Staff recommends that the City Council conduct a public hearing and approve the proposed resolution setting annual street maintenance district assessments for FY24.

Street Maintenance District (SMD) assessments are set annually by resolution. There are currently two SMDs in Billings. SMD 1 encompasses primarily the downtown area. SMD 2 is the entire City. Properties in SMD 1 are also in SMD 2. The existing rates for road funding are not adequate to provide for the operation and maintenance and capital investment necessary to continue providing service at the current level. The proposed increase is 3% for SMD 1 and 7% for SMD 2 which reflect inflationary levels for the services provided in each SMD. The attached resolution specifies the proposed rates for FY24. 

City Council must hold a public hearing and then may:

• Approve the recommended resolution,
• Approve an amended resolution, or:
• Not approve the resolution.  If Council does not approve a resolution, an amended resolution to establish street maintenance district assessments will need to be considered at a future City Council meeting to be in accordance with state statutes.

The proposed rates will increase an average 9,691 square foot residential lot in SMD2 by $12.96 from $185.08 per year to $198.04 per year and will generate approximately $1,009,000 of additional revenue in FY24.  SMD 1 revenues will increase by $10,000 or 3%.