Staff recommends the City Council hold a public hearing and approve first reading of the ordinance amending Billings, Montana City Code (BMCC), Article 22-800, Storm Sewers.

BMCC, Article 22-800 establishes rate methodology, billing, and collection procedures for storm sewer fees.  The primary purpose of the ordinance amendment is to change from billing the storm fee as an assessment on the annual property tax statement to billing the fee on the monthly utility bill. Staff previously discussed the change with the Council Budget and Finance Committee on December 13, 2023, and at a Council work session on January 2, 2024.  The majority of Council were in favor of the change to the utility bill, but requested staff engage in more public outreach and gather information regarding any effects on residents' income taxes before coming back to Council for a vote on amending the Ordinance.  The presentation will review the benefits of the proposed change, provide staff analysis of income tax effects of the change, and discuss public outreach efforts.  Additionally, amendments are proposed to delete obsolete language in BMCC, Article 22-800, as well as minor amendments to the verbiage. Other proposed amendments are:

• Revise the title of the Article,
• Revise the rate methodology from using zoning and parcel square footage to be set by Council resolution and in accord with MCA 7-13-4304, and
• Revise the collection procedures for delinquent storm fee bills. 

City Council may:

• Approve the amendment to BMCC, Article 22-800 Storm Sewers; or,
• Not approve the amendment.  If not approved, storm fees will continue to be assessed on the annual property tax statement.

The City is in the process of converting both its tax/assessment software and its utility billing software.  Thus, a software conversion will be required regardless of how the storm fee is billed and there is no additional fiscal effect as a result of this amendment to city code.