HomeMy WebLinkAbout08-25-20 City Commission Packet Materials - A2.3 Res 5193 Setting Mill Levies for FY21
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director
SUBJECT: Commission Resolution No. 5193 – Setting Mill Levies for Fiscal Year
2020-2021 (FY21). MEETING DATE: August 25, 2020
AGENDA ITEM TYPE: Action
RECOMMENDATION: Adopt Commission Resolution No. 5193 – Setting Mill Levies for Fiscal Year 2020-2021 (FY21). STRATEGIC PLAN: Please identify which strategic plan action item your agenda items falls
under:
https://strategic-plan-bozeman.opendata.arcgis.com/ SUGGESTED MOTION: Move to approve Resolution No. 5193 – Setting Mill Levies for Fiscal Year 2020-2021 (FY21).
BACKGROUND: Approved Budget: On June 22, 2020, the FY21 Budget was approved with an anticipated 3.2% increase in taxable
value. It was developed with a mill value estimated = $129,408 and an estimated maximum tax levy of 196.69 mills, of which 9 mills for Resolution No. 3954 (911 mills) and 18.17 mills in the General Fund were to remain unlevied with 4.05 reserved for operating the Bozeman public safety center.
Certified Values and Maximum Mill Levy: On August 4, 2020 the City received its official certification of taxable values for FY21 (2020 tax year), issued by the Department of Revenue (DOR.). The certification showed that taxable value went up by 3.3%. The certification also showed an increase of $4.3 million from new construction (newly taxable property). The mill value = $129,537 and a maximum tax levy of 201.27 mills, of
which 9 mills for Resolution No. 3954 (911 mills) and 22.79 mills in the General Fund were to remain unlevied with 4.05 reserved for operating the Bozeman public safety center.
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The certification also showed an increase of $4.3million from new construction (newly taxable
property).
Adopted Budget
Estimated Mill Levy
Keeping to Adopted
Budget based on
dollars $Mills Levied 169.52 169.48
Mills Unlevied
General fund mills 14.12 18.74
Capacity For BPSC 4.05 4.05
911 mill levy 9.00 9.00
Total unlevied 27.17 31.79
Maximum Mill levy 196.69 201.27
City of Bozeman Values
2020 2019 2018 2017
Special Mobile 23,217 37,515 43,869 47,146
Manufactured Homes 159,470 166,069 112,767 111,394
Business Equipment 1,452,246 1,412,528 1,242,232 1,169,173
Real Property (Residential & Commercial)127,930,465 124,109,850 100,692,212 97,508,338
Centrally Assessed 8,418,029 7,856,074 7,622,702 7,388,755
Net & Gross Proceeds - - - -
TIFD (8,446,310) (8,158,839) (5,392,366) (5,030,031)
Taxable Valaue 129,537,117 125,423,197 104,321,416 101,194,775
$129,537 $125,423
$104,321 $101,195
$89,325
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
$130,000
$140,000
FY21FY20FY19FY18FY17
Taxes Generated from 1 Mill City-Wide
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Tax Increment Financing Districts:
Most of the Urban Renewal Districts saw change. Midtown saw a slight down turn but have many projects coming onto the tax rolls. North Park saw an increase after decline while Downtown continues to gain value.
3.3%
20.2%
3.1%
13.3%
3.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
FY21FY20FY19FY18FY17
Change in Taxable Value from Previous Year
3,507,723
1,707,571
-
2,000,000
4,000,000
6,000,000
FY17 FY18 FY19 FY20 FY21
Midtown TIF Incremental
Taxable Value
Base Value Increamental Value
244,332
13,824
230,000
240,000
250,000
260,000
270,000
FY19 FY20 FY21
North Park Urban TIF
Incremental Taxable Value
Base Value Increamental Value
1,328,695
6,247,663
-
2,000,000
4,000,000
6,000,000
8,000,000
FY17 FY18 FY19 FY20 FY21
Downtown TIF Incremental
Taxable Value
Base Value Increamental Value
423,054
477,252
-
200,000
400,000
600,000
800,000
1,000,000
FY17 FY18 FY19 FY20 FY21
Northeast TIF Incremental
Taxable Value
Base Value Increamental Value
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Levy Details: By law, the permissive medical insurance levy and debt service bond levies increase to recover
specific payment amounts. With the taxable value increase, the number of mills levied have
decreased by 0.04 of a mill. In order to meet the approved budget, the City should levy 169.48 mills and generate $21,953,576 in property tax revenue. This would leave us 31.79 mills under our tax cap; 9 mills for 911, 4.05 reserved for capacity for the operating of the Bozeman Public Safety Center and 18.74 mills related to the General Fund.
Levy Purpose Number of Mills
All Purpose Levy 106.18
Community/Workforce Housing 3.00
Permissive Medical Insurance 21.37
Planning 2.00
Senior Transportation 1.00
Fire Equipment 4.00
Stormwater Project – Landfill Loan 0.77
Monitoring – Landfill 2.41
Library GO Bonds 2.13
Park and Trail GO Bonds 8.31
BPSC Bonds 18.31
Grand Total Levied 169.48
Mill Levy Fiscal Year 2020-2021 (FY21)
210.16 205.30 187.33 191.24 188.07 169.48
13.19 16.88 17.97 15.89 9.75 31.79
0.00
50.00
100.00
150.00
200.00
250.00
FY16 FY17 **FY18 FY19 **FY20 FY21
Total Levied Number of Mills Not Levied
417
-
100
200
300
400
500
FY17 FY18 FY19 FY20 FY21
South Bozeman Tech TIF
Incremental Taxable Value
Base Value Increamental Value
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General Fund Balance: The FY20 audit is just beginning and financials are in the drafting stage so the fund balance is still
considered preliminary, in addition we receive one final tax payment from the county the first or second week of September that we are estimating in this balance. The General fund balance is estimated to be higher than anticipated during the budget adoption for the end of FY21 and the majority of this is due to the $1.2 we received for CARES act reimbursement. Since these are one
time funds they should be used for one-time costs and not offset ongoing expenditures such as
personnel and operations. Fund balance is broken down below:
We are recommending no changes to the mill levy with the many unknowns during this pandemic. Keeping the $1.2 million for the CARES act money to be used strategically, such as to help fill in decreased revenues due to the pandemic, support COVID related aid programs, and address other
issues that are yet to be seen. In addition, we have known issues such as the reliance of the Fire
Station 1 selling at $2.5 million to cover project costs of the Bozeman Public Safety Center and along with the unknowns already stated, it would be financially prudent to keep the $528,896 of the balance in addition to the CARES act funds. UNRESOLVED ISSUES: None
ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS:
FY19 Ending Balance 7,739,584$
Revenues (includes estimated final County tax payments)30,800,583$
Expenditures (30,575,554)$
CARES ACT Reimbursement 1,258,196$
FY20 Fund Balance (Preliminary)9,222,809$
General Fund FY21 Estimated Revenues 32,858,963
General Fund FY21 Budgeted Expenditures (34,817,091)
Estimated FY21 ending fund balance 7,264,681
Minimum reserve required (16.67% of Budgeted revenue 5,477,589
Estimated FY21 ending fund balance over minimum
reserve 1,787,092
CARES Act 1,258,196$
Carry forward higher than estimated 528,896
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Adopting the recommended mill levy of 169.48 mills is estimated to generate $21,954,071 in
property tax revenue for FY21. The revenue will be deposited to the funds described on the
attached “Recommended FY21 Mill Levies & Mill Values” sheet. Based on DOR the updated information a typical resident would pay an annual property tax of $to the City for Tax Year 2020. Information from the DOR indicates that the number is $4.82 /mill for a median home. The effect of this levy on the typical residential property owner is a decrease of $86.78 ($16.77 increase
BPSC levy due to the first full year payment and $103.55 decrease in all other levies).
Attachment: Commission Resolution No. 5193 Recommended FY21 Mill Levies and Mill Values
Bozeman Taxable Values History
Department of Revenue Certified Value Tax Year 2020
Report compiled on: 08/13/2020
Levy/Assessment
FY20
Approved
Increase
(Decrease)
FY21
Approved % Change
Street Assessment 216.93 17.36 234.29 8%
Arterial Street Assessment 48.06 1.45 49.51 3%
Tree (Forestry ) Assessment 26.61 0.54 27.15 2%
Parks & Trails Assessment - 127.50 127.50 100%
Property Taxes (W/O BPSC)832.19 (103.55) 728.64 -12%
BPSC Property Tax 71.48 16.77 88.25 23%
Storm Water Services 73.76 3.69 77.45 5%
Water Service 555.81 - 555.81 0%
Sewer Services 630.99 - 630.99 0%
Total Annual Estimated Increase 2,455.83 63.76 2,519.59 3%
Monthly Increase 5.31
Median home $354,000, 7,500 SQFT lot and 10-HCF water use
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COMMISSION RESOLUTION NO. 5193
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA ESTABLISHING AND AFFIXING THE NUMBER OF MILLS TO BE CHARGED AGAINST THE ASSESSED
VALUATION OF ALL TAXABLE PROPERTY SITUATED WITHIN THE CORPORATE JURISDICTIONAL BOUNDARIES OF THE CITY FOR FISCAL YEAR 2020-2021 (FY21). WHEREAS, in accordance with 15-10-203 MCA, after due and proper legal notice, at a
regular session of the City Commission on August 25, 2020, the public hearing on the proposed
change of ad-valorem tax revenue was held; and
WHEREAS, the Montana Department of Revenue issued to the City a 2020 Certified
Taxable Valuation received on August 3, 2020; and
WHEREAS, in accordance with Montana Code Annotated, a resolution must be adopted
by the City Commission in order to determine the amount of the City or Town taxes to be levied
and assessed on the taxable property situated within the City for the current fiscal year; and
WHEREAS, the City Clerk must certify to the County Clerk a copy of such resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana as follows:
Section 1 That for the purpose of providing and maintaining basic City services the City Commission of the City of Bozeman, Montana does hereby affix 106.18 mills to be levied for the All Purpose
General Fund for all salaries, operations, and capital expenditures for general government purposes as provided by Sections 7-6-4451 and 15-10-420 MCA. Section 2
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Resolution No. 5193 Establishing and Affixing the Number of Mills
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That the City Commission of the City of Bozeman, Montana does hereby affix a 3.00
mill levy from the City’s maximum mill levy allowed under Sections 7-6-4451 and 15-10-420
MCA for the City’s Community Housing Fund to be used for affordable/workforce housing purposes within the City. Section 3
That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 21.37 mills to provide for the total City payment of premiums for Health Medical Insurance for City employees in accordance with Title 2 Chapter 18 Part 7 MCA, Section 2 of Chapter 359 Laws 1975, Section 7-32-4117 MCA, and Section 7-3-4130
MCA.
Section 4 That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 2.00 mills to provide funds for the City Planning Activity in
accordance with Section 76-1-406 MCA.
Section 5 That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 1.00 mills to provide funds for special transportation services
for senior citizens and persons with disabilities in accordance with Section 7-14-1111 MCA.
Section 6 That the City Commission of the City of Bozeman, Montana does hereby affix a 0.77 mill levy from the City’s maximum mill levy allowed under Sections 7-6-4451 and 15-10-420
MCA for the general purpose of the stormwater system, to include the stormwater improvement
program for corrective measures at the Bozeman Story Mill Landfill, served by the stormwater system, with the funds appropriated, to pay a portion of the costs, in accordance with 7-7-4424 (b) MCA. Section 7
That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 2.13 mills to provide for principal and interest payments on outstanding Library General Obligation Bonds in accordance with Section 7-7-4265 MCA. Section 8
That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 8.31 mills to provide for principal and interest payments on outstanding Trails, Open Space and Parks (TOP) General Obligation Bonds in accordance with Section 7-7-4265 MCA.
Section 9 That for the purpose of providing and maintaining basic City services the City Commission of the City of Bozeman, Montana does hereby affix 4.00 mills to be levied for the Fire Department Capital & Equipment Replacement for general government purposes as
188
Resolution No. 5193 Establishing and Affixing the Number of Mills
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provided by Section 7-6-4451 MCA.
Section 10 That the City Commission of the City of Bozeman, Montana does hereby affix a 2.41 mill levy from the City’s maximum mill levy allowed under Sections 7-6-4451 and 15-10-420 MCA for the costs of Landfill Post-closure activities at the Story Mill Landfill.
Section 11 That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 18.31 mills to provide for principal and interest payments on outstanding Bozeman Public Safety Center (BPSC) General Obligation Bonds in accordance
with Section 7-7-4265 MCA.
PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana at a regular session thereof held on the 25th day of August, 2020.
__________________________________ CHRIS MEHL Mayor
ATTEST:
_____________________________________ MIKE MAAS City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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Resolution No. 5193 Establishing and Affixing the Number of Mills
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CITY OF BOZEMAN
Levy Purpose Number of Mills
All Purpose Levy 106.18
Community/Workforce Housing 3.00
Permissive Medical Insurance 21.37
Planning 2.00
Senior Transportation 1.00
Fire Equipment 4.00
Stormwater Project – Landfill Loan 0.77
Monitoring – Landfill 2.41
Library GO Bonds 2.13
Park and Trail GO Bonds 8.31
BPSC Bonds 18.31
Grand Total Levied 169.48
Mill Levy Fiscal Year 2020-2021 (FY21)
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FISCAL YEAR FY16 FY17 **FY18 FY19 **FY20 FY21
MILL VALUE (net of TIFD's) 86,564$ 89,325$ 101,195$ 104,321$ 125,423$ 129,537$
PERCENTAGE CHANGE ‐1.5% 3.2% 13.3% 3.1% 20.2% 3.3%
GENERAL FUND:
All‐Purpose 155.78 148.21 134.39 139.69 124.79 106.18
SPECIAL REVENUE:
City Planning 2.00 2.00 2.00 2.00 2.00 2.00
Health/Med Insurance 27.11 26.40 24.48 25.44 22.45 21.37
Fire Capital & Equipment 4.00 4.00 4.00 4.00 4.00 4.00
Transfer to Stormwater ‐ Landfill Project 1.62 1.56 1.38 0.71 0.71 0.77
Transfer to Landfill Closure ‐ Monitoring ‐ 4.00 3.67 2.38 2.49 2.41
Senior Transportation 1.00 1.00 1.00 1.00 1.00 1.00
Community Housing 3.00 3.00 3.00 3.00 5.00 3.00
TOTAL SPECIAL REVENUE 38.72 41.96 39.53 38.53 37.65 34.55
DEBT SERVICE:
BPSC GO Bonds ‐ ‐ ‐ ‐ 14.87 18.31
Park & Trail G.O.Bonds 12.49 12.06 10.68 10.38 8.58 8.31
Library G.O. Bonds 3.16 3.07 2.73 2.64 2.20 2.13
TOTAL DEBT SERVICE 15.65 15.13 13.41 13.02 25.64 28.75
Total Levied 210.16 205.30 187.33 191.24 188.08 169.48
Percentage Change in Mills 12.4% ‐2.6% ‐8.6% 1.9% ‐1.7% ‐9.7%
Property Taxes Levied 18,191,892$ 18,338,501$ 18,956,859$ 19,950,675$ 23,589,506$ 21,954,071$
Percentage Change in Dollars 9.7% 0.8% 3.4% 5.2% 18.2% ‐6.9%
These funds are being combined into the All Purpose Levy. They are all subject to MCA 15‐10‐420.
General Fund Reduction 363,096$ 703,800$ 907,719$ 718,772$ 94,015$ 2,426,230$
Capacity for future operations at BPSC 524,625$
911 Mills (Resolution No. 3954) 779,076$ 803,925$ 910,755$ 938,889$ 1,128,807$ 1,165,834$
Total Authorized But Not Levied 1,142,172$ 1,507,725$ 1,818,474$ 1,657,661$ 1,222,822$ 4,116,690$
Number of Mills Not Levied 13.19 16.88 17.97 15.89 9.75 31.78
Maximum Levy Allowed 223.35 222.18 205.30 207.13 197.83 201.26
** Assessment Year of the two year cycle
MILL LEVIES & MILL VALUES
Tax Authority Authorized but Not Levied
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Bozeman Taxable Values HistoryTax Yr 2020 Tax Yr 2019 Tax Yr 2018Tax Yr 2017 Tax Yr 2016FY21 FY20 FY19FY18 FY17Total Market Value $ 8,875,762,356 $ 8,596,253,775 $ 6,981,943,409 $ 6,745,351,312 $ 5,870,738,906 Change in Total Market Value 3.3% 23.1% 3.5% 14.9% 3.0%City - Gross Dollars of Taxable Value 137,983,427 133,582,036 109,713,782 106,224,806 93,669,761 Less: Downtown TIF Taxable Value 6,247,663 5,987,410 4,159,996 3,769,917 3,068,902 Less: Northeast TIF Taxable Value 477,252 457,274 229,047 223,765 193,281 Less: Midtown TIF Taxable Value 1,707,571 1,714,155 982,574 948,716 1,003,546 Less: Mandeville Farm TIF Taxable Value - - - 87,633 78,606 Less: North Park Urban TIF Taxable Value 13,824 - 20,749 - - Less: South Bozeman Tech TIF Taxable Value - - - - - Less: Total of TIF's Taxable Value 8,446,310 8,158,839 5,392,366 5,030,031 4,344,335 City - Net Dollars of Taxable Value $ 129,537,117 $ 125,423,197 $ 104,321,416 $ 101,194,775 $ 89,325,426 Tax Dollars Generated from 1 Mill: $ 129,537 $ 125,423 $ 104,321 $ 101,195 $ 89,325 Change in Taxable Value from Previous YearTax Yr 2020 Tax Yr 2019 Tax Yr 2018Tax Yr 2017 Tax Yr 2016 FY21 FY20 FY19FY18 FY17City - Gross %3.3% 21.8% 3.3% 13.4% 3.2% Downtown TIF4.3% 43.9% 10.3%22.8% 5.9% Northeast TIF4.4% 99.6% 2.4%15.8% -9.9% Midtown TIF-0.4% 74.5% 3.6%-5.5% -4.9% Mandeville Farm TIF0.0% 0.0% -100.0%11.5% 42.4%North Park Urban TIF100.0% 100.0% 100.0% South Bozeman Tech TIF-----City - Net %3.3% 20.2% 3.1% 13.3% 3.2%Change4,401,391$ 23,868,254$ 3,488,976$ 12,555,045$ 2,881,964$ Change in TIFs287,471 2,766,473 362,335 685,696 120,718 Change in Net4,113,920$ 21,101,781$ 3,126,641$ 11,869,349$ 2,761,246$ TIF's combined growth as a % of Total Growth6.5% 11.6% 10.4%5.5% 4.2% City Newly Taxable Property 4,397,169 4,685,485 3,707,744 3,393,650 3,279,600 % of prior year94% 126% 109%103% 72%% Newly Taxable increase from prior year3.5% 4.5% 3.7%3.8% 3.8%192
Received from the County
8/4/2020
193
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