Whitefish adopts $49.9 million budget

The Whitefish City Council on Monday approved a $49.9 million operating budget for the 2022 fiscal year, which includes funding for two new firefighters, increased property tax relief for homeowners and significantly less in capital expenditures than last year's larger budget.

City Manager Dana Smith told the council the budget will have the city spend down some funds more than last year, but the city still should be left with the equivalent of 40% of its budget in reserves when the fiscal year ends next June 30.

"As presented, the budget will support the city's endeavor to continue to provide exceptional services to our community, adjust to growth and demand, and improve our facilities while keeping our property taxes and assessments at a minimum," Smith told the council.

While property values have jumped with a recent round of reappraisals by the state Department of Revenue, Whitefish homeowners won't see all of that increase reflected in their city tax bills.

"A home that sees the average 17.49% increase in value will have a tax increase of about 1.31%," Smith said.

Property owners also will see relief in the form of rebates from Whitefish's resort tax, a 3% levy on hotel stays and other lodging, certain luxury items defined by city code, and food and drinks purchased at restaurants and bars (not including goods purchased at grocery stores).

The city typically remits one-quarter of resort tax revenue to property owners through credits on their tax bills. But last fiscal year, the city received $4.8 million in resort tax revenue, significantly more than the $4.25 million anticipated in the budget.

"As required by the voters, collections in excess of the budget must be returned to property taxpayers as additional property tax relief in the following year," Smith wrote in a letter to the council. "Therefore, there is a significant increase for property tax relief in FY22. Property tax relief for FY22 is $482,541 more compared to FY21, and $271,730 more compared to FY20."

City employees will receive a 3.5% pay raise, based on a formula that accounts for the increase in property values and a 1.5% increase in the U.S. Consumer Price Index, Smith said.

The city also is adding the equivalent of 3.375 full-time positions, including a full-time administrative assistant in the Building Department, additional hours for utilities and library employees, and two new full-time firefighters, for a total of 17 firefighters in the Whitefish Fire Department.

The city also will get a new wastewater treatment plant operator, but that won't count as a new position because of a reorganization that saw a utilities supervisor promoted to assistant public works director.

The council approved a preliminary budget in June and then made adjustments after receiving property valuations from the Department of Revenue. The city is still working out how exactly it will spend about $2.1 million in pandemic relief funding from the American Rescue Plan Act that Congress passed in March.

Assistant editor Chad Sokol may be reached at 406-758-4439 or csokol@dailyinterlake.com.