County preliminary budget shows increase due to spending ARPA funds

Flathead County commissioners on Thursday unanimously approved a preliminary budget for fiscal year 2024 that takes into account plans to spend American Rescue Plan Act funds.

The commissioners approved a budget total of $126.8 million in expenditures. This is an increase of about $11.2 million over the previous fiscal year budget.

The county’s fiscal 2023 budget amounted to $115.6 million.

The increase in spending comes as the county expects to spend a portion of the $12 million in ARPA funds it previously received.

“The money has been sitting in the bank and now the expenditures are rolling in,” said Flathead County Finance Department Director Amy Dexter in explaining the increase in expenditures.

The county set aside ARPA funds of $10 million for a proposed regional septage facility and another $2 million toward water and sewer districts in the county. The budget reflects spending those funds.

Commissioners will adopt the final budget in August after the Montana Department of Revenue releases the county’s taxable valuation numbers. The preliminary budget shows revenue in the amount of about $109.6 million.

Dexter said that figure is a “worst-case scenario.”

“That number doesn’t include new taxes since we haven’t gotten those new numbers yet,” Dexter said. “That revenue part will change once we get numbers from the state in August.”

The preliminary budget shows the tax mill levy at 145.64, compared to fiscal 2022 with 143.86.

The increase in the mill levy is the result of a planned increase in the levy directed to the Flathead City-County Health Department budget.

Commissioners in May approved a pay raise of 4% for most county employees and 9% for deputy county attorneys. The cost of living pay increase is included in the budget.

“Even with that increase, we’re only projecting a 2.9% increase in our tax levy,” Dexter said.

The preliminary budget projects 22.6% in cash reserves for the funds supported by property tax dollars. Under state law, the county is allowed 33% in cash reserves.

Commissioners on Thursday also approved the county’s capital improvement plan for fiscal years 2024-2028. The planning document is used by the county to identify the future timing of capital needs, estimated capital costs and funding sources. The document projects the need to spend $127 million on capital projects through county-funded sources, as well as other resources including grants, fees and bonds.

Features Editor Heidi Desch may be reached at 758-4421 or hdesch@dailyinterlake.com.

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