There is no recommendation for this Work Session, but staff is updating the Council on the status of setting up the new District Advisory Committees and the coordination with the District entities.

The 2025 Montana Legislature passed Senate Bill 3 (SB3) which required "the local government that adopts a tax increment financing provision shall appoint an advisory committee to advise the local government about the administration of the urban renewal area or targeted economic development district." The committee must include at least one representative from each incorporated city or town, county, or school district with boundaries that overlap with the urban renewal area or targeted economic development district. City code also provides requirements for the appointment of city boards, commissions and committees. Some of these provisions may be superseded by state law, but generally, city code provisions will apply to this committee.

Per this new state law, City staff and Council have made the following steps toward compliance:

• On July 21, 2025, Council discussed SB3 and indicated it would like to keep the operations of the districts the same, to the extent possible. Based on this direction, staff requested feedback from the three urban renewal districts to obtain their requests and recommendations about the makeup of the advisory committees.
• Staff used input from the three urban renewal districts entities to prepare resolutions for Council consideration and the City Council approved the three resolutions at its meeting on August 25 to create the committees.
• Staff is now preparing the application process for these committee seats to solicit applicants so appointments may be made by the Mayor and Council as soon as practical because the effective date of SB3 is October 1, 2025. Legal advertising for applications for these seats is going out in early September with applications due in early October. The Mayor is expected to review the applications and bring them to Council in late October or early November. 
• Staff is also directly contacting the County Commission, Billings School District, and Elysian School District to receive appointments for the seats to represent these entities.
• Staff plans to bring draft agreements to the City Council Work Session on October 6. Staff will receive input from the three District entities on the agreement drafts before that Work Session.

Discussion topics for this Work Session:

• City Council needs to decide on its City representative(s) for the three advisory committees.
• Staff is developing draft agreements between the City and the three districts to replace the current memorandums of understanding. If City Council has questions or input on the content of the agreements, staff will take that information back after this Work Session as we work on the drafts and bring responses and follow up to Council on October 6.

The City of Billings is the primary stakeholder in this process to ensure the Urban Renewal Districts and the new Advisory Committees follow state laws, local City codes, and local policies. It is the responsibility of the City to ensure the Districts and the Tax Increment Finance provisions in each District are administered and implemented correctly. 

There are no alternatives for this item at this Work Session. Staff is asking for some discussion by Council on its representative(s) for the three advisory committees and if it has questions or input for staff to take and follow up on as it develops the new agreements with the independent entities that will be supporting the new City-appointed urban renewal district advisory committees. Review of the draft agreements is scheduled for the October 6 Work Session.

The fiscal effects of this process are City Administrator, City Attorney, City Finance Director, and PCSD Director time to develop the new agreements, review them with the three independent entities that will be supporting the new advisory committees for the three Districts and bringing the agreements through the City Council process for approval.