HomeMy WebLinkAbout02-10-2026- City Commission Agendas & Packet MaterialsA. Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse
B. Pledge of Allegiance and a Moment of Silence or Mindfulness
C. Changes to the Agenda
D. FYI
E. Commission Disclosures
F. Approval of Minutes
F.1 Approval of Regular City Commission Meeting Minutes from December 10, 2024 (Newby)
G. Consent
THE CITY COMMISSION OF BOZEMAN, MONTANA
REGULAR MEETING AGENDA
Tuesday, February 10, 2026
How to Participate:
If you are interested in commenting in writing on items on the agenda please send an email to
comments@bozeman.net or visit the Public Comment Page prior to 12:00 p.m. on the day of the
meeting. At the direction of the City Commission, anonymous public comments are not distributed to
the City Commission or staff.
Public comments will also be accepted in-person and through video conference during the appropriate
agenda items but you may only comment once per item.
As always, the meeting will be recorded and streamed through the Commission's video page and
available in the City on cable channel 190.
For more information please contact the City Clerks' Office at 406.582.2320.
This meeting will be held both in-person and also using an online video conferencing system. You
can join this meeting:
Via Video Conference:
Click the Register link, enter the required information, and click submit.
Click Join Now to enter the meeting.
Via Phone: This is for listening only if you cannot watch the stream, channel 190, or attend in-
person
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Consider the Motion: I move to approve the regular meeting minutes as submitted.
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G.1 Accounts Payable Claims Review and Approval (Edwards)
G.2 Approval of depository bonds and pledged securities as of December 31, 2025.(Clark)
G.3 Ratify the Grant Application to MT Department of Environmental Quality (DEQ) for an All
Electric Aerial Bucket Truck for the Streets Division(Grabinski)
G.4 Approve the Final Plat for the Meadow Bridge Subdivision and Authorize the Director of
Transportation and Engineering to Execute the Same on Behalf of the City of Bozeman and
Authorize the Director of Community Development to Execute the Improvements
Agreement on Behalf of the City of Bozeman, Application 25557(Montana)
G.5 Authorize the City Manager to Sign a Professional Services Agreement with Sanbell for the
2026 Transportation Engineering Term Contract(Lonsdale)
G.6 Authorize City Manager to Sign Professional Architectural Services Agreement with Open
Studio Collaborative, LLC d/b/a Physical Space for Cattail Corridor Park Node Design(Jadin)
G.7 Authorize the City Manager to Sign an Amendment 1 to the Professional Services
Agreement with HDR Engineering, Inc, for the Lyman Transmission Main Condition
Assessment Predesign Project(Johnson)
G.8 Authorize the City Manager to Sign a Task Order Number 3 for the Right-of-way Acquisition
Project with Clear Route Real Estate, LLC for Properties Necessary to Construct the Fowler
Avenue Connection Project(Murray)
G.9 Resolution Approving Certain Infrastructure Improvements, Referred to as the Main and
Mendenhall Lighting Project, as an Urban Renewal Project with Respect to the Bozeman
Midtown Urban Renewal District, Making Findings with Respect Thereto and Approving the
Use of Tax Increment Revenues to Reimburse Costs Thereof and Approving a Related
Development Agreement in the Midtown Urban Renewal District with Bozeman Exchange
Associates, LLC.(Fine)
G.10 Resolution Amending a Development Agreement Relating to a Project in the South Bozeman
Technology Tax Increment Financing District (Montana State University Innovation
Campus)(Fine)
H. Public Comment on Non-agenda Items Falling Within the Purview and Jurisdiction of the
Commission
This is the time to comment on any matter falling within the scope of the Bozeman City
Commission. There will also be time in conjunction with each agenda item for public comment
relating to that item but you may only speak once per topic. Please note, the City Commission
cannot take action on any item which does not appear on the agenda. All persons addressing the
City Commission shall speak in a civil and courteous manner and members of the audience shall be
respectful of others. Please state your name, and state whether you are a resident of the city or a
property owner within the city in an audible tone of voice for the record and limit your comments
to three minutes.
Written comments can be located in the Public Comment Repository.
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I. Action Items
I.1 Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2025 and Audit Results (Funk)
I.2 Annexation and Zone Map Amendment Requesting Annexation and the Establishment of an
Initial Zoning Designation of R-1 on 1.173 Acres, the 1071 Story Mill Road Annexation,
Application 25525(Rogers)
J. Appointments
J.1 Appointment to the Historic Preservation Advisory Board (Newby)
K. FYI / Discussion
L. Adjournment
Consider the Motion: I move to approve the Fiscal Year 2025 Annual Comprehensive Financial Report
and the accompanying Letter of Governance.
Recommended City Commission Annexation Motion:
Having reviewed and considered the staff report, application materials, public comment, and all
information presented, I hereby adopt the findings presented in the staff report for application 25525
and move to approve the 1071 Story Mill Road Annexation subject to the terms of annexation and
direct staff to prepare an annexation agreement.
Recommended City Commission Zoning Motion:
Having reviewed and considered the staff report, application materials, public comment,
recommendation of the Zoning Commission, and all information presented, I hereby adopt the findings
presented in the staff report for application 25525 and move to approve the 1071 Story Mill Road
Zone Map Amendment with contingencies of approval necessary to complete adoption of an
implementing ordinance.
Consider the Motion: I move to appoint [INSERT NAME] to an At-large position on the Historic
Preservation Advisory Board for a term ending July 1st, 2027.
City Commission meetings are open to all members of the public. If you have a disability that
requires assistance, please contact our ADA Coordinator, David Arnado, at 406.582.3232.
Commission meetings are televised live on cable channel 190 and streamed live on our Meeting
Videos Page.
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Memorandum
REPORT TO:City Commission
FROM:Alex Newby, Deputy City Clerk
Mike Maas, City Clerk
Jon Henderson, Assistant City Manager
SUBJECT:Approval of Regular City Commission Meeting Minutes from December 10,
2024
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Minutes
RECOMMENDATION:Consider the Motion: I move to approve the regular meeting minutes as
submitted.
STRATEGIC PLAN:1.1 Outreach: Continue to strengthen and innovate in how we deliver
information to the community and our partners.
BACKGROUND:In 2013, The Clerks' Office identified goals related to the Commission’s
priority of Improving Technology Utilization and Proficiency.
Improvements included:
• Live streaming broadcast of the City Commission Meeting
• Meeting efficiency
• Better access of meeting information for staff and the public
• Time savings
• Streamlined approach to citizen involvement and public comment In
addition to the City Commission, many City Boards utilize the system as well.
Beginning January 5, 2021 meetings in the Granicus platform have been
closed captioned. Those captions are searchable using the advanced search
option on our video view page.
Users are always welcome to contact the City Clerks' Office at 406.582.2320
or email BozemanClerksDepartment@bozeman.net for assistance.
UNRESOLVED ISSUES:None.
ALTERNATIVES:As determined by the Commission.
FISCAL EFFECTS:None.
Attachments:
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12-10-24 City Commission Meeting.pdf
Report compiled on: October 30, 2025
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Bozeman City Commission Meeting Minutes, December 10, 2024
Page 1 of 9
THE CITY COMMMISSION MEETING OF BOZEMAN, MONTANA
MINUTES
December 10, 2024
Present: Terry Cunningham, Joey Morrison, Jennifer Madgic, Douglas Fischer, Emma Bode
Absent: None
Excused: None
Staff at the Dias: City Manager (CM) Chuck Winn, City Attorney (CA) Greg Sullivan, Deputy City Clerk
(DCC) Alex Newby
A) 00:02:35 Call to Order - 6:00 PM - Commission Room, City Hall, 121 North Rouse
B) 00:04:42 Pledge of Allegiance and a Moment of Silence or Mindfulness
C) 00:05:34 Changes to the Agenda
D) 00:05:41 FYI
• Mayor Cunningham reported that the Study Commission met for the first time last night,
Monday December 9th.
• CM Winn reported that the UDC Engagement continues.
• CM Winn announced it is the 12 days of Bikemas, beginning this Friday, a fun way to get people
out of their cars.
E) 00:08:04 Commission Disclosures
F) 00:08:16 Consent
F.1 Accounts Payable Claims Review and Approval
F.2 Authorize the City Manager to Sign a Memorandum of Understanding with Bozeman
School District 7 for the Development and Use of Additional Facilities at the Bozeman
Sports Park
Memorandum of Understanding - Bozeman Sports Park School District Project.pdf
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Bozeman City Commission Meeting Minutes, December 10, 2024
Page 2 of 9
F.3 Authorize the City Manager to Sign a Letter of Agreement Accepting a Donation in the
Amount of $250,000 from Bozeman School District 7 for Design Services for Additional
Facilities at the Bozeman Sports Park
Letter of Agreement - Bozeman Sports Park School District Project - Design and
Planning.pdf
F.4 Authorize the City Manager to Sign the 2023 Safe Streets and Roads for All Grant
Agreement with the Federal Highway Administration for the Comprehensive Safety
Action Plan and Safety Demonstration Project
City of Bozeman SS4A FY23 Exhibits.pdf
City of Bozeman SS4A FY23 Terms and Conditions.pdf
693JJ32540080_Signed.pdf
Grant routing form_signed.pdf
F.5 Authorize the City Commission to Ratify the Montana Main Street Program Grant
Application.
MMS Grant App_Signed.pdf
F.6 Authorize the City Manager to Sign a Task Order 007 with Sanbell for Planning Services
for Applications for Annexation and Initial Zoning for City-owned Property on Fowler
Avenue
Task Order 007_SOW_Fowler Annex and ZMA_120224.pdf
F.7 Authorize the City Manager to sign a Professional Services Agreement with Green
Infrastructure Center for Tree Canopy Coaching
Exhibit A - GIC Tree Canopy Coaching Scope of Services.pdf
PSA Green Infrastructure Center Tree Canopy Coaching - Revised Final Version.pdf
F.8 Authorize the City Manager to Sign Amendment 5 to the Professional Services
Agreement for the Field Survey Term Contract with Sanbell, to Facilitate Design of
Upcoming Capital Improvements Projects
PSA Amendment No 5.docx
Amendment 5 - 112124.pdf
F.9 Ordinance 2171, Final Adoption, Establishing a Zoning Designation of REMU, Residential
Emphasis Mixed-Use District, in Association with the Annexation of 2.705 Acres, the
2320 West Babcock Annexation, Application 24106
24106 2320 W Babcock Ordinance 2171.pdf
2 - 2320 West Babcock Street - ZMA Map.pdf
1 - 2320 West Babcock Street - Annexation Map.pdf
00:08:23 CM Winn presented the Consent Highlights
00:09:53 Public Comment
There was no public comment on Consent.
00:10:14 Motion to Approve : It is my honor to move agenda items F.1 - F.9 as presented.
Douglas Fischer: Motion
Joey Morrison: 2nd
00:10:28 Vote on the Motion to Approve : It is my honor to move agenda items F.1 - F.9 as presented. The
Motion carried 5 - 0.
Approve:
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Bozeman City Commission Meeting Minutes, December 10, 2024
Page 3 of 9
Fischer, Morrison, Bode, Madgic, Cunningham
Disapprove:
None
G) 00:11:27 Public Comment on Non-agenda Items Falling Within the Purview and
Jurisdiction of the Commission
00:11:57 Noah ten Broek commented in favor of the Commission reclaiming review authority
over the Guthrie.
00:15:08 Katie Edgar commented on the closure of N. Ida.
00:16:51 Daniel Carty spoke in favor of the Commission reclaiming review authority of the
Guthrie.
00:17:42 Christy Stillwell spoke in favor of reclaiming the Guthrie project.
00:20:37 Alison Sweeney spoke in favor of reclaiming review authority of the Guthrie.
00:23:05 Emily Talago spoke in favor of the Commission reclaiming the Guthrie project.
00:26:29 Tom Keck spoke in favor of reclaiming review authority of the Guthrie.
00:29:49 Laura Grochowski spoke in favor of the Commission reclaiming review authority of the
Guthrie.
00:33:56 Scott Boyd commented in favor of the City Commission reclaiming review authority of
the Guthrie.
00:36:53 Anthony Smith spoke in favor of city employees getting training to deal with urban
campers.
00:39:30 Guy Santiglia spoke in opposition to Urban Camping.
00:43:05 Andrew Gault commented on the discussion about the Guthrie.
00:45:11 Brian Gallik commented in favor of reclaiming the Guthrie project.
00:47:13 Glen Monahan spoke in opposition to TIF financing.
00:48:38 Natsuki Nakamura commented in opposition to TIF financing.
H) 00:50:20 Special Presentation
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Bozeman City Commission Meeting Minutes, December 10, 2024
Page 4 of 9
H.1 Results of the Montana State University Pilot Study of Modern Treatment Wetland
Technology at the Bozeman Water Reclamation Facility; A Joint Project Between MSU,
DEQ, and the City
CM Winn introduced Staff
00:50:51 Director of Utilities (DU) Shawn Kotz introduced Otto Stein
00:53:08 Professor of Civil Engineering at MSU, Otto Stein presented Treatment Wetland Pilot
Systems at the Bozeman Water Reclamation Facility, Natural Wetlands, Treatment Wetlands:
Engineering + Nature, Bozeman Treatment Wetland System not MSU's First, Ennis National Fish
Hatchery, Bozeman Treatment Wetland Systems, System 1: Headworks System, System 2: Tertiary
System, Bozeman Treatment Wetland Systems, Timeline, Explanations of Success.
I) 01:08:12 Action Items
I.1 Final Vote on Resolution 5663 Approving the Bozeman Yards project in the Northeast
Urban Renewal District as an Urban Renewal Project; Making Findings with Respect
Thereto and Approving the Use of Tax Increment Revenues to Reimburse Eligible Costs
Thereof and Approving a Related Development Agreement
Bozeman Yards Staff Report 20241119.pdf
Resolution 5663 approving Bozeman Yards project.v1.pdf
Baker Tilly Bozeman Yards analysis 111824.pdf
Bozeman Yards TIF APPLICATION NARRATIVE 2024 11.14 e.pdf
BZN Development Agreement -- Bozeman Yards.v3 FINAL.pdf
01:08:19 CM Winn introduced Action Item 1.
01:09:18 Questions of Staff
Motion to Approve : I move to approve Resolution 5663. (See link in text body of Clerk’s note below.)
Jennifer Madgic: Motion
Emma Bode: 2nd
Clerk's note: The motion for Action Item 1 can be found on the November 26 Agenda, where this Action
Item first appeared before the City Commission. At that meeting there were three Commissioners
present, and the vote at that time was 2 - 1, Commissioner Madgic voting against. The Commission has
adopted a rule of three, which requires three commissioners to approve or deny anything. The
November 29th vote was not sufficient to make a final decision on the project. The public hearing was
closed at the November 26 Commission Meeting, (linked here) and a final vote was scheduled for the
December 10 Commission Meeting.
01:25:06 Discussion
01:35:40 Vote on the Motion to Approve : I move to approve Resolution 5663.
The Motion carried 3 - 2.
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Bozeman City Commission Meeting Minutes, December 10, 2024
Page 5 of 9
Approve:
Fischer, Bode, Cunningham
Disapprove:
Madgic, Morrison
I.2 01:36:08 Review and Approval of the 2024 Impact Fee Service Area Report for
Transportation
Bozeman, MT Impact Fee Report_Transportation_10.17.24.pdf
7-6-1602. Calculation of impact fees -- documentation required -- ordinance or resolution
-- requirements for impact fees, MCA.pdf
FY26-30_TranspoFundingSources.pdf
Other Communities Memo 9-5-2024.pdf
01:36:16 CM Winn introduced staff
01:36:40 Community Development Manager (CDM) Chris Saunders presented the 2024 Impact
Fee Service Area Report, 7-6-1601 MCA, Purposes of Impact Fees, FY26-30 Transportation Capital
Improvement Program, Effects of Inflation Compounding, Number of Single Detached and Townhomes
by Impact Fee Size Range Past 24 Months, Public Notice, Public Comment, Recommendation.
01:41:49 Consultant Presentation
Consultant Colin McAweeney of Tischler Bise presented Bozeman Transportation Impact Fee Study
Update, Base Year and Growth Projections, Bozeman Impact Fee Study, Person Miles of Travel, Trip
Exchange Districts (TEDs), Transportation, Maximum Supportable Impact Fee, Transportation, Bozeman
Impact Fee Study, Discussion.
02:03:05 Questions of Consultant
02:50:58 Public Comment
The was no public comment on Action Item I.2.
02:51:12 Motion to Approve : Having reviewed and considered the staff presentation, draft service area
report, public comment, and all information presented, I hereby find the 2024 service area report for
Transportation meets all requirements and accept the report as the basis for transportation impact fees.
Emma Bode: Motion
Jennifer Madgic: 2nd
Discussion
02:55:58 Vote on the Motion to Approve : Having reviewed and considered the staff presentation, draft
service area report, public comment, and all information presented, I hereby find the 2024 service area
report for Transportation meets all requirements and accept the report as the basis for transportation
impact fees. The Motion carried 5 - 0.
Approve:
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Bozeman City Commission Meeting Minutes, December 10, 2024
Page 6 of 9
Bode, Madgic, Fischer, Morrison, Cunningham
Disapprove:
None
I.3 02:56:35 Resolution 5658 Adopting the 2024 Service Area Report for
Transportation Impact Fees and Establishing an Effective Date
Resolution 5658 Transportation 2024.docx
Bozeman, MT Impact Fee Report_Transportation_10.17.24.pdf
02:56:43 CM Winn introduced Action Item I.3
02:56:56 Chris Saunders presented Resolution 5658 Transportation Impact Fees Service Area
Report
02:58:37 Public Comment
There was no public comment on Item I.3.
02:59:01 Motion to Adopt : Having reviewed and considered the staff report, public comment, and all
information presented, I hereby adopt the findings of Resolution 5658 and adopt Resolution 5658 with
an effective date of January 1, 2025.
Jennifer Madgic: Motion
Douglas Fischer: 2nd
Discussion
03:00:39 Vote on the Motion to Adopt : Having reviewed and considered the staff report, public comment,
and all information presented, I hereby adopt the findings of Resolution 5658 and adopt Resolution 5658
with an effective date of January 1, 2025. The Motion carried 5 - 0.
Approve:
Madgic, Fischer, Morrison, Bode, Cunningham
Disapprove:
None
03:00:54 Mayor Cunningham called the Meeting into recess.
03:08:57 Mayor Cunningham called the meeting to order
I.4 03:09:12 Resolution 5662, Adoption of the Fiscal Years (FY) 26-30 Capital
Improvements
Resolution 5662.docx
03:09:23 CM Winn introduced Action Item I.4
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Bozeman City Commission Meeting Minutes, December 10, 2024
Page 7 of 9
03:11:31 Motion to Approve : I move to approve Resolution 5662.
Douglas Fischer: Motion
Joey Morrison: 2nd
03:12:19 Mayor Cunningham passed the gavel to Deputy Mayor Morrison to act as presiding
officer during the amendment process.
03:12:40 Motion to Amend : I move to amend resolution 5662 by moving the loop trail feasibility study
from FY 28 to FY 26.
Terry Cunningham: Motion
Douglas Fischer: 2nd
03:12:59 Discussion
03:17:13 Vote on the Motion to amend : I move to amend resolution 5662 by moving the loop trail
feasibility study from FY 28 to FY 26. The Motion carried 5 - 0.
Approve:
Fischer, Morrison, Bode, Madgic, Cunningham
Disapprove:
None
03:18:06 Motion to Amend : I move that the budget allocation to address food truck grease at the
Fairgrounds be moved to FY 26 from FY 27.
Terry Cunningham: Motion
Douglas Fischer: 2nd
Discussion
03:21:41 Vote on the Motion to Amend : I move that the budget allocation to address food truck grease
at the Fairgrounds be moved to FY 26 from FY 27. The Motion carried 5 - 0.
Approve:
Fischer, Morrison, Bode, Madgic, Cunningham
Disapprove:
None
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Bozeman City Commission Meeting Minutes, December 10, 2024
Page 8 of 9
03:26:43 Motion to Amend : I move to move the frontage road path design to FY 27 from FY 28 as well
as the design from the Wastewater Fund, $304,000.00 from FY 28 to FY 27 and the Wastewater Impact
Fee Fund charge for design of $830,000.00 from FY 28 to FY 27.
Terry Cunningham: Motion
Douglas Fischer: 2nd
Discussion
03:32:25 Vote on the Motion to Amend : I move to move the frontage road path design to FY 27 from FY
28 as well as the design from the Wastewater Fund, $304,000.00 from FY 28 to FY 27 and the Wastewater
Impact Fee Fund charge for design of $830,000.00 from FY 28 to FY 27. The Motion carried 4 - 1.
Approve:
Morrison, Bode, Madgic, Cunningham
Disapprove:
Fischer
03:32:49 Deputy Mayor Morrison passed the gavel back to Mayor Cunningham to resume as
presiding officer.
Discussion of Amended Resolution Motion.
03:50:13 Public Comment
There was no public comment on Action Item I.4.
03:50:51 Vote on the Motion to Approve : I move to approve Resolution 5662. The Motion carried 5 - 0.
Approve:
Fischer, Morrison, Bode, Madgic, Cunningham
Disapprove:
None
J) 03:51:08 FYI / Discussion
• Mayor Cunningham reminded everyone of UDC Engagement possibilities.
• 03:53:04 CM Winn clarified that at the meeting with Homebase, which he, Emily Talago
and Noah ten Broek attended, E. Talago and N. ten Broek were attending that meeting in
personal capacity and not as neighborhood representatives.
K) 03:55:00 Adjournment
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Bozeman City Commission Meeting Minutes, December 10, 2024
Page 9 of 9
___________________________________
Joey Morrison
Mayor
ATTEST:
___________________________________
Mike Maas
City Clerk
PREPARED BY:
___________________________________
Alex Newby
Deputy City Clerk
Approved on: February 10, 2026
14
Memorandum
REPORT TO:City Commission
FROM:Serena Axelson, Accounts Payable Clerk
Rhonda Edwards, Accounts Payable Clerk
Aaron Funk, City Controller
Melissa Hodnett, Finance Director
SUBJECT:Accounts Payable Claims Review and Approval
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Finance
RECOMMENDATION:The City Commission is recommended to make a motion and approve
payment of claims as presented.
STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable
sources of funding for appropriate City services, and deliver them in a lean
and efficient manner.
BACKGROUND:Montana Code Annotated, Section 7-6-4301 requires claims to be presented
to the City Commission within one year of the date the claims accrued.
Claims presented to the City Commission under this item have been
reviewed and validated by the Finance Department. The Department has
ensured that all goods and services have been received along with necessary
authorizations and supporting documentation. Please provide approval for
checks dated February 11 & 18, 2026.
UNRESOLVED ISSUES:None
ALTERNATIVES:The City Commission could decide not to approve these claims or a portion
of the claims presented. This alternative is not recommended as it may
result in unbudgeted late fees assessed against the City.
FISCAL EFFECTS:The total amount of the claims to be paid is presented at the bottom of the
Expenditure Approval List posted on the City’s website at
https://www.bozeman.net/departments/finance/purchasing.
Report compiled on: August 21, 2024
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Memorandum
REPORT TO:City Commission
FROM:Clark
SUBJECT:Approval of depository bonds and pledged securities as of December 31,
2025.
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Finance
RECOMMENDATION:Approve the depository bonds and pledged securities as of December 31,
2025.
STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable
sources of funding for appropriate City services, and deliver them in a lean
and efficient manner.
BACKGROUND:
Pledged securities are assets, such as government or municipal bonds, that a
financial institution commits as collateral to secure a deposit in excess of the
$250,000 insured by the FDIC. Utilizing pledged securities offers an added
layer of security for large deposits, ensuring that funds are protected beyond
the standard FDIC insurance limits. This practice ensures that public money
remains secure, promoting fiscal responsibility and stability. Per MCA section
7-6-207 the City Commission must approve pledged securities at least
quarterly.
UNRESOLVED ISSUES:None
ALTERNATIVES:As suggested by the City Commission
FISCAL EFFECTS:The city is sufficiently pledged.
Attachments:
Depository Bonds & Securities 123125.pdf
Report compiled on: January 22, 2026
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DEPOSITORY BONDS AND SECURITIES
AS OF
December 31, 2025
MATURITY CUSIP NO/LOC NO. TOTAL AMOUNT
US BANK
All Accounts
Federal Deposit Insurance Corporation-Operating Accts $ 250,000.00
LOC-FHLB Cincinnati 4/15/2026 584669 $ 12,000,000.00
TOTAL – US Bank $ 12,250,000.00
This is to certify that we, the Commission of the City of Bozeman, in compliance with the provisions of Section 7-6-
207, M.C.A., have this day certified the receipts of US Bank, for the Depository Bonds held by the Director of
Finance as security, for the deposit for the City of Bozeman funds as of December 31, 2025, by the banks of
Bozeman and approve and accept the same.
_____________________________________________
JOEY MORRISON, Mayor
_______________________________________ _______________________________________
DOUGLAS FISCHER, Deputy Mayor JENNIFER MADGIC, Commissioner
_______________________________________ _______________________________________
EMMA BODE, Commissioner ALISON SWEENEY, Commissioner
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PLEDGED SECURITIES AND CASH IN BANK
As of
December 31, 2025
US BANK
Total Cash on Deposit $8,832,473.07
FDIC Coverage $250,000.00
Amount Remaining $8,582,473.07
Pledges Required 104% $8,925,771.99
Actual Pledges $12,000,000.00
Over (Under) Pledged $3,074,228.01
REFERENCE: Section 7-6-207, M.C.A.
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Memorandum
REPORT TO:City Commission
FROM:Jamie Grabinski, Grants Coordinator
Aaron Funk, Controller
Melissa Hodnett, Finance Director
SUBJECT:Ratify the Grant Application to MT Department of Environmental Quality
(DEQ) for an All Electric Aerial Bucket Truck for the Streets Division
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Grant
RECOMMENDATION:Ratify the Grant Application to MT Department of Environmental Quality
(DEQ) for an All Electric Aerial Bucket Truck for the Streets Division
STRATEGIC PLAN:1.3 Public Agencies Collaboration: Foster successful collaboration with other
public agencies and build on these successes.
BACKGROUND:In January 2026, the City of Bozeman was invited to submit a full application
to the MT Department of Environmental Quality Clean Truck, Bus & Airport
Equipment to replace a diesel engine vehicle with an all electric vehicle. This
is the final round of funding opportunity from the Volkswagen Diesel
Emissions settlement money that the State of Montana received. We
submitted this application to replace asset #3450, a 2008 Ford 550 Aerial Lift
Truck, for our Signs & Signals department with a fully electrified chassis and
electrically driven hydraulic lifting apparatus.
UNRESOLVED ISSUES:None.
ALTERNATIVES:As suggested by Commission.
FISCAL EFFECTS:Total expenditures are expected to be $587,986. With the grant funding, it is
expected to be an 85/15 split of grant funding to local match. Expenditures
are included in the FY26 Capital Improvement Plan for the Streets Division.
Attachments:
DEQ Aerial Truck COB App_Final_Signed.pdf
Report compiled on: January 29, 2026
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CLEAN TRUCK, BUS & AIRPORT EQUIPMENT
TRUCK & BUS APPLICATION FORM
INSTRUCTIONS
This Application Form supplements the Clean Truck, Bus & Airport Equipment Request for Applications (RFA). The
RFA includes detailed information about project and application eligibility, funding schedule, cost-share and
scoring criteria.
Carefully review the Two-Phase Solicitation Schedule below for dates and requirements in Section 5 of this RFA.
Final Application Phase applications must complete and upload this form to the Supplier’s Attachments page of
the eMACS event by 5:00pm Mountain time on the application deadline.
1)Completed DEQ Clean Truck, Bus & Airport Equipment application form with signature of individual from
the lead applicant responsible for authorizing and overseeing completion of the project. Proposals that
do not use the DEQ application form will not be considered for funding.
2)Letter(s) of Commitment from the applicant demonstrating assurance that project will operate primarily
in Montana (i.e., for at least half of its operating time/mileage) and for at least five years.
3)Letter(s) of Commitment for match from the applicant and from additional project funding partners (if
applicable), who will provide necessary matching funds for the project.
4)Copy of existing vehicle title, including model year and VIN.
5)A clear, legible photo of the engine label that captures the engine make, model, year, horsepower, serial
number and engine family name for each vehicle proposed for replacement.
6)A clear, legible photo of the VIN plate (if applicable) that includes VIN and gross vehicle weight rating
(GVWR) for each vehicle proposed for replacement. If a VIN plate is not available, provide
documentation of the GVWR.
7)Three different bids for the replacement vehicle. If you are not able to provide three bids, please include
a written explanation of the reason why.
APPLICANT INFORMATION
Organization Name: _______________________________ ☐Government ☐ Nongovernment
Mailing Address: ________________________________________________________________
City: ____________ County: ____________ State: _____________ Zip Code: __________
Employer/Taxpayer ID (EIN/TIN): __________________ UEI (from SAM.gov): _______________
Authorized Representative Name: ______________________ Title: ______________________
E-mail: _________________________________ Phone: _______________________________
Alternate Representative Name: _____________________ Title: _______________________
E-mail: ________________________________ Phone: ________________________________
Is your organization/entity submitting more than one application for vehicle replacements?
Yes No If yes, how many? _______________
City of Bozeman
121 N. Rouse Ave.
Bozeman Gallatin MT 59715
81-6001238 EEAPKALAEM35
Chuck Winn City Manager
cwinn@bozeman.net 406-582-2307
Sam Bearzi Fleet Manager
sbearzi@bozeman.net 406-577-7406
Docusign Envelope ID: 55AD95D7-EDC8-457F-9768-FEE45689E1A3
20
PROJECT INFORMATION
Existing vehicle
Type: _____________ Make: _____________ Model: _____________ Year: _____________
VIN: ____________________ GVWR: ___________________ Fuel Type: ________________
Fuel Usage/Year: ___________________ Annual Mileage Used: ____________________
Total Mileage (Odometer or hour reading): __________ (Bus Projects Only) Annual Ridership _______
Estimated hours operated/year including idle hours: ________
Estimated remaining life, in hours & years: __
Existing Engine
Type: _________ Make: _________ Model: _________ Year: _________ Serial/ID#_________
Horsepower: ____
New vehicle
Type: _____________ Make: _____________ Model: _____________ Year: _____________
GVWR: _______________________________ Fuel Type: _____________________________
New Engine
Type: __________ Make: __________ Model: __________ Year: __________ Horsepower: _____
Cost
Total vehicle Cost: _________________ Total Funding Requested: __________________
Percentage of Funding Requested of Total Project Cost: ________________________________
Total Infrastructure Cost (if applicable): _____________________________________________
Total Infrastructure Funding Requested: _____________________________________________
DESCRIPTION OF PROPOSED PROJECT
Responses to the following questions will be used to evaluate and score this application. Incomplete applications
will not be evaluated. The Project Scoring Criteria Matrix is in Section 3 of the Clean Truck, Bus & Airport
Equipment RFA.
A.NOx emissions – Please provide an estimate of the remaining useful life of the existing vehicle/AGSE,
and emission calculation methodology explaining the annual NOx emissions reductions that will occur through
the implementation of the proposed project. Projects achieving the greatest NOx emission reductions over the
first five years of operation will receive priority over projects with lesser emissions reductions. Tools that can
calculate annual NOx reduction estimates include Argonne National Lab’s AFLEET tool located at:
https://greet.es.anl.gov/afleet_tool and the EPA’s Diesel Emissions Quantifier located at
https://cfpub.epa.gov/quantifier/. (150 points)
Bucket Truck Ford F550 Lift Truck 2008
1FDAF57R68ED99043 17950 Diesel
300 gallons 1500
22236 n/a
250
3 years
Internal combustion International A325 2008 1882243C1
325
Bucket Truck Mack MD Electric 2027
33,000 lbs Electric
Electric Mack MD BE 2027 260
$587,986.00 $499,788.10
85%
$5,000
$0
The remaining useful life of the existing vehicle is estimated to be 3 years. Using the EPA Diesel
Emissions Quantifier and based on the existing vehicles annual mileage of 1500 miles, annual fuel
usage of 250 gallons, and annual idling time of 250 hours, the annual NOx emissions of the existing
vehicle are equal to 20.52 pounds per year. By replacing the existing vehicle with a fully electric vehicle
NOx emissions would be reduced by an estimated 102.58 pounds over the first five years of operation.
Docusign Envelope ID: 55AD95D7-EDC8-457F-9768-FEE45689E1A3
21
B.Achieving long-term air quality benefits for the greatest number of Montanans – Priority will be given
to projects operating within counties that include areas that are currently in non-attainment, maintenance, or
high risk for pollutants associated with mobile sources under the National Ambient Air Quality Standards
(NAAQS); counties with the highest mobile-source NOx emission rankings for Montana as provided in the 2020
National Emissions Inventory (2020 NEI); and/or areas that are eligible for designation as a Class I area. See
Appendix A for a listing of priority air quality counties and areas. (150 points)
C.Investing in clean alternative fuels/infrastructure – Projects proposing to replace an older vehicle with
an alternate fuel or all-electric vehicle will be given priority over proposals to replace diesel with diesel. (100
points)
D.Project timeline – Provide a proposed schedule detailing the steps necessary for completing the project
including expected dates for key project milestones such as ordering and delivery of the new vehicle, scrapping
the old vehicle, and when the new vehicle is expected to begin service. All project milestones must be completed
within 20 months of the grant agreement/contract execution date. If requesting an all-electric or fuel cell vehicle,
provide information about the required charging or fueling infrastructure and indicate if that infrastructure is in
place or provide the installation timeline. (50 points)
This vehicle will operate exclusively in Gallatin County, #3 on highway N0x emissions. The intended
use of this vehicle is for the maintenance and replacement of the street lighting and traffic signal
infrastructure within city limits.
This project will replace a 2008 diesel aerial lift truck with a fully EV aerial lift truck. This application is
prone to high idling time due to the nature of the work being performed with the vehicle. The vehicle
drives to a location, then may be stationary but idling to operate the apparatus for the duration of the
work time.
The City of Bozeman has already procured a 120KWh (300a) DC fast charger and is in the process of
installation with the anticipated completion in May, 2026. The City of Bozeman already has 12 level 2
CCS1 chargers operational and we will be installing dedicated level 2 chargers exclusively for the long
term charging and battery maintenance of this EV. Installation of the dedicated charger will be
completed within 3 months of notice of award.
Docusign Envelope ID: 55AD95D7-EDC8-457F-9768-FEE45689E1A3
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Milestones Proposed
Completion Date
Notes
Purchase order issued for new
vehicle
Delivery of new vehicle
Existing vehicle scrappage with
required documentation
(scrappage requirements listed in
Section 2.E of RFA)
New vehicle begins service
Reimbursement request with
required documentation
E.Project budget – Detailed cost estimates for preferred vendor and any other purchase costs associated
with the project to be paid by the applicant or with the requested funding. (50 points)
Total Project
Cost
Total Funding
Request
Request Percentage
of Total Project Cost
Cost Share from
Applicant
Percentage
Cost Share
from
Applicant
Vehicle
replacement
Electric vehicle or
fuel cell charging
infrastructure
(if applicable)
* Use N/A for any fields that are not applicable to this project.
F.Maintenance plan – Plan for ongoing maintenance of the new vehicle that details resources and/or
personnel that will be utilized for both regular service and emergency repairs. (50 points)
G.Previous funding – Did applicant or project partner receive funds from DEQ in previous DEQ Volkswagen
funding opportunities? (50 points)☐Yes ☐No
June 30th, 2026 Purchase order shall be executed after execution of contract between DEQ and City of Bozeman.
December 2nd, 2027 - May 2nd, 2028 Estimated delivery days from the vendor are 520-690 days.
May 19th, 2028 Based on the latest estimated delivery date from
the vendor. If the vehicle is delivered earlier, it
could be decommissioned within two weeks of
delivery.
May 15th, 2028 Based on the latest estimated delivery date from the vender. If the vehicle is delivered earlier, it could be in service within one week of delivery.
June 16th, 2028 Based on the latest delivery date window and receipt of the invoice from the vendor. The required documentation for reimbursement could be submitted by June 16th, 2028.
$587,986.00 $499,788.10 85%$88,197.90 15%
$5,000 $0 0%100%100%
In the short term, our vehicle maintenance technicians will repair and maintain basic low voltage
components and the hydraulic system. The local dealer will be responsible for any repairs to the
chassis involving the high voltage EV components. The local Mac dealer has 5 technicians certified to
work on the EV chassis between their Bozeman and Billings locations. The manufacturer warranty will
cover 36 months/150,000 miles on the electric powertrain and truck. Within 5-10 years we will have
certifications and manufacturer based training for our vehicle maintenance technicians so that work can
be performed in house. Those certifications will include ASE xEV High-Voltage Electrical Safety
certification and training qualifications from Mack for their MDe7 chassis and drive train. We have the
existing ability to tow this vehicle to dealer support.
n
Docusign Envelope ID: 55AD95D7-EDC8-457F-9768-FEE45689E1A3
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APPLICATION ACKNOWLEDGEMENT
Authorized Representative Name: ______________________ Title: _____________________
Authorized Representative Signature: ___________________ Date: _____________________
Chuck Winn City Manager
1.28.2026
Docusign Envelope ID: 55AD95D7-EDC8-457F-9768-FEE45689E1A3
24
Memorandum
REPORT TO:City Commission
FROM:Susana Montana, Senior Planner, Development Review Division
Brian Krueger, Manager, Development Review Division
Rebecca Harbage, Deputy Director of Community Development
Erin George, Director of Community Development
SUBJECT:Approve the Final Plat for the Meadow Bridge Subdivision and Authorize the
Director of Transportation and Engineering to Execute the Same on Behalf of
the City of Bozeman and Authorize the Director of Community Development
to Execute the Improvements Agreement on Behalf of the City of Bozeman,
Application 25557
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Community Development - Quasi-Judicial
RECOMMENDATION:Approve the Final Plat for the Meadow Bridge Subdivision and Authorize the
Director of Transportation and Engineering to Execute the Same on Behalf of
the City of Bozeman and Authorize the Director of Community Development
to Execute the Improvements Agreement on Behalf of the City of Bozeman,
Application 25557
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:
The Meadow Bridge Subdivision Preliminary Plat Findings of Fact and Order
(FOF) was approved by the City Commission on July 15, 2025 (Application
No. 25017) and the FOF was signed on August 5, 2025. This is a major
subdivision final plat application to divide two parcels, totaling 25.32-acres,
into 45 buildable lots, 1 City park lot, 3 open space lots and road rights-of-
way. The property is zoned R-3, Medium-density Residential District. The
property is located west of South 23rd Avenue, east of Parkway Avenue, south of
Commonwealth Street, and northwest of the corner of Blackwood Road and South
23rd Avenue.
The residential uses are anticipated to be single-household dwellings,
although several of the lots are large enough to accommodate multiple-unit
dwellings allowed by the zoning. The applicant requested and was granted
one departure from the City of Bozeman Landscape and Irrigation
Performance and Design Standards Manual under BMC 38.550.060 to
25
preserve existing trees on site to meet the tree planting requirements of the
landscape design manual. Utilizing the departure allows the development to
reduce the area required for new landscaping and allows for a more water-
efficient landscape design in the open spaces, preserving their natural state.
This is in keeping with the City’s water conservation goals and the character
of the surrounding neighborhood. The City’s Water Conservation Division
has reviewed and approved the requested departure.
This Final Plat requires an Improvements Agreement (IA) and Financial
Surety for landscaping and improvements to the City Park Lot and for street
light poles and luminaries for the subdivision. The financial surety Letter of
Credit in the total amount of $632,057.77 from the Travelers Casualty and
Surety Company of America has been provided by the developer. Therefore,
this Final Plat submittal meets/satisfies all conditions of approval and code
provisions of the Preliminary Plat as well as the standards of MCA Sections
76-3-611(1) and 76-3-612, as certified by the City Attorney.
UNRESOLVED ISSUES:None
ALTERNATIVES:None suggested.
FISCAL EFFECTS:The development of this subdivision will provide increased property tax
revenue with which to support the costs of providing municipal services to
the development.
Attachments:
25557 Meadow Bridge FP Commission Memo.docx
25557 Meadow Bridge final plat City Attorney Certificate.pdf
Report compiled on: January 27, 2026
26
Commission Memorandum
REPORT TO: Mayor and City Commission
FROM: Kelley Rischke, Assistant City Attorney
Susana Montana, Senior Planner, Community Development
SUBJECT: Approve the Final Plat for the Meadow Bridge Subdivision and Authorize the
Director of Transportation and Engineering to Execute the Same on Behalf of the City of
Bozeman and the Director of Community Development to Execute the Improvements Agreement
on Behalf of the City of Bozeman, Application No. 25557. Quasi-Judicial
STRATEGIC PLAN: 4.2 High Quality Urban Approach. Continue to support high quality
planning, ranging from building design to neighborhood layouts, while pursuing urban approaches
to issues such as multimodal transportation, infill, density, connected trails and parks, and walkable
neighborhoods.
MEETING DATE: February 10, 2026
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Approve the Final Plat for the Meadow Bridge Subdivision and
Authorize the Director of Transportation and Engineering to Execute the Same on Behalf of the
City of Bozeman and the Director of Community Development to Execute the Improvements
Agreement on Behalf of the City of Bozeman, Application No. 25557.
BACKGROUND: The Meadow Bridge Subdivision Preliminary Plat Findings of Fact and Order
(FOF) was approved by the City Commission on July 15, 2025 (Application No. 25017) and the
FOF was signed on August 5, 2025. This is a major subdivision final plat application to divide
two parcels, totaling 25.32-acres, into 45 buildable lots, 1 City park lot, 3 open space lots and road
rights-of-way. The property is zoned R-3, Medium-density Residential District. The property is
located west of South 23rd Avenue, east of Parkway Avenue, south of Commonwealth Street, and northwest
of the corner of Blackwood Road and South 23rd Avenue.
The residential uses are anticipated to be single-household dwellings, although several of the lots
are large enough to accommodate multiple-unit dwellings allowed by the zoning. The applicant
requested and was granted one departure from the City of Bozeman Landscape and Irrigation
Performance and Design Standards Manual under BMC 38.550.060 to preserve existing trees on
site to meet the tree planting requirements of the landscape design manual. Utilizing the departure
allows the development to reduce the area required for new landscaping and allows for a more
27
water-efficient landscape design in the open spaces, preserving their natural state. This is in
keeping with the City’s water conservation goals and the character of the surrounding
neighborhood. The City’s Water Conservation Division has reviewed and approved the requested
departure.
This Final Plat requires an Improvements Agreement (IA) and Financial Surety for landscaping
and improvements to the City Park Lot and for street light poles and luminaries for the subdivision.
The financial surety Letter of Credit in the total amount of $632,057.77 from the Travelers
Casualty and Surety Company of America has been provided by the developer. Therefore, this
Final Plat submittal meets/satisfies all conditions of approval and code provisions of the
Preliminary Plat as well as the standards of MCA Sections 76-3-611(1) and 76-3-612, as certified
by the City Attorney.
The Meadow Bridge Final Plat Application No. 25557 can be viewed here.
§76-3-611(1), MCA, provides that the City Commission shall approve the plat only if:
(a) it conforms to the conditions of approval set forth on the preliminary plat and to the terms of
this chapter and regulations adopted pursuant to this chapter; and
(b) the county treasurer has certified that all real property taxes and special assessments assessed
and levied on the land to be subdivided have been paid.
Staff finds that all terms and conditions of the preliminary plat approval have been met. The
County Treasurer has certified that all real property taxes and special assessments assessed and
levied on the land to subdivide have been paid.
UNRESOLVED ISSUES: None identified.
ALTERNATIVES: None suggested or proposed.
FISCAL EFFECTS: Fiscal impacts are undetermined at this time but will include increased
property tax revenues from new development, along with increased costs to deliver municipal
services to the property.
Report compiled on: January 27, 2026
Attachment: City Attorney Certificate
28
29
Memorandum
REPORT TO:City Commission
FROM:Taylor Lonsdale, Transportation Engineer
Nicholas Ross, Director of Transportation and Engineering
SUBJECT:Authorize the City Manager to Sign a Professional Services Agreement with
Sanbell for the 2026 Transportation Engineering Term Contract
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Agreement - Vendor/Contract
RECOMMENDATION:Authorize the City Manager to Sign a Professional Services Agreement with
Sanbell for the 2026 Transportation Engineering Term Contract.
STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a
mechanism to encourage economic development.
BACKGROUND:The City of Bozeman's Engineering Division seeks on-call consultant support
to effectively manage transportation system improvements across the city.
Sanbell was selected for this transportation term contract and will provide
on-call engineering services to support the Transportation and Engineering
Department in developing transportation improvements to maintain a
reliable, efficient, and safe transportation system. Services under this
contract may include: completing traffic engineering studies, intersection
capacity analyses, signal design and/or timing, safety studies, and other small
projects. Work under this agreement will be implemented at the discretion
of the Director of Transportation and Engineering through Task Orders
under the contract. Staff anticipate managing several task orders in parallel,
and each task order will have an identified scope of work and budget. Task
Orders will be presented to City Commission for review and authorization as
consent items.
UNRESOLVED ISSUES:None.
ALTERNATIVES:None identified or recommended.
FISCAL EFFECTS:An annual budget of $50,000 is allocated in Fund 111 - Street Maintenance
under contracted consultant services.
Attachments:
2026 Transportation Engineering Term
Contract_PSA_Sanbell_for signature.docx
Attachment A_Task Order Form.docx
30
Report compiled on: January 27, 2026
31
Professional Services Agreement for 2026 Transportation Engineering Term Contract
Page 1 of 14
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this 10th day of February, 2026 (“Effective
Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal
corporation organized and existing under its Charter and the laws of the State of Montana, 121 North
Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771,
hereinafter referred to as “City,” and, Sanbell, 106 E Babcock St Suite L1, Bozeman, MT, 59715,
hereinafter referred to as “Contractor.” The City and Contractor may be referred to individually as
“Party” and collectively as “Parties.”
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged, the parties hereto agree as follows:
1. Purpose: City agrees to enter this Agreement with Contractor to perform
Transportation Engineering services for the City as requested by written Task Order and as described
in the Task Order.
2. Term/Effective Date: This Agreement is effective upon the Effective Date and will
expire on the 31st day of December, 2028, or upon completion of the last project-specific Task Order
issued prior to 31st day of December, 2028, unless terminated earlier in accordance with this
Agreement.
3. Scope of Services: Contractor will perform the work and provide the services in
accordance with the individual written Task Orders executed under the authority of this agreement
and as mutually agreed upon by the City and the Contractor. Task Orders shall be in a format similar
to Exhibit “A”, attached to and made part of this agreement. Each Task Order will include a detailed
Scope of Work and associated budget. For conflicts between this Agreement and the Scope of Work
in the Task Order, unless specifically provided otherwise, the Agreement governs.
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Professional Services Agreement for 2026 Transportation Engineering Term Contract
Page 2 of 14
4. Payment: City agrees to pay Contractor the amount specified in the Scope of Services
of each individual Task Order. Any alteration or deviation from the described services that involves
additional costs above the Agreement amount will be performed by Contractor after written request
by the City, and will become an additional charge over and above the amount listed in the Scope of
Services. The City must agree in writing upon any additional charges.
Cost shall be calculated and defined as follows:
a. Cost. Cost is the actual cost of the work. Through the negotiations process, the
OWNER establishes a maximum cost ceiling on a cost-plus-fixed-fee contract. Federal
regulations (23 CFR 172) require a contract maximum cost ceiling in cost plus fixed fee
contracts.
b. Fixed Fee. Fixed Fee is the negotiated fee and a set dollar amount in the agreement
that includes a maximum profit of 12-percent of total labor costs for the Consultant. Up to the
equivalent of percent of labor and overhead to the date of the invoice, the Consultant may
claim partial payment of the Fixed Fee. If tasks within the Scope of Services are not
completed, no Fixed Fee will be billed for those tasks. No Fixed Fee will be billed for
construction engineering services that are not performed. Subject to the foregoing, the entirety
of the Fixed Fee for tasks completed within the Scope of Services may be billed at Final
Payment.
c. Direct Costs. Direct costs shall be in conformance with 48 CFR Part 31, and the
AASHTO Uniform Audit & Accounting Guide, and may include the cost of Subconsultants.
The Consultant certifies that any projected salary rate increases included in the Proposal are
based on reasonably on the Consultant’s usual and customary practices. Prior written approval
of the OWNER is required for overtime compensation.
d. Indirect Costs, applicable to Consultant and Subconsultants. Generally, after the
execution of this agreement, the OWNER will give Notice of the Indirect Costs (IDC) rates
that will be applied to this Agreement. Such notice is incorporated herein by the reference.
The IDC rate and supporting documentation must be calculated and submitted in accordance
with 23 CFR §172 using the cost principles of 48 CFR Part 31. The Consultant will establish
the IDC rate based on the Consultant’s Accounting Period. In no event will the IDC rate cause
an increase or decrease in the Fixed Fee. The Consultant must keep on file with the OWNER
an accepted Certification of Indirect Costs. For purposes of compensation, the rights and
obligations of the Consultant set forth in this Section shall apply to the Subconsultant. Each
Subconsultant shall submit to the irrevocable commitment option specified by the Consultant.
i. An Indirect Cost Rate is required, except when total compensation is less than or equal
to Fifty Thousand Dollars ($50,000); and Consultant/Subconsultant does not have a
current, OWNER-accepted indirect cost rate or cognizant audit; or Subconsultant is
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Professional Services Agreement for 2026 Transportation Engineering Term Contract
Page 3 of 14
providing vendor-type services or contract labor and does not have a current,
OWNER-accepted indirect costs rate or cognizant audit.
ii. An unaudited indirect cost rate is acceptable when the Total Compensation is less than
or equal to Two Hundred Fifty Thousand Dollars ($250,000); and a Risk Assessment
determines an unaudited indirect cost rate is acceptable.
iii. An audited indirect cost rate is required when The Total Compensation is more than
Two Hundred Fifty Thousand Dollars ($250,000) per individual task order; or a Risk
Assessment determines that an audited indirect cost rate is required.
iv. In unique cases, Negotiated or Provision Indirect Cost Rates may be used, as described
in MDT’s Consultant Services Manual, if all parties agree.
v. Due date.
1. Due date (Audited). If an audited indirect cost rate is required, within thirty
(30) days of the date of an independent auditor’s report setting the
consultant’s audited overhead rate, the new bona fide audited IDC rate must
be submitted to the OWNER as part of the Risk Assessment Package.
2. Due date (Unaudited). If an unaudited indirect cost rate is required, within
thirty (30) days of its calculation, a bona fide IDC rate must be submitted to
the OWNER as part of the Risk Assessment Package.
3. At the OWNER’s sole discretion, the Consultant shall pay the OWNER
liquidated damages at the rate of One Hundred Dollars ($100.00) per day for
each day after the Due Date.
vi. Effective date.
1. The IDC rate expires one (1) yar after the end of the Accounting Period.
2. Before the end of the Grace Period, defined as six (6) months following the
expiration of the IDC rate, the Consultant shall submit a new IDC rate.
3. An IDC rate submitted within the Grace Period is effective as the first day of
the month following the month of the OWNER’s letter of acceptance; except,
an IDC rate not accepted by the OWNER by the end of the Grace Period is
retroactive to the end of the Grace Period.
4. A bona fide IDC rate received after the expiration of the Grace Period is
retroactive to the date it is received by the OWNER.
5. In the event the OWNER, in its sole discretion, determines that the submitted
IDC rate is not bona fide the rate will be effective on the date accepted and
will not be retroactive.
6. Failure by the Consultant to provide an IDC rate, as required herein, may
result in a One Hundred Percent (100%) forfeiture of the IDC rate portion
for services rendered after the Grace Period.
vii. The Consultant shall commit, irrevocably for the duration of this Agreement, to one
of two options:
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Professional Services Agreement for 2026 Transportation Engineering Term Contract
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1. Consultant’s IDC rate will remain fixed through the term of this Agreement.
In the event of any extension of the term of this Agreement, then the
Consultant shall provide its new rate; or if a new rate is unavailable, then a
new rate will be negotiated by the parties.
2. Following the same procedure as for the original submission, the
Consultant’s IDC rate will be submitted annually, within the Grace Period.
viii. The Consultant may request exceptions to the requirements of this section on a case-
by-case basis, and the OWNER will consider these exceptions. Any exceptions, if
approved, must be in writing and must comply with all applicable laws, regulations,
policies, and procedures.
5. Contractor’s Representations: To induce City to enter into this Agreement,
Contractor makes the following representations:
a. Contractor has familiarized itself with the nature and extent of this Agreement, the
Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules,
and regulations that in any manner may affect cost, progress or performance of the Scope of Services.
b. Contractor represents and warrants to City that it has the experience and ability to
perform the services required by this Agreement; that it will perform the services in a professional,
competent and timely manner and with diligence and skill; that it has the power to enter into and
perform this Agreement and grant the rights granted in it; and that its performance of this Agreement
shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark,
privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal,
state and municipal laws. The City will not determine or exercise control as to general procedures or
formats necessary to have these services meet this warranty.
6. Independent Contractor Status/Labor Relations: The parties agree that Contractor
is an independent contractor for purposes of this Agreement and is not to be considered an employee
of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s
personnel policies handbook and may not be considered a City employee for workers’ compensation
or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in
any dealings between Contractor and any third parties.
Contractor shall comply with the applicable requirements of the Workers’ Compensation Act,
Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of
Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for
all members and employees of Contractor’s business, except for those members who are exempted
by law.
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Professional Services Agreement for 2026 Transportation Engineering Term Contract
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Contractor shall furnish the City with copies showing one of the following: (1) a binder for
workers’ compensation coverage by an insurer licensed and authorized to provide workers’
compensation insurance in the State of Montana; or (2) proof of exemption from workers’
compensation granted by law for independent contractors.
In the event that, during the term of this Agreement, any labor problems or disputes of any type arise
or materialize which in turn cause any services to cease for any period of time, Contractor specifically
agrees to take immediate steps, at its own expense and without expectation of reimbursement from
City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall
take shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all
costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit
the services to continue at no additional cost to City.
Contractor shall indemnify, defend, and hold the City harmless from any and all claims,
demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in
connection with any labor problems or disputes or any delays or stoppages of work associated with
such problems or disputes.
7. Indemnity/Waiver of Claims/Insurance: For other than professional services
rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and
hold harmless the City, its agents, representatives, employees, and officers (collectively referred to
for purposes of this Section as the City) from and against any and all claims, demands, actions, fees
and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses,
expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or
damages of whatever kind or nature connected therewith and without limit and without regard to the
cause or causes thereof or the negligence of any party or parties that may be asserted against,
recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or
in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii)
any negligent, reckless, or intentional misconduct of any of the Contractor’s agents.
For the professional services rendered, to the fullest extent permitted by law, Contractor
agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and
expenses, including reasonable defense attorney fees, to the extent caused by the negligence or
intentional misconduct of the Contractor or Contractor’s agents or employees.
Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations
of indemnity that would otherwise exist. The indemnification obligations of this Section must not be
construed to negate, abridge, or reduce any common-law or statutory rights of the City as
indemnitee(s) which would otherwise exist as to such indemnitee(s).
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Professional Services Agreement for 2026 Transportation Engineering Term Contract
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Contractor’s indemnity under this Section shall be without regard to and without any right to
contribution from any insurance maintained by City.
Should the City be required to bring an action against the Contractor to assert its right to
defense or indemnification under this Agreement or under the Contractor’s applicable insurance
policies required below, the City shall be entitled to recover reasonable costs and attorney fees
incurred in asserting its right to indemnification or defense but only if a court of competent
jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to
indemnify the City for a claim(s) or any portion(s) thereof.
In the event of an action filed against the City resulting from the City’s performance under
this Agreement, the City may elect to represent itself and incur all costs and expenses of suit.
Contractor also waives any and all claims and recourse against the City, including the right of
contribution for loss or damage to person or property arising from, growing out of, or in any way
connected with or incident to the performance of this Agreement except “responsibility for [City’s]
own fraud, for willful injury to the person or property of another, or for violation of law, whether
willful or negligent” as per 28-2-702, MCA.
These obligations shall survive termination of this Agreement and the services performed
hereunder.
In addition to and independent from the above, Contractor shall at Contractor’s expense secure
insurance coverage through an insurance company or companies duly licensed and authorized to
conduct insurance business in Montana which insures the liabilities and obligations specifically
assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion
for liabilities specifically assumed by the Contractor in this Section.
The insurance shall cover and apply to all claims, demands, suits, damages, losses, and
expenses that may be asserted or claimed against, recovered from, or suffered by the City without
limit and without regard to the cause therefore and which is acceptable to the City. Contractor shall
furnish to the City an accompanying certificate of insurance and accompanying endorsements in
amounts not less than as follows:
Workers’ Compensation – statutory;
Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;
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Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate;
Automobile Liability - $1,000,000 property damage/bodily injury per accident; and
Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate.
The above amounts shall be exclusive of defense costs. The City shall be endorsed as an
additional or named insured on a primary non-contributory basis on the Commercial General,
Employer’s Liability, and Automobile Liability policies. The insurance and required endorsements
must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation
or non-renewal. Contractor shall notify City within two (2) business days of Contractor’s receipt of
notice that any required insurance coverage will be terminated or Contractor’s decision to terminate
any required insurance coverage for any reason.
The City must approve all insurance coverage and endorsements prior to the Contractor
commencing work.
8. Termination for Contractor’s Fault:
a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails
to perform any of its obligations under this Agreement, or otherwise breaches any terms or
conditions of this Agreement, the City may, by written notice, terminate this Agreement and
the Contractor’s right to proceed with all or any part of the work (“Termination Notice Due
to Contractor’s Fault”). The City may then take over the work and complete it, either with its
own resources or by re-letting the contract to any other third party.
b. In the event of a termination pursuant to this Section 8, Contractor shall be
entitled to payment only for those services Contractor actually rendered.
c. Any termination provided for by this Section 8 shall be in addition to any other
remedies to which the City may be entitled under the law or at equity.
d. In the event of termination under this Section 8, Contractor shall, under no
circumstances, be entitled to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature arising, or claimed to have arisen, as a result of the termination.
9. Termination for City’s Convenience:
a. Should conditions arise which, in the sole opinion and discretion of the City,
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make it advisable to the City to cease performance under this Agreement, the City may
terminate this Agreement by written notice to Contractor (“Notice of Termination for City’s
Convenience”). The termination shall be effective in the manner specified in the Notice of
Termination for City’s Convenience and shall be without prejudice to any claims that the City
may otherwise have against Contractor.
b. Upon receipt of the Notice of Termination for City’s Convenience, unless
otherwise directed in the Notice, the Contractor shall immediately cease performance under
this Agreement and make every reasonable effort to refrain from continuing work, incurring
additional expenses or costs under this Agreement and shall immediately cancel all existing
orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as
may be necessary to preserve, protect, and maintain work already completed or immediately
in progress.
c. In the event of a termination pursuant to this Section 9, Contractor is entitled
to payment only for those services Contractor actually rendered on or before the receipt of the
Notice of Termination for City’s Convenience.
d. The compensation described in Section 9(c) is the sole compensation due to
Contractor for its performance of this Agreement. Contractor shall, under no circumstances,
be entitled to claim or recover consequential, special, punitive, lost business opportunity, lost
productivity, field office overhead, general conditions costs, or lost profits damages of any
nature arising, or claimed to have arisen, as a result of the termination.
10. Limitation on Contractor’s Damages; Time for Asserting Claim:
a. In the event of a claim for damages by Contractor under this Agreement,
Contractor’s damages shall be limited to contract damages and Contractor hereby expressly
waives any right to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature or kind.
b. In the event Contractor wants to assert a claim for damages of any kind or
nature, Contractor shall provide City with written notice of its claim, the facts and
circumstances surrounding and giving rise to the claim, and the total amount of damages
sought by the claim, within thirty (30) days of the facts and circumstances giving rise to the
claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights
to assert such claim.
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11. Representatives and Notices:
a. City’s Representative: The City’s Representative for the purpose of this
Agreement shall be Taylor Lonsdale, PE or such other individual as City shall designate in
writing. Whenever approval or authorization from or communication or submission to City
is required by this Agreement, such communication or submission shall be directed to the
City’s Representative and approvals or authorizations shall be issued only by such
Representative; provided, however, that in exigent circumstances when City’s Representative
is not available, Contractor may direct its communication or submission to other designated
City personnel or agents as designated by the City in writing and may receive approvals or
authorization from such persons.
b. Contractor’s Representative: The Contractor’s Representative for the
purpose of this Agreement shall be Joey Staszcuk, PE or such other individual as Contractor
shall designate in writing. Whenever direction to or communication with Contractor is
required by this Agreement, such direction or communication shall be directed to Contractor’s
Representative; provided, however, that in exigent circumstances when Contractor’s
Representative is not available, City may direct its direction or communication to other
designated Contractor personnel or agents.
c. Notices: All notices required by this Agreement shall be in writing and
shall be provided to the Representatives named in this Section. Notices shall be deemed given
when delivered, if delivered by courier to Party’s address shown above during normal business
hours of the recipient; or when sent, if sent by email or fax (with a successful transmission
report) to the email address or fax number provided by the Party’s Representative; or on the
fifth business day following mailing, if mailed by ordinary mail to the address shown above,
postage prepaid.
12. Permits: Contractor shall provide all notices, comply with all applicable laws,
ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman
business license, and inspections from applicable governmental authorities, and pay all fees and
charges in connection therewith.
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13. Laws and Regulations: Contractor shall comply fully with all applicable state and
federal laws, regulations, and municipal ordinances including, but not limited to, all workers’
compensation laws, all environmental laws including, but not limited to, the generation and disposal
of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and
provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and
State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination,
affirmative action, and utilization of minority and small business statutes and regulations.
14. Web Accessibility and the ADA: Title II of the ADA prohibits discrimination against
people with disabilities in all services, programs, and activities offered or made available by the City.
This includes ensuring that the City’s communications with people with disabilities are as effective
as its communications with others.
If Contractor’s Scope of Services includes the production of digital content, documents, or web
applications intended to be branded for use by the City, Contractor must use the City style guide
when creating a design. As per recommendations found in Section 508 of the Rehabilitation Act,
all digital content, documents, or web applications must also adhere to level A and AA Success
Criteria and Conformance Requirements as defined by the current Web Content Accessibility
Guidelines (WCAG).
The City will not accept digital content that does not comply with WCAG A and AA guidelines. If
the City refuses digital content because it is non-compliant with the City style guide, Section 508 of
the Rehabilitation Act, and/or WCAG, Contractor will be required to make the digital content
compliant and redelivered at no additional cost to the City.
15. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by
Contractor of persons performing this Agreement shall be on the basis of merit and qualifications.
The Contractor will have a policy to provide equal employment opportunity in accordance with all
applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will
not refuse employment to a person, bar a person from employment, or discriminate against a person
in compensation or in a term, condition, or privilege of employment because of race, color, religion,
creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation,
gender identity, physical or mental disability, except when the reasonable demands of the position
require an age, physical or mental disability, marital status or sex distinction. The Contractor shall
be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United
States Code, and all regulations promulgated thereunder.
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Contractor represents it is, and for the term of this Agreement will be, in compliance with the
requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act).
Contractor must report to the City any violations of the Montana Equal Pay Act that Contractor has
been found guilty of within 60 days of such finding for violations occurring during the term of this
Agreement.
Contractor shall require these nondiscrimination terms of its subcontractors providing services
under this Agreement.
16. Intoxicants; DOT Drug and Alcohol Regulations/Safety and Training: Contractor
shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs,
by any employee or agent engaged in services to the City under this Agreement while on City property
or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of
and shall comply with its responsibilities and obligations under the U.S. Department of Transportation
(DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City
shall have the right to request proof of such compliance and Contractor shall be obligated to furnish
such proof.
The Contractor shall be responsible for instructing and training the Contractor's employees
and agents in proper and specified work methods and procedures. The Contractor shall provide
continuous inspection and supervision of the work performed. The Contractor is responsible for
instructing its employees and agents in safe work practices.
17. Modification and Assignability: This Agreement may not be enlarged, modified or
altered except by written agreement signed by both parties hereto. The Contractor may not
subcontract or assign Contractor’s rights, including the right to compensation or duties arising
hereunder, without the prior written consent of the City. Any subcontractor or assignee will be bound
by all of the terms and conditions of this Agreement.
18. Reports/Accountability/Public Information: Contractor agrees to develop and/or
provide documentation as requested by the City demonstrating Contractor’s compliance with the
requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons
authorized by the City to inspect and copy its books and records for the purpose of verifying that the
reimbursement of monies distributed to Contractor pursuant to this Agreement was used in
compliance with this Agreement and all applicable provisions of federal, state, and local law. The
Contractor shall not issue any statements, releases or information for public dissemination without
prior approval of the City.
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19. Non-Waiver: A waiver by either party of any default or breach by the other party of
any terms or conditions of this Agreement does not limit the other party’s right to enforce such term
or conditions or to pursue any available legal or equitable rights in the event of any subsequent default
or breach.
20. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to
retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice
required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable
attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City
Attorney’s Office staff.
21. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all
appropriate employee withholdings.
22. Dispute Resolution:
a. Any claim, controversy, or dispute between the parties, their agents,
employees, or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements. Upon mutual
agreement of the parties, the parties may invite an independent, disinterested mediator to assist
in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a court of
competent jurisdiction in compliance with the Applicable Law provisions of this Agreement.
23. Survival: Contractor’s indemnification shall survive the termination or expiration of
this Agreement for the maximum period allowed under applicable law.
24. Headings: The headings used in this Agreement are for convenience only and are not
be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to
which they refer.
25. Severability: If any portion of this Agreement is held to be void or unenforceable, the
balance thereof shall continue in effect.
26. Applicable Law: The parties agree that this Agreement is governed in all respects by
the laws of the State of Montana.
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27. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs,
legal representatives, successors, and assigns of the parties.
28. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the
parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or
enforced by a third party.
29. Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
30. Integration: This Agreement and all Exhibits attached hereto constitute the entire
agreement of the parties. Covenants or representations not contained herein or made a part thereof
by reference, are not binding upon the parties. There are no understandings between the parties other
than as set forth in this Agreement. All communications, either verbal or written, made prior to the
date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this
Agreement by reference.
31. Consent to Electronic Signatures: The Parties have consented to execute this
Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act,
Title 30, Chapter 18, Part 1, MCA.
32. Extensions: This Agreement may, upon mutual agreement, be extended annually
for a period of two (2) additional years for a total of five (5) years by written agreement of the Parties.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first above written or as recorded in an electronic signature.
CITY OF BOZEMAN, MONTANA Sanbell
CONTRACTOR
By________________________________ By__________________________________
Chuck Winn, City Manager
Print Name: Danielle Scharf, PE, PTOE
Print Title: Managing Principal
APPROVED AS TO FORM:
By_______________________________
Greg Sullivan, Bozeman City Attorney
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Attachment A
City of Bozeman Transportation Engineering Term Contract
Task Order Number 2026TETC-00#
PROJECT:
Issued under the authority of 2026 Transportation Engineering Term Contract
Professional Services Agreement with Sanbell for Architectural and Engineering
Services.
This Task Order is dated ___ between the City of Bozeman
Transportation and Engineering Department and Sanbell (Contractor).
The following representatives have been designated for the work performed under this
Task Order:
City: Taylor Lonsdale, Transportation Engineer
Contractor: Joey Staszcuk, Associate Principal
SCOPE OF WORK: The scope for this task order is detailed in the attached
Transportation Engineering Term Contract Scope of Work – Task Order Number
2023TETC-00#.
COMPENSATION: Sanbell will bill for its services on a cost-plus-fixed-fee basis with a
project total of $_________________. The provisions of the Professional Services
Agreement shall govern the Work.
IN WITNESS WHEREOF, the parties authorized to commit resources of the parties
have executed this Task Order:
City of Bozeman Contractor Name
Chuck Winn, City Manager Danielle Scharf, Managing Principal
46
Memorandum
REPORT TO:City Commission
FROM:Addi Jadin, Park Planning and Development Manager
Mitch Overton, Director of Parks and Recreation
SUBJECT:Authorize City Manager to Sign Professional Architectural Services
Agreement with Open Studio Collaborative, LLC d/b/a Physical Space for
Cattail Corridor Park Node Design
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Agreement - Vendor/Contract
RECOMMENDATION:Authorize City Manager to Sign Professional Architectural Services
Agreement with Open Studio Collaborative, LLC d/b/a Physical Space for
Cattail Corridor Park Node Design
STRATEGIC PLAN:3.4 Active Recreation: Facilitate and promote recreational opportunities and
active health programs and facilities.
BACKGROUND:As the park master plan for the Cattail Creek Corridor is nearing completion, staff has
started to procure designs for certain segments of the trail and different park areas in
order to inform the implementation plan with more accurate estimates and
refinement of ideas. In addition to the active transportation facility being planned,
the master plan also called for programming of the parks for active and passive
recreation including themes from the Parks, Recreation and Active Transportation
Plan such as equity and inclusion. The proposal developed with Physical Space is to
design park nodes with the safety and comfort of teenage girls in mind, but designed
for all. Similar efforts have resulted in creative seating areas within parks; this project
will result in something tailored specifically for Bozeman and could include creative
seating, bridges, kinetic or interactive sculpture and/or shade structures.
UNRESOLVED ISSUES:NA
ALTERNATIVES:Per Commission
FISCAL EFFECTS:The budget for the Cattail Creek Corridor Park Master Plan includes $500,000
from the Parkland Trust Fund in FY26, $300,000 in both FY27 and FY28.
Attachments:
2026-01-29_Physical-Space-PASA_Cattail.docx
Exhibit-A_Physical-Space_Cattail-Proposal.pdf
Report compiled on: February 2, 2026
47
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Professional Services Agreement for Architectural Services
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PROFESSIONAL ARCHITECTURAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this _____ day of ____________, 20___
(“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-governing
municipal corporation organized and existing under its Charter and the laws of the State of Montana,
121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT
59771, hereinafter referred to as “City,” and, Open Studio Collective Architecture & Design, LLC
d/b/a Physical Space, with a mailing address of 615 E. Peach Street, Suite C, Bozeman, MT 59715,
hereinafter referred to as “Consultant” or “Architect.” The City and Architect may be referred to
individually as “Party” and collectively as “Parties.”
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged, the parties hereto agree as follows:
1. Purpose: City agrees to hire Consultant as an independent contractor to perform for
City services described in the Scope of Services attached hereto as Exhibit A and by this reference
made a part hereof.
2. Effective Date: This Agreement is effective upon the Effective Date and will expire
on the _____ day of ____________, 20___, unless earlier terminated in accordance with this
Agreement.
3. Scope of Work: Consultant will perform the work and provide the services in
accordance with the requirements of the Scope of Services attached hereto. For conflicts between
this Agreement and the Scope of Services, unless specifically provided otherwise, the Agreement
governs.
4. Payment: City agrees to pay Architect as described in the attached Exhibit A. Any
alteration or deviation from the described work that involves additional costs above the Agreement
amount will be performed by Architect after written request by the City and will become an additional
charge over and above the contract amount.
5. Consultant’s Representations:
To induce City to enter into this Agreement, Architect makes the following representations:
a. Architect has familiarized itself with the nature and extent of this Agreement, the
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Scope of Services, and with all local conditions and federal, state and local laws, growth policies,
adopted plans of the City, ordinances, rules, and regulations that in any manner may affect cost,
progress or performance of the Scope of Services.
b. Architect represents and warrants to City that it has the experience and ability to
perform the services required by this Agreement; that it will perform the services in a professional,
competent and timely manner and with diligence and skill; that it has the power to enter into and
perform this Agreement and grant the rights granted in it; and that its performance of this Agreement
shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark,
privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal,
state and municipal laws. The City will not determine or exercise control as to general procedures or
formats necessary to have these services meet this warranty.
6. Independent Contractor Status: The parties agree that Architect is an independent
contractor for purposes of this Agreement and is not to be considered an employee of the City for any
purpose. Architect is not subject to the terms and provisions of the City’s personnel policies handbook
and may not be considered a City employee for workers’ compensation or any other purpose.
Architect is not authorized to represent the City or otherwise bind the City in any dealings between
Architect and any third parties.
Architect shall comply with the applicable requirements of the Workers’ Compensation Act,
Title 39, Chapter 71, Montana Code Annotated (MCA), and the Occupational Disease Act of
Montana, Title 39, Chapter 71, MCA. Architect shall maintain workers’ compensation coverage for
all members and employees of Architect’s business, except for those members who are exempted by
law.
Architect shall furnish the City with copies showing one of the following: (1) a binder for
workers’ compensation coverage by an insurer licensed and authorized to provide workers’
compensation insurance in the State of Montana; or (2) proof of exemption from workers’
compensation granted by law for independent contractors.
7. Indemnity/Waiver of Claims/Insurance: For other than professional services
rendered, to the fullest extent permitted by law, Architect agrees to defend, indemnify, and hold the
City, its agents, representatives, employees, and officers (collectively referred to for purposes of this
Section as the City) harmless against claims, demands, suits, damages, losses, and expenses connected
therewith that may be asserted or claimed against, recovered from or suffered by the City by reason
of any injury or loss, including but not limited to, personal injury, including bodily injury or death,
property damage, occasioned by, growing out of, or in any way arising or resulting from any
intentional or negligent act on the part of Architect or Architect’s agents or employees.
For the professional services rendered, to the fullest extent permitted by law, Architect agrees
to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and
expenses, including reasonable defense attorney fees, to the extent caused by the negligence or
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intentional misconduct of the Architect or Architect’s agents or employees.
Architect also waives any and all claims and recourse against the City, including the right of
contribution for loss or damage to person or property arising from, growing out of, or in any way
connected with or incident to the performance of this Agreement except “responsibility for [City’s]
own fraud, for willful injury to the person or property of another, or for violation of law, whether
willful or negligent” as per 28-2-702, MCA.
Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations
of indemnity that would otherwise exist. The indemnification obligations of this Section must not be
construed to negate, abridge, or reduce any common-law or statutory rights of the City as
indemnitee(s) which would otherwise exist as to such indemnitee(s).
Contractor’s indemnity under this Section shall be without regard to and without any right to
contribution from any insurance maintained by City. Should City be required to bring an action
against the Architect to assert its right to defense or indemnification under this Agreement or under
the Architect’s applicable insurance policies required below the City shall be entitled to recover
reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only
if a court of competent jurisdiction determines the Architect was obligated to defend the claim(s) or
was obligated to indemnify the City for a claim(s) or any portion(s) thereof.
The obligations of this Section shall survive termination of this Agreement and the services
performed hereunder.
In addition to and independent from the above, Architect shall secure insurance coverage
acceptable to the City and furnish to the City an accompanying certificate of insurance issued by a
company authorized to do business in the State of Montana in amounts not less than as follows:
Workers’ Compensation - statutory
Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate
Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate
Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual
aggregate
Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate
The City of Bozeman shall be endorsed as an additional or named insured on a primary non-
contributory basis on both the Commercial General and Automobile Liability policies. The insurance
and required endorsements must be in a form suitable to City and shall include no less than a thirty
(30) day notice of cancellation or non-renewal. The City must approve all insurance coverage and
endorsements prior to the Architect commencing work.
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8. Professional Service: Architect agrees that all services and work performed
hereunder will be accomplished in a professional manner.
9. Compliance with Laws: Architect agrees to comply with all federal, state and local
laws, ordinances, rules and regulations, including the safety rules, codes, and provisions of the
Montana Safety Act in Title 50, Chapter 71, MCA. Architect agrees to purchase a City business
license.
10. Nondiscrimination and Equal Pay: The Architect agrees that all hiring by Architect
of persons performing this Agreement shall be on the basis of merit and qualifications. The Architect
will have a policy to provide equal employment opportunity in accordance with all applicable state
and federal anti-discrimination laws, regulations, and contracts. The Architect will not refuse
employment to a person, bar a person from employment, or discriminate against a person in
compensation or in a term, condition, or privilege of employment because of race, color, religion,
creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation,
gender identity, physical or mental disability, except when the reasonable demands of the position
require an age, physical or mental disability, marital status or sex distinction. The Architect shall be
subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United
States Code, and all regulations promulgated thereunder.
Architect represents it is, and for the term of this Agreement will be, in compliance with the
requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal Pay Act).
Architect must report to the City any violations of the Montana Equal Pay Act that Architect has been
found guilty of within 60 days of such finding for violations occurring during the term of this
Agreement.
Architect shall require these nondiscrimination terms of its subcontractors providing services
under this Agreement.
11. Default and Termination: If either Party fails to comply with any condition of this
Agreement at the time or in the manner provided for, the other Party, at its option, may terminate this
Agreement and be released from all obligations if the default is not cured within ten (10) days after
written notice is provided to the defaulting Party. Said notice shall set forth the items to be cured.
Additionally, the non-defaulting Party may bring suit for damages, specific performance, and any
other remedy provided by law. These remedies are cumulative and not exclusive. Use of one remedy
does not preclude use of the others. In addition, either Party may terminate this Agreement for any
reason after 30 days written notice is provided to the other Party. Should either Party terminate
according to this Section 11, the Parties agree that Section 13 remains in effect. Notices shall be
provided in writing and hand-delivered or mailed to the Parties at the addresses set forth in the first
paragraph of this Agreement.
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12. Modification and Assignability: This document contains the entire agreement
between the parties and no statements, promises or inducements made by either party or agents of
either party, which are not contained in this written Agreement, may be considered valid or binding.
This Agreement may not be enlarged, modified or altered except by written agreement signed by both
parties hereto. The Architect may not subcontract or assign Architect’s rights, including the right to
compensation or duties arising hereunder, without the prior written consent of the City. Any
subcontractor or assignee will be bound by all of the terms and conditions of this Agreement.
13. Ownership and Publication of Materials: All reports, information, data, and other
materials prepared by the Architect pursuant to this Agreement, except those separately identified in
the Scope of Services or in other written agreements between the parties, are jointly owned by the
Architect and the City. The City has authority to release, publish or otherwise use, in whole or part,
reports, information, data and other materials prepared by Architect pursuant to this Agreement,
except those separately identified in the Scope of Services or in other written agreements between the
parties. Any re-use without written verification or adaptation by the Architect for the specific purpose
intended will be at the City’s sole risk and without liability or legal exposure to the Architect. No
material produced in whole or in part under this Agreement may be copyrighted or patented in the
United States or in any other country without the prior written approval of the City.
14. Representatives and Notices:
a. City’s Representative: The City’s Representative for the purpose of this
Agreement shall be Addi Jadin, Park Planning and Development Manager, or such other
individual as City shall designate in writing. Whenever approval or authorization from or
communication or submission to City is required by this Agreement, such communication or
submission shall be directed to the City’s Representative and approvals or authorizations shall
be issued only by such Representative; provided, however, that in exigent circumstances when
City’s Representative is not available, Architect may direct its communication or submission
to other designated City personnel or agents as designated by the City in writing and may
receive approvals or authorization from such persons.
b. Architect’s Representative: The Architect’s Representative for the purpose
of this Agreement shall be Allison Bryan or such other individual as Architect shall designate
in writing. Whenever direction to or communication with Architect is required by this
Agreement, such direction or communication shall be directed to Architect’s Representative;
provided, however, that in exigent circumstances when Architect’s Representative is not
available, City may direct its direction or communication to other designated Architect
personnel or agents.
c. Notices: All notices required by this Agreement shall be in writing and shall
be provided to the Representatives named in this Section. Notices shall be deemed given
when delivered, if delivered by courier to Party’s address shown above during normal business
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Professional Services Agreement for Architectural Services
Page 6 of 8
hours of the recipient; or when sent, if sent by email or fax (with a successful transmission
report) to the email address or fax number provided by the Party’s Representative; or on the
fifth business day following mailing, if mailed by ordinary mail to the address shown above,
postage prepaid.
15. Applicability: This Agreement and any extensions hereof shall be governed and
construed in accordance with the laws of the State of Montana.
16. Reports/Accountability/Public Information: Architect agrees to develop and/or
provide documentation as requested by the City demonstrating Architect’s compliance with the
requirements of this Agreement. Architect shall allow the City, its auditors, and other persons
authorized by the City to inspect and copy its books and records for the purpose of verifying that the
reimbursement of monies distributed to Architect pursuant to this Agreement was used in compliance
with this Agreement and all applicable provisions of federal, state, and local law. The Architect shall
not issue any statements, releases or information for public dissemination without prior approval of
the City.
17. Non-Waiver: A waiver by either Party of any default or breach by the other party of
any terms or conditions of this Agreement does not limit the other Party’s right to enforce such term
or conditions or to pursue any available legal or equitable rights in the event of any subsequent default
or breach.
18. Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all
appropriate employee withholdings.
21. Dispute Resolution:
a. Any claim, controversy, or dispute between the Parties, their agents,
employees, or representatives must be resolved first by negotiation between senior-level
personnel from each Party duly authorized to negotiate settlement agreements. Upon mutual
agreement of the Parties, the Parties may invite an independent, disinterested mediator to
assist in the negotiated settlement discussions. The Parties must attempt to resolve by
negotiation within 90 days after the claim, controversy, or dispute has arisen.
b. If the Parties are unable to resolve the dispute pursuant to subsection (a), then
such dispute may only be resolved in a court of competent jurisdiction in compliance with the
Applicable Law provisions of this Agreement. In such a case, all court actions must be
commenced within 1 year after the settlement procedure in subsection (a) has been exhausted.
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Professional Services Agreement for Architectural Services
Page 7 of 8
22. Survival: Contractor’s indemnification shall survive the termination or expiration of
this Agreement for the maximum period allowed under applicable law.
23. Headings: The headings used in this Agreement are for convenience only and are not
be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to
which they refer.
24. Severability: If any portion of this Agreement is held to be void or unenforceable, the
balance thereof shall continue in effect.
25. Applicable Law: The parties agree that this Agreement is governed in all respects by
the laws of the State of Montana.
26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs,
legal representatives, successors, and assigns of the parties.
27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the
parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or
enforced by a third party.
28. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to
retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice
required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable
attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City
Attorney’s Office staff.
29. Consent to Electronic Signatures: The Parties have consented to execute this
Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act,
Title 30, Chapter 18, Part 1, MCA.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
55
Professional Services Agreement for Architectural Services
Page 8 of 8
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year
first above written or as recorded in an electronic signature.
CITY OF BOZEMAN, MONTANA ___PHYSICAL SPACE_________________
ARCHITECT (Type Name Above)
By________________________________ By__________________________________
Chuck Winn, City Manager
Print Name: Allison Bryan
Print Title: Founder & Principal
APPROVED AS TO FORM:
By_______________________________
Greg Sullivan, Bozeman City Attorney
56
January 30th, 2026
Addi Jadin
Parks Planner and Development Manager, City of Bozeman
121 N Rouse Ave.
Bozeman, MT
59715
Dear Addi Jadin,
Thank you for the opportunity to provide design services for creating a node for girls within the Cattail
Creek Park. This proposal, if accepted by your signature below, outlines the agreement between
Physical Space ("PS") and you (the "Client") including the project scope, process, schedule, deliverables
and fees for your project (the "Agreement").
PROJECT SCOPE
Ideation & creation of a park node concept for girls. This is inclusive of schematic design research as
noted below:
● Focus research group of target audience hosted at the Physical Space Office. ●
Site location and scouting.
PROJECT TEAM
Allison Bryan of Physical Space will be principal-in-charge of the Project with Alex Webber as Associate
Principal and representative on the ground. PS will have a team of designers developing the Project,
however, the team members listed here will be the point of contact for the Client.
KEY CONSULTANTS
In addition to the team members mentioned above, additional key consultants may be needed including
Site Surveyor, Geotechnical Engineer, Landscape Architect, Civil Engineer, Structural Engineer, MEP
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Engineer, Lighting Designer, AV/Low Voltage Designer, and Fire Suppression. Such consultants are
not included within PS's services and will incur additional costs as outlined below.
SERVICES
PROJECT PHASES + DELIVERABLES:
1. Schematic Design
2. Design Development
3. Permitting & Construction Documentation
4. Construction Administration + Consultant Correspondence
SCHEMATIC DESIGN
During the first phase—schematic design—an architect consults with the Client to determine project
goals and requirements. Often this determines the program for the project. The program, or architectural
program, is the term used to define the required functions of the project. It should include estimated
square footage of each usage type and any other elements that achieve the project goals. Since we have
a baseline from this through the franchise guidelines, we will have a solid starting off point for program
plan layouts.
During schematic design, an architect commonly develops study drawings, documents, or other media
that illustrate the concepts of the design and include spatial relationships, scale, and form for the owner
to review. Schematic design also is the research phase of the project, when zoning requirements or
jurisdictional restrictions are discovered and addressed. This phase produces a final schematic design,
to which the owner agrees after consultation and discussions with the architect. Costs are estimated
based on overall project volume. The design then moves forward to the design development phase.
PS recommends having general contractors (GCs) bid at this phase for initial pricing - to select a GC for
the Project overall who can provide pricing at the remaining drawing milestones.
DELIVERABLES:
● Focus research group of target audience hosted at the Physical Space Office. ●
Site Location and Scouting
● Schematic Concept Sketches based on research group feedback.
● PS may recommend a Landscape Architect on boarding or consultation in this phase. ●
Clients can anticipate (2-3) 60-90 minute meetings in this phase.
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○ Presentation to include: precedent imagery and material palettes as necessary to build
understanding of concept and support tone of Project, as well as schematic layouts and
sketches of selected spaces
● Client to provide feedback and select ( 1 ) concept they wish to further develop ●
Final deliverable: ( 1 ) set scheme to be further developed in Design Development
DESIGN DEVELOPMENT
Further development of ( 1 ) selected scheme from Phase I - Schematic Design. Development to include
and be applied to the Project as a whole.
DELIVERABLES:
● Clients can anticipate (1-2) 60-90 minute meetings in this phase.
○ Presentation to include Material, fixture selections & custom designs, layouts, site plan
coordination, elevations and initial details.
○ In this phase the team will coordinate with consultants as needed in preparation for
permit review and design development.
○ Final Deliverable: 100% Developed Scheme submitted for Permit to the city and to take
into Construction Documents
CONSTRUCTION DOCUMENTS
All final details from the 100% developed scheme to be drawn and documented for construction details.
DELIVERABLES:
● Clients can anticipate (1-2) 60-90 minute meetings in this phase.
○ Presentation will be primarily to cover any outstanding design decisions as the team
develops a 100% CD set.
● Coordination/integration of consultant drawings
● Final deliverable: Final drawing set with schedules for construction/fabrication.
CONSTRUCTION ADMINISTRATION + CONSULTANT CORRESPONDENCE
Assistance through the construction process in coordination with the GC including:
● Check shop drawings and submittals, as needed
● Answer requests for information from Client, GC, fabricators, and vendors, as needed ●
Manage and oversee general correspondence with necessary consultants
● Site visits - as needed (travel is an excluded expense)
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SCHEDULE
PS estimates the total design process to be approximately 18 weeks for this Project. Our estimated
design schedule is below. Please note that this schedule is an estimate. PS has prepared a team for
the following schedule, but circumstances outside of PS's control may necessitate adjustments.
Additionally, this does not include the construction and build schedule for which the GC is responsible.
Design Kick Off in November with focus group
Schematic Design 6 weeks
Design Development/Permit Set 6 weeks * submit for permit
Construction Documents 6 weeks
Client Responsibilities Regarding Schedule and Process: Client agrees to respond to requests from PS,
including providing feedback on PS's presentations, within three (3) days in order for the Project to
remain on schedule as planned. Delays in Client responses or requests from Client for significant
changes to the Project will extend the Project timeline and may subject Client to additional fees.
Note: weeks are based on standard PS working days Observed Holidays are not inclusive of the week
count, an estimated timeline will be provided upon approval.
ASSUMPTION + PROPOSED FEES
The Total Estimated Fee for the services outlined in this Agreement is $30,000. Fee is estimated
upon discussed scope. Fee proposals will be re-evaluated if scope of work changes or increases
significantly.
Client understands and agrees that the above fee is based on the design plans and schedule outlined in
this Agreement and agreed to by PS. Any desired changes to the design schedule that substantially alter
the structure or add significantly to PS's scope of work will result in additional management time and
shall incur additional fees and costs related to the change requested. All changes must be requested by
Client in writing and will not be finalized as part of the Project unless and until approved by PS in writing.
REIMBURSABLE EXPENSES
In addition to the Total Estimated Fee above, Client shall reimburse PS for any of the following expenses
plus a 10% additional fee:
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● Additional consultants needed for the Project;
● Supplies;
● Samples;
● Printing; and
● Travel expenses.
HOURLY BILLABLE RATES:
Principal Design $250
Associate Principal Design $195
Project Architect $175.
Project Management $150
Lead Design $150
Junior Designer $115
EXCLUSIONS
The following are NOT included in the Total Estimated Fee above:
● City Permit and Submittal fees
● Additional Consultants such as: Structural, MEP, Fire Protection, Alarm Systems + Low Voltage
System, Pool Consultant Fees, Lighting Consultant, Civil Engineer, Landscape Architect, etc. ●
Furniture Procurement (order and install, we can provide this service if desired) ● Construction +
Trade Fees
ADDITIONAL TERMS FOR PAYMENT
● PS to be compensated in the amount of 'Total Estimated Fees' for work performed pursuant to
the Description of Services in this proposal.
● Work will cease if payment is not received by or on the due date.
● A late fee of 10% of the amount owing will be charged on past due payments. ● The Total
Estimated Fee will be divided into monthly payments. The payment schedule will be provided as
an addendum upon contract approval.
● Payment may be made via ACH, check or wire transfer. If a wire transfer is desired, PS will
provide Client the account info in a timely manner.
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ADDITIONAL TERMS + CONDITIONS
ARCHITECT’S INSTRUMENTS OF SERVICE
Drawings, specifications and other documents, including those in electronic form, prepared by us or our
consultants are Instruments of Service, as defined in the AIA Agreement, for use solely with respect to
this Project. The Parties have addressed ownership more specifically in the Architectural Services
Agreement. PS, as the Architect and our consultants, shall be deemed the authors and owners of our
respective Instruments of Service and shall retain all common law, statutory and other reserved rights,
including copyrights. Instruments of Service may not be used by the Client or any third party for any
purpose other than the Project. Notwithstanding the foregoing, upon full payment for all services
performed to date, and receipt of a signed PS Electronic Release and Liability Form, the Client shall have
a non-exclusive, non-transferable license to use the Instruments of Service solely for completion,
renovation, or maintenance of the Project at the Property, even if the Architect is no longer engaged. The
Architect shall not be liable for modifications or reuse of such documents without Architect’s
involvement.
ADDITIONAL SERVICES
PS will provide additional services to Client for an additional fee (time + materials basis) upon written
authorization from Client. Such additional services include, but are not limited to the following:
● Further iterations or changes beyond the scope outlined above
● Renderings, mock-ups, design requests beyond the described services
● Branding + identity services
● Signage design & signage permitting services
PHOTOGRAPHY OF PROJECT
Upon completion of the Project, Client allows for photo documentation of any design work implemented
by PS, and agrees that photo documentation may be used for any and all promotional purposes by PS
including but not limited to photos on website, social media, and in print.
JURISDICTION AND VENUE
This Agreement is governed by the laws of the State of Montana without giving effect to any
conflict-of-law principle that would result in the laws of any other jurisdiction governing this Agreement.
Any action or proceeding arising out of this Agreement will be resolved in courts located in Gallatin
County, Montana. Each party consents and submits to the jurisdiction of any local, state, or federal court
located in Gallatin County, Montana.
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PHYSICAL SPACE Allison Bryan, Principal Architect Date
CLIENT Addi Jadin, Parks Planner and Development Manager, City of Bozeman Date
ADDENDUM
FEE SCHEDULE
● The Total Estimated Fee is broken down by percentages per phase as outlined below. ● PS
requires a 20% non-refundable deposit of total fee to commence work. This deposit will be
dispersed evenly as a credit throughout the project.
● Total Estimated Fee = $30,000; 20% Deposit = $6,000
PHASE TIMELINE % OF TOTAL FEE FEE BREAKDOWN
Schematic Design 6 weeks 30% $9,000
Design Development 6 weeks 30% $9,000
Construction Documents 6 weeks 20% $6.000
Construction Administration Per GC Schedule 20% $6,000
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Memorandum
REPORT TO:City Commission
FROM:Karl Johnson, Water Resources Engineer
Shawn Kohtz, Director of Utilities
SUBJECT:Authorize the City Manager to Sign an Amendment 1 to the Professional
Services Agreement with HDR Engineering, Inc, for the Lyman Transmission
Main Condition Assessment Predesign Project
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Agreement - Vendor/Contract
RECOMMENDATION:Authorize the City Manager to Sign Amendment 1 to the Professional
Services Agreement with HDR Engineering, Inc, for the Lyman Transmission
Main Condition Assessment Predesign Project.
STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and
maintenance for existing and new infrastructure.
BACKGROUND:On October 21st, 2025, the City Commission authorized the original
professional services agreement (PSA) with HDR Engineering for the Lyman
Transmission Main Condition Assessment Predesign Project.
Amendment 1 to the original PSA is provided as an attachment to this
memorandum. The amendment provides for locating of the existing water
main consisting of Asbestos Cement Pipe that cannot be located by
traditional buried pipeline locating techniques. Locating the pipeline is a
crucial step in excavating the utility. Knowing the location of the utility prior
to digging reduces the risk of damaging the utility during excavation. It also
minimizes disruption of the existing surface conditions above and near the
utility as well as reduces the amount of time and resources spent excavating
the utility.
The amendment also provides for survey of the existing easement associated
with the water main. The water main is partially located on private property
within an easement held by the City. The existing easement has no markings
on the ground surface; therefore, it is necessary to survey and flag its
boundaries to ensure the work takes place within these boundaries.
The location of the water main and the easement associated with it has been
provided to our GIS Department and is stored within our online data base so
this effort will not have to be repeated in the future.
64
UNRESOLVED ISSUES:None
ALTERNATIVES:As suggested by the Commission
FISCAL EFFECTS:The negotiated costs for Amendment 1 total is $11,632. This is an increase to
the original PSA from $448,905 to $460,537. These costs are funded by
Commission approved budget appropriations for capital improvement
project W87. CIP Project W87 has a total available budget of $1,110,000.
Adequate funding exists to cover negotiated costs for Amendment 1.
Attachments:
Amendment 1 with HDR for Lyman Transmission Condition
Assessment.doc
Attachment 1 - Exhibit A.pdf
Report compiled on: January 23, 2026
65
1 of 2
Amendment 1 to Professional Services Agreement
THIS AGREEMENT is made as of this ________ day of ____________________, 2026, between
THE CITY OF BOZEMAN, a Municipal Corporation, Bozeman, Montana, herein referred to as
OWNER and HDR Engineering Inc, an engineering consulting firm of Bozeman, Montana, herein
referred to as ENGINEER.
WHEREAS, the parties have entered into a Professional Services Agreement dated October 21st,
2025, herein referred to as Original Agreement for professional engineering services; and
WHEREAS, the parties desire to further amend the provisions of this Agreement.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED
HEREIN, the parties agree as follows:
The Agreement and the terms and conditions therein shall remain unchanged other than those
sections and exhibits listed below;
Section IV shall be replaced with the following: Initial compensation for HDR’s services under
this Agreement was on a time and materials, not to exceed, basis in the amount of Four Hundred Forty-
Eight Thousand Nine Hundred Five Dollars ($448,905).
Amended compensation for HDR’s services under this Agreement shall be on the basis of time
and materials, not to exceed, in the amount of Eleven Thousand Six Hundred Thirty-Two Dollars
($11,632).
New amended total under this Agreement is Four Hundred Sixty Thousand Five Hundred Thirty-
Seven Dollars ($460,537).
Exhibit A shall be replaced with the following: Exhibit A shall be amended to include Subsurface
Pipeline Locating & Mapping and Easement Survey Scope of Services as contained in Attachment 1 to
this Amendment No. 1.
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2 of 2
Except as specifically amended herein, the Original Agreement shall remain in full force and effect
and the Parties shall be bound by all terms and conditions therein.
IN WITNESS WHEREOF, the parties hereto do make and execute this Agreement on the day and
year first above written.
CITY OF BOZEMAN
______________________________________
Chuck Winn
City Manager
ATTEST:
________________________________________
Mike Maas
City Clerk
APPROVED AS TO FORM
____________________________________
Greg Sullivan
City Attorney
HDR ENGINEERING, INC.
By:_______________________________________
Its:______________________________________
67
City of Bozeman |
Lyman Transmission Main CA Predesign
Scope of Services Amendment No. 1
hdrinc.com 2150 Analysis Drive, Suite A, Bozeman, MT 59718-3820
(406) 577-5015
1
Exhibit A
City of Bozeman
Lyman Transmission Main
Condition Assessment Predesign
Scope of Services
Amendment No. 1
The following Scope of Services Amendment No. 1 describes the work to be performed in support
of the aboveground assessment, condition assessment, and predesign report for 12,870 LF (2.4
miles) of the Lyman Transmission Main which includes the following sections:
• Section A: 2,773 LF (18-inch Cast Iron) and 870 LF (18-inch Ductile Iron)
• Section B: 1,936 LF (18-inch Cast Iron) and 1,222 LF (18-inch Ductile Iron)
• Section C: 3,787 LF (18-inch Cast Iron)
• Section D: 2,282 LF (18-inch Asbestos Cement)
Task 100 – Project Management
Objective: Project management for the professional services Contract to provide completion of
the project. This includes meetings and coordination, project management, and administrative
activities.
Subtasks
101 Project Coordination and Contracts. Includes project coordination and preparing contract
agreements with the City and subconsultant. Also includes preparing monthly invoices and
progress reports. Progress reports will summarize the work progress to date, the budget
expenditures to date, and identify information requirements or decisions that need to be made by
the City.
Task 100 Deliverables
• Project progress reports, budget report, and invoices.
City Involvement
• Participate in telephone calls and meetings.
• Review project status reports and invoices.
• Review modifications to approach, schedule, and deliverables as appropriate.
68
City of Bozeman |
Lyman Transmission Main CA Predesign
Scope of Services Amendment No. 1
hdrinc.com 2150 Analysis Drive, Suite A, Bozeman, MT 59718-3820
(406) 577-5015
2
Task 200 – Subsurface Pipeline Locating & Mapping
Subtasks
201 Asbestos Cement (AC) Pipeline Locating & Mapping. Perform a subsurface survey using
ground penetrating radar (GPR) to locate approximately 2,300 linear feet (LF) of AC pipeline. The
subsurface survey will include locating, staking, and mapping of the AC pipeline.
Task 200 Deliverables
• Mapping file and coordinates (.shx and .xlsm)
Task 300: Easement Survey
Subtasks
301 Easement Survey. Perform a field survey of approximately 3,200 LF of the City’s Access
Easement and Right-of-Way for the Lyman Creek Water Supply Pipeline in Section 28, T1S, R6E
Gallatin County, Montana. Field survey services will include the following:
• Research Project;
• Mobilize to and from site;
• Setup Control Network ;
• Survey in controlling property corners to layout easement;
• Layout of approximately 3,200 LF of easement from legal easement document.
Task 300 Deliverables
• Survey files (CAD and .pdf)
69
Client:
Project:Lyman Transmission Main Condition Assessment Predesign (Amendment No. 1) Fee Estimate
Project Manager EngineeringProject Accountant 2Total HoursLaborDigSafe Solutions LLCPioneer Technical Services, Inc.Total FeeTask
100
101 12 4 3,592
12 4 3,592.00
12 4 16
3,592$ 3,453$ 4,587$ 11,632$ Total Fee
Total Hours
City of Bozeman
December 22, 2025
Project Management
Project Coordination and Contracts
Task Description
Subtotal Project Management
70
Memorandum
REPORT TO:City Commission
FROM:Bob Murray, Project Engineer
Nick Ross, Director of Transportation and Engineering
SUBJECT:Authorize the City Manager to Sign a Task Order Number 3 for the Right-of-
way Acquisition Project with Clear Route Real Estate, LLC for Properties
Necessary to Construct the Fowler Avenue Connection Project
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Agreement - Vendor/Contract
RECOMMENDATION:Authorize the City Manager to sign Task Order Number 3 for the Right of
Way Acquisition Project with Clear Route Real Estate, LLC for properties
necessary to construct the Fowler Avenue Connection Project.
STRATEGIC PLAN:4.3 Strategic Infrastructure Choices: Prioritize long-term investment and
maintenance for existing and new infrastructure.
BACKGROUND:Attached is a copy of Task Order Number 3 with Clear Route Real Estate, LLC
for the Right of Way Acquisition Project under the Professional Services
Agreement for Streets and Utilities Land Agent Service FY2026-FY2028. This
task order includes acquisition services to obtain land for the construction of
Fowler Avenue.
The middle phase of the Fowler Avenue Connection Project is the section of
roadway between Durston and Babcock. There currently is no right of way
east of the irrigation ditch for the southern half of this phase. This missing
piece is part of one large parcel that is still in the county. The owners of the
property have indicated a willingness to discuss the City’s purchase of the
portion of the property needed for construction of Fowler. This task order is
for the City’s right of way agent to complete an appraisal and all other
necessary documents needed to complete the acquisition should we be able
to come to an agreement with the property owners.
UNRESOLVED ISSUES:None
ALTERNATIVES:As suggested by the City Commission.
FISCAL EFFECTS:These services will be paid on a time and materials basis with a not to
exceed total amount. The not to exceed for this task order is $11,480.00 to
be paid from project SIF114 – Fowler Avenue Connection which has a budget
of $9,551,800 in FY26.
71
Attachments:
Task Order 3 Proposal_2026-1-27.pdf
Report compiled on: January 28, 2026
72
January 27, 2026
Bob Murray, PE
City of Bozeman
20 East Olive St.
Bozeman, MT 59715
Subject: City of Bozeman Buyers Agent for R/W FY 2025 - FY 2026
Project Scope of Services – Task Order #3
Fowler Avenue R/W Acquisition—French Parcel Closing
Dear Bob,
Clear Route Real Estate is pleased to submit this proposal to provide services for the project
referenced above, as outlined in the attached Exhibit A. If the terms of this proposal are
acceptable, please indicate your approval by signing and dating the signature page.
This document outlines the agreement between the City of Bozeman (the “Client”) and Clear
Route Real Estate. The Professional Services Agreement for Realty Professionals, under which
Clear Route Real Estate will serve as the City’s Buyer’s Agent for right-of-way acquisition during
FY 2025 – FY 2026, is hereby incorporated into and made an integral part of this contract.
Project Intent
We understand the City of Bozeman is in the process of completing the acquisition of private
property as part of the Fowler Avenue Project in the near future. As part of the acquisition
process, the City has requested right-of-way (R/W) acquisition services to be provided to
complete the closing of the French parcel. To facilitate the acquisition, one parcel requiring
permanent R/W acquisition is to be acquired in fee simple (northeast corner of Fowler Avenue
and West Babcock Street). Clear Route will provide professional R/W acquisition services to
complete the acquisition and closing process.
Thank you for including our team to assist with this project. Feel free to call me at 406-208-7919
if you have any questions regarding this proposal. If it meets your approval, please mail or email
this signed and dated agreement to our office at P.O. Box 6162, Bozeman, MT 59771 or
tgaddo@clearroute-re.com. Thank you.
Sincerely,
Clear Route Real Estate
Tony Gaddo, P.E., REALTOR®
Senior R/W Consultant, Broker/Owner
Enclosures
73
Fowler Avenue – French Closing
Page | 1 1/27/2026
EXHIBIT A
Scope of Services
The scope of services is detailed below.
1. Project Research
a. Obtain and review available preliminary design plans and project documentation
b. Coordination meeting with the project team members
c. Obtain/verify current deeds and ownership information for one parcel
2. Initial Property Owner Contact
a. Initiate contact with owners and their real estate agent
3. Title Commitments
a. A title commitment will be prepared by a title company for one parcel.
b. Team coordination
4. Appraisals and Valuations
a. A full narrative appraisal was previously prepared but is out of date. An updated
appraisal report will be prepared by a licensed certified general appraiser
(Hogan).
b. Team Coordination
c. QA/QC of appraisal
5. Prepare Contracts
a. Prepare one deed document and R/W agreement for one parcel
b. A deed exhibit will be required to acquire a new road tract in fee simple including
a legal description, to be prepared at a later date (not included in this contract).
c. Clear Route will prepare acquisition documents including graphics, figures,
maps, letters, and project information
d. The City will provide copies of related agreements or documents for the subject
property for inclusion in the property acquisition and closing documents, as
needed
e. Prepare acquisition cost details and summary
f. QA/QC of documents
6. Acquisitions
a. Conduct acquisition meetings with property owners of one parcel to finalize
agreement details. The owners have hired a real estate agent to list and sell their
property. Clear Route will attempt to acquire a deeded road tract prior to the sale
of the property and will coordinate with the property owner’s agent on sale details
and agreement terms.
b. Prepare final acquisition documents
c. Prepare final acquisition costs
d. QA/QC of documents
7. Title Clearing and Closing
a. Prepare final title transfer documents, and schedule closing date
b. Obtain mortgage releases, clear taxes and leans, as required
c. Submittal of completed R/W acquisition offer packages to the City for review and
execution
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d. Team coordination
e. Attend closing meeting
8. Final Submittal and Closeout
a. Prepare R/W acquisition project submittal packet
b. Deliver completed title transfer documents
c. QA/QC of deliverables
Schedule
Clear Route Real Estate and the Client will work together to create a schedule outlining key
milestones for starting and completing the project. This schedule will reflect realistic timeframes
for services provided by Clear Route and the Client’s other consultants and will incorporate
anticipated review and approval periods by the Client and any governing agencies. The
schedule will remain flexible and may be revised throughout the project to accommodate
changes in scope or design, or to address delays or other factors outside Clear Route Real
Estate’s control.
Budget and Invoicing
Clear Route will bill for its services on a time-and-materials basis with a total cost not to exceed
$11,480.00. Clear Route will begin work once this agreement has been signed by both parties.
Right-of-Way Acquisition Services
1. Project Research $190.00
2. Initial Property Owner Contact $310.00
3. Title Commitments $755.00
4. Appraisals and Valuations $385.00
5. Prepare Contracts $1,240.00
6. Acquisitions $3,410.00
7. Title Clearing and Closing $930.00
8. Final Submittal and Closeout $310.00
Subconsultant: Hogan Appraisal (appraisal update) $3,950.00
Total $11,480.00
Clear Route Real Estate will submit monthly invoices to the Client for services performed during
the prior billing period, typically aligning with the calendar month and spanning approximately
30 days.
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Each invoice will itemize, as applicable, charges based on time or unit rates, as well as any
costs for subcontracted consultants and reimbursable expenses. Invoices will be issued
promptly following the end of each billing period and will be due upon receipt by the Client.
___________________________________________________________________________
This Task Order is dated ________________, 20___ between City of Bozeman, Montana (City)
and Clear Route Real Estate (Contractor).
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first above written or as recorded in an electronic signature.
CITY OF BOZEMAN, MONTANA CLEAR ROUTE REAL ESTATE, LLC
By: _______________________________ By: _______________________________
Print Name: ________________________ Print Name: ________________________
Print Title: __________________________ Print Title: __________________________
Date: ______________________________ Date: ______________________________
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Memorandum
REPORT TO:City Commission
FROM:David Fine, Economic Development Manager
Brit Fontenot, Economic Development Director
SUBJECT:Resolution Approving Certain Infrastructure Improvements, Referred to as
the Main and Mendenhall Lighting Project, as an Urban Renewal Project with
Respect to the Bozeman Midtown Urban Renewal District, Making Findings
with Respect Thereto and Approving the Use of Tax Increment Revenues to
Reimburse Costs Thereof and Approving a Related Development Agreement
in the Midtown Urban Renewal District with Bozeman Exchange Associates,
LLC.
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Resolution
RECOMMENDATION:Approve the agreement.
STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a
mechanism to encourage economic development.
BACKGROUND:The City Commission approved work plans for the Downtown Urban Renewal
District and Midtown Urban Renewal Districts to design pedestrian scale
street lighting to connect the two districts along the north side of Main St.
The work has been broken into three segments. The city completed the first
section adjacent to the Freestone on Main building in summer 2025. Staff
plan to bid a section in the Downtown Urban Renewal District from N. 5th
Ave. to Grand Ave. later this spring. A final piece of the project is being
constructed on Main St., N. 5th Ave. and Mendenhall St. largely adjacent to
the Hampton Inn and Suites hotel project. Due to the replacement of
sidewalks and streetscape elements associated with the hotel project, it is
efficient to place the developer of the hotel project in charge of the
upgraded pedestrian lighting elements adjacent to their active construction
project for the convenience of the city. The proposed development
agreement reimburses the developer for installing lighting designed by the
city. The agreement also provides up to $25,000 towards the demolition of
the long-vacant and dilapidated Cafe Internationale building at the corner of
7th and Mendenhall.
UNRESOLVED ISSUES:None at this time.
ALTERNATIVES:As suggested by the City Commission.
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FISCAL EFFECTS:The agreement allows the City to reimburse the developer for the actual
costs of the project not to exceed $387,817.38. Funding is available for this
project in the Fiscal Year 2026 budget for the Midtown Urban Renewal
District.
Attachments:
Resolution approving Main and Mendenhall lighting
project.docx
BZN Development Agreement -- Midtown lighting.v5
20260204.docx
Public Access & Utility Easement Documents.pdf
Report compiled on: January 29, 2026
78
RESOLUTION NO. _______
RESOLUTION APPROVING CERTAIN INFRASTRUCTURE IMPROVEMENTS AS AN
URBAN RENEWAL PROJECT WITH RESPECT TO THE BOZEMAN MIDTOWN
URBAN RENEWAL DISTRICT; MAKING FINDINGS WITH RESPECT THERETO
AND APPROVING THE USE OF TAX INCREMENT REVENUES TO REIMBURSE
COSTS THEREOF AND APPROVING A RELATED DEVELOPMENT AGREEMENT
BE IT RESOLVED by the City Commission (the “Commission”) of the City of
Bozeman, Montana (the “City”), as follows:
Section 1
Recitals.
1.01. Under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and
43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare and
adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal projects
therein, provide for the segregation and collection of tax increment with respect to property taxes
collected in such areas, and apply tax increment revenues to pay eligible costs.
1.02. Pursuant to the Act and Ordinance No. 1685 adopted by the City Commission of
the City (the “City Commission”) on November 27, 2006, as amended and supplemented by
Ordinance No. 1925, adopted by the City Commission on December 16, 2015 (as so amended
and supplemented, the “M-URD Ordinance”), the City has created the Bozeman Midtown Urban
Renewal District (the “M-URD”) as an urban renewal district and has approved the Bozeman
Midtown Urban Renewal Plan (the “M-URD Plan”) as an urban renewal plan in accordance with
the Act, which M-URD Plan provides for the segregation and collection of tax increment
revenues with respect to the M-URD.
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Resolution ____________, Approving Infrastructure Improvements in the Midtown Urban Renewal District in
Connection with a Project Known as the Main and Mendenhall Lighting Project
2
1.03. Bozeman Exchange Associates LLC, LLC (the “Developer”) proposes to undertake
the construction of a new hotel project, expected to consist of the construction of approximately
124 hotel rooms together with related improvements (collectively, the “Project”), on land located
in the M-URD bordered by 5th Street and Main and Mendenhall Streets, Bozeman, Montana,
which is legally described on Exhibit A hereto (the “Land”);
In connection with the Project, the City desires the Developer to construct improvements
to the City’s street lighting system that will benefit the Project as well as future development and
existing properties in the M-URD. The project also includes up to $25,000 in reimbursement for
demolition of the long-vacant and dilapidated former Café Internationale building. The
Developer has requested that the City use tax increment of the M-URD to reimburse it for costs
of the Infrastructure Improvements.
Section 2
Approval of the Infrastructure Improvements as an Urban Renewal Project.
The Commission hereby approves the Infrastructure Improvements as an urban renewal
project under the Act, the M-URD Plan. The Infrastructure Improvements are contemplated by
and within the scope of the M-URD Plan, and the costs of the Infrastructure Improvements are
eligible for tax increment financing under the Act.
Section 3
Findings.
The Commission hereby finds with respect to the Infrastructure Improvements as
follows:
a. no persons will be displaced from their housing by the Infrastructure
Improvements;
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Resolution ____________, Approving Infrastructure Improvements in the Midtown Urban Renewal District in
Connection with a Project Known as the Main and Mendenhall Lighting Project
3
b. the M-URD Plan and the Infrastructure Improvements conform to the
Bozeman Community Plan or parts thereof for the City as a whole;
c. the M-URD Plan and the Infrastructure Improvements will afford
maximum opportunity, consistent with the needs of the City as a whole, for the
rehabilitation or redevelopment of the District by private enterprise;
d. taking into account the use of tax increment revenues to reimburse the
Developer for a portion of the Infrastructure Improvements, there is expected to
be a sound and adequate financial program for the financing of the Infrastructure
Improvements; and
e. the Infrastructure Improvements constitute an urban renewal project
within the meaning of the Act, the M-URD Plan.
Section 4
Development Agreement; Use of Tax Increment.
4.01. Staff of the City’s Economic Development Department and the Developer have
negotiated a Development Agreement, the form of which is attached hereto as Exhibit A. The
Development Agreement is hereby approved in substantially the form attached. The City
Manager, or in the event of his absence or disability, his designee, is hereby authorized and
directed to finalize, approve, execute and deliver to the Developer the Development Agreement,
substantially in the form attached as Exhibit A, with such changes as such officer shall deem
necessary or appropriate. The execution and delivery by an appropriate officer of the City of the
Development Agreement shall be conclusive as to the approval of such officer of the terms of the
Development Agreement.
4.02. The Commission hereby approves the use of tax increment revenues to reimburse
the Developer for costs of the Infrastructure Improvements, subject to the terms and conditions
of the Development Agreement.
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Resolution ____________, Approving Infrastructure Improvements in the Midtown Urban Renewal District in
Connection with a Project Known as the Main and Mendenhall Lighting Project
4
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 10th Day of February, 2026.
___________________________________
JOEY MORRISON
Mayor
ATTEST:
___________________________________
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of
Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of
Resolution No. __________ entitled: “RESOLUTION APPROVING CERTAIN
INFRASTRUCTURE IMPROVEMENTS AS AN URBAN RENEWAL PROJECT WITH
RESPECT TO THE BOZEMAN MIDTOWN URBAN RENEWAL DISTRICT; MAKING
FINDINGS WITH RESPECT THERETO AND APPROVING THE USE OF TAX
INCREMENT REVENUES TO REIMBURSE COSTS THEREOF AND APPROVING A
RELATED DEVELOPMENT AGREEMENT” (the “Resolution”), on file in the original
records of the City in my legal custody; that the Resolution was duly adopted by the City
Commission of the City at a regular meeting on February 10, 2026 and that the meeting was duly
held by the City Commission and was attended throughout by a quorum, pursuant to call and notice
of such meeting given as required by law; and that the Resolution has not as of the date hereof
been amended or repealed.
I further certify that, upon vote being taken on the Resolution at said meeting, the following
Commission members voted in favor thereof:
; voted against the same:
; abstained from voting thereon: ; or
were absent: .
WITNESS my hand and seal officially this 10th day of February, 2026.
(SEAL)
__________________________________
MIKE MAAS
City Clerk
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Resolution ____________, Approving Infrastructure Improvements in the Midtown Urban Renewal District in
Connection with a Project Known as the Main and Mendenhall Lighting Project
A-1
EXHIBIT A
[Form of Development Agreement]
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DEVELOPMENT AGREEMENT
(Main and Mendenhall Lighting Project)
This DEVELOPMENT AGREEMENT (this “Agreement”) is dated as of February 10,
2026, by and between Bozeman Exchange Associates, LLC (the “Developer”) and the CITY OF
BOZEMAN, MONTANA, 121 N. Rouse Ave., Bozeman, Montana 59771 (the “City”). The
Developer and the City are each individually referred to herein as a “Party” and collectively as
the “Parties.”
RECITALS:
WHEREAS, under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts
42 and 43, as amended (the “Act”), the City is authorized to create urban renewal areas, prepare
and adopt an urban renewal plan therefor and amendments thereto, undertake urban renewal
projects therein, provide for the segregation and collection of tax increment with respect to
property taxes collected in such areas, and apply tax increment revenues derived from projects
undertaken within the urban renewal area to pay eligible costs;
WHEREAS, pursuant to the Act and Ordinance No. 1685 adopted by the City
Commission of the City (the “City Commission”) on November 27, 2006, as amended and
supplemented by Ordinance No. 1925, adopted by the City Commission on December 16, 2015
(as so amended and supplemented, the “Ordinance”), the City has created the Bozeman Midtown
Urban Renewal District (the “District”) as an urban renewal district and has approved the
Bozeman Midtown Urban Renewal Plan (the “Plan”) as an urban renewal plan in accordance
with the Act, which Plan provides for the segregation and collection of tax increment revenues
with respect to the District;
WHEREAS, the Developer proposes to undertake the construction of a Hampton Inn and
Suites hotel with approximately 124 rooms, together with related improvements (collectively, the
“Development”), on land located in the District bordered by 5th and 6th Streets and Main and
Mendenhall Streets, Bozeman, Montana, which is legally described on Exhibit A hereto (the
“Land”);
WHEREAS, the Developer desires to construct improvements to the City’s municipal
streetlighting system that will benefit the Development as well as future development in the
District, including the installation of continuous pedestrian scale lighting, as described on Exhibit
B hereto (the “Lighting Project”), which Lighting Project is located in the District; and
WHEREAS, pursuant to Resolution No. [______________] adopted on February 10,
2026, the City Commission approved the Development and the Project (as hereinafter defined) as
urban renewal projects under the Plan and the Act and authorized the use of tax increment
revenue of the District to reimburse the Developer for costs of the Lighting Project in the
maximum amount of $372,817.38 and to reimburse the Developer for up to $25,000 in costs of
demolishing the vacant Café Internationale building located on the Land at 622 W. Mendenhall
(the “Demolition” and, together with the Lighting Project, the “Project”), subject to the terms
and conditions of this Agreement; and
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WHEREAS, the Parties desire to enter into this Agreement which sets forth the
obligations and commitments of the Parties with respect to the Development and the Project.
NOW, THEREFORE, the City and the Developer, pursuant to the Act, each in
consideration of the representations, covenants and agreements of the other, as set forth herein,
mutually represent, covenant and agree as follows:
Section 1. Definitions; Rules of Interpretation; Exhibits.
1.1. Definitions. For all purposes of this Agreement, except as otherwise expressly
provided or unless the context clearly requires otherwise, the following terms have the meanings
assigned to them, respectively:
“Act” means Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended
or supplemented.
“Agreement” means this Development Agreement, dated as of February 10, 2026, by and
between the City and the Developer, as it may be amended or supplemented from time to time in
accordance with the terms hereof.
“Bonds” has the meaning given to it in Section 2.1 hereof.
“City” means the City of Bozeman, Montana, or any successors to its functions under this
Agreement.
“City Commission” means the governing body of the City.
“Demolition” has the meaning given to it in the recitals.
“Developer” means Bozeman Exchange Associates, LLC, a South Carolina limited
liability company, and its successors and assigns in accordance with and as permitted under this
Agreement.
“Developer Certificate” means the certificate attached hereto as Exhibit E.
“Development” has the meaning given to it in the recitals.
“District” has the meaning given to it in the recitals.
“DOR” means the State of Montana Department of Revenue.
“Environmental Laws and Regulations” means and includes the Federal Comprehensive
Environmental Compensation Response and Liability Act (“CERCLA” or the “Federal
Superfund Act”) as amended by the Superfund Amendments and Reauthorization Act of 1986
(“SARA”), 42 U.S.C. §§ 9601 et seq.; the Federal Resource Conservation and Recovery Act of
1976 (“RCRA”), 42 U.S.C. §§ 6901 et seq.; the Clean Water Act, 33 U.S.C. § 1321 et seq.; and
the Clean Air Act, 42 U.S.C. §§ 7401 et seq., all as the same may be from time to time amended,
and any other federal, state, county, municipal, local or other statute, code, law, ordinance,
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regulation, requirement or rule which may relate to or deal with human health or the environment
including without limitation all land use, zoning, and stormwater control regulations as well as
all regulations promulgated by a regulatory body pursuant to any statute, code, law, ordinance,
regulation, requirement or rule.
“Fiscal Year” means the period commencing on the first day of July of any year and
ending on the last day of June of the next calendar year, or any other twelve-month period
authorized by law and specified by the Commission as the City’s fiscal year.
“Indemnified Parties” has the meaning given to it in Section 7.1.
“Land” has the meaning given to it in the recitals.
“Land Use Regulations” means all federal, state and local laws, rules, regulations,
ordinances and plans relating to or governing the development or use of the Land or the
Development.
“Lighting Project” has the meaning given to it in the recitals.
“Milestone” of “Milestones” has the meaning given in Section 3.4 hereof.
“Milestone Date” or “Milestone Dates” has the meaning given in Section 3.4 hereof.
“Ordinance” has the meaning given to it in the recitals.
“Person” means any individual, corporation, limited liability company, partnership,
limited liability partnership, joint venture, association, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.
“Project” has the meaning given to it in the recitals hereof.
“State” means the State of Montana.
“Tax Increment” means the amount received by the City pursuant to the Act from the
extension of levies of Taxes (expressed in mills) against the incremental taxable value (as
defined in the Act) of all Taxable Property located in the District, and shall include all payments
in lieu of Taxes attributable to the incremental taxable value and all payments received by the
City designated as replacement revenues for lost Tax Increment.
“Taxable Property” means all real and personal property subject to Taxes, including land,
improvements and equipment.
“Taxes” means all taxes levied on an ad valorem basis by any Taxing Body against the
Taxable Property (exclusive of the six mill levy for university purposes levied by the State or
other mills that may be excluded by State law), and shall include all payments in lieu of taxes
received by the City with respect to Taxable Property.
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“Taxing Body” means the City; the County of Gallatin, Montana; High School District
No. 7 (Bozeman), Gallatin County, Montana; Elementary School District No. 7 (Bozeman),
Gallatin County, Montana; the State; and any other political subdivision or governmental unit
that levies or may hereafter levy or cause to be levied Taxes against property within the District.
“Unavoidable Delay” means a delay resulting from a cause over which the Party required
to perform does not have control and which cannot or could not have been avoided by the
exercise of reasonable care, including but not limited to, acts of God, accidents, war, civil unrest,
embargoes, strikes, unavailability of raw materials or manufactured goods, litigation, pandemics,
epidemics, labor shortages, unusually inclement weather and the delays of the other Party or its
contractors, agents or employees in the performance of their duties under or incident to this
Agreement.
1.2. Rules of Interpretation.
(a) The words “herein,” “hereof” and words of similar import, without reference to
any particular section or subdivision, refer to this Agreement as a whole rather than to any of its
particular sections or subdivisions.
(b) References to any particular section or subdivision hereof are to the section or
subdivision of this Agreement in its original signed form, unless otherwise indicated.
(c) The word “or” is not exclusive but is intended to contemplate or encompass one,
more or all of the alternatives conjoined.
1.3. Exhibits. The following Exhibits are attached to and by reference made a part of
this Agreement:
Exhibit A: Legal Description of the Land
Exhibit B: Description of the Lighting Project
Exhibit C: Form of Utility Easement
Exhibit D: Milestones
Exhibit E-1: Form of Developer Certificate for Initial Installment
Exhibit E-2: Form of Developer Certificate for Second Installment
Exhibit E-3: Form of Developer Certificate for Final Installment
Exhibit F: Nondiscrimination and Equal Pay Affirmation
Section 2. Representations.
2.1. City Representations. The City hereby represents as follows:
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(a) Pursuant to the Act, and after public hearings duly called and held, the
City by the Ordinance has duly created the District.
(b) Pursuant to Resolution No. [____] of the City Commission, the City
approved the execution and delivery of this Agreement and the use of Tax Increment, if
available, to reimburse the Developer for costs of the Project in a total amount not to
exceed $397,817.38. Subject to the terms and conditions of this Agreement, the City
intends to reimburse the Developer for the Project in an amount not to exceed
$397,817.38.
(c) The City has issued and there are outstanding its Tax Increment Urban
Renewal Revenue Bonds (Bozeman Midtown Urban Renewal District), Series 2020 (the
“Bonds”), payable from and secured by a first lien on Tax Increment. The commitment
of Tax Increment pursuant to this Agreement is subordinate in all respects to the pledge
of Tax Increment to repayment of the Bonds.
2.2. Developer Representations. The Developer hereby represents as follows:
(a) The Developer is a limited liability company, duly formed, validly
existing and in good standing under the laws of the State of South Carolina and is duly
qualified to do business in the State of Montana. The Developer has the power to enter
into this Agreement and by all necessary limited liability company action has duly
authorized the execution and delivery of this Agreement.
(b) The Developer has or will have good marketable title to the Land, free and
clear of all liens, encumbrances and defects except such as do not materially affect the
value of the Land or materially interfere with the use made and proposed to be made of
the Land by the Developer.
(c) The Developer has the financial capability or commitments to complete
the Development and the Project.
(d) The Developer is not aware of any facts the existence of which would
cause the Developer to be in violation in any material respect of any Environmental Laws
and Regulations applicable to the Development or the Project. The Developer has not
received from any local, state or federal official any notice or communication indicating
that the activities of the Developer have been, may be or will be in violation of any
Environmental Laws and Regulations applicable to the Development or the Project.
(e) Neither the execution and delivery of this Agreement, the consummation
of the transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions hereof is prohibited or limited by, conflicts with or results in a
breach of the terms, conditions or provisions of the certificate of formation, partnership
agreement or operating agreement of the Developer or any evidence of indebtedness,
agreement or instrument of whatever nature to which the Developer is now a party or by
which it is bound, or constitutes a default under any of the foregoing.
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(f) There is no action, suit, investigation or proceeding now pending or, to the
knowledge of the Developer, threatened against or affecting the Developer or its
business, operations, properties or condition (financial or otherwise) before or by any
governmental department, commission, board, authority or agency, or any court,
arbitrator, mediator or grand jury, that could, individually or in the aggregate, materially
and adversely affect the ability of the Developer to complete the Development or the
Project.
(g) The Developer acknowledges and agrees that the sole source of funds for
reimbursing the Developer under this Agreement is Tax Increment. The Developer
acknowledges that the commitment of Tax Increment pursuant to this Agreement is in all
respects subordinate to the pledge of Tax Increment to the Bonds. The Developer further
acknowledges and agrees the amount of Tax Increment is dependent upon a number of
variables, including, without limitation, the taxable value of the Development and other
taxable value within the District, the number of mills levied by Taxing Bodies, and then-
prevailing state laws regarding computation of Tax Increment. The Developer agrees
that if Tax Increment in the amount of $397,817.38 is not available to the City to
reimburse the Developer, the City shall have no obligation to pay to the Developer the
amount of reimbursement described in Section 4 and this Agreement shall terminate as
described in Section 5.2(b).
(h) The Developer acknowledges and agrees that the costs of the Demolition
to be reimbursed from Tax Increment will not include any costs related to removal of any
trees.
Section 3. Developer Undertakings.
3.1. Construction and Maintenance of Development. The Developer hereby agrees
and commits to the City that it will diligently prosecute to completion the construction of the
Development in accordance with this Agreement, the site plan submitted or to be submitted to
the City and all applicable federal, State and local laws, rules, regulations, ordinances and plans
relating to or governing the development or use of the Development, including applicable Land
Use Regulations and Environmental Laws and Regulations. The Developer agrees and commits
to the City that construction of the Development shall be substantially complete by December
31, 2026, subject to Unavoidable Delays. The total estimated costs of the Development are
expected to be in excess of $28,000,000. The Developer has the financial capacity to complete
the Development, and the Developer agrees to pay all costs thereof. At all times during the term
of this Agreement, the Developer will operate and maintain, preserve and keep the Development
or cause the Development to be operated, maintained, preserved and kept for the purposes for
which it was constructed, and with the appurtenances and every part and parcel thereof, in good
repair and condition. The Developer agrees to permit the City and any of its officers, employees
or agents access to the Land for the purpose of inspection of all work being performed in
connection with the Development; provided, however, that the City shall have no obligation to
inspect such work.
3.2. Preparation, Review and Approval of Construction Plans. In connection with the
Development, the Developer, at its sole expense, shall prepare and submit construction plans,
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drawings, and related documents for the Development to the appropriate City officials for
architectural, engineering or land use review and written approval or permits. The Developer
acknowledges that no review or approval by City officials hereunder may be in any way
construed by the Developer to replace, override or be in lieu of any required review, inspection,
or approval by the City Planning Division, or any other building construction official review or
approvals required by any State laws or local ordinances or regulations. Nothing contained in
this Agreement indicates or evidences that the City has approved or will approve the
Development or any portion thereof. This Agreement does not affect or limit the City’s
regulatory powers with regard to the Development, including, without limitation, those relating
to building permits or other permits or the payment of fees. As further described in Section 7.1,
the City shall have no liability and the Developer shall hold the City harmless with respect to any
increases in costs of the Development related to or arising out of delays resulting from the City’s
regulatory actions or approvals.
3.3. Construction of the Project; Warranty. The Developer shall acquire, install,
construct or otherwise provide the Project. The Developer acknowledges and agrees that the
City is not responsible for acquiring, installing, constructing or otherwise providing the Project.
The estimated costs of the Project are $387,817.38. Upon acceptance by the City of the
improvements comprising the Lighting Project, the Developer must require its contractor to
provide the City a warranty on all improvements comprising part of the Lighting Project as
required by 38.270.100, BMC, and section C.9 of the City of Bozeman Plans and Specifications
Review Policy.
3.4. Milestones. Certain steps in the development of the Project are listed on Exhibit
D attached hereto (collectively, the “Milestones”; each a “Milestone”), together with the dates by
which the Developer is obligated to complete the Milestone (collectively, the “Milestone Dates”;
each as it relates to a particular Milestone, the “Milestone Date”). The Developer acknowledges
and agrees that the City in reserving or offering to make available Tax Increment to reimburse it
for costs of the Project necessarily means that certain Tax Increment is not available to pay or
reimburse other undertakings or costs for the benefit of the District and that the City reasonably
expects additional Tax Increment as a result of completion of the Development. The Developer
acknowledges and agrees that conditioning the availability of Tax Increment to reimburse it for
the Project on completion or satisfaction of the Milestones by the corresponding Milestone Dates
is reasonable. If the Developer is unable to complete or satisfy a Milestone by the corresponding
Milestone Date, the Developer shall make a formal written request to the Director of Economic
Development, with appropriate supporting material, to extend the Milestone Date and, as
appropriate, subsequent Milestone Dates. The Director of Economic Development may, in his or
her sole discretion, (i) determine whether such extension is appropriate and, if so, fix a new and
superseding Milestone Date and also adjust other subsequent Milestone Dates, along with any
other terms or conditions, or (ii) refer the request to the City Commission to either approve the
extension and adjust other Milestone Dates, as appropriate, or, in its sole discretion, terminate
this Agreement, in which case the City will have no obligation to reimburse the Developer
hereunder.
3.5. Independent Contractor Status/Labor Relations. The Developer understands that
the City is obligated to follow certain laws with respect to the expenditure of public funds, which
includes Tax Increment.
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The Parties agree the Developer and its contractors and subcontractors, including its
engineers, and their employees and agents are independent contractors for purposes of this
Agreement and are not to be considered employees of the City for any purpose. As such, neither
the Developer nor any of its contractors and subcontractors are to be considered subject to the
terms and provisions of the City’s personnel policies and may not be considered a City employee
for workers’ compensation or any other purpose. The Developer and its contractors and
subcontractors are not authorized to represent the City or otherwise bind the City in any dealings
between them and any other party.
With respect to the Demolition, the Developer agrees that in the awarding of contracts for
the Demolition (i) it will, and it will cause its contractor to, publicly bid competitively contracts
for the Demolition, and (ii) through its contract with its contractor, it will, in addition to the
requirements of Section 3.9, require its contractor to comply with the applicable requirements of
the Workers’ Compensation Act, Title 39, Chapter 71, M.C.A., and the Occupational Disease
Act of Montana, Title 39, Chapter 71, M.C.A., and to pay the Prevailing Wage Rates on
contracts related to the Demolition. The Developer will provide to the City all documentation
requested to verify the compliance of the Developer and its contractor with the foregoing
requirements. Failure of the Developer or its contractor to bid competitively contracts for the
Demolition or to require contracts entered into directly with contractors or sub-contractors to
include provisions requiring the contractor or sub-contractor to pay the Prevailing Wage Rates
on the work related to the Demolition will be considered a breach of this Agreement and the City
will be entitled, at its discretion and without obligation, to exercise any and all measures to
assure compliance and retroactive compensation plus interest to workers not paid in accordance
with this Agreement, and recovery of any penalty or fine assessed by the State attributed to any
failure to pay the Prevailing Wage Rates. Additionally, the Developer acknowledges that a
violation of these requirements may, in the City’s sole discretion, cause the Demolition to be
ineligible for the application of Tax Increment, in which case the City will have no obligation to
reimburse or pay the Developer hereunder.
With respect to the Lighting Project:
The Developer must require its contractor to comply with the applicable requirements of
the Workers’ Compensation Act, Title 39, Chapter 71, M.C.A., and the Occupational Disease
Act of Montana, Title 39, Chapter 71, M.C.A., and must ensure its contractor maintains workers’
compensation coverage for all members and employees of contractor’s business, except for those
members who are exempted by law. The Developer or its contractor, as applicable, must comply
with all Montana statutory requirements for the procurement of construction services for the
Lighting Project including, but not limited to, requirements of Title 7, chapter 5, part 43, M.C.A.
and Title 18, M.C.A. including but not limited to competitive bidding.
The Developer must require its contractor furnish it with copies showing one of the
following: (1) a binder for workers’ compensation coverage by an insurer licensed and
authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of
exemption from workers’ compensation granted by law for independent contractors. The
Developer must provide such evidence to the City upon the City’s request.
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The Developer must require its contractor to give preference to the employment of bona
fide Montana residents which means an individual who, at the time of employment and
immediately prior to the time of employment, has lived in Montana in a manner and for a time
that is sufficient to clearly justify the conclusion that the individual’s past habitation in this state
has been coupled with an intention to make this state the individual’s home. The Developer must
instruct its contractor that individuals who come to Montana solely in pursuit of a contract or an
agreement to perform labor may not be considered to be bona fide Montana residents.
The Developer must require its contractor to pay wages, fringe benefits, and expenses
including travel allowances as set forth in the Montana Prevailing Wage Rate applicable to the
work performed, and as such wages are applicable to Gallatin County, Montana. The Parties
agree the adopted wage schedules are incorporated herein. In addition, the Developer must
require its contractor to pay all hourly wage employees on a weekly basis and to maintain payroll
records during construction and for a period of three (3) years following acceptance of the
Lighting Project by the City. Finally, the Developer must require that its contractor ensure that
any person, firm or entity constructing any portion of the Lighting Project under this Agreement
for which the Developer’s contractor or any of its subcontractors is responsible, is paid the
applicable standard prevailing rate of wages.
In the event that, during construction of the Lighting Project, any labor problems or
disputes of any type arise or materialize which in turn cause any services to cease for any period
of time, the Developer must require its contractor to agree to take immediate steps, at its own
expense and without expectation of reimbursement from City, to alleviate or resolve all such
labor problems or disputes and that the steps contractor shall take are to be left to the discretion
of contractor; provided, however, that the Developer must require the contractor to bear all costs
of any related legal action.
The Developer must require its contractor to indemnify, defend, and hold the City
harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out
of, resulting from, or occurring in connection with any labor problems or disputes or any delays
or stoppages of work associated with such problems or disputes and for any claims regarding
underpaid wages.
3.6. Utilities. The Developer shall not interfere with, or construct any improvements
over, any public street or utility easement without the prior written approval of the City. All
connections to public utility lines and facilities shall be subject to approval of the City and any
private utility company involved. The Developer at its own expense shall replace any public
facilities or utilities damaged during the Development by the Developer or its agents or by others
acting on behalf of or under their direction or control of the Developer.
3.7. Permits and Compliance With Laws. The Developer will obtain, in a timely
manner, all required permits, licenses and approvals, and will meet all requirements of all local,
state and federal laws, rules and regulations which must be obtained or met in connection with
the acquisition and construction of the Development and the Project. Without limiting the
foregoing, the Developer will request and seek to obtain from the City or other appropriate
governmental authority all necessary land use, zoning, and building permits. The Developer
must require its contractor to provide all notices, comply with all applicable laws, ordinances,
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rules, and regulations, obtain all necessary permits, licenses, including a City of Bozeman
business license, and inspections from applicable governmental authorities, and pay all fees and
charges in connection therewith. The Developer will comply in all material respects with all
Environmental Laws and Regulations applicable to the construction, acquisition, and operation
of the Development and the Project, will obtain any and all necessary environmental reviews,
licenses or clearances under, and will comply in all material respects with, Environmental Laws
and Regulations. In addition, the Developer shall require its contractor to comply fully with all
applicable state and federal laws, regulations, and municipal ordinances including, but not
limited to, all workers’ compensation laws, all environmental laws including, but not limited to,
the generation and disposal of hazardous waste, the Occupational Safety and Health Act
(OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter
71, MCA, all applicable City, County, and State building and electrical codes, the Americans
with Disabilities Act, and all non-discrimination, affirmative action, and utilization of minority
and small business statutes and regulations.
3.8. Easements. To the extent that the Lighting Project is to be located on the Land,
the Developer hereby agrees to grant to the City and applicable utility companies from time to
time such easements, rights-of-way and similar licenses in a form required by the City and as are
reasonably necessary to permit the City to own, operate and maintain the Lighting Project.
Without limiting the generality of the foregoing, the Developer agrees to dedicate and record
public access and utility easements on the Mendenhall and North 7th Avenue frontages of the
Development, substantially in the form attached hereto as Exhibit C.
3.9. Nondiscrimination and Equal Pay Affirmation. The Developer agrees to require
its contractor(s) to be in compliance with the City’s Nondiscrimination and Equal Pay
Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated,
regarding activities related to the Development and the Project. The Developer agrees that in its
contracts with its contractors the Developer’s contractor will be required to require its
subcontractors to comply with the City’s Nondiscrimination and Equal Pay Affirmation attached
hereto as Exhibit F, as well as Title 49, Montana Code Annotated, regarding activities related to
the Development and the Project. The Developer agrees to provide copies of all such contracts
upon request by the City.
3.10. Performance and Payment Bonds. The Developer must require its contractor to
provide performance, maintenance, and payment bonds to it for completion of the Lighting
Project meeting all statutory requirements of the State of Montana, in form and substance and,
without limitation, complying with the following specific requirements:
(a) Require the contractor to faithfully perform all of the provisions of the
contract between the Developer and the contractor.
(b) Require the contractor to pay all laborers, mechanics, subcontractors, and
material suppliers.
(c) Require the contractor to pay all persons who supply the contractor with
provisions, provender, material, or supplies for performing the work.
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(d) Except as otherwise required by Montana law, the form and substance of
such bond(s) must be satisfactory to the Developer and the City.
(e) Bond(s) shall be executed by a responsible surety licensed in Montana and
listed in the latest U.S. Dept. of Treasury Circular #570, with a Best’s rating of no less
than A/XII. Said bonds shall remain in effect through the warranty period for all
Improvements, and until all of the contractor’s obligations to the Developer are fulfilled.
(f) The performance bond and the labor and material payment bond shall be
in an amount equal to or exceeding one hundred percent (100%) of the contract amount
entered into between the Developer and its contractor.
(g) The Developer shall require the attorney-in-fact who executes the required
bond(s) on behalf of the surety to affix thereto a certified and current copy of his or her
power of attorney indicating the monetary limit of such power.
(h) Every bond under this section must display the surety’s bond number. A
rider including the following provision shall be attached to each bond: Surety agrees that
it is obligated under the bond(s) to any successor, grantee or assignee of the Developer
and the City.
(i) The City and the Developer must be named as obligees on the bonds.
(j) The Developer must require its contractor to deliver the required bonds to
it and the City prior to the commencement of any work on the Lighting Project.
(k) Prior to acceptance of the Lighting Project, the Developer’s contractor
must post a maintenance bond with the City equal to 20% of the actual cost of the
Lighting Project to correct any deficiencies in workmanship and/or materials which are
found within the two-year warranty period. The City shall be named as an obligee on the
bond.
3.11. Walkaway Provision. The Developer shall have the option, in its sole discretion
and for any reason, to cease developing the Development and terminate this Agreement without
penalty at any time prior to the Developer submitting a Developer Certificate (the “Walkaway
Provision”). If the Developer exercises the Walkaway Provision, this Agreement shall
immediately terminate and all rights and obligations of the Parties under this Agreement shall
cease, except for those rights and obligations specifically identified in Section 8.3(b) in this
Agreement as surviving termination. If the Developer exercises this Walkaway Provision, the
Developer automatically waives any and all rights to reimbursement from the City under this
Agreement. This Walkaway Provision shall not limit or prohibit any rights, claims or recourse
that the City may have in connection with the Development or the Project.
Section 4. City Undertakings. Subject to satisfaction of all conditions in Section 5 below,
and solely from Tax Increment on hand and subject to the prior lien of the Bonds, the City agrees
to reimburse the Developer for the Project in an amount not to exceed $397,817.38. The Parties
acknowledge and agree that, subject to the terms and conditions of this Agreement, the actual
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costs of the Project may exceed $397,817.38, but $397,817.38 is the maximum amount that the
City will reimburse the Developer for the Project pursuant to this Agreement.
Section 5. Conditions and Process for Reimbursement. The City’s reimbursement of the
Developer for the Project as described in Section 4 shall be subject to the following conditions
and in accordance with the following procedures:
5.1. Installments. The City will reimburse the Developer for the Project in up to three
installments.
5.2. Conditions to Reimbursement of the Initial Installment. The City will pay the
initial installment only if the following conditions are satisfied and the following procedures are
followed:
(a) The Developer must have completed or satisfied each of the Milestones by
the applicable Milestone Date, as such date may have been extended pursuant to Section
3.4 hereof, with respect to Milestones and Milestone Dates that have occurred by the date
of the initial installment.
(b) Reimbursement by the City for costs of the mobilization and ordering of
light poles and luminaires, and engineering design services for the Lighting Project must
be based on paid invoices for costs incurred by the Developer, its contractors and
subcontractors or utility companies, which the Developer must supply to the City. The
City may reject, in its sole discretion, any invoice related to the Project. The City will
notify the Developer of any rejected invoice and the reason it was rejected. In no event
will the City reimburse for costs related to removal of trees in connection with the
Demolition.
(c) At the time of the Developer’s request for the initial installment (i) all of
the Developer’s representations as set forth in Section 2.2 must be true and correct, (ii)
the Developer must not be in breach of any covenant or undertaking as set forth in
Section 3, and (iii) there must be adequate Tax Increment on hand to pay the amount of
the initial installment and satisfy all other financial obligations related to the District,
including related to the Bonds.
(d) The Developer must provide evidence satisfactory to the City that the
utility easements described in Section 3.8 have been recorded with the Gallatin County
Clerk and Recorder’s Office, with only such changes from the form set forth in Exhibit C
as have been approved by the City.
(e) The Developer shall provide to the City a signed Developer certificate
substantially in the form attached as Exhibit E-1 hereto and acceptable to the City,
accompanied by the invoices and lien waivers from the contractors or subcontractors that
have performed the work to be reimbursed. In addition, the Developer agrees to provide
to the City any additional information requested by the City for the City to determine
whether the Developer’s request for reimbursement complies with this Agreement.
Based on this Developer certificate and the related information provided by the
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Developer, the City Manager or his or her designee shall determine the total dollar
amount of costs that may be reimbursed in the initial installment.
(f) If Tax Increment funds are on hand and available therefor, and all
conditions set forth in Section 5.1(a) through (f) have been satisfied, the City shall pay
the initial installment to the Developer.
If any of the above conditions are not satisfied in the determination of the City, the City
shall have no obligation to reimburse the Developer for the costs of the Project and the City’s
determination to refrain from reimbursing, or its inability to reimburse, any of the Project shall
not be or result in a default under this Agreement.
5.3. Second Installment. Following payment of the initial installment, at the
Developer’s written request, the City will pay a second installment, in an amount up to 70% of
the remaining reimbursable costs of the Lighting Project and costs of the Demolition, up to
$25,000, only if the following conditions are satisfied and the following procedures are followed:
(a) The Developer shall continue to complete or satisfy remaining Milestones by the
applicable Milestone Dates, as such dates may have been extended pursuant to Section 3.4
hereof.
(b) Reimbursement by the City for costs of the Lighting Project and Demolition must
be based on paid invoices for costs incurred by the Developer, its contractors and subcontractors
or utility companies, which the Developer must supply to the City. The City may reject, in its
sole discretion, any invoice related to the Lighting Project or Demolition. The City will notify
the Developer of any rejected invoice and the reason it was rejected.
(c) The Demolition must have been completed in its entirety prior to payment of the
second installment.
(d) At the time of the Developer’s request for the second installment (i) all of the
Developer’s representations as set forth in Section 2.2 must be true and correct, (ii) the
Developer must not be in breach of any covenant or undertaking set forth in Section 3, and (iii)
there must be adequate Tax Increment on hand to satisfy all financial obligations of the District,
including related to the Bonds.
(e) The work on the Lighting Project that the second installment is reimbursing shall
have been completed, and the Developer must demonstrate to the City’s satisfaction, by a title
report or other means acceptable to the City, that the portion of the Lighting Project being
reimbursed by the second installment is free of financial liens.
(f) The Developer shall submit to the Director of Economic Development a
certificate substantially in the form attached hereto as Exhibit E-2, accompanied by the invoices
and lien waivers from the contractors or subcontractors that have performed the work to be
reimbursed. In addition, the Developer agrees to provide to the City any additional information
requested by the City for the City to determine whether the Developer’s request for
reimbursement complies with this Agreement. Based on this Developer certificate and the
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related information provided by the Developer, the City Manager or his or her designee shall
determine the total dollar amount of costs that may be reimbursed in the second installment.
5.4. Final Installment. Following the payment of the initial installment and, if
applicable, the second installment, the City will pay the final installment only if the following
conditions are satisfied and the following procedures are followed:
(b) The Developer shall continue to complete or satisfy remaining Milestones by the
applicable Milestone Dates, as such dates may have been extended pursuant to Section 3.4
hereof.
(b) Reimbursement by the City for remaining costs of the Lighting Project must be
based on paid invoices for costs incurred by the Developer, its contractors and subcontractors or
utility companies, which the Developer must supply to the City. The City may reject, in its sole
discretion, any invoice related to the Lighting Project. The City will notify the Developer of any
rejected invoice and the reason it was rejected.
(c) At the time of the Developer’s request for the final installment (i) all of the
Developer’s representations as set forth in Section 2.2 must be true and correct, (ii) the
Developer must not be in breach of any covenant or undertaking set forth in Section 3, and (iii)
there must be adequate Tax Increment on hand to satisfy all financial obligations of the District,
including related to the Bonds.
(d) The Lighting Project shall have been completed in its entirety and the City shall
have delivered to the Developer written acceptance of the Lighting Project (which may be in the
form of a Certificate of Completion or such other format as required by the City). The
Developer must demonstrate to the City’s satisfaction, by a title report or other means acceptable
to the City, that the Lighting Project is free of financial liens and any encumbrances affecting the
Lighting Project must be acceptable to the City.
(e) The Developer shall submit to the Director of Economic Development a
certificate substantially in the form attached hereto as Exhibit E-3, accompanied by the invoices
and lien waivers from the contractors or subcontractors that have performed the work to be
reimbursed. In addition, the Developer agrees to provide to the City any additional information
requested by the City for the City to determine whether the Developer’s request for
reimbursement complies with this Agreement. Based on this Developer certificate and the
related information provided by the Developer, the City Manager or his or her designee shall
determine the total dollar amount of costs that may be reimbursed in the final installment.
5.5. Failure to Satisfy Conditions. If any of the conditions described in Sections 5.2
through 5.4 are not satisfied in the determination of the City, the City shall have no obligation to
make the initial installment, the second installment or final installment, respectively, and the
City’s determination to refrain from reimbursing, or its inability to reimburse, for costs of the
Project shall not be or result in a default of this Agreement.
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Section 6. Sources of Repayment; Covenants to Pay Taxes.
6.1. Taxes. The Developer shall pay or cause to be paid when due and prior to the
imposition of penalty all Taxes and all installments of any special assessments payable with
respect to the Land and the Development and any improvements thereto or extension thereof.
6.2. Maintenance of Land and Development. The Developer agrees to use its
commercially reasonable best efforts to maintain and operate the Land and the Development so
as to be able at all times to pay promptly and when due all property taxes levied with respect to
the Land and the Development.
6.3. Injunction; Specific Performance. The Parties agree that, in the event of a breach
of this Section 6 by the Developer or its successors or assigns, the City would suffer irreparable
harm. Therefore, in the event the Developer or its successors or assigns fails to comply with the
provisions of this Section 6, the Developer agrees that the City may pursue any remedy at law or
in equity, including the remedies of injunction and specific performance.
Section 7. Indemnification and Insurance.
(a) The Developer releases the City and all City Commission members, board
members, officers, agents, servants and employees of the City (the “Indemnified Parties”)
from, and covenants and agrees that the Indemnified Parties shall not be liable for, and
agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss,
damage, cost (including reasonable attorneys’ fees), claim, demand, suit, action or other
proceeding whatsoever (i) arising or purportedly arising out of, or resulting or
purportedly resulting from, the acquisition and construction of the Development or the
Project, any violation by the Developer of any agreement, condition or covenant of this
Agreement, the ownership, maintenance and operation of the Development, or the
presence on any portion of the Land of any dangerous, toxic or hazardous pollutants,
contaminants, chemicals, waste, materials or substances; or (ii) which is proximately
caused by the Developer or its officers, agents, contractors, consultants or employees.
(b) The Developer agrees to require in any contract it enters into in fulfillment
of its obligations under this Agreement that it will, to the fullest extent permitted by law,
require its contractors to agree in such contracts that the contractor does release, defend,
indemnify, and hold harmless the Indemnified Parties from and against any and all
claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees
of and expert witness and consultants), losses, expenses, liabilities (including liability
where activity is inherently or intrinsically dangerous) or damages of whatever kind or
nature connected therewith and without limit and without regard to the cause or causes
thereof or the negligence of any party or parties that may be asserted against, recovered
from or suffered by the Indemnified Parties occasioned by, growing or arising out of or
resulting from or in any way related to: (i) the negligent, reckless, or intentional
misconduct of the contractor; (ii) any negligent, reckless, or intentional misconduct of
any of the contractor’s agents including its subcontractors.
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Such obligations shall not be construed to negate, abridge, or reduce other rights
or obligations of indemnity that would otherwise exist. The indemnification obligations
of this Section must not be construed to negate, abridge, or reduce any common-law or
statutory rights of the indemnitee(s) which would otherwise exist as to such
indemnitee(s). The indemnity under this Section the Developer must require of its
contractor shall be without regard to and without any right to contribution from any
insurance maintained by any Indemnified Party.
Should any indemnitee described herein be required to bring an action against the
Developer’s contractors or engineers to assert its right to defense or indemnification
under this Agreement or under the Developer’s contractor’s or engineer’s applicable
insurance policies required below the indemnitee shall be entitled to recover reasonable
costs and attorney fees incurred in asserting its right to indemnification or defense but
only if a court of competent jurisdiction determines the Developer’s contractor(s) or
engineer(s) was obligated to defend the claim(s) or was obligated to indemnify the
indemnitee for a claim(s) or any portion(s) thereof.
In the event of an action filed against the City resulting from the City’s
performance under this Agreement, the City may elect to represent itself and incur all
costs and expenses of suit.
The Developer must also require its contractors and subcontractors and engineers
to waive any and all claims and recourse against the City or its officers, agents or
employees, including the right of contribution for loss or damage to person or property
arising from, growing out of, or in any way connected with or incident to the Project
except “responsibility for his own fraud, for willful injury to the person or property of
another, or for violation of law, whether willful or negligent” as per 28-2-702, MCA.
The obligations contained in this Section 7(a) and (b) shall survive termination of
this Agreement.
(c) With respect to the Project only: In addition to and independent from the
above, the Developer shall require its contractor(s) and engineer(s) at the contractor(s)’s
and engineer(s)’s expense, to secure insurance coverage through an insurance company
or companies duly licensed and authorized to conduct insurance business in Montana
which insures the liabilities and obligations specifically assumed by the Developer’s
contractor(s) or engineer(s) in this Section. The insurance coverage shall not contain any
exclusion for liabilities specifically assumed by the contractor(s) or engineer(s) retained
by the Developer to perform its obligations under this Agreement and as such liabilities
and obligations are included in subsection (a) of this Section.
The insurance shall cover and apply to all claims, demands, suits, damages,
losses, and expenses that may be asserted or claimed against, recovered from, or suffered
by the City without limit and without regard to the cause therefore and which is
acceptable to the City and the Developer must cause to be furnished to the City an
accompanying certificate of insurance and accompanying endorsements demonstrating
such insurance is in place in amounts not less than as follows:
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Workers’ Compensation – statutory;
Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate;
Commercial General Liability - $2,000,000 per occurrence; $4,000,000
annual aggregate;
Products Completed Operations - $5,000,000;
Automobile Liability - $1,000,000 property damage/bodily injury per
accident; and
Professional Liability - $1,000,000 per claim; $2,000,000 annual
aggregate.
In addition to the above, the Developer must cause its contractor to purchase and
maintain insurance in the amount of the full replacement cost of the Project. This
insurance must:
Include the interests of the City, the Developer, and the Developer’s
contractor, engineers, and subcontractors each of whom is deemed to have an insurable
interest and must be listed as an insured or additional insured;
Be written on a Builder’s Risk “all risk” or open peril or special causes of
loss policy form that shall at least include insurance for physical loss and damage to the
Project, temporary buildings, false work and materials and equipment in transit and must
insure against at least the following perils or cause of loss: fire, lighting, extended
coverage, theft, vandalism, and malicious mischief, earthquake, collapse, debris removal,
demolition occasional by enforcement of applicable laws and regulations, and water
damage (other than caused by floods);
Include expenses incurred in the repair or replacement of any insured
property (including but not limited to the fees and charges or engineers);
Cover materials and equipment in transit for incorporation in the Project
stored at the site or at another location prior to being incorporated into the Project,
provided that such materials and equipment have been included in an application for
payment by the Developer’s contractor and recommended for payment by the
Developer’s engineers;
Be endorsed to allow occupancy and partial utilization of the Project by
the Developer and the City;
Include testing and start-up; and
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Be maintained in effect until final payment is made by the City to the
Developer unless otherwise agreed to in writing by the City with forty-five (45) days
written notice to each additional insured.
The above amounts shall be exclusive of defense costs. The City of Bozeman, its
officers, agents, and employees, shall be endorsed as an additional or named insured on a
primary non-contributory basis on the applicable policies. The insurance and required
endorsements must be in a form suitable to City and shall include no less than a forty-five
(45) day notice of cancellation or non-renewal. The City must approve all insurance
coverage and endorsements prior to the Developer commencing work. In addition to the
notice of cancellation to the City that must be included in the insurance policies, the
Developer and its contractor(s) and engineer(s) must notify City within two (2) business
days of any of their receipt of information that any required insurance coverage will be
terminated or of contractor(s) or engineer(s) decision to terminate any required insurance
coverage for any reason.
The City must receive copies of all insurance coverages and endorsements prior to
the Developer commencing construction of the Project.
Section 8. General Provisions.
8.1. Conflicts of Interest; City’s Representatives Not Individually Liable. The
Developer represents that it does not employ, retain, or contract with an officer or employee of
the City and that no member, officer or employee of the City has a personal or financial interest,
direct or indirect, in this Agreement or in the Development, or a financial interest in the Project.
No member, officer or employee of the City shall be personally liable to Developer in the event
of any default under or breach of this Agreement by the City, or for any amount that may
become due to Developer for any obligation issued under or arising from the terms of this
Agreement.
8.2. Rights Cumulative. The rights and remedies of the Parties of this Agreement,
whether provided by law or by this Agreement, shall be cumulative, and the exercise by any
Party hereto of any one or more of such remedies shall not preclude the exercise by such Party,
at the same or different times, of any other remedy for the same default or breach or of any of its
remedies for any other default or breach of the Party subject to the limitation of remedies
provided herein. No waiver made by such Party with respect to the performance or the manner
or time thereof, of any obligation under this Agreement, shall be considered a waiver with
respect to the particular obligation of the other Party or a condition to its own obligation beyond
those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard
to any other rights of the Party making the waiver of any obligations of the other Party. Delay by
a Party hereto instituting or prosecuting any cause of action or claim hereunder shall not be
deemed a waiver of any rights hereunder.
8.3. Term of Agreement. (a) This Agreement shall remain in effect until the earlier of
(i) the date that is 10 days after the date the City reimburses the Developer in full hereunder, or
(ii) the termination of this Agreement by the Developer pursuant to Section 3.11; provided that
this Agreement may be earlier terminated by the City in its sole discretion at any time after
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failure by the Developer to complete or satisfy a Milestone by the applicable Milestone Payment
Date (as such date may be extended as described in Section 3.4).
(b) Notwithstanding the foregoing provisions of this Section 8.3, Sections 6, 7(a),
7(b), and 8 of this Agreement shall in all events survive the termination of this Agreement.
8.4. Limitation on City Liability. No agreements or provisions contained in this
Agreement nor any agreement, covenant or undertaking by the City contained in any document
in connection with the Development or the Project shall give rise to any pecuniary liability of the
City or a charge against its general credit or taxing powers, or shall obligate the City financially
in any way except with respect to then-available Tax Increment. No failure of the City to
comply with any term, condition, covenant or agreement herein shall subject the City to liability
for any claim for damages, costs or other financial or pecuniary charge except to the extent that
the same can be paid or recovered from then-available Tax Increment; and no execution on any
claim, demand, cause of action or judgment shall be levied upon or collected from the general
credit, general funds or taxing powers of the City (except as such constitute then-available Tax
Increment). Nothing herein shall preclude a proper party in interest from seeking and obtaining
specific performance against the City for any failure to comply with any term, condition,
covenant or agreement herein; provided that no costs, expenses or other monetary relief shall be
recoverable from the City except as may be payable from the Tax Increment. This Agreement
shall not constitute or be construed to give rise to a debt of the City.
8.5. Assignment. This Agreement is unique between the City and Developer and no
Party may assign any rights or privileges, or delegate any duties or obligations under this
Agreement, without first obtaining the written consent of the other Party.
8.6. Successors Bound By Agreement; No Third-Party Beneficiary; No Property
Interest. Subject to compliance with Section 8.5, this Agreement will inure to the benefit of and
be binding upon the Parties to this Agreement and their respective successors in interest and
permitted assignees. This Agreement is for the exclusive benefit of the Parties, does not
constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third
party. This Agreement, by itself, does not create or give rise to a property interest in the Land or
the Development.
8.7. Prior Agreements. This Agreement supersedes, merges and voids any and all
prior discussions, negotiations, agreements and undertakings between the Parties with respect to
the subject matter of this Agreement. The Parties waive and release each other from any claims,
actions, or causes of action that relate in any manner to any prior discussions, negotiations,
agreements and undertakings between the Parties with respect to the subject matter of this
Agreement.
8.8. Entire Agreement. This Agreement, including any exhibits and attachments
hereto, embodies the entire agreement and understanding of the Parties with respect to its subject
matter. All Parties shall be prohibited from offering into evidence in any arbitration or civil
action any terms, conditions, understandings, warranties, statements or representations, whether
oral or written, with respect to the subject matter of this Agreement and that are not contained in
this Agreement.
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8.9. Amendments, Changes and Modifications. This Agreement may be amended and
any of its terms may be modified only by written amendment authorized and signed by the
Parties hereto.
8.10. Headings. The headings of articles and sections in this Agreement are inserted for
convenience of reference only and do not limit or amplify the terms and provisions of the
Agreement in any manner. The headings will be ignored and will not affect the construction of
any provisions of this Agreement.
8.11. Notice. Any formal notice, demand or communication required or permitted by
the terms of this Agreement to be given to the City or the Developer will be in writing and will
be delivered to such Party either: (i) by personal hand-delivery; or (ii) by depositing the same in
the United States mail, certified mail with return receipt requested, addressed to such Party at the
address named below, with postage prepaid thereon. Notice will be deemed complete upon
receipt of the notice pursuant to any of the foregoing methods of notice.
If to City:
City of Bozeman
Attention: Bozeman City Manager
121 N. Rouse Ave.
P.O. Box 1230
Bozeman, MT 59771
If to Developer:
Bozeman Exchange Associates, LLC
Attention: Kim Brown
Rice Mill Building, Suite 400
17 Lockwood Drive
Charleston, SC 29401
The City and the Developer, by notice given hereunder, may designate different addresses to
which subsequent notices, certificates or other communications should be sent.
8.12. Severability. If any provision of this Agreement is declared void or held invalid,
such provision will be deemed severed from this Agreement and the remaining provisions of this
Agreement will otherwise remain in full force and effect.
8.13. Duplicate Originals or Counterparts. This Agreement may be executed in two or
more counterparts, each of which will be deemed to be an original copy of this Agreement and
all of which, when taken together, will be deemed to constitute one and the same agreement.
8.14. Place of Performance. The place of performance of this Agreement will be in the
City of Bozeman, Gallatin County, Montana.
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8.15. Governing Law. This agreement and the legal relations between the Parties
hereto will be governed by and construed in accordance with the laws of the State of Montana,
without giving effect to any choice of law statutes, rules, or principles.
8.16. Dispute Resolution.
(a) Any claim, controversy, or dispute between the Parties, their agents, employees,
or representatives shall be resolved first by negotiation between senior-level personnel from each
Party duly authorized to execute settlement agreements. Upon mutual agreement of the Parties,
the Parties may invite an independent, disinterested mediator acceptable to the Parties to assist in
the negotiated settlement discussions.
(b) If the Parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a court of competent
jurisdiction in compliance with the applicable law and the provisions of this Agreement.
8.17. Further Assurances and Corrective Instruments. The Parties agree that they will,
from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and
delivered, such supplements hereto and such further instruments as may reasonably be required
for correcting any inadequate or incorrect description of the Development or the Project or for
carrying out the expressed intention of this Agreement.
8.18. Reports/Accountability/Public Information. Developer agrees to develop and/or
provide documentation as reasonably requested by the City demonstrating the Developer’s
compliance with the requirements of this Agreement. Developer shall allow the City, its
auditors, and other persons authorized by the City to inspect and copy its books and records for
the purpose of verifying that the monies distributed to Developer pursuant to this Agreement
were used in compliance with this Agreement and all applicable provisions of federal, state, and
local law. The Developer shall not issue any statements, releases or information for public
dissemination regarding this Agreement or the work contemplated hereunder without prior
written approval of the City.
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IN WITNESS WHEREOF, the Parties hereto have caused this Development Agreement
to be executed as of the 10 day of February, 2026.
CITY OF BOZEMAN, MONTANA
By: _______________________________________
Printed Name: Chuck Winn
Title: City Manager
[Signature Page to Development Agreement]
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BOZEMAN EXCHANGE ASSOCIATES, LLC
By:
Name:
Title:
[Signature Page to Development Agreement]
107
A-1
EXHIBIT A
LEGAL DESCRIPTION OF THE LAND
TRACY’S 1ST ADDITION TO BOZEMAN, SECTION 12, TOWNSHIP 2 SOUTH, RANGE 5
EAST , BLOCK E, LOT 1A, PLAT C-17-G, CITY OF BOZEMAN, GALLATIN COUNTY,
MONTANA
108
B-1
EXHIBIT B
DESCRIPTION OF LIGHTING PROJECT
The lighting project includes 20 new light poles and luminaires located on both sides of the street
on 5th Avenue from Main Street to Mendenhall Street, the south side of Mendenhall Street from
5th Avenue to 7th Avenue, and the north side of Main Street from 5th Avenue to 7th Avenue.
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C-1
EXHIBIT C
FORM OF UTILITY EASEMENT
110
D-1
EXHIBIT D
MILESTONES
MILESTONE MILESTONE DATE
Completion of the Lighting Project December 31, 2026
111
E-1-1
EXHIBIT E-1
FORM OF DEVELOPER CERTIFICATE
TO: City of Bozeman, Montana
FROM: Bozeman Exchange Associates, LLC (the “Developer”)
SUBJECT: Initial Installment
This Developer Certificate requests $_________ the initial installment of reimbursement
of the Project, as defined in the Development Agreement between the Developer and the City of
Bozeman, Montana, dated as of ____________, 2026 (the “Development Agreement”).
Capitalized terms used but not otherwise defined herein shall have the respective meanings given
such terms in the Development Agreement.
Pursuant to Section 5.2(f) of the Development Agreement, the undersigned hereby
certifies on behalf of the Developer that:
(a) the expenditures for which reimbursement is requested are listed in
summary form in the attached schedule headed “Project Expenditures;”
(b) invoices paid by the Developer and lien waivers provided by the
contractors or subcontractors corresponding to the expenditures set forth on the attached
Project Expenditures schedule are appended to such schedule;
(c) the amounts for which reimbursement is requested have been paid by the
Developer to contractors, subcontractors, materialmen, engineers, architects or other
persons who or that have performed necessary or appropriate services or supplied
necessary or appropriate materials for the acquisition, construction, renovation,
equipping, and installation of the Project;
(d) the contractor and subcontractors were solicited and retained
competitively and all persons performing work on the Project were paid the Montana
prevailing wage for such work;
(e) no part of the several amounts requested to be paid, as stated in such
certificate, has previously been reimbursed by the City under the Development
Agreement and none of the amounts requested to be paid relate to removal of trees in
connection with the Demolition;
(f) the reimbursement of the amounts requested will not result in a breach of
any of the covenants of the Developer contained in the Development Agreement; and
(g) no litigation has been instituted or is threatened with regard to any
amounts sought to be reimbursed, and binding and enforceable lien waivers have been
obtained from all contractors, subcontractors, materialmen, and others with regard to all
work related to any amounts for which reimbursement is requested.
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E-1-2
The Developer represents that all of the representations of the Developer in Section 2.2 of
the Development Agreement are true and correct as of the date hereof and the Developer is not in
default of the performance of any of its undertakings or obligations under Section 3 of the
Development Agreement as of the date hereof.
Dated: _____________, 20__ Bozeman Exchange Associates, LLC
By:
Authorized Developer Representative
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E-2-1
EXHIBIT E-2
FORM OF DEVELOPER CERTIFICATE
TO: City of Bozeman, Montana
FROM: Bozeman Exchange Associates, LLC (the “Developer”)
SUBJECT: Second Installment
This Developer Certificate requests $_________ as the second installment of
reimbursement of the Project, as defined in the Development Agreement between the Developer
and the City of Bozeman, Montana, dated as of ____________, 2026 (the “Development
Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective
meanings given such terms in the Development Agreement.
Pursuant to Section 5.[3][4](e) of the Development Agreement, the undersigned hereby
certifies on behalf of the Developer that:
(a) the expenditures for which reimbursement is requested are listed in
summary form in the attached schedule headed “Project Expenditures;”
(b) invoices paid by the Developer and lien waivers provided by the
contractors or subcontractors corresponding to the expenditures set forth on the attached
Project Expenditures schedule are appended to such schedule;
(c) the amounts for which reimbursement is requested have been paid by the
Developer to contractors, subcontractors, materialmen, engineers, architects or other
persons who or that have performed necessary or appropriate services or supplied
necessary or appropriate materials for the acquisition, construction, renovation,
equipping, and installation of the Lighting Project;
(d) the contractor and subcontractors were solicited and retained
competitively and all persons performing work on the Lighting Project were paid the
Montana prevailing wage for such work;
(e) no part of the several amounts requested to be paid, as stated in such
certificate, has previously been reimbursed by the City under the Development
Agreement;
(f) the reimbursement of the amounts requested will not result in a breach of
any of the covenants of the Developer contained in the Development Agreement; and
(g) no litigation has been instituted or is threatened with regard to any
amounts sought to be reimbursed, and binding and enforceable lien waivers have been
obtained from all contractors, subcontractors, materialmen, and others with regard to all
work related to any amounts for which reimbursement is requested.
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E-2-2
The Developer represents that all of the representations of the Developer in Section 2.2 of
the Development Agreement are true and correct as of the date hereof and the Developer is not in
default of the performance of any of its undertakings or obligations under Section 3 of the
Development Agreement as of the date hereof.
Dated: _____________, 20__ Bozeman Exchange Associates, LLC
By:
Authorized Developer Representative
115
E-3-1
EXHIBIT E-3
FORM OF DEVELOPER CERTIFICATE
TO: City of Bozeman, Montana
FROM: Bozeman Exchange Associates, LLC (the “Developer”)
SUBJECT: Final Installment
This Developer Certificate requests $_________ as the final installment of
reimbursement of the Project, as defined in the Development Agreement between the Developer
and the City of Bozeman, Montana, dated as of ____________, 2026 (the “Development
Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective
meanings given such terms in the Development Agreement.
Pursuant to Section 5.[3][4](e) of the Development Agreement, the undersigned hereby
certifies on behalf of the Developer that:
(a) the expenditures for which reimbursement is requested are listed in
summary form in the attached schedule headed “Project Expenditures;”
(b) invoices paid by the Developer and lien waivers provided by the
contractors or subcontractors corresponding to the expenditures set forth on the attached
Project Expenditures schedule are appended to such schedule;
(c) the amounts for which reimbursement is requested have been paid by the
Developer to contractors, subcontractors, materialmen, engineers, architects or other
persons who or that have performed necessary or appropriate services or supplied
necessary or appropriate materials for the acquisition, construction, renovation,
equipping, and installation of the Lighting Project;
(d) the contractor and subcontractors were solicited and retained
competitively and all persons performing work on the Lighting Project were paid the
Montana prevailing wage for such work;
(e) no part of the several amounts requested to be paid, as stated in such
certificate, has previously been reimbursed by the City under the Development
Agreement;
(f) the reimbursement of the amounts requested will not result in a breach of
any of the covenants of the Developer contained in the Development Agreement; and
(g) no litigation has been instituted or is threatened with regard to any
amounts sought to be reimbursed, and binding and enforceable lien waivers have been
obtained from all contractors, subcontractors, materialmen, and others with regard to all
work related to any amounts for which reimbursement is requested.
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E-3-2
The Developer represents that all of the representations of the Developer in Section 2.2 of
the Development Agreement are true and correct as of the date hereof and the Developer is not in
default of the performance of any of its undertakings or obligations under Section 3 of the
Development Agreement as of the date hereof.
Dated: _____________, 20__ Bozeman Exchange Associates, LLC
By:
Authorized Developer Representative
117
F-1
EXHIBIT F
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120
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122
123
Memorandum
REPORT TO:City Commission
FROM:David Fine, Economic Development Manager
Brit Fontenot, Economic Development Director
SUBJECT:Resolution Amending a Development Agreement Relating to a Project in the
South Bozeman Technology Tax Increment Financing District (Montana State
University Innovation Campus)
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Resolution
RECOMMENDATION:Authorize the Mayor to sign the amendment to the Development
Agreement.
STRATEGIC PLAN:2.2 Infrastructure Investments: Strategically invest in infrastructure as a
mechanism to encourage economic development.
BACKGROUND:In 2022, Bozeman City Commission approved a Development Agreement
with the master developer of the Montana State University Innovation
Campus to install essential public infrastructure to allow for the future
development of the campus as a place for private investment, MSU
research, and technology transfer. As part of this agreement the developer
used private funds to build the infrastructure with a commitment that tax
increment generated in the district could reimburse eligible costs related to
that public infrastructure. The two primary buildings associated with the
development agreement, an office and manufacturing building leased to
Aurora Innovation, and a flexible multi-tenant building called Engine Works
(formerly Industry), were expected to generate adequate tax increment to
support debt service on bonds to reimburse the developer for up to $3.6
million ($3,599,178) in public infrastructure costs. Preliminary valuations
provided by the Montana Department of Revenue (DOR) suggest that DOR is
meaningfully undervaluing the project, which could lead to a shortage in
future revenue to pay future debt service on tax increment revenue bonds
issued to reimburse the full infrastructure amount. The proposed
amendment to the development agreement addresses this new
information.
The amended development agreement honors the spirit of the original
development agreement to attempt to fully reimburse the developer for the
eligible costs of public infrastructure, while acknowledging that existing
revenue might not support debt service on the full $3.6 million in eligible
costs. The amendment allows the city to issue tax increment revenue bonds
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for a lesser amount (currently estimated at $2.8 million with a debt service
coverage ratio of 1.7), while agreeing to reimburse for the remaining
$799,178 using “Surplus Tax Increment” as defined in the agreement. This
arrangement protects the city by ensuring adequate debt service coverage
for any bond issuance related to the agreement, while making the remaining
payments over time through free cash flow, an arrangement sometimes
referred to as “pay-go”. Pay-go agreements place more risk on the
developer with payments only occurring when there is available tax
increment revenue.
UNRESOLVED ISSUES:None at this time.
ALTERNATIVES:As directed by the City Commission.
FISCAL EFFECTS:This project does not change the original development agreement's intent to
reimburse the developer for the eligible costs of public infrastructure up to
$3,599,178 from tax increment proceeds available in the South Bozeman
Technology District.
Attachments:
Resolution amending Dev Agmt.v2.docx
BZN Development Agreement -- MSUIC.First
Amended.v3.docx
BZN Development Agreement -- MSUIC.v4 signed
executed.pdf
Report compiled on: January 27, 2026
125
RESOLUTION _____
RESOLUTION AMENDING A DEVELOPMENT AGREEMENT RELATING TO A
PROJECT IN THE SOUTH BOZEMAN TECHNOLOGY TAX INCREMENT
FINANCING DISTRICT
BE IT RESOLVED by the City Commission (the “Commission”) of the City of
Bozeman, Montana (the “City”), as follows:
Section 1
Amendment to Development Agreement.
1.01. Pursuant to Resolution No. 5420, adopted by this Commission on June 14, 2022,
the City has entered into a Development Agreement, dated as of June 14, 2022 (the
“Development Agreement”), with Big Sky ICINF, LLC, a Delaware limited liability company
(the “Developer”).
As described in the Development Agreement, Big Sky QF, LLC, a Delaware limited
liability company (“BSQ”) leased approximately 4.87 acres of land located in the District from
Montana State University Innovation Campus, a Montana non-profit corporation (“MSUIC”),
and subleased such land (the “Industry Land”) to Industry Bozeman Property, LLC, a Montana
limited liability company (“IBP”) on May 26, 2022. IBP has undertaken the construction on the
Industry Land of an approximately 86,000 square foot building to be used as flexible commercial
workspace, to include 61,000 square feet of offices and 25,000 square feet of indoor common
space, as well as related site improvements and related improvements (the “INDUSTRY
Project”).
126
Resolution ___________, Amending a Development Agreement Relating to a Project in the South Bozeman
Technology Tax Increment Financing District
2
In addition, BIG SKY AURORA, LLC, a Delaware limited liability company (“BSA”)
leased approximately 4.80 acres of land located in the District from MSUIC and subleased such
land (the “Aurora Land”) to Aurora Operations, Inc., a Delaware corporation (“AOI”) on
February 17, 2022. BSA has undertaken the construction on the Aurora Land of an
approximately 78,000 square foot building to be leased to AOI for use as office space, research
and design activities and potentially manufacturing, as well as related site improvements (the
“Aurora Project” and, together with the INDUSTRY Project, the “Projects”).
In furtherance of the Projects, BSQ and BSA have undertaken the construction of certain
infrastructure improvements, including construction of street, curb, gutter and sidewalk
improvements, street lighting improvements, water and sewer line extensions, storm sewer
infrastructure, utilities, related landscaping and related improvements (collectively, the
“Infrastructure Improvements”).
In the Development Agreement, the City agreed to reimburse the Developer for costs of
the Infrastructure Improvements from tax increment or the proceeds of tax increment revenue
bonds. The Infrastructure Improvements and the Projects are now complete.
1.02. The City and the Developer desire to enter into a First Amendment to the
Development Agreement, substantially in the form attached hereto as Exhibit A, providing that
the City may, in its discretion, issue tax increment revenue bonds to reimburse the Developer for
a portion of the costs of the Infrastructure Improvements, with the expectation that following
increased tax increment revenues in the District, the City would use surplus tax increment
revenues on hand to reimburse the Developer over time for remaining costs of the Infrastructure
Improvements.
1.03. The First Amendment to the Development Agreement is hereby approved,
substantially in the form attached hereto as Exhibit A, with such changes as may be necessary or
desirable and approved by the City Manager. The City Manager (or, in the event of his absence
or inability, his designee) is authorized and directed to execute the First Amendment to the
Development Agreement.
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Resolution ___________, Amending a Development Agreement Relating to a Project in the South Bozeman
Technology Tax Increment Financing District
3
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the ___ day of _________, 2025.
___________________________________
JOEY MORRISON
Mayor
ATTEST:
___________________________________
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
128
Resolution ___________, Amending a Development Agreement Relating to a Project in the South Bozeman
Technology Tax Increment Financing District
CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of
Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of
Resolution No. _____ entitled: “RESOLUTION AMENDING A DEVELOPMENT
AGREEMENT RELATING TO A PROJECT IN THE SOUTH BOZEMAN
TECHNOLOGY TAX INCREMENT FINANCING DISTRICT” (the “Resolution”), on file
in the original records of the City in my legal custody; that the Resolution was duly adopted by the
City Commission of the City at a regular meeting on ______________, and that the meeting was
duly held by the City Commission and was attended throughout by a quorum, pursuant to call and
notice of such meeting given as required by law; and that the Resolution has not as of the date
hereof been amended or repealed.
I further certify that, upon vote being taken on the Resolution at said meeting, the following
Commission members voted in favor thereof:
; voted against the same:
; abstained from voting thereon: ; or
were absent: .
WITNESS my hand and seal officially this ___ day of ___________, 2026.
(SEAL)
__________________________________
MIKE MAAS
City Clerk
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Resolution ___________, Amending a Development Agreement Relating to a Project in the South Bozeman
Technology Tax Increment Financing District
EXHIBIT A
Form of First Amendment to Development Agreement
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1
4920-4340-6461, v. 2
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
(MSU Innovation Campus Project)
This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (this “Amendment”)
is dated as of February 10, 2025 by and between BIG SKY ICINF, LLC (the “Developer”), and
the CITY OF BOZEMAN, MONTANA (the “City”). The Developer and the City are each
individually referred to herein as a “Party” and collectively as the “Parties.”
RECITALS:
WHEREAS, the City and the Developer are parties to that Development Agreement,
dated as of June 14, 2022 (the “Development Agreement”), relating to the construction by the
Developer or its Affiliates of the Projects and the Infrastructure Improvements and the use by the
City of Tax Increment or proceeds of Bonds to reimburse the Developer for costs of the
Infrastructure Improvements, subject to the terms and conditions of the Development Agreement
(all capitalized terms used and not defined herein have the meanings given in the Development
Agreement); and
WHEREAS, the Parties reserved the right in Section 8.9 of the Development Agreement
to amend the Development Agreement by written amendment authorized and signed by the
Parties; and
WHEREAS, the Parties have determined to amend certain provisions of the Development
Agreement.
NOW, THEREFORE, the City and the Developer, each in consideration of the
representations, covenants and agreements of the other, as set forth herein and in the
Development Agreement, mutually represent, covenant and agree as follows:
Section 1. Amendment of Section 5 of the Development Agreement. Section 5 of the
Development Agreement is hereby amended as follows (strikethroughs indicate deletions;
underlining indicates additions):
“Section 5. Payment of Reimbursement Amount for Costs of the Infrastructure
Improvements. Payment of the Reimbursable Amount by the City to the Developer for
costs of the Infrastructure Improvements shall be subject to the following conditions and
in accordance with the following procedures:
5.1 Conditions to Payment or Reimbursement.
(a) (i) The Developer must have completed or satisfied each of the Milestones
by the applicable Milestone Date, as such date may have been extended by the Director
of Economic Development or the City Commission pursuant to Section 3.4 hereof, (ii)
the City must have issued a certificate of occupancy for each of the Projects, (iii) the
Infrastructure Improvements must have been completed in their entirety and the City
must have delivered written acceptance of the Infrastructure Improvements (which may
be in the form of a Certificate of Completion or such other format as required by the
City), and (iv) the Developer must demonstrate to the City’s satisfaction, by a title report
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2
4920-4340-6461, v. 2
or other means acceptable to the City, that the Infrastructure Improvements are free of
financial liens and any encumbrances affecting the Infrastructure Improvements must be
acceptable to the City.
(b) Reimbursement by the City for costs of the Infrastructure Improvements
must be based on paid invoices for costs incurred by the Developer, the Affiliated
Entities, their contractors and subcontractors or utility companies, which the Developer
must supply to the City. The City may reject, in its sole discretion, any invoice related to
the Infrastructure Improvements. The City will notify the Developer of any rejected
invoice and the reason it was rejected. The Parties acknowledge that some
combination of the Developer and the Affiliated Entities will incur and pay the
costs of the Infrastructure Improvements, and the City will not reject any invoice solely
because it was paid by one of the Affiliated Entities rather than the Developer.
Regardless of which entity pays costs incurred with respect to the Projects and the
Infrastructure Improvements, the Developer has the sole right to receive all
reimbursements from City for costs of the Infrastructure Improvements as provided under
the Agreement.
(c) The Parties agree that the City will have no obligation to reimburse any of
the costs of the Infrastructure Improvements unless at the time of such request (i) all of
the Developer’s representations as set forth in Section 2.2 are true and correct, (ii) the
Developer is not in breach of any covenant or undertaking as set forth in Section 3, and
(iii) subject to Section 5.2(b), unless and to the extent the City issues the Bonds, there
shall be adequate Tax Increment available to pay the Reimbursable Amount and satisfy
all other financial obligations related to the District.
(d) The Developer, or other Person(s) responsible for paying such Taxes, shall
have paid Taxes with respect to the Projects through June 2026.
(e) If some or all of the Reimbursable Amount is to be paid with the proceeds
of the Bonds, the City shall have determined, in its sole discretion, but with the
cooperation of the Developer, that the Tax Increment is sufficient to pay the debt service
on the Bonds as and when due, with the target of producing to produce a Coverage Ratio
(as defined in Section 5.2(a)(ii)) with respect to the Bonds of not less than 1.7, and, as
applicable, to satisfy other requirements under the Bond Resolution, such as funding an
adequate reserve, meeting applicable debt service coverage requirements, and paying
Costs of Issuance, and to satisfy all other financial obligations related to the District. The
Developer understands and agrees the City shall have no obligation to and may not issue
the Bonds if the City is unable to find and determine that the Tax Increment is sufficient
to pay the Bonds timely, to produce a Coverage Ratio acceptable to the City, with a
targeted Coverage Ratio of not less than 1.7, to satisfy the requirements of the Bond
Resolution, and to satisfy all other financial obligations related to the District. For the
avoidance of doubt, a Coverage Ratio of 1.7 or higher shall be deemed acceptable to the
City.
If any of the above conditions are not satisfied in the determination of the City, the City
shall have no obligation to reimburse the Developer for any of the costs of the
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4920-4340-6461, v. 2
Infrastructure Improvements and the City’s determination to refrain from reimbursing, or
its inability to reimburse, any of the costs of the Infrastructure Improvements shall not be
or result in a default of this Agreement.
5.2 Process for Reimbursement; Determination of Reimbursable Amount;
Developer Option to Terminate. Subject to the provisions of subsection (c) of this
Section 5.2, the process for reimbursement of the Developer is as follows:
(a) The City will determine the Reimbursable Amount in the following
manner:
(i) Following the payment of Taxes relating to the Projects as
completed for one full Fiscal Year, as described under Section 5.1(d) above, the
Developer shall provide to the City a signed request for reimbursement
substantially in the form attached as Exhibit E hereto and acceptable to the City,
accompanied by the invoices paid by the Developer or the Affiliated Entities and
lien waivers from the contractors or subcontractors performing or that have
performed the work to be reimbursed. In addition, the Developer agrees to
provide to the City any additional information requested by the City for the City
to determine whether the Developer’s request for reimbursement complies with
this Agreement. Based on this Developer certificate and the related information
provided by the Developer, the City Manager or his or her designee shall
determine the actual cost of the Infrastructure Improvements.
(ii) Based on Tax Increment revenues received in the District in the
first Fiscal Year that the assessed and taxable values of the Projects, as completed,
are included in the certified taxable values provided to the City by the Department
of Revenue, and using assumptions regarding interest rates and terms of proposed
Bonds that the City finds reasonable in its sole discretion, the City will determine
the maximum principal amount of the Bonds (including amounts to be used to pay
Costs of Issuance and, if desirable, to fund a debt service reserve account) that can
be issued, with a targeted that produces a Coverage Ratio on the Bonds of not less
than 1.7. “Coverage Ratio” for this purpose means the quotient of (A) Tax
Increment in the first Fiscal Year that assessed and taxable values of the Projects
as completed are reflected in the certified taxable values of the City provided by
the Department of Revenue, divided by (B) projected maximum annual debt
service on the proposed Bonds.
(iii) To the extent that Tax Increment is not sufficient to permit the
issuance of Bonds in a principal amount sufficient to reimburse the Developer for
the full Reimbursable Amount, the City reserves the right to issue Bonds to
reimburse the Developer for a portion of the Reimbursable Amount, and to
reimburse the Developer for the remaining amount of the Reimbursable Amount
from Surplus Tax Increment as such Surplus Tax Increment becomes available.
“Surplus Tax Increment” for this purpose means 50% of the amount of Tax
Increment the City has on hand and available after paying or providing for the
Bonds and any additional tax increment revenue bonds of the District,
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maintaining the required balance on hand in the debt service reserve account and
satisfying any other financial obligations of the District. Payments to the
Developer of Surplus Tax Increment will be made not more than once per fiscal
year, and only to the extent Surplus Tax Increment is available. The City expects
to be able to reimburse the Developer for approximately $2,800,000 of the
Reimbursable Amount from Tax Increment funds then on hand and proceeds of
an initial Bond issuance (the “Initial Targeted Reimbursement”). However, the
parties agree that, if necessary to achieve a Coverage Ratio acceptable to the City
in accordance with Section 5.1(e), the City may proceed with an initial Bond
issuance resulting in reimbursement to the Developer in an amount less than the
Initial Targeted Reimbursement.
(iiiiv) The Reimbursable Amount will be equal to the least lesser of (A)
$3,599,178; or (B) the actual cost of the Infrastructure Improvements determined
as described under Section 5.2(a)(i); and (C) if the Bonds are issued, the proceeds
of the Bonds, less proceeds of the Bonds used to pay Costs of Issuance and, if
desirable, to fund a debt service reserve account; recognizing that the Bonds must
meet the Coverage Ratio determined as described in Section 5.2(a)(ii).
(b) By the date that is five months after the submission by the Developer of a
complete and acceptable request for reimbursement, as determined by the City, the City,
subject to the terms and conditions of this Agreement, shall reimburse to the Developer
such costs of the Infrastructure Improvements, in an amount not to exceed the
Reimbursable Amount, either directly from Tax Increment or from proceeds of Bonds;
provided, however, if the City shall earlier determine that the Tax Increment is not
sufficient to reimburse the Developer for the costs of the Infrastructure Improvements,
either because there is insufficient Tax Increment then available or the City determines
there is insufficient Tax Increment to permit the issuance of Bonds, then the City shall so
inform the Developer in writing and this Agreement shall thereupon terminate and neither
Party will have any further rights or obligations hereunder, except as set forth in those
provisions that expressly survive termination of this Agreement. Provided, however, that
to the extent that the City determines, in its sole discretion, that Tax Increment is not
sufficient to permit the issuance of Bonds in a principal amount sufficient to reimburse
the Developer for the full Reimbursable Amount, the City reserves the right to issue
Bonds to reimburse the Developer for a portion of the Reimbursable Amount, and to
reimburse the Developer for the remaining amount of the Reimbursable Amount from
Surplus Tax Increment. Payments to the Developer of Surplus Tax Increment will be
made not more than once per fiscal year, and only to the extent Surplus Tax Increment is
available.
(c) Alternatively, the Developer may terminate this Agreement by written
notice to the City at any time prior to providing the City with a signed request for
reimbursement as described under Section 5.2(a)(i) above.”
Section 2. Effect of Amendment. The Development Agreement shall be amended
only as specifically set forth in Section 1 above, and shall otherwise remain in full force and
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effect unamended. The amendments set forth in Section 1 above shall be effective as of the date
of this Amendment.
Section 3. Consent to Electronic Signatures. The Parties have consented to execute
this instrument electronically in conformance with the Montana Uniform Electronic Transactions
Act, Title 30, Chapter 18, Part 1, MCA.
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IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to
Development Agreement to be executed as of the _____ day of ___________, 2025.
CITY OF BOZEMAN, MONTANA
By: _______________________________________
Printed Name: Chuck Winn
Title: City Manager
[Signature Page to First Amendment to Development Agreement]
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4920-4340-6461, v. 2
BIG SKY ICINF, LLC
By: Innovation Campus Partners, LLC
By: Bough Development, LLC
By:______________________________________
Loren Bough, Manager
By: Charter MSU, LLC
By:______________________________________
Daniel Zelson, Member of Charter MSU, LLC
[Signature Page to First Amendment to Development Agreement]
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DEVELOPMENT AGREEMENT (MSU Innovation Campus Project)
This DEVELOPMENT AGREEMENT (this “Agreement”) is dated as of June 14, 2022 by and between Big Sky ICINF, LLC (the “Developer”), and the CITY OF BOZEMAN, MONTANA (the “City”). The Developer and the City are each individually referred to herein as a “Party” and collectively as the “Parties.”
RECITALS:
WHEREAS, under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as in effect on December 31, 2012 (the “Technology District Act”), the City was authorized to create technology districts for the purpose of encouraging the location and development of technology infrastructure development projects in the State of Montana (the
“State”), to provide for the segregation and collection of tax increment with respect to property
taxes collected in such technology districts, and to apply tax increment revenues derived from projects undertaken within the technology district to pay eligible costs;
WHEREAS, pursuant to the Technology District Act and Ordinance No. 1844 adopted by the City Commission of the City (the “City Commission”) on December 19, 2012 (the
“Ordinance”), the City has created the South Bozeman Technology Tax Increment Financing
District (the “District”) as a technology district under the Technology District Act. By Resolution No. 4414, adopted by the City Commission on November 5, 2012, the City Commission has adopted the South Bozeman Technology District Comprehensive Development Plan (the “Plan”) as a comprehensive development plan that ensures that the District can host a
diversified tenant base of multiple independent tenants, in accordance with the Technology
District Act. The Plan provides for the segregation and collection of tax increment revenues with respect to the District;
WHEREAS, Big Sky QF, LLC, a Delaware limited liability company (“BSQ”), has leased approximately 4.87 acres of land located in the District from Montana State University
Innovation Campus, a Montana non-profit corporation (“MSUIC”), pursuant to that certain
Ground Lease dated May 26, 2022, and has subleased such land (the “Industry Land”) to Industry Bozeman Property, LLC, a Montana limited liability company (“IBP”) on May 26, 2022. IBP proposes to undertake the construction on the Industry Land of an approximately 86,000 square foot building to be used as flexible commercial workspace, to include 61,000
square feet of offices and 25,000 square feet of indoor common space, as well as related site
improvements and related improvements (the “INDUSTRY Project”); and
WHEREAS, BIG SKY AURORA, LLC, a Delaware limited liability company (“BSA”) has leased approximately 4.80 acres of land located in the District from MSUIC pursuant to that certain Ground Lease dated February 17, 2022, and has subleased such land (the “Aurora
Land”) to Aurora Operations, Inc., a Delaware corporation (“AOI”) on February 17, 2022. BSA
proposes to undertake the construction on the Aurora Land of an approximately 78,000 square foot building to be leased to AOI for use as office space, research and design activities and potentially manufacturing, as well as related site improvements (the “Aurora Project” and, together with the INDUSTRY Project, the “Projects”);
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WHEREAS, in furtherance of the Projects, BSQ and BSA propose to undertake the
construction of certain infrastructure improvements described on Exhibit C attached hereto (as
further defined below, the “Infrastructure Improvements”);
WHEREAS, the Developer, BSQ and BSA are affiliated entities;
WHEREAS, the Industry Land and the Aurora Land are collectively legally described on Exhibit B hereto (collectively, the “Land”);
WHEREAS, pursuant to Resolution No. 5420 adopted on June 14, 2022, after a duly
called and noticed public hearing, the City Commission approved the Projects under the Plan and the Technology District Act and authorized the use of tax increment revenue of the District to reimburse the Developer for certain eligible costs of the Infrastructure Improvements in the maximum amount of the Reimbursable Amount (as hereinafter defined), subject to the terms and
conditions of this Agreement; and
WHEREAS, the City Commission may determine in its sole discretion to issue tax increment revenue bonds in one or more series (the “Bonds”) to finance all or a portion of the costs of the Infrastructure Improvements to be reimbursed to the Developer and pay associated costs of the financing and fund a deposit to a debt service reserve account, if desirable; and
WHEREAS, the Parties desire to enter into this Agreement which sets forth the
obligations and commitments of the Parties with respect to the Infrastructure Improvements.
NOW, THEREFORE, the City and the Developer, pursuant to the Technology District Act, each in consideration of the representations, covenants and agreements of the other, as set forth herein, mutually represent, covenant and agree as follows:
Section 1. Definitions; Rules of Interpretation; Exhibits.
1.1. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context clearly requires otherwise, the following terms have the meanings assigned to them, respectively:
“Affiliated Entities” means BSQ and BSA, as affiliates of the Developer.
“Agreement” means this Development Agreement, dated as of June 14, 2022, by and
between the City and the Developer, as it may be amended or supplemented from time to time in accordance with the terms hereof.
“Aurora Land” has the meaning given in the Recitals above.
“Aurora Project” has the meaning given in the Recitals above.
“Bonds” has the meaning given in the Recitals above.
“BSA” means BIG SKY AURORA, LLC, a Delaware limited liability company, and its successors and assigns.
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“BSQ” means Big Sky QF, LLC, a Delaware limited liability company, and its
successors and assigns.
“City” means the City of Bozeman, Montana, or any successors to its functions under this Agreement.
“City Commission” means the governing body of the City.
“Costs of Issuance” means, if the City issues Bonds, the following costs but only to the
extent incurred in connection with, and allocable to the Bonds: underwriter’s spread, counsel
fees, financial advisor fees, rating agency fees, trustee fees, paying agent fees, bond registrar, certificate, and authentication fees, accounting fees, printing costs for bonds and offering documents, public approval process costs, feasibility study costs, guarantee fees, and similar costs.
“Coverage Requirement” has the meaning given to it in Section 5.2(a)(ii).
“Developer” means Big Sky ICINF, LLC, a Delaware limited liability company, and its successors and assigns in accordance with and as permitted under this Agreement.
“District” means the South Bozeman Technology Tax Increment Financing District, a technology district created by the Ordinance pursuant to the Technology District Act.
“DOR” means the State of Montana Department of Revenue.
“Environmental Laws and Regulations” means and includes the Federal Comprehensive Environmental Compensation Response and Liability Act (“CERCLA” or the “Federal Superfund Act”) as amended by the Superfund Amendments and Reauthorization Act of 1986 (“SARA”), 42 U.S.C. §§ 9601 et seq.; the Federal Resource Conservation and Recovery
Act of 1976 (“RCRA”), 42 U.S.C. §§ 6901 et seq.; the Clean Water Act, 33 U.S.C. § 1321 et
seq.; and the Clean Air Act, 42 U.S.C. §§ 7401 et seq., all as the same may be from time to time amended, and any other federal, state, county, municipal, local or other statute, code, law, ordinance, regulation, requirement or rule which may relate to or deal with human health or the environment including without limitation all land use, zoning, and stormwater control
regulations as well as all regulations promulgated by a regulatory body pursuant to any statute,
code, law, ordinance, regulation, requirement or rule.
“Fiscal Year” means the period commencing on the first day of July of any year and ending on the last day of June of the next calendar year, or any other twelve-month period authorized by law and specified by the Commission as the City’s fiscal year.
“Indemnified Parties” has the meaning given to it in Section 7.1.
“Industry Land” has the meaning given in the Recitals above.
“INDUSTRY Project” has the meaning given in the Recitals above.
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“Infrastructure Improvements” means the design, engineering, work, construction,
materials, equipment, and the other improvements, the costs of which are described as such in
Exhibit C hereto, as the same may be amended or supplemented from time to time, in accordance with the terms hereof.
“Land” has the meaning given in the Recitals above.
“Land Use Regulations” means all federal, state and local laws, rules, regulations,
ordinances and plans relating to or governing the development or use of the Land or the Projects.
“Milestone” of “Milestones” has the meaning given in Section 3.4 hereof.
“Milestone Date” or “Milestone Dates” has the meaning given in Section 3.4 hereof.
“Ordinance” has the meaning given in the Recitals above.
“Person” means any individual, corporation, limited liability company, partnership,
limited liability partnership, joint venture, association, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.
“Prevailing Wage Rates” means the Montana Prevailing Wage Rate for public works projects as published from time to time by and available from the Montana Department of Labor and Industry, Research and Analysis Bureau, P.O. Box 1728, Helena, Montana 59624, telephone
number (800) 541-3904.
“Projects” has the meaning given in the Recitals above.
“Reimbursable Amount” means the least of: (i) $3,599,178; (ii) the actual cost of the Infrastructure Improvements; or (iii) if the Bonds are issued, the proceeds of the Bonds, less proceeds of the Bonds used to pay Costs of Issuance and, if desirable, to fund a debt service
reserve account; recognizing that the Bonds must meet the Coverage Ratio determined as
described in Section 5.2(a)(ii).
“State” means the State of Montana.
“Tax Increment” means the amount received by the City pursuant to the Technology District Act from the extension of levies of Taxes (expressed in mills) against the incremental
taxable value (as defined in the Technology District Act) of all Taxable Property, and shall
include all payments in lieu of Taxes attributable to the incremental taxable value and all payments received by the City designated as replacement revenues for lost Tax Increment.
“Taxable Property” means all real and personal property located in the District and subject to Taxes, including land, improvements and equipment.
“Taxes” means all taxes levied on an ad valorem basis by any Taxing Body against the
Taxable Property (exclusive of the six mill levy for university purposes levied by the State), and shall include all payments in lieu of taxes received by the City with respect to Taxable Property.
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“Taxing Body” means the City; the County of Gallatin, Montana; High School District
No. 7 (Bozeman), Gallatin County, Montana; Elementary School District No. 7 (Bozeman),
Gallatin County, Montana; the State; and any other political subdivision or governmental unit that levies or may hereafter levy or cause to be levied Taxes against property within the District.
“Technology District Act” means Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as in effect on December 31, 2012.
“Unavoidable Delay” means a delay resulting from a cause over which the Party
required to perform does not have control and which cannot or could not have been avoided by the exercise of reasonable care, including but not limited to, acts of God, accidents, war, civil unrest, embargoes, strikes, unavailability of raw materials or manufactured goods, litigation, pandemics, epidemics, labor shortages, unusually inclement weather and the delays of the other
Party or its contractors, agents or employees in the performance of their duties under or incident
to this Agreement.
1.2. Rules of Interpretation.
(a) The words “herein,” “hereof” and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than to any of its
particular sections or subdivisions.
(b) References to any particular section or subdivision hereof are to the section or subdivision of this Agreement in its original signed form, unless otherwise indicated.
(c) The word “or” is not exclusive but is intended to contemplate or encompass one, more or all of the alternatives conjoined.
1.3. Exhibits. The following Exhibits are attached to and by reference made a part of
this Agreement:
Exhibit A: Project Costs
Exhibit B: Description of the Land
Exhibit C: Costs of the Infrastructure Improvements
Exhibit D: Milestones
Exhibit E: Form of Developer Certificate Regarding Costs of the Infrastructure Improvements
Exhibit F: City’s Nondiscrimination and Equal Pay Affirmation
Exhibit G: Form of Developer’s Annual Certification
Section 2. Representations.
2.1. City Representations. The City hereby represents as follows:
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(a) Pursuant to the Technology District Act, and after a public hearing duly called
and held, the City by the Ordinance has duly created the District.
(b) Pursuant to Resolution No. 5420 of the City Commission, the City approved the use of Tax Increment, if available, to reimburse the Costs of the Infrastructure Improvements in a total amount not to exceed the Reimbursable Amount. Subject to the terms and conditions of this Agreement, the City intends to reimburse the Developer for the Costs of the Infrastructure
Improvements in an amount not to exceed the Reimbursable Amount.
(c) The DOR has advised the City that the base taxable value (as defined in the Technology District Act) of the District is $417.
(d) The City Commission has duly authorized the execution and delivery of this Agreement.
(e) The City’s Director of Economic Development is authorized to act on behalf of
the City with respect to implementation of this Agreement, recognizing that certain events or circumstances arising under this Agreement will require City Commission consideration and action, including, without limitation, issuance of the Bonds.
(f) The tax increment financing provision of the District terminates upon the later of
the 15th year following its adoption (December 12, 2012) or payment or provision for payment in
full or discharge of all bonds to which the Tax Increment is pledged. There are currently no bonds outstanding to which the Tax Increment is pledged.
2.2. Developer Representations. The Developer hereby represents as follows:
(a) Each of the Developer, BSQ and BSA is a Delaware limited liability company,
duly formed, validly existing and in good standing under the laws of the State of Delaware and
duly qualified to do business in the State of Montana. The Developer has the power to enter into this Agreement and by all necessary corporate action has duly authorized the execution and delivery of this Agreement.
(b) BSQ has sufficient right, title and interest in the Industry Land to allow BSQ to
construct the applicable Infrastructure Improvements on or adjacent to the Industry Land, and
BSA has sufficient right, title and interest in the Aurora Land to allow BSA to construct the Aurora Project thereon and the applicable Infrastructure Improvements on or adjacent to the Aurora Land.
(c) The Developer and/or BSQ and/or BSA collectively have the financial capability
or commitments to complete the Infrastructure Improvements at an approximate cost of
$3,599,178. BSA has the financial capability or commitments to complete the Aurora Project and, to the best of the Developer’s knowledge, IBP has the financial capability or commitments to complete the INDUSTRY Project. The Projects are estimated to cost an aggregate $85,000,000 to complete.
(d) The Projects are suitable to host a diversified tenant base of multiple, independent
tenants. The Developer acknowledges that the Technology District Act provides that tenants of
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the District must be engaged in technology-based operations within Montana that, through the
employment of knowledge or labor, add value to a product, process, or export service that results
in the creation of new wealth and for which at least 50% of the sales of the business or organization occur outside of Montana or the business or organization is a manufacturing company with at least 50% of its sales to other Montana companies that have 50% of their sales occurring outside of Montana. As set forth in Section 3.13, to the best of its ability, the
Developer will cause the Projects to be operated to meet these requirements.
(e) The Developer is not aware of any facts the existence of which would cause the Developer or the Affiliated Entities to be in violation in any material respect of any Environmental Laws and Regulations applicable to the Projects or the Infrastructure Improvements. None of the Developer nor the Affiliated Entities has not received from any
local, state or federal official any notice or communication indicating that the development
activities of the Developer or the Affiliated Entities have been, may be or will be in violation of any Environmental Laws and Regulations applicable to the Projects or the Infrastructure Improvements.
(f) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions hereof is prohibited or limited by, conflicts with or results in a breach of the terms, conditions or provisions of the certificate of formation, partnership agreement or operating agreement of the Developer or the Affiliated or any evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or
constitutes a default under any of the foregoing.
(g) There is no action, suit, investigation or proceeding now pending or, to the knowledge of the Developer, threatened against or affecting the Developer, the Affiliated Entities or their respective businesses, operations, properties or condition (financial or otherwise) before or by any governmental department, commission, board, authority or agency, or any
court, arbitrator, mediator or grand jury, that could, individually or in the aggregate, materially
and adversely affect the ability of the Developer or the Affiliated Entities to perform under this Agreement.
(h) The Developer acknowledges and agrees that the sole source of funds for reimbursing the Developer under this Agreement is Tax Increment and/or proceeds of the Bonds,
which would be paid from Tax Increment. The Developer further acknowledges and agrees the
amount of Tax Increment is dependent upon a number of variables, including, without limitation, the taxable value of the Projects, the number of mills levied by Taxing Bodies, and then-prevailing state laws regarding computation of Tax Increment. The Developer agrees that if Tax Increment in the amount of $3,599,178 is not available to the City to reimburse the Developer
and/or, if the City, in its sole discretion, determines that it cannot reasonably sell the Bonds,
whether due to lack of Tax Increment, market conditions, or otherwise, the City shall have no obligation to pay to the Developer the Reimbursable Amount described in Section 4. The Developer agrees that such event shall not constitute a default by the City hereunder.
(i) The Developer currently estimates that, beginning in tax year 2025 (fiscal year
ending June 30, 2026), the completed Projects are expected to generate tax revenues in the
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approximate amount of $800,000 annually. The Developer acknowledges and agrees that the
estimates of assessed (market) and taxable values set forth in this Agreement (and any resulting
estimates of Tax Increment) are estimates only and are based on information provided by the Developer to the City and various assumptions. Actual assessed (market) and taxable values of the Projects and actual Tax Increment generated by the Projects or in the District may vary significantly based on variables over which the City has no control.
(j) The Developer acknowledges and agrees that the Bonds, if authorized and issued,
are special, limited obligations of the City and shall not be paid from any funds of the City other than Tax Increment. The Developer understands and agrees the Bonds, if authorized and issued, will be subject to all the terms and conditions of the bond resolution authorizing their issuance (the “Bond Resolution”). The Developer acknowledges and agrees that an event of default or
default under the Bonds or the Bond Resolution does not constitute a default under this
Agreement, unless the event of default or default is a result of the failure by the Developer to perform an obligation of the Developer identified in the Bond Resolution.
Section 3. Developer Undertakings.
3.1. Construction and Maintenance of Projects. The Developer hereby agrees and
commits to the City that it will diligently prosecute or cause to be prosecuted to completion the
construction of the Projects in accordance with this Agreement, the site plan submitted to the City and all applicable federal, State and local laws, rules, regulations, ordinances and plans relating to or governing the development or use of the Projects, including applicable Land Use Regulations and Environmental Laws and Regulations. The Developer agrees and commits to
the City that construction of the Projects and Infrastructure Improvements shall be substantially
complete by October 1, 2025, subject to Unavoidable Delays. The projected costs of the Projects and Infrastructure Improvements are shown on Exhibit A hereto. At all times during the term of this Agreement, the Developer will operate and maintain, preserve and keep the Projects or cause the Projects to be operated, maintained, preserved and kept for the purposes for which each was
constructed, and with the appurtenances and every part and parcel thereof in good repair and
condition. Upon twenty-four (24) hours prior written notice, the Developer agrees to permit the City and any of its officers, employees or agents access to the Land for the purpose of inspection of all work being performed in connection with the Projects and Infrastructure Improvements; provided, however, that the City shall have no obligation to inspect such work.
3.2. Preparation, Review and Approval of Construction Plans. In connection with the
Projects and Infrastructure Improvements, the Developer shall prepare and submit or shall cause the Affiliated Entities to prepare and submit, in each case, at its sole expense, construction plans, drawings, and related documents for each portion of each of the Projects and the Infrastructure Improvements to the appropriate City officials for architectural, engineering or land use review
and written approval or permits. The Developer acknowledges that no review or approval by
City officials hereunder may be in any way construed by the Developer to replace, override or be in lieu of any required review, inspection, or approval by the City or any other building construction official review or approvals required by any State laws or local ordinances or regulations. Nothing contained in this Agreement indicates or evidences that the City has
approved or will approve either of the Projects, the Infrastructure Improvements, or any portion
thereof. This Agreement does not affect or limit the City’s regulatory powers with regard to the
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Projects or the Infrastructure Improvements, including, without limitation, those relating to
building permits or other permits or the payment of fees. As further described in Section 7.1, the
City shall have no liability and the Developer shall hold the City harmless with respect to any increases in costs of the Projects or the Infrastructure Improvements related to or arising out of delays resulting from the City’s regulatory actions or approvals.
3.3. Construction of the Infrastructure Improvements. The Developer shall acquire,
install, construct or otherwise provide the Infrastructure Improvements, or shall cause the
Affiliated Entities to do so. The Developer acknowledges and agrees that the City is not responsible for acquiring, installing, constructing or otherwise providing the Infrastructure Improvements. The estimated costs of the Infrastructure Improvements are shown on Exhibit C hereto.
3.4. Milestones of the Projects and Infrastructure Improvements. Certain steps in the
development of the Projects and Infrastructure Improvements are listed on Exhibit D attached hereto (collectively, the “Milestones”; each a “Milestone”), together with the dates by which the Developer is obligated to complete the Milestones (collectively, the “Milestone Dates”; each as it relates to a particular Milestone, the “Milestone Date”). The Developer acknowledges and
agrees that the City in reserving or offering to make available Tax Increment to reimburse the
Developer for the costs of the Infrastructure Improvements (up to the Reimbursable Amount) necessarily means that certain Tax Increment is not available reimburse other undertakings or costs for the benefit of the District and that the City reasonably expects additional Tax Increment as a result of completion of each of the Projects. The Developer acknowledges and agrees that
conditioning the availability of Tax Increment or proceeds of Bonds to reimburse the Developer
for the costs of the Infrastructure Improvements on completion or satisfaction of the Milestones by the corresponding Milestone Dates is reasonable. If a Milestone cannot be completed or satisfied by the corresponding Milestone Date, the Developer shall make a formal written request to the Director of Economic Development, with appropriate supporting material, to extend the
Milestone Date and, as appropriate, subsequent Milestone Dates. The Director of Economic
Development may, in his or her sole discretion, (i) determine whether such extension is appropriate and, if so, fix a new and superseding Milestone Date and also adjust other subsequent Milestone Dates, along with any other terms or conditions, or (ii) refer the request to the City Commission to either approve the extension and adjust other Milestone Dates, as
appropriate, or, in its sole discretion, terminate this Agreement, in which case the City will have
no obligation to reimburse the Developer hereunder.
3.5. Prevailing Wage Rates; Competitive Bidding. The Developer understands that the City is obligated to follow certain laws with respect to the expenditure of public funds, which includes Tax Increment. The Developer agrees to comply and to cause the Affiliated Entities to
comply with laws that govern City contracting obligations, including public procurement laws
relating to all of the Infrastructure Improvements, such as, without limitation, laws and rules regarding prevailing wage and solicitation of work on a competitive basis.
Without limitation of the foregoing, the Developer agrees that in the awarding of contracts for the Infrastructure Improvements (i) it will cause the Affiliated Entities and their
contractors to publicly bid competitively contracts for each component of the Infrastructure
Improvements, and (ii) through the contract(s) with the applicable contractor(s), the Developer
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and the Affiliated Entities will, in addition to the requirements of Sections 3.9 and 3.10, require
such contractor to, pay the Prevailing Wage Rates on such contracts related to the Infrastructure
Improvements. The Developer will provide to the City all documentation requested to verify the compliance of the Developer, the Affiliated Entities and the applicable contractor with the foregoing requirements. Failure of the Developer, the Affiliated Entities or the applicable contractor to bid competitively contracts for each component of the Infrastructure Improvements
or to require contracts entered into directly with contractors or sub-contractors to include
provisions requiring the contractor or sub-contractor to pay the Prevailing Wage Rates on the work related to the Infrastructure Improvements will be considered a breach of this Agreement and the City will be entitled, at its discretion and without obligation, to exercise any and all measures to assure compliance and retroactive compensation plus interest to workers not paid in
accordance with this Agreement, and recovery of any penalty or fine assessed by the State
attributed to any failure to pay the Prevailing Wage Rates. Additionally, the Developer acknowledges that a violation of these requirements may, in the City’s sole discretion, cause the Infrastructure Improvements to be ineligible for the application of Tax Increment, in which case the City will have no obligation to reimburse the Developer hereunder.
3.6. Utilities. The Developer shall not and shall ensure that the Affiliated Entities do
not interfere with, or construct any improvements over, any public street or utility easement without the prior written approval of the City. All connections to public utility lines and facilities shall be subject to approval of the City and any private utility company involved. The Developer at its own expense shall replace any public facilities or utilities damaged during the
Projects or the Infrastructure Improvements by the Developer, the Affiliated Entities, IBP, AOI,
their respective agents or by others acting on behalf of or under their direction or control of the Developer or the Affiliated Entities, IBP or AOI.
3.7. Permits and Compliance With Laws. The Developer will obtain or will cause the Affiliated Entities to obtain, in a timely manner, all required permits, licenses and approvals, and
will meet or will cause the Affiliated Entities to meet all requirements of all local, state and
federal laws, rules and regulations which must be obtained or met in connection with the acquisition and construction of the Projects and the Infrastructure Improvements. Without limiting the foregoing, the Developer will request and seek (or will cause the Affiliated Entities to request and seek) to obtain from the City or other appropriate governmental authority all
necessary land use, zoning, and building permits. The Developer will comply and will cause the
Affiliated Entities to comply in all material respects with all Environmental Laws and Regulations applicable to the construction, acquisition, and operation of the Projects and the Infrastructure Improvements, will obtain any and all necessary environmental reviews, licenses or clearances under, and will comply in all material respects with, Environmental Laws and
Regulations. In addition, the Developer shall comply and shall cause the Affiliated Entities to
comply fully with all applicable state and federal laws, regulations, and municipal ordinances related to worker safety including but not limited to the Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City, County, and State building and electrical codes, and the Americans
with Disabilities Act.
3.8. Easements. To the extent that the Infrastructure Improvements are to be located on the Land, the Developer hereby agrees to grant (or to cause the Affiliated Entities to grant) to
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the City and applicable utility companies from time to time such easements, rights-of-way and
similar licenses in a form required by the City and as are reasonably necessary to permit the City
to own, operate and maintain the Infrastructure Improvements.
3.9. Nondiscrimination and Equal Pay Affirmation. The Developer agrees to require and to cause the Affiliated Entities to require their contractor(s) to be in compliance with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit F, as well as
Title 49, Montana Code Annotated, regarding activities related to the Projects and the
Infrastructure Improvements. The Developer agrees that in all contracts that it or the Affiliated Entities enter into with contractors, such contractors will be required to require its subcontractors to comply with the City’s Nondiscrimination and Equal Pay Affirmation attached hereto as Exhibit F, as well as Title 49, Montana Code Annotated, regarding activities related to the
Projects and the Infrastructure Improvements. The Developer agrees to provide copies of all such
contracts upon request by the City.
3.10. Worker’s Compensation Insurance. The Developer shall provide and shall require the Affiliated Entities to provide in all construction contracts related to the Projects and the Infrastructure Improvements with all of their respective contractors that such contractors are
to be covered by a Worker’s Compensation insurance program with the State, a private insurance
carrier, or an approved self-insurance plan in accordance with State law.
3.11. Cooperation with City and DOR. The Developer agrees to provide to the City and, as requested, the DOR information that may be required by the City and/or the DOR to determine, or make reasonable projections regarding, the amount and timing of receipt of Tax
Increment resulting from the Projects. Such information may include, but is not limited to
timing of construction and estimated completion dates of all or portions of the Projects, costs of construction, materials used in construction, uses of the Projects or any portion thereof, allocations of uses to spaces and square feet of spaces included in each of the Projects, and any other information that may be relevant. The Developer understands and agrees that the City will
rely on such information from the Developer in making determinations regarding the amount of
Tax Increment resulting from the Projects that may be available and the timing of the availability of Tax Increment resulting from the Projects, and that such information may be a critical factor in the City’s determination regarding whether to issue and the sizing and other features of the Bonds.
3.12. Reserved.
3.13. Tenant Requirements; Reporting. Through the subleases with each of IBP and AOI, the Affiliated Entities have specified permissible uses of the Projects, including permissible tenants of each of the Projects. The Developer represents that, to its actual knowledge, the permissible uses and permitted tenants of the Projects, as set forth in the subleases, are in
furtherance of the requirements of the Technology District Act that tenants of the District must
be engaged in technology-based operations within Montana that, through the employment of knowledge or labor, add value to a product, process, or export service that results in the creation of new wealth and for which at least 50% of the sales of the business or organization occur outside of Montana or the business or organization is a manufacturing company with at least
50% of its sales to other Montana companies that have 50% of their sales occurring outside of
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Montana. To the best of its ability, the Developer will cause the Projects to be operated to meet
the requirements of the Technology District Act that tenants of the District must be engaged in
technology-based operations within Montana that, through the employment of knowledge or labor, add value to a product, process, or export service that results in the creation of new wealth and for which at least 50% of the sales of the business or organization occur outside of Montana or the business or organization is a manufacturing company with at least 50% of its sales to other
Montana companies that have 50% of their sales occurring outside of Montana. Not later than
January 15 of each calendar year during the term of this Agreement after the Projects are placed in service, the Developer shall deliver to the City a certification to this effect, substantially in the form attached as Exhibit G.
Section 4. City Undertakings. Subject to satisfaction of all conditions in Section 5
below, and solely from Tax Increment on hand or proceeds of the Bonds, the City agrees to
reimburse the Developer for the costs of the Infrastructure Improvements in an amount not to exceed the Reimbursable Amount. The Parties acknowledge and agree that, subject to the terms and conditions of this Agreement, (i) the actual sum of all costs of the Infrastructure Improvements may exceed $3,599,178, but the Reimbursable Amount is the maximum amount
that the City will reimburse the Developer for the Infrastructure Improvements; and (ii) if the
actual sum of all costs of the Infrastructure Improvements exceeds the Reimbursable Amount, the City has discretion to allocate the Reimbursable Amount among the costs of the Infrastructure Improvements as it sees fit. Subject to the Coverage Ratio requirement described in Section 5.2(a)(ii), the City may issue the Bonds in its sole discretion to finance the
Reimbursable Amount. The Bonds, if authorized and issued, will have such terms and
conditions as are approved by the City Commission. This Agreement does not require or imply that the City has any obligation to issue the Bonds.
Section 5. Payment of Reimbursement Amount for Costs of the Infrastructure Improvements. Payment of the Reimbursable Amount by the City to the Developer for costs of
the Infrastructure Improvements shall be subject to the following conditions and in accordance
with the following procedures:
5.1. Conditions to Payment or Reimbursement.
(a) (i) The Developer must have completed or satisfied each of the Milestones by the applicable Milestone Date, as such date may have been extended by the Director of Economic
Development or the City Commission pursuant to Section 3.4 hereof, (ii) the City must have
issued a certificate of occupancy for each of the Projects, (iii) the Infrastructure Improvements must have been completed in their entirety and the City must have delivered written acceptance of the Infrastructure Improvements (which may be in the form of a Certificate of Completion or such other format as required by the City), and (iv) the Developer must demonstrate to the City’s
satisfaction, by a title report or other means acceptable to the City, that the Infrastructure
Improvements are free of financial liens and any encumbrances affecting the Infrastructure Improvements must be acceptable to the City.
(b) Reimbursement by the City for costs of the Infrastructure Improvements must be based on paid invoices for costs incurred by the Developer, the Affiliated Entities, their
contractors and subcontractors or utility companies, which the Developer must supply to the
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City. The City may reject, in its sole discretion, any invoice related to the Infrastructure
Improvements. The City will notify the Developer of any rejected invoice and the reason it was
rejected. The Parties acknowledge that some combination of the Developer and the Affiliated Entities will incur and pay the costs of the Infrastructure Improvements, and the City will not reject any invoice solely because it was paid by one of the Affiliated Entities rather than the Developer. Regardless of which entity pays costs incurred with respect to the Projects and the
Infrastructure Improvements, the Developer has the sole right to receive all reimbursements from
City for costs of the Infrastructure Improvements as provided under the Agreement.
(c) The Parties agree that the City will have no obligation to reimburse any of the costs of the Infrastructure Improvements unless at the time of such request (i) all of the Developer’s representations as set forth in Section 2.2 are true and correct, (ii) the Developer is
not in breach of any covenant or undertaking as set forth in Section 3, and (iii) unless and to the
extent the City issues the Bonds, there shall be adequate Tax Increment available to pay the Reimbursable Amount and satisfy all other financial obligations related to the District.
(d) The Developer, or other Person(s) responsible for paying such Taxes, shall have paid Taxes with respect to the Projects for one full Fiscal Year after the assessed and taxable
values of both of the Projects, as completed, are reflected in the certified taxable values of the
City provided by the Department of Revenue. For example, if the Projects are completed in July 2024, the value of the Projects as completed will be assessed by the Department of Revenue in January 2025; included in certified values provided to the City in August 2025; and the Taxes due on November 30, 2025 and May 31, 2026 (Fiscal Year 2025/26) with respect to the Projects
must be paid before the Developer is eligible for reimbursement.
(e) If some or all of the Reimbursable Amount is to be paid with the proceeds of the Bonds, the City shall have determined, in its sole discretion, but with the cooperation of the Developer, that the Tax Increment is sufficient to pay the debt service on the Bonds as and when due, to produce a Coverage Ratio (as defined in Section 5.2(a)(ii)) with respect to the Bonds of
not less than 1.7, and, as applicable, to satisfy other requirements under the Bond Resolution,
such as funding an adequate reserve, meeting applicable debt service coverage requirements, and paying Costs of Issuance, and to satisfy all other financial obligations related to the District. The Developer understands and agrees the City shall have no obligation to and may not issue the Bonds if the City is unable to find and determine that the Tax Increment is sufficient to pay the
Bonds timely, to produce a Coverage Ratio of not less than 1.7, to satisfy the requirements of the
Bond Resolution, and to satisfy all other financial obligations related to the District.
If any of the above conditions are not satisfied in the determination of the City, the City shall have no obligation to reimburse the Developer for any of the costs of the Infrastructure Improvements and the City’s determination to refrain from reimbursing, or its inability to
reimburse, any of the costs of the Infrastructure Improvements shall not be or result in a default
of this Agreement.
5.2. Process for Reimbursement; Determination of Reimbursable Amount; Developer Option to Terminate. Subject to the provisions of subsection (c) of this Section 5.2, the process for reimbursement of the Developer is as follows:
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(a) The City will determine the Reimbursable Amount in the following manner:
(i) Following the payment of Taxes relating to the Projects as completed for
one full Fiscal Year, as described under Section 5.1(d) above, the Developer shall provide to the City a signed request for reimbursement substantially in the form attached as Exhibit E hereto and acceptable to the City, accompanied by the invoices paid by the Developer or the Affiliated Entities and lien waivers from the contractors or
subcontractors performing or that have performed the work to be reimbursed. In
addition, the Developer agrees to provide to the City any additional information requested by the City for the City to determine whether the Developer’s request for reimbursement complies with this Agreement. Based on this Developer certificate and the related information provided by the Developer, the City Manager or his or her
designee shall determine the actual cost of the Infrastructure Improvements.
(ii) Based on Tax Increment revenues received in the District in the first Fiscal Year that the assessed and taxable values of the Projects, as completed, are included in the certified taxable values provided to the City by the Department of Revenue, and using assumptions regarding interest rates and terms of proposed Bonds that the City finds
reasonable in its sole discretion, the City will determine the maximum principal amount
of the Bonds (including amounts to be used to pay Costs of Issuance and, if desirable, to fund a debt service reserve account) that can be issued that produces a Coverage Ratio on the Bonds of not less than 1.7. “Coverage Ratio” for this purpose means the quotient of (A) Tax Increment in the first Fiscal Year that assessed and taxable values of the Projects
as completed are reflected in the certified taxable values of the City provided by the
Department of Revenue, divided by (B) projected maximum annual debt service on the proposed Bonds.
(iii) The Reimbursable Amount will be equal to the least of (A) $3,599,178; (B) the actual cost of the Infrastructure Improvements determined as described under
Section 5.2(a)(i); and (C) if the Bonds are issued, the proceeds of the Bonds, less
proceeds of the Bonds used to pay Costs of Issuance and, if desirable, to fund a debt service reserve account; recognizing that the Bonds must meet the Coverage Ratio determined as described in Section 5.2(a)(ii).
(b) By the date that is five months after the submission by the Developer of a
complete and acceptable request for reimbursement, as determined by the City, the City, subject
to the terms and conditions of this Agreement, shall reimburse to the Developer such costs of the Infrastructure Improvements, in an amount not to exceed the Reimbursable Amount, either directly from Tax Increment or from proceeds of Bonds; provided, however, if the City shall earlier determine that the Tax Increment is not sufficient to reimburse the Developer for the costs
of the Infrastructure Improvements, either because there is insufficient Tax Increment then
available or the City determines there is insufficient Tax Increment to permit the issuance of Bonds, then the City shall so inform the Developer in writing and this Agreement shall thereupon terminate and neither Party will have any further rights or obligations hereunder, except as set forth in those provisions that expressly survive termination of this Agreement.
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(c) Alternatively, the Developer may terminate this Agreement by written notice to
the City at any time prior to providing the City with a signed request for reimbursement as
described under Section 5.2(a)(i) above.
Section 6. Sources of Repayment; Covenants to Pay Taxes.
6.1. Taxes. The Developer shall pay or cause to be paid when due and prior to the imposition of penalty all Taxes and all installments of any special assessments payable with
respect to the Land and the Projects and any improvements thereto or extension thereof.
6.2. Maintenance of Land and Projects. The Developer agrees to use its commercially reasonable best efforts to maintain and operate the Land and the Projects (or to cause the Land and the Projects to be maintained and operated) so that the Developer or other Person responsible will be able at all times to pay promptly and when due all property taxes levied with respect to
the Land and the Projects.
6.3. Injunction; Specific Performance. The Parties agree that, in the event of a breach of this Section 6 by the Developer or its successors or assigns, the City would suffer irreparable harm. Therefore, in the event the Developer or its successors or assigns fails to comply with the provisions of this Section 6, the Developer agrees that the City, subject to any notice and cure
period in this Agreement, may pursue any remedy at law or in equity, including, without
limitation, the remedies of injunction and specific performance.
Section 7. Indemnification and Insurance.
7.1. Indemnification. The Developer releases the City and all City Commission members, board members, officers, agents, servants and employees of the City (the
“Indemnified Parties”) from, and covenants and agrees that the Indemnified Parties shall not be
liable for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss, damage, cost (including reasonable attorneys’ fees), claim, demand, suit, action or other proceeding whatsoever (i) arising or purportedly arising out of, or resulting or purportedly resulting from, the acquisition and construction of the Projects, including the Infrastructure
Improvements, any violation by the Developer of any agreement, condition or covenant of this
Agreement, the ownership, maintenance and operation of the Projects, or the presence on any portion of the Land, of any dangerous, toxic or hazardous pollutants, contaminants, chemicals, waste, materials or substances; or (ii) which is proximately caused by the Developer or its officers, agents, contractors, consultants or employees.
7.2. Insurance. Developer shall, or shall cause the Affiliated Entities to, keep and
maintain the Projects at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with facilities of the type and size comparable to the Projects, and the Developer shall, or shall cause the Affiliated Entities to, carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the
premiums for direct damage insurance covering all risks of loss, including, but not limited to, the
following:
1. fire 2. extended coverage perils
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3. vandalism and malicious mischief
4. boiler explosion (but only if steam boilers are present)
5. collapse
on a replacement cost basis in an amount equivalent to the Full Insurable Value thereof. “Full Insurable Value” shall include the actual replacement cost of the Projects, exclusive of foundations and footings, without deduction for architectural, engineering, legal or
administrative fees or for depreciation. The policies required by this Section 7.2 shall be subject
to a no coinsurance clause or contain an agreed amount clause, and must contain a deductibility provision not exceeding $100,000.
Subject to the terms of any mortgage relating to the Projects, policies of insurance required by this Section 7.2 shall insure and be payable to Developer, and shall provide for
release of insurance proceeds to Developer for restoration of loss. The City shall be furnished
certificates showing the existence of such insurance. In case of loss, Developer is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest.
During construction of the Projects, any and all of the foregoing insurance policies may be maintained by the applicable contractor; provided that once the Projects are placed into
service, Developer shall maintain or cause to be maintained all of the foregoing insurance
policies. In addition, as a condition to placing the Projects in service, the City may require that the Developer or owner of the Projects obtain additional insurance that would protect the City or the City’s interest in the Infrastructure Improvements.
In addition to and independent of the above, the Developer shall secure or cause the
Affiliated Entities to secure liability insurance through an insurance company or companies duly
licensed and authorized to conduct insurance business in Montana. The insurance shall not contain any exclusion for liabilities specifically assumed by the Developer in this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City in relation to
construction of the Projects and the Infrastructure Improvements without limit and without
regard to the cause therefore. The Developer must furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows:
Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate
The above amounts shall be exclusive of defense costs. The City, its officers, agents, and
employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on the Commercial General Liability policy. The insurance and required endorsements must be in a form suitable to City and shall include no less than a thirty (30) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements
prior to the Developer commencing work on Projects or Infrastructure Improvements. Developer
must notify the City within two (2) business days of Developer’s receipt of notice that any required insurance coverage will be terminated or Developer’s decision to terminate any required insurance coverage for any reason.
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Section 8. General Provisions.
8.1. Conflicts of Interest; City’s Representatives Not Individually Liable. The
Developer represents that it does not employ, retain, or contract with an officer or employee of the City and that no member, officer or employee of the City has a personal or financial interest, direct or indirect, in this Agreement or in the Projects, or a financial interest in the Infrastructure Improvements. No member, officer or employee of the City shall be personally liable to
Developer in the event of any default under or breach of this Agreement by the City, or for any
amount that may become due to Developer for any obligation issued under or arising from the terms of this Agreement.
8.2. Rights Cumulative. The rights and remedies of the Parties of this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by any
Party hereto of any one or more of such remedies shall not preclude the exercise by such Party,
at the same or different times, of any other remedy for the same default or breach or of any of its remedies for any other default or breach of the Party subject to the limitation of remedies provided herein. No waiver made by such Party with respect to the performance or the manner or time thereof, of any obligation under this Agreement, shall be considered a waiver with
respect to the particular obligation of the other Party or a condition to its own obligation beyond
those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the Party making the waiver of any obligations of the other Party. Delay by a Party hereto instituting or prosecuting any cause of action or claim hereunder shall not be deemed a waiver of any rights hereunder.
8.3. Term of Agreement. This Agreement shall remain in effect until the date that it
terminates or is terminated, as follows:
(a) If the Reimbursable Amount is paid directly from Tax Increment and not proceeds of Bonds, this Agreement will terminate on the date that is 10 days after the date the City makes the final payment of the Reimbursable Amount to the Developer hereunder.
(b) If the City issues Bonds, this Agreement will remain in effect until the final
maturity or payment date of the Bonds or such earlier date that the Bonds are prepaid in full, discharged, and no longer outstanding.
(c) This Agreement may be terminated by the City in its sole discretion on a date earlier than described in (a) or (b) above at any time after failure by the Developer to complete or
satisfy a Milestone by the applicable Milestone Payment Date (as such date may be extended as
described in Section 3.4).
(d) If the City has determined Tax Increment is insufficient under Section 5.2(b) above, this Agreement shall terminate in the manner and on the date described in Section 5.2(b) above.
(e) Prior to submitting a request for reimbursement, the Developer may terminate this
Agreement in the manner described in Section 5.2(c) above.
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8.4. Limitation on City Liability. No agreements or provisions contained in this
Agreement nor any agreement, covenant or undertaking by the City contained in any document
in connection with the Projects or the Infrastructure Improvements shall give rise to any pecuniary liability of the City or a charge against its general credit or taxing powers, or shall obligate the City financially in any way except with respect to then-available Tax Increment. No failure of the City to comply with any term, condition, covenant or agreement herein shall
subject the City to liability for any claim for damages, costs or other financial or pecuniary
charge except to the extent that the same can be paid or recovered from then-available Tax Increment; and no execution on any claim, demand, cause of action or judgment shall be levied upon or collected from the general credit, general funds or taxing powers of the City (except as such constitute then-available Tax Increment). Nothing herein shall preclude a proper party in
interest from seeking and obtaining specific performance against the City for any failure to
comply with any term, condition, covenant or agreement herein; provided that no costs, expenses or other monetary relief shall be recoverable from the City except as may be payable from the Tax Increment. This Agreement shall not constitute or be construed to give rise to a debt of the City.
8.5. Assignment. This Agreement is unique between the City and Developer and no
Party may assign any rights or privileges, or delegate any duties or obligations under this Agreement, without first obtaining the written consent of the other Party. Notwithstanding the foregoing, the Developer may assign this Agreement and its rights and responsibilities hereunder to a special purpose entity formed by the Developer to own the Projects. Developer shall
provide notice of any assignment to the City.
8.6. Successors Bound By Agreement; No Third Party Beneficiary; No Property Interest. Subject to compliance with Section 8.5, this Agreement will inure to the benefit of and be binding upon the Parties to this Agreement and their respective successors in interest and permitted assignees. This Agreement is for the exclusive benefit of the Parties, does not
constitute a third-party beneficiary agreement, and may not be relied upon or enforced by a third
party. This Agreement, by itself, does not create or give rise to a property interest in the Land or the Projects.
8.7. Prior Agreements. This Agreement supersedes, merges and voids any and all prior discussions, negotiations, agreements and undertakings between the Parties with respect to
the subject matter of this Agreement. The Parties waive and release each other from any claims,
actions, or causes of action that relate in any manner to any prior discussions, negotiations, agreements and undertakings between the Parties with respect to the subject matter of this Agreement.
8.8. Entire Agreement. This Agreement, including any exhibits and attachments
hereto, embodies the entire agreement and understanding of the Parties with respect to its subject
matter. All Parties shall be prohibited from offering into evidence in any arbitration or civil action any terms, conditions, understandings, warranties, statements or representations, whether oral or written, with respect to the subject matter of this Agreement and that are not contained in this Agreement.
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8.9. Amendments, Changes and Modifications. This Agreement may be amended and
any of its terms may be modified only by written amendment authorized and signed by the
Parties hereto.
8.10. Headings. The headings of articles and sections in this Agreement are inserted for convenience of reference only and do not limit or amplify the terms and provisions of the Agreement in any manner. The headings will be ignored and will not affect the construction of
any provisions of this Agreement.
8.11. Notice. Any formal notice, demand or communication required or permitted by the terms of this Agreement to be given to the City or Developer will be in writing and will be delivered to such Party either: (i) by personal hand-delivery; or (ii) by depositing the same in the United States mail, certified mail with return receipt requested, addressed to such Party at the
address named below, with postage prepaid thereon. Notice will be deemed complete upon
receipt of the notice pursuant to any of the foregoing methods of notice.
If to City: City of Bozeman
Attention: Bozeman City Manager
121 N. Rouse Ave. P.O. Box 1230 Bozeman, MT 59771
If to Developer:
Big Sky ICINF, LLC Attention: [_________] [_________]
The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent.
8.12. Severability. If any provision of this Agreement is declared void or held invalid,
such provision will be deemed severed from this Agreement and the remaining provisions of this
Agreement will otherwise remain in full force and effect.
8.13. Duplicate Originals or Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.
8.14. Place of Performance. The place of performance of this Agreement will be in the
City of Bozeman, Gallatin County, Montana.
8.15. Governing Law. This agreement and the legal relations between the Parties hereto will be governed by and construed in accordance with the laws of the State of Montana, without giving effect to any choice of law statutes, rules, or principles.
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8.16. Dispute Resolution.
(a) Any claim, controversy, or dispute between the Parties, their agents, employees,
or representatives shall be resolved first by negotiation between senior-level personnel from each Party duly authorized to execute settlement agreements. Upon mutual agreement of the Parties, the Parties may invite an independent, disinterested mediator acceptable to the Parties to assist in the negotiated settlement discussions.
(b) If the Parties are unable to resolve the dispute within thirty (30) days from the
date the dispute was first raised, then such dispute may only be resolved in a court of competent jurisdiction in compliance with the applicable law and the provisions of this Agreement.
8.17. Further Assurances and Corrective Instruments. The Parties agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and
delivered, such supplements hereto and such further instruments as may reasonably be required
for correcting any inadequate or incorrect description of the Projects or the Infrastructure Improvements, or for carrying out the expressed intention of this Agreement.
8.18. Reports/Accountability/Public Information. Developer agrees to develop and/or provide documentation as requested by the City demonstrating the Developer’s compliance with
the requirements of this Agreement. Developer shall allow the City, its auditors, and other
persons authorized by the City to inspect and copy its books and records for the purpose of verifying that the monies distributed to the Developer pursuant to this Agreement were used in compliance with this Agreement and all applicable provisions of federal, state, and local law. The Developer shall not issue any statements, releases or information for public dissemination
regarding this Agreement or the work contemplated hereunder without prior written approval of
the City.
8.19. Consent to Electronic Signatures. The Parties have consented to execute this instrument electronically in conformance with the Montana Uniform Electronic Transactions Act, Title 30, Chapter 18, Part 1, MCA.
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IN WITNESS WHEREOF, the Parties hereto have caused this Development Agreement
to be executed as of the14th day of June, 2022.
CITY OF BOZEMAN, MONTANA
By: _______________________________________ Printed Name: Jeff Mihelich
Title: City Manager
[Signature Page to Development Agreement]
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BIG SKY ICINF, LLC
By: Innovation Campus Partners, LLC
By: Bough Development, LLC
By:______________________________________Loren Bough, Manager
By: Charter MSU, LLC
By:_______________________________________
Paul S. Brandes, Member of Charter MSU, LLC
By:______________________________________Daniel Zelson, Member of Charter MSU, LLC
[Signature Page to Development Agreement]
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ACKNOWLEDGEMENT
This Acknowledgement is attached and hereby incorporated into to the Development Agreement (MSU Innovation Campus), dated as of June 14, 2022 (the “Agreement”), between Big Sky ICINF, LLC (the “Developer”) and the City of Bozeman, Montana (the “City”). Capitalized terms used and not defined herein have the meanings the Agreement gives them.
Each of Big Sky QF, LLC, a Delaware limited liability company (“BSQ”), and BIG SKY
AURORA, LLC, a Delaware limited liability company (“BSA”), acknowledge, agree, and represent as follows:
(1) BSQ and BSA have reviewed the Agreement;
(2) BSQ and BSA are affiliated with the Developer and are the “Affiliated
Entities” described in the Agreement;
(3) The Developer is authorized to cause the Affiliated Entities to do all of the things the Developer represents and covenants to cause them to do under the Agreement;
(4) All statements about and references to the Affiliated Entities in the Agreement are accurate and acceptable to the Affiliated Entities; and
(5) Regardless of which entity pays costs incurred with respect to the Projects
and the Infrastructure Improvements, the Developer has the sole right to receive all reimbursements from City for costs of the Infrastructure Improvements as provided under the Agreement.
BSQ and BSA each acknowledge that they benefit, directly or indirectly, from the
arrangements set forth in the Agreement, and each of BSQ and BSA desire to sign this
Acknowledgment to induce the City and the Developer to enter into the Agreement.
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
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2
IN WITNESS WHEREOF, BSQ and BSA have caused this Acknowledgement to
Development Agreement to be executed as of the 14th day of June, 2022.
BIG SKY AURORA LLC, a Delaware limited liability company
By: Innovation Campus Partners, LLC
By: Bough Development, LLC
By:______________________________________Loren Bough, Manager
By: Charter MSU, LLC
By:_______________________________________ Paul S. Brandes, Member of Charter MSU, LLC
By:______________________________________
Daniel Zelson, Member of Charter MSU, LLC
[Signature page to Acknowledgment]
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
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3
BIG SKY QF LLC,
a Delaware limited liability company
By: Innovation Campus Partners, LLC
By: Bough Development, LLC
By:______________________________________
Loren Bough, Manager
By: Charter MSU, LLC
By:_______________________________________ Paul S. Brandes, Member of Charter MSU, LLC
By:______________________________________Daniel Zelson, Member of Charter MSU, LLC
[Signature page to Acknowledgment]
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
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A-1
EXHIBIT A
PROJECT COSTS
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
163
2
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
164
B-1
EXHIBIT B
LEGAL DESCRIPTION OF THE LAND
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
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C-1
EXHIBIT C
COSTS OF THE INFRASTRUCTURE IMPROVEMENTS
Infrastructure
Improvements:
Site work—public infrastructure $2,726,980
Landscaping 295,000 Utilities 250,000
Contingency 327,198
Total: $3,599,178
The Parties acknowledge and agree that, subject to the terms and conditions of this Agreement, (i) the actual sum of all costs of the Infrastructure Improvements may exceed $3,599,178, but the Reimbursable Amount is the maximum amount that the City will reimburse the Developer for costs of the Infrastructure Improvements; and (ii) if the actual sum of all costs
of the Infrastructure Improvements exceeds the Reimbursable Amount, the City has discretion to
allocate the Reimbursable Amount among the costs of the Infrastructure Improvements.
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
166
D-1
EXHIBIT D
MILESTONES
INDUSTRY:
MILESTONE MILESTONE DATE
Site Plan Submittal to the City Submitted
Development Building Permit Submittal Submitted
Start of Development Construction 9/30/2022
Start of Infrastructure Construction 9/30/2022
Substantial Completion of Infrastructure Construction 9/30/2023
Completion of Development Construction (occupancy) 2/15/2024
Aurora:
MILESTONE MILESTONE DATE
Site Plan Submittal to the City Submitted
Development Building Permit Submittal 9/30/2022
Start of Development Construction 12/15/2022
Start of Infrastructure Construction 9/01/2022
Substantial Completion of Infrastructure Construction 9/01/2023
Completion of Development Construction (occupancy) 10/01/2025
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
167
E-1
EXHIBIT E
FORM OF DEVELOPER CERTIFICATE REGARDING COSTS OF INFRASTRUCTURE
IMPROVEMENTS TO: City of Bozeman, Montana FROM: Big Sky ICINF, LLC (the “Developer”) SUBJECT: Reimbursement for costs of the Infrastructure Improvements This Developer certificate requests $_________ for reimbursement of costs of the Infrastructure Improvements, as defined in the Development Agreement between Big Sky ICINF, LLC and the City of Bozeman, Montana, dated as of _________, 2022 (the “Development Agreement”). Capitalized terms used but not otherwise defined herein shall have the respective meanings given such terms in the Development Agreement. Pursuant to Section 5.2(a) of the Development Agreement, the undersigned hereby certifies on behalf of the Developer that: (a) the expenditures for which reimbursement is requested are listed in summary form in the attached schedule headed “Project Expenditures;” (b) paid invoices corresponding to the expenditures set forth on the attached Project Expenditures Schedule are appended to the attached schedule headed “Project Invoices;” (c) the amounts for which reimbursement is requested have been paid by the Developer or the Affiliated Entities to the contractors, subcontractors, materialmen, engineers, architects or other persons who or that have performed necessary or appropriate services or supplied necessary or appropriate materials for the acquisition, construction, renovation, equipping, and installation of the Infrastructure Improvements; (d) the contractor and subcontractors were solicited and retained competitively and all persons performing work on the Infrastructure Improvements were paid the Montana prevailing wage for such work; (e) no part of the several amounts requested to be paid, as stated in such certificate, has been or is the basis for the payment of any money in any previous request; (f) the reimbursement of the amounts requested will not result in a breach of any of the covenants of the Developer contained in the Development Agreement; and (g) no litigation has been instituted or is threatened with regard to any amounts sought to be reimbursed, and binding and enforceable lien waivers have been obtained from all contractors, subcontractors, materialmen, and others with regard to all work related to any amounts for which reimbursement is requested.
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
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E-2
The Developer represents that all of the representations of the Developer in Section 2.2 of the Development Agreement are true and correct as of the date hereof and the Developer is not in default of the performance of any of its undertakings or obligations under Section 3 of the Development Agreement as of the date hereof. Regardless of which entity paid the attached invoices relating to the Infrastructure Improvements, the Developer has the sole right to receive all reimbursements from City for costs of the Infrastructure Improvements as provided under the Development Agreement. Dated: _____________, 20__ Big Sky ICINF, LLC By: Authorized Developer Representative
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
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F-1
EXHIBIT F
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
Dmz
Dmz
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F-1
EXHIBIT G
FORM OF DEVELOPER’S ANNUAL CERTIFICATION TO: City of Bozeman, Montana FROM: Big Sky ICINF, LLC (the “Developer”) SUBJECT: Annual Certification for Calendar Year 20__ Pursuant to Section 3.13 of the Development Agreement between Big Sky ICINF, LLC and the City of Bozeman, Montana, dated as of _________, 2022 (the “Development Agreement”), the undersigned hereby certifies on behalf of the Developer that, to the best of the Developer’s knowledge, tenants of the Projects (as defined in the Development Agreement) are engaged in technology-based operations within Montana that, through the employment of knowledge or labor, add value to a product, process, or export service that results in the creation of new wealth and for which at least 50% of the sales of the business or organization occur outside of Montana or the business or organization is a manufacturing company with at least 50% of its sales to other Montana companies that have 50% of their sales occurring outside of Montana. Dated: _____________, 20__ Big Sky ICINF, LLC By: Authorized Developer Representative
DocuSign Envelope ID: 77F0E0D6-CBEB-4142-8309-D3987E1FD5EF
22
June 14
June 14
171
Memorandum
REPORT TO:City Commission
FROM:Aaron Funk, Controller
Melissa Hodnett, Finance Director
Janeen Hathcock, Partner, Eide Bailly
SUBJECT:Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2025 and
Audit Results
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Finance
RECOMMENDATION:Consider the Motion: I move to approve the Fiscal Year 2025 Annual
Comprehensive Financial Report and the accompanying Letter of
Governance.
STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable
sources of funding for appropriate City services, and deliver them in a lean
and efficient manner.
BACKGROUND:
Section 2-7-503 MCA requires that a financial report be prepared for every
fiscal year. This statute also requires a biannual audit of this report -
including the accounts, financial records, and transactions of all
administrative departments of the City - by independent certified public
accountants selected by the City Commission. The City Commission and City
Administration have historically believed that an annual audit provides a
higher level of financial assurance and fiscal integrity than a biannual audit,
and this intention is expressed in Section 5.09 of the City Charter. This
policy, along with the State legal reporting requirement, has been followed
for fiscal year 2025, and the clean unmodified opinion expressed by the
audit firm of Eide Bailey LLC (EB) has been included in the accompanying
Annual Comprehensive Financial Report (ACFR). The ACFR of the CITY OF
BOZEMAN, MONTANA for the fiscal year ended JUNE 30, 2025 is hereby
submitted to the Commission.
Responsibility for both the accuracy of the data, and the completeness and
fairness of the presentation, including all disclosures, rests with the City. To
the best of our knowledge and belief, the enclosed data are accurate in all
material respects and are reported in a manner designed to present fairly
the financial position and results of operations of the various funds of the
172
City. All disclosures necessary to enable the reader to gain an understanding
of the City's financial activities have been included.
The ACFR is presented in four sections, beginning with an Introduction
Section. This contains the letter of transmittal of the ACFR, the City's
organization chart, and certificates of achievement. The Financial Section
includes the report of the independent auditors, Management's Discussion
and Analysis (MD&A) which provides an overview of the City's financial
performance over the fiscal year, the basic and fund financial statements,
and the accompanying note disclosures to the financial statements. The
basic financial statements provide a summary of the government wide funds
and include the Statement of Net Position and the Statement of Activities.
The accompanying fund financial statements provide financial detail of the
governmental funds, the proprietary funds, and the fiduciary funds, as well
as the combining individual funds financial statements for the nonmajor
governmental and proprietary funds and the internal service funds. The
Statistical Section contains selected financial and demographic information
on a multi-year basis. The Single Audit section is an addition to the financial
audit that the City undertakes in conformance with the Single Audit Act
Amendments of 1996 and the U.S. Office of Management and Budget (OMB)
Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Audits. The results of the single audit, including a
schedule of expenditures of federal awards, and the independent auditor's
reports on the City's internal controls and compliance with legal
requirements, are contained in the City's single audit report.
UNRESOLVED ISSUES:None
ALTERNATIVES:N/A
FISCAL EFFECTS:An unmodified or "clean" audit opinion on the City's financial statements is
viewed favorably by investment analysts and strengthens the City's ability to
issue bonds or other debt at a lower interest cost.
Attachments:
City of Bozeman 2025 Governance Letter.pdf
FY 2025 City of Bozeman ACFR_12.15.2025.pdf
Report compiled on: December 15, 2025
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December 15, 2025
To the Honorable Mayor and Members of the City Commission
City of Bozeman, Montana
We have audited the financial statements of City of Bozeman as of and for the year ended June 30, 2025, and
have issued our report thereon dated December 15, 2025. Professional standards require that we advise you
of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing
Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance
As communicated in our letter dated September 11, 2025, our responsibility, as described by professional
standards, is to form and express an opinion about whether the financial statements that have been prepared
by management with your oversight are presented fairly, in all material respects, in accordance with
accounting principles generally accepted in the United States of America and to express an opinion on
whether the City of Bozeman complied with the types of compliance requirements described in the OMB
Compliance Supplement that could have a direct and material effect on each of the City of Bozeman major
federal programs. Our audit of the financial statements and major program compliance does not relieve you
or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting.
Accordingly, as part of our audit, we considered the internal control of City of Bozeman solely for the purpose
of determining our audit procedures and not to provide any assurance concerning such internal control.
Our responsibility, as prescribed by professional standards as it relates to the audit of City of Bozeman major
federal program compliance, is to express an opinion on the compliance for each of City of Bozeman major
federal programs based on our audit of the types of compliance requirements referred to above. An audit of
major program compliance includes consideration of internal control over compliance with the types of
compliance requirements referred to above as a basis for designing audit procedures that are appropriate in
the circumstances and to test and report on internal control over compliance in accordance with the Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, as a part of our major program compliance audit, we considered internal control
over compliance for these purposes and not to provide any assurance on the effectiveness of the City of
Bozeman’s internal control over compliance.
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 174
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We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
We have provided our comments regarding internal controls during our audit in our Independent Auditor’s
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with Government Auditing Standards dated December 15,
2025. We have also provided our comments regarding compliance with the types of compliance requirements
referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report
on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required
by the Uniform Guidance dated December 15, 2025.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the
engagement, if applicable, have complied with all relevant ethical requirements regarding independence.
Significant Risks Identified
As stated in our auditor’s report, professional standards require us to design our audit to provide reasonable
assurance that the financial statements are free of material misstatement whether caused by fraud or error. In
designing our audit procedures, professional standards require us to evaluate the financial statements and
assess the risk that a material misstatement could occur. Areas that are potentially more susceptible to
misstatements, and thereby require special audit considerations, are designated as “significant risks.” We have
identified the following as significant risks.
•Management Override - Professional standards require auditors to address the possibility of
management overriding controls. Accordingly, we identified as a significant risk that management of the
City may have the ability to override controls that the organization has implemented. Management may
override the City’s controls in order to modify the financial records with the intent of manipulating the
financial statements to overstate the organization’s financial performance or with the intent of
concealing fraudulent transactions.
•Revenue Recognition - We identified revenue recognition as a significant risk in the areas of receivables
and unavailable revenue received due to management judgment and financial and operational
incentives for the City to overstate revenues.
•Capitalization – We identified capitalization as a significant risk based on our professional judgment that
potential errors could be made in the capital asset reconciliation process and incorrectly classified as
additions.
•Donated Infrastructure Assets – We identified donated infrastructure assets as a significant risk due to
there being a significant estimate involved with these items.
•Net Pension/OPEB Liability– We identified NPL/NOL as a significant risk due to there being a significant
estimate involved with these items.
•Impact fee calculation– We identified impact fee calculation as a significant risk due to there being
issues in the prior year audit.
•Landfill Estimate – We identified Landfill Estimate as a significant risk due to there being a significant
estimates involved in the calculation.
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Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by City of Bozeman is included in Note 1 to the financial statements.
As discussed in Note 1 to the financial statements, the City has changed accounting policies related to
accounting for compensated absences to adopt the provisions of Governmental Accounting Standards Board
(GASB) Statement No. 101, Compensated Absences. Accordingly, the accounting change has been
retrospectively applied to the financial statements beginning July 1, 2024. No matters have come to our
attention that would require us, under professional standards, to inform you about (1) the methods used to
account for significant unusual transactions and (2) the effect of significant accounting policies in
controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s current judgments. Those judgments are normally based on knowledge and
experience about past and current events and assumptions about future events. Certain accounting
estimates are particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are:
Management’s estimate of the valuations surrounding the net pension and OPEB liability are based on
actuarial valuations. The estimate of the incurred but not reported claims are based on prior experience.
Management’s estimate of the valuations surrounding the Landfill are based on engineering valuations
and calculations.
We evaluated the key factors and assumptions used to develop the estimates and determined that the
estimates are reasonable in relation to the basic financial statements taken as a whole and in relation to
the applicable opinion units.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of
their significance to financial statement users. The most sensitive disclosures affecting City of Bozeman’s
financial statements relate to the disclosures of Defined Benefit Pension Plans 11; Risk Management in Note
17; and Commitments in Note 22.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the
audit.
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Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely
misstatements identified during the audit, other than those that we believe are trivial, and communicate
them to the appropriate level of management. Further, professional standards require us to also
communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of
transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected
misstatements or matters underlying those uncorrected misstatements could potentially cause future-
period financial statements to be materially misstated, even though the uncorrected misstatements are
immaterial to the financial statements currently under audit.
The following summarizes uncorrected financial statement misstatements whose effects in the current and prior
periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial
statements taken as a whole.
DR. Pension expense $572,942
CR. Pension revenue $572,942
To adjust for economic resources measurement focus reporting of State pension contributions -
Government-wide.
DR. Net Position $917,522
CR. Employee Benefit Expense $917,522
To adjust the change in net position and expense from the implementation of GASB No. 101 -
Government-wide.
DR. Fund Net Position $71,233
CR. Employee Benefit Expense $71,233
To adjust the change in net position and expense from the implementation of GASB No. 101 -
Solid Waste.
DR. Fund Balance $114,545
CR. Employee Benefit Expense $114,545
To adjust the change in net position and expense from the implementation of GASB No. 101 -
Aggregate Remaining.
The effect of these uncorrected misstatements, including the effect of the reversal of prior year uncorrected
misstatements as of and for the year ended June 30, 2025, is an understatement of net position and net income
by $917,522, an understatement of fund net position and net income by $71,233, and an understatement of
fund balance and changes in fund balance of $114,545.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter,
which could be significant to the financial statements or the auditor’s report. No such disagreements arose
during the course of the audit.
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Circumstances that Affect the Form and Content of the Auditor’s Report
For purposes of this letter, professional standards require that we communicate any circumstances that affect
the form and content of our auditor’s report. As described in Note 1 to the financial statements, the City
adopted GASB Statement No. 101, Compensated Absences. The purpose of the paragraph is to draw attention
to the disclosures for the adoption of the standards update. We have included an emphasis of matter in our
report regarding this adoption. We did not modify our opinion related to this matter.
Representations Requested from Management
We have requested certain written representations from management which are included in the management
representation letter dated December 15, 2025.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management informed us that, and to our knowledge, there were no consultations with other
accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with City of Bozeman, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, significant events or
transactions that occurred during the year, operating conditions affecting the entity, and operating plans and
strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a
condition to our retention as City of Bozeman’s auditors.
Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether
financial or nonfinancial, included in City of Bozeman’s annual reports, does not extend beyond the
financial information identified in the audit report, and we are not required to perform any procedures
to corroborate such other information.
Our responsibility also includes communicating to you any information which we believe is a material
misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its
manner of presentation, is materially inconsistent with the information, or manner of its presentation,
appearing in the financial statements.
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The financial statements include the financial statements of the Bozeman Public Library Foundation (“the
Foundation), which we considered to be a significant component of the consolidated financial statements. The
financial statements of the Foundation were audited by other auditors, and we did not assume responsibility for
the audit performed by the other auditors, rather have referred to their audit in our report. Our decision to refer
to the report of the other auditor is based upon– (1) our evaluation of the materiality of the Foundation with
respect to the consolidated financial statements as a whole; (2) the ability for group management to provide
necessary audit evidence with respect to the Foundation; (3) our consideration of the timing requirements of
the engagement. Our audit procedures with respect to the Foundation included required correspondence with
the other auditor, obtaining and reading their auditor’s report and the related financial statements, and other
procedures as considered necessary. Our audit procedures with respect to Rudd and Company, PLLC included
obtaining an understanding of Rudd and Company, PLLC and its environment, including internal control,
sufficient to assess the risks of material misstatement of the financial statements of Rudd and Company, PPLC
and completion of further audit procedures.
This report is intended solely for the information and use of the City Commission, and management of City of
Bozeman and is not intended to be, and should not be, used by anyone other than these specified parties.
Denver Colorado
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Annual Comprehensive Financial Report
Year Ended June 30, 2025
City of Bozeman, Montana
Prepared by the Finance Department
180
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
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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
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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
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Introductory Section
Year Ended June 30, 2025
City of Bozeman, Montana
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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.
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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.
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•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.
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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.
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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
190
Organizational Chart
City of Bozeman, Montana
Organizational Chart
June 30, 2025
VII
191
Certificate of Achievement for Excellence in Financial Reporting
VIII
192
Financial Section
Year Ended June 30, 2025
City of Bozeman, Montana
193
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
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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.
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•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.
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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
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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.
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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
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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
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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
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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.
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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
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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.
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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
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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
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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
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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
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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
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209
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
210
City of Bozeman, Montana
Basic Financial StatementsGovernment-Wide Financial Statements
211
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
212
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
213
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
214
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
215
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
216
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
217
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
218
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
219
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
220
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
221
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
222
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
223
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
224
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
225
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
226
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
227
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
228
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
229
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
230
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
231
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
232
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
233
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.
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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.
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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.
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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”.
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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.
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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.
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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.
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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.
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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.”
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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)
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
268
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
269
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
270
•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
271
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
272
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
273
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
274
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
275
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
276
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
277
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
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278
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
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279
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
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280
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
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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
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282
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
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283
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
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284
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
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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
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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
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287
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
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288
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
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289
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
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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
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291
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
292
Required Supplementary Information June 30, 2025City of Bozeman, Montana
293
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
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294
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
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295
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
296
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
297
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
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298
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
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299
◦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
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300
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
301
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
302
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
303
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
304
Other Supplementary InformationJune 30, 2025City of Bozeman, Montana
305
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
306
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
307
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
308
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
309
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
310
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
311
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
312
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
313
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
314
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
315
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
316
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
317
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
318
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
319
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
320
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
321
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
322
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
323
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
324
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
325
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
326
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
327
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
328
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
329
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
330
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
331
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
332
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
333
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
334
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
335
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
336
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
337
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
338
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
339
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
340
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
341
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
342
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
343
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
344
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
345
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
153346
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
154347
Statistical SectionYear Ended June 30, 2025City of Bozeman, Montana
348
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
349
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
350
FINANCIAL TRENDS SECTION
City of Bozeman, MontanaComponents of Net Position
Last Ten Fiscal Years
351
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
159352
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)
160353
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)
161354
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)
162355
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)
163356
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)
164357
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)
165358
REVENUE CAPACITY SECTION
359
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
360
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
361
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
362
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
363
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
364
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
365
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
366
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
367
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
368
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
369
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
370
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
371
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
372
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
373
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
374
DEBT CAPACITY
375
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
376
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
377
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
378
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
379
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
380
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
381
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
382
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
383
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
384
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
385
DEMOGRAPHIC AND ECONOMIC INFORMATION
386
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
387
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
388
OPERATING INFORMATION
Operating InformationFull-Time Equivalent City Government Employees by Function/Program
389
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
390
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
391
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
392
Single Audit SectionSingle Audit SectionJune 30, 2025City of Bozeman, Montana
393
Federal Awards Reports in Accordance
with the Uniform Guidance
June 30, 2025
City of Bozeman, Montana
eidebailly.com
394
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
203396
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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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.
205398
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
206399
Schedule of Expenditures of Federal Awards
Federal Pass-through
Financial Entity
Assistance Identifying
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Listing Number Expenditures
U.S. Department of Agriculture
Passed through Montana Department of Natural Resources:
Cooperative Forestry Assistance 10.664 FHE-21-101 $ 1,349
Cooperative Forestry Assistance 10.664 UCF-24-106 9,323
Inflation Reduction Act Urban & Community Forestry Program 10.664 UCF-24-306 15,537
Total U.S. Department of Agriculture 26,209
U.S. Department of Housing and Urban Development
Direct Program:
Community Development Block Grants/Entitlement Grants 14.218 B24MC080007 1,770
U.S. Department of Interior
Passed through the Historical Society:
Historic Preservation Fund Grants-in-Aid 15.904 MT-24-012 13,709
U.S. Department of Justice
Direct Program:
Treatment Court Discretionary Grant Program 16.585 15PBJA-23-GG-04278-DGCT 105,876
Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-23-GG-03578-JAGX 20,855
Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-24-CC-04644-JAGX 15,809
Passed through Haven:
Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program 16.589 Rural FY22-24 BvsA-BPD 318
Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program 16.589 15JOVW-24-GG-01028-RURA 5,651
Passed through Gallatin County:
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2990-000-42-420142-000-400-790 81,027
Passed through Montana Department of Justice, Division of Criminal Investigation:
Missing Children's Assistance 16.543 15PJDP-24-GK-04198-MECP 14,780
Total U.S. Department of Justice 244,316
U.S. Department of Transportation
Passed through Montana Department of Transportation: Transportation Alternatives Program
Metropolitan Transportation Planning and State and Non-Metropolitan Planning & Research 20.505 UPN 10453 10,769
Metropolitan Transportation Planning and State and Non-Metropolitan Planning & Research 20.505 UPN 10450 20,231
Passed through MT Dept. of Transportation: Rail, Planning, and Transit Division
Metropolitan Transportation Planning and State and Non-Metropolitan Planning & Research 20.505 FFY2025 UPWP 176,677
Passed through Montana Department of Transportation: Highway Traffic Safety
State and Community Highway Safety 20.600 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 MT Disaster and Emergency Services
Interagency Hazardous Materials Public Sector Training and Planning Grants 20.703 25HMEPBZNFL 7,200
Total U.S. Department of Transportation 221,418
U.S. Department of Treasury
Direct Program:
Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 174,091
Passed through the State of Montana:
Coronavirus State and Local Fiscal Recovery Funds 21.027 AM-23-0189, AM-23-0216, AM-23-0217 1,169,189
Total U.S. Department of Treasury 1,343,280
U.S. Environmental Protection Agency
Direct Program:
Solid Waste Infrastructure for Recycling Infrastructure Grants 66.920 00I170000SC 1,162,292
U.S. Department of Homeland Security
Direct Program:
Staffing for Adequate Fire and Emergency Response (SAFER)97.083 EMW-2023-FF-01043 335,964
Passed through Montana Disaster and Emergency Services:
Homeland Security Grant Program 97.067 SHSP-Bozeman FD HazMat 38,407
Total U.S. Department of Homeland Security 374,371
Total Federal Financial Assistance $ 3,387,365
City of Bozeman, MontanaSchedule of Expenditures of Federal Awards
June 30, 2025
207
400
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
208401
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
209402
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
210403
Memorandum
REPORT TO:City Commission
FROM:Tom Rogers, Senior Planner
Chris Saunders, Community Development Manager
Erin George, Director of Community Development
SUBJECT:Annexation and Zone Map Amendment Requesting Annexation and the
Establishment of an Initial Zoning Designation of R-1 on 1.173 Acres, the
1071 Story Mill Road Annexation, Application 25525
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Community Development - Legislative
RECOMMENDATION:Recommended City Commission Annexation Motion:
Having reviewed and considered the staff report, application materials,
public comment, and all information presented, I hereby adopt the findings
presented in the staff report for application 25525 and move to approve the
1071 Story Mill Road Annexation subject to the terms of annexation and
direct staff to prepare an annexation agreement.
Recommended City Commission Zoning Motion:
Having reviewed and considered the staff report, application materials,
public comment, recommendation of the Zoning Commission, and all
information presented, I hereby adopt the findings presented in the staff
report for application 25525 and move to approve the 1071 Story Mill Road
Zone Map Amendment with contingencies of approval necessary to
complete adoption of an implementing ordinance.
STRATEGIC PLAN:4.2 High Quality Urban Approach: Continue to support high-quality planning,
ranging from building design to neighborhood layouts, while pursuing urban
approaches to issues such as multimodal transportation, infill, density,
connected trails and parks, and walkable neighborhoods.
BACKGROUND:The applicant, 45 Architecture & Interiors, and the property owner, Great
Northern Golf Company of Montana, seek to annex property into the City
limits and establish initial zoning of R-1, Low Density Residential. Golf
courses and support activities are permitted use in the R-1 district through
the Special Use Permitting process.
The property is currently zoned M-1, Light Industrial, in the Gallatin County
Bozeman Area Zoning district. There are multiple structures on the property
all without water and sewer service. The property owners intend to continue
404
the current use of this property while gaining access to essential services
such as water and sewer. Since the property is currently dry, the owners
have relied on temporary restroom facilities on site or directed employees
to use facilities at the clubhouse on McIlhattan Road.
The Bozeman Community Plan 2020 (BCP2020) designates this and the
surrounding property as Urban Residential on the Future Land Use Map. The
R-1 district is an implementing district of this land use classification.
Community Development Board (Zoning Commission) Summary:
The Community Development Board acting in their capacity as the Zoning
Commission held a public hearing on January 26, 2026. The Board discussed
the appropriateness of the requested R-1 (R-A) zoning for the property. After
providing an opportunity for the applicant to revise the requested to zoning
to a higher zone, which was not supported by the applicant, the Board voted
unanimously (6:0) to recommendation to the City Commission to approve
the zoning. A recording of the deliberation can be viewed at the following
link.
https://bozeman.granicus.com/player/clip/2639?view_id=1&redirect=true
Public comment has been received on the application. Comment letter link.
UNRESOLVED ISSUES:There are no identified conflicts on this application.
ALTERNATIVES:1. Approve the application with contingencies as presented;
2. Approve the application with modifications to the recommended
zoning;
3. Deny the application based on findings of non-compliance with the
applicable criteria contained within the staff report; or
4. Open and continue the public hearing, with specific direction to staff or
the applicant to supply additional information or to address specific items.
FISCAL EFFECTS:No unusual fiscal effects have been identified. No presently budgeted funds
will be changed by this Annexation or Zone Map Amendment.
Attachments:
25525 Story Mill Annex_ZMA CC.pdf
Report compiled on: January 27, 2026
405
Page 1 of 42
25525 Staff Report for the 1071 Story Mill Road Annexation and ZMA
Public Hearings: Planning Commission (map amendment only) January 26, 2026
City Commission (Annexation and map amendment) February 10, 2026
Project Description: 1071 Story Mill Road Annexation requesting annexation of 1.173
acres and amendment of the City Zoning Map for the establishment of a zoning
designation of R-1 (Residential Low-Density District), Application 25525.
Project Location: Property addresses as 1071 Story Mill Road and more particularly
described as two parcels of land as described in Warranty Deed Film 151, Page
3806, Document No. 302254 - Parcel 1 and Parcel 2; situated in the Southeast
One-Quarter (SE ¼) of Section 31, Township 1 South, Range 6 East, Principal
Meridian, Gallatin County, Montana.
Staff Finding: Meets standards for approval with terms of annexation and
contingencies.
Recommended Zoning Commission Motion: Having reviewed and considered the staff
report, application materials, public comment, and all information presented, I
hereby adopt the findings presented in the staff report for application 25525 and
move to recommend approval of the 1071 Story Mill Road Zone Map Amendment,
with contingencies required to complete the application processing.
Recommended City Commission Annexation Motion: Having reviewed and
considered the staff report, application materials, public comment, and all
information presented, I hereby adopt the findings presented in the staff report
for application 25525 and move to approve the 1071 Story Mill Road Annexation
subject to the terms of annexation and direct staff to prepare an annexation
agreement.
Recommended City Commission Zoning Motion: Having reviewed and considered the
staff report, application materials, public comment, recommendation of the
Zoning Commission, and all information presented, I hereby adopt the findings
presented in the staff report for application 25525 and move to approve the 1071
Story Mill Road Zone Map Amendment with contingencies of approval necessary
to complete adoption of an implementing ordinance.
Report Date: January 28, 2026
Staff Contact: Tom Rogers, Senior Planner
Agenda Item Type: Action - Legislative
406
Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 2 of 42
EXECUTIVE SUMMARY
This report is based on the application materials submitted and public comment
received to date. This report addresses both the zoning amendment for Community
Development Board acting in their capacity as the Zoning Commission, as well as the
annexation and the zoning amendment for the City Commission. The application
materials are available on the City’s website in the laserfiche archive.
Unresolved Issues
There are no identified conflicts on this application.
Project Summary
The applicant and property owners seek to annex two existing parcels consisting of 1.173
acres into the City limits and establish an initial zoning of R-1 (RA), Residential Low-
Density District. The property is currently zoned M-1, Light Manufacturing, within the
County administered Gallatin County Bozeman Area Zoning District (the Donut). This
application was deemed complete before the passage of the updated Bozeman
Community Plan and the effective date of the update to Chapter 38, Unified
Development Code. Therefore, review is being completed under the prior documents
and criteria. Recognizing the upcoming change in zoning, references to zoning districts
include the new districts in parenthesis where appropriate for clarity.
As stated by the applicant, “The Great Northern Golf Company of Montana intends to
continue the current use of this property while gaining access to essential services such
as water and sewer. Since the property is currently dry, the owners have relied on
temporary restroom facilities on site or directed employees to use facilities at the
clubhouse on McIlhattan Road. With Gallatin County’s population growth and the rising
demand for outdoor recreation, Bridger Creek Golf Course has experienced steady
increases in number golfers’ season after season. This growth has required additional
maintenance staff, and planning for long-term employee needs has become a priority.”
Golf courses and support services are a permitted use in the R-1 district with an
approved Special Use Permit. Golf courses are permitted use in the R-A and R-B districts
with a special use permit in the recently adopted Unified Development Code (UDC). The
existing use will not change as a result of annexation and zoning, but any future changes
will be subject to municipal standards and processes.
The Future Land Use Map in the Bozeman Community Plan (BCP) 2020 designates the
property as “Urban Neighborhood” which includes the R-1 (RA) district as implementing
407
Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 3 of 42
zoning districts. Adjacent municipal zoning includes B-2M to the east, R-1(RA) and R-3
(RB) to the north and west, and another inholding of un-annexed property to the south.
The proposed annexation would provide additional rights-of-way for Story Mill Road.
In determining whether the criteria applicable to this application are met, Staff considers
the entire body of plans and regulations for land development. Standards which prevent
or mitigate possible negative impacts are incorporated in many locations in the
municipal code but are principally in Chapter 38, Unified Development Code.
References in the text of this report to Articles, Divisions, or in the form xx.xxx.xxx are to
the Bozeman Municipal Code.
Community Development Board (Zoning Commission) Summary
The Community Development Board acting in their capacity as the Zoning Commission
held a public hearing on January 26, 2026. The Board discussed the appropriateness of
the requested R-1 (R-A) zoning for the property. After providing an opportunity for the
applicant to revise the requested to zoning to a higher zone, which was not supported by
the applicant, the Board voted unanimously (6:0) to recommend to the City Commission
to approve the zoning.
No public comment was provided at the hearing.
A recording of the deliberation can be viewed at the following link.
https://bozeman.granicus.com/player/clip/2639?view_id=1&redirect=true
Public comment has been received on the application. Comment letter [External Link}
Alternatives
1. Approve the application with contingencies as presented;
2. Approve the application with modifications to the recommended zoning;
3. Deny the application based on findings of non-compliance with the applicable
criteria contained within the staff report; or
4. Open and continue the public hearing, with specific direction to staff or the
applicant to supply additional information or to address specific items.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................. 2
Unresolved Issues .............................................................................................. 2
Project Summary ................................................................................................ 2
Community Development Board (Zoning Commission) Summary .......................... 3
Alternatives ........................................................................................................ 3
SECTION 1 - MAP SERIES: ......................................................................................... 5
SECTION 2 - RECOMMENDED TERMS OF ANNEXATION ........................................... 11
SECTION 3 - RECOMMENDED CONTINGENCIES OF ZONE MAP AMENDMENT ........... 13
SECTION 4 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 14
Annexation ....................................................................................................... 14
Zone Map Amendment ...................................................................................... 14
SECTION 5 - ANNEXATION STAFF ANALYSIS AND FINDINGS..................................... 14
SECTION 6 - ZONE MAP AMENDMENT STAFF ANALYSIS AND FINDINGS .................... 18
APPENDIX A - NOTICING AND PUBLIC COMMENT ................................................... 39
APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING ........................ 40
APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF ................................. 42
FISCAL EFFECTS .................................................................................................... 42
ATTACHMENTS ...................................................................................................... 42
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SECTION 1 - MAP SERIES:
Map 1: Project Vicinity Map
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Map 2: Future Land Use Designation
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Map 3: Current Zoning Map
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Map 4: Applicant Annexation Map
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Map 5: Zoning Map – large geographic scale
Subject
Property
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Map 6: Residential Density, 2023 Data
Subject Property
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SECTION 2 - RECOMMENDED TERMS OF ANNEXATION
The following terms of annexation are recommended to enable the application to comply
with the City’s Annexation Policy and the requirements of state law for the provision of
services.
Recommended terms of annexation:
1. The documents and exhibits to formally annex the subject property must be
identified as the “1071 Story Mill Road Annexation”.
2. An Annexation Map, titled “1071 Story Mill Road Annexation Map” with a legal
description of the property and any adjoining un-annexed rights-of-way and/or
street access easements must be submitted by the applicant for use with the
Annexation Agreement. The map must be supplied as a PDF for filing with the
Annexation Agreement at the County Clerk & Recorder, and a digital copy for the
City Engineers Office. This map must be acceptable to the Director of Public
Works and City Engineers Office and must be submitted with the signed
Annexation Agreement.
3. The applicant must execute all contingencies and terms of said Annexation
Agreement with the City of Bozeman within 60 days of the distribution of the
annexation agreement from the City to the applicant or annexation approval shall
be null and void.
4. The landowners and their successors must pay all fire, street, water, and sewer
impact fees at the time of connection; and for future development, as required by
Chapter 2, Bozeman Municipal Code, or as amended at the time of application
for any permit listed therein.
5. If they do not already exist, the applicant must provide and file with the County
Clerk and Recorder's office executed Waivers of Right to Protest Creation of
Special Improvement Districts (SIDs) for the following:
a. Street improvements to Story Mill Road between Boyland Road and Bridger
Drive including lighting, signalization, paving, curb/gutter, sidewalk, shared
use path and storm drainage.
b. Intersection improvements to Story Mill Road and Boyland Road including
lighting, signalization/channelization, paving, curb/gutter, sidewalk, shared
use path and storm drainage.
6. The document filed must specify that in the event an SID is not utilized for the
completion of these improvements, the developer agrees to participate in an
alternate financing method for the completion of the improvements on a fair
share, proportionate basis as determined by square footage of property, taxable
valuation of the property, traffic contribution from the development, or a
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combination thereof. The Annexation Agreement must include the following
notices:
a. The Annexation Agreement must include notice that, prior to development,
the applicant will be responsible for preparing a storm water master plan in
conjunction with future development. The storm water master plan shall
address maintenance and operations until and unless the City affirmatively
assumes responsibility for maintenance and operations of stormwater
facilities within the area of the annexation.
b. The Annexation Agreement must include notice the City will, upon annexation,
make available to the Property existing City services only to the extent
currently available, or as provided in the Agreement.
c. The Annexation Agreement must include notice that there is no right, either
granted or implied, for Landowner to further develop any of the Property until
it is verified by the City that the necessary municipal services are available to
the property.
d. The Annexation Agreement must include notice that, prior to development,
the applicant will be responsible for installing any facilities required to provide
full municipal services to the properties in accordance with the City of
Bozeman's infrastructure master plans and all City policies that may be in
effect at the time of development.
e. The Annexation Agreement must include notice that utility easements may be
required to be provided by the landowner at the time of development to ensure
necessary municipal services are available to the property.
f. The agreement must include notice that charges and assessments may be
required after completion of annexation to ensure necessary municipal
services are available to the property.
g. The Annexation Agreement must include notice that the City will assess
system development and impact fees in accordance with Montana law and
Chapter 2, Article 6, Division 9, Bozeman Municipal Code.
h. All procedural terms necessary to establish the Annexation Agreement in
conformance with state law and municipal practice will be included with the
final Annexation Agreement.
7. The Annexation Agreement must include notice that the applicant must connect
to municipal services and will be responsible for installing any facilities required
to provide full municipal services to the property in accordance with city policy at
the time of connection.
8. City of Bozeman Resolution 5076, Policy 2 — Story Mill Road is classified as
Collectors in the Bozeman Transportation Master Plan (TMP), which has a
minimum right-of-way ROW width of 90 feet. The applicant must provide their half
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along the property frontage by easement prior to the adoption of Resolution of
Annexation. The easement must be executed using the city's standard language.
9. The applicant must contact the City’s Engineering Department to obtain an
analysis of cash-in-lieu of water rights for the proposed annexation. The
determined amount must be paid prior to the adoption of Resolution of
Annexation, if applicable.
10. All final easements provided to the City must be stamped and signed by a
professional surveyor.
SECTION 3 - RECOMMENDED CONTINGENCIES OF ZONE MAP
AMENDMENT
Please note that these contingencies are necessary for the City to complete the process
of the proposed amendment. These contingencies only apply in the event that the
related annexation request has previously been approved.
Recommended Contingencies of Approval:
1. That all documents and exhibits necessary to establish an initial municipal zoning
designation shall be identified as the “1071 Story Mill Road Annexation Zone Map
Amendment.” All required documents must be returned to the City within 60 days of
the City Commission action to annex the property or the preliminary approval shall
be null and void.
2. That the Ordinance for the Zone Map Amendment shall not be finalized until the
Annexation Agreement is signed by the applicant and formally approved by the City
Commission. If the annexation agreement is not approved, the Zone Map
Amendment application shall be null and void.
3. That the applicant must submit a Zone Amendment map, titled “1071 Story Mill Road
Annexation Zone Map Amendment”. The map must be supplied as a PDF. This map
must be acceptable to the City Engineer’s Office and must be submitted within 60
days of the action to approve the zone map amendment. Said map shall contain a
metes and bounds legal description of the perimeter of the subject property including
adjacent rights-of-way or street easements, and total acreage of the property to be
rezoned, unless the property to be rezoned can be entirely described by reference to
existing platted properties or certificates of survey.
4. The Ordinance for the Zone Map Amendment shall not be drafted until the applicant
provides an editable mete and bounds legal description prepared by a licensed
Montana surveyor.
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SECTION 4 - RECOMMENDATION AND FUTURE ACTIONS
Annexation
Having considered the criteria established for an annexation, the Development Review
Committee (DRC) did not find any deficiencies that prohibit annexation at this time that
could not be addressed through future development review processes and adopted City
Codes.
The City Commission will hold a public meeting on the annexation on February 10, 2026.
The meeting will begin at 6 p.m.
Zone Map Amendment
Having considered the criteria established for a zone map amendment, the Staff found
the requested zoning meets standards for approval as submitted. The Zone Map
Amendment (ZMA) is in conjunction with an annexation request. Staff’s
recommendation and staff responses are predicated on approval of the annexation,
application 25525.
The Development Review Committee (DRC) considered the amendment. The DRC did
not identify any infrastructure or regulatory constraints that would impede the approval
of the application that cannot be addressed with adopted standards and requirements
for future development.
The Community Development Board acting in their capacity as the Zoning Commission
will hold a public hearing on this zone map amendment on January 26, 2026, and will
forward a recommendation to the City Commission on the zone map amendment. The
meeting will begin at 6 p.m. in the Commission Room at City Hall, 121 N. Rouse Ave,
Bozeman, Montana.
The City Commission will hold a public meeting on the zone map amendment on
February 10, 2026. The meeting will begin at 6 p.m. in the Commission Room at City Hall,
121 N. Rouse Ave, Bozeman, Montana. The City Commission will conduct a public
hearing on the proposed Zone Map Amendment application.
SECTION 5 - ANNEXATION STAFF ANALYSIS AND FINDINGS
In considering applications for approval of the requested annexation, the advisory
boards and City Commission shall consider the following:
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Commission Resolution No. 2025-07 Policies [External Link]
Policy 1: Annexations must include dedication of all rights of way for collector and
arterial streets, public water, sanitary sewer, or storm or sewer mains. When
required, rights of way for anchor routes as recognized in the City’s adopted parks
and trails plans, must be provided when such anchor routes are not located within
the right of way for arterial or collector streets.
Criterion met. Story Mill Road is classified as a Collector in the Bozeman Transportation
Master Plan (TMP), which has a minimum right-of-way ROW width of 90 feet. The
applicant must provide their half of the right of way along the property frontage prior to
the adoption of Resolution of Annexation. The easement must be executed using the
city's standard language. As shown on the revised annexation map, the required right-
of-way is identified. See Term of Annexation 8.
A shared use path and Anchor Route are identified adjacent to Story Mill Road in the
Parks, Recreation, and Active Transportation Plan (PRAT). The additional right-of-way to
be provided by easement will accommodate the pathway if or when constructed.
Policy 2: Annexations may be required to include dedication of rights of way for
adjacent or internal local streets to complete street connectivity and provide
required legal and physical access.
Criterion met. Access is provided by Story Mill and Boylan Roads within dedicated rights-
of-way granted through the subdivision process. As noted above, additional, rights-of-
way is required for Story Mill Road. Internal roads. Although it is unlikely additional right-
of-way will be required with future development, no additional local street network is
required for compete street connectivity or physical access. Additional internal streets,
if needed, will be required with subsequent site plan and/or subdivision review.
Policy 3: Annexations must include written waivers of a property owner’s right to
protest the creation of special improvement districts necessary to provide essential
services. The waivers must run with the land, be binding on the owner and owner’s
successors in interest and be recorded concurrently with the annexation agreement.
Criterion met. Waivers of the right to protest creation or improvement districts are
accounted for in terms of annexation. These include street and intersection
improvements identified by the Engineering Department. See term of Annexation 5.
Policy 4: The petition for annexation must be in conformance with the current
Bozeman land use plan (growth policy). If a land use plan (growth policy)
amendment is necessary for anticipated land uses, the land use plan amendment
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process must be completed prior to any action for approval of a petition for
annexation.
Criterion Met. The property is designated “Urban Neighborhood” on the future land use
map. No growth policy amendment is required. The application includes a request for
initial zoning of R-1(R-A). See the zone map amendment section of this report for analysis
of the zone map amendment criteria.
Policy 5: The City prefers petitions for annexation of land larger than five acres.
However, the City will consider annexation of smaller areas of land when one or
more of the following are present: topographic limitations; the land is served by one
or more City utilities; septic system failure; extension and integration of
transportation infrastructure; enhancement of the existing traffic circulation
system or to provide for transportation systems that do not currently exist;
annexation will make the City boundaries more regular; annexation will better
incorporate unannexed property for the provision of City fire, police, and emergency
services; or when annexation provides improved access to and maintenance of
public facilities.
Criterion Met. The two lots total 1.173 acres. The policy prefers larger annexation
although acknowledge a variety of unique situations influence the determination to
annex. In this case the City desires to fill “inholdings” that are wholly surrounded by city
limits. These properties are dependent on city infrastructure and services. The
annexation requires additional rights-of-way to accommodate the City’s long term
transportation plan on Story Mill. And finally, annexation will better incorporate
provisions of fire, police, and emergency services.
Policy 6: The City will review infrastructure and emergency services available to an
area proposed for annexation for the health, safety and welfare of the public and
conformance with the City’s adopted plans. If the City determines adequate
services cannot be provided to ensure public health, safety and welfare, the City
may deny the petition for annexation. Alternatively, the City may require all property
owners within the land to be annexed provide a written plan for accommodation of
services at the expense of the property owner(s). The land to be annexed may only
be provided sanitary sewer service via the applicable drainage basin defined in the
City Wastewater Collection Facilities Plan.
Criterion Met. City infrastructure and emergency services are available to the subject
property. An existing 6-inch ductile iron water pipe is in Story Mill Road to the east and
Boylan Road to the north.
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Wastewater collection pipe bounds the property on east and north with ample capacity
to serve the site.
Any future development will be required to connect to the City systems. The property is
located adjacent to existing urban development that is currently served by Bozeman Fire.
Per Term of Annexation 7, the Annexation Agreement required to finalize the requested
annexation will require the applicant to design extensions of services to meet the City’s
adopted infrastructure standards. These include provisions for minimum water pressure
and volumes, adequate sewer flows by volume, gravity flow of sewers, and other
standards necessary to protect public health and safety and ensure functional utilities.
Policy 7: The City may require annexation of any contiguous property for which City
services are requested or for which City services are currently being provided. In
addition, any person, firm, or corporation receiving water or sewer service outside of
the City limits is required as a condition of initiating or continuing such service, to
record a consent to annexation of the property serviced by the City.
The property is not currently provided City services. No emergency connection is
requested. Access to water and sewer service is the purpose of the annexation. City
services will be required to be provided concurrent with future development. Terms of
Annexation 6 and 9 address connection to services.
Policy 8: The City Manager may enter into an agreement with a property owner for an
emergency connection to the City’s sanitary sewer or water system. In doing so, the
property owner must submit a petition for annexation and file a notice of consent to
annex with the Gallatin County Clerk and Recorder’s Office prior to connection to
City utilities. The City will prepare the notice of consent to annex. The agreement for
connection to City sewer or water must require the property owner to complete
annexation or consent to disconnection of the services. Connection for purposes of
obtaining City sewer services in an emergency requires, when feasible as
determined by the City, the connection to City water services.
Emergency connection is not being requested or required.
Policy 9: The use of Part 46 annexations is preferred.
This annexation is being processed under Part 46 provisions.
Policy 10: Where a road improvement district has been created, annexation does
not repeal the creation of the district. The City will not assume operations of a road
improvement district until the entirety of the district has been annexed. Any funds
held in trust for the district will be used to benefit the district after transfer to the
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City. Inclusion within a district does not absolve a landowner of the obligation to
participate in general City programs that address the same subject.
No road improvement district is associated with this application.
Policy 11: The City requires connection to and use of City utilities and services upon
development of annexed properties. The City may establish a fixed time frame for
connection to municipal services. Upon development, unless otherwise approved
by the City, septic systems must be properly abandoned and the development must
be connected to the City sanitary sewer system. Upon development, unless
otherwise approved by the City, water wells on the subject property may be used for
irrigation but must be disconnected from any structure. Potable water must be
supplied from the City water distribution system. The property owner must contact
the City Water and Sewer Division to verify disconnection of wells and septic
systems.
There is an existing structure on the subject property without on-site well and septic
system. All redevelopment and further development requiring sanitary sewer or water
will be required to connect and use city utilities. A term of annexation requires
connection to municipal water and sewer implements this policy. Terms of Annexation
6 and 9 address these issues.
Policy 12: All annexations must be contiguous with or wholly surrounded by the
existing City boundary. The City Commission may agree to annex property that is not
contiguous or wholly surrounded. If the land to be annexed is not contiguous to or
wholly surrounded by the City, the reasoning and justification for annexation must
be explicitly addressed within the petition and approved by the Commission prior to
adoption of a Resolution of Annexation.
This criterion is met. The property in question is contiguous to the City limits. The
property is bounded on the north and east sides by City limits. Further, the property is
wholly surrounded by city limits.
SECTION 6 - ZONE MAP AMENDMENT STAFF ANALYSIS AND FINDINGS
Application 25525 was deemed sufficient for continued review prior to the effective date
of the revised Bozeman Unified Development Code on February 1, 2026, and Bozeman
Land Use plan, see Resolution 2025-71. Therefore, it is reviewed under the previous
review criteria as described below.
In considering applications for plan approval under this title, the advisory boards and
City Commission must consider the following criteria (letters A-K). As an amendment is
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a legislative action, the Commission has broad latitude to determine a policy direction.
The burden of proof that the application should be approved lies with the applicant.
A zone map amendment must be in accordance with the growth policy (criteria A) and be
designed to secure safety from fire and other dangers (criteria B), promote public health,
public safety, and general welfare (criteria C), and facilitate the provision of
transportation, water, sewerage, schools, parks and other public requirements (criteria
D). Therefore, to approve a zone map amendment the Commission must find Criteria A-
D are met.
In addition, the Commission must also consider criteria E-K, and may find the zone map
amendment to be positive, neutral, or negative with regards to these criteria. To approve
the zone map amendment, the Commission must find the positive outcomes of the
amendment outweigh negative outcomes for criteria E-K.
In determining whether the criteria are met, Staff considers the entire body of plans and
regulations for land development. Standards which prevent or mitigated negative
impacts are incorporated throughout the entire municipal code but are principally in
Chapter 38, Unified Development Code.
Section 76-2-304, MCA (Zoning) Criteria
A. Be in accordance with a growth policy.
Criterion met. The Bozeman Community Plan (BCP) 2020, Chapter 5, p. 73, in the section
titled Review Criteria for Zoning Amendments and Their Application, discusses how the
various criteria in 76-2-304 MCA are applied locally. Application of the criteria varies
depending on whether an amendment is for the zoning map or for the text of Chapter 38,
BMC. The first criterion for a zoning amendment is accordance with a growth policy.
Future Land Use Map
The proposed amendment is a change to the zoning map. Therefore, it is necessary to
analyze compliance with the future land use map. Chapter 3 of the BCP 2020 addresses
the future land use map. The introduction to that chapter discusses the importance of
the chapter. Following are some excerpts.
“Future land use is the community’s fundamental building block. It is an
illustration of the City’s desired outcome to accommodate the complex and
diverse needs of its residents.”
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“The land use map sets generalized expectations for what goes where in the
community. Each category has its own descriptions. Understanding the future
land use map is not possible without understanding the category descriptions.”
The area of this application is within the anticipated growth area of the City. As shown on
the maps in Section 1, on the excerpt of the current future land use map, the property is
designated as Urban Neighborhood. The Urban Neighborhood designation description
reads:
“This category primarily includes urban density homes in a variety of types,
shapes, sizes, and intensities. Large areas of any single type of housing are
discouraged. in limited instances, an area may develop at a lower gross density
due to site constraints and/or natural features such as floodplains or steep
slopes. Complementary uses such as parks, home-based occupations, fire
stations, churches, schools, and some neighborhood-serving commerce provide
activity centers for community gathering and services. The Urban Neighborhood
designation indicates that development is expected to occur within municipal
boundaries. This may require annexation prior to development.
Applying a zoning district to specific parcels sets the required and allowed
density. Higher density residential areas are encouraged to be, but are not
required or restricted to, proximity to commercial mixed-use areas to facilitate the
provision of services and employment opportunities without requiring the use of
a car.”
The correlation between the future land use map of the growth policy and the zoning
districts is presented in Table 4 of the Bozeman Community Plan. As shown in the
following Correlation with Zoning Table excerpt, the R-1 district is an implementing
district of the Maker Space Mixed-Use designation.
Except from BCP Future Land Use Map:
In finding that this application meets criterion A, the analysis is cognizant that in many
planning efforts and discussions over the decades, the Planning Board and City
Commission have considered the various elements of the question of to grow or not grow
and the consequences of either approach. After considering this question, they have
concluded that having growth within the physical boundaries of Bozeman results in
better outcomes than not. Therefore, the BCP approaches growth as something that
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overall is positive but recognizes that it does not come without drawbacks and that the
community will change over time.
Goals and Policies
A zoning amendment is also evaluated against the goals and policies of the BCP
2020. Most of the goals and policies are not applicable to this application. Relevant goals
and objectives have been identified by the applicant and staff. Conflict with the text of
the growth policy hasn’t been identified.
The Short-Term Action list on page 63 of the BCP 2020 describes 14 items to
implement the growth policy. The first two relate to direct changes to the zoning map in
support of listed goals and objectives. Beginning on page 71 of the BCP 2020 in the
section titled Zoning Amendment Review, the document discusses how the city
implements zoning for new areas, amendments to areas, and revisions to existing text.
This section demonstrates that the City, as a matter of policy, is supportive of more
intensive zoning districts and development. It is inconsistent with this approach to zone
at annexation for lower intensities than what infrastructure and planning documents will
support. This policy approach does not specify any individual district but does lean
towards the more intensive portion of the zoning district spectrum.
The entirety of the Bridger Creek Golf course is annexed and zoned R-S, Residential
Suburban, except the area subject to this application. As noted above and in the
applicant submittal, golf courses are only allowed in the R-S, R-1 and in certain
commercial and industrial zones. The property has a future land use designation of
Urban Neighborhood, therefore only the residential districts may be applied for with
annexation without an amendment to the Land Use Plan. Pursuant to section
38.300.100.A, BMC, application of the R-S district is not available for new annexations
leaving one applicable zoning district, the R-1 district.
The R-1 (RA) district is an implementing zone for the Urban Neighborhood future land
use designation. The applicant provided reasoning and justification for the requested
zoning classification shown as sheet 06_Zone Map_Amendment_Checklist_Narrative.
Staff provides additional analysis of the requested zoning for the record.
DCD-1.5 Identify underutilized sites, vacant, and undeveloped sites for possible
development or redevelopment, including evaluating possible development incentives.
The site is used as the golf course maintenance facility and developed using light
manufacturing site standards in the Gallatin County/Bozeman Area Donut zoning
district. Incorporating the property into the city will apply city standard to all future
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development which in turn will ensure water efficient fixtures and landscaping, properly
designed storm drainage, building construction standards that meet or exceed state
building requirements, and with the additional right-of-way associated with the
annexation allows for the full build out of Story Mill Road.
RC-3.4 Encourage annexation of land adjacent to the City prior to development and
encourage annexation of wholly surrounded areas.
The property is adjacent to the city limits and wholly surrounded. This goal is
furthered by the City’s annexation policies.
Goal N-3: Promote a diverse supply of quality housing units.
As noted above the area is designated as Urban Neighborhood according to the
FLUM. This category primarily includes urban density homes in a variety of types, shapes,
sizes, and intensities. The applicant states the current use will continue indefinitely,
however the R-1 (RA) district is primarily residential in nature and all uses listed in Table
38.310.030 are allowed. Uses include Single house dwellings, two-household dwellings,
accessory dwelling units, Cottage housing, and many other subordinate and residential
type of use.
Applying a zoning district to specific parcels sets the required and allowed density.
Higher density residential areas are encouraged to be, but are not required or restricted
to, proximity to commercial mixed-use areas to facilitate the provision of services and
employment opportunities without requiring the use of a car. The city must balance
encouraging housing development with development constraints and proximity to
employment, entertainment, education, and supporting its climate action initiatives.
Therefore, the proposed R-1 (RA) zoning is appropriate for this property.
RC-3.2 Work with Gallatin County to keep rural areas rural and maintain a clear edge to
urban development that evolves as the City expands outwards.
According to the Gallatin County growth policy, Envision Gallatin Plan, the subject
property is designated as the “Annexation Holding Area”. The purpose of the Annexation
Holding Areas is to promote the efficient use of the limited land resources in the County
and prevent proliferation of development reliant on individual well and septic in areas
adjacent to municipal services and infrastructure. See Figure 8-4: Gallatin County Future
Land Use Map, Triangle Plus, page 8-11.
Goal RC-3: Collaborate with Gallatin County regarding annexation and development
patterns adjacent to the City to provide certainty for landowners and taxpayers.
Gallatin County has been notified of the proposed annexation.
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RC-3.3 Prioritize annexations that enable the incremental expansion of the City and its
utilities.
The property in question is contiguous to the City limits on the west, east, and north.
RC-3.4 Encourage annexation of land adjacent to the City prior to development and
encourage annexation of wholly surrounded areas.
The property is adjacent to the City and does not create any new unannexed areas
surrounded by City limits. The property is seeking annexation and municipal zoning for
the purpose of continuing the current as a support for the golf course operation that is
utilized by many city residents.
In addition to goals and objectives, the BCP 2020 includes descriptive statements
regarding what the goals and objectives seek to support and create. Page 27 of the BCP
2020 includes the descriptive language for Theme 2, A City of Unique Neighborhoods.
Reviewing the language, themes of housing diversity, inclusion, and equity to serve
different housing needs are prevalent. Theme 2 emphasizes the importance of
neighborhoods in the City’s development. It is notable that none of the goals and
objectives associated with Theme 2 call for fixing the character of developed areas in
their current status or prohibit the evolution of an area’s character.
There is recognition of the role that a sense of place serves in Goal N-4.
Neighborhoods do have physical attributes that help them be distinctive. In this case the
presence of watercourse and sensitive lands there is an opportunity to create unique
neighborhoods through a well-planned subdivision or site plan.
See also RC – 3.3 response.
Goal N-4: Continue to encourage Bozeman’s sense of place.
N-4.1 Continue to recognize and honor the unique history, neighborhoods,
neighborhood character, and buildings that contribute to Bozeman’s sense of place
through programs and policy led by both City and community efforts.
The proposed amendment does not alter the zoning on any adjacent property and
correspondingly the character of that adjacent property. As noted in other criteria in this
report, the proposed amendment is consistent with the planned development of the area
as homes with an urban intensity or other uses consistent with the R-1 (RA) district. While
the application does not further all goals of the BCP 2020, taken as a whole, the
application is supportive of and in accordance with, the BCP 2020.
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B. Secure safety from fire and other dangers.
Criterion Met. The property can be served by the Bozeman Fire Department. Fire
protection water supply will be provided by the City of Bozeman water system. There is
an ag building without services on the property. The property is not within any delineated
floodplain nor does it have other known natural hazards. Upon annexation the subject
property will be provided with City emergency services including police, fire and
ambulance. Future development of the property will be required to conform to all City of
Bozeman public safety, building and land use requirements. The City provides
emergency services to adjacent properties and no obstacles have been identified in
extending service to this parcel.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
18.02 International
Fire code
Adopt standards
for fire prevention
and control
Fire/EMS master
plan, International
Fire Code
Site plan and building
permit
38.400
Transportation
Facilities and
Access
Streets standards
for size and
construction
Transportation
Master Plan
Subdivision or site plan
review
38.400.010
Streets, general
Access for
emergency
services
Transportation
Master Plan
Subdivision or site
plan.
38.410.090 Fire
protection
requirements
Development
design
Fire/EMS master
plan, International
Fire Code
Subdivision, site plan,
and building permit
C. Promote public health, public safety, and general welfare.
Criterion Met. See comments in Section 6, Criteria A, B and D. City development
standards included in Chapter 38, Unified Development Code, building codes, and
engineering standards all ensure that this criterion is met. Adequate water and sewer
supply and conveyance provide for public health through clean water. Rapid and
effective emergency response provides for public safety. The City’s standards ensure
that adequate services are provided prior to construction of homes, which advances this
criterion. General welfare has been evaluated during the adoption of Chapter 38 and
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found to be advanced. Provision of parks, control of storm water, and other features of
the City’s development standards advance the general welfare. Compliance with the
BCP 2020 advances the well-being of the community as a whole.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
18.02 International
Fire code
Adopt standards
for fire prevention
and control
Fire/EMS master
plan, International
Fire Code
Site plan and building
permit
38.400
Transportation
Facilities and
Access
Streets standards
for size and
construction
Transportation
Master Plan
Subdivision or site plan
review
38.410.070
Municipal water,
sewer systems
Location and
requirement to
install.
Sewer collection
facilities plan,
Water facilities
plan
Subdivision or site
plan.
38.410.090 Fire
protection
requirements
Development
design
Fire/EMS master
plan, International
Fire Code
Subdivision, Site plan,
and building permit
38.420 Parks Standards for
location, type,
and development
of parks and trails
Park, Recreation,
and Active
Transportation
Plan
Subdivision or site plan
review
38.5 Project Design Site layouts,
landscaping,
building
configuration,
signs, lighting
Site plan and building
permit
D. Facilitate the provision of transportation, water, sewerage, schools, parks and
other public requirements.
Criterion Met. This property is included in future planning areas. The City conducts
extensive planning for municipal transportation, water, sewer, parks, and other facilities
and services provided by the City. The adopted plans allow the City to consider existing
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conditions and identify enhancements needed to provide additional service needed by
new development. The City implements these plans through its capital improvements
program that identifies individual projects, project construction scheduling, and
financing of construction.
As stated in 38.300.020.C, the designation of a zoning district does not guarantee
approval of new development until the City verifies the availability of needed
infrastructure. All zoning districts in Bozeman enable a wide range of uses and
intensities. At time of future subdivision or site plan review the need for individual
services can be more precisely determined. No subdivision or site plan is approved
without demonstration of adequate capacity.
38.300.020.C, “Placement of any given zoning district on an area depicted on the
zoning map indicates a judgment on the part of the city that the range of uses
allowed within that district are generally acceptable in that location. It is not a
guarantee of approval for any given use prior to the completion of the appropriate
review procedure and compliance with all of the applicable requirements and
development standards of this chapter and other applicable policies, laws and
ordinances. It is also not a guarantee of immediate infrastructure availability or a
commitment on the part of the city to bear the cost of extending services.”
The application site is located well within the City’s land use, transportation, parks, and
utility planning areas. Those plans show this property as developing within the City when
development is proposed. Adequacy of all these public requirements is evaluated during
the subdivision and site development process.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
18.02 International
Fire code
Adopt standards
for fire prevention
and control
Fire/EMS master
plan, International
Fire Code
Site plan and building
permit
38.400
Transportation
Facilities and
Access
Streets standards
for size and
construction
Transportation
Master Plan
Subdivision or site plan
review
38.410.060
Easements
Location and form
of easements for
utilities
Transportation
Master Plan,
Sewer collection
facilities plan,
Annexation for
collector and arterial
streets.
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Water facilities
plan
Subdivision or site plan
for all others.
38.410.070
Municipal water,
sewer systems
Location and
requirement to
install.
Sewer collection
facilities plan,
Water facilities
plan
Subdivision or site
plan.
38.410.090 Fire
protection
requirements
Development
design
Fire/EMS master
plan, International
Fire Code
Subdivision, site plan,
and building permit
38.420 Parks Standards for
location, type, and
development of
parks and trails
Park, Recreation,
and Active
Transportation
Plan
Subdivision or site plan
E. Reasonable provision of adequate light and air.
Criterion met. This criterion is not about individual preferences for a given degree of
visual openness but about preservation of public health. The R-1 (RA) district provides
abundant light and air through the Bozeman Unified Development Code’s standards for
park and recreation requirements, on-site open space for residential uses, maximum
building height, lot coverage, and setback requirements.
The form and intensity standards, Division 38.320, provide minimum lot areas, lot
widths, lot coverage and maximum floor area ratios, and prescribe require minimum
separation from property lines and limits building heights.
In addition to the zoning standards, adopted building codes contain more detailed
requirements for air circulation, window placement, and building separation that further
ensure the intent of this criterion is satisfied.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
38.320 Form and
Intensity
Standards
Standards for
building placement
and maximum size
Subdivision, site plan
review, building permit
38.420 Parks Standards for
location, type, and
Park, Recreation,
and Active
Subdivision or site plan
review
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development of
parks and trails
Transportation
Plan
38.520.060 On-site
residential and
commercial open
space
Private land open
area requirements
Site plan
F. The effect on motorized and non-motorized transportation systems.
Criterion Met. There is little or no effect on the transportation system by the application
of a R-1 zoning to this property. The site is bounded on two sides by City standard streets
and one being a Collector Street according to the Bozeman Area Transportation Plan. As
noted earlier, the property is zoned light manufacturing in the County and approximately
one acre of land, The fact the R-1 (RA) is the lowest density district allowed for new
projects in the city means that all the infrastructure planning assumes equal or greater
intensity than is allowed with this district. If, or when, the current use changes, only
residential and other identified R-1uses are allowed. A change of use may alter the timing
and frequency of trips from the development, it is unlikely to impact the Transportation
system as whole.
Future development will be required to make required improvements to the
Transportation system adjacent to the property that will bolster multi-model
Transportation typologies and improve internal circulation for future residents.
The City conducts routine transportation monitoring, modeling, and planning to
understand existing conditions and future needs of the transportation system. The 2017
Transportation Master Plan is the most recent transportation plan. Figure 2.5, Existing
Major Street Network, shows Story Mill Road as a collector street.
Support of multi-modal transportation is limited. Due to the property’s location, there
are limited destinations within walking distance and bicycle infrastructure may not be
robust enough to support viable use a bicycle as an alternative mode of transportation.
The Canyon Gate development on the east side of Story Mill Road has made
improvements to the multi-modal system by constructing detached sidewalks. Although
there are sidewalks on the west side, those sidewalks adjacent to County inholding are
attached to the roadway, a pedestrian unfriendly configuration. Development with city
standards prohibits these dangerous conditions.
City plans acknowledge the tension created with development. Not all goals and
policies are furthered with a particular application. The need for housing, the logical
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extension of city limits, and planned future commercial and other supporting uses near
the subject property outweigh negatives associated with this application. Future
development of this property provides opportunity to expand the pedestrian network
through installation of sidewalks. Bike and pedestrian travel is much more sensitive to
distance than motor vehicle travel. Sidewalk installation is a minimum development
standard under Chapter 38. This expands and improves the non-motorized
transportation system. These links will be required with any future development under
any municipal zoning district.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
38.400
Transportation
Facilities and
Access
Streets standards
for size and
construction
Transportation
Master Plan
Subdivision or site plan
review
38.410.060
Easements
Location and form
of easements for
utilities
Transportation
Master Plan,
Annexation for
collector and arterial
streets.
Subdivision or site plan
for all others.
38.420.110
Recreation
Pathways
Location and
requirement to
install.
Park, Recreation,
and Active
Transportation
Plan
Annexation for Class 1
Trails easement.
Subdivision or site plan
for all else.
The City has set minimum standards applicable to development to limit block length,
ensure trail and sidewalk connections, and provide streets adequate to carry traffic
projected from development. These standards are not applied at the time of the ZMA but
are implemented during the subdivision and site plan processes required before any
construction may begin. See also Section 6, Criterion D.
The Walk Score is low with a walk score of 24 and a transit score of nine. Currently,
Bozeman’s overall WalkScore is 47 with a transit score of 21. These values are provided
by Walk Score, a private organization which presents information on real estate and
transportation through walkscore.com. The algorithm which produces these numbers is
proprietary. A score is not an indication of safety or continuity of services or routes.
Scores are influenced by proximity of housing, transit, and services and expected ability,
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as determined by the algorithm, to meet basic needs without using a car. Sites located
on the edge of the community have lower scores than those in the center of the
community as the area is still under development and therefore diversity of uses is less
than in fully established areas. There are no adopted development standards relating to
the walk score.
According to Walk Score® the walks score measures the walkability of any address
based on the distance to nearby places and pedestrian friendliness.
90 – 100 Walker’s Paradise. Daily errands do not require a car.
70 – 89 Very Walkable. Most errands can be accomplished on foot.
50 – 69 Somewhat walkable. Some errands can be accomplished on foot.
25 – 49 Car-Dependent. Most errands require a car.
0 – 24 Car-Dependent. Almost all errands require a car.
Prior to occupancy or other appropriate trigger, the applicant must show all applicable
transportation systems are adequate to serve the proposed development and must
meet minimum City standards. The Applicant has been advised of specific code
provisions that will apply with future development proposals.
G. Promotion of compatible urban growth.
Criterion Met. The Bozeman Community Plan establishes a preferred and compatible
development pattern. “The land use map sets generalized expectations for what goes
where in the community… The land use categories and descriptions provide a guide for
appropriate development and redevelopment locations for civic, residential,
commercial, industrial, and other uses. The future land use designations are important
because they aim to further the vision and goals of the City through promoting
sustainability, citizen and visitor safety, and a high quality of life that will shape
Bozeman’s future.” (Community Plan P. 51)
Individuals may have widely varying opinions about what constitutes compatibility. To
address this wide variation of viewpoint, Compatible development and Compatible land
use are defined in Article 38.7 BMC to establish a common reference for consideration
of this criterion and application of development standards. They are defined as:
“Compatible development. The use of land and the construction and use of
structures which is in harmony with adjoining development, existing
neighborhoods, and the goals and objectives of the city's adopted growth policy.
Elements of compatible development include, but are not limited to, variety of
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architectural design; rhythm of architectural elements; scale; intensity;
materials; building siting; lot and building size; hours of operation; and integration
with existing community systems including water and sewer services, natural
elements in the area, motorized and non-motorized transportation, and open
spaces and parks. Compatible development does not require uniformity or
monotony of architectural or site design, density or use.
Compatible land use. A land use which may by virtue of the characteristics of its
discernible outward effects exist in harmony with an adjoining land use of
differing character. Effects often measured to determine compatibility include,
but are not limited to, noise, odor, light and the presence of physical hazards such
as combustible or explosive materials.”
As noted in the definition of Compatible development, there are many elements that
contributed to compatibility. The final sentence of the definition deserves emphasis
“Compatible development does not require uniformity or monotony of architectural or
site design, density or use.” Compatible development can be different than what is
already in place. The City has adopted a variety of standards to implement compatibility.
The proposed R-1 (RA) district is primarily residential in character. The allowed uses for
residential districts are set in 38.310.030. Table 38.310.030.A - Permitted general and
group residential uses in residential zoning districts, shows permitted uses in the R-1
districts and Table 38.310.030.B details permitted accessory and non-residential uses
in residential zoning districts. The form and intensity standards for residential districts
are in 38.320.030.
Adjacent municipal zoning includes R-S (RA), R-1 (RA), R-3 (RB), B-2M. To the south are
a few additional inholdings of land zoned A-S and M-1 in the County. The existing Bridger
Creek subdivision (zoned R-S, R-1, and R-3) has developed between 2 - 20 living units per
acre while the Legends at Bridger Creek, to the northeast is zoned R-1 and R-3, has
developed between 5 – 20 living units per acre. Residential density is tracked through our
Land Use Plan and the Bozeman’s Strategic Plan. See Map 6 in Section 1 or go directly to
the Residential Density Map online. With the exception of un-annexed and undeveloped
areas nearby, this area is considered low density suburban development which, in
general, is typical of the R-1 district. While residential density represents a snapshot in
time, is does provide a qualifiable metric to assist in the compatible urban character
determination. Densities are expected to increase over time. Current City Code requires
minimum density for the R-1 through R-3 districts is 5, R-4 is set at 8 dwelling per net
acre, and R-5 is 8 dwelling per gross acre.
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The intent of the R-1 district, 38.300.100.B, BMC, “R-1 residential low density district is
to provide for primarily single-household residential development and related uses
within the city at urban densities. These purposes are accomplished by:
1. Providing for a minimum lot size in developed areas consistent with the
established development patterns while providing greater flexibility for
clustering lots and housing types in newly developed areas.
2. Providing for such community facilities and services as will serve the area's
residents while respecting the residential character and quality of the area.
The proposed amendment is associated with an annexation creating an incremental
increase in the size of the City. As discussed in Section 6, Criterion A above, both the
City’s and County’s growth policies expect this area to transition from rural to urban
development.
The City Commission has adopted standards to control development impacts and
support compatibility. The following excerpt from the BCP 2020, page 75 describes the
City’s approach.
“What combination of uses under what conditions can work well together? There
is a wide range of possible answers for each community to consider. Some
communities take a highly prescriptive worst-case view and try to restrain all
possible points of perceived conflict. This tends to create a very homogenous
community with little interest or scope for creativity. Bozeman takes a different
approach. The worst case scenario is recognized as unlikely, but possible.
Development standards deal with the majority of cases, while restraining
extraordinary problems.
The City creates standards under items 1 through 3; when one district is adjacent
to another and is consistent with the growth policy, any physical conflicts will be
minimal, if present at all. The City’s zoning policy encourages continued
development of mixed uses. … The City uses the broad scope of its development
standards to enable differing uses to be successful near each other. This shows
on the zoning map where districts providing a wide diversity of uses are
intermixed.”
This proposal amends the zoning map and not the text. Therefore, no element of this
amendment modifies the standards of any zoning district. The character of the districts
as created by those standards remains intact.
As noted above, the City Commission has latitude in considering the geographical
extents of a zoning district. Application of any municipal zoning district to the subject
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property may alter the existing character of the subject property. It is not expected that
zoning freeze the character of an area in perpetuity. Rather, it provides a structured
method to consider changes to the character. The BCP 2020 notes,
“…when considering an amendment to the zoning map both the actual and
possible built environment are evaluated. If the amendment is accompanying an
annexation request, there is often a substantial change in use that will occur. In
this case, the Commission must look at what the growth policy recommends for
the area, as there is less built context to provide guidance.”
The BCP 2020 includes several objectives applicable to this criterion. These are:
N-1.11 Enable a gradual and predictable increase in density in developed areas over
time.
N-1.2 Increase required minimum densities in residential districts.
N-3.5 Strongly discourage private covenants that restrict housing diversity or are
contrary to City land development policies or climate action plan goals.
Application of any municipal zoning district to the subject property and subsequent
development will alter the existing character of the subject property. Likewise,
development under any municipal zoning district will be visually different from adjacent
unannexed property. This is true even if both are used for similar types of housing due to
the differences between municipal and county zoning.
Staff concludes that the R-1 is compatible urban growth as called for in the growth
policy. See also discussion for Section 6, Criteria A & H.
H. Character of the district.
Criterion Met. Section 76-2-302, MCA says “…legislative body may divide the
municipality into districts of the number, shape, and area as are considered best suited
to carry out the purposes [promoting health, safety, morals, or the general welfare of the
community] of this part.” Emphasis added.
This proposal amends the zoning map and not the text. Therefore, no element of this
amendment modifies the standards of any zoning district. The character of the districts
as created by those standards remains unaltered. Even though the criterion is most
applicable to text amendments it still must be applied to consideration of zoning map
amendments. The requested zoning meets the requirements of this criterion because
the future land use map show this area as Urban Neighborhood and much of the
surrounding area has developed as low density residential with a transition to more
commercial and industrial activity the closer to the intersection of Story Mill Road and
Bridger Canyon Drive.
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Most adjacent lands are zoned low to moderate density residential districts. The
surrounding zoning, including industrial areas, existing roads, and anticipated
development represent an evolving character of the area. The requested zoning is listed
as an implementing zone for the future land designated in the BCP. The proposed
amendment only applies to the Applicant’s property and does not change what is or is
not allowed on adjacent property.
As noted above, the City Commission has discretion within the limits of the State
established criteria in considering the location and geographical extents of a zoning
district. Implementation of zoning must also be in accordance with the adopted growth
policy. As noted in Section 6, Criterion A, the City policy calls for a diverse and densifying
land use pattern. See discussion in Section 6, Criterion A.
The BCP 2020 includes several objectives applicable to this criteria. These are:
N-1.11 Enable a gradual and predictable increase in density in developed areas over
time.
N-1.2 Increase required minimum densities in residential districts.
N-3.5 Strongly discourage private covenants that restrict housing diversity or are
contrary to City land development policies or climate action plan goals.
Application of any municipal zoning district to the subject property and subsequent
development may alter the existing character of the subject property with future
development. Likewise, development under any municipal zoning district will be visually
different from adjacent unannexed property. This is true even if both are used for similar
types of housing due to the differences between municipal and county zoning. The
application of municipal zoning will not require changes to the long-standing existing use
of the site.
Zoning doesn’t freeze the character of an area in perpetuity. Rather, it provides a
structured method to consider changes to the character. The BCP 2020 notes,
“…when considering an amendment to the zoning map both the actual and
possible built environment are evaluated. If the amendment is accompanying an
annexation request, there is often a substantial change in use that will occur. In
this case, the Commission must look at what the growth policy recommends for
the area, as there is less built context to provide guidance.”
See Section 6, Criterion A above for discussion about the application and growth policy
and anticipated change to the character of the area.
The City has defined compatible development as:
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“The use of land and the construction and use of structures which is in harmony
with adjoining development, existing neighborhoods, and the goals and objectives
of the city's adopted growth policy. Elements of compatible development include,
but are not limited to, variety of architectural design; rhythm of architectural
elements; scale; intensity; materials; building siting; lot and building size; hours of
operation; and integration with existing community systems including water and
sewer services, natural elements in the area, motorized and non-motorized
transportation, and open spaces and parks. Compatible development does not
require uniformity or monotony of architectural or site design, density or use.”
As noted above, the City Commission has latitude in considering the geographical
extents of a zoning district. To date, the City of Bozeman has not defined a specific area
outside of the area itself to be rezoned for consideration of this criterion. A review of the
existing uses within a quarter mile radius of the amendment site shows three zoning
districts. First is R-1, the same as what is being proposed which allows a variety of
housing types or golf course in close proximity. Second, R-3, is a municipal district and
allows a wide variety of housing types including detached homes, townhomes, and other
forms of attached homes, as well as various institutional and light commercial uses.
REMU which is mixed-use in character and provides options for a variety of housing,
employment, retail and neighborhood service opportunities within a new or existing
neighborhood. Third, there is an area of B-2M zoning across Story Mill Road. The B-2M
is considered a commercial zone although it allows a wide variety of residential uses
on any floor of a proposed building. As with all districts in the city, a full suite of
standards applies to address potential impacts of development on adjacent
properties. Finally, A-S, is a county zoning district focused on low density residential and
preservation of agricultural operation until it transitions to urban development. See
discussion under Section 6, Criterion A above.
Page 77 of the BCP 2020 describing review of zoning map amendments states “When
evaluating compliance with criteria, it is appropriate to consider all the options allowed
by the requested district and not only what the present applicant describes as their
intensions.” When evaluating compatibility between zoning districts, Staff considers the
full range of allowable uses, not only what is built now or proposed by a specific project.
Permitted uses in the R-1 zone are similar the prevailing typologies in the area.
The City, as shown by an examination of the zoning map and authorized uses in all zoning
districts, strives to encourage a diverse development pattern and avoid large areas of
single use development. This is further supported by the statement in the description of
the Urban Neighborhood future land use category, “Large areas of any single type of
housing are discouraged.” No size is specified for what is a large area. Therefore, when
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considering the character of an area it is expected that there will be diversity of
development types. This diversity is also shown on the zoning maps in Section 1.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
38.310 Permitted
Uses
What can be done
where in the city.
Growth policy Subdivision, site plan,
building permit
38.320 Form and
Intensity
Standards
Standards for
building placement
and maximum size
Subdivision, site plan,
building permit
38.320.060 Zone
Edge Transitions
Height
adjustments on the
edge of some
zones
Site plan
38.340 Overlay
District Standards
Historic
preservation
SOI Standards for
Historic
Preservation,
Design Guidelines
for Historic
Preservation
Site plan and building
permit
38.5 Project
Design
Site layouts,
landscaping,
building
configuration,
signs, lighting
Site plan and building
permit
Table 4 of the BCP 2020, see Section 6, Criterion A above, identifies the implementing
zoning districts of the Urban Neighborhood future land use category. That category
allows for zoning districts that authorize a wide range of possible future development.
There are no zoning districts which are limited to only one type of development. All zoning
districts implementing the Urban Neighborhood category provide for a range of housing
types, institutions, and commercial activities. The expansiveness and intensity allowed
varies between districts. As noted in this report, the BCP 2020 calls for evaluation of the
entire range of uses in zoning districts when evaluating criteria for zoning amendments.
The R-1 zoning district and the adjacent R-1, R-3, zoning districts are residential in nature
and are more similar than different in uses and standards while the B-2M across Story
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Mill Road to the east is primarily commercial, there is a substantial buffer between these
districts.
Evaluation of this situation is guided by the growth policy. On page 76 of the BCP 2020
under discussion of application of this zoning criteria states:
“Second, when considering an amendment to the zoning map both the actual
and possible built environment are evaluated. If the amendment is
accompanying an annexation request, there is often a substantial change in
use that will occur. In this case, the Commission must look at what the growth
policy recommends for the area, as there is less built context to provide
guidance.”
The City has adopted many standards to identify and avoid or mitigate demonstrable
negative impacts of development. These will support the ability of future development in
R-1 (RA) to be compatible with adjacent development and uphold the residential
character in an area. The following excerpt from the BCP 2020, page 75 describes the
City’s adopted approach.
“What combination of uses under what conditions can work well together?
There is a wide range of possible answers for each community to consider.
Some communities take a highly prescriptive worst-case view and try to
restrain all possible points of perceived conflict. This tends to create a very
homogenous community with little interest or scope for creativity. Bozeman
takes a different approach. The worst-case scenario is recognized as unlikely,
but possible. Development standards deal with the majority of cases, while
restraining extraordinary problems.
The City creates standards under items 1 through 3; when one district is
adjacent to another and is consistent with the growth policy, any physical
conflicts will be minimal, if present at all. The City’s zoning policy encourages
continued development of mixed uses. … The City uses the broad scope of its
development standards to enable differing uses to be successful near each
other. This shows on the zoning map where districts providing a wide diversity
of uses are intermixed.”
The standards adopted by the City prevent physically dangerous spillover effects. An
example is the capture, treatment and discharge controls from additional storm water
runoff as additional impervious surfaces are built. Required setbacks from property
lines, landscaping requirements, and similar site and building standards address
character and compatibility. These and other standards carry out the intent and purpose
of the City’s land development standards in Chapter 38 of the municipal code.
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Sec. 38.100.040. - Intent and purpose of chapter.
A. The intent of this unified development chapter is to protect the public
health, safety and general welfare; to recognize and balance the various
rights and responsibilities relating to land ownership, use, and
development identified in the United States and State of Montana
constitutions, and statutory and common law; to implement the city's
adopted growth policy; and to meet the requirements of state law.
Zoning does not prohibit change but provides a structure within which change can occur.
Such changes include modifications to both the text and zoning map. Such amendments
are authorized in the zoning enabling act for municipalities. Landowners have both
property rights and responsibilities. The City has adopted development standards to
ensure that responsibilities are met while landowners exercise their property rights. The
City has not chosen, and is not required, to adopt standards for all issues. For example,
standards have not been adopted regarding preservation of view sheds or extra
separation of buildings from unannexed property.
See also discussion for Section 6, Criteria A, G, and F.
I. Peculiar suitability for particular uses.
Criterion met. The proposed amendment does not modify the existing standards of the
R-1 districts. Therefore, the impact of the amendment is limited to this application site.
The property is flat and without significant environmental constraints. The property is
within the City’s planning area for land use and utility extensions. There is frontage on
Story Mill, a Collector Street, and Boylan Roads. Municipal utilities and emergency
services can be extended to the area.
Municipal Code
Section and Title
Subject Related
Documents
When standard is
applied
38.310 Permitted
Uses
What can be done
where in the city.
Growth policy Subdivision, site plan
review, building permit
38.320 Form and
Intensity
Standards
Standards for
building placement
and maximum size
Subdivision, site plan
review, building permit
38.600 Natural
Resource
Protection
Protect
watercourses and
wetlands
FEMA Floodplain
study
Subdivision, site plan
review, building permit
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Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 39 of 42
The context, physical features, future land designation are not unusual for properties
adjacent to the City and described features support annexation and development within
the City. While others use may be suitable, residential uses are suitable for this property.
J. Conserving the value of buildings.
Criterion met. The proposed amendment does not modify the existing standards of the
R-1 district. R-1 zoning is primarily low density residential in nature. The immediate
Future Land Use and zoning surrounding the property is residential in nature. County
zoning to the south is industrial.
Any new structures at the site will be required to meet setback and other protective
requirements set forth in the Bozeman Municipal Code. Compliance will alleviate
potential negative impacts to the value of surrounding buildings and properties. As
described in earlier criteria, the proposed zoning is compatible with existing buildings on
adjacent properties and does not create any new situations not in compliance with
municipal code.
K. Encourage the most appropriate use of land throughout the jurisdictional area.
Criterion Met. The proposed R-1 zoning designation will encourage the most appropriate
use of land as the property is adjacent to both residential and commercial uses. There is
access to the city’s services, including streets, thus is able to support uses as allowed
within the R-1 zoning district. Furthermore, the proposed R-1 zoning designation is
consistent with the BCP 2020 future land use map designation of “Urban
Neighborhood”.
APPENDIX A - NOTICING AND PUBLIC COMMENT
Notice was published in the Bozeman Daily Chronicle on January 3 and 10, 2026. The
notice was posted on site and notices mailed by the applicant as required by 38.220 and
the required confirmation provided to the Planning Office. Notice was provided at least
15 and not more than 45 days prior to any public hearing.
No public comment has been received on this application as of the production of this
report.
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Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 40 of 42
APPENDIX B - PROJECT GROWTH POLICY AND PROPOSED ZONING
Adopted Growth Policy Designation:
The property is designated as “Urban Neighborhood” in the Bozeman Community Plan
2020.
“This category primarily includes urban density homes in a variety of types,
shapes, sizes, and intensities. Large areas of any single type of housing are
discouraged. In limited instances, an area may develop at a lower gross density
due to site constraints and/or natural features such as floodplains or steep
slopes. Complementary uses such as parks, home-based occupations, fire
stations, churches, schools, and some neighborhood-serving commerce provide
activity centers for community gathering and services. The Urban Neighborhood
designation indicates that development is expected to occur within municipal
boundaries. This may require annexation prior to development.
Applying a zoning district to specific parcels sets the required and allowed
density. Higher density residential areas are encouraged to be, but are not
required or restricted to, proximity to commercial mixed use areas to facilitate the
provision of services and employment opportunities without requiring the use of
a car.”
Proposed Zoning Designation and Land Uses:
The applicant has requested zoning of R-1, Residential Low-Density District, whose
intents are:
The intent of the R-1 residential low-density district is to provide for primarily single-
household residential development and related uses within the city at urban densities.
These purposes are accomplished by:
1. Providing for a minimum lot size in developed areas consistent with the
established development patterns while providing greater flexibility for clustering
lots and housing types in newly developed areas.
2. Providing for such community facilities and services as will serve the area's
residents while respecting the residential character and quality of the area
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446
Staff Report for the 1071 Story Mill Road Annexation and ZMA, No. 25525 Page 42 of 42
APPENDIX C - OWNER INFORMATION AND REVIEWING STAFF
Owner: Great Norther Golf Company of Montana, 2710 McIllhattan Road, Bozeman, MT
59715
Applicant: 45 Architecture & Interiors, 4204 Ravalli Street, Bozeman, MT 59715
Representative: 45 Architecture & Interiors, 4204 Ravalli Street, Bozeman, MT 59715
Report By: Tom Rogers, Senior Planner, Community Development Department
FISCAL EFFECTS
No unusual fiscal effects have been identified. No presently budgeted funds will be
changed by this Annexation or Zone Map Amendment.
ATTACHMENTS
The full application and file of record can be viewed at the Community Development
Department at 20 E. Olive Street, Bozeman, MT 59715. The application materials can also
be viewed online by clicking the following web link.
https://weblink.bozeman.net/WebLink/Browse.aspx?id=303855&dbid=0&repo=BOZEMAN
447
Memorandum
REPORT TO:City Commission
FROM:Alex Newby, Deputy City Clerk
Mike Maas, City Clerk
Sarah Rosenberg, Historic Preservation Officer
SUBJECT:Appointment to the Historic Preservation Advisory Board
MEETING DATE:February 10, 2026
AGENDA ITEM TYPE:Citizen Advisory Board/Commission
RECOMMENDATION:Consider the Motion: I move to appoint [INSERT NAME] to an At-large
position on the Historic Preservation Advisory Board for a term ending July
1st, 2027.
STRATEGIC PLAN:1.2 Community Engagement: Broaden and deepen engagement of the
community in city government, innovating methods for inviting input from
the community and stakeholders.
BACKGROUND:With one vacant spot in need of filling on the Historic Preservation Advisory
Board, this appointment will have all seats appointed.
UNRESOLVED ISSUES:None
ALTERNATIVES:As determined by Commission.
FISCAL EFFECTS:None.
Attachments:
HPAB Applications for Feb 2026 Appointment.pdf
Report compiled on: July 28, 2025
448
Submit Date: Dec 05, 2025
Email Address
First Name Middle
Initial
Last Name
Home Address Suite or Apt
City State Postal Code
Primary Phone Alternate Phone
Employer Job Title Occupation
Boards & Commissions
Application Form
Profile
Which Boards would you like to apply for?
Bozeman Historic Preservation Advisory Board: Submitted
How did you hear about this Board/Commission or vacancy?
Elle Limesand - daughter
Interests & Experiences
Please tell us about yourself and why you want to serve.
Do you live within Bozeman city limits? (Some positions do require you live
within Bozeman city limits, while others do not.)
Yes No
How long have you lived in the Bozeman area? *
6-10 years
Have you ever served on a City or County Board or Commission?
Yes No
If yes, where, for how long, and on what Board/Commission?
0 Years
Gary M Limesand
Bozeman MT 59715
Retired - 35 Year Career withBoeing Company Flight Crew Operations -Engineer Engineer
Gary M Limesand 449
Please describe your professional and personal experiences, interests, and
qualifications that make you a good fit for this board.
I grew up in Chester Montana and was a grandson of Montana homesteaders on both sides of
my family. After graduating from Montana State University in engineering, I worked at
Boeing 35 years before retiring and moving back to Bozeman Montana. I have always been
interested in Montana history, and I believe Bozeman Montana has some of the most
fascinating history of all Montana cities. During my professional career at Boeing, I worked
with airline customers, pilots and engineers. My job responsibilities included running
meetings and providing presentations to customers and Boeing managers on aircraft
technologies and aircraft issues and solutions. This summer, I volunteered for Bozeman's
Extreme History and was a guide on the Bozeman Creek and the Wheatfields, Railroads and
Brewery walking tours. I'm currently volunteering for Befrienders and on the HOA board for
the Legends II neighborhood.
On December 19, 2023, the City Commission adopted the Belonging in
Bozeman Plan via <a
href="https://weblink.bozeman.net/WebLink/DocView.aspx?
id=291616&dbid=0&repo=BOZEMAN" target="_blank"
rel="noopener">Resolution 5556</a>. Please describe your understanding of
the Belonging in Bozeman Plan and any thoughts related to implementing
the plan.
My understanding is that Resolution 5556 is to be inclusive of all Bozeman citizens. This
would be important for the Bozeman Historic Preservation Advisory Board, since Bozeman
history needs to reflect the actual history and not exclude people or history based on their
race, sex or religion. In my professional career, I work overseas with workers from countries
all over the world.
References
Reference #1 Full Name
Armand Begnoche
Relationship to Reference
neighbor
Phone Number
Email
Confirm Email
Gary M Limesand 450
Reference #2 Full Name
Crystal Alegria
Relationship to Reference
Boss - Extreme History
Phone
Email
Confirm Email
The Bozeman City Charter, voted in by the citizens of Bozeman in 2008,
requires annual ethics training. If appointed, do you understand you will be
required to take online and in person ethics training?
Yes No
If you have a disability that requires assistance or need accommodations, please
contact our ADA Coordinator at 406.582.2439.
Please note that for most City Boards, materials are distributed electronically for each
meeting.
Your application and all information submitted is considered a public record. All
applications are included in the City Commission’s Meeting materials for consideration
which are electronically archived and available to the public.
Gary M Limesand 451
Submit Date: Nov 19, 2025
Email Address
First Name Middle
Initial
Last Name
Home Address Suite or Apt
City State Postal Code
Primary Phone Alternate Phone
Employer Job Title Occupation
Boards & Commissions
Application Form
Profile
Which Boards would you like to apply for?
Bozeman Historic Preservation Advisory Board: Eligible
How did you hear about this Board/Commission or vacancy?
City Website
Interests & Experiences
Please tell us about yourself and why you want to serve.
Do you live within Bozeman city limits? (Some positions do require you live
within Bozeman city limits, while others do not.)
Yes No
How long have you lived in the Bozeman area? *
11 or more
Have you ever served on a City or County Board or Commission?
Yes No
If yes, where, for how long, and on what Board/Commission?
Tree Board for a couple of years in early 200s. I think I was on it for a couple years.
Danielle Nicholas
Bozeman MT 59715
MSU, Montana MindfulnessProject Instructor Teacher/Instructor
Danielle Nicholas 452
Please describe your professional and personal experiences, interests, and
qualifications that make you a good fit for this board.
Historic preservation is something I have always had an interest and connection with. From
working for the Department of Interior to volunteering at the Tinsley House at the Museum of
the Rockies to lovingly remodeling a 1905 home in a historic district, I have experienced
many facets of historic preservation. While living and working for the Department of the
Interior as an education specialist for the National Park Service in Yellowstone National Park,
I had the professional responsibility of not only interpreting for the public the natural
wonders of Yellowstone, but the human history as well. This included the many people who
have called Yellowstone home as well as the structures of Fort Yellowstone, a National
Registered Historic Area. Through this I gained experience with how the public interests with
historical and cultural landscapes. Additionally, I had firsthand experience with what is
involved with planning and construction in historic areas. I am a longtime Bozemanite,
having moved here right after college. In the summer when my teaching schedule was
lighter, I volunteered at the Tinsely House at the Museum of Rockies. Again, this deepened
my experience with how the public interacts with cultural and historic landscapes. I am
passionate about the history of the Gallatin Valley and the physical structures which connect
us to the history of those who come before. Likewise, I have served on the Board of Directors
of the Emerson Cultural Center. This building, finished, in 1920 served first as a school and
now as a hub for community and the arts. Through my service, I gained increased
experience in not only the maintenance of a historic building, but the ways in which history
and community interact- how we become part of a building’s story as it becomes part of our
story, weaving the tapestry of culture landscape and belonging. As Bozeman is at a
crossroads, it is important to recognize the continuum we are a part of- those that have
come before, those that are here now, and those yet to come. I see historic preservation as a
way of building community across the generations. I have lived and am raising my daughter
in a 1905 home in Cooper Park Historic District, a national designated historic area. I have
had firsthand experience of preserving a structure while adapting it to modern living. It is a
dance for sure and one that can be done. During this process back in the 2013-2014, Alyson
Brekke was the HPO for the city. We went back and forth numerous times with her on the
plans so that the changes we wanted to make complied with the NCOD guidelines and
historic preservation. This was my first introduction to city building codes and the numerous
forces which interact. I am happy to say we updated and modernized a historic home while
retaining the original portion of the house and much of the flooring. During the process the
connection to past was undeniable, we found a bottle of ink from the early 1900s and a beer
bottle from the late 1930s from the Midwest. As someone who has traveled throughout the
US and world, it is the historic areas of town which myself and many other tourists are
drawn. In addition to our unparalleled access to the outdoors, it is the “charm” of Bozeman
which draws many, both tourists and new residents, to town. Our historic buildings and
districts are one of the economic engines of Bozeman. Preserving these while adapting them
to modern use is a win-win on both sides. In my neighborhood and those to the east, there
are many beautiful of examples of larger historic homes being saved while providing
affordable, multi-unit living for hardworking and/or studying Bozemanites. We can have
both! I think my experience both professional and personal, combined with my true and
longtime passion for historic preservation and the Bozeman community as a whole make me
an excellent candidate for a seat on the Historic Preservation Board. Additionally, I find the
Landmark Program very exciting with a lot of potential. Should I be appointed to the HPAB, I
would welcome the opportunity to engage with this process.
Danielle Nicholas 453
On December 19, 2023, the City Commission adopted the Belonging in
Bozeman Plan via <a
href="https://weblink.bozeman.net/WebLink/DocView.aspx?
id=291616&dbid=0&repo=BOZEMAN" target="_blank"
rel="noopener">Resolution 5556</a>. Please describe your understanding of
the Belonging in Bozeman Plan and any thoughts related to implementing
the plan.
I was delighted to read the Belonging in Bozeman Plan. Many of the items mentioned are
ones that I have worked on in my professional sphere first as a public school teacher and
then as a longtime Non-Tenure Track Faculty at MSU. My work in creating inclusive
classroom is a microcosm of my work within my community in day-to-day interactions with
friends, neighbors, and those I encounter. I have facilitated space for countless young adults
as they grapple with who they are and invest in their human capital for meaningfulness and
sustainable careers. Through my work with Montana Mindfulness Project, I actively engage
individuals and communities throughout Montana to provide tools for increased resilience on
the individual, family, and community scale. My family is involved in ranching in SW Montana
and so the economic realities of climate change are something front and center in my mind.
References
Reference #1 Full Name
Jenna Fallaw
Relationship to Reference
friend
Phone Number
Email
Confirm Email
Reference #2 Full Name
Betsy Garrigues
Relationship to Reference
friend
Phone
Danielle Nicholas 454
Email
Confirm Email
The Bozeman City Charter, voted in by the citizens of Bozeman in 2008,
requires annual ethics training. If appointed, do you understand you will be
required to take online and in person ethics training?
Yes No
If you have a disability that requires assistance or need accommodations, please
contact our ADA Coordinator at 406.582.2439.
Please note that for most City Boards, materials are distributed electronically for each
meeting.
Your application and all information submitted is considered a public record. All
applications are included in the City Commission’s Meeting materials for consideration
which are electronically archived and available to the public.
Danielle Nicholas 455