H04. Resolution 5768 - Mill Levy Budget.................
- a tj-�, let City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
A7ONT.-4 N. 'I
REPORT TO: Doug Russell, City Manager
FROM: Rick Wills, Finance Director
SUBJECT: FY2017 Budget - Mill Levy
MEETING DATE: August 15, 2016
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 212.70 mills.
The General City levy of 174.20 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 179.70 mills for fiscal year 2017. The difference of 5.5 mills between the State allowed
maximum levy of 179.70 mills and the proposed levy of 174.20 mills is available to be levied in a
future fiscal year. Of the 174.20 general levy mills, 26.0 mills are designated for the operations of
the Parks & Recreation department.
The G. O. Bond levy request is 12.5 mills, the same request as last fiscal year. The original levy for
the two separate G.O. Bonds was 20.5 mills in 2006. It has since been reduced due to annexations
creating more properties to support the levy, and refinancing.
The Health Insurance levy request is 26 mills, an increase from 23 mills in the 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 2.6 mills of this levy for insurance costs related to Parks and Recreation employees.
RECOMMENDATION: It is recommended that City Council approve Resolution 5768 setting
the mill levy at 212.70.
FISCAL EFFECTS: The levy should generate approximately $8,100,000 of tax revenue
for the City based on a mill value of $38,018. However, the mill value is subject to change as
appeals and other adjustments are made throughout the year.
ATTACHMENTS: Resolution 5768, setting the Mill Levy
2016 Certified Taxable Valuation Information
Mill Levy calculation
5 Year History exhibit
RESOLUTION NO.5768
A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF
KALISPELL, MONTANA, FOR THE FISCAL YEAR 2016-2017.
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
2016-2017, the following levies:
MILLS
GENERAL FUND 148.20
Designated for Parks & Recreation 26.00
Total General Levy 174.20
Permissive Levies:
HEALTH INSURANCE 23.40
Health Insurance —designated Parks & Recreation 2.60
Total Health levy 26.00
G. O. BOND — REFINANCED POOLIFIRE HALL 12.50
TOTAL CITY LEVY — all funds MILLS 212.70
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 15th DAY OF AUGUST, 2016.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
REVE14UE
2016 Certified Taxable Valuation Information
(15-10-202, MCA).
Flathead County
CITY OF KALISPELL
Certified values are now available online at property.mt.gov/cov
N40NTANA
Form AS-72T
Rev. 3-12
1. 2016 Total Market Value- ..... .................................. 2,307,546,427
2. 2016 Total Taxable Value` .. _ ............... ................................ —-- - - 39,229,175
3. 2016 Taxable Value of Newly Taxable Property ............... ... ... ............. 947,977
4. 2016 Taxable Value less Incremental Taxable Value-3... . ..... ..... $ 38,018,010
5. 2016 Taxable Value of Net and Gross Proceeds"
t`Class 1 and Class 21,
I ... ... .... . ...... .......... ...........
6. TIF Districts
Tax Increment
District Name
KALISPELL B
Current Taxable
_ Va,Ue2 _
1,149,211 �i
B,,se Taxable
Value
453,612
Incremental
value
-- 695,599_
KALISPELL C
8,332,869
_
7,93.2,918
399,951
—KALISPELL H —
20,890
126
20,764
KALISPELL G
95,241
-_
—. - - 390
94,851
Preparer Holly Dale
Total Incremental Value < 1,211,165
Date 8/1/2016
'Market value does not include class 1 and class 2 value
`Taxable value is calculated after abatements have been applied
3This value is the taxable value less total incremental value of all tax incr`rnert ¢inancing districts
4The taxable value of class 1 and class 2 is included in the taxable value totals
For (reformation Purposes orfly
2016 taxable value of centrally assessed property having a market value of $1 million or more, which has
transferred to a different ownership in compliance with '15-10 202(2), MCA.
I. Value Included in. "newly taxable" property � 2,387
It Total value exclusive of "newly taxable" property $ 0
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DETERMHATION OF TAX REVENUE AND MILL LEVY LIMITATIONS
UNDER SECTION 15-10-420, MCA
AGGREGATE OF ALL FUNDS
FYE JUKE 30, 2017
CITY OF KALISPELL
MAXIMUM PROPERTY TAXES AUTHORIZED:
Ad valorem tax revenue authorized to be assessed prior year (from prior year's determination form -
(8a)) 6,628,196
Add: FISCAL YEAR 2017 INFLATION ADJUSMENT @ 0.60% 33,141 33,141
Less: Property taxes authorized to be assessed in the prior year for Class 1 and 2 property (net and
gross proceeds) (enter as negative number) 0
Adjusted ad valorem tax revenue 6,661,337
CURRENT YEAR LEVY COMPUTATION:
!!NEON!!- Change from Prior Years' Format!!
In Rows (5), (Sa), (5c) & (5d), PLEASE ENTER TAXABLE VALUES, AS WHOLE NUMBERS, DIRECTLY FROM DEPT. OF REVENUE CER7
VALUATION INFORMATION form - "Per Mill" values will auto -calculate.
Enter'Total Taxable Value' amount- from Department of Revenue Certified Taxable Valuation Information
form, line # 2. 39,229,175 39,229.175
Less: Enter'Total Incremental Value' of all tax increment financing districts (TIF Districts) amount -
from Department of Revenue Certified Taxable Valuation Information form, line # 6 (enter as
negative) (1,211,165) (1,211.165)
Adjusted taxable value per mill (adjusted for removal of TIF per mill incremental district value) 38,018.010
Less: Enter'Total Value of Newly Taxable Property' - from Department of Revenue Certified Taxable
Valuation Information form, line # 3 (enter as negative) (947,977) (947.977)
Less: Enter'Taxable Value of Net and Gross Proceeds, (Class 1 & 2 properties)' - from Department of
Revenue Certified Taxable Valuation Information form, line # 5 (enter as negative) 0.000
Adjusted Taxable value per mill
Authorized mill levy under Section 15-10-420, MCA
Adjusted taxable value per mill
Add: Newly taxable property per mill value
Taxable value per mill of net and gross proceeds (Class 1 & 2 properties)
Taxable value per mill (including newly taxable property but excluding TIF per mill incremental value)
Authorized mill levy under Section 15-10-420, MCA
Current property tax revenue authorized limitation
RECAPITULATION:
Adjusted ad valorem tax revenue
Amount attributable to newly taxable property
Amount attributable to net/gross proceeds
Current property tax revenue authorized limitation
37,070.033
179.70
37,070.033
947.977
0.000 947.977
38,018.010
179.70
6,831,685
6,661,337
170,348
0
6,831,685
Revised 5/31/2016
Mill Levy - 5 year Comparison
FY2013 FY2014
FY2015
FY2016
FY2017
GENERAL FUND
132.20 131.70
134.40
147.70
148.20
PARKS -designated mills
22.40 22.40
22.40
22.40
26.00
154.60 154.10
156.90
170.10
174.20
"Permissive levies:
G. O. BOND, series 2012 refunding bonds
12.5 12.5
12.5
12.50
12.50
TOTAL CITY LEVY
167.10 166.60
169.30
182.60
186.70
Health Ins. levy -premium increases
16.90 16.80
16.80
20.80
23.40
Parks health
1.60 1.70
1.70
2.20
2.60
TOTAL CITY LEVY w/PERMISSIVE
185.60 185.10
187.80
205.60
212.70
"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
5.75 5.75
5.74
6.57
6.63
(Administered by the County)
Business Improvement District Levy
(plus square footage assessment at .015 sq. f.)
37.5 37.5
37.5
37.5
37.5
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