Regular 2.
City Council Regular Business Meeting
- Meeting Date:
- 11/09/2026
- TITLE
- 2027 Budget Amendment
- PRESENTED BY:
- Sarah Lane
- Department:
- Finance
Presentation:
Yes
Legal Review:
No
Project Number:
N/A
RECOMMENDATION
Staff recommends City Council hold a public hearing and adopt the FY2027 budget amendments.
EXECUTIVE SUMMARY
Proposed budget amendments across two funds are submitted for City Council approval. Fund 2400 (Planning Fund) requests a $95,000 allocation for fiscal year 2027 operations utilizing a Prohousing Grant awarded by the Department of Commerce to cover new consulting work, not originally budgeted. Fund 6510 (Facilities - City Hall) designates $184,000 for Floor 3 HVAC repairs and maintenance, which will be entirely covered by available cash reserves and county rental income.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Two funds are requesting budget authority amendments to cover previously unbudgeted expenditures:
Fund 2400 (Planning Fund) requests: A $95,000 allocation for upcoming fiscal year 2027 operations funded by a $344,317 Prohousing Grant. The U.S. Department of Housing and Urban Development (HUD) awarded the Montana Department of Commerce a PRO Housing 2 grant in 2025. The Montana League of Cities and Towns worked with the MT DOC to enable the cities subject to the Montana Land Use and Planning Act (“MLUPA”) work to develop and implement the elements of MLUPA (Billings 2045 locally). Specific work tasks were identified in 2024 in coordination with the MLCT, MT DOC and Billings as a possible subrecipient of the grant. The new proposed program addressed in this budget amendment at an estimated $95,000 in expenditures develops pre-approved housing plans for property owners and infill properties that may include Accessory Dwelling Unit, infill-style single-family unit and possible two-unit attached. The City would contract for the plan development, conduct outreach and education for awareness, and have a new dedicated web presence where people could review, select and download plans already approved to meet Building Codes and fit into common zoning parameters in Billings. All tasks under the grant must be completed by May 31, 2027.
Fund 6510 (Facilities - City Hall): Allotted $184,000 under Operations and Maintenance to resolve a Floor 3 HVAC breakdown and manage general facility repairs. Repairs for the HVAC on the 3rd floor were required after the County moved back into the space this summer. This project was set for future CIP years, but immediate repairs were required to make the system functional. This budget amendment covers Phase 1 of the project to make the system functional again and Phase 2 is included in future CIP projects. The cost of the project will be covered by the revenues from the County rents.
Fund 2400 (Planning Fund) requests: A $95,000 allocation for upcoming fiscal year 2027 operations funded by a $344,317 Prohousing Grant. The U.S. Department of Housing and Urban Development (HUD) awarded the Montana Department of Commerce a PRO Housing 2 grant in 2025. The Montana League of Cities and Towns worked with the MT DOC to enable the cities subject to the Montana Land Use and Planning Act (“MLUPA”) work to develop and implement the elements of MLUPA (Billings 2045 locally). Specific work tasks were identified in 2024 in coordination with the MLCT, MT DOC and Billings as a possible subrecipient of the grant. The new proposed program addressed in this budget amendment at an estimated $95,000 in expenditures develops pre-approved housing plans for property owners and infill properties that may include Accessory Dwelling Unit, infill-style single-family unit and possible two-unit attached. The City would contract for the plan development, conduct outreach and education for awareness, and have a new dedicated web presence where people could review, select and download plans already approved to meet Building Codes and fit into common zoning parameters in Billings. All tasks under the grant must be completed by May 31, 2027.
Fund 6510 (Facilities - City Hall): Allotted $184,000 under Operations and Maintenance to resolve a Floor 3 HVAC breakdown and manage general facility repairs. Repairs for the HVAC on the 3rd floor were required after the County moved back into the space this summer. This project was set for future CIP years, but immediate repairs were required to make the system functional. This budget amendment covers Phase 1 of the project to make the system functional again and Phase 2 is included in future CIP projects. The cost of the project will be covered by the revenues from the County rents.
FISCAL EFFECTS
There is sufficient revenue or cash reserves for all the funds requesting budget amendments.
| Fund | Budget Amount | Funding Source | |
| Planning | 95,000 | New Grant Revenue | |
| Facilities City Hall | 184,000 | New Rent Revenue |
STAKEHOLDERS
ALTERNATIVES
City Council may:
Approve; or,
Not Approve. If not approved, some funds may be over budget in FY27, and the City would not be compliant with State law (Title 7, Chapter 6, Part 40)
Approve; or,
Not Approve. If not approved, some funds may be over budget in FY27, and the City would not be compliant with State law (Title 7, Chapter 6, Part 40)