Kalispell City Hall has released a proposed $189.2 million budget for fiscal year 2027.  

The financial roadmap crafted by City Manager Jarod Nygren is about $7 million more than the fiscal 2026 budget approved by City Council last year. Nygren did not respond to questions about the difference by press time.

The city’s general fund expenditures are projected to reach about $17.8 million, up from roughly $16.9 million last year. The increase is largely due to salary adjustments approved by Council as part of new labor agreements for both union and non-union employees, according to Nygren.  

Slightly over half of the general fund revenue comes from property taxes, which are expected to rake in just over $9 million in fiscal 2027, up from last year due to more properties anticipated to come into the city, according to Nygren. 

However, significant changes to the property tax system enacted by the state Legislature make it difficult to predict how city revenues will be affected, according to Nygren.  

The general fund bankrolls most administrative and public safety operations. The city's Police and Fire departments make up nearly 80% of the fund’s budget.

The proposed budget calls for reserves in the general fund ending balances to be around 21%, just over the 20% outlined in city policy.  

A range of capital projects, along with new hires and equipment for some city departments, are included in the proposed budget. 

Officials anticipate spending $6.8 million from the city’s voter-approved public safety levy in fiscal 2027. The mill levy, which went into effect in July 2025, has helped Kalispell’s emergency services hire more personnel and buy new vehicles.   

*The levy funded the hiring of 11 positions in the Kalispell Police Department and 12 in the Kalispell Fire Department in fiscal 2025. In 2027, it will continue funding their wages and help pay for the design and construction of a third fire station that will be placed on the west side of town. The new facility is expected to be completed by spring 2028.  

Within the general fund, $70,000 is allocated for parking enforcement software for the Police Department. The allocation comes after the Parking Advisory Board recommended buying license plate recognition software to more effectively ticket parking violators downtown.  

The Public Works Department has an array of capital projects budgeted for fiscal 2027. The department oversees sewer, water, stormwater and wastewater systems, as well as street maintenance, and comprises nearly 65% of the city’s total budget. 

Projects include replacing two water reservoirs in the city’s lower pressure zone, upgrading aging water mains and removing lead service lines. The budget also sets aside $4.3 million — mostly from federal funding sources — to improve stormwater drainage along Two Mile Drive. 

The budget also includes funding upgrades to the city’s sewer system, like replacing aging lift stations and repairing deteriorated sewer mains on Third Alley East and Second Alley West.  

As growth in the county begins to steady after a post-pandemic surge, staff plans to launch a citywide housing study funded by a $126,000 grant from the U.S. Department of Housing and Urban Development. The study will help the city better understand housing needs and respond to market demand, according to Nygren.  

The city also budgeted $10,000 to update the aerial imagery on its public website with $5,000 of that cost to be reimbursed by Whitefish.  

The city will not receive property valuations for the current year until the first week of August, according to Nygren. 

KALISPELL CITY Council will take its first look at the budget during two work sessions on Monday and Wednesday at 6 p.m. in City Hall, 201 First Ave. E.

On Monday, councilors will review the general fund along with the Development Services and Public Works budgets. On Wednesday, the body will look over the budgets for the Police and Fire/Emergency Medical Services departments, the Parks and Recreation Department, and the Information Technology Department.  

*A correction was made to say that the emergency responder levy funded the hiring of 12 Fire Department and 11 Police Department employees in Fiscal 2025, not Fiscal 2027. 

Reporter Jack Underhill can be reached at 406-758-4407 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.