Whitefish City Council has unanimously approved the preliminary budget for fiscal year 2026 and will hold a public hearing on the final budget and the capital improvement program on Aug. 18.

There was no public comment regarding the budget.

Councilors and city staff met for three hours earlier this month to discuss the preliminary draft of the budget that shows a little more than $50 million in expenditures and about $8 million in interfund transfers for a total appropriated budget of roughly $58 million.

Budgeted revenues total $40.5 million, which is roughly $5 million, or 14.75%, more than the $35 million fiscal year 2025 budget

A property tax increase of 5.66 mills is proposed. That would mean a $1.91 monthly increase in property taxes for a home with a market value of $300,000.

Several bills passed by the Montana Legislature this year that will affect the property tax system are still waiting for action by the governor, so Whitefish City Manager Dana Smith said the proposed budget will likely change, therefore it is a preliminary draft.

The proposed budget funds 122.2 full-time equivalent employees. Total payroll costs are proposed to increase 9.1%, from the previous year, to $15.9 million. Wages are proposed to increase 4% for most employees for fiscal year 2026.

Smith said Kalispell’s fiscal year 2026 budget is providing a 4.3% pay increase, and the county is offering a 3% increase. Neither of their formulas for raises are based on their tax base.

Two new positions are proposed for fiscal year 2026, one would make a year-round seasonal position with the Parks and Recreation Department into a regular part-time position. The other is a part-time information technology support specialist for the Finance Department.

“The cost of contracted services is so high, the value for our taxpayers really lies in hiring somebody on staff compared to through a contract,” Smith said.

Whitefish Public Works Director Craig Workman said the street fund has about $1.3 million in spend down and that all the budgets in the department were spending down.

Smith said rate stabilization and new software help assure the spend downs or flat rates do not result in a spike later.

Mayor John Muhlfeld thanked Smith and the staff for their work.

“As a city of our size, the level of services we provide, the fact that we’ve only increased full time positions over the last five years by 10 permanent employees, I think, is a testament to the hard work of the directors, all of your staff, and it’s a testament to the quality of service we provide our community at a very reasonable cost,” he said.

The entire preliminary draft of the budget is available on the city’s website.