Whitefish City Council on Monday is poised to approve a $63.4 million preliminary budget for fiscal year 2027.  

The budget includes an increase in expenditures of about $2 million, which is split evenly between capital projects and an increase in personnel services.    

City Council meets at 7:10 p.m. at City Hall, 418 E. Second St. 

The draft budget plans to levy 10 additional mills over the previous fiscal year, which aims to address budgetary impacts, including a decline in investment earnings, increasing costs for employee wages, new positions and rising operating costs.    

The increase in budget spending is expected to raise property taxes, but the amount will depend on the property’s status. Tax rate changes enacted by the state Legislature have shifted the distribution of taxes among the types of homes in the community, City Manager Dana Meeker points out in her budget memo.    

For primary residential and long-term rentals, the increase for a property valued at $800,000 is expected to be about $32 per year. Second homes and short-term rentals valued at the same amount can expect an increase of about $567 per year in city taxes.    

Council is also set to vote on a bond resolution for $7.29 million from the Montana Department of Natural Resources and Conservation for the south water tank project. The city is constructing a water storage tank on the south side of town to add storage required to meet fire flow demands and accommodate new growth.  

The loan will assist in funding the first phase of the project, totaling $8.4 million. The second phase of the project, which involves constructing a water supply line, has a cost of $3 million.   

A vote is scheduled for the Legacy Home Program to update the housing and rental prices, and the fee in lieu of affordable housing.  

The ownership and rental prices are based on the Area Median Income for Flathead County established by the federal government. The home ownership price for 100% AMI for a one-bedroom is decreasing from $276,096 to $273,046. The rental price for 80% of AMI for a one-bedroom is decreasing from $1,539 to $1,522.  

The fee in lieu is based on the three-year average of sales in the Multiple Listing Service for the 59937 ZIP code. It is increasing from $378,089 to $380,092.  

During a work session at 6 p.m., Council will review the resort tax community housing program. A portion of the city’s 3% resort tax goes toward affordable housing.  

Right now, those interested in using the funds work with the city manager and present a request to Council to determine if a grant is appropriate. As an estimated more than $20 million is expected to be generated over the next 18 years for the fund, city staff is asking Council if the process could be improved.  

The Whitefish Community Housing Committee is suggesting creating a grant application process that includes a review panel to make recommendations to Council.  

Then at 6:30 p.m., Council will hear an update from the Whitefish Community Center.  

Deputy Editor Heidi Desch can be reached at 406-758-4421 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.