HomeMy WebLinkAboutResolution No. 4283, Setting Mill Levies for Fiscal Year 2010-2011.pdf
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Commission Resolution No. 4283 – Setting Mill Levies for Fiscal Year
2010-2011
MEETING DATE: September 13, 2010
AGENDA ITEM: Action
RECOMMENDATION: Adopt Commission Resolution No. 4283 – Setting Mill Levies for
Fiscal Year 2010-2011.
BACKGROUND: As discussed during our August 23rd Budget Work Session, the City’s
certification of taxable values for FY11 puts the value of 1 mill levied on all taxable property in
the city = $80,783. This is an increase of 3.2% over the value for last year ($78,290/mill.)
Under state law, the City’s maximum allowable mill levy for FY2010-2011 is calculated to be
197.77 mills.
During review of the budget this summer, $49,540 in budget “clean-up” items were identified as
not needing funding, and result in a tax levy savings of 0.61 mills.
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During the adoption of the annual Street and Tree Maintenance Assessments, the commission
motion was to reduce the tax levy by an amount equal to the annual assessment increase of
$116,730, or 1.45 mills.
In November 2007, city voters approved increasing our tax levies by an additional 5 mills to
fund police department officers and their equipment. However, due to unspent personnel
budgets (Police Officers & Fire Battalion Chiefs) FY10, and the plan to not hire Battalion Chiefs
in FY11, we are recommending lowering the Police & Fire Levy amounts this year by $849,000,
or 10.51 mills.
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 4 years, beginning in FY09. For the current
year, we have subtracted the amount of the grant ($189,720) from the tax levy, lowering the levy
by 2.34 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
approved, 911 Dispatch is no longer paid for out of the City’s General Fund, and the FY2010-
2011 City All Purpose levy has been lowered 9 mills again this year.
The attached resolution anticipates levying 173.86 mills; an increase of 3.67 mills from the prior
year.
FY11 Maximum Levy in Mills 197.77
Clean Up Items (0.61)
Street & Tree Assessments (1.45)
Police & Fire Vacancy Savings (10.51)
SAFER Grant (2.34)
County 911 (9.00)
FY11 Proposed Levy in Mills 173.86
FY10 Levy in Mills 170.19
Difference between FY10 & FY11 in Mills 3.67
Dollar value of 3.67 Mills $ 296,475
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FISCAL EFFECTS: Adopting a mill levy of 173.86 mills will generate $14,045,213 in
property tax revenue for FY2010-2011. The revenue will be deposited to the funds described on
the attached “Mill Levies & Mill Values” sheet. The annual property tax on the median home in
the City will be $493.42.
ALTERNATIVES: As suggested by the City Commission.
Attachment: Commission Resolution No. 4283
FY11 Mill Levies and Mill Values
Department of Revenue Certified Value, dated August 2, 2010
Report compiled on September 2, 2010
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COMMISSION RESOLUTION NO. 4283
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 2010-2011.
WHEREAS, in accordance with 15-10-203 MCA, after due and proper legal notice, at a
regular session of the City Commission on September 13, 2010, the public hearing on the
proposed change 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:
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 114.77 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
That the City Commission of the City of Bozeman, Montana does hereby affix a 1.00
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.
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Resolution No. 4283, Establishing and Affixing the Number of Mills
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Section 3
That the City Commission of the City of Bozeman, Montana does hereby affix a 2.97
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
MCA.
Section 4
That the City Commission of the City of Bozeman, Montana does hereby affix a 4.45
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 5
That the City Commission of the City of Bozeman, Montana does hereby affix and
establish a mill levy in the amount of 4.86 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 6
That the City Commission of the City of Bozeman, Montana does hereby establish and
affix a mill levy in the amount of 4.73 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 7
That the City Commission of the City of Bozeman, Montana does hereby establish and
affix a mill levy in the amount of 24.29 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 8
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 9
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 10
That the City Commission of the City of Bozeman, Montana does hereby establish and
affix a mill levy in the amount of 5.85 mills to provide for principal and interest payments on
outstanding Transportation System General Obligation Bonds in accordance with Section 7-7-
4265 MCA.
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Resolution No. 4283, Establishing and Affixing the Number of Mills
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Section 11
That the City Commission of the City of Bozeman, Montana does hereby establish and
affix a mill levy in the amount of 3.94 mills to provide for principal and interest payments on
outstanding Library General Obligation Bonds in accordance with Section 7-7-4265 MCA.
Section 12
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.
PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana
at a regular session thereof held on the 13th day of September 2010.
__________________________________
JEFFREY K. KRAUSS
Mayor
ATTEST:
_____________________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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CITY OF BOZEMAN
Mill Levy Fiscal Year 2010-2011
Levy Purpose Number of Mills
All Purpose Levy 114.77
Community Housing 1.00
Fire Retirement 2.97
Police Retirement 4.45
PERS Retirement 4.86
Comprehensive Insurance 4.73
Permissive Medical Insurance 24.29
Planning 2.00
Senior Transportation 1.00
Transportation GO Bonds 5.85
Library GO Bonds 3.94
Fire Capital & Equipment 4.00
TOTAL LEVY 173.86 mills
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MILL LEVIES & MILL VALUESFISCAL YEAR FY06 FY07 FY08 FY09 FY10 FY11 MILL VALUE 58,063$ 63,249$ 68,981$ 74,178$ 78,290$ 80,783$ PERCENTAGE CHANGE -8.9%9.1%7.5%5.5%3.2%Prelim PrelimGENERAL FUND:All-Purpose 111.39 110.57 101.26 111.91 111.96 114.77 114.77 9,271,465 10075432 (803,967) SPECIAL REVENUE:City Planning 2.00 2.00 2.00 2.00 2.00 2.00 2.00 161,566 Police Retirement 3.54 4.07 4.27 4.14 4.34 4.45 4.45 359,484 346,575 12,909 Firefighters' Retirement 1.71 2.68 2.81 2.72 2.85 2.97 2.97 239,926 227,590 12,336 Public Employees' Retirement 3.59 4.39 4.61 4.52 4.75 4.86 4.86 392,605 379,316 13,289 Comprehensive Insurance 3.45 4.45 4.67 4.53 4.61 4.73 4.73 382,104 368,136 13,968 Health/Med Insurance 23.21 22.91 22.36 24.31 23.67 24.29 52,502 Fire Capital & Equipment 4.00 4.00 4.00 4.00 323,132 (751,465) Fire Truck/Equipment 6.00 Senior Transportation 1.00 1.00 1.00 1.00 1.00 1.00Workforce Housing 1.46 1.00 1.00 1.00 80,783 TOTAL SPECIAL REVENUE 44.50 41.50 41.72 48.68 48.22 49.30 138.78 11,211,065 - - DEBT SERVICE:1.44 Police & Fire ReductionLibrary G.O. Bonds 5.39 4.95 4.53 4.27 4.03 3.94 9.00 911 Mills Transportation G.O. Bonds 6.98 6.40 6.67 6.30 5.98 5.85 149.22 Total AuthTOTAL DEBT SERVICE 12.37 11.35 11.20 10.57 10.01 9.79 184.302766176052318,566 FY11TOTAL ALL LEVIES 168.26 163.42 154.18 171.16 170.19 173.86 162.70Percentage Change in Mills --2.9%-5.7%11.0%-0.6%2.1%(149.22) 13.48Property Taxes Levied $9,769,893 $10,336,467 $10,635,491 $12,696,306 $13,324,175 $14,045,213Percentage Change in Dollars -5.8%2.9%19.4%4.9%5.4%
Tax Authority Authorized but Not Levied
General Fund Reduction 174,189 49,450$
Street & Tree Maintenance Offset 116,270$
Police & Fire Reductions 583,000$ 849,000$ (1.44) Mills for Change in PD
SAFER Grant 350,120$ 303,570$ 189,720$
911 Mills (Resolution No. 3954)620,829$ 667,602$ 704,610$ 727,047$
(0.28) Mills for Change in SAFER
Total Authorized But Not Levied 174,189$ -$ 620,829$ 1,017,722$ 1,591,180$ 1,931,487$
Number of Mills 3.00 - 9.00 13.72 20.32 23.91
493.42 Median
818.90 150K
1,091.86 200K
B-4
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