HomeMy WebLinkAboutA2. Commission Memo for Resolution 4603, Intent to Create Arterial and Collector District
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Administrative Services Director
SUBJECT: Resolution No. 4603, A Resolution of the City Commission of the City of
Bozeman, Montana, relating to The Arterial and Collector Street Special District, declaring it to be The Intention of the City Commission to Create The District for the Purpose of Funding the Construction,
Improvements, and Maintenance of Transportation Facilities related to Arterials and Collector Streets and
Assessing the Costs Therefore to Benefitted Property by the Annual Levy of a Special Assessment.
MEETING DATE: June 22, 2015
AGENDA ITEM TYPE: Action
RECOMMENDATION: Adopt Resolution No 4603
BACKGROUND: The City Manager’s Recommended Budget for Fiscal Year 2016 includes
the creation of a new special assessment district to assist in funding the construction and improvement of streets classified as arterials and collectors. This recommendation was based upon policy discussions about the funding short-falls and difficulties that currently exist with
building out this “backbone” of the transportation network. The materials prepared for those
meetings detail the need for the creation of a new district.
1. Commission Budget Work session – Transportation Issues, May 18, 2015, and 2. Commission Policy Discussion – Transportation Review, November 17, 2014.
Under state law, the District can be created by the following process (summarized)
1. Adoption of a Resolution of Intent to Create the District. After Adoption, a Notice of
the Passage of the Resolution of Intent is mailed to all property owners in the City, along with a form that can be used to file a Protest. A list of all property owners and their annual assessment amount will be on file with the City Clerk.
2. 60-Day Protest Period whereby property owners can file protests against the creation
of the district; and
3. Public Hearing on the Protests Received and Adoption of Resolution Creating the District (if insufficient protests are received.)
a. If valid protests are received from property owners representing 10-50% of
the annual assessment amount, the District can only be created by vote. The
question would need to be scheduled for an election, at a date to be
determined. b. If protests are received from property owners representing more than 50% of
the annual assessment amount, the District cannot be created.
4. Annual Assessment Resolution must be adopted in order to assess (or, charge) each
property owner for their share of the District’s costs. This must be adopted each year.
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Details of the District: The attached Resolution describes the details of the district.
Section 1. Recitals Section 2. Intention to Create District; General Statement Section 3. Name of District.
Section 4. Necessity for the Special District Section 5. Boundaries of the District – General Description.
Section 6. General Character of Improvements and their Location.
Section 7. Estimated Cost and Method of Financing. Section 8. Benefited Property
Section 9. Administration of the District.
Section 10. Duration of the Proposed Special District. Section 11. Public Hearing; Protests.
Section 12. Notice of Passage of Resolution of Intention.
UNRESOLVED ISSUES: The District Fund is budgeted to provide the remaining local share for the Davis and Baxter intersection project in FY16. If the district is not created, we will need to find another
source of funds if we want to move forward with that intersection project this year; we will also need to identify another source of funds for the numerous street projects requiring local share in the very-near future.
ALTERNATIVES: Do not create the district and find other funding sources for street projects; Do not create the district and forego street improvements. Create the district, with plans to assess a smaller amount and complete fewer projects over time. Create the district with plans to assess a larger amount
and complete more projects over time.
FISCAL EFFECTS: According to the current recommendation, revenues for the District in
Fiscal Year 2016 will be $576,000; in Fiscal Year 2017 - $1,130,000; and in Fiscal Year 2018 - $2,000,000. It is our intent to continue the district beyond Fiscal Year 2018 with costs for each year to be determined by the Commission. Amounts collected for the District will be deposited in a separate
Special Revenue Fund. The money will be spent according to capital plans and approved budgets.
The costs of the District will be assessed annually to all owners of real property within the incorporated
city limits based upon the assessable area of each lot or parcel. This is the same method of assessment as is used for the city’s existing Street Maintenance District assessment; it is intended that properties shall have the same assessable area for each assessment.
Below is the estimated cost of the district for the coming Fiscal Year.
Arterial & Collector District Assessments,
estimated
Assessable Area,. Square Feet Annual Cost - FY16
Estimate
Residential Lot - Average 7,500 $ 21.54
Residential Lot – Large 15,000 $ 43.09
Commercial – Schnee’s (35 E Main) 12,000 $ 34.47
Commercial - 777 Building 57,927 $ 166.40
Commercial - Town & Country (N 19th) 68,082 $ 195.57
Commercial - Wingate Hotel 155,858 $ 447.70
Commercial - Bozeman Ford 493,970 $ 1,418.93
Commercial - Gallatin Valley Mall 1,630,015 $ 4,682.21
Attachments: Resolution No. 4603
Report compiled on: June 16, 2015
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COMMISSION RESOLUTION NO. 4603
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO THE ARTERIAL AND COLLECTOR STREET SPECIAL DISTRICT, DECLARING IT TO BE THE INTENTION OF THE CITY COMMISSION TO CREATE THE DISTRICT
FOR THE PURPOSE OF FUNDING THE CONSTRUCTION, IMPROVEMENTS, AND MAINTENANCE OF TRANSPORTATION FACILITIES RELATED TO ARTERIALS AND COLLECTOR STREETS
AND ASSESSING THE COSTS THEREFOR TO BENEFITTED PROPERTY BY THE ANNUAL LEVY OF A SPECIAL ASSESSMENT.
BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows:
Section 1 Recitals
WHEREAS, the City of Bozeman, Montana (the “City”) is a self-governing municipality
organized and existing pursuant to its Charter and the laws of the State of Montana; and
WHEREAS, the Bozeman City Commission (the “Commission”) is authorized by Montana
Code Annotated (“MCA”) Title 7, Chapter 11, Part 10, to create special districts to serve the inhabitants
of the special district; and
WHEREAS, the Commission has determined to initiate the creation of a special district for the
purposes of funding construction, improvements, and maintenance of transportation facilities related to
arterial and collector streets; and
WHEREAS, in accordance with MCA Section 7-11-1007, the Commission has conducted a
public hearing on Monday, June 22, 2015, which said hearing was duly noticed in accordance with law on
June 14, 2015 and June 21, 2015, prior to the passage of this Resolution of Intent to create a special
district; and
WHEREAS, after hearing public comment, the Commission determines the public convenience
and necessity require the creation of a special district for the purposes of construction, improvement, and
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Resolution 4603, Resolution of Intent for Creation of Arterial and Collector Street Special District
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maintenance of transportation facilities related to arterial and collector streets.
Section 2
Intention to Create District; General Statement. It is the intention of this Commission to create and establish in the City a special district (the “District”) to serve and benefit the inhabitants within the
incorporated city limits for the purpose of construction, improvement, and maintenance of transportation
facilities related to the portions of the city’s transportation network classified as arterial and collector streets by the city’s Greater Bozeman Area Transportation Plan (2007 Update) (the “Transportation
Plan”), as such plan may be amended from time to time (the “Improvements”). The costs of the Improvements will be payable from special assessments to be levied against property in the District.
Section 3
Name of District. The District, if the same shall be created and established, shall be known and
designated as the Arterial and Collector Street Special District.
Section 4
Necessity for the Special District. The City Commission hereby determines the District is
necessary to the orderly and efficient operation of the city’s transportation infrastructure by providing
adequate long term funding for the construction, improvement, and maintenance of arterial and collector street facilities, as outlined in the Transportation Plan. Without the District, the transportation system is
reliant on individual projects and property owners for build-out of these critical roadways and pedestrian
networks, resulting in piecemeal construction scheduled on the basis of private development rather than the overall needs of the transportation system. Nothing in this Resolution or in the creation, operation, or
funding of District will amend, replace or abrogate an owner’s or developer’s obligations to make certain Improvements on arterial and collector streets pursuant to the requirements of the Bozeman Municipal Code. The District will not replace or fund any portion of projects that are eligible to be paid for under the
city’s Street Impact Fee program.
Section 5
Boundaries of the District – General Description. The limits and boundaries of the District shall be the incorporated city limits of the City of Bozeman as amended from time to time by annexation. A
map of said boundaries is shown in Exhibit A and described in Exhibit B. Should the District be created, all property existing in the city at the time of adoption of a final resolution creating the District and
property annexed into the city after the date of adoption of a final resolution shall be included within the
boundaries of the District.
Section 6
General Character of Improvements and their Location. The Improvements the District will
undertake shall be located within the boundaries of the District, as amended, or on rights of way
controlled by the City, or at locations included in the Transportation Plan that benefit the city. The Improvements shall be for the purpose of acquiring constructing, improving and maintaining portions of
the transportation network classified as arterial and collector streets by the Transportation Plan. This may include, but is not limited to, the purchase of rights of way, the installation, improvement, alignment and connection of all necessary facilities for arterial and collector roadways including related stormwater and
pedestrian and bicycle facilities, and the installation or improvement of traffic and pedestrian controls at intersections. Improvements will be made in accordance with the city’s standard street design cross-
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Resolution 4603, Resolution of Intent for Creation of Arterial and Collector Street Special District
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sections specified in the Transportation Plan. Improvements made by the District may supplement but
shall not replace or fund any portion of the projects that are eligible to be paid for under the Street Impact
Fee program.
Section 7
Estimated Cost and Method of Financing. The currently estimated costs of the District in Fiscal
Year 2016 are $576,000; in Fiscal Year 2017 are $1,130,000; and in Fiscal Year 2018 are $2,000,000. It is the intent to continue the district beyond Fiscal Year 2018 with costs for each year to be determined by the Commission pursuant to law. Notwithstanding the above estimates, each year, as part of its regular
budget process, the City will estimate the total costs of the District for the ensuing fiscal year. In establishing the annual assessment of costs to property owners, the City will incorporate any other District revenues that may be available, including those from owner or developer payback agreements,
state and federal grants, reimbursements, etc. The costs of the District will be assessed annually to all owners of real property within the incorporated
city limits based upon the assessable area of each lot or parcel, expressed in square feet. The lot or parcel area will be limited to the maximum square footage assessed for the zoning designations as listed below.
This is the same method of assessment as is used for the city’s existing Street Maintenance District
assessment; it is intended that properties shall have the same assessable area for each assessment.
For non-conforming residences located in business and manufacturing zoning districts without any
business or manufacturing use attached, there shall be a maximum of 15,000 square feet assessed. The minimum annual assessment will be $3.50.
Zoning Maximum assessment square footage (Cap)
R-1 15,000 square feet
R-2 15,000 square feet
R-3 15,000 square feet
R-4 15,000 square feet
RMH 8,250 square feet/unit
RS 15,000 square feet
RO No Cap on developed parcels.
Cap of 15,000 square feet on undeveloped (parcels that have no structures and have not received subdivision
review.)
PLI (including MSU,
Schools, Govt, Hospital, & Public Owned property)
25% of total square footage
REMU No Cap on developed parcels
Cap of 15,000 square feet on undeveloped (parcels that have no structures and have not received subdivision
review.)
All Business Zones No Cap on developed parcels
Cap of 15,000 square feet on undeveloped (parcels that
have no structures and have not received subdivision
review.)
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Resolution 4603, Resolution of Intent for Creation of Arterial and Collector Street Special District
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All Manufacturing
Zones
No Cap on developed parcels
Cap of 15,000 square feet on undeveloped (parcels that
have no structures and have not received subdivision review.)
Section 8
Benefited Property. The territory included within the limits and boundaries described in Section 5 and as shown on Exhibit A and described on Exhibit B, is hereby declared to be the territory which will
benefit and be benefited by the Improvements and will be assessed for the costs of the Improvements as described in Sections 6 and 7.
Section 9
Administration of the District. The District shall be administered by the Bozeman City
Commission. The annual financial planning for the District will be carried out as a part of the city’s regular annual capital planning and budget processes.
Section 10
Duration of the Proposed Special District. The District shall endure until the time it is formally
dissolved.
Section 11
Public Hearing; Protests. At any time within sixty (60) days from and after the date of the first
publication of the notice of the passage and approval of this resolution, any owner of real property within
the District subject to assessment for the cost and expense of making the Improvements may make and file with the City Clerk until 5:00 p.m.., on the expiration date of said 60-day period (to be August 28,
2015) written protest against the proposed Improvements, or against the creation of the District or both, and the Commission will at its next regular meeting after the expiration of the sixty (60) days in which such protests in writing can be made and filed, proceed to hear all such protests so made and filed; which
said regular meeting will be held on Monday, August 31, at 6:00 p.m., in the Community Room of City Hall, 121 N Rouse Avenue, Bozeman, Montana.
Section 12
Notice of Passage of Resolution of Intention. The City Clerk is hereby authorized and directed
to publish or cause to be published notice of the passage of this resolution in the Bozeman Daily Chronicle, a newspaper of general circulation in Gallatin County on June 28 and July 5, 2015, in the form
and manner prescribed by law, and to mail or cause to be mailed a copy of said notice to every owner or
purchaser under contract for deed of the real property within the District as shown by the current property tax record maintained by the department of revenue for Gallatin County, on or before the same day such
notice is first published.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 22nd day of June, 2015.
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____________________________________
JEFFREY K. KRAUSS, Mayor ATTEST:
____________________________________
STACY ULMEN, CMC City Clerk
APPROVED AS TO FORM:
___________________________________ GREG SULLIVAN
City Attorney
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Exhibit B
DISTRICT BOUNDARIES
The District boundary is described as the incorporated boundary of the City of Bozeman, Montana, in
accordance with City Commission municipal annexation resolutions and municipal annexation ordinances
filed in the Bozeman City Clerk’s public records as well as all properties later annexed thereto. Parcels
within the boundary are the current parcels subject to City of Bozeman property taxes as shown in the tax
rolls of the Montana Department of Revenue and inclusive of those parcels that are exempt from property
taxes except park land, common areas and greenways, open space lands, and parcels used as a public
street and alley right-of-ways as well as all parcels later annexed thereto.
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