Per the City Council's direction during their June 19 Work Session, administration and the parks and recreation department recommends Council adopt the enclosed resolution calling for a GO bond election November 7, 2023, to invest $143 million into city parks, trails and recreation assets.

This memo and our discussions highlight the critical importance of our city parks and public safety and to propose actionable solutions that will contribute to a safer and more vibrant community. 

In addition to a commitment to improve the safety of Billings, the Council has adopted priorities that included improved investments into parks, recreation and trails since 2020.  
 
March 9, 2020 - Council adopted priorities for the upcoming year that included: Create a Park Development Fund
April 12, 2021 - Council adopted priorities that included under the "High" category: Create a park and trail development program and analyze all park and trail funding options to build excellent parks and trails throughout the City.
May 9, 2022 - Council adopted the following strategy and priority: Increase parks, trails, recreation, and cultural investments.

• Determine level of capital investment to be proposed to voters in 2023 for the multi-generational recreation center and a corresponding strategy for executing on those capital investments.
• Determine level of capital investment to be proposed to voters in 2023 for additional park and trail development and a corresponding strategy for executing on those capital investments.
• Determine level of maintenance and operation expenses for parks, trails, and recreation facilities to be proposed to voters in 2023 to meet the needs of our community long term.

As a result, over the last several years, staff, community stakeholders and the Council have discussed the funding needs for city parks, trails, and recreation assets.  The 2017 Comprehensive Parks and Recreation Plan along with each of the adopted parks and recreation master plans were used to help guide our deliberations.  Added to these discussions was the action taken during the 2021 Legislature to place an automatic "sunset" date to Park District 1 (PD1) in 2024.  PD1 made up roughly one third (1/3) of the parks, recreation, public lands (PRPL) department's revenue, and the funding source for lifecycle replacement for park amenities.  On a positive note, since the comprehensive master plan was completed in 2017, park amenities have increased, unfortunately resources have not kept up with the increased demand for staffing to care for the added amenities.  Enclosed is a document outlining changes the PRPL department has made consistent with recommendations outlined in the 2017 comprehensive plan to improve deficiencies.

The funding options available to Council include extending PD1 or creating a new district; submitting a question to voters to increase the mill levy through an amendment to the city charter; and/or submitting a question to the voters to issue general obligation bonds to make capital investments into parks, trails and recreation assets.  To the question of PD1 - on Monday June 12 the Council voted to move all funding out of PD1 and into the general fund when they adopted the fiscal year 2024 budget.  Therefore, the issue of the operational levy has been resolved over the near term (4+ years depending on costs and increased taxable values for the city).  This leaves the issue of significant capital investment yet to be resolved.  During the June 19 Work Session our team presented a series of capital investments in parks, recreation and trails assets after dozens of meetings that have taken place throughout the community (see enclosed power point presentation).

During our efforts to improve public safety, it has become evident that public health and public safety are deeply interconnected.  Our crime problem is fundamentally rooted in trauma, substance abuse, and a loss of hope.  Over the past half century our community shifted away from substantial public investments in additional public parks and recreation even though our population has doubled.  Fortunately, we have preserved our parkland rather than selling it off.  However, investment are necessary to activate public spaces throughout our 43 sq mile city, if we are to improve the health and safety of Billings.  Therefore, the following remarks from Chief St. John, emphasizing the link between public health, public safety, and the significance of parks, are highly relevant:

• Developed and improved parks attract people, creating "social capital or infrastructure" for the community, which fosters a sense of safety.
• Appealing and useful parks reduce crime in and around the area.
• Quality parks serve as community hubs, empowering neighborhoods and enhancing overall quality of life.
• Well-designed and well-maintained parks eliminate signs of disorder and communicate the city and community's value for the area.
• Properly managed parks act as deterrents, showcasing active resident and business involvement in the community.
• Violent crime is a public health concern, and parks play a critical role in improving and supporting public health.
• When more people gather in parks, it increases community surveillance and deters criminals from targeting park neighborhoods.
• Reports demonstrate an overall reduction in crime, especially gun crime, in well-kept parks.
• Adequate lighting in parks is a proven deterrent against criminal activities.
• Positive activities and programs held after dark contribute to crime reduction.
• Parks designed for safety, with heavy programming and proper maintenance, attract residents and serve as deterrents.
• Deteriorating parks develop negative reputations and attract criminal activity.
• While parks alone cannot solve criminal activity, they are an integral part of the solution.

To address the need for capital investment, issuing general obligation bonds remains a viable option.  General obligation bonds may be issued for any public or governmental purpose and specific authority exists for various parks and recreational purposes in Section 7-16-4104, MCA. To issue general obligation bonds, the issue must be submitted to the registered electors and the total amount of indebtedness may not exceed 0.9% of the total assessed value of taxable property for cultural, social and recreational purposes.  Based on our estimated taxable value for 2023 we cannot borrow more than $149.9 million for this purpose.   

To have an election in conjunction with the November 7, 2023, general election, Council needs to pass a resolution with appropriate ballot language at least 85 days prior to the election. Therefore, the latest date at which Council could call an election is August 14, 2023, and the resolution must be dated on or before August 14, 2023. However, staff recommends we do not wait until the deadline in August, so the County election administrator has sufficient time to prepare the ballot and our community stakeholders have more time to prepare for the election.  Please note that the number of mills it will take to pay off the bonds will be reduced from this current estimate once the department of revenue sets the City's taxable value prior to submitting our final resolution to the election administrator (we will cover these estimates during our presentation). 

In conclusion, Council was asked and provided direction during the June 19 work session to allow staff adequate time to prepare a resolution and to provide notice of a public hearing to be held on July 10, 2023.  By investing in our parks, recreation and trail assets and addressing public safety concerns, we can create a community that thrives with social cohesion, improved health, and enhances our quality of life. Staff has prepared the resolution to submit to the electors of the City of Billings the question of issuing general obligation bonds for the November 7th 2023 ballot.


 

City Council may:

• Approve;  the resolution to submit to the electors of the City of Billings the question of issuing general obligation bonds, or; 
• Not Approve; the resolution and provide staff with additional guidance.

If the City Council, after holding a public hearing, passes a resolution placing a bond election on the ballot November 7, 2023, voters will be asked to consider authorizing the City to issue bonds up to a total principal amount of $143 million for Parks, Recreation, and Trails projects. The election will be part of the general election, so additional election costs will be limited.

The current resolution contains ballot language for estimated costs based upon the current (2022) Certified Taxable Value. When 2023 Certified Taxable Value information is received in August, the ballot language will be updated to reflect the new value of a mill. If voters approve the bonds, the estimated cost for debt service will be approximately $50 per year for every $100,000 in residential appraised value, based upon the estimated increase in taxable value.

 

City Council is being asked to direct staff to schedule and public hearing and present a bond resolution to invest approximately $142.8 million into the community's parks, recreation, and trails assets.