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Home My WebLink About09-2-2008_Resolution No. 4122, Setting Mill Levies for Fiscal year 2008-2009 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Commission Resolution No. 4122 – Setting Mill Levies for Fiscal Year 2008-2009 MEETING DATE: September 2, 2008 BACKGROUND: On August 20, 2006 the City received Certified Taxable Values from the Montana Department of Revenue indicating that each City mill would generate $74,178 in tax revenue, with $4,197 per mill related to new construction. Under state law, the City’s maximum allowable mill levy for FY2007-2008 is calculated to be 184.88 mills. In November 2007, city voters approved increasing our tax levies by up to 20 mills in FY09 to fund additional firefighters, police officers, equipment and capital. The City’s Fire Department has been awarded a federal grant to fund firefighter personnel costs that will save our local taxpayers $948,000 over the next 4 years. For the current year, we have subtracted the amount of the grant ($350,120) from the tax levy, lowering our recommended levy by 4.72 mills. In September 2006, the Commission resolved to lower the City’s levy by 9 mills if the county- wide levy for 911 Dispatch services was approved by the voters. The county-wide levy was 51 approved, 911 Dispatch is no longer paid for out of the City’s General Fund, and the FY2008- 2009 City All Purpose levy has been lowered 9 mills again this year. The attached resolution anticipates levying 171.16 mills; our maximum levy decreased by 13.72 mills for the fire grant and 911 commitments. RECOMMENDATION: Adopt Commission Resolution No. 4122 – Setting Mill Levies for Fiscal Year 2008-2009. FISCAL EFFECTS: Adopting a mill levy of 171.16 mills will generate $12,696,447 in property tax revenue for FY2008-2009. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, Anna Rosenberry, Finance Director Chris A. Kukulski, City Manager Attachment: Commission Resolution No. 4061 UPDATED: FY08 Mill Levies and Mill Values Department of Revenue Certified Value, dated 8/20/2008 Report compiled on August 28, 2008 52 COMMISSION RESOLUTION NO. 4122 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 2008-2009. WHEREAS, in accordance with 15-10-203 MCA, after due and proper legal notice, at a regular session of the City Commission on September 2, 2008, the public hearing on the proposed increased amount of ad-valorem tax revenue was held; 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: That for the purpose of providing and maintaining basic City services the City Commission of the City of Bozeman, Montana does hereby affix 113.37 mills to be levied for the All Purpose General Fund for all salaries, operations, and capital expenditures for general government purposes as provided by Section 7-6-4451 MCA. Section 1 That the City Commission of the City of Bozeman, Montana does hereby affix a 2.72 mill levy for the State mandated Firefighters Retirement System in order to maintain payments to the State administered Firefighters Retirement System in accordance with Section 19-13-606 Section 2 53 MCA. That the City Commission of the City of Bozeman, Montana does hereby affix a 4.14 mill levy for the State-mandated Police Retirement System in order to maintain payments to the State-administered Police Retirement System in accordance with Section 19-9-704 MCA. Section 3 That the City Commission of the City of Bozeman, Montana does hereby affix and establish a mill levy in the amount of 4.52 mills to provide for City contribution to the State retirement system for employees covered under the Public Employees Retirement System (PERS) in accordance with Section 19-3-204 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 4.53 mills to provide funds for Comprehensive Insurance protection and coverage for the City of Bozeman, Montana in accordance with Section 2-9-212 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 24.31 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 6 That the City Commission of the City of Bozeman, Montana does hereby establish and Section 7 54 affix a mill levy in the amount of 2.00 mills to provide funds for the of the City Planning Activity in accordance with Section 76-1-406 MCA. 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 8 That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 6.30 mills to provide for principal and interest payments on outstanding Transportation System General Obligation Bonds in accordance with Section 7-7- 4265 MCA. Section 9 That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 4.27 mills to provide for principal and interest payments on outstanding Library General Obligation Bonds in accordance with Section 7-7-4265 MCA. Section 10 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 provided by Section 7-6-4451 MCA. Section 11 PASSED AND ADOPTED by the City Commission of the City of Bozeman Montana at a regular session thereof held on the 2nd day of September 2008. 55 ___________________________________ KAAREN JACOBSON Mayor ATTEST: _____________________________________ STACY ULMEN City Clerk APPROVED AS TO FORM: ___________________________________ TIM COOPER Assistant City Attorney 56 CITY OF BOZEMAN Mill Levy Fiscal Year 2008-2009 Levy Purpose Number of Mills All Purpose Levy 113.37 Fire Retirement 2.72 Police Retirement 4.14 PERS Retirement 4.52 Comprehensive Insurance 4.53 Permissive Medical Insurance 24.31 Planning 2.00 Senior Transportation 1.00 Transportation GO Bonds 6.30 Library GO Bonds 4.27 Fire Capital & Equipment 4.00 TOTAL LEVY 171.16 mills 57 MILL LEVIES & MILL VALUES FISCAL YEAR FY 04 FY 05 FY06 FY07 FY08 FY09 MILL VALUE 49,559$ 52,985$ 58,063$ 63,249$ 68,981$ 74,178$ PERCENTAGE CHANGE - 6.9% 9.6% 8.9% 9.1% 7.5% GENERAL FUND: All-Purpose 108.43 111.48 111.39 110.57 101.26 113.37 SPECIAL REVENUE: City Planning 2.00 2.00 2.00 2.00 2.00 2.00 Police Retirement 4.70 3.88 3.54 4.07 4.27 4.14 Firefighters' Retirement 2.10 1.87 1.71 2.68 2.81 2.72 Public Employees' Retirement 4.08 3.93 3.59 4.39 4.61 4.52 Comprehensive Insurance 4.01 3.78 3.45 4.45 4.67 4.53 Health/Med Insurance 21.77 24.73 23.21 22.91 22.36 24.31 Fire Capital & Equipment 4.00 Fire Truck/Equipment 6.00 6.00 6.00 Senior Transportation 1.00 1.00 1.00 1.00 1.00 1.00 TOTAL SPECIAL REVENUE 45.66 47.19 44.50 41.50 41.72 47.22 DEBT SERVICE: Library G.O. Bonds 8.22 7.99 5.39 4.95 4.53 4.27 Transportation G.O. Bonds 1.00 5.33 6.98 6.40 6.67 6.30 TOTAL DEBT SERVICE 9.22 13.32 12.37 11.35 11.20 10.57 TOTAL ALL LEVIES 163.31 171.99 168.26 163.42 154.18 171.16 Percentage Change - 5.3% -2.2% -2.9% -5.7% 11.0% Property Taxes Levied $8,093,480 $9,112,890 $9,769,893 $10,336,467 $10,635,491 $12,696,447 Percentage Change - 12.6% 7.2% 5.8% 2.9% 19.4% * Tax Authority Authorized but Not Levied 350,120$ FY09 SAFER -$ 174,189$ -$ 620,829$ 667,602$ 911 Mills 911 Mills Res. No. 3954 Res. No. 3954 B-4 58 59