Kalispell City Council took its first look at the municipality’s proposed fiscal year 2026 budget this week.

Council mulled over the $182.2 million financial roadmap during work sessions on Tuesday and Wednesday night, debating councilor pay, affordable housing, city trails and at one point, office chairs.  

The total budget proposed by City Manager Doug Russell is about $1.5 million more than the fiscal 2025 budget approved by Council last year. The total general fund, around half of which is funded through property taxes, amounts to $16.9 million, compared to $16.5 last year.  

Councilor Jed Fisher prompted lengthy debate on Tuesday night over councilor pay, arguing that a raise would entice more young people to run for local elected office.  

Councilor Kari Gabriel said she has not seen a pay increase in her 23 years on Council. The mayor and eight-person body share a combined salary of $63,179, plus health insurance and benefits, which amounts to roughly $5,000 per councilor, according to Councilor Sam Nunnally.  

Fisher said he wanted to see residents from any economic background be able to throw themselves into the position full time, floating the idea of making pay meet the cost of living. 

“This is about new people, new ideas,” he said. “If we want a bunch of old, retired people running and they don’t need a dime, fine let’s stay this way.” 

While Fisher is retired, the majority of councilors, including Mayor Mark Johnson have jobs outside of their Council position.   

Councilor Sandy Carlson also liked the idea of a raise.  

“Since Covid, everything we have dealt with, everything we have put up with. And I know this won’t win me votes, I have not filed yet. But to vote myself a little stipend increase, I don’t think there is anything wrong with that,” she said.   

The idea met opposition, including from the mayor, who argued that low pay is not what deters potential candidates, “it’s the vile vitriolic comment we get at times” and the lack of appreciation from the community.  

Johnson described the job as altruistic.  

“I had no clue when I ran for mayor that I got paid,” he said, recalling his surprise at being handed a W-2 form. 

Councilors Chad Graham and Ryan Hunter saw voting themselves a raise as inappropriate. 

A proposal to upgrade Council’s chairs — at a cost of $10,000 — also drew criticism. Councilor Sid Daoud balked at the price tag.  

“I can’t even fathom $10,000 for new chairs,” he said. “I have no doubt that they cost that much, but as far as I am concerned this should be an uncomfortable seat anyway.”  

PARKS AND recreation officials hoped to allocate money to revamping the Hawthorn and Begg Park playgrounds, which have rusted and deteriorated due to both usage and vandalism over the years, according to Director Chad Fincher. The improvements amount to $125,000.  

Another $13,000 was budgeted for asphalt preservation on city trails, which drew criticism from Fisher.  

“This doesn’t cut it,” he said, noting that many city trails were in disrepair.  

Hunter suggested reintroducing a sidewalk and trails maintenance levy in the upcoming spring as a possible solution. 

AS COUNCIL perused the Planning Department’s budget, Hunter suggested investing in a housing task force, an idea he’s brought up previously, that would partner with nonprofits to address affordable housing.  

Other Councilors questioned why the city should spend money on a task force when nonprofits can approach the city to develop deed-restricted housing anyways.  

Hunter responded that an issue he's had in his years on Council is a lack of proactiveness. 

“They can come to us, but we could come to them too,” he said.   

The city is also tapping into $150,000 of a federal grant for a housing study.  

Development Services Director Jarod Nygren, who oversees the Planning Department, said that the timing is right for a study because of the influx of housing units which have lowered the median housing price and caused rents to plateau.  

PUBLIC WORKS is planning to oversee several capital improvement projects and expand its toolshed in the coming fiscal year. The department’s budget expenditure for fiscal 2026 comes in at around $122.3 million, or 67% of the city's total spending for the fiscal year, though that includes money from federal grants. 

Funding amounting to $530,000 for the continued replacement of water meters across the city was also included in the budget. Nearly half have been replaced, with the overhaul expected to wrap up in three years, according to Public Works Director Susie Turner. She said positive responses have already come back about the real time feedback the new meters provides. 

The city also included funds for its response to PFAS in the drinking water, which entailed installing a treatment system and the eventual replacement of two contaminated wells. The city is expected to tap into two federal programs to cover the estimated $22.5 million price tag for the project.   

Around $3 million was allocated for the city’s effort to replace all lead service lines in the city by 2037, per a federal mandate. Council in January voted to access a federal loan to fund the replacements. The loan program offers 60% forgiveness, leaving the city to cover the rest at 1.5% interest.  

OFFICIALS ANTICIPATE spending $5.3 million from the city’s voter-approved public safety levy in fiscal 2026. The mill levy, which went into effect on July 1, 2024, is intended to boost Kalispell’s emergency services, including the addition of a third fire station on the west side of town.  

The levy funded the onboarding of 12 new Fire and Emergency Services personnel along with 11 new Kalispell Police Department staff over fiscal 2025. This coming fiscal year’s budget will include an additional crime analyst position within the Police Department, said Chief Jordan Venezio. 

Newly installed Fire Chief Jay Hagen was on hand Tuesday night to discuss his department’s budget. Hagen assumed the position the day prior. 

“It’s a pleasure to be here and I look forward to serving the Kalispell community,” Hagen said.  

The Fire Department is preparing to bring in new equipment, including a fire engine, and upgrade aging equipment.  

COUNCIL ENGAGED in spirited discussion over trails maintenance, affordable housing and salary among other potential budget priorities during the two nights of meetings, but Russell reminded the body that unless further action is taken, the ideas won't be included in the budget. 

Russell described the fiscal 2026 budget as straightforward and easy to craft, largely due to existing plans that have laid out the framework for needed capital improvements. 

Before adjourning Tuesday night’s meeting, Johnson emphasized the significance of a city’s budget.   

“This is a document that embodies the priorities of the Council body itself and their services to the citizens,” he said.   

Reporter Jack Underhill may be reached at 758-4407 or [email protected].