// CITY STAFF SEEKS TO UPEND CURRENT TIF OPERATIONS IN BILLINGS

City Council will discuss changes to Billings's tax increment financing (TIF) operations to ensure compliance with newly passed legislation. While the changes required in Senate Bill 3 (SB 3) are minimal, city staff are using the opportunity to recommend the expansion of government and the absorption of operations currently handled by contracted nonprofits like Downtown Billings. A summary from Downtown Billings is copied below:

The City staff will be proposing these two options to City Council: 

1.   Hybrid District Management Model: Meet new State Law and follow BMCC 2-500 with a newly hired TIF Coordinator position in the City and most operations for District support are City managed. The City would modify all three MOUs with Downtown, EBURD, & SBURA, and the entities would have to be clarified, to remove the core operational functions but leave a much smaller set of tasks or responsibilities that would be carried on by the District entity. This approach would mean a significant reduction in the operations budgets for each District entity but would leave an allocation for specific activities and spell out reporting to the Advisory Board, TIF Coordinator and City Council itself on a regular basis.

2.   Fully City Supported Districts and Advisory Boards Model: The City terminates all three MOUs with Downtown, EBURD, & SBURA, meets new State Law and follows BMCC 2-500 with a newly hired TIF Coordinator position in the City and all operations for District support are City managed. Budgets would be completely modified to redirect some funds for the TIF Coordinator and return significant funds to the Districts for projects and programs.

But there is a third option and it's not being presented by City staff. There can still be a status quo model that meets both the State Law (SB3) and the City's (BMCC 2-500) ordinance with only minor modifications to the District MOUs. And this model is what we intend to discuss and show support of.

A model for emulation, not abandonment

During the interim between the 2023 and 2025 Legislative Sessions, the Billings Chamber worked with several business and statewide organizations to find solutions to the concerns TIF opponents have voiced. We argued that our model is one for others to emulate because of the thoughtful policies the City has adopted, including:

• For every dollar of TIF investment, a minimum $5 of private investment is required.
• TIF advisory boards make recommendations to City Council for expenditure approval.
• Financial reporting from different TIF districts is consistent, coordinated, and uniform.
• Each TIF advisory board is required to take biannual training on TIF laws, admin rules, ethics, conflict of interest, and records management.

This outline creates a win-win through the nonprofit management of TIF districts. Entities like Downtown Billings are continually connected with the unique needs and opportunities within three distinctly different districts. And city policies help ensure there is appropriate City Council oversight of taxpayer dollars.

K.I.S.S.

Senate Bill 3 requires simple changes to become compliant—adding representatives to the TIF advisory boards from taxing jurisdictions (county and school district) that overlap with the TIF district.

• SB 3 addresses opponents’ concerns that taxing jurisdictions affected by TIF don’t have enough say in the process.
• SB 3 requirements can be met through simple MOU modifications without dismantling the current management structure.
• To our knowledge, no other cities are even considering such significant changes to their TIF operations to comply with SB 3.
• Other chambers of commerce in Montana that we spoke with shared:
• "Our city already runs the TIF and it's a nightmare."

In the weeds

Frequent City Council watchers are familiar with continual concerns that arise about, “staff’s time.” Usually, it's prompted by an ad hoc Council Initiative that will add to an already overflowing plate of staff responsibilities. Ironically, the staff recommendations regarding TIF administration is for city staff to absorb the work currently done by entities like Downtown Billings. Despite the proposal to add one city employee—TIF Coordinator—this will surely overburden an ostensibly overburdened staff. Inevitably, the result of new government operations will be to continually grow the bureaucracy, as prescribed in Parkinson’s Law.

What’re people saying?

Two well-known voices in Billings have already sent emails to City Council:

• “Having been involved with the Downtown Billings TIF District since its formation I would like to submit to you that the present oversight and management of the 3 such districts in Billings has worked well, involves private and public representatives and has a relatively small impact on the city's budget.” — Charlie Yegen
• “I would express my strong support of continuing the partnership between the City of Billings and the Downtown Billings Partnership. Their work and presence, in collaboration with the City of Billings, continues to provide a significant positive impact on our community.” — Chris Montague

Anything to add?

Attend Monday's Meeting: New City Hall, 316 N 26th St, 5th floor, 5:30 PM. Public comments are limited to three minutes.

Contact Your Council Representatives:

• Email All Council: council@billingsmt.gov
• Mayor Bill Cole: coleb@billingsmt.gov
• Ward 1: Kendra Shaw & Ed Gulick
• Ward 2: Jennifer Owen & Roy Neese
• Ward 3: Bill Kennedy & TJ Rogers
• Ward 4: Scott Aspenlieder & Daniel Tidswell
• Ward 5: Mike Boyett & Tom Rupsis

The bottom line—avoid the “nightmare”

Billings' nonprofit-managed TIF districts have successfully leveraged millions in private investment, revitalized downtown, added critically needed housing, made possible new sports facilities adjacent Amend Park, and expanded businesses in the BIRD. Additionally:

• Billings’s TIF administration provides good oversight and accountability and should be touted as a model for others to emulate.
• Moving to a city-run/managed model is likely too big a burden for the current staff, absent city staff expansion and the guarantee of future expansion. (See: Parkinson’s Law)
• A Billings city-run TIF might not become the “nightmare” experienced in other cities, but why risk our city's future economic development when we have a model that works very well already?

// 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. Montana's 69th Legislative Session Wrap-Up.

-Public Comment 

2. Urban Renewal District Legislative and Operational Modifications.

-Public Comment  

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:

• North Park courts resurfacing is complete (pics included)
• Airport press release announcing BIL as No. 7 domestic airport for stress-free travel
• 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.

🔸 Tuesday, July 22nd

Bicycle & Pedestrian Advisory Committee

12:00 - 1:30, Beartooth Conf Room, 5th Floor, 316 N. 26th St. (New City Hall)

Policy Coordinating Committee (PCC)

12:00 - 1:00 pm, Council Chambers, 5th Floor, 316 N. 26th St. (New City Hall)

Yellowstone County Planning Board

6:00 - 7:30 pm, Council Chambers, 5th Floor, 316 N. 26th St. (New City Hall)

Heights Neighborhood Task Force

7:00 - 8:00 pm, Oasis, 543 Aronson Blvd.

🔸 Wednesday, July 23rd

Public Works Board

12:00 - 1:00 pm, Public Works Building, 2251 Belknap Ave.

🔸 Thursday, July 24th

Board of Health

7:00 - 8:00 am, Riverstone Health, 3rd Floor, 2626 1st Ave. S.

Citizen Police Advisory Board

9:00 - 10:00 am, Rimrock Conf Room, 5th Floor, 316 N. 26th St. (New City Hall)

// 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.

The DEADLINE for applications is July 21, 2025.

BOARD OPENING (SEATS)

Billings Parking Board (1)

Housing Authority (1)

REQUIREMENTS

Must live in Billings

Live in 10 mi radius of Billings

// IN CASE YOU MISSED IT - AI SUMMARY AND SOURCE LINKS

In this section we re-visit last week's meeting, providing:

• an AI summary (YouTube transcript analyzed by Claude's Sonnet 4) 
• links to the Community 7 video 
• draft minutes produced by city staff (if available). 

We'll revise and edit when necessary for clarity, brevity, and to avoid inaccuracies, which are sure to happen on occasion. And, considering the difficulty Council has had with audio feeds, it's likely that some comments or segments of the meeting will be missed in the video transcript.

Billings City Council Business Meeting - July 14, 2025

Executive Summary

The Billings City Council convened for a comprehensive meeting that lasted approximately 2 hours and 11 minutes, addressing routine business items, public safety ordinances, tax increment financing (TIF) requests, and a debate over reducing the size of the city council. The meeting covered significant development projects, including improvements to Montana Avenue pedestrian safety and the redevelopment of the historic Masonic Temple building, while also tackling policy questions about government structure and representation.

Actions Taken and Votes

• Approved consent agenda with separations for conflict of interest items (unanimous)
• Passed ordinance amendment to Section 22-408 clarifying that individuals sitting, lying, or sleeping in public right-of-way in front of commercial entrances constitute obstructions (unanimous)
• Passed ordinance amendment to Section 24-601 exempting law enforcement from bicycle locking requirements for bait bike programs (unanimous)
• Approved TIF funding of up to $20,000 for four pedestrian crossing upgrades on Montana Avenue (unanimous)
• Approved TIF funding of $1,326,349 for Masonic Temple bldg. redevelopment project (passed with Council Member Neese voting against, Council Member Gulick recusing)
• Defeated motion to direct staff to prepare Charter amendment language reducing council size from 11 to 7 members (4 in favor: Aspenlieder, Kennedy, Gulick, Cole; 6 against: Owen, Neese, Rogers, Tidswell, Boyett, Rupsis)

Key Quotes from Councilmembers

Council Member Owen on the Charter amendment process: "I do mind it going to a public vote without adequate education and adequate information of all of the pros and cons of what the other strategies might be for government efficiency, for effectiveness and representation."

Council Member Kennedy on council size discussion: "It's time that we started moving forward and actually having the people in the community discuss what type of council, what type of government they want in their community."

Council Member Aspenlieder on council efficiency: "In 18 months that I've been on council we've had those kinds of [efficiency] conversations whether it be when we're sitting around a work session or whether we're sitting at the dais and we have never done any of them. We have never done any of them."

Council Member Neese on TIF funding: "I think we're overfunding it as a city through the TIF. I won't support this amount. I would support a lesser amount, more along the five for one which is 787,000."

Mayor Cole on TIF policy: "I've never liked including the purchase price in the calculations of the 5 to1 ratio, but that is not addressed in our policy."

Meeting Statistics

• Duration: Approximately 2 hours and 11 minutes
• Attendance: 10 of 11 council members present (Councilwoman Shaw absent)
• Public speakers: 5 individuals spoke during public comment periods
• Agenda items: 6 main items plus consent agenda with multiple sub-items

Other Relevant and Interesting Points

Transparency concerns: Extended discussion about potential conflicts of interest regarding the Downtown Billings Partnership potentially leasing space in the same building receiving TIF funding they recommended.

Policy debate: Significant discussion about whether to include building purchase prices in TIF funding calculations, with Mayor Cole proposing specific language changes for future policy.

Community engagement: Public speakers expressed strong opinions on council size reduction, with some supporting voter choice and others questioning the rush to decision.

Infrastructure progress: Administrator reported successful sale of former city hall and parking garage, with retail space at Par 1 expected to close in coming weeks.

Upcoming agenda items: City Administrator Kukulski announced that next week's work session will feature state legislative representatives and comprehensive TIF district policy discussions.

// ADDITIONAL BILLINGS CHAMBER RESOURCES

// BUSINESS ADVOCACY SPONSORS