District court chief urges raises as council lays out tax filings and $1.39 million owed to IRS

Valerie Hansberry, chief clerk of the district court, told the Helena City Council she and her staff have not had salary increases since the tenure of Judge King and appealed for a raise for the department, saying the court had contributed funds and purchased city equipment.

"I'm the highest paid employee in the district court ... I make $40,999.92," Hansberry said, adding that other court staff earn roughly $30,000 to $32,000. She said the court brought in about $44,000 last year that the court used to offset city costs and asked the council to reconsider a previously vetoed raise.

Mayor Pro Tem and presiding Chair (at the meeting) said the city faces a series of unresolved financial obligations. The mayor's office reported to the council that, with interest and accruals, the city's outstanding federal tax liability to the IRS totals $1,391,777.04. The mayor and several council members said unpaid filings and ongoing claims limit the city's ability to add new recurring payroll commitments now.

Council members split on the path forward. One member who had supported the court raise previously said they did so because, in their view, court fee revenue and savings from a state-paid judge position appeared to make the increase sustainable in a "perfect situation." Others said the city's general fund — which pays clerk and court staff salaries — is strained by judgments, claims and arrearages and that the administration must resolve outstanding filings before entering payment arrangements.

Discussion turned to the mechanics of reauthorizing the pay increase. Councilors noted that a previously approved pay increase had been vetoed by the mayor; to reinstate it now the council would need to override the veto. Several members said they were not comfortable moving to override the mayor without clearer information about tax filings, cash flow and the city's obligations.

Council members pressed staff for details about the city's filings, and the mayor's office listed missing payroll-related filings and quarterly reports (Form 941/940 variants) going back to 2020—2025 and noted the need to reconcile older periods. The mayor said a formal payment plan with the IRS cannot be negotiated until required filings are complete.

The council debated competing priorities: some members emphasized the operational risk of not filling or properly funding the police department — citing an immediate equipment need for roughly 10 patrol vehicles, an estimated outfitted cost of approximately $660,000 — while others emphasized the ongoing hardship of underpaid court and administrative staff.

No vote was taken on rescinding the mayoral veto or on a new salary ordinance. Several council members requested a follow-up with precise numbers and a schedule for resolving tax filings and claims. The mayor asked staff to present claims paid and additional reconciled reports at the next meeting to clarify what recurring payroll changes the council could responsibly adopt.

What happens next: Hansberry and other department heads may return with updated budget figures and a formal proposal. The council asked for a clearer timetable for completing tax filings and for recommendations on how any approved raises would be phased given the city's outstanding obligations.