Big Sky’s Capital Improvement Plan (CIP)
Big Sky has a long history of embodying the mantra ‘Better Together.’ Recognizing the value of community input and participation, the BSRAD Board collaborated to create a framework that reflected our community’s shared aspirations. In 2019, we adopted the Our Big Sky Vision and Strategy, serving as a guiding document created by the community…for the community.
In order to strategically invest in that vision, the Capital Improvement Plan (CIP) was created as a blueprint for the thoughtful investment in Big Sky’s infrastructure and public amenities. This document is not meant to sit on a shelf as the previous one did—it’s a dynamic guide designed to evolve alongside our community.
The CIP brings to life years of planning in the form of large-scale (and in many cases costly) projects. Through years of collaboration with project sponsors, BSRAD is advancing the outlined strategies articulated by the community.
Projects of this scale ($1,000,000+) are not a good fit for the annual grant cycle. As such, BSRAD has worked with project sponsors to vet projects for feasibility, and develop multi-source financial strategies to fund critical investments. Resort Tax is only one of many potential financial sources for projects; others can include federal and state grants, philanthropic contributions, and public-private partnerships. By thoughtfully coordinating multiple funding streams and prioritizing key projects, we ensure that Big Sky continues to thrive as a vibrant, livable destination for generations to come.
This page provides a deeper dive into the CIP and BSRAD’s role in helping fund these projects. We are currently at the stage in process in determining some voter-approved commitment from Resort Tax. This may or may not include a bond, depending on the project and public sentiment. What it won’t include is an increase in taxes.
We invite you to join the conversation and stay engaged.
FAQ
Why is the BSRAD Board considering an election in May?
Statute only allows for Resort Tax voting in May. Our next opportunity for a public vote is May 2025. The reason the BSRAD Board is considering voter approval is so we can expand our financing tools to fund Big Sky’s future TODAY.
The current Resort Tax terminates in 2032
In order to ensure this remains a reliable funding source for critical community projects well into the future, voters must renew the term of the Resort Tax. Big Sky voters have traditionally renewed Resort Tax at the first opportunity available, which is halfway through the current term. We are currently well beyond that mark. Additionally, the extended term provides a more favorable scenario if the voters chose to bond, offering greater flexibility and cost efficiency for financing large-scale investments.
Impacts of 1% for Infrastructure sunset
Understanding the need for large-scale infrastructure investment, voters approved the additional 1% for Infrastructure in 2020 for two specific projects. While increased Resort Tax collections have accelerated the timeline for paying off one of these commitments – the Water Resource Recovery Facility (WRRF), inflation has significantly impacted the feasibility of the second – Gallatin Canyon sewer project. The original funding level is no longer sufficient to cover the project’s costs, and without securing additional funds, the project may not be able to move forward as originally intended. Failing to extend the 1% in time could cause it to expire, disrupting business tax processes and denying the community an important infrastructure funding source.
Need for expanded financing tools
Over the past few years, evolving community needs have prompted BSRAD to expand from a traditional grant-making model to include long-term public financing and capital investments. Since initiating the CIP in early 2023, BSRAD has worked diligently to identify and advance critical infrastructure projects that will shape Big Sky’s future. These large-scale initiatives require diverse funding sources. As just one of these sources, resort tax must broaden and enhance our own financing tools, including bonding, to maximize our impact. Without these tools, saving for major projects would take years—during which costs would escalate due to inflation and rising construction costs—requiring a shift from available grant funds to reserves and ultimately delaying community benefits.
How does the Board ensure thorough due diligence is conducted before committing public funds to large-scale financial investments?
Big Sky Resort Area District is a public entity governed by Montana Code Annotated and a 5-member Board elected by the residents of the District. The District and its Board are required to comply with all applicable regulations for local governments to ensure transparency.
Montana Statute
State law strictly regulates the use of public funds, mandating processes such as appraisals, competitive bidding, and adherence to established financial protocols. BSRAD is committed to transparency, which includes compliance with Montana’s open meeting laws, clear communication, public access to financial records, and rigorous adherence to statutory requirements.
Legal and Financial Oversight
Additionally, the Board collaborates with legal and bond counsel to review the financial, legal, and regulatory aspects of each investment. This ensures all projects comply with applicable laws, maintain fiscal responsibility, and align with the community’s long-term goals.
The CIP outlined over $750M in need - how are we paying for this?
A common misconception is that the projects identified in the CIP are sponsored by resort tax. While this is not the case, the cumulative total is a cost summary of projects identified by community service providers. The current total project cost consideration is approx. $325M, of which BSRAD is considering financing approx. $100M.
- Refining the list
Since the release of the CIP in September 2023, BSRAD has diligently worked to refine the initial $750M list of infrastructure needs into a more manageable, actionable set of projects. Through months of vetting, public reporting, questionnaires, and direct conversations with project sponsors and partners, this process has identified a prioritized list of projects that are ready to move forward.
- Diversified funding sources – BSRAD is not paying for it all
- Resort Tax may play a role in financing approx. $100M, but it is just one piece of a larger puzzle that includes federal and state grants, philanthropic contributions, and public-private partnerships. For example, the Spanish Peaks Fire Department, identified as a priority project in the CIP, found alternative funding as a solution. This project is funded by homeowners through a rural improvement district, a special taxing district to homeowners in the area, with no additional cost to the public at large.
- A potential bond – no new taxes
- Some, but not all projects, may require borrowing against future resort tax collections. This could be done in the form of a voter-approved bond. It is important to know that Resort Tax bonds would not increase taxes—they simply reallocate future collections to fund critical infrastructure today. This balanced approach ensures that immediate needs are addressed while safeguarding Big Sky’s long-term fiscal sustainability, all without changing the rate of resort tax, which is currently a 4% sales tax.
How will the District’s decision to take on debt impact the annual grant cycles for government and nonprofit organizations?
Over the past several years, the District has worked to bring in more predictability for our annual budget and how we allocate public funds.
Stabilizing the grant cycle
Large-scale, unforecasted funding requests have become a regular occurrence in the annual grant cycle. This makes it challenging to budget effectively and make strategic investments. By incorporating predictable debt service payments along with 3-year interlocal agreements, we can create a more stable and predictable cash flow. This approach allows us to plan more effectively, ensuring the grant cycle continues to support meaningful community projects without the unpredictability of ad hoc requests.
Balancing grants and debt service
BSRAD’s annual grants for government and nonprofit organizations are funded through the 3% Resort Tax collection, separate from the 1% for infrastructure. While taking on debt will have some impact on the availability of grant funds, statutory limits ensure that debt service remains within manageable levels.
Important Documents and Links
2011 Big Sky Capital Improvement Plan
(12.28.11)
12/5/24 Special Meeting
11/14/24 Board Meeting
10/9/24 JCC and BSRAD Board Meeting
9/11/24 Board Meeting
All BSRAD meeting recordings and materials can be found HERE.
Articles
The Big Sky Way: Not all taxes are created equal
Funding public projects requires a variety of tools, and in Big Sky, property taxes and resort taxes are two of the most impactful. While both serve the common goal of supporting public needs, they differ significantly in function, particularly when it comes to bonding.
The Big Sky Way: To infinity and beyond
For over 30 years, this tax has shaped Big Sky, funding critical infrastructure, services, and community projects. To continue building a vibrant and resilient community, renewing and extending the resort tax is essential.
The Big Sky Way: Funding our future
A Capital Improvement Plan is a comprehensive strategy that details major capital investments required for a community’s long-term growth and sustainability. Updated in 2023, Big Sky’s CIP identifies essential projects designed to address key infrastructure deficiencies throughout the boundary of the Big Sky Resort Area District.