Loading...
H06. Res. 6280, 2026 Tax Levy(A J y 0F. City of Kalispell ALISPELL PostOffice 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: FY2026 Budget - Mill Levy MEETING DATE: August 18, 2025 BACKGROUND: Each year, the City adopts a resolution to establish its property tax levy necessary to fund various components of the City's budget. For FY26, this resolution addresses the mill -based levies for the General Fund and the Health Insurance permissive levy. The voter -approved Emergency Responder levy is now a dollar -based levy under recent legislative changes and is being set separately by Resolution 6279 in the amount of $4,480,259. The total City levy requested for FY26 is 165.44 mills. Which includes: • General Fund levy of 143.69 mills to support general city operations, including 21.00 mills designated for Parks & Recreation operations. • Health Insurance permissive levy of 21.75 mills, an increase from 19.00 mills levied last fiscal year. Of the 21.75 mills, 1.82 mills are designated for Parks & Recreation employees and 2.92 mills for Emergency Responder fund employees. The General Fund levy is based on the mill value calculation provided by the State Department of Revenue. The City's dollar cap, combined with 10.0 carry -forward mills from FY2025, allows for a maximum levy of 144.69 mills in FY2026. The proposed levy of 143.69 mills leaves 1.0 mill available for future fiscal years. RECOMMENDATION: It is recommended that City Council approve Resolution 6280, a resolution making the annual tax levies for the City of Kalispell, Montana, for the fiscal year 2025-2026. FISCAL EFFECTS: The levy should generate approximately $11,817,048 of tax revenue for the city based on a mill value of $71,428. When combined with the dollar -based Emergency Responder levy of $4,480,259 (set separately under Resolution 6279), the total projected property tax revenue for the City is $16,297,307. However, the mill value is subject to change as appeals and other adjustments are made throughout the year. ATTACHMENTS: Resolution 6280, setting the Mill Levy 2024 Certified Taxable Valuation Information 2025 Certified Taxable Valuation Information Mill Levy calculation 5 Year History exhibit Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59903 RESOLUTION NO. 6280 A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF KALISPELL, MONTANA, FOR THE FISCAL YEAR 2025-2026. 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 2025-2026, the following levies: MILLS GENERAL FUND 122.69 Designated for Parks & Recreation (15%) 21.00 Total General Levy 143.69 Permissive Levies: HEALTH INSURANCE 17.01 Health Insurance —designated Parks & Recreation 1.82 Health Insurance — designated Emergency Responder 2.92 Total Health levy 21.75 TOTAL CITY LEVY — Mill Based funds MILLS 165.44 PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 18TH DAY OF AUGUST, 2025. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk AAt4L MONTANA DE P A P I R4ENT 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 HB212................................................ 7. TIF Districts MONTANA Form AB-72T Rev. 6-24 ............................................... $ 5,408,208,936 ................................................ $ 83,476,794 ............................................... $ 2,331,565 ............................................... $ 76,762,572 ............................................... $ - ............................................... $ (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 Preparer Holly Dale Total Incremental Value $ 6,714,222 Date 8/5/2024 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 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. MONTANA A4k Form AB-72T Rev. 6-25 MONTANA DEPAPT MENT OF R E V E N U E 2025 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. 2025 Total Market Value' ....................................................................................... $ 6,720,995,583 2.2025 Total Taxable Value2...................................................................................... $ 81,386,983 3.2025 Taxable Value of Newly Taxable Property........................................................ $ 1,442,654 4.2025 Taxable Value less Incremental Taxable Value3 .............................................. $ 71,428,471 5.2025 Taxable Value of Net and Gross Proceeds4 (Class 1 and Class 2)................................................................................... $ - 6. 2025 Tax Loss from HB212.................................................................................... $ - 7. TIF Districts Tax Increment Current Taxable Base Taxable Incremental District Name Value Value Value KALISPELL C 15,898,236 7,932,918 7,965,318 KALISPELL DOWNTOWN 3,113,718 1,665,094 1,448,624 GLACIER RAIL PARKTEDE 348,493 7,057 341,436 KALISPELL H 18,743 126 18,617 KALISPELL G 184,907 390 184,517 Total Incremental Value $ 9,958,512 Preparer Holly Dale Date 7/31/2025 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 2025 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. Totalvalue 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, 09/04/2025, 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, 09/08/2025, 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, 2026 Entity Name: Auto -Calculation Reference (If completing manually Enter amounts in enter amounts as Line yellow cells instructed) (1) Enter Ad valorem tax revenue ACTUALLY assessed in the prior year (from Prior Year's form Line 17) $ 9,231,467 $ 9,231,467 (2) Add: Current year inflation adjustment @ 2.11 % $ 194,784 (3) 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) $ (4) Adjusted ad valorem tax revenue _ (1) + (2) + (3) $ 9,426,251 ENTERING TAXABLE VALUES (5) Enter'Total Taxable Value' - from Department of Revenue Certified Taxable Valuation Information form, line#2 $ 81,386,983 $ 81,386.983 (6) Subtract: 'Total Incremental Value' of all tax increment financing districts (TIF Districts) - from Department of Revenue Certified Taxable Valuation Information form, line # 7 1 (enter as negative) $ (9,958,512) $ (9,958.512) _ ( (7) (6) Taxable value per mill (after adjustment for removal of TIF per mill incremental district value) $ 71,428.471 (8) Subtract: 'Total Value of Newly Taxable Property' - from Department of Revenue Certified Taxable Valuation Information form, line # 3 (enter as negative) $ (1,442,654) $ (1,442.654) (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) _ (7) + (8) + (9) Adjusted Taxable value per mill $ 69,985.817 (11) =(4) / (10) CURRENT YEAR calculated mill levy 134.69 (12) =(7)x(11) CURRENT YEAR calculated ad valorem tax revenue $ 9,620,701 CURRENT YEAR AUTHORIZED LEVY/ASSESSMENT (13) Enter total number of carry forward mills from prior year (from Prior Year's form Line 22) 10.00 10.00 (14) =(11) + (13) Total current year authorized mill le y levy, including Prior Years' carry forward mills 144.69 (15) =(7) x (14) Total current year authorized ad valorem tax revenue assessment $ 10,334,985 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.) 143.69 143.69 (17) =(7) x (16) Total ad valorem tax revenue actually assessed in current year $ 10,263,557 RECAPITULATION OF ACTUAL: (18) _ (10) x (16) Ad valorem tax revenue actually assessed $ 10,056,262 (19) Ad valorem tax revenue actually assessed for newly taxable property $ 207,295 (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 $ 10,263,557 (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.) 1.00 Mill Levy - 5 year Comparison FY2022 FY2023 FY2024 FY2025 FY2026 GENERAL FUND 116.00 123.43 102.10 100.76 122.69 PARKS -designated mills 22.10 22.00 18.50 19.50 21.00 138.10 145.43 120.60 120.26 143.69 -Permissive levies: G. O. BOND, series 2012 refunding bonds 3.50 0.00 0.00 0.00 0.00 TOTAL CITY LEVY 141.60 145.43 120.60 120.26 143.69 Health Ins. levy -premium increases 17.50 18.15 14.65 14.97 17.01 Parks health 2.00 2.00 1.50 1.56 1.82 Emergency Responder health 0.00 0.00 0.00 2.47 2.92 TOTAL CITY LEVY w/PERMISSIVE 161.10 165.58 136.75 139.26 165.44 Dollar Based Levy -Dedicated levies: Emergency Responder Levy (Fy26 Dollar Based) 0.00 0.00 0.00 58.43 $ 4,480,259 "The legislature provided for the increase in mills necessary to pay higher health insurance premiums. 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. FY26 The Emergency is now set as a dollar -based levy, approved by voters to fund Emergency response. The county will convert this dollar amount to a mill levy for collection based on the taxable value each year. Other Government levies: City/County Health Fund 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