7. Resolution 5390 - Budget Resolution - Mill LevyCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Mayor Kennedy and City Council Members
FROM: Amy Robertson, Finance Director
Jane Howington, City Manager
SUBJECT: Mill levy - FY2010 Budget
MEETING DATE: September 8, 2009
BACKGROUND: The resolution is adopted annually to provide a levy to fund the City's budget for the
General Fund, the voted levies for the pool G. O. Bond, the Fire Station 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 169.90 mills.
The General City levy of 140.20 mills is based upon the calculation of the mill value provided by the State
Department of Revenue. The City has a dollar cap which computes to a maximum allowed levy of 140.20
mills. This levy generates the same money as the prior year plus the 1.1 % cola allowed by the legislature.
This levy will be shared with the Parks & Recreation department -22.4 mills designated.
The Pool debt service G. O. Bond levy is decreased from 7.75 mills to 7.5 mills. The decrease is a result of
annexation and new growth — more properties share in the cost to pay debt service on the pool. The original
levy was 12 mills in 2005.
The Fire Station #62 G. O. Bond levy request is 7.0 mills. This is a reduction of .5 mills needed for debt
service in this fund. The original levy was 10.5 mills.
The Health Insurance levy request is 15.2 mills, a decrease of 1.02 mills. There was no increase in
premiums for Health insurance purchased through MMIA for this fiscal year. The legislature required that
this levy be shown as a separate item on the tax notice. The 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 reflects the total cost of health insurance in each budget. The permissive fund levy
money is transferred to the General fund as revenue (another instance of double budgeting for the same
expenditure). The Parks & Recreation fund is designated 1.6 mills of this levy for insurance costs related to
those employees.
RECOMMENDATION: Adoption of Resolution 5390 setting the mill levy at 169.9.
FISCAL EFFECTS: Levy will generate approximately $6,449,234 in tax revenue for the City
based on a mill value of $37,959. The mill value is subject to change as
appeals and other adjustments are made this fall.
Amy H. Robertson J�Hogton
Finance Director City Manager
Attachments: exhibit G —Mill levy calculation
93RUNC13►10110=1
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF
KALISPELL, MONTANA, FOR THE FISCAL YEAR 2009-2010.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS:
SECTION I. That there is hereby levied upon each and every dollar of the taxable
valuation of the City of Kalispell, Montana, for the fiscal year
2009-2010, the following levies:
GENERAL FUND
Designated for Parks & Recreation
Total General Levy
Permissive Levies:
HEALTH INSURANCE
Health Insurance —designated Parks & Recreation
Total Health levy
G. 0. BOND -- POOL
G. 0. BOND — FIRE VAILL
TOTAL CITY LEVY — all funds
MILLS
117.80
22.40
140.20
13.60
1.60
15.20
7.50
7.00
169.90 MffJ_S
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 8TH DAY OF SEPTEMBER, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk
EXHIBIT G
Mill levy calculation - Dept. of Revenue values
for FY2010
DETERMINATION OF TAX REVENUE AND MILL LEVY LIMITATIONS
UNDER HOUSE BILL 124
MAXIMUM PROPERTY TAXES AUTHORIZED:
Ad valorem tax revenue assessed 2006-2007 5,065,760
Add: FISCAL YEAR 2009 INFLATION ADJUSMENT @ 1.1% Section 94 (1)(a)
55,723 55,723
Technical correction - last years calculation (3,479)
Adjusted Property Tax Revenue Assessed 5,118,005
k;UKKCNI TtAKLCVT UUMYUTAI1UN:
Taxable value per mill ® 37,959
Less: Newly taxable property per mill value, (1,454.00)
Taxable value per mill (enter as negative) (1,454)
Taxable value per mill 36,505 1
Authorized mill levy under HB 124 (includes floating mills) 140.20
Adjusted taxable value per mill 36,505
Add: Newly taxable property per mill value 1,454
Taxable value per mill of net and gross proceeds (coui 0 1,454
Taxable value per mill (including newly taxable property) 37,959
Authorized mill levy under HB 124 (includes floating mills) 140.20
lCurrent property tax revenue limitation 5,321,8551
Previous year adjusted property tax revenue assessed (5) 5,118,005
Amount attributable to newly taxable property and net/gross proceeds 203,851
Current property tax revenue 5,321,855
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