Butte-Silver Bow council refers $168.4M preliminary FY2026 budget to finance committee

The Butte-Silver Bow Council of Commissioners on Tuesday voted to refer the fiscal year 2026 preliminary budget to the Finance and Budget Committee for more detailed review and amendments ahead of final adoption in August.

Finance and Budget Director Karen Hassler told the council the “fiscal year 2026 preliminary budget appropriation is a $168,400,000 compared to a 180,200,000 for fiscal year 2025,” a decrease of about $11.8 million, or 6.5 percent, driven largely by prior-year spending of American Rescue Plan Act (ARPA) funds on capital projects.

The move to refer the document to the Finance and Budget Committee came after a presentation from Hassler and questions from multiple commissioners. Commissioner John Morgan made the motion “that we refer the communication 2025Dash338, the preliminary budget to the finance and budget committee.” The council recorded a 9-0 vote in favor.

Why it matters: The preliminary budget sets the framework for tax-supported spending, capital projects and staffing priorities heading into a reappraisal year and a redesigned state property tax rate structure. Director Hassler cautioned that the numbers are preliminary and will change after certified values are released by the Montana Department of Revenue; she said budget adoption is expected in August after that certification.

Key figures and priorities: Hassler said the countywide preliminary appropriation totals $168.4 million, with capital outlays of $50.5 million (down from $64.7 million in FY2025). About $12.1 million in capital projects tied to ARPA funds remain in the budget, plus $4.0 million in an EDA economic development grant for Silver Lake water system improvements and $7.9 million from the Federal Lands Access Program for Roosevelt Drive reconstruction. Tax-supported appropriations (general fund and identified tax-reliant funds) total about $75 million, a 2 percent increase over FY2025.

On operating costs and staffing, Hassler said salaries, wages and employer benefits increased by roughly $1.54 million (about 3 percent), and the budget includes a 3 percent salary increase for union and nonunion employees plus a $30 per-month health insurance contribution. The packet identifies a net increase of 1.37 full-time-equivalent positions, driven by grant-funded roles and a conversion of an existing clerk to full time.

Revenue and rate pressures: Hassler reported the county is about $3.6 million over its estimated interest earnings for FY2025, which she said is being treated as reserve growth for the funds that earned it. She also noted the Department of Revenue estimate of gross proceeds taxable value increases could add roughly $567,000 in value, equivalent to about $170,000 in tax revenue under the FY2025 mill levy. However, she warned the effect on individual taxpayers is uncertain because 2025 is a property reappraisal year and Montana’s new tax rate structure shifts effective rates depending on value tiers.

Service and program highlights: The preliminary budget includes continued funding for economic development, housing and social and behavioral health initiatives; $278,000 in Montana Opioid Abatement Trust funds and $1.2 million in CDBG grants are listed for projects including Rescue Mission operations, Aspen Place Apartments, the Finland Hotel and the Phoenix Building. The local option marijuana tax will include $100,000 to support the Butte Rescue Mission. The budget also contains funds for public safety equipment (bulletproof vests, tasers, vehicles) and carryover items such as three law-enforcement vehicles and $300,000 in ARPA for countywide phone system upgrades.

Capital projects and constraints: Major capital items called out in the presentation include: a new roof at the Molten Water Treatment Plant ($310,000); a building at the Armory Complex ($160,000); stormwater work on Holland and Alaska streets ($2.12 million); Roosevelt Drive reconstruction (federally funded, $7.9 million in-place grant funding to be built and become county-owned once constructed); and a number of water and sewer renewals. Director Hassler clarified the Roosevelt Drive grant is a federal construction project and “we will not ever receive that money” as direct cash; rather the project, when completed, will become a county asset.

Questions from commissioners focused on uses of the interest surplus, timing for federal projects, the duration and terms of the McGree solid-waste contract, and concrete local projects such as bulb-outs in Uptown Butte and civic center improvements. Director Hassler described the process for commissioners to request additions to the budget: any proposed addition must include a proposed funding source and indicate the fiscal impact.

Next steps: Hassler asked that the council refer the preliminary budget to the Finance and Budget Committee for its July 9 meeting; she said the committee’s review will be followed by full-council presentations and public hearings in early August after certified values arrive from the Department of Revenue. The council’s vote Tuesday officially forwarded the preliminary budget to the Finance and Budget Committee for further review and amendment.

The referral vote was recorded as 9-0 in favor. Council leaders and department heads told the meeting they expect multiple amendments between the preliminary draft and final adoption.