Flathead County
Board of Commissioners
(406) 758-5503
Brad Abell
Randy L. Brodehl
Pamela J. Holmquist
MEMO
DATE: August 29, 2024
TO: Flathead County Commissioners
FROM: Pete Melnick, County Administrator
RE: FY 2025 Flathead County Budget Message
Dear Commissioners:
I’m pleased to present the Fiscal Year 2025 Flathead County Budget for your final consideration and approval.
What you have before you today is not just a collection of numbers; it’s the result of diligent effort by our entire team of leaders here at Flathead County. A special nod goes to Finance Director Amy Dexter and our award-winning Finance Department, along with the Elected Officials and Department Heads who played a vital role in shaping this budget.
I also want to extend my gratitude to the Flathead County Board of Commissioners. Your commitment to the Flathead County community we serve reflects on the noteworthy performance of this government. For instance, your familiar directive to “hold the line” on expenditures is more than just a mandate—it’s a reflection of our shared values. Also, despite a puzzling misconception that county spending across Montana is ballooning, Flathead County continues to operate with a culture of thrift. It is, simply, in everything we do. Along with that, we take pride in delivering outstanding value to taxpayers while keeping our promise to service delivery.
Budget Overview
Let’s begin with the bottom line.
Flathead County’s budget outlines $119.1 million in revenue against $129.7 million in expenditures. A significant portion of the $10.6 million gap is attributed to planned ARPA-funded expenditures on the septage facility for FY 2025, with no offsetting revenue as it was collected in prior years. Continued inflation on all operational costs and materials are responsible for the reminder of the gap.
The FY2025 proposed tax levy stands at 107.63 mills, compared to 103.34 mills of the previous year. In terms of the actual total property tax figures, FY 2025 records $51 million, reflecting a rise from the $48.4 million in FY 2024—amounting to an increase of $2.66 million in absolute terms. However, it's important to note that almost half of this increase ($1.23 million) is attributed to newly added properties entering the tax roll. These new residents not only contribute to the general welfare of Flathead County, but also alleviate the overall tax burden for all residents.
Before moving on, I want to give you some good news – really good news – that is not always understood by the public we serve. It concerns your tax authority and noting that you're currently not levying taxes up to the maximum limit permitted by the tax authority guidelines (MCA15-10-420).
So, I am delighted to report, for the fourth consecutive year, Flathead County is proposing to forgo taxing 5.47 mills, resulting in $2.76 million in savings for property taxpayers. Along those lines, this budget represents your direction to find additional tax relief – such as:
- Mosquito Control: 0.5 mills or $252,396 below the maximum.
- Transportation: 0.45 mills or $227,157 below the maximum.
- Health: .63 mills or $318,019 less than authorized maximum.
In other words, over $3.56 million remains in the pockets of Flathead County property taxpayers.
Because of your actions we were able to slow the advance of allowable property taxes caused by increased Department of Revenue valuations. Therefore, property owners in Flathead County, assuming no change in taxable value, can expect a modest increase in taxes due to permissive and/or voted levies—about $5.70 for a home valued at $100,000, $17.37 for a home valued at $300,000, and $34.75 for a home valued at $600,000.
Flathead County maintains a strong cash reserve, standing at 26.72% for the Family of Funds, slightly down from 28.24% in FY 2024. The Bridge Fund reserve is particularly robust at 32.55%, earmarked for upfront engineering costs on a future bridge recapitalization project. For all tax-levied funds, the cash reserve is 26.95%, compared to 27.82% in FY 2024, staying well within the legal limit of 33%.
Capital Investments
The expenditure budget includes our capital improvement program (CIP) totaling $12.8 million compared to $12.3 million last year. The CIP budget includes Culture and Recreation ($1.1 million), General Government ($2.2 million), Public Health ($168,000), Public Safety ($4.6 million), Public Works ($3.65 million), Social and Economic Services ($541,665), and Solid Waste ($700,000). In addition to the CIP expenditures authorized for FY 2025 above, we have also provided funding by transfers in the total amount of $7.1 million for CIP needs in future years compared to $7.6 million in FY 2024. The below outlines some of the more substantial county infrastructure commitments.
- Flathead County Fairgrounds: $600,000 for the North Bleacher Replacement Project.
- Flathead County Library: Up to a $125,000 matching contribution to the Flathead County Library's initiative to fund the replacement of the Kalispell Branch. The current county contribution stands at $375,000, bringing the overall balance to $500,000.
- Flathead County Detention Facility: An additional $1 million has been invested by Flathead County for a future detention facility, bringing the current savings balance for this project to $13.8 million.
- Flathead County Parks: $50,000 saved for a future replacement of the Conrad Athletic Complex. Our savings for this project has a current balance of $150,000.
It’s a safe bet that future Commissioners, administrators, staff, and the public will thank you for these prudent actions. 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.
Service Delivery
Flathead County is fortunate to have a team of dedicated department heads and elected officials who prioritize exceptional service delivery. Their commitment to our residents’ well-being is unwavering, and through transparent communication, efficient resource management, and proactive problem-solving, they help make Flathead County a great place to live. I think we can agree that they are very good at what they do, and they maintain this thoughtful posture consistently.
It's worth celebrating when our talented department heads and elected officials recognize the importance of smartly investing taxpayer money into assets that deliver a tangible return to the community. I am pleased to highlight the following investments, conceived by our management team, which you supported and will now consider:
- Flathead County EMS: Milling the maximum which adds an additional $166,582 to the EMS system in Flathead County.
- Flathead County Library: Additional .125 FTE for staffing at the new Bigfork Library Branch.
The upsides of these investments are obvious: an enhanced emergency system that can better respond to the needs of our neighbors, and a library service that will enrich the community and support lifelong learning. These strategic investments reflect our commitment to improving the quality of life in Flathead County and ensuring that taxpayer dollars are used effectively to benefit everyone.
People
It comes as no surprise that Flathead County was awarded the 2024 Employer of Choice award (Runner-up) by the Montana Department of Labor. This first-time recognition for Flathead County underscores that our 561.87 dedicated employees are an indispensable part of the landscape that makes our county exceptional. In a world filled with flash, our team remains the steady hand on the plow, turning hard work into reliable public service. Yet, despite being the smallest staffed metro-county, our personnel costs represent a significant portion of the total County budget. This year’s budget includes a 3.2% cost of living adjustment for County personnel, amounting to $1.07 million.
Future Outlook
Commissioners, as we look ahead to FY25 and beyond, we’re not just envisioning the future; we’re actively constructing it, brick by brick, on a solid foundation.
- We have made a significant commitment by joining forces with the Lakeside Water and Sewer District to address the growing Septage Disposal challenge in the Valley.
- We’ve taken another major step toward reinvesting in the Justice System in Flathead County by creating a team of public and government employees to select a design firm for the new Detention Center. We expect that this initiative will go before the voters in the spring of 2025.
- We’ve also outlined pre-decisional “cash flow type” plans to maintain the Flathead County Grandstands, ensuring that future generations can continue to gather and celebrate in our community.
In closing, I want to thank you for your unwavering leadership and commitment to the principles that have kept us on a strong financial footing. 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. 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.
I recommend approval of the proposed FY 2025 Flathead County Budget as presented.
Respectfully submitted,
Pete Melnick,
Flathead County Administrator