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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 D-1 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 D-3