The Lake County Board of County Commissioners adopted their final operating budget Sept. 4 for Fiscal Year 2026 with some adjustments that reflect lower property taxes and garbage costs, and new spending on a Polson Airport project.

Changes passed by the state legislature last spring mean county property taxes will decrease. The rates will change from 1.35% across the board to a tiered system, with primary residences taxed at .76% for the first $400,000 in home value, then 1.1 % for a home worth up to $1.1 million and 2.2.% for homes valued above $1.5 million. Second homes, ag land and vacation rentals are taxed at a higher rate.

Commissioner Bill Barron said his house was appraised at a 45% higher value than last year, but he estimates his taxes will only go up by $10.

The budget includes just over $60 million in total revenue, with $17.7 million of that coming from property taxes.

Tara Barry, Lake County finance officer, explained that this is approximately a $1 million increase in property tax revenue from last year due to higher assessments and newly taxable property.

“I'm expecting a very, very small increase or possibly a decrease, depending how everything plays out,” Barron said at the budget meeting. “When it comes to taxes, we're pretty much at the mercy of the Legislature.”

Additional changes in county[MOU1] property taxes stem from House Bill 231 and Senate Bill 542, which change the way voted mills are calculated. Barry said these bills allow the county to only increase the amount of taxes raised by voted mill levies based on the rate of inflation.

The county has four voted levies that raise money for Public Safety, Senior Citizens, Search and Rescue Lake, and Search and Rescue Swan/Mission.

Property owners may find their taxable value for 2025 by looking at their notice mailed by the Montana Department of Revenue or by searching for their property online at svc.mt.gov/dor/property/Home.

Road and airport improvements

The Lake County budget increased by almost 14% this year, which Barry attributes to a $6.5 million Airport Improvement Grant for the Polson Airport and a $10 million Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant.

Rick Newman, chairman of the Lake County Joint Airport Board, explained that Polson Airport has the worst pavement in the state of Montana, so it is not worth repairing it. Instead, he said this $6 million will fund the replacement of pavement for the runway, taxiway and apron.

This will also fund new lighting, which will be more cost efficient, and replace the beacon which he joked “came over on the Mayflower” due to its age.

The St. Ignatius Airport will also receive about $15,000 for repairs and maintenance, which is a $12,000 increase for this fiscal year. Newman said this will pay for tractor repairs, which they have spread out over three years, and it will allow them to install a weather system they received last year from the Ronan Airport.

Barry said the RAISE grant funds the rebuilding of Dublin Gulch Road, a portion of Moiese Valley Road and North Reservoir Road.

Another change to this $67 million budget plays out in public works funding, with $4 million going to the landfill expansion project. The county broke ground on the first of three cells in June, which will increase the landfill’s life expectancy by 30 years.

Lake County has paid Republic Services to transfer its waste to Missoula for the last 25 years. According to the 2026 fiscal budget, the county is expecting to save $340,000 in the coming year and close to $900,000 a year in transfer costs once the project is completed.

Within the Lake County Treasurer’s department, the budget will decrease by about $100,000 this year to compensate for additional money paid last year for retired treasurer Robin Vert-Rubel. She stepped in mid-year after the former treasurer abruptly resigned and before her replacement, Rebecca Maso, was elected.

The department will also realize a savings by not filling a position in the motor vehicle department.

In the election department, the amount budgeted for election judges went from zero to $55,000 annually. Barry said the county used to pay judges out of a claims account, but now they will become employees of the county. She explained that the shift was due to IRS rules that require the county to pull out employment taxes based on the amount paid, even though judges only work during elections.

Overall, this will simplify the process, she said.

Commissioners allocated an additional $250,000 for Dispatch salaries, but that includes three open positions, and if those go unfilled, the budget will stay at $830,000. Barry said they didn’t budget for these open positions last year but they are hoping this will allow them to fill the positions because the county needs more dispatchers.

Another change for the county is amping up the fire mitigation program. The county received a $600,000 grant from the Department of Natural Resources and Conservation and about $620,000 for a project on White Swan Bay through the Confederated Salish and Kootenai Tribes.

Barry explained that through this program, the fire mitigation coordinator partners with loggers to help landowners remove burnable fuels from around their home or other buildings on their property. The landowner pays the logger, but then these grant funds reimburse the landowners for the expense.

For Search and Rescue in the Swan and Mission area, there is a $42,000 increase in the building fund. Barry said this increase is for improvements outside of their operational budget.