BOZEMAN, Mont. -

The city finance department presented a budget of over $86 million for fiscal year 2013 to the city commission. That's the highest budget that the city has ever had.

That's thanks to a number of large projects the city is getting ready to take on.

"This year's budget, by far, will be construction of the water treatment plant, a little over $18 million expected to be spent on that project," Anna Rosenberry of the city finance department told the commission.

That project totals about $43 million.

Another 2 plus million dollars is being spent to replace water and sewer pipes, some of which are over 75 years old. City officials say it's a project that will need to be paid for now, and then won't be necessary again for another 75 years.

"The $2 million pipes, those should have a life of anywhere from 75 to 100 years. And so in their lifetime they won't have to worry about them again," City Manager Chris Kukulski said.

The finance department says the city has $1.9 million in their general fund, and half of that money will go to police and fire department budgets.

"The police and fire budgets account for 50%, half of the costs in the general fund," Rosenberry said.

After deciding at the meeting to appeal a court decision in which the city was told they must repay an insurance company $3 million for a lawsuit brought against them by Mike Delaney, the finance department may have to rearrange a number of funds in order to pay off that decision if they lose the appeal.

"We will have basically two, at the most three annual budget processes in order to address what could be a very large financial commitment on part of the general fund," said Rosenberry.

What does it mean for your bottom line? Under the proposed budget, you'll be spending about $140 more a year through taxes and city service charges.