City: Newly taxable values less than hoped, budget still on track

Martin Kidston

(Missoula Current) The assessed value of new properties in Missoula came in below what city officials had anticipated this week, though they're not expected to have a significant impact on the proposed FY26 budget.

The Montana Department of Revenue releases the value of newly taxable properties each year in August, and cities and counties closely watch the figures. The city on Monday night said it was still pouring through the state's figures.

“We haven't had a chance to fully crunch the numbers,” said city CAO Dale Bickell. “It's not as strong as we had hoped, but I think we have a path to balance the budget and still work on getting these financial parameters set up.”

Bickell said the city will present the assessed values and their meaning next week.

“There are people who will see a tax reduction and some people who will see a tax increase,” he said.

The Missoula City Council this week will begin to deliberate the proposed budget, which proposes a 3.5% increase in property taxes. That will generate around $4.4 million in new revenue for the city.

Added up and the city's total expenditures amount to $121 million, with 21% of that going to police and 21% to fire. When operating funds are included, the expenditures reach $200 million, with utilities and public works representing 30% of that.

“We've challenged our departments to think differently about how we deliver traditional services and be mindful of the rapid increase in property taxes in recent years,” said Bickell “This is among the lowest tax increases we've had in a number of years that's being proposed.”

In recent years, the city's budget saw increases ranging from 5% to nearly 17%. This year's 3.5% figure was reached by what Bickell described as the city's new “cost of living lens” and $2.4 million in savings in the FY25 budget.

To achieve that savings, Mayor Andrea Davis' administration now reviews every job opening before it's posted. Other savings include the use of special service officers rather than police officers on overtime to perform background checks.

“All those things add up in how we achieve that $2.5 million in savings,” Bickell said.

The city also is required to hold $5.1 million, or around 7% of ongoing revenues, in a special fund, though in recent years it has never achieved that figure. This year, however, it's closing in on that mark.

“We're ending FY 25 with $1.3 million higher than original,” Bickell said, adding that the fund balance is still roughly half of the targeted 7%.