Billings City Council approves FY 26 budget including tourism and business district assessments

In the heart of Billings, city council members gathered on June 23, 2025, to deliberate on pressing budgetary matters that will shape the community's financial landscape for the upcoming fiscal year. The atmosphere was charged with anticipation as council members prepared to address the annual assessments for the Tourism Business Improvement District (TBID) and the Business Improvement District (BID), alongside a preliminary budget for fiscal year 2026.

The meeting commenced with a public hearing on the proposed assessments, which would see an increase from $2 to $4 per occupied room night for the TBID. This additional revenue is earmarked to enhance marketing efforts aimed at attracting meetings and group tours, as well as to support local sports facilities. Representatives from both the TBID and BID were present to answer questions, and after a brief discussion, the council unanimously approved the assessments, signaling strong support for the initiatives aimed at boosting local tourism.

As the evening progressed, the council shifted focus to the fiscal year 2025 budget amendments. Finance Director Andy Zeller presented a comprehensive overview, highlighting a significant $20 million amendment related to the South Tax Increment Financing (TIF) fund. This adjustment was necessary to align with the accelerated timeline of ongoing projects. The council engaged in a thorough discussion, ultimately approving the budget amendments with a clear understanding of their implications for city operations.

The preliminary budget for fiscal year 2026 was also on the agenda, with Zeller outlining a proposed budget of $436 million, which reflects a $20 million reduction from previous estimates. This budget aims to establish legal spending authority while allowing for necessary adjustments in August. The council was informed that the budget includes provisions for personnel and operational costs, with a notable emphasis on maintaining public safety staffing levels.

Amidst the discussions, council members expressed concerns about the management of police overtime and vacancy savings. A proposal to eliminate the $500,000 vacancy savings in the police budget, offset by a reduction in overtime, sparked a robust debate. Some council members argued that this approach could lead to unrealistic expectations for managing overtime costs, while others emphasized the importance of fully staffing the police department.

As the meeting drew to a close, the council voted on various amendments, including one aimed at allocating funds for a housing program study and another to support city boards and commissions. While some proposals garnered unanimous support, others faced opposition, reflecting the diverse perspectives within the council on how best to allocate resources for community needs.

The evening concluded with a sense of purpose as council members recognized the importance of their decisions in shaping the future of Billings. With the preliminary budget set and assessments approved, the city is poised to navigate the challenges ahead, ensuring that it remains a vibrant and thriving community for its residents and visitors alike.