Billings council declines to direct staff to draft ordinance on HB 231 mill allocations

Billings — The city council debated how to treat an estimated 34.71 mills created by the state’s HB 231 and voted down a motion to ask staff to draft an ordinance to define how those mills should be allocated.

Staff corrected an earlier packet error and sought policy direction on whether the council wanted a formal ordinance, which proponents said would protect voter intent by keeping new mill revenue aligned with existing voter‑approved levies for library, transit and public safety. Opponents said an ordinance could unnecessarily restrict the council’s budget discretion and risk future tax shifts, arguing that transparency is achieved through the annual budget process rather than a levying ordinance.

Council member Robeson moved to direct staff to prepare an ordinance for consideration at the next business meeting; Council member Shaw seconded. The motion failed on the voice vote. Four council members — Repsis, Cole, Gulick and Shaw — were recorded as voting in favor; remaining council members present voted in opposition.

Supporters of the ordinance argued the legislature did not intend to give cities a “blank check” and said placing the allocation language in city code would make future councils more likely to respect the proportions approved by voters. Critics said HB 231 is ambiguous and that locking allocations into ordinance form could force the city into unintended tax increases or reduce budgetary flexibility, particularly while union contract and public safety costs remain uncertain.

The council did not take further immediate action on the question; staff indicated they will continue to provide information and that the topic may return for additional discussion or a future formal proposal.