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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Kukulski, City Manager
Anna Rosenberry, Administrative Services Director
SUBJECT: Presentation of the FY2015-2016 (FY16) City Manager’s Recommended
Budget
MEETING DATE: May 11, 2015
AGENDA ITEM TYPE: Presentation/Discussion
RECOMMENDATION: Listen to presentation, ask questions, and provide comments.
BACKGROUND: This presentation will outline the FY2015-2016 (FY16) City Manager’s
(CM) Recommended Budget, on a “large scale” view. We will be getting into further details
over the next weeks, with Final Adoption scheduled for June 22, 2015. Following are the
tentatively schedule dates of budget discussions, along with their topics:
May 11: City Manager’s Recommended Budget, overall
May 18: Transportation Projects, including our proposal for a new Special District
Assessment for Arterial and Collector Street Construction.
June 1: Tax Increment District and Business Improvement District Work-plans
and Budgets June 8: General Fund
June 15: Special Revenue Funds (Not including Street Districts/Funds)
Enterprise Funds
June 22: Final Budget Hearing, Appropriation Resolution Hearing June 29: Tentative: 5th Monday, could potentially schedule meeting if necessary.
Attached to this memo is a copy of the Budget Message, which is included in the document
itself. It is a general summary of the budget and its implications for citizens and property
owners. Also attached are the Financial Summaries pages of the Budget document, for your
reference.
The entire “FY2015-2016 City Manager’s Recommended Budget” document is available online
at http://www.bozeman.net/Business/Budgets-and-Financials. Copies are also available to the
public at the Bozeman Library and City Clerk’s office.
UNRESOLVED ISSUES: Because this is the beginning of the formal budget process, there
are many unresolved issues. We will be identifying and discussing those during this presentation
and the budget workshops and hearings in May and June.
ALTERNATIVES: If the Commission would like to make suggestions for changes to the
planned Budget Work Sessions, please do so tonight.
FISCAL EFFECTS: This presentation has no immediate fiscal effects. The adoption of
the final budget in June will have far-reaching fiscal effects. The Recommended Budget has the
following impacts on the Typical Resident:
Typical Resident: Annual Increase Recommended
Budget
Street Maintenance Assessment $16.32
Forestry Assessment $0.33
NEW - Arterial Street Assessment $21.54
Property Taxes $96.00
Water Services $14.40
Sewer Services $16.80
Storm Water Services $18.76
Annual Increase $184.15
Monthly Increase 15.35
The details surrounding these increases will be discussed in detail through the budget adoption
process.
ALTERNATIVES: As suggested by the City Commission.
Report compiled on: May 7, 2015
Document on File: City Manager’s Recommended Budget for Fiscal Year 2015-2016
Attached Documents: Budget Message (excerpt from Budget Document)
CITY MANAGER’S BUDGET MESSAGE
___________________________________________________________
May 4th, 2015
Bozeman City Commission:
I am pleased to present to you the City Manager’s Recommended Budget for Fiscal Year
2015-2016 (FY16). We will be presenting and discussing this recommended plan at public
meetings in May and June, with adoption of a Final Budget tentatively scheduled for the
evening of June 22, 2015.
Commission Goals and the Recommended Budget
The City Commission recently updated its priorities for staff to focus on in the coming
months. Many of these priorities require budgetary support and have been incorporated
into our recommended spending plan for FY16. The following list describes the priorities
with significant budgetary implications; a full listing of the adopted priorities can be found
on page 27.
1.Story Mill Landfill Project
In October of 2012, the City, as part of ongoing monitoring efforts, detected volatile organic
compounds (VOC’s) in the soil at the Story Mill landfill. A loan to the City for approximately $2
million has been approved by the State Revolving Loan Fund in order to design and install a
system to limit the migration of VOCs off the landfill. The program provides a 20-year loan at 3%
annual interest, secured by the City’s Stormwater Fund. This budget includes a tax levy
dedication of 1.74 mills ($140,000) for the estimated required annual loan payment.
The city continues to address claims filed by property owners in this matter. At this time,
insurance coverage is uncertain; the City’s insurers have provided defense, and insurance
coverage continues to be litigated. This budget includes spending $280,000 for ongoing
insurance coverage and litigation matters.
To date, our investigation, mitigation, and other costs have been paid from the Post-Closure
Mitigation and Monitoring fund. The sale of the North Park industrial property in the coming
months could replenish this fund and assist in future legal, project, and ongoing monitoring
costs. This budget includes the proceeds from the Sale of North Park, net of easement costs,
as a deposit to the Post-Closure Mitigation and Monitoring Fund in the amount of $1,130,000.
2. Transportation System Improvements
Over the past 12 months, numerous policy discussions have taken place surrounding the plans
and funding structure for street expansions, reconstruction, and maintenance. Transportation
issues were cited as the number one concern by citizens responding to last year’s Online City
Hall budget priorities question. This Recommended Budget substantially increases funding for
CITY OF BOZEMAN 9 FY16 CITY MANAGER RECOMMENDED BUDGET
transportation projects by adding a new Street Arterial and Collector Assessment fund and
increasing the dollars for pavement maintenance in the current Street Maintenance Fund. In
addition, numerous other projects and efforts that enhance pedestrian and vehicle
transportation are included in the budget recommendation.
a.NEW! The creation of a new Street Arterial and Collector Assessment District. The
Arterial and Collector streets represent the major road-ways through the City. This
district would provide dollars to construct portions of the transportation network
(including the local share of intersections, and missing areas along City-owned parks)
from all property owners via an annual special assessment. Money would be combined
with Impact Fee dollars for the completion of projects; it would replace the 5 mills
(approx. $475,000) in property tax dollars that were dedicated for local share of streets
in FY15. Our goal is to increase this Arterial and Collector Assessment to $2
Million/year, phased in over the next 3 years. This budget contains $578,000 in new
Arterial and Collector assessments. The money will first go to complete the Baxter and
Davis intersection project in FY16. Future years’ capital projects will be incorporated
into the annual CIP.
b.Increase in Street Maintenance Assessments for pavement maintenance. Our goal is to
increase street maintenance funding by $1 Million/year, phased in over the next 3 years.
This budget contains an additional $287,000 for pavement maintenance.
c.Capacity-expanding projects within our Street Impact Fee Fund. We are budgeting to
spend over $8 Million on capacity expanding projects around the city. Projects
include:
a. SIF48 – Cottonwood (Fallon to Alpha Drive) $2,540,000
b. SIF64 – Durston (Cottonwood to Western City Limits) $1,012,000
c. SIF54 – Ferguson (Baxter to Oak) $900,000
d. SIF50 – Laurel Parkway (Durston to Babcock) $700,000
e. SIF42 – Intersection of Baxter and Davis $675,000, additional.
f. Numerous Design contracts totaling nearly $2 Million
d.Street Reconstruction Project. We will be working on North Wallace as the next
Special Improvement District (SID) Reconstruction project. We estimate $626,500 in
Street Maintenance funding and $626,500 in SID funding paid by adjacent property
owners.
e.Gas Tax revenues are estimated to provide $662,400 in funding for pavement
maintenance commodities (primarily asphalt and chip seal.)
f.Main Street Streetscape Special Improvement District. The Downtown Tax Increment
District has been working to bring together numerous reconstruction projects in the
downtown area for sidewalks, lighting, and other streetscape amenities. This coming
year, we have budgeted to issue $4.5 Million in Special Improvement District (SID)
bonds for the streetscape project.
g.Sidewalk Replacements. Under state law, the city may order the installation and
reconstruction of deteriorated sidewalks. We began sending notices to property
owners last summer. We now expect to install $400,000 in sidewalks, to be financed
with an Intercap loan, by adjacent property owners over a 5-year period.
CITY OF BOZEMAN 10 FY16 CITY MANAGER RECOMMENDED BUDGET
3. Water & Sewer Systems
a. We have recently received a proposed update to the Wastewater Collection System master
plan document. This document will come before the City Commission in the next weeks. As a
result of the update, we have included two critical projects for FY16 that were not previously on
the Capital Plan.
South University District Wastewater Project (Total cost estimate of $1,120,000)
Bridger Drive Extension Wastewater Project (Total cost estimate of $400,000)
Both of these projects are necessary to serve existing and growing development around town,
and are funded by a combination of Wastewater utility and impact fee funds.
b. We have also updated our Water and Sewer rate models for the next 5 years. We are
recommending that the Commission adopt two-year rate increases in both the Water and Sewer
Funds of 3% in FY16 and 3% in FY17. The rate increases will help keep our utility operations and
capital projects moving forward, with the required reserves and cash flow for borrowing, as
necessary.
c. We will be borrowing $6.6 Million for the construction of a 5.3 Million gallon water storage
reservoir. The water rates will need to be pledged to repay this loan, as we cannot borrow
against impact fee revenues. This added water storage is a capacity-expanding project that is
necessary for continued development in the city.
4. Storm Water Utility
In 2012 the city created its Storm Water Utility. During the last three years, we have been
working to identify assessment methodologies, infrastructure locations and conditions, and
develop a funding plan for future storm water improvements. On April 13th 2015, the City
Commission adopted Resolution No. 4590 establishing rates for stormwater service based on a
more equitable “impervious surface” method. The new rates will go into effect in May and
December of 2015. This budget includes a full year of “impervious surface” method revenue.
With the implementation of the new rate model, additional staff previously approved in the
FY15 budget (but were not hired) are again included in the FY16 budget. Until the full cash
flow under the new model is established (in FY17,) annual deferred maintenance & pipe
rehabilitation have been scaled back to design phases. The FY16 budget focuses on design of
future pipe rehabilitations and specific system upgrades.
5. Broadband Infrastructure
The Bozeman Fiber Initiative is moving forward. The non-profit was created in May and will
secure the private funding needed for system build-out. A number of the City’s Tax Increment
Financing (TIF) Districts are intended to play a role in funding infrastructure within their
CITY OF BOZEMAN 11 FY16 CITY MANAGER RECOMMENDED BUDGET
boundaries. Presentation of these TIF District work-plans and budgets are scheduled for the
June 1st Commission meeting.
6. Affordable Housing
In November 2014, the City hired a consultant to perform an Affordable Housing Survey. The work
will assist in determining alternatives for the City to consider when drafting an updated Affordable
Housing Ordinance. The previous ordinance was suspended during the recession, and has not been
readopted. In February 2015, the consultant presented their study and recommended regulatory
changes:
a. Affordable housing requirements for new construction should be reinstated with a new set
of rules;
b. Regulatory incentives from previous ordinances should be retained and strengthened;
c. Some of the strongest incentives depend upon increased City funding of affordable housing.
After discussing the study, the City Commission asked staff to draft a revised ordinance, taking into
account the recommendations and Commission concerns. This budget contains an increase in the
amount of tax revenues that would be deposited to the Community Housing fund; increasing from
1.0 mills to 3.0 mills (increasing from $86,000 to $240,000.)
7. Police & Municipal Courts Building
In the fall of 2014, residents declined to approve the ballot measures that were needed to construct
and operate a new Municipal Police and Courts building. However, a new, or improved, space is still
necessary to accommodate the growing needs of the Police department, Courts, and other justice
services. The City joined a taskforce with Gallatin County to explore options for a facility, moving
forward. This joint taskforce is expected to recommend a construction strategy around July 1st,
2015. This budget contains $50,000 for consultant work in the Police Department for steps that
might progress as a result of the taskforce’s recommendations.
8. Vision – Mission – Strategy
This budget contains $125,000 for consulting work in the City Manager’s department for the
development of a City Strategic Plan.
9. Unified Development Code Design
The Unified Development ordinance was last adopted on November 24, 2003. The Ordinance
adopted a new Unified Development Code, which replaced existing zoning and subdivision
regulations that govern the use and development of land. In recent months, the Community
Development department has updated planning fees and reorganized its divisions in order to better
assist the City of Bozeman residents. Along with these changes, new revisions to the Unified
Development Code are needed to better address modern development within our rapidly growing
city. This budget includes spending $300,000 for the design and adoption of a new Unified
Development Code.
CITY OF BOZEMAN 12 FY16 CITY MANAGER RECOMMENDED BUDGET
10. Aquatics Facility
Previous studies have identified the limited life-span of Bogert pool, the city’s only public outdoor
swimming pool. The FY14 budget contained $125,000 to begin the design of a replacement for
Bogert Pool. This budget includes an additional $75,000 for architects to continue work on the
design of a new outdoor aquatic facility.
Significant changes during the past 12 months
Continued Growth in Construction Sector. Our Building Inspection division has seen
strong permit issuance over the past 12 months.
Building Permit Construction Value Chart 1
While never completely stopping, building construction significantly slowed during the recession. For
the current fiscal year to date (July-March), the total value of Building Permits for New Construction is
110% of the same time frame during the previous year. Building permit values are more than double
what they were for the same period ending April 2011. With this continued growth, additional staff was
added to the building team mid-year in FY15. This additional staff included 2.0 FTE Building Inspectors,
1.0 FTE Permit Technician and a 1.0 FTE Senior Plans Examiner; all of these positions are funded with
building permit revenues.
State-wide Reappraisal of Property Values
In November we received preliminary data for the property reappraisal that the State of Montana is
conducting and implementing for our FY16 fiscal year (2015 tax year). We will not receive the final
Certified Taxable Values until July 2015; this necessitates using the preliminary information for a
calculation of property tax levies in our budget.
$213,901,241
$106,610,214
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
FY- Thru
March 2015
FY- Thru
April 2014
FY- Thru
April 2013
FY- Thru
April 2012
FY- Thru
April 2011
FY- Thru
April 2010
Building Permit Construction Value
CITY OF BOZEMAN 13 FY16 CITY MANAGER RECOMMENDED BUDGET
The State has projected a dramatic decrease in assessed values for both commercial (19.25% decrease)
and residential (3.52% decrease) property in Bozeman. They attribute this change to the timing of
appraisal cycles and the Great Recession. Under existing laws, the City is both allowed and required to
increase its number of mills in order to off-set decreased tax dollar collections that come about from
decreased assessed property values.
The State estimates that the value of one mill, levied city-wide after Tax Increments are excluded, will be
$80,331 in FY16. This represents an 8.6% decrease in the city’s mill value in FY15.
For levies that are required to be established at certain dollar values (i.e. debt service), we will need to
raise our mills to bring in the same number of dollars.
For levies that were approved at set mill amounts (i.e. Fire Capital & Equipment levy), we will yield fewer
dollars due to reappraisal.
Staffing Level Changes
General Fund Positions
Recommended FY16 staffing for the General Fund includes adding the following positions. One Full-
Time Equivalent (FTE) customarily works 2080 hours per year.
Fund Position Full-Time
Equivalent
General Fund Animal Control Officer – increased FTE to .40 .15
General Fund Library Assistant I – increased FTE to 0.38 .38
General Fund Librarian I – Supervisory – increased FTE to 1.0 .50
Total 1.03
Needs for increased staffing at the Library and for increased Animal Control work have resulted in our
recommendation to add portions of FTE’s to those departments.
Enterprise & Other Fund Positions
The following positions were recommended to be added in Water and Sewer funds.
Fund Position Full-Time Equivalent
Water Fund Water Conservation Technician 1.0
Wastewater Fund City Service Worker – WRF 1.0
Total Other Funds 2.0
In order to continue to grow our water conservation program, we are recommending adding a
Technician. We are also in need to one additional worker at the Water Reclamation Facility.
CITY OF BOZEMAN 14 FY16 CITY MANAGER RECOMMENDED BUDGET
The General Fund:
The City’s General Fund supports the majority of administration, public safety and public welfare
operations. It’s most significant source of revenue comes from local property taxes. As a result, the
General Fund’s operating budget and fund balance are critically important to the financial health of the
city.
This year’s General Fund budget has $27.7 Million in expenditures, in the following areas:
Department
General Fund
Amount
Commission $ 248,716
City Manager 896,291
Courts 694,775
Attorney 1,074,305
Admin Services (Fin/IT/HR) 2,383,005
Facilities 1,367,249
Police 8,433,228
Fire 5,567,004
Public Services/Streets 149,062
Cemetery 473,172
Parks 1,459,846
Library 1,700,561
Recreation 1,500,011
Economic Development 371,739
Sustainability 165,318
Other 1,245,290
TOTAL Expenditures $27,729,572
CITY OF BOZEMAN 15 FY16 CITY MANAGER RECOMMENDED BUDGET
FY16 Recommended - General Fund Budget 1
As shown in the above graph, Police and Fire services combined comprise 50% ($13.9 Million) of the
General Fund’s spending. The next largest departments are grouped together, each spending roughly
$1.3 - $2.4 Million and each comprising 5-9% of the budget: Administrative Services, Recreation,
Library, Parks, and Facilities Maintenance. Nine other departments/areas comprise the balance of
General Fund Expenditures.
General Fund Undesignated Fund Balance:
The City’s charter requires an established minimum level of General Fund Undesignated Fund Balance,
in accordance with the Government Finance Officers’ Association (GFOA) Best Practices. GFOA’s Best
Practice Recommendation was adopted and our required minimum reserve balance is 16 2/3% of
budgeted revenues. As discussed in more detail on page 72, this budget meets the required minimum
reserve of approximately $4,767,000 (17.4%) at the end of Fiscal Year 2016.
Commission
1%
City Manager
3%
Courts
3% Attorney
4%
Admin Svcs
(Fin/IT/HR)
9%
Facilities
5%
Police (incl. State
Ret.)
30%
Fire (incl. State Ret.)
20% Public
Services/Streets
1%
Cemetery
2%
Parks
5%
Library
6%
Recreation
5%
Economic
Development
1%
Sustainability
1%
Other
5%
FY16 Recommended - General Fund Budget
Commission
City Manager
Courts
Attorney
Admin Svcs (Fin/IT/HR)
Facilities
Police (incl. State Ret.)
Fire (incl. State Ret.)
Public Services/Streets
Cemetery
Parks
Library
Recreation
Economic Development
Sustainability
Non-Departmental
CITY OF BOZEMAN 16 FY16 CITY MANAGER RECOMMENDED BUDGET
Additional Debt:
We expect to issue $2 Million in a Stormwater Utility revenue bond to fund the Story Mill Landfill
project. The loan was budgeted in FY15, and will close in late FY15 or early FY16. This loan is backed by
the Stormwater Utility and will be paid for through an allocation of the City’s all-purpose tax levy. We
also intend to borrow $400,000 from the State’s Intercap program to finance sidewalk reconstructions.
This debt will be repaid by the property owners, but guaranteed by the General Fund.
We expect to issue $6.6 Million in Water Revenue bonds to construct the Water Storage Reservoir. This
debt can be repaid by Water Impact fees, once collected.
We also expect to issue Special Improvement District bonds totaling $4.5 Million for the Downtown
Streetscape projects. This debt will be repaid by adjacent property owners.
Residential City Property Taxes for FY14, FY15, and FY16
In November 2012, the voters approved this issuance of up to $15 Million in General Obligation Bonds
under for the purpose of expanding, creating new, and improving existing parks, trails, athletic fields
and natural areas. At the time of the vote, we estimated that a $15 Million bond will cost the typical
household less than $45/year. We issued $9.9M of that debt in December 2013, and the remaining $5.1
Million in November of 2014.
In total, the Recommended Budget would levy an estimated 223.71 mills on all taxable property within
the City limits. Details of the estimated levy can be found on page 50. This represents an increase of
34.95 mills over last year. This increased levy is attributable to numerous issues, including:
1. The effects of reappraisal and the need to increase (float) mills to offset
decreased taxable values.
2. Addition of the TOP Bond debt service levy of 5.33 mills.
3. Addition to our Workforce Housing levy from 1.0 mills to 3.0 mills.
4. Approximately $240,000 in General Fund dollars is not recommended to be
budgeted (under our statutory cap), amounting to a tax reduction of 3.0 mills.
Assessed
Market Value –after homestead
exemption
FY15 Taxable
Value*
FY14 City Tax
Levy = 173.08 mills
FY15 City Tax
Levy = 188.76 mills
FY16 City Tax
Levy = 223.71mills
ESTIMATED
Median Home ~ $146,000 $3,652 $659 $675 $771
$200,000 $4,940 $884 $927 $1,056
$300,000 $7,410 $1,326 $1,391 $1,584
* FY15 reported “Median Home” value & homestead exemption
The median home “assessed market value” represents the value on the tax roll for a home within the
Bozeman city limits. This is the value of the property after the “homestead exemption” is applied.
Median simply means that half of the homes in the city have a higher value and half have a lower value.
Each year the Median Home value changes slightly. For the coming tax year, the Department of
CITY OF BOZEMAN 17 FY16 CITY MANAGER RECOMMENDED BUDGET
Revenue and the State Legislature have made significant changes to tax policy. At this time, we have
relied on the preliminary property tax information and will update the Commission as we move forward.
It is currently estimated that the median home will pay $3.45 in City property taxes for every mill levied
in Fiscal Year 2016. Residents living in the median home are estimated $771 in annual property taxes to
the City.
General Taxes - Cost per Mill
Last year, we estimated a 4.0% increase in the city’s value of taxable property. Actual taxable values,
upon certification in August 2014, showed a 2.6% increase over the previous year. For the coming fiscal
year, due to the uncertainties related to property tax reappraisal, we are using the State’s estimate of an
8.6% decrease in taxable values. Taking into account the large projected decrease this year, taxable
values for the City would have an average increase of only 0.1% per year for the past 5 years.
Citywide Street and Tree Maintenance Assessments
City property owners pay annual street and tree assessments based on the square footage of the lot
they own. These assessments are the major funding for Street Maintenance and Forestry Divisions.
The recommended budget is based on a 12.2% increase in the Street Maintenance assessment, resulting
in an annual assessment of $150.11 for the average sized lot. The majority of this increase is attributed
to the phase-in of an added $1 Million in annual pavement maintenance over the next 3 years.
NEW! We are proposing to create a new Arterial and Collector Street Assessment District. The intent is
to phase-in an additional $2 Million in construction on arterial and collector streets over the next 3
years. For FY16, we are recommending an assessment of $0.002873 per square foot of assessable area.
For the average sized residential lot, the annual assessment would be $21.54 for the year.
The Tree Maintenance District is in need of a 2% increase for base operating needs. There was no
increase to this assessment in the past three fiscal years. There was actually a small decrease to the
assessment last year, based on revised assessment methods adopted in July 2014.
Combined, the annual increase in special assessments over the previous year is $38.19 for owners of an
averaged sized lot in the city.
Lot Size FY14 Approved6.9% Streets & 0%
Trees
FY15 Approved6.39%Streets & -1.2%
Trees
FY16 Recommended12.2% Streets & 2% Trees,
with Arterial Street District
Small= 5,000 sq ft.Streets - $81.07 Streets - $89.18 Streets - $100.06
Trees - $11.24 Trees - $11.11 Trees - $11.33
New! Arterial Streets -$14.36
Average = 7,500 sq ft.Streets - $121.63 Streets - $133.79 Streets - $150.11
Trees - $16.86 Trees - $16.67 Trees - $17.00
New! Arterials Streets –$21.54
Large = 10,000 sq ft.Streets - $162.17 Streets - $178.39 Streets - $200.15
Trees - $22.50 Trees - $22.23 Trees - $22.67
New! Arterial Streets –$28.73
CITY OF BOZEMAN 18 FY16 CITY MANAGER RECOMMENDED BUDGET
Utility Rates
Water & Sewer: City property owners are by and large required to utilize the City’s water and
sewer treatment systems. We have updated our 5 year funding models for both Water and Sewer
Rates. We are recommending a 3% increase in Water rates and a 3% increase in sewer rates, effective
September 1, 2015. We would like the Commission to advertise and adopt 2-year rate resolutions this
summer; we will propose an added 3% in Water and 3% in Sewer rates for FY17.
Stormwater: The Stormwater rates were adopted in April 2015. The new base charges take effect
in May 2015 and the variable charges and credits take effect in December 2015, based on impervious
area and existing infrastructure.
In Total: By December 2015, a residential customer utilizing 10 hundred cubic feet (HCF) of water
each month will see an estimated combined monthly increase for these services of $5.28/month. Over
half of the monthly the increase is attributed to the adopted Stormwater charges.
Average Residential
Customer
AdoptedFY14 Monthly Bill
0% Increase Water3% Increase Sewer4% Incr Storm Water
ApprovedFY15 Monthly Bill
Jan. 2015-June 20150% Increase Water3% Increase Sewer
Stormwater, Revised
RecommendedFY16 Monthly Bill
3% Increase Water3% Increase SewerStormwater, Revised
Water $40.15 per month $40.15 per month $41.35 per month
Sewer $45.36 per month $46.73 per month $48.13 per month
Stormwater $ 1.75 per month $3.23per month $5.91per month
Total $87.26 per month $90.11 per month $95.39 per month
Capital Improvement Impact on Operating Budget
The City annually prepares a Five Year Capital Improvement Plan (CIP); most recently adopted for FY16-
FY20. The items that are scheduled in that plan become the starting point for budget requests at budget
development time. This year, capital expenditures total over $34 Million. A complete listing of capital
project is included in the Appendix to this budget document. The six largest capital total over $17
Million.
Project Amount
Water Storage Reservoir $6.6 Million
Downtown Streetscape SID Project $4.5 Million
Cottonwood Road Project (Fallon to Alpha Drive) $2.5 Million
Water System Renovations $2.0 Million
Durston Road Project (Cottonwood to Western City Limits) $1.0 Million
Professional Building Remodel Project $1.0 Million
Top 6 Project Total $17.6 Million
The General Fund’s share of the Professional Building Remodel Project is planned to be paid for with
cash carry-over in the current year. We will be prepared to talk more about the need for this project
and our proposed funding strategy when we discuss the General Fund budget in more detail.
CITY OF BOZEMAN 19 FY16 CITY MANAGER RECOMMENDED BUDGET
In Conclusion
We understand the effects this budget will have on preserving and improving property values and the
quality of life around town, as well as the financial impacts to residents, businesses, and property
owners. To summarize, a typical residential property owner will see taxes and assessments increase by
$185 for the year, or $15.35 per month.
Typical Resident: Annual Increase Recommended Budget
Street Maintenance Assessments $16.32
Forestry Assessments $0.33
NEW - Arterial Street Assessment $21.54
Property Taxes $96.00
Water Services $14.40
Sewer Services $16.80
Storm Water Services $18.76
Annual Increase $184.15
Monthly Increase $15.35
This Recommended Budget represents the thoughtful consideration and work of dozens of staff
members and citizen advisors. We look forward to Commission and community discussions regarding its
improvement and adoption.
Respectfully,
CChris Kukulski, City Manager
Anna Rosenberry, Administrative Services Director
CITY OF BOZEMAN 20 FY16 CITY MANAGER RECOMMENDED BUDGET