Tax relief would vary in new 911 district
Taxpayers in Whitefish, Columbia Falls and Kalispell will receive differing levels of tax relief from city governments if a countywide special taxation district goes into place next year to raise $1.9 million annually for the Flathead 911 Emergency Dispatch Center.
Flathead County commissioners passed a resolution of intent to create the special district on Oct. 28. Notices to protest the measure were sent out last week and people have until Dec. 29 to vote against the measure. If more than 10 percent of the value of the district is protested, the measure will go to a vote by the public. If more than 50 percent of the value is protested, the issue is dead for a year.
The commissioners must take a final vote on the measure before Dec. 31 to get the $25-per-household annual assessment on next year’s tax rolls. Businesses would pay between $50 and $1,000, based on a sliding fee scale based on anticipated likelihood of the business needing emergency services.
The plan has been touted by county and city officials as a solution to the long-term funding needs of the 911 center, which was created in 2008 after voters approved a $6.9 million ballot measure to consolidate dispatch in the county.
Part of that funding was $800,000 in bonds for capital improvement. The bonds are expiring, creating a $500,000-per-year need for capital improvements.
“This whole proposal provides capital funding for the 911 center in the future and makes everyone pay on a fair and equal basis throughout the county,” Whitefish City Manager Chuck Stearns said.
“Your right to 911 should not depend on how much property tax you pay.”
Currently each individual city imposes a tax for 911 dispatch services, as does the county, meaning city taxpayers are taxed twice for the service.
The Whitefish City Council passed a measure in 2014 when a similar funding proposal was up for a public vote. The measure is still in place and calls for the City Council to roll back its tax rate 7.51 mills through fiscal year 2016 if the special district is created. That will result in a reduction in revenue equivalent to the $160,240 budgeted for emergency dispatch in the current fiscal year.
The measure calls for the council to re-evaluate the plan in fiscal years beyond 2016.
Kalispell City Council also has passed a resolution stating its intent to roll back the tax rate.
“The intent is to be as tax-neutral as possible,” Kalispell City Manager Doug Russell said.
Under this plan, Kalispell’s mill levy would be reduced by 7.64 mills, which would reduce revenue by $301,780 for fiscal year 2015. In the current fiscal year the city has $470,000 budgeted for emergency dispatch services.
Kalispell computed the mill reduction by estimating how much tax rollback was needed to get a $25 reduction on tax bills for a $250,000 home, Russell said.
“They may save more than $25,” Russell said. “They may save less. Council’s intent was to keep it revenue-neutral for homeowners.”
In Columbia Falls, there is not a formal plan that will go into place if the special district is created. In Columbia Falls the tax disparity is greatest between neighbors: People who live on one side of the street and are in the county pay 6 mills for emergency dispatch services while city residents across the street pay 22 mills for the same service.
The city will pay $115,000 in the current fiscal year for dispatch services.
“When the special improvement district goes into place, the council will evaluate whether or not they reduce the mill levy by that amount,” Columbia Falls City Manager Susan Nicosia said.
The council could vote to reduce taxes equivalent to the entire amount currently spent on dispatch or partially reduce the amount and use some of the funding previously earmarked for 911 dispatch funding for other purposes, Nicosia said.
“Columbia Falls is very fiscally conservative, and always when considering a budget they take the taxpayer burden into consideration,” Nicosia said.
Reporter Megan Strickland can be reached at 758-4459 or mstrickland@dailyinterlake.com.