H03. Res. 6147 2024 Tax 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, Finance Director
SUBJECT: FY2024 Budget - Mill Levy
MEETING DATE: August 21, 2023
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 139.82 mills.
Last years requested levy was 165.58 mills, a reduction of 25.76 mills (about 15.6%). All things
being equal, this will result in a reduction of the City levy on property tax bills. Because FY24 (2023
certified taxable valuation information) is a reappraisal year, this 15.6% decrease in mills levied will
be offset by any increase in valuation as described below.
The 2022 (FY23) certified taxable valuation information from the State Department of Revenue (see
attached) shows a total taxable value, including newly taxable property, of $56,619,869. The 2023
(FY24) certified taxable valuation information from the State Department of Revenue (see attached)
shows a total taxable value, less newly taxable property, of $75,980,296. Properties taxed last fiscal
year paid approximately $ 9,375,118 in City property taxes ($56,619,869 * (165.58/1000)). Those
same properties plus last year's growth across all property classes which is now accounted for in this
fiscal year will pay approximately $10,623,565 ($75,980,296*(139.82/1000)). Hence, the city will
receive approximately 13% more in this year's tax receipts. However, this does not mean individual
properties will see the same increase as some of that will be shifted to new growth, differing
property classes, and individual reassessment values. Individual residential property owners can
identify the impact of municipal property taxes by using the same formula: (FY22 taxable value on
their property * 165.58/1000)) vs (FY23 taxable value on their property* 139.82/1000)).
The General City levy of 123.67 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 10 carry
forward mills from fiscal year 2023, computes to a maximum allowed levy of 124.67 mills for fiscal
year 2024. The difference of 1.0 mill between the State allowed maximum levy of 124.67 mills and
the proposed levy of 123.67 mills is available to be levied in a future fiscal year. Of the 123.67
general levy mills, 18.5 mills (15%) are designated for the operations of the Parks & Recreation
department.
The Health Insurance levy request is 16.15 mills, a decrease from the 20.15 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 1.5 mills of this levy for insurance costs related to Parks and Recreation employees.
RECOMMENDATION: It is recommended that City Council approve Resolution 6147, a
resolution making the annual tax levies for the City of Kalispell,
Montana, for the fiscal year 2023-2024.
FISCAL EFFECTS: The levy should generate approximately $10,623,565 of tax revenue
for the city based on a mill value of $75,980. However, the mill value is subject to change as
appeals and other adjustments are made throughout the year.
ATTACHMENTS: Resolution 6147, setting the Mill Levy
2022 Certified Taxable Valuation Information
2023 Certified Taxable Valuation Information
Mill Levy calculation
5 Year History exhibit
Return to:
Kalispell City Clerk
PO Box 1997
Kalispell, MT 59903
RESOLUTION NO. 6147
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF
KALISPELL, MONTANA, FOR THE FISCAL YEAR 2023-2024.
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
2023-2024, the following levies:
MILLS
GENERAL FUND 105.17
Designated for Parks & Recreation (15%) 18.50
Total General Levy 123.67
Permissive Levies:
HEALTH INSURANCE 14.65
Health Insurance —designated Parks & Recreation 1.50
Total Health levy 16.15
TOTAL CITY LEVY — all funds MILLS 139.82
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL THIS 21 ST DAY OF AUGUST, 2023.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
MCINTANA
AAt4L Form AB-72T
M O N TA N A Rev. 7-21
DEPARTMENT O F
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................................................................................ ...... $ 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 Value ................................................... $ 56,619,869
5. 2022 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 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
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
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 jurisdiction 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.
At4L
MONTANA
DEPARTMENT OF
REVENUE
2023 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, 6-23
1. 2023 Total Market Valuel................................................................................................. $ 5,292,800,723
2. 2023 Total Taxable Valuez................................................................................................. $ 82,894,816
3. 2023 Taxable Value of Newly Taxable Property............................................................ $ 2,404,245
4. 2023 Taxable Value less Incremental Taxable Value ................................................... $ 75,980,296
5. 2023 Taxable Value of Net and Gross Proceeds4
(Class 1 and Class 2)..........................................
6. TIF Districts
Tax Increment
District Name
Current Taxable
Value
Base Taxable Incremental
Value Value
KALISPELL C
13,117,286
7,932,918
5,184,368
KALISPELL DOWNTOWN
2,866,943
1,665,094
1,201,849
GLACIER RAL PARK T€DD
338,146
7,057
331,089
KALISPELL H
21,699
126
21,573
KALISPELL G
176,031
390
175,641
Preparer Holly Dale
Total Incremental Value $
Date 8/7/2023
6,914,520
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
2023 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
Note
Special district resolutions must be delivered to the department by the first Thursday after the first Tuesday
in September, 09/07/2023, 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, jurisdiction to the department by the
second Monday in September, 09/11/2023, 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
Section 15-10-420, MCA
General Fund
FYE June 30, 2024
City of Kalispell, Montana
Enter amounts in
yellow cells
Enter Ad valorem tax revenue ACTUALLY assessed in the prior vear (from Pr: _ .
Year's form Line 17) $ 8,234,228
Add: Current year inflation adjustment @ 2.46
Subtract: Ad valorem tax revenue ACTUALLY assessed in the prior yea r 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
Auto -Calculation
(If completing manually
enter amounts as
instructed)
$ 8,234,228
$ 202,562
a.
$
8,436,790
ENTERING TAXABLE VALUES
Enter'Total Taxable Value' - from Department of Revenue Certified Taxable Valuation Information
form, line # 2
$ 82,894,816 $
82,894.816
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)
$ (6,914,520) $
(6,914.520)
Taxable value per mill (after adjustment for removal of TIF per mill incremental district value)
$
75,980.296
Subtract: 'Total Value of Newly Taxable Property' - from Department of Revenue Certified Taxable
1
Valuation Information form, line # 3 (enter as negative)
$ (2,404,245} $
(2,404.245)
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
$
73,576.051
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 am 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.)
$ 8,712,661
10.00
$ 9,472A
3
$ 9,396A
$ 9,099,150
$ 297,333
$ 9,396,483
Mill Levy - 5 year Comparison
FY2020
FY2021
FY2022
FY2023
FY2024
GENERAL FUND
139.00
139.62
116.00
123.43
105.17
PARKS -designated mills
22.00
23.00
22.10
22.00
18.50
161.00
162.62
138.10
145.43
123.67
-Permissive levies:
G. O. BOND, series 2012 refunding bonds
11.00
4.80
3.50
0.00
0.00
TOTAL CITY LEVY
172.00
167.42
141.60
145.43
123.67
Health Ins. levy -premium increases
19.30
20.00
17.50
18.15
14.65
Parks health
2.00
2.00
2.00
2.00
1.50
TOTAL CITY LEVY w/PERMISSIVE
193.30
189.42
161.10
165.58
139.82
"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
5.99
5.99
4.99
0.00
0.00
(Administered by the County)
Business Improvement District Levy
(plus assessment at.015/sq.ft., plus $100/parcel)
22.5
22.5
22.5
22.5
22.5