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4. Resolution 5693 - Council Intention - 911 Special District LevyCity of Kalispell 201 1" Ave E. P.O. Box 1997 Kalispell, Montana 59903-1997 (406) 758-7000 Fax (406)7757 REPORT TO: Mayor Johnson and Kalispell City Council �Wf FROM: Doug Russell, City Manager SUBJECT: 911 Special District Election, Intention for Revenue Neutrality MEETING DATE: October 6, 2014 BACKGROUND: This November, voters in Flathead County will be presented an opportunity to vote on the creation of a special district for the provision of emergency communications throughout Flathead County. The formation of the district coincides with efforts of the City Council to identify a long term, equitable, funding source and to create efficiencies in the governance of the 911 operation. At the last work session, the City Council expressed a desire to declare an intent. to Kalispell residents that the Council did not want to see an overall increase in taxes with the formation of a special district. With this desire, the City Council intends to provide tax relief in an attempt to keep overall taxation neutral. As the value of each house presents a different equation, the Council identified using the value of a $250,000 as the point of reference. The resolution attached identifies that the City Council intends to reduce the overall tax revenue by approximately $301,780 if the special district is created. This amount equals 7.64 rills for Fiscal Year 2015. 7.64 mills on a $250,000 is approximately $25.00, which is the amount of the special assessment and would make the overall impact neutral for this respective homeowner. FISCAL IMPACTS: The resolution identifies that the City of Kalispell would lower the amount of levied taxes if the special district passes. The amount of the reduction is based upon the value of a $250,000 residence and Would he equal to the amount of the assessment that would. be imposed on that residence if the special district passes. RECOMMENDATION: It is recommended the City Council approve the attached resolution identifying the intent of the City Council to reduce the millage it would otherwise exact upon property in the City in the event the Flathead County 911 Levy Referendum passes in the next general election so that the effect of such passage will remain as tax neutral as possible on the Kalispell City taxpayers. A RESOLUTION STATING THE INTENTION OF THE KALISPELL CITY COUNCIL TO REDUCE THE CITY IMPOSED MILLAGE ON PROPERTIES WITHIN THE CITY IN 2015 TO OFFSET THE ASSESSMENT THAT WILL BE IMPOSED ON THESE PROPERTIES IN THE EVENT THE FLATHEAD COUNTY REFERENDUM ON THE GENERAL ELECTION BALLOT TO ORGANIZE A SPECIAL DISTRICT TO PROVIDE FUNDING FOR EMERGENCY DISPATCH AND SUPPORTING COMMUNICATION SERVICES, EQUIPMENT, AND INFRASTRUCTURE FOR FLATHEAD COUNTY AND ITS MUNICIPALITIES PASSES. WHEREAS, pursuant to the authority provided to it by Title 7, Chapter 11, Part 10 of the Montana Code Annotated, Flathead County has caused a referendum to be placed on the general election ballot for all electors in Flathead County to organize a special district to provide funding for emergency dispatch and supporting communication services, equipment, and infrastructure for Flathead County and its municipalities; and WHEREAS, under the existing Interlocal Agreement that governs the financing of the operations of the Flathead County E911 Services ("the Services"), the City of Kalispell as well as each of the other local governments served by the Services pay a pro rata share of the annual costs of the Services; and WHEREAS, the City of Kalispell currently budgets for its share of the costs of the Services and pays for this from revenues it receives from General Fund On -behalf Payments, that is the general taxes paid to the City by owners of property located within the annexed boundaries of the City; and WHEREAS, under the proposal of the above described referendum the costs of the Services would now be paid by the initial $25.00 per annum assessment for residential property and the initial $50.00 per annum assessment for commercial property and therefore the City of Kalispell would no longer be required to budget and assess taxes to pay its annual pro rata share of the costs of Services; and WHEREAS, a $25.00 per annum assessment is equal to approximately 7.64 mills on a residential property valued at $250,000; and WHEREAS, 7.64 mills assessed citywide generates approximately $301,780 for Fiscal. Year 2015; and WHEREAS, the Kalispell City Council finds that it is in the best interests of its City residents that it declares its intentions that in the event that the above described referendum is passed by the electorate, the result of such change in funding for the Services shall remain as tax neutral as possible for its City residents. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. That the Kalispell City Council hereby declares that should the Flathead County referendum that is on the November 4, 2014, General Election Ballot to organize a special district to provide funding for emergency dispatch and supporting communication services, equipment, and infrastructure for Flathead County and its municipalities be passed by the electorate, the Kalispell City Council, barring unforeseen circumstances, intends to reduce the Fiscal Year 2016 tax levy revenue by approximately $301,780, which equates to 7.64 mills for Fiscal Year 2015. SECTION 2 Future City Councils will determine whether or not to continue this property tax mill levy reduction beyond FY16. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 6TH DAY OF OCTOBER, 2014. Mark Johnson Mayor ATTEST: Theresa White City Clerk