07. Resolution 5299 - Budget Resolution - Annual Tax Leviess
k"'Ity of Kalispeii
............ ........... . . .
Post Office Box. 1997 - Kalispell, Montana 59903--1997 - Telephone (406)758-7700 Fax (406)758-7758
TO: Mayor Kennedy and City Council Members
FROM: Amy Robertson, Finance Director
James H. Patrick, City Manager
SUBJECT: Mill levy - FY2009 Budget
MEETING DATE: August 18, Zoos
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 166.60 mills.
The General fund levy of 135.13 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 135.13
mills. This levy generates the same money as the prior year plus the 1.67% cola allowed by the legislature.
The Pool debt service G. O. Bond levy is increased from 7.5 mills to 7.75 mills. The increase needed to pay
debt service on the pool. The original levy was 12 mills in 2005.
The Health. Insurance levy request is 16.22 mills, an increase of 1.47 mills due to the increase in premiums
for Health insurance purchased through MMIA. The cost of insurance for new employees is not considered in
the permissive levy. 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 in premiums since 2003 and not the total cost of
insurance as it relates to General 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 (another
instance of double budgeting for the same expenditure).
The Fire Station ##62 G. U. Bond levy request is 7.5 mills. This is a reduction of .5 mills needed for debt
service in this find.
RECOMMENDATION: Adoption of Resolution setting the mill levy at 166.60.
FISCAL EFFECT'S: Levy will generate approximately $6,082,066 in tax revenue for the City
based on a mill value of $36,507. The mill value is subject to change as
appeals and other adjustments are made this fall.
Array H. Robertson ,_dames H. Patrick
Finance Director : City Manager
Attachments: exhibit F-5 year levy comparison; exhibit G —Mill levy calculation
EXHIBIT F
Mill Levy - 5 year Comparison
2005 2006 2007
2008
2009
GENERAL FUND 130.00 137.00 134.90
132.60
135.13
"Permissive levies:
G. O. BOND, series 200 POOL 12.00 10.00 9.00
7.50
7.75
G. O. BOND, series 200, FIREHALL 10.50 9.50
8.00
7.50
Health Insurance levy -premium incre 13.00 12.50 13.50
14.75
16.22
TOTAL CITY LEVY 155.00 170.00 166.90
162.85
166.60
*The legislature provided for the increase in mills necessary to pay higher health
insurance premiums.
The pool 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 same is true for the FireHall debt
service.
Other Government levies:
to be
City/County Health Fund 5.00 5.30 5.10
5.34
determined
(Administered by the County)
Business Improvement District levy 37.5 37.5 0.00
0.00
0.00
(plus square footage assessment at .015 sq. ft.)
NO BITS Levy FY2007-2008
6
Mill levy calculation - Dept. of Revenue values
for FY2009 (2008 Certified Taxable Value)
DETERMINATION OF TAX REVENUE AND MILL LEVY LIMITATIONS
UNDER HOUSE BILL 124
MAXIMUM PROPERTY TAXES AUTHORIZED -
Ad valorem tax revenue assessed 2006-2007
Add: FISCAL YEAR 2008 INFLATION ADJUSMENT u@ 1.67% Section 94 (1)(a)
77,260
Add: Personal Property Tax reimbursement received - prior fiscal year
(HB 20 and SB 417 reimbursements) 10,446
Less: Personal Property Tax reimbursement anticipated - current year (66.7% of prior FY)
(HB 20 and SB 417 reimbursements) (6,967)
Adjusted Property Tax Revenue Assessed
CURRENT YEAR LEVY COMPUTATION:
Taxable value per mill
Less: Newly taxable property per mill value,
Taxable value per mill (enter as negative)
Adjusted Taxable value per mill
Authorized mill levy under HB 124 (includes floating mills)
Adjusted taxable value per mill
Add: Newly taxable property per mill value
Taxable value per mill of net and gross proceeds (county only)
Taxable value per mill (including newly taxable property)
Authorized mill levy under 1-113 124 (includes floating mills)
Current property tax revenue limitation
RECAPITULATION:
Previous year adjusted property tax revenue assessed (5)
Amount attributable to newly taxable property and netigross proceeds
Current property tax revenue
7
(17673.00)
11673
0
■
EXHIBIT G
41626,324 1
77,260 1
3,479
417072062
36,507
(19673)
347834
135.13
34,834
1,673
36,507
135.13
4,933,132
4,707,062
226,070
4, 933,132
-RESOLUTION NO, 5299
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR. THE CITY OF
I ALISPELL, MONTANA, FOR. THE FISCAL. YEAR 2008-2009.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALIS PELL 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
2008-2009, the following levies:
GENERAL FUND MILLS
135.13
Permissive Levies:
HEALTH INSURANCE 16.22
G. O. BOND - POOL 7.75
G. O. BOND — FIRE HALL 7.50
SUBTOTAL CITY LEVY 166.60 MILS
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR. OF THE
CITY OF I ALISPELL THIS 18TH DAY OF AUGUST, 2008.
Pamela B . Kennedy
Mayor
ATTEST:
Theresa White
City Clerk