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Town of West Yellowstone Resort Tax Renewal

Governor Ted Schwinden signed House Bill 826 on May 13, 1985 giving resort communities the authority to impose a 3% tax on luxury items sold within the city limits. Representatives from West Yellowstone were instrumental in lobbying the legislature to pass the bill.

The Town of West Yellowstone put the resort tax option on the ballot in November of 1985 and the option was approved for 20 years.

Resort tax collections began in January 1986.

1986

Resort tax collections for 1986 totaled $502,214. The General Fund budget for 1986 had the

maximum mill levy of 75 mills.

1987

SID Bond #1 Series 1987 for $515,000, was issued for 19 years for the construction of a fire protective system.

Total cost of the project was $796,023 of which resort tax supported $255,975 of initial construction costs.

Prior to the installation of the system, there were a total of six fire hydrants in the Town of West Yellowstone. The Town was considered unprotected and had the worst possible ISO rating of 10.

Fire Protective System

There are now 115 fire hydrants in West Yellowstone.

The Town now has a considerably better ISO rating of 7, due in large part to the installation of the system and support from resort tax for the Fire Department.

ISO ratings affect the cost of insurance for all property owners.

1987

The Town issued 1987 Resort Tax Bond #1 for 18 years for the construction of a storm sewer system at a cost of $1,110,000.

Total project cost was estimated at $1,281,860. Resort tax supported $25,760 of initial construction

costs. MDOH contributed $150,000 to the project. Installation of the system provided the Town with a

method to control run-off and protect the streets.

Storm Sewer Project

Storm Sewer Project

Storm Sewer Project

1988

In 1988, the Town issued Resort Tax Bond #2 for $2,650,000 to cover street improvements and sidewalk construction.

The total estimated cost of the project was $4,277,050 of which MDOH allocated $1,265,600 to reconstruct and light Highway 20 at the same time.

Initial construction costs were covered by $150,000 from resort tax and $191,450 carried over from the bond proceeds of Resort Tax Bond #1.

Boundary Before

Boundary After

Madison & Dunraven Before

Paving on Madison

Highway 20 Before

Highway 20 Before

Highway 20 Before

Highway 20 After

1989

Whisky Springs Water Project Bond was issued by the Town and the DNRC in 1989 for 20 years to establish a central water system and reservoir and later included a chlorination facility.

Resort tax revenues supported $100,000 of initial construction costs and supplemented user fees to pay the annual bond payments.

Resort tax and the advantages that come from a gravity-fed system enable the Town to maintain comparatively low water rates.

Spring Box Construction

Whiskey Springs Reservoir

1990

Through the support of resort tax, the Town spent $73,653 to perform a complete rehabilitation of the wastewater blower building.

The Town was also able to purchase their first new ambulance.

1991

The Town began Phase I of the Sewer Renovation Project at the blower building for $84,700.

1992

The Town started Phase II of the Sewer Project, aeration of the lagoon.

Cost for the total project was $675,000.

The Town secured Resort Tax Bond #4 for $304,500 in 1994 to help fund the project.

Annual bond payments were made entirely from resort tax for the next five years.

1993

The Emergency Services Building was constructed in 1993 for $336,560 funded entirely by resort tax.

The building housed the Fire Department, EMS Department, and Town Offices.

Another $145,000 was spent on the building in later years to complete the interior and roof.

The Town also replaced 1200 feet of waterline along Yellowstone Avenue for $22,900.

Emergency Services Building

1994-1995

In 1994, the Town spent $46,000 to remodel the Police Station, the original Baggage Depot for the Union Pacific Railroad, and $95,341 for a new emergency response radio in the police station.

The Town also spent $569,795 to rehabilitate the wastewater treatment facility, funded solely by resort tax funds.

In 1995, the Town purchased their first new Fire Truck for $155,049.

Police Station

Fire Truck

1996

By 1996, resort tax had enabled the Town to bring the mill levy down from 75 mills to 44 mills as annual resort tax collections rose to $1,414,274.

In addition to infrastructure projects and bond payments during the first ten years of the tax, the Town was able to purchase snow removal equipment, police vehicles, and contribute annually to community programs including the Fourth of July Fireworks, Shakespeare in the Park, the Summer Recreation Program, and the Galavan Bus.

1997 The Town budgeted $40,000

for repairs to the Museum and Clinic Building and $35,000 to bring the Dining Lodge into ADA compliance and $10,000 was dedicated to repair the rockwork on the chimney.

The Town allocated another $148,000 for alley paving and other street and sidewalk improvements.

Another $84,000 was spent to purchase a second new ambulance.

1997

Also in 1997, $40,000 was allocated to renovate and expand the public bathrooms at the City Park.

The Town also purchased a street sweeper that year for $47,750, paid for over the next three years.

Street Sweeper

Union Pacific Dining Lodge

1998-1999

Another $306,000 from resort tax revenues was invested in sewer lagoon construction.

Additional remodeling at the Clinic and Union Pacific Dining Lodge totaled $41,700.

In 1999, $30,000 was allocated to pave the ice skating rink. $9000 was budgeted for roof repairs at the Union Pacific Dining Lodge to maintain its historic integrity.

Medical Clinic

2000

The Town purchased two new Police Vehicles for $55,000.

A new ambulance was purchased for $85,000. The Town used resort tax funds to upgrade the

ambulance service to Advanced Life Support through the purchase of defibrillators and medications at a cost of $35,000.

$49,500 was budgeted for street and alley repair, $53,700 for street lighting, and $28,000 for a mandated sewer degradation study.

Police Vehicles

Ambulance

2001 $81,200 was allocated for street and alley projects as

well as $136,500 to for street lighting along Gibbon and Canyon Street

A new Fire Rescue Apparatus was purchased for $125,000 plus $26,000 for a state of the art compressed air foam system.

2001

The Town contributed $50,000 to the Yellowstone Historic Center as a match for a Dumke Foundation Grant. The grant was used to replace the roof at the Museum and restore the historic flagpoles.

2001

A new state of the art 911 Emergency Response System was installed in the Police Department for $133, 000.

The Town also purchased an industrial snowblower for $179,000 that allows the Town to more efficiently remove snow from streets.

Industrial Snow Blower

2002

By 2002, resort tax collections had risen to $1,774,409. The Town had lowered the mill levy to 43 mills. $94,700 worth of street lighting projects were

budgeted, including the completion of Gibbon Avenue and the buyout of the Yellowstone Avenue Lighting Assessment District by reimbursing business owners for the initial cost of creating the district.

Resort Tax Renewal The Town Council passed Resolution No. 412 on July 25,

2002 to place the renewal of the resort tax on the November 2002 ballot.

The electorate of West Yellowstone overwhelmingly voted to renew the tax for another twenty years by a favorable margin of 88%

Even though the current tax did not expire until December 2005, the Town Council realized they could not plan for any future projects until the tax was renewed.

2003

The Town was able to add a full-time, year-round Recreation Coordinator position to the staffing plan.

This individual runs the Smoky Waters Summer Recreation program for 10 weeks of the summer for children ages 5-12. The program includes daily activities as well as a weekly field trip to a regional destination such as Lewis & Clark Caverns, Yellowstone National Park, Museum of the Rockies, Bear World (Rexburg), and Tauptus Park Zoo (IF).

Recreation Programs

2004

In 2004, the Town contributed $30,000 of resort tax funds plus the land as a match to a US Forest Service Grant to build a new Trailhead Facility to service the Rendezous Ski Trails.

2004

The Town received a donation in the amount of $350,000 from Ellie Povah to put towards the purchase of a new library for $600,000. The balance of the Town’s share was later assumed by the taxpayers through a General Obligation bond.

2005

The Town purchased its first ladder truck, a 1985 E-One with a 55’ ladder for $35,000 to maintain the Town’s ISO rating of 7.

The Town was also the recipient of Saving America’s Treasures Grant, a federal appropriation of nearly $400,000 to be used for restoration of the Union Pacific Dining Lodge.

2006

Two new Dodge Durangos were purchased as police vehicles for $55,000.

Two snow-hauling trucks were purchased from Yellowstone National Park for $23,000.

The Town also approved a General Obligation Bond in the amount of $1.6 million to match the SAT grant, offset the balance owed on the Library, and finance the new community center.

Ladder Truck & Snow Hauling Truck

2007

The Povah Community Center was constructed for a total cost of $1.3 million dollars. Ellie Povah donated $300,000 towards the center which serves as a Senior Center and provides space for the recreation program, meetings, and social events.

Tennis Courts were also completed for a total cost of $99,000. The project benefited from a $41,000 donation from the Atwood family, $23,500 was raised by the tennis association, and the balance came from resort tax.

10 South Geyser Street

West Yellowstone, Montana

Povah Community Center

Tennis Courts

Marketing & Promotions Fund

The Town created the Marketing and Promotions (MAP) Fund from Resort Tax.

Previously, merchants that collected the tax would retain 5% of the tax as an administration fee.

Upon passage Resolution No. 515, merchants only retain 2.5% of the tax they collect. The other 2.5% goes into the MAP Fund for advertising and promotions of events in West Yellowstone.

The fund is managed by an advisory board which makes recommendations to the Town Council.

2008-Fire District Annexation

A petition was put forth jointly by the Town of West Yellowstone and the Hebgen Basin Fire District to annex the Town into the Hebgen Basin District.

The petition had to be signed by 40% of the owners of real property in the district as well as 40% of the taxable value of the property in the district.

The petition effort was successful and the annexation was approved by the Gallatin County Commission in January of 2009.

2009-Fire District Annexation

The Hebgen Basin Fire District was officially formed April 1, 2009.

The District now provides fire and emergency services to the entire basin.

The Town contributes $450,000 from Resort Tax to support the District annually.

2009

The Town purchased a new CAT 938H Wheel Loader for $138,000 to assist with snow removal.

The roof on the Library was also replaced for $14,000

2010

The Canyon Street Project, which involved installing brick pavers, trees, bushes, benches, and bike racks along Canyon Street in West Yellowstone was completed using both Resort Tax and CTEP (Community Transportation Enhancement Program) funds.

New playground equipment was installed in Pioneer Park-much to the delight of the children in our community.

Canyon Street & Playground

2011

The Town has adopted a vehicle rotation program to regularly replace Police and Public Works vehicles.

Two new Ford Expeditions have been purchased for Police Patrol vehicles.

The Town has budgeted $150,000 to replace the windows at the UPDL this summer, $150,000 for new streetlights on Madison Avenue, and $65,000 to pave the parking lot at the Povah Community Center.

Contributions

The Town makes annual monetary or in-kind contributions to support the Library as well as other community organizations such as the Community Help Fund, and activities such as Shakespeare in the Park, 4th of July Fireworks, EXPO, and the Rendezvous Ski Race.

The Town supports the Chamber of Commerce/Visitor Information Center by providing the land for the center and has developed a partnership for providing maintenance of the grounds and Chamber facilities.

The Town also contributes to the success of healthcare in West Yellowstone by providing and upgrading the Clinic facilities and providing essential services such as snowplowing and grounds maintenance.

Annual Collections

Annual collections have risen steadily since 1986 enabling the Town to mitigate the impacts of tourism and enhance the community.

Resort Tax has generated more than $36 million dollars for the Town of West Yellowstone to date.

The Town of West Yellowstone currently levies 49.85 all purpose mills and 29 mills for the General Obligation Bond (approved in 2006).

Annual Collections

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

1986

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Series1

Future Capital Projects & Plans

Town Hall Timber-Framed Pavilion in the City Park Further preservation of the Union Pacific Railroad Bldgs. Street Lighting Skate Park Interior Parks Improvements Relocate Public Services Shops Ice Skating Rink

Resort Tax-In a Nutshell

Resort Tax has allowed the Town of West Yellowstone to reduce property taxes and finance major infrastructure improvements. Resort Tax has improved essential services such as police, ambulance, and fire protection as well as provided funds for beautification of the Town and restoration of the historical buildings. Recreation and social opportunities have also improved. Resort tax has made West Yellowstone a better place to live and visit.