Missoula mayor lays out FY2026 executive budget; council sets public hearings for Aug. 4 and Aug. 11

Mayor Andrea Davis presented the city’s FY2026 executive budget at the July 21 Missoula City Council meeting and the council voted unanimously to set public hearings on the budget for Aug. 4 and Aug. 11.

The mayor said the administration has reduced the city’s structural deficit, improved cash reserves and focused on non‑property‑tax funding strategies. "We are projecting to spend $2,400,000 less for fiscal 2025 than originally budgeted," Davis said, and said projected cash reserves would end the fiscal year about $1 million higher than anticipated.

Davis outlined a number of cost‑saving measures included in the executive budget: increasing the city insurance deductible (projected savings $75,000), consolidating software and renegotiating IT contracts (about $100,000), short‑term rental registration revenue (projected $200,000) and an increase in health department licensing fees (statutory change projected to raise about $120,000 annually). The presentation also recorded the difficult decision to close the temporary emergency shelter on Johnson Street, which the mayor said will reduce annual costs by roughly $1.8 million.

The mayor emphasized approaches that rely less on new property tax revenue: two street maintenance positions will be paid from state gas-tax receipts rather than a road district assessment; other housing‑focused positions will be funded by grants; and the city is using targeted remittances from the Missoula Redevelopment Agency to pay eligible infrastructure expenses. Davis said the proposed property-tax and assessment increase for FY2026 is roughly 3.5%, a figure the administration tied to a projected $4.4 million overall increase in tax‑supported funds to cover primarily wage and contractual increases.

Council members asked for additional detail on several items, including the insurance‑deductible change and the planned use of reserves. Finance staff committed to provide a deeper analysis in committee. Councilor Cheryl, budget-and-finance chair, said amendments to the budget should be submitted to staff by Aug. 4 so the committee can compile them for deliberations, which are scheduled for July 23, July 30, Aug. 6 and Aug. 13; an expected final adoption date on the council calendar is Aug. 18.

The council then voted on a motion — carried unanimously — to set public hearings on the executive budget, the CIP, fee resolutions and levy method on Aug. 4 and Aug. 11 and to take final action on Aug. 18.

Speakers

- Andrea Davis — Mayor, City of Missoula (government). First referenced 00:24:26 (transcript block ~2466–2499). - Dale Bickel — Chief Administrative Officer (government). First referenced 00:44:48 (transcript block ~4448–4494). - Griffin (finance lead) — Finance Department (staff); referenced during committee briefing (first referenced in committee announcement).

Authorities

- {"type":"other","name":"City of Missoula FY2026 executive budget documents","referenced_by":["Mayor Davis"]} - {"type":"other","name":"Missoula 2045 Land Use Plan (referenced elsewhere in meeting)","referenced_by":["staff"]} - {"type":"other","name":"Montana Department of Revenue certified taxable values (pending Aug. 4)","referenced_by":["Mayor Davis"]}

Actions

- {"kind":"other","identifiers":{"agenda_item_id":"6.2"},"motion":"Set public hearings for the FY2026 budget, CIP and related fee and levy resolutions for Aug. 4 and Aug. 11; final vote scheduled Aug. 18","mover":"Councilor Sheryl","second":"","vote_record":[],"tally":{"yes":11,"no":0},"outcome":"approved","notes":"Council set public hearings; staff to provide updated revenue numbers after Montana DOR certified values on Aug. 4."}

Discussion vs. Decision

- Discussion: Council questioned specifics of savings (insurance deductible history, shelter closure impact, use of grant and gas‑tax funds for positions) and requested more granular data in budget committee sessions. - Direction: Finance staff to present more detailed analyses at committee (deductible history, claims exposure, fund‑balance projections) and compile amendments submitted by Aug. 4 for committee review. - Formal action: Council set the public hearings on Aug. 4 and Aug. 11; final budget adoption expected Aug. 18.

Clarifying details

- {"category":"fund_balance","detail":"Projected FY2025 year-end cash reserves about $3,100,000 (roughly $1,000,000 more than previously anticipated)","source_speaker":"Mayor Andrea Davis"} - {"category":"savings","detail":"Johnson Street temporary emergency shelter closure reported as approximate $1,800,000 annual savings","source_speaker":"Mayor Andrea Davis"} - {"category":"tax_change","detail":"Administration projects 3.5% increase in property-tax and assessments to raise roughly $4,400,000 distributed largely to wage and contractual increases","source_speaker":"Mayor Andrea Davis"}

Proper_names

- {"name":"Johnson Street temporary emergency shelter","type":"facility"}, {"name":"Missoula Redevelopment Agency","type":"agency"}, {"name":"Missoula 2045 Land Use Plan","type":"plan"}

Community_relevance

- geographies:["citywide"], funding_sources:["state gas tax","grants","property taxes","MRA remittances"], impact_groups:["city employees","low-income households","residents affected by shelter closure"]

Meeting_context

- engagement_level:{"speakers_count":6,"duration_minutes":90,"items_count":1}, implementation_risk:"medium","history":[{"date":"2025-07-21","note":"Executive budget presented; public hearings set"}] }

provenance:{"transcript_segments":[{"block_id":"b_2426","local_start":0,"local_end":320,"evidence_excerpt":"Under new business, we have the executive budget presentation... When I presented my first city budget last year, I was candid about the challenges that we faced...","tc_start":"00:40:26","tc_end":"00:46:45","reason_code":"topicintro"},{"block_id":"b_4096","local_start":0,"local_end":80,"evidence_excerpt":"Voice vote on item 6.2... All in favor, say aye... That passes unanimously.","tc_start":"01:08:16","tc_end":"01:08:20","reason_code":"topicfinish"}]},