HomeMy WebLinkAbout08-13-07_Resolution No_ 4054, Property Tax Increase for Fir_12
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chuck Winn, Fire Chief
Chris Kukulski, City Manager
SUBJECT: Fire Department Mill Levy Options
MEETING DATE: August 13, 2007
RECOMMENDATION: The City Commission pass Resolution No. 4054, A RESOLUTION
OF THE CITY COMMISSION SUBMITTING TO THE QUALIFIED ELECTORS OF THE
CITY OF BOZEMAN, MONTANA, THE QUESTION OF AUTHORIZING THE CITY OF
BOZEMAN TO EXCEED THE STATUTORY MILL LEVY LIMIT PROVIDED FOR IN
SECTION 15-10-420, M.C.A., BY ANNUALLY LEVYING UP TO SIXTEEN (16) MILLS AS
FOLLOWS: UP TO TWELVE (12) MILLS TO FUND AND SUSTAIN STAFFING LEVELS
AND OPERATIONS OF AN ADDITIONAL CITY FIRE STATION (FIRE STATION 3), AND
UP TO FOUR (4) MILLS TO FUND THE FIRE DEPARTMENT’S EQUIPMENT AND
CAPITAL RESERVE PLAN.
BACKGROUND:
In November 2006, the City Commission adopted the City’s Fire Protection Master Plan. That
plan strongly recommended the immediate construction and staffing of a third fire station in the
northwest quadrant of the city. Subsequent to the adoption of that plan and City Commission
direction, the Fire Department has been working to construct, equip, and staff Station #3.
Because they are 100% eligible, we expect impact fees to pay for the construction and engine
costs for Station #3. If the station opened in FY2009, we would need to borrow the equivalent of
two years’ of fire impact fees ($650,000). This borrowing could be internally or externally
financed.
Location. The City has been working closely with Gallatin County to explore the possibility of
collocating with the new 9-1-1 center in the County’s regional park. This collocation is expected
to provide important fiscal and operational efficiencies for both agencies if the joint project
progresses. Our projected costs anticipate construction at the County park site.
Staffing. A total of 15 firefighters are needed to fully staff the fire department once the new
station is operational. The city has been able to fund 4 of the 15 additional firefighters needed
with existing general fund dollars. The twelve (12) mills for staffing and station operations
include the personnel costs, firefighter protective clothing, and operations costs for the new fire
station.
Equipment and Capital Plan. We have undertaken a comprehensive analysis of our current and
anticipated future capital equipment needs, including the scheduled replacement of current
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apparatus after its safe and useful service life. As the city grows and the fire department
responds to that growth, we will increase our inventory of emergency equipment and can
anticipate the service life of that equipment. Planning for the replacement of the city’s fire
apparatus is good public policy and the attached table shows the service life and anticipated
future replacement costs of that equipment. Four (4) mills of the sixteen (16) mill total would
fund this equipment and capital reserve plan.
Equipment & Capital Reserve - 4 Mills
Fiscal
Year Revenues Replacements Description Balance
2009 278,903 - 278,903
2010 290,059 196,125 Engine #1 372,837
2011 301,662 674,499
2012 313,728 988,227
2013 326,277 1,276,282 Ladder Truck 38,222
2014 339,328 - 377,550
2015 352,901 730,452
2016 367,017 1,097,469
2017 381,698 186,159 1,293,008
2018 396,966 733,003 Engine #2 956,971
2019 412,845 1,369,816
2020 429,358 1,799,174
2021 446,533 1,150,246 Engine #3 1,095,461
2022 464,394 - 1,559,855
2023 482,970 2,042,825
2024 502,289 982,294 Engine #1 1,562,820
2025 522,380 1,031,408 Engine #4 1,053,792
2026 543,275 1,597,067
2027 565,006 2,162,074
2028 587,607 2,749,680
2029 611,111 3,360,791
2030 635,555 1,316,367 Engine #2 2,679,979
2031 660,978 3,340,957
2032 687,417 4,028,373
2033 714,913 1,523,860 Engine #3 3,219,427
2034 743,510 3,555,673 Ladder Truck 407,264
2035 773,250 1,180,514
2036 804,180 1,764,058 Engine #4 220,637
FISCAL EFFECTS:
There are no immediate fiscal effects. If the proposed resolution is adopted and the proposed
levy passes, the tax revenue would be budgeted and available in FY09 (estimated to total $1.2
Million.) For the City’s median homeowner, with a taxable market value of $89,000, this 16 mill
levy would cost $44.80 per year, or an additional $3.73 per month.
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Bozeman Median Homeowner ($89,000 taxable
market value)
$44.80 per
year
$3.73 per
month
$100,000 taxable market value $48.16 per
year
$4.01 per
month
$200,000 taxable market value $96.32 per
year
$8.02 per
month
ALTERNATIVES: As suggested by the Commission.
Respectfully submitted,
_________________________________ ____________________________
Chuck Winn, Fire Chief Chris A. Kukulski, City Manager
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COMMISSION RESOLUTION NO. 4054
A RESOLUTION OF THE CITY COMMISSION SUBMITTING TO THE
QUALIFIED ELECTORS OF THE CITY OF BOZEMAN, MONTANA,
THE QUESTION OF AUTHORIZING THE CITY OF BOZEMAN TO
EXCEED THE STATUTORY MILL LEVY LIMIT PROVIDED FOR IN
SECTION 15-10-420, M.C.A., BY ANNUALLY LEVYING UP TO
SIXTEEN (16) MILLS AS FOLLOWS: UP TO TWELVE (12) MILLS TO
FUND AND SUSTAIN STAFFING LEVELS AND OPERATIONS OF AN
ADDITIONAL CITY FIRE STATION (FIRE STATION 3), AND UP TO
FOUR (4) MILLS TO FUND THE FIRE DEPARTMENT’S EQUIPMENT
AND CAPITAL RESERVE PLAN.
WHEREAS, the City of Bozeman has comprehensively reviewed its fire
protection services; and
WHEREAS, the City Commission adopted the Fire Protection Master Plan in
December 2006 and that plan strongly recommends the immediate construction and
staffing of a third Bozeman fire station in the northwest quadrant of the city; and
WHEREAS, the Bozeman Fire Department has undertaken a comprehensive
analysis of its current and anticipated future capital equipment needs, including the
scheduled replacement of current apparatus after its safe and useful service life; and
WHEREAS, City staff has projected the costs of funding known and anticipated
capital and equipment replacement and desires to plan for equipment replacement; and
WHEREAS, additional money is needed to fund staffing and operations for Fire
Station 3 and to fund the Fire Department’s capital and equipment replacement program,
as follows: up to twelve (12) mills for staffing and station operations include the
personnel costs, firefighter protective clothing, and operational costs for the new fire
station; and up to four (4) mills to fund the Fire Department’s capital and equipment
replacement plan including the replacement of the department’s aging ladder truck in
2013.
WHEREAS, City staff has conducted a complete analysis of its revenues and
expenditures for the past two years as well as projected revenues for the upcoming fiscal
year; and
WHEREAS, the expenditure level necessary to continue to maintain adequate
fire protection services to the citizens of the City of Bozeman cannot be reached by
existing revenues; and
WHEREAS, Section 7-6-4431, Montana Code Annotated, authorizes a municipal
governing body to exceed the maximum mill levy allowed by Section 15-10-420,
M.C.A., upon approval of a majority of the qualified electors voting in an election; and
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WHEREAS, on June 25, 2007 the City Commission adopted Commission
Resolution No. 4026 authorizing that the 2007 general election be conducted by mail
ballot; and
WHEREAS, the City Commission desires to present to the electors at the 2007
general election by mail ballot a proposal to authorize the City of Bozeman to levy up to
sixteen mills annually to fund staffing and operations of a new city fire station, and
funding for the Fire Department’s equipment and capital reserve plan.
NOW, THEREFORE, BE IT ORDAINED by the City Commission of
the City of Bozeman, Montana:
Section 1
Referral to the Electors: That the question authorizing the City of Bozeman to exceed
the statutory mill levy limit provided for in Section 15-10-420 M.C.A. by annually
levying up to sixteen (16) mills is hereby referred to a vote by the qualified electors of the
City of Bozeman by mail ballot at the 2007 general election.
Section 2
Specific Purpose for Additional Money: That the additional money will be used to fund
staffing and operations for Fire Station 3 and to fund the Fire Department’s capital and
equipment replacement program, as follows: up to twelve (12) mills for staffing and
station operations include the personnel costs, firefighter protective clothing, and
operational costs for the new fire station; and up to four (4) mills to fund the Fire
Department’s capital and equipment replacement plan including the replacement of the
department’s aging ladder truck in 2013.
Section 3
Approximate Number of Mills Required and Specific Dollar Amount to be Raised:
If passed, the Bozeman City Commission will be authorized to levy up to sixteen mills
annually. The specific dollar amount to be raised will change annually depending on the
value of the mill. Based upon the fiscal year 2008 mill rate, the specific dollar amount to
be raised would be $1,104,800.
Section 4
The Duration Limit, if any, on Levy: There is no durational limit on the levy. The
levy will be annually.
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Section 5
Form of Ballot: The ballot form shall be:
PUBLIC SAFETY MILL LEVY - FIRE
That the City Commission of the City of Bozeman, Montana be authorized to exceed the
statutory mill levy limit provided for in Section 15-10-420, M.C.A., by annually levying
up to sixteen (16) mills as follows: up to twelve (12) mills to fund and sustain staffing
levels and operations of an additional city fire station (Fire Station 3), and up to four (4)
mills to fund the Fire Department’s equipment and capital reserve plan. The specific
amount of money that is to be raised will change annually depending on the value of a
mill. Based on the 2008 Fiscal Year mill rate, the specific dollar amount to be raised
would be $1,104,800. The levy shall not sunset. The annual property tax impact on a
home with a taxable market value of $100,000 is approximately $48.16 per year. The
annual property tax impact on a home with a taxable market value of $200,000 is
approximately $96.32 per year.
FOR authorizing the City Commission of the City of Bozeman to
exceed the statutory mill levy limit provided for in Section 15-10-420,
M.C.A., by annually levying up to sixteen (16) mills to fund and sustain
staffing levels and operations of an additional city fire station (Fire Station
3) and fund the Fire Department’s equipment and capital reserve plan.
AGAINST authorizing the City Commission of the City of
Bozeman to exceed the statutory mill levy limit provided for in Section
15-10-420, M.C.A., by annually levying up to sixteen (16) mills to fund
and sustain staffing levels and operations of an additional city fire station
(Fire Station 3) and fund the Fire Department’s equipment and capital
reserve plan.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana,
at a regular session thereof held on the 13th day of August 2007.
JEFF KRAUSS
Mayor
ATTEST:
CYNTHIA JORDAN DELANEY
Acting City Clerk
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APPROVED AS TO FORM:
PAUL J. LUWE
City Attorney
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