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HomeMy WebLinkAboutFiscal Year 2025-2026 Approved Biennium Budget, City of BozemanPage Intentionally Left Blank Table of Contents Budget in Brief 6 Public Works 101 Budget Message 10 Public Works Administration 102 Reader's Guide 13 Engineering 106 Introductory Section 15 GIS/Asset Management 108 Purpose of this Document 16 Solid Waste 110 Awards and Accomplishments 16 Stormwater Fund 114 Organizational Chart 17 Transportation 118 Funding Structure 18 Vehicle Maintenance Fund 126 Budget Policies 20 Wastewater Fund 129 Budget Process 21 Water Fund 135 Strategic Plan 23 Public Welfare 143 Commission Priorities 25 Recreation 144 Performance Measures 25 Forestry/Tree Maintenance Fund 148 City-Wide Financial Summary 27 Parks & Trails District 152 Budget Summary 28 Cemetery 156 City-wide Revenues 36 Library 160 City-wide Appropriations 38 Neighborhood Services 164 Estimated Citizen Impact 40 Economic Development 166 Changes in Fund Balance 43 Sustainability 170 Full-Time Equivalent (FTE) Schedule 46 Community Housing 172 Adopted Budgets 49 Non-Departmental 176 General Fund 50 Debt Service Funds 178 Adopted Budgets by Department 55 Debt 181 General Government 57 Legal Debt Limit 183 City Commission 58 Debt Schedules & Amortization Tables 184 City Manager 60 Capital Improvement Program (CIP)211 City Clerk 62 Appendices 223 City Attorney 65 (A) Statistical Section 225 Finance 68 (B) Long-Range Financial Planning 227 Facilities 70 (C) Fiscal Policies 233 Information Technology 72 (D) Glossary of Key Terms 245 Human Resources 74 (E) City Commission Adoptions 251 Municipal Court 76 Strategic Plan 253 Planning Fund 78 2024-2026 City Commission Priorities 265 Public Safety 81 Police 82 Fire 88 Building Inspection Fund 94 Parking Fund 98 3 Page Intentionally Left Blank 4 Budget in Brief 5 2025 Biennium Budget in Brief The Budget in Brief provides an overview of the City of Bozeman's inaugural 2025 Biennium Budget. Key points include a summary of estimated resources and appropriations as well as highlights on personnel, operating, and capital supported by the budget. Additional information including revenue and appropriation trends is included in the City-wide Financial Summary section on page 27. Resources Including beginning fund balance, resources over the biennium total $557.3 million. Resources by Budget Unit Special Revenue, 32% Enterprise, 29% General Fund, 23% Internal Service, 7% Construction Projects, 6%Debt Service, 2% Permanent, 0% Resources by Source Charges for Services, 31%Taxes, 17% Debt Proceeds, 10% Internal Charges, 6% State Shared, 3% Transfers In, 3% Intergovernmental, 3% Licenses & Permits, 2% Miscellaneous Revenue, 2% County Shared, 1%Interfund Loan Proceeds, 0% Fund Balance, 21% Appropriations Appropriations over the biennium total $485.1 million. Appropriations by Budget Unit Special Revenue, 32% Enterprise, 27% General Fund, 24% Internal Service, 8% Construction Projects, 7%Debt Service, 2% Appropriations by Type Capital Outlay, 31% Salaries & Benefits, 30% Operations & Maintenance, 23% Transfers Out, 11% Debt Service/ Loans, 5% 6 2025 Biennium Budget in Brief Personnel The 2025 Biennium Adopted Budget supports 557.7 full-time equivalent (FTE) employees by the end of the biennial, resulting in approximately 9.2 FTE per 1,000 residents. Personnel by Service Area General Government, 18.6% Public Safety, 32.3% Public Works, 30.6% Public Welfare, 18.6% Capital Outlay The 2025 Biennium Adopted Budget includes $148.6 million in Capital Outlay. Capital by Budget Unit Special Revenue 42% Enterprise 32% Construction Projects 22% General Fund 4% Capital by Type Infrastructure 67% Buildings 24% Machinery & Equipment, 6% Vehicles, 2% Other, 1% Capital Outlay Appropriation by Fund $37.7M$32.6M$23.7M$18.8M$12.7M$6.6M$5.8M$2.7M$2.4M$2.2M$1.7M$0.7M$0.6M$0.2M$0.1M$0.1M$0.1M Street Impact FeeCapital ProjectsWastewater FundWater FundArterial & CollectorStreet Maintenance DistrictGeneral FundSolid Waste FundParks & Trails DistrictStormwater FundUrban Renewal DistrictsParking FundFire Department EquipmentPark Land TrustBuilding Inspection FundTree Maintenance DistrictVehicle Maintenance 7 2025 Biennium Budget in Brief Estimated Residential Impact Summary Estimated Annual Service Cost for a Household Based on Taxable Value of $652,100 (FY24) +3% in FY25 + 14% in FY26 7,500 SQFT lot with water use of 7.5-HCF Fiscal Year (FY) 24 Fiscal Year (FY) 25 Budget Fiscal Year (FY) 26 Budget FY25 Increase $FY26 Increase $FY25 % Change FY26 % Change Property Taxes $ 1,326.84 $ 1,376.24 $ 1,469.03 $ 49.40 $ 92.79 3.7 % 6.7 % Street Assessment 284.31 292.84 301.62 8.53 8.78 3.0 % 3.0 % Arterial Street Assessment 60.08 61.88 63.74 1.80 1.86 3.0 % 3.0 % Tree (Forestry) Assessment 30.53 31.45 32.39 0.92 0.94 3.0 % 3.0 % Parks & Trails Assessment 208.67 214.94 221.39 6.27 6.45 3.0 % 3.0 % Water Service 477.78 535.11 588.62 57.33 53.51 12.0 % 10.0 % Sewer Service 593.46 664.68 717.85 71.22 53.17 12.0 % 8.0 % Stormwater Service 54.36 55.99 57.67 1.63 1.68 3.0 % 3.0 % Garbage Service 195.12 214.63 227.51 19.51 12.88 10.0 % 6.0 % Annual Total $ 3,231.15 $ 3,447.76 $ 3,679.82 $ 216.61 $ 232.06 6.7 % 6.7 % Monthly Total $ 269.26 $ 287.31 $ 306.65 $ 18.05 $ 19.34 8 City Manager's Recommended Budget Message 9 May 31, 2024 To the Bozeman City Commission: We are pleased to present to you the City Manager Recommended Budget for the 2025 Biennium. As we embark on our inaugural biennium budget cycle, we are excited to highlight the benefits that this strategic shift offers to our City. Transitioning to a biennium budget reflects our commitment to prudent financial management and longer-term planning. This approach provides us with greater stability and predictability in resource allocation over a two- year period, allowing us to focus more effectively on planning and preparing for the future of Bozeman and how to continue to efficiently provide essential services. Streamlining the budget process will significantly reduce the administrative burden on many staff, including the City Commission, involved in the budgetary process and will create additional capacity to focus on proactively responding to community needs and external changes impacting City services. This milestone marks a significant step forward in our efforts to ensure the fiscal sustainability and resilience of our City for years to come. Rooted in Basics, Rising in Excellence As we approach the upcoming biennium, it is critical that we refocus our efforts on existing City services that have long served as the foundation of our success. Our foremost priority must be ensuring the stability and sustainability of existing City services that our residents rely on daily. Unprecedented challenges brought about by the growing popularity of Bozeman and exacerbated by the pandemic have pulled the City in many directions as we grapple with high inflation rates and a booming population. The population of Bozeman increased by over 17% in just five years and City departments are struggling to maintain service levels with current staffing, leading to high levels of turnover and burnout. In addition, challenges in hiring and retention have resulted in a City workforce in which approximately 50% of employees have less than five years of service. Significant vacancy rates combined with losses of institutional knowledge result in an overall reduction in productivity and efficiency, which needs to be acknowledged and addressed. Providing public services accessibly, efficiently, and effectively is critical. We must make time to be innovative, to modernize and professionalize our processes, and proactively address the needs and concerns of the public. One focus area is response to public comments and questions. The City receives hundreds of contacts from our residents which deserve thoughtful and accurate responses. Although we work hard to be responsive, we are falling behind. This leads to frustration and perceptions of a local government that does not care about its residents; nothing is further from the truth. Additionally, departmental capacity to do basic tasks like write procedure manuals to guide staff, maintain City websites with current contact information and links, report out on progress toward Commission and community priorities, and generally share information transparently is limited while we focus on the next deadline. Public trust in local government is built through excellence in public service. Continuing at our current pace is simply not sustainable. The City’s service quality, public perception, performance, and ability to retain valuable staff are at risk. This budget aims to strike a balance by sustaining our community partnerships while increasing our internal capacity to deliver services more effectively. 10 Staff: Our Most Valuable Asset Our employees are invaluable, offering expertise, productivity, adaptability, and a steadfast commitment to public service. Recognizing that many areas within the City currently lack the necessary capacity to address our most pressing priorities, this budget prioritizes capacity. It includes line items in each department for new staff, training and professional development, along with reasonable adjustments to compensation aimed at bolstering employee retention and facilitating the recruitment of additional staff to help the City become a high performing organization. New positions included would increase capacity to existing services by approximately 4% per year. The budget includes several new city service workers in the streets division to help clean, plow, and maintain the City’s transportation system, which has seen the addition of 26 street miles over the past two years, with another 50 miles anticipated to be added over the next five years. Engineers and planners are included in this budget to help prepare for Bozeman’s future design and infrastructure needs, including an engineer dedicated to Bozeman’s water resources. Also included are additional parks and recreation staff to further enhance community recreation services, facilities staff to help keep our facilities running, and public safety positions, both sworn and non-sworn, to ensure Bozeman is a safe and welcoming community. In order to provide services to the residents of Bozeman, we rely on departments like human resources, finance, and information technology to help us hire exceptional employees, grow services in a fiscally responsible way, and support those services with technologies needed to do the work. In the last five years, only 4.5 positions have been added in these foundational internal service areas while our customer base and services have continued to expand. Our human resources department is stretched thin, with only one recruiter handling hiring of qualified employees and vacancy management in an organization with over 550 total positions. Similarly, just one budget analyst, with support from various City departments, has spent the last five months meticulously reviewing department budgets, projecting revenues, creating long-term financial plans, analyzing rate impacts, and compiling the budget document before you. The addition of new employees in these critical areas will inherently increase capacity when positions are filled, but the additions will also help prevent burnout and support the retention of our exceptional employees who continue to demonstrate their commitment to the City of Bozeman and our residents. Fiscal Challenges As our small city continues to experience rapid growth, we are presented with new and multifaceted challenges. The strain on public safety, infrastructure, housing, and increased traffic congestion that result from growth demand our immediate attention. Federal and state grant revenue, including American Rescue Plan Act (ARPA) funds, supported previous budgets in addressing these issues by funding infrastructure projects and providing significant support to community partners. These one-time revenue streams are no longer available to help balance the City’s budgets. Maintaining the same level of funding allocations to our community partners would cost taxpayers over $3.0 million dollars over the biennium. Despite the reduction in available grant funding for community partners, this budget still proposes an increase in discretionary General Fund dollars to support our community partners. This budget is our attempt to strike a balance between supporting our community partners and adding resources to support the City’s existing services. We are dedicated to supporting our partners and working together to tackle the challenges brought by rapid growth, inflation, and the changing economic landscape. Over the last five years, the City has experienced an average annual increase of 10-15% in construction cost estimates for utility and transportation projects. Between 2022 and 2023 alone, cost increases by linear foot for 11 water renovations, sewer renovations, and street reconstructions were 15%, 22% and 24% respectively, significantly increasing the cost of completing our capital improvement program. Meanwhile, prior to FY24 the rates charged to customers of these services remained largely flat. Because of this, rate, and assessment increases between 3.0% and up to 12.0% are needed in the biennium to continue to provide essential services like water, wastewater, and solid waste disposal to the community. Capital projects are included in the budget to maintain and improve aging infrastructure, with some water pipes and sewer mains reaching over 100 years old. The budget also includes investments in optimizing existing water supplies to manage this precious resource. City General Fund expenses are projected to rise at a rate slightly higher than operating revenues due to state level limitations on property tax increases capped at half the rate of inflation for the last three years. The Governor’s Property Tax Task Force was created this year and will present recommendations to the Governor in August of 2024. Local governments are listening, and collaborating to help propose solutions that provide property tax relief to Montanans without risking the future of local government services. The future is dynamic, evolving, and uncertain. Planning for Bozeman’s Future As we navigate the uncertainties and challenges ahead, this two-year budget cycle presents a unique opportunity for the City of Bozeman. By implementing the recommended budget, we can bolster the capacity of our departments to effectively deliver public services, proactively address community concerns, and enhance the City's reputation for trustworthiness and customer service. Our City employees demonstrate a strong commitment to public service and strive for excellence in their roles. Beyond merely maintaining our current service levels, this budget enables us to invest in the future of Bozeman. By addressing staffing needs, enhancing operational efficiency, and prioritizing community engagement, we will lay the groundwork for sustained growth and prosperity. We look forward to collaboration with the City Commission, residents, and community partners to implement a budget that ensures a prosperous future for Bozeman. Together, we can build a stronger, more resilient city that meets the needs of its residents and continues to thrive in the years to come. Thank you for your dedication to our City's well-being. Chuck Winn City Manager Melissa Hodnett Finance Director 12 Reader 13 Page Intentionally Left Blank 14 Introductory Section 15 Purpose of this Document 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, 2023. The City has received this award for each budget it has prepared in the past 32 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 award. 16 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 17 Funding Structure The City has two main financial reporting structures. 1.Service Areas organize the City's financials by their impact on the community. The majority of this budget document detail will be presented and organized by Service Area. 2.Budget Units divide the organization up into units with the same or similar revenue streams. The budget is formally adopted by Resolution of the City Commission at the Budget Unit level to provide appropriate flexibility in managing City budgets according to their associated funding sources. Service Areas and Departments: 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: Service Area, Departments, and Divisions. Service Area: Service Area 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. The chart below outlines the City's Service Areas and the Departments that fall under each Service area. 18 Budget Units: 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. Funds are classified as Governmental, Proprietary, or Fiduciary. Within those classifications, funds are further grouped by Budget Unit. There are eight unique Budget Units including General Fund, Special Revenue Funds, Debt Service Funds, Construction Project Funds, Permanent Funds, Enterprise Funds, Internal Service Funds, and Trust Funds. The chart below outlines the Budget Units within each Fund Type. All funds identified are appropriated in this budget. Governmental Fund Types: 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. The General Fund is a major governmental fund. 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, 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. 19 Tax Increment Financing District (TIFD) Bonds 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. 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. The SID Revolving Fund secures debt for the SIDs and the cash balance must equal 10% of the principal amount of bonds outstanding. Construction Project 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. Permanent Funds: Permanent Funds are used to account for restricted endowment funds. 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. The City's Enterprise Funds include Water, Wastewater, Solid Waste, Stormwater, and Parking funds. The Water and Wastewater Funds are major proprietary funds. A more detailed description of these funds can be found on pages 129 and 135. 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 7-6-40. 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 by fund, 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. Per MCA, the budget is considered balanced when appropriations do not exceed the projected beginning balance plus the estimated revenue of each fund for the fiscal year. 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 Appendix B for Administrative Order 2024-02 Bozeman Financial Policies with more information on the City's Financial Policies. 20 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. 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). All funds appropriated in this budget are included in the audited financial statements. Budget Process The 2025 Biennium Adopted Budget serves as the City of Bozeman's first biennial budget. The process of developing this budget began following the adoption of the City's FY2024 Budget. Per the City Charter, the City of Bozeman is required to adopt a multi-year capital program annually by December 15th for the ensuing fiscal year. The FY25-29 Capital Improvement Plan (CIP) can be found on the City's Budget and Financial Reports page. The process to adopt the CIP includes public noticing and multiple presentations to City Commission with numerous opportunities for public input on the proposed plan. Once adopted, the CIP serves as the basis of the budget. Beginning in January, the City Commission work on priority setting to inform the budget while City staff prepare operating and maintenance budget requests for existing programs for each year of the biennium. The Finance department develops revenue projects, debt schedules, and updating long-term financial models to inform the next step of reviewing and balancing budgets. Commission priorities are incorporated into the budget. Once the budgets are balanced, the budget document is prepared and made available to the public, City Commission, and City Staff. Typically, beginning in May and through the end of June, budget presentations are made to the City Commission providing detail on what has been included in the budget and the main drivers for those decisions. These presentations of the budget are appropriately noticed per Montana Code Annotated (MCA), and members of the public are provided multiple opportunities to comment on the recommended budget. The preliminary annual budget in brief, as required by MCA, is prepared and published for each year of the biennium. The final step is the City Commission's formal adoption by Resolution of the first year of the biennial budget. The public hearing for the adoption of the budget is also noticed, and City Commission accepts public comment on the budget up until adoption. Once adopted, the first year of the biennial budget process is concluded. The second year of the budget process begins similarly with the adoption of the CIP by December 15th. However, the development process for the remainder of the budget is far less intensive than the first year. Beginning in March, City staff will perform a budget-to-actual analysis to inform projections for both the first and second year of the budget. Once completed, the City Commission is presented with any changes to the FY26 budget. This public hearing properly noticed and provides an opportunity for the public to comment on recommended changes to the second year of the biennium. The budget process is concluded with City Commission's adoption of the second year's budget with approved changes. However, budget amendments can be made according to MCA, or at any City Commission meeting by resolution, with appropriate noticing and pubic comment opportunity. The following charts outline our process and timing for the budget over the two years of the biennium. 21 Year 1: Year 2: 22 Bozeman Strategic Plan In 2016, the City of Bozeman embarked on crafting its Strategic Plan. Over the subsequent two years, with the support of HDR Engineering, the City developed a comprehensive plan to address both its long-term ambitions and short-term objectives. This plan was shaped by the preferences of the City Commission, as well as the availability of staff and financial resources. It aims to focus the City’s efforts on achieving the most critical goals identified by both the Commission and the community. After numerous work sessions involving discussions on priorities, methods, and public feedback, the City’s first Strategic Plan was officially adopted on April 16, 2018. The plan outlines a Vision, Vision Statements, and Strategies to guide the City's future initiatives. The entire Strategic Plan is located Appendix E: City Commission Adoptions beginning on page 251, and the document can also be found on the City website. Below are some of the efforts towards the Strategic Plan included in the budget: 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 and build public trust by using our adopted communication plan for the organization to expand community outreach and community engagement. The City's focus is to continually increase capacity to perform our existing services in a way that builds trust in the community. 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. In addition, 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 23 Plan Update. See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. 3) A Safe, Welcoming Community. The budget includes steps toward an inclusive City with training and the implementation of our Belonging in Bozeman Team, and Equity & Inclusion Plan. New positions that support this plan include an Equity and Inclusion Program Coordinator in the City Manager's office and a Community Liaison in the Police Department. The adopted budget includes a new Fire Station #4, assumed to be funded by a bond levy, which is consistent with the Fire Master Plan and would help Fire respond to a wider area. 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. See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. 4) A Well-planned City. The Parks, Recreation, and Active Transportation (PRAT) Master Plan implementation began in FY22 and continues through the biennium. Community Housing will continue the implementation of its action plan, which will provide more affordable housing including a commitment of $2.0 million in this budget. Planning & land use initiatives are supported with the newly created Metropolitan Planning Organization (MPO), 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. All road infrastructure projects scheduled in the Street Impact Fee Fund will include investments in bike lanes. Funding for the acquisition of LIDAR data for land management, planning, and engineering projects is 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. Additional 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 focuses on ensuring equitable access to training opportunities across all departments, and increasing departmental capacity to allow for those training opportunities to take place. 6) A Sustainable Environment. This Budget looks at Climate Action Plan Implementation and continues to increase the Sustainability Division’s budget. The Sustainability Division budget includes the addition of EV charging stations within City limits. 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. The budget also includes money to install solar panels at select City facilities. All City vehicles included in the CIP will explore hybrid or electric options where available. 7) A High Performance Organization. Recognizing that many areas within the City currently lack the necessary capacity to address our most pressing priorities, this budget prioritizes capacity. It includes line items in each department for new staff, training and professional development, along with reasonable adjustments to compensation aimed at bolstering employee retention and facilitating the recruitment of additional staff to help the City become a high performing organization. New positions included would increase capacity to existing services by approximately 4% per year. 24 City Commission Priorities In alignment with the adopted Strategic Plan, Bozeman City Commission adopts priorities every two years. In conjunction with other adopted plans such as the Climate Action Plan, Community Affordable Housing Plan, and the growth policy, these priorities also guide goals and projects identified in the 2025 Biennium Adopted Budget. For the 2024-2026 priority cycle, Commission has identified the following priorities: •Foster and build public trust, support, and pride in local government •Develop a Tenant's Right to Counsel Program •Develop a comprehensive regional strategy on homelessness •Implement at least eight (8) recommendations from the Belonging in Bozeman Plan •Rework and restore a new Historic Preservation Policy - including trees and landmarks •Encourage the creation of Accessory Dwelling Units (ADUs) in our city through an ADU Incentive Program •Create an Affordable Housing Preservation Policy •Ramp up the SAFE Plan and become a Gold- level Bike Friendly Community •Create a Bozeman Creek Resiliency Plan The complete 2024-2026 City Commission Priorities document is available in Appendix E: City Commission Adoptions on page 251. 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 Strategic Plan 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. 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 Department detail 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. 25 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. Performance measures for each department are provided in the Adopted Budgets portion of this document, beginning on page 49. The data provided includes results from the past two years, the current year’s projection, and estimates for the upcoming biennium. Additionally, where applicable, targets are included. Each metric is linked to the specific departmental goal it supports. Visual representations of these performance measures are also provided. 26 City-Wide Financial Summary 27 2025 Biennium Adopted Budget Financial Summary The City of Bozeman’s 2025 Biennium Adopted Budget estimates the collection of approximately $439.7 million in revenue. Beginning fund balance, also a resource included in the table below, is projected to be $117.6 million resulting in total resources of $557.3 million available for the biennium. Budget appropriations over the biennium are projected at $485.1 million. This will support 557.70 full-time equivalent employees and $148.6 million in capital spending. 2025 Biennium Adopted Budget Biennium Budget RESOURCES General Fund $ 130,626,800 Special Revenue Funds 177,951,000 Debt Service Funds 13,337,400 Construction Funds 34,979,400 Enterprise Funds 159,857,200 Internal Service Funds 38,474,300 Permanent Funds 2,122,700 TOTAL RESOURCES $ 557,348,800 Biennium Budget REQUIREMENTS General Fund $ 117,946,900 Special Revenue Funds 157,589,000 Debt Service Funds 10,302,500 Construction Funds 32,904,800 Enterprise Funds 128,647,700 Internal Service Funds 37,688,500 Permanent Funds — TOTAL REQUIREMENTS $ 485,079,400 Per Montana Code Annotated (MCA), the budget resolution must establish legal spending limits at the level of detail in the resolution. The budget resolution adopted by the City Commission is at the Budget Unit level, as detailed in the requirement table above. Per MCA, the budget must be balanced so that appropriations do not exceed the projected beginning balance plus the estimated revenue (also called total resources) of each fund for the fiscal year. The above tables indicate that the adopted budget meets that requirement over the biennium. The following pages present fiscal year (FY) summaries of resources categorized by major type and appropriations broken down by spending component for each Budget Unit. The summaries include actual figures for FY23, projected amounts for FY24, and budget estimates for FY25 and FY26, as well as the Biennium Budget. 28 Fiscal Year (FY) 23 Actual FY23 Actual General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds RESOURCES Beginning Balance $ 9,051,626 $ 43,964,538 $ 5,832,070 $ 9,328,065 $ 56,362,683 $ 2,578,235 $ 1,684,117 $ 128,801,334 Taxes $ 23,164,839 $ 10,342,453 $ 3,736,222 $ — $ — $ — $ — $ 37,243,514 State Shared 5,122,791 1,035,386 — — — — — $ 6,158,176 County Shared 3,339,118 — — — — — — $ 3,339,118 Special Assessments — 724,122 569,230 — 115 — — $ 1,293,467 Licenses & Permits 381,922 3,160,265 — — 665,191 7,675 — $ 4,215,052 Intergovernmental 23,496 7,302,250 — — 1,303,737 — — $ 8,629,483 Charges for Services 941,649 23,571,904 — — 34,950,606 5,957,109 93,173 $ 65,514,441 Fines & Forfeitures 1,009,840 59,429 — — 338,418 — — $ 1,407,688 Interest Income 171,669 1,214,529 78,348 243,848 1,247,257 64,885 38,710 $ 3,059,246 Loan/Lease Repayments — — — — 47,470 — — $ 47,470 Miscellaneous Revenue 3,126,126 1,722,518 10,405 — 164,585 71,775 — $ 5,095,408 Debt Proceeds 66,602 862,620 — — — — — $ 929,222 Interfund Loan Proceeds — — — — — — — $ — Internal Charges 5,365,523 164,263 — — — 7,791,275 — $ 13,321,061 Transfers In 10,854,877 4,047,971 2,268,893 6,727,225 2,083,940 — — $ 25,982,906 Total Revenues $ 53,568,452 $ 54,207,708 $ 6,663,098 $ 6,971,073 $ 40,801,318 $ 13,892,720 $ 131,883 $ 176,236,253 TOTAL RESOURCES $ 62,620,078 $ 98,172,246 $ 12,495,168 $ 16,299,138 $ 97,164,001 $ 16,470,955 $ 1,816,000 $ 305,037,587 General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds REQUIREMENTS Salaries & Benefits $ 28,117,588 $ 9,600,708 $ — $ — $ 8,949,353 $ 4,896,260 $ — $ 51,563,909 Operations & Maintenance 9,122,838 9,140,679 — 687,491 11,174,265 8,246,043 — $ 38,371,315 Capital Outlay 3,107,361 10,751,143 — 4,059,642 5,498,765 176,948 — $ 23,593,859 Debt Service/Loans 78,978 640,312 5,216,202 — 4,638,371 89,680 — $ 10,663,543 Interfund Loans — — — — — — — $ — Transfers Out 6,894,414 15,944,105 5,521,866 977,705 8,049,476 838,824 — $ 38,226,390 TOTAL REQUIREMENTS $ 47,321,178 $ 46,076,946 $ 10,738,068 $ 5,724,838 $ 38,310,231 $ 14,247,755 $ — $ 162,419,017 29 Fiscal Year (FY) 24 Projection FY24 Projection General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds RESOURCES Beginning Balance $ 15,298,900 $ 52,095,300 $ 1,757,100 $ 10,574,300 $ 58,806,300 $ 2,223,200 $ 1,816,000 $ 142,571,100 Taxes $ 27,014,900 $ 10,866,500 $ 4,001,500 $ — $ — $ — $ — $ 41,882,900 State Shared 5,340,200 4,639,500 — — — — — $ 9,979,700 County Shared 3,361,700 — — — — — — $ 3,361,700 Special Assessments 100 690,600 588,700 — 100 — — $ 1,279,500 Licenses & Permits 474,200 4,070,400 — — 731,600 12,000 — $ 5,288,200 Intergovernmental 494,600 5,035,200 — — 2,519,300 20,000 — $ 8,069,100 Charges for Services 1,184,900 28,478,500 — — 43,032,100 6,669,200 79,800 $ 79,444,500 Fines & Forfeitures 946,100 63,100 — — 351,300 — — $ 1,360,500 Interest Income 100,000 393,900 27,200 382,800 1,788,400 165,400 20,000 $ 2,877,700 Loan/Lease Repayments — — — — — — — $ — Miscellaneous Revenue 221,500 3,379,200 — — 358,500 79,400 — $ 4,038,600 Debt Proceeds 4,148,000 6,037,800 — 2,424,100 2,040,000 — — $ 14,649,900 Interfund Loan Proceeds — — — — — — — $ — Internal Charges 6,384,700 161,000 — — — 8,657,300 — $ 15,203,000 Transfers In 6,989,300 3,796,800 744,100 6,868,900 1,693,800 227,600 — $ 20,320,500 Total Revenues $ 56,660,200 $ 67,612,500 $ 5,361,500 $ 9,675,800 $ 52,515,100 $ 15,830,900 $ 99,800 $ 207,755,800 TOTAL RESOURCES $ 71,959,100 $ 119,707,800 $ 7,118,600 $ 20,250,100 $ 111,321,400 $ 18,054,100 $ 1,915,800 $ 350,326,900 General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds REQUIREMENTS Salaries & Benefits $ 31,980,400 $ 10,817,700 $ — $ — $ 9,814,200 $ 5,037,000 $ — $ 57,649,300 Operations & Maintenance 12,135,700 14,869,900 — 521,600 12,535,100 9,212,000 — $ 49,274,300 Capital Outlay 10,500,200 20,222,300 — 15,263,700 34,512,900 315,000 — $ 80,814,100 Debt Service/Loans 67,300 816,500 5,014,800 — 4,640,600 93,300 — $ 10,632,500 Interfund Loans — — — — — — — $ — Transfers Out 1,939,400 20,716,700 — 2,068,600 8,640,900 976,800 — $ 34,342,400 TOTAL REQUIREMENTS $ 56,623,000 $ 67,443,100 $ 5,014,800 $ 17,853,900 $ 70,143,700 $ 15,634,100 $ — $ 232,712,600 30 Fiscal Year (FY) 25 Budget Financial Summary Fiscal Year (FY) 25 Budget General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds RESOURCES Beginning Balance $ 15,336,100 $ 52,264,700 $ 2,103,800 $ 2,396,200 $ 41,177,700 $ 2,420,000 $ 1,915,800 $ 117,614,300 Taxes $ 29,734,800 $ 10,011,200 $ 4,139,000 $ — $ — $ — $ — $ 43,885,000 State Shared 5,453,200 3,037,100 — — — — — $ 8,490,300 County Shared 3,396,600 — — — — — — $ 3,396,600 Special Assessments 100 396,400 549,900 — 100 — — $ 946,500 Licenses & Permits 500,900 5,006,000 — — 753,500 12,000 — $ 6,272,400 Intergovernmental 674,400 1,082,600 — — 689,800 — — $ 2,446,800 Charges for Services 1,215,200 29,237,400 — — 45,805,000 7,036,000 82,200 $ 83,375,800 Fines & Forfeitures 952,800 63,100 — — 361,800 — — $ 1,377,700 Interest Income 100,000 368,500 28,300 41,600 1,788,400 165,400 20,000 $ 2,512,200 Loan/Lease Repayments — — — — — — — $ — Miscellaneous Revenue 221,500 1,015,500 — — 204,000 45,000 — $ 1,486,000 Debt Proceeds 3,511,300 3,436,200 — 18,000,000 13,416,100 — — $ 38,363,600 Interfund Loan Proceeds — — — — 1,186,900 — — $ 1,186,900 Internal Charges 7,139,500 165,800 — — — 9,488,500 — $ 16,793,800 Transfers In 4,124,400 2,238,500 745,900 1,000,000 272,100 345,600 — $ 8,726,500 Total Revenues $ 57,024,700 $ 56,058,300 $ 5,463,100 $ 19,041,600 $ 64,477,700 $ 17,092,500 $ 102,200 $ 219,260,100 TOTAL RESOURCES $ 72,360,800 $ 108,323,000 $ 7,566,900 $ 21,437,800 $ 105,655,400 $ 19,512,500 $ 2,018,000 $ 336,874,400 General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds REQUIREMENTS Salaries & Benefits $ 38,276,000 $ 14,498,400 $ — $ — $ 10,898,200 $ 5,929,500 $ — $ 69,602,100 Operations & Maintenance 12,558,900 25,914,100 — — 12,010,300 9,859,200 — $ 60,342,500 Capital Outlay 3,608,800 27,389,000 — 19,000,400 24,696,000 — — $ 74,694,200 Debt Service/Loans 349,200 1,335,500 5,155,800 — 4,907,000 97,200 — $ 11,844,700 Interfund Loans 1,186,900 — — — — — — $ 1,186,900 Transfers Out 2,683,600 9,731,600 — — 11,501,000 2,284,500 — $ 26,200,700 TOTAL REQUIREMENTS $ 58,663,400 $ 78,868,600 $ 5,155,800 $ 19,000,400 $ 64,012,500 $ 18,170,400 $ — $ 243,871,100 31 Fiscal Year (FY) 26 Budget Financial Summary Fiscal Year (FY) 26 Budget General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds RESOURCES Taxes $ 33,570,400 $ 11,887,400 $ 4,447,600 $ — $ — $ — $ — $ 49,905,400 State Shared 5,568,600 3,097,200 — — — — — $ 8,665,800 County Shared 3,443,200 — — — — — — $ 3,443,200 Special Assessments 100 836,800 550,000 — 100 — — $ 1,387,000 Licenses & Permits 529,800 5,992,500 — — 776,100 12,000 — $ 7,310,400 Intergovernmental 749,700 10,945,000 — — — — — $ 11,694,700 Charges for Services 1,246,400 30,394,700 — — 49,982,600 7,739,600 84,700 $ 89,448,000 Fines & Forfeitures 959,500 63,100 — — 372,700 — — $ 1,395,300 Interest Income 100,000 368,900 29,500 41,600 1,788,400 165,400 20,000 $ 2,513,800 Loan/Lease Repayments — — — — — — — $ — Miscellaneous Revenue 221,500 1,042,200 — — 207,600 49,600 — $ 1,520,900 Debt Proceeds 894,600 2,865,900 — 13,000,000 433,500 — — $ 17,194,000 Interfund Loan Proceeds — — — — — — — $ — Internal Charges 7,631,700 170,800 — — — 10,638,400 — $ 18,440,900 Transfers In 3,350,500 1,963,500 743,400 500,000 640,800 356,800 — $ 7,555,000 TOTAL RESOURCES $ 58,266,000 $ 69,628,000 $ 5,770,500 $ 13,541,600 $ 54,201,800 $ 18,961,800 $ 104,700 $ 220,474,400 General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds REQUIREMENTS Salaries & Benefits $ 41,173,000 $ 15,656,100 $ — $ — $ 11,652,900 $ 6,830,500 $ — $ 75,312,500 Operations & Maintenance 12,319,300 16,167,900 — 260,000 11,680,500 10,638,500 — $ 51,066,200 Capital Outlay 2,193,300 34,706,800 — 13,644,400 23,295,300 52,000 — $ 73,891,800 Debt Service/Loans 811,900 1,747,800 5,146,700 — 6,428,700 101,000 — $ 14,236,100 Interfund Loans — — — — — — — $ — Transfers Out 2,786,000 10,441,800 — — 11,577,800 1,896,100 — $ 26,701,700 TOTAL REQUIREMENTS $ 59,283,500 $ 78,720,400 $ 5,146,700 $ 13,904,400 $ 64,635,200 $ 19,518,100 $ — $ 241,208,300 32 2025 Biennium Adopted Budget Financial Summary 2025 Biennium Adopted Budget General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds RESOURCES Beginning Balance $ 15,336,100 $ 52,264,700 $ 2,103,800 $ 2,396,200 $ 41,177,700 $ 2,420,000 $ 1,915,800 $ 117,614,300 Taxes $ 63,305,200 $ 21,898,600 $ 8,586,600 $ — $ — $ — $ — $ 93,790,400 State Shared 11,021,800 6,134,300 — — — — — $ 17,156,100 County Shared 6,839,800 — — — — — — $ 6,839,800 Special Assessments 200 1,233,200 1,099,900 — 200 — — $ 2,333,500 Licenses & Permits 1,030,700 10,998,500 — — 1,529,600 24,000 — $ 13,582,800 Intergovernmental 1,424,100 12,027,600 — — 689,800 — — $ 14,141,500 Charges for Services 2,461,600 59,632,100 — — 95,787,600 14,775,600 166,900 $ 172,823,800 Fines & Forfeitures 1,912,300 126,200 — — 734,500 — — $ 2,773,000 Interest Income 200,000 737,400 57,800 83,200 3,576,800 330,800 40,000 $ 5,026,000 Loan/Lease Repayments — — — — — — — $ — Miscellaneous Revenue 443,000 2,057,700 — — 411,600 94,600 — $ 3,006,900 Debt Proceeds 4,405,900 6,302,100 — 31,000,000 13,849,600 — — $ 55,557,600 Interfund Loan Proceeds — — — — 1,186,900 — — $ 1,186,900 Internal Charges 14,771,200 336,600 — — — 20,126,900 — $ 35,234,700 Transfers In 7,474,900 4,202,000 1,489,300 1,500,000 912,900 702,400 — $ 16,281,500 Total Revenues $ 115,290,700 $ 125,686,300 $ 11,233,600 $ 32,583,200 $ 118,679,500 $ 36,054,300 $ 206,900 $ 439,734,500 TOTAL RESOURCES $ 130,626,800 $ 177,951,000 $ 13,337,400 $ 34,979,400 $ 159,857,200 $ 38,474,300 $ 2,122,700 $ 557,348,800 General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds REQUIREMENTS Salaries & Benefits $ 79,449,000 $ 30,154,500 $ — $ — $ 22,551,100 $ 12,760,000 $ — $ 144,914,600 Operations & Maintenance 24,878,200 42,082,000 — 260,000 23,690,800 20,497,700 — $ 111,408,700 Capital Outlay 5,802,100 62,095,800 — 32,644,800 47,991,300 52,000 — $ 148,586,000 Debt Service/Loans 1,161,100 3,083,300 10,302,500 — 11,335,700 198,200 — $ 26,080,800 Interfund Loans 1,186,900 — — — — — — $ 1,186,900 Transfers Out 5,469,600 20,173,400 — — 23,078,800 4,180,600 — $ 52,902,400 TOTAL REQUIREMENTS $ 117,946,900 $ 157,589,000 $ 10,302,500 $ 32,904,800 $ 128,647,700 $ 37,688,500 $ — $ 485,079,400 33 Summary of Changes from Recommended Budget to Adopted Budget City Commission Approved Amendments to Recommended Budget 1.Allocate $50,000 of recommended budget for implementing the Belonging in Bozeman Plan to fund a 10- hour-per-week Disability Community Liaison in Fiscal Year 2026 (FY26). 2.Change title of the Equity and Inclusion Program Coordinator to Belonging in Bozeman Program Coordinator. 3.Allocate $360,000 of budgeted $500,000 of City Commission's budget in FY25 to Human Resource Development Council (HRDC) to support operations of the year-round warming center. 4.Allocate an additional $250,000 from the General Fund to the Community Housing Fund for the purpose of supporting community efforts to relocate urban campers from City right-of-way to transitional or permanent housing, funded by a reduction to the personnel budget based on anticipated vacancy savings rather than in increase in property taxes. 5.Allocate an additional $50,000 to annual, multimodal projects in the Street Maintenance Fund. 6.Reduce funding for Parking Fund project P07 Rouse Lot Improvements by $400,000 in FY26. Retain $400,000 budget in FY26 for other parking projects. 7.Allocate $50,000 of recommended budget in Parkland Trust Fund to fund trail improvement projects bolstered by community partners. 8.Allocate $50,000 of the recommend budget in the Parks & Trails District Fund in FY 2025 and 2026 for an engineering study of Bozeman Creek and a land use analysis of future park property along Bozeman Creek. Quantitative Changes Resulting from Commission Amendments •Reduced FY25 Salaries & Benefits and increased FY25 Transfers Out in General Fund by $250,000 with a corresponding increase in resources and appropriations in the Community Housing Fund per amendment number 4 above. •Increased FY25 and FY26 Capital budget in Street Maintenance Fund $50,000 as a result of amendment number 5 above. 34 Summary of Changes (continued) Fiscal Year (FY) 25 Budget Resources Appropriations City Manager Recommended Budget City Commission Adopted Budget Increase/ (Decrease) Percent Change City Manager Recommended Budget City Commission Adopted Budget Increase/ (Decrease) Percent Change General Fund $ 72,360,800 $ 72,360,800 $ — — %$ 58,663,400 $ 58,663,400 $ — — % Special Revenue Funds 108,073,000 108,323,000 $ 250,000 0.23 % 78,568,600 78,868,600 $ 300,000 0.38 % Debt Service Funds 7,566,900 7,566,900 $ — — % 5,155,800 5,155,800 $ — — % Construction Funds 21,437,800 21,437,800 $ — — % 19,000,400 19,000,400 $ — — % Enterprise Funds 105,655,400 105,655,400 $ — — % 64,012,500 64,012,500 $ — — % Internal Service Funds 19,512,500 19,512,500 $ — — % 18,170,400 18,170,400 $ — — % Permanent Funds 2,018,000 2,018,000 $ — — % — — $ — — % TOTAL $ 336,624,400 $ 336,874,400 $ 250,000 0.07 %$ 243,571,100 $ 243,871,100 $ 300,000 0.12 % Fiscal Year (FY) 26 Budget Resources Appropriations City Manager Recommended Budget City Commission Adopted Budget Increase/ (Decrease) Percent Change City Manager Recommended Budget City Commission Adopted Budget Increase/ (Decrease) Percent Change General Fund $ 58,266,000 $ 58,266,000 $ — — %$ 59,283,500 $ 59,283,500 $ — — % Special Revenue Funds 69,628,000 69,628,000 $ — — % 78,670,400 78,720,400 $ 50,000 0.06 % Debt Service Funds 5,770,500 5,770,500 $ — — % 5,146,700 5,146,700 $ — — % Construction Funds 13,541,600 13,541,600 $ — — % 13,904,400 13,904,400 $ — — % Enterprise Funds 54,201,800 54,201,800 $ — — % 64,635,200 64,635,200 $ — — % Internal Service Funds 18,961,800 18,961,800 $ — — % 19,518,100 19,518,100 $ — — % Permanent Funds 104,700 104,700 $ — — % — — $ — — % TOTAL $ 220,474,400 $ 220,474,400 $ — — %$ 241,158,300 $ 241,208,300 $ 50,000 0.02 % 2025 Biennium Adopted Budget Resources Appropriations City Manager Recommended Budget City Commission Adopted Budget Increase/ (Decrease) Percent Change City Manager Recommended Budget City Commission Adopted Budget Increase/ (Decrease) Percent Change General Fund $ 130,626,800 $ 130,626,800 $ — — %$ 117,946,900 $ 117,946,900 $ — — % Special Revenue Funds 177,701,000 177,951,000 $ 250,000 0.14 % 157,239,000 157,589,000 $ 350,000 0.22 % Debt Service Funds 13,337,400 13,337,400 $ — — % 10,302,500 10,302,500 $ — — % Construction Funds 34,979,400 34,979,400 $ — — % 32,904,800 32,904,800 $ — — % Enterprise Funds 159,857,200 159,857,200 $ — — % 128,647,700 128,647,700 $ — — % Internal Service Funds 38,474,300 38,474,300 $ — — % 37,688,500 37,688,500 $ — — % Permanent Funds 2,122,700 2,122,700 $ — — % — — $ — — % TOTAL $ 557,098,800 $ 557,348,800 $ 250,000 0.04 %$ 484,729,400 $ 485,079,400 $ 350,000 0.07 % 35 City-wide Revenues Total revenue estimated in the 2025 Biennium Adopted Budget is $439.7 million, $219.3 million in FY25, a $11.5 million increase or equivalent to a 6% increase over FY24 Projected Revenues. Fiscal Year (FY) 26 Budget includes $220.5 million in revenue, a $1.2 million increase or less than 1% increase over FY25 Budget. The increase in FY25 is primarily due to additional debt proceeds anticipated to fund capital projects, including $18.0 million to fund construction of Fire Station #4, $10.2 million in Wastewater revenue bonds, and other debt proceeds that would cover capital projects or equipment. The increase is offset by a reduction in transfer revenue and grant revenue. In FY24 the remaining American Rescue Plan Act (ARPA) Grant Funds were recognized and transferred to other funds to support approved projects. Revenue by Source for All Funds Charges for Services, 39% Taxes, 21% Debt Proceeds, 13% Transfers In, 12% Intergovernmental, 9% Licenses & Permits, 3%Miscellaneous Revenue, 3% Charges for services are the largest category of City revenue at 39%. Of the $172.8 million included in the budget, 46% is designated to enterprise funds for utilities such as water, wastewater, stormwater, and solid waste. Revenue projections are based on rates set to meet the adopted expenditure budgets and capital improvement program, and include assumptions for expected customer growth. Comprehensive financial models are used to forecast long-term resources and expenditures for each of these funds. More information is provided in the Long- Range Financial Planning Appendix on page 227. Assessments make up 22% of charges for services. The City has four special districts which collect assessment revenue, Street Maintenance, Street Arterial & Collector, Parks & Trails, and Tree Maintenance. Similar to utility rates, revenue is calculated based on the adopted operational and capital costs of each district. Impact Fees are fees charged to developers which are intended to fund infrastructure projects necessary to support growth. Impact fees for water, wastewater, transportation, and fire make up 17% of charges for services. Revenues are projected based on anticipated development trends. Other charges for services include revenue from activities such as development reviews in Community Development, cemetery plot sales, City pool admissions, facility rentals, library book sales, and insurance premiums. Revenue projections for these sources are based on trend analysis from previous years and input from the respective program managers. Charges for Service by Department Water, 23% Streets, 23% Wastewater, 20% Solid Waste, 10% Health/Medical Insurance, 9% Parks & Trails, 8% Stormwater, 3%Community Development, 2% 36 Property Taxes are the next largest portion of City revenues. The adopted budget includes estimates of mill levies necessary to generate sufficient revenue to cover budgeted expenditures and meet reserve requirements. Certified property values from the Department of Revenue are typically received by cities on August 1, after the budget has been adopted. Based on these values, the City Commission may choose to amend the budget as needed. Property tax bills, mailed to homeowners by Gallatin County, are made up of multiple mill levies based on the location of your property. The property’s appraised value is multiplied by the tax rate, and then multiplied by the total number of applicable mills. One mill is equal to 1/10th of one cent. The City receives approximately 31% of each dollar of property tax paid by property owners (based on FY24 mill levies). Property taxes primarily support the City's General Fund and are made up of all-purpose mills, permissive mills, and voted mill levies. Details of the mill allocations by year are below: MILL LEVIES & MILL VALUES FISCAL YEAR FY21 FY22 FY23 FY24 FY25 Budget FY26 Budget MILL VALUE (net of URD's)$ 129,537 $ 155,353 $ 159,782 $247,166 $254,401 $305,418 MILL VALUE (net of URD's) PERCENTAGE CHANGE 3 % 20 % 3 % 55 % 3 % 20 % GENERAL FUND: All-Purpose 106.18 98.66 115.79 83.30 93.00 86.00 DEDICATED MILLS (non-debt service): City Planning 2.00 2.00 2.00 1.46 2.00 2.00 Health/Med Insurance 21.37 17.66 21.21 10.88 10.49 9.55 Public Safety Staffing, Fire Dept Equip & Maint. 4.00 4.00 30.00 30.00 30.00 30.00 Transfer to Stormwater - Landfill Project 0.77 1.25 1.24 — — — Transfer to Landfill Closure - Monitoring 2.41 2.32 1.91 1.60 — — Senior Transportation 1.00 1.00 1.00 0.77 — — Community Housing 3.00 5.00 8.00 5.89 — — TOTAL DEDICATED MILLS 34.55 33.23 65.36 50.60 42.49 41.55 DEBT SERVICE: Bozeman Public Safety Center GO Bonds 18.31 15.27 15.38 10.15 8.96 7.76 Park & Trail G.O.Bonds 8.31 6.96 7.00 4.49 4.64 3.55 Library G.O. Bonds 2.13 — — — — — Fire Station #2 G.O. Bonds — — 0.97 2.18 2.68 3.26 Rec G.O. Bonds * to be issued in FY2024 — — — — — — TOTAL DEBT SERVICE 28.75 22.23 23.35 16.82 16.28 14.57 TOTAL MILLS LEVIED 169.48 154.12 204.50 150.72 151.77 142.12 Percentage Change in Mills -9.9 % -8.2 % 29.7 % -34.9 % 0.5 % -40.5 % TOTAL PROPERTY TAXES LEVIED $ 21,953,931 $ 23,943,004 $ 32,675,419 $ 37,252,252 $ 38,610,440 $ 43,406,006 Percentage Change in Dollars -7.1 % 9.1 % 36.5 % 14.0 % 3.6 % 12.4 % 37 Debt Proceeds make up 13% of budgeted revenue over the biennium. These projections are based on the projects that the City intends to debt fund. Over the two years, projects of significant nature include: •Fire Station 4 (GF355) - $18.0 million •Shops Complex (SHOPS) - $13.0 million •Water Reclamation Facility Base Hydraulic Project, Phases 1 & 2 (WW129, WW131) - $10.1 million More information on planned capital expenditures can be found in the Capital Improvement Plan section of this document on page 211, including an indication of which projects are planned to be debt funded. Transfers In together account for 12% of the budgeted revenues. This category represents the movement of resources between City funds, including internal charges. The City maintains three Internal Service Funds (ISFs): Health-Medical Insurance, Vehicle Maintenance, and Public Works Administration. Internal Charges cover the cost of services provided by one fund to another and are allocated based on the proportional usage of these services. The revenue for internal services is budgeted according to the cost of providing these services, which is distributed among the funds based on their share of service usage. For example, the projected internal charges in the Public Works Administration Fund for the biennium are based on the anticipated cost to operate the ISF over two years. Intergovernmental revenues amount to 9% of anticipated revenues. The majority of this revenue comes from the State, including $11.0 million in State Entitlement Share revenue which is the City's apportionment of taxes and fees collected at the State level. The State also remits Gas Tax to cities, which is estimated in the budget to be $5.7 million over the biennium. Other revenues included in this category are Bozeman's portion of motor vehicle taxes and funding for the library, collected and remitted by Gallatin County. Revenue projections for these funding sources are based on reporting from the State and trend analysis. The City applies a conservative inflationary increase to previous collections. Other revenues in this category include state and federal grants. Projections are based on awarded grant funding. Licenses and Permits, making up 3% of budgeted revenues, are from the collection of permit fees. These revenues include fees for business licenses, parking permits, building permits, and street cut permits. Projected revenue for licenses and permits is based on historical trends and permit fee changes. Miscellaneous Revenue, accounting for the final 3%, is made up of primarily of cash in lieu of parks and infrastructure. Projections for miscellaneous revenue vary year to year based on specific projects. 38 City-wide Appropriations Appropriations in the 2025 Biennium Adopted 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. Appropriations in the 2025 Biennium Adopted Budget total $485.1 million. In Fiscal Year (FY) 25, budgeted appropriations total $243.9 million, an increase of 11.2 million or approximately 5% over FY24 Projected. In Fiscal Year (FY) 26, budgeted appropriations total $241.2 million, a decrease of $2.7 million or approximately 1.1% over FY25. The graph below shows the relative percentage of the budgeted expenditures for all funds included in the 2025 Biennium Adopted Budget. Appropriation by Type for All Funds Salaries & Benefits 30% Operations & Maintenance 23% Capital Outlay 31% Debt Service/Loans 5% Transfers Out 11% Salaries & Benefits The 2025 Biennium Adopted Budget includes 29.12 new FTE in FY25 and 13.00 in FY26. See the Full-Time Equivalents Schedule for complete list of staffing changes on page 46. Other changes are a result of bargaining unit contracts, anticipated salary adjustments, and increases to the cost of providing benefits. The FY24 Projections shown in the following pages also include vacancy savings realized so far this year. Capital The greatest portion of appropriated funds is budgeted for Capital Outlay. Significant capital projects include $18 million for Fire Station 4, $13.7 million for the Shops Complex, and $10.1 million for the Water Reclamation Facility Based Hydraulic project. See the Capital Improvements Program section on page 215 for detailed list of planned capital outlay and a link to the Capital Improvement Program. Operations Operations & maintenance costs are primarily made up of contracted services. The next largest category is project contributions, most of which are in urban renewal districts (URDs). The urban renewal district annual work plans were adopted by City Commission on May 14, 2024 and links to the adopted work plans can be found on page 166. Community Housing ($4.3 million) and the City Commission ($1.0 million) departments make up the remaining contributions. Insurance is the third largest category at 17% followed closely by supplies & materials at 15%. Operations & Maintenance Costs for All Funds Contracted services 29% Project contributions (housing, URD, nonprofits) 20% Insurance 17% Supplies & materials 15% Utilities 8% Maintenance 3% Travel/training 2%Taxes & assessments 2% Other 4% Transfers Transfers are a category of expenditures that result in revenues in a different City fund. Transfers are mostly made up of internal charges for services that support the Internal Service Funds like Vehicle Maintenance. 39 City-wide Operating Expenditure Trends Operating expenditures are total expenditures, minus Capital Outlay, Transfers Out, and City Commission approved grant funding to outside agencies. Operating expenditures are more representative of the true changes to City budgets over time. Fluctuations in major capital projects cause significant swings in year to year budgets. Transfers to other funds are also excluded since they are not truly expenditures on a City-wide level. Appropriations reserved for grants to other agencies also fluctuate significantly from year to year depending on availability of funding. Operating expenditure increases of 13.7% in FY25 and 6.1% in FY26 are primarily a result of increases to Personnel costs due to a reduction in anticipated vacancy savings, collective bargaining agreements, health insurance cost increases, and newly budgeted positions. Inflationary increases are included in Operations budgets for contracts for services like consulting, janitorial, software, and others. The increase in FY26 is offset by reductions primarily in consulting as the City anticipates completing a number of significant projects in FY25 or carrying those funds into FY26. City-wide Operating Expenditure Trends $97.5M $111.4M $126.7M $134.5M Operating Expenditures FY23 FY24 Projected FY25 Budget FY26 Budget $0.0M $50.0M $100.0M $150.0M 40 Estimated Residential Impact Summary It is estimated that a typical single-family residential property owner will see an increase of 6.7% per year in total taxes and assessments. That equates to $18.05 per month in FY25 and $19.34 per month in FY26. This estimated annual service cost is based on a 7,500 square foot lot with an average water usage of 7.5 HCF per month. Property tax estimates include a 3% growth in the City's certified taxable value. It also assumes a taxable assessed value (TAV) of $652,100, the median value for a single-family residential home in FY24, plus an estimated 3% increase in TAV in FY25, and a 14% increase in FY26. Actual increases in taxable values are determined by the Department of Revenue and Montana State Statute and will be determined later in the calendar year. Estimates are based on historical median values by year in Bozeman City limits. Estimated Annual Service Cost for a Household Based on Taxable Value of $652,100 (FY24) +3% in FY25 + 14% in FY26 7,500 SQFT lot with water use of 7.5-HCF Fiscal Year (FY) 24 Fiscal Year (FY) 25 Budget Fiscal Year (FY) 26 Budget FY25 Increase $ FY26 Increase $ FY25 % Change FY26 % Change Property Taxes $ 1,326.84 $ 1,376.24 $ 1,469.03 $ 49.40 $ 92.79 3.7 % 6.7 % Street Assessment 284.31 292.84 301.62 8.53 8.78 3.0 % 3.0 % Arterial Street Assessment 60.08 61.88 63.74 1.80 1.86 3.0 % 3.0 % Tree (Forestry) Assessment 30.53 31.45 32.39 0.92 0.94 3.0 % 3.0 % Parks & Trails Assessment 208.67 214.94 221.39 6.27 6.45 3.0 % 3.0 % Water Service 477.78 535.11 588.62 57.33 53.51 12.0 % 10.0 % Sewer Service 593.46 664.68 717.85 71.22 53.17 12.0 % 8.0 % Stormwater Service 54.36 55.99 57.67 1.63 1.68 3.0 % 3.0 % Garbage Service 195.12 214.63 227.51 19.51 12.88 10.0 % 6.0 % Annual Total $ 3,231.15 $ 3,447.76 $ 3,679.82 $ 216.61 $ 232.06 6.7 % 6.7 % Monthly Total $ 269.26 $ 287.31 $ 306.65 $ 18.05 $ 19.34 41 Page Intentionally Left Blank 42 2025 Biennium Adopted Budget Summary of Changes in Fund Balance Beginning fund balance are residual funds brought forward from the previous year. Ending fund balance is calculated by adding revenues to the beginning fund balance and subtracting expenditures. More information on types of fund balance can be found in the Glossary of Key Terms, beginning on page 245. Beginning Fund Balance 2025 Biennium Revenues 2025 Biennium Expenditures Net Change Ending Fund Balance % Change in Fund Balance Governmental Major Funds General Fund 15,336,100 115,290,700 117,946,900 (2,656,200) 12,679,900 (17.32) % Nonmajor in Aggregate 58,680,500 169,710,000 200,796,300 (31,086,300) 27,594,200 (52.98) % Total Governmental 74,016,600 285,000,700 318,743,200 (33,742,500) 40,274,100 (45.59) % Proprietary Major Funds Water Funds 30,501,200 43,653,000 47,167,700 (3,514,700) 26,986,500 (11.52) % Wastewater Funds 8,563,200 45,274,300 50,081,400 (4,807,100) 3,756,100 (56.14) % Nonmajor in Aggregate 4,533,300 65,806,500 69,087,100 (3,280,600) 1,252,700 (72.37) % Total Proprietary 43,597,700 154,733,800 166,336,200 (11,602,400) 31,995,300 (26.61) % Total 117,614,300 439,734,500 485,079,400 (45,344,900) 72,269,400 (38.55) % The following pages include detailed changes in fund balance by fund and detailed explanations of the changes. 43 2025 Biennium Adopted Budget Changes in Fund Balance by Fund Beginning fund balance are residual funds brought forward from the previous year. Ending fund balance is calculated by adding revenues to the beginning fund balance and subtracting expenditures. More information on types of fund balance can be found in the Glossary of Key Terms, beginning on page 245. Fund Beginning Fund Balance 2025 Biennium Resources 2025 Biennium Appropriations Net Change Ending Fund Balance % Change in Fund Balance Analysis of Changes > 10% and >$10,000 General Fund General Fund 15,336,100 115,290,700 117,946,900 (2,656,200) 12,679,900 (17.3)% Majority of use of fund balance is for a loan to Solid Waste fund which will be repaid over 5-10 years depending on the results of the Solid Waste fee study. One time capital projects are also funded with fund balance. Total General Fund 15,336,100 115,290,700 117,946,900 (2,656,200) 12,679,900 (17.3)% Special Revenue Funds American Rescue Plan — — — — — N/A Health-Medical Insurance 486,400 6,026,000 6,512,400 (486,400) — (100.0)% This fund is not intended to carry fund balance. We levy mills to cover the cost of health insurance for governmental fund employees. Fund balance results from vacancy savings, which reduces the amount we need to levy in future years. Building Inspection Fund 1,019,300 10,882,200 10,071,900 810,300 1,829,600 79.5%Anticipated growth of reserves in the Building Fund. Community Development/Planning 2,891,400 6,482,100 7,696,700 (1,214,600) 1,676,800 (42.0)%Anticipated use of fund balance to help spread permit fee increases over time. Community Housing Fund 1,780,600 2,277,400 4,058,000 (1,780,600) — (100.0)% The Community Housing Fund is used to build up fund balance to support large development projects. The budget assumes projects are identified and all available funds are spent in the biennium. Spending on projects requires additional City Commission approval. Fire Department Equipment 651,400 2,270,300 2,173,700 96,600 748,000 14.8%Anticipated growth in reserves in the Fire Department Equipment Fund. Fire Impact Fee 339,400 1,344,900 173,200 1,171,700 1,511,100 345.2%Impact fees can only be used for growth related capital improvement projects. Fund balance is intended to build until larger projects can be funded. Parks & Trails District 2,793,100 14,737,700 17,321,200 (2,583,500) 209,600 (92.5)%Anticipated use of fund balance to help hold assessment increases to 3%. Park Land Trust 2,231,700 1,728,200 1,068,800 659,400 2,891,100 29.5%Cash in lieu of park land is accounted for in this fund. Fund balance builds until projects are identified that benefit the areas that have paid in. Tree Maintenance District 476,400 2,040,600 2,288,500 (247,900) 228,500 (52.0)%Anticipated use of fund balance to help hold assessment increases to 3%. Gas Tax Fund — — — — — N/A Street Arterial Construction District 3,560,000 10,209,200 13,375,000 (3,165,800) 394,200 (88.9)%Anticipated use of fund balance to help hold assessment increases to 3%. Street Impact Fee 17,211,800 27,359,000 38,658,100 (11,299,100) 5,912,700 (65.6)%Impact fees can only be used for growth related capital improvement projects. Fund balance is intended to build until larger projects can be funded. Street Maintenance District 3,616,500 25,086,000 27,984,700 (2,898,700) 717,800 (80.2)%Anticipated use of fund balance to help hold assessment increases to 3%. MPO 417,500 1,015,700 1,217,900 (202,200) 215,300 (48.4)% The budget assumes we receive the entire federal grant allocation available to the MPO in FY24, resulting in a fund balance beginning the biennium. All money must be spent on eligible MPO projects. Department Special Revenue Funds 3,547,400 1,219,500 1,404,200 (184,700) 3,362,700 (5.2)% Lighting Districts 415,400 629,400 1,044,800 (415,400) — (100.0)%Anticipated use of fund balance to help hold assessment increases down. Downtown Improvement District 5,600 528,500 529,300 (800) 4,800 (14.3)% 44 Fund Beginning Fund Balance 2025 Biennium Resources 2025 Biennium Appropriations Net Change Ending Fund Balance % Change in Fund Balance Analysis of Changes > 10% and >$10,000 Urban Renewal Districts 10,820,800 11,849,600 22,010,600 (10,161,000) 659,800 (93.9)% URD funds build up fund balance to support larger projects to improve the areas. The budget assumes projects are identified and all available funds are spent in the biennium. Spending on projects requires additional City Commission approval. Total Special Revenue Funds 52,264,700 125,686,300 157,589,000 (31,902,700) 20,362,000 (61.0)% Debt Service Funds GO Bonds (330,000) 8,586,600 8,271,400 315,200 (14,800) (95.5)%Budget assumes collection of property taxes in excess of debt service budgeted to gradually recover negative fund balance. URD Bonds — 1,489,300 1,489,300 — — N/A Special Improvement Districts (SIDs) 1,810,700 1,157,700 541,800 615,900 2,426,600 34.0%Assessment revenue from SIDs is accounted for in this fund and used to pay debt service if issued, or to cash flow future SIDs. SID Revolving Fund 623,100 — — — 623,100 —% Total Debt Service Funds 2,103,800 11,233,600 10,302,500 931,100 3,034,900 44.3% Construction Funds Capital Projects 2,396,200 32,583,200 32,904,800 (321,600) 2,074,600 (13.4)%Anticipated use of fund balance on capital projects and to spread rate increases over time. Total Capital Projects Funds 2,396,200 32,583,200 32,904,800 (321,600) 2,074,600 (13.4)% Enterprise Funds Water Fund 30,501,200 43,653,000 47,167,700 (3,514,700) 26,986,500 (11.5)% Anticipated use of fund balance on capital projects and to spread rate increases over time. Fund balance also includes impact fees which can only be used for growth related capital improvement projects. Wastewater Fund 8,563,200 45,274,300 50,081,400 (4,807,100) 3,756,100 (56.1)% Anticipated use of fund balance on capital projects and to spread rate increases over time. Fund balance also includes impact fees which can only be used for growth related capital improvement projects. Stormwater Fund 582,600 5,945,600 6,317,300 (371,700) 210,900 (63.8)%Anticipated use of fund balance to reduce rate impacts. Solid Waste Fund 155,600 21,416,700 21,530,300 (113,600) 42,000 (73.0)%Anticipated use of fund balance until a fee study can be conducted. Parking Fund 1,375,100 2,389,900 3,551,000 (1,161,100) 214,000 (84.4)%Anticipated use of fund balance until a fee study can be conducted, and to reconstruct the Rouse Lot. Total Enterprise Funds 41,177,700 118,679,500 128,647,700 (9,968,200) 31,209,500 (24.2)% Internal Service Funds Health-Medical Insurance ISF — 14,871,000 14,871,000 — — N/A Public Works Administration 2,396,000 15,589,400 17,199,600 (1,610,200) 785,800 (67.2)%ISFs are paid for by other departments through internal charges for services. Fund balance is used to reduce those charges. Vehicle Maintenance 24,000 5,593,900 5,617,900 (24,000) — (100.0)% Total Internal Service Funds 2,420,000 36,054,300 37,688,500 (1,634,200) 785,800 (67.5)% Permanent Funds Cemetery Perpetual Care 1,915,800 206,900 — 206,900 2,122,700 10.8%Fund balance is accumulated to pay for the Cemetery once it is full and no longer collecting fees for services. Total Permanent Funds 1,915,800 206,900 — 206,900 2,122,700 10.8% Total All Funds 117,614,300 439,734,500 485,079,400 (45,344,900) 72,269,400 (38.6)% 45 2025 Biennium Adopted Budget 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. The 2025 Biennium Adopted Budget includes 29.12 new FTE in FY25 and 13.00 in FY26. Short-term workers are not included in this schedule. FY23 FY24 FY25 Adds FY25 FY26 Adds FY26 General Government City Manager 8.00 9.00 3.00 12.00 — 12.00 City Attorney 13.00 14.00 1.25 15.25 1.00 16.25 Finance 8.25 10.25 2.00 12.25 — 12.25 Facilities Management 8.00 9.50 1.00 10.50 1.00 11.50 Information Technology 9.00 10.00 — 10.00 1.00 11.00 Human Resources 6.00 6.00 1.00 7.00 — 7.00 Planning 21.00 20.00 — 20.00 1.25 21.25 Municipal Court 12.25 12.25 — 12.25 — 12.25 Subtotal - General Govt 85.50 91.00 8.25 99.25 4.25 103.50 Public Safety Police 83.30 88.80 7.00 95.80 — 95.80 Fire 48.00 51.00 1.00 52.00 — 52.00 Building Inspection 23.25 23.25 2.00 25.25 0.25 25.50 Parking 6.17 5.82 1.00 6.82 — 6.82 Subtotal - Public Safety 160.72 168.87 11.00 179.87 0.25 180.12 Public Works Public Works Admin 31.25 30.25 2.00 32.25 2.50 34.75 Street Maintenance 26.10 26.10 2.00 28.10 2.00 30.10 Metropolitan Planning Org 1.00 1.00 2.00 — 2.00 Stormwater 8.75 8.75 — 8.75 — 8.75 Water 31.55 32.55 1.00 33.55 — 33.55 Wastewater 27.45 27.45 — 27.45 — 27.45 Solid Waste 21.40 21.40 1.00 22.40 — 22.40 Vehicle Maintenance 9.50 9.50 — 9.50 2.00 11.50 Subtotal - Public Works 156.00 157.00 7.00 164.00 6.50 170.50 Public Welfare Parks & Recreation 55.16 60.16 1.62 61.78 2.00 63.78 Library 26.87 26.87 1.25 28.12 — 28.12 Neighborhood Services 4.85 — 4.85 — 4.85 Economic Development 3.83 3.83 — 3.83 — 3.83 Sustainability 3.00 3.00 — 3.00 — 3.00 Subtotal - Public Welfare 88.86 98.71 2.87 101.58 2.00 103.58 Total Employees 491.08 515.58 29.12 544.70 13.00 557.70 46 2025 Biennium Budget Explanation of New Full-time Equivalent (FTE) Adds Position Title(s)Explanation General Government City Manager 3.00 Graphic Designer (1 FTE), Belonging in Bozeman Program Coordinator (1 FTE), Records Coordinator (1 FTE) To enhance communications with the public, implement the Belonging in Bozeman Plan, and add capability to maintain records promptly. City Attorney 2.25 Assistant City Attorney (1 FTE), Legal Intern (0.25 FTE), Procurement/Contracts Analyst (1 FTE) To expand capacity to do more proactive work and ensure compliance with procurement and contracting policies and laws Finance 2.00 Budget Analyst (2 FTE) To expand department capacity to do more proactive work including participation in fee studies, more robust financial modeling, and provide more support for departments in budget management Facilities Management 2.00 Facilities Worker (1 FTE), Project Coordinator (1 FTE) To increase coordination and capacity to respond to internal service requests and provide additional support in project management for significant construction projects Information Technology 1.00 Cyber Security Specialist (1 FTE)To ensure security of the City's networks and data Human Resources 1.00 HR Associate - Recruitment (1 FTE)To expedite filling of vacant and new positions Planning 1.25 Planner III (1 FTE), Systems Analyst/Special Projects (0.25 FTE) Recent state legislation has increased the workload for Planning staff, resulting in the need for additional capacity. Public Safety Police 7.00 Police Officer (3 FTE), Detective (1 FTE), Community Liaison (1 FTE), Special Services Supervisor (1 FTE), Special Services Officer (1 FTE) To support the Belonging in Bozeman plan, expand the capacity of the patrol and detective divisions, and to add non-sworn positions to respond to incidents that may not require law enforcement Fire 1.00 Battalion Chief-Support Service (1 FTE)To support accreditation of the Fire Department and expand capacity to train and develop staff Building Inspection 2.25 Assistant Building Official (1 FTE), Plans Examiner - Fire (1 FTE), Systems Analyst/Special Projects (0.25 FTE) To support increasing volume of permits, reviews, and inspections on increasingly complex construction types Parking 1.00 Parking Compliance Officer (1 FTE)To meet increasing demand from the community for parking management services in neighborhoods Public Works Public Works Admin 4.50 Engineering Technician (1 FTE), Engineer I/II - Transportation (1 FTE), Systems Analyst/Special Projects (0.5 FTE), GIS Analyst (1 FTE), Admin Assistant I (1 FTE) To support increasing workload in permitting, traffic impact analysis, and engineering studies Street Maintenance 4.00 Streets Operator (2 FTE), Streets Operator (2 FTE)Street maintenance aims to return to 1 FTE per 13 miles of roadway. The number of miles has grown in recent years to 1 per 18 miles. Metropolitan Planning Org 1.00 Planner I/II (1 FTE)To manage new Metropolitan Planning Organization (MPO) projects Water 1.00 Engineer I/II (1 FTE)To support projects to expand and protect the City's water supply Solid Waste 1.00 Admin Assistant I (1 FTE)To support existing administrative work and roll out of organics program in FY25 Vehicle Maintenance 2.00 Mechanic (2 FTE)To address City vehicle downtimes and increase level of service Public Welfare Parks & Recreation 3.62 Assistant Parks & Rec Director (1 FTE), Rec Leader I Reclass (1.24 FTE), Lifeguard II (1.38 FTE) To support existing programs and expand departmental capabilities to focus on policy, partnerships, leadership, and strategic planning Library 1.25 Librarian I - Collections (1.25 FTE)To manage growing physical and e-resources in the library Total Employees 42.12 47 Page Intentionally Left Blank 48 Adopted Budgets 49 General Fund The General Fund budget will be presented multiple times throughout this document. Departmental expenditures in the General Fund will be presented again in more detail in the General Government, Public Safety, and Public Welfare Service Areas. 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. High Level Budget Summary by Appropriation Category General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 15,298,900 $ 15,336,100 $ 15,336,100 Total Revenues $ 53,568,452 $ 56,660,200 $ 57,024,700 $ 58,266,000 $ 115,290,700 Expenditures by Category Salaries & Benefits $ 28,117,588 $ 31,980,400 $ 38,276,000 $ 41,173,000 $ 79,449,000 Operations & Maintenance 9,122,838 12,135,700 12,558,900 12,319,300 24,878,200 Capital Outlay 3,107,361 10,500,200 3,608,800 2,193,300 5,802,100 Debt Service/Loans 78,978 67,300 349,200 811,900 1,161,100 Interfund Loans — — 1,186,900 — 1,186,900 Transfers Out 6,894,414 1,939,400 2,683,600 2,786,000 5,469,600 Total Expenditures $ 47,321,178 $ 56,623,000 $ 58,663,400 $ 59,283,500 $ 117,946,900 Reserved for Future Expenditures $ — $ 3,559,600 $ (712,400) $ 2,847,200 Undesignated Ending Balance $ 15,336,100 $ 10,137,800 $ 9,832,700 $ 9,832,700 General Fund Revenues The 2025 Biennium Adopted Budget includes an estimate of $115.3 million in total General Fund revenue over the two year period, with the largest sources of external revenue coming from property taxes, internal charges for services, and state shared revenue. Nineteen percent of General Fund revenue comes from transfers in from other funds, which includes the mill levy that supports payments for health and medical 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 Taxes, 55% State Shared, 10% Licenses & Permits, 1% Intergovernmental, 1% County Shared, 6% Charges for Services, 2% Fines & Forfeitures, 2% Transfers In, 6% Internal Charges, 13% Debt Proceeds, 4% 50 General Fund Appropriations The 2025 Biennium Adopted Budget General Fund budget has $117.9 million in appropriated expenditures over the two-year period. Salaries & Benefits expenses are the highest portion at $79.4 million, followed by operations at $24.9 million. Capital outlays are $5.8 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% Operations & Maintenance 21% Capital Outlay 5% Debt Service/Loans 1% Interfund Loans 1% Transfers Out 5% Appropriations by department shows the greatest portion of anticipated General Fund expenses is for Public Safety, with Police at 27% followed by Fire at 16%. Non-Departmental is where funding has been allocated for the City Commission to approve grants to non-profit agencies that serve Bozeman citizens. Non-departmental also includes city-wide insurance payments. General Fund Operating Appropriations by Department (Salaries & Benefits, Operations & Maintenance, & Capital Outlay) City Commission; 2% City Manager; 4% City Clerk; 1% Municipal Court; 4%City Attorney; 5% Finance; 4% Facilities; 7% Information Technology; 5% Human Resources; 2% Police; 27% Fire; 16% Cemetery; 2% Library; 7% Recreation; 6% Neighborhood Services; 2% Economic Development; 1% Sustainability; 2% Non-Departmental; 3% 51 General Fund Reserves 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 2025 Biennium Adopted Budget is in compliance with this policy. The General Fund is expected to have $9.8 million of undesignated reserves or 16.9% of revenues at the end of the 2025 Biennium. Designated reserves for future capital projects and programs are $2.8 million. Designated reserves are kept for a future Quick Response Vehicle Program in the Fire Department. General Fund Six Year Financial Model Revenue Expenditures Ending Fund Balance 2023 2024 Projected FY25 Budget FY26 Budget FY27 Projection FY28 Projection FY29 Projection FY30 Projection 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 52 2025 Biennium Adopted Budget General Fund - by Category General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 15,298,900 $ 15,336,100 $ 15,336,100 Revenues Taxes 23,164,839 27,014,900 29,734,800 33,570,400 63,305,200 State Shared 5,122,791 5,340,200 5,453,200 5,568,600 11,021,800 Licenses & Permits 381,922 474,200 500,900 529,800 1,030,700 Intergovernmental 23,496 494,600 674,400 749,700 1,424,100 County Shared 3,339,118 3,361,700 3,396,600 3,443,200 6,839,800 Charges for Services 941,649 1,184,900 1,215,200 1,246,400 2,461,600 Fines & Forfeitures 1,009,840 946,100 952,800 959,500 1,912,300 Interest Income 171,669 100,000 100,000 100,000 200,000 Miscellaneous Revenue 3,126,126 221,600 221,600 221,600 443,200 Transfers In 10,854,877 6,989,300 4,124,400 3,350,500 7,474,900 Internal Charges 5,365,523 6,384,700 7,139,500 7,631,700 14,771,200 Debt Proceeds 66,602 4,148,000 3,511,300 894,600 4,405,900 Interfund Loan Proceeds — — — — — Total Revenues $ 53,568,452 $ 56,660,200 $ 57,024,700 $ 58,266,000 $ 115,290,700 Expenditures by Category Salaries & Benefits $ 28,117,588 $ 31,980,400 $ 38,276,000 $ 41,173,000 $ 79,449,000 Operations & Maintenance 9,122,838 12,135,700 12,558,900 12,319,300 24,878,200 Capital Outlay 3,107,361 10,500,200 3,608,800 2,193,300 5,802,100 Debt Service/Loans 78,978 67,300 349,200 811,900 1,161,100 Interfund Loans — — 1,186,900 — 1,186,900 Transfers Out 6,894,414 1,939,400 2,683,600 2,786,000 5,469,600 Total Expenditures $ 47,321,178 $ 56,623,000 $ 58,663,400 $ 59,283,500 $ 117,946,900 Reserved for Future Expenditures $ — $ 3,559,600 $ (712,400) $ 2,847,200 Undesignated Ending Balance $ 15,336,100 $ 10,137,800 $ 9,832,700 $ 9,832,700 53 2025 Biennium Adopted Budget General Fund - by Department General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget 2025 Biennium Adopted Budget Beginning Balance $ 15,298,900 $ 15,336,100 $ 15,336,100 Revenues Taxes $ 23,164,839 $ 27,014,900 $ 29,734,800 $ 33,570,400 $ 63,305,200 State Shared $ 5,122,791 $ 5,340,200 $ 5,453,200 $ 5,568,600 $ 11,021,800 Licenses & Permits 381,922 474,200 500,900 529,800 1,030,700 Intergovernmental 23,496 494,600 674,400 749,700 1,424,100 County Shared 3,339,118 3,361,700 3,396,600 3,443,200 6,839,800 Charges for Services 941,649 1,184,900 1,215,200 1,246,400 2,461,600 Fines & Forfeitures 1,009,840 946,100 952,800 959,500 1,912,300 Interest Income 171,669 100,000 100,000 100,000 200,000 Miscellaneous Revenue 3,126,126 221,600 221,600 221,600 443,200 Transfers In 10,854,877 6,989,300 4,124,400 3,350,500 7,474,900 Internal Charges 5,365,523 6,384,700 7,139,500 7,631,700 14,771,200 Debt Proceeds 66,602 4,148,000 3,511,300 894,600 4,405,900 Total Revenues $ 53,568,452 $ 56,660,200 $ 57,024,700 $ 58,266,000 $ 115,290,700 Expenditures by Department City Commission $ 281,943 $ 414,300 $ 775,100 $ 947,300 $ 1,722,400 City Manager 1,368,502 2,149,900 2,150,700 2,541,800 4,692,500 City Clerk 382,682 400,900 649,400 623,700 1,273,100 Municipal Court 1,393,264 1,577,500 1,922,100 2,016,600 3,938,700 City Attorney 2,000,717 2,294,100 2,665,400 2,855,900 5,521,300 Finance 1,187,979 1,522,300 2,055,500 2,176,300 4,231,800 Facilities 2,341,719 5,308,000 3,559,700 3,826,900 7,386,600 Information Technology 2,431,181 2,450,000 2,357,300 2,755,700 5,113,000 Human Resources 845,700 961,700 1,193,500 1,249,400 2,442,900 Police 10,769,839 11,938,200 15,020,300 14,970,100 29,990,400 Fire 7,237,539 7,819,200 8,816,400 9,247,100 18,063,500 Cemetery 656,222 1,138,400 1,154,000 751,000 1,905,000 Library 3,074,837 3,388,100 3,991,600 3,878,500 7,870,100 Recreation 3,833,472 8,837,600 3,803,600 3,259,400 7,063,000 Neighborhood Services — 364,400 886,100 908,300 1,794,400 Economic Development 473,844 478,100 524,000 539,600 1,063,600 Sustainability 384,931 1,043,400 1,102,900 1,297,000 2,399,900 Non-Departmental 1,683,416 2,530,200 1,816,100 1,841,000 3,657,100 Debt Service/Loans 78,978 67,300 349,200 811,900 1,161,100 Interfund Loans $ — $ — $ 1,186,900 $ — $ 1,186,900 Transfers Out $ 6,894,414 $ 1,939,400 $ 2,683,600 $ 2,786,000 $ 5,469,600 Total Expenditures $ 47,321,178 $ 56,623,000 $ 58,663,400 $ 59,283,500 $ 117,946,900 Reserved for Future Expenditures $ — $ 3,559,600 $ (712,400) $ 2,847,200 Undesignated Ending Balance $ 15,336,100 $ 10,137,800 $ 9,832,700 $ 9,832,700 54 Adopted Budgets by Department The remaining adopted budgets are organized first by Service Area and then by Department. In many cases, a department also corresponds with a self-balancing fund. 55 Page Intentionally Left Blank 56 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 responsible for financial planning, budgeting, accounting, and treasury, including utility billing. The Finance Department provides support to other departments for all financial matters. Facilities Management (Strategic Services) - Facilities Management is responsible for all facility needs throughout the organization, including routine maintenance, 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 legal 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. 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. 57 City Commission (General Fund) 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. 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 and internal transfers, making up 2% of operating expenditures. City Commission 2%General Fund Department Goals 1.Dramatically increase transparency and create access to all city documents (Strategic Plan 1.1 Outreach) 2.The adopted biennial budget is guided by adopted plans and goals, including: o Foster and build public trust, support, and pride in local government o Develop a Tenant's Right to Counsel Program o Develop a comprehensive regional strategy on homelessness o Implement at least eight (8) recommendations from the Belonging in Bozeman Plan o Rework and restore a new Historic Preservation Policy - including trees and landmarks o Encourage the creation of Accessory Dwelling Units (ADUs) in our city through an ADU Incentive Program o Create an Affordable Housing Preservation Policy o Ramp up the SAFE Plan and become a Gold- level Bike Friendly Community o Create a Bozeman Creek Resiliency Plan Commission Member Term Mayor Terry Cunningham Elected Term: Jan., 2024 - Jan., 2026 Deputy Mayor Joey Morrison Elected Term: Jan., 2024 - Jan., 2026 Commission Jennifer Madgic Elected Term: Jan., 2024 - Jan., 2028 Commissioner Douglas Fischer Appointed Term: Nov., 2023 - Dec., 2025 Commissioner Emma Bode Appointed Term: June 4, 2024 - Dec., 2025 58 2025 Biennium Adopted Budget The City Commission budget is accounted for in the General Fund. City Commission General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 190,141 $ 207,600 $ 233,500 $ 247,500 $ 481,000 Operations & Maintenance 61,537 175,200 541,600 699,800 1,241,400 Capital Outlay 30,265 31,500 — — — Total Expenditures $ 281,943 $ 414,300 $ 775,100 $ 947,300 $ 1,722,400 Salaries & Benefits No FTE Changes Operations Beginning in FY25, City Commission's operating budget includes an annual $500k appropriation for Commission priorities and grants for community partners. At budget adoption, the City Commission allocated $360,000 of this funding in FY25 to Human Resource Development Council (HRDC) to support operations of the year-round warming center. Commission's operating budget fluctuates year to year based on the election cycle. With FY24 and FY26 being election years, the operating budget is elevated to cover election expenses. Capital None City Commission Budget by Category Salaries & Benefits 28% Operations & Maintenance 72% 59 City Manager(General Fund) 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. 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. Budget Allocation Funded by the General Fund and internal transfers, making up 4% of operating expenditures. 2025 Biennium Adopted Budget The City Manager's office is accounted for only in the General Fund. City Manager General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 1,030,775 $ 1,540,900 $ 1,502,900 $ 1,857,000 $ 3,359,900 Operations & Maintenance 326,149 609,000 647,800 684,800 1,332,600 Capital Outlay 11,578 — — — — Total Expenditures $ 1,368,502 $ 2,149,900 $ 2,150,700 $ 2,541,800 $ 4,692,500 Salaries & Benefits Addition of 2 FTE: •Graphic Designer (1 FTE) and Belonging in Bozeman Program Coordinator (1 FTE) in FY25 At budget adoption of the budget, the City Commission added a $250,000 transfer to Community Housing to be funded using vacancy savings, resulting in the decline in salaries & benefits shown between FY24 and FY25. More information on this and other amendments made by Commission can be found in the Summary of Changes from City Manager Recommended to Adopted Budget on page 34. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Inflationary increases to operating expenses. The budget also includes $30k for community outreach and education, some or all of which might be used for ballot education for a possible public safety mill levy later this year. During budget adoption, City Commission allocated $360,000 of the FY25 budget to grant to HRDC to ensure the warming center is operating and open year round. Capital None City Manager Budget by Category Salaries & Benefits 72% Operations & Maintenance 28% 60 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Hire City Manager and Assistant City Manager 1.4 A Well-Planned City 2.Hire Communications personnel 1.1 An Engaged Community 3.Implement Belonging in Bozeman Plan 1.3 A Safe, Welcoming Community 4.Build trust, both among City Staff and with the public 1.1 An Engaged Community 5.Continue to engage the community through engagement projects 1.1 An Engaged Community Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Percent Update Reports Delivered to City Commission On-Time 3,4 100%98%95%95%95%90% Percent Staff Satisfaction with Communication Delivery 2, 4 79%82%80%80%80%85% Percent of City Staff Attended "Talk It Up" Session with City Manager 4 70%4%63%63%62%85% 61 City Clerk (General Fund - 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. 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 and internal transfers, making up 1% of operating expenditures. 2025 Biennium Adopted Budget The City Clerk's Office is accounted for only in the General Fund. City Clerk General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 184,302 $ 223,300 $ 333,100 $ 353,000 $ 686,100 Operations & Maintenance 198,380 177,600 266,300 270,700 537,000 Capital Outlay — — 50,000 — 50,000 Total Expenditures $ 382,682 $ 400,900 $ 649,400 $ 623,700 $ 1,273,100 Salaries & Benefits Addition of 1 FTE: •Records Coordinator (1 FTE) in FY25 Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Reduction in FY24 Projection due to one-time expense for upgrade in high-definition streaming through the City's meeting streaming service in FY23. Increase in both years of biennium due to the addition of $50k for contracted scanning services. Contracted services through Laserfiche are also projected higher in both FY25 and FY26 as there is a greater need anticipated for record scanning and retention over the biennium. Capital Records Request Software (GF378) in FY25 for $50,000. See Capital Improvements Program section on page211 for a capital improvement program summary and a detailed list of City-wide planned projects. City Clerk Budget by Category Salaries & Benefits 54% Operations & Maintenance 42% Capital Outlay 4% 62 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Identify key systems that if integrated would improve efficiency and effectiveness 7.3 Best Practices, Creativity, and Foresight 2 Identify opportunities to improve collaboration between City departments and create subgroups on communications, community interactions, long-range planning, and other matters of common concern 7.3 Best Practices, Creativity, and Foresight Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Percent of Commission-Approved-for-Signature Documents Processed 1 90%9%99%75%75%99% Percent of Approved Documents Processed to Laserfiche within 30 Days 1 81%58%95%50%50%95% Percent Comcate Submissions Completed On Time 2 44%67%75%75%75%100% Average Comcate Submission Resolution Time (Days)1 12 3 3 3 3 3 63 Page Intentionally Left Blank 64 City Attorney(General Fund & Victim/ Witness Advocate Fund) 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. Major Objectives •To 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, management team 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. Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Continue to prioritize increasing the efficiency and effectiveness of the prosecution team 7.3 Best Practices, Creativity & Foresight 2.Prioritize cooperation with the Bozeman Police Department through coaching, preparing for trial, and shift briefings 1.7 A High Performance Organization 3.Continue to lead efforts to address issues related to the unhoused 3.2 Health & Safety Action 4.Prioritize efforts related to affordable housing 3.2 Health & Safety Action 5.Continue to protect the legal interests of and direct legal operations of the City 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Total Cases 1 1,278 1,497 1,795 1,970 2,165 N/A - Workload Indicator Completed Confidential Criminal Justice Information (CCJI) Requests 1 22 35 60 60 60 40 MMIA Claims Filed 5 32 39 40 40 40 25 65 Budget Allocation Funded mainly from the General Fund, making up 5% of the fund's operating expenditures. 2025 Biennium Adopted Budget City Attorney Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund General Fund $ 2,000,717 $ 2,294,100 $ 2,665,400 $ 2,855,900 5,521,300 Victim/Witness Advocate Fund 122,658 72,600 130,300 136,600 266,900 Total Expenditures 2,123,375 2,366,700 2,795,700 2,992,500 5,788,200 The General Fund is used to account for the majority of the City Attorney budget. General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 1,829,056 $ 2,015,100 $ 2,354,900 $ 2,599,200 $ 4,954,100 Operations & Maintenance 126,563 279,000 310,500 256,700 567,200 Capital Outlay 45,098 — — — — Total Expenditures $ 2,000,717 $ 2,294,100 $ 2,665,400 $ 2,855,900 $ 5,521,300 Salaries & Benefits Addition of 2.25 FTE: •Assistant City Attorney (1 FTE) and Legal Intern (0.25 FTE) in FY25 •Procurement/Contracts Analyst (1 FTE) in FY26 Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. City Attorney General Fund Budget by Category Salaries & Benefits 90% Operations & Maintenance 10% Operations Increase in FY24 Projection due to moving anticipated costs for case management software from capital projection to operating projection ($60k). Other increases due to scheduled computer replacements in FY24. Increase in FY25 for budgeted Telecom project ($50k) as well as planned desk replacements in City Hall ($18k). Telecom project is one-time planned cost which results in a reduction in FY26. Inflationary increases in FY26 have also been incorporated. Capital None 66 The Victim/Witness Advocate Fund is used to account for the salaries, benefits, and operating expenses to provide a Victim/Witness Advocate. Occasionally, the fund supports travel expenses for a victim to testify in trial. Per Montana Code Annotated (MCA)(46-18-236.7), the City is able to retain charges for payment of the expenses of a victim and witness advocate program. Code allows for $50 each misdemeanor and felony charge, which serves as the primary source of revenue for this fund. Victim/Witness Advocate Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 346,800 $ 342,500 $ 342,500 Revenues Fines & Forfeitures $ 59,429 $ 63,100 $ 63,100 $ 63,100 $ 126,200 Interest Income 8,831 5,200 5,200 5,200 10,400 Total Revenues $ 68,260 $ 68,300 $ 68,300 $ 68,300 $ 136,600 Expenditures Salaries & Benefits — 52,600 110,300 116,600 226,900 Operations & Maintenance 122,658 20,000 20,000 20,000 40,000 Total Expenditures $ 122,658 $ 72,600 $ 130,300 $ 136,600 $ 266,900 Ending Balance $ 342,500 $ 280,500 $ 212,200 $ 212,200 Salaries & Benefits No new FTEs. A Victim Services Coordinator was hired mid way through FY24. The increase in FY25 is based on a full year of personnel expenditures. FY26 increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Prior to FY24, the City was supporting a Victim Witness Program provided by Gallatin County. Beginning in FY24, the City created its own program and shifted expenditures appropriately to both Salaries & Benefits and Operations & Maintenance. Transitioning from providing match to supporting our own program resulted in a change in how expenses are accounted for as well as a reduction in overall cost of the program to the City. Capital None Victim/Witness Advocate Fund Budget by Category Salaries & Benefits 85% Operations & Maintenance 15% 67 Finance (General Fund) The Finance Department is responsible for financial planning, budgeting, accounting, and treasury, including utility billing. The Finance Department provides support to other departments for all financial matters. Budget Allocation Funded by the General Fund, making up 4% of operating expenditures. 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 2025 Biennium Adopted Budget The Finance Department is accounted for only in the General Fund. Finance General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 885,024 $ 1,016,100 $ 1,550,800 $ 1,659,300 $ 3,210,100 Operations & Maintenance 302,956 506,200 504,700 517,000 1,021,700 Total Expenditures $ 1,187,979 $ 1,522,300 $ 2,055,500 $ 2,176,300 $ 4,231,800 Salaries & Benefits Addition of 2 FTE: •Budget Analysts (2 FTE) in FY25 Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Decrease from FY24 Projected to FY25 due primarily to preparation of annual financial report in-house, offset by increases to contracted services budgets to support ongoing contract with municipal advisors, and finance's share of the Enterprise Resource Management (ERP) contract. Increase of 2.6% from FY25 to FY26 due to contracted services anticipated inflation. Finance Budget by Category Salaries & Benefits 76% Operations & Maintenance 24% 68 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Improve financial reporting internally 7.3 Best Practices, Creativity & Foresight 2.Modernize finance processes, continuous improvement 7.3 Best Practices, Creativity & Foresight 3.Cross train staff, increasing department resiliency 7.2 Employee Excellence 4.Identify long-term revenue solutions for General Fund, Planning Fund, Parking Fund, and others 7.5 Funding and Delivery of City Services Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Invoices Processed Annually 2 27,692 29,218 29,802 30,398 31,006 N/A - Workload Indicator Total Annual Budget 1 $158.3M $182.7M $318.0M $242.5M $241.7M N/A - Workload Indicator Utility Bills Issued & Processed Annually 2 205,092 208,259 212,424 216,673 221,006 N/A - Workload Indicator 69 Facilities(Strategic Services / General Fund) Facilities Management is responsible for all facility needs throughout the organization, including routine maintenance, 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. 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 7% of operating expenditures. 2025 Biennium Adopted Budget Facilities is accounted for only in the General Fund. Facilities General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 606,579 $ 762,900 $ 1,092,100 $ 1,167,200 $ 2,259,300 Operations & Maintenance 1,694,216 2,009,600 1,956,600 1,864,000 3,820,600 Capital Outlay 40,924 2,535,500 511,000 795,700 1,306,700 Total Expenditures $ 2,341,719 $ 5,308,000 $ 3,559,700 $ 3,826,900 $ 7,386,600 Salaries & Benefits Addition of 2 FTE: •Facilities Worker (1 FTE) in FY25 •Project Coordinator (1 FTE) in FY26 Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations FY24 was the first year of full operating costs of the Bozeman Public Safety Center. Reductions in FY25 and FY26 are due to a modification in budgeting practices to align with historical actuals. Inflationary costs have been incorporated in both years of the biennium. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Facilities Budget by Category Salaries & Benefits 31%Operations & Maintenance 52% Capital Outlay 18% 70 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Manage construction activities in preparation of construction on Lindley Center, Bogert Pool, and Swim Center 3.4 Active Recreation 2.Oversee pre-construction of Fire Station 4 3.1 Public Safety 3.Continue to focus on priority repairs identified by Facility Condition Assessments 7.4 Performance Metrics 4.Continue to manage and maintain the organization's facilities 4.3 Strategic Infrastructure Choices Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Preventative Maintenance (percent of total work)3 27%32%34%34%34%40% Median Response Time for Service Requests (hours)4 3 4 4 4 4 <24 FCI Score: Emergency and Essential Services1 3 ND2 0.08 0.08 0.08 0.07 0.05 FCI Score: Core City Services and Functions 3 ND 0.11 0.10 0.09 0.08 0.08 FCI Score: Secondary Services and Functions 3 ND 0.32 0.32 0.18 0.18 0.10 71 1 Facility Condition Index (FCI) is a percentage score that measures a building's condition by comparing the cost of repairs to the building's replacement value 2 ND: No data available Information Technology (General Fund) 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. Budget Allocation Funded by the General Fund, making up 5% of operating expenditures. IT 5%General Fund 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. 2025 Biennium Adopted Budget The Information Technology Department is accounted for only in the General Fund. Information Technology (IT) General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 1,184,344 $ 1,282,700 $ 1,452,600 $ 1,677,600 $ 3,130,200 Operations & Maintenance 597,441 972,500 844,700 746,100 1,590,800 Capital Outlay 649,396 194,800 60,000 332,000 392,000 Total Expenditures $ 2,431,181 $ 2,450,000 $ 2,357,300 $ 2,755,700 $ 5,113,000 Salaries & Benefits Addition of Cyber Security Specialist (1 FTE) in FY26. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Reductions in FY25 and FY26 are due to timing of maintenance contracts and updated budgeting practices to split IT contracts between the funds and departments using the service. Updated budgeting more accurately accounts for annual Enterprise Resource Planning software resulting in a reduction to the IT budget. Not all quotes for future years were available for budget entry and future contracts could come in slightly above the biennium budget. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Information Technology Department Budget by Category Salaries & Benefits 61% Operations & Maintenance 31% Capital Outlay 8% 72 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Manage and operate the City’s enterprise applications, hardware, and networking services 7.3 Best Practices, Creativity & Foresight 2.Continue to push ADA Compliance 1.1 Outreach 3.Improve Emergency Preparedness: Update IT plan, finish Disaster Recovery Plan 3.1 Public Safety 4.Get Fire Station 2 operational 3.1 Public Safety 5.Move departmental drives to SharePoint, get all users on same version of Microsoft Office 7.3 Best Practices, Creativity & Foresight 6.Prepare for Enterprise Resource Planning (ERP) Software Replacement 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Emergency-Rated Service Request Response Time (Days)1 1.3 2.0 0.5 0.5 0.5 0.5 High-Rated Service Request Response Time (Days)1 5.6 6.8 1.0 1.0 1.0 1.0 Normal-Rated Service Request Response Time (Days)1 9.4 7.8 3.0 3.0 3.0 3.0 Low-Rated Service Request Response Time (Days)1 14.7 16.9 5.0 5.0 5.0 5.0 Percentage of Deployments Completed 1 56 % 100 % 100 % 100 % 100 % 100 % Number of City Staff per IT Full-Time Equivalent 1 59.86 64.11 64.11 59.97 55.97 75.00 73 Human Resources (General Fund) 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 legal information, sound recruitment practices, and protects the employment rights of the City and its employees. Budget Allocation Funded by the General Fund, making up 2% of the operating expenditures. HR 2%General Fund 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 2025 Biennium Adopted Budget The Human Resources Department is accounted for only in the General Fund. Human Resources General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 703,971 $ 758,400 $ 945,600 $ 1,002,700 $ 1,948,300 Operations & Maintenance 141,729 203,300 247,900 246,700 494,600 Total Expenditures $ 845,700 $ 961,700 $ 1,193,500 $ 1,249,400 $ 2,442,900 Salaries & Benefits Addition of 1 HR Associate for Recruitment in FY25 Other increases are based on anticipated increases to total compensation. Operations Addition of a software module to support hiring and onboarding, and a City-wide compensation study anticipated to kick off in FY25. Human Resources Budget by Category Salaries & Benefits 80% Operations & Maintenance 20% 74 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Increase internal staff capacity to adequately support all City departments 7.2 Employee Excellence 2.“Back to basics” – audits of internal processes and procedures to ensure accuracy and efficiency 7.3 Best Practices, Creativity & Foresight 3.Update City’s Employee Handbook and Hiring Practices 7.2 Employee Excellence 4.Implement a bi-weekly payroll process 7.3 Best Practices, Creativity & Foresight 5.Cross train and seek professional development for HR staff 7.2 Employee Excellence 6.Continue to attract, select, and hire the best candidates for job vacancies within the organization 7.2 Employee Excellence Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Average Recruitment Cycle Time (post-final offer)1 22 35 30 25 20 30 Turnover Rate 3 0.18 0.16 0.15 0.15 0.15 0.20 Selection Ratio3 6 0.15 0.27 0.15 0.15 0.15 0.15 Workers Compensation Modification Factor4 1 0.95 1.05 1.04 1.00 1.00 1.00 75 3 Ratio of the number of people hired to the number of minimally qualified applicants 4 The ratio of the City's actual workers' compensation claims compared to the expected costs for comparable organizations Municipal Court (General Fund) 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. Budget Allocation Funded mainly by the General Fund, Municipal Court makes up 4% of the operating expenditures. Municipal Court4% General Fund Major Objectives •Continue providing an up-to-date court docket •Utilize funding for the implementation of the BRIDGERS DUI Treatment Court. •Moving towards e-filing to facilitate filing efficiency 2025 Biennium Adopted Budget Municipal Court is accounted for only in the General Fund. Municipal Court General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 1,271,773 $ 1,389,100 $ 1,592,800 $ 1,652,600 $ 3,245,400 Operations & Maintenance 121,491 188,400 329,300 364,000 693,300 Total Expenditures $ 1,393,264 $ 1,577,500 $ 1,922,100 $ 2,016,600 $ 3,938,700 Salaries & Benefits No FTE changes. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations The overall driver of increases in FY24 and the 2025 biennium are related to the newly established BRIDGERS DUI Court. FY25 serves as the first full- year of costs associated with the program. These expenses will be covered by grant funding. FY26 operational increases are primarily due to expanding DUI court participant testing capacity. Municipal Court Budget by Category Salaries & Benefits 82% Operations & Maintenance 18% 76 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Complete courtroom technology installation in the Bozeman Public Safety Center 3.1 Public Safety 2.Provide high-level training for staff 7.2 Employee Excellence 3.Restructure staffing to support high-level projects 7.2 Employee Excellence 4.Develop partners in the community to support treatment courts 3.2 Health & Safety Action 5.Use the community liaison model with the treatment courts to increase equitable and inclusive outcomes 3.2 Health & Safety Action 6.Maintain efficient collection of fines and restitution 3.1 Public Safety Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Restitution Collected 6 110,423 153,696 130,000 160,000 165,000 N/A - Workload Indicator Officer Citations 6 5,452 4,753 6,500 6,500 6,500 N/A - Workload Indicator Total Citations 6 5,617 4,919 7,000 7,000 7,000 8,000 Number of Appeals Annually 5, 6 7 4 7 5 5 8 77 Planning Fund(Community Development Department) 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. 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 community. Planning Fund Financial Trends $4.0M $4.8M $2.8M $3.7M$3.4M $3.3M $3.9M $3.7M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Improve online resources for customers 7.1 Values-Driven Culture 2 Implement code updates, consistent with state law and Commission direction 7.3 Best Practices, Creativity & Foresight 3 Review and update cross-departmental processes 7.3 Best Practices, Creativity & Foresight 4 Initiate Land Use Plan 4.1 A Well-Planned City Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Average number of days a small project spends in 1st cycle of staff review5 1, 2, 3 11 13 12 14 14 15 Average number of days a large project spends in 1st cycle of staff review6 1, 2, 3 14 18 17 18 18 20 Total number of Planning applications submitted 2 461 215 225 275 300 450 78 5 Small projects – Administrative applications (Director decision)6 Large projects – Legislative applications (City Commission decision) 2025 Biennium Adopted Budget The Planning Fund is a special revenue fund that accounts for expenditures related to community planning and zoning operations. There are two major revenue sources for the fund: property taxes and planning fees. Planning fees are budgeted to increase by approximately 15% per year in the biennium to support staff and operations. Planning Fund (Community Development) Community Development/Planning Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,417,800 $ 2,891,400 $ 2,891,400 Revenues Taxes $ 319,373 $ 370,800 $ 619,100 $ 1,266,100 $ 1,885,200 Licenses & Permits 65,250 101,500 104,500 107,600 212,100 Intergovernmental 12,400 6,000 6,200 6,400 12,600 State Shared 134,472 149,500 152,700 155,900 308,600 Charges for Services 1,110,987 1,060,900 1,220,000 1,403,100 2,623,100 Interest Income 9,872 14,000 14,400 14,800 29,200 Miscellaneous Revenue 59,771 81,100 83,500 86,000 169,500 Internal Charges 164,263 161,000 165,800 170,800 336,600 Transfers In 2,100,029 2,838,900 436,900 468,300 905,200 Total Revenues $ 3,976,416 $ 4,783,700 $ 2,803,100 $ 3,679,000 $ 6,482,100 Expenditures Salaries & Benefits 2,255,983 2,259,800 2,546,300 2,872,700 5,419,000 Operations & Maintenance 580,722 486,100 897,000 350,600 1,247,600 Capital Outlay 90,571 65,000 13,000 — 13,000 Transfers Out 428,824 499,200 491,300 525,800 1,017,100 Total Expenditures $ 3,356,100 $ 3,310,100 $ 3,947,600 $ 3,749,100 $ 7,696,700 Ending Balance $ 2,891,400 $ 1,746,900 $ 1,676,800 $ 1,676,800 Salaries & Benefits Addition of a Planner III in FY26 (1 FTE), and a Systems Analyst/Special Projects (0.25 FTE) split between Planning (25%), Building Inspection (25%), and Transportation & Engineering (50%) in FY26. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Significant increase in FY25 due primarily to contracted services for work on the Land Use Plan (formerly Growth Policy) for $500k. Capital Includes half of a printer replacement for Community Development. See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Planning Fund Budget by Category Salaries & Benefits 70% Operations & Maintenance 16% Transfers Out 13% 79 Page Intentionally Left Blank 80 Public Safety Police - The Police Department budget accounts for costs associated with providing law enforcement services within the city of Bozeman. The General Fund budget primarily supports operations. Officers 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 Fund (Community Development) - The Building Inspection Department accounts for expenditures utilized to monitor construction projects within the city of Bozeman jurisdictional area as allowed by state law. The intent of this department 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 Fund - The Parking Fund has responsibility for managing and enforcing public parking within the city of Bozeman, including 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. 81 Police (General Fund, Multiple Others) The Police Department budget accounts for costs associated with providing law enforcement services within the city of Bozeman. The General Fund budget primarily supports operations. Officers are responsible for detecting, preventing, and investigating all crimes occurring within the city as well as providing a broad range of public safety services. 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 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Recruit high-quality officers and retain current officers with improved workload management and wellness programs. Increase training for officers and detectives to maintain essential skills and develop knowledge into specialty areas. 7.2 Employee Excellence 2 Identify and transcribe important documents into languages such as Spanish that assist minority communities. 3.2 Health & Safety Action 3 Work with a dedicated PD Community Liaison and City Communications Specialist to better inform the public about police events and emergency messages. 3.2 Health & Safety Action 4 Implement additional software systems in areas such as training and forensics that increase efficiency. 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Crime Rate per 1,000 Citizens 1 51 64 65 65 65 Annual Reduction Average Crime Rate per 1000 Citizens of Comparable MT Communities7 1 87 136 136 136 136 Total Calls for Service 1 50,174 45,511 51,000 51,000 51,000 N/A - Workload Indicator Mental Health-Related Calls for Service 1 957 971 900 950 950 N/A - Workload Indicator 82 7 Provided for comparison purposes Performance Measurements (continued) Budget Allocation Funded primarily by the General Fund with additional programs funded by special revenue funds. Police makes up 27% of operating expenditures. Police 27% General Fund 2025 Biennium Adopted Budget The Police Department is primarily accounted for in the General Fund. Other Police Department Funds are included in the table below. Each fund is then broken out into a detailed budget with a description of its purpose. Police Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund General Fund $ 10,769,839 $ 11,938,200 $ 15,020,300 $ 14,970,100 $ 29,990,400 Drug Forfeiture Fund 254,639 262,300 287,000 305,200 592,200 Police Special Revenue Fund 402,739 11,900 5,400 17,000 22,400 Drug Forfeiture: City/County Fund — 45,700 — — — Bozeman Public Safety Center Capital Construction Fund 2,159,875 — — — — Total Expenditures $ 13,587,092 $ 12,258,100 $ 15,312,700 $ 15,292,300 $ 30,605,000 Department Expenditure Budget by Category FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 9,473,387 $ 10,337,400 $ 12,641,700 $ 13,584,700 $ 26,226,400 Operations & Maintenance 1,847,177 1,330,300 1,404,800 1,347,100 2,751,900 Capital Outlay 2,266,528 590,400 1,265,200 359,500 1,624,700 Transfers Out — — 1,000 1,000 2,000 Total Expenditures $ 13,587,092 $ 12,258,100 $ 15,312,700 $ 15,292,300 $ 30,605,000 83 Salaries & Benefits Addition of 7 FTE in the General Fund in FY25: •Non-sworn Community Liaison (1 FTE) •Non-sworn Special Services officer (1 FTE) •Non-sworn Special Services Supervisor (1 FTE) •Police Officers (3 FTE) •Detective (1 FTE) Other increases in salaries & benefits are based on negotiated contracts and anticipated increases to the cost of providing health benefits. FY26 positions are assumed to be part of a Public Safety Mill Levy. Operations Police operating expenses are primarily accounted for the General Fund. Increase in FY24 Projection due to the necessary but unanticipated replacement of tasers. Increase in FY25 resulting primarily from the costs to outfit new staff. This cost results in a slight reduction in FY26 as there are no new FTEs approved. The overall department projection for FY24 indicates a decrease due to the completion of the Bozeman Public Safety Center construction. FY23 Operations & Maintenance costs in the capital construction fund were roughly $680k with no operational expenses in that fund for FY24. Operating in the General Fund is projected to decrease from FY25 to FY26 due to fewer new FTE to outfit. An increase in the Police Special Revenue Fund for replacements vests in FY26 results in an overall increase in the department's adopted budget from FY25 to FY26. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Police Total Department Budget by Category Salaries & Benefits 86% Operations & Maintenance 9% Capital Outlay 5% The General Fund accounts for the majority of Police expenditures that are not funded by a special source. General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 9,225,729 $ 10,081,700 $ 12,361,300 $ 13,286,100 $ 25,647,400 Operations & Maintenance 1,150,461 1,266,100 1,393,800 1,324,500 2,718,300 Capital Outlay 393,649 590,400 1,265,200 359,500 1,624,700 Total Expenditures $ 10,769,839 $ 11,938,200 $ 15,020,300 $ 14,970,100 $ 29,990,400 84 The Drug Forfeiture Fund is used to account for two officers assigned to the Missouri River Drug Task Force (MRDTF). MRDTF provides a federal grant that pays the two officers' salary, excluding overtime, up to approximately $70k per year. These officers also work overtime for the High Intensity Drug Trafficking Areas (HIDTA) program which is a State grant pass-through from Gallatin County. This only covers overtime when applicable and is relatively minimal ($2k-$5k) each year. All other expenses are paid by the General Fund and meet the match requirement of MRDTF. Given that the City is likely to receive the grant award but not guaranteed, the adopted budget does not account for grant revenue in the biennium. Once awarded, a budget amendment will be taken to Commission. Drug Forfeiture Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ (3,900) $ — $ — Revenues Intergovernmental $ 73,204 $ 52,600 $ — $ — $ — Interest Income (5,817) — — — — Miscellaneous Revenue — 2,500 — — — Transfers In 369,895 211,100 287,000 305,200 592,200 Total Revenues $ 437,282 $ 266,200 $ 287,000 $ 305,200 $ 592,200 Expenditures Salaries & Benefits $ 247,658 $ 255,700 $ 280,400 $ 298,600 $ 579,000 Operations & Maintenance 6,981 6,600 5,600 5,600 11,200 Transfers Out — — 1,000 1,000 2,000 Total Expenditures $ 254,639 $ 262,300 $ 287,000 $ 305,200 $ 592,200 Ending Balance $ — $ — $ — $ — The Police Special Revenue Fund is used for non-payroll related federal grants received by the Police Department. For example, the department receives an annual grant for the purchase of bullet proof vests. The grant revenue and associated expenditures are accounted for in this fund each year. Police Special Revenue Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 245,900 $ 239,300 $ 239,300 Revenues Intergovernmental $ 396,233 $ 2,300 $ — $ — $ — Interest Income 5,260 3,000 3,000 3,000 6,000 Miscellaneous Revenue 2,590 — — — — Total Revenues $ 404,083 $ 5,300 $ 3,000 $ 3,000 $ 6,000 Expenditures Operations & Maintenance $ 9,799 $ 11,900 $ 5,400 $ 17,000 $ 22,400 Capital Outlay 392,939 — — — — Total Expenditures $ 402,739 $ 11,900 $ 5,400 $ 17,000 $ 22,400 Ending Balance $ 239,300 $ 236,900 $ 222,900 $ 222,900 85 The Drug Forfeiture: City/County Fund was another special revenue fund used to account for grant funding from the Missouri River Task Force. This fund will be closed out in fiscal year 2024. Any remaining fund balance at fiscal year end will be transferred to the Drug Forfeiture Fund detailed above. Drug Forfeiture: City/County Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 135,800 $ — $ — Revenues Interest Income 2,927 — — — — Total Revenues $ 2,927 $ — $ — $ — $ — Expenditures Operations & Maintenance $ — $ 45,700 $ — $ — $ — Transfers Out — 90,100 — — — Total Expenditures $ — $ 135,800 $ — $ — $ — Ending Balance $ — $ — $ — $ — The Bozeman Public Safety Center Capital Construction Fund is used to account for the revenue and expenditures solely related to the construction of the Bozeman Public Safety Center. The Police, Fire, and Municipal Courts are all located in this building which was funded primarily with a mill levy approved by voters in November 2018. Bozeman Public Safety Center Capital Construction Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 316,500 $ — $ — Revenues Interest Income $ (823) $ — $ — $ — $ — Transfers In 4,063,705 — — — — Total Revenues $ 4,062,882 $ — $ — $ — $ — Expenditures Operations & Maintenance $ 679,936 $ — $ — $ — $ — Capital Outlay 1,479,940 — — — — Transfers Out — 316,500 — — — Total Expenditures $ 2,159,875 $ 316,500 $ — $ — $ — Ending Balance $ — $ — $ — $ — 86 Page Intentionally Left Blank 87 Fire (General Fund, Multiple) The Fire Department provides fire, rescue, hazardous materials, and emergency medical services, and fire prevention strategy throughout Bozeman. Major Objectives •Provide response to fire, hazardous materials, technical rescue, EMS, and other undefined emergencies across the city. Ensure members are trained to national standards to safely and effectively perform their job. •Provide plan review and permitting for new buildings. Ensure existing buildings meet life safety codes. Deliver car seat program and other community education programs •Provide EMS Transport when private third party is not available Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Complete self assessment document and site visit and update fire department strategic plan for accreditation 3.1 Public Safety 2 Implement new records management system and data analytics software 7.3 Best Practices, Creativity & Foresight 3 Open Fire Station #2 3.1 Public Safety 4 Oversee progress on Fire Station #4 including the development of the ballot question, design, and construction. 3.1 Public Safety 5 Implement Quick Response Vehicle (QRV) program 3.1 Public Safety 6 Implement a formal emergency management program 3.1 Public Safety 7 Update Fire Department permit and plan review fees 3.1 Public Safety Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Total Calls 5, 6 4,668 4,189 4,500 4,800 5,100 N/A - Workload Indicator Total Runs (all apparatus)5, 6 5,367 4,923 5,200 5,400 5,600 N/A - Workload Indicator Number of Overlapping Incidents 6 1,965 1,556 1,800 2,000 2,200 N/A - Workload Indicator Average Emergency Response for Call Processing (CP) in minutes 3, 4, 5, 6 2:22 2:52 1:00 1:00 1:00 1:00 Average Emergency Response Turnout (TO) in minutes 3, 4, 5, 6 1:07 1:45 1:00 1:00 1:00 1:00 Average Emergency Response Time (RP) in minutes 3, 4, 5, 6 4:54 5:54 4:00 4:00 4:00 4:00 Average Emergency Response Total (CP+TO+RP in minutes) 3, 4, 5, 6 8:23 10:31 6:00 6:00 6:00 6:00 Number of average training hours per Fire Fighter 1 286 392 240 240 240 2408 88 8 Target based on Insurance Service Office and National Fire Protection Association standard of 240 hours per member per calendar year Performance Measurements (continued) Budget Allocation Fire is supported operationally primarily through the General Fund, making up 16% of operating expenditures. Fire 16% General Fund 2025 Biennium Adopted Budget The Fire Department is primarily accounted for in the General Fund. Other Fire Department Funds are included in the table below. Each fund is then broken out into a detailed budget with a description of its purpose. Fire Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund General Fund $ 7,237,539 $ 7,819,200 $ 8,816,400 $ 9,247,100 $ 18,063,500 Fire Impact Fee Fund 30,279 5,332,000 84,800 88,400 173,200 Fire Department Equipment Fund 1,317,737 6,602,000 1,228,000 945,700 2,173,700 Budget Capital Construction Fund (For Fire Station 4) — — 18,000,000 — 18,000,000 Fire Station #2 Capital Construction Fund 1,517,666 12,318,500 — — — Total Expenditures $ 10,103,221 $ 32,071,700 $ 28,129,200 $ 10,281,200 $ 38,410,400 89 Department Expenditure Budget by Category FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits 6,326,756 6,920,500 7,889,500 8,414,400 16,303,900 Operations & Maintenance 996,280 1,004,400 980,900 889,400 1,870,300 Capital Outlay 1,613,047 17,501,300 18,434,000 151,700 18,585,700 Debt Service/Loans — — 794,000 794,000 1,588,000 Transfers Out 1,167,138 6,645,500 30,800 31,700 62,500 Total Expenditures $ 10,103,221 $ 32,071,700 $ 28,129,200 $ 10,281,200 $ 38,410,400 Salaries & Benefits All Fire department salaries & benefits are accounted for in the General Fund. The addition of a Battalion Chief-Support Service (1 FTE) is included in FY25. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Fire operating expenses are primarily accounted for the General Fund. An EMS inventory system is a new purchase for FY25 in the General Fund. The increase is offset by a decline in external vehicle repair costs in the same fund, and a reduction in O&M related to the Fire Impact Fee Fund resulting in an overall decrease for the department in FY25. The General Fund budget also includes $25k for ballot education for a possible public safety mill levy later this year. Decrease in FY26 budget from reduction in supplies and materials for EMS inventory system budgeted in the General Fund. Additional decreases in anticipated cost for contracted services for equipment testing in FY26. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Fire Total Department Budget by Category Salaries & Benefits 42% Operations & Maintenance 5%Capital Outlay 48% Debt Service/ Loans 4% The General Fund accounts for the majority of Fire expenditures that are not funded by a special source. Fire General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 6,326,756 $ 6,920,500 $ 7,889,500 $ 8,414,400 $ 16,303,900 Operations & Maintenance 893,183 898,700 926,900 832,700 1,759,600 Capital Outlay 17,600 — — — — Total Expenditures $ 7,237,539 $ 7,819,200 $ 8,816,400 $ 9,247,100 $ 18,063,500 90 The Fire Impact Fee Fund accounts for the collection and expenditure of fire impact fees. Impact fees are charged to new developments in Bozeman to fund capital costs associated with providing the additional services these new developments create. Fire Impact Fee Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 4,880,800 $ 339,400 $ 339,400 Revenues Charges for Services $ 522,006 $ 743,200 $ 615,800 $ 634,300 $ 1,250,100 Interest Income 101,857 47,400 47,400 47,400 94,800 Total Revenues $ 623,864 $ 790,600 $ 663,200 $ 681,700 $ 1,344,900 Expenditures Operations & Maintenance $ 4,179 $ 4,100 $ 54,000 $ 56,700 $ 110,700 Capital Outlay — 1,500,000 — — — Transfers Out 26,100 3,827,900 30,800 31,700 62,500 Total Expenditures $ 30,279 $ 5,332,000 $ 84,800 $ 88,400 $ 173,200 Ending Balance $ 339,400 $ 917,800 $ 1,511,100 $ 1,511,100 The Fire Department Equipment Fund is used to account for the Public Safety mill levy tax revenues for fire department capital and equipment. Fire Department Equipment Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 383,800 $ 651,400 $ 651,400 Revenues Taxes $ 640,306 $ 734,500 $ 1,023,800 $ 1,228,100 $ 2,251,900 Interest Income 18,926 9,200 9,200 9,200 18,400 Miscellaneous Revenue — 1,000,000 — — — Debt Proceeds — 5,125,900 — — — Total Revenues $ 659,232 $ 6,869,600 $ 1,033,000 $ 1,237,300 $ 2,270,300 Expenditures Operations & Maintenance $ 98,518 $ 100,600 $ — $ — $ — Capital Outlay 78,182 3,683,800 434,000 151,700 585,700 Debt Service/Loans — — 794,000 794,000 1,588,000 Transfers Out 1,141,038 2,817,600 — — — Total Expenditures $ 1,317,737 $ 6,602,000 $ 1,228,000 $ 945,700 $ 2,173,700 Ending Balance $ 651,400 $ 456,400 $ 748,000 $ 748,000 The Budget Capital Construction Fund is used to budget for large capital projects that are anticipated be debt funded. In relation to the Fire department, the budget in this fund is for Fire Station 4. Budget Capital Construction Fund (For Fire Station 4)FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ — $ — $ — Revenues Debt Proceeds — — 18,000,000 — 18,000,000 Total Revenues $ — $ — $ 18,000,000 $ — $ 18,000,000 Expenditures Capital Outlay — — 18,000,000 — 18,000,000 Total Expenditures $ — $ — $ 18,000,000 $ — $ 18,000,000 Ending Balance $ — $ — $ — $ — 91 The Fire Station #2 Capital Construction Fund is used to account for the revenue and expenditures solely related to the construction of Fire Station #2. The Fire Station is expected to be complete by the end of the first quarter of FY25. As the project spans two fiscal years, any unexpended budget from FY24 will be carried into FY25 to cover the remainder of the project. Fire Station #2 Capital Construction Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 5,664,200 $ — $ — Revenues Interest Income $ 146,763 $ 36,700 $ — $ — $ — Transfers In 141,038 6,617,600 — — — Total Revenues $ 287,800 $ 6,654,300 $ — $ — $ — Expenditures Operations & Maintenance $ 400 $ 1,000 $ — $ — $ — Capital Outlay 1,517,266 12,317,500 — — — Total Expenditures $ 1,517,666 $ 12,318,500 $ — $ — $ — Ending Balance $ — $ — $ — $ — 92 Page Intentionally Left Blank 93 Building Inspection Fund(Community Development Department) The Building Inspection Department accounts for expenditures utilized to monitor construction projects within the city of Bozeman jurisdictional area as allowed by state law. The intent of this department 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. 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 consistent inspections even as new construction methods are introduced to the community. Building Inspection Fund Financial Trends $3.1M $4.0M $4.9M $5.9M $3.8M $4.0M $4.9M $5.2M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 2025 Biennium Adopted Budget 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. A phase-in of fee increases is ongoing and in line with the International Code Council Valuation & Fee Calculation Resolutions adopted by the City Commission. Building Inspection Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,015,200 $ 1,019,300 $ 1,019,300 Revenues Licenses & Permits $ 3,057,482 $ 3,940,100 $ 4,870,000 $ 5,852,100 $ 10,722,100 Charges for Services 32,400 47,900 49,300 50,800 100,100 Interest Income 25,806 10,000 10,000 10,000 20,000 Miscellaneous Revenue 2 19,100 19,700 20,300 40,000 Total Revenues $ 3,115,690 $ 4,017,100 $ 4,949,000 $ 5,933,200 $ 10,882,200 Expenditures Salaries & Benefits 2,287,224 2,556,000 3,478,800 3,728,700 7,207,500 Operations & Maintenance 696,189 876,300 793,300 888,700 1,682,000 Capital Outlay 421,400 115,000 65,000 54,100 119,100 Transfers Out 387,240 465,700 514,800 548,500 1,063,300 Total Expenditures $ 3,792,054 $ 4,013,000 $ 4,851,900 $ 5,220,000 $ 10,071,900 Ending Balance $ 1,019,300 $ 1,116,400 $ 1,829,600 $ 1,829,600 94 Salaries & Benefits Addition of 2.25 FTE: •Assistant Building Official (1 FTE) in FY25 •Plans Examiner - Fire (1 FTE) in FY25 •Systems Analyst/Special Projects (0.25 FTE) in FY26. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Reduction from FY24 Projected to FY25 Budget resulting from an effort to reduce 3rd party reviews. Increase in FY26 due to laptop lifecycle replacements. Capital The CIP includes two vehicle replacements, one in each year of the biennium, and half of a new printer for Community Development. See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Building Inspection Fund Budget by Category Salaries & Benefits 72% Operations & Maintenance 17% Capital Outlay 1% Transfers Out 11% Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Continue to automate processes and reduce dependence on paper 6.3 Climate Action 2.Improve online resources for customers 7.1 Values-Driven Culture 3.Review and update processes 7.3 Best Practices, Creativity & Foresight 4.Implement code updates 7.3 Best Practices, Creativity & Foresight 5.Provide guidance related to and enforce the minimum building code standards to promote public safety 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Residential Permits Issued 1, 3, 5 1,773 2,428 2,000 2,500 2,625 N/A - Workload Indicators Residential Permits In Review 1, 3, 5 309 357 500 350 368 N/A - Workload Indicators Total Residential Permits 1, 3, 5 2,077 2,785 2,500 2,850 2,993 N/A - Workload Indicators Commercial Permits Issued 1, 3, 5 594 1,119 550 1,000 1,050 N/A - Workload Indicators Commercial Permits In Review 1, 3, 5 118 197 350 200 210 N/A - Workload Indicators Total Commercial Permits 1, 3, 5 708 1,316 900 1,200 1,260 N/A - Workload Indicators Total Permits 1, 3, 5 2,785 4,101 3,400 4,050 4,253 Varies, see line below Total Permits Target 1, 3 3,000 3,000 3,000 3,500 3,675 N/A Building Permit Valuation (Residential and Commercial)5 $685M $882M $950M $980M $1,029M Varies, see line below Building Permit Valuation Target 5 $700M $700M $700M $1,000M $1,000M N/A Average Daily Inspections per Inspector 4, 5 8.25 13 15 13 13 15 95 Performance Measurements (continued) 96 Page Intentionally Left Blank 97 Parking Fund The Parking Fund 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. 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 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. Parking Fund Permit & Fine Revenue $1.0M $1.0M $1.1M $1.1M $1.1M FY22 FY23 FY24 Projected FY25 Budget FY26 Budget 2025 Biennium Adopted Budget The Parking Fund is an enterprise fund that accounts for revenues and expenditures associated with the Parking Department. An enterprise fund is a self-supporting fund that provides good and services to the public for a fee. Parking Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,950,300 $ 1,375,100 $ 1,375,100 Revenues Licenses & Permits $ 665,191 $ 731,600 $ 753,500 $ 776,100 $ 1,529,600 Charges for Services (35,567) 1,100 1,100 1,100 2,200 Fines & Forfeitures 338,418 351,300 361,800 372,700 734,500 Interest Income 43,718 58,800 58,800 58,800 117,600 Miscellaneous Revenue (2,358) 8,000 3,000 3,000 6,000 Total Revenues $ 1,009,402 $ 1,150,800 $ 1,178,200 $ 1,211,700 $ 2,389,900 Expenditures Salaries & Benefits 503,476 495,700 651,800 695,700 1,347,500 Operations & Maintenance 527,868 668,500 609,700 466,600 1,076,300 Capital Outlay 119,230 430,000 97,000 570,500 667,500 Transfers Out 127,499 131,800 223,200 236,500 459,700 Total Expenditures $ 1,278,072 $ 1,726,000 $ 1,581,700 $ 1,969,300 $ 3,551,000 Ending Balance $ 1,375,100 $ 971,600 $ 214,000 $ 214,000 98 Salaries & Benefits Parking Compliance Officer (1 FTE) added in FY25. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations One-time expenditures approved and projected in FY24 result in reduction in operations in the FY25 budget. One-time expenses include: license plate reading (LPR) technology, Rouse Lot upgrades, and pay station replacements. The FY25 Budget also includes $150k for consulting services to update the Strategic Parking Plan. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Parking Fund Budget by Category Salaries & Benefits 38% Operations & Maintenance 30% Capital Outlay 19% Transfers Out, 13% Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Regulate the use of on-street and off-street public parking to promote public safety 3.1 Public Safety 2.Keeping up-to-date equipment (LPR both mobile and fixed, pay stations, vehicles) 7.3 Best Practices, Creativity & Foresight 3.Training for driving and de-escalation for all officers 7.2 Employee Excellence 4.Being consistent with safety violations (2am-7am, No-Parking, Fire Hydrants) 7.5 Funding and Delivery of City Services 5.Implementing the Garage Maintenance Manual 4.2 High Quality Urban Approach 6.Updating the garage (Putting a roof on the garage, adding electric charging stations) 4.3 Strategic Infrastructure Choices Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Percent Paid Citations 1 71%65%64%100%100%100% Percent Unpaid Citations 1 29%35%36%—%—%—% Violation Fees 1 $415,057 $476,848 $360,911 $460,000 $475,000 N/A - Workload Indicator Added Violation Fees 9 1 $46,620 $158,480 $80,480 $0 $0 $0 Amount of Fees Paid 1 $449,074 $415,860 $244,504 $415,000 $425,000 N/A - Workload Indicator Number of Towed Vehicles 1 204 224 57 240 255 N/A - Workload Indicator Safety Violations 1 ND10 1,402 1,020 1,000 1,000 N/A - Workload Indicator 99 9 Additional fees are accrued on original fees if payment is delinquent. 10 ND: No data available Performance Measurements (continued) 100 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 department proudly serves the City of Bozeman Solid Waste customers by providing them with programs and services that effectively and efficiently manage municipal solid waste generated within the Bozeman City limits. Stormwater Fund - Manages 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. Transportation - The goal of the Transportation department 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 Fund - The Vehicle Maintenance department 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 Fund –Providing and maintaining a wastewater collection system for the City, including an operations division and the Water Reclamation Facility (WRF). Water Fund– Operating and maintaining the City’s water transmission and distribution system. Includes an operations division, the Water Treatment Plant (WTP) and water conservation. 101 Public Works Administration (Internal Service Fund / Capital Projects Fund) Public Works (PW) Administration is a Department that includes three divisions which will be presented separately on the following pages: PW Admin, Engineering, and GIS/Asset Management. The department also includes both the Public Works Administration Fund and the Shops Complex Capital Projects Fund. Both fund budgets are shown on the next page. The divisions within the Public Works Administration Fund are primarily funded by internal charges for services revenue from other City departments that utilize their services. Public Works Admin Fund Budget by Department Public Works Administration 32% Engineering, 43% G.I.S., 25% 102 2025 Biennium Adopted Budget Public Works Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund Public Works Administration Fund $ 5,962,664 $ 6,465,600 $ 8,437,900 $ 8,761,700 $ 17,199,600 Shops Complex Capital Construction Fund — 100,000 156,000 13,780,000 13,936,000 Total Expenditures $ 5,962,664 $ 6,565,600 $ 8,593,900 $ 22,541,700 $ 31,135,600 Public Works Administration Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 3,104,100 $ 2,396,000 $ 2,396,000 Revenues Licenses & Permits $ 7,675 $ 12,000 $ 12,000 $ 12,000 $ 24,000 Intergovernmental — 20,000 — — — Interest Income 77,836 184,200 184,200 184,200 368,400 Miscellaneous Revenue 41,602 26,400 — — — Transfers In — 227,600 345,600 356,800 702,400 Internal Charges 5,660,363 5,287,300 6,837,400 7,657,200 14,494,600 Total Revenues $ 5,787,476 $ 5,757,500 $ 7,379,200 $ 8,210,200 $ 15,589,400 Expenditures Salaries & Benefits $ 4,076,115 $ 4,092,000 $ 4,873,500 $ 5,582,700 $ 10,456,200 Operations & Maintenance 1,044,149 1,382,600 1,582,300 1,628,700 3,211,000 Capital Outlay 125,690 195,000 — — — Debt Service/Loans 89,680 93,300 97,200 101,000 198,200 Transfers Out 627,029 702,700 1,884,900 1,449,300 3,334,200 Total Expenditures $ 5,962,664 $ 6,465,600 $ 8,437,900 $ 8,761,700 $ 17,199,600 Ending Balance $ 2,396,000 $ 1,337,300 $ 785,800 $ 785,800 The Shops Complex Capital Construction Fund is used to account for the financing and construction of the Shops Complex. The project is anticipated to be funded primarily by debt with some transfers in from the Public Works Administration Fund. Construction is anticipated to span multiple fiscal years with design efforts primarily in Fiscal Year 2025. Operations & Maintenance expenses in Fiscal Year 2026 are related to the cost to issue debt. More information on the project can be found in the City's 2025-2029 Capital Improvement Plan on page 263. SHOPS COMPLEX FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 3,104,100 $ 3,004,100 $ 3,004,100 Revenues Transfers In $ — $ — $ 1,000,000 $ 500,000 $ 1,500,000 Debt Proceeds — — — 13,000,000 13,000,000 Total Revenues $ — $ — $ 1,000,000 $ 13,500,000 $ 14,500,000 Expenditures Operations & Maintenance $ — $ — $ — $ 260,000 $ 260,000 Capital Outlay — 100,000 156,000 13,520,000 13,676,000 Total Expenditures $ — $ 100,000 $ 156,000 $ 13,780,000 $ 13,936,000 Ending Balance $ 3,004,100 $ 3,848,100 $ 3,568,100 $ 3,568,100 103 Public Works Admin Division (Public Works Administration Fund) The Public Works Admin Division is a division of the Public Works Administration Fund. The Fund includes three divisions in total including PW Admin, Engineering, and GIS/Asset Management. 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. Department Goals 1.Onboard new Admin for Solid Waste (Strategic Plan 7.2 Employee Excellence) 2.Implement Engineering Fee updates and additions (Strategic Plan 7.5 Funding and Delivery of City Services) 3.Complete Public Works Shops Complex planning & preliminary design (Strategic Plan 4.3 Strategic Infrastructure Choices) Performance Measurements This function oversees the performance of all of Public Works. See following division pages for performance measures specific to each division of Public Works Admin. Public Works Administration Division Budget by Category Salaries & Benefits 42% Operations & Maintenance 12% Debt Service/ Loans, 4% Transfers Out, 42% 104 2025 Biennium Adopted Budget The Public Works Administration Division of the Public Works Administration Fund accounts for the oversight of all Public Works divisions while also providing support to all other Public Works departments. Public Work Administration Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Public Works Administration Division Expenditures Salaries & Benefits $ 1,174,242 $ 1,048,500 $ 1,078,800 $ 1,249,000 $ 2,327,800 Operations & Maintenance 151,711 144,200 345,300 338,900 684,200 Debt Service/Loans 89,680 93,300 97,200 101,000 198,200 Transfers Out 627,029 702,700 1,203,600 1,107,600 2,311,200 Total Expenditures $ 2,042,662 $ 1,988,700 $ 2,724,900 $ 2,796,500 $ 5,521,400 Salaries & Benefits No new FTE. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations PW Admin has been coordinating with the City Clerks' Office for ongoing digitization of historic records to provide greater transparency and efficiency in information retention and storage. In FY24, the scanning vendor terminated services, resulting in a reduction in contracted services. The increase in FY25 is due in part for resumption of the scanning project as well as an increase in contracted services for graffiti removal. The scanning project and graffiti removal will continue in FY26. The slight reduction from FY25 is due to fewer computer replacements in FY26. 105 Engineering Division (Public Works Administration Fund) The Engineering Division is a division of the Public Works Administration Fund. The Fund includes three divisions in total including PW Admin, Engineering, and GIS/Asset Management. This division provides professional level technical support to the other Public Works divisions and other City Departments. Major Objectives •Provide professional level technical support to the other Public Works divisions and other City Departments. •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 2025 Biennium Adopted Budget Public Works Administration Internal Service Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Engineering Division Expenditures Salaries & Benefits $ 2,012,919 $ 2,199,400 $ 2,799,000 $ 2,936,200 $ 5,735,200 Operations & Maintenance 342,275 693,800 517,300 481,100 998,400 Capital Outlay 100,080 — — — — Transfers Out — — 430,600 216,000 646,600 Total Expenditures $ 2,455,274 $ 2,893,200 $ 3,746,900 $ 3,633,300 $ 7,380,200 Salaries & Benefits Addition of 2.5 FTE: •Engineering Technician (1 FTE) and an Engineer I/II - Transportation (1 FTE) in FY25 •Systems Analyst/Special Projects (0.50 FTE) split between Planning (25%), Building Inspection (25%), and Transportation & Engineering (50%) in FY26 Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Decrease in FY25 budget due to reduction in contracted services with the completion of engineering design standards update. Decrease from FY25 to FY26 due primarily to the mobile field maintenance & inspection planned in FY25. Capital None Engineering Division Budget by Category Salaries & Benefits 78% Operations & Maintenance 14% Transfers Out, 9% 106 Division Goals and Performance Measurements Division Goals Goal Strategic Plan 1.Update facility plans for compliance with SB 382: Create the Montana Land Use Planning Act 4.3 Strategic Infrastructure Choices 2.Increase in-house design capacity – PM, water resources, transportation and traffic calming 7.5 Funding and Delivery of City Services 3.Water supply availability dashboard 1.1 Outreach 4.Continue to provide professional level technical support to the other Public Works divisions and other City Departments 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Div. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Value of Professional Services Contracts 4 $2.9M $3.8M $5.0M $6.8M $6.5M Variable Nature Value of Internal Design Work (Street Maintenance, ADA, & Stormwater Projects)4 $1.9M $1.8M $2.1M $2.1M $2.3M Variable Nature Value of Public Construction Projects 4 $21.6M $22.0M $22.9M $22.9M $21.4M Variable Nature Development Application Reviews per FTE 2 74 76 80 84 88 70 107 GIS/Asset Management (Public Works Administration Division/Strategic Services) GIS/Asset Management is a division of the Public Works Administration Fund. The Fund includes three divisions in total including PW Admin, Engineering, and GIS/Asset Management. Geographic Information System (GIS) 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. 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 2025 Biennium Adopted Budget Public Works Administration Internal Service Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget G.I.S. and Asset Management Division Expenditures Salaries & Benefits $ 888,954 $ 844,100 $ 995,700 $ 1,397,500 $ 2,393,200 Operations & Maintenance 462,224 524,600 719,700 808,700 1,528,400 Capital Outlay 25,610 195,000 — — — Debt Service/Loans — — — — — Transfers Out — — 250,700 125,700 376,400 Total Expenditures $ 1,376,789 $ 1,563,700 $ 1,966,100 $ 2,331,900 $ 4,298,000 Salaries & Benefits Addition of 2 FTE: •Systems GIS Analyst (1 FTE) in FY26 •Administrative Assistant (1 FTE) in FY26 Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Increase in operating budgets over the biennium due primarily to moving previously planned capital projects for Aerial Photography, LiDAR, and Land Cover data from the capital budget to operating budget under contracted services. Capital None GIS/Asset Management Division Budget by Category Salaries & Benefits 56% Operations & Maintenance 36% Transfers Out, 9% 108 Division Goals and Performance Measurements Division Goals Goal Strategic Plan 1.Support Branch Out Bozeman 6.3 Climate Action 2.Support Engineering Design Standards Update, Transportation Plan effort, GIS Overhaul 7.3 Best Practices, Creativity & Foresight 3.Implement CityWorks for Water Treatment Plant 7.3 Best Practices, Creativity & Foresight 4.Assist Engineering Division with updates & migrations for all modeling efforts 7.3 Best Practices, Creativity & Foresight 5.Continue to manage, analyze, utilize, and provide spatial data to support decision-making and operations 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Div. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Number of Cityworks Users 3 140 152 160 165 170 125 Annual Uses of ArcGis Online (AGOL)5 1,245,456 1,400,423 1,495,081 1,589,738 1,881,170 Annual Increase Annual Uses of Portal 5 409,510 502,870 520,277 537,684 576,475 Annual Increase Annual Uses of Vertigis 5 75,760 78,315 79,084 79,852 81,449 Annual Increase 109 Solid Waste The Solid Waste department 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. The Solid Waste department encompasses activities that are accounted for in the Solid Waste Fund as well as the Landfill Post-Closure Fund. In Fiscal Year 2024, the City's Solid Waste department received a $1,605,660 grant from the U.S. Environmental Protection Agency (EPA) to develop a sustainable organics management program. The goal of the program is to provide year-round recycling and composting services to the city of Bozeman. The receipt of this grant heavily informs the adopted biennium budget for the Solid Waste department. Major Objectives •Offer quality service to the residents of Bozeman •Promote waste reduction thru recycling efforts •Optimize operational efficiencies •Operate and maintain post-closure remediation systems for closed landfill Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Provide services that effectively and efficiently manage municipal solid waste generated within the Bozeman City limits 6.3 Climate Action 2 Expand year-round organics services to include food scraps utilizing EPA Grant for $1.6M 6.3 Climate Action 3 Expand co-mingle recycling program 6.3 Climate Action 4 Provide urban camper garbage removal 3.2 Health & Safety Action 5 Promote bear resistant containers 3.1 Public Safety 6 Continue to properly maintain and monitor closed landfill 3.2 Health & Safety Action Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Tonnage Diverted from Landfill: Residential Recycling 1 1,234 1,233 1,309 2,067 2,129 Annual Increase Tonnage Diverted from Landfill: Commercial Recycling 1 844 871 904 966 1,014 Annual Increase Tonnage Diverted from Landfill: Compost 1 1,056 586 1,172 1,500 2,550 Annual Increase Customers with Recycling & Refuse Collection 1 5,980 6,231 6,975 10,481 10,795 Annual Increase Customers with only Refuse Collection11 1 6,273 6,156 6,278 2,155 1,967 Annual Decrease 110 11 Target is to see annual decrease resulting from customers adding recycling to their services, not unsubscribing from the program all together. Performance Measurements (continued) 2025 Biennium Adopted Budget 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 the fall. Solid Waste rate increases were adopted by City Commission on August 13, 2024. This department includes the Landfill Post- Closure Fund, additional details on this fund's budget follow the description of the Solid Waste Fund. Solid Waste Department Budget by Category Salaries & Benefits 24% Operations & Maintenance 35% Capital Outlay 12% Debt Service/ Loans, 1% Transfers Out, 27% Solid Waste Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund Solid Waste Fund $ 6,033,877 $ 9,206,700 $ 11,026,900 $ 9,590,500 $ 20,617,400 Landfill Post-Closure Fund $ 1,673,602 $ 698,200 $ 272,100 $ 640,800 912,900 Total Expenditures $ 7,707,479 $ 9,904,900 $ 11,299,000 $ 10,231,300 $ 21,530,300 111 Solid Waste Fund Solid Waste Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 307,600 $ 155,600 $ 155,600 Revenues Intergovernmental $ — $ 1,451,800 $ 153,900 $ — $ 153,900 Charges for Services 5,872,630 6,636,500 8,026,500 8,664,300 16,690,800 Interest Income 4,602 2,900 2,900 2,900 5,800 Miscellaneous Revenue 33,285 69,300 44,000 47,600 91,600 Interfund Loan Proceeds — — 1,186,900 — 1,186,900 Transfers In — 894,100 — — — Debt Proceeds — — 1,941,100 433,500 2,374,600 Special Assessments 94 100 100 100 200 Total Revenues $ 5,910,612 $ 9,054,700 $ 11,355,400 $ 9,148,400 $ 20,503,800 Expenditures Salaries & Benefits 1,903,368 2,152,500 2,523,400 2,692,200 5,215,600 Operations & Maintenance 2,817,307 3,184,800 3,469,100 3,595,200 7,064,300 Capital Outlay 279,311 2,372,300 1,903,000 425,000 2,328,000 Debt Service/Loans — — — 301,000 301,000 Transfers Out 1,033,892 1,497,100 3,131,400 2,577,100 5,708,500 Total Expenditures $ 6,033,877 $ 9,206,700 $ 11,026,900 $ 9,590,500 $ 20,617,400 Ending Balance $ 155,600 $ 484,100 $ 42,000 $ 42,000 Salaries & Benefits Addition of an Administrative Assistant I (1 FTE) in FY25. Two new operators are included in the FY24 projection to support the pilot organics management program. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Increases are a result of the addition of an organics program, with some expenditures beginning in the FY24 projection, and a rate study planned for FY25. Other increases are Inflationary. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Solid Waste Fund by Category Salaries & Benefits 25% Operations & Maintenance 34% Capital Outlay 11% Debt Service/ Loans, 1% Transfers Out, 28% Solid Waste Fund Charges for Services Revenue $5.4M $5.9M $6.6M $8.0M $8.7M FY22 Actual FY23 Actual FY24 Projected FY25 Budget FY26 Budget 112 The Landfill Post-Closure Fund is used to account for activities related to the City's municipal solid waste landfill. State and Federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after final closure. The City stopped accepting waste effective June 30, 2008. The final capping of the cells is still pending. The Landfill Post-Closure Fund is funded by a mill levy for the ongoing monitoring of the landfill, transferred in from the General Fund. Expenditures are solely related to the continued monitoring and maintenance of the site. Landfill Post-Closure Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 240,400 $ — $ — Revenues Interest Income $ 3,896 $ — $ — $ — $ — Transfers In 295,000 457,800 272,100 640,800 912,900 Total Revenues $ 298,896 $ 457,800 $ 272,100 $ 640,800 $ 912,900 Expenditures Operations & Maintenance $ 1,673,602 $ 288,200 $ 272,100 $ 289,300 $ 561,400 Capital Outlay — 410,000 — 351,500 351,500 Total Expenditures $ 1,673,602 $ 698,200 $ 272,100 $ 640,800 $ 912,900 Ending Balance $ — $ — $ — $ — Operations Increases are inflationary based on the cost to contract monitoring services. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Landfill Post-Closure Fund by Category Operations & Maintenance 61% Capital Outlay 39% 113 Stormwater Fund Manages 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. 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 Storm Water Fund Charges for Services Revenue $1.7M $1.9M $2.1M $2.2M $2.3M FY22 Actual FY23 Actual FY24 Projected FY25 Adopted FY26 Adopted 2025 Biennium Adopted Budget The City’s Stormwater Fund is an enterprise fund where rates charged to users are based on impervious area and existing infrastructure are collected in order to cover the cost to provide the service. Considering the costs of inflation and the current adopted Capital plan, which accounts for growth in the City, a 3.0% rate increase in each year of the biennium has been included in the adopted budget. The impact on the typical homeowner is approximately $1.63 to $1.68 annually. See the Estimated Citizen Impact section on page 40 for more information. The most recent stormwater rate increases were adopted by City Commission on August 13, 2024. Stormwater Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,932,300 $ 582,600 $ 582,600 Revenues Charges for Services $ 1,883,096 $ 2,093,800 $ 2,212,700 $ 2,338,300 $ 4,551,000 Interest Income 41,202 59,800 59,800 59,800 119,600 Miscellaneous Revenue — 12,400 — — — Transfers In 190,784 — — — — Debt Proceeds — — 1,275,000 — 1,275,000 Total Revenues $ 2,115,082 $ 2,166,000 $ 3,547,500 $ 2,398,100 $ 5,945,600 Expenditures Salaries & Benefits 848,624 835,300 881,300 942,800 1,824,100 Operations & Maintenance 172,337 349,800 223,100 247,800 470,900 Capital Outlay 373,669 1,697,600 1,055,100 1,184,500 2,239,600 Debt Service/Loans 115,475 116,400 116,200 281,000 397,200 Transfers Out 484,548 516,600 666,100 719,400 1,385,500 Total Expenditures $ 1,994,653 $ 3,515,700 $ 2,941,800 $ 3,375,500 $ 6,317,300 Ending Balance $ 582,600 $ 1,188,300 $ 210,900 $ 210,900 114 Salaries & Benefits No FTE changes. Increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations FY24 projection contains significant one time expenditures including the Stormwater Facility Plan and a catch up payment for monthly operating costs at E. Beall for 2023 and 2024. Inflationary increases to ongoing operational expenditures are incorporated in FY25 and FY26. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Stormwater Fund Budget by Category Salaries & Benefits 29% Operations & Maintenance 7%Capital Outlay 35% Debt Service/ Loans 6% Transfers Out 22% Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Complete Stormwater Facilities Plan Update and incorporate its guidance 7.3 Best Practices, Creativity & Foresight 2.Modernize policy and plan for the next 20 years 7.3 Best Practices, Creativity & Foresight 3.Continue streamlining processes such as permit review and inspections 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Stormwater Facility Management Program: Facility Inspection Rate 3 3%12%8%15%18%20% Stormwater Facility Management Program: Facility Compliance Audit Score 3 67%66%65%65%65%90% Construction Site Management Program: Site Inspection Rate 3 18%36%25%40%40%20% Construction Site Management Program: Site Compliance Audit Score 3 67%64%70%70%70%90% Stormwater River Impact Report Card12 1 D (60%)F (59%)B (81%)B (81%)B (81%)Letter Grade Increase per Year 115 12 Grade is calculated based on the overall effectiveness of the program and compares to the criteria below: Grade = A: No stormwater impact on receiving waters, allowing for a continuation of administrative programs and reduction of TMDL Action Plan investment to maintain grade. Grade = B: Low stormwater impact to receiving waters, requiring continuation of administrative programs and TMDL Action Plan investment to increase grade. Grade = C: Moderate stormwater impact on receiving waters, requiring an expansion of administrative programs and continuation of TMDL Action Plan investment to increase grade. Grade = D: Significant stormwater impact on receiving waters, requiring an expansion of administrative programs and TMDL Action Plan investment to increase grade. Grade = F: Major stormwater impact on receiving waters, reassessment of administrative programs and TMDL Action Plan investment strategy required. Performance Measurements (continued) 116 Page Intentionally Left Blank 117 Transportation The goal of the Transportation Department 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. 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. Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Work with MDT and Gallatin County to provide a seamless transition from state and county road into the city infrastructure 1.3 Public Agencies Collaboration 2 Plan for future growth to keep meeting our service goals 7.5 Funding and Delivery of City Services 3 Support all modes of transportation 4.2 High Quality Urban Approach 4 Provide a workspace that promotes longevity and employee growth 7.2 Employee Excellence Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Mileage per Streets FTE 1, 2, 3 17 17 18 17 16 13 Number of Paid Pothole Related MMIA Claims13 1, 3 0 0 0 0 0 0 Number of Potholes Filled per Street Mile 1, 3 4 4 9 9 9 Tracking to sustain zero MMIA pothole claims 11813 Montana Municipal Interlocal Authority (MMIA) 2025 Biennium Adopted Budget The Transportation Department is accounted for in multiple funds, as outlined in the table below. The funds within the Transportation Department are primarily funded by assessment revenue, impact fees, and other special revenue sources. These funds are differentiated primarily by funding source although certain transportation projects receive appropriations from multiple funds. For example, many capital street projects involve a certain aspect of improvement while also addressing the demands of growth in the community. This circumstance tends to result in the portion of the project that addresses capacity expansion to be funded with impact fees and the remainder funded by street assessment revenue. More information on each fund is broken out below with a detailed budget and description of its purpose. Transportation Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund Street Maintenance Fund $ 9,729,585 $ 13,114,300 $ 13,752,700 $ 14,232,000 $ 27,984,700 Street Impact Fee Fund 4,934,967 5,097,900 16,826,900 21,831,200 38,658,100 Arterial & Collector Street District Fund 1,238,372 3,973,100 4,616,100 8,758,900 13,375,000 Metropolitan Planning Organization Fund — 15,400 596,400 621,500 1,217,900 Lighting District Funds 470,545 510,800 512,400 532,400 1,044,800 Street Reconstruction Fund 673,663 619,900 582,400 124,400 706,800 Total Expenditures $ 17,047,132 $ 23,331,400 $ 36,886,900 $ 46,100,400 $ 82,987,300 Transportation Department Budget by Fund Street Maintenance Fund 34% Street Impact Fee Fund 47% Arterial & Collector Street District Fund 16% Metropolitan Planning Organization Fund 1% Lighting District Funds 1% Street Reconstruction Fund 1% The Street Maintenance District Fund is a special revenue fund that accounts for the City's Street Maintenance District. The District was created in 1990 and encompasses the entirety of City limits. The District is funded by special assessments paid by property owners in the district. Beginning in FY24, this fund also accounts for revenues from state gasoline taxes that can be used on street maintenance, street arterial & collector capital projects, or street reconstruction projects. Special assessments that fund this district are charged to property owners based on lot size. The 2025 Biennium Adopted Budget includes annual 3.0% increases in the assessment rates to keep up with construction cost inflation. The annual increase to a typical single-family lot size of 7,500 square-feet is approximately $8.53 in FY25 and in $8.78 FY26. See the Estimated Citizen Impact section on page 40 for more information. 119 Street Maintenance Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,865,400 $ 3,616,500 $ 3,616,500 Revenues Licenses & Permits $ 37,033 $ 28,000 $ 30,000 $ 31,000 $ 61,000 State Shared — 4,432,900 2,827,300 2,884,200 5,711,500 Charges for Services 8,220,620 9,060,700 9,425,800 9,805,700 19,231,500 Interest Income 41,037 20,000 20,000 20,000 40,000 Miscellaneous Revenue 451,977 800 1,000 1,000 2,000 Transfers In — 391,400 — — — Debt Proceeds 862,620 911,900 — — — Special Assessments 17,716 19,700 20,000 20,000 40,000 Total Revenues $ 9,631,002 $ 14,865,400 $ 12,324,100 $ 12,761,900 $ 25,086,000 Expenditures Salaries & Benefits $ 2,425,976 $ 2,542,600 $ 3,091,300 $ 3,464,000 $ 6,555,300 Operations & Maintenance 2,693,337 4,249,900 3,610,500 3,588,500 7,199,000 Capital Outlay 2,155,172 3,229,400 3,427,300 3,142,000 6,569,300 Debt Service/Loans 322,517 364,700 323,500 323,800 647,300 Transfers Out 2,132,584 2,727,700 3,300,100 3,713,700 7,013,800 Total Expenditures $ 9,729,585 $ 13,114,300 $ 13,752,700 $ 14,232,000 $ 27,984,700 Ending Balance $ 3,616,500 $ 2,187,900 $ 717,800 $ 717,800 Salaries & Benefits Addition of two Streets Operators (2 FTE) in each year of the biennium. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Street preservation efforts including annual mill & overlay projects happen on a construction season which typically spans two fiscal years. Depending on whether work falls before or after June 30th can cause large fluctuations in the total operational expenditures. FY25 includes a one-time project costs for the Bike and Pedestrian Project. Capital Capital increases generally support the effort to purchase equipment and move more street maintenance work in house due to rapid inflation and contractor availability. With the adoption of the budget, City Commission approved an increase of $50,000 to annual, multimodal projects (STR20). For more information, see Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Street Maintenance Fund Budget by Category Salaries & Benefits 23% Operations & Maintenance 26% Capital Outlay 23% Debt Service/ Loans 2% Transfers Out 25% Street Maintenance Fund Financial Trends 9.6M 14.9M 12.3M 12.8M 9.7M 13.0M 13.7M 14.2M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 120 The Street Impact Fee Fund accounts for impact fees collected from developers for capacity expanding road improvements. Impact fees are charged to new developments in Bozeman to fund capital costs associated with providing the additional streets these new developments create. The FY26 Budget includes $10.5 million in grant revenue in the intergovernmental category. The City has been awarded a $24 million grant through the Multimodal Project Discretionary Grant (MPDG) Program for the Kagy Improvements projects. The $10.5 million is the portion of the projects planned in the Street Impact Fee Fund. Appropriations are based on the Capital Improvement Plan and total approximately $37.7 million over the biennium. STREET IMPACT FEE FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 14,002,800 $ 17,211,800 $ 17,211,800 Revenues Intergovernmental $ — $ — $ — $ 10,500,000 $ 10,500,000 Charges for Services 5,205,583 8,174,900 8,174,900 8,420,100 16,595,000 Interest Income 311,234 132,000 132,000 132,000 264,000 Transfers In 202,070 — — — — Total Revenues $ 5,718,887 $ 8,306,900 $ 8,306,900 $ 19,052,100 $ 27,359,000 Expenditures Operations & Maintenance 53,334 239,700 50,000 50,000 100,000 Capital Outlay 4,621,353 4,549,400 16,368,200 21,360,200 37,728,400 Transfers Out 260,279 308,800 408,700 421,000 829,700 Total Expenditures $ 4,934,967 $ 5,097,900 $ 16,826,900 $ 21,831,200 $ 38,658,100 Ending Balance $ 17,211,800 $ 8,691,800 $ 5,912,700 $ 5,912,700 Operations The FY24 projection is higher than other years due to consulting services related to the Fowler Connection Design. $50K per year is a placeholder for possible consulting services that may be required as projects begin. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Street Impact Fee Fund Budget by Category Capital Outlay 98% Transfers Out 2% Street Impact Fee Fund Financial Trends $5.7M $8.3M $8.3M $19.1M $4.9M $5.1M $16.8M $21.8M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 121 The Arterial & Collector Street District Fund is funded by special assessments to property owners based on their property's square footage. The assessments pay for the “local share” of some street construction projects in advance of development. Impact fees can only be used to pay for the percentage of an improvement caused by new development. The remaining share must be paid by the City. The City also has the ability to create payback districts to recover the “local share” once an adjacent project is developed. An 3.0% rate increase in each year of the biennium is included in the 2025 Biennium Adopted Budget to keep up with construction inflation and the adopted capital improvement plan. The annual increase to a typical single-family lot size of 7,500 square-feet is approximately $1.80 in FY25 and in $1.86 FY26. See the Estimated Citizen Impact section on page 40 for more information. Street Arterial & Collector Street District Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 4,366,200 $ 3,560,000 $ 3,560,000 Revenues Intergovernmental $ — $ — $ 573,900 $ — $ 573,900 Charges for Services 1,662,399 1,816,500 1,883,000 1,906,000 3,789,000 Interest Income 85,529 20,000 20,000 20,000 40,000 Miscellaneous Revenue — 1,326,400 100,000 100,000 200,000 Debt Proceeds — — 2,885,400 2,712,900 5,598,300 Special Assessments 3,936 4,000 4,000 4,000 8,000 Total Revenues $ 1,751,864 $ 3,166,900 $ 5,466,300 $ 4,742,900 $ 10,209,200 Expenditures Operations & Maintenance 42,404 174,300 156,600 153,200 309,800 Capital Outlay 1,140,493 3,798,800 4,459,500 8,279,700 12,739,200 Debt Service/Loans — — — 326,000 326,000 Transfers Out 55,475 — — — — Total Expenditures $ 1,238,372 $ 3,973,100 $ 4,616,100 $ 8,758,900 $ 13,375,000 Ending Balance $ 3,560,000 $ 4,410,200 $ 394,200 $ 394,200 Operations Increase in FY24 Projection resulting from consulting services for capital projects including the Bicycle Boulevard Study and Bike/Pedestrian Connectivity Study. Budget over the biennium remains elevated for additional consulting on the Bike/Pedestrian Gaps Analysis (FY25) and the Transportation Master Plan (TMP) in both FY25 and FY26. Arterial & Collector Street District Fund Budget by Category Operations & Maintenance 2% Capital Outlay 95% Debt Service/ Loans 2% Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Arterial & Collector Street District Fund Financial Trends $1.8M $3.2M $5.5M $4.7M $1.2M $4.0M $4.6M $8.8M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 122 The Metropolitan Planning Organization (MPO) Fund is used to account for the revenue and expenditures specifically associated with the new Metropolitan Planning Organization for the Bozeman area. An MPO is an agency created by federal law to provide local elected officials input into the planning and implementation of federal transportation funds to metropolitan areas with populations greater than 50,000. This MPO will be administrated by the City, but decisions are made by board members from the City of Belgrade, Gallatin County, Montana Department of Transportation, and Streamline Transit in addition to the City of Bozeman. Metropolitan Planning Organization Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ — $ 417,500 $ 417,500 Revenues Intergovernmental $ — $ 417,500 $ 502,500 $ 438,600 $ 941,100 Transfers In — 15,400 74,600 — 74,600 Total Revenues $ — $ 432,900 $ 577,100 $ 438,600 $ 1,015,700 Expenditures Salaries & Benefits $ — $ — $ 288,100 $ 304,800 $ 592,900 Operations & Maintenance — 15,400 308,300 316,700 625,000 Total Expenditures $ — $ 15,400 $ 596,400 $ 621,500 $ 1,217,900 Ending Balance $ 417,500 $ 398,200 $ 215,300 $ 215,300 Salaries & Benefits Addition of 1 FTE in FY25 for Planned I/II. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations The Metropolitan Planning Organization (MPO) Fund was created in FY24. A significant portion of the operating budget over the biennium is for contracted services for development of the Long- Range Transportation Plan, the Public Participation Plan, and grant support. Other operating costs are for general office supplies. MPO Fund Budget by Category Salaries & Benefits 49% Operations & Maintenance 51% MPO Fund Financial Trends $—K $433K $577K $439K $—K $15K $596K $622K Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 123 Lighting District Funds are used to account for the special assessment revenues levied, received, and expended for street and public highway lighting provided to specific property owners. Lighting District Funds FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 504,900 $ 415,400 $ 415,400 Revenues Interest Income $ 10,618 $ — $ — $ — $ — Special Assessments 466,394 421,300 97,000 532,400 629,400 Total Revenues $ 477,012 $ 421,300 $ 97,000 $ 532,400 $ 629,400 Expenditures Operations & Maintenance $ 470,545 $ 510,800 $ 512,400 $ 532,400 $ 1,044,800 Total Expenditures $ 470,545 $ 510,800 $ 512,400 $ 532,400 $ 1,044,800 Ending Balance $ 415,400 $ — $ — $ — Operations Increases in operating costs associated with increased electricity costs. Lighting District Funds Budget by Category Operations & Maintenance 100% Lighting District Funds Financial Trends $477K $421K $97K $532K$471K $511K $512K $532K Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 124 The Street Reconstruction Fund is used to account for the use of Street Maintenance dollars dedicated to the reconstruction of streets and curbs. The Commission adopted Resolution No. 4507 which sets the City's policy for required matches with Special Improvement Districts (SIDs). The program was last updated May 18, 2020 with Commission adoption of Resolution No. 5174. Each project is dependent upon the creation of a SID to pay for a share of the project costs. Street Reconstruction Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 2,742,300 $ 2,154,500 $ 2,154,500 Revenues Interest Income $ 67,399 $ 32,100 $ 32,100 $ 32,100 $ 64,200 Total Revenues $ 67,399 $ 32,100 $ 32,100 $ 32,100 $ 64,200 Expenditures Operations & Maintenance $ 1,943 $ 464,900 $ — $ — $ — Capital Outlay 671,720 155,000 582,400 124,400 706,800 Total Expenditures $ 673,663 $ 619,900 $ 582,400 $ 124,400 $ 706,800 Ending Balance $ 2,154,500 $ 1,604,200 $ 1,511,900 $ 1,511,900 Operations FY24 Projected costs for consulting services for the reconstruction of South 6th from Babcock to Cleveland. There are no anticipated operating costs over the biennium. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Street Reconstruction Fund Budget by Category Capital Outlay 100% Street Reconstruction Fund Financial Trends $67K $32K $32K $32K $674K $620K $582K $124K Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 125 Vehicle Maintenance Fund (Internal Service Fund) The Vehicle Maintenance Fund is an internal service fund that accounts for the costs of repairing and maintaining vehicles of the City. Charges are assessed against departments when they have vehicles repaired in the internal shop. 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. •Emphasize the importance of having a well structured preventative maintenance program in place for all equipment and vehicles. Vehicle Maintenance Fund Budget by Category Salaries & Benefits 41% Operations & Maintenance 43% Capital Outlay 1% Transfers, 15% 2025 Biennium Adopted Budget The Vehicle Maintenance Fund is primarily funded by internal charges for services revenue from other City departments. Vehicle Maintenance Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ (880,900) $ 24,000 $ 24,000 Revenues Interest Income $ (13,185) $ (19,200) $ (19,200) $ (19,200) $ (38,400) Miscellaneous Revenue 12,513 10,000 — — — Internal Charges 2,130,913 3,370,000 2,651,100 2,981,200 5,632,300 Total Revenues $ 2,130,241 $ 3,360,800 $ 2,631,900 $ 2,962,000 $ 5,593,900 Expenditures Salaries & Benefits $ 820,145 $ 945,000 $ 1,056,000 $ 1,247,800 $ 2,303,800 Operations & Maintenance 1,281,133 1,116,800 1,195,500 1,220,200 2,415,700 Capital Outlay 51,258 120,000 — 52,000 52,000 Transfers Out 211,794 274,100 399,600 446,800 846,400 Total Expenditures $ 2,364,331 $ 2,455,900 $ 2,651,100 $ 2,966,800 $ 5,617,900 Ending Balance $ 24,000 $ 4,800 $ — $ — Salaries & Benefits Addition of a two Mechanics (2 FTE) in FY26, one dedicated to and funded by the Fire Department. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Inflationary increases in operating budget over the biennium. FY23 actual expenditures were slightly elevated due to higher than anticipated costs for goods purchased for resale. Goods purchased for resale are directly billed to associated departments and collected back through internal charges. Increases over the biennium are inflationary. Capital Planned purchase of Mohawk Wheel Lifts (VM08) in FY26. See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. 126 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Explore sustainable technology by pursuing and preparing for an electric and alternative fueled fleet 4.3 Strategic Infrastructure Choices 2.Maintain a robust preventative maintenance program so engines do not exceed their design emission levels 6.2 Protect Local Air Quality 3.Offer the best in class work place amenities and facilities 7.2 Employee Excellence 4.Work with departments on their vehicle purchases considering serviceability, environmental and climate influence and alternative propulsion systems 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Fleet Operational Time: Police Dept 4 95%93%92%92%92%95% Fleet Operational Time: Water/Sewer Dept 4 99%97%96%96%96%95% Fleet Operational Time: Streets Dept 4 92%91%90%90%90%92% Median Response Days for High-Priority Service Requests 2 29 39 8 10 10 2 Median Response Days for Medium-Priority Service Requests 2 12 12 9 12 12 6 Median Response Days for Low-Priority Service Requests 2 34 47 15 21 21 8 Percent Reactive Work Orders 2 25.48%14.69%24%22%22%<25% 127 Page Intentionally Left Blank 128 Wastewater Fund City Property owners are typically required to use the City’s wastewater treatment systems. Between 2019 and 2023 rate increases were zero for single family homeowners, and 2% annually for multi-family. Together these make up approximately 50% of all wastewater rate revenues. While rate increases were consistent with the rate study presented to City Commission in January 2019, the cost of providing services and maintaining infrastructure rose much quicker than anticipated over the time period. Cost increases for sewer renovations increased by approximately 16% annually over the same period. Because of this, financial models are showing the need for revenue increases to address the cost of the adopted CIP and operations over the next five years. An increase of 12.0% was included in the FY24 budget, and adopted by City Commission on August 13, 2024. Additional revenue increases of 12.0% in FY25 and 8.0% in FY26 are included in the 2025 Biennium Adopted Budget. A rate study is currently underway to inform future rates by customer classes and ensure proper revenue coverage and reserve amounts. The annual increase to the typical single family homeowner is estimated at approximately $71.22 in FY25 and in $53.17 FY26. See the Estimated Citizen Impact section on page 40 for more information. The Wastewater department also accounts for wastewater impact fees. Wastewater impact fees are collected from developers and restricted for capacity expanding wastewater capital improvements. A summary of the Capital Improvement Plan and the project listing can be found in the Capital Improvement Program section on page 211. Wastewater Fund Financial Trends $12.9M $18.7M $26.9M $18.3M $11.7M $24.2M $27.6M $22.5M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 2025 Biennium Adopted Budget Wastewater Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 14,080,600 $ 8,563,200 $ 8,563,200 Revenues Intergovernmental $ 7,048 $ 749,600 $ — $ — $ — Charges for Services 12,343,552 15,331,400 16,304,600 17,883,700 34,188,300 Interest Income 305,936 435,600 435,600 435,600 871,200 Miscellaneous Revenue 9,255 30,300 7,400 7,400 14,800 Transfers In 246,769 127,200 — — — Debt Proceeds — 2,040,000 10,200,000 — 10,200,000 Special Assessments 12 — — — — Total Revenues $ 12,912,571 $ 18,714,100 $ 26,947,600 $ 18,326,700 $ 45,274,300 Expenditures Salaries & Benefits $ 2,483,099 $ 2,815,700 $ 3,052,500 $ 3,248,800 $ 6,301,300 Operations & Maintenance 2,676,127 3,153,300 3,436,000 3,131,300 6,567,300 Capital Outlay 1,255,884 12,804,000 14,946,200 8,706,600 23,652,800 Debt Service/Loans 2,726,374 2,727,700 2,994,600 4,050,800 7,045,400 Transfers Out 2,529,193 2,730,800 3,136,500 3,378,100 6,514,600 Total Expenditures $ 11,670,677 $ 24,231,500 $ 27,565,800 $ 22,515,600 $ 50,081,400 Ending Balance $ 8,563,200 $ 7,945,000 $ 3,756,100 $ 3,756,100 129 Wastewater Operations (Division of Wastewater Department) The operations 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. 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, 51% Wastewater Operations, 49% 2025 Biennium Adopted Budget Wastewater Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Wastewater Operations Division Expenditures Salaries & Benefits $ 1,142,275 $ 1,260,500 $ 1,383,100 $ 1,475,100 $ 2,858,200 Operations & Maintenance 677,993 991,300 1,109,200 903,900 2,013,100 Capital Outlay 1,013,456 10,471,200 6,604,800 6,254,200 12,859,000 Debt Service/Loans 1,104,675 1,100,600 1,366,400 2,421,800 3,788,200 Transfers Out 1,349,145 1,419,400 1,561,700 1,684,100 3,245,800 Total Expenditures $ 5,287,543 $ 15,243,000 $ 12,025,200 $ 12,739,100 $ 24,764,300 Salaries & Benefits No FTE changes. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations FY25 includes one-time expenditures that result in increases, and subsequent decreases in operations in FY26. One is replacements and/or repairs to the Laurel Glen Lift Station pumps. There is also an assumed cost of debt issuance included to help fund major capital improvement projects in the adopted capital plan, and spread that cost out to rate payers over time. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Wastewater Operations Division Budget by Category Salaries & Benefits 12% Operations & Maintenance, 8% Capital Outlay 52% Debt Service/Loans 15%Transfers Out 13% 130 Division Goals and Performance Measurements Division Goals Goal Strategic Plan 1.Maintain low number of sewer backups by continuing a proactive maintenance plan 3.2 Health & Safety Action 2.Provide a more informed replacement strategy and identify any other issues with our aging infrastructure 4.3 Strategic Infrastructure Choices Performance Measurements Measure Div. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Sanitary Sewer Overflow Events per 100 Miles of Main 1, 2 0.4 0.8 1.2 1.2 1.2 1.2 Miles of Root Cut Affected City Mains 1, 2 57.6 57.6 57.6 57.6 57.6 56.0 Miles of Flushed Mains 1, 2 73.9 55.1 83.0 56.0 56.5 41.3 Percent of Mains Video-Inspected 1 ND14 ND 0.2 0.2 0.2 0.2 13114 ND: No data available Water Reclamation Facility (WRF) (Division of Wastewater Department) 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. 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 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, 51% Wastewater Operations, 49% 2025 Biennium Adopted Budget Wastewater Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Water Reclamation Facility Division Expenditures Salaries & Benefits $ 1,340,824 $ 1,555,200 $ 1,669,400 $ 1,773,700 $ 3,443,100 Operations & Maintenance 1,998,135 2,162,000 2,326,800 2,227,400 4,554,200 Capital Outlay 242,429 2,332,800 8,341,400 2,452,400 10,793,800 Debt Service/Loans 1,621,699 1,627,100 1,628,200 1,629,000 3,257,200 Transfers Out 1,180,048 1,311,400 1,574,800 1,694,000 3,268,800 Total Expenditures $ 6,383,134 $ 8,988,500 $ 15,540,600 $ 9,776,500 $ 25,317,100 Salaries & Benefits No FTE changes. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Increase in FY25 for contracted services to assist with Montana Pollutant Discharge Elimination System (MPDES) permit renewals. Reduction in FY26 resulting from completion of on-going contracts. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Water Reclamation Facility Division Budget by Category Salaries & Benefits 14% Operations & Maintenance 18% Capital Outlay 43% Debt Service/Loans 13% Transfers Out, 13% 132 Division Goals and Performance Measurements Division Goals Goal Strategic Plan 1.Protect and enhance the water quality of the East Gallatin River by maintaining strict compliance with the City’s MPDES permit and meet EPA 503 Rules for biosolids 6 A Sustainable Environment 2.Train new staff 7.2 Employee Excellence 3.Establish baselines for operational costs and work to implement performance targets 7.4 Performance Metrics Performance Measurements Measure Div. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Percent Preventative Maintenance 3 95%91%95%95%95%95% Percent Corrective Maintenance 3 5%9%5%5%5%5% Discharge Phosphorus Loading per Million Gallons of Wastewater Flow Treated Daily 1 1.61 2.63 3.25 3.25 3.25 3.87 Discharge Nitrogen Loading per Million Gallons of Wastewater Flow Treated Daily 1 49.8 59.0 59.0 60.0 60.0 77.3 Total O&M Dollars per Million Gallons of Wastewater Flow Treated Annually 3 $1,882 $1,626 $1,700 $1,700 $1,700 $1,608 133 Page Intentionally Left Blank 134 Water Fund City Property owners are typically required to use the City’s water treatment and distribution systems. Between 2019 and 2023 rate increases were zero for single family homeowners, and 1% annually for multi-family. Together these make up approximately 50% of all water rate revenues. While rate increases were consistent with the rate study presented to City Commission in January 2019, the cost of providing services and maintaining infrastructure rose much quicker than anticipated over the time period. Cost increases for water renovations increased by approximately 11% annually over the same period. Because of this, financial models are showing the need for revenue increases to address the cost of the adopted CIP and operations over the next five years. An increase of 12.0% was included in the FY24 budget, and adopted by City Commission on August 13, 2024. Additional revenue increases of 12.0% in FY25 and 10.0% in FY26 are included in the 2025 Biennium Adopted Budget. A rate study is currently underway to inform future rates by customer classes and ensure proper revenue coverage and reserve amounts. The estimated annual increase to the typical single-family homeowner is approximately $57.33 in FY25 and in $53.51 FY26. See the Estimated Citizen Impact section on page 40 for more information. The Water Fund includes the accounting for water impact fees. Water impact fees are collected from developers and are restricted for capacity expanding water capital improvements. Both a summary of the Capital Improvement Plan and the project listing can be found in the Capital Improvement Program section on page 211. Water Fund Financial Trends $18.5M $21.0M $21.2M $22.5M $15.7M $30.8M $20.6M $26.5M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 2025 Biennium Adopted Budget Water Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 40,295,100 $ 30,501,200 $ 30,501,200 Revenues Intergovernmental $ 1,296,689 $ 317,900 $ 535,900 $ — $ 535,900 Charges for Services 14,886,895 18,969,300 19,260,100 21,095,200 40,355,300 Interest Income 847,904 1,231,300 1,231,300 1,231,300 2,462,600 Miscellaneous Revenue 124,403 238,500 149,600 149,600 299,200 Transfers In 1,351,387 214,700 — — — Special Assessments 9 — — — — Total Revenues $ 18,507,286 $ 20,971,700 $ 21,176,900 $ 22,476,100 $ 43,653,000 Expenditures Salaries & Benefits $ 3,210,787 $ 3,515,000 $ 3,789,200 $ 4,073,400 $ 7,862,600 Operations & Maintenance 3,307,024 4,890,500 4,000,300 3,950,300 7,950,600 Capital Outlay 3,470,672 16,799,000 6,694,700 12,057,200 18,751,900 Debt Service/Loans 1,796,523 1,796,500 1,796,200 1,795,900 3,592,100 Transfers Out 3,874,345 3,764,600 4,343,800 4,666,700 9,010,500 Total Expenditures $ 15,659,350 $ 30,765,600 $ 20,624,200 $ 26,543,500 $ 47,167,700 Ending Balance $ 30,501,200 $ 31,053,900 $ 26,986,500 $ 26,986,500 135 Water Operations (Division of Water Department) This division of the Water Department is 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. 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 Fund and new capacity projects are funded by the Water Impact Fee Fund. Distribution of Water Budget Water Operations, 42% Water Treatment Plant 53% Water Conservation 5% 2025 Biennium Adopted Budget Water Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Water Operations Division Expenditures Salaries & Benefits $ 1,713,264 $ 1,807,600 $ 1,955,600 $ 2,085,900 $ 4,041,500 Operations & Maintenance 1,485,646 1,731,400 1,858,600 1,870,400 3,729,000 Capital Outlay 546,525 7,064,300 3,019,000 4,268,500 7,287,500 Debt Service/Loans — — — — — Transfers Out 2,160,511 1,985,700 2,210,200 2,391,700 4,601,900 Total Expenditures $ 5,905,946 $ 12,589,000 $ 9,043,400 $ 10,616,500 $ 19,659,900 Salaries & Benefits Addition of an Engineer I/II (1 FTE) in FY25. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Meter reading costs are dependent on growth which is driving costs up. The primary driver of increases in FY25 for state-of-the art leak detection pilot work to identify locations for priority water main replacement as well as increased water service replacement to increase accuracy of water measurement. FY26 indicates a slight reduction with fewer main repairs anticipated. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Water Operations Division Budget by Category Salaries & Benefits 21% Operating 19% Capital 37% Transfers 23% 136 Division Goals and Performance Measurements Division Goals Goal Strategic Plan 1.Handle water emergencies in a safe and efficient manner and restore water service to our customers quickly 7.5 Funding and Delivery of City Services 2.Replace four more lead services and approximately 30 more galvanized services based on the recently completed comprehensive water service inventory 4.3 Strategic Infrastructure Choices 3.Work to promote water conservation; Water meter testing program, Hydrant leak loggers and Satellite Leak Detection 6.3 Climate Action Performance Measurements Measure Div. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target New Water Service Line Inspections 3 194 259 250 250 250 250 Disruption of Water Service/1,000 Accounts 1 0.7 0.8 1.4 1.4 1.4 1.4 Water Main Breaks/Leaks 100 Miles of Pipe 1, 3 2.9 3.0 8.4 8.4 8.4 8.4 137 Water Treatment Plant (WTP) (Division of Water Department) The Water Treatment Plants maintain a quality drinking water supply. The City has two 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. 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, 42% Water Treatment Plant 53% Water Conservation 5% 2025 Biennium Adopted Budget Water Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Water Treatment Plant Division Expenditures Salaries & Benefits $ 1,120,398 $ 1,204,500 $ 1,238,700 $ 1,352,000 $ 2,590,700 Operations & Maintenance 1,423,466 2,693,500 1,625,100 1,567,400 3,192,500 Capital Outlay 2,924,147 9,697,500 3,675,700 7,788,700 11,464,400 Debt Service/Loans 1,796,523 1,796,500 1,796,200 1,795,900 3,592,100 Transfers Out 1,713,833 1,732,300 2,084,500 2,224,000 4,308,500 Total Expenditures $ 8,978,366 $ 17,124,300 $ 10,420,200 $ 14,728,000 $ 25,148,200 Salaries & Benefits No FTE changes. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Significant decrease from FY24 projected to FY25 due primarily to reduction in contracted services related to the completion of water rights adjudication and fuels thinning project. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Water Treatment Plant Division Budget by Category Salaries & Benefits 10% Operations & Maintenance 13% Capital Outlay 46% Debt Service/Loans 14% Transfers Out 17% 138 Division Goals and Performance Measurements Division Goals Goal Strategic Plan 1.Protect public health and maintain high-quality drinking water 6.1 Clean Water Supplies 2.Meet water demands of the City 6.1 Clean Water Supplies 3.Optimize the Sourdough and Lyman Creek Water Plants 7.3 Best Practices, Creativity & Foresight 4.Anticipate future water quality and quantity needs 6.1 Clean Water Supplies Performance Measurements Measure Div. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Purchased Median Daily Surplus Hyalite Water 4 $1.13M $1.04M $1.00M $1.00M $1.00M $1.50M Number of samples per 10,000 people 1 1,000 906 890 871 853 1,000 Percent Corrective Maintenance 1, 2 13%12%19%21%21%40% Percent Preventative Maintenance 1, 2 87%88%81%79%79%60% 139 Water Conservation (Division of Water Department) Protect and enhance water resources through conservation in order to meet the Integrated Water Resources Plan's (IWRP) 50-year demand reduction target. 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, 42% Water Treatment Plant 53% Water Conservation 5% 2025 Biennium Adopted Budget Water Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Water Conservation Division Expenditures Salaries & Benefits $ 377,124 $ 502,900 $ 594,900 $ 635,500 $ 1,230,400 Operations & Maintenance 394,859 465,600 516,600 512,500 1,029,100 Capital Outlay — 37,200 — — — Debt Service/Loans — — — — — Transfers Out — 46,600 49,100 51,000 100,100 Total Expenditures $ 771,983 $ 1,052,300 $ 1,160,600 $ 1,199,000 $ 2,359,600 Salaries & Benefits No FTE changes. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Increases in operations driven primarily by contracted services to support the development of regulatory measures to support the conservation of water, Bozeman Residential End Uses of Water (REUW) Study, and commercial water training and program development. Capital None Water Conservation Division Budget by Category Salaries & Benefits 52% Operations & Maintenance 44% Transfers Out 4% 140 Division Goals and Performance Measurements Division Goals Goal Strategic Plan 1.Protect and enhance water resources through conservation 6.3 Climate Action 2.Increase staff capacity to expand the reach of outreach and education initiatives 7.2 Employee Excellence 3.Participate in community development plan review and implement water efficient landscape ordinance 6.3 Climate Action 4.Utilize data analysis to inform future priorities 7.3 Best Practices, Creativity & Foresight 5.Implement 2023 Water Conservation Plan 6.3 Climate Action 6 Evaluate feasibility of water efficient growth policies 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Div. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Number of Outdoor Sprinkler System Assessments 1 65 119 144 158 174 200 Toilet Rebates 1 106 93 131 144 159 Annual Increase Clothes Washer Rebates 1 47 43 52 57 63 Annual Increase Shower Head Rebates 1 15 52 57 68 79 Annual Increase Landscape & Irrigation System Rebates 1 105 147 187 224 258 Annual Increase Gallons Per Capita Per Day Water Demand 1 91.0 87.1 96.0 94.0 92.0 Annual Decrease 141 Page Intentionally Left Blank 142 Public Welfare Recreation (Parks & Recreation) - The Recreation department is responsible for identifying the recreation needs of our growing community and offering quality programs in diverse interest areas that satisfy those needs. The department 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/Tree Maintenance Fund (Parks & Recreation) - The Forestry department 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 & Trails District (Parks & Recreation) - The Parks department 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 department with assistance from the Cemetery department. The cemetery currently contains over 16,000 burial sites, three columbaria, nine dedicated affiliation areas and ample room for expansion. 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. Neighborhood Services - Neighborhood Services primarily focuses on the health and safety impacts related to houseless residents living in the right-of-way. This department includes the Code Enforcement Division. 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. Community Housing (Economic 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. 143 Recreation/Aquatics (Parks & Recreation Department, General Fund) The Recreation department is responsible for identifying the recreation needs of our growing community and offering quality programs in diverse interest areas that satisfy those needs. The department 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. 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 operating expenditures. Recreation 6%General Fund Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Complete facility upgrades at Swim Center, Bogert Pool, Lindley Center, and Story Mill Community Center 4.3 Strategic Infrastructure Choices 2.Focus on staffing restructure and recruitment 7.2 Employee Excellence 3.Complete rate study 7.5 Funding and Delivery of City Services 4.Oversee all aquatics-related activities and programs 3.4 Active Recreation Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Percentage of participants satisfied with recreation programs 2 98%98%98%98%98%90% Recreation Program Cost Recovery 3 25%27%30%40%45%50% Recreation staffing per 10,000 residents 2 19 19 20 20 21 8.3 Pools per 10,000 Residents 4 0.36 0.34 0.33 0.32 0.3 1 Number of Individuals on the Aquatics Program Waitlists 4 912 1,200 950 1,300 1,350 200 144 Recreation Performance Measurements Aquatics Performance Measurements 2025 Biennium Adopted Budget The Recreation Department is primarily accounted for in the General Fund. Recreation also has unlimited General Obligation Debt Service which was approved by voters to fund improvements to the Swim Center, Lindley Center, and Bogert Pool. See the Debt Service Funds section on page 178 for additional information. RECREATION Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund General Fund $ 3,833,472 $ 8,837,600 $ 3,803,600 $ 3,259,400 $ 7,063,000 Story Mansion Special Revenue Fund 41,913 40,200 52,500 53,800 106,300 GO Bonds Fire Station 2 & Rec Improvements Debt Service Fund — — 174,000 173,000 347,000 Recreation Improvements Capital Construction Fund 24,325 4,436,900 — — — Total Expenditures $ 3,899,710 $ 13,314,700 $ 4,030,100 $ 3,486,200 $ 7,516,300 145 Recreation Total Department Budget by Category Salaries & Benefits 54%Operations & Maintenance 21% Capital Outlay 10% Debt Service/ Loans, 14% Transfers Out, 2% General Fund General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 1,326,274 $ 1,866,700 $ 2,114,000 $ 2,489,500 $ 4,603,500 Operations & Maintenance 699,782 885,900 869,600 769,900 1,639,500 Capital Outlay 1,807,416 6,085,000 820,000 — 820,000 Total Expenditures $ 3,833,472 $ 8,837,600 $ 3,803,600 $ 3,259,400 $ 7,063,000 Salaries & Benefits Addition of 2 FTE: •Recreation Leader I Reclass (0.62 FTE) in FY25 •Lifeguard II (1.38 FTE) and Recreation Leader I Reclass (0.62 FTE) in FY26 Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations FY25 and FY26 assume the Swim Center and Bogert Pool are operational all year, resulting in increases to electricity and other general operations. There are also new equipment purchases to support athletic programs in the Story Mill Community Center such as basketball, volleyball, and pickleball. No major equipment purchases are planned in FY26 resulting in the slight decline in operating costs. Capital Significant capital includes improvements to the Swim Center, Lindley Center, and Bogert Pool. The General Fund pays for the portion which is not covered by voted bonds. See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. The Story Mansion Special Revenue Fund is used to account for revenue collected from renting the Story Mansion to the public for meetings, dinners, receptions, and other special occasions and expenditure of those funds on repair and maintenance of the historic building. Increases are inflationary in addition to adding budget for additional preventative maintenance. Story Mansion Special Revenue Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 7,300 $ 12,100 $ 12,100 Revenues Charges for Services $ 39,685 $ 45,000 $ 47,300 $ 49,700 $ 97,000 Total Revenues $ 39,685 $ 45,000 $ 47,300 $ 49,700 $ 97,000 Expenditures Operations & Maintenance $ 41,913 $ 40,200 $ 49,900 $ 51,100 $ 101,000 Transfers Out — — 2,600 2,700 5,300 Total Expenditures $ 41,913 $ 40,200 $ 52,500 $ 53,800 $ 106,300 Ending Balance $ 12,100 $ 6,900 $ 2,800 $ 2,800 146 The Recreation Improvements Capital Construction Fund is used to account for the voter approved bond- funded recreation improvements to the Bozeman Swim Center, Bogert Pool, and Lindley Center. The General Obligation Bonds were issued in Fiscal Year (FY)24. Recreation Improvements Capital Construction Fund (Swim Center, Bogert Pool, and Lindley Center)FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,712,800 $ — $ — Revenues Interest Income $ — $ 300,000 $ — $ — $ — Transfers In 1,750,000 — — — — Debt Proceeds — 2,424,100 — — — Total Revenues $ 1,750,000 $ 2,724,100 $ — $ — $ — Expenditures Operations & Maintenance $ — $ 55,700 $ — $ — $ — Capital Outlay 24,325 2,631,200 — — — Transfers Out — 1,750,000 — — — Total Expenditures $ 24,325 $ 4,436,900 $ — $ — $ — Ending Balance $ — $ — $ — $ — 147 Forestry/Tree Maintenance Fund (Parks & Recreation Department) The Forestry department 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. Major Objectives •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. Tree Maintenance Fund Financial Trends $0.9M $1.0M $1.0M $1.0M$1.0M $1.1M $1.1M $1.2M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Continue both reactive and proactive maintenance for Bozeman’s 26,000+ public trees in boulevards, developed city parks, and city- owned properties 6.3 Climate Action 2 Further develop Branch Out Bozeman – Volunteer planting opportunities and canopy mapping tools 1.2 Community Engagement 3 Increase Community Outreach & Education 1.1 Outreach 4 Update 2016 Urban Forest Management Plan 6.3 Climate Action 5 Update Street Tree Guide (Approved & prohibited species for boulevards) 1.1 Outreach Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Percent of Trees Planted 1 1%1%1%1%1%1% Percent of Trees Pruned 1 7%9%6%7%7%7% Percent of Trees Removed 1 1%2%1%1%1%1% Percent of Trees Inspected 1 3%8%7%7%7%7% Proactive Tree Maintenance 1 80%87%90%90%90%90% Reactive Tree Maintenance 1 20%13%10%10%10%10% Percent of population that is Ash 1 27%25%23%21%19%20% 148 Performance Measurements (continued) 2025 Biennium Adopted Budget The Tree Maintenance Fund accounts for special assessment revenues levied, received, and expended for tree maintenance provided in the public right of way. The 2025 Biennium Adopted Budget and Capital Improvement Plan are consistent with the Urban Forestry Management Plan. The 2025 Biennium Adopted Budget includes a 3.0% increase in FY25 and 3.0% in FY26 to continue to provide the desired level of service. The annual increase to a typical single-family lot size of 7,500 square-feet is approximately $0.92 in FY25 and in $0.94 FY26. See the Estimated Citizen Impact section on page 40 for more information. Tree Maintenance District (Forestry) Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 621,700 $ 476,400 $ 476,400 Revenues Intergovernmental $ 850 $ — $ — $ — $ — Charges for Services 889,983 936,000 973,700 1,012,900 1,986,600 Interest Income 14,228 10,000 10,000 10,000 20,000 Miscellaneous Revenue 32,614 15,000 15,000 15,000 30,000 Special Assessments 2,090 2,000 2,000 2,000 4,000 Total Revenues $ 939,764 $ 963,000 $ 1,000,700 $ 1,039,900 $ 2,040,600 Expenditures Salaries & Benefits $ 555,968 $ 545,500 $ 671,700 $ 718,600 $ 1,390,300 Operations & Maintenance 235,086 220,500 219,300 220,000 439,300 Capital Outlay 84,986 215,000 52,000 54,100 106,100 Transfers Out 102,349 127,300 169,900 182,900 352,800 Total Expenditures $ 978,389 $ 1,108,300 $ 1,112,900 $ 1,175,600 $ 2,288,500 Ending Balance $ 476,400 $ 228,500 $ 228,500 Salaries & Benefits No FTE changes. Increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations No significant variations in operating budget 149 Capital The Capital Improvement Program includes the planned purchase of a half-ton pickup truck in both fiscal years of the biennium. See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Tree Maintenance Fund Budget by Category Salaries & Benefits 61% Operations & Maintenance 19% Capital Outlay 5% Transfers Out 15% 150 Page Intentionally Left Blank 151 Parks & Trails District (Parks & Recreation Department) The Parks & Trails District department is responsible for the overall development and maintenance of 78 public parks, 61+ miles of trails and associated sports fields and open space within the City limits. 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. Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Continue to manage the development and maintenance of parks, trails, and open space within the City limits 6.5 Parks, Trails & Open Space 2 Implement PRAT Plan: UDC, Wayfinding, Anchor Routes 6.5 Parks, Trails & Open Space 3 Prioritize deferred maintenance: Irrigation upgrades, playground upgrades, restroom upgrades, trail & bridge repair, athletic field renovations, fencing/backstop replacement & repair 6.5 Parks, Trails & Open Space 4 Assume Sports Parks maintenance and operations 6.5 Parks, Trails & Open Space 5 Complete new construction projects including parking lots, volleyball pits, BMX Park, Splash Pad, Pavilions, Rugby pitch 6.5 Parks, Trails & Open Space Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Acres of Parkland/1,000 residents 1 18.5 17.1 17.3 16.8 16.3 9.9 Percent of City Limits within 1/2 mile of a park 1 90%96%96%96%96%100% Parks FTE/10,000 Residents 1 2.1 3.3 4.3 4.4 4.6 8.3 152 2025 Biennium Adopted Budget The Parks & Trails District Department is primarily accounted for in the Parks & Trails District Fund. Other funds accounted for within the Parks & Trails District Department include the Fish, Wildlife & Parks Management Special Revenue Fund, and Park Land Trust Fund. More information on these funds and detailed budgets are provided below. Parks & Trails Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund Fish, Wildlife & Parks Management Special Revenue Fund 77 100 100 100 200 Parks & Trails District Fund $ 4,915,020 $ 7,473,500 $ 9,034,100 $ 8,287,100 $ 17,321,200 Park Land Trust Fund 123,159 857,400 543,800 525,000 1,068,800 Total Expenditures $ 5,038,256 $ 8,331,000 $ 9,578,000 $ 8,812,200 $ 18,390,200 The Fish, Wildlife & Parks Management Special Revenue Fund was originally created to account for the Montana Fish, Wildlife & Parks lease of the East Gallatin park on Manley Road. The City stopped leasing to the State in fiscal year 2012. The fund is now used to account for the utilities payment for the East Gallatin Park on Manley Road. Remaining fund balance from the lease payments and interest income support the annual electricity costs for the park. Fish, Wildlife & Parks Management Special Revenue Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 21,600 $ 21,700 $ 21,700 Revenues Interest Income $ 426 $ 200 $ 200 $ 200 $ 400 Total Revenues $ 426 $ 200 $ 200 $ 200 $ 400 Expenditures Operations & Maintenance $ 77 $ 100 $ 100 $ 100 $ 200 Total Expenditures $ 77 $ 100 $ 100 $ 100 $ 200 Ending Balance $ 21,700 $ 21,800 $ 21,900 $ 21,900 153 The Parks & Trails District Fund is a special assessment district which was created by voters in 2021. The district is funded by special assessments levied on all properties within the district based on lot size. The 2025 Biennium Adopted Budget includes annual 3.0% increases in the assessment rates to keep up with construction cost inflation. The annual increase to a typical single-family lot size of 7,500 square-feet is approximately $6.27 in FY25 and in $6.45 FY26. See the Estimated Citizen Impact section on page 40 for more information. Parks & Trails District Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 3,364,500 $ 2,793,100 $ 2,793,100 Revenues Intergovernmental $ — $ 60,000 $ — $ — $ — Charges for Services 5,888,241 6,593,400 6,847,600 7,112,100 13,959,700 Interest Income 62,884 13,800 13,800 13,800 27,600 Miscellaneous Revenue 55,542 125,500 10,000 10,000 20,000 Transfers In 375,977 96,100 — — — Debt Proceeds — — 550,800 153,000 703,800 Special Assessments 13,346 13,300 13,300 13,300 26,600 Total Revenues $ 6,395,990 $ 6,902,100 $ 7,435,500 $ 7,302,200 $ 14,737,700 Expenditures Salaries & Benefits $ 1,555,520 $ 2,318,000 $ 3,725,800 $ 3,828,700 $ 7,554,500 Operations & Maintenance 2,345,505 2,493,600 2,663,600 2,585,100 5,248,700 Capital Outlay 467,028 1,850,100 1,640,000 715,000 2,355,000 Debt Service/Loans — 125,900 125,900 211,900 337,800 Transfers Out 546,968 685,900 878,800 946,400 1,825,200 Total Expenditures $ 4,915,020 $ 7,473,500 $ 9,034,100 $ 8,287,100 $ 17,321,200 Ending Balance $ 2,793,100 $ 1,194,500 $ 209,600 $ 209,600 Salaries & Benefits All Parks & Trails Department personnel is accounted for the Parks & Trails District Fund. The addition of an Assistant Parks & Recreation Director (1 FTE) is included in FY25. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Increases in operational costs due primarily to planned improvements to existing bridges in the wetlands area as well as continually absorbing more parkland. The budget includes $50K in each year to perform an engineering study of Bozeman Creek and a land use analysis of future park property along Bozeman Creek. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Parks & Trails District Fund Budget by Category Salaries & Benefits, 44% Operations & Maintenance 30% Capital Outlay 14% Debt Service/ Loans 2% Transfers Out 11% Parks & Trails District Fund Financial Trends $6.4M $6.9M $7.4M $7.3M $4.9M $7.5M $9.0M $8.3M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget 154 Park Land Trust Fund accounts for monies collected for the purpose of acquiring and developing City Parks. The primary source of revenue for this fund is Cash In Lieu of Park Land, which is classified below as Miscellaneous Revenue. Requirements for parkland area, or cash in lieu equivalent, are detailed in the Bozeman Municipal Code (38.420.). Park Land Trust Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,992,900 $ 2,231,700 $ 2,231,700 Revenues Interest Income $ 40,848 $ 66,100 $ 66,100 $ 66,100 $ 132,200 Miscellaneous Revenue 823,292 786,200 786,200 809,800 1,596,000 Transfers In — 243,900 — — — Total Revenues $ 864,140 $ 1,096,200 $ 852,300 $ 875,900 $ 1,728,200 Expenditures Operations & Maintenance $ 20,145 $ 260,000 $ 393,800 $ 525,000 $ 918,800 Capital Outlay 3,014 363,600 150,000 — 150,000 Debt Service/Loans 100,000 233,800 — — — Total Expenditures $ 123,159 $ 857,400 $ 543,800 $ 525,000 $ 1,068,800 Ending Balance $ 2,231,700 $ 2,540,200 $ 2,891,100 $ 2,891,100 Operations Significant increase in operating projection for FY24 for the Community Partner Grant Program ($200k) as all as $60k in consulting services for the PRAT Anchor Route Study for Cattail Creek. The FY25 and FY26 budgets include plans for way finding, Spanish language, and watercourse interpretative signage. In addition, the FY26 budget includes plans for Park and Trail Master Planning per PRAT. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Park Land Trust Fund Budget by Category Operations & Maintenance 86% Capital Outlay 14% 155 Cemetery (Parks & Recreation Department / General Fund/Cemetery Perpetual Fund) 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 department with assistance from the Cemetery department. The cemetery currently contains over 16,000 burial sites, three columbaria, nine dedicated affiliation areas and ample room for expansion. 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 efforts towards the completion of the Southwest Veteran's Cemetery Budget Allocation Funding primarily through the General Fund, making up 2% of the fund's operating expenditures. Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Open four new burial blocks 7.5 Funding and Delivery of City Services 2 Continue construction of Southwest Montana Veteran’s Cemetery (Plaza & Columbarium) 4.3 Strategic Infrastructure Choices 3 Complete irrigation rehabilitation 7.5 Funding and Delivery of City Services 4 Install additional columbarium in FY25 4.3 Strategic Infrastructure Choices 5 Continued providing professional and dignified internment services 7.5 Funding and Delivery of City Services Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Percent of burial and interments performed within 24 hours of funeral home notice 5 100%100%100%100%100%100% Percent of Customer Inquiries Responded to within 24 Hours 5 100%100%100%100%100%100% Block/Lot and Niche Development Availability: Ash burial sites 1 100 80 80 50 40 Meet Demand Block/Lot and Niche Development Availability: Standard burial sites 1 355 280 270 845 800 Meet Demand Block/Lot and Niche Development Availability: Columbarium spaces 4 80 80 65 45 45 Meet Demand 156 Performance Measurements (continued) 2025 Biennium Adopted Budget The Cemetery Department is primarily accounted for in the General Fund. The other fund that accounts for Cemetery Department is the Cemetery Perpetual Care Trust Fund. More information and a detailed budget is provided below. CEMETERY Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund General Fund $ 656,222 $ 1,138,400 $ 1,154,000 $ 751,000 $ 1,905,000 Cemetery Perpetual Care Trust Fund — — — — — Total Expenditures $ 656,222 $ 1,138,400 $ 1,154,000 $ 751,000 $ 1,905,000 General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 373,729 $ 402,400 $ 452,200 $ 449,700 $ 901,900 Operations & Maintenance 215,438 223,000 241,800 236,300 478,100 Capital Outlay 67,055 513,000 460,000 65,000 525,000 Total Expenditures $ 656,222 $ 1,138,400 $ 1,154,000 $ 751,000 $ 1,905,000 157 Salaries & Benefits No FTE changes. Increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations FY25 includes work related primarily to the Southwest Montana Veteran's Cemetery including irrigation repairs, installation of new blocks, and replacement of computer at Vet's wall kiosk. These one-time costs result in a slight reduction to FY26 budget. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Cemetery Department Budget by Category Salaries & Benefits 47% Operations & Maintenance 25% Capital Outlay 28% The Perpetual Cemetery Care Fund accounts for the maintenance fees received from the sale of City cemetery lots, which are required 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. Cemetery Perpetual Care Trust Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,816,000 $ 1,915,800 $ 1,915,800 Revenues Charges for Services $ 93,173 $ 79,800 $ 82,200 $ 84,700 $ 166,900 Interest Income 38,710 20,000 20,000 20,000 40,000 Total Revenues $ 131,883 $ 99,800 $ 102,200 $ 104,700 $ 206,900 Expenditures $ — $ — $ — $ — $ — Total Expenditures $ — $ — $ — $ — $ — Ending Balance $ 1,915,800 $ 2,018,000 $ 2,122,700 $ 2,122,700 158 Page Intentionally Left Blank 159 Library (General Fund/Library Depreciation Fund) 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. 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 fund's operating expenditures. Library 7% General Fund Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Provide high-quality and accessible library services for all 7.3 Best Practices, Creativity & Foresight 2 Embed equity, diversity, and inclusion all library activities 3.3 Friendly Community 3 Design and plan for adequate resources to meet the community's growing needs 5.1 Civic and Cultural Infrastructure 4 Encourage staff to serve the public with excellence 7.2 Employee Excellence Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Program Attendance: All (per FTE)1, 2 592 842 1,100 1,210 1,331 800 Circulation - Print 1 425,293 428,537 425,016 446,266 468,580 Dependent on External Factors Circulation - Audiobook 1 25,828 18,813 17,726 16,800 15,800 Dependent on External Factors Circulation - Video 1 53,803 46,238 50,367 52,885 55,530 Dependent on External Factors Digital Circulation (eBooks, Audio, Video)1 216,592 244,807 225,000 257,047 269,900 Annual Increase Library physical materials (print, audio, video)1 487,647 473,766 467,769 458,133 448,695 Dependent on External Factors Bookmobile physical materials (print, audio, video)1 13,214 24,227 33,060 46,284 64,800 Annual Increase 160 Performance Measurements (continued) 2025 Biennium Adopted Budget The Library Department is primarily accounted for in the General Fund. The Library Depreciation Fund is also a part of the Library Department. More information on that fund and a detailed budget is provided below. Library Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund General Fund $ 3,074,837 $ 3,388,100 $ 3,991,600 $ 3,878,500 $ 7,870,100 Library Depreciation Fund 320,897 60,000 262,000 — 262,000 Total Expenditures $ 3,395,734 $ 3,448,100 $ 4,253,600 $ 3,878,500 $ 8,132,100 Department Expenditure Budget by Category FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 2,430,693 $ 2,661,900 $ 3,178,300 $ 3,024,000 $ 6,202,300 Operations & Maintenance 604,976 726,200 813,300 854,500 1,667,800 Capital Outlay 360,065 60,000 262,000 — 262,000 Total Expenditures $ 3,395,734 $ 3,448,100 $ 4,253,600 $ 3,878,500 $ 8,132,100 161 Salaries & Benefits Personnel for the Library Department is accounted for the General Fund. An increase in FTE for two of the Librarian I positions (1.25 FTE total) is included in FY25. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Increases over the biennium due primarily to increased costs for and the addition of digital subscription services. FY25 budget also includes budget in contracted services to conduct a diversity audit of the materials collections as well as the purchase of new computers for public use and the addition of two self-checkouts for the main floor. Capital The FY25 budget includes budget to replace a heavily used section of carpet (LIB22). See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Capital for the Library Department is primarily accounted for in the Library Depreciation Fund. Library Department Budget by Category Salaries & Benefits 76% Operations & Maintenance 21% Capital Outlay 3% The General Fund accounts for the majority of Library expenditures that are not funded by a special source. General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 2,430,693 $ 2,661,900 $ 3,178,300 $ 3,024,000 $ 6,202,300 Operations & Maintenance 599,764 726,200 813,300 854,500 1,667,800 Capital Outlay 44,380 — — — — Total Expenditures $ 3,074,837 $ 3,388,100 $ 3,991,600 $ 3,878,500 $ 7,870,100 The Library Depreciation Fund is a Construction Fund established to fund the replacement and acquisition of property, capital improvements, and equipment necessary to maintain and improve library services. The primary source of revenue is funds that have been allocated for library services in the General Fund which have not been expended by the end of the year. At the end of each fiscal year, unexpended funds from the General Fund are transferred into the Library Depreciation Fund. Library Depreciation Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 148,900 $ 341,700 $ 341,700 Revenues Interest Income $ 22,938 $ 9,500 $ 9,500 $ 9,500 $ 19,000 Transfers In 149,836 243,300 — — — Total Revenues $ 172,774 $ 252,800 $ 9,500 $ 9,500 $ 19,000 Expenditures Operations & Maintenance $ 5,213 $ — $ — $ — $ — Capital Outlay 315,685 60,000 262,000 — 262,000 Total Expenditures $ 320,897 $ 60,000 $ 262,000 $ — $ 262,000 Ending Balance $ 341,700 $ 89,200 $ 98,700 $ 98,700 162 Page Intentionally Left Blank 163 Neighborhood Services (General Fund) Neighborhood Services primarily focuses on the health and safety impacts related to houseless residents living in the right-of-way. This department includes the Code Enforcement Division. Major Objectives •Provide one central place for quality-of-life concerns, both specific to unhoused residents and the broader community •Address City and State ordinances and codes as they relate to the health, safety, and general quality of life concerns of our residents, neighborhoods, and community Budget Allocation Funded through the General Fund, making up 2% of the fund's operating expenditures. Neighborhood Services 2% General Fund Department Goals 1.Increase staff capacity for priority projects (Urban Camping, Parking, STRs) (Strategic Plan 7.2 Employee Excellence) 2.Cross training of staff and increasing capacity to be resilient when we have vacancies or time off (Strategic Plan 7.2 Employee Excellence) 3.Obtain Resources for staff to achieve goals, (Code Compliance Equipment, Vehicles, Electronic Equipment, etc.) (Strategic Plan 7.2 Employee Excellence) 4.Process complaints/reports in a more efficient and timely manner (Strategic Plan 7.3 Best Practices, Creativity & Foresight) 5.Be more responsive to increased call volumes for various complaints by citizens (Strategic Plan 7.5 Funding and Delivery of City Services) 6.Retention of personnel through training and career development (Strategic Plan 7.5 Funding and Delivery of City Services) 164 2025 Biennium Adopted Budget Neighborhood Services is a newly created department that combines three divisions: 1.Two new (FY24) staff positions to support enforcement of City Commission Ordinance 2147 - Adopting Regulations for Camping on City Right of Way 2.Two staff positions dedicated to Code Enforcement that were moved from the Planning Fund to the Neighborhood Services department of the General Fund 3.A portion of the Parking Manager and a short-term worker Parking Compliance Officer Neighborhood Services General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ — $ 255,900 $ 595,700 $ 631,300 $ 1,227,000 Operations & Maintenance — 108,500 245,400 277,000 522,400 Capital Outlay — — 45,000 — 45,000 Total Expenditures $ — $ 364,400 $ 886,100 $ 908,300 $ 1,794,400 Salaries & Benefits No FTE changes. The FY24 projection includes positions hired part way through the year resulting in what appears to be a large increase in FY25. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations The Neighborhood Services Department was established in Fiscal Year 2024. Operating expenses of significant nature in this department include contracts for professional services such as towing, portable toilets, and waste removal. Other costs incorporated in the two-year budget include general office supplies and training staff. Capital FY25 budget includes budget to purchase a department vehicle. See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Neighborhood Services Department Budget by Category Salaries & Benefits 68% Operations & Maintenance 29% Capital Outlay 3% 165 Economic Development (General Fund / URD & BID Special Revenue Funds) 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 area. Major Objectives •Provide opportunity for Gallatin Valley residents through workforce and sector development and business support initiatives •Support a diverse and resilient economy •Develop and maintain strong community partnerships in government, business and education Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Manage the urban renewal districts to remediate blight by incentivizing private investment in infrastructure to increase the City’s tax base 2.2 Infrastructure Investment 2 Facilitate the development of affordable housing 3.2 Health & Safety Action 3 Provide excellent staff training to increase expertise and thus the impact of our work 7.2 Employee Excellence 4 Support the City in governmental and inter-governmental affairs, but especially with the Montana Legislature 1.3 Public Agencies Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Midtown URD Taxable Base Value 1 $3.51M $3.51M $3.51M $3.51M $3.51M Maintain Midtown URD Incremental Value 1 $2.75M $2.75M $3.79M $5.95M $9.35M Annual Increase Midtown URD % Change in Incremental Value 1 61%—%38%57%57% Annual Increase Northeast Neighborhood URD Taxable Base Value 1 $0.42M $0.42M $0.42M $0.42M $0.42M Maintain Northeast Neighborhood URD Incremental Value 1 $0.64M $0.66M $0.95M $1.29M $1.75M Annual Increase Northeast Neighborhood URD % Change in Incremental Value 1 33%4%43%36%36% Annual Increase North Park URD Taxable Base Value 1 $0.24M $0.24M $0.24M $0.24M $0.24M Maintain North Park URD Incremental Value 1 $0.05M $0.04M $0.05M $0.05M $0.05M Annual Increase North Park URD % Change in Incremental Value 1 ND -31%26%2%2% Annual Increase South Bozeman Technology District Taxable Base Value 1 $417 $417 $417 $417 $417 Maintain South Bozeman Technology District Incremental Value 1 $56,410 $56,410 $67,775 $75,000 $83,000 Annual Increase South Bozeman Technology District % Change in Incremental Value 1 —%—%20%11%11% Annual Increase Pole Yard Urban Renewal District Taxable Base Value 1 $1.14M $1.14M $1.14M $1.14M $1.14M Maintain Pole Yard Urban Renewal District Incremental Value 1 $0.26M $0.32M $0.61M $0.95M $1.49M Annual Increase Pole Yard Urban Renewal District % Change in Incremental Value 1 —%23%92%57%57% Annual Increase166 Performance Measurements (continued) 2025 Biennium Adopted Budget Economic Development Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund General Fund $ 473,844 $ 478,100 $ 524,000 $ 539,600 $ 1,063,600 Urban Renewal District Funds 1,728,114 4,758,400 14,096,000 7,914,600 22,010,600 Downtown Business Improvement District Fund 220,601 230,200 262,000 267,300 529,300 Total Expenditures $ 2,422,559 $ 5,466,700 $ 14,882,000 $ 8,721,500 $ 23,603,500 167 Department Expenditure Budget by Category FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 430,515 $ 454,700 $ 447,200 $ 472,000 $ 919,200 Operations & Maintenance 952,001 3,219,700 12,816,800 6,464,000 19,280,800 Capital Outlay 207,943 852,200 780,000 950,000 1,730,000 Debt Service/Loans 92,000 92,100 92,100 92,100 184,200 Transfers Out 740,100 988,000 745,900 743,400 1,489,300 Total Expenditures $ 2,422,559 $ 5,606,700 $ 14,882,000 $ 8,721,500 $ 23,603,500 Economic Development Total Department by Fund General Fund 4% Urban Renewal District Funds 92% South Bozeman Technology District Fund 1% Downtown Business Improvement District Fund 2% Economic Development Total Department Budget by Category Salaries & Benefits 4% Operations & Maintenance 82% Capital Outlay 7% Debt Service/ Loans 1%Transfers Out 6% The General Fund accounts for only 5% of the Economic Development Department and primarily funds the administrative costs for the department. General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 258,287 $ 273,200 $ 252,600 $ 266,200 $ 518,800 Operations & Maintenance 215,557 204,900 271,400 273,400 544,800 Total Expenditures $ 473,844 $ 478,100 $ 524,000 $ 539,600 $ 1,063,600 Salaries & Benefits No FTE changes. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations The Economic Development department budgets in anticipation to provide match to federal grants that may become available for certain economic development planning or projects. The City often partners with other organizations on these grants. The operating budget also includes sponsorships for events like the upcoming Montana Festival. Annual appropriations may not always be spent if grant opportunities are not available or not awarded. The Urban Renewal District (URD) Funds account for the activities of the URDs and the technology district. Annual work plans for each district were adopted by the City Commission on May 14, 2024 and linked below: •Downtown URD •Pole Yard URD •Midtown URD 168 •Northeast URD •North Park URD •South Bozeman Technology District Urban Renewal District Funds FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 9,986,400 $ 10,820,800 $ 10,820,800 Revenues Taxes $ 4,556,364 $ 5,533,600 $ 5,664,900 $ 6,066,300 $ 11,731,200 State Shared 112,752 57,100 57,100 57,100 114,200 Interest Income 199,931 2,100 2,100 2,100 4,200 Total Revenues $ 4,869,048 $ 5,592,800 $ 5,724,100 $ 6,125,500 $ 11,849,600 Expenditures Salaries & Benefits $ 172,228 $ 181,500 $ 194,600 $ 205,800 $ 400,400 Operations & Maintenance 515,843 2,644,600 12,283,400 5,923,300 18,206,700 Capital Outlay 207,943 852,200 780,000 950,000 1,730,000 Debt Service/Loans 92,000 92,100 92,100 92,100 184,200 Transfers Out 740,100 988,000 745,900 743,400 1,489,300 Total Expenditures $ 1,728,114 $ 4,758,400 $ 14,096,000 $ 7,914,600 $ 22,010,600 Ending Balance $ 10,820,800 $ 2,448,900 $ 659,800 $ 659,800 Salaries & Benefits No FTE changes. Other increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations See the adopted work plans linked for additional information. Primary increases are in the Downtown and Midtown URDs. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. The Downtown Business Improvement District (BID) Fund is used to account for the activities of the Downtown Business Improvement District. The City Commission adopted the annual work plan for the Downtown BID on May 14, 2024. This district is funded through an annual assessment of downtown business owners. The license and permit revenues are from the collection of mobile vendor fees. Downtown Business Improvement District Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 4,700 $ 5,600 $ 5,600 Revenues Licenses & Permits $ 500 $ 800 $ 1,500 $ 1,800 $ 3,300 Special Assessments 220,642 230,300 260,100 265,100 525,200 Total Revenues $ 221,142 $ 231,100 $ 261,600 $ 266,900 $ 528,500 Expenditures Operations & Maintenance $ 220,601 $ 230,200 $ 262,000 $ 267,300 $ 529,300 Total Expenditures $ 220,601 $ 230,200 $ 262,000 $ 267,300 $ 529,300 Ending Balance $ 5,600 $ 5,200 $ 4,800 $ 4,800 169 Sustainability (Strategic Services Department / General Fund) Coordinates with City departments and community stakeholders to promote a sustainable environment and reduce greenhouse gas emissions. 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 2025 Biennium Adopted Budget Sustainability General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Salaries & Benefits $ 290,154 $ 322,000 $ 374,100 $ 395,700 $ 769,800 Operations & Maintenance 94,777 171,400 331,200 260,200 591,400 Capital Outlay — 550,000 397,600 641,100 1,038,700 Total Expenditures $ 384,931 $ 1,043,400 $ 1,102,900 $ 1,297,000 $ 2,399,900 Salaries & Benefits No FTE changes. Increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Operating costs increase in FY25 due to planning, engineering, and electric upgrades to support capital investments in solar photovoltaic (PV) technologies for city facilities and electric vehicle charging stations. Other increases in FY25 are the result of reassigning existing software costs to the Sustainability Division rather than GIS. There is an increase in contracted services in FY25 to support and communicate the Green Power Program, a collaborative effort between Bozeman, the City and County of Missoula, and NorthWestern Energy to develop a new-utility scale renewable energy resource in Montana that will allow eligible customers to subscribe up to 100% clean electricity. Capital See Capital Improvements Program section on page 211 for a capital improvement program summary and a detailed list of City-wide planned projects. Sustainability Department Total Budget by Category Salaries & Benefits 32% Operations & Maintenance 25% Capital Outlay 43% 170 Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1.Continue to integrate sustainable practices into the organization's operations and strategies 6.3 Climate Action 2.Install Solar PV for City Facilities, including grant acquisition 6.3 Climate Action 3.Install EV Service Equipment for BPSC, Parking Garage, and other City Facilities 6.3 Climate Action 4.Advance Green Power Program with Utility and/or 100% RE Communities 6.3 Climate Action 5.Complete Electric Mobility Roadmap 6.3 Climate Action 6.Assist Solid Waste Department in Expanding Composting Services and Collections 7.3 Best Practices, Creativity & Foresight Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Municipal Building Energy Use Intensity (EUI): City Hall 1 99 89 76 84 80 53 Municipal Building Energy Use Intensity (EUI): Library 1 80 82 63 67 67 72 Municipal Building Energy Use Intensity (EUI): Stiff Building 1 132 139 135 135 130 53 Percent of EV/Hybrid Passenger Vehicles Purchased by COB 1 86%62%62%40%67% Variable Nature 171 Community Housing (Economic 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. Overview 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 2025 Biennium Adopted Budget, the fund will receive $1.25 million in the first year of the biennium and $1 million in the second from the General Fund. Expenditure appropriations in this fund vary significantly from year to year, and a fund balance often builds up due to the timing of agreements. Budgeted expenditures in FY25 significantly exceed anticipated revenues. In this fiscal year, the fund will utilize the built up fund balance to accomplish a large-scale housing project. 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 Community Housing Financial Trends $2.4M $1.4M $1.3M $1.0M $0.3M $2.0M $3.5M $0.5M Revenue Expenditures FY23 Actual FY24 Projected FY25 Budget FY26 Budget $—M $1.0M $2.0M $3.0M Department Goals and Performance Measurements Department Goals Goal Strategic Plan 1 Complete the FY24-29 Consolidated Plan & Community Engagement Plan 4.5 Housing and Transportation Choices 2 Prioritize HUD CDBG Grant Writing, Monitoring & Compliance 3.2 Health & Safety Action 3 Seek and obtain Federal Grant Funding 4.2 High Quality Urban Approach 4 Prioritize Nonprofit Grant Funding & Housing Development Lending 3.2 Health & Safety Action Performance Measurements Measure Dept. Goal FY22 FY23 FY24 Projection FY25 Estimate FY26 Estimate Target Facilitated Community Housing Units (Approved): Affordable Housing Ordinance/ Planned Unit Development 4 0 450 800 850 900 Annual Increase Facilitated Community Housing Units (Approved): Low Income Housing Tax Credit 4 270 401 600 650 700 Annual Increase Facilitated Community Housing Units (Approved): Tax Increment Financing 4 0 385 600 650 700 Annual Increase 172 Performance Measurements (continued) 2025 Biennium Adopted Budget Community Housing is funded primarily with all-purpose property tax revenues. Starting in FY25 property taxes will be allocated first to the General Fund, to keep all-purpose property tax revenues in the same fund. The revenue to Community Housing will show up as a transfer revenue. The City of Bozeman has recently grown beyond 50,000 in population, and has become an entitlement community eligible for Community Development Block Grant (CDBG) allocations. A CDBG work plan will be adopted later this year and added to the budget. Community Housing Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 2,393,800 $ 1,780,600 $ 1,780,600 Revenues Taxes $ 1,277,712 $ 1,397,500 $ — $ — $ — Interest Income 22,939 13,600 13,600 13,600 27,200 Miscellaneous Revenue 134,153 100 100 100 200 Transfers In - Property Tax — — 1,250,000 1,000,000 2,250,000 Transfers In 1,000,000 — — — — Total Revenues $ 2,434,805 $ 1,411,200 $ 1,263,700 $ 1,013,700 $ 2,277,400 Expenditures Salaries & Benefits $ 100,150 $ 106,000 $ 111,100 $ 117,600 $ 228,700 Operations & Maintenance 178,214 1,918,400 3,428,900 400,400 3,829,300 Total Expenditures $ 278,365 $ 2,024,400 $ 3,540,000 $ 518,000 $ 4,058,000 Ending Balance $ 1,780,600 $ (495,700) $ — $ — 173 All-Purpose Tax Allocations to Community Housing $0.3M $0.3M $0.6M $0.4M $0.8M $1.3M $1.4M $1.3M $1.0M Property Tax Revenue Allocation FY18 Actual FY19 Actual FY20 Actual FY21 Actual FY22 Actual FY23 Actual FY24 Projection FY25 Budget FY26 Budget $0.0M $1.0M $2.0M Salaries & Benefits No FTE changes. Increases are based on negotiated contracts and anticipated increases to the cost of providing health benefits. Operations Operating increase in FY25 will primarily support the 155 unit Hidden Creek Project already approved by the City Commission. Expenditures to support housing projects are presented to and approved by the City Commission prior to making commitments regardless of the budgeted amount approved. Community Housing Salaries & Benefits 6% Operations & Maintenance, 94% 174 Page Intentionally Left Blank 175 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. 2025 Biennium Adopted Budget NON-DEPARTMENTAL Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund General Fund $ 1,683,416 $ 2,530,200 $ 1,816,100 $ 1,841,000 $ 3,657,100 Health-Medical Insurance Fund 3,072,283 3,514,300 3,187,700 3,324,700 6,512,400 Health-Medical Insurance Internal Service Fund 5,920,760 6,712,600 7,081,400 7,789,600 14,871,000 Senior Transportation Fund 152,877 180,900 200,000 216,200 416,200 Total Expenditures $ 10,829,336 $ 12,938,000 $ 12,285,200 $ 13,171,500 $ 25,456,700 General Fund •General fund allocation of liability & property insurance •Contributions to the City bank and Non-profit funding requests •Special revenue funds support •Contingency appropriation for unexpected budget requests that support City Commission priorities General Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Expenditures Operations & Maintenance $ 1,683,416 $ 2,530,200 $ 1,816,100 $ 1,841,000 $ 3,657,100 Total Expenditures $ 1,683,416 $ 2,530,200 $ 1,816,100 $ 1,841,000 $ 3,657,100 Health-Medical Insurance Special Revenue Fund •The Health-Medical Insurance Special Revenue Fund accounts for the collection of permissive mills levied for health insurance premiums. Health-Medical Insurance Special Revenue Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,354,600 $ 486,400 $ 486,400 Revenues Taxes $ 3,390,015 $ 2,646,100 $ 2,701,300 $ 3,324,700 $ 6,026,000 Interest Income 11,554 — — — — Total Revenues $ 3,401,569 $ 2,646,100 $ 2,701,300 $ 3,324,700 $ 6,026,000 Expenditures Transfers Out $ 3,072,283 $ 3,514,300 $ 3,187,700 $ 3,324,700 6,512,400 Total Expenditures $ 3,072,283 $ 3,514,300 $ 3,187,700 $ 3,324,700 $ 6,512,400 Ending Balance $ 486,400 $ — $ — $ — 176 Health-Medical Insurance Internal Service Fund •The Health-Medical Insurance Internal Service Fund 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. Health-Medical Insurance Internal Service Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ — $ — $ — Revenues Charges for Services $ 5,957,109 $ 6,669,200 $ 7,036,000 $ 7,739,600 $ 14,775,600 Interest Income 234 400 400 400 800 Miscellaneous Revenue 17,659 43,000 45,000 49,600 94,600 Total Revenues $ 5,975,002 $ 6,712,600 $ 7,081,400 $ 7,789,600 $ 14,871,000 Expenditures Operations & Maintenance $ 5,920,760 $ 6,712,600 $ 7,081,400 $ 7,789,600 $ 14,871,000 Total Expenditures $ 5,920,760 $ 6,712,600 $ 7,081,400 $ 7,789,600 $ 14,871,000 Ending Balance $ — $ — $ — $ — Senior Transportation Special Revenue Fund •The Senior Transportation Special Revenue Fund accounts for the City's support of HRDC's Galavan Program for senior transportation. Senior Transportation Special Revenue Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 27,300 $ 30,900 $ 30,900 Revenues Taxes $ 158,682 $ 184,000 $ 2,100 $ 2,200 $ 4,300 Interest Income 591 500 500 500 1,000 Transfers In — — 190,000 190,000 380,000 Total Revenues $ 159,273 $ 184,500 $ 192,600 $ 192,700 $ 385,300 Expenditures Operations & Maintenance $ 152,877 $ 180,900 $ 200,000 $ 216,200 $ 416,200 Total Expenditures $ 152,877 $ 180,900 $ 200,000 $ 216,200 $ 416,200 Ending Balance $ 30,900 $ 23,500 $ — $ — 177 Debt Service Funds The Debt Service Funds are used to account for the accumulation of resources and payment of principal and interest on outstanding debt. See the Debt Service - Payments section on page 184 for debt service payments by fund. Debt Service Funds Department Expenditure Budget by Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Fund GO Bonds $ 4,083,652 $ 3,959,900 $ 4,139,000 $ 4,132,400 $ 8,271,400 SID Revolving Fund 2,188,757 — — — — Special Improvement Districts (SIDs) 3,725,559 310,800 270,900 270,900 541,800 URD Bonds 740,100 744,100 745,900 743,400 1,489,300 Total Expenditures $ 10,738,068 $ 5,014,800 $ 5,155,800 $ 5,146,700 $ 10,302,500 GO Bonds FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ (371,600) $ (330,000) $ (330,000) Revenues Taxes $ 3,736,222 $ 4,001,500 $ 4,139,000 $ 4,447,600 $ 8,586,600 Interest Income 9,180 — — — — Total Revenues $ 3,745,403 $ 4,001,500 $ 4,139,000 $ 4,447,600 $ 8,586,600 Expenditures Debt Service/Loans $ 3,955,380 $ 3,959,900 $ 4,139,000 $ 4,132,400 $ 8,271,400 Transfers Out 128,272 — — — $ — Total Expenditures $ 4,083,652 $ 3,959,900 $ 4,139,000 $ 4,132,400 $ 8,271,400 Ending Balance $ (330,000) $ (330,000) $ (14,800) $ (14,800) SID Revolving Fund FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 623,100 $ 623,100 $ 623,100 Revenues Interest Income $ 11,493 $ — $ — $ — $ — Miscellaneous Revenue 10,405 — — — — Transfers In 1,326,665 — — — — Total Revenues $ 1,348,562 $ — $ — $ — $ — Expenditures Transfers Out $ 2,188,757 $ — $ — $ — $ — Total Expenditures $ 2,188,757 $ — $ — $ — $ — Ending Balance $ 623,100 $ 623,100 $ 623,100 $ 623,100 178 Special Improvement Districts (SIDs)FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ 1,505,600 $ 1,810,700 $ 1,810,700 Revenues Interest Income $ 57,675 $ 27,200 $ 28,300 $ 29,500 $ 57,800 Transfers In 202,128 — — — — Special Assessments 569,230 588,700 549,900 550,000 1,099,900 Total Revenues $ 829,034 $ 615,900 $ 578,200 $ 579,500 $ 1,157,700 Expenditures Debt Service/Loans $ 520,722 $ 310,800 $ 270,900 $ 270,900 $ 541,800 Transfers Out 3,204,837 — — — $ — Total Expenditures $ 3,725,559 $ 310,800 $ 270,900 $ 270,900 $ 541,800 Ending Balance $ 1,810,700 $ 2,118,000 $ 2,426,600 $ 2,426,600 URD Bonds FY23 Actual FY24 Projected FY25 Budget FY26 Budget Biennium Budget Beginning Balance $ — $ — $ — Revenues Transfers In $ 740,100 $ 744,100 $ 745,900 $ 743,400 $ 1,489,300 Total Revenues $ 740,100 $ 744,100 $ 745,900 $ 743,400 $ 1,489,300 Expenditures Debt Service/Loans $ 740,100 $ 744,100 $ 745,900 $ 743,400 $ 1,489,300 Total Expenditures $ 740,100 $ 744,100 $ 745,900 $ 743,400 $ 1,489,300 Ending Balance $ — $ — $ — $ — 179 Page Intentionally Left Blank 180 Debt 181 Page Intentionally Left Blank 182 Debt City Ratings, Debt Limitations, and Debt Coverage Requirements On April 3, 2024, Moody’s Investors Service issued an update to the City of Bozeman’s credit analysis indicating the City’s bond rating to be Aa1. In Montana, state law establishes the limit of debt a municipality can hold against its General Government operations. With some exceptions, a municipality may incur debt up to 2.5% of the total assessed value of taxable property within the city or town (7-7-4201, MCA). The City's total FY24 taxable value was $268,988,379 resulting in a debt limit of $6,724,709. The City's total outstanding debt backed by the General Fund ending FY24 was $5,399,633, within the limit set by statute. Debt backed by the General Fund includes the Series 2019 Limited Tax Go Bond for the Sports Park ($1,434,218), paid for in the Parks & Trails District Fund and the Series 2024B Limited Tax GO Bond ($3,930,000). As part of the City’s 2024 General Obligation debt issuances, a review of the legal debt limit was completed. Bozeman is well under its legal debt limit for general obligations against public funds. City of Bozeman, Montana General Fund Statutory Test Actual 2023 Budget 2024 Total General Fund Revenue 43,013,451 49,008,484 2% of Revenues 860,269 980,170 Max Annual Debt Service (MADS)860,269 860,269 Existing Debt Service 125,823 125,823 Remaining Debt Service Capacity (b)734,446 854,347 Budget 2023 Budget 2024 Budgeted Expenditure 50,308,855 54,621,700 10% of Expenditures 5,030,886 5,462,170 Maximum Par (a)5,030,886 5,030,886 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. The City's outstanding water, sewer, and stormwater revenue bonds have debt coverage requirements of 1.10. The City's long term utility rate forecasts are updated at least twice annually and rates are set to ensure the coverage requirements are met. Additional information on utility long range forecasts is included in Appendix B on page 227. 183 2025 Biennium Adopted Budget Current Debt Service Payments15 Fund Name of Issue Type of Debt Issued Maturity Years Borrowed Outstanding Fiscal Year (FY) 25 Budget Fiscal Year (FY) 26 Budget General Fund Sports Park/Bronken Intercap Loan #2810-01 Intercap Loans Payable 5/24/2019 8/15/2029 10 $ 314,559 $ 185,860 $ 41,553 $ 32,380 2023 Ford Transit Cargo Van #4510 Capital Leases 5/24/2023 5/24/2025 3 66,602 16,415 17,743 — 2022 Toyota Highlander Lease (Library)Lease 11/11/2021 10/1/2024 3 19,833 1,769 1,782 — Limited Tax GO Bonds, Series 2024B GO Bonds 5/16/2024 7/1/2043 19 3,930,000 3,930,000 285,913 284,950 General Fund Total $ 4,330,994 $ 4,134,044 $ 346,990 $ 317,330 Street Maintenance Fund Replace/Upgrade Street Lights Loan #2593-01 & 2593-02 Intercap Loans Payable 9/11/2015 8/15/2030 15 199,231 95,950 19,580 14,440 (2) 2022 CAT 150-15AWD Motor Graders #4478 & 4479 Capital Leases 2/21/2023 2/21/2028 5 $ 584,900 $ 531,559 $ 91,883 $ 91,883 2022 Elgin Broom Bear Sweeper #4481 Capital Leases 2/3/2023 4/1/2027 4 277,720 167,490 63,370 63,370 2023 Elgin Broom Bear Sweeper #4559 Capital Leases 10/26/2023 11/15/2027 4 295,706 229,639 67,861 67,861 (2) 2023 CAT 140-15AWD Motor Graders #4574 & 4575 Capital Leases 1/23/2024 2/6/2029 6 616,206 536,427 79,779 79,779 Street Maintenance Fund Total $ 1,973,763 $ 1,561,065 $ 322,472 $ 317,332 Parks & Trails District Fund Sports Park Loan Notes Payable 6/15/2018 6/30/2039 20 $ 1,700,000 $ 1,434,218 $ 125,795 $ 125,795 Parks & Trails District Total $ 1,700,000 $ 1,434,218 $ 125,795 $ 125,795 General Obligation (GO) Bonds GO TOP Bonds, Series 2013 GO Bonds 12/23/2013 7/1/2034 20 $ 9,900,000 $ 5,795,000 $ 714,300 $ 713,375 GO TOP Bonds, Series 2014 GO Bonds 12/9/2014 7/1/2035 20 5,100,000 3,235,000 370,725 369,600 GO BPSC Bonds, Series 2019 GO Bonds 9/18/2019 7/1/2039 20 34,405,000 28,130,000 2,371,050 2,369,050 GO FS2 Bonds, Series 2022 GO Bonds 6/30/2022 7/1/2042 20 6,730,000 6,305,000 507,600 506,100 GO Rec Improvement Bonds, Series 2024A GO Bonds 5/16/2024 7/1/2044 20 2,280,000 2,280,000 173,498 172,888 GO Bonds Total $ 58,415,000 $ 45,745,000 $ 4,137,173 $ 4,131,013 Urban Renewal District (URD) Bonds Downtown Revenue Refunding Bonds, Series 2020 TIF Revenue Bonds 3/5/2020 7/1/2032 12 $ 3,689,000 $ 2,389,000 $ 335,292 $ 330,533 Northeast URD Revenue Bonds, Series 2017 TIF Revenue Bonds 7/9/2017 7/1/2042 26 1,446,000 1,142,366 92,000 92,000 Midtown Revenue Bonds, Series 2020 TIF Revenue Bonds 7/9/2020 7/1/2044 24 6,500,000 5,770,000 410,550 412,750 URD Bonds Total $ 11,635,000 $ 9,301,366 $ 837,842 $ 835,283 Special Improvement Districts (SIDs) SID 747_Manley Road Bonds, Series 2020 SID Bond Debt 8/14/2020 7/1/2040 20 $ 4,001,000 $ 3,167,568 $ 270,761 $ 270,761 SIDs Total $ 4,001,000 $ 3,167,568 $ 270,761 $ 270,761 Water Fund State Revolving Fund Revenue Bond_12247_Series 2011A Revenue Bond 9/30/2011 1/1/2032 20 $ 9,491,000 $ 4,483,000 $ 672,455 $ 672,075 State Revolving Fund Revenue Bond_13291_Series 2011B Revenue Bond 6/12/2013 1/1/2033 20 9,552,000 4,771,000 640,395 640,260 State Revolving Fund Revenue Bond_17386_Series 2017 Revenue Bond 5/17/2017 7/1/2037 20 7,573,000 5,339,000 483,288 483,438 Water Fund Total $ 26,616,000 $ 14,593,000 $ 1,796,138 $ 1,795,773 184 15 Due to rounding and variable interest rates, estimated numbers may not add up precisely with totals and/or other budget figures in this document. Fund Name of Issue Type of Debt Issued Maturity Years Borrowed Outstanding Fiscal Year (FY) 25 Budget Fiscal Year (FY) 26 Budget Wastewater Fund State Revolving Revenue Bond_10252_Series 2010B Revenue Bond 2/10/2010 1/1/2030 20 $ 359,300 $ 111,000 $ 21,855 $ 21,505 State Revolving Revenue Bond_10230_Series 2010D Revenue Bond 2/25/2010 1/1/2030 20 9,500,000 3,233,000 642,895 642,275 State Revolving Revenue Bond_10262_Series 2010F Revenue Bond 6/10/2010 7/1/2030 20 729,000 300,000 54,655 55,260 State Revolving Revenue Bond_11291_Series 2010C Revenue Bond 8/21/2013 1/1/2031 17.5 885,081 383,000 65,085 65,450 State Revolving Revenue Bond_11292_Series 2010G Revenue Bond 4/27/2011 1/1/2031 20 3,903,000 1,195,000 200,620 201,595 State Revolving Revenue Bond_11281_Series 2010H Revenue Bond 8/21/2013 1/1/2031 17.5 8,692,000 3,766,000 643,005 642,865 State Revolving Revenue Bond_21490_Series 2020D Revenue Bond 8/12/2020 7/1/2040 20 2,807,000 2,351,000 179,025 178,975 State Revolving Revenue Bond_21487_Series 2020B Revenue Bond 7/22/2020 7/1/2040 20 7,786,000 6,522,000 496,963 496,513 State Revolving Revenue Bond_21506_Series 2020C Revenue Bond 4/21/2021 1/1/2041 20 6,693,321 5,727,000 425,413 425,263 State Revolving Revenue Bond_21486_Series 2020A16 Revenue Bond 7/22/2020 7/1/2040 N/A 300,000 300,000 — — Wastewater Fund Total $ 41,654,702 $ 23,888,000 $ 2,729,515 $ 2,729,700 Stormwater Fund State Revolving Fund Revenue Bond_15373_Series 2015 Revenue Bond 6/29/2015 7/1/2035 20 $ 1,815,000 $ 1,109,000 $ 116,175 $ 114,938 Stormwater Fund Total $ 1,815,000 $ 1,109,000 $ 116,175 $ 114,938 Public Works Administration Fund East Beall Office Lease Lease 4/1/2022 3/1/2027 5 $ 423,122 $ 256,901 $ 97,015 $ 100,890 Public Works Admin Fund Total $ 423,122 $ 256,901 $ 97,015 $ 100,890 185 16 Loan is forgivable, no repayment required Page Intentionally Left Blank 186 Debt Service - Amortization Schedules General Fund SPORTS PARK/BRONKEN INTERCAP LOAN 2810-01 ORIGINAL PRINCIPAL AMOUNT: $314,559 Payment Due Principal Payment Interest Rate*Interest Payment Semi-Annual Payment Principal Balance 8/15/2024 $15,543 5.75 %$5,314 $20,857 $170,317 2/15/2025 $15,772 5.75 %$4,923 $20,695 $154,545 8/15/2025 $16,075 N/A $0 $16,075 $138,470 2/15/2026 $16,305 N/A $0 $16,305 $122,165 8/15/2026 $16,616 N/A $0 $16,616 $105,549 2/15/2027 $16,864 N/A $0 $16,864 $88,685 8/15/2027 $17,176 N/A $0 $17,176 $71,509 2/15/2028 $17,443 N/A $0 $17,443 $54,066 8/15/2028 $17,752 N/A $0 $17,752 $36,315 2/15/2029 $18,042 N/A $0 $18,042 $18,272 8/15/2029 $18,272 N/A $0 $18,272 $0 TOTALS $185,860 $10,238 $196,098 *Variable interest rate, recalculated annually. 2023 FORD TRANSIT VAN ORIGINAL PRINCIPAL AMOUNT: $66,602 Payment Due Principal Payment Interest Rate Interest Payment Annual Payment Lease Balance 5/24/2025 $16,415 8.09 %$1,328 $17,743 $0 TOTALS $16,415 $1,328 $17,743 2022 TOYOTA HIGHLANDER LEASE ORIGINAL PRINCIPAL AMOUNT: $19,833 Payment Due Principal Payment Interest Rate Interest Payment Monthly Payment Lease Balance 8/1/2024 $587 5.00 %$7 $594 $1,181 9/1/2024 $590 5.00 %$5 $594 $592 10/1/2024 $592 5.00 %$2 $594 $0 TOTALS $1,769 $15 $1,782 $1,773 187 General Fund (continued) CITY OF BOZEMAN SERIES 2024B LIMITED TAX G.O. BONDS SPECIAL LIMITED OBLIGATIONS OF THE CITY ORIGINAL PRINCIPAL AMOUNT: $3,930,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2025 $106,063 $106,063 7/1/2025 $95,000 5.000 %$84,850 $179,850 $3,835,000 1/1/2026 $0 $82,475 $82,475 7/1/2026 $120,000 5.000 %$82,475 $202,475 $3,715,000 1/1/2027 $0 $79,475 $79,475 7/1/2027 $125,000 5.000 %$79,475 $204,475 $3,590,000 1/1/2028 $0 $76,350 $76,350 7/1/2028 $135,000 5.000 %$76,350 $211,350 $3,455,000 1/1/2029 $72,975 $72,975 7/1/2029 $140,000 5.000 %$72,975 $212,975 $3,315,000 1/1/2030 $0 $69,475 $69,475 7/1/2030 $145,000 5.000 %$69,475 $214,475 $3,170,000 1/1/2031 $0 $65,850 $65,850 7/1/2031 $155,000 5.000 %$65,850 $220,850 $3,015,000 1/1/2032 $0 $61,975 $61,975 7/1/2032 $165,000 5.000 %$61,975 $226,975 $2,850,000 1/1/2033 $0 $57,850 $57,850 7/1/2033 $170,000 5.000 %$57,850 $227,850 $2,680,000 1/1/2034 $0 $53,600 $53,600 7/1/2034 $180,000 4.000 %$53,600 $233,600 $2,500,000 1/1/2035 $0 $50,000 $50,000 7/1/2035 $185,000 4.000 %$50,000 $235,000 $2,315,000 1/1/2036 $0 $46,300 $46,300 7/1/2036 $195,000 4.000 %$46,300 $241,300 $2,120,000 1/1/2037 $0 $42,400 $42,400 7/1/2037 $200,000 4.000 %$42,400 $242,400 $1,920,000 1/1/2038 $0 $38,400 $38,400 7/1/2038 $210,000 4.000 %$38,400 $248,400 $1,710,000 1/1/2039 $0 $34,200 $34,200 7/1/2039 $220,000 4.000 %$34,200 $254,200 $1,490,000 1/1/2040 $0 $29,800 $29,800 7/1/2040 $350,000 4.000 %$29,800 $379,800 $1,140,000 1/1/2041 $22,800 $22,800 7/1/2041 $365,000 4.000 %$22,800 $387,800 $775,000 1/1/2042 $15,500 $15,500 7/1/2042 $380,000 4.000 %$15,500 $395,500 $395,000 1/1/2043 $7,900 $7,900 7/1/2043 $395,000 4.000 %$7,900 $402,900 $0 TOTALS $3,930,000 $2,005,563 $5,935,563 188 Street Maintenance Fund CITY OF BOZEMAN INTERCAP LOANS 2593-02 & 2593-02 REPLACE/UPGRADE STREET LIGHTS ORIGINAL PRINCIPAL AMOUNT: $199,231 Payment Due Principal Payment Interest Rate*Interest Payment Semi-Annual Payment Principal Balance8/15/2024 $7,111 5.75 %$2,744 $9,855 $88,839 2/15/2025 $7,150 5.75 %$2,575 $9,725 $81,690 8/15/2025 $7,201 N/A $0 $7,201 $74,488 2/15/2026 $7,238 N/A $0 $7,238 $67,250 8/15/2026 $7,291 N/A $0 $7,291 $59,959 2/15/2027 $7,330 N/A $0 $7,330 $52,629 8/15/2027 $7,382 N/A $0 $7,382 $45,247 2/15/2028 $7,423 N/A $0 $7,423 $37,824 8/15/2028 $7,473 N/A $0 $7,473 $30,352 2/15/2029 $7,517 N/A $0 $7,517 $22,835 8/15/2029 $7,566 N/A $0 $7,566 $15,268 2/15/2030 $7,612 N/A $0 $7,612 $7,657 8/15/2030 $7,657 N/A $0 $7,657 $0 TOTALS $95,950 $5,319 $101,269 *Variable interest rate, recalculated annually. TWO (2) 2022 CAT 150-15AWD MOTOR GRADERS ORIGINAL PRINCIPAL AMOUNT: $584,900 Payment Due Principal Payment Interest Rate Interest Payment Annual Payment Lease Balance 2/21/2025 $54,359 6.99 %$37,524 $91,883 $477,200 2/21/2026 $58,159 6.99 %$33,724 $91,883 $419,042 2/21/2027 $62,224 6.99 %$29,559 $91,783 $356,818 2/21/2028 $356,818 6.99 %$26,745 $383,563 $0 TOTALS $531,559 $127,552 $659,112 2022 ELGIN BROOM BEAR SWEEPER ORIGINAL PRINCIPAL AMOUNT: $277,720 Payment Due Principal Payment Interest Rate Interest Payment Annual Payment Lease Balance 4/1/2025 $52,296 6.61 %$11,074 $63,370 $115,194 4/1/2026 $55,754 6.61 %$7,616 $63,370 $59,440 4/1/2027 $59,440 6.61 %$3,930 $63,370 $0 TOTALS $167,490 $22,620 $190,110 2023 ELGIN BROOM BEAR SWEEPER ORIGINAL PRINCIPAL AMOUNT: $295,706 Payment Due Principal Payment Interest Rate Interest Payment Annual Payment Lease Balance 11/15/2024 $51,689 7.04 %$16,172 $67,861 $177,950 11/15/2025 $55,329 7.04 %$12,532 $67,861 $122,621 11/15/2026 $59,225 7.04 %$8,635 $67,861 $63,396 11/15/2027 $63,396 7.04 %$4,465 $67,861 $0 TOTALS $229,639 $41,804 $271,442 189 Street Maintenance Fund (continued) TWO (2) 2023 CAT MOTOR GRADERS ORIGINAL PRINCIPAL AMOUNT: $616,206 Payment Due Principal Payment Interest Rate Interest Payment Annual Payment Lease Balance 2/6/2025 $71,778 1.51 %$8,001 $79,779 $464,650 2/6/2026 $72,733 1.51 %$7,046 $79,779 $391,917 2/6/2027 $73,833 1.51 %$5,946 $79,779 $318,084 2/6/2028 $74,950 1.51 %$4,829 $79,779 $243,134 2/6/2029 $243,134 1.51 %$3,746 $246,880 $0 TOTALS $536,427 $29,568 $565,996 Parks & Trails District Fund CITY OF BOZEMAN SERIES 2019 LIMITED OBLIGATION BOND SPORTS PARK SPECIAL LIMITED OBLIGATIONS OF THE CITY ORIGINAL PRINCIPAL AMOUNT: $1,700,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 12/30/2024 $36,078 3.740 %$26,820 $62,897 $1,398,141 6/30/2025 $36,825 3.740 %$26,073 $62,897 $1,361,316 12/30/2025 $37,371 3.740 %$25,526 $62,897 $1,323,945 6/30/2026 $38,208 3.740 %$24,690 $62,897 $1,285,738 12/30/2026 $38,788 3.740 %$24,109 $62,897 $1,246,949 6/30/2027 $39,643 3.740 %$23,254 $62,897 $1,207,306 12/30/2027 $40,259 3.740 %$22,638 $62,897 $1,167,047 6/30/2028 $41,073 3.740 %$21,824 $62,897 $1,125,974 12/30/2028 $41,842 3.740 %$21,056 $62,897 $1,084,132 6/30/2029 $42,680 3.740 %$20,217 $62,897 $1,041,452 12/30/2029 $43,369 3.740 %$19,529 $62,897 $998,083 6/30/2030 $44,284 3.740 %$18,613 $62,897 $953,798 12/30/2030 $45,013 3.740 %$17,885 $62,897 $908,786 6/30/2031 $45,950 3.740 %$16,948 $62,897 $862,836 12/30/2031 $46,718 3.740 %$16,179 $62,897 $816,118 6/30/2032 $47,636 3.740 %$15,262 $62,897 $768,482 12/30/2032 $48,527 3.740 %$14,371 $62,897 $719,955 6/30/2033 $49,472 3.740 %$13,426 $62,897 $670,484 12/30/2033 $50,325 3.740 %$12,572 $62,897 620158.71 6/30/2034 $51,332 3.740 %$11,565 $62,897 568826.45 12/30/2034 $52,231 3.740 %$10,666 $62,897 516595.19 6/30/2035 $53,264 3.740 %$9,634 $62,897 $463,332 12/30/2035 $54,209 3.740 %$8,688 $62,897 $409,122 6/30/2036 $55,247 3.740 %$7,651 $62,897 $353,876 12/30/2036 $56,280 3.740 %$6,617 $62,897 $297,596 6/30/2037 $57,348 3.740 %$5,550 $62,897 $240,248 12/30/2037 $58,393 3.740 %$4,505 $62,897 $181,855 6/30/2038 $59,506 3.740 %$3,391 $62,897 $122,349 12/30/2038 $60,603 3.740 %$2,294 $62,897 $61,746 6/30/2039 $61,746 3.740 %$1,151 $62,897 $0 TOTALS $1,434,218 $452,705 $1,886,924 190 General Obligation (GO) Bonds Funds CITY OF BOZEMAN SERIES 2013 G.O. BONDS TOPS UNLIMITED OBLIGATIONS OF THE CITY ORIGINAL PRINCIPAL AMOUNT: $9,900,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 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 $5,795,000 $1,335,175 $7,130,175 191 General Obligation (GO) Bonds Funds (continued) CITY OF BOZEMAN SERIES 2014 G.O. BONDS TOPS UNLIMITED OBLIGATIONS OF THE CITY ORIGINAL PRINCIPAL AMOUNT: $5,100,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 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 $3,235,000 $821,525 $4,056,525 192 General Obligation (GO) Bonds Funds (continued) CITY OF BOZEMAN SERIES 2019 G.O. BONDS PUBLIC SAFETY CENTER UNLIMITED OBLIGATIONS OF THE CITY ORIGINAL PRINCIPAL AMOUNT: $34,405,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 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 $28,130,000 $7,415,294 $35,545,294 193 General Obligation (GO) Bonds Funds (continued) CITY OF BOZEMAN SERIES 2022 G.O. BONDS FIRE STATION NO. 2 RELOCATION UNLIMITED OBLIGATIONS OF THE CITY ORIGINAL PRINCIPAL AMOUNT: $6,730,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 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 $6,305,000 $2,824,550 $9,129,550 194 General Obligation (GO) Bonds Funds (continued) CITY OF BOZEMAN SERIES 2024A G.O. BONDS RECREATION IMPROVEMENTS UNLIMITED OBLIGATIONS OF THE CITY ORIGINAL PRINCIPAL AMOUNT: $2,280,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2025 $63,055 $63,055 7/1/2025 $60,000 5.000 %$50,444 $110,444 $2,220,000 1/1/2026 $0 $48,944 $48,944 7/1/2026 $75,000 5.000 %$48,944 $123,944 $2,145,000 1/1/2027 $0 $47,069 $47,069 7/1/2027 $80,000 5.000 %$47,069 $127,069 $2,065,000 1/1/2028 $0 $45,069 $45,069 7/1/2028 $80,000 5.000 %$45,069 $125,069 $1,985,000 1/1/2029 $43,069 $43,069 7/1/2029 $85,000 5.000 %$43,069 $128,069 $1,900,000 1/1/2030 $0 $40,944 $40,944 7/1/2030 $90,000 5.000 %$40,944 $130,944 $1,810,000 1/1/2031 $0 $38,694 $38,694 7/1/2031 $95,000 5.000 %$38,694 $133,694 $1,715,000 1/1/2032 $0 $36,319 $36,319 7/1/2032 $100,000 5.000 %$36,319 $136,319 $1,615,000 1/1/2033 $0 $33,819 $33,819 7/1/2033 $105,000 5.000 %$33,819 $138,819 $1,510,000 1/1/2034 $0 $31,194 $31,194 7/1/2034 $110,000 5.000 %$31,194 $141,194 $1,400,000 1/1/2035 $0 $28,444 $28,444 7/1/2035 $115,000 5.000 %$28,444 $143,444 $1,285,000 1/1/2036 $0 $25,569 $25,569 7/1/2036 $120,000 4.000 %$25,569 $145,569 $1,165,000 1/1/2037 $0 $22,569 $22,569 7/1/2037 $130,000 3.375 %$22,569 $152,569 $1,035,000 1/1/2038 $0 $20,375 $20,375 7/1/2038 $130,000 3.500 %$20,375 $150,375 $905,000 1/1/2039 $0 $18,100 $18,100 7/1/2039 $135,000 4.000 %$18,100 $153,100 $770,000 1/1/2040 $0 $15,400 $15,400 7/1/2040 $140,000 4.000 %$15,400 $155,400 $630,000 1/1/2041 $12,600 $12,600 7/1/2041 $150,000 4.000 %$12,600 $162,600 $480,000 1/1/2042 $9,600 $9,600 7/1/2042 $155,000 4.000 %$9,600 $164,600 $325,000 1/1/2043 $6,500 $6,500 7/1/2043 $160,000 4.000 %$6,500 $166,500 $165,000 1/1/2044 $3,300 $3,300 7/1/2044 $165,000 4.000 %$3,300 $168,300 $0 TOTALS $2,280,000 $1,168,648 $3,448,648 195 Urban Renewal District (URD) Bonds Funds DOWNTOWN REVENUE REFUNDING BONDS, SERIES 2020 (REFUNDS SERIES 2007 BONDS) TAX INCREMENT, URBAN RENEWAL REVENUE BONDS DOWNTOWN BOZEMAN IMPROVEMENT DISTRICT ORIGINAL PRINCIPAL AMOUNT: $3,689,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 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 $2,389,000 $272,022 $2,661,022 196 Urban Renewal District (URD) Bonds Funds (continued) NORTHEAST URBAN RENEWAL DISTRICT REVENUE BONDS, SERIES 2017 TAX INCREMENT, URBAN RENEWAL REVENUE BONDS NORTHEAST URBAN RENEWAL DISTRICT ORIGINAL PRINCIPAL AMOUNT: $1,446,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2025 $22,312 4.100 %$23,688 $46,000 $1,120,053 7/1/2025 $23,088 4.100 %$22,912 $46,000 $1,096,965 1/1/2026 $23,186 4.100 %$22,814 $46,000 $1,073,779 7/1/2026 $24,029 4.100 %$21,971 $46,000 $1,049,749 1/1/2027 $24,162 4.100 %$21,838 $46,000 $1,025,588 7/1/2027 $25,009 4.100 %$20,991 $46,000 $1,000,579 1/1/2028 $25,178 4.100 %$20,822 $46,000 $975,401 7/1/2028 $25,974 4.100 %$20,026 $46,000 $949,427 1/1/2029 $26,289 4.100 %$19,711 $46,000 $923,137 7/1/2029 $27,092 4.100 %$18,908 $46,000 $896,045 1/1/2030 $27,339 4.100 %$18,661 $46,000 $868,707 7/1/2030 $28,199 4.100 %$17,801 $46,000 $840,508 1/1/2031 $28,487 4.100 %$17,514 $46,000 $812,021 7/1/2031 $29,351 4.100 %$16,649 $46,000 $782,670 1/1/2032 $29,682 4.100 %$16,318 $46,000 $752,988 1/2/2032 $30,509 4.100 %$15,491 $46,000 $722,480 1/3/2032 $30,967 4.100 %$15,033 $46,000 $691,512 1/4/2032 $31,801 4.100 %$14,199 $46,000 $659,711 1/5/2032 $32,223 4.100 %$13,777 $46,000 $627,488 1/6/2032 $33,103 4.100 %$12,897 $46,000 $594,385 1/7/2032 $33,573 4.100 %$12,427 $46,000 $560,811 1/8/2032 $34,459 4.100 %$11,541 $46,000 $526,353 1/9/2032 $34,980 4.100 %$11,020 $46,000 $491,373 1/10/2032 $35,842 4.100 %$10,158 $46,000 $455,531 1/11/2032 $36,470 4.100 %$9,530 $46,000 $419,061 1/12/2032 $37,341 4.100 %$8,659 $46,000 $381,720 1/13/2032 $37,969 4.100 %$8,031 $46,000 $343,751 1/14/2032 $38,872 4.100 %$7,128 $46,000 $304,880 1/15/2032 $39,557 4.100 %$6,443 $46,000 $265,322 1/16/2032 $40,466 4.100 %$5,534 $46,000 $224,856 1/17/2032 $41,211 4.100 %$4,789 $46,000 $183,645 1/18/2032 $42,116 4.100 %$3,884 $46,000 $141,529 1/19/2032 $42,942 4.100 %$3,058 $46,000 $98,587 1/20/2032 $43,856 4.100 %$2,144 $46,000 $54,731 1/21/2032 $44,727 4.100 %$1,273 $46,000 $10,003 1/22/2032 $10,003 4.100 %$343 $17,191 $0 TOTALS $1,142,366 $477,980 $1,627,191 197 Urban Renewal District (URD) Bonds Funds (continued) MIDTOWN URBAN RENEWAL DISTRICT REVENUE BONDS, SERIES 2020 TAX INCREMENT URBAN RENEWAL REVENUE BONDS MIDTOWN URBAN RENEWAL DISTRICT ORIGINAL PRINCIPAL AMOUNT: $6,500,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 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 $5,770,000 $2,430,500 $8,200,500 198 Special Improvement District (SID) Funds SID #747 MANLEY RD REVENUE BOND, SERIES 2020 SPECIAL LIMITED OBLIGATIONS OF THE CITY ORIGINAL PRINCIPAL AMOUNT: $4,001,000 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2025 $85,095 3.175 %$50,285 $135,380 $3,082,472 7/1/2025 $86,446 3.175 %$48,934 $135,380 $2,996,026 1/1/2026 $87,818 3.175 %$47,562 $135,380 $2,908,208 7/1/2026 $89,213 3.175 %$46,168 $135,380 $2,818,995 1/1/2027 $90,629 3.175 %$44,752 $135,380 $2,728,367 7/1/2027 $92,067 3.175 %$43,313 $135,380 $2,636,299 1/1/2028 $93,529 3.175 %$41,851 $135,380 $2,542,770 7/1/2028 $95,014 3.175 %$40,366 $135,380 $2,447,756 1/1/2029 $96,522 3.175 %$38,858 $135,380 $2,351,234 7/1/2029 $98,054 3.175 %$37,326 $135,380 $2,253,180 1/1/2030 $99,611 3.175 %$35,769 $135,380 $2,153,569 7/1/2030 $101,192 3.175 %$34,188 $135,380 $2,052,376 1/1/2031 $102,799 3.175 %$32,581 $135,380 $1,949,577 7/1/2031 $104,431 3.175 %$30,950 $135,380 $1,845,147 1/1/2032 $106,089 3.175 %$29,292 $135,380 $1,739,058 7/1/2032 $107,773 3.175 %$27,605 $135,377 $1,631,285 1/1/2033 $109,484 3.175 %$25,897 $135,380 $1,521,802 7/1/2033 $111,222 3.175 %$24,159 $135,380 $1,410,580 1/1/2034 $112,987 3.175 %$22,393 $135,380 $1,297,592 7/1/2034 $114,781 3.175 %$20,599 $135,380 $1,182,811 1/1/2035 $116,603 3.175 %$18,777 $135,380 $1,066,208 7/1/2035 $118,454 3.175 %$16,926 $135,380 $947,754 1/1/2036 $120,335 3.175 %$15,046 $135,380 $827,419 7/1/2036 $122,245 3.175 %$13,135 $135,380 $705,174 1/1/2037 $124,186 3.175 %$11,195 $135,380 $580,989 7/1/2037 $126,157 3.175 %$9,223 $135,380 $454,831 1/1/2038 $128,160 3.175 %$7,220 $135,380 $326,672 7/1/2038 $130,194 3.175 %$5,186 $135,380 $196,477 1/1/2039 $132,261 3.175 %$3,119 $135,380 $64,216 7/1/2039 $64,216 3.175 %$1,019 $65,235 $0 TOTALS $3,167,568 $823,694 $3,991,261 199 Water Funds WATER REVENUE BOND, SERIES 2011A STATE REVOLVING FUND WATER TREATMENT PLANT ORIGINAL PRINCIPAL AMOUNT: $9,491,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $269,000 3.00 %$44,830 $5,604 $16,811 $336,245 $4,214,000 7/1/2025 $273,000 3.00 %$42,140 $5,268 $15,803 $336,210 $3,941,000 1/1/2026 $277,000 3.00 %$39,410 $4,926 $14,779 $336,115 $3,664,000 7/1/2026 $281,000 3.00 %$36,640 $4,580 $13,740 $335,960 $3,383,000 1/1/2027 $285,000 3.00 %$33,830 $4,229 $12,686 $335,745 $3,098,000 7/1/2027 $290,000 3.00 %$30,980 $3,873 $11,618 $336,470 $2,808,000 1/1/2028 $294,000 3.00 %$28,080 $3,510 $10,530 $336,120 $2,514,000 7/1/2028 $298,000 3.00 %$25,140 $3,143 $9,428 $335,710 $2,216,000 1/1/2029 $303,000 3.00 %$22,160 $2,770 $8,310 $336,240 $1,913,000 7/1/2029 $307,000 3.00 %$19,130 $2,391 $7,174 $335,695 $1,606,000 1/1/2030 $312,000 3.00 %$16,060 $2,008 $6,023 $336,090 $1,294,000 7/1/2030 $317,000 3.00 %$12,940 $1,618 $4,853 $336,410 $977,000 1/1/2031 $321,000 3.00 %$9,770 $1,221 $3,664 $335,655 $656,000 7/1/2031 $326,000 3.00 %$6,560 $820 $2,460 $335,840 $330,000 1/1/2032 $330,000 3.00 %$3,300 $413 $1,238 $334,950 $0 TOTALS $4,483,000 $370,970 $46,371 $139,114 $5,039,455 200 Water Funds (continued) WATER, STATE REVOLVING FUND REVENUE BOND, SERIES 2011B STATE REVOLVING FUND WATER TREATMENT PLANT ORIGINAL PRINCIPAL AMOUNT: $9,552,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $249,000 3.00 %$47,710 $5,964 $17,891 $320,565 $4,522,000 7/1/2025 $252,000 3.00 %$45,220 $5,653 $16,958 $319,830 $4,270,000 1/1/2026 $256,000 3.00 %$42,700 $5,338 $16,013 $320,050 $4,014,000 7/1/2026 $260,000 3.00 %$40,140 $5,018 $15,053 $320,210 $3,754,000 1/1/2027 $264,000 3.00 %$37,540 $4,693 $14,078 $320,310 $3,490,000 7/1/2027 $268,000 3.00 %$34,900 $4,363 $13,088 $320,350 $3,222,000 1/1/2028 $272,000 3.00 %$32,220 $4,028 $12,083 $320,330 $2,950,000 7/1/2028 $276,000 3.00 %$29,500 $3,688 $11,063 $320,250 $2,674,000 1/1/2029 $280,000 3.00 %$26,740 $3,343 $10,028 $320,110 $2,394,000 7/1/2029 $284,000 3.00 %$23,940 $2,993 $8,978 $319,910 $2,110,000 1/1/2030 $288,000 3.00 %$21,100 $2,638 $7,913 $319,650 $1,822,000 7/1/2030 $293,000 3.00 %$18,220 $2,278 $6,833 $320,330 $1,529,000 1/1/2031 $297,000 3.00 %$15,290 $1,911 $5,734 $319,935 $1,232,000 7/1/2031 $302,000 3.00 %$12,320 $1,540 $4,620 $320,480 $930,000 1/1/2032 $306,000 3.00 %$9,300 $1,163 $3,488 $319,950 $624,000 7/1/2032 $311,000 3.00 %$6,240 $780 $2,340 $320,360 $313,000 1/1/2033 $313,000 3.00 %$3,130 $391 $1,174 $317,695 $0 TOTALS $4,771,000 $446,210 $55,776 $167,329 $5,440,315 201 Water Funds (continued) WATER REVENUE BOND, SERIES 2017 STATE REVOLVING FUND SOURDOUGH WATER TANK PROJECT ORIGINAL PRINCIPAL AMOUNT: $7,573,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $175,000 2.50 %$53,390 $6,674 $6,674 $241,738 $5,164,000 7/1/2025 $177,000 2.50 %$51,640 $6,455 $6,455 $241,550 $4,987,000 1/1/2026 $179,000 2.50 %$49,870 $6,234 $6,234 $241,338 $4,808,000 7/1/2026 $182,000 2.50 %$48,080 $6,010 $6,010 $242,100 $4,626,000 1/1/2027 $184,000 2.50 %$46,260 $5,783 $5,783 $241,825 $4,442,000 7/1/2027 $186,000 2.50 %$44,420 $5,553 $5,553 $241,525 $4,256,000 1/1/2028 $189,000 2.50 %$42,560 $5,320 $5,320 $242,200 $4,067,000 7/1/2028 $191,000 2.50 %$40,670 $5,084 $5,084 $241,838 $3,876,000 1/1/2029 $193,000 2.50 %$38,760 $4,845 $4,845 $241,450 $3,683,000 7/1/2029 $196,000 2.50 %$36,830 $4,604 $4,604 $242,038 $3,487,000 1/1/2030 $198,000 2.50 %$34,870 $4,359 $4,359 $241,588 $3,289,000 7/1/2030 $201,000 2.50 %$32,890 $4,111 $4,111 $242,113 $3,088,000 1/1/2031 $203,000 2.50 %$30,880 $3,860 $3,860 $241,600 $2,885,000 7/1/2031 $206,000 2.50 %$28,850 $3,606 $3,606 $242,063 $2,679,000 1/1/2032 $208,000 2.50 %$26,790 $3,349 $3,349 $241,488 $2,471,000 7/1/2032 $211,000 2.50 %$24,710 $3,089 $3,089 $241,888 $2,260,000 1/1/2033 $214,000 2.50 %$22,600 $2,825 $2,825 $242,250 $2,046,000 7/1/2033 $216,000 2.50 %$20,460 $2,558 $2,558 $241,575 $1,830,000 1/1/2034 $219,000 2.50 %$18,300 $2,288 $2,288 $241,875 $1,611,000 7/1/2034 $222,000 2.50 %$16,110 $2,014 $2,014 $242,138 $1,389,000 1/1/2035 $224,000 2.50 %$13,890 $1,736 $1,736 $241,363 $1,165,000 7/1/2035 $227,000 2.50 %$11,650 $1,456 $1,456 $241,563 $938,000 1/1/2036 $230,000 2.50 %$9,380 $1,173 $1,173 $241,725 $708,000 7/1/2036 $233,000 2.50 %$7,080 $885 $885 $241,850 $475,000 1/1/2037 $236,000 2.50 %$4,750 $594 $594 $241,938 $239,000 7/1/2037 $239,000 2.50 %$2,390 $299 $299 $241,988 $0 TOTALS $5,339,000 $758,080 $94,760 $94,760 $6,286,600 202 Wastewater Funds WASTEWATER REVENUE BOND, SERIES 2010B STATE REVOLVING FUND WATER RECLAMATION FACILITY (WRF) UPGRADES & EXPANSION ORIGINAL PRINCIPAL AMOUNT: $359,300 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2025 $10,000 1.75 %$971 $10,971 $101,000 7/1/2025 $10,000 1.75 %$884 $10,884 $91,000 1/1/2026 $10,000 1.75 %$796 $10,796 $81,000 7/1/2026 $10,000 1.75 %$709 $10,709 $71,000 1/1/2027 $10,000 1.75 %$621 $10,621 $61,000 7/1/2027 $10,000 1.75 %$534 $10,534 $51,000 1/1/2028 $10,000 1.75 %$446 $10,446 $41,000 7/1/2028 $10,000 1.75 %$359 $10,359 $31,000 1/1/2029 $10,000 1.75 %$271 $10,271 $21,000 7/1/2029 $10,000 1.75 %$184 $10,184 $11,000 1/1/2030 $11,000 1.75 %$96 $11,096 $0 TOTALS $111,000 $5,871 $116,871 WASTEWATER REVENUE BOND, SERIES 2010D STATE REVOLVING FUND WATER RECLAMATION FACILITY (WRF) UPGRADES & EXPANSION ORIGINAL PRINCIPAL AMOUNT: $9,500,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $273,000 3.00 %$32,330 $4,041 $12,124 $321,495 $2,960,000 7/1/2025 $277,000 3.00 %$29,600 $3,700 $11,100 $321,400 $2,683,000 1/1/2026 $281,000 3.00 %$26,830 $3,354 $10,061 $321,245 $2,402,000 7/1/2026 $285,000 3.00 %$24,020 $3,003 $9,008 $321,030 $2,117,000 1/1/2027 $289,000 3.00 %$21,170 $2,646 $7,939 $320,755 $1,828,000 7/1/2027 $294,000 3.00 %$18,280 $2,285 $6,855 $321,420 $1,534,000 1/1/2028 $298,000 3.00 %$15,340 $1,918 $5,753 $321,010 $1,236,000 7/1/2028 $302,000 3.00 %$12,360 $1,545 $4,635 $320,540 $934,000 1/1/2029 $307,000 3.00 %$9,340 $1,168 $3,503 $321,010 $627,000 7/1/2029 $312,000 3.00 %$6,270 $784 $2,351 $321,405 $315,000 1/1/2030 $315,000 3.00 %$3,150 $394 $1,181 $319,725 $0 TOTALS $3,233,000 $198,690 $24,836 $74,509 $3,531,035 203 Wastewater Funds (continued) WASTEWATER REVENUE BOND, SERIES 2010F STATE REVOLVING FUND WATER RECLAMATION FACILITY (WRF) DIGESTER ORIGINAL PRINCIPAL AMOUNT: $729,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $23,000 3.00 %$3,000 $375 $1,125 $27,500 $277,000 7/1/2025 $23,000 3.00 %$2,770 $346 $1,039 $27,155 $254,000 1/1/2026 $24,000 3.00 %$2,540 $318 $953 $27,810 $230,000 7/1/2026 $24,000 3.00 %$2,300 $288 $863 $27,450 $206,000 1/1/2027 $24,000 3.00 %$2,060 $258 $773 $27,090 $182,000 7/1/2027 $25,000 3.00 %$1,820 $228 $683 $27,730 $157,000 1/1/2028 $25,000 3.00 %$1,570 $196 $589 $27,355 $132,000 7/1/2028 $26,000 3.00 %$1,320 $165 $495 $27,980 $106,000 1/1/2029 $26,000 3.00 %$1,060 $133 $398 $27,590 $80,000 7/1/2029 $26,000 3.00 %$800 $100 $300 $27,200 $54,000 1/1/2030 $27,000 3.00 %$540 $68 $203 $27,810 $27,000 7/1/2030 $27,000 3.00 %$270 $34 $101 $27,405 $0 TOTALS $300,000 $20,050 $2,506 $7,519 $330,075 WASTEWATER REVENUE BOND, SERIES 2010C STATE REVOLVING FUND WATER RECLAMATION FACILITY (WRF) ADMIN BUILDING ORIGINAL PRINCIPAL AMOUNT: $885,081 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $27,000 3.00 %$3,830 $479 $1,436 $32,745 $356,000 7/1/2025 $27,000 3.00 %$3,560 $445 $1,335 $32,340 $329,000 1/1/2026 $28,000 3.00 %$3,290 $411 $1,234 $32,935 $301,000 7/1/2026 $28,000 3.00 %$3,010 $376 $1,129 $32,515 $273,000 1/1/2027 $29,000 3.00 %$2,730 $341 $1,024 $33,095 $244,000 7/1/2027 $29,000 3.00 %$2,440 $305 $915 $32,660 $215,000 1/1/2028 $29,000 3.00 %$2,150 $269 $806 $32,225 $186,000 7/1/2028 $30,000 3.00 %$1,860 $233 $698 $32,790 $156,000 1/1/2029 $30,000 3.00 %$1,560 $195 $585 $32,340 $126,000 7/1/2029 $31,000 3.00 %$1,260 $158 $473 $32,890 $95,000 1/1/2030 $31,000 3.00 %$950 $119 $356 $32,425 $64,000 7/1/2030 $32,000 3.00 %$640 $80 $240 $32,960 $32,000 1/1/2031 $32,000 3.00 %$320 $40 $120 $32,480 $0 TOTALS $383,000 $27,600 $3,450 $10,350 $424,400 204 Wastewater Funds (continued) WASTEWATER REVENUE BOND, SERIES 2010G STATE REVOLVING FUND WATER RECLAMATION FACILITY (WRF) DIGESTER PROJECT ORIGINAL PRINCIPAL AMOUNT: $3,903,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $82,000 3.00 %$11,950 $4,481 $1,494 $99,925 $1,113,000 7/1/2025 $84,000 3.00 %$11,130 $4,174 $1,391 $100,695 $1,029,000 1/1/2026 $85,000 3.00 %$10,290 $3,859 $1,286 $100,435 $944,000 7/1/2026 $87,000 3.00 %$9,440 $3,540 $1,180 $101,160 $857,000 1/1/2027 $88,000 3.00 %$8,570 $3,214 $1,071 $100,855 $769,000 7/1/2027 $90,000 3.00 %$7,690 $2,884 $961 $101,535 $679,000 1/1/2028 $92,000 3.00 %$6,790 $2,546 $849 $102,185 $587,000 7/1/2028 $93,000 3.00 %$5,870 $2,201 $734 $101,805 $494,000 1/1/2029 $95,000 3.00 %$4,940 $1,853 $618 $102,410 $399,000 7/1/2029 $97,000 3.00 %$3,990 $1,496 $499 $102,985 $302,000 1/1/2030 $99,000 3.00 %$3,020 $1,133 $378 $103,530 $203,000 7/1/2030 $101,000 3.00 %$2,030 $761 $254 $104,045 $102,000 1/1/2031 $102,000 3.00 %$1,020 $383 $128 $103,530 $0 TOTALS $1,195,000 $86,730 $32,524 $10,841 $1,325,095 WASTEWATER REVENUE BOND, SERIES 2010H STATE REVOLVING FUND WATER RECLAMATION FACILITY (WRF) ORIGINAL PRINCIPAL AMOUNT: $8,692,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $265,000 3.00 %$37,660 $4,708 $14,123 $321,490 $3,501,000 7/1/2025 $269,000 3.00 %$35,010 $4,376 $13,129 $321,515 $3,232,000 1/1/2026 $273,000 3.00 %$32,320 $4,040 $12,120 $321,480 $2,959,000 7/1/2026 $277,000 3.00 %$29,590 $3,699 $11,096 $321,385 $2,682,000 1/1/2027 $281,000 3.00 %$26,820 $3,353 $10,058 $321,230 $2,401,000 7/1/2027 $285,000 3.00 %$24,010 $3,001 $9,004 $321,015 $2,116,000 1/1/2028 $289,000 3.00 %$21,160 $2,645 $7,935 $320,740 $1,827,000 7/1/2028 $294,000 3.00 %$18,270 $2,284 $6,851 $321,405 $1,533,000 1/1/2029 $298,000 3.00 %$15,330 $1,916 $5,749 $320,995 $1,235,000 7/1/2029 $302,000 3.00 %$12,350 $1,544 $4,631 $320,525 $933,000 1/1/2030 $307,000 3.00 %$9,330 $1,166 $3,499 $320,995 $626,000 7/1/2030 $312,000 3.00 %$6,260 $783 $2,348 $321,390 $314,000 1/1/2031 $314,000 3.00 %$3,140 $393 $1,178 $318,710 $0 TOTALS $3,766,000 $271,250 $33,906 $101,719 $4,172,875 205 Wastewater Funds (continued) WASTEWATER REVENUE BOND, SERIES 2020D STATE REVOLVING FUND FRONT STREET INTERCEPTOR ORIGINAL PRINCIPAL AMOUNT: $2,807,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $60,000 2.50 %$23,510 $2,939 $2,939 $89,388 $2,291,000 7/1/2025 $61,000 2.50 %$22,910 $2,864 $2,864 $89,638 $2,230,000 1/1/2026 $62,000 2.50 %$22,300 $2,788 $2,788 $89,875 $2,168,000 7/1/2026 $62,000 2.50 %$21,680 $2,710 $2,710 $89,100 $2,106,000 1/1/2027 $63,000 2.50 %$21,060 $2,633 $2,633 $89,325 $2,043,000 7/1/2027 $64,000 2.50 %$20,430 $2,554 $2,554 $89,538 $1,979,000 1/1/2028 $65,000 2.50 %$19,790 $2,474 $2,474 $89,738 $1,914,000 7/1/2028 $66,000 2.50 %$19,140 $2,393 $2,393 $89,925 $1,848,000 1/1/2029 $67,000 2.50 %$18,480 $2,310 $2,310 $90,100 $1,781,000 7/1/2029 $67,000 2.50 %$17,810 $2,226 $2,226 $89,263 $1,714,000 1/1/2030 $68,000 2.50 %$17,140 $2,143 $2,143 $89,425 $1,646,000 7/1/2030 $69,000 2.50 %$16,460 $2,058 $2,058 $89,575 $1,577,000 1/1/2031 $70,000 2.50 %$15,770 $1,971 $1,971 $89,713 $1,507,000 7/1/2031 $71,000 2.50 %$15,070 $1,884 $1,884 $89,838 $1,436,000 1/1/2032 $72,000 2.50 %$14,360 $1,795 $1,795 $89,950 $1,364,000 7/1/2032 $73,000 2.50 %$13,640 $1,705 $1,705 $90,050 $1,291,000 1/1/2033 $73,000 2.50 %$12,910 $1,614 $1,614 $89,138 $1,218,000 7/1/2033 $74,000 2.50 %$12,180 $1,523 $1,523 $89,225 $1,144,000 1/1/2034 $75,000 2.50 %$11,440 $1,430 $1,430 $89,300 $1,069,000 7/1/2034 $76,000 2.50 %$10,690 $1,336 $1,336 $89,363 $993,000 1/1/2035 $77,000 2.50 %$9,930 $1,241 $1,241 $89,413 $916,000 7/1/2035 $78,000 2.50 %$9,160 $1,145 $1,145 $89,450 $838,000 1/1/2036 $79,000 2.50 %$8,380 $1,048 $1,048 $89,475 $759,000 7/1/2036 $80,000 2.50 %$7,590 $949 $949 $89,488 $679,000 1/1/2037 $81,000 2.50 %$6,790 $849 $849 $89,488 $598,000 7/1/2037 $82,000 2.50 %$5,980 $748 $748 $89,475 $516,000 1/1/2038 $83,000 2.50 %$5,160 $645 $645 $89,450 $433,000 7/1/2038 $84,000 2.50 %$4,330 $541 $541 $89,413 $349,000 1/1/2039 $85,000 2.50 %$3,490 $436 $436 $89,363 $264,000 7/1/2039 $86,000 2.50 %$2,640 $330 $330 $89,300 $178,000 1/1/2040 $87,000 2.50 %$1,780 $223 $223 $89,225 $91,000 7/1/2040 $91,000 2.50 %$910 $114 $114 $92,138 $0 TOTALS $2,351,000 $412,910 $51,614 $51,614 $2,867,138 206 Wastewater Funds (continued) WASTEWATER REVENUE BOND, SERIES 2020B STATE REVOLVING FUND DAVIS LANE/NORTON E RANCH ORIGINAL PRINCIPAL AMOUNT: $7,786,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $167,000 2.50 %$65,220 $8,153 $8,153 $248,525 $6,355,000 7/1/2025 $169,000 2.50 %$63,550 $7,944 $7,944 $248,438 $6,186,000 1/1/2026 $171,000 2.50 %$61,860 $7,733 $7,733 $248,325 $6,015,000 7/1/2026 $173,000 2.50 %$60,150 $7,519 $7,519 $248,188 $5,842,000 1/1/2027 $176,000 2.50 %$58,420 $7,303 $7,303 $249,025 $5,666,000 7/1/2027 $178,000 2.50 %$56,660 $7,083 $7,083 $248,825 $5,488,000 1/1/2028 $180,000 2.50 %$54,880 $6,860 $6,860 $248,600 $5,308,000 7/1/2028 $182,000 2.50 %$53,080 $6,635 $6,635 $248,350 $5,126,000 1/1/2029 $184,000 2.50 %$51,260 $6,408 $6,408 $248,075 $4,942,000 7/1/2029 $187,000 2.50 %$49,420 $6,178 $6,178 $248,775 $4,755,000 1/1/2030 $189,000 2.50 %$47,550 $5,944 $5,944 $248,438 $4,566,000 7/1/2030 $191,000 2.50 %$45,660 $5,708 $5,708 $248,075 $4,375,000 1/1/2031 $194,000 2.50 %$43,750 $5,469 $5,469 $248,688 $4,181,000 7/1/2031 $196,000 2.50 %$41,810 $5,226 $5,226 $248,263 $3,985,000 1/1/2032 $199,000 2.50 %$39,850 $4,981 $4,981 $248,813 $3,786,000 7/1/2032 $201,000 2.50 %$37,860 $4,733 $4,733 $248,325 $3,585,000 1/1/2033 $204,000 2.50 %$35,850 $4,481 $4,481 $248,813 $3,381,000 7/1/2033 $206,000 2.50 %$33,810 $4,226 $4,226 $248,263 $3,175,000 1/1/2034 $209,000 2.50 %$31,750 $3,969 $3,969 $248,688 $2,966,000 7/1/2034 $211,000 2.50 %$29,660 $3,708 $3,708 $248,075 $2,755,000 1/1/2035 $214,000 2.50 %$27,550 $3,444 $3,444 $248,438 $2,541,000 7/1/2035 $217,000 2.50 %$25,410 $3,176 $3,176 $248,763 $2,324,000 1/1/2036 $220,000 2.50 %$23,240 $2,905 $2,905 $249,050 $2,104,000 7/1/2036 $222,000 2.50 %$21,040 $2,630 $2,630 $248,300 $1,882,000 1/1/2037 $225,000 2.50 %$18,820 $2,353 $2,353 $248,525 $1,657,000 7/1/2037 $228,000 2.50 %$16,570 $2,071 $2,071 $248,713 $1,429,000 1/1/2038 $231,000 2.50 %$14,290 $1,786 $1,786 $248,863 $1,198,000 7/1/2038 $234,000 2.50 %$11,980 $1,498 $1,498 $248,975 $964,000 1/1/2039 $236,000 2.50 %$9,640 $1,205 $1,205 $248,050 $728,000 7/1/2039 $239,000 2.50 %$7,280 $910 $910 $248,100 $489,000 1/1/2040 $242,000 2.50 %$4,890 $611 $611 $248,113 $247,000 7/1/2040 $247,000 2.50 %$2,470 $309 $309 $250,088 $0 TOTALS $6,522,000 $1,145,230 $143,154 $143,154 $7,953,538 207 Wastewater Funds (continued) WASTEWATER REVENUE BOND, SERIES 2020C STATE REVOLVING FUND DAVIS LANE/NORTON E RANCH ORIGINAL PRINCIPAL AMOUNT: $6,693,321 Payment Due Principal Payment Interest Rate Interest Payment Semi-Annual Payment Principal Balance 1/1/2025 $141,000 2.50 %$71,588 $212,588 $5,586,000 7/1/2025 $143,000 2.50 %$69,825 $212,825 $5,443,000 1/1/2026 $145,000 2.50 %$68,038 $213,038 $5,298,000 7/1/2026 $146,000 2.50 %$66,225 $212,225 $5,152,000 1/1/2027 $148,000 2.50 %$64,400 $212,400 $5,004,000 7/1/2027 $151,000 2.50 %$62,550 $213,550 $4,853,000 1/1/2028 $153,000 2.50 %$60,663 $213,663 $4,700,000 7/1/2028 $154,000 2.50 %$58,750 $212,750 $4,546,000 1/1/2029 $157,000 2.50 %$56,825 $213,825 $4,389,000 7/1/2029 $159,000 2.50 %$54,863 $213,863 $4,230,000 1/1/2030 $160,000 2.50 %$52,875 $212,875 $4,070,000 7/1/2030 $161,000 2.50 %$50,875 $211,875 $3,909,000 1/1/2031 $164,000 2.50 %$48,863 $212,863 $3,745,000 7/1/2031 $167,000 2.50 %$46,813 $213,813 $3,578,000 1/1/2032 $168,000 2.50 %$44,725 $212,725 $3,410,000 7/1/2032 $170,000 2.50 %$42,625 $212,625 $3,240,000 1/1/2033 $173,000 2.50 %$40,500 $213,500 $3,067,000 7/1/2033 $174,000 2.50 %$38,338 $212,338 $2,893,000 1/1/2034 $177,000 2.50 %$36,163 $213,163 $2,716,000 7/1/2034 $179,000 2.50 %$33,950 $212,950 $2,537,000 1/1/2035 $182,000 2.50 %$31,713 $213,713 $2,355,000 7/1/2035 $183,000 2.50 %$29,438 $212,438 $2,172,000 1/1/2036 $185,000 2.50 %$27,150 $212,150 $1,987,000 7/1/2036 $188,000 2.50 %$24,838 $212,838 $1,799,000 1/1/2037 $190,000 2.50 %$22,488 $212,488 $1,609,000 7/1/2037 $192,000 2.50 %$20,113 $212,113 $1,417,000 1/1/2038 $195,000 2.50 %$17,713 $212,713 $1,222,000 7/1/2038 $197,000 2.50 %$15,275 $212,275 $1,025,000 1/1/2039 $200,000 2.50 %$12,813 $212,813 $825,000 7/1/2039 $203,000 2.50 %$10,313 $213,313 $622,000 1/1/2040 $205,000 2.50 %$7,775 $212,775 $417,000 7/1/2040 $207,000 2.50 %$5,213 $212,213 $210,000 1/1/2041 $210,000 2.50 %$2,625 $212,625 $0 TOTALS $5,727,000 $1,296,913 $7,023,913 208 Stormwater Fund STORMWATER REVENUE BOND, SERIES 2015 STATE REVOLVING FUND LANDFILL MITIGATION ORIGINAL PRINCIPAL AMOUNT: $1,815,000 Payment Due Principal Payment Interest Rate Interest Payment Loan Loss Reserve Admin Expense Surcharge Semi-Annual Payment Principal Balance 1/1/2025 $44,000 2.50 %$11,090 $1,386 $1,386 $57,863 $1,065,000 7/1/2025 $45,000 2.50 %$10,650 $1,331 $1,331 $58,313 $1,020,000 1/1/2026 $45,000 2.50 %$10,200 $1,275 $1,275 $57,750 $975,000 7/1/2026 $45,000 2.50 %$9,750 $1,219 $1,219 $57,188 $930,000 1/1/2027 $47,000 2.50 %$9,300 $1,163 $1,163 $58,625 $883,000 7/1/2027 $47,000 2.50 %$8,830 $1,104 $1,104 $58,038 $836,000 1/1/2028 $48,000 2.50 %$8,360 $1,045 $1,045 $58,450 $788,000 7/1/2028 $48,000 2.50 %$7,880 $985 $985 $57,850 $740,000 1/1/2029 $48,000 2.50 %$7,400 $925 $925 $57,250 $692,000 7/1/2029 $49,000 2.50 %$6,920 $865 $865 $57,650 $643,000 1/1/2030 $49,000 2.50 %$6,430 $804 $804 $57,038 $594,000 7/1/2030 $51,000 2.50 %$5,940 $743 $743 $58,425 $543,000 1/1/2031 $51,000 2.50 %$5,430 $679 $679 $57,788 $492,000 7/1/2031 $52,000 2.50 %$4,920 $615 $615 $58,150 $440,000 1/1/2032 $53,000 2.50 %$4,400 $550 $550 $58,500 $387,000 7/1/2032 $53,000 2.50 %$3,870 $484 $484 $57,838 $334,000 1/1/2033 $54,000 2.50 %$3,340 $418 $418 $58,175 $280,000 7/1/2033 $55,000 2.50 %$2,800 $350 $350 $58,500 $225,000 1/1/2034 $56,000 2.50 %$2,250 $281 $281 $58,813 $169,000 7/1/2034 $56,000 2.50 %$1,690 $211 $211 $58,113 $113,000 1/1/2035 $56,000 2.50 %$1,130 $141 $141 $57,413 $57,000 7/1/2035 $57,000 2.50 %$570 $71 $71 $57,713 $0 TOTALS $1,109,000 $133,150 $16,644 $16,644 $1,275,438 209 Public Works Administration Fund E. BEALL OFFICE LEASE ORIGINAL PRINCIPAL AMOUNT: $423,122 Payment Due Principal Payment Interest Rate Interest Payment Monthly Payment Lease Balance 7/1/2024 $6,934 5.00 %$1,070 $8,005 $249,967 8/1/2024 $6,963 5.00 %$1,042 $8,005 $243,004 9/1/2024 $6,992 5.00 %$1,013 $8,005 $236,012 10/1/2024 $7,021 5.00 %$983 $8,005 $228,990 11/1/2024 $7,051 5.00 %$954 $8,005 $221,940 12/1/2024 $7,080 5.00 %$925 $8,005 $214,860 1/1/2025 $7,109 5.00 %$895 $8,005 $207,750 2/1/2025 $7,139 5.00 %$866 $8,005 $200,611 3/1/2025 $7,169 5.00 %$836 $8,005 $193,442 4/1/2025 $7,518 5.00 %$806 $8,324 $185,924 5/1/2025 $7,550 5.00 %$775 $8,324 $178,374 6/1/2025 $7,581 5.00 %$743 $8,324 $170,793 7/1/2025 $7,613 5.00 %$712 $8,324 $163,181 8/1/2025 $7,644 5.00 %$680 $8,324 $155,537 9/1/2025 $7,676 5.00 %$648 $8,324 $147,860 10/1/2025 $7,708 5.00 %$616 $8,324 $140,152 11/1/2025 $7,740 5.00 %$584 $8,324 $132,412 12/1/2025 $7,773 5.00 %$552 $8,324 $124,639 1/1/2026 $7,805 5.00 %$519 $8,324 $116,834 2/1/2026 $7,837 5.00 %$487 $8,324 $108,997 3/1/2026 $7,870 5.00 %$454 $8,324 $101,127 4/1/2026 $8,236 5.00 %$421 $8,657 $92,891 5/1/2026 $8,270 5.00 %$387 $8,657 $84,621 6/1/2026 $8,305 5.00 %$353 $8,657 $76,316 7/1/2026 $8,339 5.00 %$318 $8,657 $67,977 8/1/2026 $8,374 5.00 %$283 $8,657 $59,603 9/1/2026 $8,409 5.00 %$248 $8,657 $51,194 10/1/2026 $8,444 5.00 %$213 $8,657 $42,750 11/1/2026 $8,479 5.00 %$178 $8,657 $34,271 12/1/2026 $8,514 5.00 %$143 $8,657 $25,757 1/1/2027 $8,550 5.00 %$107 $8,657 $17,207 2/1/2027 $8,586 5.00 %$72 $8,657 $8,621 3/1/2027 $8,621 5.00 %$36 $8,657 $0 TOTALS $256,901 $18,919 $275,820 $4,283,616 210 Capital Improvement Program (CIP) 211 Introduction to the Capital Improvement Program (CIP) The CIP includes a list of anticipated capital expenditures over the biennium as defined by 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, master planning, 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 budget and 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 12, 2023. 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 the 2025 Biennium Adopted Budget. 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 2025-2029 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 FY25-FY29. The adopted plan includes a summary, beginning on page 11, of what projects been included, how the projects were identified for funding, and the definitions and criteria by which projects have been evaluated to determine the impact on current and future operating budgets. An explanation of changes made to the capital plan following the adoption of the CIP are detailed in the table below. 212 Changes from Adopted FY25-29 CIP to Adopted Budget Fund Department Increase (Decrease) FY25 Increase (Decrease) FY26 Explanation General Fund Police $ 255,000 $ — Added three vehicles for new staff in the recommended budget General Fund Fire $ — $ (18,000,000) Moved $18M from General Fund to Capital Construction Fund for Fire Station #4 General Fund Neighborhood Services $ 45,000 $ — Added one vehicle for new staff in the recommended budget Arterial & Collector District Transportation $ 50,000 $ 150,000 Added $200k for Oak Street Intersections over biennium to more accurately reflect the needs of the project Street Maintenance Transportation $ 50,000 $ 50,000 Additional $50k annual appropriation to Multimodal Projects (STR22) per Commission amendment Fire Capital & Equipment Fund Fire $ 120,000 $ 95,000 Added one vehicle in both years of the biennium and a Vehicle Lift in FY26 for staffing additions, added project for Back-Up Engine Refurbishment in FY25 that was originally planned with the recent fire engine purchase but exceed available budget Parks & Trails District Fund Parks & Trails District $ (965,000) $ (425,000) Reduction to the capital plan to be more realistic and reduce the impact on homeowners Downtown URD Economic Development $ 780,000 $ 950,000 Capital Projects in the Downtown URD are included in the work plan for the district, but not in the City-wide Capital Plan Capital Construction Fund Fire $ — $ 18,000,000 Moved $18M from General Fund to Capital Construction Fund for Fire Station #4 Street Reconstruction Fund Transportation $ (1,170,000) $ (1,054,600) Removed S. Black in FY25 and N. Grand in FY26 due to lack of support for Special Improvement Districts Water Fund Water $ — $ 1,500,000 Added funding for PRV Mechanical & Structural upgrades, Groundwater Permitting, and Water Mains along Fowler Corridor to shift budget in order to more accurately reflect projected schedules Solid Waste Fund Solid Waste $ — $ 320,000 Added grant funded capital related to the pilot organics program, and a rate study Parking Parking $ 45,000 $ — Added one vehicle for new staff in the recommended budget, Reduced P017 by $400k in FY26, retained $400k for other parking priority projects per Commission amendment Vehicle Maintenance Vehicle Maintenance $ — $ 52,000 Added vehicle lift in FY26 as original plan to replace existing lifts in FY24 is no longer feasible Total $ (840,000) $ 1,587,400 213 2025 Biennium Adopted Budget Capital Projects Summary Costs: Approximately $150.3 million in capital spending and commitments are planned over the 2025 Biennium. The pie chart below provides a visual depiction of capital appropriations planned in the two-year period. Over the biennium, Street Impact Fee capital projects make up the greatest portion of projects, followed closely by Capital Construction Projects. In the Street Impact Fee CIP, the most significant projects are Kagy: 19th to Willson and Fowler Avenue Connection (Huffine to Oak) budgeted at $10.4M and $13.0M, respectively. The main drivers in the Capital Construction CIP are the Fire Station 4 project budgeted at $18.0M in fiscal year 2025 and the Shops Complex projected at $13.7M over the biennium. The next two greatest portions of the CIP are for Water and Wastewater infrastructure projects. Significant projects in these two utility funds include the Water Reclamation Facility (WRF) Base Hydraulic project budgeted at $10.1M and the Hyalite Dam & Reservoir Operations project budgeted at $5.0M. 2025 Biennium Budget Capital Appropriations by Fund Facilities, 1% Police, 1% Budget Capital Construction Fund, 12% Shops Complex Construction Fund, 9% Solid Waste Fund, 2% Stormwater Fund, 1% Street Maintenance Fund, 5% Street Impact Fee Fund, 25% Arterial & Collector Fund, 8% Wastewater Funds, 16% Water Funds, 12% Recreation, 1% Parks & Trails District Fund, 2% Downtown Urban Renewal District Fund, 1% Sustainability, 1% 214 2025 Biennium Adopted Budget Funded Capital Project Listing by Fund/Department 2025 Biennium Adopted Budget Capital Project Listing Fund Department Project #Project Name FY25 Budget FY26 Budget General Fund City Manager GF378 Records Request Software $ 50,000 $ — City Manager General Fund Total $ 50,000 $ — General Fund Facilities GF157 Senior Center Elevator $ 286,000 $ — GF325 New Department Vehicle 75,000 — GF343 New Department Vehicle 75,000 — GF344 New Department Vehicle — 75,000 GF345 Vehicle Replacement 75,000 — GF379 Flooring Replacement — 50,800 FCA002 Site Facility Exterior Painting — 122,300 FCA007 Site Accessibility Assessments — 92,100 FCA009 Library Boiler Replacements — 317,100 FCA010 Architectural Study — 73,300 FCA012 Railings/Handrail Replacement — 65,100 Facilities General Fund Total $ 511,000 $ 795,700 General Fund Information Technology GF080 City-Wide Switches and Routers $ 60,000 $ 60,000 GF233 IT Vehicle Replacement — 35,000 GF265 Server Replacement GF — 202,000 GF289 Server Farm Upgrade — 35,000 Information Technology General Fund Total $ 60,000 $ 332,000 Planning Fund Planning CD09 Community Development Printer $ 13,000 $ — Planning Fund Total $ 13,000 $ — General Fund Police GF052 Non-Patrol Car Replacement17 $ 70,000 $ 35,000 GF053 Patrol Vehicle - Replacement1 1,100,100 324,500 GF293 Non-Patrol Car New1 67,000 — GF377 Police Tasers 28,100 — Police General Fund Total $ 1,265,200 $ 359,500 Fire Capital & Equipment Fund Fire FE12 Personal Protective Equipment $ 54,000 $ 56,700 FE18 Light Duty Vehicles 230,000 50,000 FE26 Data Analytics Software 80,000 — FE29 Back-Up Engine Refurbishment 70,000 — FE28 Vehicle Lift — 45,000 Fire Capital & Equipment Fund Total $ 434,000 $ 151,700 21517 Project is budgeted to be debt funded 2025 Biennium Adopted Budget Capital Project Listing Fund Department Project #Project Name FY25 Budget FY26 Budget Budget Capital Construction Fund Fire GF355 Fire Station 4 $ 18,000,000 $ — Budget Capital Construction Fund Total $ 18,000,000 $ — Building Inspection Fund Building Inspection BI06 Building Vehicle $ 52,000 $ — BI07 Building Vehicle — 54,100 CD09 Community Development Printer 13,000 — Building Inspection Fund Total $ 65,000 $ 54,100 Parking Fund Parking Fund P017 Rouse Lot Improvements $ — $ 170,500 P033 Enforcement Vehicle Replacement 52,000 — P035 New Vehicle 45,000 — PARKNG TBD Parking Project(s) — 400,000 Parking Fund Total $ 97,000 $ 570,500 Shops Complex Construction Fund Public Works Administration SHOPS Shops Complex18 156,000 13,520,000 Shops Complex Construction Fund Total $ 156,000 $ 13,520,000 Solid Waste Fund Solid Waste SW50 Side Load Truck2 $ 425,000 $ — SW51 Sideload Garbage Truck2 425,000 — SW58 Roll Off Truck2 250,000 — SW59 Rate Study19 70,000 — SW60 Sideload Garbage Truck2 425,000 — SW63 Front Load Truck2 378,000 — SW65 Side Load Truck-Recycling2 — 425,000 Landfill Post-Closure Fund SW78 Cover System Improvements — 351,500 Solid Waste Fund Total $ 1,973,000 $ 776,500 Stormwater Fund Stormwater STDM02 Manley Ditch Rehab2 520,000 — STDM04 Historic Pipe Replacement Program 156,000 535,400 STDM05 Annual Unplanned Pipe Rehabilitation 54,100 59,100 STOP04 Pipe Inspection Van (#01)2 325,000 — STOP08 Vacuum & Jetting Truck #12 — 590,000 Stormwater Fund Total $ 1,055,100 $ 1,184,500 216 18 Project is budgeted to be debt funded 19 Project will not be capitalized and is included in the Operating budget 2025 Biennium Adopted Budget Capital Project Listing Fund Department Project #Project Name FY25 Budget FY26 Budget Street Maintenance Fund Transportation STR20 Annual Multimodal Improvements $ 154,000 $ 158,200 STR22 Streets Operations Grader Lease 220,000 220,000 STR30 Annual Median & Boulevard Improvements20 88,400 97,300 STR34 Sweepers 131,000 131,000 STR40 Dump Truck with Plow Sander — 297,400 STR49 Sanders 40,000 40,000 STR58 Tandem Axle Dump Truck — 320,000 STR71 Street Improvement (Mill+Overlay) 1,040,400 1,136,100 STR75 Annual Pedestrian Ramp Repair 115,000 120,000 STR84 Plug In Electric Work Truck — 70,000 STR90 Streets Chip Seal4 780,200 819,200 STR93 Snow Blower — 220,000 STR103 HAWK Signal at Gallatin High 150,000 — STR106 Asphalt Roller 155,000 — STR107 Pavement Marking Striper 37,000 — STR109 Sidewalk Utility Vehicle 70,000 — STR110 Portable Emulsion Tank 58,000 — STR112 Spray Patch Truck 310,000 — STR123 Light Duty Fleet Addition 80,000 80,000 STR126 Loader 250,000 — STR127 Patch Truck 310,000 — STR128 Skid Steer with Asphalt Mill 130,000 — STR129 Light Duty Replace 3345 — 80,000 STR135 Diesel Fuel Tank & Kiosk 32,000 32,000 STR144 Replace Mini Loader 100,000 — STR145 Smart Paving Technology Attachment — 55,000 STR155 Flanders Mill Shared Use 44,900 182,300 Street Maintenance Fund Total $ 4,295,900 $ 4,058,500 21720 Project will not be capitalized and is included in the Operating budget 2025 Biennium Adopted Budget Capital Project Listing Fund Department Project #Project Name FY25 Budget FY26 Budget Street Impact Fee Fund Transportation SIF009 Kagy: 19th to Willson $ — $ 10,419,000 SIF112 Highland/Main Intersection Improvement — 850,000 SIF114 Fowler Avenue Connection (Huffine to Oak) 5,463,600 7,493,400 SIF118 Babcock: 15th to 19th 1,967,700 2,597,800 SIF149 Babcock: 11th to 15th 325,700 — SIF152 N 27th: Baxter to Cattail 8,611,200 — Street Impact Fee Fund Total $ 16,368,200 $ 21,360,200 Arterial & Collector Fund Transportation A&C007 Shared Use Path: Valley Center Infill Sections $ 135,200 $ 527,600 A&C015 Grade Separated Crossing Study 100,000 — A&C016 Shared Use Path: S 19th, Lincoln to Kagy — 432,600 A&C024 Shared Use Path: Frontage — 500,000 SIF114 Fowler Avenue Connection (Huffine to Oak)21 — 2,659,700 SIF118 Babcock: 15th to 19th 282,900 1,412,700 SIF145 Kagy/Sourdough Intersection Improvements 85,000 250,000 SIF149 Babcock: 11th to 15th 217,200 — SIF152 N 27th: Baxter to Cattail5 2,828,800 — SIF157 College: 8th to 11th 660,400 2,347,100 SIF188 Oak St Intersections 150,000 150,000 Arterial & Collector Fund Total $ 4,459,500 $ 8,279,700 Street Reconstruction Fund Transportation SCR01 Curb Spot Repair $ 114,400 $ 124,400 SCR26 Bogert Place Church to Story 468,000 — $ 582,400 $ 124,400 Vehicle Maintenance Fund Vehicle Maintenance VM08 Mohawk Wheel Lifts $ — $ 52,000 Vehicle Maintenance Fund Total $ — $ 52,000 21821 Project is budgeted to be debt funded 2025 Biennium Adopted Budget Capital Project Listing Fund Department Project #Project Name FY25 Budget FY26 Budget Wastewater Fund Wastewater WW07 Annual Wastewater Pipe Replacement Design $ 33,000 $ 34,300 WW08 Wastewater Pipe Replacement 1,430,000 1,449,300 WW09 Annual 6-Inch Wastewater Pipe Replacement 650,000 811,200 WW69 Small Works Projects 156,000 162,200 WW92 Dewater Pumps Replacement — 162,200 WW103 Replace Dump Truck 3415 229,100 — WW105 Replace Vactor 600,000 — WW109 Godwin Bypass Pump — 54,100 WW112 E Gallatin River Data Collection 63,000 66,200 WW113 Skid Steer Loader Replace — 72,500 WW114 Kenworth Dump Truck — 236,000 WW115 3/4 Ton Pickup Replacement — 95,000 WW123 Replace Generator 30,000 — WW133 Riverside Lift Station 520,000 — WW134 Valley Center Lift Station22 2,288,000 — WW138 Kagy Blvd to Olive Street Sewer Main Replacement — 443,500 Wastewater Impact Fee Fund WW129 WRF Base Hydraulic Phase 16 8,122,400 — WW131 WRF Base Hydraulic Phase 26 — 2,007,700 WW138 Kagy Blvd to Olive Street Sewer Main Replacement — 393,300 WWIF52 Blackwood Groves Sewer 104,000 — WWIF53 Cottonwood Rd Sewer Capacity 312,000 1,622,400 WWIF54 Northwest Crossing Sewer Oversizing 263,100 — WWIF57 Turnrow Subdivision Sewer Oversize — 108,200 WWIF58 Fowler Sewer Upgrade 145,600 988,500 Wastewater Funds Total $ 14,946,200 $ 8,706,600 21922 Project is budgeted to be debt funded 2025 Biennium Adopted Budget Capital Project Listing Fund Department Project #Project Name FY25 Budget FY26 Budget Water Fund Water W03 Annual Water Pipe Replacement Program $ 33,000 $ 34,300 W04 Water Pipe Replacement Program 1,586,000 2,001,000 W72 PRV Ph1-Mechanical & Structural Upgrades — 500,000 W79 Hyalite Dam & Reservoir Operations 208,000 4,841,400 W87 Lyman Tank & Transmission Main 2,916,900 — W98 Replace 1 Ton Truck 90,000 — W100 Replace #3605 GMC Canyon 46,800 — W105 Replace Backhoe 165,800 — W108 Ground Thawer Replacement — 90,200 W110 #3344:3/4 Ton Truck Replacement — 65,000 W111 Meter Service Truck Replacement — 75,000 W115 Hyalite Intake Rehab 104,000 540,800 W116 Replace SCADA Vehicle — 43,300 W134 Groundwater Permitting — 200,000 W147 New Heavy Trailer with Air Brakes 35,000 — W150 Integrated Water Resources Plan (IWRP) Update 400,000 — W151 WTP Capital Replacement — 540,800 W155 Discovery Drive 8-Inch Water Main 494,000 — WIF58 Water Mains w/Fowler Corridor — 800,000 WIF59 Western Transmission Main — 432,600 WIF67 Huffine/Laurel Water Improvements — 270,400 Water Impact Fee Fund WIF33 Municipal Well Design — 1,622,400 WIF56 Blackwood Groves Water Main 104,000 — WIF57 NW Crossing Water Main Oversizing 251,200 — WIF69 Turnrow Subdivision Water Main and PRV Oversizing 260,000 — Water Funds Total $ 6,694,700 $ 12,057,200 General Fund Recreation GF334 SMCC Meeting Room Renovation $ 78,000 $ — GF336 SMCC Office HVAC System 260,000 — GF371 Beall Exterior Door Replacement 60,000 — GF374 Pool Boiler 59,000 — GF375 Gender Neutral Change Rooms 150,000 — GF376 Locker Room Tile 213,000 — Recreation General Fund Total $ 820,000 $ — Tree Maintenance Fund Tree Maintenance FOR18 Forestry Half-Ton Pickup $ 52,000 $ 54,100 Tree Maintenance Fund Total $ 52,000 $ 54,100 220 2025 Biennium Adopted Budget Capital Project Listing Fund Department Project #Project Name FY25 Budget FY26 Budget Parks & Trails District Fund Parks & Trails District PTD01 Large Deck Mower $ 85,000 $ — PTD02 Parks Restroom Upgrades 275,000 — PTD03 Playground/Skate Park Improvements 200,000 200,000 PTD04 Park Vehicles23 180,000 150,000 PTD05 Toolcat Multi Purpose — 90,000 PTD06 Park Shelter Replacement 50,000 75,000 PTD08 Bridge Replacements 350,000 — PTD09 Deferred Maintenance 200,000 200,000 PTD12 Parks Shop Complex 120,000 — PTD17 Tennis Court Resurfacing 40,000 — PTD19 Multipurpose Utility/Snow Machine 140,000 — Parks & Trails District Fund Total $ 1,640,000 $ 715,000 Park Land Trust Fund Parks & Trails District PK1818 Accessibility Enhancements $ 100,000 $ — PK1819 Park Shelters/Shade 50,000 — Park Land Trust Fund Total $ 150,000 $ — General Fund Cemetery GF116 Cemetery Vehicle Replacement $ — $ 65,000 GF231 Cemetery Irrigation Project 400,000 — GF252 Cemetery Columbariums 60,000 — Cemetery General Fund Total $ 460,000 $ 65,000 Library Depreciation Fund Library LIB32 New Carpet Public Area $ 262,000 $ — Library Depreciation Fund Total $ 262,000 $ — General Fund Neighborhood Services GF380 New Vehicle $ 45,000 $ — Neighborhood Services General Fund Total $ 45,000 $ — 22123 Project is budgeted to be debt funded 2025 Biennium Adopted Budget Capital Project Listing Fund Department Project #Project Name FY25 Budget FY26 Budget Downtown Urban Renewal District Fund Economic Development Park Improvements (Soroptimist/NBPP)$ 10,000 $ 250,000 Alley Improvements 50,000 — Utility Infrastructure Improvements 350,000 400,000 Wayfinding & Parking Signage 15,000 20,000 Bozeman Creek Improvements — 10,000 Alternative Transportation Projects 40,000 25,000 Tree Replacement Project (Streetscape Imp. in FY24) 50,000 50,000 Street Furniture/Streetscape Improvements & Furniture 25,000 25,000 Intersection Cable Anchor Repairs 10,000 10,000 Parklet Infrastructure 20,000 — Streetlamp Power Reconfiguration Project (SILD) 100,000 — Streetscape Assistance Grant Program 50,000 100,000 Life-Safety Grant Program 30,000 30,000 Fiber-Broadband Infrastructure Grants 10,000 10,000 Art Enhancement/CPTED Grant Program 20,000 20,000 Downtown Urban Renewal District Fund Total $ 780,000 $ 950,000 General Fund Sustainability GF245 Energy Projects $ 75,000 $ — GF353 Electric Vehicle (EV) Stations 90,000 — GF362 Solar Panel Arrays 232,600 641,100 Sustainability General Fund Total $ 397,600 $ 641,100 Total Capital Projects for All Funds 75,632,800 74,808,300 222 Appendix A: Statistical Section Appendix B: Long-Range Financial Planning Appendix C: Fiscal Policies Appendix D: Glossary of Key Terms Appendix E: City Commission Adoptions 223 Page Intentionally Left Blank 224 Appendix A: Statistical Section 225 CITY OF BOZEMAN PROFILE The City of Bozeman sits in the center of Gallatin County, flanked by the Bridger Mountains and Custer Gallatin National Forest, just south of the Missouri River Headwaters. This diverse Rocky Mountain landscape creates easy access to year-round outdoor activities for Bozeman residents including hiking, mountain biking, climbing, camping, fishing, and downhill and cross-country skiing. The City encompasses an area of approximately 20 square miles with its next-closest municipality being the City of Belgrade, approximately seven miles from the City’s outermost boundary. Bozeman is the county seat of Gallatin County and is the home to Montana State University (MSU) – Bozeman, and the Fighting Bobcats. Bozeman is located 143 miles west of Billings and 200 miles east of Missoula. The City was incorporated in April of 1883 with a city council form of government, and later in January 1922 transitioned to its current city manager/city commission form of government. The population of Bozeman in the 2020 census is 53,293 – which is a total increase of 43% from April 2010 – which continues Bozeman’s standing as the fourth largest city in the state. The latest population estimate issued by the United States Census Bureau as of July 1, 2022 is 56,123. The government provides a full range of services. These services include police and fire protection; sanitation services; water, wastewater & storm water utilities; the construction and maintenance of streets and infrastructure; recreational activities; cultural events; planning and zoning; and general administrative services. The City, as a primary government, is supported or works closely with certain entities to provide these services to the citizens of the City of Bozeman. ECONOMIC OUTLOOK Bozeman has gained recognition as one of the most desirable places to live in the country, offering a wealth of recreational activities, including fishing, hiking, skiing, hunting, and an array of impressive outdoor experiences. Positioned as one of Montana's most populous cities, Downtown Bozeman serves as the vibrant urban hub of the area, featuring a lively nightlife scene, street festivals, farmers markets, and cultural establishments that cater to both residents and visitors. As the home to MSU Bozeman, this town with a collegiate atmosphere serves as a gateway for newcomers to discover the diverse offerings of Montana, serving as a pivotal economic force for both incoming residents and businesses in the region. In 2023, Bozeman was announced as the #1 Strongest Economy for fastest-growing micropolitan cities by POLICOM for the sixth consecutive year. Economic strength is defined as “the long-term tendency for an area to consistently grow in both size and quality.” Bozeman has a 2022 population estimated to be 56,123 residents. Between 2015-2019 the growth rate was 3.8% according to a Bozeman Economic Assessment conducted by Bridge Economic Development published in March 2023. Bozeman’s economy is most heavily concentrated in tourism and retail jobs that typically have lower wages than trade sector jobs. However, both Bozeman and Gallatin County are experiencing strong growth in knowledge- based industries (professional and technical services) and in manufacturing. Increased enrollment at MSU - Bozeman for in-demand tech and engineering degrees, along with substantial growth in company presence, is contributing significantly to population growth. 226 Appendix B: 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 2025 Biennium 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 3% and 12% per year. Assessment increases have been between 5% and 17% over the last five years. Financial modeling for the long-range planning includes 20% increases in FY26 and FY27 followed by reductions to 6% and 3% respectively in FY28 and FY29. The need for significant increases is primarily due to the projected debt service for Street Maintenance’s share of the $50 million Shops Complex project. This project will significantly affect multiple funds across the city. Although we are currently planning to proceed with it, a final decision will be made after carefully evaluating its overall impact on all affected funds. The annual cost of the Street Maintenance assessment on the typical homeowner in Bozeman is estimated to be $292.84 in FY25 and $301.62 in FY26. Assessment increases were adopted by City Commission on August 13, 2024. 227 Arterial & Collector District (A&CD) Fund The long-term plan for the Arterial & Collector District Fund continues to show inflationary level increases in assessments to meet the needs of the capital plan and growth. Assessment increases over the financial plan are estimated to be approximately 3% per year. Projected revenues are expected to exceed expenditures in fiscal years 2025 and 2027, largely due to planned debt issuances for major capital projects outlined in the six-year plan. The annual cost of the A&CD assessment on the typical homeowner in Bozeman is estimated to be $61.88 in FY25 and $63.74 in FY26. Assessment increases were adopted by City Commission on August 13, 2024. 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 3% increases annually over the next six years to complete the adopted CIP. The annual cost of the Parks & Trails District assessment on the typical homeowner is estimated to be $214.94 in FY25 and $221.39 in FY26. Assessment increases were adopted by City Commission on August 13, 2024. 228 Tree Maintenance District (Forestry) Fund The long-range plan for the Tree Maintenance District includes 3 to 12% increases annually over the next five years to complete the adopted CIP. The need for some significant increases is primarily due to the projected debt service for the Tree Maintenance Districts share of the $50 million Shops Complex project. This project will significantly affect multiple funds across the city. Although we are currently planning to proceed with it, a final decision will be made after carefully evaluating its overall impact on all affected funds. The annual cost of the assessment on the typical homeowner in Bozeman is estimated to be $31.45 in FY25 and $32.39 in FY26. Assessment increases were adopted by City Commission on August 13, 2024. Enterprise Funds Water Fund Between 2019 and 2023 rate increases were zero for single family homeowners, and 1% annually for multi-family. Together these make up approximately 50% of all water rate revenues. While rate increases were consistent with the rate study presented to City Commission in January 2019, the cost of providing services and maintaining infrastructure rose much quicker than anticipated over the time period. Cost increases for water renovations increased by approximately 11% annually over the same period. Because of this, financial models are showing the need for revenue increases to address the cost of the adopted CIP and operations over the next six years. An increase of 12.0% was included in the FY24 budget, and adopted by City Commission on August 13, 2024. Additional revenue increases of 12.0% in FY25 and 10.0% in FY26 are included in the 2025 Biennium Adopted Budget and were adopted by City Commission on August 13, 2024. A rate study is currently underway to inform future rates by customer classes and ensure proper revenue coverage and reserve amounts. The estimated annual increase to the typical single-family homeowner is approximately $57.33 in FY25 and in $53.51 FY26. 229 Wastewater Fund Between 2019 and 2023 rate increases were zero for single family homeowners, and 2% annually for multi-family. Together these make up approximately 50% of all wastewater rate revenues. While rate increases were consistent with the rate study presented to City Commission in January 2019, the cost of providing services and maintaining infrastructure rose much quicker than anticipated over the time period. Cost increases for sewer renovations increased by approximately 16% annually over the same period. Because of this, financial models are showing the need for revenue increases to address the cost of the adopted CIP and operations over the next five years. An increase of 12.0% was included in the FY24 budget, and adopted by City Commission on August 13, 2024. Initial projections included in the 2025 Recommended Budget included increases of 12.0% in FY25 and 8.0% in FY26, however additional analysis of fund balance reduced the need to 6% each year. The annual increase to the typical single family homeowner is estimated at approximately $71.22 in FY25 and in $53.17 FY26. Wastewater rate increases were adopted by City Commission on August 13, 2024. A rate study is currently underway to inform future rates by customer classes and ensure proper revenue coverage and reserve amounts. 230 Stormwater Fund The long-term plan for the Stormwater Utility includes 3% annual increases in revenues to meet the needs of the capital plan and growth. The annual cost for Stormwater services for the typical homeowner in Bozeman is estimated to be $55.99 in FY25 and $57.67 in FY26. Stormwater rate increases were adopted by City Commission on August 13, 2024. Apparent spikes in projected revenue for FY25 and FY27 are due to modeled debt issuances for significant Stormwater capital projects. 231 Page Intentionally Left Blank 232 Appendix C: Fiscal Policies 233 CITY OF BOZEMAN Fiscal Policies Per Administrative Order 2024-02 TABLE OF CONTENTS TABLE OF CONTENTS ................................................2 SECTION 1: PURPOSE ................................................3 SECTION 2: FISCAL PLANNING AND BUDGETING ......3 SECTION 3: REVENUE COLLECTION ...........................5 SECTION 4: EXPENDITURES AND PAYMENTS ............6 SECTION 5: DEBT ADMINISTRATION .........................8 SECTION 6: RESERVES AND FUND BALANCES ...........9 SECTION 7: FINANCIAL REPORTING ..........................10 City of Bozeman Policies & Procedures: Financial Policies 2 | Page SECTION 1: PURPOSE The City of Bozeman (City) is committed to responsible fiscal management through financial integrity, stewardship of public assets, long-term planning, accountability, and transparency. Adopted financial policies provide guidelines for financial decision making and set the strategic intent for financial management. These policies are central to a strategic, long-term approach to financial management. These policies are designed to guide day-to-day and long-range fiscal planning and decisions making, and to achieve the following general financial goals: 1.To deliver quality services in an affordable, efficient, and cost-effective basis. 2.Provide and maintain essential public facilities, utilities, and transportation networks. 3.Maintain an adequate financial base to sustain a sufficient level of municipal services to maintain the social well-being and physical conditions of the City. 4.Protect and enhance the City's credit rating so as to obtain the lowest cost of borrowing and also to assure taxpayers and the financial community that the City is well managed and financially sound. 5.Provide the financial stability needed to navigate through economic downturns, adjust to changes in the service requirements of the community and respond to other changes as they affect the City’s residents. 6.Adhere to the highest standards of financial management and reporting practices as set by the Government Finance Officers Association, the Governmental Accounting Standards Board and other related professional financial standards. 7.Fully comply with finance related legal mandates, laws and regulations. 8.Promote intergenerational equity for the City’s taxpayers and ratepayers by spreading the cost of new or upgraded City infrastructure over time so that generations benefitting from such infrastructure contribute to its cost. To achieve these goals, fiscal policies generally cover areas of revenue management, operating and capital budgeting, financial planning and forecasting, investment and asset management, debt management, accounting and financial reporting, reserves, and internal controls. These policies are reviewed every year as part of the budget preparation process. SECTION 2: FISCAL PLANNING AND BUDGETING 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)). The budget development process along with the annual appropriation City of Bozeman Policies & Procedures: Financial Policies 3 | Page resolution are the mechanism by which the City Commission approves the financial and operational priorities for the City. 2. The budget will be prepared in such a manner as to facilitate its understanding by community members and elected officials. The budget presents a picture of the City government operations and intentions for the year to the community of Bozeman. Presenting a budget document that is understandable 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. 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. 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. City of Bozeman Policies & Procedures: Financial Policies 4 | Page 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 ensure legal compliance with the City's budget. The budgetary level of control is established annually in the resolution to adopt the budget and is in compliance with Montana Code Annotated (MCA) and Bozeman Municipal Code (BMC). 8. A cost allocation plan will be developed and incorporated into the City budget. The cost allocation plan distributes the costs of general government, and internal service funds fairly between City departments based on the full cost of providing services. This plan is updated annually. 9. The City will maintain long-range financial forecasts of 6-30 years for all major funds and some minor funds. To promote long-term strategic thinking and demonstrate the city’s ability to adapt to changes in the economy, operating requirements and capital demands, the city will prepare balanced financial forecasts that will incorporate both revenue and expenditure estimates and reserve requirements for the city’s major operating funds. The forecasts will identify revenues and expenditures that are anticipated to be sustainable over the five-year period. The forecasts will be updated annually and provided to executive leadership during the city’s budget process. SECTION 3: 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. City of Bozeman Policies & Procedures: Financial Policies 5 | Page 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. 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. SECTION 4: 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 City of Bozeman Policies & Procedures: Financial Policies 6 | Page utilizing debt financing. This policy also reflects the view that those who benefit from a capital project should pay for the project. 3. 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. 4. A Capital Improvement Plan (CIP) will be adopted annually by December 31. 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. All capital replacement and construction projects must be adopted in compliance with BMC section 5.07. 5. All expenditures must be compliant with BMC and Adopted City Administrative Orders. Administrative orders that address expenditures include but are not limited to the City’s: Procurement Policy, Vehicle Use Policy, Vehicle/Equipment Replacement Policy, and Information Technology Use Policy. All administrative orders and internal policies are available on Laserfische in the City Commission>Administrative Orders/Internal Policies page. 6. When possible, the City will spend resources in order of most to least restricted balances. Resources will be categorized according to Generally Accepted Accounting Principles (GAAP) for state and local governments, with the following general definitions. The City will spend its resources in the following order. 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 City of Bozeman Policies & Procedures: Financial Policies 7 | Page delegates the authority. The City Commission delegates this authority to the City Manager. Unassigned - Amounts that are available for any purpose; these amounts are reported only in the General Fund. SECTION 5: DEBT ADMINISTRATION 1. The City will evaluate internal financials and market conditions when considering issuance of long-term debt. The City will ensure that projected revenues are sufficient to service the long-term debt, that market conditions are favorable enough to warrant financing, and that the issuance will not unduly affect the City’s credit rating and debt service coverage ratios. 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. 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 only if it does not exceed 10% of the General Fund budget in each of the two immediately preceding fiscal years, and debt service 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. The term of an obligation cannot exceed 20 years. 6. The City will strive to maintain or improve current credit ratings. Credit ratings ensure the City’s access to bond markets and provide assurance to the citizen’s that the City government is well managed and financially sound. City of Bozeman Policies & Procedures: Financial Policies 8 | Page SECTION 6: RESERVES AND FUND BALANCES 1. Reserves and fund balances will be properly designated into the following categories: 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 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 City of Bozeman Policies & Procedures: Financial Policies 9 | Page 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. SECTION 7: FINANCIAL REPORTING AND 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. 2. The basis of accounting for City operations is dependent on the fund type. Governmental Funds use the modified-accrual basis of accounting. This means that revenues are recognized when they are earned, measurable and available. Expenditures are recognized in the period that liabilities are due and payable. The budgetary basis is the same and is used in the General Fund, Special Revenue and Debt Service Funds, and Capital Project Funds. Proprietary, Internal Service, and Fiduciary Funds use the full accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when liabilities are incurred. However, the budgetary basis in these funds is primarily based on the modified-accrual approach. Instead of authorizing budget for depreciation of capital assets, the budget measures and appropriates cash outflows for capital acquisition and construction, which is a modified-accrual approach. In full accrual-based accounting debt proceeds are recorded as liabilities rather than a revenue (funding source). 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 City of Bozeman Policies & Procedures: Financial Policies 10 | Page 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 with 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’s asset capitalization policy is to capitalize and depreciate assets greater than $5,000 with a useful life beyond one years. Capital assets costing less than $5,000 or having a useful life of one year or less will be treated as operating expenditures. The asset capitalization threshold will be applied to individual assets rather than groups of assets unless the effect of doing so would be to eliminate a significant portion of total capital assets. City of Bozeman Policies & Procedures: Financial Policies 11 | Page 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. BIENNIAL/BIENNIUM - Referring to a two-year period. 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 expenditures for a given period (City of Bozeman’s budget is for a fiscal year July 1—June 30) and the means of financing them. Upon approval by Commission, the appropriation resolution 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. BUDGET UNIT - Budget Units divide the organization up into units with the same or similar revenue streams. The budget is formally adopted by Resolution of the City Commission at the Budget Unit level to provide appropriate flexibility in managing City budgets according to their associated funding sources. 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. 245 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 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 a 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, 246 including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. 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. 247 GOAL - A statement of broad direction, purpose or intent based on the needs of the community. 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. 248 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. 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. 249 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. 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. 250 Appendix E: City Commission Adoptions 251 Page Intentionally Left Blank 252 City of Bozeman Strategic Plan 253 Page 1 of 11 Adopted April 16, 2018 Vision and Vision Statements Vision Bozeman remains a safe, inclusive community, fostering civic engagement and creativity, with a thriving diversified economy, a strong environmental ethic, and a high quality of life as our community grows and changes. Vision Statements 1. An Engaged Community. We foster a culture of engagement and civic leadership based on innovation and best practices involving community members of all backgrounds and perspectives. 2. An Innovative Economy. We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities. 3. A Safe, Welcoming Community. We embrace a safe, healthy, welcoming and inclusive community. 4. A Well-Planned City. We consistently improve our community’s quality of life as it grows and changes, honoring our sense of place and the ‘Bozeman feel’ as we plan for a livable, affordable, more connected city. 5. A Creative, Learning Culture. We expand learning, education, arts, expression and creativity for all ages. 6. A Sustainable Environment. We cultivate a strong environmental ethic, protecting our clean air, water, open spaces and climate, and promote environmentally sustainable businesses and lifestyles. 7. A High Performance Organization. We operate as an ethical, high performance organization anticipating future needs, utilizing best practices, and striving for continuous improvement. Page 2 of 11 Adopted April 16, 2018 1. An Engaged Community We foster a culture of engagement and civic leadership based on innovation and best practices involving community members of all backgrounds and perspectives. 1.1 Outreach - Continue to strengthen and innovate in how we deliver information to the community and our partners. a) City Communication Plan and Protocol. Develop, implement, and train for, a City-wide communications protocol and outreach plan. b) Dramatically increase transparency and create access to all city documents. 1.2 Community Engagement - Broaden and deepen engagement of the community in city government, innovating methods for inviting input from the community and stakeholders. a) Enhance City Committees and Advisory Boards. Restructure or combine City boards and committees to more effectively advise the City and engage the public. b) Community Engagement Plan. Develop a plan to increase community engagement in city decision-making processes. c) Create a Standard Boards and Commission Onboarding and Education Process. Increase education for boards, advisory boards and the zoning commission. 1.3 Public Agencies Collaboration - Foster successful collaboration with other public agencies and build on these successes. a) Quarterly City/County Commission Meetings. Establish regularly scheduled meetings between the City of Bozeman and Gallatin County Commission as well as an annual meeting with the City of Belgrade. b) Enhance our relationship with Bozeman School District #7. c) Enhance our relationship with Montana State University. d) Enhance our relationship with Gallatin College. e) Enhance our relationship with State and Federal Agencies. f) Develop and support a legislative agenda. 1.4 Business and Institutional Partnerships - Explore opportunities for partnerships with key business groups and non-profit organizations. Page 3 of 11 Adopted April 16, 2018 2. An Innovative Economy We grow a diversified and innovative economy leveraging our natural amenities, skilled and creative people, and educational resources to generate economic opportunities. 2.1 Business Growth - Support retention and growth of both the traded and local business sectors while welcoming and encouraging new and existing businesses, in coordination with the Economic Development Plan. 2.2 Infrastructure Investments - Strategically invest in infrastructure as a mechanism to encourage economic development. a) Identify Commercial/Industrial Infrastructure Needs. Identify sites for new or redevelopment in areas that lack adequate infrastructure and develop new financing strategies to fund these investments. 2.3 Workforce Development - Support education and workforce development initiatives to improve the skills of our citizens. Page 4 of 11 Adopted April 16, 2018 3. A Safe, Welcoming Community We embrace a safe, healthy, welcoming and inclusive community. 3.1 Public Safety - Support high quality public safety programs, emergency preparedness, facilities, and leadership. a) Develop a Criminal Justice Facility Plan. b) Improve Emergency Preparedness Programs. Improve our community’s emergency preparedness by implementing outreach programs to include information and planning to assist residents in self preparedness. c) Implement the Fire Station Location Plan. d) Update Public Safety Technology Systems. Work with Gallatin County to fund and implement necessary new technology systems for Police and Fire Departments. e) Adopt, Fund and Implement Staffing Plan for Police. Augment staffing to improve efficiencies and police service delivery to the community consistent with the findings of staffing analysis. f) Obtain Fire Department Accreditation. Pursue Fire Department accreditation through the Center for Public Safety Excellence (CPSE) Commission on Fire Accreditation International (CFAI). 3.2 Health & Safety Action - Work with our partners to improve education, public awareness, and to coordinate programs concerning emergency services, criminal justice, and important social services. a) Strengthen Community Service Networks. Hire an employee to coordinate and strengthen existing community networks for those with mental health, substance abuse and addiction, and housing challenges. b) Perform a Community Risk Assessment. Assess the community’s risk for natural, health or human disasters in order to identify relevant needs for preparedness and recovery. c) Develop a City/County Social Service Network. Work with Gallatin County and other community partners to identify needs, develop, and appropriately fund a comprehensive strategy for addressing mental health, substance abuse and addiction, homelessness, and housing challenges. 3.3 Friendly Community - Ensure Bozeman continues to welcome diversity through policies and public awareness. a) Anticipate, celebrate, and incorporate an increasingly diverse population into the community, city advisory boards, and city staff. Page 5 of 11 Adopted April 16, 2018 b) Review the feasibility of all city vendors and suppliers to establish and enforce a gender pay equality policy. 3.4 Active Recreation – Facilitate and promote recreational opportunities and active health programs and facilities. Page 6 of 11 Adopted April 16, 2018 4. A Well-Planned City We consistently improve our community’s quality of life as it grows and changes, honoring our sense of place and the ‘Bozeman feel’ as we plan for a livable, affordable, more connected city. 4.1 Informed Conversation on Growth - Continue developing an in-depth understanding of how Bozeman is growing and changing and proactively address change in a balanced and coordinated manner. a) Adopt a New Growth Policy Based on Sustainable Growth Principles. Direct and guide sustainable growth through appropriate planning, annexation, land use, and a streamlined development review process. b) Develop and Align Infill Policies. Develop, adopt and align city policies for infill and redevelopment, economic development and public infrastructure. c) GIS Land Use & Infrastructure Development Tracking. Provide easy-to-use, accurate and informative tracking of land-use and infrastructure development trends and project-specific progress for use across the organization to inform strategic infrastructure investments. 4.2 High Quality Urban Approach - Continue to support high-quality planning, ranging from building design to neighborhood layouts, while pursuing urban approaches to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable neighborhoods. a) Manage Growth Adjacent to City (Donut). Prioritize continuing to allocate resources to address growth in the greater Bozeman area. b) Complete Unified Development Code, Phase 2. Once the updated Unified Development Code (UDC) for growth and infrastructure is adopted by City Commission, begin Phase 2 of UDC to address parking standards and affordable housing and sign code. c) Parking Management by District. Develop a comprehensive, integrated approach to parking management for the downtown, midtown, university, and other districts. Consider a range of solutions including both on-street parking and parking garages. d) Update Historic Preservation Guidelines. Update the Neighborhood Conservation Overlay District (NCOD) guidelines for historic preservation in downtownand other commercial districts and neighborhood centers. Promote continued investment in the city's inventory of historic structures relative to ongoing infill and redevelopment. 4.3 Strategic Infrastructure Choices - Prioritize long-term investment and maintenance for existing and new infrastructure. a) Develop a Comprehensive Parks Maintenance and Facilities Funding Program. b) Increase Capacity of Sewer Pipes to Accommodate Development Projects. Projects include: North Frontage Road sewer project, Front Street sewer project and Davis Lane. Page 7 of 11 Adopted April 16, 2018 c) Complete a Downtown Infrastructure Plan. Complete a plan for downtown infrastructure and prioritize improvements in the various Capital Improvement Programs (CIPs). d) Explore Sustainable Technology. Explore technologies to advance environmental sustainability. Examples include Advanced Metering Infrastructure, performance management systems also known as community “dashboards,” indoor and outdoor lighting controls, Electric Vehicle (EV) charging infrastructure, and data analytics. e) Annexation of Islands and Critical Adjacent Lands. Investigate the development of new annexation policies to address long term tax fairness for public services, locations of infrastructure, and locations for future infill and growth. f) Prepare for Metropolitan Planning Organization Designation. Begin advance planning and preparation for Bozeman’s anticipated designation as a Metropolitan Planning Organization (MPO). Coordinate with other regional governments on inter-local agreements, transportation planning functions, and required development for the City as an MPO. 4.4 Vibrant Downtown, Districts & Centers - Promote a healthy, vibrant Downtown, Midtown, and other commercial districts and neighborhood centers – including higher densities and intensification of use in these key areas. a) Update the Downtown 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. a) Enhance Non-motorized Transportation. b) Develop a Comprehensive Affordable Housing Action Plan that includes, but is not limited to: 1. Mandates the creation of affordable housing across all dwelling unit types. 2. Provides prescribed flexibility in the manner in which the mandate can be accomplished. 3. Provides a substantial, broad-based and reliable source of funding for the construction of affordable housing and for affordable housing loans. 4. Actively encourages Bozeman’s major employers to develop workforce housing programs for their employees. Page 8 of 11 Adopted April 16, 2018 5. A Creative, Learning Culture We expand learning, education, arts, expression, and creativity for all ages. 5.1 Civic and Cultural Infrastructure - Expand Bozeman’s civic and cultural “infrastructure” as the city grows. a) Library Expansion Planning. Ensure library services and facilities meet the demands of the city. 5.2 Support for Public Art - Encourage and support partnerships for public art and other arts and cultural initiatives in the city. a) Document and Create an Art Trail Map. Partner with existing organizations to create a bike and trail map that showcases public art throughout the City. b) Explore an Outdoor Music Venue. c) Create a municipal percent for arts. 5.3 Partnerships for Education and Learning – Strengthen and support partnerships for arts and culture with a wide variety of individuals, organizations, and institutions to enhance and improve education and learning in Bozeman. a) Strategic Educational and Arts Partnerships. Develop and strengthen partnerships with the School District and Montana State University to further the arts. Page 9 of 11 Adopted April 16, 2018 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. a) Watershed Management. Develop and implement a regional watershed approach to manage water quantity and quality. 6.2 Protect Local Air Quality - Protect local air quality. a) Apply for state funding for a study to monitor air quality. 6.3 Climate Action - Reduce community and municipal Greenhouse Gas (GHG) emissions, increase the supply of clean and renewable energy; foster related businesses. a) Update the Climate Action Plan. Update the Climate Action Plan and revisit greenhouse gas emissions inventories, review reduction targets, and explore a voluntary energy efficiency incentive program or stretch code to encourage new residential and commercial construction to exceed the performance standards of the currently adopted building energy code. b) Increase Solid Waste Recycling Services. Adopt incentive programs to increase the public’s utilization of city recycling and solid waste services. c) Create Solar Energy Policies. Review three-year data from NorthWestern Energy’s Community Solar Installation to inform planning and policies. d) Climate Change Adaptation and Mitigation. Increase the community’s resiliency and preparedness in response to climate change. 6.5 Parks, Trails & Open Space - Support the maintenance and expansion of an interconnected system of parks, trails and open spaces. a) Update Parks & Recreation Strategic Plan. Develop the next iteration of the Bozeman Parks & Recreation Strategic Plan (PROST). Use this plan to help inform the other City departmental planning. 6.6 Habitat – Work with partner organizations to identify at-risk, environmentally sensitive parcels contribute to water quality, wildlife corridors, and wildlife habitat. Page 10 of 11 Adopted April 16, 2018 7. A High Performance Organization We operate as an ethical high performance organization, anticipating future needs, utilizing best practices and striving for continuous improvement. 7.1 Values-Driven Culture - Promote a values-driven organizational culture that reinforces ethical behavior, exercises transparency and maintains the community’s trust. a) Develop a Cross-Functional Team Culture. Use cross-functional teams to meet Bozeman’s future opportunities and challenges. b) Create a culture of innovation. 7.2 Employee Excellence - Recruit, retain and value a diverse, well-trained, qualified and motivated team capable of delivering superior performance. Be accountable and expect accountability from others. Make demonstrated use of good judgement a part of the evaluation process for promotions. 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. b) Develop and Implement an Innovative Onboarding Program for New Employees. Work with partners to develop new tools to recruit and provide assistance to new employees so they feel welcome and prepared. c) Implement an Employee Excellence Recognition Program. d) Set Diversity Goals. Define the type of diversity the City seeks to achieve as an organization (e.g. reflecting the community-at-large) and develop a program to achieve these goals. 7.3 Best Practices, Creativity & Foresight - Utilize best practices, innovative approaches, and constantly anticipate new directions and changes relevant to the governance of the City. Be also adaptable and flexible with an outward focus on the customer and an external understanding of the issues as others may see them. a) Implement Department Staffing Plans. Compile departmental staffing plans and create a system to implement the plans to address current and future work load. b) System Integration. Identify key systems that if integrated would improve efficiency and effectiveness. c) Improve Departmental Collaboration. Identify opportunities to improve collaboration between City departments and create subgroups on communications, community interactions, long-range planning, and other matters of common concern. d) Update Departmental Plans. Proceed with updates of the next generation of departmental plans scheduled for review and update during the 5-year timeframe of this strategic plan. Page 11 of 11 Adopted April 16, 2018 e) High-level Policy Conversations. Develop a structure to foster regular, ongoing dialogue on innovative ideas and information to assist the Commission with high level policy deliberation and decisions. 7.4 Performance Metrics - Utilize 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. Learn from those outside city government and measure specific tasks for performance. a) Develop Data Analysis Tools. Develop more sophisticated analytical tools to access, monitor, measure, and analyze data to inform decision making. b) Set Performance Measures. Set performance measures that align with the Strategic Plan. c) Analyze and Collect Data from Performance Measures. Analyze and collect data from performance measures to ensure implementation of the Strategic Plan, and redesign measures as needed. d) Strategic Municipal Service Delivery Expectations. Strategically manage community and employee expectations about the City’s capacity to deliver services. 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. Prioritization of Strategic Plan: 1. Community Outreach 2. Affordable Housing 3. Planning and Land Use Initiatives 4. Annexation Analysis and Study 5. Parks Maintenance District 6. Partnerships for Education and Learning 7. Public Law and Justice Center 2024-2026 City Commission Priorities 265 About the Priorities Every two years, Bozeman City Commission meets to discuss the priorities process, a list of goals that the elected body directs city staff to complete within a two-year time frame. All goals are important projects that impact our community and are unique activities that staff perform within the designated timeframe. For the 2024-2026 priority cycle, Bozeman City Commission has chosen the following priorities: An Engaged Community o Foster and build public trust, support, and pride in local government. Safe, Welcoming Community o Develop a Tenants Right to Counsel Program. o Develop a comprehensive regional strategy on homelessness. o Implement at least 8 recommendations from the Belonging in Bozeman Plan. A Well-Planned City o Rework and restore a new Historic Preservation Policy - including trees and landmarks. o Encourage the creation of ADUs in our city through an ADU Incentive Program. o Create an Affordable Housing Preservation Policy. o Ramp up the SAFE Plan and become a Gold-level Bike Friendly Community. Sustainable Environment o Create a Bozeman Creek Resiliency Plan. Bozeman City Commission Two-Year Priorities List 2 An Engaged Community Goal: Foster and build public trust, support, and pride in local government. Safe, Welcoming Community Goal: Develop a Tenants Right to Counsel Program. Goal: Develop a comprehensive regional strategy on homelessness. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Create opportunities for neighborhood and community-wide outreach events involving City Commissioners. Utilize engagement plans around all major initiatives and ensure broad representation. Communicate achievements through FYI at Commission. 2024 2025 2026 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Research, analyze and develop program options. Funding and program option discussion at Commission pending positive legal review. 2024 2025 2026 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Collaborate with Regional Housing Coalition to develop a plan. Potential plan adoption. 2024 2025 2026 Bozeman City Commission Two-Year Priorities List 3 Goal: Implement at least 8 recommendations from the Belonging in Bozeman Plan. A Well-Planned City Goal: Rework and restore a new Historic Preservation Policy – including trees and landmarks. Goal: Encourage the creation of ADUs in our city through an ADU Incentive Program. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Create a new Belonging in Bozeman Coordinator staff position and dedicated budget. Create a full-time position to serve as ADA Coordinator. Hire a part-time Disability Community Liaison and full-time Bozeman PD Community Liaison. Recovene the Belonging in Bozeman interdepartmental committee and update its charter. Continue to convene external partners to implement Belonging in Bozeman Plan. Support partner organizations by funding transitional and emergency housing programs. Develop an equity impacts decision-making tool and train boards, staff, Commission on its use. Implement on-demand interpretation services and train frontline staff on using it. 2024 2025 2026 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Revise the existing Historic Preservation Policy and create a Local Landmark Program. Analyze City's authority in declaring trees on private property as Landmark Trees. Include options in Urban Forestry Management Plan. 2024 2025 2026 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Produce a market analysis of ADUs in Bozeman to inform decisions. Discuss and implement policy around ADU incentives. 2024 2025 2026 Bozeman City Commission Two-Year Priorities List 4 Goal: Create an Affordable Housing Preservation Policy. Goal: Ramp up the SAFE Plan and become a Gold-level Bike Friendly Community. Sustainable Environment Goal: Create a Bozeman Creek Resiliency Plan. Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Identify opportunities for affordable housing preservation (mobile home parks, etc.). Explore an affordable housing preservation policy. 2024 2025 2026 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Continue work to improve bike safety throughout the community. Establish a community-wide education program for bike/ped safety. Resubmit for Gold-level status. 2024 2025 2026 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Jan-Mar Apr-Jun Jul-Sept Oct-Dec Create a project charter. Perform an analysis of Bozeman Creek's ability to handle a 100-year flood. Engage with community and educate around successes cleaning the creek. Conduct an engineering study of creek meander, braiding and re-routing options based on the results of the 100-year flood study. Conduct a study to identify areas where public interaction with Bozeman Creek can be enhanced through future parkland development.  Explore funding opportunities for potential improvements and changes. 2024 2025 2026