Staff recommends that the City Council conduct a public hearing and approve the proposed resolution setting annual street maintenance district assessments for fiscal year 2021.

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 are not adequate to provide for the operation and maintenance and capital investment necessary to continue providing service at the current level. Staff is proposing a 3.5% increase for SMD 1 and a 1.9% increase for SMD 2 to recover the cost of services and maintain the current service level. The attached resolution specifies the proposed rates for FY 2021.

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 rate adjustment would increase an average 9,691 square foot residential lot in SMD 2 by $2.37 from $125.16 per year to $127.53 per year and will generate approximately $180,000 of additional revenue in FY 2021.