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Home My WebLink About09-15-25 Public Comment - N. Nakamura - Comments about the WARD Ballot Education PresentationFrom:Natsuki Nakamura To:Bozeman Public Comment; Ellie Staley; David Fine Subject:[EXTERNAL]Comments about the WARD Ballot Education Presentation Date:Monday, September 15, 2025 3:47:14 PM Attachments:WARD Presentation - 9.15 Commentary - Natsuki Nakamura.pdf CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hello, This is in regards to the Water Adequacy (aka WARD) Ballot Education Special Presentationsscheduled this week. Please distribute in advance of their respective meetings this weekto: the Downtown Urban Renewal Board, the Downtown Business Improvement DistrictBoard, and the Historic Preservation Advisory Board. I looked at the presentation included in the agenda. I added some of my comments (attached) for consideration during your upcoming meeting. Thank you for your consideration,Natsuki Nakamura (member of the WARD working group) The WARD Initiative A citizen special interest group initiative that received enough signatures to appear on the 2025 November ballot. It seeks to change the city code to require developers who seek to use cash-in-lieu of water rights for development to provide affordable housing. Today, in Bozeman ●As of 2024, we have 1241 affordable units built, under construction or in the pipeline ●$22.84M has been spent in subsidies on those projects ●Vacancy rates have been quoted at 12%; rent increases have slowed Growth has slowed to 1.4% after an average of 3.7% from 2013-2023 Building on existing programs rooted in local engagement, sustainable planning, and housing data/analysis. Our goal is to ensure that our solutions balance affordabilitywith sustainable growth tactics that support the integrity of our existing neighborhoods. A livable Bozeman for all. Developing flexible, place-based policies that make the most of available tools. Background: Current Water Adequacy Policy ●Current Policy went into effect in 1984 ●Requires that projected water demand of new development be offset by one or more of these options: ○Reduce demand with water conservation systems and techniques ○Pay cash-in-lieu of water rights and City acquires the water rights ○Bring useable water rights to the City ●99% of development utilizes cash-in-lieu and is highly efficient due to being able to connect to existing city infrastructure What WARD Means for Future Housing Development Allows developers to pay cash-in-lieu of water rights to the city only if the development provides 33% or more affordable housing units. If the development does not include 33% affordable units, the developer is responsible for securing water rights. Alternatives if proposed ballot initiative is approved by voters 1.Access to cash-in-lieu of water rights tool becomes restricted requiring 33% of housing product be provided as affordable housing 2.Developers work to secure their own water rights,which can take anywhere from 5 to 8 years. 3.Developers can implement only on-site water efficiency or conservation measures to limit impact, with the remaining water demand coming from #1 or 2.Off-site water conservation measures option would be removed under WARD. Water Facts Current Water Supply Snapshot Hyalite Creek Watershed 40%Bozeman CreekWatershed 40% Lyman Spring 20% Facts about Water Adequacy in Bozeman, Montana ●Bozeman is not at risk of running out of water.When a developer proposes new housing,the city must ensure there is adequate water. ●In a normal water year, Bozeman only uses 43% of its current water supply, in a significant drought year, it increases to 60%. ●Bozeman proactively manages water usage through our conservation program. ●Bozeman continues to develop and implement new water conservation measures and water supplies according to our long-term water supply plan (Integrated Water Resources Plan) Development within Bozeman is Most Water Sustainable Gallons per Capita Day Water Use Bozeman = 114 GPCD Others in Montana = 163 GPCD (average) Comparable Cities = Boulder, CO: 133 GPCD Denver, CO: 140 GPCD Bend, OR: 157 GPCD Gallons per Household Day Water Use Bozeman: 188 GPHD National average: 254 GPHD Arid Western states: 314 GPHD City has the experts to efficiently develop water supply, water rights, and conservation to stay in front of development demands Housing Facts Facts About Affordable Housing in Bozeman ●Area Median Income (AMI) Definitions ●Past afforable housing projects required subsidies. The lower the AMI thresholds, the more subsidies are necessary ●Affordable housing is expensive to build due to rising costs of land, labor, materials, and lending ●A study we have done through the Affordable Housing Ordinance showed that developers could only designate 5% of their units as affordable –anything beyond that does not pencil out. ●The city is working with public, private, and nonprofit partners to make affordable housing a reality ●Policies are based on local data and community input, with the goal of balancing affordability, smart growth, and neighborhood character WARD Impact on Housing The Initiative's requirement that 33% of housing units in new developments must be affordable housing to have access to the city’s cash-in-lieu of water rights could limit housing supply because: ○Housing developers rely on a mix of market-rate units and affordable housing units to cover the cost of building. Requiring a high number of affordable housing units will make it difficult for projects to secure financing or cover construction costs. ○If developers are not coming to Bozeman to build additional housing, the demand for housing will increase, causing prices to increase. ○Developers may look to other areas to build instead, such as the County, which may increase commuting and negatively impact the environment What We Can Do Together All Hands A collective solution to a sustainable future. A true partnership to address the various pressure points of housing in the city means bringing everyone to the table. Join us as we work on the Community Housing Action Plan and Integrated Water Resources Plan to plan for our future water supply and affordable housing. The November 4 election Considerations Remember to Vote by November 4 ●Ballots will be mailed by Oct. 17 ●Ballots should be returned by mail or dropped off at an official drop- off location ●Residents can check their registration status by visiting voterportal.mt.gov Remember to Get the Facts on the WARD Initiative ●It is unlikely that this initiative will result in more affordable housing due to the high costs and 33% requirement. ●At this time, Bozeman is not at risk for running out of water, we proactively plan our water supply and emphasize water conservation to ensure current and future resident have access to water. ●There is no “silver bullet”to make housing more affordable.Another regulatory barrier creates barriers to comprehensive solutions. Questions? For more information, go to engage.bozeman.net/ward