FAQ
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what is a special improvement district (SID)
Special Improvement Districts (SIDs) serve two primary functions. The first is the creation of some form of infrastructure, such as sewer lines or roads. The second is for the maintenance of some facility or service the City provides, such as street lighting. SIDs are created by action of the City Council. First, a resolution of intent is passed and advertised in the newspaper. This notifies the people who will be affected by the SID. Citizens have the opportunity to protest and make public comments. If the protest hasn't been sufficient to cancel the project a final resolution is passed. For more information regarding SIDs, please contact (406) 552-6111 or visit.
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how are the costs determined and how are they assessed?
The costs are distributed across the properties benefiting from the new infrastructure or maintenance (the district). State law allows the distribution to be done on the basis of the area of each parcel in the district, the assessed value of each parcel, number of parcels, front footage of each parcel bordering a street, or a combination of these methods. Selling bonds that are paid off over a period of up to 20 years pays for the costs of the improvements or maintenance. The City in turn assesses the parcels in the district to generate the money needed to pay off the bonds. The interest rate charged by the City is the average interest rate payable on the outstanding bonds, plus up to 1% to cover the administration costs. The assessment appears on the property owner's yearly property tax bill, which is mailed in October. The first half is due by November 30 and the second half is due by May 31 to avoid penalty. If you want to pay off your assessment, please contact the City Finance Office at (406) 552-6111 or 552-6119 for the amount. Having your parcel number is helpful, but not essential. Learn more here.
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property owners pay taxes? why mandate another fee for services? isn’t that BSB’s responsibility?
This is one of the most common questions and arises from the concern that property owners need to provide services that some feel should be undertaken by the city/county. The underlying purpose of a BID is to distribute the burden and benefits equitably. The BID will provide supplemental services over and above those currently funded. The BID assessment is an investment in the defined boundary that will yield returns on investment that include increased property value, improved tenancy, increased revenue to businesses, increase accessibility, improved place-making for increased use and visitation, and improved safety.
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what is a BID?
A Business Improvement District, or BID, is a defined geographic area in which businesses and property owners collaborate to improve the economic and physical environment of the district by initiating, managing, and financing supplemental programs and services for the benefit of all who live, work, and visit the district. BIDs are funded through a property owner and commissioner-approved assessment levied on property owners within the district. A board of directors that includes property owners will make all personnel, program, and budget decisions. The BID will hire professional staff to implement the BID priority initiatives and services.
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why consider a BID?
Successful downtowns and commercial areas are an actively managed hub of activities that contribute to its economic vitality. Property owners, residents, visitors, customers, employees, and business owners comprise the Uptown Butte community and contribute to its success. When property owners partner with the city/county to leverage a district through well-managed and sustained effort, the district becomes an economic driver for all of Butte.
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do BID's work?
BID's have been in existence for many years and are fully integrated and successfully improving districts in cities around the nation and across Montana including Missoula, Bozeman, Helena, Great Falls, Billings, Livingston and Hamilton. Montana state legislation governs the legal existence and governance of BID's. Local community feedback, as well as reports from the International Downtown Association (dowtown.org), document a proven track record of success measured by increased values, improved occupancy, and an enhanced sense of place and community in BIDs across the state and country.
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how is the BID different from other organizations?
Unlike the Chamber of Commerce or other associations, a BID is a legal mechanism for property owners to collectively fund supplemental projects and services like snow removal, lighting, landscaping and beautification, trash pick up, etc. It provides a dedicated revenue stream to execute improvement initiatives approved by the board. While it cannot replace currently funded services, it can expand or enhance them.
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who controls the BID?
The BID is controlled and financed by property owners in the district. A Board of Directors represents the property owners of the district and also oversees management and implementation of the BID operating plan and budget. The board makes personnel, program, and budget decisions.
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how much does it cost and how long does it last?
Property owners approve the assessment model for the initial BID term, as well as renewal terms. The assessment model strives for a fair and equitable fee structure that provides a feasible budget to implement priority initiatives. After initial approval and establishment, every 5 years, property owners vote to continue the BID or not.
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what are the benefits of the BID?
A BID creates a way for property owners to pool their resources to sustainability fund and coordinate supplemental programs and services to provide added value, creating an enhanced business environment, elevated marketing and promotion of the district, and improved accessibility and infrastructure to generate more business activity, initiate cultural place-making efforts, and ensure the safety of all who live, work and visit. Priorities identified by the steering committee include: street lights, way finding, accessibility, additional snow removal, improved cleanliness, landscaping, special events, vacant building, improvements, safety, and public art.
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how is a BID budget created?
A special district, in this case, a Business Improvement District budget is based upon the assessments you acquire within the district. The assessment formula does not change unless the BID goes through another petition process. If part of your assessment formula is based on property value, then the BID will likely see small increases over time.
https://leg.mt.gov/bills/mca/title_0070/chapter_0110/part_0100/section_0240/0070-0110-0100-0240.html
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how is a BID governed?
A Business Improvement District, or BID, is governed by a Board of Trustees carrying out the functions of the district contained in the ordinance creating it. The purposes of the BID are to serve a public use, promote the health, safety, prosperity, security, and general welfare of the inhabitants of the BID and of the people of the state of Montana and to be of special benefit to the property within the boundaries of the BID pursuant to the provisions of Montana law.
https://leg.mt.gov/bills/mca/title_0070/chapter_0120/part_0110/section_0220/0070-0120-0110-0220.html
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why a BID for uptown butte?
Uptown Butte is a place of history and possibilities. The historic uptown corridor has growing potential to establish itself as a destination, as well as a draw to new business, with recent investment and activity. One of the implementation initiatives of the Uptown Butte Master Plan, approved and adopted in spring of 2022, is to establish a BID to elevate Uptown into a cleaner, safer, more accessible, more vibrant destination. BIDs are common tools for community improvements and added services and many Montana cities (Missoula, Kalispell, Helena, Great Falls, Billings, Bozeman, Livingston, Hamilton) have established BIDs that are engaged in place-making activities.
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how can I learn more about montana special districts?
We encourage you to visit Montana’s state code website for more information.
https://leg.mt.gov/bills/mca/title_0070/chapter_0120/parts_index.html