I05. Res. 6038, Mill LevyCITY OF City of Kalispell
ALISPELL post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Doug Russell, City Manager
FROM: Rick Wills, Finance Director
SUBJECT: FY2022 Budget - Mill Levy
MEETING DATE: August 16, 2021
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 161.10 mills.
Last years requested levy was 189.42 mills, a reduction of 28.32 mills (about 15.0%). All things
being equal, this will result in a reduction of the City levy on property tax bills. Because FY22
(2021 certified taxable valuation information) is a reappraisal year, this 15.0% decrease in mills
levied will be offset by any increase in valuation as described below.
The 2020 (FY21) certified taxable valuation information from the State Department of Revenue (see
attached) shows a total taxable value, including newly taxable property, of $48,971,275. The 2021
(FY22) certified taxable valuation information from the State Department of Revenue (see attached)
shows a total taxable value, less newly taxable property, of $55,213,209. Properties taxed last fiscal
year paid approximately $9,276,139 in City property taxes ($48,971,275 * (189.42/1000)). Those
same properties this fiscal yearwill pay approximately $8,894,848 ($55,213,209 * (161.10/1000)).
The General City levy of 138.10 mills is based upon the calculation of the mill value provided by
the State Department of Revenue. The City has a dollar cap which, when combined with 2 carry
forward mills from fiscal year 2021, computes to a maximum allowed levy of 152.10 mills for fiscal
year 2022. The difference of 14.0 mills between the State allowed maximum levy of 152.10 mills
and the proposed levy of 13 8. 10 mills is available to be levied in a future fiscal year. Of the 13 8. 10
general levy mills, 22.10 mills (15.3%) are designated for the operations of the Parks & Recreation
department.
The G. O. Bond levy request is 3.5 mills, a decrease of 1.3 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 19.5 mills, a decrease from the 22.0 mills levied 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 6038, a
resolution making the annual tax levies for the City of Kalispell,
Montana, for the fiscal year 2021-2022.
FISCAL EFFECTS: The levy should generate approximately $8,894,847 of tax revenue
for the City based on a mill value of $55,213. However, the mill value is subject to change as
appeals and other adjustments are made throughout the year.
ATTACHMENTS: Resolution 6038, setting the Mill Levy
2021 Certified Taxable Valuation Information
2020 Certified Taxable Valuation Information
Mill Levy calculation
5 Year History exhibit
Return to:
Kalispell City Clerk
PO Box 1997
Kalispell, MT 59903
RESOLUTION NO. 6038
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF
KALISPELL, MONTANA, FOR THE FISCAL YEAR 2021-2022.
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
2021-2022, the following levies:
MILLS
GENERAL FUND 116.00
Designated for Parks & Recreation (15.3%) 22.10
Total General Levy 138.10
Permissive Levies:
HEALTH INSURANCE 17.50
Health Insurance —designated Parks & Recreation 2.00
Total Health levy 19.50
G. O. BOND — REFINANCED POOL/FIRE HALL 3.50
TOTAL CITY LEVY — all funds MILLS 161.10
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL THIS 16TH DAY OF AUGUST, 2021.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
MONTANA
Department of
REVENUE
2021 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. 7-21
1. 2021 Total Market Value' .................................................................................................
$
3,554,590,262
2. 2021 Total Taxable Value2.................................................................................................
$
57,135,017
3. 2021 Taxable Value of Newly Taxable Property............................................................
$
1,665,283
4. 2021 Taxable Value less Incremental Taxable Value3...................................................
$
55,213,209
5. 2021 Taxable Value of Net and Gross Proceeds4
(Class 1 and Class 2).............................................................................................
$
-
6. TIF Districts
Tax Increment Current Taxable Base Taxable Incremental
District Name Value Value Value
KALISPELL C 9,153,365 7,932,918 1,220,447
KALISPELL DOWNTOWN 1,977,681 1,665,094 312,587
GLACIER RAIL PARK TED[ 258,951 7,057 251,894
KALISPELL H 15,508 126 15,382
KALISPELL G 121,888 390 121,498
Preparer Holly Dale
Total Incremental Value $ 1,921,808
Date 8/2/2021
Market 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
2021 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
$ 16,261
$ 278,740
Note
Special district resolutions must be delivered to the department by the first Thursday after the first Tuesday
in September, 09/09/2021, or within 30 calendar days after the date on this form 7-11-1025(8), MCA.
The county clerk and recorder must provide mill levies for each taxi n urisdiction to the department by the
second Monday in September, 09 13/2021, or within 30 calendar days after the date on this form 15-10-
305(1)(a), MCA.
MONTANA
AAL REVENUE
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
9EPAgrM� Determination of Tax Revenue and Mill Levy Limitations
dP
=P Section 15-10-420, MCA
0
General Fund
9a o� FYE June 30, 2022
"15TR" City of Kalispell, Montana
Auto -Calculation
(If completing manually
Enter amounts in
yellow cells
enter amounts as
instructed)
Enter Ad valorem tax revenue ACTUALLY assessed in the prior year (from Prior
Year's form Line 17)
$ 7,963,709 $
7,963,709
Add: Current year inflation adjustment @ 0.93%
$
74,062
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
$
8,037,771
ENTERING TAXABLE VALUES
Enter'Total Taxable Value' - from Department of Revenue Certified Taxable Valuation Information
form, line # 2
$ 57,135,017 $
57,135.017
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)
$ (1,921,808) $
(1,921.808)
Taxable value per mill (after adjustment for removal of TIF per mill incremental district value)
$
55,213.209
Subtract: 'Total Value of Newly Taxable Property'- from Department of Revenue Certified
1
Taxable Valuation Information form, line # 3 (enter as negative)
$ (1,665,283) $
(1,665.283)
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
$
53,547.926
CURRENT YEAR calculated mill levy
150.10
CURRENT YEAR calculated ad valorem tax revenue
$ 8,287,503
CURRENT YEAR AUTHORIZED LEVY/ASSESSMENT
Enter total number of carry forward mills from prior year (from Prior Year's form Line 22)
2.00 2.00
Total current year authorized mill levy, including Prior Years' carry forward mills
152.10
Total current year authorized ad valorem tax revenue assessment
$ 8,397,929
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.) 138.10 138.10
Total ad valorem tax revenue actually assessed in current year
$ 7,624,944
RECAPITULATION OF ACTUAL:
Ad valorem tax revenue actually assessed
$ 7,394,968
Ad valorem tax revenue actually assessed for newly taxable property $ 229,976
Ad valorem tax revenue actually assessed for Class 1 & 2 properties (net -gross proceeds) $
Total ad valorem tax revenue actually assessed in current year $ 7,624,944
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.) 14.00
Mill Levy - 5 year Comparison
FY2018
FY2019
FY2020
FY2021
FY2022
GENERAL FUND
145.20
146.84
139.00
139.62
116.00
PARKS -designated mills
24.42
24.42
22.00
23.00
22.10
169.62
171.26
161.00
162.62
138.10
-Permissive levies:
G. O. BOND, series 2012 refunding bonds
12.50
11.50
11.00
4.80
3.50
TOTAL CITY LEVY
182.12
182.76
172.00
167.42
141.60
Health Ins. levy -premium increases
21.80
20.90
19.30
20.00
17.50
Parks health
2.20
2.10
2.00
2.00
2.00
TOTAL CITY LEVY w/PERMISSIVE
206.12
205.76
193.30
189.42
161.10
"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
5.70
4.90
5.99
5.99
4.99
(Administered by the County)
Business Improvement District Levy
(plus assessment at .015/sq.ft., plus $100/parcel)
37.5
37.5
22.5
22.5
22.5
D-3