Mayor opens FY27 budget hearing; staff flag MRA remittance, savings and tax shifts

Mayor Andrea Davis presented highlights of the executive FY27 budget and staff walked the council through the documents to be reviewed in committee. The mayor said the budget relies in part on a one-time remittance from the Missoula Redevelopment Agency: "This budget does anticipate adding approximately 750,000 to the bottom line to our general fund cash reserves," and she also noted "fiscal year 27 does have a reliance on a onetime source of revenue to balance the budget. That is a remittance from the Missoula redevelopment agency, which totals 2,500,000 to the city." The mayor described several proposed cost-saving measures, including leaving three positions unfilled (about $354,000), reducing fire overtime by $140,000, and delaying fleet purchases (about $387,000).

Finance Director Lee Griffin gave a guide to reading the budget documents and a schedule for continued deliberations: committee work on Aug. 12 and expected final adoption on Aug. 17. Staff and the CAO also clarified legal and accounting implications of MRA remittances; CAO Dale Bickel said state law allows remittance of unused and uncommitted tax-increment funds and jurisdictions treat the receipts under their own rules. Staff pointed to Department of Revenue certified taxable values that changed earlier estimates; the mayor said a median assessed home moved from a previously estimated $72 increase to a slight decrease after the revenue department figures were received. The public hearing will remain open until the council completes deliberations and votes on Aug. 17.