F04. Resolution 5727 - Mill LevyCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
NJ"NA
REPORT TO: Doug Russell, City Manager
FROM: Rick Wills, Finance Director
SUBJECT: FY2016 Budget - Mill Levy
MEETING DATE: August 17, 2015
BACKGROUND: This resolution is adopted annually to provide a levy to fund the City's
budget for the General Fund, the voted levies for the refinanced Pool and Fire Hall G. O. Bond, and the
mill levy authorized by the legislature to deal with the increased cost in health insurance premiums. The
total City levy requested is 205.60 mills.
The General City levy of 170.10 mills is based upon the calculation of the mill value provided by the
State Department of Revenue. The City has a dollar cap which computes to a maximum allowed levy of
174.60 mills for fiscal year 2016. The difference (4.5 mills) between the State allowed levy (174.60 mills)
and the proposed levy (170.10 mills) is available to be levied in a future fiscal year. The City of Kalispell
now has a total of 6.10 mills authorized but not levied in this and prior fiscal years available to be levied in
any future fiscal year. Of the 170.10 general levy mills, 22.4 mills are designated for the operations of the
Parks & Recreation department.
The G. O. Bond levy request is 12.5 mills, the same request as last fiscal year. The original levy for the
2 separate G.O. Bonds was 20.5 mills in 2006 and has been reduced due to annexations — more properties
supporting the levy, and refinancing.
The Health Insurance levy request is 23 mills, an increase from 18.5 last fiscal year. This permissive levy
is only to finance the increased cost of premiums since 2003 and not the total cost of insurance as it relates
to governmental fund employees. The General Fund budget health line items reflect the total cost of health
insurance in each budget. The Parks & Recreation fund is designated 2.2 mills of this levy for insurance
costs related to Parks and Recreation employees.
RECOMMENDATION: It is recommended the City Council approve Resolution 5727 setting the
mill levy at 205.60.
FISCAL EFFECTS: Levy should generate approximately $7,800,000 of tax revenue for the City
based on a mill value of $37,953. However, the mill value is subject to change as appeals and other
adjustments are made throughout the year.
ATTACHMENTS: Resolution 5727, setting the Mill Levy
Mill levy calculation
2015 Certified Taxable Valuation Information
5 Year History exhibit
RESOLUTION NO.5727
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF
KALISPELL, MONTANA, FOR THE FISCAL YEAR 2015-2016.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS:
SECTION 1. That there is hereby levied upon each and every dollar of the taxable
valuation of the City of Kalispell, Montana, for the fiscal year
2015-2016, the following levies:
MILLS
GENERAL FUND 147.70
Designated for Parks & Recreation 22.40
Total General Levy 170.10
Permissive Levies:
HEALTH INSURANCE 20.8
Health Insurance —designated Parks & Recreation 2.2
Total Health levy 23.00
G. O. BOND — REFINANCED POOL/FIRE HALL 12.50
TOTAL CITY LEVY — all funds MILLS 205.60
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 17TH DAY OF AUGUST, 2015.
Mark Johnson
Mayor
ATTEST:
Judi Funk
Deputy City Clerk
Mill levy calculation - Dept. of Revenue values
for FY2016
DETERMINATION OF TAX REVENUE AND MILL LEVY LIMITATIONS
UNDER HOUSE BILL 124
MAXIMUM PROPERTY TAXES AUTHORIZED:
Ad valorem tax revenue authorized to be assessed 2014-2015
Add: FISCAL YEAR 2016 INFLATION ADJUSMENT @ 0.67% Section 94 (1)(a)
41,532
Less: FY15 SB96 Reimbursement through Entitlement Share
Property Tax Revenue Assessed
CURRENT YEAR LEVY COMPUTATION:
Taxable value per mill
Less: Newly taxable property per mill value,
Taxable value per mill (enter as negative)
Adjusted Taxable value per mill
Authorized mill levy under HB 124
Adjusted taxable value per mill
Add: Newly taxable property per mill value
Taxable value per mill of net and gross proceeds (coun
Taxable value per mill (including newly taxable property)
Authorized mill levy under HB 124 (includes floating mills)
Current property tax revenue limitation
RECAPITULATION:
Previous year adjusted property tax revenue assessed (5)
Amount attributable to newly taxable property
Current property tax revenue
(2,221)
0
2,221
6,198,784
41,532
6,240,316
37,953
(2,221)
35,732
174.6
35,732
2,221
37,953
174.6
6,628,196
6,240,316
387,880
6,628,196
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REVENUE
2015 Certified Taxable Valuation Information
(15-10-202, MCA)
Flathead County
CITY OF KALISPELL
MONTANA
Form AB-72T
Rev.3-12
1. 2015 Total Market Value*..................................................................................................... $ 2,294,127,519
2. 2015 Total Taxable Value........................................................................................................ $ 38,953,059
3. 2015 Taxable Value of Newly Taxable Property.................................................................. $ 2,221,353
4. 2015 Taxable Value less incrr•me•ntai Taxable Value** ...................................................... $ 37,952,79.1
5. 2015 Taxable Value of Net and Gross Proceeds'
(Class 1 and Class 2)—, ......... I ...... —..— ........... I ........ I ................. 5 _
6. TIF Districts
Tax Increment
Current Taxable
Base Taxable
Incremental
District Name
Value
Value
Value
ICALISPELL B
1,337,249
453,612
883,637
KALISPELL C
6,663,338
7,932,918
KALISPELL H
2O,890
126
20,764
KALISPELL G
96,254
390
95,864
Preparer Holly Dale
Total Incremental Value $ 1,000,265
Date 8/3/2015
'"Market value does not include class 1 and class 2 value
*"This value is the taxing jurisdiction's taxable value less total incremental value of all flax increment financin^
districts.
'"The to , able value of class 1 and class 2 is included in the taxable value totals.
For Information Purposes Only
2015 taxable value of centrally assessed property having a marl•ct value of $1 million or more, which has
transferred to a different ownership in compliance with 15-10-202(2), MCA.
I. Value Included "rrewlv ta �.able" property
II. Total value exclusive of "newly taxable" property
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S 35,212
5 708,243
Mill Levy - 5 year Comparison
FY2012 FY2013
FY2014
FY2015
FY2016
GENERAL FUND
123.48 132.20
131.70
134.40
147.70
PARKS -designated mills
22.40 22.40
22.40
22.40
22.40
145.88 154.60
154.10
156.80
170.10
"Permissive levies:
G. O. BOND, series 2012 refunding bonds
13.5 12.5
12.5
12.5
12.50
TOTAL CITY LEVY
159.38 167.10
166.60
169.30
182.60
Health Ins. levy -premium increases
14.95 16.90
16.80
16.80
20.80
Parks health
1.60 1.60
1.70
1.70
2.20
TOTAL CITY LEVY w/PERMISSIVE
175.93 185.60
185.10
187.80
205.60
"The legislature provided for the increase in mills necessary to pay higher health
insurance premiums.
The G.O. Bond debt service levy is voter approved and can go up or down each year depending
on the debt service schedule and the value of the mill.
Other Government levies:
City/County Health Fund
5.81 5.75
5.75
5.74
6.57
(Administered by the County)
Business Improvement District Levy
(plus square footage assessment at .015 sq. ft.)
37.5 37.5
37.5
37.5
37.5
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