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