Boost in Flathead County's credit rating results in savings on jail project
HANNAH SHIELDS | Hagadone News Network | UPDATED 3 months, 2 weeks AGO
The 115-acre site of the new Flathead County jail located at 225 Snowline Lane in Kalispell on Tuesday, Dec. 9. (Casey Kreider/Daily Inter Lake)
Casey Kreider
RURAL GOVERNMENT REPORTER, REPORT FOR AMERICA Hannah Shields covers rural government and accountability reporting for the Daily Inter Lake and Northwest Montana weekly papers as part of the national Report for America program. Her reporting focuses on transparency, public spending and the impact of local government decisions on small communities. Shields has covered issues ranging from school district finances to development disputes and rural infrastructure projects. She regularly uses public records and investigative reporting to examine institutions that affect local residents. Her work helps bring greater oversight and visibility to rural government across Northwest Montana. IMPACT: Hannah’s work strengthens transparency and accountability in rural communities that often lack consistent watchdog coverage. | April 16, 2026 12:00 AM
A bump in Flathead County's credit rating resulted in lower-than-expected property tax increases to cover the $95 million in bonds needed for the new county jail.
As part of the bond financing process, Flathead County’s underlying credit rating from S&P Global improved from “AA” to “AA+” on sustained financial strength and an expanding economy, according to county officials.
As a result, the bonds were sold at a lower interest rate, declining from 4.33% to 3.83%. Projected property taxes to pay off the bonds over the next 20 years are now expected to come in at $9.98 per $100,000 of assessed value, down from $11.13.
With the lowered rate, a home valued at $100,000 will see property taxes increase by $9.98; a home valued at $300,000 will see an increase of $29.94; and a home valued at $600,000 will see a bump of $59.88
“I am pleased that the bonds sold with a lower true interest cost than what was projected during the election,” said County Administrator Pete Melnick. “That is good news for taxpayers, and it shows the market responded well to the strength of Flathead County’s financial position.”
Bonds were sold within an hour on April 14 in $5,000 increments through D.A. Davidson to investors and bankers in Montana and around the country. County officials said demand for the bonds was strong with about 50 institutional investors and additional individual investors participating in the offering.
Voters approved a $105 million bond request in November to fund construction of the county’s new jail on Snowline Lane. The remaining $10 million in unissued bonds will be saved for pending project costs, as needed.
With financial backing officially secured, a groundbreaking for the new jail is planned in June. County commissioners will adopt a final resolution for the issue of $95 million in general obligation bonds at their April 21 meeting.
Report for America reporter Hannah Shields can be reached at (406) 758-4439 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.
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