Billings City Council Meeting: June 22, 2026

The Billings City Council held a regular business meeting on June 22, 2026. The meeting covered a wide range of topics including proclamations, consent agenda items, public hearings on land use and zoning, assessments for business improvement districts, wholesale wastewater rates, right-of-way fees, street light districts, annexations, and zone changes. Key decisions included approval of the Tourism Business Improvement District (T-BID) assessment, the Downtown Business Improvement District (BID) assessment, and an annexation with a postponed discussion on road improvements.

Consent Calendar

• Approved consent agenda items (except 1A1, 1D, and 1H) by a vote of 10-1, with Councilmember Shaw absent.

Public Comments & Testimony

• Jeff Kettleson (5th Ward): Expressed strong opposition to the Urban Renewal District agreements (agenda item 1D), arguing that TIF dollars should go to children's education and that the investments have not improved low-income census tracts. He cited the Downtown TIF district and the East Bird District as examples of poor return on investment.
• Jeff Kettleson (5th Ward): Opposed the Downtown BID assessment, stating it uses taxpayer money for services that should be provided by the city. He argued the $600,000 could instead fund three new police officers.
• Paul Clark (South Side Triangle): Criticized rising water and wastewater bills, questioned the need for additional fees, and urged the council to find different solutions.
• Paul Clark (South Side Triangle): Questioned the city’s oversight of right-of-way usage, particularly by fiber optic companies, and suggested that those companies should be taxed more heavily.
• Malcolm Long (Vice President/General Manager, Knife River Billings): During the annexation public hearing, he stated that Knife River is only annexing the north side of the property and rejected the idea of being coerced into building improvements on the south side as a condition of the annexation. He offered to work with the city when the city begins its own road improvements on Hesper Road.

Discussion Items

• Separated Consent Agenda Items:

  • Item 1H (24th Street Underpass Study): Councilmember Aspenliner separated the item to vote against it, fearing it would lead to future CIP projects without intent to execute. Councilmember Kennedy also opposed, citing the project’s history of repeated discussion. Councilmember Neese supported the study, noting it provides options and could allow minor improvements. Staff clarified that the study is already in the long-range CIP and that a no vote would remove the project entirely. The item passed 7-3, with Aspenliner, O’Donnell, and Kennedy voting no.
  • Item 1A1 (ARC Advisory Board Appointments): Councilmember Kennedy separated the item to ensure a board seat from Ward 3, noting the current at-large positions lacked representation from that ward. The council approved nominees 1, 2, 3, 5, and 6, leaving seat 4 vacant for a future Ward 3 appointee. Staff noted that board appointments are ongoing despite some public concern.
  • Item 1D (Urban Renewal District Agreements): Councilmember Neese moved to approve the contracts with a one-year term (ending June 30, 2027) removing the automatic renewal clause. The motion passed, with council members supporting annual reviews of TIF district performance.

• Item 2 (Land Use Contrary to Zoning for Signage at ARC): The council discussed a variance for larger signage at the new sports complex. Several members, including Councilmembers Lindley and Aspenliner, suggested a review of the city’s sign code, as this was the second variance request for a large public facility. Staff indicated a sign code review could be conducted in the fall or winter through the Planning Commission. No public comment was received.

• Item 3 (Tourism Business Improvement District Assessment FY2027): The council approved the resolution with no public comment and no opposition.

• Item 4 (Downtown Business Improvement District Assessment FY2027): Some council members (Kennedy, Neese, Aspenliner) expressed concerns about the city’s participation, arguing that $50,000+ paid annually by the city could be better spent on core services. Councilmember O’Donnell questioned what would happen if the city did not participate. Staff noted that the city pays as a property owner, and if it stopped, services like snow removal and security would fall to other property owners or the city. The resolution passed 7-3, with Kennedy, Neese, and Aspenliner voting no.

• Item 5 (Wholesale Wastewater Rates FY2027): Staff presented a slight overall increase of about $14,000, with rates based on actual usage and strength of wastewater. Councilmember Neese questioned Lockwood’s costs, arguing they facilitate growth outside the city. Others noted the historical context of the Lockwood agreement and the need for consistency. The resolution passed with Councilmember Neese voting no.

• Item 6 (Right-of-Way Fees FY2027): Staff explained that the fees cover inspection and administration for projects in the right-of-way. Councilmember Boyette confirmed that fees charged to fiber-optic companies cover the cost of an additional inspector. The resolution passed unanimously.

• Item 7A (SID 1429 – Clearwater Estate & 44 West Subdivision Street Lights): Staff presented a street light district covering about 71 lights for 128 parcels, at a total cost of $1.1 million. Councilmember Neese argued that developers should have more options (e.g., HOA-managed lights) to reduce costs. Councilmember Boyette supported the district, citing safety benefits. The motion passed 8-2, with Kennedy and Neese voting no.

• Item 7B (Bid Award to Millennium Electric for SID 1429): The bid was approved 8-2, with Kennedy and Neese voting no.

• Item 8 (Zone Change 1084 – Hunters Point Subdivision): Staff recommended approval for a change from Mixed Residential 3 to Corridor Mixed Use 1. The developer noted interest from a financial institution. The council praised the infill development. The resolution passed unanimously.

• Items 9A and 9B (Annexation 2602 and Zone Change 1079): These items involved a 144-acre property at Shiloh and Hesper Roads. The main discussion centered on a 350-foot section of Hesper Road that would remain unimproved. Councilmembers Neese and Aspenliner proposed requiring the developer (Knife River) to build the full road section, given they own both sides. Knife River’s representative objected and offered to coordinate with the city’s future road project. The council approved the annexation and zone change but postponed the annexation agreement to the July 13, 2026 meeting to finalize wording requiring the south side improvements to be completed concurrent with Phase 2 development or by 2029, whichever comes first.

• Item 9C (Annexation Agreement with JTL Group): Discussion followed the same lines as 9A/9B. The council voted to postpone the agreement to the July 13, 2026 meeting.

• Item 9D (First Reading Ordinance Expanding Ward 5 Boundaries): The ordinance passed unanimously with no public comment.

Key Outcomes

• Approved: Consent agenda (with three separations), 24th Street Underpass Study (7-3), ARC Advisory Board appointments (with one seat reserved), Urban Renewal District agreements with one-year term, Tourism BID assessment, Downtown BID assessment (7-3), Wholesale Wastewater Rates (with one no vote), Right-of-Way Fees (unanimous), SID 1429 street light district and bid award (8-2), Zone Change 1084 (unanimous), Annexation 2602 and Zone Change 1079 (both approved; annexation agreement and boundary ordinance postponed).
• Postponed: Annexation Agreement (JTL Group) to July 13, 2026, for final wording on Hesper Road improvements.
• Directives: Staff will bring back a finalized annexation agreement incorporating council’s intent for road improvements. Councilmember Boyette announced a future initiative to consolidate three TIF statutory boards into one.
• Proclamation: July 6-11, 2026, was proclaimed Drug Abuse and Violence Prevention Week, with the annual march scheduled for July 11th.
• Council Reports: The legislative committee met with 17 proposals; next meeting June 24. The city administrator job description was sent to council for review.