02. Resolution 5035 - Budget Resolution - Annual Tax LeviesGty of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telepbone (406)758-7700 fax (406)758-7758
REPORT TO: Mayor Kennedy and City Council Members
FROM: Amy Robertson, Finance Director
James H. Patrick, City Manager
SUBJECT: Mill levy - FY2006 Budget
MEETING DATE: August 15, 2005
BACKGROUND: The resolution is adopted annually to provide a levy to fluid the City's
Budgets 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 170 mills.
The General fund levy of 137 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 137.29 mills. This budget utilizes 137.0 mills an increase of 7 mills. The
increased mills are necessary to fund 3 additional fire fighters at a cost of about $185,000. The
value of a mill is currently $28,651. Additional revenue generated by the growth (increased value
of the mill) is utilized to fund additional costs related to police and fire contracts, ASFCME and
non union salary adjustments. The General Fund supports two additional file's in the police
department as well as the new City Planning office. The pool fund has been moved back to the
General fund.
The Pool debt service G. O. Band levy is reduced from 12.0 mills to 10 mills as a result of
returning $20,700 from the construction fund and the increased value of the mill. The increased
value of the mill means more people are helping to pay for the pool.
I would recommend lowering the Health Insurance levy by 1/2 mill to 12.5 mills. Although the
budget appropriation is the same as last year, the growth is helping to cover the costs. Changes
to our current Health premium rates this year are basically revenue neutral. 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 will appear on the tax notices for the first time this year.
would recommend a levy of 10.5 mills. The debt service is $283, 278. A mill is worth $28,651
today (changes daily) and 10 mills would generate $286,510. Due to the fact that we never
collect 100% of the levy and the levy valuation often varies between now and when the taxes are
billed, I would suggest levying 10.5 mills to give us the cash flow necessary to make our debt
service payment. We have no reserves in the debt service fund.
RECOMMENDATION: Adoption of Resolution setting the mill levy at 170.
FISCAL EFFECTS: Levy will generate approximately $4,870,670 in tax revenue for the City
based on a mill value of $28,651. The mill value is subject to change as
appeals and other adjustments are made this fall.
ALTERNATIVES: As suggested by Council.
Amy H. Robertson ames H. atrick
Finance Director
Report compiled: August 9, 2005
City Manager
RESOLUTION NO.5035
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF
KALISPELL, MONTANA, FOR THE FISCAL YEAR 2005-2006.
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
2005-2006, the following levies:
GENERAL FUND 137 MILLS
Permissive Levies:
HEALTH INSURANCE 12.5
G. O. BOND - POOL 10
G. O. BOND — FIRE HALL 10.5
SUBTOTAL CITY LEVY 170 MILLS
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 15TH DAY OF AUGUST, 2005.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk