The City Council consider the Limits of Annexation Map amendments recommended by the City Annexation Committee and provide direction as staff prepares to bring these amendments to the Council for formal action at a regular meeting in October.

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 did not receive any requests from private property owners to amend the Annexation Map in fall 2019. However, the Committee is recommending four changes to the map based on staff knowledge of potential future development by property owners and infrastructure projects the City has included in its CIP or long range plans. The Committee is not recommending any changes to the Policy at this time. The Annexation Committee’s recommendations are being presented to the Council at this Work Session. Formal action on the recommendations is expected at the Council’s regular meeting on October 12.

The City Council first adopted an Annexation Policy and accompanying Map 18 years ago in May 2002.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 two limits of annexation. The City Annexation Petition Area (Red) defines an area where annexation petitions may be supported in the short term. The Long Range Urban Planning Area (Orange) covers areas where City services may be extended but would require additional analysis and funding to support those services.

The City of Billings has annexed about 5 square miles since 2004 (38.65 to 43.97 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 existing citizens. Recent discussions and funding efforts centered on the need to increase public safety services has been a core part of these service issues. These challenges have meant the Committee continues to be cautious in recommending any expansion of the annexation areas. Staff also has recognized Council concerns in considering recent annexations that there is a lot of property already in the City Annexation Petition Area that could need services. However, it is important to recognize not all of the current City Annexation Petition Area is facing development/redevelopment in the near future as portions are already built out with residential or commercial uses. Ensuring proper municipal infrastructure is positioned to serve City expansion long term is also a critical element in the community's sustainability so it is necessary to expand in some areas.
 
Orange Area Recommendations:
The Annexation Committee is making two recommendations to City Council to expand the Long Range Urban Planning Area (See draft map attached to this memo). Both of these areas are being recommended due to future City initiated and State initiated infrastructure that is gong to occur and influence these areas for urban development.

West Billings Reservoir Area (1) - The City of Billings has programmed the construction of a west end reservoir and water treatment plant into its adopted Capital Improvement Plan, and anticipates construction of these facilities in the next 4 years. The project is located in the former Knife River Gravel Mine south of the Shiloh Conservation Area, east of 48th Street West and in the area around Hesper Road. While the reservoir will provide significant additional drinking water storage for the City and the plant will add redundancy and improved capabilities to the City water system, this location means future municipal services will be available along this western edge of the current City Limits. While the City is not prepared to service some of this area right now, the Annexation Committee sees the need to expand the Long Range Urban Planning Area to encompass an area south, west and northwest of this project along the 48th Street West corridor in anticipation of future City development in this area. It is expected that if the Council amends the map to include this area for Long Range Urban Planning, City staff will continue to analyze the future service options as the reservoir and water plant project move ahead in 2021.

East Heights Billings Bypass Area (2) - The Montana Department of Transportation (MDT) is in the process of constructing the Billings Bypass between Johnson Lane in Lockwood and the Billings Heights area at Mary Street and Highway 312. The City of Billings and Yellowstone County have fully supported this project and committed locally allocated Federal transportation funds to complete it. This project will provide a major transportation corridor connecting both Lockwood and the Billings Heights, but also I-90/I-94 and Highway 87 to northern Montana and Canada. When this project is completed, it will have a significant impact on the eastern portion of Billings Heights, much of which is still in the County and only some of which is in the City Annexation Petition Area. The Metropolitan Planning Organization (MPO) for Billings and the Urban Area of Yellowstone County has programmed an North Bypass Corridor Study to be completed in 2021 to address future access and development along the northern segment of the Bypass from where it crosses the Yellowstone River to where it intersects with highways 87 and 312.   The Annexation Committee sees the need to include the entire east Billings Heights area in the Long Range Urban Planning Area now to anticipate both this upcoming study and the need to plan for development in the area that should be in the City with municipal services.

Red Area Recommendations: The Annexation Committee is making two recommendations to City Council to expand the City Annexation Petition Area (See draft map attached to this memo). Both of these areas are being recommended due to recent and future City infrastructure projects in the Adopted CIP and long range infrastructure planning that will influence these areas for urban development.

West Airport Highway 3 Area (3) - Before the City was awarded a BUILD Grant in early September to construct the Inner Belt Loop and the Skyline Trail, there was already significant long term planning and potential development activity along the Highway 3 Corridor west of the Airport. The City has limited water and sewer infrastructure in this vicinity but is planning for further service expansion. The Airport continues to monitor development impacts to its operations. Some rezoning in the County in the past 5 years in the area has led to initial development by Billings Flying Service north of Highway 3. The MPO's completion of the Highway 3 Corridor Study in 2015 laid out significant improvements to the road corridor and assessed future land use opportunities, as well as developed the Skyline Trail concept. Most recently, the adoption this summer of the Inner Belt Loop Corridor Study by the City and County also identified the future urban development potential for the area along Highway 3. While the area the Annexation Committee is recommending be included does not encompass all of the future development area, the Committee recognized the need to begin including this area so that new development in the short term will occur in the City on municipal services and send the message that this area should be served by the City. The City Annexation Committee members found that adding this area to the City Annexation Petition Area would not put a significant or immediate strain on City service delivery in this location and the benefits of having urban development in the City in this area versus rural County development outweighed any possible challenges.

Grand and 62nd Street Area (4) - This area has been a focus of internal staff discussion for a few years as the City Limits are just east of this intersection and also north at the intersection of 62nd Street West and Rimrock Road. The City also completed a project a few years ago to extend water and sewer west along Grand to near the 60th Street West intersection. The long term plan for this area is to eventually utilize 62nd Street West to loop utilities between Grand and Rimrock Road to better service the property within the current City Annexation Petition Area east of 62nd Street West between Rimrock Road and Grand Avenue. Having this area all within the City Annexation Petition Area east of 62nd Street West except for the northeast corner of the Grand Avenue and 62nd Street West intersection does not make sense from a long term municipal service standpoint. Further, the property owner at this northeast corner has expressed interest in the past year to annex and develop this location. The City Annexation Committee members found that adding this small area to the City Annexation Petition Area would not put a significant strain on City service delivery in this location and the benefits of having urban development in the City in this area versus rural County development outweighed any minimal service challenges.

No formal action is required by the City Council at this meeting. Staff will bring the Limits of Annexation Map recommendations to a regular Council meeting in October for action.

In making its recommendations to amend the Limits of Annexation Map, staff considers the ability to serve areas outside the existing City limits based on existing resources, effects on City residents, and programmed improvements, including the Capital Improvement Plan (CIP). The Committee also considers the long range opportunities for urban development while striving not to favor one department’s ability to provide service over another department’s limitation(s).
 

Making amendments to the City Limits of Annexation Map does not immediately impact the City budget. However, future annexations in the areas that are included in the City Annexation Petition Area will have both revenue and cost implications for City service delivery. Future decisions in the CIP process about infrastructure projects also will have an impact on where the City invests in long range City growth and expansion. There is a balance the City must achieve between efficient service delivery to existing City residents and future expansion to provide services for urban development. Not identifying future areas of Cty expansion and making long term investments can also have a significant cost as rural development occurs in places that interrupts future City expansion and makes future service delivery more complicated and costly.

The Council would likely want to know specific cost estimates for future service delivery to the areas identified for the Annexation Petition Area (Red area). This is not possible at this time both because the specific development plans for these areas is not known and because the City has not completed a Cost of Service Study to help inform these situations. However, the Annexation Committee has been very intentional about the two areas it has recommended for inclusion in the Annexation Petition Area this year to minimize short term service impacts in anticipation of future service delivery analysis.