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Home My WebLink About09-10-18 City Commission Packet Materials - A1. Res. 4925, Tax Levy Resolution - SUPPLEMENTAL MATERIALS BOZ E MAN MT Finance Resolution No. 4925 — Setting Tax Levies for FY19 Presentation of Information • General Info about the Tax Base Changes • Maximum Levy allowed under law • Recommended Levy • Financial Issues identified • Options Max base Growth 1130Z E MAN MTFinance SHght Growth in the Value of One Mill, city-wide Taxes Generated from 1 Mill City-Wide $110,000 $104,321 $101,195 $100,000 $89,325 $85,637 $86,b64 $90,000 $80,000 $70,000 $60,000 i FY14 FY15 FY16 FY17-N.W.E Effects FY18 FY19 Tax Base Growth BOZ E MAN MT Finance • Increase of 3 . 1% • Average of past 5 years was 4. 1% growth PERCENTAGE CHANGE 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 FY14 FY15 ® FY17 FY 18 FY19 -2.0% -1.5% -4.0% Tax Base Growth BOZ E MAN MT Finance • New Construction : 3 . 7% • Combined growth in TIF of 10.4% • Remainder: -0. 6% • Two-year reappraisal cycle - FY20 BOZ E MAN MT Finance Tax Base — Maximum Levy Certified Values are basis of maximum mill levy calculation . • Maximum Levy: 207 . 13 Mills • Maximum Dollars : $21, 608, 213 BOZ E MAN MT Finance Tax Base — Recommended Levy • Levy: 191 . 24 Mills • Dollars : $ 19,950, 552 • Leaving 15 .89 Mills not levied • Leaving $ 1,657,661 tax dollars not collected 250.00 200.00 150.00 100.00 50.00 0.00 FY14 FY15 FY16 FY17 FY 18 FY19 n Total Levied 0 Number of Mills Not Levied BOZ E MAN MT Tax Levy Recommendation Finance • 191 . 24 Mills • 1 . 9% Increase from last year Tax Levy 250.00 210.16 205.30 200.00 188.76 187.33 191.24 173.08 150.00 100.00 50.00 0.00 -- - ----- 2014 2015 2016 2017 2018 2019 BOZ E MAN MT Finance Median Residential Property ( part of our analysis of Typical Resident) Residential • . . Median 2017 Median Residential Property- Taxable Market Value $292,000 2018 Median Residential Property-Taxable Market Value $298,865 Change in Median Residential Property 2.4% BOZ E MAN MT Effects . Finance Median Residential Property ( part of our analysis of Typical Resident) FY 19 FY19 ecommended Recommende"' increase & C tinge Street Assessment 198.02 207.92 9.90 5% Arterial Street Assessment 69.97 51.78 (18.19) -26% Tree (Forestry ) Assessment 22.48 23.61 1.13 5% Property Taxes 732.83 748.13 15.30 2% Storm Water Services 70.92 70.92 - 0% Water Service *10 month billing 516.24 532.80 16.56 3% Sewer Services *10 month billing 606.72 624.48 17.76 3% Total Annual Increase $ 42.46 Monthly Increase $ 3.5 - BOZ E MAN MT Recommended Levy . Finance From FY19 Certified Value Levy Purpose Number of Mills All Purpose Levy* 139.69 Community/Workforce Housing 3.00 Permissive Medical Insurance 25.44 Planning 2.00 Senior Transportation 1.00 Fire Equipment 4.00 Stormwater Project — Landfill Loan 0.71 Monitoring — Landfill 2.38 Library GO Bonds 2.64 Park and Trail GO Bonds 10.38 Grand Total Levied 191.24 * to General Fund BOZ E MAN MT Finance Financial Issues : • Recommended levy generate less in revenue for the General Fund = $ 1281934 • At this point in time our estimate for General Fund cash carryover is a lower than expected = $ 1651000. • Total = $293,934 Equivalent of 2.82 mills, $ 11.02/year to typical resident BOZ E MAN MT Finance Financial Issues: Tax Revenue Estimated Shortfall $ 128,1934 Carryover Estimated Shortfall $ 165 000 Total $ 293.1934 Total Amount as % of Total Budget 0.247% Total Amount as % of General Fund Budget 0.863% FY19 General Fund Budget Shortfall, _$293,934 Remainder of Budget, $33,783,253 BOZ E MAN MT Finance General • ReserveCurrent Estima--] Estimated Beginning Fund Balance $ 714861631 $ 7,321,631 FY19 Estimated Revenues $ 31,915,530 $ 31,786,596 FY19 Appropriations $ (34,077,187) J $ (34,077,187) Estimated Ending Fund Balance $ 5,324,985 $ 5,031,040 Ending Balance as % Revenues 16.68% 15.83% difference -0.86% BOZ E MAN MT Finance General Fund Reserve Current Estimate Estimated Beginning Fund Balance $ 71486,631 $ 7,321,631 FY19 Estimated Revenues $ 31,9151530 $ 31,786,596 FY19 Appropriations $ (34,077,187) $ (34,077,187) Estimated Ending Fund Balance $ 51324,985 $ 5,0311040 Ending Balance as % Revenues 16.68% 15.83% difference -0.86% Required Minimum Reserve Dollars $ 5,309,363 $ 5,297,766 difference $ 151622 $ (266,726) FY19 General Fund Estimated Ending Reserve Amount Below Estimated Reserve Level, $266,726 Estimated Reserve Dollars, 10 $5,031,040 BOZ E MAN MT Finance • What about the General Fund reserve requirements? Is there a level of materiality in this case for amending the budget? BOZ E MAN MT Finance Options for Estimated ^41% General Fund Revenue Shortfall : � o Cat items in the existing budget, 2 . Increase tax levy for some or all of shortfall amount, 3 . Adopt Recommended Tax Levy; rely on staff to find savings in the coming 10 months . Options : BOZ E MAN MT Finance • Setting the Tax Levy • Hearing required by law • Depending on the level of tax levy, a budget amendment might be necessary. • Budget Amendment • Option for you to amend the budget • Advertised to allow you to change operating and capital budgets BOZ E MAN MT Finance Resolution No . 4925 — * Tonight's hearing has been advert5sed so �hat the Commission may make the maximum levy — or an amount different from our recommendation . • Received no public comment. BOZ E MAN MT Finance Resolution No. 4926 — Amending the City's Annual Budget to Include Items to be funded with fund revenues, unanticipated revenue or, previously unbudgeted revenue. BOZ E MAN MT Finance Considerations : 1 . Determined by preceding Tax Levy adoption 2 . During June's Final Budget Adoption the Commission stated that they would consider the Hope House request for $ 18,000 after taxable values were received . BOZ E MAN MT Finance General Fund Reserve Current Estimate Estimated Beginning Fund Balance $ 71,4861631 $ 71321,631 FY19 Estimated Revenues $ 31,915,530 $ 311786,596 FY19 Appropriations $ (34,077,187) $ (34,077,187) Estimated Ending Fund Balance $ 5,3241985 $ 5,031,040 Ending Balance as % Revenues 16.68% 15.83% difference -0.86°0 Required Minimum Reserve Dollars $ 51309,363 $ 5,297,766 difference $ 15,622 $ (266,726) BOZEMANmT Finance Th 'Es hearing has been advertised) so the Commossion may make any change to operating and capital budgets • Received no public comment BOZ E MAN MT Finance Resolution No. 4927 — Increasing Water meter charges by 3% and consumption charges by 5% effective September 1, 2018. Monday, BOZEMANmT Finance • Currently working with Consultant on a rate study • Inflationary increase for FY19 • Return in the spring with final study to the Commission BOZ E MAN MT Finance Water meter charges 3% increase Service Charge Per Meter Size Cument rate Effective 9/1/2018 5/8 $15.70 $16.17 -_ - - - 1 $20.80 $21.42 1 1/4 $26.08 $26.86 1 1/2 $32.73 $33.71 2 $47.59 $49.02 3 $82.26 $84.73 4 $131.92 $135.88 6 $245.85 $253.23 8 $388.73 $400.39 Consumption charges 5% increase Minimum Charge (up to 2.0 HCF) Current rate Effective 9/1/2018 Single family $5.10 $5.36 Multi family $3.92 $4.12 Government _ $3.56 $3.74 MSU $4.44 $4.66 Commercial $3.441 $3.62 Class& Charge Per HCF Used Current rate Effective 9/1/2018 Single family 0-8 HCF $2.55 $2.68 8-15 HCF $2.75 $2.89 Over 15 HCF $3.24 $3.40 Multi family $1.96 $2.06 Government $1.78 $1.87 MSU $2.22 $2.33 Commercial $1.72 $1.81 BOZ E MAN MT Finance Resolution No. 4928 — Increasing Wastewater service charges by 3% and consumption charges by 4% by effective September 1, 2018. BOZEMANmT Finance • Currently working with Consultant on a rate study • Inflationary increase for FY19 • Return in the spring with final study to the Commission BOZ E MAN MT Finance Service charges 3% increase and consumption 4% Service Charge Current Rate Effective 9/1/18 Residential $19.01 $19.5 8 NlukirFam4y $19.491 $20.07 Commercial _ $19.49 $20.07 Government $19.49 $20.07 NISU $19.49 $20.07 Industrial $50.82 1 $38.98 Volume Charge Current Rate Effective 9/1/18 Residential $3.151 $3.28 IL ow-Income $3.15 $3.36 Multi=Famtr $3.23 $3.36 Commercial $3.2 3 $3.36 Government $3.23 $3.36 MSU $3.23 $3.36 Industrial $7.75 $5.50 Strength Adjustment for industrial Extr-a Strength Waste Current Rate Effective 9/1/18 Pounds of BOD up to 830 Is p $0.31� $0.31 Pounds of B OD in excess of 83 1 $0.441 $0.45 Peak BOD Demand Charge fori $0.39 1 $0.33 of 830 lbs per day, highest monthly .peak day. Pounds of SS in excess of 350 r S0.30 _ S0.51 Pounds of Phosphorus in excess _ S5.05 $5.55 Pounds of Nitro en in excess of S0.46 $0.46