The City Council passed a Council Initiative in October 2016 to have staff provide information to Council regarding Tax Increment Financing (TIF) and to give recommendations to the Council on developing policies and criteria for use of TIF funds. Staff made presentations on the initiative at Council Work Sessions in February, June and November of 2017. At the Work Session in November 2017, Council directed staff to draft a TIF Policy the Council could adopt through a resolution. Staff provided a draft of the policy in the March 9, 2018 Friday Packet for the City Council. Per Council direction, staff also shared the draft with the support staff and advisory boards of the three Urban Renewal Districts (EBURD, SBBURD, and DBP - Downtown) so they may provide comments on the draft for Council to consider before it takes action.

Staff made one change to the draft Policy since March 9.  Section 2 a. was modified to recognize publicly owned projects, properties or facilities may not immediately or directly stimulate private spending that is at least five times the public investment. The change allows the Council to make exceptions for these public projects in regard to the public versus private investment ratios.  The Council is scheduled to conduct a public hearing and consider adopting the Policy Resolution at this meeting.
 

City Council may:

• Approve the TIF Policy Resolution as presented; or,
• Approve the TIF Policy Resolution with modifications; or,
• Not Approve the TIF Policy Resolution

There is no direct financial impact to the City by adopting the TIF Policy. However, implementation of the Policy over time may help the City make more consistent and informed decisions in regard to TIF programs in the City's three Urban Renewal Districts.

The City Council manages all decisions regarding the use of Tax Increment Financing (TIF) funds in the three Urban Renewal Districts (URDs) in Billings. The Council has considered many funding applications and programs over the years that these URDs have been in place. There have been infrastructure projects to improve streets, water and sewer lines, sidewalks, lighting and storm water control. There have been building improvement projects to facilitate redevelopment of buildings and property. There have been programs to make building façade improvements, provide revolving loans, and partner to provide a medical clinic in an elementary school. The City Council wants to be consistent and in line with the state laws directing formation, expansion, management and use of TIF funding in its URDs. The adoption of a Policy like the one attached will help further this Council goal and continue to serve the community.
 

A legal notice of this public hearing was advertised on March 23 and March 30 in the Yellowstone County News. The draft resolution and policy have been shared with the support staff and advisory boards of the three Urban Renewal Districts (EBURD, SBBURD, and DBP - Downtown) so they may provide comments on the draft for Council to consider before it takes action. It is anticipated that the three Urban Renewal Districts will provide comments to the Council either before this meeting or at the meeting during the public hearing.  Any other members of the public may comment on this resolution and policy at the public hearing.

 

The City Council wants to be consistent and in line with the state laws directing formation, expansion, management and use of TIF funding in its URDs. Each of the three URDs in Billings has an urban renewal plan that identifies goals for the districts and has met the requirements of state law. Since the City has no other policy or plan aside from these urban renewal plans to direct administration of TIF programs in urban renewal districts, the adoption of a policy like the one attached will help further the Council's goal of managing urban renewal districts and projects to serve the community.