Billings City Council Business Meeting – September 8, 2025

The Billings City Council held a business meeting on September 8, 2025, covering multiple agenda items including proclamations, consent agenda, public hearings on lighting district assessments and encroachment fees, a tax increment financing extension request, and a council initiative on department director residency. Key decisions included approval of annual lighting assessments, a vote to increase encroachment fees, and a motion to postpone a TIF extension request to November 10, 2025. A council initiative to require department directors to live within city limits was referred to an October work session.

Consent Calendar

• Approved unanimously all items on the consent agenda as submitted by staff, including routine approvals, contracts, and airport leases.

Public Comments & Testimony

• Dan Brooks (Billings Chamber, 815 S 27th St): Expressed support for the Old Billings Hardware TIF extension (item 4), highlighting the positive benefits of infill development, increased downtown tax base, housing in a desirable area, and crime prevention through natural surveillance. He urged council support either that evening or in the near future.
• No public testimony was offered on the lighting district assessments or encroachment fees.

Discussion Items

• Council Courtesies & Proclamations:
  • JustServe.org proclamation: Recognized Billings as a JustServe city (first in Montana) and announced over 120 organizations and 88 volunteer projects locally.
  • Suicide Prevention Day (September 21, 2025): Proclamation read by Mayor Cole; Nancy (American Foundation for Suicide Prevention) presented statistics noting Montana has the highest suicide rate in the nation (over twice the national average) and remains in the top five. She highlighted the Out of the Darkness Walk at Will James Middle School on September 21 at 12:30 p.m. and promoted the national suicide prevention hotline (988).
  • National Voter Registration Day (September 16, 2025): Proclamation encouraging voter registration via myvoterpageMT.com.
• City Administrator Report (Kevin Ifflin):
  • Requested removal of item 4 (TIF extension) from tonight's agenda to November 10, later withdrawn by council vote.
  • Reported on stop sign compliance at 32nd North and 2nd/3rd Avenues: added flags, temporary stop-ahead signs; longer-term options include larger signs, lights, relocation, and increased police enforcement. No accidents since August 1.
  • Facilities Management RFP: Staff recommended not proceeding with the only proposal (50% higher than current costs) or a short-term consulting alternative; will continue assessing approaches.
  • Announced hearing on Colonial Apartments lawsuit in Judge Nisley's courtroom (Room 608, courthouse) on September 9 at 1:30 p.m.
• Item 2 – Special Improvement Lighting Maintenance District (SILMD) Assessments:
  • Staff (Jennifer) presented annual assessments for 65 city-owned and 123 other-owned districts, totaling $2.9 million (6.5% increase). 41 districts unchanged, 77 decrease, 79 increase. Increases driven by 25% projected electricity cost rise, partially offset by reserves.
  • Councilmember Kennedy expressed concern about numerous non-functioning streetlights on the South Side and questioned raising fees while lights were out. Staff confirmed they respond to complaints, and Kennedy pledged to provide a list of dark lights.
  • Public hearing opened and closed with no testimony.
  • Motion to approve the resolution passed 8-1 (Kennedy opposed).
• Item 3 – Encroachment Rental Fees:
  • Staff proposed a six-year adjustment (original five-year plan extended) to move tiered fees toward 50% of average assessed land value: tier one up 11 cents, tier two from $6.45 to $7.80 per square foot. Revenue estimated at $129,000. Language added to clarify proration across multiple properties.
  • Councilmember Nees moved to set fees at FY25 rates (no increase) to avoid burdening downtown businesses. Councilmember Owen seconded.
  • Councilmember Nice offered a substitute motion to approve staff recommendation, arguing the fees are minimal, generate revenue for right-of-way beautification, and discourage excessive private encroachment. Substitute motion passed 5-4 (Gullick, Nice, Cole, Boyett, Shaw in favor; Owen, Kennedy, Aspenlighter, Tidswell opposed).
• Item 4 – TIF Extension for Old Billings Hardware (2802 Montana Ave, up to $745,000) :
  • Staff (Wyeth) explained the 2022 approval included a condition to execute a development agreement within 365 days or upon completion of Phase II historic tax credits. That deadline passed unnoticed due to unclear documentation, requiring council action.
  • Developer Randy Hafer stated they were ready to execute but unaware of the 365-day condition; they have faced repeated financing delays due to post-COVID inflation, supply chain issues, and high interest rates. He noted Phase II tax credit application is pending with the National Park Service (expected approval in weeks) and that the TIF award is critical to the capital stack.
  • Councilmembers, especially Aspenlighter and Nees, raised concerns about tying up downtown TIF funds for three years without project completion, arguing the deal may be void and should go back through the Downtown Billings Partnership (DBP) board for fresh review.
  • Mamet Casey (DBP development director) clarified the board was ready to execute the agreement by June 30, 2025, and that the applicant’s delay is due to the discovered condition. The board supports the project and does not object to an extension, pending an executed development agreement.
  • Motion to postpone to November 10, 2025 (hard date) passed unanimously on a voice vote. Councilmember Aspenlighter amended the original motion to ensure a firm date. Councilmember Nice expressed the deal may be void and should be re-reviewed by DBP; Mamet agreed to put it on the September DBP agenda.
  • Final vote: All present councilmembers (except Gullick, who recused) voted to postpone the item to the November 10 business meeting.

Council Initiatives

• Department Director Residency Requirement:
  • Councilmember Kennedy introduced a policy to require all department directors to live within the Billings city limits, arguing it ensures accountability, loyalty, and a shared tax base. He stated the council has policy-making authority per the city charter.
  • Mayor Cole and others opposed, citing potential harm to recruitment/retention, morale, and staff time; they noted no other large Montana city imposes such a requirement and suggested a waiver process might be needed.
  • Councilmember Owen supported moving forward for discussion, noting that a waiver provision could address exceptional circumstances and that the policy could serve as a “canary in the coal mine” to gauge housing affordability and safety perceptions.
  • Motion to refer to an October work session (council discussion only, no staff presentation) passed 5-4 (Nees, Owen, Kennedy, Tidswell, Boyett in favor; Gullick, Cole, Aspenlighter, Shaw opposed).

Key Outcomes

• SILMD Assessments (Item 2): Approved with a 6.5% overall increase; one councilmember (Kennedy) opposed due to unresolved streetlight outages.
• Encroachment Fees (Item 3): Approved with increase as recommended by staff, over a motion to keep rates flat. Final vote 5-4.
• TIF Extension (Item 4): Postponed to the November 10, 2025 business meeting. The Downtown Billings Partnership will review the application in September.
• Department Director Residency: Scheduled for an October work session; no staff presentation, council discussion only.