Billings City Council Regular Business Meeting - October 26, 2026

Mayor Mike Nelson called the Billings City Council regular business meeting to order at 5:30 p.m. on October 26, 2026. Councilmembers Kennedy and Aspen Leiter were absent. The council approved the consent calendar, adopted new stormwater system development fees after a public hearing, approved a downtown tax increment financing reimbursement, and heard courtesies, proclamations, and public testimony.

Courtesies, Proclamations, and Reports

• Megan Gibson, Yellowstone County Behavioral Health Coalition coordinator, reported on the coalition's strategic plan and Situation Table. She said the SAMHSA Mobile Crisis Grant began September 30, an implementation plan is due January 30, 2027, and mobile crisis services must be operational by March 30, 2027. The team will include a clinician through the Community Crisis Center and an EMT through the fire department.
• Police presented a Citizens Hero Award to Dustin Harbok for his actions following a motor vehicle collision on July 14, 2026.
• Mayor Nelson proclaimed November 1, 2026 as Extra Mile Day, November 2026 as Epilepsy Awareness Month, and November 6, 2026 as Adaptive Performance Center Day. Representatives from the Epilepsy Foundation Montana and the Adaptive Performance Center spoke in support.
• Councilmember Pittman reported that the legislative committee met with federal lobbyists. Councilmember Nees reported that the budget committee discussed Wilson Park, Dealer Park, the CIP, and upcoming budget amendments. The Interim City Administrator noted that consent item 1P did not need a resolution at this time, the TIF application had been emailed to council, and city offices would be closed November 3, 2026 for Election Day.

Consent Calendar

• Council approved the minutes from October 12, 2026.
• Council approved the consent agenda as submitted and corrected by staff. Recognized donations included $3,500 from the Billings Public Library Foundation, $13,500 from the Friends of the Library, and a $2,500 grant from the Teen Science Cafe Network.
• Item 1P was corrected to reflect that no resolution is needed at this time; only action to initiate the Future Land Use Map amendment was required.
• Item 1K, a $164,000 Justice Assistance Grant split between the Billings Police Department and the Yellowstone County Sheriff's Office, drew significant public opposition. Staff said the application requests equipment including interior patrol SUV equipment, less lethal equipment and munitions, ballistic protective equipment, inventory and equipment management software, and uniforms for bike patrol, honor guard, and ceremonial assignments. Staff and the city attorney said the city would be limited to the requested uses unless the grant were formally changed. The item remained on the consent agenda, and the consent agenda was approved by voice vote. Audience outbursts after the vote led the mayor to issue a second warning and threaten removal if they continued.

Public Comments & Testimony

• Before the consent vote, Jeffrey Kettleson opposed agenda item 3, the downtown TIF assistance, calling the downtown urban renewal district a "parasite" and claiming it had given away roughly $43 million of school district money over 16 years while the district's taxable base grew from about $7 million to about $7.5 million.
• Lane Dorsey, Andrea Story, Ellis Tillery, Andrea Wolfe, Daylight Horse Capture, and Art Alvarado, several speaking with or in support of the Billings Alliance for Immigrant Rights, urged the council to remove item 1K from the consent agenda and vote against it. They argued the grant could support ICE and Border Patrol collaboration, cited Department of Justice grant language, and described local incidents involving immigration enforcement. Art Alvarado testified that he and his 90-year-old mother were detained at their home and said he is a U.S. Marine Corps veteran.
• During the stormwater system development fee public hearing, Jeffrey Kettleson praised the council for the proposed fee and urged future impact fees for police and fire services. Ellis Tillery thanked the council for holding a separate hearing on the stormwater item.
• During non-agenda public comment, Bailey Desper requested that the council schedule a future agenda item dedicated to affordable and income-based housing, with input from the local continuum of care and the upcoming point-in-time count. Ellis Tillery asked the council to restrict federal grant funds from being used to cooperate with immigration enforcement agencies. Jennifer Strong supported item 1K and argued for border enforcement. Mindy Nelson spoke about her union and postal service background and criticized the council. Ellis Tillery also delivered a lengthy statement condemning the council's approval of item 1K and its response to public opposition.

Discussion Items

Stormwater System Development Fees - Agenda Item 2

• Staff presented the proposed stormwater system development fees. The fee schedule includes a base fee of $967 per equivalent residential unit, meaning a single-family residence would pay $967; a duplex would pay $1,450; commercial properties would pay $513 per ERU if connected to the stormwater system or $329 per ERU if not physically connected, based on impervious square footage and a service demand credit.
• Staff estimated the fees would generate $800,000 to $950,000 in annual revenue, depending on development activity. The fees would take effect January 1, 2027. Accessory dwelling units are exempt.
• The Impact Fee Advisory Committee and Budget and Finance Committee had recommended adoption, and the council had previously advanced the proposal from a work session.
• Councilmember Nees moved to approve the resolution adopting the stormwater system development fees as recommended by staff. Councilmember Shaw seconded. The motion carried by voice vote.

Downtown TIF Assistance for 213 North Broadway - Agenda Item 3

• Staff clarified a discrepancy in the agenda title, saying the recommended amount before the council was $585,092. The applicant, Lee Humphrey, presented plans to renovate the building for Edward Jones and said the downtown project cost about $3.5 million compared with roughly $2 million for a similar project elsewhere, which he said justified the TIF assistance.
• The proposed reimbursement was not to exceed $585,092, scheduled as one payment in fiscal year 2028, with a development agreement to be executed within 180 business days. Staff said the TIFF cash forecast showed capacity for the payout.
• Councilmember O'Donnell expressed concern that the TIF amount was about one-sixth of the total project and questioned the district's return on investment. The Downtown Billings Partnership development director said the district continues to perform positively and that its taxable value growth compares favorably with the rest of the city.
• Councilmember Nees said he would oppose the request because he wants downtown TIFF priorities to focus on housing rather than commercial projects.
• Councilmember Shaw moved to conditionally approve the TIF assistance up to $585,092 as recommended by the Downtown Urban Renewal District Advisory Committee. Councilmember Lindley seconded. The motion passed by voice vote, with Councilmembers O'Donnell and Nees voting no.

Key Outcomes

• Approved the October 12, 2026 meeting minutes.
• Approved the consent agenda, including the contested Justice Assistance Grant item 1K.
• Adopted the stormwater system development fee resolution.
• Approved downtown TIF assistance for LDH Properties LLC at 213 North Broadway up to $585,092.
• Heard non-agenda public comment without council response, then adjourned.