Since its first adoption in November 2004, the City Council has used the Annexation Policy and Limits of Annexation Map as its primary growth management tool for the City. Over the last eight years, the Annexation Policy has replaced the Urban Planning Area that preceded the Annexation Policy as a growth management tool in Billings dating back to the 1960s. The Urban Planning Area was developed in conjunction with water and wastewater system planning and it has always been a requirement that property be in the Urban Planning Area prior to being able to receive City water and wastewater services. The requirements and process to maintain the Urban Planning Area are spelled out in Section 20-300 of the Billings Municipal Code. The Urban Planning Area also is mentioned in Section 26-203 of the Billings Municipal Code under Water and Waste Water Service Area. After working to ensure alignment of the Urban Planning Area boundary and the Limits of Annexation Map boundaries over several years, the City Annexation Committee recommended to the City Council in 2009 and again in early 2011 that the Annexation Policy and Map replace the Urban Planning Area and that the City Code be updated to reflect this change. This proposed ordinance will accomplish these changes and align the City Code with the the Annexation Policy. The City Council  conducted a public hearing and passed these ordinance changes on first reading at its meeting on May 23, 2011. If the Council approves these ordinance changes on second reading, they will become affective on July 13, 2011.

The Council may:

• Approve the ordinance changes on second reading;
• Delay action on the ordinance changes on second reading; or
• Deny the ordinance changes on second reading. Denial of the ordinances changes will cause continued confusion for staff and the development community on how the Urban Planning Area and Annexation Policy function together.

There is no direct financial impact to the City by amending these ordinances to align the City Code with the Annexation Policy.

The Annexation Committee has been working to align the Urban Planning Area boundaries and the Limits of Annexation Map boundaries for several years. The Urban Planning Area has been eclipsed by the Annexation Policy and Limits of Annexation Map as the City's primary growth management tool. Over time, City long range planning documents like the Water and Wastewater Master Plan, Capital Improvement Plan, Yellowstone County and City of Billings Growth Policy, and various area and neighborhood plans have been aligned to the Annexation Policy and Limits of Annexation Map and not the Urban Planning Area. The Annexation Committee is following City Council direction in making these Code amendments . These proposed ordinance changes will align the City Code with the Annexation Policy.  These changes will reduce confusion and eliminate conflicting processes and procedures that were in both City Code and the Annexation Policy.

The Annexation Committee has met six times from October 2010 through April 2011 to discuss these City Ordinance amendments. The proposed amendments have been presented to the City Council at Work Sessions in 2009 and 2011. The proposed amendments have been discussed several times at the monthly meeting between City staff and the Billings Homebuilders Association. The City Council properly advertised and conducted a public hearing on May 23 before considering these ordinance changes on first reading.

Over time, City long range planning documents like the Water and Wastewater Master Plan, Capital Improvement Plan, Yellowstone County and City of Billings Growth Policy, and various area and neighborhood plans have been aligned to the Annexation Policy and Limits of Annexation Map and not the Urban Planning Area. These changes will reduce confusion and eliminate conflicting processes and procedures that were in both City Code and the Annexation Policy, and make the City Code and Annexation Policy consistent with other adopted policies and plans.