The City Council and residents of the community continue to demand community planning services to improve quality of life, increase economic prosperity and encourage sustainable growth. Current local funding for community planning is not meeting this demand. For example, the Planning Division does not have the resources to coordinate a community discussion on infill or complete the required legislated changes to the subdivision and zoning regulations.  Both projects could have a significant impact on how the community grows.

To consider placing a 1 mill levy for planning services on the November 2, 2010 ballot, the Council must approve an ordinance amending the City Charter to add a planning mill levy and approve a resolution seeking voter approval of the amendment to the Charter. The public hearing and first reading of the ordinance amending the City Charter will occur at this meeting.  A resolution to place the charter amendment and planning mill levy on the November 2, 2010, ballot is also considered at this meeting because ballot language for the November 2 election must be submitted to the elections office by August 19.

A 1 mill planning levy will enable the City to provide more community planning services and bring more Federal funds to the community. A 1 mill levy will generate about $158,912.00 annually for planning services. A 1 mill planning levy in the City of Billings will increase the annual levy for community planning paid by a residential property owner in the City of a $100,000 home by approximately $1.24 per year and the owner of a $200,000 home by approximately $2.82 per year. This means that the total amount paid by the owner of a $200,000 home for planning services in the City based on the existing County-wide levy of 1.22 mills and the new City levy of 1 mill would be approximately $6.26 per year.

An increase in local funds for community planning services has been under discussion by the City and County for several years. The community continues to demand community planning services to improve quality of life, increase economic prosperity and encourage sustainable growth. Current local funding for community planning is not meeting this demand, and the Planning Division does not have the resources to move projects forward on a timely schedule or provide the level of customer service the community demands and has become accustomed.

Aside from minor inflationary adjustments and annual fluctuations in fees, local revenue for community planning has not increased since the County-Wide Planning District mill levy was put in place in 1984. Half the Planning Division budget is currently funded through Federal Transportation Planning funds; one-quarter through fees, and one-quarter through a County-wide 1.22 mill levy. Revenue from fee-based services is unpredictable while demand for community planning services is increasing, which has resulted in less community planning and a loss of local funds to match Federal Transportation Planning funds for the City. The only reliable source for matching funds is the planning mill levy, and to move the community forward necessitates an increase in this local funding source. About $2 million in Federal transportation planning funds could not be accessed in the last four years because of insufficient local matching funds. The Planning Division staff has provided an information sheet attached to this memo to provide additional background and information for the City Council to consider (See Attachment A).

The Board of County Commissioners has authority to place a question on the ballot to increase the County-wide planning mill levy of 1.22 mills. The Commissioners decided not to let the voters consider an increase to that levy at this time. The City Council may initiate a planning mill levy in the City of Billings of 1 mill to provide planning services and have additional local funds available to match federal transportation planning funds. Voters in the City of Billings will have to approve of a new planning mill levy.

To consider placing a 1 mill levy for planning services on the November 2, 2010 ballot, the Council must approve an ordinance amending the City Charter to add a Planning Mill Levy, and approve a resolution to seek voter approval on November 2, 2010, of the amendment to the City Charter and the addition of a 1 Mill Planning Levy in the City. The addition of a 1 mill levy for planning services in the City of Billings means that the total amount paid by the owner of a $200,000 home for planning services in the City would be approximately $6.26 per year. The owner of a $200,000 home in the City currently pays approximately $3.44 per year for planning services.

The public hearing and first reading of the ordinance amending the City Charter and the action on the resolution to place the amendment and the new mill levy on the ballot will occur at this meeting. The second reading of the ordinance to amend the charter is scheduled for the August 23 City Council meeting.  If the Council approves the ordinance on first reading and approves the ballot resolution but does not approve the ordinance on second reading, the ballot resolution can be withdrawn before ballots are printed. 






 

Consideration of an increase in the planning mill levy has been under discussion and presented at meetings of the Board of County Commissioners and City Council over the last several months. A special Joint City-County meeting was held on July 8 to discuss the County-wide Planning Mill Levy. All of these meetings have been open to the public. In addition, the process to pass an ordinance and amend the City Charter to have a new planning mill levy requires a public hearing by the City Council. This hearing has been advertised in both the Billings Times and Billings Gazette and anyone is welcome to attend the meeting and make comment. The Planning Division had not received any written comments on this issue at the time this memo was written.