Columbia Falls' budget calls for tax increases

The Columbia Falls City Council approved a 2024-25 budget last week that calls for a tax increase on homes and properties in the municipality owing to the addition of a police officer and a bump -- in some cases significant -- in overall expenses.

Under the $5.097 million general fund budget, homeowners with an assessed value of $100,000 would see a tax increase of $52.64; $300,000, an increase of $156.41; and $600,000, an increase of $312.82.

The city’s 3% resort tax worked as it was designed, said former City Manager Susan Nicosia, who was contracted to complete the budget. It reduced the tax levy about $371,785.

Under the law, 25% of the resort tax must go toward property tax relief. Last year the city had about $800,000 in resort tax to apply to city property tax relief, because it had underestimated the amount of revenue it expected to receive. In that case, state law required that the over-estimate also go toward property tax relief.

This year, the city adjusted the tax estimate, and it came close to what the city expected: just under $1.5 million. The law splits that into 25% for tax relief; 55% public safety (fire and police); 14% for infrastructure; 5% back to businesses for administering it; and 1% for city administration.

The greatest general budget expenditure is the Police Department, with 11 officers, a chief and an administrative assistant. Including the cost of the vehicle fleet and salaries, the Police Department's budget is just under $2 million.

The Fire Department budget, which includes a chief and three full time firefighters, is about $690,000.

The city is also looking at other large budget items in the upcoming year. Fifth Avenue West needs a rebuild with new water lines. That’s expected to come in at about $1 million for three blocks of work. The road is in such poor shape now that it’s closed to everyone but homeowners who live there.

In addition, the city’s parks budget is about $295,000 this year and the swimming pool has a budget of about $145,200. The pool building needs a new coat of paint.

The city also boosted its planning budget about $50,000 over last year as it works on a new growth policy as dictated by state law. City employees also saw pay increases, depending on what union they were in.

Copies of the complete budget are available at City Hall.