1. Resolution 5310 - Repealing Resolution 5299 and Setting New Mill Levycity of Kall'spell
Comm===
Post Office Box 1.997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7740 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 (corrected levy)
MEETING DATE: September 15, 2008
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. G. Bond, the Fire Station G. 0. 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 170.23 trills.
The General fund levy of 138.76 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
138.76 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 MMlA.. 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 fiend
(another instance of double budgeting for the same expenditure).
The Fire Station #62 G. o. Bond levy request is 7.5 mills. This is a reduction of .5 mills needed for debt
service in this fund.
RECOMMENDATION: Adoption of Resolution 5310 setting the mill levy at 170.23.
FISCAL EFFECTS: The Levy will generate approximately $6,214,587 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.
Array H. Robertson James H. Patricl
Finance Director City Manager
Attachment: budget exhibit G —Mill levy calculation
RESOLUTION NO, 5310
A RESOLUTION REPEALING RESOLUTION 5299 AND SETTING THE ANNUAL TAX
LEVIES FOR THE CITY OF RALISPELL, MONTANA, FOR THE FISCAL YEAR 2008-
2009.
WHEREAS, the State Department of Revenue revised the City of Kalispell's assessed valuation
following the adoption of Resolution 5299 on August 18, and
WHEREAS, the assessed valuation directly impacts the number of mills to be levied by the City of
Kalispell.
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
2008-2009, the following levies:
GENERAL FUND MILLS
138.75
Permissive Levies:
HEALTH INSURANCE 16.22
G. O. BOND - POOL 7.75
G . O. BOND — FIRE HALL 7.50
SUBTOTAL CITY LEVY 170.23 MILLS
SECTION IL All provisions of Resolution 5299 are repealed, amended and rescinded to the
full extent necessary to give full force and effect to the provisions of this
resolution.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF I ALISPELL THIS 15th DAY OF SEPTEMBER, 2008.
ATTEST:
Theresa White
City Clerk
Pamela B. Kennedy
Mayor
EXHIBIT G
Mill levy calculation - Dept. of Revenue values
for FY2099 (2008 Certifed 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 4,626,324
Add: FISCAL YEAR 2008 INFLATION ADJUSMENT a@ 1.67% Section 94 (1)(a)
77,260 77,260
Add: Personal Property Tax reimbursement received - prior fiscal year
FHB 20 and SB 417 reimbursements)
10,446
Less: Personal Property Tax reimbursement anticipated - current year (66.7% of prior FY)
(HB 20 and S13 417 reimbursements)
(6,967)
31479
Adjusted Property Tax Revenue Assessed
47707,062
CURRENT YEAR LEVY COMPUTATION:
Taxable value per mill
367507
Less: Newly taxable property per mill value,
(2,585.00)
Taxable value per mill (enter as negative)
(2,585)
Adjusted Taxable value per mill
337922
Authorized mill levy under HB 124 (includes floating mills)
138.76
Adjusted taxable value per mill
33,922
Add: Newly taxable property per mill value
2,585
Taxable value per mill of net and gross proceeds (county only)
0
2,585
Taxable value per mill (including newly taxable property)
36,507
Authorized mill levy under HB 124 (includes floating mills)
138.76
Current property tax revenue limitation
5,055,760
RECAPITULATION:
Previous year adjusted property tax revenue assessed (5) 41707,062
Amount attributable to newly taxable property and net/gross proceeds 3581698
Current property tax revenue 51065,760
7
Return to:
Kalispell City Clerk
PO Box 1997
Kalispell, MT 59903
RESOLUTION NO.5299
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR. THE CITY OF
KALISPELL, MONTANA, FOR THE FISCAL YEAR 2008.20094
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
200E-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 16 6.60 MLLS
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF TB E
CITY OF KALISPELL THIS 18TH DAY OF AUGUST,
ATTEST:
Theresa white
City Clerk