Billings council approves FY2026 budget amendments including tax‑credit transfer authority and facility funds

The Billings City Council unanimously adopted five FY2026 budget amendments that finance several administrative transactions and reallocate reserves, finance staff said at a public hearing.

Finance Director Andy Zeller described the largest item as budget authority to move funds related to a historic tax‑credit arrangement with First Interstate Bank. Zeller said the city received gross tax‑credit payments of about $6,000,000 this fiscal year and described $12,800,000 as the transfer authority needed across funds to complete accounting for the transaction. He said the net benefit to the city after fees and costs was roughly $5.2 million.

Other amendments included: establishing approximately $70,800 in authority in the facilities and public‑safety fund to address incinerator testing and animal‑shelter expenses; adding about $1,200,000 of authority to the city hall debt fund to complete tax‑credit transaction accounting; authorizing capital replacement fund spending tied to the recently approved Axon software/equipment contract for police; and reestablishing city hall construction funds after delayed Motorola invoicing.

Zeller explained that the Motorola contract invoicing timeline produced an accounting mismatch: earlier the city had moved leftover funds into city‑hall debt reduction when Motorola had not invoiced for months; when Motorola later submitted invoices, staff had to restore funds to complete that contract. The original Motorola purchase order was described as being over $10,000,000; subsequent invoices were reported later in the year.

Council members had no public opposition at the hearing. Council moved and adopted the amendments after Zeller’s presentation; Zeller offered to provide detailed debt figures for the council by email on request. The motion to adopt was approved unanimously.