The City Council adopted Ordinance 05-5322 on arterial construction fees on April 11, 2005, in part to provide relief to commercially-zoned properties being used solely as owner-occupied single family residences. The ordinance states, “The City Council may provide an exemption to commercially zoned properties that are currently owner-occupied as a single-family residence. The property owner must annually request the exemption through the Public Works Department by August 31 of each year.” The City Council adopted Ordinance 08-5478 on September 22, 2008, which allows a Residential Manufactured Home (RMH)-zoned property owner to also petition for a reduction of arterial construction fee assessments if the parcel is used solely as an owner-occupied single family residence. The relief in both of these situations may be in the form of capping the parcel square footage at 9,600 square feet and calculating the assessment based on the R-9600 zoning rate instead of commercial or RMH zoning rates.

Public Works Administration staff developed a form for property owners meeting the criteria specified in Ordinance 08-5478 to annually petition the City Council for a reduction of their arterial construction fee assessment. A copy of the form is available at the Public Works front counter, at the Finance Division front counter, at the City Administrator’s Office front counter, or by calling any of these offices. Property owners may also submit the form online through the City’s website at http://ci.billings.mt.us.

As of August 31, 2009, the Public Works Department received seven (7) completed and signed petitions. All seven parcels meet the criteria specified in Ordinance 08-5478.

The Council must hold a public hearing and may:

* Reduce the arterial construction fee assessments for the seven (7) parcels meeting the criteria of Ordinance 08-5478.
* Do not reduce the arterial construction fee assessments for the seven (7) parcels meeting the criteria of Ordinance 08-5478.

Reducing the arterial construction fee assessments on the seven (7) parcels meeting the criteria of Ordinance 08-5478 means the City will collect $2,125.92 less than if the City Council denied the petitions.

Staff recommends that the City Council hold a public hearing and approve a Resolution reducing the arterial construction fee assessments for the six (6) commercially-zoned parcels and one (1) RMH-zoned parcel that meet the criteria of Ordinance 08-5478 by capping the parcel square footage at 9,600 square feet and calculating the assessments based on the R-9600 zoning rate instead of commercial or RMH zoning rates.