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Good Monday morning. In this week’s newsletter, I try to explain a tax matter that impacts the city’s ability to fund improvements in downtown Great Falls. It can get a little into the weeds, what with taxable values, tax increment financing districts and the rest, but the impact can represent big-time tax revenue figures.
But first… heads up, Great Falls
NorthWestern Energy asked the public to be aware of a river drawdown taking place upstream from Rainbow Dam from Oct. 11 to about Oct. 18. The drawdown will allow Montana Fish, Wildlife and Parks to perform maintenance at Giant Springs State Park. An exposed riverbed can be unstable and difficult to walk on, and the utility urged river users to exercise caution.
Valuation of NorthWestern Energy property drives the change
The city of Great Falls paused some funding programs that benefit the downtown area after seeing a sharp reduction in the taxable values in the district.
It’s not that property values are dropping at an alarming rate across downtown. Rather, the change is largely attributed to NorthWestern Energy’s acquisition of Energy West and to the utility’s historic train depot building that had contributed millions to the downtown tax rolls.
Last week, Great Falls Strategic Development Officer Brock Cherry told members of an advisory committee that the city manager paused new applications for a $500,000 program that funds upgrades addressing safety (such as fire sprinklers), environmental issues and building facade improvements. The money comes from the city’s downtown tax increment finance district, which captures growth in tax revenue and reinvests it into the district.
What has alarmed city officials is that the value of property contributing to projects funded by the downtown TIF has substantially decreased over the last year, from $2.1 million in 2025 to $832,000 in 2026.
The historic train depot building, which was home to Energy West until NorthWestern Energy acquired it last year, accounts for a large share of that decrease. A NorthWestern spokesperson said in an emailed statement that the value associated with that site dropped from $1.5 million to $213,000.
The valuations affect revenue, but those dollar figures are not actual revenue. The extent of the revenue reduction isn’t known until the county processes and releases tax bills within the next month (more on how property taxes work here).
The pause in funding represents just a portion of the overall project funding in the TIF. The fund had a nearly $6 million balance in 2025 and can still meet all annual debt payments and previously approved funding obligations, according to Cherry and city documents. But going forward, the city may have less money available to fund new projects that downtown property owners apply for.
“We’re just going to have to see what’s happening, but I think the biggest thing is, in short, over the last several years we have become accustomed to that TIF generating over $2 million in taxable increment revenue,” Cherry said.
“We’re probably entering a new era in that downtown TIF where that isn’t going to be the case,” he added.
The reason for the sharp decrease in property values following NorthWestern Energy’s acquisition of Energy West is not entirely clear. It’s related to a complex valuation process for “centrally assessed” properties. Those kinds of properties have one owner but span long distances across Montana. These are commonly electrical transmission lines, railroads and gas pipelines that transcend normal taxing jurisdictions.
In short, when Energy West owned the downtown train depot, its centrally assessed value and the corresponding property tax revenue benefited the downtown Great Falls district. When the utility was acquired by NorthWestern, which has a much different network of centrally assessed property, it no longer contributes to the same degree.
There are multiple methods for valuing centrally assessed properties across multiple cities and counties. NorthWestern Energy spokesperson Jo Dee Black said in an emailed statement that a change in that method between Energy West and NorthWestern ownership accounts for the change in valuation.
The Montana Department of Revenue did not respond to inquiries about how changes in centrally assessed valuation led to this decrease.
Ultimately, the impact on downtown Great Falls is likely to be fewer dollars filling the downtown TIF fund each year. The downtown area has been viewed as one of the most successful revitalization districts in the city. Not only will property tax revenue be affected, but the Business Improvement District will be as well, which is funded in part through special assessments on downtown properties.
Kellie Pierce, director of Downtown Great Falls and the Business Improvement District, said the estimated reduction is $26,000 in assessment revenue. The district receives about $379,000 in total from those assessments.
Eye on Local Government 🏛️
Great Falls Police Chief Jeff Newton called a press conference last week to comment on a difficult two weeks for the community.
Events included a mutual aid request in Harlem, Montana, on Sept. 24, during which officers responded to an armed man barricaded inside his home. Full details haven’t been released, but early reports said that the armed man confronted officers and died. A woman inside the home was also found dead.
In late September, area law enforcement searched for a 22-year-old missing person who was found dead on Sept. 27.
On Oct. 2, police responded to a stabbing incident near Great Falls High School, which was holding its homecoming football game. A 17-year-old was the victim, and days later, police arrested 21-year-old Ira Hayes Henderson, Jr., in the case, according to media reports.
That same day, police responded to another stabbing in a north Great Falls neighborhood. Officers found four adults and one infant who had been stabbed. The infant, who was just days old, died from the injuries. Police later arrested Nathen Colby Thomas, who is the infant’s father.
On Oct. 4, police responded to a man in a downtown parking lot who died from a self-inflicted gunshot wound.
In the Oct. 7 press conference, Newton acknowledged the suffering that Great Falls residents have faced, in particular those related to the victims. But from his perspective, he spoke about the toll these cases have taken on officers.
“When we talk about these things, it has significant impact on the community,” Newton said. “It also has a significant impact on our personnel.”
Newton recognized the Cascade County Sheriff’s Office, medical first responders, 911 dispatchers, Great Falls Public Schools officials and hospital emergency department staff as working in concert as a public safety network, particularly in difficult times like these past weeks.
“Support one another,” he added. “If somebody is struggling, there are resources for those individuals.”
Great Falls in Brief ⏱️
The annual Night Without a Bed event is set for Nov. 19 at Great Falls College MSU. The student-led event raises awareness of the issues faced by unhoused families and of community services that can help. The event is free and coordinated through Family Promise of Great Falls.
The Portage Route Chapter of the Lewis and Clark Trail Alliance will host historian Shannon Kelly for a talk about Meriwether Lewis and his ornithological contributions. In particular, Lewis’ friendship with the acclaimed naturalist Alexander Wilson was a relationship of mutual scientific inquiry. The event is free and held at the Great Falls Public Library at 6:30 p.m.
The recent Oktoberfest event drew about 1,800 attendees and generated an estimated $80,000 in economic impact, according to Visit Great Falls. The celebration took place Sept. 25 in the 100 block of Central Avenue, and the tourism bureau interviewed organizers on episode 299 of its long-running podcast, We’re No Dam Experts.
From the MTFP Newsroom đź“°
It’s about three weeks until the midterm election (Nov. 3), though many residents will know this from the uptick in mail, television and telephone advertisements. If you’re hoping to dip a toe into candidate research, look no further!
Here are four races to watch around Cascade County.
In addition, check out interviews with candidates for Cascade County justice of the peace and county commissioner.
The county election information page is here.
