On March 15, 2010, the Planning Division was directed by the City Council to bring a resolution forward that affirms the Council’s support of placing a 1-mill increase of the County-wide planning mill levy on the November 2, 2010 general election ballot. The Board of County Commissioners has the authority to place the levy increase on the election ballot for a county-wide vote and has asked for direction from the Council before it makes a final decision on whether to place the levy on the ballot. The City Council, Board of County Commissioners, and residents of the community continue to demand community planning services to improve quality of life, increase economic prosperity and provide sustainable growth. Current local funding for community planning is not meeting this demand. From coordinating a community workshop on infill, to moving forward with making 2009 legislative changes to the subdivision and zoning regulations, the City-County Planning Division does not have the resources to move these projects forward on a timely schedule.

Aside from minor inflationary adjustments, local revenue has not been increased for community planning since the County-wide planning mill levy was put in place in 1984. The levy currently stands at 1.22 mills. Historically, one quarter of the Planning Division budget is derived from fees, one quarter from the County-wide planning mill levy, and half from Federal planning funds. As fee revenues have declined and remain unpredictable, about $2 million in Federal funds the community could use for planning has been unspent in the last four years because local funds to match these dollars are not available. Generally, local funds are able to match Federal planning funds on a two to one ratio. That is, for every $1 of local money spent, 50 cents of Federal money can be leveraged. For some projects, like the Blue Creek Transportation Study or the update to the Heritage Trail Plan, project costs are 100% reimbursed by Federal funds while Planning Division staff time on these projects is usually reimbursed at 50% to 80%.

Reliance on fees results in unpredictable levels of community planning services and creates a situation where developers are subsidizing the cost of planning services that benefit the entire community. The only reliable local source for community planning funds appears to be the County-wide planning mill levy and to move the community forward necessitates an increase in this local funding source.

The City Council, in considering this resolution of support, may do one of the following:
1. Approve the Resolution and support placing the 1-mill increase on the election ballot.
2. Deny the Resolution and not support placing the 1-mill increase on the election ballot.

An increase in the planning mill levy will enable the City and County to provide more community planning and bring more Federal funds to the community. An increase of 1 mill in the County-wide planning mil levy will raise the total annual levy for community planning paid by property owners in Yellowstone County to 2.22 mills, which would cost about $7 per year for a house valued at $200,000.

Staff recommends the Mayor and City Council adopt the attached Resolution and support the Board of County Commissioners placing a 1-mill increase on the November 2010 general election ballot for the County Planning Mill Levy.