Staff recommends City Council hold a public hearing and adopt the proposed FY25 budget.

The attached budget resolution is consistent with the original proposed budget that was provided to Council and the Public on May 6th. Any amendments will need to be made to the proposed budget to be included in the final adopted FY25 budget.

On May 6th the proposed budget for FY25 was provided to the public and City Council. Staff presented to the whole City Council at 4 work sessions in May, and to the City Council Budget and Finance Committee over multiple meetings in March, April, and May. From those meetings staff has provided answers to many questions, as well as additional requested information. Additionally, the City Council has prepared amendments to the proposed budget, which have been attached. Proposed amendments may be introduced by a City Council Member for consideration at the budget hearing.  Over the past month, staff has identified two areas within the proposed budget that need correction or clarification.

Anti-Graffiti Fund
During the budget process, staff became aware of the fact that the total budget amounts proposed to Council did not include any budget authority for the funds in the Anti-Graffiti fund. Staff is requesting that City Council, as part of their budget process, amend the proposed budget to include $2,500 of budget authority in the Anti-Graffiti fund.

Planner II FTE
When staff presented the budget to City Council, it was indicated that the Planning Department would like an additional Planner II position, but it had not been included in the budget. After further examination, it has been determined that the proposed budget does include $111,739 for costs associated with an additional Planner II position. This position is funded 30% by the federal planning grant and 70% through Planning Fund revenues.  Over the long-term, this position will help reduce the scope and cost of consulting contracts for long-range planning projects.  However, this will not happen in this fiscal year because the person will need to be hired and brought up to speed on three very significant projects, including the Heights and West End neighborhood plans and the growth plan.

The attached budget resolution and corresponding FY25 budget document are submitted to the Billings City Council in compliance with Montana Code Annotated Title 7, Chapter 6, Part 40 "Local Government Budget Act".

 

City Council may:

• Approve the budget as recommended by Staff; or,
• Amend the budget; or,
• Delay final adoption until June 24th, 2024; or,
• Not Approve the budget and provide direction to staff.

The proposed budget will fund personnel, operations, maintenance, and capital expenditures for the next fiscal year. The total FY25 budget is $473,696,707. This budget assumes an increase in overall taxable value in the City of 1%. This budget will require mills to be at the cap authorized within the City Charter. It is assumed that the total mills levied will be 208.41, an increase of 1.84 mills over the prior year. However, final mill rates will not be adopted until after Certified Taxable Value is received from the Department of Revenue this fall. The property tax increase for the median home is estimated to be $7.66 per year.
 

Revenues	FY25 Proposed Budget
TAXES	$                    70,156,849
SPECIAL ASSESSMENTS	29,721,512
LICENSES & PERMITS	4,252,576
INTER-GOVERNMENTAL	69,475,721
CHARGES FOR SERVICE	159,777,726
FINES & FORFEITS	1,724,546
INVESTMENT EARNINGS	5,677,060
DONATIONS / CONTRIBUTIONS	602,990
INTERFUND TRANSFERS	37,825,619
DEBT PROCEEDS	43,442,500
MISCELLANEOUS	2,434,117
Total Budgeted Revenues	$                  425,091,216
Expenditures
Personal Services	$                  115,733,330
Operation and Maintenance	126,093,663
Capital Outlay	170,719,720
Debt Service	24,319,375
Transfers Out	36,830,619
Total Budgeted Expenses	$                  473,696,707

The budget is based upon estimated increases in rates, charges, and taxes. The impact to the typical homeowner is the following:

Median Home Property Taxes
	FY25	FY24	Change
General	$      308.09	$   304.34	$       3.75
Public Safety	474.63	474.63	-
Library	20.82	17.78	3.04
Transit	41.63	35.51	6.12
General Obligation	22.52	27.77	(5.25)
Median Home Property Tax	$      867.69	$   860.03	$       7.66
Street Maintenance District	211.11	198.04	13.07
Storm Sewer	-	59.60	(59.60)
Total Special Assessments	211.11	257.64	(46.53)
Total Taxes and Assessments	1,078.80	1,117.67	(38.87)
Average Home Monthly Utility Bill
	FY25	FY24	Change
Water	$ 47.71	$ 43.40	$ 4.31
Wastewater	30.85	29.04	1.81
Solid Waste	14.50	13.90	0.60
Storm Sewer	6.68	0.00	6.68
Monthly Utility Bill	$ 99.74	$ 86.34	$ 13.40