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.