H05. Res. 6279, Emergency Responder Levy Adjustment(A J Y 0F. City of Kalispell
ALISPELL PostOffice Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Doug Russell, City Manager
FROM: Aimee Cooke, Finance Director
SUBJECT: FY2026 Budget — Emergency Responder Levy
MEETING DATE: August 18, 2025
BACKGROUND: During the 69f' Montana Legislative Session, the Legislature passed Laws 2025,
Chapters 674 and 767, requiring local governments with voter -approved mill levies (adopted prior to
May 13, 2025) to choose one of two methods for recalculating those levies:
1. Convert to a dollar -based levy equal to the amount of property taxes assessed in fiscal year
2025, with future adjustments under §15-10-420(1)(a), MCA; or
2. Fix the mill rate at the fiscal year 2026 level and levy that number of mills in future years.
The City of Kalispell has a voter -authorized Emergency Responder Levy with a legal maximum of
60.9 mills. In fiscal year 2025, property taxes for this levy were assessed at $4,480,259.
RECOMMENDATION: Staff recommends that City council adopt attached resolution 6279 to
transition the Emergency responder levy to a dollar -based levy of $4,480,259, which equals the
assessed amount for this levy in fiscal year 2025.
• Legal Maximum: The voter -approved ceiling remains at 60.9 mills. However, under the new
law, the City will levy a dollar amount, and the exact number of mills will be recalculated each
year by Flathead County based on certified taxable values.
• Future Inflation Adjustments: Under §15-10-420(1)(a), MCA, the City may levy up to
$4,480,259 plus the inflation factor determined annually by the Department of Revenue.
• Reason for Choosing Dollar -Based: This method ensures revenue stability regardless of
fluctuations in taxable value and mill calculations, while complying fully with state law.
FISCAL EFFECTS: The Emergency Responder Levy will provide $4,480,259 (assessed
amount) for FY2026. This predictable funding structure supports reliable budgeting for
emergency services.
ATTACHMENTS: Resolution 6279, Dollar Based Mill Levy
Return to:
City Clerk
City of Kalispell
P.O. Box 1997
Kalispell MT 59903-1997
RESOLUTION NO. 6279
A RESOLUTION ESTABLISHING THE METHOD OF LEVYING VOTED MILLS AS
REQUIRED BY LAWS 2025, CHAPTERS 674 AND 767 PASSED IN THE 69TH
MONTANA LEGISLATIVE SESSION.
WHEREAS, Laws 2025, Chapters 674 and 767 passed in the 69th Montana Legislative Session
requires that a taxing entity with a local mill levy limit of a specific number of mills
that may be imposed that was authorized by the voters before May 13, 2025, shall
elect one of two methods to recalculate those mill levies; and
WHEREAS, a taxing entity may either elect to:
(a) transition a voted mill levy to a dollar -based mill levy equal to the amount
of property taxes assessed in fiscal year 2025 and thereafter subject to the
provisions of 15-10- 420(1)(a); or
(b) levy the number of mills in fiscal year 2026 that will generate the amount
ofproperty taxes assessed in fiscal year 2025.
In fiscal years after 2026, the local government may levy an amount not to exceed the number of
mills levied in fiscal year 2026; and
WHEREAS, the City of Kalispell has the following mill levy authorized by the voters before
May 13, 2025:
Emergency Responder Levy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION 1. The Emergency Responder mill levy will be transitioned to a dollar -based
mill levy equal to the total authorized ad valorem tax revenue assessment in
fiscal year 2025 and thereafter subject to the provisions of 15-10-420(1)(a).
SECTION 2. The total authorized ad valorem tax revenue assessed in fiscal year 2025 for
the Emergency Responder mill levy was $4,480,259.
SECTION 3. Hereafter, the City Council may levy up to $4,480,259 plus the rate of
inflation provided for in Section 15-10-420(1)(a), MCA.
SECTION 4. For fiscal year 2026, the Kalispell City Council will levy $4,480,259 for the
"Emergency Responder voted mill levy."
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 18TH DAY OF AUGUST, 2025.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk