Whitefish City Council approved the fiscal year 2027 budget, picking up 10 mills, with the understanding that the 2027 Montana legislative session may consider new laws that would place limits on how cities manage their budgets.  

Carry-forward mills provide a cushion to cities for future needs, as they are monies collected but not used each year, Whitefish City Manager Dana Meeker wrote in the budget transmittal letter. At the end of fiscal year 2026, Whitefish had 27.82 carry-forward mills available.  

Should the Legislature eliminate carry-over mills, the city would lose a tool for meeting unexpected needs. 

"This five-mill increase is a middle ground that keeps your property taxes from the city flat for this year, and we'll have to wait and see what Helena does next year," Councilor Steve Qunell said before the first vote. 

Council discussed the budget several times in recent months, but the vote to accept the fiscal year 2027 budget with five mills was a 3-3 tie with Councilors Ben Davis, Giuseppe Caltabiano and Qunell in favor. Mayor John Muhlfeld voted against it, prompting another motion. 

"I find 10 mills, quite frankly, a compromise position knowing that we've got 21.7 laying on the table right now," said Councilor Andy Feury. "There's a part of me that says we should grab all 21, but I realize that's not realistic." 

The vote to approve the budget with 10 mills also ended in a tie, with Councilors Rebecca Norton, Frank Sweeney and Feury in favor. Muhlfeld cast the tie breaking vote again, this time in favor. 

Feury said the total tax increase on a $1 million home over the last several years in Whitefish has been $114. 

"And why is that? Because we've kept taxes flat," he said. 

He said continuing to kick the can down the road will make the jobs of future city managers, department heads and councilors more difficult by not having a secured source of revenue. 

The city’s certified taxable value for fiscal year 2027 is about $121 million a 16.5% increase over the prior year.

Meeker's report says a primary residence with a market value of about $1 million will see less than a 6.6% increase in the city’s portion of the tax bill. The estimated annual increase is $53.06, equivalent to $4.42 per month. 

If that same property is a second home or short-term rental, the tax increase is estimated at $711.73. Meeker said this demonstrates the significant impact on second homes and the resulting relief for primary residences that was passed into law by the 2025 Montana Legislature.  

While the decision to increase property taxes is never taken lightly, the increase in property tax revenue ensures the use of reserves is sustainable and will not result in a significant increase in property taxes in future years, Meeker's letter continues. 

Resort tax collections and related investment earnings for fiscal year 2026 surpassed the budget, so property taxpayers will receive additional property tax relief, well over the 25% approved by voters, wrote Meeker. 

The total property tax relief from resort tax for fiscal year 2027 totals about $2.4 million, slightly down from last year. 

The approved budget provides a 4% pay increase to city employees. Additional wage adjustments will bring union positions to 100% of market rate. 

In fiscal year 2027 budgeted revenues and other financing sources for all funds total about $46 million, which is about 10% more than the fiscal year 2026 budget. 

The increase is attributed, in part, to new grant funds, anticipated growth in resort tax collections and a slight increase in building related fees. 

The Council also adopted the fiscal year 2027-2031 capital improvement program and a couple amendments to the fiscal year 2026 budget. 

Reporter Julie Engler can be reached at 406-862-3505 or [email protected]. If you value local journalism, pledge your support at whitefishpilot.com/support.