Flathead County residents can expect a 1.8 percent increase in property taxes for the coming fiscal year.

The increase translates to about $7.56 annually for the owner of a $200,000 home, according to the county’s proposed final budget.

The Flathead County commissioners will vote on a final budget following a public hearing on Wednesday. The hearing begins at 10:30 a.m. in the commissioner chambers at the Courthouse.

“The impact to taxpayers is probably the most important part” of the budget, county Administrative Officer Mike Pence acknowledged in his budget memorandum to the commissioners.

The total taxable value for the county decreased from $257.4 million to $231.8 million in valuations calculated by the state Department of Revenue. Because of Flathead’s lower valuation, the county proposes to increase its total mill levy by 13 percent.

“This large increase is due to the 9 percent reduction in total valuation and does not reflect in actual tax increases to individual taxpayers,” Pence said. “In reality many of our taxpayers will see no increase in county property taxes as property added with new construction will cover most of the 1.8 percent actual increase in county property taxes.”

The county will collect $35.3 million in property taxes in the coming year, compared to $34.7 million last year.

Total expenditures are projected to be $105.2 million, which includes $18.6 million for capital improvement projects. The county is completing some large projects this year, including the renovation and expansion of the old jail building south of the Courthouse and construction of the South Campus building in that same area.

Also included in the proposed final budget is a $3 million transfer from the general fund for the purchase of the Walmart property in Evergreen that is being considered for a public safety facility that would include the county jail.

The final budget pencils in a 1.6 percent cost-of-living raise for county employees, which totals $343,223.

The county is increasing its work force from 506 to 524 full-time equivalent employees. The maintenance department is getting two more full-time employees and other departments are getting some additional part-time help, while the Clerk and Recorder’s Office and Agency on Aging are each reducing staff by one employee.

Most of the increase in employees — 15.5 full-time equivalent workers — is for additional public health programs, which have full funding from federal and/or state grants.

Cash reserve funds will decrease 6.7 percent, due largely to capital improvement program transfers that are non-tax levy funds, Pence said. Flathead County’s cash reserve level will be about 23 percent next year; 33 percent cash reserves are allowed by law.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.