HomeMy WebLinkAboutFY25_ACFR_FINAL_ISSUED 12.15.25Annual Comprehensive Financial Report
Year Ended June 30, 2025
City of Bozeman, Montana
Prepared by the Finance Department
Introductory Section
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I
Listing of City Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VI
Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VII
Certificate of Achievement for Excellence in Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .VIII
Financial Section
Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Management's Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Fund Financial Statements
Balance Sheet - Government Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Reconciliation of the Governmental Funds Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
Proprietary Funds
Statement of Net Posiion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Statement of Revenues, Expenses and Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
Fiduciary Funds
Statement of Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
Statement of Changes in Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101
Notes to the Schedule of Changes in Total OPEB Liability and Related Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . .101
Montana Public Employees Retirement System Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
Montana Firefighters' Retirement System Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
Montana Municipal Police Officers' Retirement System Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . .104
Notes to the Schedule of Employer's Share of Net Pension Liability and Schedule of Employer's
Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .105
Schedule of Revenue, Expenditures, and Changes in Fund Balances - Budget to Actual - Budgetary Basis
General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109
Major Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110
Notes to the Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget to Actual – Budgetary
Basis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111
Other Supplementary Information
Combining and Individual Fund Statements and Schedules
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Major DebtService Fund and Major Capital Projects Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113
City of Bozeman, Montana
Table of ContentsJune 30, 2025
Nonmajor Governmental FundsCombining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . . . . . . . . . . .125
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual . .133
Nonmajor Enterprise FundsCombining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Combining Statement of Revenues, Expenditures, and Changes in Net Position . . . . . . . . . . . . . . . . . . .146
Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147
Internal Service FundsDescription of Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .148
Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149
Combining Statement of Revenues, Expenditures, and Changes in Net Position . . . . . . . . . . . . . . . . . . .150
Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151
Custodial FundsDescription of Custodial Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152
Combining Statement of Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .153
Combining Statement of Changes in Fiduciary Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .154
Statistical Section
Introduction to Statistical Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156
Financial Trends
Components of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159
Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160
Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163
Changes in Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164
Revenue Capacity
Assessed Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167
City Taxable Market and Taxable Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168
City Taxable Market and Taxable Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .168
Tax Increment District Taxable Valuation Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169
Downtown Urban Renewal District & Comparison to City Taxable Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
Property Tax Levies for Tax Increment/Urban Renewal Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173
Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173
Principal Property Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175
Principal Property Taxpayers in Downtown Urban Renewal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176
Properties in the Bozeman Midtown Urban Renewal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177
Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District . . . . . . . . . . . . . . . . . . .178
Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179
Water Sold by Type of Customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180
Water and Sewer Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181
City of Bozeman, Montana
Table of ContentsJune 30, 2025
Debt Capacity
Ratios of General Bonded Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183
Ratios of General Bonded Debt Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184
Legal Debt Margin Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .186
Pledged Revenue Coverage – Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .187
Pledged Revenue Coverage – Business-Type Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .188
Debt Service Requirements and Coverage for Tax Increment Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189
Summary of Outstanding SIDs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .190
Revolving Fund Balance and Bond Secured Thereby . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191
Special Improvement District Assessment Billing and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .192
Demographic and Economic Information
Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .194
Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195
Operating Information
Full-Time Equivalent City Government Employees by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .196
Operating Indicators by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .198
Capital Assets Statistics by Function/Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .199
Single Audit Section
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202
Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control
Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform
Guidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204
Schedule of Expenditures of Federal Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207
Notes to Schedule of Expenditures of Federal Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .208
City of Bozeman, Montana
Table of ContentsJune 30, 2025
Introductory Section
Year Ended June 30, 2025
City of Bozeman, Montana
Letter of Transmittal
December 15, 2025
To the Honorable Mayor, City Commission, and Citizens of the City of Bozeman, Montana:
The Annual Comprehensive Financial Report of the CITY OF BOZEMAN, MONTANA for the fiscal year ended June 30, 2025, is hereby submitted. The financial statements and supporting schedules have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and meet the requirements of the standards as
prescribed by the Secretary of State Audits Division. We believe the enclosed data, as presented, is accurate in all material
respects and are reported in a manner designed to present fairly the financial position and results of operations of the
various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial
activities are included.
Management assumes full responsibility for the completeness and reliability of the information contained in this report,
based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.
Eide Bailly LLP, Certified Public Accountants, have issued an unmodified or “clean” opinion on the City’s financial statements for the fiscal year ended June 30, 2025. The independent auditors report is located at the front of the Financial Section of
this report.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of
transmittal and should be read in conjunction with it.
In addition to the financial audit, the City undertakes a single audit in conformance with the Single Audit Act Amendments
of 1996 and U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Audits. The results of this single audit, including a schedule of expenditures of federal awards, and
the independent auditor’s reports on the City’s internal controls and compliance with legal requirements, with special
emphasis on internal controls and legal requirements involving the administration of federal awards, are available in the City’s issued single audit report.
CITY OF BOZEMAN PROFILE
The City of Bozeman, home to 59,420 residents, sits in the center of Gallatin County, flanked by the Bridger Mountains and Custer Gallatin National Forest, just south of the Missouri River Headwaters. This diverse Rocky Mountain landscape creates easy access to year-round outdoor activities for Bozeman residents including hiking, mountain biking, climbing, camping,
fishing, and downhill and cross-country skiing.
The City encompasses an area of approximately 20 square miles with its next-closest municipality being the City of
Belgrade, approximately seven miles from the City’s outermost boundary. Bozeman is the county seat of Gallatin County,
with a population of approximately 125,000. Bozeman has a uniquely diverse economy, highly educated workforce, and
exceptional quality of life.
The City was incorporated in April of 1883 with a city council form of government, and later in January 1922 transitioned to
its current city manager/city commission form of government. The population of Bozeman in the 2020 census is 53,293 –
which is a total increase of 43% from April 2010 – continues Bozeman’s standing as the fourth largest city in the state.
The government provides a full range of services. These services include police and fire protection; sanitation services;
water, wastewater & storm water utilities; the construction and maintenance of transportation infrastructure; recreational
activities including construction and maintenance of parks & trails; planning and zoning; and general administrative services.
I
ECONOMIC OUTLOOK
Bozeman’s strong fundamentals continue to support a favorable economic environment for the City and its residents. Located in Gallatin County and anchored by the presence of Montana State University (MSU), Bozeman serves as a regional
center that blends recreation-based lifestyle appeal with growing knowledge- and industry-based activity.
Key Trends
•Population and income: The City has experienced sustained population growth, with the most recent data showing
a population of approximately 55,000 and an increase of about 3.6% from 2026 to 2025. During the same period
median household income rose to an estimated $79,900.
•Economic diversification: While tourism and retail historically played a large role, Bozeman’s economy is
increasingly supported by knowledge-based services, manufacturing and technology-oriented firms. The City’s
“2024 Economic & Market Update” highlights this broadening base.
•Commercial/industrial real estate: Vacancy rates in the industrial market remain low (e.g., 2.65% in H1 2023)
indicating tight supply and underlying demand (SterlingCRE Advisors).
•Residential housing market: Bozeman remains one of the fastest-growing micropolitan areas in the U.S. Rising
demand for housing over recent years, combined with the quality-of-life appeal, has driven home values upward
and created strong pressure on the local market.
•Regional context: At the state level, Montana’s economy is projected to grow at about 3.7% over the next five
years, supporting the regional tailwinds for Bozeman’s economy (IBISWorld).
•Bozeman has been ranked the #1 micropolitan area for Economic Strength by POLICOM for seven consecutive
years, reflecting long-term stability in both growth and economic quality.
Implications for the City
These trends carry implications for the City’s finances and investment planning:
•Growing population and incomes increase the potential tax base, broaden demand for City services and open
opportunities for economic development, while also bringing cost pressures on infrastructure, housing, utilities
and transportation.
•Diversification into higher value industries supports more resilient revenues and reduces reliance on lower-wage
sectors such as hospitality/retail.
•Tight industrial and commercial space demonstrates demand for development, which may translate into new
revenue streams, but also necessitates strategic planning (for land use, competitive infrastructure) to ensure
sustainable growth.
•A strong residential market supports property values and related taxes but also challenges affordability, which may
impose community and budgetary pressures for workforce housing, service delivery and equity concerns.
Outlook and Risk Considerations
The outlook for Bozeman remains broadly positive, with continued growth likely given the City’s attractiveness, educated
workforce (via MSU), and expanding industry base. At the same time, the City recognizes several risk and moderating
factors:
•Housing affordability and availability may increasingly constrain workforce recruitment and retention, and place
pressure on infrastructure and social services.
•Growth brings infrastructure, service and maintenance obligations—careful prioritization (for example in the City’s
Capital Improvement Program) is essential to maintain fiscal sustainability.
II
•External economic factors (e.g., interest rate movements, inflation, supply-chain or labor shortages) could
moderate growth, raise costs or affect revenues.
•The City’s ability to capitalize on new commercial/industrial growth depends on maintaining competitive
infrastructure, land supply, and an environment conducive to business attraction and retention.
Conclusion
The City of Bozeman is well positioned for continued long-term success. Its combination of strong quality-of-life, growing
populations and incomes, and evolving industrial base provide a solid foundation. With prudent management of
infrastructure, housing and service delivery, the City is poised to support sustainable growth while preserving the attributes
that make Bozeman special.
BUDGET DEVELOPMENT PROCESS
The annual budget serves as the City’s primary tool for allocating resources and communicating policy priorities. Each year the City Manager submits a recommended budget to the City Commission, followed by public work sessions and hearings
that allow for review, adjustment, and public comment; the budget is legally adopted through the annual appropriation
ordinance.
The City Commission adopts appropriations at the budget-unit level, which is structured by fund type. Departments funded
within the General Fund (such as Police, Fire/EMS, and Recreation) are appropriated together as a budget unit, while
Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Enterprise Funds, and Permanent Funds are adopted as
separate budget units at the fund-type level. This structure groups similar revenue sources and expenditure authority
together and ensures that total appropriations may not be exceeded for any budget unit without Commission approval.
Although internal controls are maintained at more detailed departmental and line-item levels, the ACFR presents budget-
to-actual results at a level that meets or exceeds this legal level of control. Mid-year adjustments, including the annual
August amendment following receipt of final certified taxable values, are made in accordance with state statute.
FINANCIAL POLICIES
The City of Bozeman is committed to responsible fiscal management through financial integrity, transparency, and long-
term planning. The policies aim to ensure proper controls over financial resources, deliver quality services efficiently,
maintain infrastructure, ensure financial stability, and protect the City’s credit rating. They are reviewed annually as part of the budget process.
The City avoids budgetary practices that balance current expenditures at the expense of meeting future years' expenses and
seeks to maintain a diversified and stable revenue base that is estimated in a realistic and conservative manner. One-time revenues will only be used to fund capital assets or other non-recurring expenditures. On-going expenditures are limited to
levels which can be supported by conservatively projected revenues.
Construction projects and capital purchases of $25,000 or more are included in the Capital Improvement Plan (CIP), with all capital purchases of $5,000 or more reported as capital outlays in the financial statements. Minor capital outlays of less
than $5,000 are included in the regular operating budget.
Long-term debt is limited to significant capital improvements which either cannot be financed from current revenues, or
would result in intergenerational equity for tax or rate payers. All debt obligations will be repaid within a period that does
not exceed the expected useful life of the project. The City does not use long-term debt for financing current operations
and adheres to a policy of full public disclosure with regard to the issuance of debt.
III
The City updates its long-term financial projections on an on-going basis and identifies both current and long-term funding
needs and challenges to ensure financial stability of the City into the future. The City maintains and updates long-term
financial plans on at least an annual basis for the following funds and programs: General Fund (including Police and Fire), Water, Water Reclamation, Stormwater, Solid Waste, Parks & Trails District, Forestry District, and all Streets departments. A minimum level of General Fund operating reserve equal to 2 months of annual revenues, or 16.67%, is maintained in
compliance with Bozeman Municipal Code. This reserve is committed to be used for: cash flow purposes, accrued employee
payroll benefits which are not shown as a liability, unanticipated equipment acquisition and replacement, and to enable the
city to meet unexpected operating expenditure demands or revenue shortfalls.
The City manages and accounts for its financial activity in accordance with Generally Accepted Accounting Principles
(GAAP), as set forth by the Governmental Accounting Standards Board (GASB). The City maintains its accounting records for
general governmental operations on a modified accrual basis, with revenues recorded when available and measurable, and expenditures recorded when services or goods are received, and liabilities incurred. Accounting records for proprietary fund
types and similar trust funds are maintained on an accrual basis, with all revenues recorded when earned and expenses
recorded at the time liabilities are incurred, without regard to receipt or payment of cash.
MAJOR INITIATIVES
City Commission Priorities – 2024-2026
Every two years, Bozeman City Commission meets to discuss the priorities process, a list of goals that the elected body
directs city staff to complete within a two-year time frame. All goals are important projects that impact our community and
are unique activities that staff perform within the designated timeframe. Priorities for the 2025 Biennium were discussed
at a public work session on January 26, 2024, and are based on the City’s Strategic Plan, adopted in 2018, and three major
long-range plans – the Climate Action Plan, Community Affordable Housing Plan, and the Growth Policy. Final adoption of
the priorities below occurred by resolution on August 6, 2024.
An Engaged Community
•Foster and build public trust, support, and pride in local government.
Safe, Welcoming Community
•Develop a Tenants Right to Counsel Program. •Develop a comprehensive regional strategy on homelessness.
•Implement at least 8 recommendations from the Belonging in Bozeman Plan.
A Well-Planned City
•Rework and restore a new Historic Preservation Policy - including trees and landmarks. •Encourage the creation of ADUs in our city through an ADU Incentive Program.
•Create an Affordable Housing Preservation Policy.
•Ramp up the SAFE Plan and become a Gold-level Bike Friendly Community.
•Sustainable Environment.
•Create a Bozeman Creek Resiliency Plan.
IV
Listing of City Officials
Name Position
Elected Officials
Legislative
Terence Cunningham Mayor
Joey Morrison Deputy Mayor
Emma Bode Commissioner
Douglas Fischer Commissioner
Jennifer Madgic Commissioner
Judicial
J. Colleen Herrington Municipal Judge
Karolina Tierney Municipal Judge
Officers
Executive
Chuck Winn City Manager
Jon Henderson Assistant City Manager
Michael Maas City Clerk
Department of Law
Gregory Sullivan City Attorney
Department of Finance
Melissa Hodnett, MBA Finance Director
Aaron Funk, CPA Controller
Laurae Clark Treasurer
Department of Economic Development
Brit Fontenot Director of Economic Development
Department of Information Technology
Scott McMahan Information Technology Director
Department of Human Resources
Cassandra Tozer, MBS Human Resources Director
Department of Public Safety
James Veltkamp Police Chief
Josh Waldo Fire Chief
Department of Public Service
Nicholas Ross Director of Transportation and Engineering
Department of Public Welfare
Mitch Overton Director of Parks and Recreation
Susan Gregory Director of Bozeman Public Library
Department of Planning and Community Development
Erin George Director of Community Development
City of Bozeman, Montana
Listing of City Officials
June 30, 2025
VI
Organizational Chart
City of Bozeman, Montana
Organizational Chart
June 30, 2025
VII
Certificate of Achievement for Excellence in Financial Reporting
VIII
Financial Section
Year Ended June 30, 2025
City of Bozeman, Montana
Independent Auditor’s Report
To the Honorable Mayor and City Council
City of Bozeman
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities,
the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Bozeman (the City), as of and for the year ended June 30, 2025, and the
related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Bozeman, as of June 30, 2025, and the respective changes in financial position,
and, where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
We did not audit the financial statements of the Bozeman Public Library Foundation, which represent
98%, of the net position and revenues of the discretely presented component unit as of June 30, 2025.
Those statements were audited by other auditors whose report(s) has been furnished to us, and our
opinion, insofar as it relates to the amounts included for the discretely presented component unit, is
based solely on the report(s) of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
eidebailly.com
7001 E. Belleview Ave., Ste. 700 • Denver, CO 80237-2733 • TF 866.740.4100 • T 303.770.5700 • F 303.770.7581 • EOE 1
Adoption of a New Accounting Standard
As discussed in Note I to the financial statements, the City has adopted the provisions of Governmental
Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, for the year ended
June 30, 2025. As a result of implementing the standard, there was no effect on the beginning fund
balance or net position as of July 1, 2024. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
2
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, schedule of changes in total OPEB liability and related ratios, schedules of
employer’s share of net pension liability, schedules of employer’s contributions, and schedules of
revenue, expenditures, and changes in fund balance – budget to actual – budgetary basis for the general
fund and major special revenue funds be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with GAAS, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The combining fund financial statements and
the individual budgetary comparison schedules are presented for purposes of additional analysis and are
not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with GAAS. In our opinion, the combining fund financial
statements and the individual budgetary comparison schedules are fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
3
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory section and statistical section but does not include the basic
financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do
not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 15,
2025 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City’s internal control over financial reporting and compliance.
Denver Colorado
December 15, 2025
4
Management's Discussion and Analysis
Management of the City of Bozeman (the City) offers readers of the basic financial statements this narrative overview and
analysis of the financial activities of the City for the fiscal year ended June 30, 2025. Readers are encouraged to consider the
information presented here in conjunction with additional information that is furnished in the letter of transmittal. The
focus of the information herein is on the primary government.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended as an introduction to the City’s basic financial statements. The basic financial
statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3)
notes to the basic financial statements. In addition to the basic financial statements, also provided are required and other
supplementary information.
Government-Wide Financial Statements
The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of
resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a
useful indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities reports how the City’s net position changed during the most recent year. All changes in net
position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g., uncollected taxes and earned but unused vacation and sick leave).
The governmental activities reflect the City’s basic services, including police, fire, public works, parks, and general
administration. Property taxes, charges for services, state-shared revenues, court fines, and recreation fees finance most of
these activities.
The business-type activities reflect private sector-type operations, such as water, wastewater, storm water, solid waste, and
parking, where fees for services typically cover all or most of the cost of operations, including depreciation.
The government-wide financial statements include not only the City itself (referred to as the primary government), but also
other legally separate entities for which the City is financially accountable. Financial information for most of these
component units are reported separately from the financial information presented for the primary government itself. A few
component units, although legally separate, function essentially as an agency of the City and, therefore, are included as an
integral part of the City.
Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific
activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into categories: governmental funds, proprietary funds, and
fiduciary funds that use different accounting approaches.
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
5
Governmental funds are used for the City’s basic services and are reported in the governmental fund financial statements,
which focus on how money flows into and out of those funds and the year-end balances that are available for spending.
These funds are reported using an accounting method called modified accrual accounting, which measures cash and all
other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-
term view of the City’s general government operations and the basic services it provides. Governmental fund information
helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance
the City’s operations. Because this information does not encompass the long-term focus of the government-wide
statements, additional information is provided that reconciles the governmental fund financial statements to the
government-wide statements explaining the relationship (or differences) between them.
The City maintains individual governmental funds. Information is presented separately in the governmental funds balance
sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General
Fund and major special revenue funds. Data from the other governmental funds are combined into a single aggregated
presentation. Individual fund data for these non-major governmental funds is provided in the form of combining statements
in the Other Supplementary Information section in this report. The City adopts an annual appropriated budget for the
General Fund. A budgetary comparison schedule has been provided to demonstrate compliance with these budgets for the
General Fund in accordance with U.S. GAAP.
The City maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds
are used to report the same functions presented as business-type activities in the government-wide financial statements.
The City uses enterprise funds to account for water, wastewater, stormwater, solid waste and parking services. When the
City charges customers for the services it provides, whether to outside customers or to other units of the City, these
services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are
reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component
of the proprietary funds) are the same as the business-type activities we report in the government-wide statements but
provide more detail and additional information, such as cash flows, for proprietary funds. We use internal service funds to
report activities that provide supplies and services for the City’s other programs and activities, such as the Vehicle
Maintenance Fund and Health Insurance Fund. Internal service fund activity is reported as governmental activity in the
government-wide statements since this activity, the financing of goods and services for other funds of the government, is
more governmental than business-type in nature.
The City uses fiduciary funds to account for assets held on behalf of outside parties, including other governments. When
these assets are held under the terms of a formal trust agreement, a private-purpose trust fund is used. The City is the
trustee, or fiduciary, for other funds, including the Municipal Court Fund, the Montana Arts Council Fund (Montana Ballet,
Bozeman Symphony Orchestra, and Big Sky Association for the Arts), and the CMC Bozeman Asbestos Site Remediation
Fund. It is also responsible for other assets that, because of a trust arrangement, can be used only for the trust
beneficiaries. The guidelines for the administration of these funds are contained in applicable financial agreements and/or
City ordinances. These documents contain the rules governing the receipt, expenditure, and management of the City’s
fiduciary funds. As the statements reflect, the financial activity during the year for these funds is nominal. We exclude these
activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The
City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
6
Government-wide Financial Analysis
Net Position
Net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets
and deferred outflows exceeded liabilities and deferred inflows by $740.3 million at the close of the most recent fiscal year.
Net position increased by $46.9 million this year as compared to a $57.2 million increase last year. Net position of the City
includes $123.8 million (16.7%) of restricted net position. These are resources subject to external restrictions as to how they
may be used by the City.
The majority of the net position, 80.9%, is invested in capital assets (land, buildings, infrastructure, etc.) less any related
outstanding debt used to acquire those assets. The City uses these capital assets to provide services to community
members; consequently, these assets are not available for future spending. Although the City's investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided
from other sources since the capital assets themselves cannot be used to liquidate the liabilities.
The following table presents condensed financial information on the City’s net position for the fiscal years ending June 30,
2025 and 2024.
Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024
Assets
Current and other assets $ 132,573,901 $ 122,590,942 $ 72,957,947 $ 66,564,321 $ 205,531,848 $ 189,155,263
Capital assets 350,092,757 329,123,620 357,078,201 345,864,779 707,170,958 674,988,399
Total assets 482,666,658 451,714,562 430,036,148 412,429,100 912,702,806 864,143,662
Deferred outflows of resources 8,286,698 9,359,680 1,530,602 1,966,535 9,817,300 11,326,215
Liabilities
Other liabilities 14,506,535 16,610,220 3,754,178 2,792,289 18,260,713 19,402,509
Long-term liabilities 112,769,792 109,743,904 48,684,885 50,542,101 161,454,677 160,286,005
Total liabilities 127,276,327 126,354,124 52,439,063 53,334,390 179,715,390 179,688,514
Deferred inflows of resources 1,866,617 1,716,022 648,095 710,387 2,514,712 2,426,409
Net position
Net investment in capital assets 278,556,381 259,727,878 320,698,156 308,955,362 599,254,537 568,683,240
Restricted 74,795,824 69,617,937 49,009,376 45,687,628 123,805,200 115,305,565
Unrestricted 8,458,207 3,658,281 8,772,060 5,707,868 17,230,267 9,366,149
Total net position $ 361,810,412 $ 333,004,096 $ 378,479,592 $ 360,350,858 $ 740,290,004 $ 693,354,954
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
7
The following table presents condensed financial information on the City’s changes in net position for the fiscal years
ending June 30, 2025 and 2024.
Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024
Revenues
Program revenues
Charges for services $ 40,132,587 $ 42,176,670 $ 41,804,631 $ 41,767,592 $ 81,937,218 $ 83,944,262
Operating grants and contributions 9,281,456 13,255,074 132,021 1,677,660 9,413,477 14,932,734
Capital grants and contributions 13,706,374 14,726,239 12,546,980 7,079,665 26,253,354 21,805,904
General revenues
Taxes 48,889,808 45,454,899 — — 48,889,808 45,454,899
Unrestricted intergovernmental 6,062,173 5,717,540 — — 6,062,173 5,717,540
Unrestricted investment earnings (losses) 4,671,030 4,448,723 3,102,434 3,102,361 7,773,464 7,551,084
Miscellaneous 1,991,534 3,348,246 230,874 329,371 2,222,408 3,677,617
Gain (loss) on disposal of capital assets — 393,500 21,127 — 21,127 393,500
Gain on debt forgiveness — — 300,000 — 300,000 —
Total revenues 124,734,962 129,520,891 58,138,067 53,956,649 182,873,029 183,477,540
Expenses
General government 21,708,850 21,008,788 — — 21,708,850 21,008,788
Public safety 33,434,205 29,522,433 — — 33,434,205 29,522,433
Public service 15,732,700 14,780,608 — — 15,732,700 14,780,608
Public welfare 22,296,310 20,213,912 — — 22,296,310 20,213,912
Interest and fiscal charges 2,287,076 1,963,485 — — 2,287,076 1,963,485
Water — — 15,895,081 15,227,618 15,895,081 15,227,618
Wastewater — — 13,119,968 13,276,495 13,119,968 13,276,495
Solid waste — — 7,725,295 6,835,328 7,725,295 6,835,328
Parking — — 1,522,213 1,598,141 1,522,213 1,598,141
Stormwater — — 2,216,281 1,847,848 2,216,281 1,847,848
Total expenses 95,459,141 87,489,226 40,478,838 38,785,430 135,937,979 126,274,656
Excess before transfers 29,275,821 42,031,665 17,659,229 15,171,219 46,935,050 57,202,884
Transfers (469,505) (401,119) 469,505 401,119 — —
Change in net position 28,806,316 41,630,546 18,128,734 15,572,338 46,935,050 57,202,884
Beginning net position 333,004,096 291,373,550 360,350,858 344,778,520 693,354,954 636,152,070
Ending net position $ 361,810,412 $ 333,004,096 $ 378,479,592 $ 360,350,858 $ 740,290,004 $ 693,354,954
Governmental Activities
The net position of the City’s governmental activities increased by $28.8 million or 8.7% from $333.0 million in fiscal year
2024 (FY24) to $361.8 million in fiscal year 2025 (FY25). Governmental activities revenues for the year decreased $4.8
million or 3.7%, from $129.5 million in FY24 to $124.7 million in FY25, while total expenses increased by $8.0 million or
9.1%, from $87.5 million in FY24 to $95.5 million in FY25.
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
8
Revenue by Source - Governmental Activities
32.2%
7.4%
11.0%
39.2%
4.9%
3.7%
1.6%
Charges for services
Operating grants and contributions
Capital grants and contributions
Taxes
Unrestricted intergovernmental
Unrestricted investment earnings (losses)
Miscellaneous
Property tax revenues increased by $3.4 million or 7.6% from $45.5 million in FY24 to $48.9 million in FY25. Mill values for
the City of Bozeman decreased by less than 1% from $247,166 in FY24 to $245,208 in FY25 primarily due to appeals to the
Department of Revenue correcting taxable values in the prior year. The City levied 150.72 mills in FY24 compared to 158.22
mills in FY25. The increase in total tax revenue generated is in line with the City Commission's Adopted FY25 Operating
Budget which focuses on maintaining and improving the level of service the City provides to the citizens of Bozeman.
Charges for services, which primarily includes City assessments for streets, parks, and trees, and fire and street impact fees,
decreased by $2.0 million or 4.8% from $42.2 million in FY24 to $40.1 million in FY25. Street impact fee revenue decreased
by $2.7 million from $7.7 million in FY24 to $5.1 million in FY25. Impact fee revenues can fluctuate significantly from year to
year based on the volume, size, and timing of new development. Decreases in impact fees were offset slightly by marginal
increases in City assessments. The CIty Commission adopted 3% increases to the City's four city-wide assessment districts:
street maintenance, street arterial & collector, parks & trials district, and forestry. The total increase in assessment revenue
across the districts is $645,000.
Operating grants and contributions decreased by $4.0 million or 30.0% from $13.3 million in FY24 to $9.3 in FY25. The
decrease was primarily due to a decrease in federal grant revenues and the City's share of state gas tax. In FY25 the city
utilized all remaining federal direct funding from the American Rescue Plan Act (ARPA) grant in support of governmental
operations in the amount of $174,091. In FY24, the City used $4.1 million of ARPA grant funding to support governmental
operations. The City's share of state gas tax revenue decreased from $3.5 million in FY24 to $2.0 million in FY25. Due to a
one time only change by the state, the City received two years (FY23 & FY24) of gas tax funding in FY24 compared to a
single year allocation in FY25. Decreases were partially offset by $335,964 received in FY25 from the Staffing For Adequate
Fire and Emergency Response (SAFER) federal grant, awarded to the City to fund 12 new fire fighters.
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
9
Total expenses increased by $8.0 million or 9.1% from $87.5 million in FY24 to $95.5 million in FY25 primarily as a result of
negotiated increases to wages and rising costs of providing medical benefits. Overall, general government and public service
expenditures were fairly consistent with the prior year. General government expenses increased slightly by $0.7 million or
3.3% from $21.0 million in FY24 to $21.7 million in FY25. Public service expenditures increased by $1.0 million or 6.4% from
$14.8 million in FY24 to $15.7 million in FY25. Public safety expenditures increased by $3.9 million or 13.3% from $29.5
million in FY24 to $33.4 million in FY25. In addition to negotiated wage increases, 12 new firefighter positions were added
with funding from the SAFER grant. Public welfare expenses increased by $2.1 million or 10.3% from $20.2 million in FY24 to
$22.3 million in FY25.
Interest and fiscal charges increased by approximately $0.32 million or 16.5% from $1.96 million in FY24 to $2.29 million in
FY25. The increase in interest and fiscal charges is due to the General Obligation bonds, Series 2024A and Series 2024B,
issued towards the end of FY24. Initial interest payments for these two debt issues were made in FY25 for $304,411.
With the exception of public service, revenues generated by City programs are not sufficient to cover the cost of providing
services. The City relies heavily on property tax revenues to provide governmental services.
Expenses and Program Revenues - Governmental Activities
$21,708,850
$33,434,205
$15,732,700
$22,296,310
$6,756,704 $6,232,224
$46,903,877
$3,227,612
Program Expenses Program Revenues
General Government Public Safety Public Service Public Welfare
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
10
Business-Type Activities
The net position of the City’s business-type activities increased by $18.1 million or 5.0% from $360.4 million in FY24 to
$378.5 million in FY25. Overall, the revenues provided by charges for services continued to exceed total expenses, the
details of which are discussed further below. Business-type net position cannot be used to make up for deficits reported by
governmental activities in the event any such deficits were reported. The City generally can only use the net position of
business-type activities to finance the continuing operations of the water, wastewater, solid waste, stormwater, and
parking funds.
Revenue by Source - Business-Type Activities
71.9%
0.2%
21.6%
6.3%
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
Other General Revenues
Business-type activities total revenues increased by $4.2 million or 7.7% from $54.0 million in FY24 to $58.1 million in FY25,
and expenses increased by $1.7 million or 4.4%, from $38.8 million in FY24 to $40.5 million in FY25.
Charges for services revenues remained largely flat overall, with a $37,039 increase from $41.8 million in FY24 to $41.8
million in FY25. Water service revenues increased approximately $1.9 million or 14.8%, wastewater service revenues
increased approximately $1.0 million or 8.7%, and solid waste services revenues increased by approximately $804,639 or
12.1%, compared to FY24. User rates for water increased by 12%, wastewater by 6%, and solid waste increased by 10%
during FY25. The increases in charges for services revenues were offset by decreases in water and wastewater impact fee
revenues. Water impact fee revenue decreased approximately $2.7 million or 57.9% and wastewater impact fee revenue
decreased approximately $1.5 million or 54.6%. Impact fee revenues fluctuate significantly from year to year based on the
volume, size, and timing of new development.
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
11
Capital grants and contributions increased by $5.5 million or 77.2% from $7.1 million in FY24 to $12.5 million in FY25.
Capital grants & contributions consist primarily of privately constructed water, wastewater, and stormwater infrastructure
that was contributed to the City by developers. Infrastructure contributions will vary year to year depending on the amount
of development as well as what stage in the process the development is in. In FY25, developer contributions increased by
approximately $3.0 million compared to FY24. Federal grant revenues are also included in capital grants and contributions.
In FY25, federal grant revenues increased by approximately $1.0 million compared to FY24. The increase was primarily due
to a new federal grant received by solid waste for new trucks and disposal bins to start an organics program. In FY25, grant
revenues for the organics program were approximately $1.2 million.
Water expenses increased by $0.7 million or 4.4%, from $15.2 million in FY24 to $15.9 million in FY25. The increase was
primarily due to an increase in repairs and maintenance expenses of approximately $.4 million compared to FY24. Repair
and maintenance costs can vary based on a number of factors year to year for departments like water that maintain a
significant amount of capital assets. Wastewater expenses decreased by $0.2 million from $13.3 million in FY24 to $13.1
million in FY25. The minimal decrease is primarily attributable to payroll and benefits expenses due to vacant positions.
Solid waste expenses increased by $0.9 million or 13%, from $6.8 million in FY24 to $7.7 million in FY25. The increase is
attributable to increases in payroll and benefits expenses, as well as administrative charges, including allocated overhead
and vehicle maintenance costs. In addition, solid waste expanded services to offer a new organics division including two
additional staff hired about mid-way through FY25. Parking expenses decreased by $0.1 million from $1.6 million in FY24 to
$1.5 million in FY25. The decrease in parking expenses was primarily due to a decrease in payroll and benefits expenses due
to vacant positions within the department. Stormwater expenses increased by $0.4 million or 19.9%, from $1.8 million in
FY24 to $2.2 million in FY25. The increase in stormwater expenses was primarily due to an increase in contracted services
related to capital projects.
The following graph illustrates how program revenues offset program expenses for the business-type activities.
Expenses and Program Revenues - Business-Type Activities
$15,895,081
$13,119,968
$7,725,295
$1,522,213 $2,216,281
$22,794,727
$18,069,488
$8,652,113
$1,667,584
$3,299,720
Program Expenses Program Revenues
Water Wastewater Solid Waste Parking Stormwater
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
$22,000,000
$24,000,000
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
12
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with financial related legal
requirements.
Governmental Funds
The focus of the City’s governmental funds is to provide information on current year revenues, expenditures, and balances
of spendable resources. Such information is useful in assessing the City’s near-term financing requirements. In particular,
unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end
of the fiscal year.
As of June 30, 2025, the City’s governmental funds reported combined ending fund balances of $107.1 million, an increase
of $8.9 million or 9.0% in comparison to the prior year.
The General Fund is the main operating fund of the City. The City’s total General Fund balance increased by $1.2 million or
4.7%, from $26.3 million in FY24 to $27.5 million in FY25. General Fund revenues increased by $4.9 million or 9.8%, while
expenditures increased by approximately $8.8 million compared to the prior year. The increase in revenues was primarily
due to an increase in tax revenues of $4.0 million or 13.5% from $29.5 million in FY24 to $33.5 million in FY25. While mill
values for the City of Bozeman decreased by less than 1%, the City levied 158.22 mills in FY25, an increase of 5% compared
to the prior year. The increase in expenditures was primarily due to increases in public safety expenditures and capital
outlay. Public safety expenditures increased $3.8 million or 16.73% from $22.5 million in FY24 to $26.3 million FY25.
Approximately $3.1 million of the increase in public safety expenditures were from salary and benefits contract negotiation
increases with police and fire in FY24 and FY25. In addition, fire hired 12 new firefighters in FY25. Capital outlay increased
$2.8 million or 90.1% from $3.1 million in FY24 to $5.9 million in FY25. The increase was primarily due to the city hall
remodel capital project, and replacement of patrol vehicles. Capital expenditures totaled approximately $1.5 million for the
city hall remodel and $1.1 million for new patrol vehicles. A portion of the public safety and capital outlay increases were
offset by a federal grant for the new fire fighters and the issuance of debt for the new patrol vehicles.
Significant variances (variances over 15%) between original and final budgets for the General Fund were as follows:
•The budget for Intergovernmental revenue was amended by approximately $4.1 million to account for the State of
Montana's required pension contribution.
•The budget for public safety expenditures was amended by approximately $4.2 million. The budget was increased
by approximately $3.8 million for the non-cash pension expense related to the State of Montana's required
pension contribution. The budget was also increased to include federal grant expenditures for SAFER personnel
and outfitting costs for new firefighters.
•The budget for capital outlay was increased by approximately $8.6 million. The variance is driven by unexpended
capital appropriations carried into FY25 from the prior fiscal year ($7.5m) and lease-related budget adjustments for
the lease with Montana State University for the new fire station ($1.1m). Montana law requires budgeting for the
total contract amount of a project, resulting in unspent appropriations carrying forward until the project is
complete.
•Debt service, principal, and interest and fiscal charges was increased by approximately $201,000. Budget was
increased for a right of use lease signed in FY25 that was originally budgeted as an operating expense.
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
13
Significant expenditures variances (variances over 15%) between the final budget compared to actual results were as
follows:
•General government actual expenditures were approximately $2.9 million or 16.9% under budget. The budget-to-
actual variance reflects $1.1 million in vacancy savings, driven primarily by unfilled positions in the City Manager
and City Attorney offices. In addition, $1.3 million in contracted services savings occurred during the fiscal year.
Some of these savings relate to multi-year agreements initiated in FY25, with work continuing into FY26. Montana
law requires budgeting for the total contract amount of a project, resulting in unspent appropriations carrying
forward until the project is complete.
•Capital outlay expenditures were $6.3 million or 51.8% under budget. A portion of the capital projects budgeted in
FY25 were not completed by the end of the fiscal year. These projects are ongoing and anticipated to be
completed in FY26. Montana law requires budgeting for the total contract amount of a project, resulting in
unspent appropriations carrying forward until the project is complete.
•Debt service principal expenditures were $292,771 or 193.6% over budget. The variance was due to subscription
software agreements that did not qualify as Subscription Based Information Technology Arrangements (SBITAs) in
the prior year but upon evaluation of new contracts signed in FY25 were accounted for under GASB 96 and
accounted for as debt service instead of in functional expense totals.
•Debt issuance costs were $32,117 or 82.6% under budget. The variance is due to an overestimation of debt
issuance costs in the budget. Actual issuance costs were lower than originally projected.
The Street Maintenance District Fund accounts for city-wide special assessments to pay for street maintenance
expenditures. The fund balance decreased $0.5 million or 9.9% from $4.9 million in FY24 to $4.4 million in FY25. Revenues
decreased $0.8 million or 6.1% from $12.8 million in FY24 to $12.0 million in FY25. The decrease in revenue was due to a
decrease of $1.2 million in intergovernmental revenue from the one-time payment under the now-repealed Bridge and
Road Safety Accountability Act (BaRSAA) that the City received in FY24. Total expenditures increased $1.5 million or 14.2%
from $10.9 million in FY24 to $12.4 million in FY25. The increase was primarily due to an increase in contracted services
related to street repair and maintenance projects. Budgeted expenditures exceeded actual expenditures by $2.6 million,
primarily due to delays in planned street maintenance and capital projects.
The Downtown Urban Renewal District accounts for the revenue and expenditures associated with the downtown tax
increment financing district. Fund balance increased $2.3 million or 30.6%, from $7.4 million in FY24 to $9.7 million in FY25.
The increase was primarily due to delays in planned projects for the downtown district.
The SID Debt Service Fund accounts for the accumulation of resources and payment of special assessment bond principal
and interest related to general improvement, sidewalk, and curb construction projects. Special Improvement Districts, or
SID's, are authorized under Montana Code Annotated (MCA) in order to undertake certain local improvements to benefit
specific property owners located within City limits, and to assess the cost of those improvements to benefited property
owners. Fund balance increased by $0.1 million or 13.0%, from $1.0 million in FY24 to $1.2 million in FY25. The increase
was primarily due to the creation of a new SID and the initial billing to property owners located within the district.
The Construction Capital Projects Fund accounts for the construction of capital improvement projects financed by debt and/
or special assessments other than those financed by proprietary funds. Fund balance decreased by $3.0 million or 47.4%,
from $6.4 million in FY24 to $3.3 million in FY25. The decrease is primarily due to the completion of the new Fire Station #2
and improvements to the Swim Center which were primarily funded with debt issued in prior years.
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
14
Capital Asset and Debt Administration
Capital Assets
At the end of FY25 the City had $707.2 million invested in a broad range of capital assets, including police and fire
equipment, buildings, park facilities, roads, and water and sewer lines. This amount represents a net increase (including
additions and deductions) of roughly $32.2 million or 4.8%, from $675.0 million in FY24 to $707.2 million in FY25. Major
additions and capital projects during the year include: $2.4 million for swim center repairs and improvements; $1.8 million
for the sourdough intake water infrastructure project; $1.8 million for heavy equipment purchases for streets; $1.6 million
for park projects (splash pad construction, Lindley Center and Story Mill park improvements); $1.5 million for solid waste
organics trucks; and $1.5 million for the city hall remodel.
The following table presents a summary of capital assets, net of accumulated depreciation/amortization as of June 30, 2025
and 2024. Amounts are shown in thousands.
Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024
Capital assets (net of accumulated
depreciation/amortization where applicable)
Land $ 42,517 $ 41,728 $ 2,219 $ 2,219 $ 44,735 $ 43,947
Artwork 137 43 — — 137 43
Right of way/Intangibles — — 2,762 2,762 2,762 2,762
Construction in progress 6,631 26,756 5,938 7,641 12,569 34,397
Buildings 74,328 57,997 80,147 81,603 154,475 139,600
Improvements other than buildings 743 — 4 56 747 56
Machinery and equipment 11,309 10,854 7,138 3,987 18,447 14,841
Infrastructure 208,260 188,093 258,156 246,946 466,416 435,039
Vehicles 3,850 2,600 715 651 4,564 3,251
Right-of-use lease assets - buildings 1,168 215 — — 1,168 215
Subscription-based IT assets 1,150 838 — — 1,150 838
Total capital assets $ 350,093 $ 329,124 $ 357,078 $ 345,865 $ 707,171 $ 674,989
Additional information on the City of Bozeman’s capital assets can be found in Note 6 of this report.
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
15
Long Term Liabilities
At fiscal year-end, the City had $109.5 million in bonds, notes, leases, finance purchases, and subscription IT agreements
outstanding compared to $110.2 million in FY24 – a decrease of $0.7 million or 0.6%. Of this amount, $47.1 million
comprises general obligation debt backed by the full faith and credit of the City. The slight decrease is due to annual
payments paid in FY25 exceeding new debt issued. In addition, the City met the terms of the debt agreement with the
Montana Department of Natural Resources and wastewater revenue bonds in the amount of $300,000 were forgiven.
Additional information on the City’s long-term debt can be found in Note 7 in the notes to the basic financial statements.
The following table presents a summary of long term debt as of June 30, 2025 and 2024. Amounts are shown in thousands.
Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024
General obligation bonds $ 47,130 $ 49,675 $ — $ — $ 47,130 $ 49,675
Tax increment financing bonds 8,783 9,301 — — 8,783 9,301
Special assessment bonds 2,996 3,168 — — 2,996 3,168
Water revenue bonds — — 13,198 14,593 13,198 14,593
Wastewater revenue bonds — — 21,477 23,888 21,477 23,888
Stormwater revenue bonds — — 1,020 1,109 1,020 1,109
Notes payable 1,597 1,716 — — 1,597 1,716
Unamortized premiums 4,064 4,337 — — 4,064 4,337
Financed purchases payable 4,887 1,482 2,274 — 7,161 1,482
Leases payable 1,216 259 — — 1,216 259
Subscription-based IT agreements 844 626 — — 844 626
Landfill closure/postclosure — — 1,606 1,982 1,606 1,982
Pollution remediation — — 770 537 770 537
Compensated absences 5,285 4,095 970 695 6,255 4,790
Total OPEB liability 3,892 3,972 806 823 4,698 4,795
Net pension liability 32,076 31,113 6,564 6,915 38,640 38,028
Total long-term liabilities $ 112,770 $ 109,744 $ 48,685 $ 50,542 $ 161,455 $ 160,286
The City’s general obligation bonds have been assigned ratings of “Aa3” (TOP, Series 2013 and Series 2014), “Aa1” (BPSC,
Series 2019, FS2, Series 2022, and Recreation Improvements Series 2024A and 2024B), by Moody’s Investor Services
(Moody’s).
The City’s tax increment financing bonds have been assigned ratings of “BBB” (Downtown, Series 2020), and
“AA” (Midtown, Series 2020) by Standard & Poor’s Rating Services (S&P).
In Montana, state law establishes the limit of debt a municipality can hold against its General Government operations. With
some exceptions, a municipality may incur debt up to 2.5% of the total assessed value of taxable property within the city or
town (7-7-4201, MCA). The City's total taxable value in FY25 was $17,630,717,738 resulting in a debt limit of $440,767,943 .
The City's total outstanding debt backed by the General Fund as of June 30, 2025 was $71,516,610, within the limit set by
statute.
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
16
Economic Factors and Next Year’s Budgets and Rates
Bozeman continues to experience sustained long-term growth. The city remains one of the fastest-growing communities in
the nation, driven by strong regional economic performance, continued in-migration, and the presence of Montana State
University. Population growth remains a major factor influencing service demand and budget decisions. The most recent
Bozeman Economic and Market Update (Economic & Planning Systems, 2024) estimates the city's 2023 population at
approximately 60,425, representing 45.6% of Gallatin County's population and an average annual growth rate of 3.7% since
2010. This growth continues to increase demand on public safety, transportation, utilities, and parks services, as well as
administrative support functions.
The FY26 budget reflects the realities of operating in a rapidly growing community while balancing affordability for
residents. Over several prior fiscal years, budget strategies emphasized minimizing rate and tax impacts, which resulted in
deferred maintenance and limited reinvestment in infrastructure. To stabilize operations and continue providing essential
services, the FY26 adopted budget includes targeted rate adjustments to support the city's utility systems. These
adjustment include 10% revenue increases for water services and 6% for wastewater services, along with 3% inflationary
adjustments for stormwater, the street maintenance district, the arterial/collector district, the parks and trails district, and
forestry services. Property tax impacts for a typical single-family home are projected to decrease by approximately 9% due
to legislative changes at the state level.
Cost pressures continue to influence the city's financial outlook. Personnel costs are expected to grow by 5.0% to 6.0% in
FY26, based on negotiated labor agreements and market adjustments. Inflation in construction, materials, and contracted
services, while moderating from peak levels, remains elevated compared to per-2020 trends. These conditions continue to
affect the city's capital program and the ability to maintain or expand infrastructure needed to support a growing
population.
The FY27 budget development process will rely on conservative economic assumptions and focuses on preserving core
service delivery, aligning resources with City Commission priorities, maintaining infrastructure, and managing long-term
financial stability. While growth continues to support the community's economic base, it also presents ongoing challenges
related to capacity and affordability. The city's financial planning efforts will continue to evaluate rate structures, long-term
capital needs, and operational efficiencies to ensure that Bozeman remains fiscally resilient in the face of these pressures.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general
overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning the
information provided in this report or requests for additional financial information should be addressed to:
Finance Department
P.O. Box 1230
Bozeman, MT 59771
This report is available online at https://www.bozeman.net/departments/finance
City of Bozeman, MontanaManagement's Discussion and Analysis
June 30, 2025
17
City of Bozeman, Montana
Basic Financial StatementsGovernment-Wide Financial Statements
Statement of Net Position
Primary Government
Discretely Presented
Component Unit
Governmental
Activities
Business-Type
Activities Total
Bozeman
Public Library
Foundation
Business
Improvement
District
Assets
Cash and investments $ 80,111,366 $ 28,875,270 $ 108,986,636 $ 259,843 $ 208,435
Certificates of deposit, short-term — — — 2,007,378 —
Receivables (net of allowance for uncollectibles,
as applicable)
Interest 395,786 234,633 630,419 16,891 —
Taxes 6,505,053 — 6,505,053 — —
Accounts 4,595,017 3,097,786 7,692,803 136,605 2,700
Special assessments 3,672,816 1,519 3,674,335 — 3,942
Intergovernmental 859,298 1,006,427 1,865,725 — —
Leases — 280,606 280,606 — —
Notes receivable 632,956 — 632,956 — —
Prepaid items 714,246 — 714,246 — —
Other assets 8,657 — 8,657 309,545 —
Restricted assets
Cash and investments 35,078,706 39,461,706 74,540,412 — —
Investments — — — 5,391,326 —
Capital assets, net of accumulated depreciation
amortization, where applicable
Land 42,516,713 2,218,553 44,735,266 — —
Artwork 137,333 — 137,333 10,046 —
Intangible - water rights — 2,762,142 2,762,142 — —
Construction in progress 6,630,991 5,938,383 12,569,374 — —
Buildings 74,328,499 80,146,529 154,475,028 — —
Improvements other than buildings 742,953 4,009 746,962 — —
Machinery and equipment 11,308,860 7,137,887 18,446,747 — 18,440
Infrastructure 208,259,687 258,155,989 466,415,676 — —
Vehicles 3,849,691 714,709 4,564,400 — —
Right-of-use lease assets - buildings 1,167,780 — 1,167,780 — —
Right-of-use subscription assets 1,150,250 — 1,150,250 — —
Total assets 482,666,658 430,036,148 912,702,806 8,131,634 233,517
Deferred outflows of resources
Other postemployment benefits 522,807 124,617 647,424 — —
Pension plans 7,763,891 1,405,985 9,169,876 — —
Total deferred outflows of resources 8,286,698 1,530,602 9,817,300 — —
City of Bozeman, MontanaStatement of Net Position
June 30, 2025
The Notes to Financial Statements are an integral part of this statement 19
Primary Government Discretely Presented
Component Unit
Governmental
Activities
Business-Type
Activities Total
Bozeman
Public Library
Foundation
Business
Improvement
District
Liabilities
Accounts payable 10,882,136 3,236,740 14,118,876 18,117 —
Escheat property payable 265,637 — 265,637 — —
Retainage and other payables 118,391 249,957 368,348 — —
Accrued payroll 1,429 — 1,429 2,668 4,512
Accrued interest payable 11,693 — 11,693 — —
Unearned revenue 3,227,249 267,481 3,494,730 — —
Debt
Due within one year, other than OPEB
and pensions 7,760,390 4,918,071 12,678,461 — —
Due in more than one year, other than
OPEB and pensions 69,040,966 36,396,236 105,437,202 — —
Total OPEB liability 3,891,914 806,554 4,698,468 — —
Net pension liability 32,076,522 6,564,024 38,640,546 — —
Total liabilities 127,276,327 52,439,063 179,715,390 20,785 4,512
Deferred inflows of resources
Other postemployment benefits 1,159,842 235,111 1,394,953 — —
Pension plans 706,775 145,966 852,741 — —
Lease related — 267,018 267,018 — —
Total deferred inflows of resources 1,866,617 648,095 2,514,712 — —
Net Position
Net investment in capital assets 278,556,381 320,698,156 599,254,537 — —
Restricted for
General government 369,246 — 369,246 — —
Public safety 6,548,928 — 6,548,928 — —
Public service 34,584,497 — 34,584,497 — —
Public welfare
Expendable 24,841,361 — 24,841,361 4,590,934 229,005
Nonexpendable 2,200,303 — 2,200,303 3,519,915 —
Debt service 2,905,950 — 2,905,950 — —
Capital improvements 3,345,539 49,009,376 52,354,915 — —
Unrestricted 8,458,207 8,772,060 17,230,267 — —
Total net position $ 361,810,412 $ 378,479,592 $ 740,290,004 $ 8,110,849 $ 229,005
City of Bozeman, MontanaStatement of Net Position (Continued)
June 30, 2025
The Notes to Financial Statements are an integral part of this statement 20
Statement of Activities
Program Revenues
Net (Expense) Revenue and Changes in Net
Position
Net (Expense) Revenue and
Changes in Net Position
Primary Government Component Unit
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-Type
Activities Total
Bozeman
Public Library
Foundation
Business
Improvement
DistrictFunctions/Programs Expenses
Primary governmentGovernmental activitiesGeneral government $ 21,708,850 $ 878,499 $ 5,878,205 $ — $ (14,952,146) $ — $ (14,952,146) $ — $ — Public safety 33,434,205 6,227,724 — 4,500 (27,201,981) — (27,201,981) — —
Public service 15,732,700 31,800,499 2,217,832 12,885,546 31,171,177 — 31,171,177 — — Public welfare 22,296,310 1,225,865 1,185,419 816,328 (19,068,698) — (19,068,698) — — Interest 2,287,076 — — — (2,287,076) — (2,287,076) — — Total governmental activities 95,459,141 40,132,587 9,281,456 13,706,374 (32,338,724) — (32,338,724) — —
Business-type activitiesWater 15,895,081 16,341,501 48,818 6,404,408 — 6,899,646 6,899,646 — — Waste water 13,119,968 14,184,958 36,867 3,847,663 — 4,949,520 4,949,520 — — Solid waste 7,725,295 7,459,945 29,876 1,162,292 — 926,818 926,818 — —
Parking 1,522,213 1,662,751 4,833 — — 145,371 145,371 — — Stormwater 2,216,281 2,155,476 11,627 1,132,617 — 1,083,439 1,083,439 — — Total business-type activities 40,478,838 41,804,631 132,021 12,546,980 — 14,004,794 14,004,794 — — Total primary government $ 135,937,979 $ 81,937,218 $ 9,413,477 $ 26,253,354 (32,338,724) 14,004,794 (18,333,930) — —
Component unitBozeman public library foundationPublic Welfare $ 769,056 $ — $ 1,199,151 $ — — — — 430,095 — Business improvement district
Public welfare 272,111 334,219 — — — — — — 62,108 Total component unit activities $ 1,041,167 $ 334,219 $ 1,199,151 $ — — — — 430,095 62,108 General revenuesProperty taxes 48,889,808 — 48,889,808 — —
Unrestricted intergovernmental 6,062,173 — 6,062,173 — — Unrestricted investment earnings 4,671,030 3,102,434 7,773,464 260,469 — Miscellaneous 1,991,534 230,874 2,222,408 20,222 — Gain on disposal of assets — 21,127 21,127 — —
Gain on debt forgiveness — 300,000 300,000 — —
Transfers (469,505) 469,505 — — —
Total general revenue and transfers 61,145,040 4,123,940 65,268,980 280,691 — Change in net position 28,806,316 18,128,734 46,935,050 710,786 62,108 Net position - beginning 333,004,096 360,350,858 693,354,954 7,400,063 166,897 Net position - ending $ 361,810,412 $ 378,479,592 $ 740,290,004 $ 8,110,849 $ 229,005
City of Bozeman, MontanaStatement of Activities
Year Ended June 30, 2025
The Notes to Financial Statements are an integral part of this statement 21
Governmental Fund Financial Statements
Fund Financial Statements
Major Governmental Funds
General Fund – This fund accounts for the financial operations of the City, which are not accounted for in any other fund.
Principal sources of revenue are property taxes, state and local shared revenues, licenses and permits, and charges for
services provided to other funds. Principal expenditures in the General Fund are made for police and fire protection, public
welfare, and general government.
Street Maintenance District Special Revenue Fund – This special revenue fund accounts for special assessment revenues
levied, received, and expended for street maintenance provided to specific property owners.
Downtown Urban Renewal District – In November 1995, the City adopted an Urban Renewal Plan for the downtown area.
This fund accounts for the revenue and expenditures associated with this tax increment financing district.
Special Improvement District (SID) Debt Service – Accounts for the accumulation of resources and payment of special
assessment bond principal and interest for general improvement, sidewalk, and curb construction projects.
Construction Capital Projects Fund – Accounts for the construction of general improvement projects financed by special
assessments and general obligation debt other than those financed by proprietary funds.
The Notes to Financial Statements are an integral part of this statement 22
Balance Sheet - Government Funds
General Fund
Street
Maintenance
District
Downtown
Urban Renewal
District
SID Debt
Service
Construction
Capital Projects
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investments $ 23,870,639 $ 4,879,261 $ 12,725,682 $ 2,561,302 $ 1,519,579 $ 28,690,682 $ 74,247,145
Receivables (net of allowance for
uncollectibles, as applicable)
Property taxes 3,747,027 — 541,773 — — 2,216,253 6,505,053
Accrued interest 100,664 16,581 46,054 9,159 11,226 191,810 375,494
Accounts 1,056,858 16,249 — — — 3,500,683 4,573,790
Special assessments — 162,804 — 3,481,837 — 28,175 3,672,816
Intergovernmental 684,878 20,903 — — — 153,517 859,298
Due from other funds 1,411,307 — — — — — 1,411,307
Advances to other funds — — — — — 1,392,460 1,392,460
Prepaid items 102,444 — — — — — 102,444
Notes receivable — — — — — 632,956 632,956
Restricted cash and investments 1,969,240 — — — 1,860,083 31,249,383 35,078,706
Total assets $ 32,943,057 $ 5,095,798 $ 13,313,509 $ 6,052,298 $ 3,390,888 $ 68,055,919 $ 128,851,469
City of Bozeman, MontanaBalance Sheet - Government Funds
June 30, 2025
The Notes to Financial Statements are an integral part of this statement 23
General Fund
Street
Maintenance
District
Downtown
Improvement
District
SID Debt
Service
Construction
Capital Projects
Other
Governmental
Funds
Total
Governmental
Funds
Liabilities, deferred inflows of
resources, and fund balance
Liabilities
Accounts payable $ 4,092,966 $ 575,182 $ 3,619,035 $ 15,207 $ 34,653 $ 2,294,389 $ 10,631,432
Escheat property payable 170,514 678 — — — 94,445 265,637
Accrued payroll — — — — — 1,429 1,429
Interest payable 11,693 — — — — — 11,693
Retainage payable 64,975 — — — 10,696 42,720 118,391
Advances from other funds — — — 1,392,460 — — 1,392,460
Due to other funds — — — — — 1,411,307 1,411,307
Unearned revenue 31,500 77,224 — — — 3,118,525 3,227,249
Total liabilities 4,371,648 653,084 3,619,035 1,407,667 45,349 6,962,815 17,059,598
Deferred inflows of resources
Unavailable revenue - property
taxes 121,378 — — — — 162,090 283,468
Unavailable revenue - special
assessments — — — 3,471,670 — — 3,471,670
Unavailable revenue - court fines 926,341 — — — — — 926,341
Total deferred inflows of
resources 1,047,719 — — 3,471,670 — 162,090 4,681,479
Fund balance
Nonspendable 102,444 — — — — 2,200,303 2,302,747
Restricted 1,969,240 4,442,714 9,694,474 1,172,961 3,345,539 53,808,867 74,433,795
Committed 4,334,720 — — — — 3,984,969 8,319,689
Assigned 7,809,989 — — — — 1,641,686 9,451,675
Unassigned 13,307,297 — — — — (704,811) 12,602,486
Total fund balance 27,523,690 4,442,714 9,694,474 1,172,961 3,345,539 60,931,014 107,110,392
Total liabilities, deferred
inflows of resources, and
fund balances $ 32,943,057 $ 5,095,798 $ 13,313,509 $ 6,052,298 $ 3,390,888 $ 68,055,919 $ 128,851,469
City of Bozeman, MontanaBalance Sheet - Government Funds
June 30, 2025
The Notes to Financial Statements are an integral part of this statement 24
Reconciliation of the Governmental Funds Balance Sheet
Total Fund Balances - Governmental Funds $ 107,110,392
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets, net of depreciation, used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 350,092,757
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The assets and liabilities of the internal service funds
are included in the governmental activities in the statement of net position. 6,331,842
Other assets are not available to pay for current-period expenditures and,
therefore, are either not recognized as a receivable or are unearned in the funds. 4,681,479
Impact fee credits do not affect current financial resources and, therefore, are not
reported in the governmental funds. (56,347)
Deferred outflows and inflows of resources related to pensions and other
postemployment benefits are applicable to future periods and, therefore, are not
reported in the funds. 6,420,081
Long-term liabilities are not due and payable in the current period and, therefore,
are not reported in the funds. (112,769,792)
Net Position of Governmental Activities $ 361,810,412
City of Bozeman, MontanaReconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2025
The Notes to Financial Statements are an integral part of this statement 25
Statement of Revenues, Expenditures, and Changes in Fund Balances
General Fund
Street
Maintenance
District
Downtown
Urban
Renewal
District
SID Debt
Service
Construction
Capital
Projects
Other
Governmental
Funds
Total
Governmental
Funds
Revenues
Taxes $ 33,520,111 $ — $ 2,967,130 $ — $ — $ 12,402,368 $ 48,889,609
Special assessments — 26,397 — 463,120 — 283,770 773,287
Licenses and permits 481,478 82,326 — — — 4,376,649 4,940,453
Intergovernmental 11,616,862 2,287,297 103,225 — — 1,273,354 15,280,738
Charges for services 7,084,522 9,351,164 — — — 16,710,718 33,146,404
Fines and forfeitures 991,314 — — — — 41,249 1,032,563
Interest on investments 695,312 151,394 318,761 90,867 165,694 1,843,314 3,265,342
Change in fair value of investments 314,752 64,097 125,190 28,400 60,600 627,741 1,220,780
Interest on loans receivable — — — — — 50,155 50,155
Miscellaneous 355,802 22,129 1,200 — 383,661 705,351 1,468,143
Total revenues 55,060,153 11,984,804 3,515,506 582,387 609,955 38,314,669 110,067,474
Expenditures
Current
General government 14,201,262 — — — — 2,980,206 17,181,468
Public safety 26,250,695 — — — 27,203 4,235,525 30,513,423
Public works — 8,720,524 — — 129,823 1,219,417 10,069,764
Public welfare 8,161,817 — 909,850 — 5,537 10,170,727 19,247,931
Other 1,886,721 — — — — 200,001 2,086,722
Capital outlay 5,868,039 3,392,322 — — 4,420,029 6,173,605 19,853,995
Debt service
Principal 443,971 244,382 — 171,541 — 3,159,745 4,019,639
Interest and fiscal charges 284,978 78,083 — 122,958 — 2,063,606 2,549,625
Total expenditures 57,097,483 12,435,311 909,850 294,499 4,582,592 30,202,832 105,522,567
City of Bozeman, Montana
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2025
The Notes to Financial Statements are an integral part of this statement 26
General Fund
Street
Maintenance
District
Downtown
Improvement
District
SID Debt
Service
Construction
Capital
Projects
Other
Governmental
Funds
Total
Governmental
Funds
Excess (deficiency) of revenues
over (under) expenditures (2,037,330) (450,507) 2,605,656 287,888 (3,972,637) 8,111,837 4,544,907
Other financing sources (uses)
Transfers in 4,049,268 — — 13,782 653,427 5,516,954 10,233,431
Transfers out (3,148,472) (37,649) (335,407) (167,064) (2,636,869) (4,935,386) (11,260,847)
Issuance of long-term debt 2,391,049 — — — 2,964,707 — 5,355,756
Debt issuance cost (6,783) — — — (26,015) — (32,798)
Sale of capital assets — 1,380 — — — 16,107 17,487
Total other financing
sources (uses) 3,285,062 (36,269) (335,407) (153,282) 955,250 597,675 4,313,029
Net change in fund balance 1,247,732 (486,776) 2,270,249 134,606 (3,017,387) 8,709,512 8,857,936
Fund balance, beginning of year 26,275,958 4,929,490 7,424,225 1,038,355 6,362,926 52,221,502 98,252,456
Fund balance, end of year $ 27,523,690 $ 4,442,714 $ 9,694,474 $ 1,172,961 $ 3,345,539 $ 60,931,014 $ 107,110,392
City of Bozeman, Montana
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2025
The Notes to Financial Statements are an integral part of this statement 27
Governmental Funds to the Statement of Activities
Net Change in Fund Balances - Total Governmental Funds $ 8,857,936
Amounts reported for governmental activities in the statement of activities are
different because:
Capital outlays are reported as expenditures in governmental funds. However, in
the statement of activities the cost of capital assets is allocated over their
estimated useful lives as depreciation/amortization expense. When capital assets
are disposed, the net effect is to reduce net position. 21,186,429
Revenues in the statement of activities that do not provide current financial
resources are not reported in the funds. 189,824
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The net revenue (expense) of the internal service
funds is reported in governmental activities. 3,042,117
In the statement of activities compensated absences are measured by the
amounts earned during the year. In the governmental funds, however,
expenditures for these items are measured by the amount of financial resources
used. (1,131,247)
In the statement of activities OPEB is measured by the amounts earned during the
year. In the governmental funds, however, expenditures for these items are
measured by the amount of financial resources used. (266,438)
In the statement of activities the cost of pension benefits earned net of employee
contributions is reported as pension expense. In the governmental funds,
however, the contributions are reported as expense. (2,009,744)
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of principal of long-term debt
consumes the financial resources of governmental funds. Neither transaction,
however, has any current effect on net position. Also, governmental funds report
the effect of premiums when debt is first issued, whereas these amounts are
deferred and amortized in the statement of activities. Thsi amount is the net
effect of these differences in the treatment of long-term debt and related items. (1,062,561)
Change in Net Position of Governmental Activities $ 28,806,316
City of Bozeman, MontanaReconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Year Ended June 30, 2025
The Notes to Financial Statements are an integral part of this statement 28
Proprietary Fund Financial Statements
Proprietary Funds
Proprietary funds are used to account for activities that receive significant support from fees and charges. The City has two
types of proprietary funds: enterprise funds and internal service funds.
Major Enterprise Funds
Water Fund – This fund accounts for the City's water utility operations and to collect and administer water impact fees.
Waste Water Fund – This fund accounts for the City's sewer utility operations and to collect and administer waste water
impact fees.
Solid Waste Fund – This fund accounts for the City’s garbage collection service and recycling operations.
Internal Service Funds
Internal Service Funds are used to account for goods and services provided by one department to other departments of the
City on a cost-reimbursement basis. The City’s internal service funds are aggregated and presented in one column in the
proprietary fund financial statements.
The Notes to Financial Statements are an integral part of this statement 29
Statement of Net Posiion
Business-type Activities Governmental Activities
Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds
Assets
Current assets
Cash and investments $ 16,138,464 $ 9,215,367 $ 239,035 $ 3,282,404 $ 28,875,270 $ 5,864,221
Receivables (net of allowance for uncollectibles, as
applicable):
Interest 160,739 59,726 — 14,168 234,633 20,292
Accounts 993,199 1,273,477 635,018 196,092 3,097,786 21,227
Special assessments 321 85 627 486 1,519 —
Intergovernmental 698,652 — 307,775 — 1,006,427 —
Leases 280,606 — — — 280,606 —
Prepaid items — — — — — 611,802
Other current assets — — — — — 8,657
Total current assets 18,271,981 10,548,655 1,182,455 3,493,150 33,496,241 6,526,199
Noncurrent assets
Restricted assets
Cash and investments 30,560,155 8,032,165 — 869,386 39,461,706 —
Capital assets
Land 573,847 1,112,597 228,673 303,436 2,218,553 —
Intangible water rights 2,762,142 — — — 2,762,142 —
Construction in progress 2,346,138 2,914,909 — 677,336 5,938,383 —
Buildings 40,717,384 63,333,192 1,676,074 11,995,292 117,721,942 1,546,120
Improvements other than buildings 13,646,910 14,745,401 2,155,300 — 30,547,611 —
Machinery and equipment 2,606,184 4,954,146 10,224,824 1,951,191 19,736,345 724,718
Vehicles 989,829 723,533 548,499 466,429 2,728,290 239,125
Infrastructure 237,731,878 175,774,255 118,081 10,895,730 424,519,944 32,769
Subscription-based IT assets — — — — — 70,767
Right-of-use lease assets - buildings — — — — — 126,936
Less accumulated depreciation/amortization (129,331,732) (101,432,126) (9,752,020) (8,579,131) (249,095,009) (1,616,250)
Total capital assets, net of accumulated
depreciation/amortization 172,042,580 162,125,907 5,199,431 17,710,283 357,078,201 1,124,185
Total noncurrent assets 202,602,735 170,158,072 5,199,431 18,579,669 396,539,907 1,124,185
Total assets 220,874,716 180,706,727 6,381,886 22,072,819 430,036,148 7,650,384
City of Bozeman, MontanaStatement of Net Position
Proprietary Funds
June 30, 2025
The Notes to Financial Statements are an integral part of this statement 30
Business-type Activities Governmental Activities
Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds
Deferred outflows of resources
Other postemployment benefits 35,141 36,441 33,707 19,328 124,617 37,123
Pension plans 519,895 392,622 318,171 175,297 1,405,985 669,771
Total deferred outflows of resources 555,036 429,063 351,878 194,625 1,530,602 706,894
Liabilities
Current liabilities
Accounts payable 1,951,929 613,274 493,252 178,285 3,236,740 194,357
Retainage payable 178,782 30,158 41,017 — 249,957 —
Current portion of long-term debt 1,821,934 2,343,569 493,913 258,655 4,918,071 323,950
Unearned revenue — 267,481 — — 267,481 —
Total current liabilities 3,952,645 3,254,482 1,028,182 436,940 8,672,249 518,307
Noncurrent liabilities
Landfill closure costs — — 1,605,546 — 1,605,546 —
Solvent site remediation liability — 770,252 — — 770,252 —
Long-term debt, net of current portion
Bonds payable 11,763,000 19,306,000 — 930,000 31,999,000 —
Finance purchases payable — — 1,703,435 308,781 2,012,216 76,316
Compensated absences 3,715 1,656 2,498 1,353 9,222 179,287
Total OPEB liability 240,692 257,734 209,026 99,102 806,554 281,374
Net pension liability 2,427,196 1,833,007 1,485,424 818,397 6,564,024 3,126,911
Total noncurrent liabilities 14,434,603 22,168,649 5,005,929 2,157,633 43,766,814 3,663,888
Total liabilities 18,387,248 25,423,131 6,034,111 2,594,573 52,439,063 4,182,195
City of Bozeman, MontanaStatement of Net Position
Proprietary Funds
June 30, 2025
The Notes to Financial Statements are an integral part of this statement 31
Business-type Activities Governmental Activities
Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds
Deferred inflows of resources
Other postemployment benefits 73,397 72,193 59,112 30,409 235,111 87,284
Pension plans 53,974 40,761 33,032 18,199 145,966 69,534
Lease related 267,018 — — — 267,018 —
Total deferred inflows resources 394,389 112,954 92,144 48,608 648,095 156,818
Net position
Net investment in capital assets 158,276,596 142,891,006 3,121,799 16,408,755 320,698,156 949,937
Restricted for:
Drought reserve 1,319,938 — — — 1,319,938 —
Water rights 10,004,016 — — — 10,004,016 —
Impact capital projects 26,333,602 9,905,889 — — 36,239,491 —
Infrastructure capital projects 634,833 — — — 634,833 —
Parking capital projects — — — 811,098 811,098 —
Unrestricted 6,079,130 2,802,810 (2,514,290) 2,404,410 8,772,060 3,068,328
Total net position $ 202,648,115 $ 155,599,705 $ 607,509 $ 19,624,263 $ 378,479,592 $ 4,018,265
City of Bozeman, MontanaStatement of Net Position
Proprietary Funds
June 30, 2025
The Notes to Financial Statements are an integral part of this statement 32
Statement of Revenues, Expenses and Changes in Net Position
Business-type Activities Governmental Activities
Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds
Operating revenues
Charges for services $ 14,379,055 $ 12,905,621 $ 7,459,945 $ 3,818,227 $ 38,562,848 $ 16,564,540
Operating expenses
Salaries and benefits 3,950,823 2,801,298 2,503,110 1,278,437 10,533,668 4,762,501
Materials and supplies 1,502,994 588,154 706,717 67,547 2,865,412 688,455
Repairs and maintenance 573,561 406,123 252,884 19,525 1,252,093 12,845
Utilities 289,991 752,782 782,183 49,287 1,874,243 35,618
Administrative charges 3,755,962 2,671,541 1,826,084 729,527 8,983,114 1,069,729
Other services 1,942,027 1,848,852 769,138 930,855 5,490,872 8,039,325
Depreciation/amortization 3,478,585 3,432,703 645,843 633,188 8,190,319 238,120
Change in estimated closure and post-closure
care costs — — 222,337 — 222,337 —
Total operating expenses 15,493,943 12,501,453 7,708,296 3,708,366 39,412,058 14,846,593
Operating income (loss) (1,114,888) 404,168 (248,351) 109,861 (849,210) 1,717,947
City of Bozeman, MontanaStatement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
Year Ended June 30, 2025
The Notes to Financial Statements are an integral part of this statement 33
Business-type Activities Governmental Activities
Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds
Nonoperating revenues (expenses)
Gain (loss) on disposal of assets 21,127 — — — 21,127 6,079
Interest income 1,630,228 605,521 — 137,401 2,373,150 156,728
Change in fair value of investments 498,936 180,054 — 50,294 729,284 28,180
Interest expense (401,138) (618,515) — (27,175) (1,046,828) (11,010)
Intergovernmental revenues 1,272,202 81,263 1,192,168 16,460 2,562,093 62,891
Impact fees 1,962,446 1,279,337 — — 3,241,783 —
Lease income 45,079 — — — 45,079 —
Gain on debt forgiveness — 300,000 — — 300,000 —
Debt issuance costs — — (16,999) (2,953) (19,952) —
Miscellaneous revenue 120,514 13,910 40,254 11,117 185,795 523,391
Total nonoperating revenues (expenses) 5,149,394 1,841,570 1,215,423 185,144 8,391,531 766,259
Income (loss) before contributions and transfers 4,034,506 2,245,738 967,072 295,005 7,542,321 2,484,206
Transfers in 180,730 — 493,443 — 674,173 587,512
Transfers out (83,871) (30,056) (29,652) (61,089) (204,668) (29,601)
Capital contributions 5,181,024 3,803,267 — 1,132,617 10,116,908 —
Change in net position 9,312,389 6,018,949 1,430,863 1,366,533 18,128,734 3,042,117
Total net position (deficit), beginning of year 193,335,726 149,580,756 (823,354) 18,257,730 360,350,858 976,148
Total net position, end of year $ 202,648,115 $ 155,599,705 $ 607,509 $ 19,624,263 $ 378,479,592 $ 4,018,265
City of Bozeman, MontanaStatement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
Year Ended June 30, 2025
The Notes to Financial Statements are an integral part of this statement 34
Statement of Cash Flows Business-type Activities Governmental Activities
Water Wastewater Solid Waste Funds Total Internal Service Funds
Operating activities
Receipts from customers and users $ 14,276,314 $ 12,867,567 $ 7,451,555 $ 3,810,206 $ 38,405,642 $ 16,570,056
Other operating cash receipts 120,514 13,910 40,254 11,117 185,795 523,391
Payments to suppliers (3,149,459) (3,294,523) (2,896,301) (999,304) (10,339,587) (9,004,926)
Payments to and on behalf of employees (3,789,555) (2,787,754) (2,391,274) (1,254,743) (10,223,326) (4,873,349)
Payments to internal service funds and administration (3,755,962) (2,671,541) (1,826,084) (729,527) (8,983,114) (1,069,729)
Net cash from operating activities 3,701,852 4,127,659 378,150 837,749 9,045,410 2,145,443
Noncapital financing activities
Transfers to other funds (83,871) (30,056) (29,652) (61,089) (204,668) (29,601)
Transfers from other funds 180,730 — 493,443 — 674,173 587,512
Intergovernmental operating grants 781,217 106,985 884,393 16,460 1,789,055 62,891
Impact fees 1,962,446 1,279,337 — — 3,241,783 —
Net cash from (used for) noncapital financing activities 2,840,522 1,356,266 1,348,184 (44,629) 5,500,343 620,802
Capital and related financing activities
Proceeds from sale of assets 21,127 — — — 21,127 —
Payments on advances to other funds — — (546,450) — (546,450) (4,044)
Lease payments received 43,006 — — — 43,006 —
Acquisition of capital assets (3,494,322) (1,832,770) (2,861,079) (1,098,663) (9,286,834) (14,750)
Issuance of debt 1,937,229 336,491 2,273,720 —
Debt issuance costs — — (16,999) (2,953) (19,952) —
Debt service
Principal (1,395,000) (2,111,000) — (89,000) (3,595,000) (109,678)
Interest (401,138) (618,515) — (27,175) (1,046,828) (12,113)
Net cash used for capital
and related financing activities (5,226,327) (4,562,285) (1,487,299) (881,300) (12,157,211) (140,585)
Investing activity
Interest and dividends from investments 2,131,729 785,129 — 189,578 3,106,436 176,102
Change in cash and investments 3,447,776 1,706,769 239,035 101,398 5,494,978 2,801,762
Cash and investments, beginning of year 43,250,843 15,540,763 — 4,050,392 62,841,998 3,062,459
Cash and investments, end of year $ 46,698,619 $ 17,247,532 $ 239,035 $ 4,151,790 $ 68,336,976 $ 5,864,221
Cash and investments consists of:
Cash and investments $ 16,138,464 $ 9,215,367 $ 239,035 $ 3,282,404 $ 28,875,270 $ 5,864,221
Restricted cash and investments 30,560,155 8,032,165 — 869,386 39,461,706 —
Totals $ 46,698,619 $ 17,247,532 $ 239,035 $ 4,151,790 $ 68,336,976 $ 5,864,221
City of Bozeman, MontanaStatement of Cash Flows
Proprietary Funds
Year Ended June 30, 2025
The Notes to Financial Statements are an integral part of this statement 35
Business-type Activities Governmental Activities
Water Wastewater Solid Waste Nonmajor Funds Total Internal Service Funds
Reconciliation of operating gain (loss) toNet cash from operating activities
Operating gain (loss)$ (1,114,888) $ 404,168 $ (248,351) $ 109,861 (849,210) $ 1,717,947
Adjustments to reconcile operating gain(loss) to net cash from operating activities
Depreciation/amortization 3,478,585 3,432,703 645,843 633,188 8,190,319 238,120
Landfill closure/postclosure costs — — 222,337 — 222,337 —
Other operating cash receipts 120,514 13,910 40,254 11,117 185,795 523,391
Changes in assets and liabilities
Accounts receivable (104,160) (38,127) (8,409) (8,234) (158,930) 5,516
Special assessments receivable 1,419 73 19 213 1,724 —
Prepaid expenses — — — — — (45,584)
Pension related deferred outflows 145,036 130,164 84,087 68,551 427,838 266,090
OPEB related deferred outflows 2,770 2,112 2,063 1,150 8,095 3,107
Vouchers payable 1,043,009 67,806 209,880 67,910 1,388,605 (183,099)
Retainage payable 116,105 — 3,935 — 120,040 —
Payroll payable (1,879) 1,792 (218) — (305) —
Compensated absences 113,337 33,933 65,279 62,396 274,945 58,611
Landfill closure accruals — — (599,194) — (599,194) —
Solvent site remediation liability — 233,583 — — 233,583 —
Net pension liability (80,180) (138,356) (31,445) (101,125) (351,106) (402,109)
Total OPEB liability (5,647) (4,305) (4,206) (2,344) (16,502) (6,333)
Pension related deferred inflows (35,458) (29,553) (21,071) (14,598) (100,680) (56,337)
OPEB related deferred inflows 23,289 17,757 17,347 9,664 68,057 26,123
Net cash from
operating activities $ 3,701,852 $ 4,127,659 $ 378,150 $ 837,749 $ 9,045,410 $ 2,145,443
Supplemental schedule of noncashInvesting and financing activitiesAcquisition of capital assets through
capital contributions $ 5,181,024 $ 3,803,267 $ — $ 1,132,617 $ 10,116,908 $ —
Acquisition of capital assets on account 1,466,583 122,812 140,403 3,325 1,733,123 3,455
Gain on debt forgiveness — 300,000 — — 300,000 —
Increase (decrease) in fair value of investments 498,936 180,054 — 50,294 729,284 28,180
On-behalf pension contribution and expense 48,818 36,867 29,876 16,460 132,021 62,891
Total noncash transactions $ 7,195,361 $ 4,443,000 $ 170,279 $ 1,202,696 $ 13,011,336 $ 94,526
City of Bozeman, MontanaStatement of Cash Flows
Proprietary Funds
Year Ended June 30, 2025
The Notes to Financial Statements are an integral part of this statement 36
Fiduciary Fund Financial Statements
Fiduciary FundsCustodial Funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other
governments. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (or
other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. The following custodial funds
are included in the Fiduciary Fund financial statements:
Tourism Business Improvement District – Accounts for amounts collected from hotels on behalf of the District, a special-
purpose government, whose purpose is to enhance the economic vitality of Bozeman by promoting tourism through sales
and marketing strategies.
Municipal Court – Accounts for monies held for appearance bonds and restitution to criminal arrests and reimbursement
for damage caused.
The custodial funds are aggregated and presented in one column in the fiduciary funds financial statements.
The Notes to Financial Statements are an integral part of this statement 37
Statement of Fiduciary Net Position
Custodial
Funds
Assets
Cash and investments $ 536,670
Receivables:
Accounts 2,892
Total assets 539,562
Liabilities
Accounts payable 491,833
Net Position
Restricted for
Other organization or individuals 47,729
Total liabilities and net position $ 539,562
City of Bozeman, MontanaStatement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
The Notes to Financial Statements are an integral part of this statement 38
Statement of Changes in Fiduciary Net Position
Custodial
Funds
Additions
Miscellaneous $ —
Deductions
Miscellaneous 20
Change in net position (20)
Net position, beginning 47,749
Net position, ending $ 47,729
City of Bozeman, MontanaStatement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended June 30, 2025
The Notes to Financial Statements are an integral part of this statement 39
Notes to Financial Statements
Note 1 - Summary of Significant Accounting Policies
The City of Bozeman of Gallatin County, Montana (the City) was incorporated as a municipal corporation in 1883. The
present City Code of Ordinances was adopted October 3, 2011. Under the charter, the City is governed by a mayor and four
commission members who comprise the City Commission. The day-to-day affairs of the City are conducted under the
supervision of the City Manager, who is appointed by and serves at the pleasure of a majority of the City Commission.
The accompanying financial statements of the City have been prepared in conformity with generally accepted accounting
principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB), the accepted standard-setting
body for establishing governmental accounting and financial reporting principles.
The accompanying financial statements present the financial position of the City and the various funds and fund types, the
results of operations of the City and the various funds and fund types, and the cash flows of the proprietary funds. The
financial statements are presented as of June 30, 2025, and for the year then ended. The more significant accounting
policies of the City are described below.
The following is a summary of the City’s significant accounting policies:
Reporting Entity
The City has considered all potential component units for which it is financially accountable and other organizations for
which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial
statements to be misleading or incomplete. The Governmental Accounting Standards Board has set forth criteria to be
considered in determining financial accountability in Statement 14, The Financial Reporting Entity, and Statement 61, The
Financial Reporting Entity: Omnibus – an Amendment of GASB Statements No. 14 and No. 34. These criteria include
appointing a voting majority of an organization's governing body and (1) the ability of the City to impose its will on that
organization or (2) the potential for the organization to provide specific financial benefits to, or impose specific financial
burdens on the City.
Determining whether certain organizations are component units, organizations that are legally separate, tax-exempt
entities are required to be reported as a discretely presented component unit if the following criteria is met.
•The economic resources received or held by the separate organization are entirely or almost entirely for the direct
benefit of the City.
•The City is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held
by the separate organization.
•The economic resources received or held by the separate organization that the City is entitled to or otherwise has
the ability to access are significant.
Discretely Presented Component Units – The Bozeman Public Library Foundation (the Foundation) is a nonprofit agency
organized to support the Bozeman Public Library through raising, receiving, administering, and disbursing funds, grants,
bequests, and gifts for the sole benefit of the library. The resources were deemed to be significant and therefore, the
Foundation is included as a discretely presented component unit under GASB Statement 39.
The Foundation was incorporated with the State of Montana on August 29, 1983, and subsequently amended on December
15, 1989. The governing board consists of an elected president and elected members of the board of directors. Separately
issued internal financial statements of the Foundation may be obtained by contacting the Foundation’s offices at 626 East
Main Street, Bozeman, MT 59715. The fiscal year end of the Foundation is December 31.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
40
Discretely Presented Component Unit - The Bozeman Downtown Business Improvement District (BDBID) was created in
2000 per Resolution 5140 pursuant to section 7-12-1141, Montana Coded Annotated (MCA). Upon re-evaluation the city
determined the BDBID should be reported as a discretly presented component unit. The BDBID qualifies as a separate legal
entity of which the City Commission appoints a voting majority of the BDBID Board and is responsible for approving and
modifying the budget. Based on these factors and because the BDBID governing body is not substantively the same as the
City Commission the BDBID is included as a discretely presented component unit under GASB Statement 61. The BDBID is
funded by the special assessments from property owners within the district to support services and projects that help
beautify and maintain downtown Bozeman. The governing board consists of at least five, but no more than seven
appointed members who are owners of real property subject to the jurisdiction of the BDBID or a formally appointed
representative of a real property owner. Financial statements of the BDBID may be obtained by contacting the Downtown
Bozeman Partnership's offices at 222 East Main Street, Suite 302, Bozeman, MT 59715. The fiscal year end of the BDBID is
December 31.
Basis of Accounting/Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities,
fund equity, revenues and expenditures, or expenses, as appropriate. Governmental resources are allocated to and
accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending
activities are controlled. Certain amounts presented in the prior year data in these notes have been reclassified to be
consistent with the current year’s presentation.
Government-Wide Financial Statements
The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) present
information of all the non-fiduciary activities of the primary government and its component units. These statements
present summaries of Governmental and Business-Type Activities for the City accompanied by a total column.
These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting.
Accordingly, all of the City’s assets and liabilities, including capital assets and long-term liabilities, are included in the
accompanying Statement of Net Position.
The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are
recognized in the period in which they are earned while expenses are recognized in the period in which the liability is
incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges
for services, 2) operating grants and contributions, and 3) capital grants and contributions.
Certain eliminations have been made as prescribed by GASB 34 in regards to inter-fund activities, payables, and receivables.
All internal balances in the Statement of Net Position have been eliminated, except those representing balances between
the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the
total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated;
however, those transactions between governmental and business-type activities have not been eliminated.
The City applies all applicable GASB pronouncements including all National Council on Governmental Accounting
Statements and Interpretations currently in effect.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
41
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes
in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented
to reconcile and explain the differences in fund balances and changes in fund balances as presented in these statements to
the net position and changes in net position presented in the Government-Wide Financial Statements. The City has
presented all major funds that met those qualifications.
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the
modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance
Sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in current net position. Under the modified
accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and
available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except
that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources
which have been treated as susceptible to accrual by the City are property taxes, intergovernmental revenues, and other
taxes.
Expenditures are recorded in the accounting period in which the related fund liability is incurred. The City has elected to
apply the early recognition option of recognizing debt services expenditures provided by GASB Interpretation No. 6,
Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements. Under
this option, an expenditure and a liability are recorded in debt service funds in the current year for amounts due early in the
following year, for which resources have been provided during the current year.
The City reports the following major governmental funds:
General Fund – This fund accounts for the financial operations of the City, which are not accounted for in any other fund.
Principal sources of revenue are property taxes, state and local shared revenues, licenses and permits, and charges for
services provided to other funds. Principal expenditures in the General Fund are made for police and fire protection, public
welfare, and general government.
Street Maintenance District Special Revenue Fund – This special revenue fund accounts for special assessment revenues
levied, received, and expended for street maintenance provided to specific property owners.
Downtown Urban Renewal District – In November 1995, the City adopted an Urban Renewal Plan for the downtown area.
This fund accounts for the revenue and expenditures associated with this tax increment financing district.
Special Improvement District (SID) Debt Service – Accounts for the accumulation of resources and payment of special
assessment bond principal and interest for general improvement, sidewalk, and curb construction projects.
Construction Capital Projects Fund – Accounts for the construction of general improvement projects financed by special
assessments and general obligation debt other than those financed by proprietary funds.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses, and
Changes in Net Position, and a Statement of Cash Flows for each major proprietary fund. A column representing internal
service funds is also presented with the Proprietary Fund Financial Statements. Internal service balances and activities,
however, have been combined with the governmental activities in the Government-Wide Financial Statements.
City of Bozeman, Montana
Notes to the Financial Statements
June 30, 2025
42
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of
accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net
Position. The Statement of Revenues, Expenses, and Changes in Net Position present increases (revenues) and decreases
(expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they
are earned while expenses are recognized in the period in which the liability is incurred. Operating revenues in the
proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are
reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of
the fund. All other expenses are reported as non-operating expenses.
The City reports the following major proprietary funds:
Water Fund – This fund accounts for the City's water utility operations and to collect and administer water impact fees.
Waste Water Fund – This fund accounts for the City's sewer utility operations and to collect and administer waste water
impact fees.
Solid Waste Fund – This fund accounts for the City’s garbage collection service, recycling and organics operations.
Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary
Net Position. The City’s Fiduciary Funds represent custodial funds. Custodial funds are custodial in nature (assets equal
liabilities) and use the economic resources measurement focus. These funds are accounted for using the accrual basis of
accounting. The following custodial fund is included in the Fiduciary Fund financial statements:
Tourism Business Improvement District – Accounts for amounts collected from hotels on behalf of the District, a special-
purpose government, whose purpose is to enhance the economic vitality of Bozeman by promoting tourism through sales
and marketing strategies.
Municipal Court Fund – Accounts for monies held for appearance bonds and restitution related to criminal arrests and
reimbursement for damage caused.
Internal Service Funds
Internal Service Funds are used to account for goods and services provided by one department to other departments of the
City on a cost-reimbursement basis. These direct costs and certain indirect costs are included as part of the program
expense reported for the individual functions and activities of these other departments. The following Internal Service
Funds are included in the Proprietary Fund Financial Statements:
Vehicle Maintenance Shop – Accounts for the maintenance and repair of vehicles used in the operation of City services.
Medical Health Insurance – Accounts for insurance premium revenues received from the various City departments and
retirees, and the related costs of health, vision, and dental insurance premiums incurred by City employees and retirees.
Public Works Administration – Accounts for the professional level management, engineering, and GIS technical support
provided to other Public Works divisions, including water, wastewater, solid waste, stormwater, in addition to support
provided to other City departments.
Cash and Investments
Cash and investments are under the management of the City's Treasurer and consist primarily of demand deposits and
investments in U.S. Government Bonds. Interest income earned as a result of pooling of City deposits is distributed to the
appropriate funds utilizing a formula based on the average balance of cash and investments of each fund.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
43
Montana State statutes authorize the City to invest in interest-bearing savings accounts, certificates of deposits, and time
deposits insured up to $250,000 by the Federal Deposit Insurance Corporation or fully collateralized, U.S. government and
U.S. agency obligations and repurchase agreements where there is a master repurchase agreement and collateral held by a
third party.
Restricted Cash and Investments
Restricted cash and investments are those whose use is restricted to specific purposes by state statute, bond indenture, or
otherwise. The City’s restricted cash and investments are primarily restricted for construction and maintenance of City
infrastructure, debt service and urban renewal.
Investments Fair Value
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1
inputs are quoted prices in active markets for identical assets (these investments are valued using prices quoted in active
markets); Level 2 inputs are significant other observable inputs (these investments are valued using matrix pricing); Level 3
inputs are significant unobservable inputs (these investments are valued using consensus pricing).
Property Taxes
Real property taxes are assessed and collected each fiscal year according to the following property tax calendar:
Lien Date: December 1st for the 1st installment and June 1st for the 2nd installment
Levy Date: November 1st
Due Dates: November 30th for the 1st installment and May 31 for the 2nd installment
Personal property taxes are assessed on January 1 of each year and billed in May, with payment due within thirty days.
Gallatin County collects all property taxes on behalf of the City and remits collections, including penalties and interest, on a
monthly basis. The County assesses a delinquency penalty of 2%. If taxes become delinquent, the County tax collector may
sell the property to collect taxes due plus 0.83% per month interest.
In the fund financial statements, the City accrues as receivable all property taxes received during the first sixty (60) days of
the new fiscal year from Gallatin County, in accordance with the modified accrual basis. In the government-wide financial
statements, all taxes billed, but not yet collected are accrued in accordance with the full accrual basis of accounting, as
described in Note 1.
Special Assessments
Special assessments receivable represents the uncollected amounts levied against benefited property for the cost of local
improvements. Assessments are payable over a period of 18 to 20 years and bear interest of 2.5% to 5.75% per annum.
Recognition of the revenues from these assessments has been deferred until both measurable and available in
governmental funds. In the Government-Wide Financial Statements, however, these amounts are reported as revenues in
the period they are levied. Once received, the monies will be used to meet the annual debt service requirements on related
bonds and notes payable.
Interfund Receivables and Payables
All outstanding balances between funds are reported as “due to/from other funds” (current portion) or “advances to/from
other funds” (non-current portion). Any residual balances outstanding between the governmental activities and business-
type activities are reported in the government-wide financial statements as “internal balances”.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
44
Lease Receivables
Lease receivables are recorded by the City as the present value of future lease payments expected to be received from the
lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are
subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of
future lease payments to be received are discounted based on the interest rate the City charges the lessee.
Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods (consumption method) and are recorded
as prepaid items in both government-wide and fund financial statements.
Capital Assets
The City’s assets are capitalized at historical cost or estimated historical cost. City policy has set the capitalization threshold
for reporting capital assets at $5,000. Donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement are reported at acquisition value. Depreciable capital assets are reported on
the Statement of Net Position, net of applicable accumulated depreciation. Capital assets which are not depreciable such as
land, works of art, and construction in progress, are reported separately. Depreciation expense is reported in the Statement
of Activities and is calculated using the straight-line method based on the assets estimated useful life.
Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Buildings 20-80 years
Other structures and improvements 10-100 years
Infrastructure/flood control 25-100 years
Machinery and equipment 5-30 years
Vehicles 5-10 years
The City defines infrastructure as the basic physical assets that allow the City to function. These assets include the street
system, comprised of roads, sidewalks, curbs, and street lights; the water purification and distribution system; the sewer
collection and treatment system; park and recreation lands and related improvements; stormwater conveyance system;
and buildings and site amenities, including parking and landscaped areas.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are
not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets,
as applicable.
Right-of-use lease assets are recognized at the lease commencement date and represent the City’s right to use an
underlying asset for the lease term. Right-of-use lease assets are measured at the initial value of the lease liability plus any
payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at
or before the commencement of the lease term, plus any initial direct costs necessary to place the lease asset into service.
Right-of-use lease assets are amortized over the shorter of the lease term or useful life of the underlying asset using the
straight-line method. The amortization period varies from 1 to 49 years.
Right to use subscription IT assets are recognized at the subscription commencement date and represent the City’s right to
use the underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of
the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any
subscription incentives received from the vendor at or before the commencement of the subscription term, plus any
capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT
assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line
method. The amortization period varies from 2 to 5 years.
City of Bozeman, Montana
Notes to the Financial Statements
June 30, 2025
45
Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term
obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund
type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds on a
straight-line basis over the term of the related issue. Bonds payable are reported net of the applicable bond premium or
discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current
period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are
reported as other financing sources, while discounts on debt issuances are reported as other financing uses.
Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are
recognized at the lease commencement date based on the present value of future lease payments expected to be made
during the lease term. The present value of lease payments is discounted based on a borrowing rate determined by the
City.
Subscription liabilities represent the City’s obligation to make subscription payments arising from the subscription contract.
Subscription liabilities are recognized at the subscription commencement date based on the present value of future
subscription payments expected to be made during the subscription term. The present value of subscription payments is
discounted based on a borrowing rate determined by the City.
Compensated Absences
Earned but unpaid vacation and sick pay is included as a liability in the proprietary fund types and Government-Wide
Financial Statements. The portion relating to the governmental fund types not expected to be paid with expendable, and
available resources is not reported in the governmental fund statements unless the liability has matured (i.e., unused
reimbursable leave still outstanding following an employee's resignation or retirement).
On-Behalf Payments for Fringe Benefits
On-behalf payments for fringe benefits are direct payments made by one entity to a third-party recipient for the employees
of another legally separate entity. On-behalf payments include pension plan contributions. The State's pension contribution
is recorded as intergovernmental revenue with an offsetting public safety or general government expenditure in the
Pension Special Revenue Fund (see Note 11).
Postemployment Benefits Other Than Pensions (OPEB)
Under the provisions of the various employee and union contracts, the District provides certain postemployment benefits
other than pensions to eligible retirees. These OPEB obligations are funded on a pay-as-you-go basis. The total OPEB
liability, deferred outflows/inflows of resources, and OPEB expense were actuarially determined in accordance with GASB
Statement No. 75. Additional information can be found in Note 10.
Pensions
Montana Public Employees’ Retirement Association (MPERA) prepared financial statements using the accrual basis of
accounting. The same accrual basis was used by MPERA for the purposes of determining the Net Pension Liability (NPL);
Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions; Pension Expense; the Fiduciary Net
Position; and Additions to or Deductions from Fiduciary Net Position. Member contributions are recognized in the period in
which contributions are due. Employer contributions are recognized when due and the employer has made a formal
commitment to provide the contributions. Revenues are recognized in the accounting period they are earned and become
measurable.
City of Bozeman, Montana
Notes to the Financial Statements
June 30, 2025
46
Benefit payments and refunds are recognized in the accounting period in which they are due and payable in accordance
with the benefit terms. Expenses are recognized in the period incurred. Investments are reported at fair value. MPERA
adhered to all accounting principles generally accepted by the United States of America. MPERA applied all applicable
pronouncements of the Governmental Accounting Standards Board (GASB). Additional information can be found in Note 11.
Deferred Outflows and Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure)
until then. The City has three items that qualify for reporting in this category. They are the contributions made to pension
plans after the measurement date and prior to the fiscal year-end, changes in the net pension liability not included in
pension expense, and changes in the total other post employments benefits liability not included in OPEB expense, reported
in the district-wide statement of net position.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets
that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City
has four types of items that qualify for reporting in this category.
The City reports unavailable revenues from property taxes, special assessments, and court fines on the governmental funds
balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts
become available. The second item is deferred inflows related to leases where the City is the lessor and is reported in the
governmental funds balance sheet and statement of net position. The deferred inflows of resources related to leases are
recognized as an inflow of resources (revenue) on the straight-line basis over the term of the lease. The other items are
changes in the net pension liability not included in pension expense and changes in the total other post-employment
benefits liability not included in OPEB expense reported in the district-wide statement of net position.
Net Position
Net position represents the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred
inflows of resources in the City’s financial statements. Net investment in capital assets consists of capital assets, net of
accumulated depreciation/amortization, and unspent bond proceeds for capital purposes reduced by the outstanding
balances of any long-term debt or lease attributable to the acquisition, construction, or improvement of those assets,
retainage payable, and accounts payable related to capital asset construction. Net position is reported as restricted when
there are limitations imposed on its use either through enabling legislation or through external restrictions imposed by
creditors, grantors, or laws and regulations of other governments. Unrestricted net position is the net amount of assets and
liabilities that are not included in the determination of net investment in capital assets or the restricted component of net
position.
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s
policy is to apply restricted net position first.
As a nonprofit organization operating under the Financial Accounting Standards Board (FASB), the Foundation reports net
position with restricted or unrestricted funds, in accordance with donor requests.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
47
Fund Balance
In accordance with GASB Statement 54, the City reports fund balance for governmental funds in two general classifications,
nonspendable and spendable.
Nonspendable Fund Balance – represents the portion of fund balance that is not in spendable form, such as inventories,
and, in the General Fund, long-term notes and loans receivable. Spendable fund balance is further categorized as restricted,
committed, assigned, and unassigned.
Restricted Fund Balance – balances that can be spent only for the specific purposes stipulated by external parties or through
enabling legislation. External parties include grantors, debt covenants, votes, and laws and regulations of other
governments.
Committed Fund Balance – amounts that can be used only for the specific purposes determined by a formal action of the
government’s highest level of decision-making authority, the City Commission. The City Commission needs to formally
adopt a Resolution in order to establish, modify, or rescind a fund balance commitment.
Assigned Fund Balance – amounts intended to be used by the government for specific purposes but do not meet the criteria
to be classified as restricted or committed. The City’s policy to authorize the assignment of fund balance is as follows:
Assigned Fund Balance can be expressed and authorized directly by the City Commission or by an official to whom the
Commission delegates the authority. The City Commission delegates this authority to the City Manager. Included in the
assigned fund balance for the General Fund are assignments for the portion of the current General Fund balance that is
projected to be used to fund expenditures and other cash outflows in excess of the expected revenues and other cash
inflows projected for the next fiscal year.
Unassigned Fund Balance – the residual classification for the government’s General Fund and includes all spendable
amounts not contained in the other classifications. In other funds, the unassigned classification should be used only to
report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted,
committed, or assigned.
When both restricted and unrestricted resources are available, spending will occur in the following order, for the identified
fund types:
General Fund: Restricted, Committed, Assigned, Unassigned
Special Revenue Funds: Restricted, Committed, Assigned
Debt Service Funds: Assigned, Committed, Restricted
Capital Projects Funds: Restricted, Committed, Assigned
Minimum General Fund – Fund Balance
The City does not maintain a stabilization fund. However, the City’s Charter requires an established minimum level of
“General Fund Unrestricted Fund Balance,” in accordance with the Government Finance Officers’ Association (GFOA) Best
Practices, of 2 months or 16.67%, of operating revenues.
Implementation of GASB Statement No. 101
As of July 1, 2024, the City adopted GASB Statement No. 101, Compensated Absences. This Statement requires that
liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but
not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if
(a) the leave is attributable to services rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be
used for time off or otherwise paid in cash or settled through noncash means. As a result of these adjustments there were
no material effects on beginning net position. Additional information can be found in Note 7.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
48
Note 2 - Reconciliation of Government-Wide and Fund Financial Statements
Explanation of Certain Differences between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position
The governmental fund balance sheet includes reconciliation between fund balance – total governmental funds and net
position – governmental activities as reported in the government – wide statement of net position. One element of that
reconciliation explains that “long-term liabilities are not due and payable in the current period and, therefore, are not
reported in the funds.”
The details of this difference are as follows:
Bonds payable $ 58,908,583
Notes payable 1,597,551
Unamortized premium 4,063,634
Financed purchases payable 4,887,176
Leases payable 1,216,084
SBITAs 843,582
Compensated absences 5,284,746
Total OPEB liability 3,891,914
Net pension liability 32,076,522
Net adjustment to reduce fund balance - total governmental
funds to arrive at net position - governmental activities $ 112,769,792
Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes
in Fund Balances and the Government-Wide Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation
between net changes in fund balances – total governmental funds and changes in net position of governmental activities as
reported in the government-wide statement of activities. One element of that reconciliation explains that “Capital outlays
are reported as expenditures in governmental funds. However, in the statement of activities the cost of capital assets is
allocated over their estimated useful lives and reported as depreciation/amortization expense.”
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
49
The details of this difference are as follows:
Capital outlay reported in fund financial statements $ 19,853,995
Plus: donated/contributed assets 13,706,374
Plus: assets purchased by internal service funds 14,750
Plus: prior year construction in progress added as asset in current year 25,215,415
Capital asset increases per Note 6 58,790,534
Less: assets disposed (1,562,085)
Less: assets disposed by internal service funds (18,667)
Less: prior year construction in progress added as asset in current year (25,215,415)
Capital asset decreases per Note 6 (26,796,167)
Depreciation/amortization expense (12,299,926)
Accumulated depreciation/amortization increases per Note 6 (12,299,926)
Less: accumulated depreciation/amortization on assets disposed 1,264,430
Less: accumulated depreciation/amortization on assets disposed by internal service funds 10,267
Accumulated depreciation/amortization decreases per Note 6 1,274,697
Capital assets purchased by internal service funds (14,750)
Capital assets disposed by internal service funds 18,667
Accumulated depreciation/amortization on assets disposed by internal service funds (10,267)
Gain on assets transferred to internal service funds (14,479)
Depreciation/amortization expense included in net expense of
internal service funds 238,120
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of governmental activities $ 21,186,429
Another element of that reconciliation states that, “The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the
effect of premiums when debt is first issued, whereas these amounts are deferred and amortized in the statement of
activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.” The
details of this difference are as follows:
Principal payments on bonded debt $ 3,235,350
Amortization of premium on bonded debt 273,553
Principal payments on notes payable 118,479
Issuance of finance purchases payable (3,652,182)
Principal payments on finance purchases payable 246,537
Issuance of leases payable (1,051,800)
Principal payments on leases payable 94,386
Issuance of SBITAs (651,774)
Principal payments on SBITA 434,567
Principal payments recorded in internal service funds (109,677)
Net adjustment to net changes in fund balances - total governmental funds
to arrive at changes in net position of governmental activities $ (1,062,561)
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
50
Note 3 - Stewardship, Compliance, and Accountability
Budgets
Each year, the City Manager must submit to the City Commission a recommended operating budget for all budget units
within the City for the fiscal year commencing July 1. This operating budget includes proposed expenditures and the means
of financing them. Public hearings are conducted to obtain citizen comments on the recommended budget. The budget is
then legally adopted through passage of the appropriation resolution by the City Commission.
The City adopts a final budget each June and amends the budget in August if the initial taxable value estimates were
significantly different from the final Certified Values received from the State.
Budgets are legally required for all governmental fund types. These budgets are prepared on the same basis and using the
same accounting practices as are used to account and prepare financial reports for the funds. Budgets presented in this
report for comparison to actual amounts are presented in accordance with GAAP. Annual appropriated budgets are
adopted for all funds and all appropriations lapse at year-end.
The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is
established at the budget unit level, which is implemented through the City’s fund structure. For example, departments
supported by the General Fund (such as Police, Fire and Emergency Medical Services, and Recreation) are appropriated
together as a budget unit. Likewise, Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Enterprise Funds
(such as Water and Sewer Utilities), and Permanent Funds are each adopted as separate budget units at the fund-type level.
The budgetary comparison schedules presented in this ACFR provide budget-to-actual information at a level of detail equal
to or more detailed than the legally adopted budget-unit level, thereby demonstrating compliance with adopted
appropriations and state budget law.
The City Commission may amend the budget during the course of the fiscal year. Montana state statute provides a number
of different ways to amend the budget. The first involves a reallocation of existing appropriations among the line items
within a specific fund. The second defines a series of scenarios where the governing body has authority to amend the
budget without a hearing for donations, land sales, and fee-based budgets. All other increases in appropriation authority
that are not specifically permitted by statute must be approved through a public hearing process.
Any accruing revenue of the municipality not appropriated and any balance at any time remaining after the purpose of an
appropriation has been satisfied or abandoned, may from time to time be appropriated to other uses that do not conflict
with any uses for which specifically the revenue was accrued. A public hearing is required for an overall increase in
appropriation authority, except in the case of an emergency.
In its annual appropriation resolution, the City Commission delegated budget amendment authority to the City Manager for
the expenditure of funds from any or all of the following: debt service funds, enterprise funds, internal service funds, trust
funds, federal and state grants accepted and approved by the governing body, special assessments, and donations. In all
other funds, the City Manager may, without approval from the City Commission, make budget amendments as long as the
total appropriation for the department is not exceeded.
Spending control is established by the total amount of expenditures appropriated for each budget unit, but management
may exercise control at budgetary line items.
For the fiscal year ended June 30, 2025, expenditures exceeded appropriations in individual funds for the following reasons:
Departmental Fund $(17,339): The excess was primarily due to unexpected revenue from the state and the costs to replace
library books and reference materials. This revenue and expenditure will be budgeted in future fiscal years.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
51
Economic Development Revolving Loans Fund $(61.00): The excess was primarily due additional transaction fees
implemented by the bank. The additional expenditure will be budgeted for in future fiscal years.
Deficit Fund Balance
The following funds had a deficit fund balance at June 30, 2025:
Governmental Funds
Nonmajor Funds
Health-Medical Insurance $ (528,042)
Metropolitan Planning Organization (2,012)
General Obligation Bonds (174,757)
The deficit fund balance in the Health-Medical Insurance fund is due to unanticipated changes in health insurance costs.
Transfers to cover health care costs in other funds will be adjusted in fiscal year 2026 to remove the deficit.
The deficit fund balance in the Metropolitan Planning Organization is related to start up costs that were not reimbursable
by the federal grant. Revenues anticipated to be received to recover the deficit fund balance.
The deficit fund balance in General Obligation Bonds fund is due to a timing difference between the debt payment related
to Fire Station 2 bonds and tax collections. The city elects to pay debt payments due on July 1st on or just before June 30th
each fiscal year. The taxes related to the July 1st payment will be collected in fiscal year 2026.
Note 4 - Cash and Investments
At June 30, 2025, the carrying amount of the City's deposits in local banks and investments was $7,548,898. Interest bearing
account balances are covered by the Federal Depository Insurance Corporation (FDIC) up to $250,000 per bank, per
depositor. In addition, all noninterest bearing transaction account balances are fully insured by FDIC coverage. Interest
bearing account balances not insured by FDIC coverage is $7,304,591. This remaining balance is covered by collateral held
by the pledging bank's agent in the City's name.
The City’s cash and investments are reported as follows:
Cash and investments
Statement of net position $ 108,986,636
Statement of fiduciary net position 536,670
Restricted cash and investments
Statement of net position 74,540,412
—
$ 184,063,718
Deposits $ 3,271,339
Investments 180,792,379
$ 184,063,718
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
52
Custodial Credit Risk – Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the City’s
deposits may not be returned or the City will not be able to recover the collateral securities in the possession of the outside
party. The City minimizes custodial credit risk by restrictions set forth in City policy and state law. The City’s policy requires
deposits to be 104 percent secured by collateral valued at fair value. The City Treasurer maintains a listing of financial
institutions, which are approved for investment purposes. Types of securities that may be pledged as collateral are detailed
in Section 17-6-103 of the Montana Code Annotated (MCA). City policy requires that specific safeguards against risk of loss
be evidenced when the City does not physically hold the securities.
Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. The City’s investment policy limits investing funds primarily in short- and intermediate-term liquid securities of
high credit quality to ensure adequate liquidity and minimize the impact of changes in interest rates. Portfolios are
structured so that securities mature concurrent with cash needs to meet anticipated demands.
Credit Risk – Credit risk is defined as the risk that an issuer or other counterpart to an investment that will not fulfill its
obligation. The above credit risk rating indicates the probability that the issuer may default in making timely principal and
interest payments. The credit ratings presented in the following table are provided by Standard and Poor’s Corporation
(S&P). The City’s investment policy is to hold investments to maturity with the contractual understanding that these
investments are low risk, locked in to a guaranteed rate of return, and are, therefore, not impacted significantly by changes
in short term interest rates.
On June 30, 2025, the following interest rate and credit risks and valuation inputs were associated with the City’s deposits
and investments.
Maturities (in Years)
Investment Type Credit Rating Fair Value Not Applicable < 1 1 - 5
Primary Government
U.S. Government bonds S&P AA+$ 78,514,820 $ — $ 23,647,980 $ 54,866,840
Corporate Bonds N/A — — — —
Certificates of Deposit N/A 1,200,000 1,200,000 — —
MMIA Account N/A 3,077,559 3,077,559 — —
State of Montana Short Term
Investment Pool N/A 98,000,000 98,000,000 —
$ 180,792,379 $ 102,277,559 $ 23,647,980 $ 54,866,840
The City voluntarily participates in the STIP (Short Term Investment Pool) administered by the Montana Board of
Investments (MBOI). A local government’s STIP ownership is represented by shares, the prices of which are fixed at $1.00
per share, and participants may buy or sell shares with one business days’ notice. STIP administrative expenses are charged
daily against the STIP income, which is distributed on the first calendar day of each month. Shareholders have the option to
automatically reinvest their distribution income in additional shares. STIP is not registered with the Securities and Exchange
Commission. STIP is not FDIC insured or otherwise insured or guaranteed by the federal government, the State of Montana,
the Montana Board of Investments (MBOI) or any other entity against investment losses and there is no guaranteed rate of
return on funds invested in STIP shares. The MBOI maintains a reserve fund to offset possible losses and limit fluctuations in
STIP’s valuation. The STIP investment portfolio consists of securities with maximum maturity of 2 years. Information on
investments held in the STIP can be found in the Annual Report on the MBOI website at https://investmentmt.com/Annual-
Reports.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
53
Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s
investment in a single issuer. The City’s investment policy diversifies the portfolios by limiting investments to avoid
overconcentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities and the State of
Montana Investment Pool). No more than 40% of the total portfolio may be with any one financial institution, excluding the
State of Montana Investment Pool. The City’s investment policy also has limits on the following allowable deposits and
investments: repurchase agreements shall not exceed 25% of the City’s portfolio or $3,000,000, certificates of deposit
issued by commercial banks shall not exceed 25% of the City’s portfolio, and certificates of deposit issued by savings and
loan associations shall not exceed 5% of the City’s portfolio. No more than 30% of the total portfolio may be invested in
certificates of deposit with any one financial institution, and each financial institution must be a member of the FDIC. None
of the established limits were exceeded as of June 30, 2025.
Fair Value – The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs.
The three levels of the fair value hierarchy are described as follows:
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets in active markets that the City has the ability to access.
Level 2 – Inputs to the valuation methodology include:
1.Quoted prices for similar assets or liabilities in active markets:
2.Quoted prices for identical or similar assets or liabilities in active markets;
3.Inputs other than quoted prices that are observable for the asset or liability;
4.Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 – Inputs to the valuation methodology that are unobservable and significant to the fair value measurement.
The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is
significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and
minimize the use of unobservable inputs.
The following table presents the assets measure at fair value on a recurring basis, except those measured at net asset value
(NAV) and cost as identified below, at June 30, 2025:
Total Level 1 Level 2 Level 3
Primary Government
US Government Bonds $ 78,514,820 $ — $ 78,514,820 $ —
$ 78,514,820 $ — $ 78,514,820 $ —
U.S. Government and Agency securities, money market mutual funds, and certificates of deposit classified in Level 1 of the
fair value hierarchy are valued using prices quoted in active markets for these securities. Corporate bonds, municipal bonds,
corporate commercial paper, bond and equity mutual funds classified in Level 2 of the fair value hierarchy are valued using
techniques such as quoted prices for similar investments in active and inactive markets as well as inputs other than quoted
prices that are observable for these assets.
Investments with the STIP totaling $98,000,000 are measured at net asset value (NAV) and are not subject to GASB 72
leveling. Investments in certificates of deposit and MMIA accounts are measured at cost and are not subject to GASB 72
leveling.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
54
The Foundation and Business Improvement District report cash and investments at December 31, 2024 and June 30, 2025, respectively, are as follows. Investments are considered to be Level 1.
Bozeman Public Library Foundation Business Improvement District
Cash and investments
Cash and cash equivalents $ 2,267,221 $ 208,435
Restricted investments 5,391,326 —
Total cash and investments $ 7,658,547 $ 208,435
Note 5 - Receivables
Loans receivable as of June 30, 2025, were as follows:
Loan Program Interest Rate Maturity Date Amount
Economic Development Loan Fund 3.0-8.0%2025-2030 $ 632,956
As of 7/1/2023 the city terminated participation in the workers' compensation program with the Montana Municipal
Authority (MMIA). As part of the program agreement departing members receive a payment of a portion of the
unrestricted undesignated net position allocated to each individual member over a four-year period (Year 1 - 10%, Year 2 -
25%, Year 3 - 50%, Year 4 - 15%). The city received $484,741 in year 1 (FY24), and $525,994.50 in year 2 (FY25) following
departure from the program. The payment amounts to be received for Year 3 and Year 4 are uncertain and are not
estimable by the city at his time. Each fiscal year MMIA calculates the projected unrestricted undesignated net position for
each member to determine the installment payment amounts due to departing members. The projection relies on various
assumptions including but not limited to; investment returns of the program, loss valuations of submitted claims each fiscal
year, expected claim payments and on-going administration costs of claims. The city does not have access to the
information necessary to estimate the payment amounts due in FY25 and FY26, and MMIA has not provided any projections
to the city as of the reporting date. Therefore, the city has not recorded a receivable for FY25. Beginning 7/1/2023 the city's
workers' compensation coverage is provided by the Montana State Fund.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
55
Note 6 - Capital Assets
Governmental activities capital asset activity for the year ended June 30, 2025, consisted of the following:
Beginning
Balance Increases Decreases Transfers
Ending
Balance
Governmental Activities
Capital assets, not being depreciated/amortized
Land $ 41,727,885 $ 788,828 $ — $ — $ 42,516,713
Artwork 42,698 94,635 — — 137,333
Construction in progress 26,756,204 5,090,202 25,215,415 — 6,630,991
Total capital assets, not being
depreciated/amortized 68,526,787 5,973,665 25,215,415 — 49,285,037
Capital assets, being depreciated/amortized
Buildings 81,533,211 18,971,063 766,347 — 99,737,927
Improvements other than buildings — 766,776 — — 766,776
Machinery and equipment 26,879,506 2,516,537 299,911 — 29,096,133
Infrastructure 297,918,727 26,882,087 — — 324,800,814
Vehicles 6,568,523 1,926,832 494,661 — 8,000,694
Right-of-use lease building 423,122 1,051,800 — — 1,474,922
Right-of-use lease vehicles 19,833 — 19,833 — —
Subscription-based IT assets 1,261,279 701,774 — — 1,963,053
Total capital assets, being depreciated/
amortized 414,604,201 52,816,869 1,580,752 — 465,840,318
Less accumulated depreciation/amortization for
Buildings 23,536,194 2,439,164 565,930 — 25,409,428
Improvements other than buildings — 23,823 — — 23,823
Machinery and equipment 16,025,802 1,980,725 219,254 — 17,787,273
Infrastructure 109,825,383 6,715,744 — — 116,541,127
Vehicles 3,968,159 655,829 472,985 — 4,151,003
Right-of-use lease assets - building 211,561 95,581 — — 307,142
Right-of-use lease assets - vehicles 16,528 — 16,528 —
Subscription-based IT assets 423,743 389,060 — — 812,803
Total accumulated depreciation/
amortization 154,007,369 12,299,926 1,274,697 — 165,032,598
Total capital assets, being
depreciated/amortized, net 260,596,832 40,516,943 306,055 — 300,807,720
Governmental Activities Capital Assets, Net $ 329,123,619 $ 46,490,608 $ 25,521,470 $ — $ 350,092,757
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
56
Depreciation/amortization expense was charged to functions/programs of the government as follows:
Governmental activities
General government $ 578,424
Public safety 2,561,402
Public service 6,973,299
Public health and welfare 2,186,801
governmental activities $ 12,299,926
Business-type activities capital asset activity for the year ended June 30, 2025, consisted of the following:
Balance Increases Decreases Transfers Ending Balance
Business-Type Activities
Capital assets, not being depreciated
Land $ 2,218,553 $ — $ — $ — $ 2,218,553
Intangible water rights 2,762,142 — — — 2,762,142
Construction in progress 7,641,067 2,965,066 4,667,750 — 5,938,383
Total capital assets, not
being depreciated 12,621,762 2,965,066 4,667,750 — 10,919,078
Capital assets, being depreciated
Buildings 116,596,119 1,125,823 — — 117,721,942
Improvements other than buildings 30,547,611 — — — 30,547,611
Machinery and equipment 15,694,572 4,103,943 62,170 — 19,736,345
Infrastructure 408,832,785 15,687,159 — — 424,519,944
Vehicles 2,592,571 189,503 53,784 — 2,728,290
Total capital assets, being
depreciated 574,263,658 21,106,428 115,954 — 595,254,132
Less accumulated depreciation for
Buildings 34,993,517 2,581,896 — — 37,575,413
Improvements other than buildings 30,491,700 51,902 — — 30,543,602
Machinery and equipment 11,707,919 952,708 62,170 — 12,598,457
Infrastructure 161,886,325 4,477,630 — — 166,363,955
Vehicles 1,941,183 126,183 53,784 — 2,013,582
Total accumulated depreciation 241,020,644 8,190,319 115,954 — 249,095,009
Total capital assets, being
depreciated, net 333,243,014 12,916,109 — — 346,159,123
Business-Type Activities Capital Assets, Net $ 345,864,776 $ 15,881,175 $ 4,667,750 $ — $ 357,078,201
Depreciation expense was charged to functions/programs of the government as follows:
Business-type activities
Water $ 3,478,585
Wastewater 3,432,703
Solid Waste 645,843
Parking 359,252
Stormwater 273,936
Total depreciation expense - business-type activities $ 8,190,319
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
57
Note 7 - Long-Term Debt
The following is a summary of changes in long-term debt of the City for the year ended June 30, 2025:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities
Bonds payable
General obligation bonds $ 49,675,000 $ — $ 2,545,000 $ 47,130,000 $ 2,670,000
Tax increment financing bonds 9,301,366 — 518,809 8,782,557 531,215
Special assessment bonds 3,167,567 — 171,541 2,996,026 177,031
Total bonds payable 62,143,933 — 3,235,350 58,908,583 3,378,246
Notes payable
Notes payable 1,434,219 — 72,903 1,361,316 75,578
Intercap notes payable 281,811 — 45,576 236,235 46,820
Total notes payable 1,716,030 — 118,479 1,597,551 122,398
Unamortized premium 4,337,187 — 273,553 4,063,634 273,554
Finance purchases payable 1,481,531 3,652,182 246,537 4,887,176 616,282
Leases payable 258,670 1,051,800 94,386 1,216,084 101,279
Subscription IT agreements 626,375 651,774 434,567 843,582 301,839
Compensated absences 4,094,887 4,156,649 2,966,790 5,284,746 2,966,792
$ 74,658,613 $ 9,512,405 $ 7,369,662 $ 76,801,356 $ 7,760,390
Business-Type Activities
Bonds payable
Water revenue bonds $ 14,593,000 $ — $ 1,395,000 $ 13,198,000 $ 1,435,000
Wastewater revenue bonds 23,888,000 — 2,411,000 21,477,000 2,171,000
Stormwater revenue bonds 1,109,000 — 89,000 1,020,000 90,000
Total bonds payable 39,590,000 — 3,895,000 35,695,000 3,696,000
Finance purchases payable
Solid Waste finance purchase — 1,937,229 — 1,937,229 233,794
Stormwater finance purchase — 336,491 — 336,491 27,710
Total finance purchases payable — 2,273,720 — 2,273,720 261,504
Landfill closure/postclosure 1,982,403 — 376,857 1,605,546 —
Pollution remediation obligation 536,669 233,583 — 770,252 —
Compensated absences 694,843 1,235,513 960,567 969,789 960,567
$ 42,803,915 $ 3,742,816 $ 5,232,424 $ 41,314,307 $ 4,918,071
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
58
Bonds Payable
At June 30, 2025, the City had the following bond issuances outstanding:
Principal
Final Maturity Interest Rate Original Issue Outstanding
Governmental Activities:
General obligation bonds
TOP Bonds, Series 2013 7/26/1905 2.00 - 4.00%$ 9,900,000 $ 5,305,000
TOP Bonds, Series 2014 7/27/1905 2.00 - 4.00% 5,100,000 2,990,000 BPSC Bonds, Series 2019 7/31/1905 2.00 - 4.00% 34,405,000 26,705,000
Refunding Bonds, Series 2022 8/3/1905 4.00 - 5.00% 25,640,000 6,075,000
Limited Tax GO Bonds, Series 2024B 2043 4.00 - 5.00% 3,930,000 2,220,000
GO Rec Improvement Bonds, Series 2024A 2044 4.00 - 5.00% 2,280,000 3,835,000
Total general obligation bonds $ 81,255,000 $ 47,130,000
Tax increment financing bonds
Direct placement, Series 2020 Downtown District
refunding bonds 7/24/1905 2.44%$ 3,689,000 $ 2,112,000
Direct placement, Series 2017 Northeast District
bonds 8/3/1905 4.10% 1,446,000 1,095,557
Series 2020 Midtown District bonds 8/5/1905 2.00 - 4.00% 6,325,000 5,575,000
Total tax increment financing bonds $ 11,460,000 $ 8,782,557
Special assessment bonds
Special Improvement District No. 747, Series
2020 8/1/1905 3.175%$ 4,001,000 $ 2,996,026
Total governmental activities $ 96,716,000 $ 58,908,583
Business-Type Activities
Direct Placement Water revenue bonds
Series 2011A 7/24/1905 3.00%$ 9,491,000 $ 3,941,000
Series 2011B 7/25/1905 3.00% 9,552,000 4,270,000
Series 2017 7/29/1905 2.50% 7,573,000 4,987,000
Total water revenue bonds $ 26,616,000 $ 13,198,000
Direct Placement Wastewater revenue bonds
Series 2010B 7/22/1905 1.75%$ 359,300 $ 91,000
Series 2010D 7/22/1905 3.00% 8,308,000 2,683,000 Series 2010F 7/22/1905 3.00% 729,000 254,000
Series 2010C 7/23/1905 3.00% 885,081 329,000 Series 2010G 7/23/1905 3.00% 3,605,565 1,029,000
Series 2010H 7/23/1905 3.00% 8,692,000 3,232,000 Series 2020D 8/1/1905 2.50% 2,807,000 2,230,000
Series 2020B 8/1/1905 2.50% 7,786,000 6,186,000
Series 2020C 8/2/1905 2.50% 6,693,321 5,443,000
Total waste water revenue bonds $ 39,865,267 $ 21,477,000
Direct Placement Stormwater revenue bonds
Series 2015 7/27/1905 2.50%$ 1,815,000 $ 1,020,000
Total business-type activities $ 134,777,534 $ 35,695,000
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
59
There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with
all significant limitations and restrictions.
General Obligation Bonds – The City issues general obligation bonds to provide funds for the acquisition and construction of
major capital assets. General obligation bonds are direct obligations of the City and are backed by the full faith and credit of
the City. General obligation bonds are recorded in the governmental activities in the government-wide statement. Principal
and interest on these bonds are payable from the debt service funds.
Tax Increment Financing (TIF) Bonds – Tax Increment Financing (TIF) Bonds are not general obligations, but are special
limited obligations of the City. TIF bonds are recorded in the governmental activities in the government-wide statement.
The bonds are payable solely, and equally and ratably from the tax increment revenues received by the City from its
Downtown Bozeman Urban Renewal District, Northeast Improvement District, and Midtown Improvement District. If the
incremental revenues are insufficient to pay the principal and interest due on the TIF bonds when due, such payment
shortfall shall not constitute a default under the TIF agreement. If and when the incremental revenues are sufficient, the
City shall pay the amount of any shortfall to the paying agent and registrar without any penalty interest or premium
thereon. Due to the uncertainty of the future tax increment receipts, future payments on the TIF bonds may vary from the
summary of debt service requirements. Principal and interest on these bonds are payable from the TIF debt service fund.
Special Assessment Bonds – Special assessment bonds are payable from the collection of special assessments levied against
benefited property owners within each special improvement district. To the extent that such special assessment collections
are not sufficient to make the required debt service payments, the City is obligated to levy and collect a general property
tax on all taxable property in the City to provide additional funding for the debt service payments. The cash balance in the
SID Revolving Fund must equal at least 5% of the principal amount of bonds outstanding. If the cash balance is less than 5%,
a levy is required to bring the cash balance to the required minimum. Principal and interest on these bonds are payable
from the SID debt service fund.
Revenue Bonds -The City also issues bonds where the City pledges income derived from the acquired or constructed assets
to pay debt service. The revenue bond ordinances specify that the City shall establish various restricted asset accounts and
distribute the net revenues for the water fund to the restricted asset accounts and set user rates at levels which will
generate minimum net revenues, as defined. The revenue bond ordinances specify that City management and/or the City
Commission shall take corrective actions to bring the City into compliance with the revenue bond ordinances, if necessary,
and that bondholders shall have the right to institute proceedings, judicial or otherwise, to enforce the covenants of the
revenue bond ordinances. The City is in compliance with applicable covenants as of June 30, 2025.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
60
The annual requirements to amortize the bonded debt outstanding for the governmental activities as of June 30, 2025, are
as follows:
Years Ending General Obligation Bonds Tax Increment Financing Bonds
June 30, Principal Interest Principal Interest
2026 $ 2,670,000 $ 1,745,963 $ 531,215 $ 304,068
2027 2,780,000 1,637,338 545,171 287,104
2028 2,890,000 1,522,838 564,152 269,745
2029 3,015,000 1,402,438 586,381 251,566
2030 3,135,000 1,288,088 598,537 232,817
2031 -2035 17,070,000 4,306,638 2,287,155 888,519
2036 -2040 12,845,000 1,622,069 2,004,824 503,326
2041 -2045 2,725,000 242,100 1,665,121 122,917
$ 47,130,000 $ 13,767,469 $ 8,782,557 $ 2,860,062
Years Ending Special Assessment Bonds Total Governmental Activities
June 30, Principal Interest Principal Interest
2026 $ 177,031 $ 93,730 $ 3,378,246 $ 2,143,760
2027 182,696 88,064 3,507,867 2,012,506
2028 188,543 82,218 3,642,695 1,874,800
2029 194,577 76,184 3,795,958 1,730,188
2030 200,803 69,957 3,934,341 1,590,862
2031 -2035 1,104,622 249,178 20,461,777 5,444,334
2036 -2040 947,754 65,144 15,797,578 2,190,538
2041 -2045 — — 4,390,120 365,017
$ 2,996,026 $ 724,474 $ 58,908,583 $ 17,352,005
The annual requirements to amortize the bonded debt outstanding for the business-type activities as of June 30, 2025, are
as follows:
Years Ending Water Revenue Bonds Waste Water Revenue Bonds
June 30, Principal Interest Principal Interest
2026 $ 1,435,000 $ 360,773 $ 2,171,000 $ 558,700
2027 1,477,000 319,225 2,234,000 497,203
2028 1,520,000 276,448 2,298,000 433,865
2029 1,563,000 232,443 2,365,000 368,705
2030 1,609,000 187,180 2,100,000 301,644
2031 -2035 4,656,000 366,665 4,975,000 990,408
2036 -2040 938,000 29,500 5,124,000 385,275
2041 -2045 — — 210,000 2,625
$ 13,198,000 $ 1,772,233 $ 21,477,000 $ 3,538,424
Years Ending Stormwater Revenue Bonds Total Business-Type Activities
June 30, Principal Interest Principal Interest
2026 $ 90,000 $ 24,938 $ 3,696,000 $ 944,410
2027 94,000 22,663 3,805,000 839,090
2028 96,000 20,300 3,914,000 730,613
2029 97,000 17,900 4,025,000 619,048
2030 100,000 15,463 3,809,000 504,286
2031 -2035 543,000 38,000 10,174,000 1,395,073
2036 -2040 — — 6,062,000 414,775
2041 -2045 — — 210,000 2,625
$ 1,020,000 $ 139,263 $ 35,695,000 $ 5,449,919
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
61
Industrial Revenue and Private Activity Bonds
The City issues tax exempt industrial revenue and private activity bonds to finance construction of facilities within the City,
which it sells on installment contracts to the facilities' users. The bonds and the interest payable thereon are not obligations
of the City and do not constitute or give rise to a pecuniary liability or contingent liability of the City or a charge against the
general credit or taxing power of the City. The bonds are issued under and collateralized by the indentures and are payable
solely from the payments to be made pursuant to the loan agreements between the City and the facilities users. The bonds
are not a lien on any of the City’s properties or revenues, other than the facilities for which they were issued.
To provide financial assistance for the acquisition and improvements of the building occupied by a private elementary
school, the City has issued a Private Activity Revenue Bond. This bond is secured by the property financed and is payable
solely from payments received on the underlying mortgage loan. Upon repayment of the bond, ownership of the acquired
facility transfers to the private-sector entity served by the bond issuance. Neither the City nor any political subdivision
thereof is obligated in any manner for repayment of the bond. Accordingly, the bond is not reported as a liability in the
accompanying financial statements. As of June 30, 2025, the Revenue Bond outstanding had an aggregate principal amount
payable of $60,025.
Notes Payable
At June 30, 2025, the City had the following notes payable outstanding:
Principal
Final Maturity Interest Rate Original Issue Outstanding
Governmental Activities:
Notes payable
Sports Park Loan 2039 3.74%$ 1,700,000 $ 1,361,316
Intercap notes payable
Upgrade Street Lighting 2030 1.55 - 5.75% 199,231 81,689
Sports Park-Bronken Park Improvements 2029 1.00 - 5.75% 314,559 154,545
Total intercap notes payable $ 513,790 $ 236,235
Total governmental activities $ 2,213,790 $ 1,597,551
Future payments on notes payable are as follows:
Governmental Activities
June 30, Principal Interest
2026 $ 122,398 $ 61,441
2027 126,533 47,363
2028 130,755 44,463
2029 135,306 41,273
2030 121,104 38,142
2031 -2035 498,124 138,508
2036 -2040 463,333 39,848
$ 1,597,551 $ 411,038
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
62
Financed Purchases Payable
Financed purchases payable consists of direct borrowing financing agreements for the purchase of various pieces of
machinery and equipment. Financed purchases payable of the governmental activities are paid by the General Fund, Street
Maintenance Fund, Fire Department Equipment Fund, and the Fire Impact Fee Fund.
Future payments on financed purchases payable are as follows:
Governmental Activities
Years Ending June 30, Principal Interest
2026 $ 616,282 $ 201,656
2027 650,556 167,282
2028 905,976 140,272
2029 669,492 92,434
2030 442,492 72,553
2031 -2035 956,284 197,822
2036 -2040 646,093 68,465
$ 4,887,176 $ 940,484
Leases Payable
Leases payable consists of long-term leases as described in Note 8. Leases payable of the governmental activities are
liquidated by the Public Works Administration Fund.
Subscription IT Agreements
Subscription IT agreements consists of long-term software contracts as described in Note 9. Subscriptions payable of the
governmental activities are liquidated by the General Fund, City Planning Fund, Building Inspection Fund, Fire Department
Equipment Fund, and Public Works Administration Fund.
Landfill Closure/Postclosure
Landfill Closure/Postclosure liability consists of expected future obligations relating to the municipal landfill. See Note 20 for
additional information.
Pollution Remediation Liability
Pollution remediation liability consists of expected future obligations relating to remediation of the Bozeman Solvent Site.
See Note 21 for additional information.
Compensated Absences
Accumulated vacation leave that is due and payable to separated employees, and expected to be liquidated with
expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that
will pay it. Amounts of accumulated vacation leave that are more likely than not to be used or paid upon separation and are
not expected to be liquidated with expendable available resources are reported as liabilities in the Statement of Net
Position. The City's policies allow employees to accumulate vacation leave, which is paid out upon termination at the
employee's current pay rate. A liability is also recorded for accumulating rights to receive sick pay benefits for the portion
more likely than not to be used by employees, based on historical usage patterns and government policy.
Additionally, a liability is recognized for that portion of accumulating sick leave benefits that is more likely than not to be
paid upon termination. The City accrues salary-related payment associated with the payment of compensated absences.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
63
Note 8 - Leases
Lessor Activities
The City has accrued a receivable for a land lease. The remaining receivable for this lease was $280,606 for the year ended
June 30, 2025. Deferred inflows related to these leases were $267,018 as of June 30, 2025. Interest revenue recognized on
this lease was $15,410 for the year ended June 30, 2025. Principal payments of $27,595 were recognized during the fiscal
year. The interest rate used to value the lease was 5%. Final receipt is expected in fiscal year 2033.
Lessee Activities
The City has entered into lease agreements for office space and for a fire station. The City is required to make principal and
interest payments through March 2028 for the office space and through October 2071 for the fire station. For lease
agreements with no specified interest rate, the lease liability was valued using a discount rate of 5% based on the City’s
incremental borrowing rate at the inception of the leases.
The future principal and interest lease payments as of June 30, 2025, are as follows:
Years Ending Governmental Activities
June 30,Principal Interest
2026 $ 101,279 $ 53,451
2027 83,424 48,331
2028 7,428 46,412
2029 7,762 46,078
2030 8,112 45,729
2031 -2035 46,373 222,828
2036 -2040 57,789 211,412
2041 -2045 72,016 197,185
2046 -2050 89,745 179,456
2051 -2055 111,839 157,362
2056 -2060 139,371 129,830
2061 -2065 173,682 95,519
2066 -2070 216,439 52,762
2071 -2075 100,825 6,856
$ 1,216,084 $ 1,493,208
Note 9 - Subscription-Based Information Technology Arrangements (SBITAs)
The City has entered into SBITA contracts for various operating software. The City is required to make principal and interest
payments through September 2029. The SBITA contracts have interest rates of 5% which were determined based on the
City’s incremental borrowing rate at the inception of the subscriptions.
The future principal and interest payments as of June 30, 2025, are as follows:
Years Ending Governmental Activities
June 30,Principal Interest
2026 $ 301,839 $ 37,470
2027 291,480 21,713
2028 183,048 12,804
2029 67,214 3,439
$ 843,582 $ 75,426
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
64
Note 10 - Other Post-Employments Benefit Plan
The City provides other post-employment benefits (OPEB) allowing its retired employees to continue their medical, dental,
and vision care coverage through the City's group health plan until death (Retiree Health Plan). The single-employer defined
benefit post-employment health care plan allows retirees to participate, as a group, at a rate that does not cover all of the
related costs. This results in the reporting of an implied rate subsidy in the financial statements and footnotes. The City's
contract with Allegiance Benefits details the plan eligibility. MMIA is the administrator of the plan, which covers both active
and retired members. In accordance with MCA 2-18-704, the City’s retirees may continue coverage for themselves and their
covered eligible dependents, if they are eligible for public employees' retirement by virtue of their employment with the
City of Bozeman. The City's current labor contracts do not include any obligations for payments to retirees. The City also
allows terminated employees to continue their health care coverage for 18 months past the date of termination as required
by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).
OPEB is recorded on an accrual basis for all enterprise and internal service funds. OPEB is recorded on a modified accrual
basis for the governmental funds. Plan contributions are recognized in the period in which the contributions are made.
Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. No assets are
accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.
Funding Policy
The plan is unfunded by the City and plan members receiving benefits contribute 100 percent of their cost of the benefits
on a pay-as-you-go basis. The City plan’s administratively established retiree medical, dental, and vision premiums vary
between $8 and $2,942 per month depending on the medical plan selected, family coverage, and Medicare eligibility. The
plan provides different coinsurance amounts depending on whether members use preferred, non-preferred, or other
hospitals. Depending on the plan, for a single individual, after an annual deductible of $500 to $3,300 for non-Medicare-
eligible retirees, the plan reimburses 70% to 80% of allowed charges after deductible and up to the out-of-pocket
maximum, and then 100%. Depending on the plan, for a family, after an annual deductible of $1,000 to $6,400 for non-
Medicare-eligible retirees, the plan reimburses 60% to 80% of allowed charges after deductible and up to the out-of-pocket
maximum, and then 100%.
Employees Covered by Benefit Terms
At July 1,2024, the census valuation date, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving
benefit payments 22
Inactive employees entitled to but not yet receiving
benefit payments —
Active employees 458
480
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
65
Contributions
Benefit contributions are paid by the City as they come due.
Total OPEB Liability (TOL)
The City’s total OPEB liability of $4,698,468 for the June 30, 2025, reporting date was measured as of June 30, 2024, and
was determined by an actuarial valuation as of July 1, 2024.
Changes in the TOL for the year ended June 30, 2025, are as follows:
Balance as of July 1, 2024 $ 4,794,995
Changes from the Prior Year:
Service cost 317,122
Interest cost 195,072
Assumption changes 336,520
Differences between expected and actual experience (828,352)
Benefit payments (116,889)
Net Change (96,527)
Balance at June 30, 2025 $ 4,698,468
There is sensitivity of the TOL to changes in the discount rate. The TOL of the City as well as what the City’s TOL would be if
it were calculated using a discount rate that is one percentage point lower (2.97%) or one percentage point higher (4.97%)
follows:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
Discount rate 2.97 % 3.97 % 4.97 %
Total OPEB Liability $ 5,325,275 $ 4,698,468 $ 4,159,828
There is also sensitivity of the TOL to changes in the healthcare cost rates. The TOL of the City as well as what the City’s TOL
would be if it were recalculated using healthcare cost trend rates that are one percentage point lower or one percentage
point higher than the current healthcare cost trend rate follows:
1% Decrease in 1% Increase in
Trend Rates Trend Rates Trend Rates
Trend rate 7.00 % 8.00 % 9.00 %
Total OPEB Liability $ 4,080,362 $ 4,698,468 $ 5,587,577
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
66
For the year ended June 30, 2025, the City recognized OPEB expense of $465,875. At June 30, 2025, the City reported
deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience $ — $ 746,786
Assumption changes 647,424 648,167
$ 647,424 $ 1,394,953
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEBs will be recognized
in OPEB expense as follows:
Years Ended June 30,OPEB Expense Amount
2026 $ (6,782)
2027 (229,532)
2028 (300,935)
2029 (128,308)
2030 (81,972)
The June 30, 2025, year-end OPEB cost is reported in the City’s funds as follows:
Governmental Activities
General government $ 76,314
Public safety 137,445
Public works 53,141
Public health and welfare 119,345
Total governmental activities 386,245
Business-type Activities
Water 27,249
Wastewater 20,777
Solid waste 20,297
Parking 4,914
Stormwater 6,393
Total business-type activities 79,630
Total Primary Government $ 465,875
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
67
Actuarial Methods and Assumptions
The City’s actuarial valuation is completed on a biennial frequency, provided no significant events have occurred warranting
new measurement. The City completed the valuation for fiscal year 2025. As of July 1, 2024, the most recent valuation date,
the City’s total OPEB liability was determined using the following actuarial assumptions:
The following key assumptions were chosen by the City:
•Discount Rate: 3.97% for determining fiscal 2025 liability and expense.
•Inflation Rate: 2.5% long-term.
•Expected Real Rate of Return on Assets: N/A
•Health Care Claim and Contribution Trend Rates: 8.00% initial in fiscal 2025 and 5.0% ultimate in fiscal 2045.
•Average Salary Increase: Not applicable.
•Retirement Rates: Based on actuarial valuation for statewide retirement systems as of June 30, 2024
•Retiree Participation Rate: 35% of future eligible retirees are assumed to participate in the Plan upon retirement.
80% of retirees are assumed to elect the same medical plan upon retirement that they have while being employed
and 20% are assumed to elect the HDHP plan.
•Lapse Rate: 15% per year
•Marriage Assumption: 60% of all future eligible retired employees are assumed to be married at retirement and
elect spousal coverage. Husbands are assumed to be three years older than their wives.
The discount rate was based on a yield or index rate for a 20-year, tax-exempt, general obligation municipal bond with an
average rating of AA/Aa or higher. Rates were taken from the Fidelity 20-year GO AA Bond index as of the measurement
dates.
Mortality rates were based on the Pub-2010 Public Retirement Plan Public Safety mortality table projected generationally
with Scale MP-2021 for MPORS and FURS (Police and Fire, respectively) and Pub-2010 Public Retirement Plans General
mortality table projected generationally with Scale MP-2021 for PERS (all other employees).
The medical trend rate table was reset in fiscal 2025.
This report constitutes the only analysis and presentation of the City’s post-employment benefit plan. There is no separate,
audited GAAP-basis post-employment benefit plan report.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
68
Note 11 - Defined Benefit Pension Plans
All City of Bozeman full-time employees participate in one of three statewide, cost-sharing, multiple-employer, retirement
benefit plans administered by the Public Employees Retirement Division (PERD). Contributions to the three plans are as
required by State statute. Fiscal years 2025 and 2024 total payroll and covered payroll for all retirement plans were
$37,564,949 and $34,780,786, respectively. Financial information for all three plans is reported in the Public Employees'
Retirement Board's published Annual Comprehensive Financial Report for the fiscal year-end. It is available from the PERD
at 100 North Park Avenue, Suite 220, P.O. Box 200131, Helena, MT 59620-0131. The authority to establish, amend, and
provide cost of living adjustments to all three plans is assigned to the State legislature. The authority to establish and
amend contribution rates to all three plans is also assigned to the State legislature.
For the year ended December 31, 2025 the City reported its proportionate share of net pension liabilities, deferred outflows
of resources, deferred inflows of resources, and pension expense for each of the plans as follows:
Deferred
Outflows of
Resources
Net Pension
Liability
Deferred Inflows
of Resources Pension Expense
PERS $ 6,158,520 $ 28,751,835 $ 639,363 $ 4,165,726
FURS 1,749,077 3,048,787 73,469 737,074
MPORS 1,262,279 6,839,924 139,909 1,011,408
Total all plans $ 9,169,876 $ 38,640,546 $ 852,741 $ 5,914,208
Public Employees’ Retirement System (PERS)
In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non-employer
contributing entity are required to recognize and report certain amounts associated with participation in the Public
Employees’ Retirement System Defined Benefit Retirement Plan (the Plan). This includes the proportionate share of the
collective Net Pension Liability; Pension Expense; and Deferred Outflows and Deferred Inflows of Resources associated with
pensions. Employers are provided guidance in GASB Statement 68, paragraph 74, where pension amounts must be
combined as a total or aggregate for reporting, whether provided through cost-sharing, single-employer, or agent plans.
These disclosures provide information for employers who are using a June 30, 2024, measurement date for the 2025
reporting.
Summary of Significant Accounting Policies
The Montana Public Employee Retirement Administration (MPERA) prepares its financial statements using the accrual basis
of accounting. The same accrual basis was used by MPERA for the purposes of determining the Net Pension Liability (TPL);
Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions; Pension Expense; the Fiduciary Net
Position; and Additions to or Deductions from Fiduciary Net Position. Member contributions are recognized in the period in
which contributions are due. Employer contributions are recognized when due and the employer has made a formal
commitment to provide the contributions. Revenues are recognized in the accounting period they are earned and become
measurable. Benefit payments and refunds are recognized in the accounting period in which they are due and payable in
accordance with the benefit terms. Expenses are recognized in the period incurred. Investments are reported at fair value.
MPERA adhered to all accounting principles generally accepted by the United States of America. MPERA applied all
applicable pronouncements of the Governmental Accounting Standards Board (GASB).
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
69
General Information about the Pension Plan
Plan Description
The PERS-Defined Benefit Retirement Plan (DBRP), administered by the Montana Public Employee Retirement
Administration (MPERA), is a multiple-employer, cost-sharing plan established July 1, 1945, and governed by Title 19,
chapters 2 & 3, Montana Code Annotated (MCA). This plan provides retirement benefits to covered employees of the State,
and local governments, and certain employees of the Montana University System, and school districts. Benefits are
established by state law and can only be amended by the Legislature.
All new members are initially members of the PERS-DBRP and have a 12-month window during which they may choose to
remain in the PERSDBRP or join the PERS-DCRP by filing an irrevocable election. Members may not be participants of both
the defined benefit and defined contribution retirement plans. All new members from the universities also have a third
option to join the university system’s Montana University System Retirement Program (MUS-RP).
Benefits Provided
The PERS-DBRP provides retirement, disability, and death benefits to plan members and their beneficiaries. Benefits are based on eligibility, years of service, and highest average compensation (HAC). Member rights are vested after five years of service.
Retirement benefits are as follows:
Service retirement:
•Hired prior to July 1, 2011:◦Age 60, 5 years of membership service◦Age 65, regardless of membership service◦Any age, 30 years of membership service•Hired on or after July 1, 2011:◦Age 65, 5 years of membership service◦Age 70, regardless of membership service
Early Retirement:
•Hired prior to July 1, 2011:◦Age 50, 5 years of membership service◦Any age, 25 years of membership service•Hired on or after July 1, 2011:◦Age 55, 5 years of membership service
Second Retirement (requires returning to PERS-covered employer or PERS service):
•Retired before January 1, 2016, and accumulate less than 2 years additional service credit or retired on or after January 1, 2016, and accumulate less than 5 years additional service credit:◦A refund of member’s contributions plus return interest (currently 2.02% effective July 1, 2018).◦No service credit for second employment.◦ Start the same benefit amount the month following termination; and◦Guaranteed Annual Benefit Adjustment (GABA) starts again in the January immediately following the second retirement.•Retired before January 1, 2016, and accumulate at least 2 years of additional service credit:◦A recalculated retirement benefit based on provisions in effect after the initial retirement; and◦GABA starts on the recalculated benefit in the January after receiving the new benefit for 12 months.•Retired on or after January 1, 2016, and accumulate 5 or more years of service credit:◦The same retirement as prior to the return to service.◦A second retirement benefit as prior to the second period of service based on laws in effect upon the rehire date; and◦GABA starts on both benefits in the January after receiving the original and the new benefit for 12 months.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
70
Member’s highest average compensation (HAC)
•Hired prior to July 1, 2011, highest average compensation during any consecutive 36 months.•Hired on or after July 1, 2011 – highest average compensation during any consecutive 60 months.
Compensation Cap
•Hired on or after July 1, 2013 – 110% annual cap on compensation considered as a part of a member’s highest average compensation.
Monthly benefit formula
•Members hired prior to July 1, 2011◦Less than 25 years of membership service: 1.785% of HAC per year of service credit;◦25 years of membership service or more: 2% of HAC per year of service credit.•Members hired on or after July 1, 2011◦Less than 10 years of membership service: 1.5% of HAC per year of service credit;◦10 years or more, but less than 30 years of membership service: 1.785% of HAC per year of service credit;◦30 years or more of membership service: 2% of HAC per year of service credit.
Guaranteed Annual Benefit Adjustment (GABA): After the member has completed 12 full months of retirement, the member’s benefit increases by the applicable percentage (provided below) each January, inclusive of all other adjustments to the member’s benefit.
•3.0% for members hired prior to July 1, 2007•1.5% for members hired between July 1, 2007, and June 30, 2013•Members hired on or after July 1, 2013:◦1.5% for each year PERS is funded at or above 90%;◦1.5% reduced by 0.1% for each 2.0% PERS is funded below 90%; and◦0% whenever the amortization period for PERS is 40 years or more.
Contributions
The State Legislature has the authority to establish and amend contribution rates. Member and employer contribution rates
are specified by Montana Statute and are a percentage of the member’s compensation. Contributions are deducted from
each member’s salary and remitted by participating employers.
Special Funding: The state of Montana, as the non-employer contributing entity, paid to the Plan, additional contributions
that qualify as special funding. Those employers who received special funding are all participating employers.
Not Special Funding: Per Montana law, state agencies and universities paid their own additional contributions. The
employer paid contributions are not accounted for as special funding for state agencies and universities but are reported as
employer contributions.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
71
Member and employer contribution rates are shown in the table below.
Member State & University Local Government Local Government
Fiscal Year Hired <07/01/2011 Hired >07/01/2011 Employer Employer State Employer State
2025 7.900%7.900%9.170%9.070%0.100%8.800%0.370%
2024 7.900%7.900%9.170%9.070%0.100%8.800%0.370%
2023 7.900%7.900%9.070%8.970%0.100%8.700%0.370%
2022 7.900%7.900%8.970%8.870%0.100%8.600%0.370%
2021 7.900%7.900%8.870%8.770%0.100%8.500%0.370%
2020 7.900%7.900%8.770%8.670%0.100%8.400%0.370%
2019 7.900%7.900%8.670%8.570%0.100%8.300%0.370%
2018 7.900%7.900%8.570%8.470%0.100%8.200%0.370%
2017 7.900%7.900%8.470%8.370%0.100%8.100%0.370%
2016 7.900%7.900%8.370%8.270%0.100%8.000%0.370%
2015 7.900%7.900%8.270%8.170%0.100%7.900%0.370%
2014 7.900%7.900%8.170%8.070%0.100%7.800%0.370%
2012-2013 6.900%7.900%7.170%7.070%0.100%6.800%0.370%
2010-2011 6.900%N/A 7.170%7.070%0.100%6.800%0.370%
2008-2009 6.900%N/A 7.035%6.935%0.100%6.800%0.235%
2000-2007 6.900%N/A 6.900%6.800%0.100%6.800%0.100%
Member contributions to the system of 7.9% are temporary and will be decreased to 6.9% on January 1 following actuary
valuation results that show the amortization period has dropped below 25 years and would remain below 25 years
following the reduction of both the additional employer and additional member contribution rates.
Employer contributions to the system:
•Effective July 1, 2014, following the 2013 Legislative session, PERS-employer contributions increase an additional
0.1% a year and will continue over 10 years through 2024. The additional employer contributions including the 0.27%
added in 2007 and 2009, will terminate on January 1 following actuary valuation results that show the amortization
period has dropped below 25 years and would remain below the 25 years following the reduction of both the
additional employer and additional member contributions rates.
•Effective July 1, 2013, employers are required to make contributions on working retirees’ compensation. Member
contributions for working retirees are not required.
•The portion of employer contributions allocated to the Plan Choice Rate (PCR) are included in the employers
reporting. The PCR was paid off effective March 2016 and the contributions previously directed to the PCR are now
directed to member accounts.
Non-Employer Contributions:
Special Funding
•The state contributed 0.1% of members’ compensation on behalf of local government entities.
•The state contributed 0.37% of members’ compensation on behalf of school district entities.
•The state contributed a Statutory Appropriation from the General Fund of $35,239,705.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
72
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
GASB Statement 68 allows a measurement date of up to 12 months before the employer’s fiscal year-end. The basis for the
Total Pension Liability (TPL) as of June 30, 2024, is on an actuarial valuation performed by the Plan’s actuary as of June 30,
2024.
The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate
shares of the employer’s and the State of Montana’s NPL for June 30, 2025 and 2024 reporting dates, are displayed below.
The employer’s proportionate share equals the ratio of the employer’s contributions to the sum of all employer and non-
employer contributions during the measurement period. The state’s proportionate share for a particular employer equals
the ratio of the contributions for the particular employer to the total state contributions paid. The employer recorded a
liability of $28,751,835 and the employer’s proportionate share was 1.132764%.
Net Pension Liability as of Percent of Collective NPL as of Change in
6/30/2025 6/30/2024 6/30/2025 6/30/2024 Percent of
Date Date Date Date Collective NPL
City Proportionate Share $ 28,751,835 $ 27,643,462 1.175578 % 1.132764 % 0.042814 %
State of Montana Proportionate
Share associated with the City 7,518,644 7,678,503 0.307415 % 0.314647 % -0.007232 %
Total $ 36,270,479 $ 35,321,965 1.482993 % 1.447411 % 0.035582 %
Changes in actuarial assumptions and methods: There have been no changes to the assumptions or other inputs that
affected the measurement of the TPL since the previous measurement date.
Changes in benefit terms: There have been no changes in benefit terms since the previous measurement date.
Changes in proportionate share: There were no changes to the Plan between the measurement date of the collective NPL
and the employer’s reporting date that are expected to have a significant effect on the employer’s proportionate share of
the collective NPL.
Pension Expense: At June 30, 2025, the reporting date, the employer recognized a Pension Expense of $4,165,726 for its
proportionate share of the Plan’s pension expense. The employer also recognized grant revenue of $402,933 for the
support provided by the State of Montana for its proportionate share of the pension expense associated with the employer.
At June 30, 2025, the reporting date, the employer reported its proportionate share of the Plan’s deferred outflows of
resources and deferred inflows of resources from the following sources:
Outflows of
Resources
Inflows of
Resources
Expected vs actual experience $ 1,452,962 $ —
Project investment earnings vs. actual investment earnings — 639,363
Changes in assumptions —
Changes in proportion and differences between employer contributions and proportionate
share of contributions 2,483,643 —
City contributions subsequent to the measurement date 2,221,915 —
$ 6,158,520 $ 639,363
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
73
The $2,221,915 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June
30, 2026.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
For the Reporting Year
Ended June 30,
Recognition of Deferred Outflows and Deferred Inflows in Future
Years as an Increase (Decrease) to Pension Expense
2026 $ 1,783,944
2027 2,238,126
2028 (449,476)
2029 (275,352)
Actuarial Assumptions: The total pension liability measured as of June 30, 2024, for the June 30, 2025 reporting date, was
determined on the results of an actuarial valuation date of June 30, 2024, using the following actuarial assumptions, applied
to all periods included in the measurement. Among those assumptions were the following:
Investment return (net of pension plan investment expense, including inflation)7.30%
General wage growth*
*includes inflation at
3.50%
2.75%
Merit increases 0% to 4.80%
Postretirement Benefit Increases
Guaranteed Annual Benefit Adjustment (GABA) each January
After the member has completed 12 full months of retirement, the member's benefit
increases by the applicable percentage (below) each January, inclusive of all other
adjustments to the member's benefit.
Members hired prior to July 1, 2007 3.00%
Members hired between July 1, 2007 & June 30, 2013 1.50%
Members hired on or after July 1, 2013
For each year PERS is funded at or above 90%1.50%
The 1.5% is reduced by 0.1% for each 2.0%
PERS is funded below 90%
Whenever the amortization period for PERS is 40 years or more —%
The actuarial assumptions and methods utilized in the June 30, 2024 valuation were developed in the five-year experience
study for the period ending 2021. However, the current long-term rate of return is based on analysis in the experience
study, without consideration for the administrative expenses analysis shown in the experience study.
Discount Rate: The discount rate used to measure the TPL was 7.30%. The projection of cash flows used to determine the
discount rate assumed that contributions from participating plan members, employers, and non-employer contributing
entities would be made based on the Board’s funding policy, which established the contractually required rates under the
Montana Code Annotated. The state contributed 0.10% of the salaries paid by local governments and 0.37% paid by school
districts. In addition, the state contributed a statutory appropriation from the General Fund. Based on those assumptions,
the Plan’s fiduciary net position was projected to be adequate to make all the projected future benefit payments of current
plan members through the year 2127. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in
the discount rate.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
74
Target Allocations: The long-term expected rate of return on pension plan investments is reviewed as part of regular
experience studies prepared for the Plan about every five years. The long-term rate of return as of June 30, 2024, is based
on analysis in the experience study report dated May 2, 2022, without consideration for the administrative expense analysis
shown. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical
data, estimates inherent in current market data, and an analysis in which best-estimate ranges of expected future real rates
of return (expected returns, net of investment expense and inflation), along with estimates of variability and correlations
for each asset class. These ranges were combined to develop the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The
assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change absent a significant
change in the asset allocation, a change in the underlying inflation assumption, or a fundamental change in the market that
alters expected returns in future years.
The target asset allocation and best estimates of arithmetic real rates of return for each major asset class as of the most
recent experience study, are summarized in the following table.
Asset Class Target Asset Allocation
Long-Term Expected
Real Rate of Return
Arithmetic Basis
Cash 3.0 %(0.33%)
Domestic Equity 30.0 %5.90%
International Equity 17.0 %7.14%
Private Investments 15.0 %9.13%Real Assets 5.0 %4.03%
Real Estate 9.0 %5.41%
Core Fixed Income 15.0 %1.14%
Non-Core Fixed Income 6.0 %3.02%Total 100.0 %
Sensitivity of the proportionate share of the net pension liability to changes in the discount rate: The following presents the
employer’s sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a
significant change in the liability. The NPL was calculated using the discount rate of 7.30%, as well as what the TPL would be
if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate.
1.0% Decrease
(6.30%)
Current Discount
Rate
1.0% Increase
(8.30%)
City's proportionate share of the net pension liability $ 41,913,943 $ 28,751,835 $ 17,714,764
PERS Disclosure for the defined contribution plan
The City contributed to the state of Montana Public Employee Retirement System Defined Contribution Retirement Plan
(PERS-DCRP) for employees that have elected the DCRP. The PERS-DCRP is administered by the PERB and is reported as a
multiple employer plan established July 1, 2002, and governed by Title 19, chapters 2 & 3, MCA.
All new PERS members are initially members of the PERS-DBRP and have a 12-month window during which they may
choose to remain in the PERS-DBRP or join the PERS-DCRP by filing an irrevocable election. Members may not be
participants of both the defined benefit and defined contribution retirement plans.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
75
Member and employer contribution rates are specified by state law and are a percentage of the member’s compensation.
Contributions are deducted from each member’s salary and remitted by participating employers. The state Legislature has
the authority to establish and amend contribution rates.
Benefits are dependent upon eligibility and individual account balances. Participants are vested immediately in their own
contributions and attributable income. Participants are vested after 5 years of membership service for the employer’s
contributions to individual accounts and the attributable income. Non-vested contributions are forfeited upon termination
of employment per 19-3-2117(5), MCA. Such forfeitures are used to cover the administrative expenses of the PERS-DCRP.
At the plan level for the measurement period ended June 30, 2024, the PERS-DCRP employer did not recognize any net
pension liability or pension expense for the defined contribution plan. Plan level non-vested forfeitures for the 351
employers that have participants in the PERS-DCRP totaled $1,345,278.
Pension Plan Fiduciary Net Position
The stand-alone financial statements of the Montana Public Employees Retirement Board (PERB) Annual Comprehensive
Financial Report (ACFR) and the GASB 68 Report disclose the Plan’s fiduciary net position. These reports, as well as the
actuarial valuations and experience study, are available from the PERB at PO Box 200131, Helena MT 59620-0131, (406)
444-3154 or are available on the MPERA website at https://mpera.mt.gov/about/annualreports1/annualreports.
Firefighters’ Unified Retirement System (FURS)
In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non-employer
contributing entity are required to recognize and report certain amounts associated with participation in the Firefighters’
Unified Retirement System (the Plan). This includes the proportionate share of the collective Net Pension Liability; Pension
Expense; and Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers are provided
guidance in GASB Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate for
reporting, whether provided through cost-sharing, single-employer, or agent pension plans. These disclosures provide
information for employers who are using a June 30, 2024 measurement date for the 2025 reporting.
Summary of Significant Accounting Policies
MPERA prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA for
the purposes of determining the Net Pension Liability (TPL); Deferred Outflows of Resources and Deferred Inflows of
Resources related to pensions; Pension Expense; the Fiduciary Net Position; and Additions to or Deductions from Fiduciary
Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions
are recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are
recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are
recognized in the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are
recognized in the period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles
generally accepted by the United States of America. MPERA applied all applicable pronouncements of the Governmental
Accounting Standards Board (GASB).
General Information about the Pension Plan
Plan Description: The Firefighters’ Unified Retirement System (FURS), administered by the Montana Public Employee
Retirement Administration (MPERA), is a multiple-employer, cost-sharing defined benefit plan established in 1981, and
governed by Title 19, chapters 2 & 13, Montana Code Annotated (MCA). This plan provides retirement benefits to
firefighters employed by first- and second-class cities, other cities and rural fire district departments that adopt the plan,
and to firefighters hired by the Montana Air National Guard on or after October 1, 2001. Benefits are established by state
law and can only be amended by the Legislature.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
76
Benefits provided: The FURS provides retirement, disability, and death benefits to plan members and their beneficiaries.
Benefits are based on eligibility, years of service, and highest average compensation (HAC). Member rights are vested after
five years of service.
Service retirement and monthly benefit formula:
•Hired on or after July 1, 1981, or member has elected to be covered by GABA:
◦20 years of membership service, regardless of age
◦2.5% of HAC times years of service credit
•Hired prior to July 1, 1981, and not elected to be covered by GABA, the greater of above or:
◦If membership service is less than 20 years: 2% of the highest monthly compensation (HMC) for each year of
service credit;
◦If membership service is greater than or equal to 20 years: 50% of HMC plus 2% of HMC for each year of service
credit in excess of 20
•Early retirement: Age 50 with 5 years of membership service - Normal retirement benefit calculated using HAC and
service credit
Second Retirement (applies to retirement system members re-employed in a FURS position on or after July 1, 2017):
•If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit
before terminating again, the member:
◦is not awarded service credit for the period of reemployment;
◦is refunded the accumulated contributions associated with the period of reemployment;
◦starting the first month following termination of service, receives the same retirement benefit previously paid to
the member; and
◦does not accrue post-retirement benefit adjustments during the term of reemployment but receives a
Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement.
•If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit
before terminating again, the member:
◦is awarded service credit for the period of reemployment;
◦starting the first month following termination of service, receives:
▪the same retirement benefit previously paid to the member; and
▪a second retirement benefit for the period of reemployment calculated based on the laws in effect as of the
members’ rehire date, and
◦does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA:
▪on the initial retirement benefit in January immediately following second retirement, and
▪on the second retirement benefit starting in January after receiving that benefit for at least 12 months.
•A member who returns to covered service is not eligible for a disability benefit.
Member’s compensation period used in benefit calculation:
•Hired prior to July 1, 1981, and not electing GABA: highest monthly compensation (HMC);
•Hired after June 30, 1981, and those electing GABA: highest average compensation (HAC) during any consecutive
36 months (or shorter period of total service).
•Part-time firefighter: 15% of regular compensation of a newly confirmed full-time firefighter.
Compensation Cap
•Hired on or after July 1, 2013 – 110% annual cap on compensation considered as a part of a member’s highest
average compensation.
Guaranteed Annual Benefit Adjustment (GABA)
•Hired on or after July 1, 1997, or those electing GABA, and has been retired for at least 12 months – the member’s
benefit increases by 3.0% each January.
Minimum Benefit Adjustment (non-GABA)
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
77
•A member with 10 or more years of membership service who has not elected to be covered under GABA – the
minimum benefit provided may not be less than 50% of the monthly compensation paid to a newly confirmed
active firefighter of the employer that last employed the member as a firefighter in the current fiscal year.
Contributions: The State Legislature has the authority to establish and amend contribution rates to the plan. Member and
employer contribution rates are specified by Montana Statute and are a percentage of the member’s compensation.
Contributions are deducted from each member’s salary and remitted by participating employers.
Special Funding: MCA 19-13-604 requires the State of Montana to contribute a percentage of total compensation directly to
the Plan annually after the end of each fiscal year. Member, Employer and State contribution rates are shown in the table
below.
Member
Fiscal Year Non-GABA GABA Employer State
1998 – 2025 9.500%10.700%14.360%32.610%
1997 7.800%N/A 14.360%32.610%
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
GASB Statement 68 allows a measurement date of up to 12 months before the employer’s fiscal year-end. The basis for the
Total Pension Liability (TPL) as of June 30, 2024, is on an actuarial valuation performed by the Plan’s actuary as of June 30,
2024.
The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate
shares of the employer’s and the State of Montana’s NPL for June 30, 2025 and 2024 reporting dates are displayed below.
The employer’s proportionate share equals the ratio of the employer’s contributions to the sum of all employer and non-
employer contributions during the measurement period. Due to the existence of the special funding situation, the state is
required to report a proportionate share of a local government’s collective NPL that is associated with the non-state
employer. The state’s proportionate share for a particular employer equals the ratio of the contributions for the particular
employer to the total state contributions paid. The employer recorded a liability of $3,048,787 and the employer’s
proportionate share was 2.2506%.
Net Pension Liability as of Percent of Collective NPL as of Change in
June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Percent of
Date Date Date Date Collective TPL
City Proportionate Share $ 3,048,787 $ 3,335,681 2.2506 % 2.2094 % 0.0412 %
State of Montana Proportionate
Share associated with the City 6,916,930 7,570,801 5.1060 % 5.0144 % 0.0916 %
Total $ 9,965,717 $ 10,906,482 7.3566 % 7.2238 % 0.1328 %
Changes in actuarial assumptions and methods: There have been no changes to the actuarial assumptions or other inputs
that affected the measurement of the TPL since the previous measurement date.
Changes in benefit terms: There have been no changes in benefit terms since the previous measurement date.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
78
Changes in proportionate share: There were no changes to the Plan between the measurement date of the collective NPL
and the employer’s reporting date that are expected to have a significant effect on the employer’s proportionate share of
the collective NPL.
Pension Expense: At June 30, 2025, the reporting date, the employer recognized its proportionate share of the Plan’s
pension expense of 737,074. The employer also recognized grant revenue of $1,713,909 for the support provided by the
State of Montana for its proportionate share of the pension expense that is associated with the employer.
Recognition of Deferred Inflows and Outflows: At June 30, 2025, the reporting date, the employer reported its
proportionate share of the Plan’s deferred outflows of resources and deferred inflows of resources from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Expected vs actual experience $ 335,994 $ —
Project investment earnings vs. actual investment earnings — 73,469
Changes in assumptions 524,205 —
contributions and proportionate share of contributions 23,269 —
City contributions subsequent to the measurement date 865,609 —
$ 1,749,077 $ 73,469
The $864,920 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026 .
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
For the Reporting Year Ended June 30,
Recognition of Deferred Outflows and Deferred Inflows in Future
Years as an Increase (Decrease) to Pension Expense
2026 $ 118,295
2027 543,302
2028 120,429
2029 1,560
2030 26,413
Actuarial Assumptions: The total pension liability measured as of June 30, 2024, for the June 30, 2025 reporting date, was
determined on the results of an actuarial valuation date of June 30, 2024, using the following actuarial assumptions, applied
to all periods included in the measurement. Among those assumptions were the following:
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
79
Investment return (net of pension plan 7.30%
investment expense, including inflation)
General wage growth*
*includes inflation at
3.50%
2.75%
Merit increases 1.00% to 6.40%
Postretirement Benefit Increases
Guaranteed Annual Benefit Adjustment (GABA) each January
Members hired on or after July 1, 1997, or those electing
GABA (requires 12 full months of retirement before GABA 3.00%
will be made)
Minimum Benefit Adjustment (non-GABA)
Members with 10 or more yars of membership service The minimum benefit provided should
and member did not elect GABA not be less than 50% of the current base
compensation of a newly confirmed
active firefighter of the employer that
last employed the member as a fire
fighter.
The actuarial assumptions and methods utilized in the June 30, 2024 valuation, were developed in the five-year experience
study for the period ending June 30, 2021. However, the current long-term rate of return is based on analysis in the
experience study, without consideration for the administrative expense analysis shown in the experience study.
Discount Rate: The discount rate used to measure the TPL was 7.30%. The projection of cash flows used to determine the
discount rate assumed that contributions from participating plan members, employers, and non-employer contributing
entities would be made based on the Board’s funding policy, which established the contractually required rates under the
Montana Code Annotated. The state contributed 32.61% of the salaries paid by employers. Based on those assumptions,
the Plan’s fiduciary net position was projected to be adequate to make all the projected future benefit payments of current
plan members through the year 2133. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in
the discount rate.
Target Allocations: The long-term expected rate of return on pension plan investments is reviewed as part of regular
experience studies prepared for the Plan about every five years. The long-term rate of return as of June 30, 2024, is based
on analysis in the experience study report dated May 2, 2022, without consideration for the administrative expense analysis
shown. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical
data, estimates inherent in current market data, and an analysis in which best-estimate ranges of expected future real rates
of return (expected returns, net of investment expense and inflation), along with estimates of variability and correlations
for each asset class. These ranges were combined to develop the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The
assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change absent a significant
change in the asset allocation, a change in the underlying inflation assumption, or a fundamental change in the market that
alters expected returns in future years.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
80
The target asset allocation and best estimates of arithmetic real rate of return for each major asset class as of the most
recent experience study, are summarized in the following table.
Long-Term
Expected Real
Target Asset Rate of Return
Asset Class Allocation Arithmetic Basis
Cash 3.0 %(0.33%)
Domestic Equity 30.0 % 5.90 %
International Equity 17.0 % 7.14 %
Private Investments 15.0 % 9.13 %
Real Assets 5.0 % 4.03 %
Real Estate 9.0 % 5.41 %
Core Fixed Income 15.0 % 1.14 %
Non-Core Fixed Income 6.0 % 3.02 %
Total 100.0 %
Sensitivity of the proportionate share of the net pension liability to changes in the discount rate: The following presents the
employer’s sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a
significant change in the liability. The NPL was calculated using the discount rate of 7.30%, as well as what the NPL would be
if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate.
1% Decrease Current Discount 1% Increase
(6.30%)Rate (7.30%)(8.30%)
City's proportionate share of the net pension liability $ 6,024,186 $ 3,048,787 $ 673,630
Pension plan fiduciary net position: The stand-alone financial statements (76d) of the Montana Public Employees
Retirement Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan’s
fiduciary net position. The reports, as well as the actuarial valuations and experience study, are available from the PERB at
PO Box 200131, Helena MT 59620-0131, (406) 444-3154 or are available on the MPERA website at https://mpera.mt.gov/
about/annualreports1/annualreports.
Municipal Police Officers’ Retirement System (MPORS)
In accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions, employers and the non-employer
contributing entity are required to recognize and report certain amounts associated with participation in the Municipal
Police Officers’ Retirement System (the Plan). This includes the proportionate share of the collective Total Pension Liability;
Pension Expense; and Deferred Outflows and Deferred Inflows of Resources associated with pensions. Employers are
provided guidance in GASB Statement 68, paragraph 74, where pension amounts must be combined as a total or aggregate
for reporting, whether provided through cost-sharing, single-employer, or agent plans. This report provides information for
employers who are using a June 30, 2024 measurement date for the 2025 reporting.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
81
Summary of Significant Accounting Policies
MPERA prepared financial statements using the accrual basis of accounting. The same accrual basis was used by MPERA for
the purposes of determining the Net Pension Liability (NPL); Deferred Outflows of Resources and Deferred Inflows of
Resources related to pensions; Pension Expense; the Fiduciary Net Position; and Additions to or Deductions from Fiduciary
Net Position. Member contributions are recognized in the period in which contributions are due. Employer contributions
are recognized when due and the employer has made a formal commitment to provide the contributions. Revenues are
recognized in the accounting period they are earned and become measurable. Benefit payments and refunds are
recognized in the accounting period in which they are due and payable in accordance with the benefit terms. Expenses are
recognized in the period incurred. Investments are reported at fair value. MPERA adhered to all accounting principles
generally accepted by the United States of America. MPERA applied all applicable pronouncements of the Governmental
Accounting Standards Board (GASB).
General Information about the Pension Plan
Plan Description: The Municipal Police Officers’ Retirement System (MPORS), administered by the Montana Public
Employee Retirement Administration (MPERA), is a multiple-employer, cost-sharing defined benefit plan established in
1974 and governed by Title 19, chapters 2 & 9, Montana Code Annotated (MCA). This plan provides retirement benefits to
all municipal police officers employed by first- and second-class cities and other cities that adopt the plan. Benefits are
established by state law and can only be amended by the Legislature.
Deferred Retirement Option Plan (DROP): Beginning July 2002, eligible members of MPORS can participate in the DROP by
filing a one-time irrevocable election with the Board. The DROP is governed by Title 19, Chapter 9, Part 12, MCA. A member
must have completed at least twenty years of membership service to be eligible. They may elect to participate in the DROP
for a minimum of one month and a maximum of 60 months and may only participate in the DROP once. A participant
remains a member of the MPORS but will not receive membership service or service credit in the system for the duration of
the member’s DROP period. During participation in the DROP, all mandatory contributions continue to the retirement
system. A monthly benefit is calculated based on salary and years of service to date as of the beginning of the DROP period.
The monthly benefit is paid into the member’s DROP account until the end of the DROP period. At the end of the DROP
period, the participant may receive the balance of the DROP account in a lump-sum payment or in a direct rollover to
another eligible plan, as allowed by the IRS. If the participant continues employment after the DROP period ends, they will
again accrue membership service and service credit. The DROP account cannot be distributed until employment is formally
terminated.
Benefits provided: MPORS provides retirement, disability, and death benefits to plan members and their beneficiaries.
Benefits are based on eligibility, years of service, and compensation. Member rights are vested after five years of service.
Service retirement and monthly benefit formula:
•20 years of membership service, regardless of age.
•Age 50 with 5 years of membership service (Early Retirement).
•2.5% of FAC times years of service credit.
Second retirement:
Re-calculated using specific criteria for members who return to covered MPORS employment prior to July 1, 2017:
•Less than 20 years of membership service, upon re-employment, repay benefits and subsequent retirement is based
on total MPORS service.
•More than 20 years of membership service, upon re-employment, receives initial benefit and a new retirement
benefit based on additional service credit and FAC after re-employment.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
82
Applies to retirement system members re-employed in a MPORS position on or after July 1, 2017:
•If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit
before terminating again, the member:
◦is not awarded service credit for the period of reemployment;
◦is refunded the accumulated contributions associated with the period of reemployment;
◦starting the first month following termination of service, receives the same retirement benefit previously paid to
the member; and
◦does not accrue post-retirement benefit adjustments during the term of reemployment but receives a
Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement.
•If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit
before terminating again, the member:
◦is awarded service credit for the period of reemployment;
◦starting the first month following termination of service, receives:
▪the same retirement benefit previously paid to the member, and
▪a second retirement benefit for the period of reemployment calculated based on the laws in effect as of the
members rehire date; and
◦does not accrue post-retirement benefit adjustments during the term of reemployment but receives a GABA:
▪on the initial retirement benefit in January immediately following second retirement, and
▪on the second retirement benefit starting in January after receiving that benefit for at least 12 months.
•A member who returns to covered service is not eligible for a disability benefit.
Member’s final average compensation (FAC)
•Hired prior to July 1, 1977 - average monthly compensation of final year of service;
•Hired on or after July 1, 1977 - final average compensation (FAC) for last consecutive 36 months.
Compensation Cap
•Hired on or after July 1, 2013: 110% annual cap on compensation considered as a part of a member’s FAC.
Guaranteed Annual Benefit Adjustment (GABA)
•Hired on or after July 1, 1997, or those electing GABA, and has been retired for at least 12 months, a GABA will be
made each year in January equal to 3%.
Minimum benefit adjustment (non-GABA)
•The minimum benefit provided may not be less than 50% of the compensation paid to a newly confirmed police
officer of the employer that last employed the member as a police officer in the current fiscal year.
Contributions: The State Legislature has the authority to establish and amend contribution rates to the plan. Member and
employer contribution rates are specified by Montana Statute and are a percentage of the member’s compensation.
Contributions are deducted from each member’s salary and remitted by participating employers.
Special Funding: MCA 19-9-702 requires the State of Montana to contribute a percentage of total compensation directly to
the Plan annually after the end of each fiscal year. Member, Employer and State contribution rates are shown in the table
below.
Member
Hired before Hired after Hired after Hired after
Fiscal Year 7/1/1975 6/30/1975 6/30/1979 6/30/1997 GABA Employer State
2000 - 2025 5.800%7.000%8.500%9.000%14.410%29.370%
1998 - 1999 7.800%9.000%10.500%11.000%14.410%29.370%
1997 7.800%9.000%10.500%14.360%29.370%
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
83
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
GASB Statement 68 allows a measurement date of up to 12 months before the employer’s fiscal year-end. The basis for the
Total Pension Liability (TPL) as of June 30, 2024, is on an actuarial valuation performed by the Plan’s actuary as of June 30,
2024.
The Total Pension Liability (TPL) minus the Fiduciary Net Position equals the Net Pension Liability (NPL). The proportionate
shares of the employer’s and the State of Montana’s NPL for June 30, 2025 and 2024 reporting dates are displayed below.
The employer’s proportionate share equals the ratio of the employer’s contributions to the sum of all employer and non-
employer contributions during the measurement period. Due to the existence of the special funding situation, the state is
required to report a proportionate share of a local government’s collective TPL that is associated with the non-state
employer. The state’s proportionate share for a particular employer equals the ratio of the contributions for the particular
employer to the total state contributions paid. The employer recorded a liability of $6,839,924 and the employer’s
proportionate share was 3.0591%.
Net Pension Liability as of Percent of Collective NPL as of Change in
June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Percent of
Reporting Date Reporting Date Reporting Date Reporting Date Collective TPL
City Proportionate Share $ 6,839,924 $ 7,049,339 3.0591 % 3.0406 % 0.0185 %
State of Montana Proportionate
Share associated with the City 13,910,325 14,227,120 6.2213 % 6.1366 % 0.0847 %
Total $ 20,750,249 $ 21,276,459 9.2804 % 9.1772 % 0.1032 %
Changes in actuarial assumptions and methods: There have been no changes to the actuarial assumptions or other inputs
that affected the measurement of the TPL since the previous measurement date.
Changes in benefit terms: There have been no changes in benefit terms since the previous measurement date.
Changes in proportionate share: There were no changes to the Plan between the measurement date of the collective NPL
and the employer’s reporting date that are expected to have a significant effect on the employer’s proportionate share of
the collective NPL.
Pension Expense: At June 30, 2025, the reporting date, the employer recognized its proportionate share of the Plan’s
pension expense of $1,011,408. The employer also recognized grant revenue of $1,978,164.00 for the support provided by
the State of Montana for its proportionate share of the pension expense associated with the employer.
Recognition of Deferred Inflows and Outflows: June 30, 2025, the reporting date, the employer reported its proportionate
share of the Plan’s deferred outflows of resources and deferred inflows of resources from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Expected vs actual experience $ 147,578 $ —
Project investment earnings vs. actual investment earnings — 93,676
Changes in assumptions — 46,233
Changes in proportion and differences between employer
contributions and proportionate share of contributions 100,292 —
City contributions subsequent to the measurement date 1,014,409
$ 1,262,279 $ 139,909
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
84
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
For the Reporting Recognition of Deferred Outflows and Deferred Inflows in
Year Ended June 30, Future Years as an Increase (Decrease) to Pension Expense
2026 $ (158,391)
2027 377,611
2028 (51,029)
2029 (60,230)
Actuarial Assumptions: The total pension liability measured as of June 30, 2024, for the June 30, 2025 reporting date, was
determined on the results of an actuarial valuation date of June 30, 2024, using the following actuarial assumptions, applied
to all periods included in the measurement. Among those assumptions were the following:
Investment return (net of pension plan 7.30%
investment expense, including inflation)
General wage growth*
*includes inflation at
3.50%
2.75%
Merit increases 1.0% to 6.4%
Postretirement Benefit Increases
Guaranteed Annual Benefit Adjustment (GABA) each January
Members hired on or after July 1, 1997, or those electing
GABA (requires 12 full months of retirement before GABA 3.00%
will be made)
Minimum Benefit Adjustment (non-GABA) Benefit for a retired
member or member's survivor and member did not elect GABA
The minimum benefit provided should not
be less than 50% of the monthly
compensation paid to a newly confirmed
police officer of the employer
that last employed the member as a police
officer
The actuarial assumptions and methods utilized in the June 30, 2024 valuation were developed in the five-year experience
study for the period ending June 30, 2021. However, the current long-term rate of return is based on analysis in the
experience study, without consideration for the administrative expenses analysis shown in the experience study.
Discount Rate: The discount rate used to measure the TPL was 7.30%. The projection of cash flows used to determine the
discount rate assumed that contributions from participating plan members, employers, and non-employer contributing
entities would be made based on the Board’s funding policy, which established the contractually required rates under the
Montana Code Annotated. The state contributed 29.37% of the salaries paid by employers. Based on those assumptions,
the Plan’s fiduciary net position was projected to be adequate to make all the projected future benefit payments of current
plan members through the year 2134. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the TPL. A municipal bond rate was not incorporated in
the discount rate.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
85
Target Allocations: The long-term expected rate of return on pension plan investments is reviewed as part of regular
experience studies prepared for the Plan about every five years. The long-term rate of return as of June 30, 2024 is based
on analysis in the experience study report dated May 2, 2022, without consideration for the administrative expense analysis
shown. Several factors are considered in evaluating the long-term rate of return assumption including long-term historical
data, estimates inherent in current market data, and an analysis in which best-estimate ranges of expected future real rates
of return (expected returns, net of investment expense and inflation), along with estimates of variability and correlations
for each asset class. These ranges were combined to develop the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and then adding expected inflation. The
assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change absent a significant
change in the asset allocation, a change in the underlying inflation assumption, or a fundamental change in the market that
alters expected returns in future years.
The target asset allocation and best estimates of arithmetic real rates of return for each major asset class as of the most
recent experience study, are summarized in the following table.
Asset Class
Target Asset
Allocation
Long-Term Expected Real Rate of
Return Arithmetic Basis
Cash 3.0 %(0.33%)
Domestic Equity 30.0 % 5.90 %
International Equity 17.0 % 7.14 %
Private Investments 15.0 % 9.13 %
Real Assets 5.0 % 4.03 %
Real Estate 9.0 % 5.41 %
Core Fixed Income 15.0 % 1.14 %
Non-Core Fixed Income 6.0 % 3.02 %
Total 100.0 %
Sensitivity of the proportionate share of the net pension liability to changes in the discount rate: The following presents the
employer’s sensitivity of the NPL to the discount rate in the table below. A small change in the discount rate can create a
significant change in the liability. The NPL was calculated using the discount rate of 7.30%, as well as what the NPL would be
if it were calculated using a discount rate 1.00% lower or 1.00% higher than the current rate.
1% Decrease Discount 1% Increase
(6.30%)Rate (7.30%)(8.30%)
City's proportionate share of the net pension liability $ 10,891,702 $ 6,839,924 $ 3,621,634
Pension plan fiduciary net position: The stand-alone financial statements of the Montana Public Employees Retirement
Board (PERB) Annual Comprehensive Financial Report (ACFR) and the GASB 68 Report disclose the Plan’s fiduciary net
position. These reports, as well as the actuarial valuations and experience study, are available from the PERB at PO Box
200131, Helena MT 59620-0131, (406) 444-3154 or are available on the MPERA website at https://mpera.mt.gov/about/
annualreports1/annualreports.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
86
Note 12 - Interfund Activity
Interfund receivables/payables are used when a fund has a cash deficit, as well as for other short-term amounts owed
between funds.
Due from other city funds Due to other city funds
Major Funds:
General Fund $ 1,411,307 $ —
Non-major Governmental Funds:
Health-Medical Insurance — 776,923
Community Development Block Grant — 1,620
Metropolitan Planning Organization — 72,167
GO Bonds Debt Service Fund — 560,597
$ 1,411,307 $ 1,411,307
Interfund advances are used to account for long-term advances between funds. A summary of the City’s interfund advances
are as follows:
Advances to other City funds Advances from other City Funds
Major Funds:
SID Debt Service Fund $ — $ 1,392,460
Non-major Governmental Funds
SID Revolving Debt Service Fund 1,392,460 —
$ 1,392,460 $ 1,392,460
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
87
Interfund Transfers
Transfers are used to (1) move revenues from the fund that statute or budgets requires to collect them to the fund that statute or budgets require to expend them,
(2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and
(3) to transfer non-restricted interest income from the permanent fund to the General Fund.
The following interfund transfers occurred during the year ended June 30, 2025:
City of Bozeman - Schedule of Transfers "IN" as of June 30, 2025
Transfer To:Transfer From:Amount Explanation
General Fund Medical Health Insurance $ 3,576,755 Health insurance premiums paid
General Fund ARPA Grant Fund 280,573 Close out fund
General Fund SID Revolving Loan Debt Service Fund 180,416 Return excess cash to General Fund
General Fund Metropolitan Planning Organization Fund 5,756 Reimbursement for administrative services
General Fund Departmental Fund 4,148 Return excess cash to General Fund
General Fund Community Development Block Grant 1,620 Reimbursement for administrative services
Total transfers to General Fund 4,049,268
Construction Capital Projects SID Debt Service 167,064 Reimbursement for special improvement district capital project
Construction Capital Projects General Fund 202,865 Per Resolution #4265 Library operating budget surplus
Construction Capital Projects General Fund 283,498 Support for capital projects
Total transfers to Capital Project Fund 653,427
SID Debt Service General Fund 13,782 Close out SID 674
Total transfer to SID Debt Service Fund 13,782
City Planning Medical Health Insurance 203,794 Health insurance premiums paid
Fire Impact Fee Construction Capital Projects 636,869 Reimbursement for debt funded capital expenditures
Community Housing General Fund 1,250,000 All purpose mill levy support for operating expenses
Metropolitan Planning Organization General Fund 19,546 Support for non-grant eligible operating costs
Departmental General Fund 459,700 Support and grant match for operating costs
Departmental Medical Health Insurance 34,139 Health insurance premiums paid
Fire Capital Construction Capital Projects 2,000,000 Reimbursement for debt funded capital expenditures
SID Revolving General Fund 167,064 Support for new SID 778
TIF Bonds Downtown Urban Renewal District 335,292 Annual bond payment
TIF Bonds North 7th Corridor TIF District 410,550 Annual bond payment
Total transfers to Non-Major Governmental Funds 5,516,954
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
88
Water ARPA Grant Fund 174,091 Support for capital projects
Water Service Fund 6,639 Reimbursement for office equipment
Solid Waste General Fund 493,443 Support for landfill monitoring
Total transfers to Major Proprietary Funds 674,173
Public Works Administration Water 43,820 Share of annual lease payment
Public Works Administration Stormwater 43,820 Share of annual lease payment
Public Works Administration Metropolitan Planning Organization 15,131
Share of annual lease payment and reimbursement for
administrative services
Medical Health Insurance General Fund 258,574 Reimbursement for health and medical expenses
Medical Health Insurance City Planning 5,232 Reimbursement for health and medical expenses
Medical Health Insurance Street Maintenance District 37,649 Reimbursement for health and medical expenses
Medical Health Insurance Tree Maintenance District 5,305 Reimbursement for health and medical expenses
Medical Health Insurance Building Inspection 19,009 Reimbursement for health and medical expenses
Medical Health Insurance Downtown Urban Renewal District 115 Reimbursement for health and medical expenses
Medical Health Insurance Community Housing 89 Reimbursement for health and medical expenses
Medical Health Insurance Departmental 2,515 Reimbursement for health and medical expenses
Medical Health Insurance North 7th Corridor TIF District 164 Reimbursement for health and medical expenses
Medical Health Insurance Northeast Urban Renewal District 49 Reimbursement for health and medical expenses
Medical Health Insurance Parks and Trails District 16,050 Reimbursement for health and medical expenses
Medical Health Insurance Water 40,051 Reimbursement for health and medical expenses
Medical Health Insurance Wastewater 30,056 Reimbursement for health and medical expenses
Medical Health Insurance Solid Waste 29,652 Reimbursement for health and medical expenses
Medical Health Insurance Parking 4,877 Reimbursement for health and medical expenses
Medical Health Insurance Stormwater 12,392 Reimbursement for health and medical expenses
Medical Health Insurance Vehicle Maintenance Shop 9,740 Reimbursement for health and medical expenses
Medical Health Insurance Service Fund 13,222 Reimbursement for health and medical expenses
Total transfers to Internal Service Funds 587,512
Total Transfers "IN"$ 11,495,116
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
89
City of Bozeman - Schedule of Transfers "OUT" as of June 30, 2025
Transfer From:Transfer To:Amount Explanation
General Fund Capital Projects $ 202,865 Per Resolution #4265 Library operating budget surplus
General Fund Capital Projects 283,498 Support for capital projects
General Fund SID Debt Service 13,782 Close out SID 674
General Fund Community Housing 1,250,000 All purpose mill levy support for operating expenses
General Fund Metropolitan Planning Organization 19,546 Support for non-grant eligible operating costs
General Fund Departmental 459,700
Support and match for operating costs not covered by grant
funding
General Fund SID Revolving 167,064 Support for SID and minimum outstanding debt requirement
General Fund Solid Waste 493,443 Support for landfill monitoring
General Fund Medical Health Insurance 258,574 Reimbursement for health and medical expenses
Total transfers from General Fund 3,148,472
Street Maintenance District Medical Health Insurance 37,649 Reimbursement for health and medical expenses
Total transfers from Street Maintenance District 37,649
Downtown Urban Renewal District TIF Bonds 335,292 Annual bond payment
Downtown Urban Renewal District Medical Health Insurance 115 Reimbursement for health and medical expenses
Total transfers from Downtown Urban Renewal District 335,407
SID Debt Service Contruction Capital Projects 167,064
Total transfers from SID Debt Service 167,064
Construction Capital Projects Fire Impact Fee 636,869
Reimbursement for estimated project cost overages upon project
completion
Construction Capital Projects Fire Capital 2,000,000
Reimbursement for estimated project cost overages upon project
completion
Total transfers from Capital Projects Fund 2,636,869
Health-Medical Insurance General Fund 3,576,755 Health insurance premiums paid
Health-Medical Insurance City Planning 203,794 Health insurance premiums paid
Health-Medical Insurance Departmental 34,139 Health insurance premiums paid
ARPA Grant Fund General Fund 280,573 Return excess cash to General Fund
ARPA Grant Fund Water 174,091 Support for capital projects
SID Revolving Loan Debt Service Fund General Fund 180,416 Return excess cash to General Fund
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
90
Metropolitan Planning Organization Fund General Fund 5,756 Reimbursement for administrative services
Metropolitan Planning Organization Fund
Public Works Administration Internal
Service Fund 15,131
Share of annual lease payment and reimbursement for
administrative services
Departmental Fund General Fund 4,148 Return excess cash to General Fund
Departmental Fund Medical Health Insurance 2,515 Reimbursement for health and medical expenses
Community Development Block Grant General Fund 1,620 Reimbursement for administrative services
City Planning Medical Health Insurance 5,232 Reimbursement for health and medical expenses
Tree Maintenance District Medical Health Insurance 5,305 Reimbursement for health and medical expenses
Building Inspection Medical Health Insurance 19,009 Reimbursement for health and medical expenses
Community Housing Medical Health Insurance 89 Reimbursement for health and medical expenses
Northeast Urban Renewal District Medical Health Insurance 49 Reimbursement for health and medical expenses
Parks and Trails District Medical Health Insurance 16,050 Reimbursement for health and medical expenses
North 7th Corridor TIF District Medical Health Insurance 164 Reimbursement for health and medical expenses
North 7th Corridor TIF District TIF Bonds 410,550 Annual bond payment
Total transfers from Non-Major Governmental Funds 4,935,386
Water Public Works Administration 43,820 Share of annual lease payment
Water Medical Health Insurance 40,051 Reimbursement for health and medical expenses
Wastewater Medical Health Insurance 30,056 Reimbursement for health and medical expenses
Solid Waste Medical Health Insurance 29,652 Reimbursement for health and medical expenses
Total transfers from Major Proprietary Funds 143,579
Stormwater Public Works Administration 43,820 Share of annual lease payment
Stormwater Medical Health Insurance 12,392 Reimbursement for health and medical expenses
Parking Medical Health Insurance 4,877 Reimbursement for health and medical expenses
Total transfers from Non-Major Proprietary Funds 61,089
Vehicle Maintenance Shop Medical Health Insurance 9,740 Reimbursement for health and medical expenses
Service Fund Medical Health Insurance 13,222 Reimbursement for health and medical expenses
Service Fund Water 6,639 Reimbursement for office equipment
Total transfers from Internal Service Funds 29,601
Total Transfers "FROM"$ 11,495,116
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
91
Note 13 - Net Position/Fund BalancesNet Investment in Capital Assets
The amounts comprising the City’s net investment in capital assets on the government-wide statement of net position are
as follows:
Governmental Business-Type
Activities Activities
Capital Assets, Net of Accumulated
Depreciation/Amortization $ 350,092,757 $ 357,078,201
Capital Related Debt (71,516,610) (37,968,720)
Capital Debt Proceeds Not Yet Expended 1,838,274 —
Capital Debt Reserve Balances 604,091 3,321,798
Retainage Payable (118,391) (249,957)
Accounts Payable Related to Capital Asset Acquisition (2,343,740) (1,483,166)
Net Investment in Capital Assets $ 278,556,381 $ 320,698,156
The amounts comprising the City’s net investment in capital assets in the enterprise funds statement of net position are
as follows:
Water Waste Water Solid Waste Nonmajor
Fund Fund Fund Enterprise Funds
Capital Assets, Net of Accumulated
Depreciation/Amortization $ 172,042,580 $ 162,125,907 $ 5,199,431 $ 17,710,283
Capital Related Debt (13,198,000) (21,477,000) (1,937,229) (1,356,491)
Capital Debt Reserve Balances 898,599 2,364,911 — 58,288
Retainage Payable (178,782) (30,158) (41,017) —
Accounts Payable Related to Capital Asset Acquisition (1,287,801) (92,654) (99,386) (3,325)
Net Investment in Capital Assets $ 158,276,596 $ 142,891,006 $ 3,121,799 $ 16,408,755
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
92
Fund Balances
The City classified fund balances within the governmental funds are as follows at June 30, 2025:
Street Downtown Other
Maintenance Renewal SID Capital Governmental
General Fund District District Debt Service Projects Funds Total
Fund Balances
Nonspendable
Cemetery perpetual care $ — $ — $ — $ — $ — $ 2,200,303 $ 2,200,303
Prepaid items 102,444 — — — — — 102,444
Total nonspendable 102,444 — — — — 2,200,303 2,302,747
Restricted
General government
Other 130,966 — — — — 238,280 369,246
Public safety
Building inspection — — — — — 2,241,361 2,241,361
Fire impact — — — — — 3,302,628 3,302,628
Victim witness — — — — — 340,737 340,737
Other — — — — — 664,202 664,202
Public service
Street impact — — — — — 22,855,519 22,855,519
Lighting districts — — — — — 303,329 303,329
Arterial and collector — 4,442,714 — — — 6,954,410 11,397,124
Other — — — — — 28,525 28,525
Public welfare
Tax increment districts 9,694,474 7,698,949 17,393,423
Economic development
loans — — — — — 971,796 971,796
Tree maintenance district — — — — — 783,624 783,624
Parks and trails — — — — — 3,208,370 3,208,370
Other — — — — — 2,484,148 2,484,148
Capital projects 1,838,274 — — — 3,345,539 — 5,183,813
Debt service
SID Sinking — — — 1,172,961 — — 1,172,961
SID Revolving Fund — — — — — 1,732,989 1,732,989
Total restricted 1,969,240 4,442,714 9,694,474 1,172,961 3,345,539 53,808,867 74,433,795
Committed
General Government — — — — — 2,737,280 2,737,280
Public welfare — — — — — 1,247,689 1,247,689
Capital projects 4,334,720 — — — — — 4,334,720
Total committed 4,334,720 — — — — 3,984,969 8,319,689
Assigned
General government 7,809,989 — 2,287 7,812,276
Public service — — — — — 1,521,783 1,521,783
Public welfare — — — — — 117,616 117,616
Total assigned 7,809,989 — — — — 1,641,686 9,451,675
Unassigned 13,307,297 — — — — (704,811) 12,602,486
Total Fund Balances $ 27,523,690 $ 4,442,714 $ 9,694,474 $ 1,172,961 $ 3,345,539 $ 60,931,014 $ 107,110,392
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
93
Note 14 - Deferred Compensation Plan
The City offers its employees a defined contribution, deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until
future years. The deferred compensation is not available to employees until termination, retirement, death, or
unforeseeable emergency. The City does not contribute to the plan, and it does not report any balances related to the
deferred compensation plan, as these amounts represent neither assets nor liabilities to the City, and the plan is
administered by an independent third party, ICMA Retirement Corporation.
Note 15 - The Street Impact Fee Fund, Water Impact Fee Fund and Wastewater Impact Fee Fund
On January 22, 1996, the City Commission adopted fire, water, waste water and street impact fees in Ordinance number
1414. The impact fees were first effective on March 23, 1996. Impact fees were set at a percentage of the cost of the
impact, to be phased out over 5 years. Beginning on March 30, 2013, all impact fees are charged at 100% of the impact.
An applicant may obtain an Impact Fee Credit by dedication of non-site-related land or construction of non-site-related
improvements. Credits must be made before the beginning of improvement construction, must comply with the City’s
Capital Improvements Program, and must be approved by the City Commission. Credits may be used only for like-type
impact fees. The full provisions for impact fee credits are contained in Chapter 3.24 of the Bozeman Municipal Code. For
proprietary type funds, the City records a liability for the impact fee credit and capitalizes the underlying asset. For
governmental-type funds, the credits are only disclosed in the footnotes. For government-wide financial reporting, the
outstanding credits are reported as unearned revenue. The Water Impact Fee Fund, Street Impact Fee Fund, and
Wastewater Impact Fee Fund have recorded impact fee credits amounting to $0, $33,232, and $114,576, respectively, for
the fiscal year ending June 30, 2025. The Fire Impact Fee Fund does not have any outstanding credits. The following impact
fee revenues were collected and expensed/expended during fiscal year 2025:
Expenses,
Beginning Expenditures,Ending
Balances Impact Fees Other Income and Transfers Balances
Fire $ 1,989,851 $ 555,148 $ 148,519 $ 609,110 $ 3,302,628
Water 24,659,618 1,962,446 609,554 (488,379) 26,743,239
Wastewater 10,082,360 1,279,337 216,341 (187,895) 11,390,143
Streets 18,202,220 5,060,073 959,870 (1,366,644) 22,855,519
Totals $ 54,934,049 $ 8,857,004 $ 1,934,284 $ (1,433,808) $ 64,291,529
Note 16 - Joint Venture Agreements
Joint ventures are legal entities or other organizations that result in a contractual arrangement and that are owned,
operated, or governed by two or more participants. Each participant retains both an ongoing financial interest and an
ongoing financial responsibility. As of June 30, 2025, the City has entered into joint venture contractual arrangements as
follows:
911 Communication Center
The City and Gallatin County, Montana (the County) have entered into an inter-local agreement for the purposes of
establishment of the operation and financing of a 911 communication services division (the Division) for dispatch and
records services, to define the relationship of the Administrative Board with the City and County, and to establish the line of
authority for personnel furnishing the communication services to the City and County and others who may contract for the
services.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
94
City-County Drug Forfeitures
The City and County have entered into an inter-local agreement for the purposes of establishment of a joint drug forfeiture
account funded from drug related forfeitures, seizures, and prosecutions of City and County law enforcement cases and to
establish an equitable means of distributing those funds to continue drug interdiction activities. The goal of the agreement
is to make the City and County Drug Enforcement operations less reliant on the general and public safety fund monies of
the City and County. The original term of the agreement was for a period of one year, beginning September 20, 2004 and
automatically renews for a period of one year until terminated by either party with written notice of intent to terminate.
Financial information regarding the joint drug forfeiture account can be obtained by contacting the City of Bozeman
Department of Finance, 411 East Main Street, Bozeman, MT 59715.
The County and City have entered into various other joint venture contractual arrangements, memorandums of
understanding and inter-local agreements to support the following programs and/or operations: Victim Witness, Hazardous
Materials, Solid Waste (Disposal and Convenient Site), Fire Warden/Chief, Evidence Technician, Library Services, Board of
Health, and rental of the Law and Justice Center. The financial interests are not material.
Montana Municipal Interlocal Authority
The City and Montana Municipal Interlocal Authority (MMIA) have entered into a 20-year agreement in December 2012 to
share up to $1 million in profits from the sale of city-owned property known as the Mandeville Farm. The agreement came
about as part of a settlement on legal claims from the City of Bozeman vs. MMIA litigation. A “profit” shall occur only when
the City has recovered its total investment in the property, which includes the original purchase price together with all
“costs of development” as defined in the settlement agreement.
Note 17 - Risk Management
The City faces a considerable number of risks of loss, including a) damage to and loss of property and contents, b) employee
torts, c) professional liability (i.e., errors and omissions), d) environmental damage, e) workers' compensation (i.e.,
employee injuries), and f) medical insurance cost of employees. A variety of methods are used to provide insurance for
these risks. Commercial policies, transferring all risks of loss except for small deductible amounts, are purchased for
property and content damage and professional liabilities. The City participates in two state-wide public risk pools operated
by the Montana Municipal Interlocal Authority (MMIA), for workers' compensation and for tort liability. Employee medical
insurance is provided through a cost-sharing multiple-employer defined benefit plan administered by MMIA. The plan offers
health, dental and vision benefits and flexible spending and health savings accounts. Given the lack of coverage available,
the City has no coverage for potential losses from environmental damages.
Commercial Policies
Coverage limits and the deductibles on the commercial policies have stayed relatively constant for the last several years.
The premiums for the policies are allocated between the City's Enterprise Funds and the General Fund. Premiums are
subsidized through a special purpose property tax levy, based on total appropriations. Settled claims resulting from these
risks did not exceed commercial insurance coverage during the three years ended June 30, 2025, 2024, and 2023.
Public Entity Risk Pools
In 1986, the City joined together with other Montana cities to form the Montana Municipal Interlocal Authority, which
established a workers' compensation plan and a tort liability plan. Both public entity risk pools currently operate as
common risk management and insurance programs for the member governments.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
95
The liability limits for damages in tort action are $750,000 per claim and $1.5 million per occurrence, and $12.5 million per
occurrence for any claim that is not subject to the limitations on governmental liability, as described in Montana Code
Annotated Section 2-9-108 (the Statute) or any successor statute, either as matter of law, by operation of the Statute, or by
a judicial determination that the Statute is inapplicable or is otherwise invalid, with $11,250 deductible per occurrence.
State tort law limits the City's liability to $1.5 million. The City pays premiums for its employee injury insurance coverage,
which is allocated to the employer funds based on total salaries and wages. The agreements for formation of the pools
provide that they will be self-sustaining through member premiums. The tort liability plan and workers' compensation
program issued debt of $4.41 million and $6.155 million, respectively, to immediately finance the necessary insurance
reserves. All members signed a contingent note for a pro rata share of this liability in case operating revenues were
insufficient to cover the debt service; the debt was retired in 2011.
The City also owns a policy with MMIA for loss or damage to property. This is an all-risk policy, essentially all property
owned by the City being insured for 100% of replacement cost, subject to a $5,000 deductible per occurrence. MMIA
reinsures their property insurance with a national municipal pool, Public Entities’ Property Insurance.
Note 18 - Litigation
The City generally follows the practice of recording liabilities resulting from claims and legal actions only when they become
fixed or determinable in amount. In the opinion of City Counsel and management, such claims against the City not covered
by insurance, would not materially affect the financial condition of the City at June 30, 2025.
Note 19 - Contingencies
Various claims and lawsuits involving the City can be pending at any given time. These claims are either covered by
insurance or are the types which are normal in City operations and do not present any material risk of financial disruption.
City management believes that the total amount of liability, if any, which may arise from such claims and lawsuits beyond
that which is covered by insurance would not have a material effect on the City's financial condition or its ability to carry out
its activities.
Note 20 - Municipal Landfill Closure and Post-Closure Care Costs
The City has a municipal solid waste landfill. State and Federal laws and regulations require the City to place a final cover on
its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for
30 years after final closure. The City stopped accepting waste effective June 30, 2008. The final capping of the cells is still
pending. The City has accrued a liability for $1,605,546, which is its estimate of future landfill closure and post-closure care
costs as of June 30, 2025.
This amount is based on a Corrective Measures Assessment completed in September 2014 by a third-party engineering
firm, from which a remediation plan has been adopted by the City and has been approved by the Montana Department of
Environmental Quality. The cost of post closure care is an estimate and is subject to changes resulting from inflation,
deflation, technology, or changes in applicable laws or regulations.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
96
The Solid Waste Fund accounts for the City’s solid waste collection, recycling, and disposal utility operation – including
assets, liabilities, and post-closure costs associated with the closed Story Mill landfill. Segment information for the landfill is
as follows:
Condensed Statement of Net Position
Restricted cash and investments $ —
Total assets —
Current liabilities 12,620
Closure and post-closure care cost 1,605,546
Total liabilities 1,618,166
Restricted for debt service $ (1,618,166)
Condensed Statement of Revenues, Expenses and Changes in Net Position
Operating revenues and expenses:
Operating revenues $ —
Operating expenses
Change in post closure cost estimate $ 222,337
Total operating expenses 222,337
Operating profit (loss)$ (222,337)
Non-operating revenues (expenses):
Transfers $ 493,443
Total non-operating revenues 493,443
Change in net position 271,106
Net position, beginning of year (1,889,272)
Net position, end of year $ (1,618,166)
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
97
Note 21 - Pollution Remediation Obligations
Jewel v. City of Bozeman / State of Montana v. City of Bozeman
This action was filed in the United States District Court for the District of Montana. The multi-count complaint reduced itself
to a cost recovery action under the Federal Superfund (CERCLA) and State Superfund (CECRA). On July 8, 1999, the City,
Jewel Food Stores, Inc. and the other parties reached a final settlement agreement in this action. The settlement, in part,
required Jewel Food Stores, Inc. to pay the City of Bozeman $1,200,000, the City and Jewel to extend alternative water
supply to businesses and residents in the North 19th Avenue area of the City; and Jewel and the City to share specified
remediation costs on an equal basis (50% each) up to a cumulative amount of $4,000,000, and for eligible costs in excess of
that amount, to be shared 70% by Jewel and 30% by the City. The City is reimbursed by insurers for 23% of the City’s
expenditures for these purposes.
The Montana Department of Environmental Quality (MDEQ) issued the Record of Decision (ROD) for the Bozeman Solvent
Site (BSS) in August 2011. The Administrative Order of Consent (AOC) was finalized in January 2012. The ROD and AOC
specifically delineate the remediation to be completed for the BSS. The AOC serves as the legal mechanism for the
implementation of the selected remedies identified in the ROD. Though remediation is currently underway and may be
completed relatively quickly, monitoring of the site will continue for a period of up to 30 years. Tasman Geosciences, Inc.
serves as the contractor for the potentially liable parties (the City of Bozeman and CVS Pharmacy, Inc.). Based on the
selected remedies identified in the ROD, Tasman has completed a long-term cost projection for the project in February
2016. The long-term cost projection was reviewed in September 2017, and, at that time, it was determined it was still an
accurate projection. This cost projection includes all remediation and monitoring cost, as well as the MDEQ cost recovery
associated with the BSS. The long-term cost projection for the City is $985,645 in remediation costs. Reduced by its insurer’s
reimbursement, the amount is $770,251. This liability is recorded in the Wastewater Fund, is an estimate, and is subject to
changes resulting from inflation, deflation, technology, or changes in applicable laws or regulations.
CMC Asbestos Bozeman CECRA Facility
In 2001, the City purchased property located within the CMC Asbestos Bozeman Facility (the “Facility”), a former asbestos
ore storage and processing, recycling/salvage yard. In 2002, contractors for the City, under the Montana Voluntary Cleanup
and Redevelopment Act (VCRA), submitted a Voluntary Cleanup Plan (VCP), which was approved by the Department of
Environmental Quality (DEQ). Remediation work on City-owned property was completed in October 2003. On December 21,
2006, the City agreed to complete remedial actions at the remainder of the Facility, which included adjacent, private
properties. The City submitted an Addendum to its original VCP, and cleanup work under the approved Addendum was
completed in June 2009.
On October 20, 2010, the City received notice from the DEQ stating that no further action is required at the facility and that
the DEQ proposes removing the Facility from the CECRA priority list. Pursuant to an August 2007 Stipulated Agreement
between the City and all other involved parties, additional cleanup after issuance of the DEQ’s closure letter may be
required by DEQ based upon property use changes, modification of structures, or other factors.
The City has an ongoing claim against the State orphan share for the orphan share funds’ proportional share of these post-
closure clean-up costs. In addition, all other parties are still liable for their proportional share of the clean-up. The result is
that should additional work be required at the Facility, the City will only be liable for 1% of the total post-closure clean-up
costs.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
98
Note 22 - Commitments
The City entered into various contracts for road and streetscape projects. The contract commitments for the projects are
$9,906,055.40. For the year ended June 30, 2025, the City had incurred $9,727,754.40 towards the projects, which are
reported as construction in progress in the Statement of Net Position.
The City entered into a contract for construction services for the City Hall elevator modernization project. The contract
commitment for the project is $212,164.80. For the year ended June 30, 2025, the City had incurred $178,492.18 towards
the project, which is reported as construction in progress in the Statement of Net Position.
The City entered into a contract for construction services for the 2024 Street & Utility improvements project. The contract
commitment for the project is $4,694,306.31. For the year ended June 30, 2025, the City had incurred $1,842,894.56
towards the project, which is reported as construction in progress in the Statement of Net Position.
The City entered into a contract for construction services for the Sourdough Creek Intake improvements project. The
contract commitment for the project is $4,477,000. For the year ended June 30, 2025, the City had incurred $1,299,403.67
towards the project, which is reported as construction in progress in the Statement of Net Position.
The City entered into a contract for construction services for the City Hall remodel project. The contract commitment for
the project is $1,667,508.99. For the year ended June 30, 2025, the City had incurred $1,247,381.36 towards the project,
which is reported as construction in progress in the Statement of Net Position.
The City entered into a contract for construction services for the Storymill Parking Lot improvements project. The contract
commitment for the project is $754,290.45. For the year ended June 30, 2025, the City had incurred $274,861.12 towards
the project, which is reported as construction in progress in the Statement of Net Position.
The City entered into a contract for construction services for the Storymill Splash Pad project. The contract commitment
for the project is $706,350. For the year ended June 30, 2025, the City had incurred $536,826 towards the project, which is
reported as construction in progress in the Statement of Net Position.
City of Bozeman, MontanaNotes to the Financial Statements
June 30, 2025
99
Required Supplementary Information June 30, 2025City of Bozeman, Montana
Schedule of Changes in Total OPEB Liability and Related Ratios
Last 10 Fiscal Years*
2025 2024 2023 2022 2021 2020 2019 2018
Service cost $ 317,122 $ 308,978 $ 386,864 $ 348,856 $ 218,391 $ 224,433 $ 180,183 $ 250,168
Interest cost 195,072 173,250 116,219 101,891 105,950 105,809 88,126 88,342
Differences between expected and actual experience (828,352) — (110,114) — (8,615) — (502,125) —
Change in assumptions 336,520 (8,982) (862,570) 428,413 1,270,632 86,882 225,374 (653,711)
Benefit payments (116,889) (128,809) (146,957) (147,232) (119,793) (116,330) (118,184) —
Net change in total OPEB liability (96,527) 344,437 (616,558) 731,928 1,466,565 300,794 (126,626) (315,201)
Total OPEB liability, beginning of year 4,794,995 4,450,558 5,067,116 4,335,188 2,868,623 2,567,829 2,694,455 3,009,656
Total OPEB liability, end of year $ 4,698,468 $ 4,794,995 $ 4,450,558 $ 5,067,116 $ 4,335,188 $ 2,868,623 $ 2,567,829 $ 2,694,455
Covered employee payroll $ 41,035,939 $ 37,388,341 $ 29,433,945 $ 27,432,420 $ 26,119,539 $ 24,490,157 $ 23,503,572 $ 45,345,305
City's total OPEB liability as a percentage of covered employee
payroll 11.45 % 12.82 % 15.12 % 18.47 % 16.60 % 11.71 % 10.93 % 5.94 %
*GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for
those years for which information is available.
Notes to the Schedule of Changes in Total OPEB Liability and Related Ratios
Assets are not accumulated in a trust that meets the criteria in GASB Statement No. 75, paragraph 4 to pay related benefits.
Assumption Changes
Changes of assumptions reflect the effects of changes in the discount rate used each period. The following are the discount rates used for each period presented:
6/30/2025 3.97%
6/30/2024 3.86%
6/30/2023 3.69%
6/30/2022 2.16%
6/30/2021 2.21%
6/30/2020 3.50%
6/30/2019 3.87%
6/30/2018 3.13%
City of Bozeman, MontanaSchedule of Changes in Total OPEB Liability and Related Ratios
June 30, 2025
101
Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions
Montana Public Employees Retirement System Pension Plan
Schedule of Employer’s Share of Net Pension Liability
Last 10 Fiscal Years*
Measurement
Date
Employer's
Proportion
(Percentage)
of the Net
Pension
Liability
Employer's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(a)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(b)
Total
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(a+b)
Employer's
Covered-
Payroll
(c)
Employer's
Proportionate
Share of the
Total Pension
Liability as a
Percentage of
its Covered-
Payroll (a/c)
Plan
Fiduciary
Net Position
as a
Percentage
of the Total
Pension
Liability
6/30/2024 1.175578%$ 28,751,835 $ 7,518,644 $ 36,270,479 $ 23,031,318 124.84%74.77%
6/30/2023 1.132764%$ 27,643,462 $ 7,678,503 $ 35,321,965 $ 21,060,215 131.26%73.93%
6/30/2022 0.905336%$ 21,527,855 $ 6,454,277 $ 27,982,132 $ 15,910,277 135.31%73.66%
6/30/2021 0.841036%$ 15,249,847 $ 4,507,680 $ 19,757,527 $ 14,855,905 102.65%79.91%
6/30/2020 0.852225%$ 22,483,506 $ 7,096,303 $ 29,579,809 $ 14,298,930 157.24%68.90%
6/30/2019 0.861979%$ 18,018,037 $ 5,867,557 $ 23,885,594 $ 14,222,530 126.69%73.85%
6/30/2018 0.833641%$ 17,399,265 $ 5,822,595 $ 23,221,860 $ 13,764,340 126.41%73.47%
6/30/2017 1.041883%$ 20,291,988 $ 266,967 $ 20,558,955 $ 12,924,792 157.00%73.75%
6/30/2016 1.021762%$ 17,404,143 $ 212,659 $ 17,616,802 $ 12,238,920 142.20%74.71%
6/30/2015 0.958835%$ 13,403,285 $ 164,637 $ 13,567,922 $ 11,189,797 119.78%78.40%
Schedule of Employer’s Contributions
Last 10 Fiscal Years*
Reporting Date
Statutorily
Required
Contribution
(a)
Plan Choice
Rate Required
Contribution
(b)
Contributions
in Relation to
the Statutorily
Required
Contribution
(c)
Contribution
Deficiency
(Excess)
(a+b-c)
Covered-
Payroll
(d)
Contributions
as a
Percentage of
Covered-
Payroll
(c/d)
6/30/2025 $ 2,221,915 $ — $ 2,221,915 $ — $ 24,497,408 9.07%
6/30/2024 $ 2,098,743 $ — $ 2,098,743 $ — $ 23,031,318 9.11%
6/30/2023 $ 1,904,834 $ — $ 1,904,834 $ — $ 21,060,215 9.04%
6/30/2022 $ 1,414,999 $ — $ 1,414,999 $ — $ 15,910,277 8.89%
6/30/2021 $ 1,316,517 $ — $ 1,316,517 $ — $ 14,855,905 8.86%
6/30/2020 $ 1,252,776 $ — $ 1,252,776 $ — $ 14,298,930 8.76%
6/30/2019 $ 1,223,234 $ — $ 1,223,234 $ — $ 14,222,530 8.60%
6/30/2018 $ 1,161,210 $ — $ 1,161,210 $ — $ 13,764,340 8.44%
6/30/2017 $ 1,081,810 $ — $ 1,081,810 $ — $ 12,924,792 8.37%
6/30/2016 $ 1,022,996 $ 28,892 $ 1,051,888 $ — $ 12,238,920 8.59%
City of Bozeman, MontanaSchedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions
Montana Public Employees' Retirement System Pension Plan
June 30, 2025
102
Montana Firefighters' Retirement System Pension Plan
Schedule of Employer’s Share of Net Pension Liability
Last 10 Fiscal Years*
Measurement
Date
Employer's
Proportion
(Percentage)
of the Net
Pension
Liability
Employer's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(a)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(b)
Total
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(a+b)
Employer's
Covered-
Payroll
(c)
Employer's
Proportionate
Share of the
Total Pension
Liability as a
Percentage of
its Covered-
Payroll (a/c)
Plan
Fiduciary Net
Position as a
Percentage
of the Total
Pension
Liability
6/30/2024 2.2506%$ 3,048,787 $ 6,916,930 $ 9,965,717 $ 5,279,640 57.75%83.97%
6/30/2023 2.2094%$ 3,335,681 $ 7,570,801 $ 10,906,482 $ 4,759,139 70.09%81.00%
6/30/2022 2.2000%$ 3,494,798 $ 7,906,822 $ 11,401,620 $ 4,263,039 81.98%78.76%
6/30/2021 2.2620%$ 1,935,764 $ 4,393,566 $ 6,329,330 $ 4,162,698 46.50%87.72%
6/30/2020 2.3217%$ 3,632,985 $ 8,189,975 $ 11,822,960 $ 4,052,989 89.64%75.34%
6/30/2019 2.1955%$ 2,518,508 $ 6,091,025 $ 8,609,533 $ 3,807,151 66.15%80.08%
6/30/2018 2.3663%$ 2,725,281 $ 6,231,502 $ 8,956,783 $ 3,726,746 73.13%79.03%
6/30/2017 2.3492%$ 2,655,380 $ 6,030,078 $ 8,685,458 $ 3,511,860 75.61%77.77%
6/30/2016 2.3705%$ 2,707,390 $ 6,134,093 $ 8,841,483 $ 3,338,041 81.11%75.48%
6/30/2015 2.4336%$ 2,489,054 $ 5,543,784 $ 8,032,838 $ 3,270,451 76.11%76.90%
Schedule of Employer’s Contributions Last 10 Fiscal Years*
Reporting Date
Statutorily
Required
Contribution
(a)
Contributions in
Relation to the
Statutorily
Required
Contribution
(b)
Contribution
Deficiency
(Excess)
(a-b)
Covered- Payroll
(c)
Contributions as
a Percentage of
Covered- Payroll
(b/c)
6/30/2025 $ 865,609 $ 865,609 $ — $ 6,027,921 14.36%
6/30/2024 $ 764,489 $ 764,489 $ — $ 5,279,640 14.48%
6/30/2023 $ 684,507 $ 684,507 $ — $ 4,759,139 14.38%
6/30/2022 $ 616,605 $ 616,605 $ — $ 4,263,039 14.46%
6/30/2021 $ 595,510 $ 595,510 $ — $ 4,162,698 14.31%
6/30/2020 $ 596,564 $ 596,564 $ — $ 4,052,989 14.72%
6/30/2019 $ 524,670 $ 524,670 $ — $ 3,807,151 13.78%
6/30/2018 $ 548,518 $ 548,518 $ — $ 3,726,746 14.72%
6/30/2017 $ 504,303 $ 504,303 $ — $ 3,511,860 14.36%
6/30/2016 $ 477,250 $ 477,250 $ — $ 3,338,041 14.30%
City of Bozeman, MontanaSchedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions
Montana Firefighters' Retirement System Pension Plan
June 30, 2025
103
Montana Municipal Police Officers' Retirement System Pension Plan
Schedule of Employer’s Share of Net Pension Liability
Last 10 Fiscal Years*
Measurement
Date
Employer's
Proportion
(Percentage)
of the Net
Pension
Liability
Employer's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(a)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(b)
Total
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(a+b)
Employer's
Covered-
Payroll
(c)
Employer's
Proportionate
Share of the
Total Pension
Liability as a
Percentage of
its Covered-
Payroll (a/c)
Plan
Fiduciary Net
Position as a
Percentage
of the Total
Pension
Liability
6/30/2024 3.0591%$ 6,839,923 $ 13,910,325 $ 20,750,248 $ 6,469,828 105.72%73.96%
6/30/2023 3.0406%$ 7,049,339 $ 14,227,120 $ 21,276,459 $ 6,130,962 114.98%71.65%
6/30/2022 3.0145%$ 7,120,779 $ 14,472,724 $ 21,593,503 $ 6,130,962 116.14%69.67%
6/30/2021 2.9306%$ 5,327,439 $ 10,828,332 $ 16,155,771 $ 5,623,538 94.73%75.76%
6/30/2020 2.9892%$ 7,311,248 $ 14,746,046 $ 22,057,294 $ 5,303,838 137.85%64.84%
6/30/2019 2.8699%$ 5,712,381 $ 11,632,402 $ 17,344,783 $ 5,120,608 111.56%68.84%
6/30/2018 2.9325%$ 5,022,189 $ 10,266,345 $ 15,288,534 $ 4,729,931 106.18%70.95%
6/30/2017 3.0402%$ 5,408,979 $ 11,024,418 $ 16,433,397 $ 4,628,804 116.85%68.34%
6/30/2016 3.0842%$ 5,552,007 $ 11,020,975 $ 16,572,982 $ 4,555,121 121.88%65.62%
6/30/2015 2.9746%$ 4,920,638 $ 9,969,680 $ 14,890,318 $ 4,353,897 113.02%66.90%
Schedule of Employer’s Contributions
Last 10 Fiscal Years*
Reporting Date
Statutorily
Required
Contribution
(a)
Contributions in
Relation to the
Statutorily
Required
Contribution
(b)
Contribution
Deficiency
(Excess)
(a-b)
Covered- Payroll
(c)
Contributions as
a Percentage of
Covered- Payroll
(b/c)
6/30/2025 $ 1,014,409 $ 1,014,409 $ — $ 7,039,620 14.41%
6/30/2024 $ 935,007 $ 932,302 $ — $ 6,469,828 14.45%
6/30/2023 $ 892,375 $ 892,375 $ — $ 6,130,962 14.56%
6/30/2022 $ 816,313 $ 816,313 $ — $ 5,623,538 14.52%
6/30/2021 $ 763,261 $ 763,261 $ — $ 5,303,838 14.39%
6/30/2020 $ 732,880 $ 732,880 $ — $ 5,120,608 14.31%
6/30/2019 $ 684,296 $ 684,296 $ — $ 4,729,931 14.47%
6/30/2018 $ 692,318 $ 692,318 $ — $ 4,628,804 14.96%
6/30/2017 $ 655,143 $ 655,143 $ — $ 4,555,121 14.38%
6/30/2016 $ 637,789 $ 637,789 $ — $ 4,353,897 14.65%
City of Bozeman, MontanaSchedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions
Montana Municipal Police Officers' Retirement System Pension Plan
June 30, 2025
104
Contributions
Change of Benefit Terms
The following changes to the PERS, FURS, and MPORS plan provisions were made as identified:
2017 Legislative Changes – PERS:
Working Retiree Limitations
Effective July 1, 2017, if a PERS retiree returns as an independent contractor to what would otherwise be PERS-covered
employment, general contractor overhead costs are excluded from PERS working retiree limitations.
Refunds
1.Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their
accumulated contributions in a lump sum.
2.Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund
must do so within 90 days of termination of service.
3.Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump-sum
payment.
Lump-Sum Payouts
Effective July 1, 2017, lump-sum payouts in all systems are limited to the member’s accumulated contributions rate than
the present value of the member’s benefit.
Disabled PERS Defined Contribution (DC) Members
PERS members hired after July 1, 2011 have a normal retirement age of 65. PERS DC members hired after July 1, 2011 who
became disabled were previously only eligible for a disability benefit until age 65. Effective July 1, 2017, these individuals
will be eligible for a disability benefit until they reach 70, thus ensuring the same 5-year time period available to PERS DC
disabled members hired prior to July 1, 2011 who have a normal retirement age of 60 and are eligible for a disability benefit
until age 65.
2017 Legislative Changes – FURS:
Working Retiree Limitations
Applies to retirement system members who return on or after July 1, 2017 to covered employment in the system from
which they retired.
•Members who return for less than 480 hours in a calendar year:
◦May not become an active member in the system; and
◦Are subject to a $1 reduction in their retirement benefit for each $3 earned in excess of $5,000 in the
calendar year.
•Members who return for 480 or more hours in a calendar year:
◦Must become an active member of the system;
◦Will stop receiving a retirement benefit from the system; and
◦Will be eligible for a second retirement benefit if they earn 5 or more years of service credit through their
second employment.
•Employee, employer and state contributions, if any, apply as follows:
◦Employer contributions and state contributions (if any) must be paid on all working retirees;
◦Employee contributions must be paid on working retirees who return to covered employment for 480 or
more hours in a calendar year.
City of Bozeman, MontanaNotes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions
June 30, 2025
105
Second Retirement Benefit
Applies to retirement system members who return on or after July 1, 2017 to active service covered by the system from
which they retired.
•If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit
before terminating again, the member:
◦Is not awarded service credit for the period of reemployment;
◦Is refunded the accumulated contributions associated with the period of reemployment;
◦Starting the first month following termination of service, receives the same retirement benefit previously
paid to the member; and
◦Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a
Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement.
•If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit
before terminating again, the member:
◦Is awarded service credit for the period of reemployment;
◦Starting the first month following termination of service, receives:
▪The same retirement benefit previously paid to the member, and
▪A second retirement benefit for the period of reemployment calculated based on the laws in
effect as of the member’s rehire date; and
◦Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a
GABA:
▪On the initial retirement benefit in January immediately following second retirement, and
▪On the second retirement benefit starting in January after receiving that benefit for at least 12
months.
•A member who returns to covered service is not eligible for a disability benefit.
Refunds
Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their accumulated
contributions in a lump sum.
Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund must do
so within 90 days of termination of service.
Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump-sum payment.
Lump-sum payouts
Effective July 1, 2017, lump-sum payouts in all systems are limited to the member’s accumulated contributions rate than
the present value of the member’s benefit.
2017 Legislative Changes – MPORS:
Working Retiree Limitations
Applies to retirement system members who return on or after July 1, 2017 to covered employment in the system from
which they retired.
•Members who return for less than 480 hours in a calendar year:
◦May not become an active member in the system; and
◦Are subject to a $1 reduction in their retirement benefit for each $3 earned in excess of $5,000 in the
calendar year.
•Members who return for 480 or more hours in a calendar year:
◦Must become an active member of the system;
◦Will stop receiving a retirement benefit from the system; and
City of Bozeman, MontanaNotes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions
June 30, 2025
106
◦Will be eligible for a second retirement benefit if they earn 5 or more years of service credit through their
second employment.
•Employee, employer and state contributions, if any, apply as follows:
◦Employer contributions and state contributions (if any) must be paid on all working retirees;
◦Employee contributions must be paid on working retirees who return to covered employment for 480 or
more hours in a calendar year.
Second Retirement Benefit
Applies to retirement system members who return on or after July 1, 2017 to active service covered by the system from
which they retired.
•If the member works more than 480 hours in a calendar year and accumulates less than 5 years of service credit
before terminating again, the member:
◦Is not awarded service credit for the period of reemployment;
◦Is refunded the accumulated contributions associated with the period of reemployment;
◦Starting the first month following termination of service, receives the same retirement benefit previously
paid to the member; and
◦Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a
Guaranteed Annual Benefit Adjustment (GABA) in January immediately following second retirement.
•If the member works more than 480 hours in a calendar year and accumulates at least 5 years of service credit
before terminating again, the member:
◦Is awarded service credit for the period of reemployment;
◦Starting the first month following termination of service, receives:
▪The same retirement benefit previously paid to the member, and
▪A second retirement benefit for the period of reemployment calculated based on the laws in
effect as of the member’s rehire date; and
◦Does not accrue post-retirement benefit adjustments during the term of reemployment but receives a
GABA:
▪On the initial retirement benefit in January immediately following second retirement, and
▪On the second retirement benefit starting in January after receiving that benefit for at least 12
months.
•A member who returns to covered service is not eligible for a disability benefit.
Refunds
Terminating members eligible to retire may, in lieu of receiving a monthly retirement benefit, refund their accumulated
contributions in a lump sum.
Terminating members with accumulated contributions between $200 and $1,000 who wish to rollover their refund must do
so within 90 days of termination of service.
Trusts, estates, and charitable organizations listed as beneficiaries are entitled to receive only a lump-sum payment.
Lump-sum payouts
Effective July 1, 2017, lump-sum payouts in all systems are limited to the member’s accumulated contributions rate than
the present value of the member’s benefit.
City of Bozeman, MontanaNotes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions
June 30, 2025
107
Method and Assumptions used in Calculations of Actuarially Determined Contributions
The following actuarial assumptions and methods were used to determine contribution rates reported for fiscal year ending
June 30, 2024, which were based on the results of the June 30, 2023 actuarial valuation:
PERS FURS MPORS
General Wage Growth*3.50%3.50%3.50%
Investment Rate of
Return*
7.30%, net of pension plan
investment and administrative
expenses
7.30%, net of pension plan
investments and
administrative expenses
7.30%, net of pension plan
investments and
administrative expenses
*Includes inflation at 2.75%2.75%2.75%
Merit salary increase 0% to 4.80%0% to 6.40%0% to 6.40%
Asset valuation method Four-year smoothed market Four-year smoothed market Four-year smoothed market
Actuarial cost method Entry age Normal Entry Age Normal Entry Age Normal
Amortization method Level percentage of payroll,
open
Level percentage of payroll,
open
Level percentage of payroll,
openRemaining amortization
period 30 years
Mortality
•Active
Participants
PUB-2010 General Amount
Weighted Employee
Mortality projected to 2021
for males and females.
Projected generationally using
MP-2021.
PUB-2010 Safety Amount
Weighted Employee
Mortality projected to 2021
for males and females.
Projected generationally using
MP-2021.
PUB-2010 Safety Amount
Weighted Employee
Mortality projected to 2021
for males and females.
Projected generationally
using MP-2021.
•Healthy
Retiree
PUB-2010 General Amount
Weighted Disabled Retiree
mortality table, projected to
2021, set forward one year for
both males and females.
PUB-2010 Safety Amount
Weighted Healthy Retiree
Mortality Table projected to
2021, set forward one year for
males and adjusted 105% for
males and 100% for females.
Projected generationally using
MP-2021.
PUB-2010 Safety Amount
Weighted Healthy Retiree
mortality table projected to
2021 set forward one year
for males and adjusted 105%
for males, and 100% for
females. Projected
generationally using
MP-2021.
•Disabled
Retiree
PUB-2010 General Amount
Weighted Contingent
Survivor Mortality projected
to 2021 with ages set forward
one year for males and
females. Projected
generationally using MP-2021.
PUB 2010 Safety Amount
Weighted Disabled Retiree
Mortality projected to 2021,
set forward one year for
males.
PUB-2010 Safety Amount
Weighted Disabled Retiree
mortality table projected to
2021, set forward one year
for males.
•Contingent
Survivor
PUB-2010 General Amount
Weighted Healthy Retiree
Mortality Table projected to
2021, with ages set forward
one year and adjusted 104%
for males and 103% for
females. Projected
generationally using MP-2021.
PUB-2010 Safety Amount
Weighted Contingent
Survivor Mortality projected
to 2021, set forward one year
for males. Projected
generationally using MP-2021.
PUB-2010 Safety Amount
Weighted Contingent
Survivor Mortality
projected to 2021, set
forward one year for males.
Projected generationally
using MP-2021.
Administrative expenses are recognized by an additional amount added to the normal cost contribution rate for the System.
This amount varies from year to year based on the prior year’s actual administrative expenses.
The actuarial assumptions and methods utilized in the June 30, 2023 valuation were developed in the five-year experience
study for the period ending 2022.
City of Bozeman, MontanaNotes to the Schedule of Employer’s Share of Net Pension Liability and Schedule of Employer’s Contributions
June 30, 2025
108
Schedule of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary BasisGeneral Fund
Original
Budget Final Budget
Actual
Amounts
Variance with
Final Budget
Budgetary fund balance, July 1 $ 15,336,100 $ 26,668,200 $ 26,275,958 $ (392,242)
Resources (inflows):
Taxes 32,365,600 32,365,600 33,520,111 1,154,511
Special assessments 100 100 — (100)
Licenses and permits 500,900 500,900 481,478 (19,422)
Intergovernmental 6,893,400 10,970,800 11,616,862 646,062
Charges for services 8,354,700 8,236,000 7,084,522 (1,151,478)
Fines and forfeitures 952,800 952,800 991,314 38,514
Interest on investments 100,000 100,000 695,312 595,312
Change in fair value of investments — — 314,752 314,752
Miscellaneous 208,900 208,900 355,802 146,902
Transfers in 4,124,400 3,876,000 4,049,268 173,268
Issuance of long-term debt 3,511,300 3,363,100 2,391,049 (972,051)
Sale of capital assets 12,600 12,600 — (12,600)
Amounts available for appropriation 72,360,800 87,255,000 87,776,428 913,670
Charges to appropriations (outflows):
Current
General government 16,962,900 17,091,500 14,201,262 2,890,238
Public safety 22,827,800 27,066,500 26,250,695 815,805
Public welfare 9,816,400 9,599,100 8,161,817 1,437,283
Other 1,816,100 1,816,100 1,886,721 (70,621)
Capital outlay 3,608,800 12,168,900 5,868,039 6,300,861
Debt service
Principal 49,700 151,200 443,971 (292,771)
Interest and fiscal charges 13,500 248,000 284,978 (36,978)
Debt issuance cost 38,900 38,900 6,783 32,117
Transfers out 3,243,300 3,501,900 3,148,472 353,428
Total charges to appropriations 58,377,400 71,682,100 60,252,738 11,429,362
Budgetary fund balance, June 30 $ 13,983,400 $ 15,572,900 $ 27,523,690 $ 12,343,032
City of Bozeman, MontanaSchedule of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary Basis
General Fund
Year Ended June 30, 2025
109
Major Special Revenue Funds
Street Maintenance District Special Revenue Fund Downtown Urban Renewal District Special Revenue Fund
Original
Budget Final Budget
Actual
Amounts
Variance with
Final Budget
Original
Budget Final Budget Actual Amounts
Variance with
Final Budget
Budgetary fund balance, July 1 $ 3,616,500 $ 4,853,100 $ 4,929,490 $ 76,390 $ 6,149,000 $ 6,236,100 $ 7,424,225 $ 1,188,125
Resources (inflows):
Taxes — — — — 2,362,500 2,362,500 2,967,130 604,630
Special assessments 20,000 20,000 26,397 6,397 — — — —
Licenses and permits 30,000 30,000 82,326 52,326 — — — —
Intergovernmental 2,827,300 2,869,100 2,287,297 (581,803) 57,100 58,000 103,225 45,225
Charges for services 9,425,800 9,425,800 9,351,164 (74,636) — — — —
Interest on investments 20,000 20,000 151,394 131,394 2,100 2,100 318,761 316,661
Change in fair value of investments — — 64,097 64,097 — — 125,190 125,190
Miscellaneous 1,000 1,000 22,129 21,129 — — 1,200 1,200
Sale of capital assets — — 1,380 1,380 — — — —
Amounts available for appropriation 15,940,600 17,219,000 16,915,674 (379,716) 8,570,700 8,658,700 10,939,731 1,092,906
Charges to appropriations (outflows):
Current
Public works 10,001,900 9,983,500 8,720,524 1,262,976 — — — —
Public welfare — — — — 7,277,200 485,700 909,850 (424,150)
Capital outlay 3,427,300 4,724,100 3,392,322 1,331,778 780,000 408,200 — 408,200
Debt service
Principal 244,500 244,500 244,382 118 — — — —
Interest and fiscal charges 79,000 79,000 78,083 917 — — — —
Transfers out — — 37,649 (37,649) 335,300 335,300 335,407 (107)
Total charges to appropriations 13,752,700 15,031,100 12,472,960 2,558,140 8,392,500 1,229,200 1,245,257 (16,057)
Budgetary fund balance, June 30 $ 2,187,900 $ 2,187,900 $ 4,442,714 $ 2,178,424 $ 178,200 $ 7,429,500 $ 9,694,474 $ 1,076,849
City of Bozeman, MontanaSchedule of Revenue, Expenditures, and Changes in Fund Balances – Budget to Actual – Budgetary Basis
Major Special Revenue Funds
Year Ended June 30, 2025
Ma
110
Basis
General Fund
Street
Maintenance
District
Downtown
Urban Renewal
District
Sources/ inflows of resources
Actual amounts (budgetary basis) "available for appropriation"
from the budgetary comparison schedule $ 87,776,428 $ 16,915,674 $ 10,939,731
Differences - budget to GAAP:The fund balance at the beginning of the year is a budgetary
resource but is not a current-year revenue for financial
reporting purposes. (26,275,958) (4,929,490) (7,424,225)
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes. (4,049,268) — —
The proceeds from the issuance of long-term debt or a lease are
a budgetary resource but are another financing source for
financial reporting purposes. (2,391,049) — —
The proceeds from the sale of assets are budgetary resources
but are regarded as a special item, rather than revenue, for
financial reporting purposes. — (1,380) —
Total revenues as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental funds $ 55,060,153 $ 11,984,804 $ 3,515,506
Uses/ outflows of resources
Actual amounts (budgetary basis) "total charges to
appropriations"from the budgetary comparison schedule $ 60,252,738 $ 12,472,960 $ 1,245,257
Differences - budget to GAAP:
The costs of issuance are a budgetary resource bur are an other
financing use for financial reporting purposes. (6,783) — —
Transfers to other funds are outflows of budgetary resources
but are not expenditures for financial reporting purposes. (3,148,472) (37,649) (335,407)
Total expenditures as reported on the statement of revenues,
expenditures, and changes in fund balances - governmental
funds $ 57,097,483 $ 12,435,311 $ 909,850
City of Bozeman, MontanaNotes to the Schedule of Revenue, Expenditures, and Changes in Fund Balances
Budget to Actual – Budgetary Basis
June 30, 2025
111
Other Supplementary InformationJune 30, 2025City of Bozeman, Montana
Service Fund and Major Capital Projects Funds
SID Debt Service Construction Capital Projects
Final Budget Actual Amounts
Variance with
Final Budget Final Budget Actual Amounts
Variance with
Final Budget
Revenues
Special assessments $ 549,900 $ 463,120 $ (86,780) $ — $ — $ —
Interest on investments 28,300 90,867 62,567 41,600 165,694 124,094
Change in fair value of investments — 28,400 28,400 — 60,600 60,600
Miscellaneous — — — 67,000 383,661 316,661
Total revenues 578,200 582,387 4,187 108,600 609,955 501,355
Expenditures
Current
Public safety — — — — 27,203 (27,203)
Public works — — — 114,400 129,823 (15,423)
Public welfare — — — — 5,537 (5,537)
Capital outlay — — — 22,293,700 4,420,029 17,873,671
Debt service
Principal 171,600 171,541 59 — — —
Interest and fiscal charges 123,100 122,958 142 — — —
Total expenditures 294,700 294,499 201 22,408,100 4,582,592 17,825,508
Excess (deficiency) of revenues
over (under) expenditures 283,500 287,888 4,388 (22,299,500) (3,972,637) 18,326,863
Other financing sources (uses)
Transfers in — 13,782 13,782 1,087,400 653,427 (433,973)
Transfers out 167,100 (167,064) (334,164) 2,636,900 (2,636,869) (5,273,769)
Issuance of long-term debt — — — 18,000,000 2,964,707 (15,035,293)
Debt issuance cost — — — — (26,015) (26,015)
Total other financing sources (uses) 167,100 (153,282) (320,382) 21,724,300 955,250 (20,769,050)
Net change in fund balance $ 450,600 134,606 $ (315,994) $ (575,200) (3,017,387) $ (2,442,187)
Fund balance, beginning of year 1,038,355 6,362,926
Fund balance, end of year $ 1,172,961 $ 3,345,539
City of Bozeman, MontanaSchedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Major Debt Service
Fund and Major Capital Projects Fund
Year Ended June 30, 2025
113
Nonmajor Governmental Funds
Special Revenue Funds
Departmental Special Revenues – Accounts for monies received and expended for projects relating to various City
departments.
City Planning – Accounts for monies received from various sources including property taxes, fees, and County revenues.
Expenditures are for short-term and long-term planning of City and adjacent County zones. Section 76-1-102 MCA provides
that the purpose of City planning is to encourage local governments to improve the present health, safety, convenience,
and welfare of the citizens.
American Rescue Plan Act (ARPA) Special Revenue Fund – This fund accounts for the ARPA federal grant program. Grant
funds must be used for the stated purpose of the grant and must meet grantor expenditure guidelines.
Local Government Study Commission – This fund accounts for the voter supported study to potentially change the form of
local government. The study is required to be on the ballot every ten years.
Health-Medical Insurance – Accounts for property tax revenues received and transferred to the General Fund and City
Planning Fund for premiums and deductibles on group insurance coverage for City employees.
Tree Maintenance – Accounts for special assessment revenues collected and expended for maintenance of trees in the right
of way.
Fire Impact Fee – Accounts for the collection and expenditures of fire impact fees.
Street Impact Fee – Accounts for the collection and expenditures of street impact fees.
Building Inspection Fund – Accounts for all activity related to enforcing the building regulations and codes adopted by the
City Commission. It includes all the money and staff associated with executing any aspect of the code enforcement
program.
Pole Yard TIF – In November 2020, the City created a tax increment financing district to eliminate conditions that contribute
to blight substantially impairing sound growth of the City through investments in public infrastructure and efficient delivery
of public services. The fund accounts for the revenue and expenditures associated with the district.
Community Development Block Grant – This fund accounts for the activity related to the Community Development Block
Grant federal grant program. Grant funds must be used for the stated purpose of the grant and must meet grantor
expenditure guidelines.
Economic Development Revolving Loan Fund – Accounts for revenues received and expended relative to loans made in
accordance with the Community Development Block Grant Program, for economic development purposes.
Community Housing – Accounts for money set aside by the City Commission and related expenditure for the establishment
of safe, decent, and affordable housing for low and moderate-income citizens.
Metropolitan Planning Organization – This fund accounts for transportation planning and alternative transportation services
in Gallatin County.
Street Arterial & Collector District – Accounts for special assessment revenues collected and expended for necessary
transportation infrastructure.
City of Bozeman, MontanaDescription of Nonmajor Funds
Nonmajor Governmental Funds
June 30, 2025
114
TIF N 7th Corridor – In August of 2005, the City created a tax increment financing district to eliminate conditions that
contribute to blight substantially impairing sound growth of the City through investments in public infrastructure and
efficient delivery of public services. The fund accounts for the revenue and expenditures associated with the district.
TIF N.E. Urban Renewal – In August of 2005, the City created a tax increment financing district to eliminate conditions that
contribute to blight substantially impairing sound growth of the City through investments in public infrastructure and
efficient delivery of public services. The fund accounts for the revenue and expenditures associated with the district.
TIF Mandeville/Wheat Dr. – In December 2006, the City created a tax increment financing district to encourage the
attraction and retention of value-adding farming industries. This fund accounts for the revenue and expenditures associated
with the district.
Victim/Witness Advocate – Accounts for monies collected through the Court system to assist with Victim and Witness
Advocate Program.
Fire Department Equipment– Accounts for 4.0 mills approved by voters in 2007 for fire department capital and equipment.
TIF South Bozeman Technology – In December 2012, the City created a tax increment financing district to improve existing
infrastructure deficiencies on property adjacent to Montana State University and the Innovation Campus. This fund
accounts for the revenue and expenditures associated with the district.
Parks and Trails District Fund – In May 2020, the Citizens of Bozeman approved the creation of a Parks and Trails District.
This fund accounts for the special assessment revenue collected and expended to manage and maintain citywide parks and
trails.
Street Lighting – Accounts for special assessment revenues colleted and expended for street and public highway lighting
provided to specific property owners.
Park Land – Accounts for monies donated for the purpose of acquiring and developing City Parks.
Municipal Court Restitution – Accounts for checks that were canceled on the restitution checking account, per MCA
46-18-250.
Debt Service Funds
Special Improvement District (SID) Revolving – Accounts for property tax revenues received and expended for the payment
of special improvement district bond principal and interest.
General Obligation Bonds Debt Service Fund – Accounts for the debt service payments associated with the City's
outstanding general obligation bonds.
Tax Increment Financing Bonds Debt Service Fund – Accounts for the debt service payments associated with outstanding
Tax Increment Urban Renewal Revenue Bonds.
Permanent Funds
Perpetual Cemetery Care – Accounts for the 15% maintenance fee received from the sale of City cemetery plots, which is to
be used for perpetual care. The interest income from the trust is transferred to the General Fund for use in maintaining the
City’s cemetery.
City of Bozeman, MontanaDescription of Nonmajor Funds
Nonmajor Governmental Funds
June 30, 2025
115
Combining Balance Sheet
Special Revenue Funds
Departmental City Planning
Government
Study
Commission
Health-Medical
Insurance
Assets
Cash and investments $ 2,664,844 $ 2,534,459 $ 217,116 $ —
Receivables (net of allowance for uncollectibles)
Property taxes 208 47,067 23,579 260,257
Accrued interest 9,041 8,936 — —
Accounts — — — —
Special assessments — — — —
Intergovernmental 41,337 — — —
Advances to other funds — — — —
Notes receivable — — — —
Restricted cash and investments 59,861 — — —
Total assets $ 2,775,291 $ 2,590,462 $ 240,695 $ 260,257
Liabilities, deferred inflows of resources, and fund balance
Liabilities
Accounts payable $ 91,724 $ 69,859 $ 1,701 $ —
Escheat property payable — — — —
Accrued payroll — 784 — —
Interest payable — — — —
Retainage payable — — — —
Appearance bonds and other liabilities — — — —
Due to other funds — — — 776,923
Unearned revenue 34,861 — — —
Total liabilities 126,585 70,643 1,701 776,923
Deferred inflows of resources
Unavailable revenue - property taxes 147 1,921 819 11,376
Fund balance (deficit)
Nonspendable — — — —
Restricted 656,688 — 238,175 —
Committed 361,773 2,517,898 — —
Assigned 1,630,098 — — —
Unassigned — — — (528,042)
Total fund balance (deficit) 2,648,559 2,517,898 238,175 (528,042)
Total liabilities, deferred inflows of
resources, and fund balances $ 2,775,291 $ 2,590,462 $ 240,695 $ 260,257
City of Bozeman, MontanaCombining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
116
Special Revenue Funds
Engineering
Tree
Maintenance Fire Impact Fee
Street Impact
Fee
Assets
Cash and investments $ 13,281 $ 857,318 $ — $ —
Receivables (net of allowance for uncollectibles)
Property taxes — — — —
Accrued interest — 2,930 9,377 80,284
Accounts — — — 3,156,214
Special assessments — 16,041 — —
Intergovernmental — 21,537 — —
Advances to other funds — — — —
Notes receivable — — — —
Restricted cash and investments — — 3,293,251 22,859,834
Total assets $ 13,281 $ 897,826 $ 3,302,628 $ 26,096,332
Liabilities, deferred inflows of resources, and fund
balance
Liabilities
Accounts payable $ 1,693 $ 105,102 $ — $ 188,060
Escheat property payable — — — —
Accrued payroll — — — —
Interest payable — — — —
Retainage payable — — — —
Appearance bonds and other liabilities — — — —
Due to other funds — — — —
Unearned revenue — 9,100 — 3,052,753
Total liabilities 1,693 114,202 — 3,240,813
Deferred inflows of resources
Unavailable revenue - property taxes — — — —
Fund balance (deficit)
Nonspendable — — — —
Restricted — 783,624 3,302,628 22,855,519
Committed — — — —
Assigned 11,588 — — —
Unassigned — — — —
Total fund balance (deficit) 11,588 783,624 3,302,628 22,855,519
Total liabilities, deferred inflows
of resources, and fund balances $ 13,281 $ 897,826 $ 3,302,628 $ 26,096,332
City of Bozeman, MontanaCombining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
117
Special Revenue Funds
Building
Inspection
Pole Yard TIF
District
Community
Development
Block Grant
Economic
Development
Revolving Loans
Assets
Cash and investments $ 2,336,412 $ 1,371,590 $ — $ —
Receivables (net of allowance for uncollectibles)
Property taxes — 51,776 — —
Accrued interest 7,939 — — —
Accounts — — — 338,840
Special assessments — — — —
Intergovernmental — — 1,770 —
Advances to other funds — — — —
Notes receivable — — — 632,956
Restricted cash and investments — — — —
Total assets $ 2,344,351 $ 1,423,366 $ 1,770 $ 971,796
Liabilities, deferred inflows of resources, and fund
balance
Liabilities
Accounts payable $ 102,990 $ 70 $ 150 $ —
Escheat property payable — — — —
Accrued payroll — — — —
Interest payable — — — —
Retainage payable — — — —
Appearance bonds and other liabilities — — — —
Due to other funds — — 1,620 —
Unearned revenue — — — —
Total liabilities 102,990 70 1,770 —
Deferred inflows of resources
Unavailable revenue - property taxes — — — —
Fund balance (deficit)
Nonspendable — — — —
Restricted 2,241,361 1,423,296 — 971,796
Committed — — — —
Assigned — — — —
Unassigned — — — —
Total fund balance (deficit) 2,241,361 1,423,296 — 971,796
Total liabilities, deferred inflows
of resources, and fund balances $ 2,344,351 $ 1,423,366 $ 1,770 $ 971,796
City of Bozeman, MontanaCombining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
118
Special Revenue Funds
Community
Housing
Metropolitan
Planning
Organization
Street and
Arterial
Collector District
North 7th
Corridor TIF
District
Assets
Cash and investments $ 1,137,126 $ — $ 4,685,330 $ 3,130,354
Receivables (net of allowance for uncollectibles)
Property taxes 1,522 — 171,744 478,407
Accrued interest 4,019 — 16,558 12,133
Accounts — — — —
Special assessments — — 1,976 —
Intergovernmental — 88,873 — —
Advances to other funds — — — —
Notes receivable — — — —
Restricted cash and investments — — 2,124,753 512,091
Total assets $ 1,142,667 $ 88,873 $ 7,000,361 $ 4,132,985
Liabilities, deferred inflows of resources, and fund
balance
Liabilities
Accounts payable $ 36,319 $ 18,073 $ 45,951 $ 43,994
Escheat property payable — — — —
Accrued payroll — 645 — —
Interest payable — — — —
Retainage payable — — — —
Appearance bonds and other liabilities — — — —
Due to other funds — 72,167 — —
Unearned revenue — — — —
Total liabilities 36,319 90,885 45,951 43,994
Deferred inflows of resources
Unavailable revenue - property taxes 1,050 — — 125,633
Fund balance (deficit)
Nonspendable — — — —
Restricted — — 6,954,410 3,963,358
Committed 1,105,298 — — —
Assigned — — — —
Unassigned — (2,012) — —
Total fund balance (deficit) 1,105,298 (2,012) 6,954,410 3,963,358
Total liabilities, deferred inflows
of resources, and fund balances $ 1,142,667 $ 88,873 $ 7,000,361 $ 4,132,985
City of Bozeman, MontanaCombining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
119
Special Revenue Funds
Northeast Urban
Renewal
District
Mandeville TIF
District
Victim/Witness
Advocate
Fire Department
Equipment
Assets
Cash and investments $ 1,723,345 $ 263,652 $ 336,749 $ 302,331
Receivables (net of allowance for uncollectibles)
Property taxes 65,831 21,173 — 95,299
Accrued interest 6,090 932 1,190 —
Accounts — — 4,379 —
Special assessments — — — —
Intergovernmental — — — —
Advances to other funds — — — —
Notes receivable — — — —
Restricted cash and investments 92,000 — — —
Total assets $ 1,887,266 $ 285,757 $ 342,318 $ 397,630
Liabilities, deferred inflows of resources, and fund
balance
Liabilities
Accounts payable $ 677 $ 14 $ 1,581 $ 143,275
Escheat property payable — — — —
Accrued payroll — — — —
Interest payable — — — —
Retainage payable — — — —
Appearance bonds and other liabilities — — — —
Due to other funds — — — —
Unearned revenue — — — —
Total liabilities 677 14 1,581 143,275
Deferred inflows of resources
Unavailable revenue - property taxes — — — 3,966
Fund balance (deficit)
Nonspendable — — — —
Restricted 1,886,589 285,743 340,737 250,389
Committed — — — —
Assigned — — — —
Unassigned — — — —
Total fund balance (deficit) 1,886,589 285,743 340,737 250,389
Total liabilities, deferred inflows
of resources, and fund balances $ 1,887,266 $ 285,757 $ 342,318 $ 397,630
City of Bozeman, MontanaCombining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
120
Special Revenue Funds
South Bozeman
TIF District
Parks and Trails
District Street Lighting Park Land
Assets
Cash and investments $ 139,484 $ 4,044,311 $ 324,008 $ 2,269,631
Receivables (net of allowance for uncollectibles)
Property taxes — 596,417 — —
Accrued interest 493 13,815 998 8,021
Accounts — — — —
Special assessments — 6,360 3,798 —
Intergovernmental — — — —
Advances to other funds — — — —
Notes receivable — — — —
Restricted cash and investments — — — —
Total assets $ 139,977 $ 4,660,903 $ 328,804 $ 2,277,652
Liabilities, deferred inflows of resources, and fund
balance
Liabilities
Accounts payable $ 14 $ 1,409,813 $ 25,475 $ 7,854
Escheat property payable — — — —
Accrued payroll — — — —
Interest payable — — — —
Retainage payable — 42,720 — —
Appearance bonds and other liabilities — — — —
Due to other funds — — — —
Unearned revenue — — — —
Total liabilities 14 1,452,533 25,475 7,854
Deferred inflows of resources
Unavailable revenue - property taxes — — — —
Fund balance (deficit)
Nonspendable — — — —
Restricted 139,963 3,208,370 303,329 2,269,798
Committed — — — —
Assigned — — — —
Unassigned — — — —
Total fund balance (deficit) 139,963 3,208,370 303,329 2,269,798
Total liabilities, deferred inflows
of resources, and fund balances $ 139,977 $ 4,660,903 $ 328,804 $ 2,277,652
City of Bozeman, MontanaCombining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
121
Special Revenue Funds
Municipal Court
Restitution
Total Nonmajor
Special Revenue Funds
Assets
Cash and investments $ — $ 28,351,341
Receivables (net of allowance for uncollectibles)
Property taxes — 1,813,280
Accrued interest — 182,756
Accounts — 3,499,433
Special assessments — 28,175
Intergovernmental — 153,517
Notes receivable — 632,956
Restricted cash and investments 94,550 29,036,340
Total assets $ 94,550 $ 63,697,798
Liabilities, deferred inflows of resources, and fund balance
Liabilities
Accounts payable $ — $ 2,294,389
Escheat property payable 94,445 94,445
Accrued payroll — 1,429
Retainage payable — 42,720
Due to other funds — 850,710
Unearned revenue — 3,096,714
Total liabilities 94,445 6,380,407
Deferred inflows of resources
Unavailable revenue - property taxes — 144,912
Fund balance (deficit)
Restricted 105 52,075,878
Committed — 3,984,969
Assigned — 1,641,686
Unassigned — (530,054)
Total fund balance (deficit) 105 57,172,479
Total liabilities, deferred inflows of
resources, and fund balances $ 94,550 $ 63,697,798
City of Bozeman, MontanaCombining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
122
Debt Service Funds
SID Revolving
General
Obligation
Bonds TIF Bonds
Total Nonmajor
Debt Service
Funds
Assets
Cash and investments $ 339,296 $ 45 $ — $ 339,341
Receivables (net of allowance for uncollectibles)
Property taxes — 402,973 — 402,973
Accrued interest 1,233 — — 1,233
Advances to other funds 1,392,460 — — 1,392,460
Total assets $ 1,732,989 $ 403,018 $ — $ 2,136,007
Liabilities, deferred inflows of resources, and fund
balance
Liabilities
Due to other funds — 560,597 — 560,597
Total liabilities — 560,597 — 560,597
Deferred inflows of resources
Unavailable revenue - property taxes — 17,178 — 17,178
Fund balance (deficit)
Restricted 1,732,989 — — 1,732,989
Unassigned — (174,757) — (174,757)
Total fund balance (deficit) 1,732,989 (174,757) — 1,558,232
Total liabilities, deferred inflows
of resources, and fund balances $ 1,732,989 $ 403,018 $ — $ 2,136,007
City of Bozeman, MontanaCombining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
123
Permanent Fund
Cemetary Perpetual
Care
Total Nonmajor
Governmental Funds
Assets
Cash and investments $ — $ 28,690,682
Receivables (net of allowance for uncollectibles)
Property taxes — 2,216,253
Accrued interest 7,821 191,810
Accounts 1,250 3,500,683
Special assessments — 28,175
Intergovernmental — 153,517
Advances to other funds — 1,392,460
Notes receivable — 632,956
Restricted cash and investments 2,213,043 31,249,383
Total assets $ 2,222,114 $ 68,055,919
Liabilities, deferred inflows of resources, and fund balance
Liabilities
Accounts payable $ — $ 2,294,389
Escheat property payable — 94,445
Accrued payroll — 1,429
Retainage payable — 42,720
Due to other funds — 1,411,307
Unearned revenue 21,811 3,118,525
Total liabilities 21,811 6,962,815
Deferred inflows of resources
Unavailable revenue - property taxes — 162,090
Fund balance (deficit)
Nonspendable 2,200,303 2,200,303
Restricted — 53,808,867
Committed — 3,984,969
Assigned — 1,641,686
Unassigned — (704,811)
Total fund balance (deficit) 2,200,303 60,931,014
Total liabilities, deferred inflows of
resources, and fund balances $ 2,222,114 $ 68,055,919
City of Bozeman, MontanaCombining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
124
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Special Revenue Funds
Departmental City Planning ARPA
Local
Government
Study
Commission
Health-
Medical
Insurance
Revenues
Taxes $ 1,154 $ 486,631 $ — $ 243,567 $ 2,671,640
Special assessments — — — — —
Licenses and permits — 93,512 — — —
Intergovernmental 340,556 192,025 174,091 — —
Charges for services 49,525 1,167,594 — — —
Fines and forfeitures — — — — —
Interest on investments 96,862 99,780 5,980 — —
Change in fair value of investments 28,340 37,110 8,877 — 6,775
Interest on loans receivable — — — — —
Miscellaneous — 99,070 — — —
Total revenues 516,437 2,175,722 188,948 243,567 2,678,415
Expenditures
Current
General government — 2,893,301 — 5,392 —
Public safety 347,568 — — — —
Public works — — — — —
Public welfare 234,670 — — — —
Other 200,001 — — — —
Capital outlay — 6,560 — — —
Debt service — — —
Principal — 23,569 — — —
Interest and fiscal charges — 103 — — —
Total expenditures 782,239 2,923,533 — 5,392 —
Excess (deficiency) of revenues over (under) expenditures (265,802) (747,811) 188,948 238,175 2,678,415
Other financing sources (uses)
Transfers in 493,839 203,794 — — —
Transfers out (6,663) (5,232) (454,664) — (3,814,689)
Sale of capital assets — — — — —
Total other financing sources (uses) 487,176 198,562 (454,664) — (3,814,689)
Net change in fund balances 221,374 (549,249) (265,716) 238,175 (1,136,274)
Fund balance (deficit), beginning of year 2,427,185 3,067,147 265,716 — 608,232
Fund balance (deficit), end of year $ 2,648,559 $ 2,517,898 $ — $ 238,175 $ (528,042)
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2025
125
Special Revenue Funds
Engineering
Tree
Maintenance
Fire Impact
Fee
Street
Impact Fee
Building
Inspection
Revenues
Taxes $ — $ — $ — $ — $ —
Special assessments — 2,989 — — —
Licenses and permits — — — — 4,283,137
Intergovernmental — 32,584 — — 192,697
Charges for services 11,588 975,806 555,148 5,060,073 87,075
Fines and forfeitures — — — — —
Interest on investments — 25,671 71,024 754,855 68,080
Change in fair value of investments — 8,593 77,495 204,476 16,959
Interest on loans receivable — — — — —
Miscellaneous — 25,131 — 539 —
Total revenues 11,588 1,070,774 703,667 6,019,943 4,647,948
Expenditures
Current
General government — — — — —
Public safety — — 27,759 — 3,629,023
Public works — — — 266,652 —
Public welfare — 943,462 — — —
Other — — — — —
Capital outlay — 38,889 — 1,099,992 102,755
Debt service —
Principal — — — — 94,465
Interest and fiscal charges — — — — 2,802
Total expenditures — 982,351 27,759 1,366,644 3,829,045
Excess (deficiency) of revenues over (under) expenditures 11,588 88,423 675,908 4,653,299 818,903
Other financing sources (uses)
Transfers in — — 636,869 — —
Transfers out — (5,305) — — (19,009)
Sale of capital assets — — — — 2,520
Total other financing sources (uses) — (5,305) 636,869 — (16,489)
Net change in fund balances 11,588 83,118 1,312,777 4,653,299 802,414
Fund balance (deficit), beginning of year — 700,506 1,989,851 18,202,220 1,438,947
Fund balance (deficit), end of year $ 11,588 $ 783,624 $ 3,302,628 $ 22,855,519 $ 2,241,361
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2025
126
Special Revenue Funds
Pole Yard
TIF District
Community
Development
Block Grant
Economic
Development
Revolving
Loans
Community
Housing
Metropolitan
Planning
Organization
Revenues
Taxes $ 564,102 $ — $ — $ 8,876 $ —
Special assessments — — — — —
Licenses and permits — — — — —
Intergovernmental 17,132 1,770 — 1,638 178,980
Charges for services — — — — —
Fines and forfeitures — — — — —
Interest on investments — — 508 102,891 —
Change in fair value of investments — — — 25,523 —
Interest on loans receivable — — 26,668 — —
Miscellaneous — — — 55,220 19,546
Total revenues 581,234 1,770 27,176 194,148 198,526
Expenditures
Current
General government — — — — —
Public safety — — — — —
Public works — — — — 199,197
Public welfare 2,846 151 40,061 2,309,972 —
Other — — — — —
Capital outlay — — — — —
Debt service
Principal — — — — —
Interest and fiscal charges — — — — —
Total expenditures 2,846 151 40,061 2,309,972 199,197
Excess (deficiency) of revenues over (under) expenditures 578,388 1,619 (12,885) (2,115,824) (671)
Other financing sources (uses)
Transfers in — — — 1,250,000 19,546
Transfers out — (1,619) — (89) (20,887)
Sale of capital assets — — — — —
Total other financing sources (uses) — (1,619) — 1,249,911 (1,341)
Net change in fund balances 578,388 — (12,885) (865,913) (2,012)
Fund balance (deficit), beginning of year 844,908 — 984,681 1,971,211 —
Fund balance (deficit), end of year $ 1,423,296 $ — $ 971,796 $ 1,105,298 $ (2,012)
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2025
127
Special Revenue Funds
Street and
Arterial
Collector
District
North 7th
Corridor TIF
District
Northeast
Urban
Renewal
District
Mandeville
TIF District
Victim/
Witness
Advocate
Revenues
Taxes $ — $ 2,474,992 $ 717,476 $ 65,518 $ —
Special assessments 1,820 — — — —
Licenses and permits — — — — —
Intergovernmental — 104,728 1,775 8 1,153
Charges for services 1,867,352 — — — —
Fines and forfeitures — — — — 41,249
Interest on investments 140,627 82,738 54,676 8,675 12,724
Change in fair value of investments 38,512 21,219 16,849 2,223 4,369
Interest on loans receivable — — — — —
Miscellaneous — — — — —
Total revenues 2,048,311 2,683,677 790,776 76,424 59,495
Expenditures
Current
General government — — — — 81,513
Public safety — — — — —
Public works 324,303 — — — —
Public welfare — 416,263 75,905 4,211 —
Other — — — — —
Capital outlay 313,446 380,267 339,194 — —
Debt service
Principal — — 46,809 — —
Interest and fiscal charges — — 45,191 — —
Total expenditures 637,749 796,530 507,099 4,211 81,513
Excess (deficiency) of revenues over (under) expenditures 1,410,562 1,887,147 283,677 72,213 (22,018)
Other financing sources (uses)
Transfers in — — — — —
Transfers out — (410,714) (49) — —
Issuance of long-term debt — — — — —
Premium on long-term debt — — — — —
Lease proceeds — — — — —
Sale of capital assets — — — — —
Total other financing sources (uses) — (410,714) (49) — —
Net change in fund balances 1,410,562 1,476,433 283,628 72,213 (22,018)
Fund balance (deficit), beginning of year 5,543,848 2,486,925 1,602,961 213,530 362,755
Fund balance (deficit), end of year $ 6,954,410 $ 3,963,358 $ 1,886,589 $ 285,743 $ 340,737
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2025
128
Special Revenue Funds
Fire
Department
Equipment
South
Bozeman TIF
District
Parks and
Trails District
Street
Lighting Park Land
Revenues
Taxes $ 979,762 $ 48,924 $ — $ — $ —
Special assessments — — 6,029 272,932 —
Licenses and permits — — — — —
Intergovernmental — 8 34,209 — —
Charges for services — — 6,840,368 — —
Fines and forfeitures — — — — —
Interest on investments — 3,785 102,656 11,654 90,425
Change in fair value of investments — 1,127 64,603 5,415 35,602
Interest on loans receivable — — — — —
Miscellaneous — — 283,452 — 222,393
Total revenues 979,762 53,844 7,331,317 290,001 348,420
Expenditures
Current
General government — — — — —
Public safety 231,175 — — — —
Public works — — — 429,265 —
Public welfare — 570 6,046,047 — 96,569
Other — — — — —
Capital outlay 222,933 — 2,853,023 — 816,546
Debt service —
Principal — — 72,902 — —
Interest and fiscal charges — — 52,893 — —
Total expenditures 454,108 570 9,024,865 429,265 913,115
Excess (deficiency) of revenues over (under) expenditures 525,654 53,274 (1,693,548) (139,264) (564,695)
Other financing sources (uses)
Transfers in 2,000,000 — — — —
Transfers out — — (16,050) — —
Issuance of long-term debt — — — — —
Premium on long-term debt — — — — —
Lease proceeds — — — — —
Sale of capital assets — — 13,587 — —
Total other financing sources (uses) 2,000,000 — (2,463) — —
Net change in fund balances 2,525,654 53,274 (1,696,011) (139,264) (564,695)
Fund balance (deficit), beginning of year (2,275,265) 86,689 4,904,381 442,593 2,834,493
Fund balance (deficit), end of year $ 250,389 $ 139,963 $ 3,208,370 $ 303,329 $ 2,269,798
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2025
129
Special Revenue Funds
Municipal Court
Restitution
Total Nonmajor
Special Revenue Funds
Revenues
Taxes $ — $ 8,262,642
Special assessments — 283,770
Licenses and permits — 4,376,649
Intergovernmental — 1,273,354
Charges for services — 16,614,529
Fine and forfeits — 41,249
Interest on investments — 1,733,611
Change in FMV of investments — 604,067
Interest on loans receivable — 26,668
Miscellaneous — 705,351
Total revenues — 33,921,890
Expenditures
Current
General government — 2,980,206
Public safety — 4,235,525
Public works — 1,219,417
Public welfare — 10,170,727
Other — 200,001
Capital outlay — 6,173,605
Debt service
Debt service: principal retirement — 237,745
Debt services: interest and fiscal charges — 100,989
Total expenditures — 25,318,215
Excess (deficiency) of revenues over (under) expenditures — 8,603,675
Other financing sources (uses)
Transfers in — 4,604,048
Transfers out — (4,754,970)
Proceeds from sale of capital asset — 16,107
Total other financing sources (uses) — (134,815)
Net change in fund balances — 8,468,860
Fund balance (deficit), beginning of year 105 48,703,619
Fund balance (deficit), end of year $ 105 $ 57,172,479
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2025
130
Debt Service Funds
SID Revolving
General
Obligation
Bonds TIF Bonds
Total Nonmajor
Debt Service
Funds
Revenues
Taxes $ — $ 4,139,726 $ — $ 4,139,726
Special assessments — — — —
Licenses and permits — — — —
Intergovernmental — — — —
Charges for services — — — —
Fine and forfeits — — — —
Interest on investments 13,592 17,611 — 31,203
Change in FMV of investments 7 136 — 143
Interest on loans receivable 23,487 — — 23,487
Miscellaneous — — — —
Total revenues 37,086 4,157,473 — 4,194,559
Expenditures
Current
General government — — — —
Public safety — — — —
Public works — — — —
Public welfare — — — —
Other — — — —
Capital outlay — — — —
Debt service —
Debt service: principal retirement — 2,450,000 472,000 2,922,000
Debt services: interest and fiscal charges — 1,688,775 273,842 1,962,617
Total expenditures — 4,138,775 745,842 4,884,617
Excess (deficiency) of revenues over (under) expenditures 37,086 18,698 (745,842) (690,058)
Other financing sources (uses)
Transfers in 167,064 — 745,842 912,906
Transfers out (180,416) — — (180,416)
Total other financing sources (uses) (13,352) — 745,842 732,490
Net change in fund balances 23,734 18,698 — 42,432
Fund balance (deficit), beginning of year 1,709,255 (193,455) — 1,515,800
Fund balance (deficit), end of year $ 1,732,989 $ (174,757) $ — $ 1,558,232
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2025
131
Permanent Fund
Cemetery Perpetual
Care
Total Nonmajor
Governmental Funds
Revenues
Taxes $ — $ 12,402,368
Special assessments — 283,770
Licenses and permits — 4,376,649
Intergovernmental — 1,273,354
Charges for services 96,189 16,710,718
Fine and forfeits — 41,249
Interest on investments 78,500 1,843,314
Change in FMV of investments 23,531 627,741
Interest on loans receivable — 50,155
Miscellaneous — 705,351
Total revenues 198,220 38,314,669
Expenditures
Current
General government — 2,980,206
Public safety — 4,235,525
Public works — 1,219,417
Public welfare — 10,170,727
Other — 200,001
Capital outlay — 6,173,605
Debt service
Debt service: principal retirement — 3,159,745
Debt services: interest and fiscal charges — 2,063,606
Total expenditures — 30,202,832
Excess (deficiency) of revenues over (under) expenditures 198,220 8,111,837
Other financing sources (uses)
Transfers in — 5,516,954
Transfers out — (4,935,386)
Proceeds from sale of capital asset — 16,107
Total other financing sources (uses) — 597,675
Net change in fund balances 198,220 8,709,512
Fund balance (deficit), beginning of year 2,002,083 52,221,502
Fund balance (deficit), end of year $ 2,200,303 $ 60,931,014
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended June 30, 2025
132
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualSpecial Revenue Funds
Departmental City Planning ARPA
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ 2,100 $ 1,154 $ (946) $ 619,100 $ 486,631 $ (132,469) $ — $ — $ —
Licenses and permits — — — 104,500 93,512 (10,988) — — —
Intergovernmental 219,900 340,556 120,656 189,100 192,025 2,925 — 174,091 174,091
Charges for services 47,300 49,525 2,225 1,634,200 1,167,594 (466,606) — — —
Interest on investments 4,700 96,862 92,162 14,400 99,780 85,380 — 5,980 5,980
Change in fair value of investments — 28,340 28,340 — 37,110 37,110 — 8,877 8,877
Miscellaneous — — — 83,500 99,070 15,570 — — —
Total revenues 274,000 516,437 242,437 2,644,800 2,175,722 (469,078) — 188,948 188,948
Expenditures
Current
General government — — — 3,964,800 2,893,301 1,071,499 — — —
Public safety 352,300 347,568 4,732 — — — — — —
Public welfare 212,600 234,670 (22,070) — — — — — —
Other 200,000 200,001 (1) — — — — — —
Capital outlay — — — 13,000 6,560 6,440 — — —
Debt service
Principal — — — — 23,569 (23,569) — — —
Interest and fiscal charges — — — — 103 (103) — — —
Total expenditures 764,900 782,239 (17,339) 3,977,800 2,923,533 1,054,267 — — —
Excess (deficiency) of revenues over (under)
expenditures (490,900) (265,802) 225,098 (1,333,000) (747,811) 585,189 — 188,948 188,948
Other financing sources (uses)
Transfers in 477,000 493,839 16,839 188,500 203,794 15,294 — — —
Transfers out — (6,663) (6,663) — (5,232) (5,232) 454,700 (454,664) (909,364)
Total other financing sources (uses) 477,000 487,176 10,176 188,500 198,562 10,062 454,700 (454,664) (909,364)
Net change in fund balances $ (13,900) 221,374 $ 235,274 $ (1,144,500) (549,249) $ 595,251 $ 454,700 (265,716) $ (720,416)
Fund Balance, beginning of year 2,427,185 3,067,147 265,716
Fund balance, end of year $ 2,648,559 $ 2,517,898 $ —
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
133
Special Revenue Funds
Local Government Study Commission Health-Medical Insurance Engineering
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ 245,300 $ 243,567 $ (1,733) $ 2,701,300 $ 2,671,640 $ (29,660) $ — $ — $ —
Charges for services — — — — — — — 11,588 11,588
Change in fair value of investments — — — — 6,775 6,775 — — —
Total revenues 245,300 243,567 (1,733) 2,701,300 2,678,415 (22,885) — 11,588 11,588
Expenditures
Current
General government 245,300 5,392 239,908 — — — — — —
Total expenditures 245,300 5,392 239,908 — — — — — —
Excess (deficiency) of revenues over (under)
expenditures — 238,175 238,175 2,701,300 2,678,415 (22,885) — 11,588 11,588
Other financing sources (uses)
Transfers out — — — 3,187,700 (3,814,689) (7,002,389) — — —
Total other financing sources (uses) — — — 3,187,700 (3,814,689) (7,002,389) — — —
Net change in fund balances $ — 238,175 $ 238,175 $ 5,889,000 (1,136,274) $ (7,025,274) $ — 11,588 $ 11,588
Fund balance, beginning of year — 608,232 —
Fund balance, end of year $ 238,175 $ (528,042) $ 11,588
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
134
Special Revenue Funds
Tree Maintenance Fire Impact Fee Street Impact Fee
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Special assessments $ 2,000 $ 2,989 $ 989 $ — $ — $ — $ — $ — $ —
Intergovernmental 7,800 32,584 24,784 — — — — — —
Charges for services 973,700 975,806 2,106 615,800 555,148 (60,652) 8,174,900 5,060,073 (3,114,827)
Interest on investments 10,000 25,671 15,671 47,400 71,024 23,624 132,000 754,855 622,855
Change in fair value of investments — 8,593 8,593 — 77,495 77,495 — 204,476 204,476
Miscellaneous 15,000 25,131 10,131 — — — — 539 539
Total revenues 1,008,500 1,070,774 62,274 663,200 703,667 40,467 8,306,900 6,019,943 (2,286,957)
Expenditures
Current
Public safety — — — 84,800 27,759 57,041 — — —
Public works — — — — — — 458,700 266,652 192,048
Public welfare 1,068,700 943,462 125,238 — — — — — —
Capital outlay 212,000 38,889 173,111 1,500,000 — 1,500,000 17,431,000 1,099,992 16,331,008
Total expenditures 1,280,700 982,351 298,349 1,584,800 27,759 1,557,041 17,889,700 1,366,644 16,523,056
Excess (deficiency) of revenues over (under)
expenditures (272,200) 88,423 360,623 (921,600) 675,908 1,597,508 (9,582,800) 4,653,299 14,236,099
Other financing sources (uses)
Transfers in — — — — 636,869 636,869 — — —
Transfers out — (5,305) (5,305) — — — — — —
Total other financing sources (uses) — (5,305) (5,305) — 636,869 636,869 — — —
Net change in fund balances $ (272,200) 83,118 $ 355,318 $ (921,600) 1,312,777 $ 2,234,377 $ (9,582,800) 4,653,299 $ 14,236,099
Fund balance, beginning of year 700,506 1,989,851 18,202,220
Fund balance, end of year $ 783,624 $ 3,302,628 $ 22,855,519
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
135
Special Revenue Funds
Building Inspection Pole Yard TIF District Community Development Block Grant
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ — $ — $ — $ 458,600 $ 564,102 $ 105,502 $ — $ — $ —
Licenses and permits 4,870,000 4,283,137 (586,863) — — — — — —
Intergovernmental 192,700 192,697 (3) 100 17,132 17,032 1,800 1,770 (30)
Charges for services 49,300 87,075 37,775 — — — — — —
Interest on investments 10,000 68,080 58,080 — — — — — —
Change in fair value of investments — 16,959 16,959 — — — — — —
Miscellaneous 19,700 — (19,700) — — — — — —
Total revenues 5,141,700 4,647,948 (493,752) 458,700 581,234 122,534 1,800 1,770 (30)
Expenditures
Current
Public safety 4,964,600 3,629,023 1,335,577 — — — — — —
Public welfare — — — 833,100 2,846 830,254 1,800 151 1,649
Capital outlay 120,000 102,755 17,245 — — — — — —
Debt service
Principal — 94,465 (94,465) — — — — — —
Interest and fiscal charges — 2,802 (2,802) — — — — — —
Total expenditures 5,084,600 3,829,045 1,255,555 833,100 2,846 830,254 1,800 151 1,649
Excess (deficiency) of revenues over (under)
expenditures 57,100 818,903 761,803 (374,400) 578,388 952,788 — 1,619 1,619
Other financing sources (uses)
Transfers out — (19,009) (19,009) — — — — (1,619) (1,619)
Sale of capital assets — 2,520 2,520 — — — — — —
Total other financing sources (uses) — (16,489) (16,489) — — — — (1,619) (1,619)
Net change in fund balances $ 57,100 802,414 $ 745,314 $ (374,400) 578,388 $ 952,788 $ — — $ —
Fund balance, beginning of year 1,438,947 844,908 —
Fund balance, end of year $ 2,241,361 $ 1,423,296 $ —
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
136
Special Revenue Funds
Economic Development Revolving Loans Community Housing Metropolitan Planning Organization
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ — $ — $ — $ — $ 8,876 $ 8,876 $ — $ — $ —
Intergovernmental — — — 1,700 1,638 (62) 504,900 178,980 (325,920)
Interest on investments — 508 508 13,600 102,891 89,291 — — —
Change in fair value of investments — — — — 25,523 25,523 — — —
Interest on loans receivable — 26,668 26,668 100 — (100) — — —
Miscellaneous — — — — 55,220 55,220 — 19,546 19,546
Total revenues — 27,176 27,176 15,400 194,148 178,748 504,900 198,526 (306,374)
Expenditures
Current
Public works — — — — — — 598,800 199,197 399,603
Public welfare 40,000 40,061 (61) 3,541,700 2,309,972 1,231,728 — — —
Total expenditures 40,000 40,061 (61) 3,541,700 2,309,972 1,231,728 598,800 199,197 399,603
Excess (deficiency) of revenues over (under)
expenditures (40,000) (12,885) 27,115 (3,526,300) (2,115,824) 1,410,476 (93,900) (671) 93,229
Other financing sources (uses)
Transfers in — — — 1,250,000 1,250,000 — 74,600 19,546 (55,054)
Transfers out — — — — (89) (89) — (20,887) (20,887)
Total other financing sources (uses) — — — 1,250,000 1,249,911 (89) 74,600 (1,341) (75,941)
Net change in fund balances $ (40,000) (12,885) $ 27,115 $ (2,276,300) (865,913) $ 1,410,387 $ (19,300) (2,012) $ 17,288
Fund balance, beginning of year 984,681 1,971,211 —
Fund balance, end of year $ 971,796 $ 1,105,298 $ (2,012)
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
137
Special Revenue Funds
Street Arterial and Collector District North 7th Corridor TIF District Northeast Urban Renewal TIF District
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ — $ — $ — $ 2,172,500 $ 2,474,992 $ 302,492 $ 595,800 $ 717,476 $ 121,676
Special assessments 4,000 1,820 (2,180) — — — — — —
Intergovernmental 573,900 — (573,900) 1,600 104,728 103,128 500 1,775 1,275
Charges for services 1,883,000 1,867,352 (15,648) — — — — — —
Interest on investments 20,000 140,627 120,627 — 82,738 82,738 — 54,676 54,676
Change in fair value of investments — 38,512 38,512 — 21,219 21,219 — 16,849 16,849
Miscellaneous 100,000 — (100,000) — — — — — —
Total revenues 2,580,900 2,048,311 (532,589) 2,174,100 2,683,677 509,577 596,300 790,776 194,476
Expenditures
Current
Public works 302,000 324,303 (22,303) — — — — — —
Public welfare — — — 883,000 416,263 466,737 1,211,300 75,905 1,135,395
Capital outlay 6,139,000 313,446 5,825,554 — 380,267 (380,267) — 339,194 (339,194)
Debt service
Principal — — — — — — 45,500 46,809 (1,309)
Interest and fiscal charges — — — — — — 46,600 45,191 1,409
Total expenditures 6,441,000 637,749 5,803,251 883,000 796,530 86,470 1,303,400 507,099 796,301
Excess (deficiency) of revenues over (under)
expenditures (3,860,100) 1,410,562 5,270,662 1,291,100 1,887,147 596,047 (707,100) 283,677 990,777
Other financing sources (uses)
Transfers out — — — 410,600 (410,714) (821,314) — (49) (49)
Issuance of long-term debt 2,885,400 — (2,885,400) — — — — — —
Total other financing sources (uses) 2,885,400 — (2,885,400) 410,600 (410,714) (821,314) — (49) (49)
Net change in fund balances $ (974,700) 1,410,562 $ 2,385,262 $ 1,701,700 1,476,433 $ (225,267) $ (707,100) 283,628 $ 990,728
Fund balance, beginning of year 5,543,848 2,486,925 1,602,961
Fund balance, end of year $ 6,954,410 $ 3,963,358 $ 1,886,589
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
138
Special Revenue Funds
Mandeville/Wheat Drive TIF District Victim/Witness Advocate Fire Department Equipment
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ 28,200 $ 65,518 $ 37,318 $ — $ — $ — $ 1,023,800 $ 979,762 $ (44,038)
Intergovernmental 100 8 (92) 1,200 1,153 (47) — — —
Fines and forfeitures — — — 63,100 41,249 (21,851) — — —
Interest on investments — 8,675 8,675 5,200 12,724 7,524 9,200 — (9,200)
Change in fair value of investments — 2,223 2,223 — 4,369 4,369 — — —
Total revenues 28,300 76,424 48,124 69,500 59,495 (10,005) 1,033,000 979,762 (53,238)
Expenditures
Current
General government — — — 131,500 81,513 49,987 — — —
Public safety — — — — — — 70,000 231,175 (161,175)
Public welfare 144,100 4,211 139,889 — — — — — —
Capital outlay — — — — — — 364,000 222,933 141,067
Total expenditures 144,100 4,211 139,889 131,500 81,513 49,987 1,228,000 454,108 773,892
Excess (deficiency) of revenues over (under)
expenditures (115,800) 72,213 188,013 (62,000) (22,018) 39,982 (195,000) 525,654 720,654
Other financing sources (uses)
Transfers in — — — — — — — 2,000,000 2,000,000
Total other financing sources (uses) — — — — — — — 2,000,000 2,000,000
Net change in fund balances $ (115,800) 72,213 $ 188,013 $ (62,000) (22,018) $ 39,982 $ (195,000) 2,525,654 $ 2,720,654
Fund balance, beginning of year 213,530 362,755 (2,275,265)
Fund balance, end of year $ 285,743 $ 340,737 $ 250,389
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
139
Special Revenue Funds
South Bozeman TIF District Parks and Trails District Street Lighting
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ 47,300 $ 48,924 $ 1,624 $ — $ — $ — $ — $ — $ —
Special assessments — — — 13,300 6,029 (7,271) 97,000 272,932 175,932
Intergovernmental 100 8 (92) 34,300 34,209 (91) — — —
Charges for services — — — 6,847,600 6,840,368 (7,232) — — —
Interest on investments — 3,785 3,785 13,800 102,656 88,856 — 11,654 11,654
Change in fair value of investments — 1,127 1,127 — 64,603 64,603 — 5,415 5,415
Miscellaneous — — — 3,510,000 283,452 (3,226,548) — — —
Total revenues 47,400 53,844 6,444 10,419,000 7,331,317 (3,087,683) 97,000 290,001 193,001
Expenditures
Current
Public works — — — — — — 512,400 429,265 83,135
Public welfare 96,200 570 95,630 6,284,000 6,046,047 237,953 — — —
Capital outlay — — — 8,074,900 2,853,023 5,221,877 — — —
Debt service
Principal — — — 73,000 72,902 98 — — —
Interest and fiscal charges — — — 52,900 52,893 7 — — —
Total expenditures 96,200 570 95,630 14,484,800 9,024,865 5,459,935 512,400 429,265 83,135
Excess (deficiency) of revenues over (under)
expenditures (48,800) 53,274 102,074 (4,065,800) (1,693,548) 2,372,252 (415,400) (139,264) 276,136
Other financing sources (uses)
Transfers out — — — — (16,050) (16,050) — — —
Issuance of long-term debt — — — 550,800 — (550,800) — — —
Sale of capital assets — — — — 13,587 13,587 — — —
Total other financing sources (uses) — — — 550,800 (2,463) (553,263) — — —
Net change in fund balances $ (48,800) 53,274 $ 102,074 $ (3,515,000) (1,696,011) $ 1,818,989 $ (415,400) (139,264) $ 276,136
Fund balance, end of year 86,689 4,904,381 442,593
Fund balance, end of year $ 139,963 $ 3,208,370 $ 303,329
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
140
Special Revenue Funds
Park Land Municipal Court Restitution Total
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ — $ — $ — $ — $ — $ — $ 7,894,000 $ 8,262,642 $ 368,642
Special assessments — — — — — — $ 116,300 $ 283,770 167,470
Licenses and permits — — — — — — $ 4,974,500 $ 4,376,649 (597,851)
Intergovernmental — — — — — — $ 1,729,700 $ 1,273,354 (456,346)
Charges for services — — — — — — $ 20,225,800 $ 16,614,529 (3,611,271)
Fines and forfeitures — — — — — — $ 63,100 $ 41,249 (21,851)
Interest on investments 66,100 90,425 24,325 — — — $ 346,400 $ 1,733,611 1,387,211
Change in fair value of investments — 35,602 35,602 — — — $ — $ 604,067 604,067
Interest on loans receivable — — — — — — $ 100 $ 26,668 26,568
Miscellaneous 786,200 222,393 (563,807) — — — $ 4,514,400 $ 705,351 (3,809,049)
Total revenues 852,300 348,420 (503,880) — — — 39,864,300 33,921,890 (5,942,410)
Expenditures
Current
General government — — — — — — $ 4,341,600 $ 2,980,206 1,361,394
Public safety — — — — — — $ 5,471,700 $ 4,235,525 1,236,175
Public works — — — — — — $ 1,871,900 $ 1,219,417 652,483
Public welfare 613,800 96,569 517,231 — — — $ 14,930,300 $ 10,170,727 4,759,573
Other — — — — — — $ 200,000 $ 200,001 (1)
Capital outlay 706,600 816,546 (109,946) — — — $ 34,560,500 $ 6,173,605 28,386,895
Debt service
Principal — — — — — — $ 912,500 $ 237,745 674,755
Interest and fiscal charges — — — — — — $ 99,500 $ 100,989 (1,489)
Total expenditures 1,320,400 913,115 407,285 — — — 62,388,000 25,318,215 37,069,785
Excess (deficiency) of revenues over (under)
expenditures (468,100) (564,695) (96,595) — — — (22,523,700) 8,603,675 31,127,375
Other financing sources (uses)
Transfers in — — — — — — $ 1,990,100 $ 4,604,048 2,613,948
Transfers out — — — — — — $ 4,053,000 $ (4,754,970) (8,807,970)
Issuance of long-term debt — — — — — — $ 3,436,200 $ — (3,436,200)
Sale of capital assets — — — — — — $ — $ 16,107 16,107
Total other financing sources (uses) — — — — — — 9,479,300 (134,815) (9,614,115)
Net change in fund balances $ (468,100) (564,695) $ (96,595) $ — — $ — $ (13,044,400) 8,468,860 $ 21,513,260
Fund balance, end of year 2,834,493 105 48,703,619
Fund balance, end of year $ 2,269,798 $ 105 $ 57,172,479
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
141
Debt Service Funds
SID Revolving General Obligation Bonds TIF Bonds
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ — $ — $ — $ 4,139,000 $ 4,139,726 $ 726 $ — $ — $ —
Interest on investments — 13,592 13,592 — 17,611 17,611 — — —
Change in fair value of investments — 7 7 — 136 136 — — —
Interest on loans receivable — 23,487 23,487 — — — — — —
Total revenues — 37,086 37,086 4,139,000 4,157,473 18,473 — — —
Expenditures
Debt service
Principal — — — 2,450,000 2,450,000 — 472,000 472,000 —
Interest and fiscal charges — — — 1,689,000 1,688,775 225 273,900 273,842 58
Total expenditures — — — 4,139,000 4,138,775 225 745,900 745,842 58
Excess (deficiency) of revenues over (under)
expenditures — 37,086 37,086 — 18,698 18,698 (745,900) (745,842) 58
Other financing sources (uses)
Transfers in — 167,064 167,064 — — — 745,900 745,842 (58)
Transfers out 180,500 (180,416) (360,916) — — — — — —
Total other financing sources (uses) 180,500 (13,352) (193,852) — — — 745,900 745,842 (58)
Net change in fund balances $ 180,500 23,734 $ (156,766) $ — 18,698 $ 18,698 $ — — $ —
Fund balance, end of year 1,709,255 (193,455) —
Fund balance, end of year $ 1,732,989 $ (174,757) $ —
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
142
Debt Service Funds Permanent Fund
Total Cemetery Perpetual Care Total
Final
Budget
Actual
Amounts
Variance with
Final Budget
Final
Budget
Actual
Amounts
Variance with
Final Budget Final Budget
Actual
Amounts
Variance with
Final Budget
Revenues
Taxes $ 4,139,000 $ 4,139,726 $ 726 $ — $ — $ — $ 12,033,000 $ 12,402,368 $ 369,368
Special assessments — — — — — — 116,300 283,770 167,470
Licenses and permits — — — — — — 4,974,500 4,376,649 (597,851)
Intergovernmental — — — — — — 1,729,700 1,273,354 (456,346)
Charges for services — — — 82,200 96,189 13,989 20,308,000 16,710,718 (3,597,282)
Fines and forfeitures — — — — — — 63,100 41,249 (21,851)
Interest on investments — 31,203 31,203 20,000 78,500 58,500 366,400 1,843,314 1,476,914
Change in fair value of investments — 143 143 — 23,531 23,531 — 627,741 627,741
Interest on loans receivable — 23,487 23,487 — — — 100 50,155 50,055
Miscellaneous — — — — — — 4,514,400 705,351 (3,809,049)
Total revenues 4,139,000 4,194,559 55,559 102,200 198,220 96,020 44,105,500 38,314,669 (5,790,831)
Expenditures
Current
General government — — — — — — 4,341,600 2,980,206 1,361,394
Public safety — — — — — — 5,471,700 4,235,525 1,236,175
Public works — — — — — — 1,871,900 1,219,417 652,483
Public welfare — — — — — — 14,930,300 10,170,727 4,759,573
Other — — — — — — 200,000 200,001 (1)
Capital outlay — — — — — — 34,560,500 6,173,605 28,386,895
Debt service
Principal 2,922,000 2,922,000 — — — — 3,834,500 3,159,745 674,755
Interest and fiscal charges 1,962,900 1,962,617 283 — — — 2,062,400 2,063,606 (1,206)
Total expenditures 4,884,900 4,884,617 283 — — — 67,272,900 30,202,832 37,070,068
Excess (deficiency) of revenues over (under)
expenditures (745,900) (690,058) 55,842 102,200 198,220 96,020 (23,167,400) 8,111,837 31,279,237
Other financing sources (uses)
Transfers in 745,900 912,906 167,006 — — — 2,736,000 5,516,954 2,780,954
Transfers out 180,500 (180,416) (360,916) — — — 4,233,500 (4,935,386) (9,168,886)
Issuance of long-term debt — — — — — — 3,436,200 — (3,436,200)
Sale of capital assets — — — — — — — 16,107 16,107
Total other financing sources (uses) 926,400 732,490 (193,910) — — — 10,405,700 597,675 (9,808,025)
Net change in fund balances $ 180,500 42,432 $ (138,068) $ 102,200 198,220 $ 96,020 $ (12,761,700) 8,709,512 $ 21,471,212
Fund balance, end of year 1,515,800 2,002,083 52,221,502
Fund balance, end of year $ 1,558,232 $ 2,200,303 $ 60,931,014
City of Bozeman, MontanaCombining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Nonmajor Governmental Funds
Year Ended June 30, 2025
143
Nonmajor Enterprise FundsDescription of Nonmajor Funds
Enterprise Funds
The enterprise funds account for the operations that are financed and operated in a manner similar to private business
enterprises where the intent of the City is that the costs (expenses, including depreciation) of providing goods and services
to the general public on a continuing basis be financed or recovered primarily through user charges, or where the City has
decided that periodic determination of the revenues earned, expenses incurred and/or net income is appropriate for capital
maintenance, public policy, management control, accountability, or for other purposes.
The City operates the following nonmajor enterprise funds:
Parking Fund – Accounts for the City’s parking enforcement and facilities operations.
Stormwater Fund – Accounts for the City’s stormwater management and mitigation operations.
144
Combining Balance Sheet
Parking Stormwater Total
Assets
Current assets
Cash and investments $ 1,560,504 $ 1,721,900 $ 3,282,404 Receivables (net of allowance for uncollectibles):Accrued interest 8,240 5,928 14,168 Accounts — 196,092 196,092
Special assessments — 486 486
Total current assets 1,568,744 1,924,406 3,493,150
Noncurrent assetsRestricted assetsRestricted cash and investments 811,098 58,288 869,386 Capital assets
Land 303,436 — 303,436 Construction in progress — 677,336 677,336 Buildings 11,971,077 24,215 11,995,292 Machinery and equipment 631,872 1,319,319 1,951,191
Vehicles 269,292 197,137 466,429 Infrastructure 47,058 10,848,672 10,895,730 Less accumulated depreciation/amortization (6,706,991) (1,872,140) (8,579,131)
Total capital assets, net of accumulated depreciation/amortization 6,515,744 11,194,539 17,710,283
Total noncurrent assets 7,326,842 11,252,827 18,579,669
Total assets 8,895,586 13,177,233 22,072,819
Deferred outflows of resourcesOPEB 10,195 9,133 19,328
Pensions 51,475 123,822 175,297
Total deferred outflows of resources 61,670 132,955 194,625
LiabilitiesCurrent liabilitiesAccounts payable 67,792 110,493 178,285
Current portion of long-term debt 26,083 232,572 258,655
Total current liabilities 93,875 343,065 436,940
Noncurrent liabilitiesLong-term debt, net of current portionBonds payable — 930,000 930,000 Finance purchases - non current — 308,781 308,781
Compensated absences payable 250 1,103 1,353 Total OPEB liability 58,989 40,113 99,102 Net pension liability 240,319 578,078 818,397
Total noncurrent liabilities 299,558 1,858,075 2,157,633
Total liabilities 393,433 2,201,140 2,594,573
Deferred inflows of resourcesOPEB plans 17,280 13,129 30,409
Pension plans 5,344 12,855 18,199
Total deferred inflows of resources 22,624 25,984 48,608
Net positionNet investment in capital assets 6,515,744 9,893,011 16,408,755 Restricted for:Parking capital projects 811,098 — 811,098
Unrestricted 1,214,357 1,190,053 2,404,410
Total net position $ 8,541,199 $ 11,083,064 $ 19,624,263
City of Bozeman, MontanaCombining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2025
145
Combining Statement of Revenues, Expenditures, and Changes in Net Position
Parking Stormwater Total
Operating revenues
Charges for services $ 1,662,751 $ 2,155,476 $ 3,818,227
Operating expenses
Salaries and benefits 325,921 952,516 1,278,437
Materials and supplies 48,434 19,113 67,547
Repairs and maintenance 16,405 3,120 19,525
Utilities 43,500 5,787 49,287
Administrative charges 155,040 574,487 729,527
Other services 573,661 357,194 930,855
Depreciation/Amortization 359,252 273,936 633,188
Total operating expenses 1,522,213 2,186,153 3,708,366
Operating income (loss) 140,538 (30,677) 109,861
Nonoperating revenues (expenses)
Interest income 75,780 61,621 137,401
Change in fair value of investments 22,098 28,196 50,294
Interest expense — (27,175) (27,175)
Intergovernmental revenues 4,833 11,627 16,460
Miscellaneous revenue 11,117 — 11,117
Debt issuance cost — (2,953) (2,953)
Total nonoperating
revenues (expenses) 113,828 71,316 185,144
Income (loss) before contributions and transfers 254,366 40,639 295,005
Transfers out (4,877) (56,212) (61,089)
Capital contributions — 1,132,617 1,132,617
Change in net position 249,489 1,117,044 1,366,533
Total net position, beginning of year 8,291,710 9,966,020 18,257,730
Total net position, end of year $ 8,541,199 $ 11,083,064 $ 19,624,263
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Net Position
Nonmajor Enterprise Funds
Year Ended June 30, 2025
146
Combining Statement of Cash FlowsParkingStormwaterTotal
Operating activities
Receipts from customers and users $ 1,662,751 $ 2,147,455 $ 3,810,206 Other operating cash receipts 11,117 — 11,117 Payments to suppliers (686,049) (313,255) (999,304) Payments to and on behalf of employees (361,408) (893,335) (1,254,743)
Payments to internal service funds and administration (155,040) (574,487) (729,527) Net Cash from (Used for) Operating Activities 471,371 366,378 837,749
Noncapital financing activities
Transfers to other funds (4,877) (56,212) (61,089)
Intergovernmental operating grants 4,833 11,627 16,460
Net Cash from Noncapital Financing Activities (44) (44,585) (44,629)
Capital and related financing activitiesAcquisition of capital assets (136,242) (962,421) (1,098,663)
Issuance of debt — 336,491 336,491 Debt issuance costs — (2,953) (2,953) Debt servicePrincipal — (89,000) (89,000)
Interest — (27,175) (27,175) Net cash used for capital and related financing activities (136,242) (745,058) (881,300) Investing activityInterest and dividends from investments 97,097 92,481 189,578
Change in cash and investments 432,182 (330,784) 101,398 Cash and investments, beginning of year 1,939,420 2,110,972 4,050,392 Cash and investments, end of year 2,371,602 1,780,188 4,151,790 Cash and investments consists of:
Cash and investments $ 1,560,504 $ 1,721,900 3,282,404 Restricted cash and investments 811,098 58,288 869,386 Totals $ 2,371,602 $ 1,780,188 $ 4,151,790
Reconciliation of operating loss to
Net cash from (used for) operating activitiesOperating income (loss) 140,538 (30,677) 109,861 Adjustments to reconcile operating income (loss) to net cash from
(used for) operating activitiesDepreciation/amortization 359,252 273,936 633,188 Other operating cash receipts 11,117 — 11,117 Changes in assets and liabilities
Accounts — (8,234) (8,234) Special assessments — 213 213 Pensions 32,769 35,782 68,551 OPEB 500 650 1,150
Accounts payable (4,049) 71,959 67,910 Compensated absences payable 11,405 50,991 62,396 Net pension liability (77,355) (23,770) (101,125) Total OPEB liability (1,019) (1,325) (2,344)
Pension plans (5,987) (8,611) (14,598) OPEB plans 4,200 5,464 9,664 Net cash from (used for) operating activities $ 471,371 $ 366,378 $ 837,749
Supplemental schedule of noncash
Investing and financing activitiesAcquisition of capital assets throughCapital contributions $ — $ 1,132,617 $ 1,132,617 Acquisition of capital assets through debt — 336,491 336,491
Acquisition of capital assets on account — 3,325 3,325 Increase (decrease) in fair value of investments 22,098 28,196 50,294 On-behalf pension contribution and expense 4,833 11,627 16,460 Total noncash transactions $ 26,931 $ 1,512,256 $ 1,539,187
City of Bozeman, MontanaCombining Statement of Cash Flows
Nonmajor Enterprise Funds
Year Ended June 30, 2025
147
Internal Service FundsDescription of Internal Service Funds
Internal Service Funds
Internal Service Funds are used to account for the goods or services provided by one department to other departments of
the City on a cost-reimbursement basis.
The City operates the following internal service funds:
Vehicle Maintenance Shop – Accounts for the maintenance and repair of vehicles used in operation of City services.
Medical Health Insurance – Accounts for insurance premiums received from the various City departments and retirees, and
the related costs of health and dental premiums paid to the City’s insurance provider.
Public Works Administration – Accounts for the professional level management, engineering, and GIS technical support
provided to other Public Works divisions, including water, wastewater, solid waste, stormwater, in addition to support
provided to other City departments.
148
Combining Balance SheetVehicle
Maintenance
Shop
Medical Health
Insurance
Public Works
Administration Total
Assets
Current assets
Cash and investments $ 203,819 $ 1,052,023 $ 4,608,379 $ 5,864,221 Receivables (net of allowance for uncollectibles):
Accrued interest 493 3,718 16,081 20,292
Accounts 2,928 18,299 — 21,227
Prepaid items — 611,802 — 611,802 Other assets — — 8,657 8,657
Total current assets 207,240 1,685,842 4,633,117 6,526,199
Noncurrent assetsCapital assets
Buildings 1,424,215 — 121,905 1,546,120
Machinery and equipment 266,764 — 457,954 724,718
Vehicles 96,638 — 142,487 239,125 Infrastructure — — 32,769 32,769
Subscription-based IT assets — — 70,767 70,767
Right-of-use lease assets - building — — 126,936 126,936 Less accumulated depreciation/
amortization (1,021,291) — (594,959) (1,616,250)
Total capital assets, net of accumulated
depreciation/amortization 766,326 — 357,859 1,124,185 Total noncurrent assets 766,326 — 357,859 1,124,185
Total assets 973,566 1,685,842 4,990,976 7,650,384
Deferred outflows of resourcesOPEB 12,026 — 25,097 37,123
Pensions 153,075 — 516,696 669,771 Total deferred outflows of
resources 165,101 — 541,793 706,894
Liabilities
Current liabilitiesAccounts payable 72,815 515 121,027 194,357
Current portion of long-term debt 36,575 — 287,375 323,950
Total current liabilities 109,390 515 408,402 518,307
Noncurrent liabilities
Long-term debt, net of current portion
Leases payable — — 76,316 76,316
Compensated absences payable 28,576 — 150,711 179,287 Total OPEB liability 68,934 — 212,440 281,374
Net pension liability 714,648 — 2,412,263 3,126,911
Total noncurrent liabilities 812,158 — 2,851,730 3,663,888
Total liabilities 921,548 515 3,260,132 4,182,195
Deferred inflows of resources
OPEB plans 18,039 — 69,245 87,284
Pension plans 15,892 — 53,642 69,534 Total deferred inflows of resources 33,931 — 122,887 156,818
Net position
Net investment in capital assets 766,326 — 183,611 949,937 Unrestricted (583,138) 1,685,327 1,966,139 3,068,328
Total net position $ 183,188 $ 1,685,327 $ 2,149,750 $ 4,018,265
City of Bozeman, MontanaCombining Balance Sheet
Internal Service Funds
June 30, 2025
149
Combining Statement of Revenues, Expenditures, and Changes in Net PositionVehicle
Maintenance
Shop
Medical Health
Insurance
Public Works
Administration Total
Operating revenues
Charges for services $ 2,290,477 $ 7,163,045 $ 7,111,018 $ 16,564,540
Operating expenses
Salaries and benefits 1,135,742 — 3,626,759 4,762,501
Materials and supplies 645,335 — 43,120 688,455
Repairs and maintenance 11,210 — 1,635 12,845 Utilities 25,412 — 10,206 35,618
Administrative charges 339,798 — 729,931 1,069,729
Other services 71,129 7,083,615 884,581 8,039,325
Depreciation/amortization 74,014 — 164,106 238,120 Total operating expenses 2,302,640 7,083,615 5,460,338 14,846,593
Operating income (loss) (12,163) 79,430 1,650,680 1,717,947
Nonoperating revenues (expenses)
Gain (loss) on disposal of assets 6,079 — — 6,079
Interest income 2,750 15,795 138,183 156,728
Change in fair value of investments 1,182 (2,861) 29,859 28,180 Interest expense — — (11,010) (11,010)
Intergovernmental revenues 14,374 — 48,517 62,891
Miscellaneous revenue 446 522,945 — 523,391
Total nonoperating
revenues (expenses) 24,831 535,879 205,549 766,259
Income (loss) before contributions and transfers 12,668 615,309 1,856,229 2,484,206
Transfers in — 484,741 102,771 587,512
Transfers out (9,740) — (19,861) (29,601)
Change in net position 2,928 1,100,050 1,939,139 3,042,117
Total net position, beginning of year 180,260 585,277 210,611 976,148
Total net position, end of year $ 183,188 $ 1,685,327 $ 2,149,750 $ 4,018,265
City of Bozeman, MontanaCombining Statement of Revenues, Expenditures, and Changes in Fund Net Position
Internal Service Funds
Year Ended June 30, 2025
150
Combining Statement of Cash FlowsVehicle
Maintenance
Shop
Medical Health
Insurance
Public Works
Administration Total
Operating activitiesReceipts from customers and users $ 2,290,790 $ 7,168,248 $ 7,111,018 $ 16,570,056 Other operating cash receipts 446 522,945 — 523,391
Payments to suppliers (789,148) (7,129,083) (1,086,695) (9,004,926) Payments to and on behalf of employees (1,062,105) — (3,811,244) (4,873,349) Payments to internal service funds and administration (339,798) — (729,931) (1,069,729)
Net cash from (used for) operating activities 100,185 562,110 1,483,148 2,145,443
Noncapital financing activitiesTransfers to other funds (9,740) — (19,861) (29,601)
Transfers from other funds — 484,741 102,771 587,512 Intergovernmental operating grants 14,374 — 48,517 62,891
Net cash from noncapital financing activities 4,634 484,741 131,427 620,802
Capital and related financing activitiesPayments received on advances to other funds — (4,044) — (4,044) Acquisition of capital assets (11,295) — (3,455) (14,750)
Debt servicePrincipal — — (109,678) (109,678) Interest — — (12,113) (12,113)
Net cash used for capital and related financing activities (11,295) (4,044) (125,246) (140,585)
Investing activity
Interest and dividends from investments 3,848 9,216 163,038 176,102
Change in cash and investments 97,372 1,052,023 1,652,367 2,801,762
Cash and investments, beginning of year 106,447 — 2,956,012 3,062,459
Cash and investments, end of year $ 203,819 $ 1,052,023 $ 4,608,379 $ 5,864,221
Cash and investments consists of:
Cash and investments $ 203,819 $ 1,052,023 $ 4,608,379 $ 5,864,221
Reconciliation of operating loss to
Net cash (used for) from operating activitiesOperating income (loss)$ (12,163) $ 79,430 $ 1,650,680 $ 1,717,947
Adjustments to reconcile operating loss to net cash from (used for)
operating activities
Depreciation/amortization 74,014 — 164,106 238,120 Other operating cash receipts 446 522,945 — 523,391 Changes in assets and liabilitiesAccounts 313 5,203 — 5,516
Prepaid items — (45,584) — (45,584) Pensions 29,384 — 236,706 266,090 OPEB 670 — 2,437 3,107 Accounts payable (36,062) 116 (147,153) (183,099)
Compensated absences payable 21,345 — 37,266 58,611 Net pension liability 26,617 — (428,726) (402,109) Total OPEB liability (1,365) — (4,968) (6,333) Pension plans (8,648) — (47,689) (56,337)
OPEB plans 5,634 — 20,489 26,123
Net cash from (used for) operating activities $ 100,185 $ 562,110 $ 1,483,148 $ 2,145,443
Supplemental schedule of noncashInvesting and financing activitiesAcquisition of capital assets throughAcquisition of capital assets on account — — 3,455 3,455
Increase (decrease) in fair value of investments 1,182 (2,861) 29,859 28,180
On-behalf pension contribution and expense 14,374 — 48,517 62,891
Total noncash transactions $ 15,556 $ (2,861) $ 81,831 $ 94,526
City of Bozeman, MontanaCombining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2025
151
Custodial FundsDescription of Custodial Funds
Custodial Funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other
governments. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (or
other employee benefit) trust funds, investment trust funds, or private-purpose trust funds.
The City has the following custodial funds:
Municipal Court Trust Fund – Accounts for monies held for appearance bonds and restitution to criminal arrests and
reimbursement for damage caused.
Tourism Business Improvement District – Accounts for amounts collected from hotels on behalf of the District, a special-
purpose government, whose purpose is to enhance the economic vitality of Bozeman by promoting tourism through sales
and marketing strategies.
152
Combining Statement of Fiduciary Net Position
Tourism Business
Municipal Improvement Custodial
Court District Funds
Assets
Cash and investments $ 486,500 $ 50,170 $ 536,670
Cash and investments — 50,170
Restricted cash and investments 486,500
Receivables:
Accounts 2,892 — 2,892
Total assets 489,392 50,170 539,562
Liabilities
Accounts payable 491,833 — 491,833
Total liabilities 491,833 — 491,833
Net Position
Restricted for
Rev/expend off set (20) — (20)
Fund balance (2,421) 50,170 47,749
Other organization or individuals (2,441) 50,170 47,729
Total liabilities and net position $ 489,392 $ 50,170 $ 539,562
City of Bozeman, Montana
Combining Statement of Fiduciary Net PositionCustodial Funds
June 30, 2025
153
Combining Statement of Changes in Fiduciary Net Position
Tourism Business
Municipal Improvement Custodial
Court District Funds
Additions
Miscellaneous $ — $ — $ —
— — —
Deductions
Miscellaneous 20 — 20
Change in net position (20) — (20)
Net position, beginning (2,421) 50,170 47,749
Net position, ending $ (2,441) $ 50,170 $ 47,729
City of Bozeman, MontanaCombining Statement of Changes in Fiduciary Net PositionCustodial Funds
Year Ended June 30, 2025
154
Statistical SectionYear Ended June 30, 2025City of Bozeman, Montana
Introduction to Statistical Section
This part of the City of Bozeman's annual comprehensive financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information
says about the City's overall financial health.
Financial Trends – These schedules contain trend information to help the reader understand and assess how the
government’s financial position has changed over time.
Components of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159
Changes in Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160
Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163
Changes in Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .164
Revenue Capacity – These schedules contain information to assist the reader in understanding and assessing the factors
affecting the government’s ability to generate its own-source revenues.
Assessed Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167
Tax Increment District Taxable Valuation Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .169
Downtown Urban Renewal District & Comparison to City Taxable Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
Direct and Overlapping Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173
Principal Property Taxpayers in Downtown Urban Renewal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .176
Properties in the Bozeman Midtown Urban Renewal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .177
Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District . . . . . . . . . . . . . . . . . . . . .178
Property Tax Levies and Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179
Water Sold by Type of Customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180
Water and Sewer Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181
City of Bozeman, Montana
Introduction to Statistical Section
Year Ended June 30, 2025
Debt Capacity – These schedules present information to help the reader assess the affordability of the government’s
current levels of outstanding debt and the government’s ability to issue additional debt in the future.
Ratios of General Bonded Debt by Type .........................................................................................................................183
Ratios of General Bonded Debt Outstanding ..................................................................................................................184
Legal Debt Margin Information .......................................................................................................................................186
Pledged Revenue Coverage – Governmental Activities ..................................................................................................187
Pledged Revenue Coverage – Business-Type Activities ..................................................................................................188
Debt Service Requirements and Coverage for Tax Increment Districts ..........................................................................189
Summary of Outstanding SIDs .........................................................................................................................................190
Revolving Fund Balance and Bond Secured Thereby ......................................................................................................191
Special Improvement District Assessment Billing and Collections..................................................................................192
Demographic and Economic Information – These schedules offer demographic and economic information to (1) assist the
reader in understanding the socioeconomic environment within which a government operates and (2) provide information
that facilitates comparisons of financial statement information over time and among governments.
Demographic and Economic Statistics ..................................................................................................................................194
Principal Employers ...............................................................................................................................................................195
Operating Information – These schedules contain service and infrastructure data to help the reader understand how the
information in the government’s financial report relates to the services the government provides and the activities it
performs.
Full-Time Equivalent City Government Employees by Function/Program ............................................................................196
Operating Indicators by Function/Program ..........................................................................................................................198
Capital Assets Statistics by Function/Program ......................................................................................................................199
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial
reports for the relevant year.
City of Bozeman, Montana
Introduction to Statistical Section
Year Ended June 30, 2025
FINANCIAL TRENDS SECTION
City of Bozeman, MontanaComponents of Net Position
Last Ten Fiscal Years
Components of Net Position
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities
Net investment in capital assets $ 104,342,191 $ 115,696,956 $ 137,058,945 $ 155,191,911 $ 118,577,368 $ 196,931,242 $ 217,241,690 $ 236,885,005 $ 259,727,878 $ 278,556,381
Restricted 42,829,320 41,583,992 36,522,195 21,202,050 69,208,376 68,458,112 55,321,501 46,965,688 69,617,937 74,795,824
Unrestricted (3,923,466) (4,839,467) (5,514,909) 4,799,426 27,280,681 (31,383,436) (15,708,281) 7,527,542 3,658,281 8,458,207
Total governmental activities net position 143,248,045 152,441,481 168,066,231 181,193,387 215,066,425 234,005,918 256,854,910 291,378,235 333,004,096 361,810,412
Business-type activities
Net investment in capital assets 221,385,655 229,372,281 239,254,236 245,190,586 260,124,896 271,812,360 286,461,913 297,691,119 308,955,362 320,698,156
Restricted 4,990,635 8,866,951 13,070,517 12,671,931 12,307,565 14,839,596 29,337,941 31,659,041 45,687,628 49,009,376
Unrestricted 10,582,408 9,154,014 12,923,470 21,053,523 25,801,918 23,152,084 14,910,714 15,428,360 5,707,868 8,772,060
Total business-type activities net position 236,958,698 247,393,246 265,248,223 278,916,040 298,234,379 309,804,040 330,710,568 344,778,520 360,350,858 378,479,592
Primary government
Net investment in capital assets 325,727,846 345,069,237 376,313,181 400,382,497 378,702,264 468,743,602 503,703,603 534,576,124 568,683,240 599,254,537
Restricted 47,819,955 50,450,943 49,592,712 33,873,981 81,515,941 83,297,708 84,659,442 78,624,729 115,305,565 123,805,200
Unrestricted 6,658,942 4,314,547 7,408,561 25,852,949 53,082,599 (8,231,352) (797,567) 22,955,902 9,366,149 17,230,267
Total primary government net position $ 380,206,743 $ 399,834,727 $ 433,314,454 $ 460,109,427 $ 513,300,804 $ 543,809,958 $ 587,565,478 $ 636,156,755 $ 693,354,954 $ 740,290,004
City of Bozeman, MontanaComponents of Net Position
Last Ten Fiscal Years
159
Changes in Net Position
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities
General government $ 8,058,925 $ 9,415,702 $ 9,896,366 $ 10,310,075 $ 9,854,245 $ 11,517,404 $ 12,352,494 $ 17,726,413 $ 21,008,788 $ 21,708,850
Public safety 18,391,357 17,689,004 18,637,422 19,699,377 20,664,687 22,698,030 22,442,450 28,002,592 29,522,432 33,434,205
Public works 6,861,939 7,857,917 8,615,272 9,850,802 9,781,345 11,018,661 12,176,141 14,646,742 14,780,608 15,732,700
Public health and welfare 7,994,697 9,210,264 9,476,010 9,658,817 10,354,632 13,429,890 16,211,729 15,343,285 20,213,912 22,296,310
Interest and fiscal charges 893,470 771,714 781,255 786,236 1,763,155 2,105,985 2,051,119 2,070,117 1,963,485 2,287,076
Total governmental activities expenses 42,200,388 44,944,601 47,406,325 50,305,307 52,418,064 60,769,970 65,233,933 77,789,149 87,489,225 95,459,141
Business-type activities
Water 7,995,910 9,273,395 9,740,629 9,832,508 9,984,114 9,807,970 10,687,976 13,882,728 15,227,618 15,895,081
Waste water 6,940,983 8,163,312 8,590,477 8,548,138 9,291,509 9,209,689 10,209,279 11,979,470 13,276,495 13,119,968
Solid waste 3,308,441 4,570,884 4,262,650 4,535,865 4,739,710 4,665,613 4,991,829 7,980,984 6,835,328 7,725,295
Parking 789,186 830,869 897,278 1,133,777 1,119,466 1,304,465 1,183,693 1,565,405 1,598,141 1,522,213
Stormwater 309,585 469,743 930,444 878,173 924,282 1,051,497 985,732 1,711,451 1,847,848 2,216,281
Total business-type activities expenses 19,344,105 23,308,203 24,421,478 24,928,461 26,059,081 26,039,234 28,058,509 37,120,038 38,785,430 40,478,838
Total primary government expenses $ 61,544,493 $ 68,252,804 $ 71,827,803 $ 75,233,768 $ 78,477,145 $ 86,809,204 $ 93,292,442 $ 114,909,187 $ 126,274,656 $ 135,937,979
City of Bozeman, Montana
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
160
Program revenues
Governmental activities
Charges for services
General government $ 2,530,474 $ 2,683,016 $ 3,139,427 $ 3,777,184 $ 3,546,689 $ 4,380,033 $ 5,472,678 $ 7,128,575 $ 8,453,622 $ 878,499
Public safety 3,347,859 3,175,257 2,234,994 4,158,560 4,020,453 4,260,366 4,317,541 4,942,022 6,333,264 6,227,724
Public works 9,310,147 10,342,921 15,531,304 12,189,258 16,522,229 18,836,107 19,176,512 22,563,519 26,135,750 31,800,499
Public health and welfare 1,213,526 1,414,394 1,593,025 1,724,864 1,567,557 5,294,909 6,833,910 1,687,204 1,254,034 1,225,865
Operating grants and contributions 2,494,244 2,715,986 3,021,400 5,419,871 7,622,415 12,156,812 7,707,580 12,843,761 13,255,074 9,281,456
Capital grants and contributions 5,018,559 2,667,352 7,651,008 6,593,221 15,429,642 4,518,830 12,153,695 14,514,120 14,726,239 13,706,374
Total governmental activities program
revenues 23,914,809 22,998,926 33,171,158 33,862,958 48,708,985 49,447,057 55,661,916 63,679,201 70,157,983 63,120,417
Business-type activities
Charges for services
Water 11,935,016 11,166,944 12,915,454 11,438,495 11,913,879 13,970,784 15,431,185 14,886,895 17,180,977 16,341,501
Waste water 9,283,600 9,668,524 10,686,506 10,445,185 10,671,361 11,691,165 12,684,974 12,343,552 14,693,222 14,184,958
Solid waste 2,617,243 3,613,721 3,926,123 4,228,099 4,631,523 4,969,868 5,431,005 5,872,630 6,655,306 7,459,945
Parking 597,238 878,458 958,378 958,504 1,028,036 1,005,788 1,062,010 968,042 1,214,125 1,662,751
Stormwater 943,621 1,293,941 1,324,461 1,349,678 1,429,449 1,519,994 1,673,866 1,883,096 2,023,962 2,155,476
Operating grants and contributions 134,946 169,509 134,523 83,264 104,868 243,536 1,511,436 1,435,529 1,677,660 132,021
Capital grants and contributions 11,287,654 7,774,707 9,944,719 8,324,760 13,312,504 5,427,166 13,064,462 11,084,423 7,079,665 12,546,980
Total business-type activities program
revenues 36,799,318 34,565,804 39,890,164 36,827,985 43,091,620 38,828,301 50,858,938 48,474,167 50,524,917 54,483,632
Total primary government program revenues $ 60,714,127 $ 57,564,730 $ 73,061,322 $ 70,690,943 $ 91,800,605 $ 88,275,358 $ 106,520,854 $ 112,153,368 $ 120,682,900 $ 117,604,049
Net revenue (expense)
Governmental activities (18,285,579) (21,945,675) (14,235,167) (16,442,349) (3,709,079) (11,322,913) (9,572,017) (14,109,948) (17,331,242) (32,338,724)
Business-type activities 17,455,213 11,257,601 15,468,686 11,899,524 17,032,539 12,789,067 22,800,429 11,354,129 11,739,487 14,004,794
Total primary government net revenue (expense)$ (830,366) $ (10,688,074) $ 1,233,519 $ (4,542,825) $ 13,323,460 $ 1,466,154 $ 13,228,412 $ (2,755,819) $ (5,591,756) $ (18,333,930)
City of Bozeman, MontanaChanges in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
161
General revenues and other changes in net
position
Governmental activities
Property taxes $ 21,234,288 $ 21,708,812 $ 22,532,724 $ 23,823,994 $ 28,308,301 $ 27,115,391 $ 29,432,001 $ 39,860,197 $ 45,454,899 $ 48,889,808
Unrestricted intergovernmental 7,992,180 8,372,625 6,171,297 4,658,177 4,859,238 4,956,187 5,099,529 5,370,015 5,717,540 6,062,173
Unrestricted investment earnings (losses) 519,637 554,870 64,058 1,490,286 1,604,365 428,653 (1,685,354) 1,118,619 4,448,723 4,671,030
Miscellaneous 418,215 1,317,137 2,320,536 1,009,437 1,128,061 (1,722,976) 520,517 1,225,899 3,348,246 1,991,534
Gain (loss) on disposal of capital asset 123,934 (71,335) 28,861 167,291 16,862 20,072 (15,735) 2,726,201 393,500 —
Transfers 1,218,036 (742,999) (758,084) (475,000) (546,353) (534,921) (1,396,976) (1,667,658) (401,119) (469,505)
Total governmental activities 31,506,290 31,139,110 30,359,392 30,674,185 35,370,474 30,262,406 31,953,982 48,633,273 58,961,788 61,145,040
Business-type activities
Unrestricted investment earnings — 304,231 3,389 1,010,849 846,331 38,987 (1,291,575) 833,995 3,102,361 3,102,434
Miscellaneous — 1,256,284 2,529,824 362,631 518,162 233,508 219,770 226,026 329,371 230,874
(Loss) gain on disposal of capital asset — (2,013,292) 10,005 (172,428) 4,012 17,918 1,031 (13,856) — 21,127
Transfers (1,218,036) 742,999 758,084 475,000 546,353 534,921 1,396,976 1,667,658 401,119 469,505
Total business-type activities (1,218,036) 290,222 3,301,302 1,676,052 1,914,858 825,334 326,202 2,713,823 3,832,851 3,823,940
Total primary government $ 30,288,254 $ 31,429,332 $ 33,660,694 $ 32,350,237 $ 37,285,332 $ 31,087,740 $ 32,280,184 $ 51,347,096 $ 62,794,640 $ 64,968,980
Change in net position
Governmental activities 13,220,711 9,193,435 16,124,225 14,231,836 31,661,395 18,939,493 22,381,965 34,523,325 41,630,546 28,806,316
Business-type activities 16,237,177 11,547,823 18,769,988 13,575,576 18,947,397 13,614,401 23,126,631 14,067,952 15,572,338 17,828,734
Total primary government change in net position $ 29,457,888 $ 20,741,258 $ 34,894,213 $ 27,807,412 $ 50,608,792 $ 32,553,894 $ 45,508,596 $ 48,591,277 $ 57,202,884 $ 46,635,050
City of Bozeman, MontanaChanges in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
162
Fund Balances of Governmental Funds
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General fund
Nonspendable $ — $ — $ — $ — $ — $ — $ — $ 37,167 $ 124,570 $ 102,444
Restricted — — — — — — — — 89,079 1,969,240
Committed — — — — — — — 6,087,489 3,291,645 4,334,720
Assigned 5,541,841 6,402,882 7,739,020 7,739,582 8,110,313 9,313,580 8,708,695 — 1,638,700 7,809,989
Unassigned 979,258 87,274 (274,252) — 1,030,550 (130,315) (107,076) 8,953,349 21,131,964 13,307,297
Total general fund $ 6,521,099 $ 6,490,156 $ 7,464,768 $ 7,739,582 $ 9,140,863 $ 9,183,265 $ 8,601,619 $ 15,078,005 $ 26,275,958 $ 27,523,690
All other governmental funds
Nonspendable $ 1,426,575 $ 1,533,338 $ 1,623,816 $ 1,735,591 $ 1,796,174 $ 1,884,479 $ 1,919,979 $ 1,804,399 $ 2,002,083 $ 2,200,303
Restricted 39,856,356 38,938,127 34,403,744 23,129,241 65,273,723 61,818,904 55,582,529 60,797,482 68,570,189 72,464,555
Committed 3,528,263 3,901,694 3,856,238 4,279,091 4,328,163 3,621,644 3,168,927 603,360 2,318,664 3,984,969
Assigned 7,425,398 7,259,749 1,868,485 1,293,436 578,852 96,473 134,135 2,927,964 1,554,280 1,641,686
Unassigned 914,535 107,103 (42,648) 8,731,534 (125,584) 662,773 (312,180) (302,973) (2,468,720) (704,811)
Total all other governmental funds $ 53,151,127 $ 51,740,011 $ 41,709,635 $ 39,168,893 $ 71,851,328 $ 68,084,273 $ 60,493,390 $ 65,830,232 $ 71,976,496 $ 79,586,702
City of Bozeman, MontanaFund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
163
Changes in Fund Balances of Governmental Funds
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Taxes $ 21,303,074 $ 21,682,667 $ 22,553,972 $ 23,788,018 $ 28,321,349 $ 26,973,106 $ 29,607,197 $ 39,657,027 $ 45,430,765 $ 48,889,609
Special assessments 1,265,954 1,163,275 1,137,103 1,116,925 1,390,355 1,676,909 1,616,318 1,293,350 981,136 773,287
Licenses and permits 2,112,090 2,092,673 2,541,727 2,392,081 2,524,368 2,902,616 2,850,060 3,542,188 4,766,902 4,940,453
Intergovernmental 8,920,424 8,956,044 9,419,104 10,488,662 12,600,824 15,297,152 12,638,682 18,089,987 18,888,805 15,280,738
Charges for services 12,283,683 13,743,830 17,885,529 16,987,622 20,142,910 24,847,833 30,095,236 30,136,508 36,103,851 33,146,404
Fines and forfeitures 1,253,705 1,256,525 1,240,154 1,234,324 1,199,601 1,168,880 1,053,196 1,069,270 967,872 1,032,563
Investment income (losses) 479,699 520,690 34,709 1,439,743 1,343,201 155,647 (1,885,520) 1,092,193 4,288,617 4,486,122
Loan repayments 38,552 31,837 25,827 31,695 44,930 38,276 53,539 30,346 52,566 50,155
Miscellaneous 415,646 1,307,668 2,313,097 995,553 1,790,144 1,766,620 2,712,894 2,031,152 3,309,370 1,468,143
Total revenues 48,072,827 50,755,209 57,151,222 58,474,623 69,357,682 74,827,039 78,741,602 96,942,021 114,789,884 110,067,474
Expenditures
General government 7,318,539 7,643,886 8,268,285 8,782,078 9,280,183 10,449,026 11,891,184 15,001,137 16,148,004 17,181,468
Public safety 16,485,549 16,812,131 17,602,966 18,005,944 19,598,592 19,778,375 22,104,511 25,534,451 27,230,772 30,513,423
Public works 3,840,405 4,422,771 4,955,559 5,774,783 5,376,499 5,868,383 6,977,080 8,454,661 8,347,215 10,069,764
Public health & welfare 7,245,425 7,654,059 7,975,354 8,339,885 9,046,331 11,690,142 14,598,944 13,296,225 18,366,077 19,247,931
Other 418,431 506,169 655,532 728,642 665,517 3,500,760 2,204,370 1,836,292 2,292,263 2,086,722
Capital outlay 9,337,470 12,468,020 18,420,501 19,106,110 24,265,809 32,608,736 30,801,575 17,918,459 26,001,640 19,853,995
Debt service
Principal 1,345,250 1,422,555 1,500,687 1,635,369 6,639,947 3,188,603 2,969,165 3,927,518 3,875,897 4,019,639
Interest and fiscal charges 893,470 771,714 718,597 786,238 1,763,155 2,105,985 2,051,119 2,304,135 2,283,583 2,549,625
Total expenditures $ 46,884,539 $ 51,701,305 $ 60,097,481 $ 63,159,049 $ 76,636,033 $ 89,190,010 $ 93,597,948 $ 88,272,878 $ 104,545,451 $ 105,522,567
City of Bozeman, MontanaChanges in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
164
Excess (Deficiency) of
Revenues over (under)
Expenditures $ 1,188,288 $ (946,096) $ (2,946,259) $ (4,684,426) $ (7,278,351) $ (14,362,971) $ (14,856,346) $ 8,669,143 $ 10,244,433 $ 4,544,907
Other financing
sources (uses)
Transfers in 6,483,413 3,950,059 4,394,277 4,202,825 8,867,568 5,976,400 10,802,182 23,487,954 18,527,011 10,233,431
Transfers out (5,496,492) (4,693,058) (5,152,361) (4,677,825) (9,413,920) (6,511,321) (12,199,158) (25,155,612) (19,021,403) (11,260,847)
Bonds issued 47,406 234,702 1,103,586 2,859,598 41,878,844 10,501,000 7,045,000 — — —
Premium (discount) on bonds — — — — — 649,009 515,591 — — —
Leases and other debt issued — — — — — — 19,833 2,011,672 7,591,175 5,355,756
Sale of capital assets 227,984 43,277 35,144 33,898 29,567 23,744 34,836 2,800,071 7,687 17,487
Total other financing sources
(uses) 1,262,311 (465,020) 380,646 2,418,496 41,362,059 10,638,832 6,218,284 3,144,085 7,104,470 4,345,827
Net Change in
Fund balances $ 2,450,599 $ (1,411,116) $ (2,565,613) $ (2,265,930) $ 34,083,708 $ (3,724,139) $ (8,638,062) $ 11,813,228 $ 17,348,903 $ 8,890,734
Debt service as a percentage
of noncapital expenditures 6.0%5.6%5.3%5.5%16.0%9.4%8.0%8.9%7.8%7.7%
City of Bozeman, MontanaChanges in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
165
REVENUE CAPACITY SECTION
Assessed Value of Taxable Property
Fiscal Year
Ended June 30,
Residential
Property
Commercial
and Industrial
Property
Other
Property
Total Taxable
Assessed
Value*
Total Direct
Tax Rate
Total Market
Value**
Assessed
Taxable Value
as a
Percentage of
Total Market
Value
2025 $ 154,480,876 $ 78,466,477 $ 12,260,387 $ 245,207,740 $ 158.23 $ 17,630,717,738 1.391 %
2024 170,502,974 66,718,555 9,884,230 247,105,759 150.72 17,730,663,050 1.394 %
2023 89,925,341 58,735,884 11,120,831 159,782,056 204.50 11,021,338,679 1.450 %
2022 87,432,389 57,107,580 10,812,534 155,352,503 154.12 10,724,564,866 1.449 %
2021 72,903,489 47,617,844 9,015,783 129,537,116 165.62 8,875,762,356 1.459 %
2020 70,588,175 46,105,567 8,729,455 125,423,197 187.70 8,596,253,775 1.459 %
2019 58,712,093 38,348,553 7,260,771 104,321,417 191.24 6,981,943,409 1.494 %
2018 56,952,419 37,199,199 7,043,156 101,194,774 187.33 6,745,351,312 1.500 %
2017 48,794,848 30,966,657 6,013,815 85,775,320 205.30 5,870,738,906 1.461 %
2016 50,899,738 29,864,642 5,799,800 86,564,180 210.16 5,698,588,679 1.519 %
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is Gallatin County is reassessed by the Montana Department of Revenue every two years.
* Sales price of property is not public record in the State of Montana, so the Total Market Value is used instead
** Indicates tax-exempt property
City of Bozeman, Montana
Assessed Value of Taxable Property
Last Ten Fiscal Years
167
City Taxable Market and Taxable Values
Fiscal Year Ended
June 30,
Taxable Market
Value Full Taxable Value
Incremental Value
for All Tax
Increment
Districts
Net Taxable Value
(Excludes Tax
Increment
Districts
Incremental
Values)
Taxable Value for
Open Space
Purposes
2025 $ 17,630,717,738 $ 266,339,260 $ 21,131,520 $ 245,207,740 $ 263,479,760
2024 17,730,663,050 268,988,379 21,882,620 247,105,759 259,899,096
2023 11,021,338,679 171,848,662 12,066,606 159,782,056 172,444,905
2022 10,724,564,866 166,838,141 11,485,638 155,352,503 164,979,565
2021 8,875,762,356 137,983,427 8,446,311 129,537,116 137,765,762
2020 8,596,253,775 133,582,036 8,158,839 125,423,197 133,391,037
2019 6,981,943,409 109,713,782 5,392,365 104,321,417 191,152,592
2018 6,745,351,312 106,224,806 5,030,032 101,194,774 105,727,520
2017 5,870,738,906 94,102,761 8,327,441 85,775,320 93,212,816
2016 5,698,588,679 90,787,797 4,223,617 86,564,180 91,973,923
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is Gallatin County is reassessed by the Montana Department of Revenue every two years.
City Taxable Market and Taxable Values
City of Bozeman, Montana
City Taxable Market and Taxable Values
Last Ten Fiscal Years
168
Tax Increment District Taxable Valuation Detail
Downtown Urban Renewal District Northeast Renewal District
Fiscal Year
Ended June 30,Base Taxable Incremental Taxable Total Taxable Base Taxable Incremental Taxable Total Taxable
2025 $ 1,328,695 $ 13,380,181 $ 14,708,876 $ 423,054 $ 1,466,804 $ 1,889,858
2024 1,328,695 13,789,647 15,118,342 423,054 1,382,658 1,805,712
2023 1,328,695 8,245,319 9,574,014 423,054 660,471 1,083,525
2022 1,328,695 7,893,562 9,222,257 423,054 636,368 1,059,422
2021 1,328,695 6,247,663 7,576,358 423,054 477,252 900,306
2020 1,328,695 5,987,410 7,316,105 423,054 457,274 880,328
2019 1,328,695 4,159,996 5,488,691 423,054 229,047 652,101
2018 1,328,695 3,769,917 5,098,612 423,054 223,765 646,819
2017 1,328,695 3,068,902 4,397,597 423,054 193,281 616,335
2016 1,328,695 2,898,551 4,227,246 423,054 214,470 637,524
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is Gallatin County is reassessed by the Montana Department of Revenue every two years.
*Previously North 7th Corridor
**New district created in FY19
***New districts created in FY22
City of Bozeman, Montana
Tax Increment District Taxable Valuation Detail
Last Ten Fiscal Years
169
Bozeman Midtown*North Park Urban Renewal**
Fiscal Year
Ended June 30,Base Taxable Incremental Taxable Total Taxable Base Taxable Incremental Taxable Total Taxable
2025 $ 3,507,723 $ 4,865,210 $ 8,372,933 $ 244,332 $ 134,432 $ 378,764
2024 3,507,723 5,397,828 8,905,551 244,332 85,307 329,639
2023 3,507,723 2,751,885 6,259,608 244,332 37,133 281,465
2022 3,507,723 2,589,893 6,097,616 244,332 53,750 298,082
2021 3,507,723 1,707,571 5,215,294 244,332 13,824 258,156
2020 3,507,723 1,714,155 5,221,878 244,332 — 244,332
2019 3,507,723 982,574 4,490,297 244,332 20,749 265,081
2018 3,507,723 948,746 4,456,469 — — —
2017 3,473,127 1,003,546 4,476,673 — — —
2016 2,886,997 1,055,385 3,942,382 — — —
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is Gallatin County is reassessed by the Montana Department of Revenue every two years.
*Previously North 7th Corridor
**New district created in FY19
***New districts created in FY22
City of Bozeman, Montana
Tax Increment District Taxable Valuation Detail (Continued)
Last Ten Fiscal Years
170
Bozeman Technology***Pole Yard Urban Renewal***Total
Fiscal Year
Ended June 30,Base Taxable
Incremental
Taxable
Total
Taxable Base Taxable
Incremental
Taxable
Total
Taxable Base Taxable
Incremental
Taxable
Total
Taxable
2025 $ 417 $ 98,233 $ 98,650 $ 1,137,056 $ 1,186,660 $ 2,323,716 $ 6,641,277 $ 21,131,520 $ 27,772,797
2024 417 98,233 98,650 1,137,056 1,128,947 2,266,003 6,641,277 21,882,620 28,523,897
2023 417 56,410 56,827 1,137,056 315,388 1,452,444 6,641,277 12,066,606 18,707,883
2022 417 56,410 56,827 1,137,056 255,655 1,392,711 6,641,277 11,485,638 18,126,915
2021 — — — — — — 5,503,804 8,446,310 13,950,114
2020 — — — — — — 5,503,804 8,158,839 13,662,643
—
2019 — — — — — 5,503,804 5,392,366 10,896,170
—
2018 — — — — — — 5,259,472 4,942,428 10,201,900
2017 — — — — — — 5,224,876 4,265,729 9,490,605
—
2016 — — — — — 4,638,746 4,168,406 8,807,152
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is Gallatin County is reassessed by the Montana Department of Revenue every two years.
*Previously North 7th Corridor
**New district created in FY19
***New districts created in FY22
City of Bozeman, Montana
Tax Increment District Taxable Valuation Detail (Continued)
Last Ten Fiscal Years
171
Downtown Urban Renewal District & Comparison to City Taxable Value
Downtown Urban Renewal District
Fiscal Year Ended
June 30,
Taxable Market
Value of Property
in the District
Taxable Value of
Property in the
District
Incremental
Taxable Value
City Taxable Value (Excluding ALL Tax
Increment District Valuations)
The District's Incremental Taxable
Value as a Percentage of the City's
Taxable Value
2025 $ 932,446,863 $ 14,708,876 $ 13,380,181 $ 245,207,740 5.46 %
2024 929,774,932 15,118,342 13,789,647 247,105,759 5.58 %
2023 607,434,219 9,574,014 8,245,319 159,782,056 5.16 %
2022 580,867,055 9,222,257 7,893,562 155,352,503 5.08 %
2021 465,530,358 7,576,358 6,247,663 129,537,116 4.82 %
2020 447,565,041 7,316,105 5,987,410 125,423,197 4.77 %
2019 319,728,707 5,488,691 4,159,996 104,321,417 3.99 %
2018 297,005,720 5,098,612 3,769,917 101,194,774 3.73 %
2017 265,793,431 4,397,597 3,068,902 85,775,320 3.58 %
2016 259,138,001 4,227,246 2,898,551 86,564,180 3.35 %
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is Gallatin County is reassessed by the Montana Department of Revenue every two years.
City of Bozeman, Montana
Downtown Bozeman Improvement District & Comparison to City Taxable Value
Last Ten Fiscal Years
172
Property Tax Levies for Tax Increment/Urban Renewal Districts
Fiscal Year
Taxing Entity 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Statewide School Equalization 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00
Gallatin County Operating and Bond 99.77 100.41 91.23 98.87 91.17 99.09 88.24 91.25 72.99 78.77
Open Space Bond 5.03 5.85 5.13 4.69 3.90 4.04 3.74 2.30 1.32 —
County-Wide School 106.85 105.39 99.67 102.44 96.45 96.74 36.29 34.58 25.70 23.21
Bozeman High School District 76.76 77.25 73.10 108.95 92.77 97.61 44.45 45.64 31.53 31.00
Bozeman Elementary School District 151.15 154.81 146.92 142.63 125.90 121.74 142.40 142.50 108.19 112.11
City of Bozeman 210.16 205.30 187.33 191.24 187.70 163.62 152.12 204.50 150.72 158.23
Total revenues 744.72 744.01 698.38 743.82 692.89 677.84 562.24 615.77 488.27 498.32
Exempt from Tax Increment
University Millage 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00
Gallatin College 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50
Gallatin Conservation District 1.05 1.01 0.89 0.91 0.77 — — — — —
Source: Based on information provided by Gallatin County and Montana Department of Revenue
Note: Property is Gallatin County is reassessed by the Montana Department of Revenue every two years.
Direct and Overlapping Property Tax Rates
City of Bozeman, Montana
Property Tax Levies for Tax Increment/Urban Renewal Districts
Last Ten Fiscal Years
173
Fiscal Year Ended June 30,Basic Rate
General
Obligation Debt
Service
Total Direct Tax
Rate School District Gallatin County State of Montana
2025 $ 141.35 $ 16.88 $ 158.23 $ 166.32 $ 86.27 $ 95.00
2024 133.90 16.82 150.72 165.42 80.49 95.00
2023 181.15 23.35 204.50 222.72 98.75 95.00
2022 131.89 22.23 154.12 223.14 95.74 95.00
2021 140.73 28.75 169.48 219.35 106.59 95.00
2020 162.82 25.63 188.45 218.67 99.44 95.00
2019 178.22 13.02 191.24 251.58 107.28 95.00
2018 173.92 13.41 187.33 220.02 99.62 95.00
2017 190.17 15.13 205.30 232.06 108.92 95.00
2016 194.51 15.65 210.16 227.91 108.32 95.00
Source: Based on information provided by Gallatin County and Department of Revenue
City of Bozeman, Montana
Direct and Overlapping Tax Rates
Last Ten Fiscal Years
174
Principal Property Taxpayers
2025 2016
Taxpayer
Taxable
Assessed
Valuation Rank
Percentage
of Total City
Taxable
Assessed
Valuation
Taxable
Assessed
Valuation Rank
Percentage
of Total City
Taxable
Assessed
Valuation
Northwestern Energy - T & D $ 8,319,495 1 3.39%$ 4,203,090 1 4.86%
Arrow I Propco LLC 1,441,254 2 0.59% — N/A N/A
Bozeman Apartment Group Owners LLC 979,189 3 0.40% — N/A N/A
Straightaway Bozeman Investors LLC 859,094 4 0.35% — N/A N/A
Cannery District Partners LLC 858,298 5 0.35% — N/A N/A
GKT Bozeman Gateway LLC 781,852 6 0.32% — N/A N/A
NB Stadium View DST 780,225 7 0.32% — N/A N/A
Costco Wholesale Corporation 750,859 8 0.31% — N/A N/A
Oxbow Land Holdings LLC 694,288 9 0.28% — N/A N/A
Crestview Lake LLC 669,190 10 0.27% — N/A N/A
Centurylink INC — N/A N/A 736,068 2 0.85%
Bresnan Communications LLC — N/A N/A 708,027 3 0.82%
Verizon Wireless — N/A N/A 495,140 4 0.57%
Daum Harry — N/A N/A 444,051 5 0.51%
Stone Ridge Partners LLC — N/A N/A 417,262 6 0.48%
Mitchell Development & Investment LLC — N/A N/A 390,752 7 0.45%
First Security Bank — N/A N/A 362,625 8 0.42%
J & D Family Limited Partnership — N/A N/A 349,579 9 0.40%
Bridger Peaks Holding LLC — N/A N/A 348,926 10 0.40%
Total attributable to top taxpayers 16,133,744 6.58% 8,455,520 9.77%
Total of all other properties 229,073,996 93.42% 78,108,660 90.23%
$ 245,207,740 100.00%$ 86,564,180 100.00%
Source: Gallatin County Treasurer
City of Bozeman, Montana
Principal Property Taxpayers
Last Ten Fiscal Years
175
Principal Property Taxpayers in Downtown Urban Renewal District
2025 2024
Taxpayer Business
Taxable
Assessed
Valuation Rank
Percentage
of Total City
Taxable
Assessed
Valuation
Taxable
Assessed
Valuation Rank
Percentage
of Total City
Taxable
Assessed
Valuation
Straight Away Bozeman Investors LLC Commercial $ 859,094 1 5.84%$ 843,046 1 5.73%
ETHA Hotel LLC Property Investor/Developer 613,133 2 4.17% 728,043 2 4.95%
First Security Bank Bank 605,441 3 4.12% 606,737 3 4.12%
G25 Holdings LLC Property Investor/Developer 438,524 4 2.98% 438,524 4 2.98%
104 East Main LLC Multi-Tenant Commercial/Residential Building 282,476 5 1.92% 221,207 8 1.50%
106 East Babcock LLC Multi-Tenant Commercial/Residential Building 266,585 6 1.81% 266,585 5 1.81%
5 West LLC Multi-Tenant Commercial/Residential Building 257,480 7 1.75% 257,480 6 1.75%
Downtowner Group LLC Business Support Services 226,707 8 1.54% 226,707 7 1.54%
Main St Holdings LLC Property Investor/Developer 206,603 9 1.40% 206,603 9 1.40%
Osborne Building LLC Multi-Tenant Commercial/Residential Building 204,901 10 1.39% 204,900 10 1.39%
Total attributable to top taxpayers 3,960,944 26.93% 3,999,832 26.46%
Total of all other properties 10,747,932 73.07% 11,118,510 73.54%
$ 14,708,876 100.00%$ 15,118,342 100.00%
Source: Gallatin County Treasurer
City of Bozeman, Montana
Principal Property Taxpayers in Downtown Urban Renewal District
Current Year and Prior Year
176
Properties in the Bozeman Midtown Urban Renewal District
2024/2025 2023/2024
Property Type/Property Tax Classification Assessed Value Taxable Value Assessed Value Taxable Value
3 agricultural land $ 19,142 $ 863 $ 16,884 $ 814
4 residential 106,763,118 1,134,543 79,326,649 1,059,773
4 commercial 424,794,923 7,640,314 379,496,922 7,172,487
5 pollution control, electric and telephone cooperatives 4,988 150 71,148 2,134
8 business equipment 8,055,911 120,935 2,375,694 35,663
9 pipelines and non-electric generating property of electric utility 366,590 43,989 363,191 43,582
13 electrical generation and telecommunication 415,332 24,920 383,686 23,021
$ 540,420,004 $ 8,965,714 $ 462,034,174 $ 8,337,474
Source: Montana Department of Revenue
City of Bozeman, Montana
Properties in the Bozeman Midtown Urban Renewal District
Current Year and Prior Year
177
Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District2024/2025 2023/2024
Taxpayer
Taxable Assessed
Valuation Rank
Percentage of
Total City
Taxable
Assessed
Valuation
Taxable Assessed
Valuation Rank
Percentage of
Total City
Taxable
Assessed
Valuation
Rocky Mountain Retail LLC $ 336,792 1 4.02%$ 336,792 1 4.02%
Walmart Stores Inc. 308,412 2 3.68% 299,912 4 3.58%
TWC Bozeman LLC 302,400 3 3.61% — N/A N/A
Westlake, George 285,878 4 3.41% 285,878 5 3.41%
FSBM Owner LLC 275,698 5 3.29% — N/A N/A
Buffalo Ventures LLC 262,215 6 3.13% 262,215 6 3.13%
Aspen Land Co LLC 252,393 7 3.01% 252,393 7 3.01%
Bozeman Hospitality LLC 203,760 8 2.43% 209,998 9 2.51%
Oak Street Partnership 193,353 9 2.31% 193,353 10 2.31%
DK Martinen LLC 187,152 10 2.24% 221,170 8 2.64%
TCIP Partnership — N/A N/A 328,800 2 3.93%
Grantree Hotels LP — N/A N/A 302,400 3 3.61%
Total attributable to top taxpayers 2,608,053 31.15% 2,692,911 30.24%
Total of all other properties 5,764,880 68.85% 6,212,640 69.76%
$ 8,372,933 100.00%$ 8,905,551 100.00%
Source: Gallatin County Treasurer
City of Bozeman, Montana
Principal Property Taxpayers in Downtown Bozeman Midtown Urban Renewal District
Current Year and Prior Year
178
Property Tax Levies and Collections
Collected Within the Fiscal Year of the Levy Total Collections to Date
Fiscal Year Ended
June 30,
Taxes Levied for the
Fiscal Year Amount Percentage of Levy
Collections in
Subsequent Years Amount Percentage of Levy
2025 $ 38,796,810 $ 38,224,970 98.53%$ — $ 38,224,970 98.53%
2024 37,252,860 35,752,975 95.97% 126,071 35,879,046 96.31%
2023 32,675,419 32,186,055 98.50% 205,428 32,391,483 99.13%
2022 23,793,072 23,525,331 98.87% 38,574 23,563,905 99.04%
2021 21,454,058 21,017,696 97.97% 63,885 21,081,581 98.26%
2020 23,589,506 23,381,671 99.12% 207,835 23,589,506 100.00%
2019 19,950,675 19,940,784 99.95% 9,891 19,950,675 100.00%
2018 18,956,357 18,791,653 99.13% 59,436 18,851,089 99.44%
2017 18,338,501 18,069,230 98.53% 100,610 18,169,840 99.08%
2016 18,191,892 18,009,556 99.00% 75,198 18,084,754 99.41%
Source:
Gallatin County
City Manager's Final Adopted Budget
City of Bozeman, Montana
Property Tax Levies and Collections
Last Ten Fiscal Years
179
Water Sold by Type of Customer
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Residential 1,493,192 1,601,439 1,623,881 1,556,249 1,546,308 1,788,984 1,612,932 1,583,076 1,516,380 1,653,876
Government 51,923 56,956 75,001 54,270 103,536 73,416 82,308 110,364 123,972 56,736
MSU 208,618 225,394 217,967 238,968 178,368 171,840 199,080 202,164 202,872 218,784
Commercial 610,741 620,761 618,398 627,116 506,868 590,076 578,688 600,456 579,012 590,652
Total 2,364,474 2,504,550 2,535,247 2,476,603 2,335,080 2,624,316 2,473,008 2,496,060 2,422,236 2,520,048
Total direct rate per 1,000 HCF $ 3,175.41 $ 3,256.73 $ 3,337.92 $ 3,508.94 $ 3,757.07 $ 3,697.72 $ 4,001.23 $ 4,054.42 $ 4,454.54 $ 5,048.22
Source: City of Bozeman Finance Department
City of Bozeman, Montana
Water Sold by Type of Customer(in hundreds of cubic feet [HCF])
Last Ten Fiscal Years
180
Water and Sewer Rates
Water*Sewer**
Fiscal Year Ended
June 30,
Monthly Service
Charge
Minimum Charge
(up to 2 HCR)
Charge per HCF
Used (0-6 HCF)
Monthly Service
Charge Rate per HCF
2025 $ 20.28 $ 6.02 $ 3.01 $ 23.25 $ 3.89
2024 18.11 5.38 2.69 21.93 3.67
2023 16.17 4.80 2.40 19.58 3.28
2022 16.17 4.80 2.40 19.58 3.28
2021 16.17 4.80 2.40 19.58 3.28
2020 16.17 4.80 2.40 19.58 3.28
2019 16.17 5.36 2.68 19.58 3.28
2018 15.70 5.10 2.55 19.01 3.15
2017 15.39 5.01 2.50 18.63 3.08
2016 15.02 4.89 2.44 18.09 2.99
* For Residential Customers, using 5/8 inch meter size, Single Family, Tier 1
Source: City of Bozeman Finance Department
City of Bozeman, Montana
Water and Sewer Rates
Last Ten Fiscal Years
181
DEBT CAPACITY
Ratios of General Bonded Debt by Type
Governmental Activities
General Tax Increment Special Financed Subscription
Obligation Financing Assessment Notes Purchases Leases IT Unamortized
Year Bonds Bonds Bonds Payable Payable Payable Agreements Premium
2025 $ 47,130,000 $ 8,782,557 $ 2,996,026 $ 1,597,551 $ 4,887,176 $ 1,216,084 $ 843,582 $ 4,063,634
2024 49,675,000 9,301,366 3,167,567 1,716,030 1,481,531 258,670 626,375 4,337,187
2023 45,765,000 9,802,767 3,372,289 2,045,505 872,674 343,801 853,425 4,230,082
2022 47,990,000 10,288,570 3,764,217 2,322,582 209,624 630,917 — 4,484,963
2021 43,240,000 10,763,655 3,948,216 2,246,694 — 310,270 — 4,198,474
2020 45,445,000 4,733,238 139,500 2,481,079 404,043 — 3,778,566
2019 12,940,000 5,338,811 171,500 2,637,009 651,453 — 208,593
2018 13,835,000 5,018,931 406,000 763,588 463,535 — 222,051
2017 14,710,000 4,425,000 501,000 902,500 270,492 — 235,509
2016 15,570,000 4,630,000 662,500 884,844 249,501 — 248,967
Business-type Activities
Water Wastewater Stormwater Financed Total Percentage
Revenue Revenue Revenue Purchases Leases Primary of Personal Per
Year Bonds Bonds Bond Payable Payable Government Income Capita
2025 $ 13,198,000 $ 21,477,000 $ 1,020,000 $ 2,273,720 $ — $ 109,485,330 3.51 %$ 1,843
2024 14,593,000 23,888,000 1,109,000 — — 110,153,725 4.21 % 1,922
2023 15,949,000 25,939,000 1,196,000 — — 110,369,543 5.65 % 1,967
2022 17,267,000 27,932,231 1,280,000 — — 116,172,126 6.83 % 2,130
2021 18,547,000 24,582,587 1,362,000 — 434,598 109,635,515 7.87 % 2,057
2020 19,791,000 14,057,000 1,442,000 — 363,749 92,637,195 7.24 % 1,859
2019 21,001,000 15,229,000 1,520,000 — 290,538 59,989,923 5.73 % 1,236
2018 19,107,497 16,368,000 1,292,430 — 214,887 57,693,937 5.80 % 1,238
2017 15,760,000 17,856,000 1,367,430 — 183,591 56,213,539 6.12 % 1,242
2016 16,567,000 18,930,565 1,440,430 — 71,077 59,256,900 6.97 % 1,365
Source:
City of Bozeman Finance Department
City of Bozeman, Montana
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
183
Ratios of General Bonded Debt Outstanding
General Tax Increment Percentage of
Obligation Bond Financing Market Value Per
Year Bonds Premiums District Bonds Total of Property Capita
2025 $ 47,130,000 $ 4,063,634 $ 8,782,557 $ 59,976,191 24.46 %$ 1,009.36
2024 49,675,000 4,337,187 9,301,366 58,976,366 23.87 % 1,029
2023 45,765,000 4,230,082 9,802,767 55,567,767 34.78 % 990
2022 47,990,000 4,484,963 10,288,570 58,278,570 37.51 % 1,068
2021 43,240,000 4,198,474 10,763,655 54,003,655 41.69 % 1,013
2020 45,445,000 3,778,566 4,733,238 50,178,238 40.01 % 1,007
2019 12,940,000 208,593 5,338,811 18,278,811 17.52 % 377
2018 13,835,000 222,051 4,926,931 18,761,931 18.54 % 403
2017 14,710,000 235,509 4,425,000 19,135,000 21.32 % 423
2016 15,570,000 248,967 4,630,000 20,200,000 23.34 % 465
Source:
City of Bozeman Finance Department
City of Bozeman, Montana
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
184
Estimated Estimated Share
Debt Percentage of Overlapping
Taxing Entity Outstanding Applicable (1)Debt
City of Bozeman $ 71,516,610 100.00%$ 71,516,610
Gallatin County 49,737,644 35.61% 17,713,007
Bozeman School District #7 138,327,636 60.79% 84,084,594
Subtotal overlapping debt 188,065,280 101,797,601
Total Direct and Overlapping Debt $ 259,581,890 $ 173,314,211
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
businesses of Bozeman. This process recognizes that, when considering the City's ability to issue and repay long-term debt,
the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply
that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable
percentageswere estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's
boundaries and dividing it by each entity's total taxable assessed value.
Sources:
City of Bozeman Finance Department
Gallatin County Assessor's Office
Bozeman School District #7
City of Bozeman, Montana
Computation of Direct and Overlapping Debt
Last Ten Fiscal Years
185
Legal Debt Margin Information
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Debt limit*$ 142,464,717 $ 147,500,000 $ 168,633,783 $ 174,548,585 $ 214,906,344 $ 221,894,059 $ 268,114,122 $ 275,533,467 $ 443,265,826 $ 440,767,943
Total net debt applicable to limit 22,245,812 21,044,501 20,709,105 21,947,366 56,981,426 64,707,309 69,481,249 67,285,543 70,563,725 71,516,610
Legal debt margin $ 120,218,905 $ 126,455,499 $ 147,924,678 $ 152,601,219 $ 157,924,918 $ 157,186,750 $ 198,632,873 $ 208,247,924 $ 391,874,796 $ 369,251,333
Total net debt applicable
as a percentage of debt limit 15.61 % 14.27 % 12.28 % 12.57 % 26.51 % 29.16 % 25.91 % 24.42 % 11.59 % 16.23 %
*2.5% of total market value of taxable property of $8.6 Billion per MCA 2019 7-7-4201
City of Bozeman, Montana
Legal Debt Margin Information
Last Ten Fiscal Years
186
Pledged Revenue Coverage – Governmental Activities
Special Assessment Bonds
Special
Assessment Debt Service
Year Collections Principal Interest Total Coverage
2025 $ 463,120 $ 171,541 $ 122,958 $ 294,499 $ 1.57
2024 515,511 204,722 115,554 320,276 1.61
2023 569,231 391,928 128,795 520,723 1.09
2022 901,483 183,999 135,136 319,135 2.82
2021 975,387 192,284 135,114 327,398 2.98
2020 775,230 32,000 26,434 58,434 13.27
2019 518,351 234,500 18,740 253,240 2.05
2018 506,819 95,000 23,221 118,221 4.29
2017 558,988 161,500 30,335 191,835 2.91
2016 705,143 228,000 39,343 267,343 2.64
City of Bozeman, Montana
Pledged Revenue Coverage – Governmental Activities
Last Ten Fiscal Years
187
Pledged Revenue Coverage – Business-Type Activities
Water Revenue Bonds
Water Less:Net Available Debt Service
Year Revenue Expenditures Revenue Principal Interest Total Coverage
2025 $ 14,379,055 $ 12,015,358 $ 2,363,697 $ 1,395,000 $ 401,138 $ 1,796,138 $1.32
2024 12,520,898 11,477,265 1,043,633 1,356,000 440,388 1,796,388 0.58
2023 12,314,794 10,150,775 2,164,019 1,318,000 478,523 1,796,523 1.20
2022 11,613,448 7,868,703 3,744,745 1,280,000 515,842 1,795,842 2.09
2021 11,027,542 6,878,458 4,149,084 1,244,000 552,156 1,796,156 2.31
2020 9,852,377 6,848,489 3,003,888 1,210,000 587,350 1,797,350 1.67
2019 9,396,171 6,525,730 2,870,441 1,176,000 578,954 1,754,954 1.64
2018 10,157,888 6,494,121 3,663,767 1,141,000 530,881 490,890 7.46
2017 9,281,821 6,589,396 2,692,425 822,000 490,890 1,312,890 2.05
2016 8,414,870 6,176,752 2,238,118 798,000 515,010 1,313,010 1.70
Waste Water Revenue Bonds
Waste Water Less:Net Available Debt Service
Year Revenue Expenditures Revenue Principal Interest Total Coverage
2025 $ 12,905,621 $ 9,068,750 $ 3,836,871 $ 2,111,000 $ 618,515 $ 2,729,515 $1.41
2024 11,878,072 9,083,589 2,794,483 2,051,000 676,628 2,727,628 1.02
2023 10,787,474 7,621,951 3,165,523 1,993,321 733,053 2,726,374 1.16
2022 10,389,216 6,607,192 3,782,024 1,951,000 729,704 2,680,704 1.41
2021 9,926,730 6,329,624 3,597,106 1,760,000 581,214 2,341,214 1.54
2020 9,441,675 6,592,798 2,848,877 1,172,000 446,064 1,618,064 1.76
2019 9,336,007 6,348,468 2,987,539 1,139,000 479,859 1,618,859 1.85
2018 8,876,017 5,158,989 3,717,028 1,104,000 513,009 1,617,009 2.30
2017 8,566,893 5,496,164 3,070,729 1,074,565 545,267 1,619,832 1.90
2016 7,927,692 5,139,029 2,788,663 1,042,000 552,269 1,594,269 1.75
City of Bozeman, Montana
Pledged Revenue Coverage – Business-Type Activities
Last Ten Fiscal Years
188
Debt Service Requirements and Coverage for Tax Increment Districts
Downtown Urban Renewal District*Northeast Urban Renewal District**Midtown Improvement District***
Revenues Annual Revenues Annual Revenues Annual
Available for Debt Service Available for Debt Service Available for Debt Service
Year Debt Service Payment Coverage Debt Service Payment Coverage Debt Service Payment Coverage
2025 $ 2,967,130 $ 335,292 8.85 $ 717,476 $ 92,000 7.80 $ 2,474,992 $ 410,550 6.03
2024 2,656,682 332,831 38.20 673,004 92,000 7.88 2,590,054 411,250 6.30
2023 2,347,685 330,150 7.11 414,674 92,000 4.51 1,734,350 409,950 4.23
2022 1,314,795 332,372 4.46 397,037 92,000 4.32 1,701,529 408,550 4.16
2021 1,847,752 332,448 5.56 470,096 92,000 5.11 1,118,930 401,893 2.78
2020 1,803,534 447,987 4.03 289,196 92,000 3.14 — — N/A
2019 2,150,531 423,573 5.08 164,252 95,000 1.73 — — N/A
2018 2,430,377 422,288 5.76 149,580 92,000 1.63 — — N/A
2017 2,160,187 425,488 5.08 — — N/A — — N/A
2016 2,066,749 423,288 4.88 — — N/A — — N/A
*$3,689,000 Bond issuance for the Downtown Urban
Renewal District on 2/14/2020
**$863,000 Bond issuance for the Northeast Urban
Renewal District on 7/20/2017
***$6,325,000 Bond issuance for the Midtown Urban
Renewal District on 7/9/2020
City of Bozeman, Montana
Debt Service Requirements and Coverage for Tax Increment Districts
Last Ten Fiscal Years
189
Summary of Outstanding SIDs
Bonds Assessments Delinquent
Bond Issue Original Amount Maturity Date Outstanding Cash Balance Outstanding Assessments
SID 747 $ 4,001,000 7/1/2040 $ 2,996,026 $ — $ 2,256,530 $ 5,088
City of Bozeman, Montana
Summary of Outstanding SIDs
Last Ten Fiscal Years
190
Revolving Fund Balance and Bond Secured Thereby
Revolving Fund Principal
Fiscal Year Ended June 30, Cash Balance Amount of Debt
2025 $ 339,296 $ 1,392,460
2024 336,358 1,372,646
2023 54,728 680,263
2022 766,881 766,510
2021 2,555,927 1,152,898
2020 2,173,692 1,537,286
2019 3,020,315 643,983
2018 2,903,817 916,503
2017 2,874,013 1,040,533
2016 2,924,604 1,120,708
City of Bozeman, Montana
Revolving Fund Balance and Bond Secured Thereby
Last Ten Fiscal Years
191
Special Improvement District Assessment Billing and Collections
Assessment Total Annual
Fiscal Year Ended June 30, Billing Collections
2025 $ 407,086 $ 463,120
2024 513,169 515,511
2023 567,476 569,230
2022 578,154 599,831
2021 594,719 649,643
2020 642,408 703,796
2019 476,212 518,351
2018 505,481 506,819
2017 528,622 558,988
2016 543,351 705,143
City of Bozeman, Montana
Special Improvement District Assessment Billing and Collections
Last Ten Fiscal Years
192
DEMOGRAPHIC AND ECONOMIC INFORMATION
Demographic and Economic InformationDemographic and Economic Statistics
Percentage Residents (age
Change in Per Capita 25 and over)Pre K-12
Estimated Estimated Personal Personal with Bachelor's School Unemployment
Year Population Population Income Income Median Age Degree or Higher Enrollment Rate
2025 59,420 3.69%$ 3,118,071,300 $ 59,700 32.6 65.1%7,331 2.3%
2024 57,305 2.11% 2,615,240,500 53,500 28.3 64.2%7,386 2.1%
2023 56,123 2.89% 1,952,338,137 39,939 28.0 63.8%7,357 1.9%
2022 54,545 2.35% 1,700,066,144 36,526 29.0 63.1%7,308 2.1%
2021 53,293 6.95% 1,393,673,190 32,865 28.0 58.7%6,893 3.2%
2020 49,831 2.68% 1,279,025,432 30,268 28.0 56.8%7,152 4.5%
2019 48,532 4.15% 1,047,804,618 29,097 28.0 56.9%7,015 3.8%
2018 46,596 2.97% 993,940,022 28,748 27.9 55.6%6,908 2.8%
2017 45,250 4.25% 918,565,430 26,506 27.7 56.5%6,770 2.8%
2016 43,405 4.19% 849,682,100 26,350 27.5 54.4%6,533 2.8%
Sources: Bozeman Public Schools
U.S. Bureau of Labor Statistics
U.S. Census Bureau
City of Bozeman, Montana
Demographic and Economic Statistics
Last Ten Fiscal Years
194
Principal Employers 2025 2016
Private Employers by Class Class Size Private Employers by Class Class Size
ALBERTSONS LLC 6 ALBERTSONS LLC 6
BIG SKY RESORT LLC 8 BLACKHAWK INDUSTRIES 6
BILLINGS CLINIC 7 BOZEMAN DEACONESS HEALTH SERVICES 6
BOZEMAN DEACONESS HEALTH SERVICES 7 BOZEMAN HEALTH DEACONESS HOSPITAL 9
BOZEMAN HEALTH DEACONESS HOSPITAL 9 COMMUNITY FOOD CO-OP 6
BOZEMAN HEALTH MEDICAL GROUP 7 COSTCO WHOLESALE CORP 6
COSTCO WHOLESALE CORP 7 J C BILLION INC 6
GIBSON, INC 6 KENYON NOBLE LUMBER CO 7
GLACIER BANCORP INC 6 MCDONALDS OF BOZEMAN 6
KENYON NOBLE LUMBER CO 7 MURDOCHS RANCH & HOME SUPPLY LLC 6
MURDOCHS RANCH & HOME SUPPLY LLC 7 ORACLE AMERICA INC 8
ORACLE AMERICA INC 6 RESSLER MOTOR COMPANY 6
RESSLER MOTOR COMPANY 7 RIVERSIDE COUNTRY CLUB 6
TOWN & COUNTRY FOODS INC 7 SIMKINS HALLIN INC 6
TOWN PUMP INC 5 SPANISH PEAKS MOUNTAIN CLUB 6
WAL MART ASSOCIATES INC 7 TOWN & COUNTRY FOODS INC 6
WILLIAMS PLUMBING & HEATING INC 7 TOWN PUMP INC 7
YELLOWSTONE CLUB 9 WAL MART ASSOCIATES INC 7
ZOOT ENTERPRISES INC 6 YELLOWSTONE CLUB 8
ZOOT ENTERPRISES INC 6
Employer Employer
Public Employers by Class Class Size Public Employers by Class Class Size
Montana State University 9 Montana State University 9
Belgrade School District 7 Belgrade School District 7
Bozeman School District 9 School District #7 8
Gallatin County 8 Gallatin County 7
City of Bozeman 8 City of Bozeman 7
Class 6 - 100 to 249 Employees
Class 7 - 250 to 499 Employees
Class 8 - 500 to 999 Employees
Class 9 - 1,000+ Employees
Source: Montana Department of Labor & Industry
City of Bozeman, Montana
Principal Employers
Current Year and Nine Years Ago
195
OPERATING INFORMATION
Operating InformationFull-Time Equivalent City Government Employees by Function/Program
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government
City Commission — — — — — — — — — —
City Manager 6.00 6.00 9.00 9.00 9.00 9.00 9.00 8.00 9.00 12.00
Municipal Court 8.50 8.50 9.50 9.50 9.60 9.98 11.23 12.25 12.25 12.25
City Attorney 10.20 10.20 10.70 10.70 11.70 12.70 12.70 13.00 14.00 15.25
Administrative Services* 21.50 23.50 — — — — — — — —
Human Resources* — — 4.00 5.00 5.00 5.00 5.00 6.00 6.00 7.00
Finance* — — 12.50 13.50 13.50 15.00 14.00 8.25 10.25 12.25
Information Technology* — — 6.00 7.00 7.00 7.00 8.00 9.00 10.00 10.00
Community Development 11.60 13.00 13.00 14.25 15.25 15.25 18.25 21.00 20.00 20.00
Facilities Management 3.50 3.50 4.50 5.00 5.00 6.00 7.00 8.00 9.50 10.50
Total general government 61.30 64.70 69.20 73.95 76.05 79.93 85.18 85.50 91.00 99.25
Public safety
Police Department 71.70 72.70 72.70 74.55 75.55 76.95 80.95 83.30 88.80 95.80
Fire Department 46.00 46.00 46.00 47.00 50.00 50.00 50.00 48.00 51.00 64.00
Building Inspection 18.50 18.50 19.50 19.75 19.75 19.75 19.75 23.25 23.25 25.25
Parking 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.17 5.82 6.82
Total public safety 142.20 143.20 144.20 147.30 151.30 152.70 156.70 160.72 168.87 191.87
Public Services
Public Services Admin/Engineering 10.25 11.50 11.50 16.25 18.25 22.25 26.25 31.25 30.25 31.25
Streets 18.85 19.85 21.85 21.35 22.30 22.30 22.30 26.10 26.10 28.10
Metropolitan Planning Organization (MPO) ** — — — — — — — — 1.00 2.00
Storm Water 6.25 6.50 7.50 7.50 8.50 9.50 9.50 8.75 8.75 8.75
Water 24.95 24.95 24.50 26.75 28.70 28.65 29.65 31.55 32.55 33.55
Wastewater 28.05 28.80 27.00 27.50 29.55 30.55 30.55 27.45 27.45 27.45
Solid Waste Collection/Recycling 15.15 16.15 17.15 17.15 18.75 19.75 19.75 21.40 21.40 24.40
Vehicle Maintenance 6.50 6.50 7.50 7.50 8.50 8.50 9.50 9.50 9.50 9.50
Total public services 110.00 114.25 117.00 124.00 134.55 141.50 147.50 156.00 157.00 165.00
Public Welfare
Parks & Recreation 48.75 50.46 48.26 53.05 53.05 52.85 52.85 55.16 60.16 61.78
Library 26.02 28.02 28.02 28.02 28.02 26.53 26.53 26.87 26.87 28.12
Neighborhood Services*** — — — — — — — — 4.85 4.85
Economic Development 3.50 3.50 2.00 2.00 3.00 3.00 3.00 3.83 3.83 3.83
Sustainability 1.50 1.50 1.50 1.50 1.50 1.50 3.00 3.00 3.00 3.00
Total public services 79.77 83.48 79.78 84.57 85.57 83.88 85.38 88.86 98.71 101.58
Total 395.37 407.73 410.28 431.92 449.57 460.11 476.86 493.18 517.68 557.70
Source: City Manager's Final Adopted Budget
* Administrative Services consists of Finance, Information Technology and Human Resources. Beginning in fiscal year 2018, these programs are reported separately.
City of Bozeman, Montana
Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
197
Operating Indicators by Function/Program2016201720182019202020212022202320242025
Finance
SID Statements 16,893 17,200 17,463 18,185 18,552 18,895 19,655 20,001 20,001 20,169
Utility Bills 166,000 169,000 172,000 168,280 176,263 180,720 205,092 208,259 210,695 213,856
Accounts Payable Checks Processed 11,000 11,800 12,350 11,762 11,800 12,488 10,543 9,846 11,790 10,149
Police
Number of Officers 60 61 60 60 60 60 60 61 62 67
Calls for Service 47,400 48,200 47,136 50,548 48,099 48,560 69,857 49,182 44,227 46,041
Arrests 2,078 2,427 2,314 2,618 2,017 2,118 1,936 2,402 1,688 1,843
Misdemeanor Citations Issued - includes traffic 6,390 5,886 4,940 5,430 4,800 4,058 4,012 5,460 5,075 3,879
Traffic Stops 7,482 7,900 7,675 9,600 8,410 8,736 8,062 5,991 4,207 6,796
Traffic Crashes 1,792 1,850 1,958 1,840 1,813 1,351 1,452 1,707 1,601 1,600
Fire*
Fires, Hazardous Conditions, Rupture/Explosions 349 445 564 522 340 304 319 367 460 909
Emergency Medical Services/Rescue 2,424 3,062 3,320 3,073 3,154 3,005 2,716 2,714 2,275 2,344
Service Calls 244 334 438 406 239 170 311 282 285 271
Building Inspection
Commercial Permits
Number 1,628 1,731 883 768 702 707 548 1,014 878 774
Value (Millions)$ 164 $ 65 $ 216 $ 249 $ 302 $ 237 $ 201 $ 271 $ 276 $ 323
Residential Permits
Number 3,937 3,905 3,222 2,307 2,094 2,674 1,947 2,354 2,117 2,115
Value (Millions)$ 200 $ 130 $ 340 $ 311 $ 176 $ 233 $ 479 $ 444 $ 686 $ 303
Water
New Service Main Taps 60 72 65 101 96 100 60 25 37 21
Meter Replacement/Repair 978 1,500 994 1,042 528 1,273 1,285 645 781 775
Water Main Breaks/Repairs 7 6 7 5 11 14 9 5 4 5
Wastewater
Main Line Flushing (in Miles)50.0 30.9 50.0 37.5 48.0 33.3 73.7 55.1 56.1 39.4
New Infrastructure TV (in Miles)2.60 9.90 7.00 2.80 3.30 7.40 6.77 3.70 6.32 3.51
New Service Taps 20 30 30 56 25 34 19 19 12 8
Solid Waste Collection & Recycling
Residential Accounts 8,878 9,695 10,384 10,884 11,321 11,841 12,317 12,379 12,560 12,732
Commercial Customers 461 449 515 573 566 520 612 649 648 662
Recycling Customers 2,663 3,386 3,854 4,434 4,867 5,526 6,025 6,231 6,426 6,559
Annual Tonnage Collected: Collections Program 11,691 12,490 17,657 18,880 19,815 19,955 21,369 23,530 23,768 23,997
Vehicle Maintenance
Work Orders Processed 1,453 1,509 2,592 2,392 2,057 3,718 1,802 1,845 1,814 1,514
Gallons of Oil Disposed 7,395 6,475 5,007 5,522 4,900 5,787 2,925 4,676 5,596 3,759
Parks
Park Reservations 400 400 425 493 423 912 1,433 938 1,868 3,382
*Statistics are based on calendar year
Sources:
City Manager's Final Adopted Budget
City of Bozeman Finance Department
City of Bozeman, Montana
Operating Indicators by Function/Program
Last Ten Fiscal Years
198
Capital Assets Statistics by Function/Program
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units (Cars)*21 21 22 21 21 24 20 22 22 28
Patrol Units (Motorcycles)3 3 3 3 3 3 3 3 3 3
Fire
Stations 3 3 3 3 3 3 3 3 3 3
Fire Trucks 7 7 7 7 7 7 7 9 9 9
Streets
Street & Alley Mileage 266 267 271 275 280 282 286 297 319 299
Lane Miles Painted 50 50 52 48 53 51 51 53 54 40
Number of Signs Installed/Repaired 600 600 708 394 1,107 1,270 273 467 355 388
Water
Water Mains (Miles)274.89 276.92 283.95 286.68 297.10 299.52 304.53 309.46 317.54 319.66
Fire Hydrants 2,511 2,573 2,618 2,668 2,758 2,782 2,835 2,932 3,097 3,095
Wastewater
Sanitary Sewers (Miles)219.14 224.28 234.64 236.04 239.00 242.43 254.14 254.79 257.95 260.10
Number of Manholes 4,360 4,492 4,614 4,677 4,828 5,023 5,051 5,125 5,216 5,282
Solid Waste
Number of Collection Vehicles 8 8 8 8 6 6 8 9 10 10
Number of Roll-off Trucks 4 4 5 5 5 5 5 5 5 6
Number of Recycling Trucks 2 2 2 2 2 2 2 2 2 2
Number of Compost Collection Trucks 2 2 1 1 1 1 1 1 1 2
Parks
Formal Turf Acres 140 140 172 192 192 192 196 475 475 475
Natural Parkland Acres 220 220 323 343 388 413 413 436 436 436
Miles Trails 63 63 63 65 65 65 71 79 79 79
*Patrol cars determined by Vehicle & Equipment Master List-Fire Extinguishers tab-Total of "Utility" & "Interceptor" vehicles
City of Bozeman Finance Department
City of Bozeman GIS Department
City of Bozeman Police Department
City of Bozeman, Montana
Capital Assets Statistics by Function/Program
Last Ten Fiscal Years
199
Single Audit SectionSingle Audit SectionJune 30, 2025City of Bozeman, Montana
Federal Awards Reports in Accordance
with the Uniform Guidance
June 30, 2025
City of Bozeman, Montana
eidebailly.com
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
The City Commission
City of Bozeman, Montana
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States (Government Auditing Standards), the financial
statements of the governmental activities, the business-type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of City of
Bozeman (the City), as of and for the year ended June 30, 2025, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements and have issued our report
thereon dated December 15, 2025.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the City’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
202
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of City’s
internal control or on compliance. This report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the City’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Denver, Colorado
December 15, 2025
203
Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal
Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by
the Uniform Guidance
The City Commission
City of Bozeman, Montana
Report on Compliance for Each Major Federal Program
Opinion on the Major Federal Program
We have audited City of Bozeman’s (the City) compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
effect on the City’s major federal program for the year ended June 30, 2025. The City’s major federal
program is identified in the summary of auditor’s results section of the accompanying schedule of
findings and questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on its major federal program for the year ended June
30, 2025.
Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described
in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal determination of the City’s compliance with
the compliance requirements referred to above.
204
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7001 E. Belleview Ave., Ste. 700 • Denver, CO 80237-2733 • TF 866.740.4100 • T 303.770.5700 • F 303.770.7581 • EOE
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements
of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the
City’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the
report on compliance about the City’s compliance with the requirements of each major federal program
as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the City’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered
necessary in the circumstances.
•Obtain an understanding of the City’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not
for the purpose of expressing an opinion on the effectiveness of the City’s internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
205
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance with a type of compliance requirement of a federal program that is
less severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal
control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Denver, Colorado
December 15, 2025
206
Schedule of Expenditures of Federal Awards
Federal Grantor/Pass-Through Grantor/Program or Cluster Title
Federal
Financial
Assistance
Listing Pass-through Entity Identifying Number Expenditures
U.S. Department of Agriculture
Passed through Montana Department of Natural
Resources and Conservation:
Cooperative Forestry Assistance 10 10.664 FHE-21-101 $ 10,672
Inflation Reduction Act Urban & Community Forestry Program 1 10.727 UCF-24-306 15,536
Total U.S. Department of Agriculture 26,208
U.S. Department of Housing and Urban
Direct Program:
Community Development Block Grant Entitlement 14.218 B24MC080007 1,770
Total U.S. Department of Housing and Urban 1,770
U.S. Department of Interior
Passed through Montana Historical Society:
Historic Preservation Fund Grants-in-Aid 15.904 MT-24-012 13,709
Total U.S. Department of Interior 13,709
U.S. Department of Justice
Direct Program:
Treatment Court Discretionary Grant Program 16.585 N/A 105,876
Edward Byrne Memorial Justice Assistance Grant Program 16.738 N/A 20,855
Edward Byrne Memorial Justice Assistance Grant Program 16.738 N/A 15,809
Passed through Haven:
Edward Byrne Memorial Justice Assistance Grant Program: Rural Domestic Violence,16.589 Rural FY22-24 BvsA-BPD 318
Dating Violence, Sexual Assault, and Stalking Assistance Program 16.589 15JOVW-24-GG-01028-RURA 5,651
Edward Byrne Memorial Justice Assistance Grant Program: Rural Domestic Violence,
Dating Violence, Sexual Assault, and Stalking Assistance Program
Passed through Gallatin County:
Edward Byrne Memorial Justice Assistance Grant Program: Missouri River Drug Task Force 16.738 2990-000-42-420142-000-400-790 81,027
Passed through Montana Department of Justice:
Internet Crimes Against Children Task Force 16.738 15PJP-24-GK-04198-MECP 14,780
Total U.S. Department of Justice 244,316
U.S Environmental Protection Agency
Direct Program:
Solid Waste Infrastructure Financing- Save Our Seas Act Grants 66.920 00I70000SC 1,162,292
Total U.S. Department of Transportation 1,162,292
U.S. Department of Homeland Security
Passed through Montana Disaster and Emergency Services:
Homeland Security Grant Program (Fire Dept. HazMat)97.067 SHSP Bozeman FD Hazmat 38,407
Staffing for Adequate Fire and Emergency Response (SAFER)97.083 EMW-2023-FF-01043 335,964
Total U.S. Department of Homeland Security 374,371
U.S Department of Transportation
Passed through Montana Department of Transportation: Transportation Alternatives
Metropolitan Transportation Planning and State and Non-Metropolitan Planning 20.505 UPN 10453 10,769
Metropolitan Transportation Planning and State and Non-Metropolitan Planning 20.505 UPN 10450 20,231
Passed through Montana Department of Transportation: Rail Planning and Transit
Metropolitan Transportation Planning and State and Non-Metropolitan Planning 20.505 FFY2025 Unifed Planning Work Program (UPWP) 176,677
Passed through Montana Department of Transportation: Highway Traffic Safety
State and Community Highway Safety 20.608 112824 1,597
National Priority Safety Programs 20.616 112824 2,670
State and Community Highway Safety 20.600 113273 851
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 113273 1,423
Passed through Montana Disaster and Emergency Services
Hazard Mitigation Grant 20.703 25HZMEPBZNFL 7,200
Total U.S. Department of Transportation 221,418
U.S. Department of Treasury
Direct Program:
COVID 19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 174,091
Passed through Montana Department of Natural Resources and Conservation:
COVID 19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 Various 1,169,189
Total U.S. Department of Treasury 1,343,280
Total Federal Financial Assistance $ 3,387,364
City of Bozeman, Montana
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2024
207
Notes to Schedule of Expenditures of Federal Awards
Note A - Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of the City of Bozeman, Montana (the City) under programs of the federal government for the year ended June
30, 2025. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City,
it is not intended to and does not present the financial position, changes in net position or fund balance, or cash
flows of the City.
Note B - Significant Accounting Policies
Expenditures reported in the Schedule are reported on the accrual basis of accounting. When applicable, such
expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. No federal assistance has been
provided to a subrecipient.
Note C - Indirect Cost Rate
The City has not elected to use the 10% de minimus cost rate.
City of Bozeman, Montana
Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
208
Section I – Summary of Auditor’s Results
FINANCIAL STATEMENTS
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified NoSignificant deficiencies identified not considered
to be material weaknesses None
Noncompliance material to financial statements noted? No
FEDERAL AWARDS
Internal control over major program:
Material weaknesses identified No
Significant deficiencies identified not consideredto be material weaknesses None reported
Type of auditor's report issued on compliance for major programs:
Unmodified Any audit findings disclosed that are required to be reported in
accordance with Uniform Guidance 2 CFR 200.516: No
Identification of major programs:
Name of Federal Program
Federal
Financial
Assistance
Listing
Solid Waste Infrastructure Financing- Save Ours Seas Act Grant 66.920
Dollar threshold used to distinguish between type A and type B programs:$750,000
Auditee qualified as low-risk auditee?Yes
City of Bozeman, Montana
Notes to Schedule of Expenditures of Federal AwardsYear Ended June 30, 2025
209
Section II – Financial Statement Findings
Our audit did not disclose any matters required to be reported.
Section III – Federal Award Findings and Questioned Costs
Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a.)
Section IV – State of Montana Compliance Findings
Our audit did not disclose any matters required to be reported.
City of Bozeman, Montana
Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
210