A proposed final budget of $65.5 million is the centerpiece of tonight’s Whitefish City Council meeting.

The council will hold a public hearing prior to adopting a budget for the fiscal year that began July 1, which is about $11.8 million, or just over 25 % higher than last year, due largely to anticipated loan proceeds to finance upgrades to the city’s water and wastewater treatment plants.

The city had anticipated a status quo budget this year, but after funding from the CARES Act — federal money available because of COVID-19 — was made available to local governments in June, and after receiving the city’s certified taxable valuation on Aug. 3, the total property tax levy was decreased by 10 mills, or the equivalent of $402,194 city-wide, according to the budget transmittal letter.

For a home valued at $370,000, the savings is about $50 for the year.

Generally, Whitefish’s growth rate in a non-reappraisal year is 2 to 3%, but with the city’s Tax Increment Finance District expiring on July 15, the city recognized a significant increase in its newly taxable property, according to City Manager Dana Smith’s report.

One area of uncertainty in this year’s budget is resort tax revenue, which has been adversely impacted by the pandemic.

With COVID-19 in mind, the city plans to bolster its cash reserves — money that’s set aside for emergencies such as a pandemic. Budgeted cash reserves at the end of fiscal year 2021 have increased nearly $1 million, from $1.55 million, to $2.53 million in property tax supported funds.

The council will consider a five-year capital improvement plan that calls for 124 projects totaling about $62 million over the next five years. More than 85% of the capital project costs are related to the wastewater and water plant upgrades to meet state mandates.

Other big-ticket capital expenses through 2025 will be streets, penciled in to receive $2.7 million, and $1.78 million for fire and ambulance services, largely for equipment purchases.

Capital spending in this year’s budget is $10.9 million more than last year, again due to the water and wastewater treatment plant upgrades.

Most city employees will get a 2% pay raise, plus a 2% step increase.

During a work session that begins at 6:15 p.m. at City Hall, the council will review and discuss a report on shared micromobility, which is the shared use of a bicycle, scooter or other low-speed device that enables user to have short-term access to a mode of transportation on an as-needed basis.

The council’s regular meeting begins at 7:10 p.m., also at Whitefish City Hall.