The proposed resolution sets the Street Maintenance District (SMD) assessment rates for fiscal year 2016.  The following are the current and proposed rates per square foot for SMD One and Two if the resolution amending the boundaries of the SMDs is approved by Council and these are the rates shown on the attached resolution recommended by staff:

	Current FY 15	Proposed FY 16
SMD 1 Rate per SF	$0.070632	$0.050335
SMD 2 Rate per SF	$0.010293	$0.010677

Parcels in SMD One are also included in the boundaries of SMD Two under this proposed scenario, and thus, would be assessed a combined rate of $0.061012 per square foot.  These rates include an annual inflationary increase of 2.7%.  If the SMD boundary revisions are not approved by Council, the rates required to recover the costs of service at current service levels would be $0.108817 for SMD One and $.010571 for SMD Two.  This is an increase of 54% for SMD One and 2.7% for SMD Two.

 

City Council must hold a public hearing and then may:

• Approve the attached resolution,
• Approve an amended resolution, or;
• Disapprove the resolution.  If Council does not approve a resolution setting street maintenance district assessments for fiscal year 2016, one could be considered at a future meeting and approved by the second Monday in August to be compliant with Title 7, Chapter 12, Part 44 of the Montana Code Annotated.

The proposed street maintenance district rates will generate approximately $7,250,000 in fiscal year 2016, an increase of $190,000 or 2.7%. 

Staff recommends that a public hearing be held and that Council approves the resolution setting annual street maintenance district assessments for fiscal year 2016.