The City approved a resolution to modify the East Billings Urban Renewal District (EBURD), which included tax increment authority.  The City has been working with DA Davidson on selling Tax Increment bonds.  The proceeds of the bonds will be used for full street construction, sidewalk, bulbouts at the corners, on-street parking, street lights, new sanitary sewer, new water mains, and storm drain upgrades.

The resolution sets limits for the principal amount, the interest rate and the maturity of the bonds. The maximum aggregate principal amount of the bonds shall not exceed $3,300,000; the maximum interest rate shall not exceed 5.25%, and the maturity shall not exceed 25 years from the issuance date.

City Council may:

• Approve, or;
• Disapprove the parameters resolution.

 The annual debt payments will be approximately $242,000.

Staff recommends that the City Council approve the resolution authorizing the issuance of the bonds through a negotiated sale and sets the parameters.