The Flathead County Commission at its Aug. 29 meeting unanimously approved a $129.7 million budget for the next fiscal year, with virtually no changes from the preliminary budget adopted in June. The commissioners lauded the work of county staff to hold the line on the annual budget while committing to deliver quality service to the community.
“We have incredible staff here, incredible department heads who have done amazing through the years to keep the county on solid footing,” Commissioner Pam Holmquist said.
The county’s budget outlines $119.1 million in revenue. The approved expenditures increase county spending by roughly 12% from fiscal year 2023, however the bulk of the increase is due to the planned expenditures of ARPA funding for the regional septage facility over the next year, which is not reflected in revenues as it was collected in prior years.
According to new valuation numbers released by the Montana Department of Revenue, the total taxable value for the county increased 3.2%, up to $514 million. The county will levy 107.63 mills, a 4.1% increase from last year. The actual total property tax figure for the county increased to $51 million, a $2.66 million jump, roughly half of which can be attributed to newly added properties, according to County Administrator Pete Melnick.
“These new residents not only contribute to the general welfare of Flathead County, but also alleviate the overall tax burden for all residents,” Melnick wrote in a memo he read to the commissioners.
Melnick’s budget letter pointed out that for the fourth year in a row, the county is not currently levying taxes to the maximum limit permitted by tax authority guidelines.
“I want to give you some good news — really good news — that is not always understood by the public we serve,” Melnick said. “Flathead County is proposing to forgo taxing 5.47 mills, resulting in $2.76 million in savings for property taxpayers … Because of your actions we were able to slow the advance of allowable property taxes caused by increased Department of Revenue valuations.”
Assuming no change to taxable value for a property, the current budget is expected to increase taxpayer bills by just $5.79 for every $100,000 in market value property.
Flathead County Commissioner Brad Abell pointed out the work done each year by staff and department heads to preserve a balanced budget. “They hold the line and they make good use of taxpayer funds and we thank them for that.”
A large portion of the expenditure budget includes $12.8 million for the capital improvement program (CIP), a slight increase from the previous year. The 2025 CIP budget allocates $1.1 million for culture and recreation, $168,000 for public health, $4.6 million for public safety, $3.65 million for public works, $2.2 million for general government, $541,665 for social and economic services and $700,000 for solid waste.
Several larger infrastructure projects were highlighted, including:
- $600,000 to replace the North Bleachers at the Flathead County Fairgrounds
- A matching contribution to the Flathead County Library’s initiative to build a new Kalispell branch of up to $125,000
- An additional $1 million set aside for a future detention facility, bringing this project’s savings to $13.8 million
- $50,000 saved for a future replacement of the Conrad Athletic Complex
“It’s a safe bet that future commissioners, administrators, staff, and the public will thank you for these prudent actions,” Melnick said. “Because a government that plans for the future is like a farmer who plants trees today; it may take time to see the fruits, but the shade will be there for generations.”
Other highlights from the budget include $166,582 of funding for the county EMS system and additional staffing hours for the new Bigfork Library Branch.
The county’s 562 full-time equivalent employees make up another major portion of the budget. Personnel costs for the year include a 3.2% cost of living adjustment passed in May, longevity funding and step increases in compliance with county policies and union contracts. The personnel costs in FY25 increased by $1.07 million.
Melnick added in his report to the commissioners that the county continues to maintain a strong cash reserve with projected reserve balances of 26.95% at the end of the fiscal year.
“As we face the challenges ahead, we do so with confidence, knowing that we are building on a foundation that will stand the test of time,” he said. “Together, with the dedication of our Management Team and the support of our community, I’m confident we’ll continue to make prudent decisions that serve the long-term interests of Flathead County.”