Kalispell City Council on Monday adopted a $115 million budget for fiscal year 2023.

The budget means a tax increase of about $25 annually for a home valued at $400,000, according to the city.

City Manager Doug Russell said during the preliminary budget process that officials had anticipated needing to levy all of the municipality’s available mills, but through savings from last year’s budget was able to move funds forward to assist with the new spending plan. The city is levying 145 mills, which is 10 mills below what it is authorized to levy.

Savings came from planned expenditures that were not made and through vacancy savings in staffing, he noted.

“This is a good position to be in,” Russell said. “When we set the preliminary budget we had anticipated taxing to capacity for state law. We were able to apply that additional amount that was higher than anticipated to provide additional funds.”

“I’m happy we were able to mitigate the overall increase,” he added.

The total budget of $115 for FY23 compares with the FY22 budget total of $104 million. The city in FY22 levied 141 mills.

Several Councilors thanked city staff for finding ways to keep costs down especially in a year when inflation affected operating costs.

“We all seem to be on the same page fiscally when it comes to stretching the residents’ tax dollar,” Councilor Chad Graham said.

The city’s mill value, which is limited to growth from newly taxable property this year, for FY23 saw a 2% increase from last year.

The total expenditures for the general fund are about $14.6 million, which is an increase of the previous year at $13.7 million. Budget expenditures are higher mainly due to increases in public safety spending and includes the increased transfer for the ambulance, the budget memo to Council notes.

Features Editor Heidi Desch may be reached at 758-4421 or [email protected].