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6. Resolution 4830 - Mill Levy CorrectionMMIM Q MOO, a Y'City of Kalispell '� - .,.. "' .. ,, iY. �. ,r�1/'„".�.,.,. ✓ ._„°���s:i%s��c,:""�^K".'�,�."`�'Yr.Yc�YchY '�,.a�Y&Y-;�?Y„f.C:� ,l^�Y:.e REPORT TO: Mayor Kennedy and City Council Members FROM: Amy Robertson, Finance Director Chris Kukulski, City Manager SUBJECT: Mill levy - 2004 budget MEETING DATE: September 2, 2003 BACKGROUND: Resolution 4814, adopted August 4th, 2003 included a levy of 5 mills for the City -County Health Department and 149 mills for the City. Both levies need to be corrected. In calculating the formula for the City levy, I made a mistake. I don't know what caused me to look at it today, but I'm glad I did. Basically, I entered the estimated taxable value number into the formula exclusive of the newly taxable value and then I subtracted newly taxable value out resulting in the wrong calculation. Correcting the number results in lowering the number of mills. The mill levy numbers on this resolution will calculate the same revenue as we anticipated in the budget. Originally I determined that the maximum levy (without permissive levies) was 137.51 mills when in should be 132.83 mills. We are setting the mill levy at 122.83 mills, ten mills below the allowed amount. I also reduced the health and pool permissive levies as the lower mill will generate the revenue I calculated. A mill is worth $25,270. Total mills will be 144.65. The City's taxable value last year was $23,858. The taxable value before new construction and annexation for this year is $23,984, a slight increase. Previously, I had calculated it at $23,167 thinking we had a loss in value. We did not. The total value of a mill with the newly taxable property is $25,270. This value does not include Tax Increment value. Please remember that the value changes daily as people appeal their property values and so we seldom receive all of the revenue we calculate here. I take full responsibility for this error and anyone who would like to have a copy of the formula please don't hesitate to ask. Section II of the resolution has to do with the City -County Health Department levy. The levy was an estimate as the County had not performed the levy calculations to determine the actual levy based on the taxable value of the County. Joe Russell thought the 5 mills would cover the budget request but apparently it fell short. The County informed us that the levy is 5.09 mills and we need to amend the City's levy to reflect the same levy as the County levy for the City -County Health Department. The dollar amount raised is not material; however, the levy needs to be consistent in all areas served by the Health Department. RECOMMENDATION: Adoption of Resolution correcting the levy. FISCAL EFFECTS: This lower mill levy will generate the revenue as indicated in the budget. ALTERNATIVES: As suggested by Council. Amy H. Robertson Chris A. Kukulski Finance Director City Manager RESOLUTION NO.4830 A RESOLUTION CORRECTING RESOLUTION 4814 AND THE ANNUAL TAX LEVY FOR THE CITY OF KALISPELL AND THE CITY -COUNTY HEALTH DEPARTMENT FOR THE CITY OF KALISPELL, MONTANA, FOR THE FISCAL YEAR 2003-2004. 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 2003-2004, the levy for the City as follows: General Fund 87.50 Comp. Insurance 8.75 Retirement 12.58 Health Insurance 14.00 Subtotal 122.83 MILLS Health permissive 10.22 Pool Bond 11.60 TOTAL LEVY 144.65 MILLS SECTION II. That there is hereby levied upon each and every dollar of the taxable valuation of the City of Kalispell, Montana, for the fiscal year 2003-2004, the levy for the City -County Health Department, said funds to be collected and administered by Flathead County: CITY - COUNTY HEALTH DEPARTMENT 5.09 MILLS Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk