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HomeMy WebLinkAboutFiscal Year 2024 Approved Budget, City of Bozeman2 3 Table of Contents BUDGET MESSAGE 5 PUBLIC SAFETY 82 POLICE 84 READERS GUIDE 7 FIRE 86 BUDGET SUMMARY 8 BUILDING INSPECTION (COMMUNITY DEVELOPMENT)88 BACKGROUND 9 PARKING (ECONOMIC DEVELOPMENT)90 AWARDS AND ACCOMPLISHMENTS 9 PUBLIC WORKS 92 ORGANIZATIONAL CHART 10 PUBLIC WORKS ADMINISTRATION 94 FUNDING STRUCTURE 11 ENGINEERING 96 BUDGET POLICIES 12 GIS/ASSET MANAGEMENT (STRATEGIC SERVICES)98 BUDGET PROCESS 13 SOLID WASTE 100 FISCAL YEAR GOALS 13 STORMWATER 102 STRATEGIC PLAN 14 STREET MAINTENANCE 104 PERFORMANCE MEASURES 16 VEHICLE MAINTENANCE 106 BUDGET SUMMARY 17 WASTEWATER- OPERATIONS 108 FUND SUMMARIES 27 WASTEWATER- WATER RECLAMATION FACILITY 110 GENERAL FUND 28 WATER- OPERATIONS 112 SPECIAL REVENUE FUNDS 32 WATER- WATER TREATMENT PLANT 114 TRANSPORTATION SPECIAL REVENUE FUNDS 32 WATER- WATER CONSERVATION 116 PROGRAM SPECIAL REVENUE FUNDS 33 PUBLIC WELFARE 118 DEBT SERVICE FUNDS 45 RECREATION (PARKS & RECREATION)120 CONSTRUCTION FUNDS 46 FORESTRY (PARKS & RECREATION)122 ENTERPRISE FUNDS 47 PARKS (PARKS & RECREATION)124 INTERNAL SERVICE FUNDS 53 CEMETERY (PARKS & RECREATION)126 PERMANENT FUNDS 54 LIBRARY 128 SUMMARY OF ALL FUND RESOURCES BY TYPE 56 ECONOMIC DEVELOPMENT 130 SUMMARY OF ALL FUND APPROPRIATIONS BY TYPE 57 SUSTAINABILITY (STRATEGIC SERVICES)132 ACTIVITY/DIVISION DETAIL 58 COMMUNITY HOUSING (COMMUNITY DEVELOPMENT)134 GENERAL GOVERNMENT 60 NON-DEPARTMENTAL 136 CITY COMMISSION 62 NON-PROFIT FUNDING 137 CITY MANAGER 64 DEBT 138 CITY CLERK 66 DEBT-LEGAL DEBT LIMIT 139 CITY ATTORNEY 68 DEBT SERVICE-PAYMENTS 140 FINANCE 70 DEBT SERVICE-AMORTIZATION SCHEDULES 141 FACILITIES MANAGEMENT 72 CAPITAL IMPROVEMENTS PROGRAM (CIP)154 INFORMATION TECHNOLOGY 74 APPENDICES 161 HUMAN RESOURCES 76 A.) ECONOMIC CONDITIONS ASSESSMENT 162 PLANNING (COMMUNITY DEVELOPMENT)78 B.) BUDGET AND FINANCIAL POLICIES 201 MUNICIPAL COURT 80 C.) LONG RANGE FINANCIAL PLANNING 207 D.) GLOSSARY OF KEY TERMS 211 E.) CITY COMMISSION ADOPTIONS 217 4 June 28, 2023 Bozeman City Commission: We are pleased to present to you the City Manager Recommended Budget for Fiscal Year 2023-2024 (FY24). This budget represents the thoughtful work of dozens of people across all departments to ensure an informed projection of FY24 in support of the City Commission Strategic Plan. Bozeman is a vital, growing, and changing city, which presents significant challenges including balancing community needs, like infrastructure and public safety, with affordability and pressure on the allocation of limited City resources. This budget focuses on maintaining or improving our level of service to the community as it relates to public safety, community health & safety, and affordable housing. The City’s total budget this year is approximately $317.9 million. This will support 510.58 full-time equivalent employees and 154.4 million in capital spending. The FY24 budget estimates an annual increase in assessments and taxes for the typical residential property of $71.85 per year or $5.99 per month. This includes mill levies, rates, assessments and other changes based on recent rate studies, growth, inflation, adopted capital plans, and Strategic Plan objectives. In all, this budget represents Bozeman’s response to the current economic conditions taking into consideration all methods possible to balance cost to residents and quality services. Revenues & Citizen Impact Overall, revenues are estimated at approximately $311.3 million, a $132.4 million increase or equivalent to a 74.0% change over the prior year budget. The large increase is due to an estimated $99 million of bond proceeds for the Bozeman Community Center and long-term debt proceeds for other projects. This year's budget process focused on the long-range planning process, and we've accomplished upgrades to financial models for over a dozen City funds. Revenue and rate increases recommended in this budget are intended to plan for the future and stabilize rate increases over time to a more consistent year over year change. Revenue and rate increases are between 4% and 12% for City utilities and assessment districts as seen in the chart below. However, new growth anticipated in taxable properties is offsetting increases, with a decrease in property tax bills for the typical homeowner. The total impact on the typical homeowner is anticipated to be 2.8% in FY24 or $5.99 per month. Expenditures Salaries & Benefits- Budgets for personnel expenditures include both increases in salary and benefit costs and the addition of positions to some departments. Like every employer across the United States, competition for qualified employees is high. The FY23 budget implemented a proactive response to these economic conditions. In order to take a strategic approach to staffing, the City of Bozeman develops a three-year staffing plan annually across the organization. For FY24, 539.74 full-time equivalent (FTE) positions are included in the budget, increasing over prior year by 20.25 FTE to address service demands across the City. Significant additions to note include 6.5 positions in Police and 3.0 positions in Fire to promote Public Safety and address a growing population and increasing complexity of crime. Other positions of note include two positions in the City Manager's Office to address Community Health & Safety issues. 5 Operating- Operating expenditure appropriations total $54.4 million in the recommended budget, which is a 0.6% increase from FY23. While inflationary factors have increased the price of operating City services, we took careful consideration with this budget presentation to reduce contingency budgets, resulting in an overall decrease of maintenance expenditures. This might result in budget amendments being required for some unexpected circumstances. Capital- Approximately $151 million in capital spending and commitments are planned in FY24, primarily for construction projects. The most significant driver is $102 million planned for the Bozeman Community Center (GF355). Three million of this project is planned to be supported by the Library Foundation and the remaining $99 million will be placed on the ballot for voter approval of a general obligation bond. Other projects include investments in recreational facilities already approved by voters, including the Swim Center, Bogert Pool, and Lindley Center. In addition, Fire Station 2 is now under contract and expected to be completed in the next year or two. Reserves The General Fund reserve policy requires a minimum of 16.67% of annual revenues. The General Fund is not the only fund with a reserve policy. Staff has reviewed all reserve policies and ensured compliance. Reserves are intended for “unexpected” events, and while they are not set-aside in restricted accounts, spending of reserves is only allowed within the City Commission’s adopted policies. This year, these dollars are being accounted for outside of the rest of the budget to ensure alignment with approval requirements should spending be necessary. To date, expenditures have not required use of reserve funds and this budget has been balanced to ensure the same this fiscal year. Looking Forward Toward the middle of FY23, the organization stabilized from significant and ongoing turnover in staffing, significantly lowering our vacancy rate from this time last year. Turnover makes it difficult for the City to move forward on key initiatives including biannual budgeting and the use of outcome measures for budgeting. Conclusion Thank you, City Commission, community members, and staff who participated in the many processes that resulted in this budget. Working together, we continue to find creative and innovative ways to deliver services and invest responsibly in our community. We are a resilient, enterprising, and creative community. The FY24 Budget is an attainable plan to provide efficient and effective services and to achieve the Commission’s vision and priorities set out in the Strategic Plan for the City of Bozeman. Respectfully, Jeff Mihelich Melissa Hodnett Kaitlin Johnson City Manager Finance Director Budget Analyst 6 Reader 7 8 Budget Summary Municipal budgets serve a number of important functions. In addition to laying out a spending plan for the City and allocating resources to meet the diverse needs of the community, Bozeman’s budget: •Is a principal policy and management tool for the City’s administration, reflecting and defining the annual work program; •Provides a framework for the City to accomplish its vision and strategic plan; and •Reflects core City values of integrity, leadership, service, and teamwork. This Budget Summary provides information about the City, along with information about the budget process, revenues, expenditures, and City programs and services. It is intended to provide an accessible, transparent way of learning about the City budget, while accurately showing how the City invests its resources. Awards and Accomplishments The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to the City of Bozeman, Montana, for its annual budget for the fiscal year beginning July 1, 2022. The City has received this award for each budget it has prepared in the past 31 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. This award is valid for a period of one year only. We believe this budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another word. 9 Governance Structure The Bozeman City Commission is composed of four members and a Mayor which are elected by the voters of the city at large in accordance with the City Charter. At every regular city election, the voters of the city shall elect a Mayor at large for a term of four years. The person so elected shall serve as Deputy Mayor and a Commissioner for the first two years of their term and Mayor for the balance of their term of office. The City Manager is selected by and is the only employee of the City Commission. The City Manager's Office is responsible for overseeing City staff and completing tasks as directed by the City Commission. Organizational Chart 10 Funding Structure To better understand this budget document, a basic understanding of the structure, frequently-used terms, and fund types is helpful. The City’s operating expenditures are organized into the following hierarchical categories: Activities, Departments, and Divisions. Activity: Activity represents the highest level of summarization used in the City’s financial structure. This level is primarily used for entity-wide financial reporting and for summarization in this budget document. Department: Department is the second level of summarization used in the City’s financial structure. This function classification represents a grouping of related operations and programs aimed at accomplishing a broad goal or providing a major service. Division: Department can be further split into divisions, which are usually associated with functioning work groups that have more limited sets of work responsibilities. Their primary purpose is organizational and budgetary accountability. Funds: The activities are funded through various means that are accounted for within specific funds. The City's fund structure is consistent with the provisions of the Government Finance Officers Association (GFOA) as outlined in their publication Governmental Accounting, Auditing, and Financial Reporting (GAAFR), which is the standard accounting guide for local governments. Governmental Funds are a group of funds that account for activities associated with the City's basic operations. This group of funds uses a modified accrual basis of accounting and focuses on operating resources and expenditures. General Fund: The General Fund is used to account for all financial resources of the City, except for those required to be accounted for in another fund. The General Fund supports such basic services as the Legislative Branch, Judicial Branch, General Administration, Police, Fire, Finance, Engineering, Recreation, and Library services. The City's General Fund is financed heavily by property taxes, which provide nearly half of the General Fund revenue. Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts, or for major capital projects) that are legally restricted to expenditure for specific purposes. Debt Service Funds: Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Capital Project Funds: Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). 11 Proprietary Fund Types: Proprietary funds are a group of funds that account for activities that are often seen in the private sector and are operated in a similar manner as in the private sector. This group of funds uses a full accrual basis of accounting and focuses on net income and capital maintenance. Enterprise Funds: Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis. Fiduciary Fund Types Fiduciary Funds are trust and agency funds that account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, or other funds. Trust Funds: Trust Funds are used to account for assets held by a governmental unit in a trustee capacity. These include (a) expendable trust funds, (b) permanent trust funds, and (c) pension trust funds. Trust Funds are supported by donations and interest income. Budget Policies State statute provides the “Local Government Budget Act” in MCA 7-6-4001. This section of the law was adopted by the 2001 Legislature to replace the “Municipal Budget Law” and other various sections of code that related to City finances. The law requires the City to adopt a balanced budget, limits the City to making expenditures or commitments in excess of approved appropriations, requires reporting to the State after final budgets and tax levies are adopted, and provides for a detailed preliminary and final budget adoption within the confines of the State determined property tax assessment time-table. The City's budget encompasses both the operating budget and the capital improvement budget. Each budget unit includes amounts appropriated for both operating expenses and capital items. See detailed Budget and Fiscal Policies in Appendix B. Basis of Budgeting The basis of budgeting and accounting refers to when a transaction or related event is recognized in an agency’s budget, or in the operating statement, both of which follow GAAP principles. All governmental funds (including the general, special revenue, debt service and capital projects funds) use modified accrual as both the basis of budgeting and for accounting/financial reporting. Under the modified accrual system, revenues are recognized in the accounting period in which they become “measurable and available.” “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Property tax is reported as a receivable and deferred revenue when the levy is certified and as a revenue when due for collection in the subsequent year. An allowance for estimated uncollectible taxes is included in the estimated tax needed to balance the budget. The basis of accounting for proprietary funds is full accrual, where revenues are recognized when earned and expenditures when they are incurred. The basis of budgeting for proprietary funds is full accrual with the exceptions of depreciation and amortization. For capital assets and capital purchases, funds are budgeted from a perspective of the actual cash outlay required (cash basis). 12 Budget Process The City plans for the long-term needs of our community through a number of efforts and studies. Consultants and staff hold numerous public hearings and advisory board meetings prior to the formal adoption by the Commission. These public hearings and advisory board meetings are open to the public during which citizens are welcome to participating in the budget process. Once adopted, we work diligently to implement the approved plan. The starting point is the Strategic Plan, followed by the other master plans that have been developed for each area of concern or study. Along with these documents, the capital improvement plan is used to budget for capital projects. The following chart outlines our process and timing for the budget. Budget amendments are proposed and adopted by the Commission on an as needed basis. City Commission Goals In addition to the adopted Strategic Plan included in the City Manager's Budget Message, Climate Action Plan, Community Affordable Housing Plan, and the Growth Policy, the City Commission of Bozeman has identified the following priorities which guide the FY24 Budget: •Become a City for CEDAW (Convention to Eliminate All Forms of Discrimination Against Women) •Increase Budget for Community & Support Services •UDC (Unified Development Code) Overhaul •Establish Mobile Crisis Response •Establish Model HOA Covenants •Develop Gallatin Valley Sensitive Lands Protection Plan •Update Codes to Encourage Wetland Preservation & Facilitate Creation of Wetland Bank •Short Term Rental Revisions •Promote Water Conservation 13 Bozeman Strategic Plan The entire Strategic Plan can be found on the City website. Below are some of the efforts towards the Strategic Plan with the Top 13 Commission Priorities highlighted (greater detail regarding strategic plan efforts by division can be found in the Activity Detail section of this document): 1) An Engaged Community. Fostering successful collaboration with other public agencies and building on our successes, which is being achieved through City-County Regional Planning. The City continues to work toward a culture of civic engagement by using our adopted communication plan for the organization to expand Community Outreach and community engagement. The City's focus for FY24 includes thoughtful engagement around major city initiatives including: UDC, Sensitive Lands, Equity & Inclusion Plan, Flower Avenue, HOA Covenants, Kagy Project. The adopted budget also includes a new Communications Specialist to support City- wide communications and engagement efforts. 2) An Innovative Economy. This plan supports retention and growth of both the traded and local business sectors in coordination with the Economic Vitality Strategy adopted by the City Commission in June 2023. Working with the City's urban renewal districts, the budget includes strategic investments in infrastructure as a mechanism to encourage economic development. The budget includes a new Grants Coordinator position to proactively, Pursue State and Federal Grants and Philanthropic Funding, which will aid the Commission in developing steps towards its priority of Property Tax Relief. Many water, wastewater, and street infrastructure projects in the Capital Improvement Plan will allow for greater economic opportunities for the community of Bozeman, especially Phases I-III of the Water Reclamation Facility (WRF) Base Hydraulic Capacity project, which will meet the City’s wastewater treatment 20-year growth planning horizon as identified in the 2022 WRF Facility Plan Update. 3) A Safe, Welcoming Community. This budget includes steps toward an Inclusive City with training and the implementation of our Belonging in Bozeman Team, and Equity & Inclusion Plan. The adopted budget includes 14 the relocation and construction of a new Fire Station #2, which will serve the growing southwest area of the City, and is consistent with the Fire Master Plan. In addition, the budget also works toward developing a Fire Department Facilities Plan. Active Recreation capital improvement projects are included throughout the General Fund Recreation Division and the Parks & Trails District Fund with many projects that encourage and promote active recreation such as the annual investment in Playground Equipment (PTD03) and the scheduled funding for Bridge Replacements in FY25 (PTD08). 4) A Well-planned City. The Parks, Recreation, and Active Transportation (PRAT) Master Plan implementation began in FY22 and will continue in FY24. Community Housing will continue the implementation of its action plan, which will provide more Affordable Housing including a commitment of 5.89 mills in this budget. We have Planning & Land Use Initiatives with the City County Regional Planning, and Unified Development Code Updates. Capital projects are budgeted to enhance non-motorized transportation, including appropriations for bike path improvements, which have been increased over prior years. Additionally, all road infrastructure projects scheduled in the Street Impact Fee Fund will include investments in bike lanes. Also in the Capital Improvement Plan budget, funding for the acquisition of LIDAR data for land management, planning, and engineering projects are included, which will aid in our efforts toward GIS Land Use & Infrastructure Development Tracking. Similarly, annual appropriations for Land Cover Acquisition have been incorporated into the plan. This data will allow the City to make data-driven decisions for future regulations and policies regarding outdoor water use. 5) A Creative, Learning Culture. The Percent for Art program has been incorporated into our Capital Improvement Plan and projects are underway including Fire Station #2. This program provides a guaranteed funding mechanism for the acquisition of artwork for new public facilities and civic spaces. The budget also includes expenditures for Public Art, which will be expended only one a policy is in place. 6) A Sustainable Environment. This Budget looks at Climate Action Plan Implementation and continues to increase the Sustainability Division’s budget from $870K in FY23 to approximately $1.1 million in FY24. The Sustainability Division budget includes a roadmap to EV charging stations in Bozeman, in addition to budget for EV station installs. The Capital Improvement Plan includes funding to pursue federal grants to further energy and resilience projects such as energy storage, renewable energy, and electrification for City infrastructure. FY24 capital also includes installation of solar panels at City facilities. All City vehicles included in the CIP will explore hybrid or electric options where available. 7) A High Performance Organization. We have completed the Advisory Board Consolidation. Throughout the organization, departments are working on collaborating and functioning as a high-performing and innovative team. Staff continues to look at rates and fees to ensure we are using equitable and sustainable sources of funding for appropriate City services with an emphasis on delivering them in a lean and efficient manner. In addition, two Capital Improvement Projects, a Facility Condition Inventory (GF346) and Facility Needs Assessment (GF369), will inform future facility needs and strive to address Strategic Plan 7.3 c to improve departmental collaboration. 15 Performance Measures The City of Bozeman relies on a variety of data to help inform decisions across the organization. Vision Statement 7 for a High Performance Organization in the City’s states the purpose of “utilizing key performance and cost measures to monitor, track, and improve the planning and delivery of City programs and services, and promote greater accountability, effectiveness and efficiency” (Strategy 7.4 – Performance Metrics). Three major focus areas of Performance Measures are utilized to manage community and employee expectations about the City’s capacity to deliver services. Many systems are currently in place to collect and visualize a wide range of data internal to the organization. Sophisticated tools such as Computerized Maintenance Management Systems (CMMS) provide detailed cost information, including time, materials, and equipment in an effort to improve efficiencies throughout operations such as Public Works. Specific Performance Measurements are updated annually to compliment the City Manager’s Recommended Budget. These Measurements help communicate trends and justify additional resources needed to maintain an acceptable level of service. Most charts include a “target” or “standard”, describing the overall goal or industry norm. Charts are included in the Activity/Department section of the budget document. At least three years of data is ideal to demonstrate trends and provide valuable context. Current fiscal year “Projection” figures represent current year estimates, while future fiscal year “Estimate” figures represent estimates for the upcoming budget cycle. Budget metrics improve confidence in municipal management, ensuring that limited resources are focused on the most pressing issues, including aging infrastructure and new growth. Overall, Performance Measurements are critical to maximizing the efficiency and effectiveness of local government. Timely and relevant metrics at all levels provide a framework for improved decision making, while resulting in a better understanding of the value of services provided throughout the community. 16 FY24 Budget Summary The City of Bozeman’s Fiscal year 2024 is estimated to receive approximately $311.3 million in revenue. FY24 Budget appropriations are just under $318.0 million. This will support 510.58 full-time equivalent employees and $154.4 million in capital spending. FY24 Financial Summary Financial Summary - Budget Fiscal Year 2023-2024 General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds Projected Beginning Fund Balance $ 11,027,500 $ 40,072,000 $ 2,000,300 $ 2,673,100 $ 29,362,500 $ 2,573,000 $ 1,769,400 $ 89,477,800 Resources 53,523,200 58,617,000 5,532,200 115,711,700 56,591,900 21,188,600 86,700 311,251,300 Appropriations 55,707,000 72,303,400 5,169,900 116,367,700 52,270,300 16,221,900 — 318,040,200 Change in Fund Balance (2,183,800) (13,686,400) 362,300 (656,000) 4,321,600 4,966,700 86,700 (6,788,900) Projected Ending Fund Balance $ 8,843,700 $ 26,385,600 $ 2,362,600 $ 2,017,100 $ 33,684,100 $ 7,539,700 $ 1,856,100 $ 82,688,900 Summary of Changes from City Manager Recommended Budget to Final Budget •Additional $50,000 towards Mobile Crisis budgeted in General Fund •Additional $10,000 for advisory board training budgeted in General Fund •Additional $8,000 to measure the impact of arts and culture budgeted in General Fund •Additional $50,000 for Perimeter Loop Trail feasibility study budgeted in Parks and Trails Special Revenue Fund •Additional $50,000 for Historic Preservation budgeted in the Community Development Special Revenue Fund •Additional $15,000 for Branch Out Bozeman program budgeted in Tree Maintenance Special Revenue Fund Fund Type Resources Appropriations City Manager Recommended Budget Commission Adopted Budget Increase / (Decrease) Percent Change City Manager Recommended Budget Commission Adopted Budget Increase / (Decrease) Percent Change General Fund 53,523,200 53,523,200 — 0.0 %55,639,000 55,707,000 68,000 0.1 % Special Revenue 58,617,000 58,617,000 — 0.0 %72,188,400 72,303,400 115,000 0.2 % Debt Service 5,532,200 5,532,200 — 0.0 %5,169,900 5,169,900 — 0.0 % Construction 115,711,700 115,711,700 — 0.0 %116,367,700 116,367,700 — 0.0 % Enterprise 56,591,900 56,591,900 — 0.0 %52,270,300 52,270,300 — 0.0 % Internal Service 21,188,600 21,188,600 — 0.0 %16,221,900 16,221,900 — 0.0 % Permanent 86,700 86,700 — 0.0 % — — — 0.0 % All Funds 311,251,300 311,251,300 — 0.0 %317,857,200 318,040,200 183,000 0.3 % 17 FY24 Mill Levies and Values MILL LEVIES & MILL VALUES FISCAL YEAR FY19 FY20 FY21 FY22 FY23 FY24 Adopted MILL VALUE (net of TIFD's)$ 104,321 $ 125,423 $ 129,537 $155,353 $159,782 $247,166 MILL VALUE (net of TIFD's) PERCENTAGE CHANGE 3.1 % 20.2 % 3.3 % 19.9 % 2.9 % 54.7 % GENERAL FUND: All-Purpose 139.69 124.79 106.18 98.66 122.79 83.30 DEDICATED MILLS (non-debt sevice): City Planning 2.00 2.00 2.00 2.00 2.00 1.46 Health/Med Insurance 25.44 22.45 21.37 17.66 14.21 10.88 Public Safety Staffing, Fire Dept Equip & Maint. 4.00 4.00 4.00 4.00 30.00 30.00 Transfer to Stormwater - Landfill Project 0.71 0.71 0.77 1.25 1.24 — Transfer to Landfill Closure - Monitoring 2.38 2.86 2.41 2.32 1.91 1.60 Senior Transportation 1.00 1.00 1.00 1.00 1.00 0.77 Community Housing 3.00 5.00 3.00 5.00 8.00 5.89 TOTAL DEDICATED MILLS 38.53 38.02 34.55 33.23 58.36 50.60 DEBT SERVICE: BPSC GO Bonds — 14.87 18.31 15.27 15.38 10.15 Park & Trail G.O.Bonds 10.38 8.58 8.31 6.96 7.00 4.49 Library G.O. Bonds 2.64 2.20 2.13 — — — Fire Station #2 G.O. Bonds — — — — 0.97 2.18 Rec G.O. Bonds * to be issued in FY2024 — — — — — — TOTAL DEBT SERVICE 13.02 25.65 28.75 22.23 23.35 16.82 TOTAL MILLS LEVIED 191.24 188.45 169.48 154.12 204.50 150.72 Percentage Change in Mills 1.9 % -1.5 % -9.9 % -8.2 % 29.7 % -34.9 % TOTAL PROPERTY TAXES LEVIED $ 19,950,675 $ 23,636,229 $ 21,953,931 $ 23,943,004 $ 32,675,419 $ 37,252,252 Percentage Change in Dollars 5.2 % 18.5 % -7.1 % 9.1 % 36.5 % 14.0 % FY19 FY20 FY21 FY22 FY23 FY24 Adopted Total Levied 191.24 188.45 169.48 154.12 204.50 150.72 Permissive & Voted Mills Used 45.46 55.09 57.12 46.89 63.56 57.70 Statutory (Floating) Mills Used 145.78 133.36 112.36 107.23 140.94 93.02 Annual Mill Levy 187.33 191.24 188.45 169.48 154.12 204.50 150.72 44.89 45.46 55.09 57.12 46.89 63.56 57.70 Total Levied Permissive & Voted Mills Used FY18 FY19 FY20 FY21 FY22 FY23 FY24 Adopted 18 Revenues The FY24 budget process focused on updating financial models to provide more informed projections over the next five to 20 years. Comprehensive models account for many factors including historic collections and estimated customer growth in order to project resources necessary to provide City services. The following details specific methods used in the budget process for estimating revenue by source. Overall, revenues are estimated at approximately $311.3 million, a $132.4 million increase or equivalent to a 74.0% change over the prior year budget. The large increase is due to an estimated $99 million of bond proceeds for the Bozeman Community Center and long-term debt proceeds for other projects. Revenue by Source for All Funds Charges for Services 23.2% Property Taxes 13.7%State Shared 4.0% County Shared 0.3% Transfers In 12.0% Debt Proceeds 39.6% Special Assessments 0.5% Miscellaneous Revenues 2.8% Licenses & Permits 1.6% Grants 1.8% Fines and Forfeitures 0.4% For the General Fund: City of Bozeman property taxes make up 49% of the revenue in the General Fund followed by 18% in other taxes shared to the City by the State of Montana, also called state shared revenue. As we begin FY24, the City is anticipated to bring forward a balance of $11.0 million which will largely remain in reserves. Revenue by Source for General Fund Property Taxes 49% State Shared 18% Charges for Services 14% Transfers In 10%Gallatin County Option 4%Fines and Forfeitures 2%County Shared 1%Licenses & Permits 1% Miscellaneous Revenues 1% 19 Property Taxes- To calculate property tax revenues, capital improvement projects, and costs for salaries and benefits were evaluated along with total mill levies available to the City, and affordability. Properties in Montana are valued every other year, reflected in the cart below. Note also, that there are two mitigating factors that slow the value change in mills: inflation and reductions in newly taxable property, both of which will lower the amount of mills and dollars available to the City per year. Mill Levy Value Change ( Value & Percentage) 13.29% 3.09% 20.23% 3.28% 19.93% 2.85% 54.69% $101,195 $104,321 $125,423 $129,537 $155,353 $159,782 $247,166 Mill Value (net of TIFD's) PERCENTAGE CHANGE Mill Value (net of TIFD's) FY18 FY19 FY20 FY21 FY22 FY23 FY24 Actual 0% 10% 20% 30% 40% 50% 60% $0 $50,000 $100,000 $150,000 $200,000 $250,000 The total property tax for the estimated median home of $467,000 (taxable assessed value) is estimated to decrease by $(54.00) per year for a total cost of $1,235.26 annually. The decrease is largely due to the significant increase in value coming from newly taxable property. The City will be utilizing 93.02 mills of the 105.13 statutory maximum available as well as 57.70 in permissive and voted mills for a total of 150.72 mills to be levied. Property Tax - Historic Mill Levy 44.89 45.46 55.09 57.12 46.89 63.56 57.70 142.44 145.78 133.36 112.36 107.23 140.94 93.02 33.01 32.99 26.54 62.51 36.81 11.30 3.78 MCA Permissive & Voted Mills Used Statutory Max (Floating) Mills Used Statutory Max (Floating) Mills NOT Used FY18 Mills Levied 187.33 FY19 Mills Levied 191.24 FY20 Mills Levied 188.45 FY21 Mills Levied 169.48 FY22 Mills Levied 154.12 FY23 Mills Levied 204.50 FY24 Actual Mills to be Levied 150.72 0.00 50.00 100.00 150.00 200.00 250.00 20 Special Assessments - City property owners pay annual Street Maintenance, Arterial Street, Tree Maintenance, and Parks & Trails assessments based on the square footage of the lot they own. Inflationary pressures in addition to the adopted Capital Improvement Plan for each district result in increases for FY24. Adopted increases are based on long-range plans. Additional information can be found in Appendix C. Assessment Increases: Streets -8% A&C -8% Tree -4% Parks -7% Utility Rates - The largest customers of City of Bozeman Utilities are residential. Single Family water and wastewater rates have been held flat since FY19, with modest increases to Multi-Family over the same period. Rate increases adopted were consistent with the rate study presented to the City Commission in January 2019, and updated in 2021. Meanwhile, the cost of providing services has continued to increase each year compared to the projections included in the study. Updated financial models are showing the need for significant rate increases to address the cost of the adopted CIP and operations over the next five years. Revenue increases of 12% are adopted for both Water and Wastewater for FY24. Adopted stormwater rates increase by 8% to support the adopted Capital Improvement Plan. Adopted increases are based on long- range plans. Additional information can be found in Appendix C. Revenue Increases: Water -12% Sewer -12% Stormwater -8% Estimated FY24 Citizen Impact It is estimated that a typical residential property owner will see an increase of $5.99 per month for taxes and assessments, or 2.8%. The typical resident is calculated using an median sized lot (7,500 sqft), median home of $467,000 (this is the estimated median home taxable value) and water use of 8.5-HCF (tier 2): Estimated Annual Service Cost for a Household Based on Taxable Value of $467,000 7,500 SQFT lot with water use of 8.5-HCF FY23 Increase / (Decrease)FY24 % Change Property Taxes $1,289.26 $(54.00)$1,235.26 (4.2) % Street Assessment $263.25 $21.06 $284.31 8.0 % Arterial Street Assessment $55.63 $4.45 $60.08 8.0 % Assessment $29.36 $1.17 $30.53 4.0 % Parks & Trails Assessment $195.02 $13.65 $208.67 7.0 % Water Service $444.30 $53.32 $497.62 12.0 % Sewer Service $234.96 $28.20 $263.16 12.0 % Stormwater Service $50.28 $4.02 $54.30 8.0 % Total Annually $2,562.06 $71.87 $2,633.93 2.8 % Per Month $213.51 $5.99 $219.49 21 Appropriations Appropriations in the FY24 Budget are classified under one of six major categories: Salaries & Benefits (also sometimes referred to as Personnel), Operations & Maintenance, Capital Outlay, Debt Service, and Interfund Transfers Out. FY24 Appropriations are $318.0 million, an increase of $97.2 million or approximately 44% over FY23. This is due to increases in capital spending for large-scale projects including the Bozeman Community Center budgeted at $102 million. The graph below shows the relative percentage of the FY24 budgeted expenditures for all funds. Appropriation by Type for All Funds Operations 17% Salaries & Benefits 21% Capital 49% Transfers 10% Debt Service 3% General Fund Appropriations The General Fund includes budgeted personnel expenditures that are 68% of total appropriations. In general, local governmental agencies see their largest percentage of expenditures as personnel. The General Fund is largely made up of Public Safety, including Police and Fire, which make up the bulk of Salaries & Benefit expenditures. The fund includes total adopted appropriations of $55.7 million in expenditures for FY24, which is a 20% increase from FY23. General Fund Appropriations by Type Salaries & Benefits 68% Operations 23% Capital 7% Transfers 2% 22 FY24 Changes in Fund Balance Estimated Beginning Fund Balance Estimated Resources Appropriations Estimated Ending Fund Balance % Change in Fund Balance Governmental Major Funds General Fund 11,027,500 53,523,200 55,707,000 $8,843,700 (19.80) % Capital Projects 2,673,100 115,711,700 116,367,700 $2,017,100 (24.54) % Nonmajor in Aggregate 42,072,300 64,149,200 77,473,300 $28,748,200 (31.67) % Total Governmental 55,772,900 233,384,100 249,548,000 $39,609,000 (28.98) % Proprietary Major Funds Water Funds 20,111,700 20,355,400 18,113,700 $22,353,400 11.15 % Nonmajor in Aggregate 9,250,800 36,236,500 34,156,600 $11,330,700 22.48 % Total Proprietary 29,362,500 56,591,900 52,270,300 $33,684,100 14.72 % Other Nonmajor in Aggregate 4,342,400 21,275,300 16,221,900 $9,395,800 116.37 % Total 89,477,800 311,251,300 318,040,200 $82,688,900 (7.59) % FY24 Fund Balance Analysis ANALYSIS OF CHANGES IN FUND BALANCE > 10% FOR MAJOR GOVERNMENTAL FUNDS GENERAL FUND The adopted FY24 Budget aims to maintain or improve Bozeman's level of service to the community of Bozeman in support of City Commission goals. The implementation of this goal is primarily recognized with new positions to support a safe, welcoming community, including three firefighters, four police officers, and two positions to begin a community health & safety program. In addition, $1.5M of General Fund beginning fund balance has been allocated to one-time non-profit grant requests. The adopted FY24 budget aims to maintain required reserves while balancing the impact on property owners in Bozeman by reducing fund balance. CAPITAL PROJECTS FUNDS The FY24 Budget assumes a spend down of reserves in the Street Reconstruction Fund to support the adopted Capital Improvement Plan, and reduce the impact on property owner assessments for street maintenance and street arterial & collector projects. Significant projects adopted for FY24 are included in the Capital Improvement Plan section of this document. ANALYSIS OF CHANGES IN FUND BALANCE > 10% FOR NONMAJOR GOVERNMENTAL FUNDS IN AGGREGATE The most significant reduction in fund balance for non-major governmental funds in aggregate is due to planned expenditures in the Tax Increment Financing (TIF) Districts, Community Housing Fund, and Fire Impact Fee Fund. TIF District funds, in aggregate, budget to spend $9.5 million in FY24. The budget includes major capital projects in FY24 that may be carried forward to future years. The Fire Impact Fee fund includes a spend down of reserves of $4.7 million, which is made up of a $3.8 million contribution to support the construction of Fire Station #2, and $1.5M for Fire Station #4. Additionally, the Community Housing Fund budget includes plan to utilize $3.5 million of fund balance to address affordable housing, a priority for Bozeman City Commission. Spend down of reserves in these funds help lessen the impact on homeowners of additional expenditures supporting Commission priorities. 23 ANALYSIS OF CHANGES IN FUND BALANCE > 10% FOR MAJOR PROPRIETARY FUNDS WATER FUNDS Fund balance for the Water Funds is projected to increase in FY24. Debt funding for capital outlay in the Water Funds is the primary reason for the projected increase in fund balance. In addition, the long-term financial plan for Water includes a build up of reserves to address unexpected repair & maintenance projects in the future. ANALYSIS OF CHANGES IN FUND BALANCE > 10% FOR NONMAJOR PROPRIETARY FUNDS IN AGGREGATE Fund balance for non-major proprietary funds in aggregate is projected to increase in FY24. The Wastewater Funds are the major contributor to the projected increase. Debt funding for capital outlay in the Wastewater Funds is the primary reason for the increase in fund balance. In addition, the long-term financial plan for Wastewater includes a build up of reserves to address unexpected repair & maintenance projects in the future. ANALYSIS OF CHANGES IN FUND BALANCE > 10% FOR OTHER NONMAJOR FUNDS IN AGGREGATE Fund balance for non-major other funds in aggregate is projected to increase in FY24. The most significant driver to this increase is in the Public Works Administration Internal Service Fund. Transfers in from other departments is the primary funding source for this fund. While an estimate for transfers in has been included in the budget, actual transfers in will be based on actual expenditures in order to support the internal service fund. 24 FY24 Detailed Changes in Fund Balance Fund Estimated Beginning Fund Balance Estimated Resources Appropriations Estimated Ending Fund Balance % Change in Fund Balance General Fund General Fund $ 11,027,500 $ 53,523,200 $ 55,707,000 $ 8,843,700 (19.80) % Special Revenue Funds American Rescue Plan 200,000 4,700,200 4,900,200 — (100.00) % Health-Medical Insurance 1,192,700 2,641,500 3,775,000 59,200 (95.04) % Building Inspection Fund 806,800 4,057,300 4,539,300 324,800 (59.74) % Community Development/Planning 1,343,600 4,877,000 4,231,100 1,989,500 48.07 % Community Housing Fund 2,155,400 1,397,300 3,552,700 — (100.00) % Fire Department Equipment (935,000) 4,188,100 2,892,800 360,300 (138.53) % Fire Impact Fee 4,964,700 621,300 5,327,900 258,100 (94.80) % Parks & Trails District 1,491,600 8,140,900 7,850,000 1,782,500 19.50 % Park Land Trust 2,017,900 1,120,900 598,700 2,540,100 25.88 % Tree Maintenance District 522,400 965,300 1,033,900 453,800 (13.13) % Street Arterial Construction District 748,000 2,592,400 2,245,500 1,094,900 46.38 % Street Impact Fee 7,490,500 6,361,400 4,758,800 9,093,100 21.40 % Street Maintenance District 1,957,900 11,157,900 10,913,100 2,202,700 12.50 % Department Special Revenue Funds 3,848,800 372,200 731,000 3,490,000 (9.32) % Lighting Districts 550,900 561,400 542,500 569,800 3.43 % Downtown Improvement District — 280,300 280,300 — — % Downtown TIFD 7,256,100 1,617,400 8,645,900 227,600 (96.86) % North Park TIFD 160,200 26,800 160,200 26,800 (83.27) % Midtown TIFD 2,979,300 2,066,800 3,546,100 1,500,000 (49.65) % Northeast TIFD 1,006,000 511,000 1,140,400 376,600 (62.56) % Pole Yard TIFD 276,500 323,500 600,000 — (100.00) % South Bozeman Technology TIFD 37,700 36,100 38,000 35,800 (5.04) % Total Special Revenue Funds 40,072,000 58,617,000 72,303,400 26,385,600 (34.15) % Debt Service Funds GO Bonds 95,300 3,995,600 4,090,900 — (100.00) % TIF Bonds — 744,100 744,100 — — % Special Improvement District Funds 1,627,300 784,100 307,800 2,103,600 29.27 % Special Improvement District Revolv. Fund 277,700 8,400 27,100 259,000 (6.73) % Total Debt Service Funds 2,000,300 5,532,200 5,169,900 2,362,600 18.11 % Construction Funds Capital Projects 2,673,100 115,711,700 116,367,700 2,017,100 (24.54) % Enterprise Funds Water Fund 20,111,700 20,355,400 18,113,700 22,353,400 11.15 % Wastewater Fund 6,592,100 24,836,800 22,020,900 9,408,000 42.72 % Stormwater Fund 513,400 2,616,600 2,497,600 632,400 23.18 % Solid Waste Fund 404,200 7,592,000 7,721,200 275,000 (31.96) % Parking Fund 1,741,100 1,191,100 1,916,900 1,015,300 (41.69) % Total Enterprise Funds 29,362,500 56,591,900 52,270,300 33,684,100 14.72 % Internal Service Funds Health-Medical Insurance ISF — 6,501,100 6,501,100 — — % Public Works Administration 3,091,400 11,081,200 6,791,200 7,381,400 138.77 % Vehicle Maintenance (518,400) 3,606,300 2,929,600 158,300 (130.54) % Total Internal Service Funds 2,573,000 21,188,600 16,221,900 7,539,700 193.03 % Permanent Funds Cemetery Perpetual Care 1,769,400 86,700 — 1,856,100 4.90 % Total Permanent Funds 1,769,400 86,700 — 1,856,100 4.90 % Total All Funds $ 89,477,800 $ 311,251,300 $ 318,040,200 $ 82,688,900 (7.59) % 25 FY24 Full-time Equivalent (FTE) Schedule The City strives to maintain service levels with a quickly growing community. A strategic approach, including three-year staffing plans, addresses needs on a citywide level. For FY24, 19.5 new FTE are included in the adopted budget. Short- term workers are not included in this schedule. Details are included on the table below: Full-time Equivalent (FTE) FY23 Ending FY24 Adds FY24 Budget FY24 Comments General Government City Commission — — — City Manager 8.00 4.00 12.00 1.0 Communications Spec, 1.0 Grants Coord., 2.0 Comm Health & Safety FTE Municipal Court 12.25 — 12.25 — City Attorney 13.00 1.00 14.00 1.0 Victims Service Advocate Finance 8.25 1.00 9.25 1.0 Senior Financial Analyst Community Development 21.00 1.00 22.00 1.0 Planner III Facilities Management 8.00 1.50 9.50 1.0 Facilities Superintendent, 0.5 Facilities Worker Information Technology 9.00 1.00 10.00 1.0 Applications Support and Integration Specialist Human Resources 6.00 — 6.00 — Subtotal - General Govt 85.50 9.50 95.00 Public Safety Police 83.30 5.50 88.80 4.0 Patrol Officers, 1.0 Lieutenant, 0.5 Digital Forensics Analyst Fire 48.00 3.00 51.00 3.0 Firefighters Building Inspection 23.25 — 23.25 — Parking 6.17 0.50 6.67 0.5 Facilities Worker (Parking Garage) Subtotal - Public Safety 160.72 9.00 169.72 Public Services Public Works Administration 31.25 — 31.25 — Streets 26.10 — 26.10 — Stormwater 8.75 — 8.75 — Water 31.55 0.50 32.05 0.5 Water/Wastewater Operator for Meters Wastewater 27.45 0.50 27.95 0.5 Water/Wastewater Operator for Meters Solid Waste 21.40 — 21.40 — Vehicle Maintenance 9.50 — 9.50 — Subtotal - Public Services 156.00 1.00 157.00 Public Welfare Parks & Recreation 55.16 — 55.16 — Library 26.87 — 26.87 — Economic Development 3.83 — 3.83 — Sustainability 3.00 — 3.00 — Subtotal - Public Welfare 88.86 — 88.86 Total Employees 491.08 19.50 510.58 26 27 Fund Summaries The purpose of fund summaries is to capture and detail the financial condition of each appropriated City fund. A fund summary provides information on revenues, expenditures, and estimated ending funds available. In addition, it functions as a planning mechanism, as it allows expenditures to be matched to available revenues and/or fund balance. Fund summaries also identify components of funds available and anticipated uses. It is important to note that sources and uses are always balanced because a fund’s sources either are expended, become restricted, committed or assigned, or become unrestricted (unreserved or undesignated) funds available. City funds can be divided into three categories: Governmental Funds, Proprietary Funds, Internal Service, and Fiduciary Funds. By maintaining separate funds, the City is able to comply with laws that require certain money to be spent for specific purposes. *Indicating Major Funds in each category. General Fund The General Fund is used to account for all financial resources of the City, except for those required to be accounted for in another fund. The General Fund supports such basic services as the General Administration, Police, Fire, Finance, Recreation, and Library services. FY23 and FY24 on the chat below look significantly higher than prior years due to a plan to use the remaining American Rescue Plan Act (ARPA) funds in these years. 28 General Fund Past 10 Years and Approved FY24 Revenue Expenditures Fund Balance 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Projected FY24 Adopted 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Revenues The adopted budget includes an estimate of $53.5 million in total General Fund revenue, with the largest sources of external revenue coming from property taxes, state shared revenue, and the Gallatin County option tax. Ten percent of General Fund revenue comes from transfers in from other funds, which includes the mill levy that supports payments for health and dental insurance, and billings to departments for services like finance, information technology, and human resource support. The following chart shows the breakdown of estimated revenues: Revenue Sources for General Fund Property Taxes, 49% State Shared, 18% Charges for Services, 14% Transfers In, 10% Gallatin County Option, 4% Fines & Forfeitures, 2% County Shared, 1% Miscellaneous Revenue, 1% Licenses & Permits, 1% 29 Appropriations This year’s General Fund budget has $55.7 million in appropriated expenditures. Salaries & Benefits expenses are the highest portion at $37.7 million, followed by operations at $12.8 million. Capital outlays are $4.1 million, which includes vehicle replacements, facility improvements, and investments in energy projects. The break down by percentage is below: Appropriations by Type for General Fund Salaries & Benefits 67.7% Operations & Maintenance 23.0% Capital Outlay 7.4% Debt Service 0.1% Transfers Out 1.8% Appropriations by division shows the greatest portion of anticipated General Fund expenses is for Public Safety, with Police at 25.8% followed by Fire at 16.8%. Non-Departmental is where funding has been allocated for the City Commission to approve up to $1.5 million in grants to non-profit agencies that serve Bozeman citizens. Non- departmental also includes transfers out to other funds, including mill levies dedicated to Stormwater and Landfill, and city-wide insurance payments. General Fund Appropriations by Division Police; 25.8% Fire; 16.8% Non-departmental; 7.1% Library; 6.6% Facilities Management; 10.1% Recreation; 5.7% City Administration; 15.0% Information Technology; 4.7% All Other; 8.2% 30 Fund Balance The Government Finance Officers Association (GFOA) recommends keeping 16.67% of either revenues or expenditures in reserves annually for the General Fund. The City's adopted policy is to maintain at least 16.67% of revenue. The adopted budget is in compliance with this policy. General Fund - Fund Balance $7.7M $8.8M $9.2M $8.8M $11.0M $8.8M 20192020202120222023 Projected2024 Adopted$0.0M $2.0M $4.0M $6.0M $8.0M $10.0M $12.0M General Fund FUND FY22 Actual FY23 Projected FY24 Adopted 10 General Fund Beginning Balance 11,027,500 Revenues Taxes 15,836,888 22,206,200 26,485,700 Gallatin County Option 2,186,290 2,273,700 2,364,600 Licenses & Permits 420,415 408,300 420,400 Grants 19,882 27,000 — County Shared 809,171 925,400 841,900 State Shared 7,987,755 8,709,800 9,474,200 Charges for Services 4,523,191 6,159,000 7,384,000 Fines & Forfeitures 993,493 1,026,200 893,300 Miscellaneous Revenue 198,496 3,814,000 482,500 Transfers In 4,966,165 9,798,300 5,176,600 Debt Proceeds 19,833 — — Special Assessments 931 — — Total Revenues 37,962,509 55,347,900 53,523,200 Expenditures Salaries & Benefits 26,479,696 32,620,500 37,693,700 Operations & Maintenance 7,963,758 10,777,800 12,802,300 Capital Outlay 607,482 2,344,400 4,125,700 Debt Service/Loans 47,807 78,900 61,400 Transfers Out 3,622,740 7,100,400 1,023,900 Total Expenditures 38,721,483 52,922,000 55,707,000 Projected Ending Balance 8,843,700 Ending Balance % of Revenue 16.5 % 31 Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted to expenditure for specific purposes. The revenue is generated in different ways; some have assessments on properties, property taxes, charges for services, and some are funded through grants or donations. The City currently has over 100 special revenue funds with a total of $72.30 million in expenditures planned for FY24. Information on the programs funded or partially funded by these Special Revenue Funds can be found in the description by division in the Activity/Division Detail section. Highlighted in the following section are the Transportation Special Revenue Funds and some of our major Program Special Revenue Funds, followed by the financial information for all Special Revenue Funds. Transportation Special Revenue Funds Street Maintenance Fund relies on assessments for revenue generation for street maintenance and reconstruction. Beginning in FY24 this fund also accounts for revenues from state gasoline taxes that can be used on street maintenance or street arterial & collector capital projects. The Street Maintenance Fund budget includes increased amounts of pavement maintenance and capital projects. The FY24 Adopted Budget includes an 8% increase in the assessment rates to keep up with construction cost inflation. Assessment increases were adopted by City Commission on August 22, 2023. Street Maintenance Assessments Lot Size FY21 Approved 8% Increase FY22 Approved 6% Increase FY23 Approved 6% Increase FY24 Approved 8% Increase Small - 5,000 sgft 156.19 165.57 175.50 189.54 Average= 7,500 sqft 234.29 248.35 263.25 284.31 Large= 10,000 sqft 312.38 331.13 351.00 379.08 Street Maintenance Fund Financial Trends Revenue Expenditure 2020 Actual 2021 Actual 2022 Actual FY23 Projected FY24 Adopted 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Arterial & Collector Street District (A&CD) Fund is a district that provides the “local share” of some projects in advance of development. Many of the projects funded help in the Street Impact Fee program’s efforts. Due to the role Street Impact Fees play in the expansion of our Arterial & Collector streets, the A&CD capital plan is tied to projects on the Street Impact Fee Capital Improvement Program. The City creates payback districts to recover the “local share” once an adjacent project is developed. An 8% rate increase is included in the FY24 Adopted Budget to keep up with construction inflation. Assessment increases were adopted by City Commission on August 22, 2023. 32 Arterial & Collector Assessments Lot Size FY21 Approved 3% Increase FY22 Approved 6% Increase FY23 Approved 6% Increase FY24 Approved 8% Increase Small - 5,000 sgft 33.01 34.99 37.09 40.05 Average= 7,500 sqft 49.51 52.48 55.63 60.08 Large= 10,000 sqft 66.01 69.97 74.17 80.10 Appropriations are mainly planned from the Capital Improvement Plan. The full project listing can be found in the Capital Expenditures Section. Revenues in the FY24 Adopted Budget include $750K of cash in lieu as a contribution to the Cottonwood Rd/Fallon (A&C012) project resulting in the jump in revenues seen in the chart below. Significant projected expenditures in FY23 include $2.4 million for the Cottonwood, Oak to Baxter project (SIF138). Arterial & Collector Fund Financial Trends Revenue Expenditure 2020 Actual 2021 Actual 2022 Actual FY23 Projected FY24 Adopted 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Street Impact Fee Fund- Street Impact Fees go towards capacity expanding road improvements. The appropriations are based on the Capital Improvement Plan and total approximately $4.8 million. Both the Capital Improvement Plan and the project listing can be found in the Capital Improvement Program / Capital Expenditures section. Program Special Revenue Funds Parks & Trails District Fund - Special assessment revenues levied, received, and expended for the Parks & Trails District are accounted for in this fund. This District was created in FY21. The plan, as approved by the Commission, is a five-year ramp up to Silver level of service. Capital expenditures for the District are included in the budget and deferred maintenance will be added in future years. Assessment increases were adopted by City Commission on August 22, 2023. Parks & Trails Assessments Lot Size FY21 Approved FY22 Approved 33% Increase FY23 Approved 15% Increase FY24 Approved 7% Increase Small - 5,000 sgft 85.00 113.05 130.01 139.11 Average= 7,500 sqft 127.50 169.58 195.02 208.67 Large= 10,000 sqft 170.00 226.10 260.02 278.22 33 Parks & Trails Revenue & Expenditure Revenue Expenditures FY21 Actual FY22 Actual FY23 Projected FY24 Adopted 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 The Tree Maintenance Fund accounts for special assessment revenues levied, received, and expended for tree maintenance provided in the public right of way. The adopted budget and Capital Improvement Plan are consistent with the Urban Forestry Management Plan. The FY24 Budget includes a 4% increase adopted to continue to provide the desired level of service. Expenditures are down slightly in FY24 on the graph below due to the purchase of a bucket/lift truck in FY23. Assessment increases were adopted by City Commission on August 22, 2023. Tree Maintenance Assessments Lot Size FY21 Approved 2% Increase FY22 Approved 2% Increase FY23 Approved 6% Increase FY24 Approved 4% Increase Small - 5,000 sgft 18.10 18.46 19.57 20.36 Average= 7,500 sqft 27.14 27.69 29.36 30.53 Large= 10,000 sqft 36.19 36.92 39.14 40.71 Tree Maintenance Fund Financial Trends Revenue Expenditures FY20 Actual FY21 Actual FY23 Actual FY23 Projected FY24 Adopted 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 34 The Community Development / Planning Fund is a special revenue fund that accounts for revenues and expenditures related to community planning and zoning operations, in addition to the Code Compliance department. There are two major revenue sources for the fund: mills from the general mill levy and planning fees. Planning fees were part of a Community Development fee study adopted by Commission for better cost recovery. It is anticipated that Planning fees will need to be increased in FY24 to recover the cost of providing planning services. Planned expenditures total $4.2 million. Planning Fund Financial Trends Revenue Expenditures FY20 Actual FY21 Actual FY22 Actual FY23 Projected FY24 Adopted 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 The Building Inspection Fund is supported entirely by the revenue from building fees and permits. Revenues and expenditures are statutorily restricted to amounts that support the building safety program. Building Inspection fees were part of the Community Development Fee Study, and new fees were adopted to be more in line with best practices by following the International Code Council Valuation & Fee Calculation. This fund is dependent on construction in the city and therefore is monitored based on economic conditions. In addition, it is reported in the quarterly report to the Commission. Total planned expenditures are $4.5 million. Building fee increases were adopted by City Commission on September 12, 2023. Building Inspection Financial Trends Revenue Expenditures FY20 Actual FY21 Actual FY22 Actual FY23 Projected FY24 Adopted 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 35 The Community Housing Fund is where the Affordable Housing Program is accounted for. Affordable housing is part of our Strategic Plan and is a City Commission priority. For Fiscal Year FY24, the fund will receive 5.89 mills of the general mill levy. Expenditure appropriations in this fund vary significantly from year to year, and a fund balance often builds up due to the timing of agreements. Expenditure appropriations in FY24 exceed the mills allocated as seen on the chart below, but some appropriations are being paid with fund balance, which is made up of revenues from FY23. Community Housing Financial Trends Revenue Expenditures FY20 Actual FY21 Actual FY22 Actual FY23 Projected FY24 Adopted 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 The American Rescue Plan Act (ARPA) Fund is where the City is tracking Federal ARPA funding. On March 10, 2021, the House of Representatives approved a Senate-amended version of President Biden's $1.9 trillion COVID-19 relief package - the American Rescue Plan. The package includes $350 billion in aid for state and local governments, along with additional funding for other areas like education, rental assistance and transit. The President signed the bill into law on March 11, 2021. ARPA funding has been used by the City Commission in prior years, and continues to focus on utilizing funds, for the items below: •Address revenue losses in operations •Reimburse City impact fees for Childcare Centers •Household assistance •Vaccination incentives •Infrastructure projects that could increase areas available for affordable housing 36 Detail - All Special Revenue Funds FUND FY22 Actual FY23 Projected FY24 Adopted 101 American Rescue Plan Beginning Balance 200,000 Revenues Grants 1,013,635 5,051,300 4,543,500 Miscellaneous Revenue 8,368 — 156,700 Total Revenues 1,022,003 5,051,300 4,700,200 Expenditures Operations & Maintenance 39,255 — — Transfers Out 974,380 5,051,300 4,900,200 Total Expenditures 1,013,635 5,051,300 4,900,200 Projected Ending Balance — FUND FY22 Actual FY23 Projected FY24 Adopted 103 Health-Medical Insurance Beginning Balance 1,192,700 Revenues Taxes 2,736,975 3,314,600 2,637,700 Miscellaneous Revenue 2,847 3,800 3,800 Total Revenues 2,739,822 3,318,400 2,641,500 Expenditures Transfers Out 2,731,045 3,099,500 3,775,000 Total Expenditures 2,731,045 3,099,500 3,775,000 Projected Ending Balance 59,200 FUND FY22 Actual FY23 Projected FY24 Adopted 115 Building Inspection Fund Beginning Balance 806,800 Revenues Licenses & Permits 2,370,631 2,930,100 3,797,000 Charges for Services 34 28,000 28,000 Miscellaneous Revenue 15,277 18,300 18,300 State Shared 112,223 167,000 214,000 Total Revenues 2,498,166 3,143,400 4,057,300 Expenditures Salaries & Benefits 1,798,975 2,508,300 3,191,000 Operations & Maintenance 548,032 856,600 807,600 Capital Outlay 157,287 40,000 75,000 Transfers Out 341,646 387,300 465,700 Total Expenditures 2,845,939 3,792,200 4,539,300 Projected Ending Balance 324,800 37 Detail - All Special Revenue Funds FUND FY22 Actual FY23 Projected FY24 Adopted 100 Community Development/Planning Beginning Balance 1,343,600 Revenues Taxes 309,450 308,400 411,400 Licenses & Permits — 56,300 65,700 Grants 6,000 12,400 — Charges for Services 1,326,387 1,319,800 1,406,500 Miscellaneous Revenue 48,933 58,700 51,000 Transfers In 188,183 2,106,100 2,754,300 State Shared 158,197 175,400 188,100 Total Revenues 2,037,151 4,037,100 4,877,000 Expenditures Salaries & Benefits 1,786,655 2,362,100 2,783,900 Operations & Maintenance 292,405 605,600 923,000 Capital Outlay 78,459 40,000 25,000 Transfers Out 453,055 428,800 499,200 Total Expenditures 2,610,574 3,436,500 4,231,100 Projected Ending Balance 1,989,500 FUND FY22 Actual FY23 Projected FY24 Adopted 120 Community Housing Fund Beginning Balance 2,155,400 Revenues Taxes 773,812 1,221,400 1,389,700 Miscellaneous Revenue 3,081 129,900 5,600 Transfers In — 1,000,000 — State Shared 673 2,000 2,000 Total Revenues 777,566 2,353,300 1,397,300 Expenditures Salaries & Benefits 43,505 104,000 107,500 Operations & Maintenance 1,276,095 352,200 3,445,200 Total Expenditures 1,319,601 456,200 3,552,700 Projected Ending Balance — 38 Detail - All Special Revenue Funds FUND FY22 Actual FY23 Projected FY24 Adopted 187 Fire Department Equipment Beginning Balance (935,000) Revenues Taxes 614,723 614,500 731,000 Debt Proceeds — — 2,437,200 Miscellaneous Revenue 3,818 19,900 1,019,900 Total Revenues 618,540 634,400 4,188,100 Expenditures Capital Outlay — 1,641,700 43,000 Transfers Out 102,478 1,000,000 2,849,800 Total Expenditures 102,478 2,641,700 2,892,800 Projected Ending Balance 360,300 FUND FY22 Actual FY23 Projected FY24 Adopted 113 Fire Impact Fee Beginning Balance 4,964,700 Revenues Charges for Services 615,771 514,400 558,200 Miscellaneous Revenue 19,733 63,100 63,100 Total Revenues 635,504 577,500 621,300 Expenditures Operations & Maintenance 2,178 3,000 — Capital Outlay — — 1,500,000 Transfers Out 30,789 25,700 3,827,900 Total Expenditures 32,967 28,700 5,327,900 Projected Ending Balance 258,100 FUND FY22 Actual FY23 Projected FY24 Adopted 195 Parks & Trails District Beginning Balance 1,491,600 Revenues Special Assessments 12,000 13,300 — Grants — — 410,000 Charges for Services 5,059,628 5,903,300 6,257,200 Debt Proceeds — — 1,385,000 Miscellaneous Revenue 108,768 98,700 41,700 State Shared 20,087 27,000 47,000 Total Revenues 5,200,483 6,042,300 8,140,900 Expenditures Salaries & Benefits 1,312,758 1,643,100 2,950,900 Operations & Maintenance 1,971,095 2,433,500 2,553,200 Capital Outlay 450,167 1,884,000 1,660,000 Transfers Out 346,532 547,000 685,900 Total Expenditures 4,080,552 6,507,600 7,850,000 Projected Ending Balance 1,782,500 39 Detail - All Special Revenue Funds FUND FY22 Actual FY23 Projected FY24 Adopted 850 Park Land Trust Beginning Balance 2,017,900 Revenues Debt Proceeds 315,000 — — Miscellaneous Revenue 742,502 1,021,200 1,120,900 Total Revenues 1,057,502 1,021,200 1,120,900 Expenditures Operations & Maintenance 3,450 — 260,000 Capital Outlay 1,055,753 192,700 — Debt Service/Loans — 100,000 338,700 Total Expenditures 1,059,203 292,700 598,700 Projected Ending Balance 2,540,100 FUND FY22 Actual FY23 Projected FY24 Adopted 112 Tree Maintenance District Beginning Balance 522,400 Revenues Special Assessments 2,228 2,000 2,000 Grants 3,515 — — Charges for Services 827,942 890,000 934,900 Miscellaneous Revenue 31,132 31,600 18,400 State Shared 7,408 9,000 10,000 Total Revenues 872,226 932,600 965,300 Expenditures Salaries & Benefits 497,266 560,800 618,900 Operations & Maintenance 134,115 192,800 232,700 Capital Outlay 96,016 235,000 55,000 Transfers Out 96,756 102,300 127,300 Total Expenditures 824,152 1,090,900 1,033,900 Projected Ending Balance 453,800 FUND FY22 Actual FY23 Projected FY24 Adopted 110 Gas Tax Fund Beginning Balance — Revenues Miscellaneous Revenue 5,895 4,300 — State Shared 1,734,520 800,000 — Total Revenues 1,740,415 804,300 — Expenditures Operations & Maintenance 368,708 260,500 — Capital Outlay 833,018 1,108,600 — Transfers Out 975,291 532,200 — Total Expenditures 2,177,017 1,901,300 — Projected Ending Balance — 40 Detail - All Special Revenue Funds FUND FY22 Actual FY23 Projected FY24 Adopted 141 Street Arterial Construction District Beginning Balance 748,000 Revenues Special Assessments 4,146 3,500 3,500 Charges for Services 1,545,607 1,662,700 1,779,100 Miscellaneous Revenue 966,805 59,800 809,800 Transfers In 975,291 — — Total Revenues 3,491,850 1,726,000 2,592,400 Expenditures Operations & Maintenance 65,456 82,000 160,500 Capital Outlay 1,942,455 4,807,400 2,085,000 Transfers Out — 55,500 — Total Expenditures 2,007,910 4,944,900 2,245,500 Projected Ending Balance 1,094,900 FUND FY22 Actual FY23 Projected FY24 Adopted 114 Street Impact Fee Beginning Balance 7,490,500 Revenues Charges for Services 8,426,720 5,301,300 6,176,700 Miscellaneous Revenue 448,435 184,500 184,500 Transfers In 196 100 200 Total Revenues 8,875,351 5,485,900 6,361,400 Expenditures Operations & Maintenance 124,343 41,400 50,000 Capital Outlay 2,679,742 11,344,200 4,400,000 Transfers Out 421,336 265,100 308,800 Total Expenditures 3,225,421 11,650,700 4,758,800 Projected Ending Balance 9,093,100 FUND FY22 Actual FY23 Projected FY24 Adopted 111 Street Maintenance District Beginning Balance 1,957,900 Revenues Special Assessments 18,159 19,700 19,700 Licenses & Permits 57,264 22,500 24,300 Charges for Services 7,646,055 8,225,000 9,060,700 Debt Proceeds — 862,600 — Miscellaneous Revenue 92,013 57,700 64,100 Transfers In — 532,200 — State Shared 29,264 1,159,500 1,989,100 Total Revenues 7,842,756 10,879,200 11,157,900 Expenditures Salaries & Benefits 1,854,856 2,560,800 2,814,900 Operations & Maintenance 2,065,120 2,373,500 2,923,800 Capital Outlay 934,572 3,770,000 2,371,900 Debt Service/Loans 240,537 321,500 213,800 Transfers Out 2,385,291 1,926,200 2,588,700 Total Expenditures 7,480,376 10,952,000 10,913,100 Projected Ending Balance 2,202,700 41 Detail - All Special Revenue Funds FUND FY22 Actual FY23 Projected FY24 Adopted Multiple Department Special Revenue Funds Beginning Balance 3,848,800 Revenues Taxes 155,441 154,200 183,300 Grants 681,301 243,800 33,000 Charges for Services 24,745 40,000 — Fines & Forfeitures 59,702 52,600 — Miscellaneous Revenue 264,481 179,400 33,700 Transfers In 849,948 383,800 122,200 State Shared 53,518 — — Total Revenues 2,089,135 1,053,800 372,200 Expenditures Salaries & Benefits 383,007 259,200 254,100 Operations & Maintenance 1,053,698 415,000 351,100 Debt Service/Loans 125,795 125,800 125,800 Transfers Out 215,974 299,100 — Total Expenditures 1,778,474 1,099,100 731,000 Projected Ending Balance 3,490,000 FUND FY22 Actual FY23 Projected FY24 Adopted Multiple Lighting Districts Beginning Balance 550,900 Revenues Special Assessments 492,037 471,100 553,400 Miscellaneous Revenue 1,732 8,000 8,000 Total Revenues 493,768 479,100 561,400 Expenditures Operations & Maintenance 422,391 426,400 542,500 Total Expenditures 422,391 426,400 542,500 Projected Ending Balance 569,800 FUND FY22 Actual FY23 Projected FY24 Adopted 176 Downtown Improvement District Beginning Balance — Revenues Special Assessments 185,334 220,600 280,300 Licenses & Permits 1,750 — — Total Revenues 187,084 220,600 280,300 Expenditures Operations & Maintenance 186,593 222,200 280,300 Total Expenditures 186,593 222,200 280,300 Projected Ending Balance — 42 Detail - All Special Revenue Funds FUND FY22 Actual FY23 Projected FY24 Adopted 116 Downtown TIFD Beginning Balance 7,256,100 Revenues Taxes 1,483,518 1,494,400 1,558,200 Miscellaneous Revenue 25,380 57,100 2,100 State Shared 1,303 51,300 57,100 Total Revenues 1,510,201 1,602,800 1,617,400 Expenditures Salaries & Benefits 79,846 52,700 58,100 Operations & Maintenance 329,617 642,400 5,730,000 Capital Outlay 191,815 25,000 2,525,000 Transfers Out 332,372 330,200 332,800 Total Expenditures 933,651 1,050,300 8,645,900 Projected Ending Balance 227,600 FUND FY22 Actual FY23 Projected FY24 Adopted 145 North Park TIFD 160,200 Revenues Taxes 29,469 19,500 24,700 Miscellaneous Revenue 616 2,100 2,100 Total Revenues 30,086 21,600 26,800 Expenditures Operations & Maintenance 3,520 — 160,200 Total Expenditures 3,520 — 160,200 Projected Ending Balance 26,800 FUND FY22 Actual FY23 Projected FY24 Adopted 143 Midtown TIFD Beginning Balance 2,979,300 Revenues Taxes 1,485,671 1,447,200 1,999,200 Miscellaneous Revenue 22,677 28,100 28,100 Transfers In 257,102 — — State Shared 699 37,900 39,500 Total Revenues 1,766,150 1,513,200 2,066,800 Expenditures Salaries & Benefits 42,671 105,300 92,800 Operations & Maintenance 2,269,360 103,400 2,317,000 Capital Outlay 92,559 130,700 725,000 Transfers Out 410,049 410,000 411,300 Total Expenditures 2,814,640 749,400 3,546,100 Projected Ending Balance 1,500,000 43 Detail - All Special Revenue Funds FUND FY22 Actual FY23 Projected FY24 Adopted 144 Northeast TIFD Beginning Balance 1,006,000 Revenues Taxes 378,117 347,300 498,700 Miscellaneous Revenue 40,307 11,000 11,000 State Shared 186 1,200 1,300 Total Revenues 418,611 359,500 511,000 Expenditures Salaries & Benefits 11,408 17,400 30,500 Operations & Maintenance 50,963 25,200 30,000 Capital Outlay 23,778 50,000 986,900 Debt Service/Loans 92,000 93,000 93,000 Total Expenditures 178,150 185,600 1,140,400 Projected Ending Balance 376,600 FUND FY22 Actual FY23 Projected FY24 Adopted 117 Pole Yard TIFD Beginning Balance 276,500 Revenues Taxes 140,996 165,900 319,500 State Shared — 3,800 4,000 Total Revenues 140,996 169,700 323,500 Expenditures Operations & Maintenance — 23,800 600,000 Total Expenditures — 23,800 600,000 Projected Ending Balance — FUND FY22 Actual FY23 Projected FY24 Adopted 192 South Bozeman Technology TIFD Beginning Balance 37,700 Revenues Taxes 31,320 29,700 35,700 Miscellaneous Revenue 28 400 400 Total Revenues 31,349 30,100 36,100 Expenditures Operations & Maintenance — 300 38,000 Total Expenditures — 300 38,000 Projected Ending Balance 35,800 44 Debt Service Funds Debt Service Funds are used to account for the accumulation of resources for, and the payment of, long-term debt principal and interest. General Obligation (GO) Bonds are backed by the full faith and credit of the City and are payable from ad valorem property taxes. Except for refunding bonds issued to achieve savings, Bozeman voters must approve general obligation debt prior to issuance. FUND FY22 Actual FY23 Projected FY24 Adopted 303, 304, 307, 311 GO Bonds Beginning Balance 95,300 Revenues Taxes 3,444,526 3,644,300 3,993,700 Miscellaneous Revenue 1,813 1,900 1,900 Total Revenues 3,446,339 3,646,200 3,995,600 Expenditures Debt Service/Loans 3,454,088 3,601,100 3,960,900 Total Expenditures 3,454,088 3,601,100 4,090,900 Projected Ending Balance — Tax Increment Financing District (TIFD) Bonds are are not general obligations, but are special limited obligations of the City. The bonds are payable solely, and equally and ratably from the tax increment revenues received by the City from each improvement district. FUND FY22 Actual FY23 Projected FY24 Adopted TIFD Bonds Beginning Balance — Revenues Transfers In 742,422 740,200 744,100 Total Revenues 742,422 740,200 744,100 Expenditures Debt Service/Loans 740,922 740,200 744,100 Total Expenditures 740,922 740,200 744,100 Projected Ending Balance — Special Improvement Districts (SID)s account for special assessment bonds which are payable from the collection of special assessments levied against benefited property owners within each district. FUND FY22 Actual FY23 Projected FY24 Adopted 312-453 Special Improvement Districts (SIDs)Beginning Balance 1,627,300 Revenues Special Assessments 901,483 849,500 742,200 Charges for Services 1,704 — — Miscellaneous Revenue 15,836 41,900 41,900 Transfers In 2,077,709 — — Total Revenues 2,996,732 891,400 784,100 Expenditures Debt Service/Loans 319,135 317,800 307,800 Transfers Out — 2,078,300 — Total Expenditures 319,135 2,396,100 307,800 Projected Ending Balance 2,103,600 45 The SID Revolving Fund secures debt for the SIDs and the cash balance must equal 10% of the principal amount of bonds outstanding. FUND FY22 Actual FY23 Projected FY24 Adopted 300 SID Revolving Fund Beginning Balance 277,700 Revenues Miscellaneous Revenue 23,215 8,400 8,400 Transfers In — 1,350,000 — Total Revenues 23,215 1,358,400 8,400 Expenditures Transfers Out 2,077,709 781,200 27,100 Total Expenditures 2,077,709 781,200 27,100 Projected Ending Balance 259,000 Construction Funds Capital Projects Funds account for the construction of general improvement projects financed by special assessments other than those financed by proprietary funds. The City’s Capital Improvement Program (CIP) develops the five-year Capital Improvement Plan, manages the City’s annual budget process for funding citywide capital maintenance and expansion projects, supports strategic capital planning and programming efforts with City departments, and provides analysis for judicious financial decision making. Construction Funds FUND FY22 Actual FY23 Projected FY24 Adopted 500-573 Capital Projects Beginning Balance 2,673,100 Revenues Debt Proceeds 7,245,591 — 105,787,100 Miscellaneous Revenue 153,158 136,400 3,107,700 Transfers In 745,362 6,472,400 6,816,900 Total Revenues 8,144,111 6,608,800 115,711,700 Expenditures Operations & Maintenance 697,913 715,200 — Capital Outlay 21,700,471 11,719,100 116,367,700 Transfers Out 257,102 962,800 — Total Expenditures 22,655,486 13,397,100 116,367,700 Projected Ending Balance 2,017,100 46 Enterprise Funds Enterprise Funds are used to account for efforts that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is for the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The following highlights some of the major enterprise funds and ones with larger changes for FY24, followed by all Enterprise Fund financials. Water Fund- City property owners are, by and large, required to use the City’s Water treatment systems. Residential single family water rates, which make up approximately 50% of Water Fund rate revenues, have been held flat since FY19. The next largest portion of water rates is multi-family, which make up approximately 25% of rate revenues and have been held to modest 1% rate increases over the same period of time. Rate increases adopted were consistent with the rate study presented to the City Commission in January 2019, and updated in FY21. Meanwhile, the cost of providing water services has continued to increase each year compared to the FY21 projections included in the study. Updated financial models are showing the need for significant rate increases to address the cost of the adopted CIP and operations over the next five years. Revenue increases of 12% are needed for FY24 and FY25, and rate increases in future years are anticipated to be approximately 8%. A rate study is planned to be performed prior to the FY26 budget process to inform future rates by customer classes, and ensure proper revenue coverage and reserve amounts, including a drought reserve. The impact to the typical homeowner is approximately $53.32 annually in FY24. See the Estimated Citizen Impact section for more information. Water rate increases were adopted by City Commission on August 22, 2023. Flow Charge - % Increase 2022 2023 2024 2025 2026 Single Family/Low Income Residential Total 0.0%0.0%12.0%12.0%8.0% Multi Family Residential Total 1.0%1.0%12.0%12.0%8.0% Commercial Total 8.0%8.0%12.0%12.0%8.0% Government Total 20.0%20.0%20.0%20.0%20.0% MSU Total 4.0%4.0%12.0%12.0%8.0% Industrial Total 2.0%2.0%12.0%12.0%8.0% 47 Significant Contributed Capital is resulting in the large spike in revenue seen in FY22 on the chart below. In the FY23 projection, there are planned capital expenditures of $5.6M for Sourdough Intake Improvements project and $5.1M for Sourdough Transmission Phase 2 which result in the spike in expenditures. Water Fund Financial Trends Revenue Expenditures FY17 Actual FY18 Actual FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 Projected FY24 Adopted 0 4,000,000 8,000,000 12,000,000 16,000,000 20,000,000 24,000,000 28,000,000 32,000,000 Wastewater Fund- City Property owners are, by and large, required to use the City’s wastewater treatment systems. Residential single family wastewater rates, which make up approximately 25% of Wastewater Fund rate revenues, have been held flat since FY19. The next largest portion of wastewater rates is multi-family, which make up approximately 25% of rate revenues and have been held to modest 2% rate increases over the same period of time. Rate increases adopted were consistent with the rate study presented to the City Commission in January 2019, and updated in FY21. Meanwhile, the cost of providing wastewater services has continued to increase each year compared to the FY21 projections included in the study. Updated financial models are showing the need for significant rate increases to address the cost of the adopted CIP and operations over the next five years. A revenue increase of 12% is adopted for FY24, and rate increases in future years are anticipated to be approximately 3%. A rate study is planned to be performed to inform future rates by customer classes and ensure proper revenue coverage and reserve amounts. The impact to the typical homeowner is approximately $28.20 annually. See the Estimated Citizen Impact section for more information. Wastewater rate increases were adopted by City Commission on August 22, 2023. Flow Charge - % Increase 2022 2023 2024 2025 2026 Single Family/Low Income Residential Total 0.0%0.0%12.0%3.0%3.0% Multi Family Residential Total 2.0%2.0%12.0%3.0%3.0% Commercial Total 4.0%4.0%12.0%3.0%3.0% Government Total 6.0%6.0%4.0%1.0%1.0% MSU Total 8.0%8.0%4.0%1.0%1.0% Industrial Total 3.0%3.0%12.0%3.0%3.0% 48 Wastewater Fund Financial Trends Revenue Expenditures FY17 Actual FY18 Actual FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 Projected FY24 Adopted 0 4,000,000 8,000,000 12,000,000 16,000,000 20,000,000 24,000,000 Stormwater Fund- The City’s Stormwater Fund rates are charged based on impervious area and existing infrastructure. Considering the costs of inflation, and the current adopted Capital plan which accounts for growth in the City, this budget includes an adopted 8% rate increase. The impact on the typical homeowner is approximately $4.02 annually. See the Estimated Citizen Impact section for more information. Stormwater rate increases were adopted by City Commission on August 22, 2023. Stormwater Fund Financial Trends Revenue Expenditures FY17 Actual FY18 Actual FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 Projected FY24 Adopted 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 49 Solid Waste Fund -The City’s Solid Waste Fund accounts for the garbage and recycling service provided to citizens. Revenues are comprised of solid waste and recycling fees. Expenses are for personnel, operations, and capital items. An updated rate study is currently being conducted and is planned to be presented to the City Commission in July. Solid Waste rate increases were adopted by City Commission on August 22, 2023. Solid Waste Financial Trends Revenue Expenditures FY18 Actual FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 Projected FY24 Adopted $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 50 Enterprise Funds FUND FY22 Actual FY23 Projected FY24 Adopted 600-610 Water Fund Beginning Balance 20,111,700 Revenues Special Assessments 6 — — Grants 1,128,825 1,296,200 — Charges for Services 15,431,187 14,669,200 16,430,800 Debt Proceeds — — 2,700,000 Miscellaneous Revenue 6,528,959 675,800 1,159,600 Transfers In 1,443,240 55,500 — State Shared 39,034 53,000 65,000 Total Revenues 24,571,252 16,749,700 20,355,400 Expenditures Salaries & Benefits 2,420,665 3,098,700 3,882,700 Operations & Maintenance 3,187,673 3,697,000 4,082,800 Capital Outlay 4,251,425 18,653,800 4,583,700 Debt Service/Loans 1,806,426 1,796,600 1,796,500 Transfers Out 2,860,363 4,118,000 3,768,000 Total Expenditures 14,526,553 31,364,100 18,113,700 Drought Reserve 1,074,900 Projected Ending Balance 21,278,500 FUND FY22 Actual FY23 Projected FY24 Adopted 620-630 Wastewater Fund Beginning Balance 6,592,100 Revenues Special Assessments 7 14,900 14,900 Grants 267,066 7,000 712,500 Charges for Services 12,684,974 12,251,600 13,836,300 Debt Proceeds — — 10,024,000 Miscellaneous Revenue 6,017,660 198,100 198,100 Transfers In — 306,000 — State Shared 34,192 43,000 51,000 Total Revenues 19,003,899 12,820,600 24,836,800 Expenditures Salaries & Benefits 2,064,679 2,677,400 2,976,200 Operations & Maintenance 2,599,738 3,023,100 2,908,300 Capital Outlay 3,342,948 3,624,900 10,704,000 Debt Service/Loans 2,680,704 2,726,400 2,727,700 Transfers Out 1,942,774 2,530,100 2,704,700 Total Expenditures 12,630,843 14,581,900 22,020,900 Projected Ending Balance 9,408,000 51 Enterprise Funds FUND FY22 Actual FY23 Projected FY24 Adopted 670 Stormwater Fund Beginning Balance 513,400 Revenues Charges for Services 1,673,866 1,892,500 2,093,800 Debt Proceeds — — 300,000 Miscellaneous Revenue 1,006,597 24,900 24,900 Transfers In 194,735 188,200 180,900 State Shared 9,149 14,000 17,000 Total Revenues 2,884,347 2,119,600 2,616,600 Expenditures Salaries & Benefits 595,618 812,800 931,300 Operations & Maintenance 134,326 162,200 280,300 Capital Outlay 391,376 1,612,700 649,600 Debt Service/Loans 115,538 115,500 116,400 Transfers Out 291,080 788,600 520,000 Total Expenditures 1,527,937 3,491,800 2,497,600 Projected Ending Balance 632,400 FUND FY22 Actual FY23 Projected FY24 Adopted 640, 641 Solid Waste Fund Beginning Balance 404,200 Revenues Special Assessments 109 — — Charges for Services 5,431,005 5,888,000 6,469,600 Debt Proceeds — 304,000 675,000 Miscellaneous Revenue 32,937 50,100 54,600 Transfers In 359,000 639,900 352,800 State Shared 27,387 34,000 40,000 Total Revenues 5,850,438 6,916,000 7,592,000 Expenditures Salaries & Benefits 1,722,989 2,055,200 2,255,000 Operations & Maintenance 2,027,770 2,892,800 3,309,100 Capital Outlay 101,824 1,426,000 660,000 Transfers Out 934,264 1,033,900 1,497,100 Total Expenditures 4,786,847 7,407,900 7,721,200 Projected Ending Balance 275,000 FUND FY22 Actual FY23 Projected FY24 Adopted 650 Parking Fund Beginning Balance 1,741,100 Revenues Licenses & Permits 710,547 768,400 799,200 Charges for Services 36,441 300 — Fines & Forfeitures 315,023 336,500 353,300 Miscellaneous Revenue 20,631 28,600 28,600 State Shared 5,783 9,000 10,000 Total Revenues 1,088,425 1,142,800 1,191,100 Expenditures Salaries & Benefits 386,769 515,200 591,200 Operations & Maintenance 477,292 577,600 693,900 Capital Outlay 66,666 212,100 500,000 Transfers Out 87,366 127,500 131,800 Total Expenditures 1,018,093 1,432,400 1,916,900 Projected Ending Balance 1,015,300 52 Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis. The City has three Internal Services. Medical Health Insurance Fund 720 accounts for insurance premiums received from various City employees and retirees and the related costs of health and dental premiums paid to the City’s insurance provider. Internal Service Funds FUND FY22 Actual FY23 Projected FY24 Adopted 720 Health-Medical Insurance ISF Beginning Balance — Revenues Charges for Services 5,363,959 5,242,000 6,477,100 Miscellaneous Revenue (200) 19,600 24,000 Total Revenues 5,363,759 5,261,600 6,501,100 Expenditures Operations & Maintenance 5,306,064 5,261,600 6,501,100 Total Expenditures 5,306,064 5,261,600 6,501,100 Projected Ending Balance — Fund 750- Public Works Administration was new in FY19 to allocate the Public Works Administration, GIS, and Engineering to the enterprise funds. FUND FY22 Actual FY23 Projected FY24 Adopted 750 Public Works Administration Beginning Balance 3,091,400 Revenues Licenses & Permits 10,908 7,600 7,600 Charges for Services 4,877,680 11,455,600 10,549,500 Miscellaneous Revenue 26,651 101,100 48,100 Transfers In — 299,400 402,000 State Shared 39,425 66,000 74,000 Total Revenues 4,954,662 11,929,700 11,081,200 Expenditures Salaries & Benefits 2,451,767 3,936,400 4,203,800 Operations & Maintenance 925,644 1,545,900 1,596,400 Capital Outlay 84,247 50,000 195,000 Debt Service/Loans 37,472 89,700 93,300 Transfers Out 321,646 627,100 702,700 Total Expenditures 3,820,776 6,249,100 6,791,200 Projected Ending Balance 7,381,400 53 Fund 710 - Vehicle Maintenance accounts for the maintenance and repair of vehicles used in operation of City services. Internal Service Funds FUND FY22 Actual FY23 Projected FY24 Adopted 710 Vehicle Maintenance Beginning Balance (518,400) Revenues Charges for Services 1,639,483 2,294,700 3,595,900 Miscellaneous Revenue (1,852) (8,600) (8,600) State Shared 11,120 14,000 19,000 Total Revenues 1,648,751 2,300,100 3,606,300 Expenditures Salaries & Benefits 678,158 840,500 1,029,200 Operations & Maintenance 928,218 988,000 987,900 Capital Outlay — 45,000 120,000 Transfers Out 207,438 211,800 792,500 Total Expenditures 1,813,813 2,085,300 2,929,600 Projected Ending Balance 158,300 Permanent Funds Perpetual Cemetery Care Fund 800 accounts for the maintenance fees received from the sale of City cemetery lots, which are to be used for perpetual care. On June 15, 2021 City Commission adopted Resolution 5289 maintaining that 35% of all revenue from fees collected at Sunset Hills Cemetery go to the permanent maintenance fund. The fund balance has seen healthy growth over the last five years. Permanent Funds FUND FY22 Actual FY23 Projected FY24 Adopted 800 Cemetery Perpetual Care Beginning Balance 1,769,400 Revenues Charges for Services 97,453 60,900 62,300 Miscellaneous Revenue 8,095 24,400 24,400 Total Revenues 105,548 85,300 86,700 Expenditures Total Expenditures — — — Projected Ending Balance 1,856,100 54 Three-Year Summary for All Appropriated Funds ALL FUNDS FY22 Actual FY23 Projected FY24 Adopted Beginning Balance 89,477,800 Revenues Taxes 27,420,905 34,967,600 40,268,500 Gallatin County Option 2,186,290 2,273,700 2,364,600 Licenses & Permits 3,571,515 4,193,200 5,114,200 Grants 3,120,224 6,637,700 5,699,000 County Shared 809,171 925,400 841,900 State Shared 10,271,923 11,376,900 12,302,300 Charges for Services 77,233,832 83,798,300 93,100,600 Fines & Forfeitures 1,368,217 1,415,300 1,246,600 Miscellaneous Revenue 16,884,826 7,154,200 8,839,300 Transfers In 44,180,782 23,872,100 16,550,000 Debt Proceeds 7,580,424 1,166,600 123,308,300 Special Assessments 1,616,441 1,594,600 1,616,000 Total Revenues 196,244,550 179,375,600 311,251,300 Expenditures Salaries & Benefits 44,611,289 56,730,400 66,465,700 Operations & Maintenance 35,454,788 38,701,000 54,567,200 Capital Outlay 39,082,060 64,957,300 154,357,500 Debt Service/Loans 9,660,424 10,106,500 10,579,400 Transfers Out 53,800,904 34,819,900 32,070,400 Total Expenditures 182,609,466 205,315,100 318,040,200 Projected Ending Balance 82,688,900 55 Summary of Resources for All Funds City of Bozeman Resources: All Funds Taxes Special Assessments Licenses & Permits Grants Charges for Services Fines & Forfeitures Miscellaneous Revenue State Shared County Shared Debt Proceeds Transfers In TOTAL General Fund $ 28,850,300 $ — $ 420,400 $ — $ 999,300 $ 893,300 $ 482,500 $ 9,474,200 $ 841,900 $ — $ 11,561,300 $ 53,523,200 American Rescue Plan — — — 4,543,500 — — 156,700 — — — — 4,700,200 Health-Medical Insurance 2,637,700 — — — — — 3,800 — — — — 2,641,500 Building Inspection Fund — — 3,797,000 — 28,000 — 18,300 214,000 — — — 4,057,300 Community Development/Planning 411,400 — 65,700 — 1,153,500 — 51,000 188,100 — — 3,007,300 4,877,000 Community Housing Fund 1,389,700 — — — — — 5,600 2,000 — — — 1,397,300 Fire Department Equipment 731,000 — — — — — 1,019,900 — — 2,437,200 — 4,188,100 Fire Impact Fee — — — — 558,200 — 63,100 — — — — 621,300 Parks & Trails District — — — 410,000 6,257,200 — 41,700 47,000 — 1,385,000 — 8,140,900 Park Land Trust — — — — — — 1,120,900 — — — — 1,120,900 Tree Maintenance District — 2,000 — — 934,900 — 18,400 10,000 — — — 965,300 Street Arterial Construction District — 3,500 — — 1,779,100 — 809,800 — — — — 2,592,400 Street Impact Fee — — — — 6,176,700 — 184,500 — — — 200 6,361,400 Street Maintenance District — 19,700 24,300 — 9,060,700 — 64,100 1,989,100 — — — 11,157,900 Department Special Revenue Funds 183,300 — — 33,000 — — 33,700 — — — 122,200 372,200 Lighting Districts — 553,400 — — — — 8,000 — — — — 561,400 Downtown Improvement District — 280,300 — — — — — — — — — 280,300 Downtown TIFD 1,558,200 — — — — — 2,100 57,100 — — — 1,617,400 Midtown TIFD 1,999,200 — — — — — 28,100 39,500 — — — 2,066,800 Northeast TIFD 498,700 — — — — — 11,000 1,300 — — — 511,000 Pole Yard TIFD 319,500 — — — — — — 4,000 — — — 323,500 South Bozeman Technology TIFD 35,700 — — — — — 400 — — — — 36,100 North Park TIFD 24,700 — — — — — 2,100 — — — — 26,800 GO Bonds 3,993,700 — — — — — 1,900 — — — — 3,995,600 TIFD Bonds — — — — — — — — — — 744,100 744,100 Special Improvement Districts (SIDs) — 742,200 — — — — 41,900 — — — — 784,100 SID Revolving Fund — — — — — — 8,400 — — — — 8,400 Capital Projects — — — — — — 3,107,700 — — 105,787,100 6,816,900 115,711,700 Water Fund — — — — 16,430,800 — 1,159,600 65,000 — 2,700,000 — 20,355,400 Wastewater Fund — 14,900 — 712,500 13,836,300 — 198,100 51,000 — 10,024,000 — 24,836,800 Stormwater Fund — — — — 2,093,800 — 24,900 17,000 — 300,000 180,900 2,616,600 Solid Waste Fund — — — — 6,469,600 — 54,600 40,000 — 675,000 352,800 7,592,000 Parking Fund — — 799,200 — — 353,300 28,600 10,000 — — — 1,191,100 Health-Medical Insurance ISF — — — — 6,477,100 — 24,000 — — — — 6,501,100 Public Works Administration — — 7,600 — — — 48,100 74,000 — — 10,951,500 11,081,200 Vehicle Maintenance — — — — — — (8,600) 19,000 — — 3,595,900 3,606,300 Cemetery Perpetual Care — — — — 62,300 — 24,400 — — — — 86,700 $ 42,633,100 $ 1,616,000 $ 5,114,200 $ 5,699,000 $ 72,317,500 $ 1,246,600 $ 8,839,300 $ 12,302,300 $ 841,900 $ 123,308,300 $ 37,333,100 $ 311,251,300 Percent of Total Budget 13.70 % 0.52 % 1.64 % 1.83 % 23.23 % 0.40 % 2.84 % 3.95 % 0.27 % 39.62 % 11.99 % 100 % 56 Summary of Appropriations for All Funds City of Bozeman Appropriations: All Funds Salaries & Benefits Operations & Maintenance Capital Outlay Debt Service/Loans Transfers Out TOTAL General Fund $ 37,693,700 $ 12,802,300 $ 4,125,700 $ 61,400 $ 1,023,900 55,707,000 American Rescue Plan — — — — 4,900,200 4,900,200 Health-Medical Insurance — — — — 3,775,000 3,775,000 Building Inspection Fund 3,191,000 807,600 75,000 — 465,700 4,539,300 Community Development/Planning 2,783,900 923,000 25,000 — 499,200 4,231,100 Community Housing Fund 107,500 3,445,200 — — — 3,552,700 Fire Department Equipment — — 43,000 — 2,849,800 2,892,800 Fire Impact Fee — — 1,500,000 — 3,827,900 5,327,900 Parks & Trails District 2,950,900 2,553,200 1,660,000 — 685,900 7,850,000 Park Land Trust — 260,000 — 338,700 — 598,700 Tree Maintenance District 618,900 232,700 55,000 — 127,300 1,033,900 Street Arterial Construction District — 160,500 2,085,000 — — 2,245,500 Street Impact Fee — 50,000 4,400,000 — 308,800 4,758,800 Street Maintenance District 2,814,900 2,923,800 2,371,900 213,800 2,588,700 10,913,100 Department Special Revenue Funds 254,100 351,100 — 125,800 — 731,000 Lighting Districts — 542,500 — — — 542,500 Downtown Improvement District — 280,300 — — — 280,300 Downtown TIFD 58,100 5,730,000 2,525,000 — 332,800 8,645,900 North Park TIFD — 160,200 — — — 160,200 Midtown TIFD 92,800 2,317,000 725,000 — 411,300 3,546,100 Northeast TIFD 30,500 30,000 986,900 93,000 — 1,140,400 Pole Yard TIFD — 600,000 — — — 600,000 South Bozeman Technology TIFD — 38,000 — — — 38,000 GO Bonds — — — 3,960,900 130,000 4,090,900 TIFD Bonds — — — 744,100 — 744,100 Special Improvement Districts (SIDs) — — — 307,800 — 307,800 SID Revolving Fund — — — — 27,100 27,100 Capital Projects — — 116,367,700 — — 116,367,700 Water Fund 3,882,700 4,082,800 4,583,700 1,796,500 3,768,000 18,113,700 Wastewater Fund 2,976,200 2,908,300 10,704,000 2,727,700 2,704,700 22,020,900 Stormwater Fund 931,300 280,300 649,600 116,400 520,000 2,497,600 Solid Waste Fund 2,255,000 3,309,100 660,000 — 1,497,100 7,721,200 Parking Fund 591,200 693,900 500,000 — 131,800 1,916,900 Public Works Administration 4,203,800 1,596,400 195,000 93,300 702,700 6,791,200 Vehicle Maintenance 1,029,200 987,900 120,000 — 792,500 2,929,600 Cemetery Perpetual Care — — — — — — $ 66,465,700 $ 54,567,200 $ 154,357,500 $ 10,579,400 $ 32,070,400 $ 318,040,200 Percent of Total Budget 20.90 % 17.16 % 48.53 % 3.33 % 10.08 % 100 % 57 58 Activity/Division Detail As stated in the Budget Summary, the budget is separated by activity. Within those activities are the divisions. See the activities and the corresponding divisions below. 59 60 General Government City Commission- The City Commission is the legislative body of city government comprised of a mayor and four commissioners. Responsibilities of the Commission include: establishment of policies governing the operation of the City and appointment of members to citizen advisory boards and commissions. City Manager – The role of the City Manager is to operate at the will of the City Commission with a focus on policy, long range planning, and strategy. The purpose of the City Manager’s office is to administer City operations and provide overall leadership, direction, coordination, and support for the City’s activities. City Clerk (City Manager)- The City Clerk’s Office is dedicated to preparing the proceedings of the City Commission and preserving the City records, along with enhancing citizens’ ability to participate in local government. City Attorney - The City Attorney is the legal advisor and primary attorney for the City and as such, is responsible for protecting the legal interests of the City and directing the legal operations of the City. The City Attorney and legal department staff represent the City before all courts, administrative agencies, and all City legal proceedings. Finance - The Finance Department is charged with the overall Finance, Accounting, and Treasury administration of the City. The Department is comprised of three divisions: Administration, Accounting, and Treasury. The Finance Department provides support to other departments for all financial matters. Facilities Management (Strategic Services) - Facilities Management is responsible for coordinating remodeling, renovations, and new construction projects. Contracted services include activities such as janitorial services, snow removal, lawn care, building systems ventilation, mechanical controls, and building generators. Information Technology - The Information Technology Department’s purpose is to manage and operate the City’s enterprise applications, hardware, and networking services. The division provides technology support to all departments across the City and maintains daily operations of the data centers. Human Resources - The Human Resources Department’s purpose is to support City functions by ensuring the capability and stability of the workforce. The department supports management and employees with current lawful information, sound recruitment practices, and protects the employment rights of the City and its employees. Planning (Community Development) – The Planning Department plans for the growth and development of the City of Bozeman. The department is responsible for long-range planning, development review, historic preservation, impact fees, and serving related Advisory Boards and Commissions. This department also includes the Code Enforcement Division. Municipal Court - Municipal Court accounts for costs associated with the judicial branch of City government. The Municipal Court hears cases involving City ordinances, misdemeanor cases defined by state criminal codes, and Orders of Protection. 61 City Commission Major Objectives •Work closely with City administration and other government officials to lobby for state legislation beneficial to cities. •Improve public facilities and the quality of services delivered to the public in order to meet the needs of the citizenry. •Ensure that all decisions are protective of the health, safety and general welfare of the citizens of this community. Budget Allocation Funded by the General Fund, making up 1% of the total appropriations. City Commission 1%General Fund FY23 Strategic Plan Set FY23 Strategic Priorities: •Become a City for CEDAW (Convention to Eliminate All Forms of Discrimination Against Women) •Increase Budget for Community & Support Services •UDC (Unified Development Code) Overhaul •Establish Mobile Crisis Response •Establish Model HOA Covenants •Develop Gallatin Valley Sensitive Lands Protection Plan •Update Codes to Encourage Wetland Preservation & Facilitate Creation of Wetland Bank •Short Term Rental (STR) Revisions •Promote Water Conservation FY23 Accomplishments •Enacted Outdoor Water Use Restrictions (Ordinance 2110) •Established Bozeman as a City for CEDAW (Resolution 5384) •Provided $998,000 in funding to Community & Support Services •Mobile crisis response in operation seven days a week •UDC Process in full swing with Engagement project, work sessions, and public meetings •Sensitive Lands Protection Plan has launched its Engagement portal and held its kick-off sessions with follow-up staff work underway FY24 Strategic Plan •Continue work on the UDC overhaul •Continue development of the Sensitive Lands Protection Plan •Promote Water Conservation through landscape design standards •Conduct follow-up work sessions and policy development around STR and HOA covenants •Incorporate Wetland Preservation in large- scale plans (PRAT Plan, Sensitive Lands, and UDC) 62 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change CITY COMMISSION 010- General 272,291 328,000 414,000 26.2 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change CITY COMMISSION Salaries & Benefits 177,810 209,500 214,000 2.1 % Operations & Maintenance 94,481 69,600 200,000 187.4 % Capital Outlay — 48,900 — -100.0 % Debt Service/Loans — — — — % Transfers Out — — — — % TOTALS 272,291 328,000 414,000 26.2 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change CITY COMMISSION 1110- City Commission 272,291 328,000 414,000 26.2 % Salaries & Benefits No FTE Changes Operating Operating budget increase as FY24 will be an election year. The budget anticipates two elections at approximately $75K each. Capital None City Commission Salaries & Benefits 52%Operating 48% 63 City Manager Major Objectives The City Manager’s Office focuses on supporting the Mission, Values, and Goals of the City and implementing the City’s Strategic Plan. This year’s budget includes $30,000 for ballot education in connection with the November 2023 ballot regarding the Bozeman Community Center to explain the impact of the ballot issue on government operations. Budget Allocation Funded by the General Fund, making up 5% of the fund’s appropriations. City Manager 5%General Fund FY23 Accomplishments •The City Manager's Office provided full support and collaboration on the completion of the Bozeman Public Safety Center and Ribbon Cutting through Project Management, Communications, and Administrative support (A Safe, Welcoming, City; A Well-Planned City). •Numerous Community Engagement Plans were implemented (An Engaged Community, A Well- Planned City), including: •Fowler Avenue Connection •Body Worn Cameras •PRAT Plan •Economic Vitality Strategy •Paid Parking •Unified Development Code •Historic Preservation Month Performance Measurements FY24 Strategic Plan The City Manager is charged with implementing the plan across functional teams. There is a focus on the seven priorities and the other projects selected by the Commission. Within the City Manager’s Office there is a focus on: •Completion and implementation of the Equity & Inclusion Plan •Thoughtful engagement around: UDC, Sensitive Lands, Equity & Inclusion Plan, Flower Avenue, HOA Covenants, Kagy Project 64 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change CITY MANAGER 010- General 1,308,294 1,400,800 2,576,900 84.0 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change CITY MANAGER Salaries & Benefits 1,011,605 1,177,600 1,960,300 66.5 % Operations & Maintenance 279,862 223,200 616,600 176.3 % Capital Outlay 16,592 — — — % Debt Service/Loans — — — — % Transfers Out 234 — — — % TOTALS 1,308,294 1,400,800 2,576,900 84.0 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change CITY MANAGER 1210- City Administration 1,216,115 1,400,800 2,576,900 84.0 % 1220 - City Clerk — — — — % 1260 - Neighborhood Program 92,179 — — — % TOTALS 1,308,294 1,400,800 2,576,900 84.0 % Salaries & Benefits Addition of four positions: •Grants Coordinator •Communications Specialist •Community Health & Safety Program Manager •Community Health & Safety Officer Operating Increase due to anticipated needs for new Assistant City Manager including equipment, training, travel, professional dues, and other professional development. Additional increases due to advertising, support, and consultants for Communications and Engagement. Capital None City Manager Salaries & Benefits 76% Operating 24% 65 City Clerk (City Manager’s Office) Major Objectives The City Clerk’s Office is dedicated to preparing the proceedings of the City Commission and preserving the City records, along with enhancing the ability of the citizenry to participate in local government. Budget Allocation Funded by the General Fund, making up 1% of the fund’s appropriations. City Clerk 1% General Fund FY23 Accomplishments •First full year of AskBZN communication portal (formerly referred to as Comcate) •Scanned over 300 boxes of records for import to Laserfiche •Acquired the technological components and software necessary for remote participation •Further implementation of High Performing Boards •Successful implementation of remote Commission participation in meetings FY23 Strategic Plan 1.1 Outreach (b): Dramatically increase transparency and create access to all city documents 7.3 Best Practices, Creativity & Foresight: 69% completed within 1 day with DocuSign and eliminates need for separate distribution to parties. 6.3 Climate Action: Average monthly reduction of 10,000+ pieces of paper from digital packets. This accounts for 260 reams of papers (approx. $10 each). 1.2 Community Engagement: Aiding with Advisory Board Consolidating and High Performing Board. Performance Measurements ***Performance Measures will be refined in FY24 to match systems necessary to collect data •Percent AskBZN Submissions Completed On Time: Track the percent of total AskBZN submissions that are resolved within a given due date. •Average AskBZN Submission Resolution Time: Track the average number of elapsed days between Comcate submission and resolution. FY24 Strategic Plan 1.1 Outreach (b) Dramatically increase transparency and create access to all city documents. 1.2 Community Engagement: Aiding with Advisory Board Consolidating and High Performing Board. 3.3 (a) Anticipate, celebrate, and incorporate an increasingly diverse population into the community, City advisory boards, and City staff. 66 FY24 Budget Division Budget by Fund Division Fund FY22 Actual FY23 Projected FY24 Adopted % Change CITY CLERK 010- General 303,270 447,600 518,000 15.7 % Division Budget by Category Division Category FY22 Actual FY23 Projected FY24 Adopted % Change CITY CLERK Salaries & Benefits 161,936 219,500 246,500 12.3 % Operations & Maintenance 141,334 228,100 271,500 19.0 % Capital Outlay — — — — % Debt Service/Loans — — — — % Transfers Out — — — — % TOTALS 303,270 447,600 518,000 Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change CITY MANAGER 1220-City Clerk 303,270 447,600 518,000 15.7 % Salaries & Benefits No FTE changes Operating Increases in contracted services driven by agenda, streaming, and captioning services, Laserfiche support, large- scale scanning vendor, and Docusign. Capital None City Clerk Salaries & Benefits 48%Operating 52% 67 City Attorney Major Objectives •Serve as Legal Officer pursuant to Sect. 4.03 of the Charter •To be a critical part of the City’s leadership through integration with department directors, HPO members, the City Commission, and other City agencies. •To enforce state laws and City ordinances pertaining to misdemeanor offenses within the City and to prosecute criminal cases in a timely and efficient manner. •To direct the legal operations of the City and serve as the city's legal counsel. Budget Allocation Funded mainly from the General Fund, making up 5% of the fund’s appropriations. City Attorney 5%General Fund FY23 Accomplishments •Continued to prioritize increasing the efficiency and effectiveness of the prosecution team •Prioritized cooperation with the Bozeman Police Department through coaching, preparing for trial, and shift briefings •Moved the Criminal Division to Bozeman Public Safety Center and worked to adjust to new team dynamics related to splitting the office •Added civil Legal Assistant •Lead efforts to address issues related to the unhoused •Prioritized efforts related to affordable housing FY23 Strategic Plans The City Attorney’s Office plays a role in the majority of Strategic Plan items, especially the following: •4.5 (b) Affordable Housing •4 A Well-Planned City •4.3 (e) Annexation Analysis •7 High Performing Organization Performance Measurements FY24 Strategic Plan Continue to play a significant role in the following: •3.1 Public Safety Support high-quality public safety programs •4.5 Housing and Transportation Choices Encourage the development of sustainable and lasting housing options for the underserved 68 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change CITY ATTORNEY 010- General Fund 1,576,707 2,316,100 2,592,300 11.9 % 174- Victim Witness Advocate 74,566 140,000 105,000 -25.0 % TOTALS 1,651,273 2,456,100 2,697,300 9.8 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change CITY ATTORNEY Salaries & Benefits 1,491,388 2,087,400 2,365,400 13.3 % Operations & Maintenance 159,885 343,700 331,900 -3.4 % Capital Outlay — 25,000 — -100.0 % Debt Service/Loans — — — — % Transfers Out — — — — % TOTALS 1,651,273 2,456,100 2,697,300 9.8 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change CITY ATTORNEY 1410 - City Attorney 1,576,657 2,306,100 2,582,300 12.0 % 1432 - Civil Litigation 50 10,000 10,000 — % 1460 - Criminal Prosecution - General — — — — % 1462 - Criminal Prosecution - Victim/Witness 74,566 140,000 105,000 -25.0 % TOTALS 1,651,273 2,456,100 2,697,300 9.8 % Salaries & Benefits Addition of Victim's Service Advocate (1 FTE) and reclassification of prosecutors to Assistant City Attorneys Operating Overall decrease due to reduction in budget for contracted services. Capital None City Attorney Salaries & Benefits 88% Operating 12% 69 Finance Major Objectives •Oversee efficient, effective, and transparent management of the public's resources by providing quality financial services, accurate financial reporting, and balanced budgets •Ensure compliance with financial policies, state and federal statutes, and Generally Accepted Accounting Principles (GAAP) •Develop long-term financial plans and funding strategies for various City operations Budget Allocation Funded by the General Fund, making up 3% of the fund’s appropriations. Finance 3%General Fund FY23 Accomplishments •Implemented long-term financial plans for the General Fund, all Enterprise Funds, and Special Districts •Received a clean audit report for fiscal year 2022 and received GFOA awards for budget and financial reports •Increased communication and collaboration between departments and finance through budget process, including a kick-off meeting to provide context and set expectations and individual review meetings •Implemented changes to the budget process based on GFOA's best practices and other accepted financial principles •Implemented new Utility payment software to increase efficiency and improve customer experience FY23 Strategic Plans The Finance Department supports the strategic plan efforts across the organization and focused internally on: 7.1 (b) Create a Culture of Innovation through lean practices 7.3 (c) Improve Departmental Collaboration through cross functional teams and in our internal support role 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 Performance Measurements •Receive Awards for financial reporting: •FY21 Annual Comprehensive Financial Report (ACFR) received GFOA Certificate of Excellence in Financial Reporting •FY22 Budget received GFOA Distinguished Budget Award •The FY22 ACFR and FY23 Budget have been submitted and are expected to received awards this year •Outside Indicators: No audit findings and maintained Aa1 bond rating FY24 Strategic Plan The Finance Department supports the strategic plan efforts across the organization and will focus internally on: 7.1 (b) Create a Culture of Innovation 7.3 (c) Improve Departmental Collaboration through cross functional teams and in our internal support role 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 70 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change FINANCE DEPARTMENT 010- General Fund 942,309 1,311,200 1,589,600 21.2 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change FINANCE DEPARTMENT Salaries & Benefits 647,268 977,500 1,196,300 22.4 % Operations & Maintenance 295,040 333,700 393,300 17.9 % Capital Outlay — — — — % Debt Service/Loans — — — — % Transfers Out — — — — % TOTALS 942,309 1,311,200 1,589,600 21.2 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change FINANCE DEPARTMENT 1510- Finance Administration 227,605 363,100 514,700 41.8 % 1520- Accounting 461,230 622,300 717,300 15.3 % 1530- Treasury 253,474 325,800 357,600 9.8 % TOTALS 942,309 1,311,200 1,589,600 21.2 % Personnel Addition of a Senior Financial Analyst (1 FTE) Operating Increase due to new contract with a Municipal Advisor in addition to budget for travel and training. Capital None Finance Salaries & Benefits 75% Operating 25% 71 Facilities (Strategic Services) Major Objectives •Provide a safe, comfortable, and professional working environment in all City facilities. •Maintain all buildings and related equipment in good working condition in a proactive manner that will help extend useful life. •Maintain a proactive approach for long-term facility planning and project scheduling in order to avoid costly problems of deferred maintenance. •Assure City buildings meet or exceed all applicable building codes, OSHA, and ADA requirements •Implement building design, maintenance, and operational practices resulting in energy saving Measurements. Budget Allocation Funded by the General Fund, making up 10% of the fund’s appropriations. Facilities 10% General Fund FY23 Accomplishments •Managed structural assessments and emergency repairs to the Swim Center in order to provide the public with a safe facility. Working on Phase I and II project upgrades that will go through FY24. •Coordinated the move services required to transition staff into the Bozeman Public Safety Center. •Managed pre-construction activities in preparation of construction on Lindley center, Bogert Swim Pool, and Swim Center. •Performed the first 12 major facilities inspections •Implemented a Facilities Condition Assessment process to include a software driven process FY23 Strategic Plans 3.1(a) Bozeman Public Safety Center: Participated in all phases of the project design and initial construction 7.3(c) Improve Departmental Collaboration: Bozeman Public Safety Center, Fire Station 1, and COVID-19 support 7.4(c) Performance Measurements: Data is being collected within the structure of Cityworks process Performance Measurements •Facility Condition Index: Establish a Facility Condition Index (FCI) for all City owned buildings to help prioritize current and future needs. ***Efforts in FY24 will establish necessary benchmarks, including future project needs FY24 Strategic Plan 3.1 Public Safety: Manage Fire Station #2 Construction (relocation) 3.4 Active Recreation: Begin Recreation Facility Bond Projects (Swim Center, Lindley Center, Bogert Pool) 7.4 Performance Metrics: Expand Facility Condition Assessment Program 72 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change FACILITIES MANAGEMENT 010- General Fund 1,752,652 3,083,400 5,580,300 81.0 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change FACILITIES MANAGEMENT Salaries & Benefits 429,991 683,500 983,400 43.9 % Operations & Maintenance 1,205,588 2,148,500 2,103,000 -2.1 % Capital Outlay 114,935 249,600 2,486,500 896.2 % Debt Service/Loans — — — — % Transfers Out 2,138 1,800 7,400 311.1 % TOTALS 1,752,652 3,083,400 5,580,300 81.0 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change FACILITIES MANAGEMENT 1810- City Hall 561,958 854,700 1,657,700 94.0 % 1815 - Facilities Admin — — 1,083,100 — % 1820- Fire Station #1 56,299 10,900 — -100.0 % 1830- Shop Complex 101,584 128,500 132,300 3.0 % 1840- Professional Building 356,836 601,100 1,117,000 85.8 % 1850- Senior Center 105,022 112,000 151,000 34.8 % 1860- Library 380,941 473,700 435,500 -8.1 % 1870- Fire Station #2 23,604 36,900 87,100 136.0 % 1880- Fire Station #3 50,865 74,000 56,900 -23.1 % 1890- BPSC 115,542 791,600 859,700 8.6 % TOTALS 1,752,652 3,083,400 5,580,300 81.0 % Salaries & Benefits Addition of an Assistant Superintendent of Facilities (1 FTE) and Facilities Worker (1 FTE). Cost of the Facilities Worker is split 50% to the Parking Fund to support the Parking Garage. Operating Overall reduction in operating budget to align with prior years spending. Capital FY24 Capital Project Listing - Facilities Fund Division Project #Project Name FY24 10 Facilities GF001 Elevator Replacement 275,000 10 Facilities GF328 Vehicle Replacement 49,000 10 Facilities GF329 Vehicle Replacement 49,000 10 Facilities GF346 Facility Condition Invent 50,000 10 Facilities GF360 LED Lighting Upgrade - Prof Building 40,000 10 Facilities GF365 Senior Center Parking Lot 45,100 10 Facilities GF366 Professional Building Parking Lot 42,900 10 Facilities GF367 Service Worker Vehicle 49,000 10 Facilities GF368 Site FCA Repairs 236,500 10 Facilities GF369 Facility Needs Assessment 150,000 10 Facilities GF370 City Hall Renovations 1,500,000 Facilities Total 2,486,500 Facilities Salaries & Benefits 18% Operating 38% Capital 45% 73 Information Technology Major Objectives •Support all technology related hardware/ software for the City. •Maintain antivirus and other security related components to keep City data safe. •Design and support systems that provide continuity of operations in the event of a system failure. •Support Strategic plan objectives as they pertain to City Technology and communications. Budget Allocation Funded by the General Fund, making up 5% of the fund’s appropriations. IT 5%General Fund FY23 Accomplishments •Finished the rollout of One Drive •BPSC IT systems deployed and configured •Updated Commission Room technology for remote board participation FY23 Strategic Plans 1.2 (b) Increased Community Engagement in City Decision Making: Continued improvements to ADA Compliance 3.1 (d) Police and Fire Technology: Finished assisting with deployment of body cams, interview rooms, and in-car systems. New cradle points in fire. 7.3 (b) Systems Integrations: Invoice Cloud and Civic Rec ties to Naviline, and Avolve/LaserFiche ties Performance Measurements FY24 Strategic Plan 3.1 (b) Improve Emergency Preparedness: Phase II of DR Plan-Business Continuity 3.1 (d) Police and Fire Technology: Fire Station 2 relocation and new equipment for apparatus and new truck setups 7.3 (c) Improve Department Collaborations: All users on same version of Office 365 for true collaboration and archiving and e-discovery 74 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change INFORMATION TECHNOLOGY 010- General Fund 1,531,054 2,316,400 2,603,800 12.4 % 555-Technology Fund — 2,200 — -100.0 % TOTALS 1,531,054 2,318,600 2,603,800 12.3 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change INFORMATION TECHNOLOGY Salaries & Benefits 936,069 1,319,400 1,499,700 13.7 % Operations & Maintenance 541,118 727,600 1,020,800 40.3 % Capital Outlay 53,132 268,300 80,000 -70.2 % Debt Service/Loans — — — — % Transfers Out 735 3,300 3,300 — % TOTALS 1,531,054 2,318,600 2,603,800 12.3 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change INFORMATION TECHNOLOGY 1910- Information Technology 1,531,054 2,318,600 2,603,800 12.3 % Salaries & Benefits Addition of an Applications Support and Integration Specialist (1 FTE) Operating Increase due to software maintenance contract increases and renewals as well an increase in consulting engagements. Capital FY24 Capital Project Listing - Information Technology Fund Division Project #Project Name FY24 10 Information Technology GF080 City-Wide Switches and Routers 55,000 10 Information Technology GF265 Server Replacement Genera Fund 25,000 Information Technology Total 80,000 Information Technology Salaries & Benefits 58% Operating 39% Capital 3% 75 Human Resources Major Objectives •Accurately and efficiently process the City’s payroll and related payments and tax filings •Administer the City’s employee benefits •Monitor compliance with labor contracts, employee handbook, laws, rules, and regulations •Support Strategic Plan objectives as they pertain to the City’s workforce Budget Allocation Funded by the General Fund, making up 2% of the fund’s appropriations. HR 2% General Fund FY23 Accomplishments •Filled five key executive-level positions: 1 Assistant City Manager, 3 Directors, and 1 Deputy Director •Reduced vacancy rate by 10% and filled 49 out of 55 Short-Term Worker positions in summer of 2022 •Completed internal compensation analysis and implemented pay increases City-wide •Negotiated and implemented IAFF and MFPE contract changes •Implemented new "Semi-Annual Development Discussion" program FY23 Strategic Plans 7.2(a) Employee Excellence: New approach to employee evaluation designed to focus on coaching and professional development and to hold employees and supervisors accountable 7.3(d) Diversity Goals: Continued work on implementation of Inclusive City Charter initiatives Performance Measurements FY24 Strategic Plan 7.2 Employee Excellence: Maintain recruitment budget to continue efforts to reach diverse, well- trained, and qualified candidates 7.2(a) Be a “Best in Class” Employer: Increase in training budget to support professional development opportunities for HR staff and to provide additional organization-wide training initiatives. Supervisor/ leadership training for HPO and systems training for new Payroll Associate continue to be critical. 7.2(d) Set Diversity Goals: Maintain recruitment/ advertisement budget for focused effort on achieving diversity goals. 76 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change HUMAN RESOURCES 010- General Fund 603,464 982,200 1,078,700 9.8 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change HUMAN RESOURCES Salaries & Benefits 508,092 777,600 824,600 6.0 % Operations & Maintenance 95,371 204,600 254,100 24.2 % Capital Outlay — — — — % Debt Service/Loans — — — — % Transfers Out — — — — % TOTALS 603,464 982,200 1,078,700 9.8 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change HUMAN RESOURCES 2010- Human Resources 603,464 982,200 1,078,700 9.8 % Salaries & Benefits Reclassification of HR Associate to Senior HR Associate Operating Increase due to City-wide training initiatives and maintenance contracts. Capital None Human Resources Salaries & Benefits 76% Operating 24% 77 Planning & Code (Community Development) Major Objectives •Plan for the growth and development of the City of Bozeman •Oversee long-range planning, current development, historic preservation, and related advisory boards and commissions •Address City and State ordinances and codes as they related to the health, safety, and general quality of life concerns of our residents, neighborhoods, and community. Budget Allocation Funded by Special Revenue, making up 6% of all Special Revenue Funds' appropriations. Planning 6% Special Revenue Fund FY23 Accomplishments •Initiated the UDC Revision project, "Building our Future Together" •Adopted housing affirmative ordinance revisions •Invested in Community Development Board operations •Hired a Code Compliance Program Manager, retained Code Compliance staff during transition •Continued administration of snow removal compliance and abatement •Implemented new Code Compliance case management software, renegotiated short-term rental (STR) software contract •Began implementation of new noise ordinance processes Performance Measurements ***Efforts are currently underway to implement technology systems needed to provide data (Avolve). •Application Fees: Analyze the percentage of fees intended to cover costs relative to both review timeframes and staffing levels FY24 Strategic Plan Engaged Community •1 Outreach •1.2 (a) Enhance City Committees and Advisory Boards Safe, Welcoming Community •3.1 Public Safety A Well-Planned City •4.2 High Quality Urban Approach •4.3 Strategic Infrastructure Choices •4.4 Vibrant Downtown, Districts & Centers •4.5 Housing and Transportation Choices High Performance Organization •7.2 Employee Excellence •7.3 (b) System Integration 78 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change COMMUNITY DEVELOPMENT 100-Community Development Fund 2,610,574 3,436,500 4,231,100 23.1 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change COMMUNITY DEVELOPMENT Salaries & Benefits 1,786,655 2,362,100 2,783,900 17.9 % Operations & Maintenance 292,405 605,600 923,000 52.4 % Capital Outlay 78,459 40,000 25,000 -37.5 % Debt Service/Loans — — — — % Transfers Out 453,055 428,800 499,200 16.4 % TOTALS 2,610,574 3,436,500 4,231,100 23.1 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change COMMUNITY DEVELOPMENT 1610- Planning Operations 1,305,265 1,684,800 2,216,200 31.5 % 1620- Development Review 817,425 1,168,200 1,134,700 -2.9 % 1630- Long-Range Planning 240,775 310,100 444,900 43.5 % 1650- Code Enforcement 200,867 272,800 384,700 41.0 % 1660- Historic Preservation 45,601 — 50,000 — % 1670- Zoning Operations 641 600 600 — % TOTALS 2,610,574 3,436,500 4,231,100 23.1 % Salaries & Benefits Addition of a Planner III - Development Review (1 FTE). Operating Increase due primarily to Contracted Services for work on projects including the Unified Development Code (UDC) update, impact fee study, legislative response, and local historic preservation program and design guidelines. Capital FY24 Capital Project Listing - Planning Fund Division Project #Project Name FY24 100 Planning CD08 Office Reconfigurations 25,000 Planning Salaries & Benefits 66% Operating 22% Capital 1% Transfers 12% 79 Municipal Court Major Objectives •Continue providing an up-to-date court docket. •Maintain efficient collection of fines and restitution. •Apply for funding for the implementation of the BRIDGERS DUI Treatment Court. •Moving towards e-filing to facilitate filing efficiency Budget Allocation Funded mainly by the General Fund, Municipal Court makes up 3% of the fund’s appropriations. Municipal Court3%General Fund FY23 Accomplishments •Moved into Bozeman Public Safety Center •Transitioned to updated software/database with training from Office of Supreme Court Administrator •Initiated a diversion program for driving while suspended citations and the insurance program to assist drivers obtaining valid licenses and insurance. Approximately 32 people have obtained a valid driver's license and 75 individuals have provided proof of insurance for the term of their sentences. Performance Measurements FY24 Strategic Plan 3.1 Public Safety: Support high quality public safety programs, emergency preparedness, facilities, and leadership. •Apply for grant funding to start BRIDGERS DUI Treatment Court •Continue diversion program 7.2(a) Be a “Best in Class” Employer: Enhance the attractiveness of the City as a place to work through salary and benefit packages, workplace amenities and facilities, as well as professional development. •Budgeted for increased employee training •Continue cross training employees 80 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change MUNICIPAL COURT 010- General Fund 1,002,019 1,532,200 1,720,300 12.3 % 178- Veteran Court 98,036 52,000 — -100.0 % 196- COOCLI Grant 45,640 16,400 — -100.0 % TOTALS 1,145,695 1,600,600 1,720,300 7.5 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change MUNICIPAL COURT Salaries & Benefits 934,859 1,397,400 1,590,600 13.8 % Operations & Maintenance 202,261 133,900 129,700 -3.1 % Capital Outlay 6,692 — — — % Debt Service/Loans 1,883 900 — -100.0 % Transfers Out — 68,400 — -100.0 % TOTALS 1,145,695 1,600,600 1,720,300 7.5 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change MUNICIPAL COURT 1310-Municipal Court 1,145,705 1,435,800 1,540,600 7.3 % 1320- VETS Court (10) 164,800 179,700 9.0 % TOTALS 1,145,695 1,600,600 1,720,300 7.5 % Salaries & Benefits The Municipal Court expects the addition of Case Manager MHCF Grant and Case Manager BJA Grant. Both positions are currently excluded from the budget, and will be added when the City is formally awarded and the City Commission accepts the grant. Operating Overall reduction in operating budget primarily due to a decrease in contracted services as substitute judges are now City employees. Capital None Municipal Court Salaries & Benefits 92% Operating 8% 81 82 Public Safety Police- The Police Department budget accounts for costs associated with providing all law enforcement services within the city of Bozeman. The general fund budget primarily supports the operation of the patrol, investigative, and support services divisions. Officers from these divisions are responsible for detecting, preventing, and investigating all crimes occurring within the city as well as providing a broad range of public safety services. Fire - The Fire Department provides fire, rescue, hazardous materials, and emergency medical services throughout Bozeman, while ensuring that firefighters are equipped and trained to nationally recognized consensus standards. Additionally the department maintains a fire prevention program that is comprised of fire and life safety inspections, community outreach, school programs, emergency preparedness, and public education. Building Inspection (Community Development) - The Building Division unit accounts for expenditures utilized to monitor construction projects within the city of Bozeman jurisdictional area as allowed by state law. The intent of this budget unit is to provide guidance and to enforce the minimum building code standards in order to safeguard life, health, property, and public welfare by regulating and controlling the use, design, quality of materials, and construction of buildings and structures within the Bozeman city limits. Parking (Economic Development)- The Parking Services Division (PSD), joined to the Economic Development Department, has responsibility for managing and enforcing public parking within the City of Bozeman, to include the Downtown (B-3), MSU & Bozeman High Residential Parking Permit Districts, Bridger Park Downtown Garage, the Black/Rouse/N Willson/S. Willson surface lots, and on all on-street parking. 83 Police Major Objectives •Detect, investigate, and proactively deter criminal activity. •Provide assistance to those who cannot care for themselves or those in danger of physical harm. •Provide crime prevention and safety education to schools, civic groups, businesses, and the public. •Develop positive programs, in partnership with the members of our community, to address public safety issues through community engagement and outreach. Budget Allocation Funded primarily by the General Fund with additional programs funded by special revenue funds. Police 26% General Fund FY23 Accomplishments •Moved primary police operations into Bozeman Public Safety Center •Completed the full implementation of body- worn cameras for all officers •Worked with various stakeholders to start mobile crisis response FY23 Strategic Plans 3.1(d) Update Public Safety Technology Systems: Integrated BPSC technology with Zuercher records management system 3.2(c) Develop City/County Social Service Network: Worked with Gallatin County and other community partners to implement a Mobile Crisis Response program 7.3 (c) Improve Departmental Collaboration: worked with other City departments to develop common solutions to houseless response Performance Measurements FY24 Strategic Plan 1.1(b) Continue to strengthen and innovate in how we deliver information to the community and our partners. 3.1(d) Update Public Technology System: Purchase and implement Secure Warrant and Cellebrite cell phone technology systems to increase officer efficiencies and crime solutions. 4.3(d) Explore sustainable technology: Continue to replace the BPD patrol car fleet with hybrid vehicles and explore all electric vehicle options. 7.2 Employee Excellence: Recruit, retain, and value a diverse, well-trained, qualified and motivated team capable of delivering superior performance. Increase training for officers and detectives. 84 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change POLICE 010- General Fund 10,866,743 12,692,000 14,212,900 12.0 % 125- Drug Forfeiture 293,612 267,700 262,800 -1.8 % 138- Law & Justice Ctr. Prepaid Rent 19,125 235,900 — -100.0 % 139- Police Special Revenue 20,742 11,000 — -100.0 % 140- Police Domestic Violence 23,165 300 — -100.0 % 501 - BOZ Public Safety Center 21,082,937 2,460,000 — -100.0 % TOTALS 32,306,323 15,666,900 14,475,700 -7.6 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change POLICE Salaries & Benefits 9,849,971 11,303,600 12,838,200 13.6 %Operations & Maintenance 1,707,109 1,926,600 1,237,500 -35.8 % Capital Outlay 20,747,756 2,191,000 382,200 -82.6 % Debt Service/Loans — 35,000 17,800 -49.1 % Transfers Out 1,486 210,700 — -100.0 % TOTALS 32,306,323 15,666,900 14,475,700 -7.6 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change POLICE 3010- Police Operations 29,545,487 12,639,400 10,982,200 -13.1 % 3020- Crime Control & Investigations 2,244,973 2,423,300 2,890,000 19.3 % 3040- Drug Forfeiture 293,612 267,700 262,800 -1.8 % 3070- Animal Control 222,252 336,500 340,700 1.2 % TOTALS 32,306,323 15,666,900 14,475,700 -7.6 % Salaries & Benefits Addition of a Lieutenant (1 FTE), four Police Officers (1 FTE each), two Police Interns, and reclassification of Sergeant to Lieutenant. There is also 0.5 FTE added to increase the Digital Forensics Analyst position from 0.5 to 1.0 FTE. Operating With Police settled into the Bozeman Public Safety Center, operational expenses related to supplies and materials are anticipated to decrease in FY24 resulting in an overall reduction in operational budget. Capital1 FY24 Capital Project Listing - Police Fund Division Project #Project Name FY24 10 Police GF053 Patrol Car & Equipment Replacement 308,200 10 Police GF294 Patrol Car - Additional 74,000 10 Police GF316 Police Body Camera System* 67,000 Police Total 449,200 Police Salaries & Benefits 89% Operating 9% Capital 3% —% 85 1 GF316 will not be capitalized and is included in the Operating budget. Fire Major Objectives •Begin construction on Fire Station 2 •Place two, new fire engines in service •Implement new radio system •Conduct Self-Assessment process required for accreditation Budget Allocation Fire is supported operationally through the General Fund and also by various special revenue funds. FIre 17% General Fund General Fund, 37% Fire Impact Fees 21% Fire Capital & Equipment 12% GO Bonds FS2 & Rec Improv 2% Fire Station 2 Construction 28% FY23 Accomplishments •Relocated Fire Station 1 to BPSC •Updated Fire Department Strategic Plan •Conducted two, joint recruit firefighter academies FY23 Strategic Plans 1.1 Conduct a Community Risk Assessment and Standards of Cover 2.1 Prepare the next generation of leaders 3.1(d) Implement the Fire Station Location Plan: Established BPSC as new FS1 headquarters Performance Measurements FY24 Strategic Plan 1.2 Develop public outreach, engagement, and education 3.1 Develop fire department facilities plan 3.3 Review and update resource deployment 86 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change FIRE 010- General Fund 7,735,154 8,470,400 9,288,500 9.7 % 113- Fire Impact Fees 32,967 28,700 5,327,900 18464.1 % 183- Fire Department Special Revenue 52,895 1,900 — -100.0 % 187- Fire Capital & Equipment 102,478 2,641,700 2,892,800 9.5 % 311- GO Bonds FS2 & Rec Improv — 150,300 509,600 239.1 % 572 - Fire Station 2 Relocation Const 351,500 6,730,000 6,895,700 2.5 % TOTALS 8,274,993 18,023,000 24,914,500 38.2 % Department Budget by Category Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change FIRE Salaries & Benefits 7,083,500 7,527,500 8,252,200 9.6 % Operations & Maintenance 723,927 857,900 858,500 0.1 % Capital Outlay 294,318 8,389,300 8,438,700 0.6 % Debt Service/Loans — 150,300 509,600 239.1 % Transfers Out 173,248 1,098,000 6,855,500 524.4 % TOTALS 8,274,993 18,023,000 24,914,500 38.2 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change FIRE 3110- Fire Administration 1,031,236 7,556,700 9,636,600 27.5 % 3120- Fire Operations 7,150,812 10,374,000 15,128,300 45.8 % 3130- Operational Readiness 50,005 51,000 57,000 11.8 % 3140- Fire Prevention 26,021 26,000 26,100 0.4 % 3160- Hazardous Materials 16,920 15,300 14,400 -5.9 % 3180- EMS Ambulance Services — — 52,100 — % TOTALS 8,274,993 18,023,000 24,914,500 38.2 % Salaries & Benefits Addition of three Firefighters (1 FTE each) Operating Operating budget is in line with prior year spending. Capital FY24 Capital Project Listing - Fire Fund Division Project #Project Name FY24 113 Fire Impact Fee FIF06 Fire Station 4 Land Acquisition & Design 1,500,000 187 Fire Capital & Equip FE12 Personal Protective Equipment 43,000 Fire Salaries & Benefits 33%Operating 3% Capital 34% Debt Service 2% Transfers 28% 87 Building Inspection (Community Development) Major Objectives •Develop and retain an adequate level of qualified staff to handle current and projected workload. •Build a diverse workforce in both experience and education without sacrificing our work quality, service and minimum performance standards. •Provide staff with the tools and training to be able to offer consistent inspections even as new construction methods are introduced to the community. Budget Allocation Department is funded through a Special Revenue Fund - Building Inspection Fund. Special Revenue Funds Planning 6% FY23 Accomplishments •Staff retention, training, and advancement •Continued strides in standardization and documentation •New pro-efficiency processes, including mater building plan review, foundation only permits Performance Measurements FY24 Strategic Plan An Engaged Community •1.4 Business and Institutional Partnerships A Safe, Welcoming Community •3.1 Public Safety A Well-Planned City •4.2 High Quality Urban Approach High Performance Organization •7.2 Employee Excellence •7.3 (b) System Integration 88 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change BUILDING INSPECTION 115- Building Inspection Fund 2,845,939 3,792,200 4,539,300 19.7 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change BUILDING INSPECTION Salaries & Benefits 1,798,975 2,508,300 3,191,000 27.2 % Operations & Maintenance 548,032 856,600 807,600 -5.7 % Capital Outlay 157,287 40,000 75,000 87.5 % Debt Service/Loans — — — — % Transfers Out 341,646 387,300 465,700 20.2 % TOTALS 2,845,939 3,792,200 4,539,300 19.7 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change BUILDING INSPECTION 3210-Building Inspection 2,845,939 3,792,200 4,539,300 19.7 % Personnel No additional personnel in FY24. Operating Overall reduction in operating expenses budgeted in FY24 due primarily to one-time software and computer supplies purchases in FY23. Capital FY24 Capital Project Listing - Building Inspection Fund Fund Division Project #Project Name FY24 115 Building Inspection CD08 Office Reconfigurations 25,000 115 Building Inspection BI05 Building Vehicle 50,000 Building Inspection Total 75,000 Building Inspection Salaries & Benefits 70% Operating 18%Capital 2% Transfers 10% 89 Parking (Economic Development) Major Objectives •Regulate the use of on-street and off-street public parking to the best use of our citizens through equitable enforcement and management practices. •Operate the Parking Services Division in an effective and fiscally sustainable manner. •Facilitate a prosperous local economic environment through the provision of safe, convenient, available, and cost-appropriate public parking resources. Budget Allocation Parking Fund is an enterprise fund. Parking Revenue 1,287,710 1,154,669 1,088,425 1,142,800 1,191,100 FY20 FY21 FY22 FY23 Proj. FY24 Adopted 1,000,000 1,100,000 1,200,000 1,300,000 FY23 Accomplishments •Completed extensive community engagement regrading on-street paid parking in downtown core. Researched options for employee parking, secured site for a second parking garage, and developed several other recommendations for the City Commission related to paid parking. •Developed and began the implementation of maintenance manual for the Bridger Parking Garage. The maintenance manual is a requirement of the federal grant that funded the garage and will allow the parking garage to remain in good working order for the entirety of its useful life. •Created a Lead Parking Compliance Officer position. This position adds another rung to the job ladder for parking compliance officers. FY23 Strategic Plans 4.2 High Quality Urban Approach: Continue to evolve our parking management program with bold solutions to our management challenges, including the on-street paid parking proposal. 7.2 Employee Excellence: Parking has taken a dedicated approach to providing excellent customer service to the public and to encourage professional development. 7.3 Improve Departmental Collaboration: Parking services routinely assists Police, Streets, and Public Works in providing excellent service to the public. Performance Measurements ***Systems are currently being implemented to collect and analyze data. •Median Parking Occupancy: Track occupancy of block faces within the Downtown Parking Benefit Zone, public lots, and parking structures to monitor exceedance of target range of 75-85% average occupancy within all parking enforcement areas. •Parking Permit Utilization: Track total number of parking permits available within restricted areas and total number of permits issued to monitor parking permit utilization and occupancy across permit area. •Parking Complaint Response: Track the proportion of parking complaints in which parking enforcement officers are able to respond. FY24 Strategic Plan 4.2 (c) Parking Management by District: Parking Services will utilize the new parking management plan to better align management strategies and enforcement resources. 7.3 (d) Update Departmental Plans: Parking Services plans to update the outdated 2016 Downtown Strategic Parking Management Plan, 20/26 tasks have been completed. 7.5 Funding and Delivery of City Services: Parking Services aims to adjust permit rates and citation fines to better reflect costs associated with operating parking facilities, enforcement operations and technology, and personnel time dedicated to each task. 90 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change PARKING 650- Parking Enterprise Fund 1,018,093 1,432,400 1,916,900 33.8 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change PARKING Salaries & Benefits 386,769 515,200 591,200 14.8 % Operations & Maintenance 477,292 577,600 693,900 20.1 % Capital Outlay 66,666 212,100 500,000 135.7 % Debt Service/Loans — — — — % Transfers Out 87,366 127,500 131,800 3.4 % TOTALS 1,018,093 1,432,400 1,916,900 33.8 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change PARKING 3310- Parking Administration 452,398 482,400 525,800 9.0 % 3320- Parking Operations/Enforcement 325,508 423,400 578,000 36.5 % 3330- Parking Garage Operations 240,186 526,600 813,100 54.4 % TOTALS 1,018,093 1,432,400 1,916,900 33.8 % Salaries & Benefits The Parking Fund include budget in FY24 to pay for 0.5 FTE of the Facilities Worker added in FY24. This position will spend half it's time supporting the Parking Garage. Operating Increase due primarily to contracted services for consultant to draft a new Strategic Parking Management Plan. Capital FY24 Capital Project Listing - Parking Fund Fund Division Project #Project Name FY24 650 Parking Fund P030 Mobile LPR Technology 100,000 650 Parking Fund P031 Crack Repair Bridger Garage 250,000 650 Parking Fund P034 Fixed LPR Technology 150,000 Parking Total 500,000 Parking Salaries & Benefits 31% Operating 36% Capital 26% Transfers, 7% 91 92 Public Works Public Works Administration - Public Works administration oversees and supports the Public Works divisions. Engineering - Provide professional level technical support to the other Public Works divisions and other City Departments. GIS & Asset Management (Strategic Services) - Geographic Information System provides the foundation for data collection, analysis and visualization for many aspects of city government. Asset Management leverages this data to minimize risk and life-cycle costs to effectively deliver best-in-class service throughout the community. Solid Waste - The Solid Waste Division (SWD) proudly serves the City of Bozeman Solid Waste customers by providing them with a myriad of programs and services that effectively and efficiently manage municipal solid waste generated within the Bozeman City limits. Stormwater - Manage stormwater infrastructure through maintenance, improvement, and repair activities to ensure the adequate control and conveyance of urban stormwater runoff, reducing the City’s liability associated with flooding. Protect and improve waterway health and treatment infrastructure projects to safeguard the public, environment, and local waterways from pollution. Streets Maintenance - The goal of the Street Maintenance division is to help provide for a network of safe roadways for the traveling public and access to desired destinations in a quick, convenient, safe and comfortable manner while minimizing harmful effects on the environment. Vehicle Maintenance - The Vehicle Maintenance budget unit accounts for the costs of repairing and maintaining vehicles of the City. The budget unit operates under an internal service fund. Charges are assessed against departments, which have vehicles repaired. Wastewater – Operations - Providing and maintaining a wastewater collection system for the City. The Division maintains a program of inspecting, cleaning, root cutting, repairing sanitary sewer mains and manholes, and tapping for new wastewater stubs. Wastewater operations is also responsible for maintaining the City’s eight sanitary sewer lift stations. Wastewater - Water Reclamation Facility (WRF) - The WRF is an award-winning plant with the main objective being to protect and enhance the water quality of the East Gallatin River where it discharges. Through its beneficial reuse program, the WRF maintains compliance with the Montana Pollutant Discharge Elimination System (MPDES) discharge permit administered by the DEQ. Water – Operations - Operating and maintaining the City’s water transmission and distribution system. We are responsible for: locating, maintaining, and repairing existing water lines and appurtenances; overseeing installation of new water lines; installing and rotating water meters and reading all meters monthly. Water - Water Treatment Plant (WTP) - Water Treatment Plants maintain a quality drinking water supply. The City has 2 WTPs: 22 Million Gallon Per Day (MGD) Sourdough Plant and 3.7 MGD Lyman Creek Plant. All plants are operated 24 hours per day, 365 days per year. Water - Water Conservation - Protect and enhance water resources through conservation in order to meet the IWRP’s 50-year demand reduction target. 93 Public Works Admin Major Objectives •Coordinate the activities of the Public Works Department. •Establish and maintain policies, procedures, and protocol for the department’s functions. •Provide general oversight of activities affected by new federal and state mandates. •Assure master plan implementation is cost-effective and that infrastructure improvements are constructed in a quality manner to provide reliable service for immediate and long-term needs. Budget Allocation Public Works Admin Internal Service Fund Admin 32% FY23 Accomplishments •The Administrative Division successfully hired a Director of Transportation and Engineering and a City Engineer. •Placed in service, redundant 30" treated water line from plant to Sourdough tank. •Signed lease for office space at 7 E. Beall for Stormwater and Water Conservation. FY23 Strategic Plans 4.3 Strategic Infrastructure Choices: Valley Center (Silos) and Riverside Lift Station Agreements, N 3rd Water, Sewer, Street Renovation Agreement 4.5 Housing and Transportation Choices: USD Updates to parking and transportation, BZN SAFE Plan 7.3 Best Practices, Creativity, and Foresight: Infrastructure Design Review process modernization Performance Measurements This function oversees the performance of all of Public Works. FY24 Strategic Plan Oversee all of Public Works Strategic Plan efforts in FY24. 94 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change PUBLIC SERVICE 750- Public Services Admin. 1,230,277 2,195,100 2,201,400 0.3 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change PUBLIC SERVICE Salaries & Benefits 550,582 1,031,600 1,068,200 3.5 % Operations & Maintenance 308,312 446,700 337,200 -24.5 % Capital Outlay 27,539 — — — % Debt Service/Loans 22,198 89,700 93,300 4.0 % Transfers Out 321,646 627,100 702,700 12.1 % TOTALS 1,230,277 2,195,100 2,201,400 0.3 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change PUBLIC SERVICE 4010- Public Works Admin 1,230,277 2,003,600 2,081,500 3.9 % 4090- Director of Utilities — 191,500 119,900 -37.4 % TOTALS 1,230,277 2,195,100 2,201,400 0.3 % Salaries & Benefits No additions in FY24. Operating Overall decrease in operating budget for FY24 primarily due to a high FY23 projection for snow removal due to significant weather events. Capital None Public Works Administration Salaries & Benefits 49% Operating 15%Debt Service 4% Transfer 32% 95 Engineering Major Objectives •Design and oversee construction of the annual street, water, and wastewater replacement projects •Review and ensure that public infrastructure installed by private sector conforms to the City’s standards •Develop and implement the City’s water, wastewater, stormwater, water resources, and transportation master plans and associated capital budgets Budget Allocation Engineering personnel and basic operating costs are funded Public Works Admin Internal Service Fund: Engineering 43% FY23 Accomplishments •Griffin Drive Reconstruction (Western Half) •WRF Solids Handling Expansion (50% Complete) •Sourdough Fuels Reduction – Phase 1 and 2 •Wastewater Facility Model Update – continuing Phase 2 •Various chip seal and mill overlay work •Development Review (>500 completed) FY23 Strategic Plans 4.3 Davis Lift Station/E. Norton Interceptor and Trunk Sewer 4.5 Completed Street Improvements on Griffin Drive, including bike and pedestrian facilities 4.3(f) Hired new TDM coordinator to work on the enhancement of non-motorized transportation 7.3 Participated in Avolve system implementation for development review and expanded use of Smartsheets for better collaboration Performance Measurements FY24 Strategic Plan Work with new Director of Transportation and Engineering on priorities including: •Design standards •Comprehensive City Stormwater Master Plan •Modernize old processes (Avolve, Smartsheets, Field bases system for quicker occupancy inspections, training, SOP, etc.) 96 FY24 Budget Department Budget by Fund Division Fund FY22 Actual FY23 Projected FY24 Adopted % Change ENGINEERING 750- Public Services Admin. 1,582,507 2,422,900 2,891,000 19.3 % Department Budget by Category Division Category FY22 Actual FY23 Projected FY24 Adopted % Change ENGINEERING Salaries & Benefits 1,308,383 1,994,300 2,205,300 10.6 % Operations & Maintenance 246,443 428,600 685,700 60.0 % Capital Outlay 12,408 — — — % Debt Service/Loans 15,274 — — — % Transfers Out — — — — % TOTALS 1,582,507 2,422,900 2,891,000 19.3 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change PUBLIC WORKS ADMIN 4020- Engineering 1,582,507 2,422,900 2,891,000 19.3 % Salaries & Benefits Addition of two short-term worker Engineering Inspectors. Operating Increase due to contracted services for Engineering Design Standards Phase 2, Transportation Master Plan Update, and federal grant writing assistance to pursue and apply for federal transportation grants. Capital There are many capital projects planned for FY24. See the Capital Project Listing on pages 157-160 for the detailed capital listing. Engineering Salaries & Benefits 76% Operating 24% 97 GIS/Asset Management (Strategic Services) Major Objectives •Reduce operations & maintenance costs by leveraging data to be more efficient •Plan for future growth while mitigating issues related to aging infrastructure •Measure, monitor and communicate performance for city services •Engage citizens and provide transparency to effectively communicate value Budget Allocation Funded by the Public Works Admin Internal Service Fund GIS/Asset Management 25% FY23 Accomplishments •ArcGIS portal for Engineering, Parks, Streets and Police •Cityworks Mobile for Parks and inspections for Water Conservation •Onboarding of all new staff FY23 Strategic Plans 7.3 (b) System Integration: Avolve Infrastructure Acceptance for Engineering 7.4 (a) Develop Analysis Tools: Community Plan Dashboard 7.4 (d) Strategic Municipal Service Delivery Expectations: National Community Survey Performance Measurements FY24 Strategic Plan 3.1 Public Safety: Expand GIS Services to the Police Department 6.6 Habitat: Finalize Gallatin Valley Sensitive Lands Protection Plan 7.3 Best Practices, Creativity & Foresight: Implement Systems for Utility Modeling (Innovyze), Long Range Planning (CIP), and the Development Process (Avolve) 98 FY24 Budget Department Budget by Fund Division Fund FY22 Actual FY23 Projected FY24 Adopted % Change GIS/ASSET MANGT 750- Public Services Admin. 1,012,334 1,631,100 1,704,700 4.5 % Department Budget by Category Division Category FY22 Actual FY23 Projected FY24 Adopted % Change GIS/ASSET MANAGEMENT Salaries & Benefits 594,236 910,500 936,200 2.8 % Operations & Maintenance 373,797 670,600 573,500 -14.5 % Capital Outlay 44,300 50,000 195,000 290.0 % Debt Service/Loans — — — — % Transfers Out — — — — % TOTALS 1,012,334 1,631,100 1,704,700 4.5 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change STRATEGIC SERVICES 4025- GIS/Asset Mgmt 1,012,334 1,631,100 1,704,700 4.5 % Personnel No additions in FY24. Operating Overall decrease in operating budget for FY24 primarily due to $200k budgeted in contracted services for Sensitive Lands Study in FY23. Capital FY24 Capital Project Listing - Public Works Administration Fund Fund Division Project #Project Name FY24 750 Public Works Administration GIS04 Aerial Photography 65,000 750 Public Works Administration GIS09 LiDAR 65,000 750 Public Works Administration GIS10 Land Cover Acquisition 65,000 GIS Total 195,000 GIS Asset Management Salaries & Benefits 55% Operating 34% Capital, 11% 99 Solid Waste Major Objectives •Offer quality service to the residents of Bozeman •Promote waste reduction thru recycling efforts •Optimize operational efficiencies Budget Allocation Solid Waste Fund – Enterprise Fund Solid Waste Fund Revenue 4,721,805 5,027,570 5,850,438 6,916,000 7,592,000 FY20 Actual FY21 Actual FY22 Actual FY23 Proj. FY24 Adopted 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 The Division also oversees the Landfill Post Closure fund. FY23 Accomplishments •Pilot program for bear-resistant containers outreach program •Change collection times in bear conflict zones •Educational materials: How to reduce bear attractants around your home •Support and & Collaboration with following groups: •Sierra Club •Greater Yellowstone Coalition •People & Carnivores •Animal Welfare Institute FY23 Strategic Plans 6.3 (b) Increase Solid Waste Recycling Services. Adopt incentive programs to increase the public’s utilization of city recycling and solid waste services. Performance Measurements •Tonnage per Residential Customer: Measure the pounds of refuse and recycling per customer per collection event to measure the impact of the waste diversion programs.***Methodology is currently being developed based on recently implemented systems to track the necessary data. FY24 Strategic Plan 1.3 (c) Enhance our relationship with Montana State University: Continue working with MSU to enhance the collection and processing of recycling and organic waste streams on MSU campus 6.3 (b) Increase Solid Waste Recycling Services. Adopt incentive programs to increase the public’s utilization of city recycling and solid waste service: •Efforts underway in a feasibility study on City- wide recycling and organics collection program delivery due fall of 2023. •Adding ReCollect Software to our webpage to educate and communicate with customers on reduced contamination, lower call volumes, increased diversion, proper recycling habits, and methods to build actionable insight. 100 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change SOLID WASTE 640- Solid Waste Fund 4,819,934 6,773,900 6,981,200 3.1 % 641 - Landfill Post Closure (33,087) 634,000 740,000 16.7 % TOTALS 4,786,847 7,407,900 7,721,200 4.2 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change SOLID WASTE Salaries & Benefits 1,722,989 2,055,200 2,255,000 9.7 % Operations & Maintenance 2,027,770 2,892,800 3,309,100 14.4 % Capital Outlay 101,824 1,426,000 660,000 -53.7 % Debt Service/Loans — — — — % Transfers Out 934,264 1,033,900 1,497,100 44.8 % TOTALS 4,786,847 7,407,900 7,721,200 4.2 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change SOLID WASTE 5810-Collection Operation 4,480,033 6,135,100 6,154,200 0.3 % 5820- Recycling 339,901 638,800 827,000 29.5 % 5910- Landfill Post Closure (33,087) 634,000 740,000 16.7 % TOTALS 4,786,847 7,407,900 7,721,200 4.2 % Salaries & Benefits No additions in FY24. Operating Changes are due to increases in fuel costs and repair & maintenance expenses as the fleet ages. Capital2 FY24 Capital Project Listing - Solid Waste Funds Fund Division Project #Project Name FY24 640 Solid Waste SW58 Roll Off Truck 250,000 640 Solid Waste SW59 Solid Waste Rate Study* 70,000 641 Landfill Closure Costs SW71 Landfill South SVE Wells 70,000 641 Landfill Closure Costs SW72 Landfill East SVE Wells 340,000 Solid Waste Total 730,000 Solid Waste Salaries & Benefits 29% Operating 43% Capital 9% Transfers, 19% 101 2 SW59 will not be capitalized and is included in the Operating budget. Stormwater Major Objectives •Protect the public from flooding and pipe failures •Reduce discharge volume and improve the quality of stormwater discharges to surface waters •Comply with environmental regulations Budget Allocation Stormwater Fund – Enterprise Fund Storm Water Fund Revenue 1,527,575 1,634,171 2,884,347 2,119,600 2,616,600 FY20 Actual FY21 Actual FY22 Actual FY23 Proj. FY24 Adopted 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 FY23 Accomplishments •Installed a UV-cured CIPP liner in one of Bozeman's oldest and largest stormwater mains •Worked with consultant to begin updating the 2008 Stormwater Facilities Plan •Adapted processes to a new MS4 Permit alongside MSU •Removed over 100 tons of sediment and pollutants from stormwater infrastructure FY23 Strategic Plans 1.2 An Engaged Community: Community Engagement 4.3 Strategic Infrastructure Choices 6.1 Clean Water Supplies Performance Measurements FY24 Strategic Plan •4.3 Strategic Infrastructure Choices •6 A Sustainable Environment •Climate Vulnerability Assessment & Resiliency Strategy 102 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change STORMWATER 670- Stormwater Fund 1,527,937 3,491,800 2,497,600 -28.5 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change STORMWATER Salaries & Benefits 595,618 812,800 931,300 14.6 % Operations & Maintenance 134,326 162,200 280,300 72.8 % Capital Outlay 391,376 1,612,700 649,600 -59.7 % Debt Service/Loans 115,538 115,500 116,400 0.8 % Transfers Out 291,080 788,600 520,000 -34.1 % TOTALS 1,527,937 3,491,800 2,497,600 -28.5 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change STORMWATER 4510- Admin., Enforc. & Mapping 896,529 2,935,400 2,182,500 -25.6 % 4520- Operations & Mtc. 241,235 300,000 315,100 5.0 % 4530- Construction 390,173 256,400 — -100.0 % TOTALS 1,527,937 3,491,800 2,497,600 -28.5 % Salaries & Benefits No additions in FY24. Operating Increases to the operating budget are due to significant increases in the cost for utility locates and greater demands for repair and maintenance on vehicles that were scheduled to be replaced but have not yet, due to the limited availability of new vehicles. Capital3 FY24 Capital Project Listing - Stormwater Fund Fund Division Project #Project Name FY24 670 Stormwater STDM04 Historic Pipe Replacement Program 300,000 670 Stormwater STDM05 Annual Unplanned Pipe Rehab 49,600 670 Stormwater STDM18 Stormwater Rate Model Study* 50,000 670 Stormwater STRH01 Downtown Mech Storm 300,000 Stormwater Total 699,600 Stormwater Salaries & Benefits 37% Operating 11% Capital 26% Debt Service 5% Transfers 21% 103 3 STDM18 will not be capitalized and is included in the Operating budget. Street Maintenance Major Objectives •Implement an efficient pavement management plan, in turn creating yearly maintenance programs for failing street infrastructure. •Utilize pavement condition assessment for planning and scheduling our repairs from potholes to complete reconstruction •Maintain City-owned paths, sidewalks, bike lanes, and streets to allow all forms of transportation to move in a safe and prudent manner. Budget Allocation Street Maintenance is primarily funded by special revenue with some street projects also funded by the Arterial & Collector District and Street Impact Fee funds. Street Maintenance Fund 57% Street Impact Fees 25%Street Arterial Construction 12% Lighting Districts 3% Street Reconstruction 3% FY23 Accomplishments •Regraveled and paved sections of Mcllhattan Road •Maintained zero pothole damage claims •Worked with the Community Engagement Coordinator to complete the art project at Babcock and S. Black. FY23 Strategic Plans 1.1 Outreach: Assisted other agencies with urban camping cleanup 1.2 Community Engagement: Continued work with Communications staff on temporary traffic calming and walk audits. Performance Measurements FY24 Strategic Plan 1.4 Business and Institutional Partnerships: Continue to work with HRDC for Streamline signage, Huffing for Stuffing race for the Food Bank, and provide space for the refrigerated trailer for Thanksgiving turkey distribution. 6.6 Habitat: Identify wildlife corridors, Highland Boulevard and S. 3rd signage for Wildlife Crossing to make drivers aware of animal crossings 7.1 (b) Values-Driven Culture; Create a Culture of Innovation: Work on new ideas to increase productivity and decrease emissions. 104 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change STREETS 010- General Fund — — — — % 108- Community Transportation Fund 22 — — — % 110- Gas Tax Fund 2,177,017 1,901,300 — -100.0 % 111- Street Maintenance Fund 7,480,376 10,952,000 10,913,100 -0.4 % 114- Street Impact Fees 3,225,421 11,650,700 4,758,800 -59.2 % 141- Street Arterial Construction 2,007,910 4,944,900 2,245,500 -54.6 % Various- Lighting Districts 422,391 426,400 542,500 27.2 % 500- Construction Project — 199,600 — -100.0 % 504- Street Reconstruction 236,206 1,138,700 612,000 -46.3 % 506- SID 747 Manley Road 13,372 402,200 — -100.0 % TOTALS 15,562,716 31,615,800 19,071,900 -39.7 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change STREETS Salaries & Benefits 1,854,856 2,560,800 2,814,900 9.9 % Operations & Maintenance 3,052,263 3,183,800 3,676,800 15.5 % Capital Outlay 6,633,142 22,168,900 9,468,900 -57.3 % Debt Service/Loans 240,537 321,500 213,800 -33.5 % Transfers Out 3,781,918 3,380,800 2,897,500 -14.3 % TOTALS 15,562,716 31,615,800 19,071,900 -39.7 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change PUBLIC WORKS 4110- Street Operations 7,248,362 16,784,400 11,549,600 -31.2 % 4120- Street Maintenance 2,231,132 1,902,300 1,169,500 -38.5 % 4130- Street Construction 5,087,989 11,445,700 4,825,900 -57.8 % 4150- Street Lighting 534,415 526,200 643,700 22.3 % 4171- Traffic Signs & Markers 460,819 957,200 883,200 -7.7 % TOTALS 15,562,716 31,615,800 19,071,900 -39.7 % Salaries & Benefits No additions in FY24. Operating Increase in operational costs due primarily to moving general street maintenance including mill/overlay from capital into the operating budget to comply with accounting policies. Capital There are many capital projects planned for FY24. See the Capital Project Listing on pages 157-160 for the detailed capital listing for the Street Maintenance Fund, Street Impact Fee Fund, Arterial & Collector Fund and Construction Funds which includes the Street Reconstruction Fund. Street Maintenance Salaries & Benefits 15% Operating 19% Capital 50% Debt Service 1% Transfers 15% FY24 Street Maintenance Capital - Totals by Fund Fund Division FY24 111 Street Maintenance 2,371,900 114 Street Impact Fee 4,400,000 141 Arterial & Collector District 2,085,000 504 Street Reconstruction 612,000 Total 9,468,900 105 Vehicle Maintenance Major Objectives •To maintain vehicles and equipment in good running condition thereby enabling various City personnel to perform daily assignments safely and without delay due to mechanical failure or breakdown. •The Division emphasizes the importance of having a well-structured preventative maintenance program in place for all equipment and vehicles. Budget Allocation Internal Service Fund- Vehicle Maintenance Internal Service Fund and its services are billed out to other funds FY23 Accomplishments •Maintained emergency services fleet (Fire and Police) at the highest level •Maintained and repaired essential services (Streets, Solid Waste, and Water/Wastewater) at the highest level •Responded to breakdowns, as needed FY23 Strategic Plans 4.3(d) Strategic Infrastructure Choices: Explore sustainable technology by pursuing and preparing for an electric and alternative fueled fleet. 6.2 Protect Local Air Quality: Maintain a robust preventative maintenance program so engines do not exceed their design emission levels. 7.2 Employee Excellence: Offer the best in class work place amenities and facilities. Performance Measurements •Preventative and Reactive Maintenance: Calculate and monitor preventative vs reactive maintenance. ***Working with Asset Management to implement the necessary system changes to be able to accurately track this information for future years FY24 Strategic Plan 7.2 Protect local Air Quality: Any time we diagnose an emissions problem it is repaired. 7.2 Employee Excellence: Our mechanics are the best in the valley maybe even the state. 7.3(c) Best Practices, Creativity & Foresight: Improve Departmental Collaboration. Work with departments on their vehicle purchases considering serviceability, environmental and climate influence and alternative propulsion systems. 106 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change VEHICLE MAINTENANCE 710- Vehicle Maintenance Fund 1,813,813 2,085,300 2,929,600 40.5 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change VEHICLE MAINTENANCE Salaries & Benefits 678,158 840,500 1,029,200 22.5 % Operations & Maintenance 928,218 988,000 987,900 — % Capital Outlay — 45,000 120,000 166.7 % Debt Service/Loans — — — — % Transfers Out 207,438 211,800 792,500 274.2 % TOTALS 1,813,813 2,085,300 2,929,600 40.5 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change VEHICLE MAINTENANCE 6010- Vehicle Maintenance Shop 1,813,813 2,085,300 2,929,600 40.5 % Salaries & Benefits No additions in FY24. Operating No change in budget for FY24. Capital FY24 Capital Project Listing - Vehicle Maintenance Fund Fund Division Project #Project Name FY24 710 Vehicle Maintenance VM05 Vehicle Maintenance Service Truck 120,000 Vehicle Maintenance Salaries & Benefits 35%Operating 34% Capital 4% 107 Wastewater Operations Major Objectives •Maintain over 250 miles of wastewater collection system including manholes, wastewater collection, and lift stations •Clean collections system to minimize stoppages •Video inspect sewer infrastructure to determine problems to help troubleshoot and prioritize repair and deferred maintenance Budget Allocation Operations are funded by the Wastewater Enterprise Fund and new capacity projects are funded by the Wastewater Impact Fee Fund. Distribution of Wastewater Budget Water Reclamation Facility, 44%Wastewater Operations, 56% FY23 Accomplishments •Continued to keep a low number of sanitary sewer overflow events by way of preventative maintenance •Worked with Engineering and a consulting engineer to develop an effective mechanism to help prioritize sewer main replacement FY23 Strategic Plans 4.3(b) Strategic Infrastructure Choices: In a year of challenges to get projects started, the following projects should break ground toward the end of FY23: •Sewer Lining on N. 19th, south of College •Sewer Main Replacement in Main St. area Performance Measurements FY24 Strategic Plan 4.1 Strategic Infrastructure Choices: Replace sewer main from Church to Bozeman on Main Street, reline existing 21" pipe between Oak and Rouse 7.4 (a) Performance Metrics: Continue implementing Infoasset Planner to help us make risk-based deferred maintenance decisions Community Affordable Housing: Allotted $3 million to build a new sewer lift station on Valley Center to unlock 600 acres of developable area for a future housing development, allotted $204,000 to install new sewer main along N. 3rd for future housing development. 108 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change WASTEWATER OPERATIONS 620- Wastewater Fund 2,514,068 5,616,400 10,973,550 95.4 % 621- EPA Grant — — — — % 623- Davis/Norton Lift Station 1,227,446 1,104,700 1,100,600 -0.4 % 630- Wastewater Impact Fee 192,207 331,600 302,100 -8.9 % TOTALS 3,933,721 7,052,700 12,376,250 75.5 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change WASTEWATER OPERATIONS Salaries & Benefits 859,710 1,222,700 1,279,100 4.6 % Operations & Maintenance 671,110 869,400 809,300 -6.9 % Capital Outlay 303,845 2,505,900 7,794,000 211.0 % Debt Service/Loans 1,060,566 1,104,700 1,100,600 -0.4 % Transfers Out 1,038,490 1,350,000 1,393,250 3.2 % TOTALS 3,933,721 7,052,700 12,376,250 75.5 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change WASTEWATER OPERATIONS 5210- Wastewater Operations 2,551,938 4,565,700 3,859,550 -15.5 % 5220- Utilities Locates 99,739 125,700 141,000 12.2 % 5230- Wastewater Services 1,216 4,000 4,000 — % 5240- Wastewater Construction 1,244,727 2,332,700 8,329,600 257.1 % 5250- Manholes 23,802 10,000 25,000 150.0 % 5260- Televising 8,492 9,600 12,100 26.0 % 5280- Main Repairs 3,807 5,000 5,000 — % TOTALS 3,933,721 7,052,700 12,376,250 75.5 % Salaries & Benefits Addition of a Water/Sewer Operator for Meters (1 FTE), funded 50% by Water and 50% by Wastewater and reclassification of Operator to Leadworker, funded 50% by Water and 50% by Wastewater. Operating Slight reduction in budgeted operating expenses in FY24 due to one-time, contracted services expense in FY23 related to improving the safety at four of the lift stations. Capital See the Capital Project Listing on pages 157-160 for the detailed capital listing for the Wastewater Fund and Wastewater Impact Fee Fund. Wastewater Operations Salaries & Benefits 10% Operating, 7% Capital 63% Debt Service 9%Transfers 11% FY24 Wastewater Capital - Totals by Fund Fund Division FY24 620 Wastewater 7,574,000 630 Wastewater Impact Fee 220,000 Total 7,794,000 109 Wastewater Water Reclamation Facility Major Objectives •Protect and enhance the water quality of the East Gallatin River. •Consistently achieve compliance with all aspects of the City’s Discharge permit (MPDES) and operate below allotted limits. •Comply with all EPA 503 Bio-solids requirements and regulations, minimizing unpleasant orders. •Maintain the mechanical reliability of the WRF to ensure uninterrupted operations. Budget Allocation Distribution of Wastewater Budget Water Reclamation Facility 44%Wastewater Operations 56% FY23 Accomplishments •Met Montana Department of Environmental Quality discharge permit requirements. No permit violations. •Maintained an aggressive, proactive preventative vs. corrective maintenance program with no major breakdowns. •Continued with optimization of WRF biogas system, saving on natural gas expense FY23 Strategic Plan 1.3(c) Enhance our relationship with State and Federal Agencies: The WRF has an ongoing Wetland pilot project in partnership with MSU and MT DEQ. 6.1(a) The WRF main objective is to protect the East Gallatin River. The Bozeman WRF discharges a best in class product to the outflow. Because the WRF is a biological nutrient removal facility (BNR) no chemicals are used in the processing of the wastewater. Performance Measurements FY24 Strategic Plan 1.3 Public Agencies Collaboration: WRF collaborates with MSU and DEQ and also provides educational tours for students of all ages. 6.1 Clean Water Supplies: The WRF will continue to recycle the city of Bozeman wastewater to a best in class product. 6.3 Climate Action: Continue work on the in-house biogas optimization plan. 110 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change WATER RECLAMATION FACILITY 620- Wastewater Fund 7,076,984 5,907,500 6,817,550 15.4 % 621- EPA Grant — — — — % 622- WW Reclamation Facility 1,620,139 1,621,700 1,627,100 0.3 % 630- Wastwater Impact Fee — — 1,200,000 — % TOTALS 8,697,123 7,529,200 9,644,650 28.1 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change WATER RECLAMATION FACILITY Salaries & Benefits 1,204,969 1,454,700 1,697,100 16.7 % Operations & Maintenance 1,928,628 2,153,700 2,099,000 -2.5 % Capital Outlay 3,039,103 1,119,000 2,910,000 160.1 % Debt Service/Loans 1,620,139 1,621,700 1,627,100 0.3 % Transfers Out 904,284 1,180,100 1,311,450 11.1 % TOTALS 8,697,123 7,529,200 9,644,650 28.1 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change WATER RECLAMATION FACILITY 5610- WRF Operations 6,117,888 4,814,600 5,515,550 14.6 % 5620- Laboratory 518,702 466,000 634,900 36.2 % 5630- Sludge Injection 436,138 573,200 608,000 6.1 % 5640- Pretreatment 4,256 53,700 59,100 10.1 % 5650- WRF Construction 1,620,139 1,621,700 2,827,100 74.3 % TOTALS 8,697,123 7,529,200 9,644,650 28.1 % Salaries & Benefits No additions in FY24. Operating Slight decrease in operating budget for FY24. Capital See the Capital Project Listing on pages 157-160 for the detailed capital listing for the projects specific to the Water Reclamation Facility in the Wastewater Fund and Wastewater Impact Fee Fund. FY24 Wastewater Capital - Totals by Fund Fund Division FY24 620 Wastewater 1,710,000 630 Wastewater Impact Fee 1,200,000 Total 2,910,000 Water Reclamation Facility Salaries & Benefits 18% Operating 22%Capital 30% Debt Service 17% 111 Water Operations Major Objectives •Maintain over 300 miles of the water transmission and distribution system. •Locate, maintain, and repair existing water lines and appurtenances. •Oversee the installation of new water lines. •Install and rotate meters and read all meters monthly. •Respond to water distribution problems 24 hours a day, 7 days a week. Budget Allocation Operations are funded by the Water Enterprise Fund and new capacity projects are funded by the Water Impact Fee Fund. Distribution of Water Budget Water Operations, 43% Water Treatment Plant, 41% Water Conservation 5% FY23 Accomplishments •Fixed 18 broken valves in less than one month during past summer •Leak detected 2715 hydrants and fixed 10 leaks FY23 Strategic Plans 4.3 Strategic Infrastructure Choices - Prioritize long- term investment and maintenance for existing and new infrastructure. (d) Explore sustainable technology: Switched to cloud-based meter reading software with more options to assist with troubleshooting water issues and a broader platform for more staff to monitor. Replaced two meter gateways that allowed the reading of a significant number of water meters without driving on site. Performance Measurements FY24 Strategic Plan •Commission Focus on Water Conservation •Explore and implement another leak detection method using permanent leak loggers located on fire hydrants. First step will be to explore a small pilot of 25 units. •Test satellite leak detection •Water Service Inventory •Identify any potential galvanized or lead services and investigate and replace any of these leftover service. Inventory is required by EPA and MT DEQ and needs to completed October 2024. •Commission Focus on Housing •Install a new water main adjacent to a housing project on N. 3rd between Peach and Tamarack. 112 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change WATER OPERATIONS 600- Water Fund 5,128,626 10,171,900 7,875,600 -22.6 % 610- Water Impact Fees 1,117,914 610,000 821,200 34.6 % TOTALS 6,246,540 10,781,900 8,696,800 -19.3 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change WATER OPERATIONS Salaries & Benefits 1,248,841 1,655,200 2,067,000 24.9 % Operations & Maintenance 1,246,209 1,589,900 1,697,900 6.8 % Capital Outlay 1,899,347 5,132,700 2,946,200 -42.6 % Debt Service/Loans 3,511 — — — % Transfers Out 1,848,632 2,404,100 1,985,700 -17.4 % TOTALS 6,246,540 10,781,900 8,696,800 -19.3 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change WATER OPERATIONS 5010- Water Operations 3,364,501 6,783,600 4,656,300 -31.4 % 5020- Utility Locates 102,100 127,600 141,900 11.2 % 5030- Water Services 29,052 35,000 35,000 — % 5040- Water Construction 1,972,948 2,913,900 2,672,000 -8.3 % 5050- Reservoirs — — — — % 5060- Meter Reading 655,343 810,300 1,024,100 26.4 % 5070- Hydrants 76,016 74,000 80,000 8.1 % 5080- Water Valves 26,600 17,500 17,500 — % 5090- Main Repairs 19,980 20,000 70,000 250.0 % TOTALS 6,246,540 10,781,900 8,696,800 -19.3 % Salaries & Benefits Addition of a Water/Sewer Operator for Meters (1 FTE), funded 50% by Water and 50% by Wastewater and reclassification of Operator to Leadworker, funded 50% by Water and 50% by Wastewater. Operating Increase due primarily to the need for more funds to buy water meters. Capital See the Capital Project Listing on pages 157-160 for all the detailed capital listing specific to Water Operations in the Water Fund and Water Impact Fee Fund. FY24 Water Capital - Totals by Fund Fund Division FY24 600 Water 2,261,200 610 Water Impact Fee 685,000 Total 2,946,200 Water Operations Salaries & Benefits, 24% Operating 20%Capital 34% Transfers, 23% 113 Water Water Treatment Plant Major Objectives: •Protect public health through optimization of the Sourdough and Lyman Creek Plants. •Maintain high-quality drinking water of low turbidity, void of contaminants, and meeting water supply demands of the City. •Monitor and maintain WTP facilities to ensure current needs are met and to anticipate future water quality and quantity needs. Budget Allocation Operations are funded by the Water Enterprise Fund and new capacity projects are funded by the Water Impact Fee Fund. Distribution of Water Budget Water Operations, 43% Water Treatment Plant 41% Water Conservation 5% FY23 Accomplishments •Reduced overflow when using Hyalite Lake water to 1.07 MGD •Investigated DAF sludge recycling feasibility •Maintained or improved recycling of backwash water •Reduced sludge production and 45+ MGY recycle backwash water •Sourdough pipe phase II completed FY23 Strategic Plans 6.1 Clean Water Supplies 7.3 Best Practices, Creativity & Foresight 7.4 Performance Metrics Performance Measures FY24 Strategic Plan 1.3 Public Agencies Collaboration: Partner with MSU classes for research and innovative ideas, work with MT DEQ to enhance data and document management 6.1 Clean Water Supplies: Continue monitoring watersheds for weed reduction and sediment impacts, Sourdough Intake and Sourdough Tank rehab projects, promote water conservation through continued efforts to recycle as much backwash and rinse water as possible without adversely affecting any process or water quality. 7.3 Best Practices, Creativity & Foresight: Continue to research more ways to meet goals while reducing waste and chemicals, work toward minimal discharge to Sourdough Creek 114 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change WATER PLANT 600- Water Fund 4,183,334 12,315,600 6,530,800 -47.0 % 601- Water Plant Construction 1,312,965 1,312,200 1,312,500 — % 602- Storag Tank Const-Sourdou 482,600 484,400 484,000 -0.1 % 610- Water Impact Fees 1,674,453 5,733,100 — -100.0 % TOTALS 7,653,351 19,845,300 8,327,300 -58.0 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change WATER PLANT Salaries & Benefits 951,539 1,136,000 1,260,300 10.9 % Operations & Maintenance 1,565,063 1,727,700 1,940,700 12.3 % Capital Outlay 2,329,453 13,471,100 1,597,500 -88.1 % Debt Service/Loans 1,795,565 1,796,600 1,796,500 — % Transfers Out 1,011,731 1,713,900 1,732,300 1.1 % TOTALS 7,653,351 19,845,300 8,327,300 -58.0 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change WATER PLANT 4610- Water Plant Operations 4,183,334 11,815,600 6,505,800 -44.9 % 4620 - Water Plant Contruction 3,470,018 8,029,700 1,821,500 -77.3 % 4640- Water Conservation — — — — % TOTALS 7,653,351 19,845,300 8,327,300 -58.0 % Salaries & Benefits Addition of one short-term worker at the Water Treatment Plant. Operating Increase due to additional maintenance and inflationary costs of materials. Capital See the Capital Project Listing on pages 157-160 for the detailed capital listing specific to the Water Treatment Plant in the Water Fund and Water Impact Fee Fund. FY24 Water Capital - Totals by Fund Fund Division FY24 600 Water 1,597,500 610 Water Impact Fee — Total 1,597,500 Water Treatment Plant Salaries & Benefits 15% Operating 23% Capital 19% Debt Service 22% Transfers 21% 115 Water Water Conservation Major Objectives •Establishing and strengthening the community’s water conservation ethic. •Ensuring adequate water supplies are available; to meet current and future demands, in times of drought, for emergency response and long term drought mitigation Budget Allocation Funded by the Water Enterprise Fund Distribution of Water Budget Water Operations, 43% Water Treatment Plant 41% Water Conservation 5% FY23 Accomplishments •Implemented permanent mandatory outdoor watering restrictions •Codified the City's drought contingency response and successfully adopted 2022 Drought Management Plan •Launched EPA Qualified Water Efficient Landscaper Course (QWEL) FY23 Strategic Plans •1.1-2 An Engaged Community: Public school education partnership with MOSS, sprinkler system assessments, G3 watershed wise landscaping classes •4.1 A Well-Planned City: Development of high efficiency landscape and irrigation standards for UDC, public engagement, community presentations •6.1 (a) A Sustainable Environment: Ongoing drought monitoring and public education campaign, outdoor water use efficiency campaign Performance Measures FY24 Strategic Plan •An Engaged Community: 1.1 Outreach and 1.2 Community Engagement •A Well-Planned City: 4.3d Explore Sustainable Technology to Advance Environmental Sustainability •A Sustainable Environment: 6.1a Watershed Management 116 FY24 Budget Department Budget by Fund Division Category FY22 Actual FY23 Projected FY24 Adopted % Change WATER CONSERVATION 600- Water Fund 623,754 736,900 1,083,700 47.1 % Department Budget by Category Division Category FY22 Actual FY23 Projected FY24 Adopted % Change WATER CONSERVATION Salaries & Benefits 220,285 307,500 549,500 78.7 % Operations & Maintenance 373,493 379,400 444,200 17.1 % Capital Outlay 22,625 50,000 40,000 -20.0 % Debt Service/Loans 7,350 — — — % Transfers Out — — 50,000 — % TOTALS 623,754 736,900 1,083,700 47.1 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change WATER PLANT 4640- Water Conservation 623,754 736,900 1,083,700 47.1 % Salaries & Benefits No additions in FY24 Operating Increases in operations driven primarily by additional educational programming for public landscaping classes, public education school program, educational signage, and irrigation contractor classes as well as additional funding for residential and commercial indoor and outdoor rebate programs. Capital FY24 Capital Project Listing - Water Conservation Fund Division Project #Project Name FY24 600 Water WC08 Water Conservation Vehicle 40,000 Water Conservation Salaries & Benefits, 51%Operating, 41% Capital, 4% Transfers, 5% 117 118 Public Welfare Recreation (Parks & Recreation) - The Recreation Division is responsible for identifying the recreation needs of our growing community and offering quality programs in diverse interest areas that satisfy those needs. The division has a committed staff that remains focused on program quality and customer satisfaction while offering all- inclusive opportunities in outdoor recreation, sports, fitness, and cultural arts. The Aquatics Division is comprised of one year-round indoor facility, the Swim Center and one outdoor seasonal facility, Bogert Pool. Forestry (Parks & Recreation) - The Forestry Division is committed to providing a healthy, safe, and aesthetically pleasing community forest. Environmental, economic, and social benefits from the urban forest raise the standard of living for Bozeman residents. Parks (Parks & Recreation) - The Parks Division is responsible for the overall development and maintenance of 44 public parks, 52 + miles of trails and associated sports fields and open space within the City limits. Cemetery (Parks & Recreation) - The 73+acre Sunset Hills Cemetery, the only City owned and maintained cemetery, is a virtual arboretum of stately pine, fir, spruce, ash, maple, cedar and various ornamental trees, which are maintained by the Forestry Division with assistance from the Cemetery Division. The cemetery currently contains over 16,000 burial sites, three columbaria, nine dedicated affiliation areas and ample room for expansion. Economic Development - Our community strengthens and diversifies the local economy by supporting business sectors that create & sustain mid- to high-paying jobs, enhancing the high quality of life in the greater Bozeman. Sustainability (Strategic Services) - Coordinates with city departments and community stakeholders to promote a sustainable environment and reduce greenhouse gas emissions. Library- The Bozeman Public Library creates opportunities that inspire curiosity, exploration and connection. The Library is the community cultural center that connects all Bozeman citizens to their neighbors and the world. Affordable Housing (Community Development) - As Bozeman grows, the city is working to develop a long- term plan to meet the housing needs of its residents through the Affordable Housing Program. 119 Recreation (Parks & Recreation) Major Objectives •Provide diverse and inclusive recreational opportunities and facilities that promote health and wellness and improve the quality of life for the Bozeman community. •Provide recreation and fitness opportunities to the community in an environment that encourages and instructs individuals how to be safe in, on, and around water. Budget Allocation Funded by the General Fund, making up 6% of the fund's appropriations. Recreation 6%General Fund FY23 Accomplishments •Story Mansion Paint Project •Expanded Programming for all ages •Developed new partnership for inclusive programming with Eagle Mount •Expanded Swim Center operation to Saturdays •Resumed Saturday swim lessons and open boating programming •Extended Bogert operations and hours from early June through October to accommodate the swim community in the absence of the Swim Center FY23/FY24 Strategic Plans •An Engaged Community 1.4 Business and Institutional Partnerships •A Safe Welcoming Community 3.4 Active Recreation •A Creative Learning Culture 5.3 Partnerships for Education and Learning Performance Measures Recreation Aquatics 120 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change RECREATION 010- General Fund 1,666,842 3,206,400 3,120,600 -2.7 % 189- Story Mansion Operating 25,633 57,800 56,500 -2.2 % 500- Budget Contruction Proj — — 102,000,000 — % 573- Rec Bonds Construction 12,864 1,750,000 6,800,000 288.6 % TOTALS 1,705,339 5,014,200 111,977,100 2133.2 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change RECREATION Salaries & Benefits 1,027,573 1,425,900 1,973,400 38.4 % Operations & Maintenance 623,121 853,100 881,400 3.3 % Capital Outlay 49,192 2,732,000 109,122,000 3894.2 % Debt Service/Loans 4,785 2,800 — -100.0 % Transfers Out 668 400 300 -25.0 % TOTALS 1,705,339 5,014,200 111,977,100 2133.2 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change PARKS AND RECREATION 8010- Recreation Operations 572,221 1,413,100 102,826,800 7176.7 % 8020- Swim Center 835,874 2,778,000 5,789,800 108.4 % 8030- Bogert Pool 52,848 120,100 1,121,500 833.8 % 8040- Facilities: Lindley, Beall & Story 199,308 649,400 2,185,700 236.6 % 8050- Recreation Programs 45,089 53,600 53,300 -0.6 % TOTALS 1,705,339 5,014,200 111,977,100 2133.2 % Salaries & Benefits No additions in FY24. Operating Minor increase due to architectural services to explore options for family changing rooms at the Swim Center. Recreation Salaries & Benefits 2% Operating 1% Capital 97% Capital FY24 Capital Project Listing - Recreation Fund Division Project #Project Name FY24 10 Recreation GF300 SMCC Gym Floor Replace 222,000 10 Recreation GF373 Bulkhead Retro-fit 100,000 Recreation Total (General Fund) 322,000 Construction Funds 500 Recreation GF355 Bozeman Community Center 102,000,000 573 Recreation GF137 Swim Center - Facility 4,050,000 573 Recreation GF209 Lindley Center - Remodel 1,750,000 573 Recreation GF238 Bogert Pool Renovation 1,000,000 Recreation Total (Construction Funds) 108,800,000 Following adopting of the FY24 Budget, Bozeman City Commission voted against including the Bozeman Community Center on the November 2023 ballot. 121 Forestry (Parks & Recreation) Major Objectives •Continue both reactive and proactive maintenance for Bozeman’s 26,000+ public trees in boulevards, developed city parks, and city- owned properties. •Manage potential risk factors through site inspections, proper pruning, and high-risk tree removals. •Identify and correct encroaching vegetation utilizing Forestry staff (public trees) and Code Compliance (private trees). •Maintain Cost Share while increasing Public Outreach to improve tree diversity and resident interaction. Budget Allocation Funded by the Tree Maintenance Special Revenue Fund FY23 Accomplishments •Emergency Storm Response: City-wide response to heavy snow October 23, 2022 •Installed 287 new trees, serviced 1,830 existing, and reviewed all development plans for compliance and appropriate tree plantings •Maintained partnership with Gallatin Watershed Council to evaluate planting opportunities for equity, water quality, and urban heat island FY23 Strategic Plans •6.2 Sustainable Environment: Healthy established trees and increased plantings improve air quality •6.3 (d) Sustainable Environment 6.3 Climate Action: Trees reduce cooling needs, provide habitat, reduce watering needs for turf, sequester carbon, reduce severity of flooding/ drought •6.5 Sustainable Environment: Tree maintenance extends beyond boulevards into PTOS. Higher capacity for larger, mature trees and community engagement. Performance Measures FY24 Strategic Plan 6.2 Protect Local Air Quality: Healthy established trees and increased plantings improve air quality 6.3 (d) Climate Action: Trees reduce cooling needs, provide habitat, reduce watering needs for turf, sequester carbon, and reduce severity of flooding and drought 6.5 Sustainable Environment: Tree maintenance extends beyond boulevards into PTOS. 122 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change FORESTRY 112- Tree Maintenance Fund 824,152 1,090,900 1,033,900 -5.2 % Department Budget by Category Department Category FY22 Actual FY23 Projected FY24 Adopted % Change FORESTRY Salaries & Benefits 497,266 560,800 618,900 10.4 % Operations & Maintenance 134,115 192,800 232,700 20.7 % Capital Outlay 96,016 235,000 55,000 -76.6 % Debt Service/Loans — — — — % Transfers Out 96,756 102,300 127,300 24.4 % TOTALS 824,152 1,090,900 1,033,900 -5.2 % Department Budget by Division Department Division FY22 Actual FY23 Projected FY24 Adopted % Change PARKS AND RECREATION 7710- Tree Maintenance 824,152 1,090,900 1,033,900 -5.2 % Salaries & Benefits No additions in FY24. Operating Increase in operating budget driven by 25% increase to Cost Share tree planting program. Capital FY24 Capital Project Listing - Tree Maintenance Fund Fund Division Project #Project Name FY24 112 Tree Maintenance FOR19 Forestry 1-Ton Pickup 55,000 Forestry Salaries & Benefits 60%Operating 23% Capital 5% Transfers 12% 123 Parks (Parks & Recreation) Major Objectives •Continue adding, upgrading, and maintaining safe and quality sports fields, trail corridors, community gathering areas, and playground equipment. •Provide expanded maintenance and care to restrooms, litter control, pet waste disposal, turf care, and water conservation efforts. •Improve, maintain, and expand the trail system in coordination with development and our partners. Budget Allocation With the New District Parks will be funded through a special assessment in a special revenue fund. It’s the fourth year of the Parks & Trails District Special Revenue fund. Parks & Trails Revenue 3,649,138 5,200,483 6,042,300 8,140,900 FY21 Actual FY22 Actual FY23 Proj.FY24 Adopted 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 FY23 Accomplishments •Continued implementation and oversight of the new Parks & Trails District with the division assuming maintenance responsibilities for 37 additional neighborhood parks with over 250 acres. •Installation of a new inclusive playground at Christie Fields •Installation of 7 new pickleball courts at Bogert Park FY23 Strategic Priorities 3.4 Active Recreation: New park added to the system 4.3 Strategic Infrastructure: Parks & Trails District 6.5 Parks, Trails & Open Space: PROST update Performance Measures FY24 Strategic Plan 3 A Safe, Welcoming Community: Active Recreation- Facilitate and promote recreational opportunities and active health programs and facilities. (Maintaining and operating high quality playgrounds, sports fields, trail corridors.) 4 High Quality Urban Approach Prioritize long-term investment and maintenance for existing and new infrastructure 6 Sustainable Environment: Support the maintenance and expansion of the interconnected system of parks, trails, and open space 124 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change PARKS 010 - General Fund 164 — — — % 128 - FWP Management Areas 77 100 — -100.0 % 136 - Bogert Park 365 — — — % 195 - Parks & Trails Mtc District 4,080,552 6,507,600 7,850,000 20.6 % 198- Story Mill Community Park 3,892 — — — % 199 - Sports Park 125,795 125,800 125,800 — % 563- TOP: Parks & Open Space Bond 15,010,020 358,800 — -100.0 % 566- TOP: Sports Complex 811 — — — % 568- TOP: Front St. Connectr TRL 244,398 18,000 — -100.0 % 569- TOP: Westside Connections 745 5,400 — -100.0 % 570- TOP: Frontage Pathway — 30,000 — -100.0 % 850 - Parkland Trust 1,059,203 292,700 598,700 104.5 % TOTALS 20,526,021 7,338,400 8,574,500 16.8 % Department Budget by Category Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change PARKS Salaries & Benefits 1,312,758 1,643,100 2,950,900 79.6 % Operations & Maintenance 1,980,598 2,433,600 2,813,200 15.6 % Capital Outlay 1,750,318 2,130,100 1,660,000 -22.1 % Debt Service/Loans 125,795 225,800 464,500 105.7 % Transfers Out 15,356,552 905,800 685,900 -24.3 % TOTALS 20,526,021 7,338,400 8,574,500 16.8 % Department Budget by Division Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change PARKS AND RECREATION 7610- Parks Operations 20,526,021 7,338,400 8,574,500 16.8 % Salaries & Benefits The staffing plan for FY24 includes the following mid-year reclasses: •Contracts Coordinator to Contracts Manager •Cemetery Foreperson to Manager •Parks and Cemetery Superintendent to include Forestry •Recreation Manager to Superintendent As these are currently not budgeted, a budget amendment will be made, if needed, to support. Parks Salaries & Benefits, 34% Operating 33% Capital 19% Debt Service 5% Transfers 8% Operating Increases in operational costs due primarily to the implementation of the Parks & Recreation, and Active Transportation (PRAT) Plan including the Cash in Lieu of Parkland Grant Program and Anchor Route/Park Corridor Designs. Capital FY24 Capital Project Listing - Parks & Trails District Fund Division Project #Project Name FY24 195 Parks & Trails District GF031 Park Improvement Grant 275,000 195 Parks & Trails District PTD03 Playground/Skate Park Improvements 630,000 195 Parks & Trails District PTD04 Park Vehicles 135,000 195 Parks & Trails District PTD05 Toolcat Multi Purpose 90,000 195 Parks & Trails District PTD06 Park Shelter Replacement 60,000 195 Parks & Trails District PTD09 Deferred Maintenance 100,000 195 Parks & Trails District PTD13 Sports Complex 370,000 Parks & Trails Total 1,660,000 125 Cemetery (Parks & Recreation) Major Objectives Develop new cemetery blocks and lots for internments as demand dictates. Provide an easily accessible, safe, and serene setting for cemetery/ gravesite visitation. Continued excellence in providing professional and dignified internment services. Budget Allocation Funding through the General Fund, making up 2% of the fund's appropriations. Cemetery 2%General Fund FY23 Accomplishments •Construction continuing on the Southwest Montana Veteran’s Cemetery, with the terraced retaining wall complete (420+ individual blocks), rough grade established and irrigation and sod. •Gold Star Families Memorial Monument •GF 231-Continued find tuning of the pump station and irrigation system in Sunset Hills Cemetery. •Install and bring new columbarium online FY23 Strategic Plans •Sustainable Environment •Climate Action-Ensure adequate supplies of clean water for today and tomorrow •Project GF231 - converted the cemetery from treated water to surface water. Saving 258 acre feet of treated water per year on an average. Performance Measures FY24 Strategic Plan 6.A Sustainable Environment: We cultivate a strong environmental ethic; protect our clean air, water, open spaces and climate; and promote environmentally sustainable businesses and lifestyles 6.1 Clean Water Supplies: Ensure adequate supplies of clean water for today and tomorrow. GF 231- Cemetery Irrigation Project 6.2 Protect Local Air Quality: The cemetery’s diverse array of trees, turf and open space 126 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change CEMETERY 010- General Fund 504,675 852,400 1,144,800 34.3 % Department Budget by Category Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change CEMETERY Salaries & Benefits 341,713 464,900 450,800 -3.0 % Operations & Maintenance 124,224 207,100 223,000 7.7 % Capital Outlay 29,436 167,000 450,000 169.5 % Debt Service/Loans — — — — % Transfers Out 9,302 13,400 21,000 56.7 % TOTALS 504,675 852,400 1,144,800 34.3 % Department Budget by Division Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change PARKS AND RECREATION 7210- Cemetery Operations 504,675 852,400 1,144,800 34.3 % Salaries & Benefits No additions in FY24 Operating Inflationary increases for supplies and materials driving slight increase in operating budget. Capital FY24 Capital Project Listing - Cemetery Fund Division Project #Project Name FY24 10 Cemetery GF268 SW MT Veteran's Cemetery 450,000 Cemetery Salaries & Benefits 39% Operating 19% Capital 39% Transfers 2% 127 Library Major Objectives •Space - Design & Implement an expansion to ensure that the Library has adequate space to Bozeman's growing needs. •Technology - Use technology & digital resources to enhance the Library experience. •Programming - Provide unique programming to inform & enrich the lives of target audiences of Library users. •Outreach - Engage new & broader audiences in taking advantage of the Library's resources. Budget Allocation Funded through the General Fund, making up 7% of the funds's appropriations. A construction fund is setup for Library Maintenance which is funded by up to 2% of unspent appropriation from the prior year. There is a donation for the Library expansion project in the Construction Fund as well in FY23. Library 7%General Fund FY23 Accomplishments •Main Library renovations •Increased mobile services; visits to neighborhoods, schools, and senior homes •Began planning the Bozeman Community Center on the West Side that will include a branch library. City residents will vote on the project in November of 2023. FY23 Strategic Plans 5.1 (a) Library Expansion Planning Performance Measures FY24 Strategic Plan 5.1 (a) Library Expansion Plan: Complete Library renovation project and expand west side library service 128 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change LIBRARY 010- General Fund 2,542,457 3,484,300 3,651,900 4.8 % 137- Library Special Revenue 39,847 35,300 — -100.0 % 561- Library Depreciation Fund 10,921 302,200 60,000 -80.1 % TOTALS 2,593,225 3,821,800 3,711,900 -2.9 % Department Budget by Category Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change LIBRARY Salaries & Benefits 1,891,185 2,706,200 2,879,300 6.4 % Operations & Maintenance 652,447 784,600 752,200 -4.1 % Capital Outlay 30,754 297,000 60,000 -79.8 % Debt Service/Loans 7,136 7,100 7,100 — % Transfers Out 11,703 26,900 13,300 -50.6 % TOTALS 2,593,225 3,821,800 3,711,900 -2.9 % Department Budget by Division Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change LIBRARY 7810- Library Operations 961,018 1,446,600 1,165,800 -19.4 % 7820- Technical Services 313,828 462,200 491,300 6.3 % 7830- Information Services 614,677 996,100 1,201,600 20.6 % 7840- Children's Services 279,288 354,600 339,900 -4.1 % 7850- Circulation Services 424,413 562,300 513,300 -8.7 % TOTALS 2,593,225 3,821,800 3,711,900 -2.9 % Salaries & Benefits No additions in FY24. Operating Slight decrease in cost of operation. Capital FY24 Capital Project Listing - Library Fund Division Project #Project Name FY24 561 Library LIB32 Automatic Blinds 60,000 Library Salaries & Benefits 78% Operating 20% Capital 2% 129 Economic Development Major Objectives •Provide opportunity for Gallatin Valley residents •Support a diverse economy •Build a more resilient region Budget Allocation Funded operationally from the General Fund. Oversees the programming of Special Revenue funds, including Urban Renewal Districts. Economic Development 1%General Fund FY23 Accomplishments/ FY23 Strategic Plan 2.1 Business Growth: We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities through business growth, infrastructure investments, and workforce development. 2.2 Infrastructure Investments - Strategically invest in infrastructure as a mechanism to encourage economic development. a) Identify Commercial/ 2.3 Workforce Development - Support education and workforce development initiatives to improve the skills of our citizens. Performance Measures FY24 Strategic Plan 2.1 Business Growth: Determine gaps in resources and services for small businesses, convene service providers to start micro-loans for underrepresented businesses, create resource guide for small businesses, and facilitate an underrepresented business roundtable. 2.2 Infrastructure Investments: Explore the development of wet lab space for bio-tech companies, actively promote C-PACE program, support drought tolerant landscaping in URDs, and complete Aspen Street pedestrian bridge construction. 2.3 Workforce Development: Promote Gallatin College opportunities to local high schoolers, engage middle school students and teachers with STEAM opportunities, and support Quantum Computing Sector Development Initiative. 130 FY24 Budget Department Budget by Fund Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change ECONOMIC DEVELOPMENT 010- General Fund 427,413 538,300 558,200 3.7 % 116- Dowtown TIF District 933,651 1,050,300 8,645,900 723.2 % 117- Pole Yard TIF — 23,800 600,000 2421.0 % 119- Economic Development Loan 273,089 — — — % 123- Big Sky Economic Development Grant 535,000 — — — % 143- Midtown URD/TIF District 2,814,640 749,400 3,546,100 373.2 % 144-North East Urban Renewal TIF District 178,150 185,600 1,140,400 514.4 % 145-Mandeville TIF District 3,520 — 160,200 — % 176- Downtown BID 186,593 222,200 280,300 26.1 % 192- TIF South Bozeman Technology — 300 38,000 12566.7 % 571- Midtown Contruction Proj 701,734 — — — % TOTALS 6,053,789 2,769,900 14,969,100 440.4 % Department Budget by Category Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change ECONOMIC DEVELOPMENT Salaries & Benefits 319,677 459,200 484,700 5.6 % Operations & Maintenance 3,678,753 1,271,800 9,410,400 639.9 % Capital Outlay 751,835 205,700 4,236,900 1959.7 % Debt Service/Loans 92,000 93,000 93,000 — % Transfers Out 1,211,524 740,200 744,100 0.5 % TOTALS 6,053,789 2,769,900 14,969,100 440.4 % Department Budget by Division Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change ECONOMIC DEVELOPMENT 8210- Downtown Improvement Districts 4,684,362 2,032,400 13,629,500 570.6 % 8230- Community Housing — 23,800 600,000 2421.0 % 8240- Economic Development 1,369,427 713,700 739,600 3.6 % TOTALS 6,053,789 2,769,900 14,969,100 440.4 % Salaries & Benefits No additions in FY24 Operating Increase in operating budget due primarily to Downtown URD and Midtown TIF. Items of significant nature in the Downtown URD budget include planning for Structured Parking Site Plan and Bids ($1.75 million) and $3 million allocated for parking supply projects. Other planning projects include $300,000 in grants and $100,000 for Side- Streetscape Preliminary Engineering. In the Midtown TIF fund, a $2 million workforce housing project has been budgeted in FY24. Economic Development Salaries & Benefits 3% Operating 63% Capital 28% Debt Service 1% Transfers 5% Capital There are many capital projects planned for FY24. See the Capital Project Listing on 157-160 for the detailed capital listing. FY24 Economic Development Capital - Totals by Fund Fund Division FY24 116 Downtown TIFD 2,525,000 143 Midtown TIFD 725,000 144 Northeast TIFD 986,900 Total 4,236,900 131 Sustainability (Strategic Services) Major Objectives •Building partnerships to enhance community sustainability and resiliency •Reduce municipal and community greenhouse gas emissions •Advance innovative solutions for buildings, energy, transportation, waste, and greenspace Budget Allocation Funded by the General Fund, making up 2% of the fund's appropriations. Sustainability 2%General Fund FY23 Accomplishments •Operationalized the Climate Plan •PDZ, UDC, ED Plan, PRAT Plan, POA Model Covenants •Utility Partnership •Green Power Program •Stakeholder engagement (energy/ environment non-profits, commercial customers, and other agencies) •Energy Technical Advisory Committee •Electrification Campaign •DEQ rebates, website, training, case studies, marketing with Water Conservation FY23 Strategic Plan •1.2 Community Engagement: Support for Sustainability Advisory Board •1.3 Public Agencies Collaboration: Support energy/climate work for legislative agenda •2.3 Workforce Development: Partnerships with HRDC/Weatherization Center Performance Measures FY24 Strategic Plan 3.2 Health & Safety Action: Explore Partnerships for Local Food System Stakeholder and Priority Mapping 4.3 Strategic Infrastructure Choices: Develop Long- Range Plan for Effective Citywide Transition to Electric Vehicles 6.3 Climate Action: Support Development of a Renewable Rate Option with NorthWestern Energy 132 FY24 Budget Department Budget by Fund Division Fund FY22 Actual FY23 Projected FY24 Adopted % Change SUSTAINABILITY 10- General Fund 239,494 769,900 1,116,100 45.0 % Department Budget by Category Division Fund FY22 Actual FY23 Projected FY24 Adopted % Change SUSTAINABILITY Salaries & Benefits 182,554 318,400 369,800 16.1 % Operations & Maintenance 55,664 306,500 341,300 11.4 % Capital Outlay — 145,000 405,000 179.3 % Debt Service/Loans 1,276 — — — % Transfers Out — — — — % TOTALS 239,494 769,900 1,116,100 45.0 % Department Budget by Division Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change STRATEGIC SERVICES 8250- Sustainability (Strategic Services) 239,494 769,900 1,116,100 45.0 % Salaries & Benefits No additions in FY24 Operating Operating costs increase due to contracted services for programs including Photovoltaics (PV)/Electric Vehicle (EV) installs, EV Charging Station Roadmap, and Green Power Program legal services/economic analysis. Capital FY24 Capital Project Listing - Sustainability Fund Division Project #Project Name FY24 10 Sustainability GF245 Energy Projects 75,000 10 Sustainability GF362 Solar Panel Arrays 330,000 Sustainability Total 405,000 Sustainability Salaries & Benefit 33% Operating 31% Capital 36% 133 Community Housing (Economic Development) Major Objectives •Creative solutions to incentivize production of affordable housing •Low income housing tax credits programs and subsidized rentals •Refocus efforts to maximize unit created at 60% to 120% AMI targets Budget Allocation Funded by the Community Housing Special Revenue Fund which is funded from General Fund mill levies. Community Housing Revenues 1,117,912 400,985 777,566 2,353,300 1,397,300 FY20 Actual FY21 Actual FY22 Actual FY23 Proj. FY24 Adopted 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 FY23 Accomplishments •Provided code-based density incentives for affordable housing •Participated in a cross-functional team on the UDC refresh to streamline housing production •Refocused housing efforts on facilitating production of low-income housing tax credit (LIHTC) units, affordable at 60% AMI FY23 Strategic Plans 4.1(b) Develop and Align Infill Policies 4.2(b) Complete Unified Development Code 4.5 Housing Choices Performance Measures FY24 Strategic Plan •4.5 Housing and Transportation Choices - Vigorously encourage, through a wide variety of actions, the development of sustainable and lasting housing options for underserved individuals and families and improve mobility options that accommodate all travel modes. •Vigorously encourage utilization of AHO/ PDZ •Vigorously encourage new LIHTC development •Leverage TIF and URDs to develop workforce housing 134 FY24 Budget Department Budget by Fund Division Fund FY22 Actual FY23 Projected FY24 Adopted % Change COMMUNITY HOUSING 120-Community Housing Fund 1,323,574 456,200 3,552,700 678.8 % Department Budget by Category Division Fund FY22 Actual FY23 Projected FY24 Adopted % Change COMMUNITY HOUSING Salaries & Benefits 43,505 104,000 107,500 3.4 % Operations & Maintenance 1,276,095 352,200 3,445,200 878.2 % Capital Outlay — — — — % Debt Service/Loans — — — — % Transfers Out 3,974 — — — % TOTALS 1,323,574 456,200 3,552,700 678.8 % Department Budget by Division Department Fund FY22 Actual FY23 Projected FY24 Adopted % Change COMMUNITY DEVELOPMENT 8230- Community Housing 1,323,574 456,200 3,552,700 678.8 % Salaries & Benefits No FTE changes Operating Increase due to grants and loans originally anticipated to be finalized in FY23, which will now be spent in FY24. Capital None Community Housing Salaries & benefits 3% Operating, 97% 135 Non-Departmental About: The Non-Departmental unit accounts for expenditures that are not associated with a specific city department. Examples include insurance premiums paid by the City, Debt Service Funds, City sponsored non-profit grants, and contingency funds. Major Objectives: To accurately budget and account for non-departmental costs. General Fund •General fund allocation of liability & property insurance. •Contributions: •City band •Non-Profit Funding Requests (See next page for full list of requests) •Professional services for the Landfill. •Transfer to Landfill Monitoring Fund; Transfer to Stormwater Fund for Landfill Loan payments; and Special revenue funds support. •Contingency appropriation for unexpected budget requests that support City Commission priorities. FY24 Budget Fund Category Description FY22 Actual FY23 Projected FY24 Adopted 10 Operating GENERAL FUND 5,445,045 9,190,400 3,940,100 101 Grant AMERICAN RESCUE PLAN 1,013,635 5,051,300 4,900,200 103 Transfers HEALTH-MEDICAL INSURANCE 2,731,045 3,099,500 3,775,000 175 Operating SENIOR TRANSPORTATION 143,000 154,900 180,900 300 Transfers SID REVOLVING FUND 2,077,709 781,200 27,100 303 Debt Service GO REFUNDING SERIES 2012 — — 130,000 304 Debt Service GO PARKS OPEN SPACE BOND 1,081,888 1,079,600 1,080,000 305 Debt Service TAX INCREMENT FINANCE DIS 332,372 330,200 332,800 306 Debt Service MIDTOWN TIF 408,550 410,000 411,300 307 Debt Service GO BONDS BPSC SAFETY CNTR 2,372,200 2,371,200 2,371,300 310 Debt Service SID SUSPENSE FUND — 2,077,700 — 312-453 Debt Service SID DEBT SERVICES 319,135 318,400 307,800 720 Operating HEALTH-MEDICAL INSURANCE 5,306,064 5,261,600 6,501,100 21,230,643 30,126,000 23,957,600 136 FY24 Non-Profit Funding Non-Profit Organization Adopted Funding Big Sky Youth Empowerment $ 15,000 Bridgercare $ 40,000 Child Care Connections $ 100,000 Community Health Partners $ 75,000 Compassion Project $ 10,000 Family Promise of Gallatin Valley $ 200,000 Haven $ 40,000 Help Center, Inc.$ 100,000 HRDC IX, Bozeman $ 360,000 HRDC/Streamline $ 400,000 Montana Conservation Corps $ 10,000 Montana Immigrant Justice Alliance $ 20,000 One Valley Community Foundation $ 20,000 Roots Family Collaborative $ 15,000 Suffer Out Loud $ 15,000 United Way - kidsLINK Afterschool Program $ 50,000 World Language Initiative - Montana (WLI)$ 30,000 Total $ 1,500,000 137 138 Debt – Legal Debt Limit 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). As part of the City’s annual budget, a review of the legal debt limit was completed. Bozeman is well under its legal debt limit for general obligations against public funds. On June 2, 2022, Moody’s Investors Service issued an update to the City of Bozeman’s credit analysis indicating the City’s bond rating to be Aa1. City of Bozeman, Montana General Fund Statutory Test Actual 2022 Budget 2023 Total General Fund Revenue 32,374,792 39,377,029 2% of Revenues 647,496 787,541 Max Annual Debt Service (MADS)647,496 647,496 Existing Debt Service 125,823 125,823 Remaining Debt Service Capacity 521,673 521,673 Budget 2022 Budget 2023 Budgeted Expenditure 37,899,586 43,932,934 10% of Expenditures 3,789,959 4,393,293 Maximum Par 3,789,959 3,789,959 Reference to Relevant Statute (a) the principal amount of the obligation does not exceed 10% of the general fund budget of the municipality in each of the 2 immediately preceding fiscal years; (b) at the time the obligation is to be incurred, the debt services in the current or in any future fiscal year on the obligation and any other outstanding obligation issued pursuant to this section do not exceed 2% of the revenue deposited in the general fund in each of the 2 immediately preceding fiscal years; (c) the term of the obligation does not exceed 20 years. 139 Debt Service – FY24 Payments General Government FY24 Debt Service GO Bonds Account Project Project Name FY24 304-9310-481.90-10 TOP G.O. TOP BONDS, SERIES 2013 $ 712,600 304-9310-481.90-10 TOP G.O. TOP BONDS, SERIES 2014 $ 366,600 307-9310-481.90-10 BPSC00 G.O. BOND BOZEMAN PUBLIC SAFETY CENTER, SERIES 2019 $ 2,370,900 311-3110-481.90-10 GF305 G.O. BOND FIRE STATION NO 2 RELOCATION $ 508,600 Subtotal $ 3,958,700 TIF Revenue Bonds Account Project Project Name FY24 305-9620-480.90-10 110401 SPECIAL LIMITED OBLIGATION DOWNTOWN TIF BOND, SERIES 2020 (REFUNDED 2007)$ 332,800 144-8210-459.95-10 820901 SPECIAL LIMITED OBLIGATION NORTHEAST TIF BOND, SERIES 2018 $ 92,000 306-9620-481.90-10 822001 SPECIAL LIMITED OBLIGATION MIDTOWN TIF BOND, SERIES 2020 $ 411,300 Subtotal $ 836,100 SID Debt Account Project Project Name FY24 453-9710-481.90-10 SID747 SPECIAL LIMITED OBLIGATION SID 747 (MANLEY ROAD) BOND, SERIES 2020 $ 270,800 438-9710-481.90-10 SID674 NOTE PAYABLE_DNRC, #WRF-05067 $ 7,700 438-9710-481.90-10 SID674 NOTE PAYABLE_DNRC, #WRF-05132 $ 31,900 Subtotal $ 310,400 Notes Payable Account Project Project Name FY24 199-7610-453.95-10 TOP03 SPECIAL LIMITED OBLIGATION SPORTS PARK LOAN $ 125,800 850-7610-453.95-10 762201 PETE'S HILL LOAN FROM GVLT $ 235,000 Subtotal $ 360,800 Intercap Loans Account Project Project Name FY24 111-4150-433.95-10 821505 REPLACE/UPGRADE STREET LIGHTS LOAN#2593-01 & 2593-02 $ 20,200 010-8940-471.95-10 GF266 SPORTS PARK/BRONKEN INTERCAP LOAN#2810-01 $ 42,300 Subtotal $ 62,500 Government Fund Leases Account Project Project Name FY24 111-4110-433.95-10 STR34 2019 ELGIN BROOM BEAR SWEEPER $ 41,400 010-7810-455.95-10 LIB521 2022 TOYOTA HIGHLANDER ASSET #4404 LIBRARY $ 7,100 750-4090-431.95-10 EBEALL EAST BEALL OFFICE LEASE #4447 $ 93,300 111-4110-433.95-10 STR22 (2) 2022 CAT 150-15AWD MOTOR GRADERS $ 91,900 111-4110-433.95-10 STR34 2023 ELGIN BROOM BEAR SWEEPER $ 63,400 010-3010-421.95-10 GF293 2023 FOR TRANSIT CARGO VAN $ 17,700 Subtotal $ 314,800 General Government FY24 Debt Service Total $ 5,843,300 140 Debt Service - Amortization Schedules CITY OF BOZEMAN SERIES 2013 G.O. BONDS TOPS SPECIAL LIMITED OBLIGATIONS OF THE CITY DEBT SERVICE SCHEDULE: $9,900,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2024 $0 $118,800 $118,800 7/1/2024 $475,000 2.800 %$118,800 $593,800 $5,795,000 1/1/2025 $0 $112,150 $112,150 7/1/2025 $490,000 3.250 %$112,150 $602,150 $5,305,000 1/1/2026 $0 $104,188 $104,188 7/1/2026 $505,000 3.500 %$104,188 $609,188 $4,800,000 1/1/2027 $0 $95,350 $95,350 7/1/2027 $520,000 3.750 %$95,350 $615,350 $4,280,000 1/1/2028 $0 $85,600 $85,600 7/1/2028 $540,000 4.000 %$85,600 $625,600 $3,740,000 1/1/2029 $0 $74,800 $74,800 7/1/2029 $565,000 4.000 %$74,800 $639,800 $3,175,000 1/1/2030 $0 $63,500 $63,500 7/1/2030 $585,000 4.000 %$63,500 $648,500 $2,590,000 1/1/2031 $0 $51,800 $51,800 7/1/2031 $610,000 4.000 %$51,800 $661,800 $1,980,000 1/1/2032 $0 $39,600 $39,600 7/1/2032 $635,000 4.000 %$39,600 $674,600 $1,345,000 1/1/2033 $0 $26,900 $26,900 7/1/2033 $660,000 4.000 %$26,900 $686,900 $685,000 1/1/2034 $0 $13,700 $13,700 7/1/2034 $685,000 4.000 %$13,700 $698,700 $0 TOTALS $6,270,000 $1,572,775 $7,842,775 $33,695,000 141 CITY OF BOZEMAN SERIES 2014 G.O. BONDS TOPS SPECIAL LIMITED OBLIGATIONS OF THE CITY DEBT SERVICE SCHEDULE: $5,100,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2024 $0 $65,800 $65,800 7/1/2024 $235,000 2.500 %$65,800 $300,800 $3,235,000 1/1/2025 $0 $62,863 $62,863 7/1/2025 $245,000 2.500 %$62,863 $307,863 $2,990,000 1/1/2026 $0 $59,800 $59,800 7/1/2026 $250,000 4.000 %$59,800 $309,800 $2,740,000 1/1/2027 $0 $54,800 $54,800 7/1/2027 $260,000 4.000 %$54,800 $314,800 $2,480,000 1/1/2028 $0 $49,600 $49,600 7/1/2028 $270,000 4.000 %$49,600 $319,600 $2,210,000 1/1/2029 $0 $44,200 $44,200 7/1/2029 $280,000 4.000 %$44,200 $324,200 $1,930,000 1/1/2030 $0 $38,600 $38,600 7/1/2030 $290,000 4.000 %$38,600 $328,600 $1,640,000 1/1/2031 $0 $32,800 $32,800 7/1/2031 $305,000 4.000 %$32,800 $337,800 $1,335,000 1/1/2032 $0 $26,700 $26,700 7/1/2032 $315,000 4.000 %$26,700 $341,700 $1,020,000 1/1/2033 $0 $20,400 $20,400 7/1/2033 $325,000 4.000 %$20,400 $345,400 $695,000 1/1/2034 $0 $13,900 $13,900 7/1/2034 $340,000 4.000 %$13,900 $353,900 355000 1/1/2035 $0 $7,100 $7,100 7/1/2035 $355,000 4.000 %$7,100 $362,100 $0 TOTALS $3,470,000 $953,125 $4,423,125 $20,630,000 142 CITY OF BOZEMAN SERIES 2019 G.O. BONDS PUBLIC SAFETY CENTER SPECIAL LIMITED OBLIGATIONS OF THE CITY DEBT SERVICE SCHEDULE: $34,405,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2024 $500,425 $500,425 7/1/2024 $1,370,000 4.000 %$500,425 $1,870,425 $28,130,000 1/1/2025 $0 $473,025 $473,025 7/1/2025 $1,425,000 4.000 %$473,025 $1,898,025 $26,705,000 1/1/2026 $0 $444,525 $444,525 7/1/2026 $1,480,000 4.000 %$444,525 $1,924,525 $25,225,000 1/1/2027 $0 $414,925 $414,925 7/1/2027 $1,540,000 4.000 %$414,925 $1,954,925 $23,685,000 1/1/2028 $0 $384,125 $384,125 7/1/2028 $1,600,000 4.000 %$384,125 $1,984,125 $22,085,000 1/1/2029 $0 $352,125 $352,125 7/1/2029 $1,665,000 4.000 %$352,125 $2,017,125 $20,420,000 1/1/2030 $0 $318,825 $318,825 7/1/2030 $1,730,000 4.000 %$318,825 $2,048,825 $18,690,000 1/1/2031 $0 $284,225 $284,225 7/1/2031 $1,800,000 4.000 %$284,225 $2,084,225 $16,890,000 1/1/2032 $0 $248,225 $248,225 7/1/2032 $1,875,000 4.000 %$248,225 $2,123,225 $15,015,000 1/1/2033 $0 $210,725 $210,725 7/1/2033 $1,950,000 4.000 %$210,725 $2,160,725 13065000 1/1/2034 $0 $171,725 $171,725 7/1/2034 $2,025,000 4.000 %$171,725 $2,196,725 11040000 1/1/2035 $0 $131,225 $131,225 7/1/2035 $2,110,000 2.250 %$131,225 $2,241,225 $8,930,000 1/1/2036 $107,488 $107,488 7/1/2036 $2,155,000 2.375 %$107,488 $2,262,488 $6,775,000 1/1/2037 $81,897 $81,897 7/1/2037 $2,205,000 2.375 %$81,897 $2,286,897 $4,570,000 1/1/2038 $55,713 $55,713 7/1/2038 $2,260,000 2.375 %$55,713 $2,315,713 $2,310,000 1/1/2039 $28,875 $28,875 7/1/2039 $2,310,000 2.500 %$28,875 $2,338,875 $0 TOTALS $29,500,000 $8,416,144 $37,916,144 $243,535,000 143 CITY OF BOZEMAN SERIES 2022 G.O. BONDS FIRE STATION NO. 2 RELOCATION SPECIAL LIMITED OBLIGATIONS OF THE CITY DEBT SERVICE SCHEDULE: $6,730,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2024 $144,300 $144,300 7/1/2024 $220,000 5.000 %$144,300 $364,300 $508,600 1/1/2025 $138,800 $138,800 7/1/2025 $230,000 5.000 %$138,800 $368,800 $507,600 1/1/2026 $133,050 $133,050 7/1/2026 $240,000 5.000 %$133,050 $373,050 $506,100 1/1/2027 $127,050 $127,050 7/1/2027 $255,000 5.000 %$127,050 $382,050 $509,100 1/1/2028 $120,675 $120,675 7/1/2028 $265,000 5.000 %$120,675 $385,675 $506,350 1/1/2029 $114,050 $114,050 7/1/2029 $280,000 5.000 %$114,050 $394,050 $508,100 1/1/2030 $107,050 $107,050 7/1/2030 $295,000 5.000 %$107,050 $402,050 $509,100 1/1/2031 $99,675 $99,675 7/1/2031 $310,000 5.000 %$99,675 $409,675 $509,350 1/1/2032 $91,925 $91,925 7/1/2032 $325,000 5.000 %$91,925 $416,925 $508,850 1/1/2033 $83,800 $83,800 7/1/2033 $340,000 5.000 %$83,800 $423,800 $507,600 1/1/2034 $75,300 $75,300 7/1/2034 $355,000 4.000 %$75,300 $430,300 $505,600 1/1/2035 $68,200 $68,200 7/1/2035 $370,000 4.000 %$68,200 $438,200 $506,400 1/1/2036 $60,800 $60,800 7/1/2036 $385,000 4.000 %$60,800 $445,800 $506,600 1/1/2037 $53,100 $53,100 7/1/2037 $400,000 4.000 %$53,100 $453,100 $506,200 1/1/2038 $45,100 $45,100 7/1/2038 $415,000 4.000 %$45,100 $460,100 $505,200 1/1/2039 $36,800 $36,800 7/1/2039 $435,000 4.000 %$36,800 $471,800 $508,600 1/1/2040 $28,100 $28,100 7/1/2040 $450,000 4.000 %$28,100 $478,100 $506,200 1/1/2041 $19,100 $19,100 7/1/2041 $470,000 4.000 %$19,100 $489,100 $508,200 1/1/2042 $9,700 $9,700 7/1/2042 $485,000 4.000 %$9,700 $494,700 $504,400 TOTALS $6,525,000 $3,113,150 $9,638,150 $9,638,150 144 CITY OF BOZEMAN SERIES 2007 + Refi 2020 TAX INCREMENT, URBAN RENEWAL REVENUE BONDS SPECIAL LIMITED OBLIGATIONS OF THE CITY DOWNTOWN BOZEMAN IMPROVEMENT DISTRICT DEBT SERVICE SCHEDULE: $4,301,000 ($3,995,000 + $306,000) Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2024 $0 $32,415 $32,415 7/1/2024 $268,000 2.440 %$32,415 $300,415 $2,389,000 1/1/2025 $0 $29,146 $29,146 7/1/2025 $277,000 2.440 %$29,146 $306,146 $2,112,000 1/1/2026 $0 $25,766 $25,766 7/1/2026 $279,000 2.440 %$25,766 $304,766 $1,833,000 1/1/2027 $0 $22,363 $22,363 7/1/2027 $286,000 2.440 %$22,363 $308,363 $1,547,000 1/1/2028 $0 $18,873 $18,873 7/1/2028 $293,000 2.440 %$18,873 $311,873 $1,254,000 1/1/2029 $0 $15,299 $15,299 7/1/2029 $303,000 2.440 %$15,299 $318,299 $951,000 1/1/2030 $0 $11,602 $11,602 7/1/2030 $308,000 2.440 %$11,602 $319,602 $643,000 1/1/2031 $0 $7,845 $7,845 7/1/2031 $317,000 2.440 %$3,977 $320,977 $326,000 1/1/2032 $0 $3,977 $3,977 7/1/2032 $326,000 2.440 %$10,125 $336,125 $0 TOTALS $2,657,000 $336,853 $2,993,853 $11,055,000 145 CITY OF BOZEMAN SERIES 2018 TAX INCREMENT, URBAN RENEWAL REVENUE BONDS SPECIAL LIMITED OBLIGATIONS OF THE CITY NORTHEAST URBAN RENEWAL DISTRICT DEBT SERVICE SCHEDULE: $1,453,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2024 $21,349 4.100 %$24,651 $46,000 $1,164,363 7/1/2024 $22,119 4.100 %$23,881 $46,000 $1,142,244 1/1/2025 $22,312 4.100 %$23,688 $46,000 $1,119,931 7/1/2025 $23,088 4.100 %$22,912 $46,000 $1,096,843 1/1/2026 $23,186 4.100 %$22,814 $46,000 $1,073,657 7/1/2026 $24,029 4.100 %$21,971 $46,000 $1,049,628 1/1/2027 $24,162 4.100 %$21,838 $46,000 $1,025,466 7/1/2027 $25,009 4.100 %$20,991 $46,000 $1,000,457 1/1/2028 $25,178 4.100 %$20,822 $46,000 $975,279 7/1/2028 $25,974 4.100 %$20,026 $46,000 $949,305 1/1/2029 $26,289 4.100 %$19,711 $46,000 $923,016 7/1/2029 $27,092 4.100 %$18,908 $46,000 $895,923 1/1/2030 $27,339 4.100 %$18,661 $46,000 $868,585 7/1/2030 $28,199 4.100 %$17,801 $46,000 $840,386 1/1/2031 $28,487 4.100 %$17,514 $46,000 $811,900 7/1/2031 $29,351 4.100 %$16,649 $46,000 $782,548 1/1/2032 $29,682 4.100 %$16,318 $46,000 $752,866 1/2/2032 $30,509 4.100 %$15,491 $46,000 $722,358 1/3/2032 $30,967 4.100 %$15,033 $46,000 $691,391 1/4/2032 $31,801 4.100 %$14,199 $46,000 $659,589 1/5/2032 $32,223 4.100 %$13,777 $46,000 $627,366 1/6/2032 $33,103 4.100 %$12,897 $46,000 $594,263 1/7/2032 $33,573 4.100 %$12,427 $46,000 $560,690 1/8/2032 $34,459 4.100 %$11,541 $46,000 $526,231 1/9/2032 $34,980 4.100 %$11,020 $46,000 $491,251 1/10/2032 $35,842 4.100 %$10,158 $46,000 $455,409 1/11/2032 $36,470 4.100 %$9,530 $46,000 $418,939 1/12/2032 $37,341 4.100 %$8,659 $46,000 $381,599 1/13/2032 $37,969 4.100 %$8,031 $46,000 $343,630 1/14/2032 $38,872 4.100 %$7,128 $46,000 $304,758 1/15/2032 $39,557 4.100 %$6,443 $46,000 $265,201 1/16/2032 $40,466 4.100 %$5,534 $46,000 $224,734 1/17/2032 $41,211 4.100 %$4,789 $46,000 $183,523 1/18/2032 $42,116 4.100 %$3,884 $46,000 $141,407 1/19/2032 $42,942 4.100 %$3,058 $46,000 $98,465 1/20/2032 $43,856 4.100 %$2,144 $46,000 $54,609 1/21/2032 $44,727 4.100 %$1,273 $46,000 $9,882 1/22/2032 $9,882 4.100 %$343 $10,225 $0 TOTALS $1,185,712 $526,512 $1,712,225 $24,227,693 146 CITY OF BOZEMAN SERIES 2020 TAX INCREMENT URBAN RENEWAL REVENUE BONDS SPECIAL LIMITED OBLIGATIONS OF THE CITY MIDTOWN DEBT SERVICE SCHEDULE: $6,500,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2024 $110,625 $110,625 7/1/2024 $190,000 3.000 %$110,625 $300,625 $5,770,000 1/1/2025 $0 $107,775 $107,775 7/1/2025 $195,000 4.000 %$107,775 $302,775 $5,575,000 1/1/2026 $0 $103,875 $103,875 7/1/2026 $205,000 4.000 %$103,875 $308,875 $5,370,000 1/1/2027 $0 $99,775 $99,775 7/1/2027 $210,000 4.000 %$99,775 $309,775 $5,160,000 1/1/2028 $0 $95,575 $95,575 7/1/2028 $220,000 4.000 %$95,575 $315,575 $4,940,000 1/1/2029 $0 $91,175 $91,175 7/1/2029 $230,000 4.000 %$91,175 $321,175 $4,710,000 1/1/2030 $0 $86,575 $86,575 7/1/2030 $235,000 4.000 %$86,575 $321,575 $4,475,000 1/1/2031 $0 $81,875 $81,875 7/1/2031 $245,000 4.000 %$81,875 $326,875 $4,230,000 1/1/2032 $0 $76,975 $76,975 7/1/2032 $255,000 4.000 %$76,975 $331,975 $3,975,000 1/1/2033 $0 $71,875 $71,875 $0 7/1/2033 $265,000 4.000 %$71,875 $336,875 $3,710,000 1/1/2034 $0 $66,575 $66,575 7/1/2034 $275,000 4.000 %$66,575 $341,575 $3,435,000 1/1/2035 $0 $61,075 $61,075 7/1/2035 $290,000 4.000 %$61,075 $351,075 $3,145,000 1/1/2036 $0 $55,275 $55,275 7/1/2036 $300,000 4.000 %$55,275 $355,275 $2,845,000 1/1/2037 $0 $49,275 $49,275 7/1/2037 $310,000 4.000 %$49,275 $359,275 $2,535,000 1/1/2038 $0 $43,075 $43,075 7/1/2038 $325,000 4.000 %$43,075 $368,075 $2,210,000 1/1/2039 $0 $36,575 $36,575 7/1/2039 $335,000 4.000 %$36,575 $371,575 $1,875,000 1/1/2040 $0 $29,875 $29,875 7/1/2040 $350,000 4.000 %$29,875 $379,875 $1,525,000 1/1/2041 $0 $22,875 $22,875 7/1/2041 $365,000 3.000 %$22,875 $387,875 $1,160,000 1/1/2042 $0 $17,400 $17,400 7/1/2042 $375,000 3.000 %$17,400 $392,400 $785,000 1/1/2043 $0 $11,775 $11,775 7/1/2043 $385,000 3.000 %$11,775 $396,775 $400,000 1/1/2044 $0 $6,000 $6,000 7/1/2044 $400,000 3.000 %$6,000 $406,000 $0 TOTALS $5,960,000 $2,651,750 $8,611,750 $67,830,000 147 CITY OF BOZEMAN SERIES 2020 REVENUE BOND SID NO. 747 SPECIAL LIMITED OBLIGATIONS OF THE CITY DEBT SERVICE SCHEDULE: $4,001,000 Payment Due Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2024 $79,248 3.175 %$56,133 $135,380 $3,456,670 7/1/2024 $80,506 3.175 %$54,875 $135,380 $3,376,164 1/1/2025 $81,784 3.175 %$53,597 $135,380 $3,294,381 7/1/2025 $83,082 3.175 %$52,298 $135,380 $3,211,299 1/1/2026 $84,401 3.175 %$50,979 $135,380 $3,126,898 7/1/2026 $85,741 3.175 %$49,640 $135,380 $3,041,157 1/1/2027 $87,102 3.175 %$48,278 $135,380 $2,954,055 7/1/2027 $88,485 3.175 %$46,896 $135,380 $2,865,570 1/1/2028 $89,889 3.175 %$45,491 $135,380 $2,775,681 7/1/2028 $91,316 3.175 %$44,064 $135,380 $2,684,365 1/1/2029 $92,766 3.175 %$42,614 $135,380 $2,591,598 7/1/2029 $94,239 3.175 %$41,142 $135,380 $2,497,360 1/1/2030 $95,735 3.175 %$39,646 $135,380 $2,401,625 7/1/2030 $97,255 3.175 %$38,126 $135,380 $2,304,371 1/1/2031 $98,798 3.175 %$36,582 $135,380 $2,205,572 7/1/2031 $100,367 3.175 %$35,013 $135,380 $2,105,205 1/1/2032 $101,960 3.175 %$33,420 $135,380 $2,003,245 7/1/2032 $103,579 3.175 %$31,802 $135,380 $1,899,666 1/1/2033 $105,223 3.175 %$30,157 $135,380 $1,794,443 7/1/2033 $106,894 3.175 %$28,487 $135,380 $1,687,550 1/1/2034 $108,590 3.175 %$26,790 $135,380 $1,578,959 7/1/2034 $110,314 3.175 %$25,066 $135,380 $1,468,645 1/1/2035 $112,066 3.175 %$23,315 $135,380 $1,356,579 7/1/2035 $113,845 3.175 %$21,536 $135,380 $1,242,735 1/1/2036 $115,652 3.175 %$19,728 $135,380 $1,127,083 7/1/2036 $117,488 3.175 %$17,892 $135,380 $1,009,595 1/1/2037 $119,353 3.175 %$16,027 $135,380 $890,242 7/1/2037 $121,248 3.175 %$14,133 $135,380 $768,994 1/1/2038 $123,173 3.175 %$12,208 $135,380 $645,822 7/1/2038 $125,128 3.175 %$10,252 $135,380 $520,694 1/1/2039 $127,114 3.175 %$8,266 $135,380 $393,580 7/1/2039 $129,132 3.175 %$6,248 $135,380 $264,447 1/1/2040 $131,182 3.175 %$4,198 $135,380 $133,265 7/1/2040 $133,265 3.175 %$2,116 $135,381 $0 TOTALS $3,535,918 $1,067,013 $4,602,931 $63,677,514 148 CITY OF BOZEMAN SERIES 2019 LIMITED OBLIGATION BOND SPORTS PARK SPECIAL LIMITED OBLIGATIONS OF THE CITY DEBT SERVICE SCHEDULE: $1,700,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2024 $34,690 3.740 %$28,208 $62,897 $1,469,633 7/1/2024 $35,415 3.740 %$27,483 $62,897 $1,434,218 1/1/2025 $36,078 3.740 %$26,820 $62,897 $1,398,141 7/1/2025 $36,825 3.740 %$26,073 $62,897 $1,361,316 1/1/2026 $37,371 3.740 %$25,526 $62,897 $1,323,945 7/1/2026 $38,208 3.740 %$24,690 $62,897 $1,285,738 1/1/2027 $38,788 3.740 %$24,109 $62,897 $1,246,949 7/1/2027 $39,643 3.740 %$23,254 $62,897 $1,207,306 1/1/2028 $40,259 3.740 %$22,638 $62,897 $1,167,047 7/1/2028 $41,073 3.740 %$21,824 $62,897 $1,125,974 1/1/2029 $41,842 3.740 %$21,056 $62,897 $1,084,132 7/1/2029 $42,680 3.740 %$20,217 $62,897 $1,041,452 1/1/2030 $43,369 3.740 %$19,529 $62,897 $998,083 7/1/2030 $44,284 3.740 %$18,613 $62,897 $953,798 1/1/2031 $45,013 3.740 %$17,885 $62,897 $908,786 7/1/2031 $45,950 3.740 %$16,948 $62,897 $862,836 1/1/2032 $46,718 3.740 %$16,179 $62,897 $816,118 7/1/2032 $47,636 3.740 %$15,262 $62,897 $768,482 1/1/2033 $48,527 3.740 %$14,371 $62,897 $719,955 7/1/2033 $49,472 3.740 %$13,426 $62,897 $670,484 1/1/2034 $50,325 3.740 %$12,572 $62,897 620158.71 7/1/2034 $51,332 3.740 %$11,565 $62,897 568826.45 1/1/2035 $52,231 3.740 %$10,666 $62,897 516595.19 7/1/2035 $53,264 3.740 %$9,634 $62,897 $463,332 1/1/2036 $54,209 3.740 %$8,688 $62,897 $409,122 7/1/2036 $55,247 3.740 %$7,651 $62,897 $353,876 1/1/2037 $56,280 3.740 %$6,617 $62,897 $297,596 7/1/2037 $57,348 3.740 %$5,550 $62,897 $240,248 1/1/2038 $58,393 3.740 %$4,505 $62,897 $181,855 7/1/2038 $59,506 3.740 %$3,391 $62,897 $122,349 1/1/2039 $60,603 3.740 %$2,294 $62,897 $61,746 7/1/2039 $61,746 3.740 %$1,151 $62,897 $0 TOTALS $1,504,322 $508,396 $2,012,719 $25,680,095 149 CITY OF BOZEMAN INTERCAP LOANS 2593-02 & 2593-02 REPLACE/UPGRADE STREET LIGHTS DEBT SERVICE SCHEDULE: $193,231 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 8/15/2023 $7,026 5.75 %$3,138 $10,163 $103,009 2/15/2024 $7,059 5.75 %$2,986 $10,045 $95,950 8/15/2024 $7,111 $0 $7,111 $88,839 2/15/2025 $7,150 $0 $7,150 $81,690 8/15/2025 $7,201 $0 $7,201 $74,488 2/15/2026 $7,238 $0 $7,238 $67,250 8/15/2026 $7,291 $0 $7,291 $59,959 2/15/2027 $7,330 $0 $7,330 $52,629 8/15/2027 $7,382 $0 $7,382 $45,247 2/15/2028 $7,423 $0 $7,423 $37,824 8/15/2028 $7,473 $0 $7,473 $30,352 2/15/2029 $7,517 $0 $7,517 $22,835 8/15/2029 $7,566 $0 $7,566 $15,268 2/15/2030 $7,612 $0 $7,612 $7,657 8/15/2030 $7,657 $0 $7,657 $0 TOTALS $110,035 $6,123 $116,158 782996.75 150 SPORTS PARK/BRONKEN INTERCAP LOAN 2010-01 REPLACE/UPGRADE STREET LIGHTS DEBT SERVICE SCHEDULE: $151,825 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 8/15/2023 $15,045 5.75 %$6,163 $21,209 $201,101 2/15/2024 $15,241 5.75 %$5,829 $21,070 $185,860 8/15/2024 $15,543 $0 $15,543 $170,317 2/15/2025 $15,772 $0 $15,772 $154,545 8/15/2025 $16,075 $0 $16,075 $138,470 2/15/2026 $16,305 $0 $16,305 $122,165 8/15/2026 $16,616 $0 $16,616 $105,549 2/15/2027 $16,864 $0 $16,864 $88,685 8/15/2027 $17,176 $0 $17,176 $71,509 2/15/2028 $17,443 $0 $17,443 $54,066 8/15/2028 $17,752 $0 $17,752 $36,315 2/15/2029 $18,042 $0 $18,042 $18,272 8/15/2029 $18,272 $0 $18,272 $0 TOTALS $216,147 $11,992 $228,139 $1,346,855 2022 TOYOTA HIGHLANDER LEASE DEBT SERVICE SCHEDULE: $19,833 Payment Due Principal Payment Interest Payment Monthly Payment Lease Balance 7/1/2023 $556 $38 $594 $8,626 8/1/2023 $558 $36 $594 $8,068 9/1/2023 $561 $34 $594 $7,507 10/1/2023 $563 $31 $594 $6,944 11/1/2023 $565 $29 $594 $6,378 12/1/2023 $568 $27 $594 $5,810 1/1/2024 $570 $24 $594 $5,240 2/1/2024 $573 $22 $594 $4,667 3/1/2024 $575 $19 $594 $4,092 4/1/2024 $577 $17 $594 $3,515 5/1/2024 $580 $15 $594 $2,935 6/1/2024 $582 $12 $594 $2,353 7/1/2024 $585 $10 $594 $1,769 8/1/2024 $587 $7 $594 $1,181 9/1/2024 $590 $5 $594 $592 10/1/2024 $592 $2 $594 $0 TOTALS $9,182 $329 $9,504 $69,677 151 E. BEALL OFFICE LEASE DEBT SERVICE SCHEDULE: $423,122 Payment Due Principal Payment Interest Payment Monthly Payment Lease Balance 7/1/2023 $6,299 $1,397 $7,695 $328,876 8/1/2023 $6,325 $1,370 $7,695 $322,551 9/1/2023 $6,351 $1,344 $7,695 $316,200 10/1/2023 $6,378 $1,318 $7,695 $309,822 11/1/2023 $6,404 $1,291 $7,695 $303,418 12/1/2023 $6,431 $1,264 $7,695 $296,987 1/1/2024 $6,458 $1,237 $7,695 $290,529 2/1/2024 $6,485 $1,211 $7,695 $284,044 3/1/2024 $6,512 $1,184 $7,695 $277,532 4/1/2024 $6,848 $1,156 $8,005 $270,684 5/1/2024 $6,877 $1,128 $8,005 $263,807 6/1/2024 $6,906 $1,099 $8,005 $256,901 7/1/2024 $6,934 $1,070 $8,005 $249,967 8/1/2024 $6,963 $1,042 $8,005 $243,004 9/1/2024 $6,992 $1,013 $8,005 $236,012 10/1/2024 $7,021 $983 $8,005 $228,990 11/1/2024 $7,051 $954 $8,005 $221,940 12/1/2024 $7,080 $925 $8,005 $214,860 1/1/2025 $7,109 $895 $8,005 $207,750 2/1/2025 $7,139 $866 $8,005 $200,611 3/1/2025 $7,169 $836 $8,005 $193,442 4/1/2025 $7,518 $806 $8,324 $185,924 5/1/2025 $7,550 $775 $8,324 $178,374 6/1/2025 $7,581 $743 $8,324 $170,793 7/1/2025 $7,613 $712 $8,324 $163,181 8/1/2025 $7,644 $680 $8,324 $155,537 9/1/2025 $7,676 $648 $8,324 $147,860 10/1/2025 $7,708 $616 $8,324 $140,152 11/1/2025 $7,740 $584 $8,324 $132,412 12/1/2025 $7,773 $552 $8,324 $124,639 1/1/2026 $7,805 $519 $8,324 $116,834 2/1/2026 $7,837 $487 $8,324 $108,997 3/1/2026 $7,870 $454 $8,324 $101,127 4/1/2026 $8,236 $421 $8,657 $92,891 5/1/2026 $8,270 $387 $8,657 $84,621 6/1/2026 $8,305 $353 $8,657 $76,316 7/1/2026 $8,339 $318 $8,657 $67,977 8/1/2026 $8,374 $283 $8,657 $59,603 9/1/2026 $8,409 $248 $8,657 $51,194 10/1/2026 $8,444 $213 $8,657 $42,750 11/1/2026 $8,479 $178 $8,657 $34,271 12/1/2026 $8,514 $143 $8,657 $25,757 1/1/2027 $8,550 $107 $8,657 $17,207 2/1/2027 $8,586 $72 $8,657 $8,621 3/1/2027 $8,621 $36 $8,657 $0 TOTALS $335,175 $33,917 $369,092 $7,804,967 152 TWO (2) 2022 CAT 150-15AWD MOTOR GRADERS DEBT SERVICE SCHEDULE: $584,900 Payment Due Principal Payment Interest Payment Annual Payment Lease Balance 2/21/2024 $53,341 $38,542 $91,883 $531,559 2/21/2025 $54,359 $37,524 $91,883 $477,200 2/21/2026 $58,159 $33,724 $91,883 $419,042 2/21/2027 $62,224 $29,559 $91,783 $356,818 2/21/2028 $356,818 $26,745 $383,563 $0 TOTALS $584,900 $166,095 $750,995 $1,784,619 2023 ELGIN BROOM BEAR SWEEPER DEBT SERVICE SCHEDULE: $277,720 Payment Due Principal Payment Interest Payment Annual Payment Lease Balance 4/1/2024 $49,053 $14,317 $63,370 $167,490 4/1/2025 $52,296 $11,074 $63,370 $115,194 4/1/2026 $55,754 $7,616 $63,370 $59,440 4/1/2027 $59,440 $3,930 $63,370 $0 TOTALS $216,543 $36,937 $253,480 $342,124 2023 FORD TRANSIT VAN DEBT SERVICE SCHEDULE: $66,602 Payment Due Principal Payment Interest Payment Annual Payment Lease Balance 5/24/2024 $15,187 $2,557 $17,743 $16,415 5/24/2025 $16,415 $1,328 $17,743 $0 TOTALS $31,602 $3,885 $35,486 $16,415 153 154 Capital Improvement Program (CIP) The CIP includes any planned expenditure of $25,000 or greater, that results in the acquisition of an asset with a useful life of 3 years or more. There are a couple of “exceptions” or “extensions” of this definition that we have found helpful and necessary in past years: •Specific plans that involve pre-engineering or preliminary design of facilities are often (but not always) included in the CIP. •Software purchases that could potentially be “software as a service”. Cloud based services are beginning to replace purchases of outright software and hardware. In the CIP, we have treated the software projects as a capital outlay purchase. State law and City charter require the City to prepare the CIP. State Law requires the City to maintain a Capital Improvement Plan for our Development Impact Fee programs. Under Montana Code Annotated (MCA), this Capital Improvement Plan provides the schedules and cost projections required under MCA §7-6-1602(2)(k)(i-iv). In Article 5.06 of the adopted City Charter, the City Manager is responsible for preparing and submitting a multi- year capital program to the City Commission no later than December 15 for the ensuing fiscal year. The latest CIP Plan was adopted by the City Commission on December 13, 2022. The five-year plan includes long-range plans for our current facilities while keeping in mind level of service standards. In a community with relatively high cost of living, the ability of citizens to afford the needed utility rate, fee, and assessment levels is of concern. At the same time, the City strives to keep existing facilities properly maintained — and not pass deferred maintenance costs and problems on to future generations. Once adopted, the Capital Improvements Plan became the basis of the budget for FY24. The City will continue to invest in capital infrastructure in order to keep Bozeman a vibrant and active city. We are a resilient, enterprising, and creative community. The 2024-2028 CIP is a plan to provide efficient and effective services, and to achieve the Commission’s vision and priorities set out in the Strategic Plan for the City of Bozeman. The Plan can be found on the City website: CIP FY24-FY28. 155 FY24 Capital Projects Summary Costs: Approximately $151 million in capital spending and commitments are planned in FY24, primarily for construction projects. The most significant driver is $102 million planned for the Bozeman Community Center (GF355). Three million of this project is planned to be supported by the Library Foundation and the remaining $99 million will be placed on the ballot for voter approval of a general obligation bond. Other projects include investments in recreational facilities already approved by voters, including the Swim Center, Bogert Pool, and Lindley Center. In addition Fire Station 2 is under contract and expected to be completed in the next year or two. Capital Appropriations by Fund General Fund, 3% Fire Impact Fee, 1% Parks & Trails District, 1% Street Arterial Construction District, 1% Street Impact Fee, 3% Street Maintenance District, 2% Downtown TIFD, 2% Capital Projects, 75% Water Fund, 3% Wastewater Fund, 7% Wastewate Impact Fee, —% Solid Waste Fund, —% Following adopting of the FY24 Budget, Bozeman City Commission voted against including the Bozeman Community Center on the November 2023 ballot. 156 FY24 Capital Project Listing by Fund FY24 Capital Project Listing Fund Division Project #Project Name FY24 General Fund 10 Facilities GF001 Elevator Replacement 275,000 10 Facilities GF328 Vehicle Replacement 49,000 10 Facilities GF329 Vehicle Replacement 49,000 10 Facilities GF346 Facility Condition Invent 50,000 10 Facilities GF360 LED Lighting Upgrade - Prof Building 40,000 10 Facilities GF365 Senior Center Parking Lot 45,100 10 Facilities GF366 Professional Building Parking Lot 42,900 10 Facilities GF367 Service Worker Vehicle 49,000 10 Facilities GF368 Site FCA Repairs 236,500 10 Facilities GF369 Facility Needs Assessment 150,000 10 Facilities GF370 City Hall Renovations 1,500,000 10 Information Technology GF080 City-Wide Switches and Routers 55,000 10 Information Technology GF265 Server Replacement Genera Fund 25,000 10 Police GF053 Patrol Car & Equipment Replacement 308,200 10 Police GF294 Patrol Car - Additional 74,000 10 Police GF316 Police Body Camera System* 67,000 10 Cemetery GF268 SW MT Veteran's Cemetery 450,000 10 Recreation GF300 SMCC Gym Floor Replace 222,000 10 Recreation GF373 Bulkhead Retro-fit 100,000 10 Sustainability GF245 Energy Projects 75,000 10 Sustainability GF362 Solar Panel Arrays 330,000 General Fund Total 4,192,700 Planning Fund 100 Planning CD08 Office Reconfigurations 25,000 Planning Fund Total 25,000 Street Maintenance Fund 111 Street Maintenance ICEWEL Relocate Ice Well FS1 100,000 111 Street Maintenance STR20 Annual Bike Path Improvements 100,000 111 Street Maintenance STR22 Streets Operations Grader Lease 120,000 111 Street Maintenance STR30 Annual Median & Boulevard Projects 100,000 111 Street Maintenance STR34 Sweepers 115,000 111 Street Maintenance STR49 Sanders Street Dept 5Yrs 40,000 111 Street Maintenance STR58 Tandem Axle Dump Truck 320,000 111 Street Maintenance STR71 Street Improvements Mill+Overlay 819,900 111 Street Maintenance STR75 Annual Pedestrian Ramp Rehab 110,000 111 Street Maintenance STR84 Plug In Electric Work Truck 70,000 111 Street Maintenance STR90 Chip Seal* 811,300 111 Street Maintenance STR92 Oak St Median Landscaping 60,000 111 Street Maintenance STR114 Mag Chloride Containment 75,000 111 Street Maintenance STR123 Light Duty Fleet Addition 70,000 111 Street Maintenance STR125 Lowboy Equipment Trailer 100,000 111 Street Maintenance STR133 Replace Sand Shed Panels 40,000 111 Street Maintenance STR134 Ice Breaker Attachments 100,000 111 Street Maintenance STR135 Diesel Fuel Tank & Kiosk 32,000 Street Maintenance Fund Total 3,183,200 *Project will not be capitalized and is included in the Operating budget. 157 FY24 Capital Project Listing Fund Division Project #Project Name FY24 Tree Maintenance Fund 112 Tree Maintenance FOR19 Forestry 1-Ton Pickup 55,000 Tree Maintenance Fund Total 55,000 Fire Impact Fee Fund 113 Fire Impact Fee FIF06 Fire Station 4 Land Acquisition & Design 1,500,000 Fire Impact Fee Fund Total 1,500,000 Fire Capital & Equipment Fund 187 Fire Capital & Equip FE12 Personal Protective Equipment 43,000 Fire Capital & Equipment Fund Total 43,000 Street Impact Fee Fund 114 Street Impact Fee A&C012 Cottonwood Rd/Fallon 750,000 114 Street Impact Fee SIF001 Right Of Way Acquisition 2,450,000 114 Street Impact Fee SIF147 Oak & 19Th Intersection 750,000 114 Street Impact Fee SIF152 N 27Th - Baxter - Cattail 450,000 Street Impact Fee Fund Total 4,400,000 Building Inspection Fund 115 Building Inspection BI05 Building Vehicle 50,000 115 Building Inspection CD08 Office Reconfigurations 25,000 Building Inspection Fund Total 75,000 Arterial & Collector District Fund 141 Arterial & Collector A&C007 Shared Use Path-Valley Center 300,000 141 Arterial & Collector A&C012 Cottonwood Rd/Fallon 750,000 141 Arterial & Collector A&C026 Bike/Ped Gap Analysis 100,000 141 Arterial & Collector SIF145 Kagy/Sourdough Intersection 85,000 141 Arterial & Collector SIF147 Oak & 19Th Intersection 250,000 141 Arterial & Collector SIF152 N 27Th - Baxter - Cattail 450,000 141 Arterial & Collector SIF188 Oak St Intersections 150,000 Arterial & Collector Fund Total 2,085,000 Parks & Trails District Fund 195 Parks & Trails District GF031 Park Improvement Grant 275,000 195 Parks & Trails District PTD03 Playground/Skate Park Improvements 630,000 195 Parks & Trails District PTD04 Park Vehicles 135,000 195 Parks & Trails District PTD05 Toolcat Multi Purpose 90,000 195 Parks & Trails District PTD06 Park Shelter Replacement 60,000 195 Parks & Trails District PTD09 Deferred Maintenance 100,000 195 Parks & Trails District PTD13 Sports Complex 370,000 Parks & Trails District Total 1,660,000 Midtown TIFD 143 Midtown TIFD Westlake BMX Park Improvements 300,000 143 Midtown TIFD Codify Design Standards for N. 7th Avenue Streetscape 50,000 143 Midtown TIFD 5th Ave. Trail 325,000 143 Midtown TIFD Food Truck Development Code and Standards 50,000 Midtown TIFD Total 725,000 158 FY24 Capital Project Listing Fund Division Project #Project Name FY24 Northeast TIFD* 144 Northeast TIFD Pedestrian Bridge/East Aspen Street Construction 405,000 144 Northeast TIFD Pocket Park - North Church Right-of-Way Design 25,000 144 Northeast TIFD Fencing along Depot Trail - West Side 20,000 144 Northeast TIFD Quiet Zone Construction 436,900 144 Northeast TIFD Public Art 30,000 144 Northeast TIFD Identification of Undeveloped Public Properties 20,000 144 Northeast TIFD Parking Structure 50,000 Northeast TIFD Total 986,900 Downtown TIFD* 116 Downtown TIFD Street Furniture/Streetscape Improvements 50,000 116 Downtown TIFD Park Improvements (Soroptimist/NBPP) 25,000 116 Downtown TIFD Alley Improveents 250,000 116 Downtown TIFD Intersection Cable Anchor Repairs 25,000 116 Downtown TIFD Parklet Infrastructure 20,000 116 Downtown TIFD Sidestreet Infrastructure Improvements 300,000 116 Downtown TIFD Streetscape, Life-Safety & Fiber Grant Programs 90,000 116 Downtown TIFD Wayfinding & Parking Signage 15,000 116 Downtown TIFD Alternative Transportation Projects 50,000 116 Downtown TIFD Streetlamp Power Reconfiguration Project (SILD) 100,000 116 Downtown TIFD Workforce Housing Project - Fire Station One 1,600,000 Downtown TIFD Total 2,525,000 Construction Funds 500 Recreation GF355 Bozeman Community Center 102,000,000 504 Streets SCR01 Curb Spot Repair 105,000 504 Streets SCR26 Bogert Place - Church to Story 507,000 561 Library LIB32 Automatic Blinds 60,000 572 Fire GF305 Fire Station 2- Relocate 6,895,700 573 Recreation GF137 Swim Center - Facility 4,050,000 573 Recreation GF209 Lindley Center - Remodel 1,750,000 573 Recreation GF238 Bogert Pool Renovation 1,000,000 Construction Funds Total 116,367,700 Water Funds 600 Water ICEWEL Relocate Ice Well in FS1 50,000 600 Water W03 Annual Water Pipe Replacement 25,000 600 Water W04-24 Water Pipe Replacement Projects 1,200,000 600 Water W79 Hyalite Dam & Reservoir Optimization Improvements 262,500 600 Water W89 Membrane Replacement 500,000 600 Water W93 Truck Replacement 60,000 600 Water W97 Replace 1-Ton Truck 58,300 600 Water W101 WTP Tank Outlet Monitor 110,000 600 Water W104 Replace Backhoe 160,900 600 Water W113 Tracked Skid Loader 150,000 600 Water W133 Trans Main WTP to Nash 110,000 600 Water W136 New 3/4 Ton Meter Truck 55,000 600 Water W141 South Press Zone Pre-Design 350,000 600 Water W142 Sourdough Trail Drain Improvements 30,000 600 Water W145 N 3rd Water Main Improvements 212,000 600 Water WC08 Water Conservation Vehicle 40,000 600 Water WIF52 Water Main Cottonwood 525,000 610 Water Impact Fee WIF52 Water Main Cottonwood 475,000 610 Water Impact Fee WIF56 Blackwood Groves Water Main 210,000 Water Funds Total 4,583,700 * No funding for public art can be spent out of this fund until the City has a public art policy established by City Commission. 159 FY24 Capital Project Listing Fund Division Project #Project Name FY24 Wastewater Funds 620 Wastewater ICEWEL Relocate Ice Well in FS1 50,000 620 Wastewater WW07 Annual Wastewater Pipe Replacement 25,000 620 Wastewater WW08 Wastewater Pipe Replacement 1,000,000 620 Wastewater WW09 Annual Wastewater Pipe Replacement 500,000 620 Wastewater WW69 Small Works Projects 150,000 620 Wastewater WW70 WRF Facility Engineering and Optimization 60,000 620 Wastewater WW104 Replace Sewer TV Van 320,000 620 Wastewater WW111 E Gallatin Streambank Erosion 150,000 620 Wastewater WW112 E Gallatin River Data Collection 60,000 620 Wastewater WW122 SCADA Motor Control #2 90,000 620 Wastewater WW126 Bobcat Toolcat 80,000 620 Wastewater WW129 WRF Base Hydraulic Ph 1 1,000,000 620 Wastewater WW130 WRF Effluent Filt Pre-Design 25,000 620 Wastewater WW133 Riverside Lift Station 2,500,000 620 Wastewater WW134 Valley Center Lift Station 3,000,000 620 Wastewater WW135 N 3rd Sewer Main Improvements 204,000 620 Wastewater WWIF50 Joint MSE/DEQ Pilot 70,000 630 Wastewater Impact Fee WWIF44 WRF Interceptor 1,200,000 630 Wastewater Impact Fee WWIF52 Blackwood Groves Sewer 220,000 Wastewater Funds Total 10,704,000 Solid Waste Funds 640 Solid Waste SW58 Roll Off Truck 250,000 640 Solid Waste SW59 Solid Waste Rate Study* 70,000 641 Landfill Closure Costs SW71 Landfill South SVE Wells 70,000 641 Landfill Closure Costs SW72 Landfill East SVE Wells 340,000 Solid Waste Funds Total 730,000 Parking Fund 650 Parking Fund P030 Mobile LPR Technology 100,000 650 Parking Fund P031 Crack Repair Bridger Garage 250,000 650 Parking Fund P034 Fixed LPR Technology 150,000 Parking Fund Total 500,000 Stormwater Fund 670 Stormwater STDM04 Historic Pipe Replacement Program 300,000 670 Stormwater STDM05 Annual Unplanned Pipe Rehab 49,600 670 Stormwater STDM18 Stormwater Rate Model Study* 50,000 670 Stormwater STRH01 Downtown Mech Storm 300,000 Stormwater Fund Total 699,600 Vehicle Maintenance Fund 710 Vehicle Maintenance VM05 Vehicle Maintenance Service Truck 120,000 Vehicle Maintenance Fund Total 120,000 GIS/Asset Management 750 Public Works Administration GIS04 Aerial Photography 65,000 750 Public Works Administration GIS09 LiDAR 65,000 750 Public Works Administration GIS10 Land Cover Acquisition 65,000 Public Works Administration Fund Total 195,000 Total Capital Projects for All Funds 151,118,900 *Project will not be capitalized and is included in the Operating budget. 160 Appendix A: Economic Conditions Assessment Appendix B: Fiscal Budget Policies Appendix C: Long Range Planning Appendix D: Glossary of Key Terms Appendix E: State Submission Documents 161 Economic & Planning Systems | Bridge Economic Development Bozeman Economic Assessment |1 TABLE OF CONTENTS 1. Summary of Findings …………………………………………………………………… 2 2. Community Profile ………………………………………………………………………. 8 3. Economy …………………………………………………………………………………………11 4. Industry Clusters ………………………………………………………………………… 20 5. Economic Equity ………………………………………………………………………… 22 Appendix …………………………………………………………………………………………… 29 163 0 0 0 0 .o .0 0 0 0 o• • 0 0 •• 0 O,o 0 ., 00 ,, 0 0 0 0 0 0 0 0 0 ?O' o,,. 0 0 0 0 •• 0 .. 0 0 0 0 0 0 0 0 0 C, 0 0 0 0~ 0 o· 0 1 -7Jobs o 8 -112Jobs 0 0 113 . 565 Jobs e 566 . 1,785 Jobs 0 e 1,786 • 4,358 Jobs 1.SUMMARY OF FINDINGS Introduction and Purpose This economic assessment describes the economy and demographics of Bozeman and Gallatin County. The information is intended to inform participants in the Economic Development Strategic Plan process. The analysis also compares Bozeman and Gallatin County to several comparison communities that Bozeman sometimes competes with for economic development. Regional Economy The economy of Bozeman, Gallatin County and the Gallatin Valley (Greater Bozeman) are closely related. About half of the jobs in the County are in Bozeman, and a large majority of the jobs are in the Gallatin Valley comprised of Bozeman, Gallatin Gateway, Four Corners, Belgrade, and Manhattan. While this plan is being prepared by the City of Bozeman, it is anticipated to result in regional partnerships to carry it forward. The success of each community in the region contributes to the overall economic vitality because of their proximity, single labor force, and economic relationships. Bozeman Economic Assessment | 2Economic & Planning Systems | Bridge Economic Development 164 1.SUMMARY OF FINDINGS Economy and Trends ▪Growth – Bozeman is growing rapidly with 3.8% annual population growth (+6,400 people 2015-2019) and 2.5% annual job growth (+6,900 jobs 2015-2019). The COVID-19 pandemic has increased the appeal of high-amenity places for remote and knowledge workers and firms which is contributing to these trends. ▪Economic base – Bozeman’s economy is most heavily concentrated in tourism and retail type jobs (tourism and local sectors) that have lower wages than traded sector jobs. ▪Economic evolution – Bozeman and Gallatin County are experiencing strong growth in knowledge-based industries (professional and technical services) and in manufacturing. These trends can be leveraged to further diversify the economy and raise average wages. ▪Wages – Tight labor supply conditions and a rising cost of living have resulted in 5.4% annual wage growth across all industries. Knowledge based industries had wage growth in the 7 to 8% range annually which suggests that the area is attracting high value talent and that the composition of firms is changing. ▪Labor force – The labor supply is extremely tight with 1.1% unemployment (4.0 to 5.0% is considered healthy). The labor shortage may moderate as people reenter the labor force as the pandemic stabilizes. Access to housing (high costs, limited supply) is also a contributing factor. Bozeman Economic Assessment | 3Economic & Planning Systems | Bridge Economic Development 165 1.SUMMARY OF FINDINGS Industry Clusters Industry clusters are groups of similar and related businesses that share common markets, technologies, worker skill needs, and which are often linked by buyer-seller relationships. Industry clusters represent distinct qualities of a community and help define what makes one community different from another. The Economic Development Strategy is likely to recommend a focus on traded sector industry clusters due to their higher economic impact than local sectors. The table shows the industry sectors according to the National Industrial Classification System (NAICS) that align with the specific industry clusters. Industry Sector (NAICS) Industry Cluster Private Wage and Salary Jobs (Gallatin County) •Photonics •Outdoor equipment •Biotechnology •Niche manufacturing 3,600 •Health care 6,000 •Residential and nonresidentialconstruction and trades •Heavy civil construction 6,400 •Outdoor industry (ski areas,guide/tour services 1,700 17,000 31,100 •Retail, restaurants, hotels 4,800 8,400 •Photonics •Quantum computing •Technology / IT •Biotechnology Traded Sectors Manufacturing Professional and technical services Total Local Sectors Health Care Construction Arts, entertainment, and recreation Retail, accommodations and food services Total Bozeman Economic Assessment | 4Economic & Planning Systems | Bridge Economic Development 166 1.SUMMARY OF FINDINGS Factor Implications Strengths/Opportunities Rapid population and job growth •Market supports investment. •Need to keep up with housing demand. Bozeman brand and quality of life •Attracts companies and workers that share that identity. •May be exacerbating housing costs and inequalities. Growth in more diverse sectors (professional services, •Bozeman becoming established as a location for knowledgemanufacturing) based and high value manufacturing industries. •Need to ensure current residents have pathways into thesecareers. MSU is classified as an R1 Doctoral University (very high research •Technology transfer and entrepreneurship opportunities fromactivity), the top research activity classification MSU faculty, staff, and graduates. Weaknesses/Threats Large portion of jobs in tourism, retail, and food and beverage •Lower wages, less economic productivity, mismatch betweenindustries wages and housing costs. Rapid increase in housing and real estate costs •Will constrain labor force availability. •May constrain business expansion or relocation (cost of space). Education and opportunity gap between white and non-white •Invest in career paths into higher paying jobs. population Bozeman Economic Assessment | 5Economic & Planning Systems | Bridge Economic Development 167 1.SUMMARY OF FINDINGS Comparison Communities The consultant team and City staff developed a list of comparison areas to benchmark Bozeman and Gallatin County against. First, the comparison communities have a major university. Second, they are communities that Bozeman competes with for new company site selection. ▪Missoula, MT – in Missoula County, Montana. Missoula has a population of 76,713 and is the home of the University of Montana, which has an enrollment of 10,015 students. Missoula County’s largest employment industries include Health Care, Retail Trade, and Accommodations and Food Services. ▪Fort Collins, CO – Located in Larimer County, Colorado. Fort Collins has a population of 173,035 and is the home of Colorado State University, which has an enrollment of 32,646 students. Larimer County’s largest employment industries include Retail Trade, Health Care, and Accommodations and Food Services. ▪Boulder, CO – Located in Boulder County, Colorado. Boulder has a population of 105,479 and is the home of the University of Colorado Boulder, which has an enrollment of 34,975 students. Boulder County’s largest employment industries include Professional and Technical Services, Health Care, and Manufacturing. ▪Bend, OR – Located in Deschutes County, Oregon. Bend has a population of 97,283 and is the home of Oregon State University–Cascades, which has an enrollment of 1,374 students. Deschutes County’s largest employment industries include Health Care, Retail Trade, and Accommodations and Food Services. ▪Ogden, UT – Located in Weber County, Utah. Ogden has a population of 89,694 and is the home of Weber State University, which has an enrollment of 29,596 students. Weber County’s largest employment industries include Manufacturing, Health Care, and Retail Trade. ▪Boise, ID – Located in Ada County, Idaho. Boise has a population of 240,333 and is the home of Boise State University, which has an enrollment of 24,103 students. Ada County’s largest employment industries include Health Care, Retail Trade, and Administration and Waste Services. Bozeman Economic Assessment | 6Economic & Planning Systems | Bridge Economic Development 168 1. SUMMARY OF FINDINGS How do we compare? Measure * Indicates City only metric; other metrics are County Bozeman/ Gallatin County Missoula/ Missoula County Fort Collins/ Larimer County Boulder/ Boulder County Bend/ Deschutes County Ogden/ Weber County Boise/ Ada County Population* (2021) 51,405 76,713 173,035 105,479 97,283 89,694 240,333 Population Annual Growth Rate (5 years)* (2010-2021) 2.9% 1.2% 1.6% 0.7% 2.2% 0.7% 1.3% Jobs 59,022 58,735 158,006 179,056 81,429 107,658 250,270 Annual Job Growth Rate (2015-2020) 2.5% 0.5% 1.4% 0.7% 2.4% 1.7% 2.9% Largest 3 industries (2020) Retail Trade Accomm. Construction Health Care Retail Trade Accomm. Retail Trade Health Care Accomm. Prof. & Tech. Svcs. Health Care Manufacturing Health Care Retail Trade Accomm. Manufacturing Health Care Retail Trade Health Care Retail Trade Admin.& Waste Svcs. Average Annual Wage (2020) $51,400 $47,469 $58,425 $78,383 $52,936 $46,698 $56,192 Gross Regional Product (Output) per Job (2020) $95,912 $84,341 $117,875 $148,666 $112,162 $98,984 $103,445 % Bachelor’s Degree or Higher* (2019) 59% 48% 55% 76% 44% 21% 42% Median Home Price* (Dec. 2021) $700,000 $517,497 $534,978 $940,000 $683,000 $360,000 $554,933 % White-Non Hispanic / All Other Races* (2019) 92% / 8% 91% / 9% 88% / 12% 87% / 13% 93% / 7% 84% / 16% 89% / 11% Economic & Planning Systems | Bridge Economic Development Bozeman Economic Assessment | 7 169 2.COMMUNITY PROFILE Population and Growth Rates Why we measure Population growth comes from job growth, in- migration, and natural increase (births and deaths). It is a broad indicator of economic vitality, the appeal of a place, and community change and evolution. Population growth also drives demand for housing. Key Findings ▪Bozeman had the fastest population growth rate among the comparison communities, at 2.9% per year. The City added 14,051 people from 2010-2021. ▪Bend, OR was the second fastest growing at 2.2% per year. ▪Fort Collins, Boise, and Missoula are growing at a more moderate pace of 1.2 to 1.6% per year. ▪Bozeman surpassed 50,000 population which is a threshold that makes the City eligible for new federal funding sources. The official population estimates from the US Census Redistricting process is 53,293. Description 2010 2021 Total Ann. # Ann. % Population Bozeman 37,354 51,405 14,051 1,277 2.9% Bend 76,652 97,283 20,631 1,876 2.2% Fort Collins 144,693 173,035 28,342 2,577 1.6% Boise 208,726 240,333 31,607 2,873 1.3% Missoula 67,533 76,713 9,180 835 1.2% Ogden 82,905 89,694 6,789 617 0.7% Boulder 97,968 105,479 7,511 683 0.7% Households Bozeman 15,777 22,051 6,274 570 3.1% Bend 31,795 40,021 8,226 748 2.1% Fort Collins 58,113 69,655 11,542 1,049 1.7% Boise 86,978 102,110 15,132 1,376 1.5% Missoula 29,406 33,965 4,559 414 1.3% Ogden 29,667 32,338 2,671 243 0.8% Boulder 41,522 44,389 2,867 261 0.6% Source: ESRI; Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016-Demographics.xlsx]T_Pop&HHs_New 2010-2021 Bozeman Economic Assessment | 8Economic & Planning Systems | Bridge Economic Development 170 Index 120% 118% 116% 114% 112% 110% 108% 106% 104% 102% 100% 2015 2016 Source: QCEW; Economic & Planning Systems 2017 2018 2019 2020 2.COMMUNITY PROFILE Total Jobs and Growth Rates Why we measure Job growth is an indicator of the strength of an economy. Jobs are created from the growth of existing businesses, and new business formation and entrepreneurship. The best employment data is only available at the county level. Most of the economic analysis that follows is for the counties in which the comparison communities are located. Key Findings ▪Jobs in Gallatin County grew at a 2.5% annual rate, the second-highest of the comparison areas. The County added nearly 7,000 jobs between 2015 and 2020. ▪Population in Gallatin County is growing faster than jobs. Possible explanations include: –In-migration is not tied to a local job (e.g., remote workers, retirees) –Jobs of new residents are recorded elsewhere ▪Ada County (Boise) had the fastest job growth at 2.9% per year. Deschutes County (Bend) was slightly behind Bozeman at 2.4% per year. Description County 2015 2020 Total Ann. # Ann. % Total, All Industries Boise Ada 216,678 250,270 33,592 6,718 2.9% Bozeman Gallatin 52,059 59,022 6,963 1,393 2.5% Bend Deschutes 72,423 81,429 9,006 1,801 2.4% Ogden Weber 98,729 107,658 8,929 1,786 1.7% Fort Collins Larimer 147,455 158,006 10,551 2,110 1.4% Boulder Boulder 172,735 179,056 6,321 1,264 0.7% Missoula Missoula 57,337 58,735 1,398 280 0.5% Source: QCEW; Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016-QCEW.xlsx]T-All_TotalGrowth 2015-2020 Bozeman Economic Assessment | 9Economic & Planning Systems | Bridge Economic Development 171 2. COMMUNITY PROFILE Universities Universities are centers of research and innovation. They spin off entrepreneurs, technology, and ideas that support jobs and innovation in the local economy. Universities are also major employers on their own. The student population also influences the housing and retail markets in their host communities. Research Classification There are 146 institutions classified as “R1: Doctoral Universities – Very High Research Activity” as of 2021. This status indicates a high level of research activity per capita. Of the peer communities, only Montana State University, University of Colorado Boulder, Colorado State University, and the University of Montana share this status. ` Description Boulder Ogden Bozeman Fort Collins Missoula Boise Bend Major Colleges/Universities University of Colorado Weber State University Montana State University Colorado State University University of Montana Boise State University Oregon State University Research Classification R1-Very High Research Activity ---R1-Very High Research Activity R1-Very High Research Activity R1-Very High Research Activity R2-High Research Activity --- Enrollment (Fall 2020)34,975 29,596 16,249 32,646 10,015 24,103 1,374 % of Total Population 33.2% 33.0% 31.6% 18.9% 13.1% 10.0%1.4% Source: Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016-Demographics.xlsx]T-University Bozeman Economic Assessment | 10Economic & Planning Systems | Bridge Economic Development 172 Trade Hotel/Restaurant Construction Health Care Prof. & Tech Services Manufacturing Other Admin/Waste Mgmt Wholesale Trade Finance/Insurance Arts/Rec Transport./Warehousing Real Estate Education Ag./Forest/H u ntin g Information ■ Bozeman ■ Gallatin County Total Jobs 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 ,k@.j ¥.ml I =iti€I Source: Bureau of Labor Statistics; MT Dept. of Labor; Economic & Planning Systems 3.ECONOMY Jobs by Industry, 2020 Why we measure The types of jobs in an economy influence demographic factors such as household income and education levels. Available job types affect economic mobility and career opportunities as well. The economic mix also affects the built environment and real estate markets – the types of buildings and housing that are in demand. Key Findings ▪The largest industries in Bozeman and Gallatin County are: –Retail trade –Hotels and restaurants –Construction –Health care –Professional and technical services –Manufacturing ▪Greater Bozeman is a gateway to Yellowstone National Park and other outdoor recreation assets that attract national and international visitors. Tourism and retail sectors are therefore a large part of the economy. ▪Note: these figures are private wage and salary jobs and do not include state and federal government or MSU jobs. State and local government employs approximately 10,700 people in Gallatin County including about 4,200 faculty and staff at MSU. Bozeman Economic Assessment | 11Economic & Planning Systems | Bridge Economic Development 173 SECTOR -OPPPORTUNIY ONRAMP ' &, ~ ,• .. ,.: ... 1. OP N -... _, . .. 3. ECONOMY Definitions: Traded and Local Sectors Traded Sector Traded sectors export goods and services and bring new money into the economy. This injection of new money helps support local traded sector businesses. Traded sector jobs also tend to have higher wages and larger multiplier effects (spinoff or indirect impacts) than local sectors. Manufacturing and knowledge- based industries are among the traded sectors in the Gallatin Valley. Local Sectors Local sectors are generally goods and services needed by local residents. Local sectors include retail stores, restaurants, health care, personal care services, and repair and maintenance services. There are entrepreneurship and business ownership opportunities in many local sectors with lower barriers to entry compared to traded sectors, making them a good “on ramp” for opportunity. Local sectors tend to have lower wages in comparison to traded sectors. Role of Tourism Since tourism is an important part of the economy, some local sectors are also exports because they serve visitors and second homeowners. These include hotels, restaurants and retail, property management, construction, and outdoor recreation. Economic & Planning Systems | Bridge Economic Development Bozeman Economic Assessment | 12 174 Prof. & Tech Services Health Care Retail Trade Manufacturing Admin/Waste Mgmt Other Real Estate Wholesale Trade Education Finance/Insurance Ag./Forest/Hu nting Information ■ Bozeman ■ Gallatin County Job Growth -200 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 -­fkl ·m I Iii ·1 I llml ·m Im ·m E 11 Im .ll IE I ¥It■ 1,659 Source: Bureau of Labor Statistics; MT Dept. of Labor; Economic & Planning Systems 3.ECONOMY Change in Jobs 2015-2020 Why we measure The change in jobs by industry is a forward-looking indicator of where the economy is trending. These data can inform strategies on which industries to support for growth or to prevent or manage decline. Key Findings ▪Construction is booming as Greater Bozeman grows and major resort projects are underway in Big Sky. ▪Professional and technical services had the most growth outside of construction. This is a significant change and shows that companies in Greater Bozeman are expanding, and new firms are being formed or attracted. The area is attracting knowledge-based companies and workers. ▪Manufacturing also had significant growth which is rare in small metro areas. Manufacturing is a diverse and important sector in Greater Bozeman. ▪Health care also grew significantly, which is consistent with national trends. People are living longer, more people have health insurance, and the large baby boomer population is aging and increasing health care demand. Economic & Planning Systems | Bridge Economic Development Bozeman Economic Assessment | 13 175 3.ECONOMY Location Quotients Why we measure A location quotient (LQ) measures the concentration of an industry in an area compared to the U.S. It is a ratio calculated as the percentage of jobs in the analysis area divided by the percentage in the U.S. From this we can compare the concentrations of industries across different areas and asses local industry strengths or specializations. How to interpret: “Construction jobs in Gallatin County are 2.09 times more concentrated than the U.S. average.” Key Findings ▪Bozeman has lower concentrations in most traded sectors than the comparison communities and higher concentrations in local sectors. ▪As larger cities/metros, Boulder and Boise have more diverse economies. ▪Boulder and Boise/Ada County have higher concentrations of jobs in knowledge and financial industries. ▪Ogden, UT/Weber County has more than twice the manufacturing concentration than Bozeman (aerospace, defense, outdoor products, advanced materials) ▪Boulder and Fort Collins also have higher concentrations of manufacturing at 1.29 and 1.02. Economic & Planning Systems | Bridge Economic Development Bozeman Economic Assessment | 14 Bozeman/Gallatin Highest Industry Location Quotient Concentration Traded Sectors Agriculture, forestry, fishing and hunting 1.33 Corvallis/Benton 3.21 Mining, quarrying, and oil and gas extraction 0.82 Bozeman/Gallatin 0.82 Information 0.63 Boise/Ada 1.14 Management of companies and enterprises 0.24 Boise/Ada 1.05 Professional and technical services 1.20 Boulder/Boulder 2.47 Wholesale trade 0.76 Boise/Ada 1.22 Manufacturing 0.70 Ogden/Weber 1.61 Transportation and warehousing 0.55 Boise/Ada 0.70 Finance and insurance 0.63 Boise/Ada 1.14 Local Sectors Utilities 0.50 Boise/Ada 1.03 Construction 2.09 Bozeman/Gallatin 2.09 Retail trade 1.31 Bozeman/Gallatin 1.31 Real estate and rental and leasing 1.30 Bozeman/Gallatin 1.30 Administrative and waste services 0.62 Boise/Ada 1.38 Educational services 0.72 Boulder/Boulder 0.79 Health care and social assistance 0.72 Missoula/Missoula 1.22 Arts, entertainment, and recreation 1.99 Bozeman/Gallatin 1.99 Accommodation and food services 1.47 Bozeman/Gallatin 1.47 Other services, except public administration 1.39 Missoula/Missoula 1.57 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016-QCEW.xlsx]T-LQ vs Peers176 Bozeman ■ Gallatin County Total Jobs 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Retail Trade Hote 1/Resta u rant Construction Health Care Prof. & Tech Services Manufacturing Other Admin/Waste Mgmt Wholesale Trade Finance/Insurance Arts/Rec Transport./Warehousing Real Estate Education Ag./Forest/Hu nting Information -1 $.19, $~400 Source: Bureau of Labor Statistics; MT Dept. of Labor; Economic & Planning Systems 26600 I Z:\Shared\Projects\OEN\223016-Bozeman MT Economic Development Strategy\Data\(213051-City County 2dig NAJCS 3.ECONOMY Wages by Industry Why we measure The wage earned by a worker translates directly to their income, ability to support family members, pay for housing, and invest in education and/or retirement. Wages in an industry are also an indicator of the value creation and worker skills in that industry. Higher paying jobs typically require more education and training, which can be a barrier to low-income populations and people of color. Key Findings ▪There are more jobs with lower wages than there are with higher wages, which is a typical pattern. ▪Tourism and local sectors have lower wages than traded or economic base sectors. ▪The average wage in retail is $40,100 ($19.27/hr) and $26,600 ($12.78) in hotel and restaurant jobs (not including tips). ▪In comparison, the average annual wage for professional and technical services is $79,200 ($38.08/hr). Economic & Planning Systems | Bridge Economic Development Bozeman Economic Assessment | 15 177 3.ECONOMY Change in Wages by Industry Why we measure At the industry level wages change due to a variety of factors such as competition for workers and talent (labor supply) and changes in the mix of companies and products within an industry. Key Findings ▪Greater Bozeman has experienced strong wage growth likely due to a tight labor supply and rising cost of a living. Wages grew at an average of 5.4% per year. ▪Some of the highest wage growth was in information, finance/insurance, and professional and technical services. This suggests that: –There is competition for talent –Bozeman is attracting higher value service firms and employees –The economy is evolving and producing higher value services and products ▪Local and tourism sectors also had strong wage growth indicating a tight supply of labor and more leverage for workers to command higher wages. Industry 2015 2020 % Change Growth Rate % of Jobs Economic Base/Traded Sectors Ag./Forest/Hunting $33,800 $46,300 37.0%6.5%1.5% Mining $74,900 $86,500 15.5%2.9%0.3% Utilities D D D D 0.0% Manufacturing $41,500 $53,500 28.9%5.2%7.1% Wholesale Trade $56,100 $68,100 21.4%4.0%3.4% Transport./Warehousing $33,500 $45,200 34.9%6.2%2.5% Information $56,500 $82,400 45.8%7.8%1.3% Finance/Insurance $63,400 $89,800 41.6%7.2%3.1% Prof. & Tech Services $66,700 $87,500 31.2%5.6%9.2% Mgmt. of Companies $60,100 $74,700 24.3%4.4%0.4% Admin/Waste Mgmt $32,400 $39,000 20.4%3.8%4.4% Subtotal 33.3% Local Sectors Construction $46,900 $59,900 27.7%5.0%12.4% Retail Trade $29,300 $38,000 29.7%5.3%16.2% Real Estate $34,800 $50,900 46.3%7.9%2.4% Education $25,900 $36,000 39.0%6.8%1.7% Health Care $44,900 $56,100 24.9%4.6%11.8% Arts/Rec $25,800 $28,700 11.2%2.2%3.0% Hotel/Restaurant $18,300 $24,300 32.8%5.8%14.8% Other $30,100 $39,400 30.9%5.5%4.5% Subtotal 66.7% Overall Averages $39,600 $51,400 29.8%5.4% 100.0% Note: "D" indicates not disclosed for privacy requirements. Source: Bureau of Labor Statistics QCEW; Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[213051-City County 2dig NAICS Employment Data_10-01-21.xlsx]T-2015-2021Wages Change in WagesWages Bozeman Economic Assessment | 16Economic & Planning Systems | Bridge Economic Development 178 Rate 8.0% 7.0% 6.0% 5.0% Bend, 3.1% Fort Collins, 3.1% Boulder, 2.8% Missoula, 2.0% Ogden, 1.8% 4.0% 3.0% 2.0% 1.0% 0.0% -----------------------------------------l-B.o.is.e,..1.6% Bozeman, 1.1% 2015 2016 2017 2018 2019 2020 Dec . 2021 Source: BLS LAUS; Economic & Planning Systems 3.ECONOMY Unemployment Rate Why we measure The unemployment rate measures the supply and demand relationship between employers and workers. When unemployment is high, there are not enough jobs for people in the labor force and visa versa. It is another good indicator of the health of an economy. However low unemployment is an indicator of labor shortages and can lead to inflation and constrain business growth. Key Findings ▪Unemployment rates are at historic lows nationally due to a drop in labor force participation related to the Pandemic. ▪Bozeman has the lowest unemployment rate of the comparison communities at 1.1%, which is not sustainable. Economists generally view a “healthy” unemployment rate as 4.0 to 5.0%. ▪The unemployment rate is expected to rise if more people reenter the labor force as the pandemic stabilizes, and if wages increase to create enough incentive. Bozeman Economic Assessment | 17Economic & Planning Systems | Bridge Economic Development 179 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Boulder (Boulder) Source: Economic & Planning Systems Fort Collins Bend (Larimer) (Deschutes) Boise (Ada) Ogden (Weber) Bozeman (Gallatin) Missoula (Missoula) 3.ECONOMY Gross Regional Product (GRP) per Job Why we measure Gross Regional Product (GRP) is the local or regional equivalent of GDP (Gross Domestic Product). GRP is the value of all goods and services produced in an economy. GRP per job is a measure of the productivity of the labor force and firms in the economy – the value of the output created from each worker. Key Findings ▪Boulder, CO has the most productive economy with nearly $150,000 in annual output per worker, followed by Fort Collins, CO at $118,000. ▪Bozeman and Gallatin County are at the lower end of the spectrum of the comparison communities due to the higher concentration of tourism and local serving jobs. Bozeman Economic Assessment | 18Economic & Planning Systems | Bridge Economic Development 180 Total SBIR & STIR Awards, 2015-2021 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Boulder Fort Collins Source: SBIR; STTR; Economic & Planning Systems Total SBIR & STIR Awards, Per Employee, 2015-2021 $4,500 $4,009 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Boulder Bozeman Source: SBIR; STIR; ESRI; Economic & Planning Systems Bozeman Fort Collins $9,462,352 $8,092,932 $1,856,201 $947,230 Missoula Boise Bend Ogden $n,,_ ____ $_6_4 _____ $_3_s _____ $_23 __ Missoula Boise Bend Ogden 3. ECONOMY Technology Transfer Awards Why we measure The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are highly competitive federal research funds designed to stimulate R&D and technological innovation for small businesses. STTR/SBIR programs and funding are an indicator of innovation among small businesses in communities. Key Findings ▪Boulder, CO was awarded the most SBIR and STTR funding, with $242 million, or $4,009 per employee since 2015. ▪Bozeman received the second-most funding per employee of the peer communities. ▪Bozeman has a large concentration of R&D and tech-centric businesses that are catalyzed by MSU’s Tech Transfer Office and MilTech, which help commercialize and provide a gateway for industry partners to access MSU technology. Economic & Planning Systems | Bridge Economic Development Bozeman Economic Assessment | 19 181 4.INDUSTRY CLUSTERS Definition Industry clusters are groups of similar and related businesses that share common markets, technologies, worker skill needs, and that are often linked by buyer-seller relationships. Industry clusters represent distinct qualities of a community and help define what makes one community different from another. As they convey distinct qualities, it is important to be specific in the definition of a cluster. For example, rather than promoting “high-tech,” a community should focus on “software or photonics” to convey the type of product being manufactured and its unique workforce and supply chain needs. The Economic Development Strategy is likely to recommend a focus on traded sector industries in terms of the City’s role and investment of resources. Traded sectors industries have higher wages and greater economic impact than local sectors. The table shows the industry sectors according to the North American Industry Classification System (NAICS) that align with the specific industry clusters. Industry Sector (NAICS) Industry Cluster Private Wage and Salary Jobs (Gallatin County) •Photonics •Outdoor equipment and clothing •Biotechnology •Niche manufacturing 3,600 •Health care 6,000 •Residential and nonresidentialconstruction and trades •Heavy civil construction 6,400 •Outdoor industry (ski areas,guide/tour services 1,700 17,000 31,100 •Retail, restaurants, hotels 4,800 8,400 •Photonics •Quantum computing •Technology / IT •Biotechnology Traded Sectors Manufacturing Professional and technical services Total Local Sectors Health Care Construction Arts, entertainment, and recreation Retail, accommodations and food services Total Bozeman Economic Assessment | 20Economic & Planning Systems | Bridge Economic Development 182 ~~l~~ ~dVR ~U1J!~ ~,~,l?~Ec~ Q~~~ ~FLIR @ HEL~X DRIFT BOATS GD L DEN he Quest for Significance™ Acceleratmg t Molecular Montana BOZEMAN SYMPHONY " SIMMS 4.INDUSTRY CLUSTERS Traded Sector Industry Clusters ▪Photonics – The science and technology of generating, detecting, and controlling light. It has numerous everyday consumer and industrial applications. Photonics companies were created from MSU grads and related R&D programs. There are at least 35 companies and 800 jobs in Photonics. ▪Biotechnology – Biotechnology includes medical and drug research and manufacturing. The cluster is oriented around MSU R&D and numerous startup companies in the Gallatin Valley. The area’s strength is in the R&D, trial, and identifying commercial use stages of biotech. ▪Quantum computing – Quantum computing uses atomic motion to perform computing operations. It is a major national security and technology priority. MSU has received $20M in federal grants to expand quantum research. There are relationships with the local photonics cluster in quantum research as well. ▪Technology / IT – The Gallatin Valley has a thriving and growing segment of technology (programming and information technology) companies stemming from spinoffs from RightNow Technologies, Oracle, and Bozeman’s quality of life that attracts startup entrepreneurs and venture capital. ▪Outdoor equipment – Bozeman is known throughout the U.S. as an outdoor recreation destination. It also attracts Outdoor companies that capitalize on the Bozeman brand and identity. Companies such as Simms Fishing, Oboz Shoes, Mystery Ranch (formerly Dana Design), Spark R&D and numerous smaller companies are in the Gallatin Valley. ▪Manufacturing and niche products – Manufacturing is a diverse sector in the Gallatin Valley. Products made here include electronic components, metal products, musical instruments, food and beverages, and wood products and building materials. ▪Creative Arts – Sectors whose goods and services are based on intellectual property. Individual creativity is the main source of value and cause of a transaction. The creative arts industry cluster for Gallatin Valley includes the following sectors: publishing; advertising and marketing; film, TV; and photography; design; and performing arts. Economic & Planning Systems | Bridge Economic Development Bozeman Economic Assessment | 21 183 of Jobs above Self• Sufficiency Wage, 2020 70% 60% 61% 50% 40% 30% 20% 10% 0% Boulder ■ 50% I I I I Ogden 49% I I 44% I 42% I I I I I I I I I Bend Missoula Boise Source: QCEW; MIT Living Wage Calculator, Economic & Planning Systems 39% 37% I I I I I Fort Collins Bozeman 5. ECONOMIC EQUITY Self Sufficiency Wage Why we measure The federal poverty definition only accounts for a basic food budget and does not include other costs such as childcare and housing. The MIT Living Wage calculator estimates the wage needed for a household to afford food, childcare, health insurance, housing, transportation, and basic necessities (clothing, hygiene items). As stated in its definitions, the “living wage is the minimum income standard that, if met, draws a very fine line between the financial independence of the working poor and the need to seek out public assistance or suffer consistent and severe housing and food insecurity.” The MIT Living Wage calculator estimates the living wage in Gallatin County at $21.68 for a family of four with two working adults and two children. The chart shows the percentage of jobs in each county that are above the self sufficiency wage. Key Findings Due to the high cost of housing and large concentration of tourism and local sector jobs, Bozeman and Gallatin County are at the bottom of the comparison communities with the lowest percentage of jobs above the self sufficiency threshold. Bozeman Economic Assessment | 22Economic & Planning Systems | Bridge Economic Development 184 of Population, 2019 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 16% 84% Ogden ■ 13% ■ 87% ■ ■ ■ ■ ■ ■ ■ ■ Boulder Source: US Census; Economic & Planning Systems ■ White Non-Hispanic ■ All Other Races ■ 12% ■ 11% ■ 9% ■ 8% ■ 7% ■ ■ ■ 91% ■ 92% ■ 93% 88% 89% ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Fort Collins Boise Missoula Bozeman Bend 5.ECONOMIC EQUITY Race and Ethnicity Why we measure Looking at the racial composition of a place helps us evaluated the presence of disparities in economic opportunity by race. There are persistent gaps between income, wealth, and education between non-Hispanic whites and people of color and white Hispanic and Latinx people. Key Findings The white non-Hispanic population comprises 92% of the population of Bozeman, which is similar to most of the comparison communities. Larger cities within larger metro areas such as Ogden and Boulder have slightly more diverse populations. Bozeman Economic Assessment | 23Economic & Planning Systems | Bridge Economic Development 185 of Employer Firms 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 16% 84% Missoula ■ 14% ■ ■ 86% ■ ■ ■ ■ ■ ■ ■ Boulder ■ White Non-Hispanic ■ All Other Races ■ 14% ■ 13% ■ 13% ■ ■ ■ 87% ■ 87% ■ ■ 86% ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Boise Ogden Fort Collins Source: US Census 2017 Annual Business Survey; Economic & Planning Systems 12% ■ 10% 88% ■ 90% ■ ■ ■ ■ ■ ■ ■ ■ Bend Bozeman 5.ECONOMIC EQUITY Business Owner Demographics Why we measure Looking at the racial composition of business owners helps to further evaluate the presence of disparities in economic opportunity and wealth building by race. Key Findings From the data, there do not appear to be significant differences between the racial and ethnic composition of business owners and the overall population in Bozeman or in the comparison communities. A caveat is that there is a margin of error in these data, and people of color may be underrepresented in Census data. Bozeman Economic Assessment | 24Economic & Planning Systems | Bridge Economic Development 186 9' Bachelor's Degree or Higher, 2019 ■White Non-Hispanic ■ All Other Races 90% D1:1.44 80% 70% 60% 50% 40% 30% 20% 10% 0% Boulder Bozeman Fort Collins Missoula Bend Boise Ogden Source: us Census; Economic & Planning Systems 5.ECONOMIC EQUITY Educational Attainment Why we measure Comparing the level of education achieved to the overall population is another indicator of disparities in economic opportunity and wealth building. Key Findings Boulder is the most highly educated community. Bozeman and Fort Collins have similar levels of education with about 60% of the population having a Bachelor’s degree or higher. Ogden, Utah has the lowest levels of education. There are differences in educational attainment by race and ethnicity in each community. Boulder, Bozeman, and Fort Collins have the highest educational disparities. In Boulder, white non-Hispanics are about 1.44 times more likely to have a college degree or higher and 1.36 times more likely in Bozeman. The disparity in educational attainment is partly explained by the presence of large universities, particularly in Boulder, Bozeman, and Fort Collins. The predominately white faculty in each case increases the number of white advanced degree holders in the community. DI: Disparity Index (%White Non-Hispanic/% All Other) Bozeman Economic Assessment | 25Economic & Planning Systems | Bridge Economic Development 187 % Cost Burdened, 2019 70% 60% 50% 40% 30% 20% 10% 0% Boulder Fort Collins Source: US Census; Economic & Planning Systems Median Home Price $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Source: Economic & Planning Systems 2019 ■ Renter Households ■ Owner Households Bozeman Bend Missoula --------------- 2020 Boise Ogden ------Boulder, $940,000 Bozeman, $7001000 Bend, $683,000 Bois , "554;!H3- Fort Collins, $534,978 Ogden, $360,000 2021 5. ECONOMIC EQUITY Housing Costs and Access Why we measure Housing costs are a large factor in quality of life, access to home ownership, wealth building, and labor force attraction and retention. High housing costs and low supply can constrain economic growth when the labor force cannot find adequate housing. A person or household is “cost burdened” when they are paying more than 30% of their income towards rent or mortgage payments. Key Findings In Bozeman, 54% or renters are cost burdened making it the third most unaffordable city for renters of the comparison communities. Boulder and Fort Collins are even less affordable for renters while Boise and Ogden are more affordable with a lower percentage of cost burdened renters and owners. Bozeman has the second highest median home price at about $700,000, second only to Boulder at $940,000. Home prices in Bozeman have increased at alarming rates due to strong job and in-migration of wealth, and a housing supply that has not kept up. Economic & Planning Systems | Bridge Economic Development Bozeman Economic Assessment | 26 188 5.ECONOMIC EQUITY Relating Wages to Home Prices Why we measure Wages are the primary source of household income for working people. In a balanced housing market, home prices are related to wages and local household incomes. Bozeman however has a complex housing market influenced by the influx of remote workers, second homeowners, early retirees, and a smaller pool of builders than larger metro area markets. The supply has not been able to keep up with demand as exhibited by the rapidly rising home prices. These influences have detached home prices from local wages. Key Findings Towards the end of 2021, the median home price in the city was about $700,000, which required an annual income of approximately $162,000 to afford and is 220% of area median income (AMI). The table on the next page shows average wages for each major industry. For a household with one earner, the average wage is equivalent to the household income. The table also shows the household income if there are 1.5 (one full one half time) or 2.0 workers in the household earning the same wage. The green shaded cells show the incomes and industries that pay enough to afford the median home price. Only in the highest paying industries with two earners is the median home price affordable. Bozeman Economic Assessment | 27Economic & Planning Systems | Bridge Economic Development 189 - 5.ECONOMIC EQUITY Relating Wages to Home Prices Income needed to afford $700,000: $162,000 (220% of AMI Description Ann. Income % AMI Ann. Income % AMI Ann. Income % AMI Area Median Income $62,250 $88,900 $88,900 1-person household 4-person household 4-person household Traded Sectors Ag./Forest/Hunting $46,300 74.4%$69,450 78.1%$92,600 104.2% Mining $86,500 139.0%$129,750 146.0%$173,000 194.6% Utilities D N/A N/A N/A N/A N/A Manufacturing $53,500 85.9%$80,250 90.3%$107,000 120.4% Wholesale Trade $68,100 109.4%$102,150 114.9%$136,200 153.2% Transport./Warehousing $45,200 72.6%$67,800 76.3%$90,400 101.7% Information $82,400 132.4%$123,600 139.0%$164,800 185.4% Finance/Insurance $89,800 144.3%$134,700 151.5%$179,600 202.0% Prof. & Tech Services $87,500 140.6%$131,250 147.6%$175,000 196.9% Mgmt. of Companies $74,700 120.0%$112,050 126.0%$149,400 168.1% Admin/Waste Mgmt $39,000 62.7%$58,500 65.8%$78,000 87.7% Local Sectors Construction $59,900 96.2%$89,850 101.1%$119,800 134.8% Retail Trade $38,000 61.0%$57,000 64.1%$76,000 85.5% Real Estate $50,900 81.8%$76,350 85.9%$101,800 114.5% Education $36,000 57.8%$54,000 60.7%$72,000 81.0% Health Care $56,100 90.1%$84,150 94.7%$112,200 126.2% Arts/Rec $28,700 46.1%$43,050 48.4%$57,400 64.6% Hotel/Restaurant $24,300 39.0%$36,450 41.0%$48,600 54.7% Other $39,400 63.3%$59,100 66.5%$78,800 88.6% Public Admin D N/A N/A N/A N/A N/A Unclassified D N/A N/A N/A N/A N/A Source: Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016-Self Sufficiency Wages.xlsx]T-AMISector 1-Earner 1-Person Household 1.5-Earner 4-Person Household 2-Earner 4-Person Household Bozeman Economic Assessment | 28Economic & Planning Systems | Bridge Economic Development 190 APPENDIX 191 ♦ Mesa Laboratories 0 2 mi Legend ♦ Bioscience Co mpanies Boundaries City Limits Urban Boundary Downtown Boze man Montana State University j APPENDIX: BIOTECHNOLOGY COMPANIES Bozeman Economic Assessment | 30Economic & Planning Systems | Bridge Economic Development 192 Laser La Blackmore Sensors and Analyti(/ Quantum Composers mi -+-r searc Legend ♦ Photonics Comp anies Boundaries Parks City Limits Urban Boundary Downtown Bozeman Montana State University } ments Corporation ctronics R / Scientific Materials Corporati w ort I LX Li htwave APPENDIX: PHOTONICS COMPANIES Bozeman Economic Assessment | 31Economic & Planning Systems | Bridge Economic Development 193 ♦21 13 .. Legend ♦ Software co mpanies Boundaries City Limits Urban Boundary Downtown Bozeman Montana State University j APPENDIX: SOFTWARE COMPANIES Bozeman Economic Assessment | 32Economic & Planning Systems | Bridge Economic Development 194 APPENDIX: DETAILED LOCATION QUOTIENTS Bozeman Boulder Boise Corvallis Bend Fort Collins Missoula Ogden Highest Location Industry Gallatin Boulder Ada Benton Deschutes Larimer Missoula Weber Concentration Quotient Traded Sectors Agriculture, forestry, fishing and hunting 1.33 0.38 0.33 3.21 1.12 0.67 1.00 0.43 Corvallis/Benton 3.21 Mining, quarrying, and oil and gas extraction 0.82 0.25 0.17 0.14 0.21 0.79 0.15 0.10 Bozeman/Gallatin 0.82 Information 0.63 0.53 1.14 0.44 0.59 0.49 0.80 1.09 Boise/Ada 1.14 Management of companies and enterprises 0.24 0.54 1.05 0.00 0.73 0.39 0.26 0.24 Boise/Ada 1.05 Professional and technical services 1.20 2.47 1.01 0.92 0.83 1.04 0.91 0.67 Boulder/Boulder 2.47 Wholesale trade 0.76 0.90 1.22 0.00 0.66 0.81 0.85 0.90 Boise/Ada 1.22 Manufacturing 0.70 1.29 0.78 0.91 0.75 1.02 0.47 1.61 Ogden/Weber 1.61 Transportation and warehousing 0.55 0.23 0.70 0.31 0.56 0.57 0.00 0.55 Boise/Ada 0.70 Finance and insurance 0.63 0.53 1.14 0.44 0.59 0.49 0.80 1.09 Boise/Ada 1.14 Local Sectors Utilities 0.50 0.33 1.03 0.00 1.02 0.45 0.00 0.49 Boise/Ada 1.03 Construction 2.09 0.58 1.39 0.66 1.66 1.35 1.19 1.34 Bozeman/Gallatin 2.09 Retail trade 1.31 0.87 1.05 0.93 1.31 1.10 1.28 1.08 Bozeman/Gallatin 1.31 Real estate and rental and leasing 1.30 0.94 0.95 0.76 1.04 1.24 1.00 0.57 Bozeman/Gallatin 1.30 Administrative and waste services 0.62 0.56 1.38 0.00 0.90 0.81 0.78 1.18 Boise/Ada 1.38 Educational services 0.72 0.79 0.53 0.61 0.62 0.53 0.47 0.66 Boulder/Boulder 0.79 Health care and social assistance 0.72 0.86 1.05 1.21 1.18 0.73 1.22 0.88 Missoula/Missoula 1.22 Arts, entertainment, and recreation 1.99 1.16 1.46 0.78 1.80 1.13 1.66 1.08 Bozeman/Gallatin 1.99 Accommodation and food services 1.47 0.94 1.02 1.05 1.42 1.21 1.28 0.85 Bozeman/Gallatin 1.47 Other services, except public administration 1.39 0.95 0.96 1.32 1.27 1.04 1.57 0.79 Missoula/Missoula 1.57 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016-QCEW.xlsx]T-LQ vs Peers Bozeman Economic Assessment | 33Economic & Planning Systems | Bridge Economic Development 195 APPENDIX: INDUSTRY DETAIL MANUFACTURING 3 Digit NAICS Industry Name Sector Total (Disclosable) % Total LQ vs. U.S.Avg. Ann. Wage Includes Photonics? Description Total Private Wage & Salary Jobs 50,672 Total Manufacturing Sector 3,598 7.1%0.70 339 Miscellaneous Manufacturing 532 1.0%2.16 $55,574 Medical equip, sporting goods, musical instr. 334 Computer and Electronic Product Manufacturing 402 0.8%0.90 $88,788 Y Computer, electronic, instrumentation, measuring/controlling, photonics 332 Fabricated Metal Product Manufacturing 391 0.8%0.67 $48,961 Forging, stamping, bending, forming, and machining 312 Beverage and Tobacco Product Manufacturing 367 0.7%3.16 $30,203 Breweries, distilleries, etc. 327 Nonmetallic Mineral Product Manufacturing 290 0.6%1.72 $63,779 Stone, tile, cement products 326 Plastics and Rubber Products Manufacturing 257 0.5%0.87 $43,929 Plastic containers, hardware, plumbing 311 Food Manufacturing 248 0.5%0.37 $36,480 Bakeries, coffee, tea, dairy products 336 Transportation Equipment Manufacturing 150 0.3%0.22 $58,928 Boats, trailers, vehicle parts 337 Furniture and Related Product Manufacturing 144 0.3%0.94 $44,262 Furniture, cabinetry 335 Electrical Equipment, Appliance, and Component Manufacturing 114 0.2%0.71 $59,485 Y Lighting, electrical, communications, appliances 323 Printing and Related Support Activities 99 0.2%0.62 $38,849 Y Printing, data imaging 314 Textile Product Mills 93 0.2%2.18 $32,668 Textile manufacturing 333 Machinery Manufacturing 88 0.2%0.20 $73,874 Y Optical instruments and lenses, photographic equipment, commercial laundry and dry-cleaning machinery, office machinery, automotive maintenance equipment (except mechanics' hand tools), and commercial-type cooking equipment 321 Wood Product Manufacturing 81 0.2%0.48 $49,465 Wood bldg. materials, manufactured structures 315 Apparel Manufacturing 5 0.0%0.13 $32,572 Apparel 316 Leather and Allied Product Manufacturing 4 0.0%0.39 $18,653 Leather products Source: Bureau of Labor Statistics; Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016 Industry Cluster Definitions (CH).xlsx]MFG_SORT Bozeman Economic Assessment | 34Economic & Planning Systems | Bridge Economic Development 196 APPENDIX: INDUSTRY DETAIL PROFESSIONAL & TECHNICAL SERVICES 4 Digit NAICS Industry Name Sector Total (Disclosable) % Total LQ vs. U.S.Avg. Ann. Wage Includes Photonics? Description Total Private Wage & Salary Jobs 50,672 Total Prof. & Tech. Svcs. Sector 4,828 9.5%1.20 5415 Computer Systems Design and Related Services 1,346 2.7%1.44 $141,037 Programming, IT 5413 Architectural, Engineering, and Related Services 1,094 2.2%1.72 $71,547 5416 Management, Scientific, and Technical Consulting Services 618 1.2%0.95 $71,652 Environmental, management, administrative, other scientific consulting 5412 Accounting, Tax Preparation, Bookkeeping, and Payroll Services 449 0.9%1.04 $53,752 5419 Other Professional, Scientific, and Technical Services 424 0.8%1.35 $40,502 Marketing, photography, veterinary, other 5417 Scientific Research and Development Services 337 0.7%1.04 $94,689 Y R&D in life and social sciences. 5411 Legal Services 327 0.6%0.68 $68,183 5418 Advertising, Public Relations, and Related Services 133 0.3%0.71 $60,349 5414 Specialized Design Services 100 0.2%1.78 $60,754 Y Specialized design except architectural, engineering, and computer systems design Source: Bureau of Labor Statistics; Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016 Industry Cluster Definitions (CH).xlsx]ProfTech-Sort Bozeman Economic Assessment | 35Economic & Planning Systems | Bridge Economic Development 197 APPENDIX: INDUSTRY DETAIL CONSTRUCTION 3 Digit NAICS Industry Name Sector Total (Disclosable) % Total LQ vs. U.S.Avg. Ann. Wage Description Total Private Wage & Salary Jobs 50,672 Total Construction Sector 6,401 12.6%2.09 237 Heavy and Civil Engineering Construction 659 1.3%1.50 $101,284 Roads, infrastructure 236 Construction of Buildings 1,837 3.6%2.72 $59,216 Residential and nonresidential buildings 238 Specialty Trade Contractors 3,906 7.7%2.01 $53,269 Concrete, site preparation, plumbing, painting, and electrical Source: Bureau of Labor Statistics; Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016 Industry Cluster Definitions (CH).xlsx]Construction-Sort Bozeman Economic Assessment | 36Economic & Planning Systems | Bridge Economic Development 198 APPENDIX: INDUSTRY DETAIL TOURISM, RETAIL, AND OUTDOOR RECREATION 3 Digit NAICS Industry Name Sector Total (Disclosable) % Total LQ vs. U.S.Avg. Annual Wage Description Total Private Wage & Salary Jobs 50,672 Retail 3,598 7.1%1.31 Retail stores Recreation 1,819 3.6%1.99 Recreation businesses including ski areas Accommodations & Food Services 8,190 16.2%1.47 Hotels and restaurants Cluster Total 13,607 26.9% Retail 445 Food and beverage stores 1,541 3.0%1.18 $31,786 444 Building material and garden supply stores 1,193 2.4%2.08 $45,429 452 General merchandise stores 1,107 2.2%0.89 $32,580 441 Motor vehicle and parts dealers 1,036 2.0%1.29 $60,870 453 Miscellaneous store retailers 784 1.5%2.52 $31,388 451 Sports, hobby, music instrument, book stores 674 1.3%3.37 $23,189 447 Gasoline stations 541 1.1%1.39 $25,669 442 Furniture and home furnishings stores 392 0.8%2.26 $49,206 448 Clothing and clothing accessories stores 341 0.7%0.83 $25,758 446 Health and personal care stores 250 0.5%0.61 $34,298 454 Nonstore retailers 221 0.4%0.89 $60,018 443 Electronics and appliance stores 110 0.2%0.59 $43,276 Recreation, Hotels, Restaurants 722 Food services and drinking places 5,054 10.0%1.23 $20,992 721 Accommodation 1,857 3.7%3.13 $33,408 713 Amusements, gambling, and recreation 1,216 2.4%2.27 $26,058 Includes ski areas 711 Performing arts and spectator sports 124 0.2%0.88 $36,767 712 Museums, historical sites, zoos, and parks 116 0.2%---$45,924 712 Museums, historical sites, zoos, and parks 116 0.2%---$45,924 Source: Bureau of Labor Statistics; Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016 Industry Cluster Definitions (CH).xlsx]TourRet_SORT Bozeman Economic Assessment | 37Economic & Planning Systems | Bridge Economic Development 199 APPENDIX: INDUSTRY DETAIL CREATIVE ARTS Industry 3 Digit NAICS NAICS Description Private Total Establish- ments % of Disclosable Total LQ vs. U.S.Avg. Ann. Wage Hourly on 2080 Hours Total Private Wage & Salary Jobs 50,672 100.00% Publishing 323 Printing and related support activities 99 9 0.20%0.62 $38,849 $18.68 Film/TV/Media 512 Motion picture and sound recording industries 73 70 0.14%0.58 $43,148 $20.74 5418 Advertising, pr, and related services 133 40 0.26%0.71 $60,349 $29.01 54192 Photographic services 24 32 0.05%1.60 $37,168 $17.87 Design 5419 Other professional and technical services 424 83 0.84%1.35 $40,502 $19.47 5414 Specialized design services 100 43 0.20%1.78 $60,754 $29.21 Performing Arts 711 Performing arts and spectator sports 124 46 0.24%0.88 $36,767 $17.68 7111 Performing arts companies 35 8 0.07%1.06 $18,147 $8.72 All other Performing arts and spectator sports 89 38 0.18%--------- Museums and Galleries 1 712 Museums, non-retail galleries, historical sites, and similar institutions 127 10 0.25%1.96 $49,504 $23.80 Total Creative Cluster 1,104 333 2.18%$41,241 $19.83 1 Museums and Galleries includes publicly owned facilities such as Museum of the Rockies housed at MSU which skews wages upward. Source: U.S. Bureau of Labor Statistics; Economic & Planning Systems Z:\Shared\Projects\DEN\223016-Bozeman MT Economic Development Strategy\Data\[223016 Industry Cluster Definitions (CH).xlsx]Creative Bozeman Economic Assessment | 38Economic & Planning Systems | Bridge Economic Development 200 Appendix B: Budget and Financial Policies The overall goal of the City's financial policies is to establish and maintain effective management of the City's financial resources. Formal policy statements and major objectives provide the foundation for achieving this goal. Accordingly, this section outlines the policies used in guiding the preparation and management of the City's overall budget and the major objectives to be accomplished. In addition, the rationale, which led to the establishment of the fiscal policy statements, is also identified. Budget Development & Administration 1.A comprehensive annual budget will be prepared for all funds expended by the City. State law provides that “Local government officials may not make a disbursement or an expenditure or incur an obligation in excess of the total appropriations for a fund.” (MCA 7-6-4005(1)) Inclusion of all funds in the budget enables the commission, the administration, and the public to consider all financial aspects of City government when preparing, modifying, and monitoring the budget, rather than deal with the City's finances on a "piece meal" basis. 2.The budget will be prepared in such a manner as to facilitate its understanding by citizens and elected officials. The budget presents a picture of the City government operations and intentions for the year to the citizens of Bozeman. Presenting a budget document that is understandable to the citizens furthers the goal of effectively communicating local government finance issues to both elected officials and the public. 3.Budgetary emphasis will focus on providing those basic municipal services which provide the maximum level of services, to the most citizens, in the most cost effective manner, with due consideration being given to all costs--economic, fiscal, and social. Beyond adherence to this basic philosophy, Montana’s Constitution states that taxes shall be levied for public purposes. The citizens of Bozeman should be assured that its government and elected officials are responsive to the basic needs of the citizens and that its government is operated in an economical and efficient manner for public purposes. 4.The budget will provide for adequate maintenance of capital, plant, and equipment and for their orderly replacement. All governments experience prosperous times as well as periods of economic decline. In periods of economic decline, proper maintenance and replacement of capital, plant, and equipment is generally postponed or eliminated as a first means of balancing the budget. Recognition of the need for adequate maintenance and replacement of capital, plant, and equipment, regardless of the economic conditions, will assist in maintaining the government's equipment and infrastructure in good operating condition. 5.The City will avoid budgetary practices that balance current expenditures at the expense of meeting future years' expenses. State law provides that "The final budget must be balanced so that appropriations do not exceed the projected beginning balance plus the estimated revenue of each fund for the fiscal year." (MCA 7-6-4030(2)) The City is committed to long-term financial planning and ensuring that the current budget does not expend funds that may be needed to avoid significant rate or assessment increases in future years. The City uses six-year financial models for major funds to ensure that revenues and expenditures balance throughout the years not just in the current fiscal year. 201   6. The City will give highest priority in the use of one-time revenues to the funding of capital assets or other non-recurring expenditures. Utilizing one-time revenues to fund on-going operational expenditures results in incurring annual expenditure obligations which could become unfunded in future years. Using one-time revenues to fund capital assets or other non-recurring expenditures is best practice to ensure that funding is maintained for annual expenditures.  7. The City will maintain a budgetary control system to help it adhere to the established budget. The budget passed by the Commission establishes the legal spending limits for the City in alignment with City Code section 2.06.150. A budgetary control system is essential in order to insure legal compliance with the City's budget.  8. The City will exercise budgetary control (maximum spending authority) through City Commission approval of appropriation authority for each appropriated budget unit. Exercising budgetary control for each appropriated budget unit satisfies requirements of State law and assures compliance with the City’s Code, Division 2, established for the budget. It also assists the commission in monitoring current year operations and acts as an early warning mechanism when departments deviate in any substantive way from the original budget.  9. Reports comparing actual revenues and expenditures to budgeted amounts will be prepared monthly. The City's budget is ineffective without a system to regularly monitor actual spending and revenue collections with those anticipated at the beginning of the year. Monthly reports comparing actual revenues and expenditures to budget amounts provide the mechanism for the Commission and the administration to regularly monitor compliance with the adopted budget and are a requirement of City Code section 2.06.170. Revenue Collection  1. The City will seek to maintain a diversified and stable revenue base. A City dependent upon a few volatile revenue sources is frequently forced to suddenly adjust tax rates or alter expenditure levels to coincide with revenue collections. Establishment of a diversified and stable revenue base, however, serves to protect the City from short-term fluctuations in any one major revenue source.  2. The City will estimate revenues in a realistic and conservative manner. Aggressive revenue estimates significantly increase the chances of budgetary shortfalls occurring during the year-- resulting in either deficit spending or required spending reductions. Realistic and conservative revenue estimates, on the other hand, will serve to minimize the adverse impact of revenue shortfalls and will also reduce the need for mid-year spending reductions.  3. The City will pursue an aggressive policy of collecting revenues. An aggressive policy of collecting revenues will help to ensure the City's revenue estimates are met, all taxpayers are treated fairly and consistently, and delinquencies are kept to a minimum.  4. The City will aggressively pursue opportunities for Federal or State grant funding. An aggressive policy of pursuing opportunities for federal or state grant funding provides citizens assurance that the City is striving to obtain all state and federal funds to which it is entitled, thereby reducing dependence on local taxpayers for the support of local public services.  5. User fees and charges will be used, as opposed to general taxes, when distinct beneficiary populations or interest groups can be identified. User fees and charges are preferable to general taxes because user charges can provide clear demand signals which assist in determining what services to offer, their quantity, and their quality. User charges are also more equitable, since only those who use the service must pay--thereby eliminating the subsidy provided by nonusers to users, which is inherent in general tax financing. 202 6. User fees will be collected only if it is cost-effective and administratively feasible to do so. User fees are often times costly to administer. Prior to establishing user fees, the costs to establish and administer the fees will be considered in order to provide assurance that the City's collection mechanisms are being operated in an efficient manner. Expenditures and Payments  1. On-going expenditures will be limited to levels which can be supported by current revenues. Utilization of reserves to fund on-going expenditures will produce a balanced budget; however, this practice will eventually cause severe financial problems. Once reserve levels are depleted, the City would face elimination of on-going costs in order to balance the budget. Therefore, the funding of on-going expenditures will be limited to current revenues.  2. Minor capital projects or recurring capital projects, which primarily benefit current residents, will be financed from current revenues. Minor capital projects or recurring capital projects represent relatively small costs of an on-going nature, and therefore, should be financed with current revenues rather than utilizing debt financing. This policy also reflects the view that those who benefit from a capital project should pay for the project.  4. Major capital projects, which benefit future residents, will be financed with other financing sources (e.g. debt financing). Major capital projects represent large expenditures of a non-recurring nature which primarily benefit future residents. Debt financing provides a means of generating sufficient funds to pay for the costs of major projects. Debt financing also enables the costs of the project to be supported by those who benefit from the project, since debt service payments will be funded through charges to future residents.  5. Construction projects and capital purchases of $25,000 or more will be included in the Capital Improvement Plan (CIP); minor capital outlays of less than $25,000 will be included in the regular operating budget. The Capital Improvement Plan (CIP) differentiates the financing of high cost long-lived physical improvements from low cost "consumable" equipment items contained in the operating budget. CIP items may be funded through debt financing or current revenues while operating budget items are annual or routine in nature and should only be financed from current revenues. 6. Minor and major capital replacement and construction projects must be adopted in compliance with City Code section 5.07 where the City’s capital program is established. https://library.municode.com/mt/bozeman/codes/code_of_ordinances 7. Spending Policy: The City will spend its resources in the following order. Resources will be categorized according to Generally Accepted Accounting Principles (GAAP) for state and local governments, with the following general definitions. More detail around each resource category is included in the Reserves and Fund Balances section of this policy. •Restricted - Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation. •Committed - Amounts constrained to specific purposes by the City Commission; to be reported as committed, amounts cannot be used for any other purpose unless the City Commission takes action to remove or change the constraint. •Assigned - Amounts the City intends to use for a specific purpose; intent can be expressed by the Commission or by an official or body to which the Commission delegates the authority. The City Commission delegates this authority to the City Manager. 203 •Unassigned - Amounts that are available for any purpose; these amounts are reported only in the General Fund. When both restricted and unrestricted resources are available, spending will occur in the following order, for the identified fund: Fund Type Order of Spending General Fund 1.Restricted 2.Committed 3.Assigned 4.Unassigned The City Commission and the City Manager, individually, have the authority to express assignments in the General Fund. Special Revenue Funds 1.Restricted 2.Committed 3.AssignedThe City Commission and the City Manager, individually, have the authority to express assignments in Special Revenue Funds. Debt Service Funds 1.Assigned 2.Committed 3.Restricted The City Commission and the City Manager, individually, have the authority to express assignments in Debt Service Funds. Capital Projects Funds 1.Restricted 2.Committed 3.Assigned The City Commission and the City Manager, individually, have the authority to express assignments in Capital Project Funds. Debt Administration  1. The City will limit long-term debt to capital improvements, which cannot be financed from current revenues. Incurring long-term debt serves to obligate future taxpayers. Therefore, conscientious use of long-term debt will provide assurance that future residents will be able service the debt obligations left by former residents.  2. The City will repay borrowed funds, used for capital projects, within a period not to exceed the expected useful life of the project. This policy reflects the view that those residents who benefit from a project should pay for the project. Adherence to this policy will also help prevent the government from over-extending itself with regard to the incurrence of future debt.  3. The City will not use long-term debt for financing current operations. This policy reflects the view that those residents who benefit from a service should pay for the service. Utilization of long-term debt to support current operations would result in future residents supporting services provided to current residents.  4. The City of Bozeman will adhere to a policy of full public disclosure with regard to the issuance of debt. Full public disclosure with regard to the issuance of debt provides assurance that the incurrence of debt, for which the public is responsible, is based upon a genuine need and is consistent with underwriters’ guidelines. 204  5. The City of Bozeman will adhere to state of Montana General Fund limitations for municipalities. For the General Fund, Montana Code Annotated section 7-7-4101 allows the City to issue an obligation so long as 10% of the General Fund budget in each of the two immediately preceding fiscal years is not exceeded, debt services in the current or any future fiscal year do not exceed 2% of revenue deposited in each of the two immediately preceding fiscal years in the Fund, and the term of an obligation cannot exceed 20 years. Reserves and Fund Balances  1. Reserves and Fund Balances will be properly designated into the following categories: •Nonspendable fund balance -- Amounts that are not in a spendable form (such as inventory) or are required to be maintained intact (such as the corpus of an endowment fund). •Restricted fund balance -- Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation. •Committed fund balance -- Amounts constrained to specific purposes by the City Commission; to be reported as committed, amounts cannot be used for any other purpose unless the City Commission takes action to remove or change the constraint. •Assigned fund balance -- Amounts the City intends to use for a specific purpose; intent can be expressed by the Commission or by an official or body to which the Commission delegates the authority. •Unassigned fund balance -- Amounts that are available for any purpose; these amounts are reported only in the General Fund.  2. A minimum level of General Fund undesignated reserve equal to 16.67% of annual revenues will be maintained by the City. This reserve is committed to be used for: cash flow purposes, accrued employee payroll benefits which are not shown as a liability, unanticipated equipment acquisition and replacement, and to enable the City to meet unexpected expenditure demands or revenue shortfalls. Property taxes represent the City's primary source of General Fund revenue. Property taxes are collected in November and May of each fiscal year. Since the City's fiscal year begins on July 1st, the City must maintain an adequate cash balance in order to meet its expenditure obligations between July 1st and the commencement of the collection of property taxes in November. The City’s Municipal Code section 2.06.108 requires the City Manager to recommend a budget that results in a year-end General Fund unreserved fund balance of no less than 16.67% of estimated General Fund revenues. The intention of reserve as adopted by the City Commission is to ensure availability of funds and at the same time compliance with the City’s Code. At no time may a budget be adopted or amended in a manner that results in a year-end General Fund unreserved balance of less than five percent of estimated General Fund reserves. This limit does not apply in case of an emergency, pursuant to state law. Accrued employee payroll benefits represent a bona fide obligation of the City. The City will maintain sufficient reserves to meet its annual expenditure obligations. The City is subject to revenue shortfalls and unexpected expenditure demands during the fiscal year. An undesignated General Fund reserve will be maintained to be able to offset these revenue shortfalls or meet unexpected demands occurring during the year, without suddenly adjusting tax rates or reducing expenditures. Financial Reporting & Accounting  1. The City will manage and account for its financial activity in accordance with Generally Accepted Accounting Principles (GAAP), as set forth by the Governmental Accounting Standards Board (GASB). GASB is recognized as the authority with respect to governmental accounting. Managing the City's finances in accordance with GAAP and in accordance with the rules set forth by GASB provides Bozeman citizens assurance that their public funds are being accounted for in a proper manner. 205  2. The City will maintain 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 will be 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. Adherence to this policy will enable the City to prepare its financial statements in accordance with GAAP as set forth by the GASB.  3. The City of Bozeman will prepare an Annual Comprehensive Financial Report (ACFR) in conformance with Generally Accepted Accounting Principles (GAAP). The report will be made available to the general public. The ACFR shall be prepared in accordance with the standards established by the GFOA for the Certificate of Achievement for Excellence in Financial Reporting Program The Certificate of Achievement represents a significant accomplishment for a government and its financial management. The program encourages governments to prepare and publish an easily readable and understandable annual comprehensive financial report covering all funds and financial transactions of the government during the year. The ACFR provides users with a wide variety of information useful in evaluating the financial condition of a government. The program also encourages continued improvement in the City's financial reporting practices.  4. The City will ensure the conduct of timely, effective, and annual audit coverage of all financial records in compliance the local, state, and federal law. Audits of the City's financial records provide the public assurance that its funds are being expended in accordance with Local, State, and Federal law and in accordance with GAAP. Audits also provide management and the Commission with suggestions for improvement in its financial operations from independent experts in the accounting field.  5. The City of Bozeman will maintain a policy of full and open public disclosure of all financial activity. Full and open public disclosure of all financial activity provides the public with assurance that its elected officials and administrators communicate fully all financial matters affecting the public.  6. The modified accrual basis of accounting and budgeting is used for the governmental funds. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the related liability is incurred. Employee compensated absences and principal and interest on long-term debt expenditures are recorded when due in the current period. The accrual basis of accounting is used for proprietary funds. Under this method, revenues are recorded when earned and expenses are recorded when the related liability is incurred. For budget preparation and presentation, the proprietary funds’ expenses are converted to expenditures and follow the same budget format as the government fund types. Capital outlays in the enterprise funds are presented as expenses for budget basis, but are recorded as assets along with associated depreciation expense on the GAAP basis. Debt service principal payments in the enterprise funds are accounted for as expenses for budget purposes, but are reported as reduction of long-term debt liability on the GAAP basis. Recording capital outlays as expenditures and principal payments on long-term debt for budget purposes, presents a clearer picture of the City’s financial operations, is easier to administer for cash flow purposes, and is easier for the lay person to understand. 206 Appendix C: Long Range Financial Planning Six-year Financial Plans: Each year, the City prepares and maintains financial plans for the current year and at least the ensuing five years for the following funds: •Street Maintenance Fund •Arterial & Collector Fund •Tree Maintenance Fund •Parks & Trails District Fund •Water Fund •Wastewater Fund •Stormwater Fund These plans are developed as a part of the annual budget process and are based on current and future estimates of staffing levels, estimated increases in operating costs such as supplies, fuel, chemicals, and capital plans. The plans project revenue requirements, expenditure levels, and estimated reserve levels for each of the five years. Expenditures in all long-term financial models may differ from FY24 Adopted appropriations because Montana Local Budget Law requires the City Commission to appropriate funds prior to the expenditure being committed. Long range financial plans are on a cash basis and therefore expenditures are estimated based on when they will be paid rather than committed. Special Revenue Funds Street Maintenance District: The Street Maintenance long-term plan continues to show increases in assessments to meet the needs of the capital plan and growth. Assessment increases over the financial plan are estimated to be between 5% and 8% per year. Assessment increases have been between 5% and 17% over the last 5 years. The cost of the Street Maintenance assessment on the typical homeowner in Bozeman is estimated to be $284.31 annually in FY24. Assessment increases were adopted by City Commission on August 22, 2023. 207 Arterial & Collector District (A&CD) Fund The long-term plan for the Arterial & Collector District Fund continues to show increases in assessments to meet the needs of the capital plan and growth. Assessment increases over the financial plan are estimated to be approximately 8% per year. The fund balance is currently projected to go negative in FY26 due to significant capital projects, but the fund will be balanced by FY27. The cost of the A&CD assessment on the typical homeowner in Bozeman is estimated to be $60.08 annually for FY24. Assessment increases were adopted by City Commission on August 22, 2023. Parks & Trails District Fund Parks & Trails District Fund plan as approved by the Commission is a five-year ramp up to Silver level of service. The current plan includes 6-8% increases annually over the next five years to complete the adopted CIP. The cost of the Parks & Trails District assessment on the typical homeowner is estimated to be $208.67 annually for FY24. Assessment increases were adopted by City Commission on August 22, 2023. 208 Tree Maintenance District (Forestry) Fund The long-range plan for the Tree Maintenance District includes 4% increases annually over the next five years to complete the adopted CIP. The cost of the assessment on the typical homeowner in Bozeman is estimated to be $30.53 annually in FY24. Assessment increases were adopted by City Commission on August 22, 2023. Enterprise Funds Water Fund Residential single family water rates, which make up approximately 50% of Water Fund rate revenues, have been held flat since FY19. The next largest portion of water rates is multi-family, which make up approximately 25% of rate revenues and have been held to modest 1% rate increases over the same period of time. Rate increases adopted were consistent with the rate study presented to the City Commission in January 2019, and updated in FY21. Meanwhile, the cost of providing water services has continued to increase each year compared to the FY21 projections included in the study. Updated financial models are showing the need for significant rate increases to address the cost of the adopted CIP and operations over the next five years. Revenue increases of 12% are needed for FY24 and FY25, and rate increases in future years are anticipated to be approximately 8%. A rate study is planned to be performed prior to the FY26 budget process to inform future rates by customer classes, and ensure proper revenue coverage and reserve amounts, including a drought reserve. Water rate increases were adopted by City Commission on August 22, 2023. 209 Wastewater Fund Residential single family wastewater rates, which make up approximately 25% of Wastewater Fund rate revenues, have been held flat since FY19. The next largest portion of wastewater rates is multi-family, which make up approximately 25% of rate revenues and have been held to modest 2% rate increases over the same period of time. Rate increases adopted were consistent with the rate study presented to the City Commission in January 2019, and updated in FY21. Meanwhile, the cost of providing wastewater services has continued to increase each year compared to the FY21 projections included in the study. Updated financial models are showing the need for significant rate increases to address the cost of the adopted CIP and operations over the next five years. A revenue increase of 12% is adopted for FY24, and rate increases in future years are anticipated to be approximately 3%. A rate study is planned to be performed to inform future rates by customer classes and ensure proper revenue coverage and reserve amounts. Wastewater rate increases were adopted by City Commission on August 22, 2023. Stormwater Fund The long-term plan for the Stormwater Utility includes increases in assessments to meet the needs of the capital plan and growth. Assessment increases over the financial plan are estimated to be approximately 8% per year. The annual cost for Stormwater services for the typical homeowner in Bozeman is estimated to be $54.30 annually in FY24. Stormwater rate increases were adopted by City Commission on August 22, 2023. 210 Appendix D: Glossary of Key Terms ACCRUAL BASIS - A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. APPROPRIATION- Legal authorization granted by City Commission to make expenditures and incur obligations. ASSESSED VALUATION - A value that is established for real and personal property for use as a basis for levying property taxes. (For the City of Bozeman, the Montana Department of Revenue establishes Property values.) ASSET - Resources owned or held by a government having monetary value. BALANCED BUDGET - Refers to a budget where appropriations do not exceed the projected beginning balance plus the estimated revenue of each fund for the fiscal year. BOND - A written promise to pay a sum of money on a specific date at a specified interest rate. The most common types of bonds are general obligation, revenue, and special assessment district bonds. These are most frequently used for construction of large capital projects such as buildings, streets, and water and waste water lines. BOND RATING - An evaluation of a bond issuer’s credit quality and perceived ability to pay the principal and interest on time and in full. BOND REFINANCING - The payoff and re-issuance of bonds, to obtain better interest rates and/or bond conditions. BUDGET - Plan of financial operation, embodying an estimate of proposed expenditures for a given period (City of Bozeman’s budget is for a fiscal year July 1—June 30) and the proposed means of financing them. Upon approval by Commission, the appropriation ordinance is the legal basis for incurring expenditures. BUDGET AMENDMENT- A procedure to revise the appropriation ordinance through action by the City Commission. BUDGET CALENDAR - The schedule of key dates or milestones which the City follows in the preparation, adoption, and administration of the budget. BUDGET MESSAGE - The opening section of the budget which provides the City Commission and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and recommendations regarding the financial policy for the upcoming period. BUDGETARY BASIS - This refers to the form of accounting utilized throughout the budget process. These generally take one of three forms: GAAP, Cash, and Modified Accrual. BUDGETARY CONTROL - The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and available revenues. CAPITAL BUDGET - The Capital Budget comprises the capital improvements that are funded in the current budget year. CAPITAL EXPENDITURE - The item has a unit cost over $5,000, benefits future periods, has a normal useful life of 1 year or more, has an identity that does not change with use (i.e. retains its identity throughout its useful life), and is identifiable and can be accounted for separately. Improvements to existing assets must add life and value to be included as a capital item. CAPITAL IMPROVEMENTS - Expenditures related to the acquisition, expansion, or rehabilitation of an element of the government’s physical plant; sometimes referred to as infrastructure. CAPITAL IMPROVEMENTS PROGRAM (CIP) - A plan for capital expenditures needed to maintain, replace, and expand the City’s heavy equipment and public infrastructure (for example streets, parks, buildings, etc.) The CIP projects these capital equipment and infrastructure needs for a set number of years (5 years for City of Bozeman’s Program) and is updated annually to reflect the latest priorities, cost estimates and changing financial estimates or 211 strategies. The first year of the adopted CIP becomes the basis of the City’s capital budget. Construction projects and capital purchases of $25,000 or more will be included in the Capital Improvement Program. Minor and major capital replacement and construction projects must be adopted in compliance with City Code section 5.07 where the City’s Capital Program is established. CAPITAL OUTLAY - Items that cost more than $5,000 and have a useful life of one year or more. For budgeting purposes, capital outlays of less than $25,000 will be included in the regular operating budget, but will still be included in the CIP. CAPITAL PROJECT - New facility, technology system, land or equipment acquisition, or improvements to existing facilities beyond routine maintenance. Capital projects are included in the CIP and typically become fixed assets. Projects are categorized as either minor or major: MINOR CAPITAL PROJECTS or reoccurring capital projects primarily benefit current residents. MAJOR CAPITAL PROJECTS benefit future, as well as current residents and can represent large expenditures of a non-recurring nature which primarily benefit future residents. CASH BASIS - A basis of accounting in which transactions are recognized only when cash is increased or decreased. CDBG - Community Development Block Grant, a federally funded grant program for specific national objectives related to housing, infrastructure, and economic development. CONTINGENCY - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. CONTRACTED SERVICES - Expenditures for services performed by firms, individuals, not other city departments. DEBT LIMIT - The maximum amount of gross or net debt which is legally permitted. DEBT RATIO - Ratios which provide a method of assessing debt load and the ability to repay debt which plays a part in the determination of credit ratings. They are also used to evaluate the City’s debt position over time and against its own standards and policies. DEBT SERVICE - Payment of principal and interest related to long term loans or bonds. DEBT SERVICE FUND - A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. DEBT SERVICE FUND REQUIREMENT - The amounts of revenue which must be provided for a Debt Service Fund so that all principal and interest payments can be made in full and on schedule. DEFICIT - The excess of an entity’s liabilities over its assets or the excess of expenditures over revenues during a single accounting period. DEPARTMENT- A major administrative division of the City which indicates overall management responsibility for an operation or a group of related operations within a functional area. DEPRECIATION - Expiration in the service life of fixed assets, attributable to wear and tear, deterioration, action of physical elements, inadequacy, and obsolescence. DISTINGUISHED BUDGET PRESENTATION AWARD - A voluntary awards program administered by the Government Finance Officers Association to encourage governments to prepare effective budget documents. DIVISION - A group of homogenous cost centers within a department. ENTERPRISE FUND - A fund established to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. 212 ESTIMATE - The most recent prediction of current year revenue and expenditures. Estimates are based upon many months of actual expenditure and revenue information and are prepared to consider the impact of unanticipated costs or other economic changes ESTIMATED REVENUE - The amount of projected revenue to be collected during the fiscal year. EXPENDITURES - Decreases in net financial resources. FIDUCIARY FUND - A Fiduciary Fund is used in governmental accounting to report on assets held in trust for others. FISCAL YEAR - The time period signifying the beginning and ending period for recording financial transactions. The City's fiscal year begins on July 1 and ends on June 30 of each year. FIXED ASSETS - Assets of long-term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. FTE - See Full Time Equivalent. FULL FAITH AND CREDIT- A pledge of a government’s taxing power to repay debt obligations. FULL TIME EQUIVALENT Also referred to as FTE. - The yearly personnel hours worked by a position divided by the total available work hours for a full year (2080). FUND - An accounting entity with a self-balancing set of accounts which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. FUND BALANCE - The excess of assets over liabilities. The beginning fund balance is the residual funds brought forward from the previous fiscal year. Beginning in the FY23 Budget, unassigned Fund Balance and undesignated reserves are specifically called out. NON-SPENDABLE FUND BALANCE - Amounts that are not in a spendable form (such as inventory) or are required to be maintained intact (such as the corpus of an endowment fund). RESTRICTED FUND BALANCE - Amounts constrained to specific purposes by their providers (such as granters, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation. COMMITTED FUND BALANCE - Amounts constrained to specific purposes by a government itself using its highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint. ASSIGNED FUND BALANCE - Amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. UNASSIGNED FUND BALANCE - Amounts that are available for any purpose; these amounts are reported only in the General Fund. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) - A collection of commonly followed accounting rules and standards for financial reporting. GENERAL FUND - The fund used to account for all of the City’s financial resources except those required to be accounted for in another fund. GENERAL OBLIGATION BONDS (G.O. Bonds) - Bonds for the payment of which the full faith and credit of the issuing government are pledged. These bonds usually require voter approval and finance a variety of public projects such as roads, buildings, parks and improvements. GOAL - A statement of broad direction, purpose or intent based on the needs of the community. 213 GOVERNMENTAL FUNDS - Funds generally used to account for tax-supported activities. Governmental funds include: general, special revenue, debt service, capital projects, and permanent funds. GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) - Represents public finance officials through the United States and Canada who publish best practices in local government finance. GRANT - A contribution by one government unit or funding source to another. The contribution is usually made to aid in the support of a specified function (e.g. public safety or drug enforcement,) but is sometimes for general purposes. IMPROVEMENT DISTRICT - Special assessment districts formed by property owners who desire and are willing to pay for mutually enjoyed improvements such as lighting or street maintenance. INFRASTRUCTURE - Facilities that support the daily life and growth of the city, for example, streets, public buildings, wastewater treatment, parks. INTER-GOVERNMENT REVENUE - Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. INTERNAL SERVICE FUND - A fund used to account for the financing of goods or services provided by one department or agency to other departments on a cost-reimbursement basis. LEASE-PURCHASE AGREEMENT - Contractual agreements, which are termed “leases”, but which in substance, amount to purchase contracts for equipment and machinery. LEVY - (Verb) To impose taxes, special assessments, or service charges for the support of governmental activities. (Noun) The total amount of taxes, special assessments, or service charges imposed by a government. LINE-ITEM BUDGET - A budget that lists each expenditure category (salary, materials, telephone service, travel, etc.) separately, along with the dollar amount budgeted for each specific category. LONG-TERM DEBT - Debt with a maturity of more than one year after the date of issuance. MANDATE - Legislation passed by the state or federal government requiring action or provision of services and/or programs by the City. Examples include the Americans with Disabilities Act, which requires such actions as physical facility improvements and provision of specialized equipment for public recreation and transportation. MILL LEVY - Rate applied to Assessed Valuation to determine property taxes. A mill is 1/10th of a penny or $1.00 of tax for each $1,000 of assessed valuation. In Montana, there are three categories of Mills: NON-VOTED (FLOATING) MILL - Annual mills capped by statewide law based in certified taxable values and inflation. PERMISSIVE MILL - Annual mills allowed by Montana state law to be levied for specific purposes to raise needed funds (Permissive medical levy and some school levies, for example) VOTED DOLLAR AMOUNT OR MILL - Taxpayer approved specific mills or mills calculated to meet voter approved specific dollars for activities OBJECT - As used in expenditure classification, this term applies to the article purchased or the service obtained (as distinguished from the results obtained from expenditures). Examples are personnel services, contracted services, and supplies and materials. OBJECTIVE - Desired outcome-oriented accomplishments that can be measured and achieved within a given time frame, and advances the activity or organization toward a corresponding goal. OPERATING BUDGET - The portion of the budget pertaining to daily operations that provides basic governmental services. The operating budget contains appropriations for such expenditures as personnel, supplies, utilities, materials, and services. ORDINANCE - A formal legislative enactment by the City Commission. If it is not in conflict with any higher form of law, such as state statute or constitutional provision, it has the full force and effect of law within the boundaries of the City. 214 OUTSTANDING BONDS - Bonds not yet retired through principal payment. OVERLAPPING DEBT - The City’s proportionate share of the debt of other local governmental units, which either overlap it or underlie it. The debt is generally apportioned based on relative assessed value PAYMENT IN LIEU OF TAXES - Also referred to as PILT. Payments made in lieu of taxes from another government or entity. PERFORMANCE BUDGET - A budget that focuses on departmental goals and objectives rather than line items, programs, or funds. Workload and unit cost data are collected in order to assess effectiveness and efficiency of services. PERSONNEL SERVICES - Items of expenditures in the operating budget for salaries and wages paid for services performed by City employees, as well as the fringe benefit costs. PROPERTY TAX - A levy upon each $100 of assessed valuation of real and personal property within the City of Bozeman. PROPRIETARY FUND- Funds that focus on the determination of operating income, changes in net position (or cost recovery) financial position, and cash flows. Proprietary funds include enterprise and internal service funds. RESOLUTION- A special or temporary order of a legislative body (City Commission) requiring less legal formality than an ordinance or statute. RESERVE (UNDESIGNATED) - Funds to be used for undesignated, unexpected expenses. Beginning in the FY23 budget, unassigned fund balance and undesignated reserves are specifically called out. RESOURCES - Total amounts available for appropriation including estimated revenues, fund transfers, and beginning fund balances. REVENUE - Funds that the government receives as income. It includes items such as tax payments, fees for specific services, receipts from other governments, fines, forfeitures, grants, shared revenues and interest income. REVENUE BONDS - Bonds sold for constructing a project that will produce revenue for the government. That revenue is pledged to pay the principal and interest of the bond. RISK MANAGEMENT - An organized attempt to protect a government’s assets against accidental loss in the most economical method. SPECIAL IMPROVEMENT DISTRICT (SID) - An area defined and designated for improvements, often financed with bond proceeds that specifically benefit the property owners within the area of the district. Debt is repaid through annual assessments to property owners. SPECIAL REVENUE FUND - A fund used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or of major capital projects) that are legally restricted to expenditure for specified purposes. STATE SHARED REVENUE - Revenues levied and collected by the state but shared with local governments as determined by state government. Entitlement funds received by the City form the state of Montana is the largest State Shared Revenue. TAXES - Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not refer to specific charges made against particular property for current or permanent benefits, such as special assessments. TIF- Tax Increment Financing. A method of using incremental increases in property tax values to fund the improvements or efforts of a designated area. TRANSFERS IN/OUT - Amounts transferred from one fund to another to assist in financing the services from the recipient fund. UNDESIGNATED RESERVE - The portion of a fund’s balance that is set aside for non-specific purposes to address unforeseen expenses within the budget year and is available for general appropriation. 215 UNRESERVED FUND BALANCE - The portion of a fund’s balance that is not restricted for a specific purpose and is available for general appropriation. USER CHARGES OR FEES - The payment of a fee for direct receipt of a public service by the party benefiting from the service. WORKING CAPITAL - The different between current assets and current liabilities. WORKLOAD INDICATOR - A unit of work to be done (e.g. number of permit applications received for the number of burglaries to be investigated.) WRF - Water Reclamation Facility; commonly referred to in the past as a Wastewater Treatment Plant. 216 Appendix E: City Commission Adoptions 217 RESOLUTION 5486 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING FUNDS FOR VARIOUS BUDGET UNITS, AND FURTHER ESTIMATING REVENUE NECESSARY TO OPERATE AND MAINTAIN SERVICES OF MUNICIPAL GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 2024. WHEREAS, the City Commission did, on the 6th day of June, 2023, receive the City Manager’s Budget Recommendations for Fiscal Year 2023-2024 (FY24); and WHEREAS, the City Commission did, on June 13th and June 27th hold Budget Work Sessions that were open to the public to discuss the details of the Recommended Budget and make changes to the same; and WHEREAS, the City Commission did, on the 11th day of July, 2023, after due and proper legal notice, conduct a public hearing on the proposed municipal budget. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows: Section 1 The City Commission of the City of Bozeman, Montana, does hereby authorize and appropriate expenditures of governmental fund types (general fund, special revenues funds, debt service funds and capital project funds) and expenses for proprietary fund types (enterprise funds and internal service funds) and fiduciary fund types (permanent funds) for budget units and purposes set forth below, in the amounts designated herein, as follows. The City Commission further authorizes and re-appropriates the unexpended balance of Capital Improvement DocuSign Envelope ID: 42E23EA0-1CDC-4B63-B91B-7260A2A01114 Resolution 5486, Appropriating Funds for Fiscal Year ending June 30, 2024 2 Program & repair and equipment items as approved by the City Manager which were previously budgeted and have not been completed. Budget Unit Appropriations General Fund 55,707,000$ Special Revenue Funds 72,303,400 Debt Service Funds 5,169,900 Construction Funds 116,367,700 Enterprise Funds 52,270,300 Internal Service Funds 16,221,900 Permanent Funds - Grand Total - Appropriations 318,040,200$ Section 2 The City Commission of the City of Bozeman, Montana does hereby estimate revenues for the various funds, as follows: Budget Unit Estimated Revenues General Fund 53,523,200$ Special Revenue Funds 58,617,000 Debt Service Funds 5,532,200 Construction Funds 115,711,700 Enterprise Funds 56,591,900 Internal Service Funds 21,188,600 Permanent Funds 86,700 Grand Total - Estimated Revenues 311,251,300$ DocuSign Envelope ID: 42E23EA0-1CDC-4B63-B91B-7260A2A01114 Resolution 5486, Appropriating Funds for Fiscal Year ending June 30, 2024 3 Section 3 That budget information contained in the "City Manager's Recommended Budget for Fiscal Year 2023-2024" document pertaining to Policy Direction, Fiscal Policy, and the specific information concerning budgeting for each fund, as may be subsequently amended prior to final adoption of the budget, are hereby incorporated into the document entitled "Approved Budget for Fiscal Year 2023-2024" and are hereby adopted as reference. Section 4 Annual appropriations and transfer out for various departments for Fiscal Year 2023-2024 will be controlled and monitored for budgetary compliance at the budget unit level. Section 5 Pursuant to Sections 7-6-4006 and 7-6-4012, M.C.A., the City Commission hereby delegates appropriation and budget amendment authority to the City Manager for the expenditures from the following funds: debt service funds; fee-based budgets; trust funds; federal, state and private grants accepted and approved by the City Commission; special assessments; monies borrowed during the year; proceeds from sale of land; and funds for gifts or donations. Section 6 Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect as of July 1, 2023. Section 7 That upon this resolution becoming effective, as provided in Section 6 above, all resolutions and parts thereof in conflict herewith are hereby repealed. Section 8 That should it be found by any court of competent jurisdiction that any section, clause, portion, sentence, word, or phrase of this resolution is deemed to be contrary to any existing law or regulations, that in this instance, it is the intent of the City Commission of the City of Bozeman, Montana, that all other portions, sections, words, clauses, phrases, or paragraphs of this document shall remain in full force and effect. DocuSign Envelope ID: 42E23EA0-1CDC-4B63-B91B-7260A2A01114 Resolution 5486, Appropriating Funds for Fiscal Year ending June 30, 2024 Page 4 of 4 PASSED, APPROVED, AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 11th day of July, 2023. _______________________________________ Cynthia L. Andrus Mayor ATTEST: _____________________________________ Mike Maas City Clerk APPROVED AS TO FORM: ________________________________________ GREG SULLIVAN City Attorney DocuSign Envelope ID: 42E23EA0-1CDC-4B63-B91B-7260A2A01114 1. 2023 2. 2023 3. 2023 4. 2023 5. 2023 6. TIF Districts Total Incremental Value Date I. Value Included in "newly taxable" property II. Total value exclusive of "newly taxable" property Note SOUTH BOZEMAN TECHN 98,650 417 98,233 POLE YARD URD 2,266,003 1,137,056 1,128,947 BOZEMAN MIDTOWN UR 8,905,551 3,507,723 5,397,828 NORTH PARK URBAN REN 329,639 244,332 85,307 1,328,695 13,789,647 NORTHEAST URBAN REN 1,805,712 423,054 1,382,658 For Information Purposes Only 2023 taxable value of centrally assessed property having a market value of $1 million or more, which has transferred to a different ownership in compliance with 15-10-202(2), MCA. -$ -$ Special district resolutions must be delivered to the department by the first Thursday after the first Tuesday in September, 09/07/2023, or within 30 calendar days after the date on this form 7-11-1025(8), MCA. The county clerk and recorder must provide mill levies for each taxing jurisdiction to the department by the second Monday in September, 09/11/2023, or within 30 calendar days after the date on this form 15-10- 305(1)(a), MCA. 21,882,620$ Preparer Terri Smith 8/7/2023 1Market value does not include class 1 and class 2 value 2Taxable value is calculated after abatements have been applied 3This value is the taxable value less total incremental value of all tax increment financing districts 4The taxable value of class 1 and class 2 is included in the taxable value totals BOZEMAN DOWNTOWN 15,118,342 Taxable Value less Incremental Taxable Value3……………………………………………247,105,759$ Taxable Value of Net and Gross Proceeds4 -$ (Class 1 and Class 2)………………………………………………………………………………… Tax Increment District Name Current Taxable Value2 Base Taxable Value Incremental Value Total Market Value1………………………………………………………………………………………17,730,663,050$ Total Taxable Value2………………………………………………………………………………………268,988,379$ Taxable Value of Newly Taxable Property……………………………………………………13,462,518$ 2023 Certified Taxable Valuation Information (15-10-202, MCA) Gallatin County CITY OF BOZEMAN Certified values are now available online at property.mt.gov/cov MONTANA Form AB-72T Rev. 6-23 1. 2023 2. 2023 3. 2023 4. 2023 5. 2023 6. TIF Districts Total Incremental Value Date I. Value Included in "newly taxable" property II. Total value exclusive of "newly taxable" property Note SOUTH BOZEMAN TECHN 98,650 417 98,233 POLE YARD URD 2,266,003 1,137,056 1,128,947 BOZEMAN MIDTOWN UR 8,905,551 3,507,723 5,397,828 NORTH PARK URBAN REN 329,639 244,332 85,307 1,328,695 13,789,647 NORTHEAST URBAN REN 1,805,712 423,054 1,382,658 For Information Purposes Only 2023 taxable value of centrally assessed property having a market value of $1 million or more, which has transferred to a different ownership in compliance with 15-10-202(2), MCA. -$ -$ Special district resolutions must be delivered to the department by the first Thursday after the first Tuesday in September, 09/07/2023, or within 30 calendar days after the date on this form 7-11-1025(8), MCA. The county clerk and recorder must provide mill levies for each taxing jurisdiction to the department by the second Monday in September, 09/11/2023, or within 30 calendar days after the date on this form 15-10- 305(1)(a), MCA. 21,882,620$ Preparer Terri Smith 8/7/2023 1Market value does not include class 1 and class 2 value 2Taxable value is calculated after abatements have been applied 3This value is the taxable value less total incremental value of all tax increment financing districts 4The taxable value of class 1 and class 2 is included in the taxable value totals BOZEMAN DOWNTOWN 15,118,342 Taxable Value less Incremental Taxable Value3……………………………………………247,105,759$ Taxable Value of Net and Gross Proceeds4 -$ (Class 1 and Class 2)………………………………………………………………………………… Tax Increment District Name Current Taxable Value2 Base Taxable Value Incremental Value Total Market Value1………………………………………………………………………………………17,730,663,050$ Total Taxable Value2………………………………………………………………………………………268,988,379$ Taxable Value of Newly Taxable Property……………………………………………………13,462,518$ 2023 Certified Taxable Valuation Information (15-10-202, MCA) Gallatin County BOZEMAN (CITY) PLANNING DISTRICT Certified values are now available online at property.mt.gov/cov MONTANA Form AB-72T Rev. 6-23 FISCAL YEAR ENTITY-WIDE TAXABLE VALUATION %INCREASE (DECREASE) FROM PREVIOUS YEAR TOTAL CURRENT YEAR AUTHORIZED MILL LEVY (Includes Prior Year Carry Forward Mills) CURRENT YEAR ACTUAL MILL LEVY CARRY FORWARD MILLS AVAILABLE (May be levied in a subsequent year) FY's 2012-2013 through 2016-2017 enter number of mills from prior year budget-page 9. FY's 2017-2018 and forward enter number of mills from line (14) of the applicable Mill Levy Determination Form. FY's 2012-2013 through 2016- 2017 enter number of mills from prior year budget - page 9. FY's 2017-2018 & forward enter number of mills from line (16) of the applicable Mill Levy Determination Form. The Carry Forward in this column is not cumulative - the current fiscal year carry forward mills available are the full amount that may be levied in a subsequent year. These mills will be included in the next year's total authorized mill levy. 2014 - 2015 92,081,322 159.49 147.34 2015 - 2016 90,787,797 -1.40%173.59 160.40 2016 - 2017 94,102,761 3.65%173.61 156.77 2017 - 2018 106,224,806 12.88%160.41 142.44 17.97 2018 - 2019 109,713,782 3.28%161.67 145.78 15.89 2019 - 2020 133,582,036 21.76%142.37 132.62 9.75 2020 - 2021 137,983,427 3.29%144.15 112.36 31.79 2021 - 2022 166,838,141 20.91%128.89 107.23 21.66 2022 - 2023 171,848,622 3.00%145.24 133.94 11.30 2023 - 2024 268,988,379 56.53%105.13 93.02 12.11 FISCAL YEAR TAXABLE VALUATION %INCREASE (DECREASE) FROM PREVIOUS YEAR TOTAL CURRENT YEAR AUTHORIZED MILL LEVY (Includes Prior Year Carry Forward Mills) CURRENT YEAR ACTUAL MILL LEVY CARRY FORWARD MILLS AVAILABLE (May be levied in a subsequent year) 2014 - 2015 2015 - 2016 #DIV/0! 2016 - 2017 #DIV/0! 2017 - 2018 #DIV/0!0.00 Taxable Valuation/Mill Levy Enter Fund Name (example: County Road Fund) City of Bozeman Ten-Year History and Analysis NOTE: The analysis below includes only entity-wide levies subject to the limitations of Section 15-10-420, MCA If applicable, a separate analysis is provided for levies subject to the limitations of Section 15-10-420, MCA that are authorized and actually imposed using a different taxable valuation. Analyses contained in this report do not include voted or permissive levies. Voted and/or permissive mills levied in the current year are listed below. -9- 2018 - 2019 #DIV/0!0.00 2019 - 2020 #DIV/0!0.00 2020 - 2021 #DIV/0!0.00 2021 - 2022 #DIV/0!0.00 2022 - 2023 #DIV/0!0.00 2023 - 2024 #DIV/0!0.00 Number of Mills levied 4 12 14 4.49 10.15 2.18 10.88 Description Fire Department Equipment & Maintenance Fire Staffing Voted/Permissive mills levied in the current fiscal year: Parks & Trails GO Bond Public Safety Center GO Bond Police Staffing Fire Station 2 Relocation GO Bond Health Insurance Premiums (Permissive) -9- Page | 1 FY24 Tax Levy (2023 Tax Year) Analysis for Resolution 5500 Background Montana State Law allows local governments to levy three types of mills: all-purpose, permissive, and voted mills. All-purpose mill levies are floating mills, which means the number of mills available to levy are not fixed. Local governments are restricted by MCA 15-10-420 to collecting an amount equal to last year’s actual tax revenue collected, plus ½ the average rate of inflation for the last three years, plus newly taxable value. This means that as appraised values go up, allowable millage rates for all-purpose levies go down and local government tax bills to property owners do not rise at the same rate as their appraised values. Permissive mills are allowed by state law that are not subject to the limits in MCA 15-10-420. The City levies one levy which is permissive for health/medical insurance for general government employees. The permissive levy for health/medical insurance recommended for FY24 is 10.88 mills and is calculated subject to MCA 15-10-420(9). Voted mill levies are approved by the voters for specific purposes. Most recently, Bozeman citizens approved a General Obligation Bond to fund the Public Safety Center. Voted levies for debt service are calculated to recover the amount of revenue needed to pay for the debt service on the outstanding bonds each year. Typically, debt service is a flat dollar amount over the life of the loan, so the number of mills levied would decreases from year to year, as the mill value rises. Voted levies can also be approved as a total number of mills. Adopted Budget The FY24 budget was approved by the City Commission via Resolution 5486 on July 11, 2023, prior to the publication of certified values for the tax year. The budget included estimated mill values based on historical trends. However, Resolution 5500 recommends establishing and affixing mill values that are less than those included in the adopted budget, due to higher than anticipated increase in mill values. The estimated mill value included in the budget was $190,436. The actual mill value is $247,106. Certified Values and Maximum Mill Levy On August 1, 2023, the City received its official certification of taxable values for FY24 (2023 tax year/calendar year), issued by the Department of Revenue (DOR). The certification showed that taxable value went up by 56.5%. The certification also showed an increase of $13.5 million from new construction (newly taxable property). The final certified values result in an actual mill value of $247,106. Resolution 5500 proposes that the City Commission levy a total of 150.72 mills city-wide. The General Fund all-purpose levy, as provided by Sections 7-6-4451 and 15-10-420 MCA, is proposed to be 93.02 mills of 105.13 total available as the maximum levy. Mill Levies have been reduced in this resolution to generate the same amount of revenue included in the adopted budget. With approval of Resolution 5500, the City will maintain its commitment of 9.0 floating mills being held back in alignment with Resolution No. 3954 (911 mills) and leaves 12.11 available floating General Fund mills unlevied. All Purpose Levy: General Fund 83.30 Community/Workforce Housing 5.89 City Planning 1.46 Senior Transportation 0.77 Story Mill Landfill Monitoring 1.60 Total All Purpose Levy 93.02 Permissive Levies: Health/Medical Insurance 10.88 Total Permissive Levies 10.88 Voted Levies: Fire Equiment 4.00 Fire Staffing 12.00 Police Staffing 14.00 Parks & Trails GO Bonds 4.49 Bozeman Public Safety Center Bonds 10.15 Fire Station #2 Relocation GO Bonds 2.18 Total Voted Levies:46.82 Grand Total Levied 150.72 Mill Levy Fiscal Year 2023-2024 (FY24) Page | 2 The charts below show the percentage change in taxable value city-wide, and the total property taxes levied through the all-purpose property tax levy. Although taxable values increased by more than 55%, revenues to the City from all-purpose property tax levies are expected to increase by only 8%. *Denotes years of valuation. Montana valuates property every other year. 12.9% 3.3% 21.8% 3.3% 20.9% 3.0% 56.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2018*2019 2020*2021 2022*2023 2024* Percent Change in Taxable Value 14,338,536 15,192,508 16,567,749 13,767,060 16,675,179 20,623,353 21,842,278 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 2018 2019 2020 2021 2022 2023 2024 All Purpose Property Tax Revenues Page | 3 Tax Increment Financing Districts (TIFD) Tax increment financing districts have also seen significant increases in incremental values. The additional revenue can be used to fund projects within each respective district. Expenditures of additional revenue that was not anticipated when the budget was adopted will require a budget amendment. 3,769,917 4,159,996 5,987,410 6,247,663 7,893,562 8,245,319 13,789,647 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2018 2019 2020 2021 2022 2023 2024 Downtown TIFD Base Value Incremental Value 223,765 229,047 457,274 477,252 636,368 660,471 1,382,658 - 500,000 1,000,000 1,500,000 2,000,000 2018 2019 2020 2021 2022 2023 2024 Northeast TIFD Base Value Incremental Value 948,716 982,574 1,714,155 1,707,571 2,589,893 2,751,885 5,397,828 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 2018 2019 2020 2021 2022 2023 2024 Midtown TIFD Base Value Incremental Value Page | 4 87,633 20,749 -13,824 53,750 37,133 85,307 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2018 2019 2020 2021 2022 2023 2024 North Park TIFD Base Value Incremental Value 56,410 56,410 98,233 - 20,000 40,000 60,000 80,000 100,000 120,000 2018 2019 2020 2021 2022 2023 2024 South Bozeman Technology TIFD Base Value Incremental Value 255,655 315,388 1,128,947 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2018 2019 2020 2021 2022 2023 2024 Pole Yard TIFD Base Value Incremental Value