Flathead County OKs $105.2 million budget

The Flathead County commissioners unanimously approved a $105.2 million budget on Wednesday, commending department heads for continued fiscal diligence.

No one commented during a public hearing held before the final fiscal year 2016 budget was passed.

The budget is close to $4 million bigger than last year, but much of the difference is fund transfers to pay for capital improvement projects. The county has earmarked $18.6 million for capital improvement projects, some of which already are underway, including the South Campus Building and the renovation and expansion of the old jail building south of the Courthouse.

The commissioners were especially pleased with the $3 million planned transfer from the general fund for the purchase of the Walmart property in Evergreen for future use as a public safety facility and county jail.

“When I was on the Whitefish [City] Council we borrowed most of our money” for capital improvements, Commissioner Phil Mitchell said. “The county does not, and that’s rare. It’s fiscally responsible to have the funding first before spending the money.”

Commissioner Gary Krueger agreed, saying the $3 million transfer for the Walmart facility will benefit the county for 50 years to come.

“We’re not relying on PILT (payment-in-lieu-of-taxes) to hold our county together,” Krueger continued, adding that instead of having to pass a sizable bond issue for a new jail, the county now can likely pay for it from the general fund.

“That’s unheard of,” Krueger said.

Flathead County residents generally will see a 1.8 percent increase in property taxes for the coming fiscal year.

The increase is about $7.56 annually for the owner of a $200,000 home.

The county will collect $35.3 million in property taxes in the coming year, compared to $34.7 million last year.

“In reality many of our taxpayers will see no increase in county property taxes as property added with new construction will cover most of the 1.8 percent actual increase in county property taxes,” county Administrative Officer Mike Pence said during his budget message.

Of the additional $622,906 to be raised this year in property taxes, $558,904 of that is covered by taxes from new construction, Pence said.

The remainder — $167,124 — is only a 0.2 percent increase on the tax base before new construction or new taxpayer contributions.

“That’s pretty darn close to a freeze,” Pence said. “Many taxpayers will see an actual reduction in county-levied property tax this year.”

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.