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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Open and Continue FY2010 Budget Hearing to September 28, 2009 for
Final Adoption
MEETING DATE: September 14, 2009
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Open and Continue FY2010 Budget Hearing to September 28, 2009
for Final Adoption
BACKGROUND: On June 22, 2009, the Commission adopted the City Manager’s
Recommended Budget for FY2010 as the city’s preliminary budget. On July 20, 2009 the
FY2010 Budget Hearing was formally opened. It was continued to September 14, 2009,
anticipating that the City would receive accurate Certified Taxable Values from the Department
of Revenue in the last week of August.
In that interim time, the Commission held three separate budget discussions (July 20, August 3,
and August 17) to review the specific details of the City Manager’s Recommended Budget.
Numerous other public hearings have been held on items directly related to the budget, including
utility rates, special assessments, and federal stimulus funds.
On September 1, 2009, the City received Certified Taxable Values from the Department of
Revenue (DOR). Upon review of these numbers, which indicated approximately 7.3% growth in
our tax base, questions were posed to DOR about their accuracy. On September 3, 2009, the
DOR issued a revised certification, which adjusted down the growth in our tax base to roughly
5.5%.
Very few taxpayers in Gallatin County have received their property tax assessment notices, as of
September 10, 2009. Because errors can be identified and appeals made after property owners
receive their notices, the State will be holding another conference call with local governments to
report on these issues around September 14, 2009. In a city with so much new construction
coming on the tax rolls for the first time, I believe it’s important to wait to set levies until
property owners have had a chance to review the DOR’s assessment for their property. I
recommend that we DO NOT set our levies (and adopt the budget) until after we hear from DOR
about these issues. We recommend that you open and continue the Budget Hearing until
September 28.
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FISCAL EFFECTS: Adoption of the Budget has far reaching fiscal effects. Opening and
continuing this hearing will not have significant fiscal effects. Departments will continue to
operate under the preliminary budget (CM Recommended Budget.)
ALTERNATIVES: As suggested by the City Commission.
Attachments: None
Report compiled on: September 10, 2009
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