The Whitefish City Council approved the preliminary FY24 budget at its meeting last week after two work sessions to review and discuss it. Council also set the final public hearing on the FY24 final budget for Aug. 21.

For now, the total appropriated budget for FY24 is $49.3 million. Compared to the prior fiscal year, FY24 expenditures are expected to decrease $3.7 million, or about 8%.

Whitefish City Manager Dana Smith told council this is a reappraisal year and the city will not receive its official tax valuation until August when the final budget will be prepared. For the preliminary FY24 budget, the taxable value was estimated to grow by 10%.

Smith reported that over the past 10 years, Whitefish has had a decrease in taxes by about 0.6%. This year, however, there will be a property tax increase due to changes in property tax relief from resort tax, increasing costs and a reduction in revenues.

In an example provided in the budget report, a residential property with a market value of about $526,000 can expect to see an estimated annual increase of about $80 on the city’s portion of their property tax bill. The increase offsets the approximate $98 decrease provided last year but keeps the city’s portion of the bill about $18 less than FY22.

“Of course, if our valuations come back higher than the 10%, which was just an estimate… we will adjust the mils so the actual revenue generated would still be similar to what is proposed in this budget, so that impact would remain fairly similar,” Smith added.

Since the work sessions, a few changes were taken into account, making the fund balance for property tax supported funds about 35%. Capital spending in FY24 is predicted to decrease by $4.9 million compared to the prior year because, in part, construction for the Wastewater Treatment Plant Upgrade Project is nearing completion.

In order to keep pay competitive and retain employees, city personnel would receive a pay increase of 5% — 3% is a cost of living increase and 2% for longevity. Additionally, the FY24 budget proposes two new hires: a school resource officer position, the cost of which would be shared with the school district, and a street maintenance position.

Smith explained that even though one’s taxable property tax value increases, it does not mean the taxes assessed on that property will increase by the same percentage.

She shared that the Montana Department of Revenue will host a property assessment town hall in Kalispell on July 12 along with virtual events to educate the public. There is more information posted on the city’s website.

Each department had time to present individual budgets during work sessions on May 30 and June 12. At the second meeting, the Public Works Department and Parks and Recreation presented their budgets.

Whitefish Parks and Recreation Director Maria Butts reported little change to the department's budget. Revenues and expenditures are about the same, with an increase in expenditures of only about $3,300.

“We see a decrease to the city beach concessions and also the facility use revenue, but to go along with that, you’ll see the increase in afterschool and summer camp,” Butts said.

During the height of the COVID-19 pandemic, there were increases in facility use, with people wanting to be outside, and less of a demand for childcare services due to concerns regarding health and safety. Now, demand for these two items is changing back.

Whitefish Public Works Director Craig Workman said the city is at substantial completion with both the Edgewood Place and Texas Avenue projects. The city is still working on the restoration and street trees will go in on Texas Avenue this fall.

Highlights for the FY24 budget from the Public Works Department include the street maintenance assessment will be held flat and there are no proposed rate increases for water or wastewater.

Workman also announced that Whitefish Senior Project Engineer Karin Hilding is now also the city’s sustainability coordinator.

Proposed budgets for the library, municipal court, administration and legal services, planning, police and fire were discussed in the Whitefish Pilot article on June 7.