Bozeman City URD board approves amended FY2026 budget, work plan

The Bozeman City Urban Renewal District (URD) board approved an amended fiscal year 2026 budget and an amended 2026 work plan at its meeting, voting unanimously to move the documents forward for final consideration by the City Commission.

The board approved the amended FY2026 budget after a line-by-line review of projected revenues and expense allocations. The amended budget increases funding for parking planning and supply, raises several grant and capital allocations for streetscape and parks projects, and maintains the city interlocal share at $2,598,800, the presenters said.

Ellie, a staff member who presented the budget, said the starting cash balance is a carryover from FY25 and that the budget includes both projected carryover and newly allocated funds. She described key allocations: $250,000 for park improvements (with roughly $200,000 directed to Peace Park and $50,000 for Soroptimist updates), $50,000 for Bozeman Creek improvements, $10,000 per year for active transportation projects (including a portion for the Platte Avenue bike project), and an increase in the art enhancement and CPTED grant from $20,000 to $40,000. Ellie said the board has prioritized parking supply, management and data collection and proposed increasing the parking allocation from $20,000 to $5,000,000 (including rollover cash balance and added funds).

The board also discussed program and grant items: the Streetscape Assistance Grant (a popular reimbursement program), life safety and enhancement grants (encumbered across years), a residential incentive grant (discussion referenced existing encumbered grants and a proposed increase to allow additional residential grants), and continued encumbrance of Fire Station 1 funds into FY27. Ellie said staff will continue planning for parklets ("pedlets"), pursue an encroachment permit through the URD for a pedlet pilot, and work with a property owner on South Wilson on a formalized pedlet program.

Board members asked for clarity about where cash balances are held and whether those funds earn interest. Chuck Winn, interim city manager, said the URD funds are invested as part of the city's portfolio, with security prioritized, and reported that the funds earned about "3.75%" interest last month; he said interest is deposited back into the URD fund. Ellie said she will follow up with finance to confirm how interest income appears on the budget and where balances currently sit.

Board discussion also addressed budgeting practice: several members asked whether zero-dollar line items that have carried for years should be retired or reclassified, and whether the board should create clearer multi-year parameters for funding categories that repeatedly carry forward. Ellie and other board members discussed options including condensing budget lines and adopting a five-year work-plan approach to clarify priorities before the URD sunsets.

After discussion, a motion to approve the amended FY2026 budget was seconded and carried by roll call: Skye Cook (aye), Tony Renzo (aye), Jake Van Dusen (aye), Marlee McKenna (aye), and John Howe (aye). The board then made and approved a separate motion to adopt the amended 2026 work plan by the same unanimous roll-call vote.

Ellie said staff will present the approved budget and partnership BID budget to the City Commission on May 6 as the next formal step.

Quotes attributed in this story are from participants listed in the meeting record; absent speakers or unidentified commenters are not quoted here.