The Whitefish City Council approved its fiscal year 2027 preliminary budget last week totaling $63.5 million, reflecting a $2.8 million increase in expenditures.

For the proposed budget, the city’s total taxable value for 2027 was estimated at $106,240,964, a 2% increase over 2026.  

“Tax rate changes enacted by the Montana State Legislature have significantly shifted the distribution of taxes among the type of homes in our community,” Whitefish City Manager Dana Meeker said. “Second homes and short-term rentals will experience a substantial increase in their property taxes. Even if we were to not increase taxes, their taxes would go up because there is a shift of who’s paying the tax.” 

Primary residences and long-term rentals will experience a modest, inflation-level increase. 

With the preliminary budget, Meeker said changes at the state level mean a $1 million home would see about a $4.50 increase per month, whereas a second home of similar worth would pay about $57 per month. 

Resort tax collections will provide $395,501 more in tax relief in fiscal year 2027 than the prior year, but the total property tax relief from resort tax will decrease by $127,749 from 2026 when the Haskill easement bond was paid off. 

Based on the city’s projected taxable value for 2027, the total property tax relief of $2,326,473 equals a reduction in mills levied by the city in the amount of 21.898 mills compared to the 23.563 mills in 2026. 

All employees will receive a 4% increase in wages, bringing all but the non-union wages to 100% of market value. Non-union wages will go to 97% of market. 

Meeker’s report said the total number of mills levied is proposed to increase by 10.1 mills, of which 3.9 mills are a direct investment in capital, including fire apparatus and the Stumptown Ice Den roof replacement project. 

“With this [budget] we’re maintaining our core services, we’re investing strategically in our infrastructure, we’re responding to our evolving community needs and the growth that we’ve experienced and we are focusing on continuing to provide our high-quality services to our community members,” Meeker said. 

The city’s taxable value is expected in August, so the budget is in a preliminary form until then. The Council will review the budget in a work session on Aug. 3. 

“We’ve patted ourselves on the back for seven years in a row for not raising anyone’s taxes,” Councilor Andy Feury said. “When, in reality, we probably should have been following, tracking along, at least with cost-of-living allowance and picking up 2 or 3 or 4% and picking up a couple of those mills.” 

THE COUNCIL also voted to amend the Legacy Homes Program fees in lieu. 

The fee in lieu is based on the average sales price and square footage data obtained from Northwest Montana Association of Realtors, or NMAR. The Council approved a new, $380,092 fee in lieu, a 0.5% increase from last year’s amount. 

“This fee accounts for the affordability gap per unit, not the price to build an affordable unit,” said Community Resiliency Long-Range Planner Tammy Zamoyski. 

She added that the maximum a person earning 100% of the area median income could afford to pay for a three-bedroom home would be about $346,000.  

“According to NMAR, that home would cost them roughly $726,000,” Zamoyski said. “The $380,000 fee in lieu makes up the difference to help cover that gap.” 

MEEKER SAID the city has a management agreement with the nonprofit Whitefish Sports Facility Foundation for the Stumptown Ice Den. The foundation manages everything within the building, and the city is responsible for maintaining the exterior, including the roof. 

Parks, Recreation and Community Services Director Maria Butts said the roof has been leaking for at least 15 years, and there have been numerous attempts to patch the leaks. 

“The Whitefish Sports Facility Foundation is finding new leaks pretty regularly,” Butts said. “They do have buckets placed throughout the facility. There are leaks that come down on the ice.” 

Butts said the band aid fix of removing the roofing and putting new roofing atop the structure could cover up damage and more problems may surface. The city’s building manager recommended a complete reconstruction of the roof. 

She said the city has a quote for the complete reconstruction from a year ago for $2.2 million. 

“It’s a tremendous asset to this community. We own that building and it’s our obligation to fix it,” Feury said. “That building was actually built almost 100% with donation dollars from this community.” 

The council also approved a nearly $7 million water system revenue bond for the city’s elevated water tank. 

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.