H04. Reso 5886 - Budget - Mill Levy- City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
iAI�ISP
Telephone (406) 758-7000 Fax - (406) 758-7758
MONT.41V.A
REPORT TO: Doug Russell, City Manager
FROM: Rick Wills, Finance Director
SUBJECT: FY2019 Budget - Mill Levy
MEETING DATE: August 20, 2018
BACKGROUND: This resolution is adopted annually to provide a levy to fund the City's budget for
the General Fund, the voted levy 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 205.76 mills.
Last years requested levy was 206.12 mills, a reduction of 0.36 mills (about 0.17%). All things
being equal, this will result in a reduction of the City levy on property tax bills. FYI (2018 certified
taxable valuation information) is not a reappraisal year, so most property owners will see a
corresponding reduction in the City levy.
The 2017 (FY 18) certified taxable valuation information from the State Department of Revenue (see
attached) shows a total taxable value, including newly taxable property, of $41,231,226. The 2018
(FYI 9) certified taxable valuation information from the State Department of Revenue (see attached)
shows a total taxable value, less newly taxable property, of $41,171,481. Properties taxed last fiscal
year paid approximately $8,498,580 in property taxes ($41,231,226 * (206.12/100)). Those same
properties this fiscal year will pay approximately $8,471,444 ($41,171,481 * (205.76/1000)). This
decrease of slightly over 0.3% is the average City levy decrease a taxpayer will see on his tax bill.
This about 0.3% decrease also happens to correspond to the decreased valuation (0.14%) and the
corresponding decrease in the mill levy (0.17%).
The General City levy of 171.26 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 172.76 mills for fiscal year 2019. The difference of 1.5 mills between the State allowed
maximum levy of 172.76 mills and the proposed levy of 171.26 mills is available to be levied in a
future fiscal year. Of the 171.26 general levy mills, 24.42 mills are designated for the operations of
the Parks & Recreation department.
The G. O. Bond levy request is 11.5 mills, a decrease of 1 mill from last fiscal year. The original
levy for the two G.O. Bonds, pool and fire hall, was 20.5 mills in 2006. It has since been reduced due
to annexations creating more properties to support the levy and refinancing.
The Health Insurance levy request is 23 mills, a decrease from 24 mills in the 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 2.1 mills of this levy for insurance costs related to Parks and Recreation employees.
RECOMMENDATION: It is recommended that City Council approve Resolution 5886 setting
the mill levy at 205.76.
FISCAL EFFECTS: The levy should generate approximately $8,800,000 of tax revenue
for the City based on a mill value of $42,868. However, the mill value is subject to change as
appeals and other adjustments are made throughout the year.
ATTACHMENTS: Resolution 5886, setting the Mill Levy
2018 Certified Taxable Valuation Information
2017 Certified Taxable Valuation Information
Mill Levy calculation
5 Year History exhibit
Return to:
Kalispell City Clerk
PO Box 1997
Kalispell, MT 59903
RESOLUTION NO. 5886
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF
KALISPELL, MONTANA, FOR THE FISCAL YEAR 2018-2019.
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
2018-2019, the following levies:
MILLS
GENERAL FUND 146.84
Designated for Parks & Recreation 24.42
Total General Levy 171.26
Permissive Levies:
HEALTH INSURANCE 20.90
Health Insurance —designated Parks & Recreation 2.10
Total Health levy 23.00
G. O. BOND — REFINANCED POOL/FIRE HALL 11.50
TOTAL CITY LEVY — all funds MILLS 205.76
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 20TH DAY OF AUGUST, 2018.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
..3
REVENUE
2018 Certified Taxable Valuation Information
(15-10-202, MCA)
Flathead County
CITY OF KALISPELL
Certified values are now available online at property.mt,gov/cov
MONTANA
Form AB-72T
Rev. 3-12
1. 2018 Total Market Value' ................................................................................................. $ 2,638,149,911
2. 2018 Total Taxable Value2................................................................................................. $ 43,808,833
3. 2018 Taxable Value of Newly Taxable Property............................................................ $ 1,696,834
4. 2018 Taxable Value less incremental Taxable Value ................................................... $ 42,868,315
5. 2018 Taxable Value of Net and Gross Proceeds4
(Class 1 and Class 2)............................................................................................ $ -
6. TIF Districts
Tax Increment Current Taxable Base Taxable Incremental
District Name Value2 Value Value
KALISPELL B 1,213,915 453,612 760,303
KALISPELL C 8,008,362 7,932,918 75,444 "
GLACIER RAIL PARK TED[ 7,598 7,057 541
KALISPELL H 15,908 126 15,782
KALISPELL G 88,838 390 88,448
^ Increment based on the percentage of overall increment for the TIFD
Total Incremental Value $ 940,518
Preparer Holly Dale Date 7/30/2018
1Market value does not include class 1 and class 2 value
2Taxable value is calculated after abatements have been applied
3This value is the taxable value less total incremental value of all tax increment financing districts
4The taxable value of class 1 and class 2 is included in the taxable value totals
For Information Purposes Only
2018 taxable value of centrally assessed property having a market value of $1 million or more, which has
transferred to a different ownership in compliance with 15-10-202(2), MCA,
I. Value Included in "newly taxable" property
II. Total value exclusive of "newly taxable" property
u MONTANA
Farm AB-72T
Rev. 3-12
2017 Certified Taxable Valuation Information
(15-10-202, MCA)
Flathead County
CITY OF KALISPELL
Certified values are now available online at property.mt.gov/cov
1, 2017 Total Market Value.. ............................................................................................... $ 2,561,621,909
2. 2017 Total Taxable Value2................................................................................................. $ 42,373,220
3. 2017 Taxable Value of Newly Taxable Property............................................................ $ 1,007,264
4. 2017 Taxable Value less Incremental Taxable Value ............ --- ................................. $ 41,231,226
5. 2017 Taxable Value of Net and Gross Proceeds
(Class 1 and Class 2)........................................................................................... $ -
6. TIF Districts
Tax Increment Current Taxable Base Taxable Incremental
District Name Value$ Value Value
KALISPELL B
1,191,058
453,612
737,446
KALISPELL C
8,211,209
7,932,918
278,291
KALISPELL H
18,877
126
18,751
GLACIER RAIL PARK TED[
7,676
7,057
619
KALISPELL G
107,277
390
106,887
Total Incremental Value $ 1,141,994
Preparer Holly Dale gate 8/2/2017
' Market value does not include class 1 and class 2 value
Taxable value is calculated after abatements have been applied
3This value is the taxable value less total incremental value of all tax increment financing districts
4The taxable value of class 1 and class 2 is included in the taxable value totals
For Information Purposes Only
2017 taxable value of centrally assessed property having a market value of $1 million or more, which has
transferred to a different ownership in compliance with 15-10-202(2), MCA,
1. Value Included in "newly taxable" property
II. Total value exclusive of "newly taxable" property
$
Determination of Tax Revenue and Mill Levy Limitations
Section 15-10420, MCA
Aggregate of all Funds
FYE June 30, 2019
City of Kalispell, Montana
Auto -Calculation
(lf completing manually
Enter amounts in enter amounts as
yellow cells instructed)
Enter Ad valorem tax revenue ACTUALLY assessed in the prior year (from Prior Year's form Line:
$ 6,993,641 $ 6,993,641
Add: Current year inflation adjustment @ 0.82%
Adjusted ad valorem tax revenue
$ 57,348
$ 7,050,989
ENTERING TAXABLE VALUES
Enter'Total Taxable Value'- from Department of Revenue Certified Taxable Valuation Information
form, line # 2 1 $ 43,808,833 $ 43,808.833
Subtract: 'Total Incremental Value' of all tax increment financing districts (TIF Districts) - from
Department of Revenue Certified Taxable Valuation Information form, line # 6
(enter as negative) $ (940,518) $ (940.518)
Taxable value per mill (after adjustment for removal of TIF per mill incremental district value)
$ 42,863.315
Subtract: 'Total Value of Newly Taxable Property'- from Department of Revenue Certified Taxable
Valuation Information form, line # 3 (enter as negative) 1 $ (1,696,834) : $ (1,696.834)
Adjusted Taxable value per mill
CURRENT YEAR calculated mill levy
CURRENT YEAR calculated ad valorem tax revenue
CURRENT YEAR AUTHORIZED LEVY/ASSESSMENT
Enter total number of carry forward mills from prior year (from Prior Year's form Line 22)
Total current year authorized mill levy, including Prior Years' carry forward mills
$ 41,171.481
171.26
$ 7;341,628:
1.50 1,50
172.75
Total current year authorized ad valorem tax revenue assessment $ 7,405,930
CURRENT YEAR ACTUALLY LEVIED/ASSESSED
Enter number of mills actually levied in current year
(Number should equal total non -voted mills, which includes the number of carry forward mills,
actually imposed per the final approved current year budget document. Do Not include voted or
permissve mills imposed in the current year.) 171.26 171.26
Total ad valorem tax revenue actually assessed in current year
$
7,341,$28
RECAPITULATION OF ACTUAL:
Ad valorem tax revenue actually assessed
$
7,051;02$
Ad valorem tax revenue actually assessed for newly taxable property
$
290,600
Total ad valorem tax revenue actually assessed in current year
$
7,341,628
Total carry forward mills that may be levied in a subsequent year
(Number should be equal to or greater than zero. A (negative) number indicates an over levy.)
1.50
Mill Levy - 5 year Comparison
FY2015
FY2016
FY2017
FY2018
FY2019
GENERAL FUND
134.40
147.70
148.20
145.20
146.84
PARKS -designated mills
22.40
22.40
26.00
24.42
24.42
156.80
170.10
174.20
169.62
171.26
**Permissive levies:
G. O. BOND, series 2012 refunding bonds
12.5
12.50
12.50
12.50
11.50
TOTAL CITY LEVY
169.30
182.60
186.70
182.12
182.76
Health Ins. levy -premium increases
16.80
20.80
23.40
21.80
20.90
Parks health
1.70
2.20
2.60
2.20
2.10
TOTAL CITY LEVY w/PERMISSIVE
187.80
205.60
212.70
206.12
205.76
"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
5.75
5.74
6.57
5.70
4.90
(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