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Belgrade sees drop in taxable value; council weighs switching fixed mills to dollar levies
Summary
City staff reported a 2025 total market value of $3.14 billion but a decline in total taxable value from roughly $39.7 million to $32.8 million because of recent state tax-rate changes. Council was briefed on options for protecting library and public-safety revenue, including converting fixed mills to fixed dollar levies or recalculating mills on the reduced base.
Belgrade — City staff told the Belgrade City Council on Aug. 4 that certified 2025 market values show total market value at about $3.14 billion, but total taxable value dropped substantially to about $32.8 million from roughly $39.7 million the previous year. Staff attributed the decline to changes enacted by the state legislature that reduced residential tax rates for certain valuation bands.
City staff explained that the drop in taxable value affects the revenue produced by fixed voted mills the city has historically used for the library and public safety. The city faces two primary options: recalculate mill rates on the lower taxable base, which would yield less revenue, or switch those levies to fixed dollar amounts (with the option to add up to 4% inflation annually, per staff explanation). Staff said converting to a dollar levy would likely preserve more revenue in the near term, while continuing with mills would trend toward lower collections until growth restored the tax base.
Staff also reported a decline in TIF (tax increment financing) capacity (down by roughly $200,000 in taxable value), which will affect future debt capacity for downtown projects. Newly taxable value this year was reported at about $3.7 million, which staff said is closer to historical expectations than recent spikes.
The council heard that staff will return with calculations and a recommended resolution soon and that the item will be discussed further at an upcoming workshop and as part of the October budget process. No final decision was made at the Aug. 4 meeting.
Why it matters: the choice of mill-versus-dollar levy affects the city’s near-term budget for library and public safety services and may require a council resolution or public actions; staff warned the change is likely to require an early decision to set levy approach for the coming year.
Next steps: staff will prepare detailed calculations and present recommendations at the workshop next week and again during the budget process prior to the council’s resolution.
