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I04. Res. 5932 - Tax Levy'104%904h%. City of Kalispell KTeleALISPELL post Office Box 1997 -Kalispell, Montana 59903-1997 phone (406) 758-7701 Fax - (406) 758-7758 REPORT TO: Doug Russell, City Manager FROM: Rick Wills, Finance Director SUBJECT: FY2020 Budget - Mill Levy MEETING DATE: August 19, 2019 BACKGROUND: This resolution adopted annually provides 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 fund the increased cost in health insurance premiums. The total City levy requested is 193.3 mills. Last years requested levy was 205.76 mills, a reduction of 12.46 mills (about 6.1%). All things being equal, this will result in a reduction of the City levy on property tax bills. However, because the state does reappraisals every 2 years, this will only be the case every other year. FY20 (2019 certified taxable valuation information) is a reappraisal year, so I will evaluate the reduction of the levy on a citywide basis. The 2018 (FYI 9) certified taxable valuation information from the State Department of Revenue (see attached) shows a total taxable value, including newly taxable property, of $43,808,833. The 2019 (FY20) certified taxable valuation information from the State Department of Revenue (see attached) shows a total taxable value, less newly taxable property, of $47,634,078. Properties taxed last fiscal year paid approximately $9,014,105 in property taxes ($43,808,833 * (205.76/100)). Those same properties this fiscal year will pay approximately $9,207,667 ($47,634,078 * (193.3/1000)). This increase of slightly over 2% is the average City levy increase a taxpayer will see on his tax bill. This about 2% increase also closely correspond to the increased valuation (8.7%) offset by the corresponding decrease in the mill levy (6.1%). A residential property with a market value of $200,000 in fiscal year 2018, would have paid a City levy of $556. In fiscal year 2019, that same City property would have a reassessed market value of approximately $217,400, and will pay a City levy of $567, an increase of 2%. The General City levy of 161.00 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 162.51 mills for fiscal year 2020. The difference of 1.51 mills between the State allowed maximum levy of 162.51 mills and the proposed levy of 161.00 mills is available to levy in a future fiscal year. Of the 161.00 general levy mills, 22.00 mills are designated for the operations of the Parks & Recreation department. The G. O. Bond levy request is 11.0 mills, a decrease of 0.5 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 21.3 mills, a decrease from 23 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 2.0 mills of this levy for insurance costs related to Parks and Recreation employees. RECOMMENDATION: It is recommended that City Council approve Resolution 5932, a resolution making the annual tax levies for the City of Kalispell, Montana, for the fiscal year 2019-2020. FISCAL EFFECTS: The levy should generate approximately $9,100,000 of tax revenue for the City based on a mill value of $47,126. However, the mill value is subject to change as appeals and other adjustments are made throughout the year. ATTACHMENTS: Resolution 5932, setting the Mill Levy 2019 Certified Taxable Valuation Information 2018 Certified Taxable Valuation Information Mill Levy calculation 5 Year History exhibit Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59903 RESOLUTION NO. 5932 A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF KALISPELL, MONTANA, FOR THE FISCAL YEAR 2019-2020. 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 2019-2020, the following levies: MILLS GENERAL FUND 139.00 Designated for Parks & Recreation 22.00 Total General Levy 161.00 Permissive Levies: HEALTH INSURANCE 19.30 Health Insurance —designated Parks & Recreation 2.00 Total Health levy 21.30 G. O. BOND — REFINANCED POOL/FIRE HALL 11.00 TOTAL CITY LEVY — all funds MILLS 193.30 PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 19TH DAY OF AUGUST, 2019. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk MONTANA REVENUE Form AB-72T Rev. 3-12 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 1. 2018 Total Market Value' ................................................................................................. $ 2,638,149,911 2. 2018 Total Taxable Value ................................................................................................ $ 43,808,833 3. 2018 Taxable Value of Newly Taxable Property............................................................ $ 1,696,834 4. 2018 Taxable Value less incremental Taxable Value3................................................... $ 42,868,315 5. 2018 Taxable Value of Net and Gross Proceeds¢ (Class 1 and Class 2)............................................................................................. $ - 6. TIF Districts Tax Increment Current Taxable Base Taxable Incremental District Name ValueZ 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 $ - MONTANA REVENUE Form AB-72T Rev. 3-12 2019 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. 2019 Total Market Value l................................................................................................. $ 2,972,358,649 2. 2019 Total Taxable Value 2-............................................................................................... $ 48,698,439 3. 2019 Taxable Value of Newly Taxable Property............................................................ $ 1,064,361 4. 2019 Taxable Value less Incremental Taxable Value ................................................... $ 47,125,814 5. 2019 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 1,312,187 453,612 858,575 KALISPELL C 8,542,957 7,932,918 610,039 KALISPELL H 14,967 126 14,841 GLACIER RAIL PARK TED[ 5,409 7,057 - A KALISPELL G 89,560 390 89,170 ^ Increment based on the percentage of overall increment for the TIFD Total Incremental Value $ 1,572,625 Preparer Holly Dale Date 7/31/2019 1Market 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 2019 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 $ 13 II. Total value exclusive of "newly taxable" property $ 0 Determination of Tax Revenue and Mill Levy Limitations Section 15-10-420, MCA General Fund - including Parks & Recreation FYE June 30, 2020 City of Kalispell Auto -Calculation (If 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 17) $ 7,341,628 $ 7,341,628 Add: Current year inflation adjustment @ 1.02% $ 74,885 Subtract: Ad valorem tax revenue ACTUALLY assessed in the prior year for Class 1 and 2 property, (net and gross proceeds) (from Prior Year's form Line 20)- (enter as negative) $ Adjusted ad valorem tax revenue $ 7,416,513 ENTERING TAXABLE VALUES Enter'Total Taxable Value' - from Department of Revenue Certified Taxable Valuation Information form, line # 2 $ 48,698,439 $ 48,698.439 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) $ (1,572,625) $ (1,572.625) Taxable value per mill (after adjustment for removal of TIF per mill incremental district value) $ 47,125.814 Subtract: 'Total Value of Newly Taxable Property' - from Department of Revenue Certified Taxable Valuation Information form, line # 3 (enter as negative) $ (1,064,361) $ (1,064.361) Subtract: 'Taxable Value of Net and Gross Proceeds, (Class 1 & 2 properties)' - from Department of Revenue Certified Taxable Valuation Information form, line # 5 (enter as negative) $ - Adjusted Taxable value per mill $ 46,061.453 CURRENT YEAR calculated mill levy 161.01 CURRENT YEAR calculated ad valorem tax revenue $ 7,587,727 CURRENT YEAR AUTHORIZED LEVY/ASSESSMENT Enter total number of carry forward mills from prior year (from Prior Year's form Line 22) 1.50 1.50 Total current year authorized mill levy, including Prior Years' carry forward mills 162.51 Total current year authorized ad valorem tax revenue assessment $ 7,658,416 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.) 161.00 161.00 Total ad valorem tax revenue actually assessed in current year I $ 7,587,256 I RECAPITULATION OF ACTUAL: Ad valorem tax revenue actually assessed $ 7,415,894 Ad valorem tax revenue actually assessed for newly taxable property $ 171,362 Ad valorem tax revenue actually assessed for Class 1 & 2 properties (net -gross proceeds) $ - Total ad valorem tax revenue actually assessed in current year $ 7,587,256 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.) 1.51 Mill Levy - 5 year Comparison FY2016 FY2017 FY2018 FY2019 FY2020 GENERAL FUND 147.70 148.20 145.20 146.84 139.00 PARKS -designated mills 22.40 26.00 24.42 24.42 22.00 170.10 174.20 169.62 171.26 161.00 **Permissive levies: G. O. BOND, series 2012 refunding bonds 12.50 12.50 12.50 11.50 11.00 TOTAL CITY LEVY 182.60 186.70 182.12 182.76 172.00 Health Ins. levy -premium increases 20.80 23.40 21.80 20.90 19.30 Parks health 2.20 2.60 2.20 2.10 2.00 TOTAL CITY LEVY w/PERMISSIVE 205.60 212.70 206.12 205.76 193.30 "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 5.74 6.57 5.70 4.90 5.99 (Administered by the County) Business Improvement District Levy (plus assessment at.015/sq.ft., plus $100/parcel) 37.5 37.5 37.5 37.5 22.5