Flathead County commissioners backed a $204 million preliminary budget Tuesday that would increase property taxes to support long-term projects.

Total budget expenditures amount to $204 million for fiscal year 2027, an increase over the previous fiscal year’s $142.1 million budget. In fiscal year 2024, Flathead County spent $129.69 million. Anticipated revenue in the preliminary budget is nearly $147 million, up from $129.9 million in the previous fiscal year’s budget. 

County officials said it’s become difficult to estimate tax revenue given the slew of recent changes the Montana Legislature has made to property tax law. Finance Director Amy Dexter suggested levying 5.47 mills in the preliminary budget for fiscal year 2027 to cushion county savings for capital improvement projects.  

Since 2021, Flathead County has resisted levying additional tax mills in its budget, said County Administrator Pete Melnick. Roughly one mill currently remains unlevied. 

The proposed budget could increase property taxes by $4.16 for a home valued at $150,000, $12.47 for a home valued at $300,00 and $29.87 for a home valued at $600,000 based on last year’s property assessments, Dexter said. With the inclusion of increased property taxes under the $105 million jail bond, total tax increases come out to $13.56, $27.11 and $62.06, respectively.  

But those figures are likely to change. County commissioners will adopt a final budget in August after the state Department of Revenue releases the county’s updated tax information, which includes new taxable property values.  

Discussion and vote of the final budget is scheduled for 10 a.m., Aug. 27 at the Flathead County Courthouse, 800 S. Main St. in Kalispell.  

THE PRELIMINARY budget shows total expenditures coming in at $57.06 million above revenue, but that doesn’t mean the county is overspending, Dexter said.  

Nearly $50 million of that amount is tied to construction costs for the new county jail. Proceeds from the sale of $95 million in bonds in April, counted in the 2026 fiscal year, will cover the spending. The remaining $7 million difference will be covered through existing cash balances in capital improvement projects and operational funds, Dexter said. 

Dexter pointed to the jail project as a factor in the proposed budget’s increase in spending. About $67.6 million in expenditures is earmarked for capital improvement projects, and the new jail makes up more than 70% of it.  

“Our budget’s going to look a little wonky this year, with all that’s going on with the bond,” said Commissioner Pamela Holmquist. “But I do appreciate everyone’s commitment to holding the line and being fiscally responsible.” 

The Solid Waste Department is set to spend about $4 million on a liner excavation project. Other projects include $1.5 million for road improvements at Rose Crossing, $300,000 for a SWAT team vehicle, $882,000 for patrol vehicles for the Sheriff’s Office and $500,000 for the continuation of communication upgrades at the Flathead Emergency Communications Center.  

The budget also calls for setting aside $12 million for future capital costs. 

COUNTY COMMISSIONERS approved a resolution Tuesday for a five-year capital improvement plan that lays out $186.9 million for projects. The resolution does not guarantee funding for future years but rather provides a roadmap for long-term planning.  

And long-term planning gives county officials an idea of what capital projects may cost down the road. Capital expenditures are pulled from tax dollars already collected and held in savings, Holmquist said.  

A 2.15% cost of living increase for county employees was factored into the preliminary budget, Dexter said. Commissioners approved the salary increase for elected officials on June 16, which is required under state law to set employee salaries. The county attorney’s salary was also increased to $156,500. 

The sheriff’s new annual salary will be $123,727. The salaries of the two justices of the peace will increase to $107,327 and the clerk and recorder to $90,941. The salaries of the county commissioners, clerk of district court, county treasurer and superintendent of schools will increase to $92,941. 

Dexter said the preliminary budget is missing the increased wages for deputies that was approved on June 25 in a new collective bargaining agreement, though she expects to update it in the coming days. The agreement increased the sheriff’s salary by $4,000 over the next two fiscal years, starting in the 2027 fiscal year, to raise wages for deputies. Deputy wages are statutorily tied to the county sheriff.  

“I just want to acknowledge the work that the finance team does here, and our department heads and elected officials, to consistently deliver a budget that you can be proud of,” Melnick said.  

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.