The Bozeman City Commission on Monday will consider cutting street impact fees by one-third.
David Graham, president of the Southwest Montana Building Industry Association, says decreasing the fees charged to developers for new roads could stimulate the sluggish Bozeman home-building market.
But city staff claims there’s a tradeoff. To make up for the lost fees, they say current residents would have to pay more in property taxes.
Bozeman planning and finance department heads claim the city would need to raise taxes by 5.5 percent a year to replace the $750,000 a year that’s currently generated by street impact fees.
“All property taxpayers would be funding the infrastructure expansion related to our growing community,” states a memo to commissioners from Planning Director Tim McHarg, Assistant Planning Director Chris Saunders and Finance Director Anna Rosenberry.