H07. Res. 5986, 2021 Budget, Mill LevyCITY OF City of Kalispell
KALISPELL post Office Box 1997 -Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO:
FROM:
SUBJECT:
MEETING DATE:
Doug Russell, City Manager
Rick Wills, Finance Director
FY2021 Budget - Mill Levy
August 17, 2020
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 189.42 mills.
Last years requested levy was 193.3 mills, a reduction of 3.88 mills (about 2.0%). All things being
equal, this will result in a reduction of the City levy on property tax bills. FY21 (2020 certified
taxable valuation information) is not a reappraisal year, so most property owners will see a
corresponding reduction in the City levy.
The 2019 (FY20) certified taxable valuation information from the State Department of Revenue (see
attached) shows a total taxable value, including newly taxable property, of $48,698,439. The 2020
(FY21) certified taxable valuation information from the State Department of Revenue (see attached)
shows a total taxable value, less newly taxable property, of $47,705,700. Properties taxed last fiscal
year paid approximately $9,413,408 in property taxes ($48,698,439 * (193.3/1000)). Those same
properties this fiscal year will pay approximately $9,036,414 ($47,705,700 * (189.42/1000)). This
decrease of slightly over 4.0% is the average City levy decrease a taxpayer will see on his tax bill.
This about 4.0% decrease also happens to correspond to the decreased valuation (2.04%) and the
corresponding decrease in the mill levy (2.01%). Fiscal year 2020 is not a reappraisal year so most
properties will not have the 2.0% decrease in market value and will only realize the 2.0% decrease in
the mill levy.
The General City levy of 162.62 mills is based upon the calculation of the mill value provided by
the State Department of Revenue. The City has a dollar cap which, when combined with 1.5 carry
forward mills, computes to a maximum allowed levy of 164.62 mills for fiscal year 2020. The
difference of 2.0 mills between the State allowed maximum levy of 164.62 mills and the proposed
levy of 162.62 mills is available to be levied in a future fiscal year. Of the 162.62 general levy mills,
23.00 mills (14.25%) are designated for the operations of the Parks & Recreation department.
The G. O. Bond levy request is 4.8 mills, a decrease of 6.2 mills 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 22 mills, an increase from 21.3 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 5986, a
resolution making the annual tax levies for the City of Kalispell,
Montana, for the fiscal year 2020-2021.
FISCAL EFFECTS: The levy should generate approximately $9,275,000 of tax revenue
for the City based on a mill value of $48,971. However, the mill value is subject to change as
appeals and other adjustments are made throughout the year.
ATTACHMENTS: Resolution 5986, setting the Mill Levy
2020 Certified Taxable Valuation Information
2019 Certified Taxable Valuation Information
Mill Levy calculation
5 Year History exhibit
Return to:
Kalispell City Clerk
PO Box 1997
Kalispell, MT 59903
RESOLUTION NO. 5986
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF
KALISPELL, MONTANA, FOR THE FISCAL YEAR 2020-2021.
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
2020-2021, the following levies:
MILLS
GENERAL FUND 139.62
Designated for Parks & Recreation (14.25%) 23.00
Total General Levy 162.62
Permissive Levies:
HEALTH INSURANCE 20.00
Health Insurance —designated Parks & Recreation 2.00
Total Health levy 22.00
G. O. BOND — REFINANCED POOL/FIRE HALL 4.80
TOTAL CITY LEVY — all funds MILLS 189.42
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL THIS 17TH DAY OF AUGUST, 2020.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
MONTANA
RE / 01i
Form AB-72T
Rev. 3-12
2020 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. 2020 Total Market Value' ................................................................................................. $
3,046,186,429
2. 2020 Total Taxable Valuez................................................................................................. $
49,672,451
3. 2020 Taxable Value of Newly Taxable Property............................................................ $
1,966,751
4. 2020 Taxable Value less Incremental Taxable Value3................................................... $
48,971,275
5. 2020 Taxable Value of Net and Gross Proceeds4
(Class 1 and Class 2)............................................................................................. $
-
6. TIF Districts
Tax Increment Current Taxable Base Taxable Incremental
District Name Valuez Value
Value
KALISPELL C 8,249,751 7,932,918
316,833
KALISPELL H 14,966 126
14,840
KALISPELL DOWNTOWN 1,699,617 1,665,094
34,523
GLACIER RAIL PARK TED[ 249,390 7,057
242,333
KALISPELL G 93,037 390
921647
Total Incremental Value $
701,176
Preparer Holly Dale Date 8/3/2020
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
°The taxable value of class 1 and class 2 is included in the taxable value totals
For Information Purposes Only
2020 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 $
D-1
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
��49fPART*R� Determination of Tax Revenue and Mill Levy Limitations
Section 15-10-420, MCA
0 q
General Fund
a FYE June 30, 2021
City of Kalispell, Montana
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)
$ 7,587,256 $
7,587,256
Add: Current year inflation adjustment @ 1.05%
$
79,666
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
$
7,666,922
ENTERING TAXABLE VALUES
Enter'Total Taxable Value' - from Department of Revenue Certified Taxable Valuation
Information form, line # 2
$ 49,672,451 $
49,672.451
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)
$ (701,176) $
(701.176)
Taxable value per mill (after adjustment for removal of TIF per mill incremental district value)
$
48,971.275
Subtract: 'Total Value of Newly Taxable Property' - from Department of Revenue Certified
Taxable Valuation Information form, line # 3 (enter as negative)
$ (1,966,751) $
(1,966.751)
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
$
47,004.524
CURRENT YEAR calculated mill levy 163.11
CURRENT YEAR calculated ad valorem tax revenue
$ 7,987,705
CURRENT YEAR AUTHORIZED LEVY/ASSESSMENT
Enter total number of carry forward mills from prior year (from Prior Year's form Line 22)
1.51 1.51
Total current year authorized mill levy, including Prior Years' carry forward mills 164.62
Total current year authorized ad valorem tax revenue assessment
$ 8,061,651
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
permissive mills imposed in the current year.) 162.62 162.62
Total ad valorem tax revenue actually assessed in current year
I $ 7,963,709 I
RECAPITULATION OF ACTUAL:
Ad valorem tax revenue actually assessed
$ 7,643,876
Ad valorem tax revenue actually assessed for newly taxable property
$ 319,833
Ad valorem tax revenue actually assessed for Class 1 & 2 properties (net -gross proceeds)
$ -
Total ad valorem tax revenue actually assessed in current year
$ 7,963,709
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.)
2.00
Mill Levy - 5 year Comparison
FY2017 FY2018 FY2019 FY2020 FY2021
GENERAL FUND
148.20
145.20
146.84
139.00
139.62
PARKS -designated mills
26.00
24.42
24.42
22.00
23.00
174.20
169.62
171.26
161.00
162.62
-Permissive levies:
G. O. BOND, series 2012 refunding bonds
12.50
12.50
11.50
11.00
4.80
Health Ins. levy -premium increases
23.40
21.80
20.90
19.30
20.00
Parrs health
2.60
2.20
2.10
2.00
2.00
TOTAL CITY LEVY w/PERMISSIVE
212.70
206.12
205.76
193.30
189.42
"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
6.57
5.70
4.90
5.99
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
22.5
22.5