HomeMy WebLinkAboutA1. Public Hearing SID 732
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Rick Hixson, City Engineer
SUBJECT: Public Hearing on Protests for Special Improvement District (SID) No.
732 and Adoption of Resolution 4664- a resolution of the Bozeman City Commission
to create SID No. 732 for the purpose of undertaking certain local improvements to
North Wallace Avenue between Lamme Street and L Street and financing the costs
thereof.
AGENDA ITEM TYPE: Action
MEETING DATE: March 7, 2016
RECOMMENDED MOTION: After hearing all protests, I hereby move to pass upon the
protests determining them to be insufficient under law and adopt Resolution 4664 creating
Special Improvement District No. 732 for the purpose of financing local improvements to North
Wallace Avenue between Lamme Street and L Street.
BACKGROUND: At its February 8, 2016 meeting the City Commission adopted Resolution
4664, declaring it to be the intention of the City Commission to create Special Improvement
District (SID) No. 732, for the purpose of undertaking certain local improvements to North
Wallace Avenue between Lamme Street and L Street and financing the costs thereof. In
accordance with Montana Code Annotated (MCA) Title 7-12 Part 41, notice of the passage of
this Resolution was made on February 14, 2016 and February 21, 2016. This established the
"Protest Period" as February 16, 2016 to March 2, 2016 at 5:00 PM. Within the Protest Period,
protests were filed with the City Clerk by the property owner of one parcel, representing
0.68% percent of the total costs of the Improvements to be assessed against properties in the
District, as proposed. The Engineering division has verified the authenticity of the owner’s
protest received and in conjunction with the City Attorney have concluded that the protests
against the creation of the District or the making of the Improvements filed during the Protest
Period are found to be insufficient pursuant to Section 7-12-4113, MCA.
FISCAL EFFECTS: The total estimated cost of the improvements are $2,141,000. The City
has committed $1,819,850 from the Street Maintenance District fund to reduce the costs to the
SID, leaving $321,150 of the costs to be funded by the district. In addition, the district will be
responsible for an estimated $1,000 in incidental costs related to the creation of the district for a
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total of $322,150. Based on the recommended method of assessment, that is, lot frontage, for a
typical residential lot with 60 ft. of frontage, the total estimated assessment would be $3751.21.
These costs would be financed over 20 years. At the current estimated interest rate of 1.5%, a
typical residence would be assessed approximately $217.80 annually, equivalent to
$18.15/month.
The City’s Special Improvement District (SID) Revolving Fund has cash in excess of the
statutorily required amount (5% of our outstanding SID debt). This excess will be used to
underwrite the SID costs; the Revolving Fund will loan the District the money, rather than have a
bond sale. We used this type of underwriting for the Story Street SID, also. This has a number
of benefits: 1. Lower interest rate for the District property owners, 2. Avoidance of the costs and
time-consuming work of underwriting and bond sale, 3. Revolving Fund will be “paid back” as
property owners make their payments over time, with interest.
The City’s SID Revolving Fund has total cash of $2.4 million. State law requires the fund to
have a balance of $90,150. Proceeding to underwrite this project, cash will immediately be
decreased by $322,150. Beginning in November, annual assessments will be paid back into the
fund. Over the life of the loan, the Revolving Fund will receive approximately $52,000 in
interest earnings. These earnings can be used to underwrite other projects in the future –
growing our ability to complete SID projects.
UNRESOLVED ISSUES: None.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Resolution 4664, Creation of SID 732
Protest Letter
Exhibit C
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COMMISSION RESOLUTION NO. 4664
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 732;
CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN
LOCAL IMPROVEMENTS IN AND ABOUT NORTH WALLACE AVENUE
BETWEEN LAMME STREET AND L STREET , FINANCING THE COSTS
THEREOF AND INCIDENTAL THERETO THROUGH A LOAN TO THE DISTRICT
FROM THE CITY'S SPECIAL IMPROVEMENT REVOLVING FUND.
WHEREAS, on the 7th day of March, 2016, the City Commission (the "Commission")
of the City of Bozeman, Montana (the "City") adopted Commission Resolution No. 4664 (the
"Resolution of Intention"), stating its intent to create Special Improvement District No. 732 (the
"District") to finance the costs of various improvements within the District as described therein
(the "Improvements"); and
WHEREAS, as set forth in the Resolution of Intention, the Commission committed
other revenue sources from street reconstruction fees to the costs of the project; and
WHEREAS, on Febraury 14th and 21st, 2016, the City Clerk did publish a Notice of
Passage of the Resolution of Intent to Create SID No. 732 in accordance with Sect. 7-12-4106,
MCA, and mailed said notice to each person, firm, or corporation or the agent of the
person, firm or corporation having real property within the proposed District; and
WHEREAS, the Bozeman City Commission conducted a public hearing on protests
submitted to the creation of the District on March 7, 2016 and did pass on all such protests having
found the written protests not sufficient to bar the Commission from proceeding with creation of
the District.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, as follows:
Section 1. Passage of Resolution of Intention. This Commission, on February 8,
2016, adopted the Resolution of Intention, pursuant to which this Commission declared its
intention to create the District, under Montana Code Annotated, Title 7, Chapter 12, Parts 41
and 42, as amended, for the purpose of financing costs of certain local improvements within
the District
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described generally therein (the "Improvements"), and paying costs incidental thereto, including
costs associated with the creation and administration of the District, and the funding of a Loan
from the City's Special Improvement District Revolving Fund (the "Loan").
Section 2. Notice of Passage of the Resolution of Intent and Public Hearing on
Protests. Notice of passage of the Resolution of Intention was duly published and mailed in all
respects in accordance with law, and on February 14 a n d F e b r u a r y 2 1 , 2016, this
Commission conducted a public hearing on written protests submitted by property owners
against the creation of the District and the making of the Improvements. The public hearing
occurred on the date of the first regular meeting of the Commission following the expiration of
the period ended 15 days after the first date of publication of the notice of passage of the
Resolution of Intention (the ''Protest Period").
Section 3. Protests. Within the Protest Period, protests were filed with the City Clerk
by the property owners of one parcel, representing 0.68% percent of the total costs of the
Improvements to be assessed against properties in the District, as proposed.
Section 4. Creation of the District; Insufficiency of Protests. The Commission
determines the District is hereby created on the terms and conditions set forth herein and
otherwise in accordance with the Resolution of Intention, as modified hereby. The protests
against the creation of the District or the making of the Improvements filed during the Protest
Period are hereby found to be insufficient. The findings and determinations made in the
Resolution of Intention, including, without limitation, those relating to benefits conferred, costs
associated with the borrowing of funds from the City's special improvement district revolving
fund, and for the creation and administration of the District, are hereby ratified and confirmed.
Section 5. Reimbursement Expenditures.
5.01. Declaration of lntent. The City reasonably expects to reimburse the expenditures
made for costs of the Improvements out of the proceeds of the Loan from the City's
special improvement district revolving loan fund in an estimated maximum aggregate
principal amount of $322,150.00 after the date of payment of all or a portion of the
costs of the Improvements. All reimbursed expenditures shall be capital expenditures,
a cost of issuance of the Loan, or other expenditures eligible for reimbursement.
The Commission intends to assess the District to reimburse the special improvement
district revolving loan fund in an amount equal to the principal of the Loan of
$322,150.00 to the District plus interest at approximately 1.5% annually. Over the
20- year term of the Loan from the revolving fund to the District, interest earnings of
up to $51,933 are estimated to be paid from the District property owners and deposited
to the special improvement district revolving fund. In addition to reimbursing
the
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revolving fund on interest the revolving fund would otherwise earn, these interest
earnings are intended to satisfy any revolving fund contribution from the district that
may be required under 7-12-4222(l)(b), MCA.
5.02. Budgetary Matters. As of the date hereof, there are no City funds reserved,
allocated on a long-term basis or otherwise set aside (or reasonably expected to be
reserved, allocated on a long-term basis or otherwise set aside) to provide permanent
financing for the expenditures related to the Improvements, other than pursuant to the
Loan from the City's special improvement district revolving loan fund. The statement
of intent contained in this resolution, therefore, is determined to be consistent with the
City's budgetary and financial circumstances as they exist or are reasonably
foreseeable on the date hereof.
5.03. Reimbursement Allocations. The City's financial officer shall be responsible for
making the "reimbursement allocations" described in the Resolution of Intention being
generally the transfer of the appropriate amount of proceeds of the Loan to reimburse
the source of temporary financing used by the City to make prior payment of the costs
of the Improvements. Each allocation shall be evidenced by an entry on the official
books and records of the City maintained for the Loan or the Improvements and shall
specifically identify the actual original expenditure being reimbursed.
PASSED AND APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the 7th day of March, 2016.
___________________________________
CARSON TAYLOR
Mayor
ATTEST:
________________________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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4,438.93$724NWALLACEAVE MIKEKVASNICK720NMONTANAAVE BOZEMANMT59715Ͳ2921 RGH2887 92 5,751.85$820NWALLACEAVE WALLACENORTHLLC810NWALLACEAVE#O BOZEMANMT59715Ͳ3020RGH28109 142 8,877.86$802NWALLACEAVE WALLACENORTHLLC810NWALLACEAVE#O BOZEMANMT59715Ͳ3020RGH4060 142 8,877.86$601COTTONWOODSTSAMUELTHOMPSONIII SAMUELTHOMPSONIV BEAMTHOMPSON NATHANIELTHOMPSON 700NWALLACEAVEAPTC BOZEMANMT59715Ͳ3014RGH39583 208.11 13,011.07$530ECOTTONWOODSTSTEVEHERR JEANHERR 530ECOTTONWOODSTBOZEMANMT59715Ͳ3060RGH56396 120 7,502.42$611NWALLACEAVE SUSANTURNERGEORGEHRITSCO LAWRENCEHRITSCO 2715HARRISSTBOZEMANMT59718Ͳ6045 RGH24224 75 4,689.01$605NWALLACEAVE CHADWICKGROTHFLORENCEGROTH 701SWILLSONAVE BOZEMANMT59715Ͳ5240RGH24225 105.21 6,577.74$624NWALLACEAVE WACKAMOLEYLLC624NWALLACEAVE BOZEMANMT59715Ͳ3042 RGH2575 67 4,188.85$618NWALLACEAVE POMEGRANATELLC3919RAINROPERDR BOZEMANMT59715Ͳ0632 RGH21449 75 4,689.01$600NWALLACEAVE 600NORTHWALLACEAVENUELLCC/OBUNTINGMANAGEMENT217INTERNATIONALCIRCLE HUNTVALLEYMD21030 RGH1460 142.05 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