Missoula Asks Property Owners to Fund $721,000 Gap for Train Horn Project Originally Estimated at $130,000

MISSOULA — The City of Missoula is asking property owners in the Lower Rattlesnake and Heart of Missoula neighborhoods to fund a $721,000 gap for a train horn noise reduction project that was originally estimated at $130,000 in 2021 and expected to be completed by summer 2022.

The city launched a community survey on November 10 to gauge interest in creating a Special Improvement District to pay for the project, which has ballooned to an estimated $921,000—more than seven times the original cost estimate.

The request comes as the city operates with a $2.5 million budget deficit and remains $1.8 million short of meeting its cash reserve policy requirements, according to Western Montana News’ previous reporting.

Project Timeline Shows Years of Delays

In October 2021, the Missoula Redevelopment Agency authorized up to $200,000 to install wayside horns at the Spruce Street/Greenough Drive railroad crossing—more than the $130,000 cost estimate for the project at that time.

According to city documents on the EngageMissoula website, the city anticipated completing installation by “late spring to early summer 2022.”

The project stalled throughout 2022 and 2023 as the city waited for agreements with Montana Rail Link and Burlington Northern Santa Fe regarding permits, equipment installation, and maintenance responsibilities.

By November 2025, the project cost had grown to $921,000 and now includes not only wayside horns at Madison/Greenough but also new gate arms at the Taylor Street crossing.

Special Improvement District Proposal

A Special Improvement District is a financing mechanism that allows property owners within a defined area to pay for improvements through special assessments added to their property tax bills.

The MRA’s $200,000 commitment from 2021 would cover approximately 22% of the current project cost, leaving a $721,000 funding gap the city is proposing to fill through the SID.

The city’s survey asks property owners how much they would be willing to pay but does not disclose how many properties would be included in the SID or what the actual per-property assessment would be.

Survey questions ask residents to rate how train noise impacts their property values and daily life, what benefits they believe the project would bring, and whether commercial businesses should pay more than residential properties.

The survey also asks whether respondents would contribute to a voluntary fundraising campaign, though it’s unclear why the city would pursue a mandatory SID if voluntary contributions were sufficient.

Context: City Finances and MRA Spending

The FY2026 budget adopted in August authorizes the city to spend $2.5 million more than it expects to collect in revenues while simultaneously increasing overall city property tax revenues by 3.39%, or approximately $2.4 million.

Mayor Andrea Davis acknowledged the city remains “$1.8 million short of meeting our cash reserve policy” and must continue working to eliminate the remaining budget deficit.

In September, Western Montana News reported on the MRA board considering $75,000 in tax increment financing for a library green roof project—an aesthetic enhancement that had been eliminated from the original library design in 2021 “in response to budget restraints.”

Tax increment financing diverts property tax revenue from schools and other taxing jurisdictions to redevelopment projects within designated urban renewal districts.

Survey Timeline

The city’s survey remains open through December 5. City officials plan to compile results and finalize an SID recommendation by December 29, with a potential SID proposal presented to City Council in early 2026.