// TIF TUG-O-WAR: PONDERING TIF EXPANSION PRIOR TO A LEGISLATIVE SESSION THAT WILL DISCUSS NARROWING TIF

Last week, City Council was presented a menu of options to replace the 110-year-old South Park Pool. Each successive option in the feasibility study included more features, from a varying-depth pool to a vortex and waterslides. Of course, as the number of amenities increases, so does the cost, with estimated project costs ranging from $8 million to $15.5 million.

That was the fun part—imagining what could be with the new South Park Pool. Now Council needs to discuss how they can pay for the improvements. Last year's Parks & Rec Bond would have dedicated $16.5 million toward the South Park Pool—allowing Council to afford the replacement option with all the bells and whistles, vortexes and waterslides included. However, voters resoundingly rejected the proposal, partly because the election was held months after an unfavorable property tax reappraisal cycle.

Tonight, Council will discuss a potential option to pay for South Park Pool—expanding the South Billings Urban Renewal Area (SBURA) tax increment finance (TIF) district. One of three TIF districts in Billings, SBURA utilizes TIF (one of Montana's only economic development tools) to promote economic development and remove blight in the area. As an economic development tool, TIF is intended to incentivize investment in an area where values are declining and would otherwise continue to decline.

A TIF district works by locking in the base taxable value (A) of a defined area. Growth of taxable value generated above the base (B), which would otherwise go to various taxing jurisdictions like city, county, and schools is separated and made available to the TIF district for economic development in the area. Once the TIF district sunsets, the entirety of the taxable value (C) goes to the taxing jurisdictions. 

There are also limitations on what can be funded by increment dollars. Only certain expenses qualify for TIF reimbursement. Property owners applying for TIF funding must get project approval from City Council and actually pay for those improvements, with reimbursement from the TIF district coming afterwards.

Expanding SBURA into the Southside Triangle to cover the South Park Pool neighborhood would entail growing the district to the NE of it's current area, consisting of 2,346 parcels. Adding the Triangle would increase SBURA to 3,391 parcels, primarily residential properties.

In order to expand, an analysis detailing infrastructure and property deficiencies, along with the existence of blight, must be conducted. State statute outlines the analysis and public process requirements. The staff memo lists the following public meetings that would need to be conducted.

• Council Work Session to discuss expansion (TONIGHT)
• SBURA Board discusses expansion and vote to support (Sept. 3)
• Staff prepares to notify property owners of intent to expand district and hold public information meeting
• Council Work Session(s) to determine moving forward with expansion
• Council Work Session(s) to review blight analysis
• Council passes resolution to amend the District - Declares existence of blight - Sets a public hearing
• Planning Board reviews amendment of the District and must make a formal finding that amending the District conforms with the City’s Growth Policy, as per State Law. Makes recommendation to City Council on conformance.
• City Council conducts a public hearing and acts on First Reading of an Ordinance to expand the District. Modified Urban Renewal Plan is part of this action.
• Council conducts Second Reading and final Approval of Ordinance to expand the District.

One of the considerations we're sure to hear Council discuss is how this change could impact the debate on upcoming TIF legislation. Every legislative session TIF goes under the microscope, with bills ranging from minor changes to effectively eliminating TIF as an economic development tool. This session will be no different as legislators are already discussing potential changes like redefining blight, editing the list of improvements TIF can be used for, and shortening the duration of districts.

Fortunately, Billings has done well managing its TIF districts, helped by passage of an 2018 ordinance which:

• Requires a private to public investment ratio of 5:1
• City Council approves all TIF decisions with few minor exceptions
• Uniform reporting across multiple TIF districts
• Require advisory boards to receive legal, ethics, and governance training

In 2020, the Billings Chamber supported the creation of a new TIF district, dubbed the Founders District, between the existing downtown TIF and Division St. Without an immediate project to add increment value to the TIF—otherwise it takes years for increment value to accrue—Council decided against moving forward with the idea.

The Billings Chamber hasn't taken a position on tonight's TIF adjustment proposal and we are very interested to see how the discussion goes. 

// WORK SESSION AGENDA - 5:30 p.m. - BILLINGS CITY HALL

In this section, we will include the meeting agenda for you to view. Clicking on the items will take you to more information. No need to read it all, but if something catches your eye, be sure to check it out.

CALL TO ORDER: Mayor Cole 

PUBLIC COMMENT ON ALL ITEMS. Comments are limited to three (3) minutes during each public comment period or as set by the Mayor. 

1. Community Development Division Discussion.  

-Public Comment Click to View 

2. South Billings Boulevard Urban Renewal District Expansion Discussion.

- Public Comment Click to View 

HIGHLIGHT UPCOMING AGENDA ITEMS OF COUNCIL INTEREST: 

COUNCIL DISCUSSION: 

PUBLIC COMMENT on “NON-AGENDA ITEMS”. Comments are limited to 3 minutes or as set by the Mayor.

ADJOURN:

// WATCH THE MEETING ON COMMUNITY 7 TELEVISION

// CITY ADMINISTRATOR WEEKLY REPORT

City Administrator Chris Kukulski began the routine of sending a weekly report every Friday to City Council and department heads with the intent to, "communicate the highlights of the past week and any critical issues coming up." The most recent CA Report includes updates on:

• Semi-annual reports from BIRD
• How to start a Neighborhood Watch meeting details
• And much more...

// GET MORE INVOLVED IN YOUR COMMUNITY

Below are some additional public meetings being held this week, along with information about when and where to attend, and what's on the agenda (if one is available).

Tuesday, Aug 20th

Policy Coordinating Committee

12:00 - 1:00 pm @ Stillwater Building, 3rd Fl. Rm. 3101, 316 N. 26th

Agenda here.

West End Task Force

7:00 - 8:00 pm @ Connections Church, 56th St W.

Wednesday, Aug 21st

How to Start a Neighborhood Watch

6:00 - 7:00 pm @ Grace United Church, 1935 Avenue B.

// THE SQUEAKY WHEEL

// BOARD & COMMISSION OPENINGS

The Mayor's Office is accepting letters of interest to fill the vacancies listed on the city website. For more information on each specific board, visit the city website. City Boards and Commissions are appointed by the Mayor, confirmed by City Council, are advisory only, and members serve without compensation.

Submit applications to: Mayor's Office, PO Box 1178, Billings, MT 59103-1178 NO LATER THAN AUGUST 26th.

BOARD OPENING (SEATS)

Community Development Board (1)

Community Development Board (1)

Tourism BID (2)

REQUIREMENTS

Must live in Billings—Low-Mod

Must live in Billings

Live in Billings—Hotel Industry

// IN CASE YOU MISSED IT

City Office Relocations – As of August 12, 2024, City of Billings Code Enforcement, Building Division, Community Development, and City/County Planning Division will no longer be within the Miller Building.

Divisions will be located at the following temporary locations.

Building Division:

• Customer Service Counter: Available at the Billings Public Library, 510 N. Broadway, 2nd Floor Computer Classroom, Monday- Friday, 9am – 5pm. A permit technician and plans examiner will be available to help the public during these hours. Phones will be answered 8am - 5pm daily. Submit all inspection requests to inspections@billingsmt.gov and general questions to permits@billingsmt.gov.

Code Enforcement:

• Code Enforcement Clerk: Available at the Billings Crime Prevention Center, 2910 Third Avenue N., Monday - Friday, 8am - 4:30pm.

• Residential Code Enforcement Officer: Mark Guy will also be housed at the Crime Prevention Center, Tuesday through Friday starting August 13th, 2024.

• Code Enforcement Division Manager and Officers: Will remain accessible via desk phone and email throughout this transition period.

Community Development:

• Community Development Division will continue to be contacted using staff contact information on the City’s webpage www.BillingsMT.gov/ComDev

Planning Division:

• Customer Services Counter: Available at the Billings City Hall, 210 N. 27th Street, Finance Department, Monday – Friday, 8am – 5pm. A planner and senior planner will be available to assist with general planning inquiries, document drop-off/pick-up, and all other regular operations.

// ADDITIONAL BILLINGS CHAMBER RESOURCES

// BUSINESS ADVOCACY SPONSORS