Resort Tax agrees to fund up to $675K to fire district with contingency

By Jack Reaney SENIOR EDITOR

As expected, the Big Sky Fire District presented its $900,000 ask to the Resort Tax board on April 15, to help with the fire department’s multi-million-dollar budget shortfall.

Initially, a Big Sky Resort Area District board subcommittee recommended funding no additional money, instead earmarking half the ask, $450,000, in case BSFD ultimately runs into a cash flow deficit during fiscal year 2027. The recommendation was based on data showing—in the opinion of the BSRAD subcommittee—that BSFD has sufficient reserves to survive the final third of its three-year, $3.55 million interlocal agreement without any necessary changes to payroll, staffing or services. 

Big Sky PBR Tickets On Sale March 3rd Big Sky PBR Tickets On Sale March 3rd Big Sky PBR Tickets On Sale March 3rd
ADVERTISEMENT

“To date, we believe that while there is a deficit, there is enough in [BSFD’s] reserve fund to continue their operations without harming the community or their department,” said BSRAD board member Sarah Blechta.

Over the course of a long discussion, the BSRAD board abandoned that initial recommendation and decided to offer $450,000 outright, plus an additional $225,000 contingent upon BSFD finding $225,000 in matching dollars. With the match, BSFD can receive its preferred $900,000 in additional funding for fiscal year 2027.

The matching dollars must come from any the following sources: Gallatin County government, possibly as a reconciliatory payment from county reserves; the potential Big Sky Wellness District; revenue generated by a potential property tax levy; or a designated withdrawal from BSFD capital reserves. 

Leaders from both districts emphasized the importance of working together to ensure firefighters are safe as ever, and Big Sky’s emergency services are not compromised. 

“We want to continue to be partners. So thank you guys for coming, I really appreciate it,” Blechta said. “This is one of the most important things we can continue to talk about as a community. We are all in this together… This sucks. Like, this is terrible. Nobody enjoys this. Nobody enjoys that we all paid extra taxes. Nobody enjoys that we’re having to have these discussions.” 

Fire district board member Matt Dodd echoed the message, noting that when folks call 911, they expect a prompt response no matter what.

“We live here, and we expect the fire department to help us. Even though we are not a town, we are not a municipality… The way that this works is because we all help each other,” Dodd said.  

After hearing the initial recommendation, Dodd pushed back against the notion—offered by board member John Zirkle—that financial documents show BSFD is “a healthy organization that has ample reserves to cover the stated deficits over the next 12 to 14 months” until the districts negotiate their next three-year funding agreement. Or as Blechta put it, “This is not an emergency, this is a dilemma.” 

Dodd noted that those financial documents were accurate at a point in time—and the BSRAD board did interpret the financial situation correctly—but that time has passed. He said the $1.6 million currently available in operating funds is not enough money to provide certainty for the fire district’s ability to pay staff and keep the lights on. 

“The biggest challenge, bar none, of our budget is our payroll, staffing, benefits,” Dodd said. As previously reported, 94.65% of BSFD’s current operating budget is dominated by staff payroll and benefits, although Division Chief Jeff Bolton clarified that before the budget conundrum, that ratio was more balanced at 74%. “What I can tell you is that we’re coming to the BSRAD board in good faith, having taken the cuts we could take, operationally.”

After hearing Dodd’s plea, Zirkle suggested the $450,000-plus-$225,000 arrangement, and suggested contingencies for matching funds. 

He explained why he included Gallatin County as a potential source of matching funds. 

“I want to keep pushing on the county, because I am frustrated by the fact that even though the fire department got extra dollars, Gallatin County has owned up to the fact that they made a spreadsheet error that cost this community this dilemma… some type of symbolic accountability, I really want to press on that,” Zirkle said. 

Another potential source, BSFD officials said they plan to pursue a property tax levy, which would require approval from voters. 

In public comment, community member Tallie Lancey suggested BSFD sells back the three-acre plot of land that it recently purchased from Lone Mountain Land Company using $1 million cash during the aftermath of the tax miscalculation. The purchase was a controversial move, and BSFD officials have justified the decision based on exceptional timing and long-term opportunity—the land was relatively cheap and adjacent to BSFD’s existing training facility. Lancey suggested forming an agreement with LMLC to purchase the land in the future, once BSFD is financially stable and ready to construct a future public safety center, as planned. 

Dodd said the district could discuss that possibility. If BSFD did sell the land, the cash could be used as matching funds to unlock the $225,000 from Resort Tax.

Of course, LMLC—or any other involved buyer—would need to agree to terms.

In addition to matching dollars, other contingencies included BSFD’s mandatory attendance at BSRAD meetings at least once per quarter, and a monthly finance report. 

Leaders ended the meeting with smiles and handshakes in mutual confidence that their new funding agreement will ease the pressure of a perplexing and frustrating moment in Big Sky history. 

picture of a yellowstone buffalo with the words
ADVERTISEMENT

Listen

Outlaw Beat Podcast

Joe Borden & Michele Veale Borden

outlaw realty montana outlaw realty montana
ADVERTISEMENT
Outlaw Realty Big Sky Bozeman
ADVERTISEMENT

Upcoming Events

Related Posts