The URL can be used to link to this page

Home My WebLink About9-7 Revised Res 4335 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Commission Resolution No. 4335 – Setting Mill Levies for Fiscal Year 2011-2012 MEETING DATE: September 12, 2011 **Updated for calculation error of 0.75 mills. 9/7/2011*** AGENDA ITEM: Action RECOMMENDATION: Adopt Commission Resolution No. 4335 – Setting Mill Levies for Fiscal Year 2011-2012. BACKGROUND: The City’s certification of taxable values for FY12 puts the value of 1 mill levied on all taxable property in the city = $82,448. This is an increase of 3.2% over the certified value for last year ($80,783/mill.) On August 8, 2011, the Department of Revenue notified us that the FY11 Certified Taxable Values (Tax Year 2010) were incorrect. We are still awaiting formal word on whether the Department will be issuing a correction to their certification. In meeting the Gallatin County officials, the estimated impact of the error is reflected on the attached Mill Levies & Mill Values sheet, in red for FY11. Under state law, the City’s maximum allowable mill levy for FY2011-2012 is calculated to be 195.68 mills. In November 2007, city voters approved increasing our tax levies to fund police department officers and their equipment. However, due to unspent Police personnel budget in FY11, and the plan to not hire Battalion Chiefs in FY12, we are recommending lowering the Police & Fire Levy amounts this year by $914,000, or 11.09 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 ($113,985) from the tax levy, lowering the levy by 1.38 mills. This is the last year that we will be receiving this grant money. In September 2006, the Commission resolved to lower the City’s levy by 9 mills if the county- wide levy for 911 Dispatch services was approved by the voters. The county-wide levy was approved, 911 Dispatch is no longer paid for out of the City’s General Fund, and the FY2011- 2012 City All Purpose levy has been lowered 9 mills again this year. The attached resolution anticipates levying 167.35 mills; a decrease of 1.4 mills from the prior year. FY12 Maximum Levy in Mills 195.68 General Fund Cash (7.62) Police & Fire Vacancy Savings (11.09) SAFER Grant (1.38) County 911 (9.00) FY12 Proposed Levy in Mills 166.59 FY11 Levy in Mills 168.75 Difference between FY11 & FY12 in Mills (2.16) Dollar value of 2.16 Mills ($ 178,088) FISCAL EFFECTS: Adopting a mill levy of 166.59 mills is estimated to generate $13,734,869 in property tax revenue for FY2011-2012. The revenue will be deposited to the funds described on the attached “Mill Levies & Mill Values” sheet. ALTERNATIVES: As suggested by the City Commission. Attachment: Commission Resolution No. 4335 FY12 Mill Levies and Mill Values Department of Revenue Certified Value Report compiled on September 4, 2011 1 of 4 COMMISSION RESOLUTION NO. 4335 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 2011-2012. 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: That for the purpose of providing and maintaining basic City services the City Commission of the City of Bozeman, Montana does hereby affix 127.16 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 1 That the City Commission of the City of Bozeman, Montana does hereby affix a 0.50 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 2 Resolution No. 4335, Establishing and Affixing the Number of Mills 2 of 4 That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 22.42 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 3 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 4 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 5 That the City Commission of the City of Bozeman, Montana does hereby establish and affix a mill levy in the amount of 5.69 mills to provide for principal and interest payments on outstanding Transportation System General Obligation Bonds in accordance with Section 7-7- 4265 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 3.82 mills to provide for principal and interest payments on outstanding Library General Obligation Bonds in accordance with Section 7-7-4265 MCA. Section 7 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 8 PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana at a regular session thereof held on the 12th day of September 2011. __________________________________ JEFFREY K. KRAUSS Mayor Resolution No. 4335, Establishing and Affixing the Number of Mills 3 of 4 ATTEST: _____________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney Resolution No. 4335, Establishing and Affixing the Number of Mills 4 of 4 CITY OF BOZEMAN Mill Levy Fiscal Year 2011-2012 Levy Purpose Number of Mills All Purpose Levy 127.16 Community Housing 0.50 Permissive Medical Insurance 22.42 Planning 2.00 Senior Transportation 1.00 Transportation GO Bonds 5.69 Library GO Bonds 3.82 Fire Capital & Equipment 4.00 TOTAL LEVY 166.59 mills FISCAL YEAR FY07 FY08 FY09 FY10 FY11 FY12 MILL VALUE 63,249$ 68,981$ 74,178$ 78,290$ 80,367$ 82,448$ *Corrected 8/2011 PERCENTAGE CHANGE 8.9% 9.1% 7.5% 5.5%2.7%2.6% GENERAL FUND: All-Purpose 110.57 101.26 111.91 111.96 110.16 127.16 SPECIAL REVENUE: City Planning 2.00 2.00 2.00 2.00 2.00 2.00 Police Retirement* 4.07 4.27 4.14 4.34 4.45 0.00 Firefighters' Retirement* 2.68 2.81 2.72 2.85 2.97 0.00 Public Employees' Retirement* 4.39 4.61 4.52 4.75 4.86 0.00 Comprehensive Insurance* 4.45 4.67 4.53 4.61 4.73 0.00 Health/Med Insurance 22.91 22.36 24.31 23.67 24.29 22.42 Fire Capital & Equipment 4.00 4.00 4.00 4.00 Fire Truck/Equipment Senior Transportation 1.00 1.00 1.00 1.00 1.00 1.00 Workforce Housing 1.46 1.00 0.50 0.50 TOTAL SPECIAL REVENUE 41.50 41.72 48.68 48.22 48.80 29.92 DEBT SERVICE: Library G.O. Bonds 4.95 4.53 4.27 4.03 3.94 3.82 Transportation G.O. Bonds 6.40 6.67 6.30 5.98 5.85 5.69 TOTAL DEBT SERVICE 11.35 11.20 10.57 10.01 9.79 9.51 TOTAL ALL LEVIES 163.42 154.18 171.16 170.19 168.75 166.59 Percentage Change in Mills -2.9% -5.7% 11.0% -0.6% -0.8% -1.3% Property Taxes Levied $10,336,467 $10,635,491 $12,696,306 $13,324,175 $13,562,211 $13,734,869 Percentage Change in Dollars 5.8% 2.9% 19.4% 4.9%1.8%1.3% * These funds are being combined into the All Purpose Levy. They are all subject to MCA 15-10-420. Tax Authority Authorized but Not Levied General Fund Reduction 462,720$ 628,354$ Street & Tree Maintenance Offset 116,270$ -$ Police & Fire Reductions 583,000$ 849,000$ 914,000$ SAFER Grant 350,120$ 303,570$ 189,720$ 113,985$ 911 Mills (Resolution No. 3954) 620,829 667,602$ 704,610$ 723,303$ 742,032$ FY11 Certification Error:59,753$ Total Authorized But Not Levied -$ 620,829$ 1,017,722$ 1,591,180$ 2,400,766$ 2,398,371$ Number of Mills - 9.00 13.72 20.32 29.87 29.09 MILL LEVIES & MILL VALUES B-4