Broadwater County adopts revised FY2026 budget and switches voted levies to dollar-based method under new state law

Broadwater County commissioners on Sept. 3 held a public hearing and adopted two resolutions that revise how voter-approved levies are calculated and that finalize the county's fiscal year 2026 operating budget.

Debbie Kelly, Broadwater County finance officer and payroll manager, explained that state legislation requires voted mills to be recalculated using one of two methods and said the county will transition its two voted levies to the MCA 15-10-420 formula (referred to in the meeting as "15 10 4 20"). "The formula in 15 10 4 20 . . . uses a dollar value to generate revenue and not the number of mills that were voted," Kelly said while reading the resolution into the record. The county's two permanent voted levies affected are the rural fire district levy and the noxious weed district levy.

Under the adopted method the county reported per-mill revenue estimates for homes valued at $103,100: $15,619.33 per mill for the rural voted fire district and $24,008.21 per mill for the noxious weed district (figures provided during the hearing). Kelly also read fund-level per-mill values for broader FY2026 budget calculations included in the resolution: countywide general fund $24,008.21 per mill; road district $21,246.39 per mill; mosquito district $4,918.84 per mill; rural fire district $15,319.33 per mill; soil conservation district $19,806.33 per mill; Three Forks Mosquito District $824.55 per mill; and Three Forks Fire District $5,627.03 per mill.

The board then considered and adopted the final FY2026 operating budget by resolution, as required by Montana statute. Kelly told the commissioners the resolution sets legal spending limits at the county fund level, authorizes appropriations to defray expenses and liabilities for the fiscal year beginning July 1, 2025, and notes adjustments that may arise from the 15-10-420 calculation.

Commissioners discussed how the new levy method is meant to stabilize county revenue by converting voted mill rates into fixed dollar amounts that will then be converted to mills based on tax tables; one commissioner described the concept as "hard to understand" for residents who do not work with property tax math regularly but said the dollar-based presentation should be easier for taxpayers to interpret. Commissioners also noted that, while assessed market values rose this year, taxable values are calculated using classification rates and that most residents likely will see little change in total bills because the county must raise roughly the same total revenue.

The board approved both resolutions by voice vote. No roll-call tallies were recorded in the meeting minutes; the clerk recorded the motions as passing.

What this means going forward: the county has adopted the dollar-based method for the two voter-approved levies and has set FY2026 appropriations and fund-level spending limits. The resolutions take effect July 1, 2025, as stated in the adopted language even though the public hearing and adoption occurred after that date. Kelly and county staff indicated materials to help residents estimate tax changes (including Department of Revenue guidance) will be published.

Votes at a glance

- Resolution establishing the method of levying voted mills per House Bill 231 and Senate Bill 542 (transition to MCA 15-10-420): motion and second recorded; voice vote; motion passed.

- Resolution adopting the final FY2026 operating budget and setting appropriation authority (effective 07/01/2025): motion and second recorded; voice vote; motion passed.

Requests for more information from the meeting

Kelly and commissioners encouraged residents to use the Montana Department of Revenue tools to estimate taxable values and to contact county offices with questions about how assessments appear on property tax bills. Kelly noted the county receives about 25% of its revenue from property taxes and that the balance of county revenue includes fees, grants and other sources. Commissioners said staff will prepare explanatory materials for the public.