The City Council is being asked to approve an agreement for the renewal of a labor contract between the Montana Federation of Public Employees (MFPE), Billings Police Officers' Unit and the City of Billings. This negotiated agreement will replace the one that was in effect from July 1, 2021, through June 30, 2025. Staff recommends City Council approve the proposed collective bargaining agreement with the MFPE - Billings Police Officers.

The MFPE represents sworn officers of the Billings Police Department. The current CBA expired June 30, 2025. City labor negotiators and MFPE representatives reached a tentative agreement that was ratified by the union. The agreement continues to cover all terms of employment including wages, hours, benefits, and working conditions.

KEY CHANGES FROM THE 2021–2025 AGREEMENT

1. Background Investigations
     Clarified language:
     Sworn position investigations must be conducted by trained bargaining unit members.
     The City may outsource background checks only for non-sworn positions.

2. Overtime: Clarifies that for overtime eligibility only holiday hours taken in the workweek count as “hours worked” (removing prior inclusion of sick, vacation, and compensatory time)

3. Court Time
     Clarified union member and court time 
     Updated notification process:
          Officers must now check their work email by 2000 hrs the day prior to a court appearance for potential cancellations (formerly via a phone line).
           If no cancellation is sent and the officer appears, they are owed 4 hrs of overtime.

4. Clarified Call Out Definition
     Now explicitly defines a call out as a return to duty more than 1.5 hours before a regular shift in response to unplanned or urgent situations initiated by command staff.

5. Field Training Officer Pay updated:
          Formerly: 25 hrs comp + 4 hrs overtime/month (Phases 1–3)
          Now: 8 hrs straight comp/week during Phases 1-3; 7 hrs/week during Phase 4.

6. Secondary Employment/Extra Duty & Officer Wellness section added.

7. Union/Management Committee: Expands and formalizes the committee as a Labor-Management Relations Committee with monthly meetings, clear membership structure, agenda process, and minute-taking responsibilities—shifting its role from informal consultation to a structured forum for communication and issue resolution (while explicitly not replacing the grievance or bargaining processes).

8. Compensation & Pay Structure
     New wage scale effective at the closest pay period following union ratification and city council approval (Attachment A of the agreement).
         
          FY26 (Beginning anticipated if approved on August 4, 2025):
          4% cost-of-living adjustment (COLA) will be applied to officers at step 3 and above on the wage scale.
          All officers will receive a one-time, lump-sum payment of $3,000.

          FY27 (Beginning July 1, 2026):
          4.5% cost-of-living adjustment will be applied to all officers.

          FY28 (Beginning July 1, 2027):
          3.5% cost-of-living adjustment will be applied to all officers

6. Editorial Updates
     Cleaned and clarified procedural and operational language throughout, such as:
     Grievance and arbitration process timelines
     Shift preferences, vacation bidding, and use of leave during court duty

MFPE – Local 7769 Membership - Represented sworn officers directly affected by the CBA provisions.
Billings Police Department Administration - Responsible for implementing CBA provisions, overseeing staffing, scheduling, and performance evaluations.
City of Billings Human Resources Department - Led negotiations and ensures compliance with labor law and contract administration.
City Legal and Finance Departments - Reviewed terms for legal sufficiency and fiscal impact.
City Administrator's Office - Oversaw strategy and alignment with City-wide personnel goals.
Billings Residents & General Public - Indirect stakeholders relying on a stable, well-supported, and accountable police force.

City Council may:

• Approve the Agreement as negotiated and ratified by MFPE membership.
  Reject the Agreement, which may lead to mediation or arbitration proceedings as required by state labor law.

The negotiated wage increases and other compensation elements have been evaluated by the Finance Department and will be incorporated into the FY26–FY28 General Fund and Police Department budget projections. The proposed agreement includes cost-of-living and market-adjusted wage increases.

This contract includes an 18% average annual increase in base salary over the term of the contract, including cost of living adjustments and step increases. The FY26 budget included an estimated increase in wages. However, this agreement provides for a one-time lump sum payment in lieu of retroactive pay, which will be funded with vacancy savings from the prior year. This use of vacancy savings from the prior year was not budgeted, and a budget amendment in the amount of approximately $400,000 may be needed later in the year.