02. Resolution 5224 - Budget Resolution - Annual Tax LeviesCity of Kalispell
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 - FY2008 Budget
MEETING HATE: August 20, 2007
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. 0. Bond, the Fire Station G. G. 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 162.85 mills.
The General fund levy of 132.E 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 132.61
mills. The reduction due to re -appraisal generates the same money as the prior year.
The Pool debt service G. 0. Bond levy is reduced from 9.0 mills to 7.5 mills. The increased value of the
mill from growth means more people are helping to pay for the pool.
The Health Insurance levy request is 14.75 mills, an increase of 1.25 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. O. Bond levy request is 8 mills. This is a reduction of 1.5 mills.
RECOMMENDATION: Adoption of Resolution 5224 setting the mill levy at 162.85.
FISCAL EFFECTS: Levy will generate approximately $5,681,348 in tax revenue for the City
based on a mill value of $34,887. The mill value is subject to change as
appeals and other adjustments are made this fall.
Amy H. Robertson ames H. Patrick
Finance Director City Manager
Attachments: exhibit F-5 year levy comparison; exhibit G —Mill levy calculation
Return to:
Theresa White
Kalispell City Clerk
P.O. Box 1997
Kalispell, MT 59903
RESOLUTIONN NO.5224
A RESOLUTION MAKTNG THE ANNUAL TAX LEVIES FOR THE CITY OF
KALISPELL, MONTANA., FOR THE FISCAL YEAR 2007-2008.
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
2006-2007, the following levies:
GENERAL FUND MILLS
132.E
Permissive Levies:
HEALTH INSURANCE 14.75
G. O. BOND - POOL 7.5
G. O. BOND -- FIRE HALL 8.0
SUBTOTAL CITY LEVY 162.85 MILLS
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 20TH DAY OF AUGUST, 2007.
Pamela B . Kennedy
Mayor
ATTEST:
Theresa White
City Clerk
EXHIBIT F
Mill Levy - 5 year Comparison
2004 2005 2006
2007
2008
GENERAL FUND 122.83 130.00 137.00
134.90
132.60
"Penn issive levies:
G. O. BOND, series 200� POOL 11.60 12.00 10.00
9.00
7.50
G. O. BOND, series 2004 FIREHALL 10.50
9.50
8.00
Health Insurance levy-premiurn increa 10.22 13.00 12.50
13.50
1.4.75
TOTAL CITY LEVY 144.65 155.00 170.00
166.90
162.85
"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 depnding
on the debt service schedule and the value of the mill. The same is true for the FireHall.
Due to growth both those levies can be reduced.
City/County Health Fund 4.652 5.09 5.00 5.30
5.10
5.34
(Administered by the County)
Business Improvement District levy 37.5 37.5
0.00
0.00
(plus square footage assessment at .015 sq. f.)
NO BID Levy FY20-07-2008
6
EXHIBIT G
Mill levy calculation -, Dept. of Revenue values
for FY2008
DETERMINATION OF TAX REVENUE AND MILL LEVY LIMITATIONS
UNDER HOUSE BILL 124
MAXIMUM PROPERTY TARE AUTHORIZED:
Ad valorem tax revenue assessed 2006-2007 4,288,944
Add: FISCAL YEAR 2487 INFLATION ADJ USM ENT a@ 1.53% Section 94 (1)(a)
65,621 65, 621
Add: Personal Property Tax reimbursement received - prior fiscal year
(HB 20 and SB 417 reimbursements) 15,851
Less: Personal Property Tax reimbursement anticipated - current year (66.7% of prior FY)
(H B 20 and SB 417 reimbursements) (10,446)
5,215
Adjusted Property Tax Revenue Assessed
41359, 780
CURRENT YEAR LEVY COMPUTATION:
Taxable value per mill ■
34,887
Less: Newly taxable property per mill value, (2,019.49)
Taxable value per mill (enter as negative)
(2,91 D)
Adjusted Taxable value per mill
321,877
Authorized mill levy under HB 124 (includes floating mills) 132.51
Adjusted taxable value per mill 32,877
Add: Newly taxable property per mill value 2,91 D
Taxable value per mill of net and gross proceeds (count 9 2,91 ❑
Taxable value per mill (including newly taxable property) 34,887
Authorized mill levy under HB 124 (includes floating mills) 132.81
Current property tax revenue limitation 41626,324
RECAPITULATION:
Previous year adjusted property tax revenue assessed (5) 4,359,789
Amount attributable to newly taxable property and net/gross proceeds 266,544
Current property tax revenue 7 41528,324