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H2. Res. 6215, 2025 Tax Levy-00 CITY 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: FY2025 Budget - Mill Levy MEETING DATE: August 19, 2024 BACKGROUND: This resolution is adopted annually to provide a levy to fund the City's budget for the General Fund, voter approved Emergency responder levy, and the mill levy authorized by the legislature to deal with the increased cost in health insurance premiums. The total City levy requested is 197.69 mills. The General City levy of 120.26 mills is based on the mill value calculation provided by the State Department of Revenue. The city has a dollar cap that, when combined with 4.07 carry forward mills from fiscal year 2024, computes to a maximum allowed levy of 130.26 mills for fiscal year 2025. The difference of 10.0 mills between the State allowed maximum levy of 130.26 mills and the proposed levy of 120.26 mills remains available for future fiscal years. Of the 120.26 general levy mills, 19.5 mills (15.5%) are designated for the operations of the Parks & Recreation department. The Health Insurance levy request is 19 mills, an increase from the 16.15 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. Of the 19 mills requested, 1.5 mills are designated for insurance costs related to Parks and Recreation employees, while 2.47 mills are allocated to the Emergency Responder fund to cover insurance costs for additional Fire and Police personnel. The Emergency Responder levy request is 58.43 mills, slightly reduced from the 60.9 mills approved by voters, due to the allocation of 2.47 mills to the permissive health levy. This dedicated levy is solely for funding Emergency Response services. RECOMMENDATION: It is recommended that City Council approve Resolution 6215, a resolution making the annual tax levies for the City of Kalispell, Montana, for the fiscal year 2024-2025. FISCAL EFFECTS: The levy should generate approximately $15,175,079 of tax revenue for the city based on a mill value of $76,762. However, the mill value is subject to change as appeals and other adjustments are made throughout the year. ATTACHMENTS: Resolution 6215, setting the Mill Levy 2023 Certified Taxable Valuation Information 2024 Certified Taxable Valuation Information Mill Levy calculation 5 Year History exhibit Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59903 RESOLUTION NO. 6215 A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF KALISPELL, MONTANA, FOR THE FISCAL YEAR 2024-2025. 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 2024-2025, the following levies: MILLS GENERAL FUND 100.76 Designated for Parks & Recreation (15%) 19.50 Total General Levy 120.26 Permissive Levies: HEALTH INSURANCE 14.97 Health Insurance —designated Parks & Recreation 1.56 Health Insurance — designated Emergency Responder 2.47 Total Health levy 19.00 Dedicated Levies: EMERGENCY RESPONDER 58.43 TOTAL CITY LEVY — all funds MILLS 197.69 PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 19TH DAY OF AUGUST, 2024. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk M©NTANA A4jL Form AB-72T M O N TA N A Rev. 6-23 pA aT M F N r 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 1. 2023 Total Market Value'................................................................................................. $ 5,292,800,723 2. 2023 Total Taxable Value2....................................... $ 82,894,816 3. 2023 Taxable Value of Newly Taxable Property.......... 4. 2023 Taxable Value less Incremental Taxable Value3. 5. 2023 Taxable Value of Net and Gross Proceeds4 (Class 1 and Class 2)............................................................ _ 6. TIF Districts ................................................. $ 2,404,245 .......................................... I....... $ 75,980,296 Tax. Increment Current Taxable Base Taxable Incremental District Name Value 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 TEDD 338,146 7,057 331,089 KALISPELL H 21,699 126 21,573 KALISPELL G 176,031 390 175,641 Total Incremental Value $ 6,914,520 Preparer Holly Dale Date 8/7/2023 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 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. AAt4L MONTANA DE PAPI I'll- NT Of REVENUE 2024 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. 2024 Total Market Value .................................................. 2. 2024 Total Taxable Valuez................................................. 3. 2024 Taxable Value of Newly Taxable Property ............. 4. 2024 Taxable Value less Incremental Taxable Value3... 5. 2024 Taxable Value of Net and Gross Proceeds4 (Class 1 and Class 2).............................................. 6 2024 Tax Loss from 14B212 MONTANA Form AB-72T Rev. 6-24 ............................................... $ 5,408,208,936 ................................................ $ 83,476,794 ............................................... $ 2,331,565 ............................................... $ 76,762,572 .......................... $ .............................................................................. 7. TIF Districts .............. $ (27,490) Tax Increment Current Taxable Base Taxable Incremental District Name Valuez Value Value KALISPELL C 12,952,141 7,932,918 5,019,223 KALISPELL DOWNTOWN 2,827,085 1,665,094 1,161,991 GLACIER RAIL PARK TED[ 338,874 7,057 331,817 KALISPELL H 21,969 126 21,843 KALISPELL G 179,738 390 179,348 Total Incremental Value $ 6,714,222 Preparer Holly Dale 1Market value does not include class 1 and class 2 value zTaxable value is calculated after abatements have been applied Date 8/5/2024 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 2024 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/OS/2024,1 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 9 2024 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, 2025 Auto -Calculation (If comple Reference Enter amounts in ting manually enter amounts as Line yellow cells instructed) (1) Enter Ad valorem tax revenue ACTUALLY assessed in the prior year (fI orn Prior Year's form Line 17) $ 9,163,224 $ 9,163,224 (2) Add: Current year inflation adjustment @ 2.80 % $ 256,570 (3) Subtract: Ad valorem tax revenue ACTUALLY assessed in the prior year for Class 1 and 2 property, (net and gross proceeds) (frorn Prior Year's form Line 20) (enter as negative) $ - Subtract: Department of Revenue FY2025 All Class 8 Business Property Tax Reimbursement (3.5) (16-1-123 MCA) `This is a new line for FY2026 only; see the Instructions tab for additional information (enter as negative) $ (27,490) $ (27,490) (4) Adjusted ad valorem tax revenue _ (1)+(2)+(3)+(3.5) $ 9,392,304 ENTERING TAXABLE VALUES (5) Enter'Total Taxable Value' - from Department of Revenue Certified Taxable Valuation Information form, line # 2 $ 83,476,794 $ 83,476.794 (6) 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) $ (6,714,222) $ (6,714.222) _ ( (7) (6) Taxable value per mill (after adjustment for removal of TIF per mill incremental district value) $ 76,762.572 (8) Subtract: 'Total Value of Newly Taxable Property'- from Department of Revenue Certified Taxable Valuation Information form, line # 3 (enter as negative) $ (2,331,565) $ (2,331.565) (9) 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) $ - (10) Adjusted Taxable value per mill _ (7) + (8) + (9) $ 74,431.007 =(11) CURRENT YEAR calculated mill levy (4)/(10) 126.19 (12) CURRENT YEAR calculated ad valorem tax revenue _ (7) x (11) $ 9,686,669 CURRENT YEAR AUTHORIZED LEVY/ASSESSMENT (13) Enter total number of carry forward mills from prior year (from Prior Year's form Line 22) 4.07 4.07 (14) Total current authorized mill ley, year =(11) + (13) y y, including Prior Years' carry forward mills 130.26 (16) Total current year authorized ad valorem tax revenue assessment =(7) x (14) $ 9,999,093 CURRENT YEAR ACTUALLY LEVIED/ASSESSED Enter number of mills actually levied in current year (16) (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.) 120.26 120.26 (17) Total ad valorem tax revenue actually assessed in current year =(7) x (16) $ 9,231,467 RECAPITULATION OF ACTUAL: (18) _ (10) x (16) Ad valorem tax revenue actually assessed $ 8,951,073 (19) Ad valorem tax revenue actually assessed for newly taxable property $ 280,394 (20) Ad valorem tax revenue actually assessed for Class 1 & 2 properties (net -gross proceeds) $ (21) =(18) + (19) + (20) Total ad valorem tax revenue actually assessed in current year $ 9,231,467 (22) Total carry forward mills that may be levied in a subsequent year =(14) - (16) (Number should be equal to or greater than zero. A (negative) number indicates an over levy.) 10.00 Mill Levy - 5 year Comparison FY2021 FY2022 FY2023 FY2024 FY2025 GENERAL FUND 139.62 116.00 123.43 102.10 100.76 PARKS -designated mills 23.00 22.10 22.00 18.50 19.50 162.62 138.10 145.43 120.60 120.26 -Permissive levies: G. O. BOND, series 2012 refunding bonds 4.80 3.50 0.00 0.00 0.00 -Dedicated levies: Emergency Responder Levy 0.00 0.00 0.00 0.00 58.43 TOTAL CITY LEVY 167.42 141.60 145.43 120.60 178.69 Health Ins. levy -premium increases 20.00 17.50 18.15 14.65 14.97 Parks health 2.00 2.00 2.00 1.50 1.56 Emergency Responder health 0.00 0.00 0.00 0.00 2.47 TOTAL CITY LEVY w/PERMISSIVE 189.42 161.10 165.58 136.75 197.69 "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. The Emergency Responder Levy is voter approved to levy up to sixty and nine tenths additional mills per year for the purpose of funding Emergency Response. 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 S100/parcel) 22.5 22.5 22.5 22.5 22.5