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Item 1.E.
 
City Council Regular
Date: 12/08/2025
Title: Beartooth RC&D Memorandum of Agreement
Presented by: Chris Kukulski, City Administrator
Department: City Hall Administration
Presentation: No
Legal Review: Yes
Project Number: N/A

RECOMMENDATION

Staff recommends that the City Council approve the MOU with Beartooth RC&D for 2026.

BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)

The Beartooth Resource Conservation and Development Area, Inc. (Beartooth RC&D) is asking the City Council to renew a Memorandum of Understanding (MOU) for Beartooth's economic development services through December 31, 2026.
Beartooth RC&D is a State and Federally grant-funded rural and economic development agency that has operated since 1969 in five south-central Montana counties, including Yellowstone County. State and Federal funds are matched in Yellowstone County by a $4,500 membership fee, plus a per capita assessment of $0.19 per person ($32,600.77), totaling $37,100.77. This amount is split among the County, Big Sky Economic Development, and the cities of Billings and Laurel. The City of Billings' portion of that amount is $13,305.66 (36%). Entities paying membership fees are represented on the Beartooth Board of Directors; the current Billings representative is Councilmember Boyett.
In their enclosed letter, Beartooth RC&D has provided the partners with an updated fee structure of $0.26 per capita for 2027. The 2026 fee will remain at $0.19 per capita.
Also see the attached 2025 projects list.

 

ALTERNATIVES

City Council may consider approval, postponement of action or disapproval of MOU and payment.

FISCAL EFFECTS

The Entity’s annual contribution will be $4,500.00 as a “Membership” fee plus a per capita assessment of .19 cents per person. These funds will provide the necessary match to obtain the $70,000.00 in federal funds.  Entities who do not participate financially in the match requirement will not receive services from the Economic Development Coordinator.  The calculated fee for the Entity is $37,100.77.  This figure is a total of the $4,500.00 fee plus $32,600.77 per capita formula using a population of 171,583 x (.19) as per the 2024 Census data. The Entity’s full payment will be separated into a four-way payment system. Each entity within the county will pay a percentage (%) similar to the previous year.  Big Sky EDA- 34% or $12,614.26, City of Billings- 36% or $13,356.28, City of Laurel- 6% or $2,226.05, and Yellowstone County- 24% or $8,904.18.  Our FY 2026 budget includes our contribution amount to be paid out of the General Fund.

SUMMARY

Attached you will find:
  • City of Billings Dashboard: a snapshot of Beartooth’s activity in the City. Also included is some information about surrounding counties that has a direct positive impact on Billings.
  • Site Selector Handout: information on a business attraction tool for planning for the region.
  • FADC poster: A snapshot of the work the Food and Ag Development Centers do throughout Montana.
    • NOTE: The new Food and Ag Director Brad Eik has been working with many clients on grant applications and training opportunities – including quite a few in Billings. Businesses like Caramel Cookie Waffle Co., Billings Seafood Guys, Yellowstone Valley Food Hub, and others definitely benefit from the services of the FADC.

Attachments