Share Missoula City Council Adopts FY26 Budget with Focus on Stability and Lower Taxes for Most Residents on Facebook
Share Missoula City Council Adopts FY26 Budget with Focus on Stability and Lower Taxes for Most Residents on Linkedin
Email Missoula City Council Adopts FY26 Budget with Focus on Stability and Lower Taxes for Most Residents link
The Missoula City Council voted Aug. 18 to adopt Mayor Andrea Davis’s proposed Fiscal Year 2026 budget, approving it without amendments. The budget passed with broad support, with only one dissenting vote related to the fee resolutions.
Mayor Davis said the budget represents meaningful progress toward strengthening the City’s financial foundation while keeping property tax impacts minimal for residents.
“In my first City budget last year, I was candid about the challenges we faced—particularly the structural budget deficit I inherited in the City’s general fund,” Davis said. “Since then, our team has worked hard to right the ship. While we still have work to do, I’m proud of the meaningful progress we’ve made.”
The FY26 budget reflects a commitment to disciplined fiscal management. By spending $2.4 million less in Fiscal Year 2025 than originally budgeted and benefiting from stronger-than-expected revenues, the City expects to end last fiscal year with $3.3 million in cash reserves—$1.3 million more than projected. The new budget reduces the City’s structural deficit by 19%, from $3.1 million to $2.5 million.
Lower Tax Burden for Most Homeowners
One of the most notable impacts of this budget is on property taxes. While the budget results in a 3.39% overall increase in City property tax revenues (about $2.4 million), most homeowners will see their bills decrease.
For example, a median-priced Missoula home, assessed at $507,000, will pay $257 less in City property taxes in FY26—a 14.3% reduction from last year. While some higher-value properties will see increases, the majority of residential taxpayers will experience savings.
Investments in Services and Infrastructure
Even as the City improves its financial outlook, the budget makes investments in critical services and infrastructure—often funded through creative means outside of property taxes. Highlights include:
- Continued investment in the City’s Housing and Houselessness Program, supporting housing-focused solutions even as the temporary Johnson Street emergency shelter closes.
- Fair, market-informed wages for Missoula police officers through a newly ratified collective bargaining agreement.
- New street maintenance positions funded entirely through gas tax revenues.
- Infrastructure improvements including the Grant Creek restoration, Animal Control Facility expansion, Orange/Cregg signal project, Scott/Philips Roundabout, and the start of construction on voter-approved Fire Station #6.
Mayor Davis emphasized that while progress has been made, challenges remain: “We are still $1.8 million short of meeting our cash reserve policy, and we must stay focused on eliminating the remaining budget deficit. I am committed to doing so responsibly and thoughtfully—without sudden disruptions to City staff or the essential services our residents rely on.”
The adopted budget, Davis said, reflects Missoula’s values: “This budget is about financial stability, responsible investment, and responsive public service. We’re making steady, meaningful progress—and we’re doing it in a way that reduces the burden on most taxpayers.”
Share Property Tax Impact Examples Available on Facebook
Share Property Tax Impact Examples Available on Linkedin
Email Property Tax Impact Examples Available link
The Montana Legislature made changes to the taxable value rates in 2025. This is also a reappraisal year. Many properties saw a large increase in market value, but the taxable value of many homes has decreased. View our presentation to estimate your own 2025 City taxes and see the actual impact on some sample properties.
Share Mayor Davis Presents FY26 Budget on Facebook
Share Mayor Davis Presents FY26 Budget on Linkedin
Email Mayor Davis Presents FY26 Budget link
Mayor Andrea Davis presented her FY26 budget to City Council on July 21. We're making improvements to infrastructure and street maintenance service, shifting to housing-focused solutions in our Housing and Houselessness Program, and ensuring our police officers are fairly compensated. We’re also chipping away at the structural deficit—the gap between what it costs to run the City and what we bring in through ongoing revenues. This budget reduces that gap from $3.1 million to $2.4 million—a 22% improvement over last year. We must stay focused on eliminating the remaining budget deficit. Mayor Davis is committed to doing so responsibly and thoughtfully—without sudden disruptions to City staff or the essential services our residents rely on. We're doing all this with only a 3.5% increase to the portions of our budget that show up on your tax bill.
The next step in the budget process is for City Council to review what Mayor Davis has included in the budget. Council members may propose edits, which they will discuss and vote on in Budget and Finance Committee meetings over the next few weeks. We'll have a stronger picture of what our final budget looks after we receive revenue numbers from the state on August 4. We plan to adopt the final budget on August 18. Read Mayor Davis's one-page budget introduction or view the slideshow online. You can ask questions or leave comments below, or reach out to Mayor Davis and City Council using any of the options on our public comment page.
Share Public Works & Mobility & Missoula Redevelopment Agency Budget Presentations on Facebook
Share Public Works & Mobility & Missoula Redevelopment Agency Budget Presentations on Linkedin
Email Public Works & Mobility & Missoula Redevelopment Agency Budget Presentations link
Public Works and Mobility and the Missoula Redevelopment Agency presented their budget requests during the June 25 Budget and Finance Committee meeting.
Share Central Services; Human Resources; Health Department; and Community Planning, Development & Innovation Budget Presentations on Facebook
Share Central Services; Human Resources; Health Department; and Community Planning, Development & Innovation Budget Presentations on Linkedin
Email Central Services; Human Resources; Health Department; and Community Planning, Development & Innovation Budget Presentations link
Central Services; Human Resources; the Health Department; and Community Planning, Development, and Innovation presented their budget requests during the June 18 Budget and Finance Committee Meeting.
Share City Attorney & Parks & Recreation Budget Presentations on Facebook
Share City Attorney & Parks & Recreation Budget Presentations on Linkedin
Email City Attorney & Parks & Recreation Budget Presentations link
The Missoula City Attorney's office and Parks and Recreation Department presented their budget requests during the June 11 Budget and Finance Committee meeting.
Share Police, Fire, & Parking Budget Presentations on Facebook
Share Police, Fire, & Parking Budget Presentations on Linkedin
Email Police, Fire, & Parking Budget Presentations link
The Missoula Police Department, Missoula Fire Department, and Missoula Parking Commission presented their budget requests during the June 4 Budget and Finance Committee meeting.
