// RETURN OF THE TIF

City Council's last meeting in September featured a whopping 29 items on the agenda. Tonight they have only one—Urban Renewal District (URD) agreements. Generally, we refer to URDs as tax increment finance (TIF) districts, though TIF is actually the funding mechanism for the URD. While we use the terms interchangeably to describe the districts, technically URD is the correct nomenclature...*Beep, boop*...

Tonight, City Council will review proposed agreements with the three nonprofit organizations that manage Billings's TIF districts. The agreements formalize the continuation of the current partnership model while ensuring compliance with recently passed state legislation. Following Council's July 21 rejection of city staff proposals to absorb TIF administration, these agreements establish the framework for the Downtown Billings Partnership, BIRDworks, and South Billings Urban Renewal Association to continue managing their respective districts through June 2029. The contracts total approximately $2.5 million over the agreement period.

Tax Increment Financing (TIF) in one sentence:

TIF districts establish a property tax "base" rate, then capture increased tax revenue above that base to reinvest in the district's infrastructure and make economic development improvements that address blight and other concerns.

Why it matters:

The agreements preserve the nonprofit management model that has operated Billings's TIF districts for nearly two decades. This model has leveraged millions in private investment while maintaining City Council oversight of taxpayer dollars. The contracts provide budget certainty through fiscal year 2029, establishing clear financial commitments rather than the previous year-by-year appropriation process.

How it works:

Each nonprofit will serve as an independent contractor performing services outlined in detailed scopes of work. The entities will continue administering TIF applications, supporting advisory committees, coordinating with city staff, and recruiting private investment in their districts. City Council retains ultimate decision-making authority on all TIF expenditures. The agreements can be terminated by the city with 30 days' written notice.

Scope of Services (uniform across all three agreements):

• Ensure TIF-funded projects align with Urban Renewal Plans
• Coordinate with city staff and advisory committees on plan amendments
• Provide quarterly written reports on Urban Renewal Plan implementation
• Recruit private investment in partnership with the city
• Develop and maintain TIF application forms and guidelines
• Accept, review, and evaluate TIF funding applications
• Submit complete applications meeting statutory criteria to Council with recommendations
• Draft development agreements for approved projects
• Monitor compliance with development agreement conditions
• Plan and coordinate advisory committee meetings in compliance with Montana law
• Prepare meeting agendas, notices, and publications
• Assist advisory committees with annual work plans, budgets, and TIF fund allocations
• Provide biannual training on TIF laws, ethics, conflicts of interest, and records management
• Facilitate advisory committee adoption of bylaws within three months of member appointments

Follow the money:

The payment schedule reflects eight months of FY26 (November through June) followed by three full fiscal years. The FY26 amounts match what Council approved during the annual budget process. Future year amounts were requested by each entity based on anticipated operational needs and inflationary pressures.

How did we get here?

Senate Bill 3 passed during the 2025 legislative session, requiring cities to add representatives from overlapping taxing jurisdictions to TIF advisory boards. At the July 21 work session, city staff presented two options: a hybrid model reducing nonprofit operations significantly, or full city management terminating all nonprofit partnerships. Staff did not present a third option maintaining the status quo with minor modifications to comply with SB 3.

The Billings Chamber opposed the city management staff proposals, arguing Billings's TIF model is worthy of emulation by others rather than abandonment for the purpose of growing government. Thankfully, Council unequivocally rejected the city management approach and directed staff to negotiate agreements preserving the current structure while meeting SB 3 requirements.

Timeline:

• May 13, 2019: Council approved original MOUs with 5-year terms
• April 2024: Council extended MOUs one year to June 30, 2025
• June 23, 2025: Additional extension to October 1, 2025 following SB 3 passage
• July 21, 2025: Council rejected staff proposals for city management, directed status quo approach
• October 6, 2025: Council reviews proposed agreements
• November 1, 2025: Proposed effective date
• June 30, 2029: Agreement expiration

The bottom line:

These agreements establish financial certainty and operational continuity for Billings's TIF program while maintaining the partnership model that has successfully leveraged private investment. The multi-year commitment provides stability for economic development efforts across three districts representing downtown, east Billings, and south Billings corridors. The contracts formalize what was previously handled through annual budget appropriations, making long-term planning more predictable for both the nonprofits and the City.

// 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. Urban Renewal District Agreements.

-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:

• City Hall elevators completed by Thanksgiving!
• Fire Station 5 remodel update
• 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, October 7th

Human Services Transportation Coordination Plan Meeting

9:30 - 10:30 am, MET Transit Conf Room, 1705 Monad Rd.

Community Development Board Meeting

3:00 - 4:00 pm, Beartooth Room, 5th Floor, New City Hall, 316 N. 26th St.

City Zoning Commission

4:30 - 6:00 pm, Council Chambers, 5th Floor, New City Hall, 316 N. 26th St.

🔸 Wednesday, October 8th

Parks & Recreation Board Meeting

11:00 - 1:00 pm, Parks & Rec Offices, 390 N. 23rd St.

City Council Legislative and Local Affairs Committee

9:00 - 11:00 am, Rimrock Room, 5th Floor, New City Hall, 316 N. 26th St.

🔸 Thursday, October 9th

Library Board Meeting

12:00 - 1:00 pm, Billings Public Library, 2nd Floor, 510 N. Broadway.

// 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 October 6, 2025.

BOARD OPENING (SEATS)

EBURD Advisory Committee (6)

Downtown Urban Renewal District (4)

SBBURD Advisory Committee (7)

REQUIREMENTS

At Large*

At Large*

At Large*

*— Must own, operate, or represent a business, property, or organization in the District or who otherwise have a significant vested interest or presence in the District. Two of the EBURD’s members must be owners or occupants of residential property in the District.

// 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 4.5) 
• 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.

There was no meeting last week - it was the 5th Friday of the month

// ADDITIONAL BILLINGS CHAMBER RESOURCES

// BUSINESS ADVOCACY SPONSORS