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06. Resolution 5639 - Budget Resolution - Mill LevyCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone (406) 758-7000 Fax - (406) 758-7758 REPORT TO: Doug Russell, City Manager FROM: Rick Wills, Finance Director SUBJECT: FY2014 Budget - Mill Levy MEETING DATE: August 19, 2013 BACKGROUND: This resolution is adopted annually to provide a levy to fund the City's budget for the General Fund, the voted levies for the refinanced Pool and Fire Hall 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 185.10 mills. The General City levy of 154.10 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 155.70 mills. The portion of this levy designated for the Parks & Recreation department is 22.4 mills. The G. O. Bond levy request is 12.5 mills, the same request as last fiscal year. The original levy for the 2 separate G.O. Bonds was 20.5 mills in 2006 and has been reduced due to annexations — more properties supporting the levy, and refinancing. The Health Insurance levy request is 18.5 mills, the same request as last fiscal year. This permissive levy is only to finance the increased cost of premiums since 2003 and not the total cost of insurance as it relates to governmental fund employees. The General Fund budget health line items reflect the total cost of health insurance in each budget. The Parks & Recreation fund is designated 1.7 mills of this levy for insurance costs related to Parks and Recreation employees. RECOMMENDATION: Approve Resolution 5639 setting the mill levy at 185.10. FISCAL EFFECTS: Levy should generate approximately $7,281,000 of tax revenue for the City based on a mill value of $39,335. However, the mill value is subject to change as appeals and other adjustments are made throughout the year. dick Wills Finance Director Background: Mill levy calculation (see FY2014 Budget -Final Numbers Memo) 2013 Certified Taxable Valuation Information 5 Year History exhibit A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF KALISPELL, MONTANA, FOR THE FISCAL YEAR 2013-2014. 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 2013-2014, the following levies: MILLS GENERAL FUND 131.70 Designated for Parks & Recreation 22.40 Total General Levy 154.10 Permissive Levies: HEALTH INSURANCE 16.8 Health Insurance —designated Parks & Recreation 1.7 Total. Health levy 18.50 a N E43 9C! i j �b I �60 �211 TOTAL CITY LEVY — all funds MILLS 185.10 PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 19TH DAY OF AUGUST, 2013. Tammi Fisher Mayor ATTEST: Theresa White City Clerk Mill levy calculation - Dept. of Revenue values for FY2014 DETERMINATION OF TAX REVENUE AND MILL LEVY LIMITATIONS UNDER HOUSE BILL 124 1 Ad valorem tax revenue assessed 2012-2013 Add: FISCAL YEAR 2014 INFLATION ADJUSMENT @ 01.03% Section 94 (1)(a) 62,131 Less: FY13 SB372 Reimbursement through Entitlement Share Property Tax Revenue Assessed 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 H13 124 Adjusted taxable value per mill Add: Newly taxable property per mill value Taxable value per mill of net and gross proceeds (coup 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 Current property tax revenue (198) I U 032.173 1 62,131 FY14 N/A 6,094,304 39,335 (198) 39,137 155.7 39,137 198 39,335 155.7 6,125,136 6,094,304 30,832 6,125,136 &4ONT&NA FonmAB-7ZT Rev.3-1Z 2013 Certified Taxable Valuation Information /15-10'202,K4CA\ Flathead County CITY C}FKAL|SPELL l.2O13Total Market Value ........................................................................................................ 2.2O13Total Taxable Value ....................................................................................................... 3.2Ol3Taxable Value ofNewly Taxable Property ................................................................. 4.2013Taxable Value less Incremental Taxable Value* .................................................. — $ 39,334,849 5.2OI3Taxable Value ofNet and Gross Proceeds" (Class 1and Class 2L'--------.------- ...................................... $ 6TIFDistricts Tax Increment Current Taxable Base Taxable Incremental District Name Value Value Value Kalispell B 1390231 453613 836609 Kalispell C Kalispell H 21,408 126 21282 Kalispell G 111616 ]SO 111,226 Total Incremental Value $ 1,463,599 Preparer -Holly Dale Date 8/5/2013 *This value is the taxing jurisdiction's taxable value less total incremental value of all tax increment financina districts. "The taxable value of class 1 and class 2 is included in the taxable value totals. For(nfcrcd;�[anFui­,,��osas cr,:-y 2013 taxable value of centrally assessed property having a market value ol $1 million or more, vihich has transferred to a different ownership in compliance with 15-10-202/2\, MCA. iValue Included in"newly taxab|o"property 11. Total value exclusive of "newly taxable" property Mill Levy - 5 year Comparison FY2010 FY2011 FY2012 FY2013 FY2014 GENERAL FUND 117.71 119.10 123.48 132.20 131.70 PARKS -designated mills 22.40 22.40 22.40 22.40 22.40 140.11 141.50 145.88 154.60 154.10 "Permissive levies: G. O. BOND, series 2012 refunding bonds 14.5 14.2 13.5 12.5 12.5 TOTAL CITY LEVY 154.61 155.70 159.38 167.10 166.60 Health Ins. levy -premium increases 13.60 13.04 14.95 16.90 16.80 Parks health 1.60 1.60 1.60 1.60 1.70 TOTAL CITY LEVY w/PERMISSIVE 169.81 170.34 175.93 185.60 185.10 "The legislature provided for the increase in mills necessary to pay higher health insurance premiums. The G.O. Bond 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. Other Government levies: City/County Health Fund 5.61 5.81 5.75 5.75 5.74 (Administered by the County) Business Improvement District Levy (plus square footage assessment at .015 sq. ft.) 0.00 37.5 37.5 37.5 37.5