Billings City Council Regular Business Meeting - August 25, 2025

The Billings City Council held its regular business meeting on August 25, 2025, at 6:00 PM. The meeting covered a wide range of topics including consent agenda approvals, public hearings on land use, street naming, wastewater wholesale rates, annual levies, budget amendments, and the creation of urban renewal district advisory committees. Council also recognized a scout troop and a police officer for outstanding service, and received a proclamation for the Healthy Tribes Run on the Rims Challenge Day. Several items generated extended debate, particularly the mill levy setting and the FY2026 final budget, which were both approved on 7-2 votes after amendments.

Consent Calendar

• Approved minutes from August 11, 2025, and the consent agenda (items A1 through C2) with the exception of item D2 (bills for the week of August 4, 2025). Item D2 was separated for recusal by Councilmember Rupsis and later approved unanimously (with Rupsis abstaining).

Public Comments & Testimony

• No public comment was offered on non-hearing items (consent agenda or TIF board appointments).
• During public hearings on items 2, 3, 4, 5, 6, 7, and 8, no members of the public spoke.
• On item 9 (FY2026 final budget), Kevin Nelson (4235 Bruce Avenue) urged the council to increase traffic enforcement funding, citing recent accidents and arguing that additional enforcement would prevent collisions. He also asked for transparency on traffic stop statistics.
• No public comment was offered on non-agenda items at the end of the meeting.

Discussion Items

• Item 2 – Legion School Parking Lot Landscape Buffer Waiver: The council held a public hearing on a request from Allegian School to waive a six-foot landscape buffer requirement at the ends of parking aisles. Superintendent Luke Shelton explained the waiver was needed to stay within budget and complete the parking lot before school started; the net landscaping would be increased elsewhere. Council took no vote (state law only requires public hearing). Mayor Cole commented that government should follow the same rules as others, but acknowledged the net landscaping benefit.

• Item 3 – Street Name Change (Leatherneck Lane to Community Place): Approved unanimously after public hearing. The change affects only Intermountain Health's laundry facility.

• Item 4 – Wastewater Wholesale Rates for FY2026: Staff presented a revised rate methodology using a 7-day rolling average for capacity, resulting in lower revenue than originally projected. The shortfall of $1.1 million would be addressed by cutting $700,000 from the sewer line extension fund and using $400,000 from reserves. Representatives from Par Montana and Phillips 66 both spoke in support of the resolution, agreeing to continue work on FY2027 rates. Councilmember Neys questioned whether the refineries were paying enough compared to commercial customers; staff clarified that wholesale rates are not apples-to-apples due to pretreatment and separate infrastructure. Councilmember Gullick noted that the new methodology gives refineries more control over their rates by reducing peak spikes. The resolution was approved unanimously.

• Item 5 – Setting Annual Levies (Mills) for FY2026: Finance Director Andy presented a resolution to levy 244.39 mills (35 more than prior year) to generate the same revenue as FY2025 due to a 15% reduction in taxable value from legislative changes. The median home would see a ~$200 reduction in city property tax. Councilmember Owen offered an amendment to split the levies into charter-authorized amounts (74.00 for general fund, 5.00 for library, etc.) and a new line F (34.71 mills) for HB 231 compliance, to maintain flexibility. After extensive debate—including concerns about transparency and potential 'slush fund'—the amendment passed 6-3 (Councilmembers Gullick, Rupsis, and Cole opposed). A second amendment by Councilmember Neys to specify the allocation of the 34.71 mills in the resolution text passed 7-2 (Kennedy and Rupsis opposed). A third technical amendment to correct the mill increase number from 35.72 to 34.71 passed 7-2. The final amended resolution passed 7-2 (Kennedy and Rupsis opposed).

• Item 6 – Road Maintenance District No. 6 Assessments: Approved unanimously. 51 lots at $55 per lot ($2,800 total) for emergency access road maintenance, unchanged from prior year.

• Item 7 – Park Maintenance District Assessments: Approved unanimously. Total FY2026 revenue of ~$1.7 million, up 15.5% from prior year, driven by requests from Ironwood and Reburg Ranch HOAs for entry sign and trail lighting projects.

• Item 8 – FY2025 Budget Amendments: Approved unanimously. Two amendments: increased costs for centralized printing services and property/liability insurance deductibles.

• Item 9 – FY2026 Final Budget: Approved 7-2 (Kennedy and Rupsis opposed). The budget included four amendments: re-establishing projects in South and Downtown TIF districts, and budget authority to pay down city hall debt from the sale of Park One Retail and old city hall.

• Item 10 – TIF Advisory Committees (Three Resolutions): The council considered three separate resolutions creating advisory committees for the East Billings (EBERD), South Billings Boulevard (SABURA), and Downtown Urban Renewal Districts. Councilmember Neys proposed an amendment to require that city, county, and school district appointees (sections A, B, C) not own property in the district. After debate—some council members expressed concern about limiting the pool of candidates—the amendment failed 3-6. All three underlying resolutions were then approved unanimously.

Key Outcomes

• Vote on FY2026 Wastewater Wholesale Rates: Approved unanimously (9-0).
• Vote on FY2026 Mill Levies (after three amendments): Approved 7-2 (Councilmembers Kennedy and Rupsis opposed).
• Vote on FY2026 Final Budget: Approved 7-2 (Councilmembers Kennedy and Rupsis opposed; note: Councilmember Tidswell was initially thought to have voted no, but corrected to Rupsis).
• Vote on TIF Advisory Committee Resolutions: All three approved unanimously (9-0).
• Council Initiatives: Councilmember Kennedy introduced an initiative to require department heads to reside in the city; it was deferred to a future work session. Councilmember Rupsis introduced an initiative to address aggressive driving and excessive vehicular noise; it was also deferred to a future work session. Councilmember Boyette raised the idea of a plaque in city hall honoring those who died during the COVID-19 pandemic; the matter was referred to the operations committee for consideration.