County budget seeks 3.2% tax increase pending state values

Martin Kidston

(Missoula Current) Missoula County's preliminary budget for the new fiscal year looks to shore up rising medical costs and cover the state's rate of inflation through a county-wide tax increase of roughly 3.2%.

But county officials are still waiting on this year's taxable values and, when combined with the state's new property tax scale, some homeowners could ultimately see their county taxes go down.

“We're talking about the expense side of the budget, not the revenue side,” said Commissioner Josh Slotnick. “We have new tax rates this year, and we don't know what that's really going to mean on specific homes until we get these newly taxable values. We also don't know about newly taxable property. Those things could really change the revenue side of our budget.”

The county last week unveiled its preliminary budget, which is set for adoption in early September and considers the state's 3.5% rate of inflation. While some figures remain unknown, the county is facing rising medical expenses, which is placing pressure on the budget.

Chris Lounsbury, the county's chief administrative officer, said the county's medical costs increased 10% last year. This year, it's climbing again.

“Like everyone, we're faced with real challenges when it comes to the cost of medical expenses this year,” he said. “We chose to hold on increasing any revenue last year around medical expenses because we were hoping that was a one-year blip. Unfortunately, this year we saw approximately a 6% increase in medical expenses.”

To cover the costs, Lounsbury said the county will levy additional permissive medical mills to cover employee medical costs, which are largely driven by increases in pharmaceuticals.

The county in recent years also has struggled to recruit and retain employees in certain areas. To address the challenges, the county has invested in those positions including the county attorney's office, the Sheriff's Department, the detention center, 9-11 and some court positions.

This year's budget will continue that trend, Lounsbury said.

“We've made really good progress in some of those areas, but in some of these areas we continue to lag and still not be able to adequately recruit, and so we continue those targeted investments this year,” he said.

While the preliminary budget focused only on expenses pending this year's certified taxable values, some appropriation figures are taking shape. Among them, the county's General Fund will decrease appropriations by $899,900 while Public Works will decrease $2 million – the latter due to last year's purchase of a gravel crusher.

But the Sheriff's Department will increase $767,000 and detention $980,000. Health costs will increase $1 million, according to the county. The county will also seek an increase in road materials, which will impact county-only properties.

Slotnick said the budget will continue to take shape in the weeks to come.

“This is an estimate,” he said. “We'll know more in a few weeks.”