Staff recommends the City Council hold a public hearing and approve the prioritized project list on first reading, allowing the City to submit a single grant application to the Montana Department of Commerce.

The Montana Legislature passed HB 355 "The State-Local Infrastructure Partnership Act of 2023", appropriating $20 million from the state general fund to distribute as grants to incorporated cities and towns for eligible local government infrastructure projects that fully comply with HB 355. The published guidelines listed 10 areas for which cities could use funds for "maintenance or repair" of existing infrastructure. However, the guidelines also noted that of highest priority were drinking water systems, wastewater treatment systems, and fire suppression systems "if independent of drinking water systems". Cities are asked to provide clear reasoning for not funding one of those three areas if they submit a project from one of the other seven categories. The city must also be able to demonstrate that they will be able to make a 25% local match of the total project cost in its application. The law required cities to solicit projects from their departments, prioritize the resulting lists, and present those lists at a public hearing. Once the public hearing is completed, the city may finalize its priority list and make its application(s) to the DEC for the funds. A city must submit a separate application for each project they wish to have funded under the bill - and each project must have a 25% non-federal local cash match identified and committed. Finally, each submitted project must be included in the current CIP as adopted by the City Council.
The City of Billings will receive slightly more than $1.4 million in funding under a formula set forth in the bill. The project(s) total cost must be $1.87 million, which includes the local match of $468,000. In examining projects submitted by City departments, the administration recommends that the City of Billings submit one application for the entire $1.4 million to help pay for our Public Works annual water main replacement program for FY25. Public Works has listed the project on page 171 of the FY25-29 CIP. The water main replacement program will cost $4.8 million in FY25, more than enough to cover the 25% local match requirement. Local funds not spent on the water main project will be diverted to the West End Water Treatment Plant and Reservoir fund or other Public Works projects as determined at a later date.

City Council may:

• Approve; or,
• Not Approve

The City of Billings will receive slightly more than $1.4 million in funding under a formula set forth in the bill. The project(s) total cost must be $1.87 million, which includes the local match of $468,000. The water main replacement program will cost $4.8 million in FY25, more than enough to cover the 25% local match requirement. Local funds not spent on the water main project will be diverted to the West End Water Treatment Plant and Reservoir fund or other Public Works projects as identified at a later date.