Big Sky has grown into a vibrant community, but the infrastructure supporting it has not always kept pace. Water and wastewater capacity, transportation, emergency access, and wildfire preparedness are increasingly interconnected challenges. Addressing them will require coordinated planning, regional partnerships, and funding tools that can match the scale of the work ahead.
The Big Sky County Water & Sewer District supports the proposed creation of a Targeted Economic Development District, or TEDD, as a responsible way to help invest in the infrastructure Big Sky will need over the next 50 years.
What Are TEDD and TIF?
The terms are closely related, but they mean different things:
A TEDD is a defined geographic district created to address infrastructure deficiencies and support long-term economic development. (this is the structure)
Tax Increment Financing, or TIF, is the funding mechanism that may be used within the district. When taxable property value within the district grows above an established base-year value, the property-tax revenue generated by that growth—the “increment”—can be reinvested in eligible infrastructure projects within the district. (this is how it gets done)
Revenue generated by the existing base value continues to be distributed to the regular taxing jurisdictions. At the end of the TIF period, the increment is released and the full taxable value becomes available to those jurisdictions. The Montana Department of Revenue also explains that being located within a TIF district should not, by itself, change a property’s tax bill; it changes how a portion of the taxes collected is distributed. (Montana Department of Revenue)
Why the District Supports the Proposal
As Big Sky’s water and wastewater provider, the District sees the need for infrastructure investment firsthand. The community has limited wastewater treatment and disposal capacity, portions of the Gallatin Canyon continue to rely on smaller or decentralized systems, and the Gallatin River has been designated as impaired by the State of Montana.
The proposed TEDD could help support a coordinated approach to several important regional projects, including:
- Connecting the Gallatin Canyon and Firelight Meadows systems to centralized wastewater treatment.
- Expanding treatment capacity through a future phase of the District’s Water Resource Recovery Facility.
- Developing additional wastewater reuse and disposal options.
- Supporting infrastructure that may provide both snowmaking reuse and wildfire-suppression benefits.
- Coordinating water investments with transportation, emergency access, and wildfire preparedness.
These projects are not isolated from one another. Together, they could improve water quality, increase system reliability, support emergency response, protect recreation resources, and create a more resilient community.
Adding Another Tool to Big Sky’s Funding Toolbox
Big Sky has already relied on grants, Resort Tax funding, mill levies, private investment, philanthropy, and direct contributions from infrastructure providers. Those tools will remain important, but many are at or near their practical limits.
TEDD/TIF would not replace those funding sources. They would add another tool that could be combined with them to address large, community-wide infrastructure needs. By reinvesting a portion of future property-tax growth locally, Big Sky could make needed improvements before infrastructure deficiencies become more costly or difficult to solve.
Your Voice Matters
The proposed TEDD is not a ballot measure. Its creation will be considered by the Gallatin and Madison County Commissions. Commissioners have asked to hear from the residents, employees, property owners, businesses, and organizations that would be affected by the decision.
A letter does not need to be long. Introduce yourself, explain your connection to Big Sky, describe why reliable infrastructure matters to you, and ask the commissioners to support the proposed TEDD. Personal letters are especially valuable because they show how these issues affect real people, businesses, neighborhoods, and community services.
The Big Sky Chamber of Commerce has prepared letter templates to make the process easier. Completed letters may be sent to megan@bigskychamber.com. Letters received by September 4 will be included in the initial information packet, but the Chamber will continue collecting them until the commissioners make their decision. (Visit Big Sky)
Examples Employing TIF Tools
Enfield, New Hampshire — water and sewer
Enfield used a TIF district to finance a $3.2 million water and sewer extension along U.S. Route 4. By 2015, annual TIF revenue had reached approximately $303,843, compared with annual debt service of about $162,246. The town reported that the added revenue was partially attributable to development following the infrastructure improvements and used the healthy TIF balance to make an additional principal payment on the bond. Enfield’s later TIF plan continued to describe the project as a successful use of the district.
LaSalle, Illinois — water, sewer, roads, and industrial development
LaSalle issued a $2.98 million bond to extend water and sewer infrastructure to an industrial park, with the debt being repaid from real-estate tax increment. The resulting development included a 300,000-square-foot distribution facility that employed nearly 500 people, followed by two trucking terminals that added approximately 70 jobs. The district also funded or planned water towers, booster stations, water mains, force mains, gravity sewers, sanitary sewer extensions, and roadway access.
Yankton County, South Dakota — road, water, and electrical infrastructure
Yankton County established a TIF district for the Napa Junction Rail Industrial Park. The $7.725 million TIF project package included an industrial access road, electrical infrastructure, and water infrastructure. The district’s annual increment began exceeding debt service in 2018, and the project helped provide access to major agricultural and industrial facilities. Importantly, the developer guaranteed the debt and covered early shortfalls in 2016 and 2017—an excellent example of how a public entity can protect itself when projected growth takes time to materialize.
Denver, Colorado — transportation and utility infrastructure
Denver Union Station used real-estate tax increments as a primary revenue pledge within a broader funding package for a $518.6 million multimodal transportation project. The improvements included rail and bus facilities, pedestrian connections, streets, parking, and utility infrastructure. The project reached substantial completion in 2014, its $145.6 million federal TIFIA loan was repaid in 2017, and the surrounding project area subsequently added more than 200 stories of office, retail, residential, and hotel development.