b. In accordance with 7-1-4144, MCA and subject to any applicable legal obligation to protect and preserve individual confidential or private information, upon reasonable request and at reasonable times during normal business hours, GRANTEE shall make Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 10314 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 7 such records available for inspection and copying by members of the public. GRANTEE may charge for such copying in accordance with the policies of the City, which GRANTEE hereby adopts for such purposes. c. To determine whether a meeting or part of a meeting may be closed to the public and to determine whether information contained in GRANTEE documents is protected by law from disclosure, GRANTEE may seek a determination of the City Attorney at no cost to GRANTEE. Such request and determination shall not create an attorney- client relationship between GRANTEE and the City. 15. Attorney’s Fees and Costs. In the event it becomes necessary for a party to this Agreement 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 shall be entitled to reasonable attorney’s fees and costs, including fees, salary, and costs of in- house counsel to include City Attorney. 16. Integration and Modification. This document contains the entire agreement between the parties and no statements, promises or inducements made by either party or agents of either party not contained in this written Agreement may be considered valid or binding. This Agreement may not be modified except by written agreement signed by both parties. 17. 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. 18. No Assignment. GRANTEE may not subcontract or assign GRANTEE’s rights, including the right to Grant payments, or any other rights or duties arising hereunder, without the prior written consent of City. 19. No Third-Party Beneficiary. The terms and provisions of this Agreement 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. 20. Choice of Law. This Agreement shall be governed and construed in accordance with the laws of the State of Montana without regard to conflict of law provisions. The Parties Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 11315 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Page 8 agree to submit to the personal and exclusive jurisdiction of the courts located within Gallatin County, Montana. 21. 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. 22. Severability. If any portion of this Agreement is held to be void or unenforceable, the balance of the Agreement shall continue in effect. 23. Counterparts. This Agreement may be executed in counterparts, which together constitute one instrument. 24. 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. IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year indicated below. _______________________ Date: __________ Chuck Winn, City Manager City of Bozeman _______________________ Date: __________ Heather Grenier, President and CEO HRDC IX Approved as to form: _______________________ Date: __________ Greg Sullivan, City Attorney City of Bozeman Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 12/20/2024 12316 FY 2025 Grant Agreement – HRDC IX, Bozeman Warming Center Exhibit A Exhibit A Grant Proposal Grant Project Overview: HRDC’s Warming Center is open year-round and provides a warm, safe place to spend the night while connecting guests with programming and services designed to help people get back on the path towards self-sufficiency and make their experience of homelessness rare, brief, and one-time. HRDC’s funding request is for operational funding for Shelter operations the emergency shelter. Specifically, the funding will support overnight staffing at the Warming Center from April to October. City Commission Award: On June 25, 2024, the Bozeman City Commission approved the grant award in the amount of $360,000. This grant must be used to support overnight staffing at the Warming Center from April-October. Docusign Envelope ID: 41E8B1E6-E809-4702-905E-8BBABAC39A00 13317