The City Council adopted the current Annexation Policy and Limits of Annexation Map on May 23, 2011. The Annexation Policy requires the City to review and consider updates to the policy and map whenever the Capital Improvements Plan is revised. Council approved the 2013-2017 Capital Improvements Plan at its March 12, 2012, Council meeting. Amendments to the Annexation Map were not ready at that time but staff is bringing these items forward as soon after the CIP adoption as practical.

To provide guidance on Annexation Policy and Map amendments, an Annexation Committee, consisting of representatives from the Parks, Recreation and Public Lands, Police, Fire, Public Works, Transit, Administration, and Planning Departments, and Billings School District 2, advises the City Council. The Committee has met four times from January 2012 through April 2012 to discuss revisions to the Map. The proposed amendments this year are only to the Limits of Annexation Map, not the Policy. The Map amendments for 2012 were presented at a Council Work Session on April 2. Additional information was provided at that meeting on one of the amendment proposals and the Council asked staff to reconvene the Annexation Committee to review the new information. The Committee is presenting the Council with its recommendations in the form of a resolution to revise the Limits of Annexation Map.

In making its recommendation on expanding the Limits of Annexation Map Red Area, staff considered the ability to serve areas outside the existing City limits based on existing resources, effects on City residents, and programmed improvements, including the CIP. The proposed revisions to the Map reflect these considerations and attempt not to favor one department’s ability to provide service over another department’s limitation.

In considering the Annexation Committee's recommendations, the Council may:

• Approve the Annexation Committee's recommendations as presented; or
• Modify and approve the Annexation Committee's recommendations; or
• Not approve any of the Annexation Committee's recommendations

Annexation of property to the City of Billings will increase the City’s tax base. At the same time, the City will bear the cost of additional service requirements. The Annexation Policy and the Limits of Annexation Map are management tools to help balance this cost-to-benefit ratio. The Annexation Committee's recommendations for changes to the Limits of Annexation Map also consider the benefits and costs to the City.

While there has been little annexation activity in the last few years, the City of Billings has annexed about nine square miles since 1999 (32.8 to 41.7 sq. mi.). This accounts for both annexations and deannexations. Many of those annexations required a considerable outlay of City funds to ensure acceptable levels of service to the annexed properties and to maintain the levels of service within the existing City limits. As these properties developed, the cost of providing certain services exceeded the revenue generated by the development. For this reason, the City Council asked staff to draft an Annexation Policy that would limit annexations to areas that could be served without incurring additional costs. The adopted policy established two limits of annexation when last updated. The red area (2011-2015) coincides with the immediate five years covered by the CIP and defines an area where annexation petitions may be supported in the short term. The second time period, designated as orange (Long Range Urban Planning Area), covers areas where City services may be extended but would require additional analysis and funding to support those services.

Limits of Annexation Map Amendment Request
Staff received two requests from a property owner to include properties in the 2012-2016 Limits of Annexation (red). The City's Parks Recreation and Public Lands Department also asked that the Committee consider including Phipps Park in the 2011-2015 Limits of Annexation (red) as well. While not described here in detail, the Committee also recommends the Council update the Map with any annexations or deannexations that have happened in the last year and ensure the Map is correct with these amendments. The properties that requested inclusion are discussed individually below and each Committee recommendation, and basis for the recommendation, is included.

Phipps Park
Phipps Park is a 347 acre City park located at the far northwestern edge of Billings in Yellowstone County. It straddles the edge of the zoning jurisdiction and is outside the Red Area and the Orange Area of the Limits of Annexation Map and is not classified. The Park is in the County and under County regulations and enforcement through the Yellowstone County Sheriff. The City has struggled with regulating activities in the park due to it not being inside the City. The City Fire Department responds to emergency calls at the Park, although it is not in its jurisdiction, enforcement of the City Fireworks Ban is not allowed in the Park since it is in the County. Staff supports bringing Phipps Park into the Red Area of the Limits of Annexation Map to enable the City to annex the Park in the near future, administer City Park Regulations, Fireworks Bans, coordinate Police and Fire response, and generally manage the Park under full City control. Bringing the Park into the red area and annexing it does not mean that the Park will be heavily developed or that City services, including water and sewer, will be extended to the Park. The Park was given to the City as a natural park and so improvements would likely not go beyond a vault toilet, picnic benches or other limited improvements.

Tracts 2A and 2B of C/S 2577, Amended, and City Park Land described as Tract 1-B, C/S 266
Property owners Jeff and Dana Sorenson submitted a request through Sanderson Stewart to include Tracts 2A and 2B of C/S 2577, Amended in the Red are on the Limits of Annexation Map. The 1.7 acre property is located south of Highway 3 just east of the intersection of Rod and Gun Club Road with Highway 3. The property could accommodate 2 to 3 single family dwellings based on the zoning and the topographic challenges of the site. A portion of City park land described as Tract 1-B, C/S 266 is adjacent to the subject property to the South and staff is suggesting that this park property also be considered for inclusion in the Red Area on the Limits of Annexation Map. Staff supports adding these properties to the Red area since the City Limits already to the East, South, and West, City water and sewer can serve the property at the owner’s expense, other City Services already cover the area, including Police, Fire, Utilities, Street and Traffic; and the property is small and will provide minimal impact to existing service demands.

Department Comments: Below are comments regarding this map amendment request provided by the various City Departments through the Annexation Committee. Overall, City staff support including this property in the Red Area on the Limits of Annexation Map:

Public Works: City water and low pressure sewer facilities are available to serve the subject property from the north side and south side of Highway 3. The property owner will be responsible for paying the cost of getting the services to the property. The Montana Department of Transportation has jurisdiction on access from Highway 3, although the property already has a shared access that is expected to be used.  Other site development, stormwater, and traffic issues and impacts will be addressed after this property is annexed into the City and development is proposed. However, Public Works found that it is able to provide its services for the subject property of all development and service requirements are met.

The Fire Department and Parks Department did not have any concerns with this expansion. Fire can serve the property based on access and existing hydrants in the area. Parks did not expect any significant impact with only a few new homes expected on the property and supports the inclusion of the City park land adjacent to the south of the subject property in the Red area. There are not plans to provide services to park land in the future as it is along the rim rock cliffs.

MET Transit did not have concerns with this amendment, but pointed out that there are no plans for current or future bus services on Highway 3 in this area.

Planning supports including this property in the Red area based on the mitigation of impacts to the natural areas on the rim rocks with sanitary sewer and stormwater controls that will be required with future development in the City. The property is also very small in size and so overall service impacts are expected to be minimal.

The Police Department already serves properties along Highway 3 and in Rehberg Ranch Estates that are in the City in this area. The Police are able to serve this property but continue to monitor how any expansion of the City affects its ability to provide services.

City Administration did not have any specific concerns about the request, but did indicate that it would have been better to have all of the properties in this small area request the amendment together to be included in the Red and not have it done in pieces. There was discussion with the applicant regarding the interest of the neighboring property owners in being included in the amendment, but there was not interest from those property owners at this time.

Lot 1, Block 1, Long Subdivision, and Tracts 1A1 and 1B of C/S 1100
Property owner Knife River Corporation submitted a request through Sanderson Stewart to include Lot 1, Block 1, Long Subdivision, and Tracts 1A1 and 1B of C/S 1100 in the Red are on the Limits of Annexation Map. The 93 acre property is located west of Shiloh Road and north and south of Hesper Road. The property is currently zoned Agricultural Open Space and is used for gravel mining and business operations for Knife River. The property owner plans to develop the property for commercial uses similar to the existing development in Shiloh Crossing and Montana Sapphire subdivisions, both near Shiloh Road and King Avenue West. Staff does not support adding these properties to the Red area given concerns about being able to provide all City services and adequate levels of those services to the property.

The applicant originally submitted a request to include its entire property in the Red area, consisting of more than 400 acres of land. This proposal was then reduced to 227 acres of the Knife River property west of Shiloh. Concerns voiced by the Annexation Committee about the size of the property, timing of development, and scale of service demands then prompted the applicant to modify the request to 93 acres. This final change happened late in the Annexation Committee's review process and so an additional meeting of the Committee was held to review the 93 acre proposal.

Department Comments: Below are comments regarding this map amendment request provided by the various City Departments through the Annexation Committee. Overall, City staff does not support including this property in the Red Area on the Limits of Annexation Map at this time:

Public Works: Providing adequate water and sewer service to the subject property has been a concern of Public Works staff since the first very large Knife River request was received and has continued to the latest 93-acre request being discussed here. The primary concern is Zone 3 capacity and storage limitations for the City's water system. Public Works indicated that while routine supply may not be a problem in this zone, the risk of not having adequate supply to support emergency situations is a problem until more storage is in place. In addition, the Public Works Department is currently under contract with a local consulting firm to complete a water master plan update for the whole City, which will include this area. The updated master plan will be evaluating the existing pressure zones and water storage in each of the city’s pressure zones. This updated master plan is expected to be completed by spring 2013. Based on Zone 3 capacity and storage concerns and the upcoming water system analysis in the master plan update, Public Works is not recommending that the Knife River area be added to the Red annexation area until it has an opportunity to review the findings of the water master plan and determine the impact of the proposed development will have on the city’s water system.

The Fire Department: The City Fire Department currently serves the subject property as it is within the Billings Urban Fire Service Area. However, the current gravel extraction use of the property is very different than the proposed commercial uses that could be developed on the property. Fire shares the concern of Public Works regarding the emergency water storage capacity in Zone 3. The Fire Department relies on specific fire flows from the City water system for fire fighting purposes and does not want to commit to providing emergency services to an area if there may be issues with water availability. Further, the Fire Department continues to address staffing challenges with its ladder truck and is concerned about the height and type of buildings that might be built in this area from a equipment service standpoint. 

MET Transit did not have specific concerns with this amendment, but pointed out that there are no plans for bus services in this area of Shiloh Road to serve additional new development.

Planning found the reduced area requested for inclusion in the Red to be more realistic in terms of addressing some service impacts, but continued to have concerns about how quickly the property might develop and whether the proposed land uses were in alignment with the West Billings Plan. Information from the applicant and agent indicate that the development might be started in as little as 1 or 2 years, while build out might be 5 or 10 years, depending on market demands. Given the land already in the City and Red area that is partially developed or not developed at all in the area of the subject property, Planning staff is also concerned about the demand on City services that may occur in the existing City and Red area at build out.


The Police Department is able to serve the property as it is near existing patrol areas, but the Department continues to monitor how any expansion of the City affects its ability to provide services. The Department believes that it is critical that response time is adequate for the overall City and the more expansion that occurs the more difficult it becomes. The Police Department staff also clarified that while there is a Police presence at Fire Station 7, it is a part time presence and more people and equipment would be needed to go a 24 hour operation at that location.

City Administration did not have any specific concerns about the request, but shared the concerns stated by other staff regarding ability to serve the subject property while also maintaining services to all properties in the City Limits now or also already in the Red area but not yet annexed.

Two written requests for including property within the 2012–2016 Limits of Annexation Red Area were received from private property owners. As per the Annexation Policy requirements, Urban Planning Studies were completed by Sanderson Stewart on behalf of the property owners and distributed to the City Annexation Committee for review and comment. Public comment was formally taken at the City Council Work Session on April 2 regarding the proposed amendments to the Limits of Annexation Map. Informal comment also was provided during several of the Annexation Committee Meetings when the agents of the property owners and, in one case, an employee of the property owner, attended the meetings.

Agent Sanderson Stewart for Knife River Corporation provided input at several Annexation Committee Meetings and at the Council Work Session on April 2 on the Knife River proposal. Sanderson Stewart indicated to the Annexation Committee that reduction in the size of the property being requested down to 93 acres for inclusion in the Red area reflected both an effort to address the timing and scope of development of the property in the next 5 years and also to help reduce the potential impact to City services like water and sewer infrastructure and capacity. Sanderson Stewart also indicated that while the City has entered reimbursement agreements in the past for water and sewer infrastructure, as well as provided funds when system lines are sized to accommodate capacity beyond the property under development, that Knife River was aware that there would be no guarantee that it would recoup costs for building the lines itself when it planned to develop. Sanderson Stewart also indicated to the Annexation Committee that demand for retail services like what is being built in Shiloh Crossing continues to be high and this property would be well suited for this kind of development to serve this need.

A public hearing also is scheduled for this item on the City Council's May 14 Meeting Agenda and additional input from the public may be provided at that time before the Council takes action.

In making its recommendations, the Annexation Committee takes into consideration many plans and policies, including, but not limited to, the Water and Wastewater Master Plan, Stormwater Master Plan, Yellowstone County and City of Billings Growth Policy, Billings Urban Area Transportation Plan 2009 Update, neighborhood or area plans, and the CIP. The proposed revisions to the Map reflect an effort to be consistent with adopted policies and plans, and attempt not to favor one department’s ability to provide service over another department’s limitation.