The Flathead County Commission unanimously approved a $117.6 million budget during its Sept. 1 meeting.
The approved budget is a decrease of 0.6% from fiscal year 2021, however the appropriation for all funds in fiscal year 2022 is $2 million higher than was initially proposed in June.
“We’ve always done an amazing job of keeping the budget at an even keel,” said Commissioner Pam Holmquist. “We’re a very thrifty county — there’s a lot of things we do, and I know we’re a model for a lot of counties that have a lot more employees than we do.”
A large portion of the expenditure budget includes $16 million for the capital improvement program (CIP), up $2 million from the previous year. The CIP includes $99,994 for culture and recreation, $154,236 for public health, $677,000 for public safety, $2.1 million for public works, $7.5 million for general government, and $536,000 for social and economic services.
Several CIP projects of note were highlighted in the adopted budget, including the Century Link building, which was purchased in 2020 to house several county departments and requires costly renovations, which have exceeded initial forecasts.
In addition to the authorized CIP expenditures for the fiscal year, the county also transferred a total of $12.4 million for future CIP needs.
The county’s 539.5 full-time equivalent employees (FTE) make up another large portion of the budget. In the last year, 48.75 FTE were eliminated due to the removal of the health clinic from county oversight while 33.5 FTE were added when the county adopted the Flathead Emergency Communications Center.
Personnel costs for the year include a 2% cost of living adjustment, longevity funding and step increases in compliance with county policies and union contracts.
The Flathead County Commission also elected to receive $20 million in ARPA funding from the U.S. Treasury in July. County Administrator Pete Melnick called the funds “extraordinary” in his budget report, as it equates to nearly one-fifth of the current budget. This funding is not included in the proposed budget as the commission is still discussing how to best utilize the money.
Melnick added in his report to the commissioners that the county continued to maintain adequate cash balances with projected reserve funds of $18.7 million at the end of the fiscal year.
According to new valuation numbers released by the Montana Department of Revenue, the total taxable value for the county increased 13.9%, up to $325.9 million, with a .7% increase in total property tax for the county.
However, the proposed property tax levy will decrease 18.51 mills compared to last year, an 11.41% reduction, due to a Montana law that limits totals of what a county can levy. For a property assessed at $200,000, this will represent a county tax decrease of approximately $49.98.
“How is that possible? A perfect storm of existing law, county-wide fiscal discipline and unprecedented housing growth,” Melnick said in his report. “Finally, some good news about the great western migration of 2021.”