Missoula Property Owners Face $2.2 Million Increase in District Assessments

MISSOULA — All property owners within Missoula city limits will face a combined $2.2 million increase in municipal assessments for fiscal year 2026, with double-digit jumps in both parks and street maintenance costs that far exceed inflation rates.

The Missoula City Council will hold public hearings Monday evening on the assessment increases, with final votes scheduled for August 18. The increases represent a 9.2 percent jump for parks services and a 12 percent increase for street maintenance compared to the previous year.

The city levies these assessments through two special districts that cover all properties within the incorporated city boundaries. Park District 1 and Road District 1 encompass the same geographic area — the entire city — but fund different municipal services.

Significant Year-Over-Year Increases

Parks assessments will rise from $10.14 million in fiscal 2025 to $11.08 million in fiscal 2026 — an increase of $938,837 that all city property owners will see reflected in their tax bills.

Street maintenance assessments face an even larger jump, climbing from $10.32 million last year to $11.56 million for the coming fiscal year. The $1.24 million increase represents the larger of the two assessment hikes.

These assessments are levied on all properties within the city based on taxable property values, meaning the burden is distributed across residential and commercial property owners throughout Missoula based on their property's assessed worth.

What Property Owners Pay For

The parks assessment funds maintenance, purchasing and improvement services for city-owned facilities, land and equipment under the Parks and Recreation Department. This includes public parks, recreation facilities, trails, open space, urban forest maintenance, medians, boulevards and pathways.

Street maintenance assessments cover the Public Works and Mobility Department's Street Division operations, cemetery services, engineering functions and Central Services' Fleet Maintenance Division. Property owners pay for street maintenance, sidewalks, curbs, gutters, traffic control systems and other public infrastructure.

Council Member Criticism

Ward 5 Councilman Bob Campbell criticized the assessment increases as an "end run" around state limitations on municipal spending growth.

"I feel both of the special districts are an 'end run' around the State's limitations on how much the general fund can grow," Campbell said in an email response. "While each district has limitations on how the money in them can be spent, clearly the City is more dependent on them as a revenue source. They've increased over 2000% each since their adoption over 10 years ago!"

Campbell called the district structure a "shell game" that unfairly burdens taxpayers.

"I feel this 'shell game' with tax revenue is unsustainable, and creates added burden for Missoula's taxpayers," he said.

Campbell noted that Monday's council votes are procedural steps to open public hearings, not final adoption of the assessments. Final votes are scheduled for August 18, with budget deliberations taking place on August 6 and 13.

Additional Business District Costs

Beyond the citywide assessment increases, businesses in specific areas face additional burdens through specialized improvement districts.

Downtown property owners pay annual Business Improvement District assessments based on a zone system. Zone 1 properties pay $200 plus 2.5 percent of taxable value, while Zone 2 properties pay $150 plus 2 percent of taxable value.

Hotels throughout the city continue paying the Tourism Business Improvement District assessment of $4 per occupied room night — a rate that doubled from $2 earlier this year when the City Council approved the increase in May.

Public Hearing Process

The City Council will hold public hearings on each assessment at 6 p.m. Monday in City Council Chambers at 140 W. Pine St. Property owners can attend in person or participate virtually through Microsoft Teams.

Citizens can provide public comment on each assessment before the council votes. The meeting will be streamed live at ci.missoula.mt.us/webcasts.

Infrastructure Assessments Coming

Property owners should prepare for additional costs beyond the annual citywide assessments. The council will set a public hearing for August 25 to consider $310,158 in project-specific assessments for completed sidewalk, curb and gutter improvements.

These assessments target properties that directly benefit from infrastructure projects, including the Worden/Turner Right-of-Way Improvements Project and Ivy/Franklin Phase I Right-of-Way Improvements Project.

Fee Schedule Increases

The council will also approve updated fee schedules for multiple city departments effective January 1, 2026. These include increases for Parks and Recreation services, Public Works permits, business licensing, planning and engineering reviews, police services and fire department operations.

The combined effect means property owners and businesses face higher costs both through increased assessments and higher fees for city services.

Budget Context

The assessment increases are part of the city's broader fiscal year 2026 budget process. The council will also approve the annual appropriations and Capital Improvement Program, which includes work plans and budgets for all special districts.