Flathead County commissioners on Tuesday approved a budget that calls for a decrease in county tax bills.  

Work on the 2026 fiscal year budget began in January under a cloud of uncertainty, said county Administrator Pete Melnick, as the county factored in impacts including a new presidential administration, shifting tariff policies, a falling stock market and the Montana Legislature’s reshaping of property tax structures. 

“In times like these, there’s really only one playbook that works,” Melnick said in his budget memo. “Stay conservative, stay steady and keep our focus on the fundamentals.”

The budget includes appropriations of $142 million, which exceeds total revenues of $130 million by about $12 million, but county officials said that doesn’t mean the county is operating in a deficit. Large capital projects, such as the new grandstands at the county fairgrounds, increased expenditures, but are being paid for through savings.

“The extra spending is tied to capital investments pre-construction work on the [proposed] new detention facility, completion of the fairgrounds north bleachers, and early work on the landfill expansion project,” said Melnick. 

The budget total in fiscal year 2025 was $129.7 million. 

For the fifth year in a row, county commissioners left money on the table, Melnick. The budget forgoes levying 5.47 mills, which leaves a little more than $3 million untaxed.  

“Add it all up, and over the past five years, over $15 million has been left untaxed. That's a record most governments can't touch,” Melnick said. 

Under the 2026 fiscal year budget, owners with a home valued at $100,00 should see county taxes fall by $67, depending on the actual taxable valuation set by the state Department of Revenue. A $300,000 valued home will see taxes fall by $202, and a $600,000 home will drop by about $336. 

Total property tax revenue increased to $53.6 million, a $2.6 million bump from last year and a $5.2 million bump from fiscal year 2024. New properties coming onto the tax rolls made up over half of the $2.6 million increase, Melnick said, contributing $1.51 million.  

“In other words, growth is helping carry the load, which eases the pressure on our current residents,” Melnick said.  

The tax levy for fiscal year 2026 will drop to 102.62 mills from last year’s 107.63 mills. The mill value for the county increased to $556,813 this year, compared to last year’s $504,792. 

Total costs for the capital improvements came to $21.05 million under the 2026 budget, an increase of nearly $9 million from last fiscal year. Capital projects include continued planning for the proposed new public safety facility and improvements at the fairgrounds. 

In the budget, the county’s roughly 560 employees will receive a 2.5% cost-of-living adjustment at a total cost of about $884,000. 

“It's not extravagant, but it helps keep us competitive and shows our people that their work is valued,” Melnick said.  

County officials will also consider shelling out $230,000 to hire, train and equip one additional sheriff’s deputy. Melnick noted this is a timely investment during a population growth that’s felt by everyone in the county. 

“Flathead County is at an inflection point. Growth brings challenges, but it also brings resources,” Melnick said. “The way we steward those resources will shape the valley for the next generation.” 

The budget maintains a cash reserve of 27% for tax-levied funds, which is a slight increase over last year’s reserve of 26%.  

Reporter Hannah Shields can be reached at 758-4439 or [email protected].