The Columbia Falls City Council unanimously approved a $26.4 million budget for Fiscal Year 2027, a roughly 12.5 percent increase over last year’s $23.5 million spending plan, driven in part by anticipated federal grants and a surge in the city’s taxable valuation.

Valuation Growth and Mill Levy

The city’s total taxable valuation has doubled since FY 2021, climbing from $8.3 million to $16.6 million in Tax Year 2026 — a gain of roughly $2.4 million over the past year alone. Despite the larger budget, the council reduced the overall mill levy from 148.44 mills to 140.64 mills, a move made possible in part by the city’s resort tax program.

Columbia Falls began collecting resort tax revenues in FY 2022. Over the five years since, those collections have saved property owners an estimated $2.2 million in cumulative tax relief. In FY 2027 alone, more than $407,000 will be returned to taxpayers through direct property tax reductions.

Resort Tax Funds Public Safety Positions

Resort tax revenues are carrying significant weight in the new budget. The funds will cover four police officers and a police vehicle, two-and-a-half firefighter positions along with a fire engine debt payment, and $310,111 directed into restricted funding reserves.

City Manager Eric Hanks told councilors at an August 17 budget public hearing that the city is positioned for substantial near-term opportunity, with major projects anticipated over the next three to five years. He noted that significant new growth is expected next year as Stockton Bank completes construction.

Staffing and Infrastructure

The FY 2027 budget funds 44 full-time equivalent staff positions and includes a 3 percent cost-of-living wage increase along with a 2 percent experience step increase for personnel. Two new positions — a full-time city attorney and a part-time legal assistant — establish what will be the city’s first dedicated in-house legal services department.

Hanks attributed part of the overall budget increase to projected federal grants tied to various projects, including the Gateway to Glacier Safety and Mobility Improvement Project, which is expected to reach substantial completion by next September.

The city plans to manage growing infrastructure demands through the water enterprise fund, sewer enterprise fund, and a special street lighting district fund. Hanks acknowledged that population and commercial growth places greater pressure on public safety, transportation, utilities, parks, and general municipal services.