Board approves tax-increment remittance agreement for FY 2024–25

The Missoula County Public Schools Board of Trustees approved a tax increment financing (TIF) remittance agreement for fiscal year 2024–25 with the city, authorizing the district to accept the remitted funds and later present recommendations on how they will be used.

Pat McHugh, speaking for administration, said under state law (MCA 7-15-4291 et seq.) TIF remittances are limited in how they may be used — typically to reduce taxes or bolster reserves — but still represent a beneficial revenue source. McHugh told trustees that last year the district received remittances of $1,490,000 for the elementary district and $695,000 for high school, and that the district used the funds to reduce debt service levies and offset an overbase levy.

The administration sought board approval to sign the agreement with the city; the board will later return with a recommendation for how to allocate the incoming remittance, McHugh said, and noted the budget committee could be part of that conversation. Trustee Witt asked whether the proposed use would go before the budget committee; McHugh said some decisions will be debated there and staff will foreshadow recommendations at the upcoming budget meeting.

Trustees voted unanimously in favor of the remittance agreement. Administration said the remittance is likely to be applied toward tax relief (reducing levies) and reserve enhancement, and that the topic will be addressed again when the board adopts budgets in August.

Speakers in this item included Pat McHugh and Trustees Wake and Witt.