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Council approves expansion of fire services district after contentious debate over tax responsibility
Summary
Butte-Silver Bow commissioners voted 7-3 to alter the fire services district boundaries to include the 3 MCT district after a heated exchange over whether large industrial taxpayers should contribute to fire funding. Opponents raised legal and tax-cap concerns.
Butte-Silver Bow commissioners voted May 20 to place Resolution No. 2026-18 on final reading and approve a boundary change that would expand the City-County fire services district to include the 3 MCT district, a measure supporters said is necessary to shore up the fire fund and opponents said raises legal and tax-equity concerns.
The measure passed 7-3. Commissioners Jim Fisher, Dan Callahan and Trudy Healy recorded the dissenting votes. Council Chairman John Morgan moved to advance the resolution; the motion was seconded and carried on final reading.
During debate, Commissioner Hattie Thatcher said major industrial taxpayers have paid substantially into the tax base and contrasted that with what she described as REC’s limited contributions: "MRI and NWE have paid over 1.6 million in taxes and REC has paid $0.00," Thatcher said. Fire Chief Zach Osborne argued the change is needed to sustain equipment and operations, telling the council that the department has been constrained by a cap on the fire fund and that some equipment purchases previously came from deployment and DNRC funds rather than the tax base.
Commissioner Dan Callahan questioned both the legality and the policy of the change. "I do not agree and think this is not legal," Callahan said, arguing the council should not equate different property taxpayers under the same fire-rating without clear statutory authority. Other commissioners pressed on how the statutory mill cap applies; Finance Director Karen Hassler referred the council to the Annotated Montana Code and the formula that determines the maximum mills allowed.
Chief Executive J.P. Gallagher said the department is responding with aging equipment and needs investment. Fisher emphasized that the fire department is a service funded by taxpayers and urged fiscal caution.
Council members and staff indicated another public hearing will be scheduled so residents in the Montana Connections area and others affected by the boundary change can attend and comment before final implementation steps.
The council did not adopt an implementation timetable in the session’s debate; legal thresholds and statutory mill calculations referenced by staff will be needed to determine the tax impact and effective date.
