BILLINGS—New homes are going up across the Billings West End, but the city's stormwater system doesn't reach them.
A proposed $967 developer fee for every new home built could help change that, though the cost may be passed on to home buyers.
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The Billings City Council held a work session on the proposal Monday, directing city staff to continue the process. A full vote on the stormwater system development fee is scheduled for Oct. 26. If approved, the fee would take effect Jan. 1, 2027.
"In essence, it's development paying for development's contribution to the stormwater system," Tyler Westrope, the city's development services engineer, said.
Large parts of the West End are growing with no city stormwater pipes in sight. Developers in those areas must manage stormwater runoff on their own property and using up land that could otherwise be developed.
"People are having a lot of challenges of where to drain their new subdivisions or their new developments because we don't have anywhere for them to go to," Westrope said.
Billings developer Greg McCall, who served on the city's committee to help design the fee, said housing costs in Billings are already high and new fees add to the challenge.
"How can we get people into homes? How can we get young families into homes?" McCall said.
"Any fee, unfortunately, does impact the cost of housing and construction and development," McCall said." Everyone is very, very cognizant and aware of new costs."
McCall said the fee would likely trickle down to home buyers, with the final amount varying by builder. His 44 West Subdivision is among the new developments rising in the West End outside the city's existing stormwater service area.
"For us, it may be a thousand dollars. But that could be as much as $1,200 to another builder…or it's $1,500," McCall said.
Safety is also part of the equation. Reports from September showed streets flooded with water having nowhere to go. The added infrastructure in the West End could help mitigate that.
Westrope said the fee structure is designed to be equitable, with larger properties paying more and smaller, more affordable homes receiving a lower assessment.
"This is the most equitable way to help pay for new infrastructure between new development and existing ratepayers," Westrope said.
Building infrastructure sooner also has financial logic, Westrope said.
"Otherwise, you are losing against inflation…So the quicker you can build your infrastructure, the better," Westrope said.
Though McCall voiced concerns about costs, he acknowledged the value of the project.
"Is it a greater good, and is it important? Yes," McCall said.
