Kalispell City Council poised to vote on $141M budget

Kalispell City Council is expected to vote Monday on the municipality’s final roughly $141 million fiscal year 2024 budget.

Council will vote on appropriations of $141,078,060 for the final budget, which is just over $2 million more than was estimated during preliminary budget hearings in July and up from the $115 million fiscal year 2023 budget. The city’s general fund, from which most municipal operations are funded, is set to come in at just under $16 million.

Landowners are expected to see a property tax decrease under the budget proposal. Property with a current market value of $100,000 will see taxes decrease by $34.78 while property valued at $300,000 will decline by $104.33 and property valued at $600,000 will drop by $208.66, according to budget documents

The meeting is scheduled for 7 p.m. at City Hall, 201 First Ave. E. It can also be attended virtually via Zoom.

The difference between the preliminary and final budget numbers is mainly attributable to money carried over from last year’s budget and Montana Department of Revenue tax values for the Westside Tax Increment Financing Fund coming in higher than anticipated, according to a memo by Finance Director Aimee Cooke.

The city’s general fund is slated to increase by around $360,000 over preliminary projections, including a $200,000 increase to the city facilities fund for building improvements, a $50,000 increase to both the fire and police funds for “an education campaign for a potential emergency responder levy,” and $30,000 to the general fund for a potential special election.

At previous budget hearings, Council and city staff discussed asking voters to approve increased funding for emergency services, and the corresponding budgetary changes keep the option on the table.

The Fire Department was also granted an additional $20,000 for paint and repair to Engine 631, and $33,000 was added in Council salaries to bring compensation in line with the current market, according to the memo.

Based on the state’s property tax assessment and the proposed budget costs, the city expects to collect about 13% more in property taxes this year than last. The city is requesting 139.82 mills this fiscal year, down about 15% from last year’s 165.58.

The difference is expected to be accounted for by the increase in taxable valuation as well as new development, according to Cooke’s memo. The state revenue department found about $2.4 million in newly taxable property in this year’s evaluation. Individual property taxes will increase or decrease based on how their taxable value was assessed versus last year’s value, with the city’s mill request factored.

Reporter Adrian Knowler can be reached at 758-4407 or aknowler@dailyinterlake.com.