Regular 6.
City Council Regular Business Meeting
- Meeting Date:
- 06/08/2026
- TITLE
- Public Hearing and Resolution Adopting the FY2027 Budget
- PRESENTED BY:
- Andy Zoeller
- Department:
- Finance
Presentation:
Yes
Legal Review:
No
Project Number:
n\a
RECOMMENDATION
Staff recommends City Council hold a public hearing, make a motion to approve the budget resolution as presented, obtain a 2nd, then consider any motions to amend, and adopt the FY2027 budget resolution, as amended.
EXECUTIVE SUMMARY
The City of Billings FY2027 proposed budget totals $447 million. The resolution establishes budget authority for each fund for fiscal year 2027.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
City Council and staff have held four work sessions regarding the City's FY2027 budget. Additional meetings were held by the City Council Budget and Finance Committee in April and May, discussing the FY2027 budget.
The attached budget resolution will establish the budget authority for the City's fiscal year 2027, which begins on July 1, 2026. City Council may make amendments to the budget.
Approval of this budget before July 1 is advisable, as the City will begin incurring expenses for FY27 as soon as July 1. Beginning July 1, negotiated cost-of-living increases for the Fire Union (3%), Police Union (3%), and Teamsters Union (3.5%) employees will go into effect. Additionally, the proposed budget includes a cost-of-living adjustment for non-bargaining employees (3.5%), which will also go into effect.
The Budget and Finance Committee met on 5/20/2026, and recommended the attached amendments to the proposed budget. These amendments will need to be introduced and voted on similar to all other amendments. Further detail on each amendment can be found in the attachment.
BFC 1 - Reduce Mayor & Council – Council Contingency from $35,000 in the proposed budget to $5,000. Increase City Administration – Management and Professional Development by $30,000. This is a net $0 change in the General Fund.
BFC 2 - Reduce the Downtown Tax Increment Budget for administration from $258,102 to $183,850.
BFC 3 - Increase the Cooperative Safety budget in the Downtown TIF and BID to be split 50/50.
BFC 4 - Reduce the City Legal department budget by the cost of 1 FTE, by removing the paralegal from the FY27 budget.
BFC 5 - Remove the Commercial Code Enforcement Officer and related costs from the FY27 budget. If tax revenue is sufficient, when known in the fall, bring back a budget amendment to consider adding it back in.
Staff has reviewed these proposed amendments will be available to provide additional information at the public hearing.
The attached budget resolution will establish the budget authority for the City's fiscal year 2027, which begins on July 1, 2026. City Council may make amendments to the budget.
Approval of this budget before July 1 is advisable, as the City will begin incurring expenses for FY27 as soon as July 1. Beginning July 1, negotiated cost-of-living increases for the Fire Union (3%), Police Union (3%), and Teamsters Union (3.5%) employees will go into effect. Additionally, the proposed budget includes a cost-of-living adjustment for non-bargaining employees (3.5%), which will also go into effect.
The Budget and Finance Committee met on 5/20/2026, and recommended the attached amendments to the proposed budget. These amendments will need to be introduced and voted on similar to all other amendments. Further detail on each amendment can be found in the attachment.
BFC 1 - Reduce Mayor & Council – Council Contingency from $35,000 in the proposed budget to $5,000. Increase City Administration – Management and Professional Development by $30,000. This is a net $0 change in the General Fund.
BFC 2 - Reduce the Downtown Tax Increment Budget for administration from $258,102 to $183,850.
BFC 3 - Increase the Cooperative Safety budget in the Downtown TIF and BID to be split 50/50.
BFC 4 - Reduce the City Legal department budget by the cost of 1 FTE, by removing the paralegal from the FY27 budget.
BFC 5 - Remove the Commercial Code Enforcement Officer and related costs from the FY27 budget. If tax revenue is sufficient, when known in the fall, bring back a budget amendment to consider adding it back in.
Staff has reviewed these proposed amendments will be available to provide additional information at the public hearing.
FISCAL EFFECTS
The FY2027 budget for the City of Billings is $447 million. This is broken into the following categories:
Further, this budget is broken apart into funds, as identified in the attached budget book and resolution. The resolution establishes the expenditure limit of each fund. The City may not exceed the adopted expenditure limit without Council approval.
The budget is predicated on the adoption of discussed rates, charges, and property tax mill levies, which will occur as separate votes from the budget itself.
| Expenditure Category | FY2027 Proposed Budget |
| Personal Services | $130,025,911 |
| Operation & Maintenance | 132,281,326 |
| Capital Outlay | 118,483,538 |
| Debt Service | 27,412,207 |
| Transfers Out | 38,861,008 |
| Total Budgeted Expenditures | $447,063,990 |
Further, this budget is broken apart into funds, as identified in the attached budget book and resolution. The resolution establishes the expenditure limit of each fund. The City may not exceed the adopted expenditure limit without Council approval.
The budget is predicated on the adoption of discussed rates, charges, and property tax mill levies, which will occur as separate votes from the budget itself.
STAKEHOLDERS
ALTERNATIVES
City Council may, adopt, amend, or not adopt the FY2027 budget resolution. If council does not adopt the FY2027 budget resolution, direction on how to proceed would be required, as adopting a balanced budget is a requirement of Montana State Law (MCA 7-6-4024).