Helena City Council Raises Sales Tax to Fund Infrastructure Improvements

Helena Approves Sales Tax Hike to Fund City Growth and Services

BREAKING NEWS: The Helena City Council has voted to increase the local sales tax,a move aimed at bolstering city services and addressing growing financial obligations. Effective November 1st, the city’s sales tax rate will rise to 10%, matching that of neighboring municipalities.This decision, deliberated extensively by council members, will see the portion of tax revenue controlled by the city increase from 4% to 5%. Crucial to the council’s reasoning is the need to fund essential city operations and expansion. Council president Alice Lobell highlighted the importance of this revenue stream, stating, “For the city to be able to give the citizens the services and all the amenities that they want and that they need, then this sales tax will be very significant to help us with obligations that we have from the bond and for increasing the size of our departments, as we’re growing and our departments need to grow.”

Council President Pro Tempore Laura Joseph echoed this sentiment, emphasizing responsible fiscal management. “I’m glad that this would go to the city’s financial obligations first, I feel like that’s important,” Joseph said. “any excessive of that would go to the council for them to decide how best to use those funds to serve the city.” She further stressed the necessity of the increase for the city’s long-term financial health, noting, “We’re growing. We’re going to need additional resources to help us continue to serve you guys at the level that you should be served. I hate that we need to do this, but in my opinion, it’s very needed to ensure the long-term financial health of the city.”

A significant driver behind the tax increase is Helena’s recent annexation of substantial areas of Jefferson County. This expansion necessitates greater resources for vital departments, particularly police and fire services. “Sence we’ve annexed in so much of Jefferson County, it’s imperative that our police and fire have more staff and have more money to operate,” Lobell explained. “All of this will go to help all of that.”

The allocated revenue distribution is as follows: 1% of the city’s share will be directed towards bond payments for city hall and sports complex projects. Another 1% will support education initiatives,and the remaining 3% will contribute to the general revenue fund.

In othre council business, eight annexations were approved. Fire Chief Chris Miller also provided an update on the Helena Fire Department’s assistance at a large industrial fire in Brierfield on Saturday, July 12th.

The next Helena City Council meeting is scheduled for Monday, July 28th, with a work session commencing at 5 p.m. followed by the council meeting at 6 p.m. at Helena City Hall.

What specific infrastructure projects will the 40% of funds allocated to road repair and reconstruction address?

Understanding the New Sales Tax Increase

On July 14th,2025,the Helena City Council voted to increase the local sales tax by 0.75% to address critical infrastructure needs throughout the city. This increase, effective September 1st, 2025, brings the total sales tax rate in Helena to 8.25%. The decision follows months of public hearings,feasibility studies,and debate regarding the best path forward for funding essential repairs and upgrades. This move aims to bolster Helena infrastructure, addressing long-standing concerns about roads, water systems, and public facilities.

Breakdown of Infrastructure Projects

The revenue generated from the sales tax increase will be dedicated specifically to infrastructure improvements, with a detailed allocation plan outlined by the City Council.Key projects include:

Road Repair & Reconstruction: Approximately 40% of the funds will be allocated to repairing and reconstructing deteriorating roads, including pothole filling, resurfacing, and complete road rebuilds. Priority will be given to heavily trafficked areas and roads identified as safety hazards. This includes projects like the ongoing improvements to Aurora Boulevard and the planned reconstruction of sections of euclid Avenue.

Water & Sewer System Upgrades: 30% will be invested in upgrading Helena’s aging water and sewer systems. This includes replacing aging pipes, improving water treatment facilities, and expanding sewer capacity to accommodate future growth. The city has been under pressure to address lead pipe concerns and improve water quality.

Public Facility Improvements: 20% will be used for improvements to public facilities, such as parks, libraries, and community centers. This includes renovations, accessibility upgrades, and the construction of new facilities to meet the needs of a growing population. the Helena Civic Center is slated for significant upgrades.

Stormwater Drainage Improvements: the remaining 10% will focus on improving stormwater drainage systems to mitigate flooding and protect property. This is particularly critically important given Helena’s susceptibility to heavy rainfall and snowmelt.

Impact on Helena Residents & Businesses

The sales tax increase will impact both residents and businesses in Helena.

For Residents: The increase means a slightly higher cost for everyday purchases. For example,a $100 purchase will now incur $8.25 in sales tax, up from $7.50.Proponents argue this small increase is a worthwhile investment in the city’s future.

For Businesses: Local businesses will be responsible for collecting and remitting the increased sales tax. While some businesses expressed concerns about potentially losing customers to neighboring cities with lower tax rates, the City Council has emphasized the long-term benefits of improved infrastructure for attracting and retaining businesses. The Helena Chamber of Commerce has stated it will work with businesses to navigate the changes.

Public Opinion & debate Surrounding the Tax Increase

The decision to raise the sales tax was not without controversy. Public hearings were well-attended, with residents voicing both support and opposition.

Arguments in Favor: Supporters emphasized the urgent need to address deteriorating infrastructure and the importance of investing in the city’s future. They pointed to the potential for improved property values, increased economic activity, and enhanced quality of life.

Arguments Against: Opponents expressed concerns about the financial burden on residents and businesses, particularly those with lower incomes. Some argued that the city should explore alternative funding sources, such as grants or bonds.

Long-term Benefits of Infrastructure Investment

Investing in infrastructure offers numerous long-term benefits for Helena:

economic Growth: Improved infrastructure attracts businesses, creates jobs, and stimulates economic activity.

Enhanced Quality of Life: Reliable infrastructure provides essential services, such as clean water, safe roads, and efficient transportation, enhancing the quality of life for residents.

Increased Property Values: Well-maintained infrastructure contributes to higher property values.

Improved Public safety: Safe roads, reliable water systems, and effective stormwater drainage systems enhance public safety.

Enduring Growth: Investing in sustainable infrastructure promotes long-term environmental and economic sustainability.

Alternatives Considered Before the Sales Tax Increase

Before settling on the sales tax increase, the Helena City Council explored several alternative funding options:

1. General Fund Allocation: Utilizing existing funds from the city’s general fund was deemed insufficient to address the scale of the infrastructure needs.
2. Bond Issuance: While bonds could provide a large upfront sum, the associated interest payments would significantly increase the overall cost.
3. State & Federal Grants: Pursuing grants is ongoing, but relying solely on grant funding is uncertain and time-consuming.
4. Property Tax Increase: A property tax increase was considered but ultimately rejected due to concerns about its disproportionate impact on homeowners.

Resources for Helena Residents & Businesses

City of Helena Website: https://www.helenamt.gov/ – Provides detailed details about the sales tax increase and infrastructure projects.

Helena Chamber of Commerce: https://helenachamber.com/ – Offers resources and support for local businesses.

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