The Montana Department of Transportation has a project to reconstruct Bench Boulevard from just north of the roundabout at Hilltop Road to Mary Street.  The project will include installation of street lighting along Bench Boulevard.  Passage of a Resolution of Intent is the first step in the legal process of creating a lighting maintenance district to pay the costs of operating and maintaining the new lighting.  Passage of the Resolution of Intent will trigger the mailing of legal notices to the affected property owners and set a Council public hearing at the May 26, 2015, City Council meeting.

The new lighting will use steel mastarm style poles with LED lamps and underground wiring.  The cost of installing the new lighting will be paid for by the MDT project. The adjacent property owners will only pay for electrical energy and maintenance, through an assessment on their property taxes.  The estimated annual cost for a typical 9600 square foot residential lot is $21.   Due to the difference in time between when the new lighting will be turned on and the first tax assessments are collected, the first year tax assessment may be higher or lower than the estimated annual assessment. 

Assuming federal aid highway funding is extended by Congress, MDT currently plans to open bids on the project in June and begin construction by late July or early August.  Lighting probably will not be ready to turn on until 2016.  The SILMD is being created now to ensure that there will be a funding source for the maintenance and operation of the lights before they are constructed. 

The proposed district will also incorporate the existing lighting on Wicks between Main Street and Bench Boulevard. The properties along Wicks fronting the lighting will become part of the new district. 

The Council may:

• Pass the Resolution of Intent to create SILMD 315 to provide a source of funding for operation and maintenance of the streetlights and set a public hearing for May 26, 2015; or
• Do not pass the Resolution of Intent or set a public hearing date.  If the Council does not adopt the Resolution, the property owner cannot be assessed for operation and maintenance of the streetlights and the new lighting will not be installed. 

All costs of providing energy for the lighting and maintaining the lights are paid for from assessments against properties within the light district.  There is one City owned parcel in the proposed district, Billings Heights Park.   The park will be assessed on the same basis as privately owned property within the district. The estimated annual assessment for the park property is $700.  Pursuant to State law (7-12-4326 MCA) the City must also pay assessments levied against federally owned property in the district.  The estimated annual assessment for the Heights Post Office property is approximately $240.

Staff recommends the City Council approve a resolution of intent to create SILMD 315 and set a public hearing for May 26, 2015.