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Determiniation_of_Permissive_Levy_for_Group_Benefits_2009.xls

FY2010_Consolidated_Govs_Entitlement_Table_3.pdf

FY2010_Town_Entitlement_Table_3.pdf

Property_Reappraisal_and_Certification_Memo_and_Fact_Sheet_6-2-09.pdf

For information on how the Department of Commerce will allocate the federal stimulus funds, go to this Department of Commerce website.

As most of you know from earlier advisories and press releases, the federal Department of Energy (DOE) recently released stimulus funding for energy efficiency block grants to local governments. Almost $4.4 million for energy efficiency block grants will pass directly from DOE to Montana's major cities and counties. Funding criteria and program standards have been developed by DOE for this formula-driven portion of the program.

A second avenue of funding at $5.7 million will be administered by the Department of Environmental Quality (DEQ) and is intended for Montana's remaining cities and counties. This amount is derived from a Department of Energy stipulation that not less than 60 percent of the total award to the state energy offices (DEQ) be allocated to Montana's smaller cities, towns and counties.

Montana State Energy Program Award:   $9,593,500 

                        Local Government Allocation (60 percent):  $5,756,100

                        State Energy Program Amount (40 percent):  $3,837,400

The DEQ has discretion over the 40 percent ($3.8 million) for administration and other expenditures, but expects to allocate about $2 million in additional direct grants or technical assistance to local governments.

Funding criteria and program standards for grants to Montana's smaller cities and counties are being developed by the DEQ. Criteria and standards generally will mirror those developed by DOE for the formula grant program.

Montana-Specific Program Considerations

The following is a listing of Montana-specific program design considerations for grants to local governments through DEQ. 

• A maximum grant of $200,000 shall be established. 
• Not more than 75 percent of the $5.7 million in funding shall be collectively allocated to either cities or counties. 
• No more than one block grant allocation per local government jurisdiction shall be awarded with the understanding that a competitive grant application may have multiple components and projects.  
• Several jurisdictions may join efforts and make a single application. In that event, the coordinating jurisdiction will be allowed a maximum $200,000 and each additional jurisdiction allowed a maximum $100,000. The total maximum coordinated allowed amount shall not exceed $500,000. 
• A point preference system is planned. Applicants are encouraged to leverage grants or match funding from other sources. Applicants who have access to utility rebates and incentives must utilize them but will not be offered preference on the basis of these types of programs. 
• Although energy auditing is encouraged, local governments applying for grants to provide energy efficiency retrofits to buildings and/or facilities need not provide an energy audit of the proposed project. However, building projects shall be applied for with the understanding that two years of energy billing data shall be made available to DEQ for review. This data and future energy expenditure data for the facilities shall be enrolled in the state's energy management software and the energy-use data shall be made available to the local governments and the general public.  
• Only those (10 largest) Formula-Based cities and counties allocated less than $200,000 by DOE may apply to the state energy office (DEQ) for competitive grants. The combined total of EECBG funding through DOE and DEQ to these Formula-Based local governments shall not exceed $200,000. 
• A Selection Committee staffed with appropriate professionals and representatives will be established by DEQ.  The final authority to select applications remains with the Department of Environmental Quality.

The DEQ plans to offer technical assistance to local governments not awarded grants, perhaps in the form of energy audits and/or enrollment in the state energy tracking system.

Deadlines and Timelines: The deadline for DEQ to apply to the Department of Energy for release of funding is June 25, 2009. The basic program design for the EECBG must be submitted at that time and the above considerations are expected to be incorporated into the application. Consequently, a deadline has not yet been determined for the small cities and counties to submit applications to DEQ.

Local governments should immediately begin the process of selecting potential projects for the grants. The application process may begin as early as August/September, 2009.

Once the competitive grant applications are submitted to DEQ, the Selection Committee will prioritize the applications and award grants. Local governments must commit funding within 12 months after the grant is awarded and complete projects within 36 months.

Website: The DEQ website contains current information about the grants and is available at: http://deq.mt.gov/Recovery/energy/nonFormulaGrants.asp  (Posted 06/02/2009)

 

The Department of Revenue has calculated the inflation factor to be used in the mill levy calculation as prescribed by 15-10-420, MCA for FY2010. Under that statute the Department of Revenue is required to:

 

 "calculate one-half of the average rate of inflation for the prior 3 years by using the consumer price index, U.S. city average, all urban consumers, using the 1982-84 base of 100, as published by the bureau of labor statistics of the United States department of labor".

 

The rate of inflation for the three years prior to 2009 can be measured from December 2005 to December 2008. The U.S. City average CPI-U, not seasonally adjusted, was 196.8 for December 2005 and 210.228 for December 2008. These values can be found at http://data.bls.gov.

 

The average annual inflation rate over this period is 2.2245%. That is, if you grow the value of 196.8 three times at 2.2245% each time, the result will be 210.228.

1 196.800 x 1.022245 = 201.178

2 201.178 x 1.022245 = 205.653

3 205.653 x 1.022245 = 210.228

One-half of 2.2245% is 1.112%. The value to use in the mill levy calculation for fiscal year 2010 is 1.112%.

This is an decrease from the 1.672% value used in the mill levy calculation for fiscal year 2009. If you have any other questions please contact Vern Fogle at 444-1821. (Posted 04/17/09)

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