Whitefish City Council on Monday is set to approve a $59.6 million budget that calls for an increase in spending over the prior year.  

The fiscal year 2026 budget includes a bump in spending of $6.4 million or about 14.3% over the previous year. The increase is mostly due to a significant increase in capital expenditures of about $5 million and an increase in personnel services at about $1.7 million.  

City Council meets at 7:10 p.m. at City Hall, 418 E. Second St. 

The budget calls for a decrease in the number of property tax mills levied, but the city will still generate more property tax revenue because the city’s taxable value increased by 28.5%. Newly taxable property in the city resulted in an increase of $1.69 million in collections.  

Changes enacted by the Montana Legislature regarding property tax rates mean that some taxpayers will see a decrease in their city tax bill, while others will see an increase.  

“Generally, homes with an approximate market value over $2 million will see an increase in taxes, but at a lower rate than those over $5 million,” City Manager Dana Smith said in her budget memo. “Homes valued less than $2 million will generally see a decrease in property taxes owed to the city.” 

A market value home of $100,000 should see a $35 decrease in city taxes and a home valued at $800,000 should see a decrease of about $212 for the year. But a home with a market value of $5.3 million will see an increase of about $912 for the year.  

As part of the budget, resort tax collections provide property tax relief of $2.4 million.  

The budget calls for an increase in wages for employees of 4%, which includes a 2% cost-of-living adjustment plus longevity. 

Smith notes that the budget has “proven challenging to balance as collective bargaining agreements address lagging wages compared to the market, health insurance premiums increased 14.5%, investment earnings are projected to see a slight decrease, and departments continue to see rising costs for supplies, materials, and software subscriptions.” 

A spend down of cash reserves at just over $2 million is included in the budget. This is primarily for cash-funded capital improvements and equipment.  

Smith said spending cash reserves for capital items not only eliminates an increased burden on taxpayers but also reduces financing costs for the city. 

“The budget does spend-down cash reserves for increasing operational costs of about $292,000 as a means to further minimize the impact of taxpayers in FY 2026,” Smith says in her budget memo. “However, it is important to note that future years will require tax increases to keep operations at current levels once reserves are spent down.” 

The city’s cash reserves are about $6 million, which represents about 35% of the total budgeted expenditures.  

The budget for fiscal year 2026 levies 53.4 mills as compared to the previous year of 56.3 mills and fiscal year 2024 at 47.6 mills.  

Council will also consider adopting the fiscal year 2026-2030 capital improvement program.  

ALSO ON the agenda, Council will consider changes to the subdivision regulations in response to bills approved by the 2025 state Legislature.  

Council will consider authorizing a bid for restroom and playground paths at Armory Park as part of a series of ongoing upgrades to the park. The estimate for the construction is about $350,000.  

A contract with a planning consultant firm for the land use chapter of the Vision Whitefish 2045 plan is up for consideration. A Boulder, Colorado, company known as czb is recommended by the Planning Department for the contract at a cost of $149,700.  

During a work session at 5:30 p.m., Council will discuss regulations regarding flammable vegetation and the use of motorized and non-motorized vehicles and equipment on paths and public ways.  

Deputy Editor Heidi Desch may be reached at 406-758-4421 or [email protected].