Staff recommends that City Council conduct a public hearing and approve the proposed resolution adopting the annual Special Improvement Lighting Maintenance District (SILMD) assessments for FY26.

Montana Code Annotated, Section 7-12-4332, requires that the City Council annually adopt a resolution to assess the costs for each Special Improvement Lighting Maintenance District (SILMD) on or before the first Monday in October each year. The amount assessed is based on anticipated utility rates, estimated maintenance costs and administrative fees, as well as the reserve requirements needed for each district. The attached resolution specifies the proposed SILMD assessments for FY26.

City Council may:

• Approve the resolution assessing annual light districts; or,
• Not approve the resolution. If Council does not approve the resolution, Council will need to approve the resolution at the September 22, 2025, Council meeting to be in compliance with State statutes. 

SILMD assessments for FY26 will generate approximately $2,928,355 in revenues, which is the amount calculated to recover the estimated costs of electricity, maintenance and administration fees, and to maintain an adequate cash balance in each light district fund.  The SILMD assessment will increase for 79 light districts, decrease for 77 light districts, and remain unchanged for 41 light districts. The overall increase for existing light districts in FY2026 compared to FY2025 is $177,640 or 6.5%.