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H04. Res. 6091, 2023 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: Aimee Cooke, Interim Finance Director SUBJECT: FY2023 Budget - Mill Levy MEETING DATE: August 15, 2022 BACKGROUND: This resolution is adopted annually to provide a levy to fund the City's budget for the General Fund, and the mill levy authorized by the legislature to deal with the increased cost in health insurance premiums. The total City levy requested is 165.58 mills. The General City levy of 145.43 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 14 carry forward mills from fiscal year 2022, computes to a maximum allowed levy of 155.43 mills for fiscal year 2023. The difference of 10.0 mills between the State allowed maximum levy of 155.43 mills and the proposed levy of 145.43 mills is available to be levied in a future fiscal year. Of the 145.43 general levy mills, 22.00 mills (15.3%) are designated for the operations of the Parks & Recreation department. The Health Insurance levy request is 20.15 mills, an increase from the 19.5 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 6091, a resolution making the annual tax levies for the City of Kalispell, Montana, for the fiscal year 2022-2023. FISCAL EFFECTS: The levy should generate approximately $9,375,118 of tax revenue for the city based on a mill value of $56,619. However, the mill value is subject to change as appeals and other adjustments are made throughout the year. ATTACHMENTS: Resolution 6091, setting the Mill Levy 2022 Certified Taxable Valuation Information Mill Levy calculation 5 Year History exhibit Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59903 RESOLUTION NO.6091 A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF KALISPELL, MONTANA, FOR THE FISCAL YEAR 2022-2023. 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 2022-2023, the following levies: MILLS GENERAL FUND 123.43 Designated for Parks & Recreation (15.3%) 22.00 Total General Levy 145.43 Permissive Levies: HEALTH INSURANCE 18.15 Health Insurance —designated Parks & Recreation 2.00 Total Health levy 20.15 TOTAL CITY LEVY — all funds MILLS 165.58 PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 15TH DAY OF AUGUST 2022. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk MONTANA A4L Form AB-72T M O N TA N A Rev. 7-21 DEPAPTMENT OF REVENUE 2022 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. 2022 Total Market Value l................................................................................................. $ 3,676,016,903 2. 2022 Total Taxable Value................................................................................................. $ 59,038,020 3. 2022 Taxable Value of Newly Taxable Property............................................................ $ 1,904,298 4. 2022 Taxable Value less Incremental Taxable Value3................................................... $ 56,619,869 5. 2022 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 9,625,881 7,932,918 1,692,963 KALISPELL DOWNTOWN 1,965,633 1,665,094 300,539 GLACIER RAIL PARK TED[ 281,211 7,057 274,154 KALISPELL H 18,351 126 18,225 KALISPELL G 132,660 390 132,270 Total Incremental Value $ 2,418,151 Preparer Holly Dale Date 8/1/2022 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 2022 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 $ 200,520 II. Total value exclusive of "newly taxable" property $ 290,873 Note Special district resolutions must be delivered to the department by the first Thursday after the first Tuesday in September, 09/08/2022, 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 taxing iurisdiction to the department by the second Monday in September, 09/12/2022, or within 30 calendar days after the date on this form 15-10- 305(1)(a), MCA. Determination of Tax Revenue and Mill Levy Limitations P ppEP4gT�E o Section 15-10-420, MCA Aggregate of all Funds/or Fund FYE June 30, 2023 9�M^rsraP `pP Entity Name: Auto -Calculation Enter amounts in (If completing manually enter amounts as yellow cells instructed) Enter Ad valorem tax revenue ACTUALLY assessed in the prior year (from Prior Year's form Line 17) $ 7,624,944 $ 7,624,944 Add: Current year inflation adjustment @ 1.77 % $ 134,962 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) $ - Subtract: Entitlement Share Class 8 Business Equipment Personal Property Tax Reimbursement (15-1-123 MCA) 'New for FY2023 (enter as negative) $ (21,673) $ (21,673) Adjusted ad valorem tax revenue $ 7,738,233 ENTERING TAXABLE VALUES Enter'Total Taxable Value' - from Department of Revenue Certified Taxable Valuation Information form, line # 2 1 $ 59,038,020 1 $ 59,038.020 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 $ (2,418,151) $ (2,418.151) Taxable value per mill (after adjustment for removal of TIF per mill incremental district value) $ 56,619.869 Subtract: 'Total Value of Newly Taxable Property'- from Department of Revenue Certified Taxable Valuation Information form, line # 3 (enter as negative) 1 $ (1,904,298) $ (1,904.298) 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 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 Total current year authorized ad valorem tax revenue assessment 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.) Total ad valorem tax revenue actually assessed in current year RECAPITULATION OF ACTUAL: Ad valorem tax revenue actually assessed Ad valorem tax revenue actually assessed for newly taxable property Ad valorem tax revenue actually assessed for Class 1 & 2 properties (net -gross proceeds) Total ad valorem tax revenue actually assessed in current year 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.) $ 54,715.571 iESIEIK3 $ 8,007,748 14.00 14.00 155.43 $ 8,800,426 145.43 145.43 $ 8,234,228 $ 7,957,286 $ 276,942 It _ $ 8,234,228 10.00 Mill Levy - 5 year Comparison FY2019 FY2020 FY2021 FY2022 FY2023 GENERAL FUND 146.84 139.00 139.62 116.00 123.43 PARKS -designated mills 24.42 22.00 23.00 22.10 22.00 171.26 161.00 162.62 138.10 145.43 "Permissive levies: G. O. BOND, series 2012 refunding bonds 11.50 11.00 4.80 3.50 0.00 TOTAL CITY LEVY 182.76 172.00 167.42 141.60 145.43 Health Ins. levy -premium increases 20.90 19.30 20.00 17.50 18.15 Parks health 2.10 2.00 2.00 2.00 2.00 TOTAL CITY LEVY w/PERMISSIVE 205.76 193.30 189.42 161.10 165.58 "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 4.90 5.99 5.99 4.99 0.00 (Administered by the County) Business Improvement District Levy (plus assessment at .015/sq.ft., plus $100/parcel) 37.5 22.5 22.5 22.5 22.5