Missoula Sidewalk Funding-Steven King, Public Works Director
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The August 27th City Council presentation on sidewalk funding is attached. Council discussions on the issue are scheduled to continue at the Public Works Committee on September 12th.
Transcript of Missoula Sidewalk Funding-Steven King, Public Works Director
Sidewalk Value Missoula values accessible, durable, and
well maintained sidewalks;
The City Council has demonstrated support for the extension of new sidewalks, and the completion of the sidewalk system.
Sidewalk Costs The assessment of a special tax against
Property Owners fronting sidewalk projects may be a large financial burden on a small number of people within the City.
Current Process The City creates street maintenance and
reconstruction projects each year; $500,000+ Assessed for curbs and sidewalks
annually; The concrete work is typically paid for by
adjoining Property Owners; Median assessments are about $3,500 per
property; Some assessments are significantly over $3,500,
including some assessments over $10,000.
Proposal Combine City funding + Property Owner
funds to pay for curb and sidewalk assessments;
Pay for City funding with a small increase
taxes to all Property Owners within the City of Missoula Road District Number 1.
Two Models as Resolutions
City Co-Pay Model
City First Share Model
City Co-Pay Model Property Owner pays the first $0 to $500; After the first $500 there is a 70/30 split. The
City pays 70 percent and the Property Owner pays 30 percent until the Property Owner assessment reaches $3,500;
Between $3,500 and $15,000 the City pays 100 percent;
Property Owner pays all costs over $15,000; Every property in the City Road District pays an
additional $8.58 tax based on $225,000 property value.
City Co-Pay Model
City First Share Model The City pays the first $0 to $500; After the first $500 the Property Owner pays
100 percent until the Property Owner assessment reaches $3,500;
Between $3,500 and $15,000 the City pays 100 percent;
Property Owner pays all costs over $15,000; Every property in the City Road District pays
an additional $6.94 tax based on $225,000 property value.
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$400Tax does not meet deductible
Deductible: $400
Total Tax: $400
Total City: $0
CITY CO-PAY MODEL EXAMPLE 1:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 400
City Co-Pay Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$3,000Tax is over deductible, but below out of pocket minimum
Deductible: $500Co-Pay: 30% of $2,500 = $750 Total Tax: $1,250
70% of $2,500 = $1,750 Total City: $1,750
CITY CO-PAY MODEL EXAMPLE 2:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 3,000
City Co-Pay Model
City Co-Pay Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$12,000Tax is over deductible, and over the out of pocket minimum
Deductible: $500 +Co-Pay - The lower of $3,000 or (30% of $11,500 = $ 3,950) Total Tax: $3,500
$12,000 - $3,500 = $8,500 Total City: $8,500
CITY CO-PAY MODEL EXAMPLE 3:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 12,000
City Co-Pay Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$17,000Tax is over deductible, and over the out of pocket minimum and over stop loss.
Deductible: $500 +Co-Pay - The lower of $3,000 or (30% of $14,500 = $ 4,350)Stop Loss - $17,000 - $15,000 Total Tax: $5,500
$17,000 - $5,500 = $11,500 Total City: $11,500
CITY CO-PAY MODEL EXAMPLE 4:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 17,000
City Co-Pay Model
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$400Tax does not meet deductible
Total Owner: $0 Total City: $400
CITY FIRST SHARE MODEL EXAMPLE 1:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 400
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$3,000Tax is over deductible, but below out of pocket minimum
$3,000 - $500 = $2,500 Total Owner: $2,500
Total City: $500
CITY FIRST SHARE MODEL EXAMPLE 2:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 3,000
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$12,000Tax is over deductible, and over the out of pocket minimum
Total Owner: $3,500
$12,000 - $3,500 = $8,500 Total City: $8,500
CITY FIRST SHARE MODEL EXAMPLE 3:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 12,000
City First Share Model
TOTAL ASSESSMENT
OWNER PAYS CITY PAYS
$17,000Tax is over deductible, and over the out of pocket minimum and over stop loss.
Owner-Pay $3,500Stop Loss - $17,000 - $15,000 Total Tax: $5,500
$17,000 - $5,500 = $11,500
Total City: $11,500
CITY FIRST SHARE MODEL EXAMPLE 4:IF THE PROJECT COSTS FOR PROPERTY OWNER IS $ 17,000
City First Share Model
Summary City Co-Pay Model:
Pros: Lower cost to some Property Owner with assessments between $500 to $3,500. Most assessment will be
less than $3,500.
Cons: Property Owner pays first $500. Higher cost to City, a more complex formula.
Summary City First Share Model:
Pros: City funds first costs up to $500. Less cost to the City, and simpler
application.
Cons: Higher cost to some Property Owners that are between $500 to $3,500 assessment.
Rebate Proposal Provide assessment rebates for current
Property Owners with curb and sidewalk assessments with funds from Missoula Road District Number 1.
Rebates Scenarios 1: Total Assessments – If we were to apply
the current proposals to total amount that was assessed on all open projects.
2: Billed Amount – If we were to apply the current formulas to the amount that was billed out in November.
3: Remaining Balance – If we were to apply the current formulas to the remaining amount of open assessments.
This is all current through FY2010.
Co-Pay Model City First Share Model
Rebates Scenarios 1: Total Assessments – If we were to apply
the current proposals to total amount that was assessed on all open projects.
2: Billed Amount – If we were to apply the current formulas to the amount that was billed out in November.
3: Remaining Balance – If we were to apply the current formulas to the remaining amount of open assessments.
This is all current through FY2010.
Co-Pay Model City First Share Model
Rebates Scenarios 1: Total Assessments – If we were to apply
the current proposals to total amount that was assessed on all open projects.
2: Billed Amount – If we were to apply the current formulas to the amount that was billed out in November.
3: Remaining Balance – If we were to apply the current formulas to the remaining amount of open assessments.
This is all current through FY2010.
Co-Pay Model City First Share Model
Next Steps Decide which Model Resolution to adopt;
City Co-Pay Model City First Share Model Combination of both models Leave as-is
Confirm the funding source as the City of Missoula Road District Number 1;
Resolve Rebate applicability.
