Bozeman DBP reviews draft FY26 budget, flags $4.7M for parking and $1.6M URD funds locked until 2027

Ellie, executive director, presented the DBP’s draft fiscal 2026 budget and an updated priorities list that places infrastructure, parking supply and transportation improvements at the top of the board’s work plan.

Ellie told the board the draft budget keeps management and administrative fees roughly level and includes planned allocations for park and streetscape projects, alley improvements, utility work and a proposed increase to the art/CPTED grant program. She said the IHO Peace Park recently received a $30,000 Montana Main Street grant and that the park site plan has been submitted to the city for review. Ellie said she expects approximately $500,000 will be needed for completion of that park project, and that the city is expected to match DBP funds for the buildout.

On parking, Ellie said the DBP has earmarked $4,700,000 of URD (urban renewal district) funds for parking supply and related public‑private partnership work aimed at employee parking and taxable value. Board members discussed reassigning some large encumbered housing funds toward parking if they become available. The meeting record shows one substantial URD balance — about $1.6 million tied to a property that will not revert to DBP control until a condition is met in 2027 — and staff repeatedly cautioned that the DBP cannot spend those funds until the deed/occupancy condition and city legal review allow it.

Terry Cunningham, representing city staff, provided a legislative update and said multiple TIF (tax increment financing) bills were in play; he said the League of Cities and Towns supports an amended TIF bill the board had discussed and that the most extreme “gutting” scenarios for TIF appeared less likely after negotiations with the chamber and other stakeholders.

Ellie reviewed programline items: alley improvements largely paid in the current fiscal year, a utility/ sewer support line, a proposal to increase the art/CPTED grant from $20,000 to $40,000, continued allocation for streetscape assistance and discretionary planning funds (term contracts) to allow the DBP to move quickly on small projects, and the continuing encumbrance of $200,000 in workforce housing reimbursements already approved. She said two residential incentive grants of $100,000 each are encumbered and likely to be reimbursed following project milestones.

Board members and staff also discussed Bozeman Creek. Terry and city staff described an engineering study to identify flood‑risk implications and opportunities to improve public access and linear park potential; city staff said the city will likely lead larger capital work while DBP remains a supporting partner.

Several board members urged clearer presentation of budget totals by project (planning + infrastructure combined) so the board can see total commitments per initiative. Ellie agreed to return with a work plan that ties planning and infrastructure allocations to project totals for the next budget review.

Administrative action: the board approved the minutes from the previous meeting by roll call. The meeting record shows three recorded aye votes: Nicholas Weicks, Tony Grensloft and JK Dusen.

No final budget amendments or project approvals were adopted at this meeting; staff will bring revised draft budget figures and a project‑level work plan to the board for future review.