The South Billings Urban Renewal Association, (SBURA) is pushing to be heard as questions grow over how three separate tax increment finance (TIF) districts in the city should be administered.
Last month, Deputy Mayor Mike Boyett highlighted two key questions:
- Should one person oversee all three?
- Should a city employee be the administrator?
No formal proposals have been submitted, and Boyett is waiting to hear from the rest of the Billings City Council at a work session scheduled for April 6.
Watch SBURA TIF story here:
Most recently, TIF money has partially funded the construction of the ice arena at Amend Park, and the three districts have funded dozens of other projects throughout the city.
“The crown jewel of the TIF district here in the SBURA is the Amend Rec Center,” said Tim Goodridge, SBURA community liaison.
Goodridge, who works and owns City Blue Productions, was recently hired by SBURA.
Tax increment financing, or TIF, captures a portion of property tax from an area designated as blighted and reinvests it back into that area. Supporters say the districts help boost the overall value of the area, creating a larger tax base.
The rate of growth in taxable value in the south Billings district rose 98 percent from 2009 to 2025, according to Goodridge.
"Why would you want to reorganize the whole thing and then risk some unintended consequence?" Goodridge asked. "That's going to reduce the performance of the district that's already growing."
He says during the same period, taxable value in other areas of Billings rose 61 percent.
“My job is to work in the interim between Dick (Zier's) passing and the consolidation efforts by the city council to help the SBURA navigate all that stuff,” Goodridge said.
The "stuff" to which he's referring happened last month, when Boyett asked the City Council if it might be better to have one person manage all three TIF districts.
According to Boyett, the city council has approved $665,000 for the three districts in the fiscal year ending June 30:
- SBURA - $160,000
- East Billings Urban Renewal Disrict - $179,000
- Downtown Tax Increment Finance District - $326,000
Boyett says consolidating management could save money.
Goodridge says the current system is working well and any change would save a minimal amount.
Meeting minutes from March 3 show with Boyett’s question that SBURA made an immediate change from its nonprofit classification of a 501(c)6 to a 501(c)4, which the IRS states allows lobbying.
Billings resident Kevin Nelson has been following the TIF debate closely.
“Well, I think it's just really poor governance when you've got an organization all of a sudden becoming a C4,” Nelson said. “So we're paying tax dollars to get a lobbyist to lobby a council member that sits in an advisory position. I mean, you're lobbying yourself.”
Goodridge says lobbying is not his role and the change was made because SBURA is no longer a membership organization.
His firm was hired to replace prior consultant Dick Zier, who recently died at age 77, and Goodridge said nothing needs to change.
“The City Council already has the tools in place to affect the administrative costs of the TIF districts,” Goodridge said.
“Have one board that oversees all the TIF districts," Nelson said. “All the TIF applications come to the one board. The one board makes the decision, makes a recommendation.”
