County staff present FY2026 budget; officials recommend keeping current valuation method despite mill increase

Anaconda Deer Lodge County officials on Friday presented a proposed fiscal year 2026 budget that keeps the county debt-free and with healthy reserves but reflects lower state-certified property valuations that will require higher mill rates for several special funds.

John, the county’s budget presenter, told the commission that countywide assessed value dropped from $28.1 million to $26.5 million and city values fell from $8.0 million to $7.1 million after recent legislation from the Montana Legislature. "It was a great year for Anaconda Deer Lodge County," John said, summarizing last year’s results and noting cash reserves and a modest net income.

Why it matters: the lower certified valuations generally force a rise in mills to preserve revenue for county services. Staff recommended what they called "option 1," continuing to use current valuations and the annual calculation method rather than locking special levies to last year’s distributions — an approach they said preserves the potential for growth in small funds such as search-and-rescue and senior services if community valuations rebound.

Staff presented specific fiscal details and capital spending from the previous year: $1.8 million for road paving, $817,000 for a fuel farm at the airport, a $320,000 ambulance, a $150,000 modular unit for fire personnel and roughly $280,000 on courthouse windows and stone. John said the county began the year with about $22.1 million in reserves (with an expected ARCO payment of about $1.2 million arriving shortly after the fiscal close) and had eliminated debt and interest obligations for the current year.

Bill Everett, the county chief executive, highlighted how the Legislature’s new residential tax structure shifts more of the burden to very high-value properties while helping many ordinary homeowners. "We don't pay interest, now we receive it," Everett said, noting the county’s interest income and stronger position compared with a decade ago. Everett walked commissioners through sample property calculations showing that a very high-value home could see its county portion rise substantially while many typical local homes would see decreases.

Officials also reviewed projections for 2026 that show total mills rising (staff estimated an overall mill increase in the mid-teens percent range, driven mainly by firefighting, law enforcement, dispatch and detention levies). John emphasized the county’s conservative budgeting approach and compliance with state guidance to maintain cash reserves around 25–30% of departmental funds.

Legal context and options: staff cited recent state legislation (presented in the packet as House Bill 231 and Senate Bill 542) that gives counties the statutory option to either keep certain special levies at prior distributions (a fixed base) or allow them to vary with certified valuations. John and Everett said they recommend the variable approach (option 1) to avoid permanently locking smaller programs into a lower funding level.

Procedural status: the resolution establishing the mill levy (Resolution 25-17) and a companion item about choosing the valuation method (Resolution 25-19) were on the agenda; commissioners discussed sequencing and placement on the consent/regular agenda, but no formal roll-call vote on the levy or method is recorded in the provided transcript excerpt. A commissioner suggested adopting Resolution 25-19 after deciding the method; staff said they would proceed sequentially.

Next steps: staff will finalize the figures and present the resolutions for formal action in the next appropriate agenda cycle; commissioners and staff indicated they will continue outreach and review of sample taxpayer impacts before any final vote.