The City Annexation Committee recommends the City Council hear a presentation on proposed changes to the Limits of Annexation Map. Staff is expecting Council direction to staff to prepare amendments to the map to bring back at a future business meeting for action.
 

To provide guidance on Annexation Policy and Map amendments, an Annexation Committee, consisting of representatives from Administration, Airport, Fire, Parks, Planning, Police, Public Works, and Transit advises the City Council. The Committee meets to review the Annexation Policy, discuss revisions to the map, and develop strategies for long-term growth management and service delivery. The Committee solicits requests from private property owners and considers any City-initiated amendments to the Annexation Map each winter/spring with the City CIP review/approval.

The Committee is recommending changes to the map in four areas as described in the Background section of this memo and shown on the attached draft Limits of Annexation Map. One of the proposed changes is based on a request from a private property owner at the southwest corner of the intersection of Hesper Road and 48th Street West, just west of the City’s new water reservoir and water treatment plant facilities. The other three proposed map amendments are City initiated based on service provision, future annexation potential, and recent discussions at Council regarding annexation of property along Jellison Road and the City’s landfill.

Staff is asking for Council direction at this Work Session on these four map amendments to bring formal recommendations to Council at a future business meeting.
 

To provide guidance on Annexation Policy and Map amendments, an Annexation Committee, consisting of representatives from Administration, Airport, Fire, Parks, Planning, Police, Public Works, and Transit advises the City Council. The Committee meets to review the Annexation Policy, discuss revisions to the map, and develop strategies for long-term growth management and service delivery. The Committee solicits requests from private property owners and considers any City-initiated amendments to the Annexation Map each winter/spring with the City CIP review/approval.

The Committee is recommending changes to the map in four areas as described below and shown on the attached draft Limits of Annexation Map. One of the proposed changes is based on a request from a private property owner at the southeast corner of the intersection of Hesper Road and 48th Street West, just west of the City’s new water reservoir and water treatment plant facilities. The other three proposed map amendments are City initiated based on service provision, future annexation potential, and recent discussions at Council regarding annexation of property along Jellison Road and the City’s landfill.

The City Council first adopted an Annexation Policy and accompanying Map 24 years ago in May 2002 and the policy and map were most recently amended in 2023. The original adoption of the Policy was driven by annexations in the early 2000s of areas like Rehberg Ranch and Briarwood that were placing significant service demands on City services and the Council realized it needed a formal process and criteria to make future annexation decisions. To provide guidance on Annexation Policy and Map amendments, an Annexation Committee was formed to advise the City Council. The current adopted policy established three limits of annexation areas. The City Annexation Petition Area (Zone 1 - Green) defines an area where annexation petitions may be supported in the short term. The Long Range Area (Zone 2 -Yellow) covers areas where City services may be extended but would require additional analysis to support those services. The County Developed Area (Zone 3 – Red) identifies areas within the Limits of Annexation Map that are fully developed in the County and not likely to annex at this time unless water and sewer systems in those areas are compromised.

The City of Billings has annexed about 6.5 square miles since 2004 (39 to 45.6 sq. mi.) when the Policy and Limits of Annexation Map were further refined to be similar to what they are today. The community's growth over this period has challenged the City's ability to balance serving new areas and maintaining a high level of service to present citizens. Discussions and funding efforts centered on the need to increase public safety services has been a core part of these service issues for many years. These challenges have meant the Committee continues to be cautious in recommending any expansion of the annexation areas. However, ensuring proper municipal infrastructure is positioned to serve City expansion long-term and that low-density County development does not occur in the way of these efforts are also critical elements in the community's fiscal and service sustainability. In this case, specific new development projects or potential development areas in, and on the edge of, the Long Range Urban Planning Area that the City wants to ensure are developed in the City to City standards for long-term continuity of services supports several of the current proposed map amendments.

Zone 1 Recommendations: The Annexation Committee is presenting two recommendations to City Council to expand the City Annexation Petition Area (Zone 1 – Green Area) (See draft map attached). These areas are being recommended based on a private property owner request and submittal of an Urban Planning Study subjected to City Department analysis and evaluation, recent Council direction and action to consider provision of municipal services along Jellison Road, including the City's Landfill, where urban development on City services and to City standards is desired, and based on long-range infrastructure and land use planning evaluation.

Jellison Road between South Billings Boulevard and the City of Billings Landfill – Approximately 959 acres with Landfill - Add area to Zone 1 (Green Area)
This property is about 959 acres located on both sides of Jellison Road between South Billings Boulevard and the City Landfill access, including the Landfill property.  Several properties in this area were the focus of a Council Work Session on March 2 regarding possible annexation or provision of water service to the area and to the Billings Landfill (See March 2 Work Session Memos by Engineering Division attached). Council direction in those recent discussions indicated the Council wanted to consider the properties for annexation as the only path to service provision. Staff has proposed amending the map in this area to include the private properties and the City Landfill in Zone 1 for future annexation.

The properties in the area of the map amendment include:

• The Meadowlark Mobile Home Park, which has formally requested connection to the City’s water system to address ongoing water quality concerns.
• The Blain property, a 2-acre site housing the Yellowstone Valley Animal Shelter, which has requested connection to the existing 6-inch sanitary sewer force main in Jellison Road.
• The City of Billings Landfill, which is owned by the City as a critical infrastructure element of City and regional services, and could benefit from having water service extended to it along Jellison Road.
• A variety of other commercial and residential properties along Jellison Road that could at some time request annexation if the area were included in Zone 1 of the Limits of Annexation Map and participate in the water and sewer utilities serving the area.

As was outlined at the March 2 City Council Work Session, all of these properties are currently located outside the City’s designated annexation areas, and any opportunity for annexation at this time would require preparation of an urban planning study and submission of an annexation petition for Council consideration.

-Water and Sewer Utilities: There is an existing 6-inch sanitary sewer force main that serves the Meadowlark Mobile Home Park in Jellison Road that connects to the City sewer system in Blue Creek Road. This sewer main could serve additional properties (including the Blain's) in the area to some level before needing to be upgraded to a larger system. The closest City water system infrastructure is in Blue Creek Road where it serves the Briarwood Neighborhood to the south and the Cedar Park Neighborhood to the east along Blue Creek Road.

The Meadowlark Mobile Home Park has a water treatment plant that was placed into service in either 2009 or 2010. However, the effectiveness of the plant has diminished. The proposed water main extension to Meadowlark Mobile Home Park would be fully funded through the Montana DEQ Emerging Contaminant Grant, including design, construction, staff time, and the City’s water system development fee, resulting in no capital cost to the City. The grant would fund the construction of a water main down Jellison Road to Blue Creek Road where it will connect to the City of Billings' water distribution system. The City would act as the grant recipient in order to complete the project, as required by DEQ funding requirements. If constructed, the new water main would have the benefit of providing fire protection at the landfill entrance and, in the future, could be looped through the landfill to provide redundancy to the landfill water system.

-Transportation Infrastructure: Jellison Road is classified as a Minor Arterial on the MPO's Functional Classification Map (attached). The road is currently not built to any County or City arterial standard. If property along Jellison Road were annexed into the City, State Law requires the City to annex the adjacent right-of-way of Jellison Road. It is expected that ongoing City and County maintenance coordination will continue for the foreseeable future. It is anticipated that improvement to Jellison Road in the future would be funded by a combination of City infrastructure funding, developer contributions, a Special Improvement District, or some combination of these sources. There is no expectation of a significant increase in traffic in the near future on Jellison Road, aside from any further increase in traffic to the City Landfill.

If the Meadowlark Manufactured Home Park were annexed into the City, improvements to its internal street network and connectivity of the network may be required to address emergency access and circulation. Assessment of the improvements would be prepared in an Annexation Agreement between the City and the Meadowlark Manufactured Home Park at the time of annexation petition consideration.

-Public Safety Services: The Police Department and Fire Department have concerns with annexation of the Meadowlark Manufactured Home Park based on call volume and lack of fire hydrants within the court. Emergency services have indicated there were a high number of calls for service to this area in 2025 (370 calls). Emergency services do not anticipate a large volume of calls for service from the Yellowstone Valley Animal Shelter property (Blain's). This information was shared with the City Council at its March 2 Work Session (Memos attached). The subject property is not within the Billings Urban Fire Service Area (BUFSA) and is instead in the Blue Creek Volunteer Fire Department (Blue Creek VFD) response area. This means that bringing this property into the City would bring an area not currently serviced by the City Fire Department into its service area.

Other property in this area, if it were included in the Zone 1 area of the Limits of Annexation Map, would be assessed at time of annexation petition review. However, installation of City standard fire hydrants along Jellison Road and in developments along the road would improve the safety of the area from a fire-fighting perspective. And improvements in street connectivity and access would benefit all law enforcement and emergency services.

-Parks, Transit and other Services: Provision of park and open space development will occur as annexation, zoning and subdivision requirements are applied if property annexes and develops further. Given the existing development of the area, it is anticipated that some parks and trail corridors would be provided that may utilize the Yellowstone River Corridor. Sidewalks adjacent to Jellison Road may be added in the future with further corridor improvements to provide connectivity throughout the area.

MET Transit is not expected to serve this area in the foreseeable future with fixed route service. The location is too remote from the main area of the City and current residential density make transit unfeasible at this time. However, as paratransit service currently operates anywhere within City limits, the anticipated primary service areas present a number of infrastructure challenges such as narrow roads, unpaved roads, lack of sidewalk, and other issues that would limit paratransit vehicle ability to access client locations.

Recommendation: The Annexation Committee recommends the Jellison Road area between South Billings Boulevard and the City of Billings Landfill be included in the City Annexation Petition Area based on the opportunity to make utility improvements through the State DEQ grant, the ability to require public safety and other improvements to City standard through annexation agreements, and the ability to ensure urban development to City standards over time.

Property at Southeast Corner of Hesper and 48th Street West – Approximately 85 acres - Add area to Zone 1 (Green Area) Petition Area
An Urban Planning Study was prepared in support of a proposed Annexation Map Amendment request for a 52-acre portion of an 85-acre parent parcel located at the southeast corner of the intersection of 48th Street West and Hesper Road. The parent parcel was recently divided through an agricultural exemption recorded with Yellowstone County in accordance with Montana subdivision law.  This exemption created the 52-acre tract as a legally distinct parcel for this map amendment request and potential future annexation.

The property is owned by Jason Bernhardt, and the proposed development will be undertaken by John Mullen.  The subject property lies within the Zone 2 Long Range Area of the Limits of Annexation Map as designated by the City of Billings 2023 Limits of Annexation Map and is adjacent to the City's West End Reservoir and West End Water Plant development. This area is identified as a location for future City development due to its proximity to expanding infrastructure, arterial road networks, and employment centers along the Shiloh Road Corridor. The proposed development is envisioned as a mixed-residential planned neighborhood development that balances housing, neighborhood-scale commercial, hospitality, and employment opportunities. The layout as proposed for the UPS includes:
• NX-1 & N1: 138 residential units = 25 four-plex units, and 19 duplex units.
• Hotel site: one 60,000-square-foot building.
• NMU: Commercial uses - two story mixed-use buildings with ground-floor restaurants, retail space, and offices with 4 to 8-plex residential units on the second story.
• Parks and open space: internal green spaces and pedestrian connections to support neighborhood livability.

While the Urban Planning Study outlines general land use categories and conceptual lot layout, the specific building form, height, and density will be refined during the subdivision and site development review process if the Limits of Annexation Map is amended and the property moves ahead with the annexation, subdivision and zoning processes. Final design elements such as multi-tenant configurations and parking layout will be coordinated with City staff to ensure compliance with zoning district regulations.

-Water and Sewer Utilities: Sanitary sewer service for the 52-acre area will be provided by the City of Billings public sewer system. The development will connect to existing infrastructure located within the Hesper Road right-of-way.  The nearest point of connection is sanitary sewer that runs directly along the frontage of the subject property and supports recent infrastructure improvements associated with the adjacent City of Billings Water Treatment Facility to the east. As-built alignments, system capacity, and any future expansion plans will be confirmed through coordination with the City of Billings Engineering Division during the engineering design phases. The development is anticipated to be served by a gravity sewer system, with no lift stations proposed at this time (pending site grading and downstream capacity analysis).

Water service is available just east of the project site on Hesper Road and is located within pressure zone 3.  A stub was provided with the water treatment plant project and is ready for extension west and can serve the proposed area.  This water line can be extended at development cost with any oversizing compensation paid by the City.
The water service plan for the site will be designed to:
• Accommodate the projected domestic demand for a future neighborhood mixed-use subdivision
• Provide adequate fire protection via hydrant spacing and flow capacity in accordance with City Fire Code
• Enable looped connections where feasible to ensure pressure stability and redundancy

-Transportation Infrastructure: The subject property is located at the intersection of two principal arterial streets, 48th Street West and Hesper Road, placing it within a key transitional area between developed urban neighborhoods and the future growth corridor of 48th Street West in West Billings. The property has direct frontage along both Hesper Road and 48th Street West, supporting the implementation of an internal gridded street network that aligns with connectivity goals.

The proposed neighborhood development will incorporate a public street network, with future connection points to both Hesper Road and 48th Street West. These connections will support circulation efficiency, emergency access, and compliance with the 2024 City of Billings Subdivision Regulations. Street Classification and Design will be coordinated with the City Engineering Division to ensure compliance with local standards for right-of-way widths, sidewalk placement, boulevard design, and utility corridors. Internal Roadways will be designed to accommodate local vehicle traffic, pedestrian movement, and potential future transit stops. The project will also evaluate the feasibility of incorporating a minor collector loop to improve connectivity. Pedestrian Infrastructure will include boulevard sidewalks and potential trail linkages to the City's West End Reservoir trail system.

-Public Safety Services: The proposed development would fall under the jurisdiction of the Billings Police Department (BPD) after annexation. The BPD provides 24-hour service across approximately 41 square miles of the city, divided into four zones and nine patrol beats. The BPD has a budgeted strength of 177 officers but often operates slightly under this total due to retirements. While specific beat assignments for the annexation area have not yet been determined, BPD coverage for the site will ultimately depend on final land use intensity, zoning, and the City’s overall patrol deployment strategy.

The proposed development would fall under the jurisdiction of the Billings Fire Department (BFD) if annexed. The property currently falls under the Billings Urban Fire Service Area (BUFSA) in the County, so the City of Billings would continue to provide service with the property developed at urban standards and densities. Fire Station 7, located at 1501 54th Street West, is the closest station to the proposed development. Station 7 covers over 30 square miles, including the West End of Billings and the western BUFSA area. Additionally, Fire Station 5, situated at 605 South 24th Street West, serves the broader West End and houses the BFD's Hazardous Materials Team. The department operates seven fire stations citywide, providing 24-hour coverage. However, recent discussions by the Billings City Council have highlighted budgetary constraints affecting emergency services. To address this, the BFD has conceptually proposed a future Station 9, anticipated to be sited near the new water treatment plant to serve the expanding west Billings area. This station has not yet been constructed, and its timeline remains dependent on future capital planning.

-Parks, Transit and other Services: In accordance with Section 6.4.3 of the City of Billings Subdivision Regulations, residential subdivisions are required to dedicate up to 11% of the gross area for parkland or provide equivalent cash-in-lieu contributions. For this property, the required Parkland Dedication could be 5.72 acres. The final parkland strategy—whether via on-site dedication or cash-in-lieu—will be coordinated with the Parks, Recreation, and Public Lands Department during subdivision review if the property is annexed. Given the property location just west of the City's West End Water Reservoir, pedestrian and trail infrastructure will include trail linkages to the West End Reservoir trail system.

The proposed development will not be served by MET Transit fixed-route in the near future, but it is between 1.5 and 1.3 miles of existing MET Transit routes along Shiloh Road and King Avenue West, and Shiloh Road and Zoo Drive; if annexed, the area would be eligible for paratransit services.

Recommendation: The Annexation Committee recommends this property at the Southeast Corner of Hesper and 48th Street West be included in the City Annexation Petition Area (Zone 1) based on the opportunity to have property immediately adjacent to the City's West End Reservoir and the 48th Street West Corridor developed in the City and development to City standards over time.

Zone 2 Recommendation: The Annexation Committee is presenting one recommendation to City Council to expand the City Annexation Petition Area (Zone 2 – Yellow Area) (See draft map attached). This areas are being recommended based on City Department analysis and evaluation where urban development on City services and to City standards is desired, and based on long-range infrastructure and land use planning evaluation.

Billings Bypass and 5 Mile Road Intersection – Approximately 240 acres - Add area to Zone 3 – Long Range Area (Yellow)
This property is about 240 acres around the intersection of the Billings Bypass after it crosses the Yellowstone River and 5 Mile Road that runs north from the intersection to Highway 312 up to Dover Lane. This area has been the focus of analysis in the MPO's Billings Bypass Corridor Study in 2023 and the currently developing Billings Heights Neighborhood Plan. The expectation is with the Bypass connecting Billings Heights and Lockwood, the current analysis of consolidation of the County Water District of Billings Heights and the City for water services, the City’s future analysis of providing sewer in this area, and the future development in the Heights area of housing and commercial services, this area should be included in the Long Range Area for evaluation for future annexation to the City.

-Water and Sewer Utilities: This area is expected to be served by the County Water District of Billings Heights and could be served in the future by City sewer given the proximity of these utilities to the east of this area. There would need to be City investment in service extensions combined with coordination of developer service extensions. 

-Transportation Infrastructure: There are multiple existing opportunities for transportation corridor connections to the subject property via the Bypass on Mary Street (Principal Arterial) and Five Mile Road (Minor Arterial) to Highway 312 (Principal Arterial). Staff has attached to this memo the most current Functional Classification Map regarding the existing and proposed transportation corridors in the area of this property. These connections provide ample connectivity as well as the potential for shared costs of infrastructure upgrade opportunities between the City and developers as this area is built out over time.

-Public Safety Services: Passage of the Public Safety Mill Levy has created opportunity for public safety services to both address existing challenges in providing adequate response as well as planning for future service demands. While ultimate build out of this area over several decades may not be accommodated by current public safety service capacity, the Police Department and Fire Department have resources and have made recent changes in service delivery that equip them to evaluate initial expansion in this area. The Committee's recommendation to add this to the Long Range Area reflects the understanding that further assessment of service impacts from annexation of this area must be completed before any Annexation Map amendments move from the Long Range Area to the Petition Area. This analysis has not been conducted but adding this area to the Long Range Area recognizes this future need.

-Parks, Transit and other Services: Provision of park and open space development will occur as annexation, zoning and subdivision requirements are applied to this area in the future after further analysis of the area is conducted. Given the large area, it is anticipated that a variety of parks and trail corridors will be provided that extend from the existing Dover Park and the pedestrian walkway along the Bypass bridge over the Yellowstone River. Sidewalks, bike lanes, and some multi-use pathways adjacent to the arterial and collector roadways also are anticipated to provide connectivity throughout the area.

While MET Transit is not serving this area now or in the near future, MET governance and operations analysis does consider serving Lockwood and expanding services as the City expands and even in the Urban Planning Area of the MPO. Having this development area adjacent to the Bypass and Mary Street provides a long-range option for future transit looping from and to Lockwood in this northeast area of the Heights for both residential and commercial areas.

Recommendation: The Annexation Committee recommends the Billings Bypass and 5 Mile Road Intersection area be included in Zone 2 of the City’s Limits of Annexation Map based on the desire to see future urban development to City standards in this area of the Billings Heights.

Zone 2 Removal Recommendation: The Annexation Committee is presenting one recommendation to City Council to contract the City Annexation Long Range Area (Zone 2 – Yellow Area) (See draft map attached). This area is being recommended to be taken out of Zone 2 based on City Department analysis and evaluation that has determined this area is beyond any current or long-term plans for utility services, public safety services and MET transit services.

Area West of Zimmerman Trail and Highway 3 and Zimmerman Park on both sides of Highway 3 – Approximately 1,260 acres - Remove area from Zone 2 (Yellow Area)

This area of approximately 1,260 acres is west of the intersection of Zimmerman Trail and Highway 3 and beyond any current plans for utility services, public safety services and MET transit services. Staff has received multiple inquiries as to the potential to bring this area into the City and has had to repeatedly explain that this area is not serviceable in the foreseeable future. Focus in this area is from the intersection of Skyway Drive, Zimmerman Trail and Highway 3 east toward the City and Billings Airport. Not to the west up the Highway 3 corridor toward the Town of Broadview.

-Water and Sewer Utilities: Current and planned water and sewer system improvements are all focused to the east of this area to serve existing and future system demands along Skyway Drive, at the intersection of Skyway Drive, Zimmerman Trail and Highway 3, and east along the Highway 3 Corridor toward the Billigs Airport and rest of the City. This includes a planned water reservoir in this area that is designed to provide added capacity to the existing system and future demands to the east. This area would have to be served by a Zone 7 pressure zone (pump station and another reservoir). The City has no line of sight to a project like this for this area or how it would be funded, given other CIP priorities.  The area also is challenging to serve with sewer since it would have to go west and south to 54th Street West off the rimrocks in some area.

-Transportation Infrastructure: Highway 3 is under the jurisdiction of the Montana Department of Transportation (MDT) in this area. There are no plans at this time to make improvements to Highway 3 west of the Skyway Drive and Zimmerman Trail intersection to make it an urban arterial. In fact, the Highway 3 Corridor Study just now being concluded by MDT focuses all of its recommendations and future improvements to the east of this area along Highway 3 toward the Billings Airport and the intersection of Highway 3 and North 27th Street. The MDT study notes about $50 million of improvements required at the Zimmerman intersection and further east along the corridor, and seems to further support removal of the area west of Zimmerman along Highway 3 from the City's Long Range Area. Further, an economic analysis of the Skyway Drive corridor for future commercial development demand that will be completed this year is focused on the Skyway Drive Corridor and the area from the intersection of Skyway Drive and Zimmerman Trail east along Highway 3 to the Billings Airport. 

-Public Safety Services: This area is served by the Yellowstone County Sheriff for law enforcement, and a mix of the Billings Urban Fire Service Area and the Fuego Volunteer Fire Department. The closest City Fire Station is located at 17th Street West and Parkhill Drive about 4 miles from this area. The Billings Police Department has no patrols in this area and no City properties west of the Skyway Drive and Zimmerman Trail intersection. This area is well outside of any future service plans for the BPD or BFD.

-Parks, Transit and other Services: Zimmerman Park is a large County Park at the intersection of Skyway Drive and Zimmerman Trail. There are no plans for any future City parks in this area, aside from those provided during future development in the City along Skyway Drive or back east along Highway 3. MET Transit has no plans for service in this area, and currently has service to the Billings Airport about 3 miles to the east of this area. There is potential in the future for Transit to run from the Billings Heights along Skyway Drive and down Zimmerman Trail but that is not in any short-term plans and still would be east of much of this area currently in Zone 2,

Recommendation: The Annexation Committee recommends the area west of the intersection of Zimmerman Trail, Skyway Drive and Highway 3 be removed from Zone 2 of the Limits of Annexation Area as shown on the attached draft Limits of Annexation Map to provide clarity to property owners and developers that this is not an area of City focus for future annexation and services. The City is focused on the Skyway Drive corridor and the areas from the intersection of Skyway Drive and Zimmerman Trail at Highway 3 east toward the Billings Airport and existing City.


 

Staff does not have any specific dollar amounts to attach to any of these recommendations. However, the information provided to Council at its March 2 Work Session did provide some fiscal information for the Jellison Road area (See attached March 2 Engineering Memos) and the focus of the recommended changes is to balance existing service locations and proximity to the City Limits with demonstrating areas the City expects to evaluate in the future for annexation and areas where the City does not expect to spend resources to provide services.

The property owners at Hesper and 48th Street West, along Jellison Road, and the community as a whole are affected by City decisions on future annexation and City expansion. The City desires to make efficient and sustainable decisions as it considers future annexation of property to the City and provision of services for its current and future residence and businesses. The amendments to the Limits of Annexation Map being presented are designed to balance the challenges of managing growth while also demonstrating where and how the City intends to grow presently and in the future.

Amendments to the City Limits of Annexation Map are completed through a public hearing and action by resolution by the City Council. The property owner and agent for the Hesper and 48th Street property attended a City Annexation Committee meeting to discuss their request and have been kept informed of the review and Council meeting schedule. A public hearing will be advertised and conducted when this item comes to a business meeting of the Council in the future.

Since this is a Work Session, there is only one alternative for Council to provide direction to staff on these Limits of Annexation Map amendment recommendations so changes may be brought back for formal action at a future Council business meeting.