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H06. Reso 5828 - Mill LevyL4� City of Kalispell i 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: FY2018 Budget - Mill Levy MEETING DATE: August 21, 2017 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 206.12 mills. The General City levy of 169.62 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 171.12 mills for fiscal year 2018. The difference of 1.5 mills between the State allowed maximum levy of 171.12 mills and the proposed levy of 169.62 mills is available to be levied in a future fiscal year. Of the 169.62 general levy mills, 24.42 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 24 mills, a decrease from 26 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 2.2 mills of this levy for insurance costs related to Parks and Recreation employees. RECOMMENDATION: It is recommended that City Council approve Resolution 5828 setting the mill levy at 206.12. FISCAL EFFECTS: The levy should generate approximately $8,500,000 of tax revenue for the City based on a mill value of $41,231. However, the mill value is subject to change as appeals and other adjustments are made throughout the year. ATTACHMENTS: Resolution 5828, setting the Mill Levy 2017 Certified Taxable Valuation Information Mill Levy calculation 5 Year History exhibit Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59903 IRKIWARMIN A RESOLUTION MAKING THE ANNUAL TAX LEVIES FOR THE CITY OF KALISPELL, MONTANA, FOR THE FISCAL YEAR 2017-2018. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. That there is hereby levied upon each and every dollar of the taxable valuation of the City of Kalispell, Montana, for the fiscal year 2017-2018, the following levies: MILLS GENERAL FUND 145.20 Designated for Parks & Recreation 24.42 Total General Levy 169.62 Permissive Levies: HEALTH INSURANCE 21.80 Health Insurance —designated Parks & Recreation 2.20 Total Health levy 24.00 G. O. BOND — REFINANCED POOL/FIRE HALL 12.50 TOTAL CITY LEVY — all funds MILLS 206.12 PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 21ST DAY OF AUGUST, 2017. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk AAL kgvtkU' E, 2017 Certified Taxable Valuation Information (15-10-20I,K4CA) Flathead County CITY OF KAL|SPELL Certified values are now available online atproperty. mt NYONT#NA FonnAB-72T Rev.3'12 1Mar ket 2 2.2Dl7Total Taxable Value ___ ............. --.................. -----............ —................ l2Q17Taxable Value mfNewly Taxable Property ............................................................ 1,007,264 4.2817Taxable Value less Incremental Taxable Value 3 --...... ----............... � 41,231,226 5. 2017 Taxable Value of Net and Gross Proceed S /Oass1and��ss2L----------------------.------�� � � Tax Increment Current Taxable Base Taxable Incremental District Name �� �a.== 2 Value Value KAL|SPELL8 1181058 453612 737446 KAL|SPELLC 8211209 7932918 278291 KAUSpELLH 18877 126 18751 GLACIER RAIL PARK TED[ 7676 7057 619 KAL|SPELLG 107277 390 106887 Total Incremental Value Preparer Holly Dale Date 8/2/2017 zMarket value does not include class 1and class 2value ^ Taxable value bcalculated after abatements have been applied ~ This value isthe taxable value less total incremental value of all tax increment financing districts *The taxable value of class 1 and class 3 is included in the taxable value totals F�ri����xa�mnPurposes On 2017 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. iValue Included in"newly taxable" property Determination of Tax Revenue and Mill Levy Limitations Section 15-10-420, MCA AGGREGATE OF ALL FUNDS FYE JUNE 30, 2018 CITY OF KALISPELL, MONTANA Auto -Calculation Reference (If Enter amounts in completing manually enter amounts as Line yellow cells instructed) (1) Enter Ad valorem tax revenue ACTUALLY assessed in the prior year NEW- PLEASE READ INSTRUCTIONS BEFORE ENTERING. $ 6,622,736 $ 6,622,736 (2) Add: Current year inflation adjustment @ 0.59% $ 39,074 (3) Subtract: Ad valorem tax revenue ACTUALLY assessed in the Prior year for Class 1 and 2 property, (net and gross proceeds) - NEW- PLEASE READ INSTRUCTIONS BEFORE ENTERING. $ _ (1) +() + (3) Adjusted ad valorem tax revenue $ 6,661,810 ENTERING TAXABLE VALUES (5) Enter'Total Taxable Value'- from Department of Revenue Certified Taxable Valuation Information form, line # 2 $ 42,373,22 $$ 42,373.220 (6) Subtract: 'Total Incremental Value' of all tax increment financing districts (TIF Districts) - from Department of Revenue Certified Taxable Valuation Information form, line # 6 ' $ (1,141.994) _ (5)7) (6) Taxable value per mill (after adjustment for removal of TIF per mill incremental district value) $ 41,231.226 (8) Subtract: 'Total Value of Newly Taxable Property' -from Department of Revenue Certified Taxable Valuation Information form, line # 3 : 1 $ (1,007.264) (9) Subtract: 'Taxable Value of Net and Gross Proceeds, (Class 1 & 2 properties)' - from Department of Revenue Certified Taxable Valuation Information form, line # 5 (10) = (7) + (8) + (9) Adjusted Taxable value per mill $ 40,223.962 (11) 10) CURRENT YEAR calculated mill levy 165.62 (12) _ (7) x (11) CURRENT YEAR calculated ad valorem tax revenue $ 6,828,716 CURRENT YEAR AUTHORIZED LEVY/ASSESSMENT Enter total number of carry forward mills from prior year (13) FOR FY18 BUDGETS, PLEASE ENTER ONLY THE # OF MILLS LEFT BEHIND FROM FYI 7. NEW- PLEASE READ THE INSTRUCTIONS BEFORE ENTERING. 5.50 5.50 (14) =(11) + (13) Total current year authorized mill y levy, including Prior Years' carry forward mills 171.12 (15) =(7) x (14) Total current year authorized ad valorem tax revenue assessment 1 $ 7,065,487 CURRENT YEAR ACTUALLY LEVIED/ASSESSED Enter number of mills actually levied in current year (16) (Number should equal total non -voted mills, which includes the number of carry forward mills, actually imposed per the final approved current year budget document. Do Not include voted or permissve mills imposed in the current year.) 169.62 169.62 (17) =(7) x (16) Total ad valorem tax revenue actually assessed in current year $ — 6,993,641 RECAPITULATION OF ACTUAL: (18) '=(10) x (16) Ad valorem tax revenue actually assessed $ 6,822,789 (19) Ad valorem tax revenue actually assessed for newly taxable property $ 170,852 (20) Ad valorem tax revenue actually assessed for Class 1 & 2 properties (net -gross proceeds) $ (21) =(18) + (19) + (20) Total ad valorem tax revenue actually assessed in current year $ 6,993,641 (22) Total carry forward mills that may be levied in a subsequent year =(14) - (16) (Number should be equal to or greater than zero. A (negative) number indicates an over levy.) 1.50 Mill Levy - 5 year Comparison FY2014 FY2015 FY2016 FY2017 FY2018 GENERAL FUND 1.31.70 134.40 147.70 148.20 145.20 PARKS -designated mills 22.40 22.40 22.40 26.00 24.42 154.10 156.80 170.10 174.20 169.62 "Permissive levies: G. O. BOND, series 2012 refunding bonds 12.5 12.5 12.50 1.2.50 12.50 TOTAL CITY LEVY 166.60 169.30 182.60 186.70 182.12 Health Ins. levy -premium increases 16.80 16.80 20.80 23.40 21.80 Parks health 1.70 1.70 2.20 2.60 2.20 TOTAL CITY LEVY w/PERMISSIVE 185.10 187.80 205.60 212.70 206.12 "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 5.70 (Administered by the County) Business Improvement District Levy (plus square footage assessment at .015 sq. fr.) 37.5 37.5 37.5 37.5 37.5