The South Billings Urban Renewal Association Board recommends the City Council approve a water and sewer utility connection program, allocating up to $50,000 for one fiscal year to help residential properties in the South Billings Boulevard Urban Renewal District that are not connected to City services get connected by offsetting some of the connection expense.   

The City Public Works Department estimates there are still about 72 residential properties in the SBBURD that are not connected to City water or sewer. The City has utilized SBBURD funding to make significant improvements to the utility infrastructure in the SBBURD over the life of the District. Part of the intent of these improvements was to make it easier for properties to connect to the system and end reliance on septic systems and wells within the City Limits, mitigating public health and safety issues in neighborhoods. Efforts in the past to encourage and support residential properties connecting to utilities has had limited success. The SBBURD Urban Renewal Plan in Section 12 describes the deficiencies in the utility infrastructure in the District and the need to make improvements. A significant amount of improvement has been completed in the past 17 years since the District was formed. Reducing properties that are not connected to city services is an ancillary effort to the larger utility infrastructure improvements.

This new program recommended by the SBURA Board is designed to incentivize property owners with partial reimbursement for the connection costs. The SBURA Board recommends the City provide up to $5,000 in TIF funding per utility connection project to assist property owners. The applicants would still cover the System Development Fee and the balance of the connection costs. Connections are from the system in a home to the City's system connection point at the edge of the property and can range in costs due to factors like distance, obstacles (location of septic system), conditions of the existing pipes, etc. Cost estimates for connecting to the system vary per property, with rough estimates of $8,000 to 12,000.

Residential property owners in the SBBURD that are still not connected to City water or sewer services will benefit from this program from a financial and health and safety standpoint. This program also will be an environmental benefit to Billings to have more residential properties still on septic systems within the City Limits connected to the municipal water or sewer system.   

City Council may:

• Approve the SBBURD program, allocating up to $50,000 for FY26 toward supporting water and sewer utility connections for residential properties; or,
• Not Approve the SBBURD program, allocating up to $50,000 for FY26 toward supporting water and sewer utility connections for residential properties. It is expected that given the number of properties still not connected to utilities in the District, the number will remain about the same if no incentive program is provided. And given the City's significant investment in the water and sewer infrastructure in the SBBURD over the years, having all properties connected and off of septic and well systems would be positive for public health and safety. 

This program will allow utilization of up to $50,000 in SBBURD TIF funds for this program for the remainder of FY26. The SBBURD budget has capacity for this program allocation in FY26. The program will be evaluated at the end of FY26 and a determination will be made whether to propse extenidng it for FY27.