HomeMy WebLinkAboutResolution 4468, setting tax mill levies for Fiscal year 2013-2014
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Administrative Services Director
Chris Kukulski, City Manager
SUBJECT: Commission Resolution No. 4468 – Setting Mill Levies for Fiscal Year
2013-2014 (FY14).
MEETING DATE: September 9, 2013
AGENDA ITEM: Action
RECOMMENDATION: Adopt Commission Resolution No. 4468 – Setting Mill Levies for
Fiscal Year 2013-2014 (FY14).
BACKGROUND: The City’s certification of taxable values for FY14 puts the value of 1 mill
levied on all taxable property in the city = $85,637. This is an increase of 2.9% over the certified
value for last year ($83,226/mill.)
275
Under state law, the City’s maximum allowable mill levy for FY14 is calculated to be 196.93
mills. The proposed mill levy for this year is: 173.08 mills.
From FY14
Approved Budget
From FY14 Certified
Value
Levy Purpose Number of Mills Number of Mills
All Purpose Levy 135.59 134.76
Community/Workforce Housing 0.5 0.50
Permissive Medical Insurance 23.35 22.57
Planning 2.00 2.00
Senior Transportation 1.00 1.00
Fire Equipment 4.00 4.00
Transportation GO Bonds 5.23 5.19
Library GO Bonds 3.09 3.06
Park and Trail GO Bonds 4.13 0
Grand Total Levied 178.89 173.08
At the time of budget development and adoption, we were uncertain as to whether or not we
would have issued Park and Trail GO Bonds in time to tax for debt service this fall. Being
conservative, we showed the recommended and approved budgets with an estimated mill levy for
debt service. At this time, we have not yet issued debt and cannot add a debt service levy to the
tax rolls this year. We do anticipate issuing bonds later this calendar year. The tax levy for debt
service would begin on the FY15 property tax bills (November 2014.)
$74,178 $78,290 $80,399 $82,062 $83,226 $85,637
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
FY09 FY10 FY11 FY12 FY13 FY14 FINAL
Taxes Generated from 1 Mill City-Wide
276
A levy of 173.08 mills is higher than last year by 6.33 mills; a 3.8% increase in the number of
mills levied for this year over last year.
Our certified value for budget purposes was estimated to increase 2% over last year. With the
actual certification (a 2.9% increase) more than we estimated, the recommended tax levy would
yield an additional $30,136 in revenue for the General Fund. This amount represents 0.26% of
the $11.5 million tax revenue in the General Fund.
• If the Commission would like to allocate this additional estimated revenue to a specific
project, such as the Pool Design budget, we can prepare the necessary budget
amendment resolution for a future agenda.
• Without a specific budget amendment, this additional revenue would add to the General
Fund’s reserve.
• If the Commission would like to further decrease the levy to NOT capture the additional
estimated $30,136, the all-purpose levy amount could be decreased by 0.35 mills on the
attached resolution.
Tax Increment Finance Districts: One of the elements of our certified values that is difficult to
gauge is now much of our construction will occur in the Tax Increment Finance (TIF) Districts
and how much will be out of the districts, and therefore part of the city-wide mill levy.
171.16 170.19 168.75 166.75 166.75 173.08
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
FY09 FY10 FY11 FY12 FY13 FY14 FINAL
City's Total Tax Levy
277
This year saw our Tax Increment Finance District certified values increase from 3.1% in the
Downtown TIF to 14.9% in the Northeast TIF. The Mandeville Farm TIF value declined this
year due to fluctuations in the value of centrally assessed property.
Last year, the Districts’ combined growth peaked to encompass approximately 27% of the city’s
gross increase in taxable property that year. This year, the TIF’s growth accounted for 11% of
the total growth of the city. New taxable value is increasing at a faster rate in our Increment
Districts than in the city as a whole, outside the districts.
Taxable Values FY14
City - Gross Dollars of Taxable Value $89,650,917
Less: Downtown TIF Taxable Value 2,586,963
Less: Northeast TIF Taxable Value 172,608
Less: North 7th TIF Taxable Value 1,193,297
Less: Mandeville Farm TIF Taxable Value 60,693
Less: Total of TIF's Taxable Value 4,013,561
City - Net Dollars of Taxable Value $85,637,356
Change in Taxable Value from Previous Year FY14
City - Gross % 3.1% Downtown TIF 8.0%
Northeast TIF 14.9%
North 7th TIF 10.1% Mandeville Farm TIF -21.6%
City - Net % 2.9%
TIF's combined growth as a % of Total Growth 11.2%
This year, the Department of Revenue included our Base Year Value of the South Bozeman
Technology TIF. Next year, should the taxable value of the district grow, we will have tax
increment dollars for that TIF to budget and plan to spend. This is good news for the City, as it
took numerous years for the Department to certify the base year value for the Mandeville TIF.
278
We are apparently successful in avoiding similar problems with the South Bozeman Technology
District.
Difference between Statutory Maximum and amount levied this year:
The city’s FY14 tax levy is 23.85 mills ($2,042,400) below the statutory maximum.
1. There is a reduction to the maximum levy of 14.85 mills ($1,271,667) as a result of
General Fund budget requests being cut and a desire to not levy the maximum number of
mills.
2. In September 2006, the Commission resolved to lower the City’s levy by 9 mills if the
county-wide levy for 911 Dispatch & Records Services was approved by the voters. The
county-wide levy was approved, 911 Dispatch/Records is no longer paid for out of the
City’s General Fund. The FY2013-2014 City All Purpose levy has been lowered 9 mills
($770,733), again this year.
The attached resolution anticipates levying 173.08 mills.
FY14 Maximum Levy in Mills 196.93
General Fund Cuts (14.85)
Police & Fire Vacancy Savings (0.00)
County 911-Records (9.00)
FY14 Proposed Levy in Mills 173.08
FY13 Levy in Mills 166.75
Difference between FY13 & FY14 in Mills +6.33
Dollar value of 6.33 Mills +$ 542,082
FISCAL EFFECTS: Adopting a mill levy of 173.08 mills is estimated to generate
$14,821,724 in property tax revenue for FY14. The revenue will be deposited to the funds
described on the attached “Mill Levies & Mill Values” sheet.
The effect of this levy on city property owners is an approximate 3.8% increase in property taxes
over last year. A typical resident (median home) will pay $651 in annual property taxes to the
city.
279
ALTERNATIVES: As suggested by the City Commission. Alternatives for the
additional tax dollars related to our certification exceeding our estimates are described above.
Attachment: Commission Resolution No. 4468
FY14 Mill Levies and Mill Values
Bozeman Taxable Values History Department of Revenue Certified Value
Report compiled on August 30, 2013
280
1 of 4
COMMISSION RESOLUTION NO. 4468
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 2013-2014 (FY14).
WHEREAS, in accordance with 15-10-203 MCA, after due and proper legal notice, at a
regular session of the City Commission on September 9, 2013, 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 2013 Certified
Taxable Valuation on August 9, 2013; 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 134.76 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
281
Resolution No. 4468, Establishing and Affixing the Number of Mills
2 of 4
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 3
That the City Commission of the City of Bozeman, Montana does hereby establish and
affix a mill levy in the amount of 22.57 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 establish and
affix a mill levy in the amount of 5.19 mills to provide for principal and interest payments on
outstanding Transportation System General Obligation Bonds in accordance with Section 7-7-
4265 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 3.06 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 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 9th day of September 2013.
282
Resolution No. 4468, Establishing and Affixing the Number of Mills
3 of 4
__________________________________
SEAN BECKER
Mayor
ATTEST:
_____________________________________ STACY ULMEN, CMC City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
283
Resolution No. 4468, Establishing and Affixing the Number of Mills
4 of 4
CITY OF BOZEMAN
Mill Levy Fiscal Year 2013-2014 (FY14)
Levy Purpose Number of Mills
All Purpose Levy 134.76 Community Housing 0.50
Permissive Medical Insurance 22.57
Planning 2.00
Senior Transportation 1.00
Transportation GO Bonds 5.19 Library GO Bonds 3.06
Fire Capital & Equipment 4.00
TOTAL LEVY 173.08 mills
284
MILL LEVIES AND MILL VALUES
**UPDATED after Certification of Values 8/2013
FISCAL YEAR FY09 FY10 FY11 FY12 FY13 FY14 FINAL
MILL VALUE (net of TIFD's) 74,178$ 78,290$ 80,399$ 82,062$ 83,226$ 85,637$
*Corrected 9/2011 Issued 9/2011
PERCENTAGE CHANGE 7.5% 5.5% 2.7% 2.1% 1.4% 2.9%
GENERAL FUND:
All-Purpose 111.91 111.96 110.16 127.16 127.66 134.76
SPECIAL REVENUE:
City Planning 2.00 2.00 2.00 2.00 2.00 2.00
Police Retirement* 4.14 4.34 4.45 0.00 0.00 0.00
Firefighters' Retirement* 2.72 2.85 2.97 0.00 0.00 0.00
Public Employees' Retirement* 4.52 4.75 4.86 0.00 0.00 0.00
Comprehensive Insurance* 4.53 4.61 4.73 0.00 0.00 0.00
Health/Med Insurance 24.31 23.67 24.29 22.53 23.22 22.57
Fire Capital & Equipment 4.00 4.00 4.00 4.00 4.00 4.00
Fire Truck/Equipment 0.00 0.00 0.00 0.00 0.00 0.00
Senior Transportation 1.00 1.00 1.00 1.00 1.00 1.00
Workforce Housing 1.46 1.00 0.50 0.50 0.50 0.50
TOTAL SPECIAL REVENUE 48.68 48.22 48.80 30.03 30.72 30.07
DEBT SERVICE:
ESTIMATED Park & Trail G.O.Bonds 0.00
Library G.O. Bonds 4.27 4.03 3.94 3.84 3.30 3.06
Transportation G.O. Bonds 6.30 5.98 5.85 5.72 5.07 5.19
TOTAL DEBT SERVICE 10.57 10.01 9.79 9.56 8.37 8.25
TOTAL ALL LEVIES 171.16 170.19 168.75 166.75 166.75 173.08
Percentage Change in Mills -5.7% 11.0% -0.6% -1.2% 0.0% 3.8%
Property Taxes Levied $10,635,491 $12,696,306 $13,324,175 $13,683,839 $13,878,293 $14,821,724
Percentage Change in Dollars 2.9% 19.4% 4.9% 2.7% 1.4% 6.8%
* These funds are being combined into the All Purpose Levy. They are all subject to MCA 15-10-420.
Tax Authority Authorized but Not Levied
General Fund Reduction 462,720$ 694,976$ 1,263,330$ 1,271,667$
Street & Tree Maintenance Offset 116,270$ -$ -$ -$
Police & Fire Reductions 583,000$ 849,000$ 914,000$ 578,525$ -$
SAFER Grant 350,120 303,570$ 189,720$ 113,985$ -$ -$
911 Mills (Resolution No. 3954) 667,602 704,610$ 723,303$ 738,558$ 749,034$ 770,733$
FY11 Certification Error: 59,753
Total Authorized But Not Levied 1,017,722$ 1,591,180$ 2,400,766$ 2,461,995$ 2,590,889$ 2,042,400$
Number of Mills 9.00 13.72 20.32 29.58 31.13 23.85
MILL LEVIES & MILL VALUES
285
City of BozemanTaxable Values HistoryTax Yr 2013 Tax Yr 2012 Tax Yr 2011 Tax Yr 2010 Tax Yr 2009 Tax Yr 2008 Tax Yr 2007FY14 FY13 FY12 FY11 FY10 FY09 FY08City - Gross Dollars of Taxable Value $ 89,650,917 $ 86,934,533 $ 85,345,227 $ 83,309,165 $ 80,850,582 $ 75,458,468 $ 70,016,605 Less: Downtown TIF Taxable Value 2,586,963 2,396,293 2,251,286 2,060,807 1,947,249 1,115,768 931,030 Less: Northeast TIF Taxable Value 172,608 150,217 133,197 135,162 104,987 71,287 48,790 Less: North 7th TIF Taxable Value 1,193,297 1,084,216 840,137 664,127 450,625 93,316 55,532 Less: Mandeville Farm TIF Taxable Value 60,693 77,412 58,146 50,554 57,740 - - Less: Total of TIF's Taxable Value 4,013,561 3,708,138 3,282,766 2,910,650 2,560,601 1,280,371 1,035,352 City - Net Dollars of Taxable Value $ 85,637,356 $ 83,226,395 $ 82,062,461 $ 80,398,515 $ 78,289,981 $ 74,178,097 $ 68,981,253 Tax Dollars Generated from 1 Mill: $ 85,637 $ 83,226 $ 82,062 $ 80,399 $ 78,290 $ 74,178 $ 68,981 Change in Taxable Value from Previous YearTax Yr 2013 Tax Yr 2012 Tax Yr 2011 Tax Yr 2010 Tax Yr 2009 Tax Yr 2008 Tax Yr 2007 FY14 FY13 FY12 FY11 FY10 FY09 FY08City - Gross % 3.1% 1.9% 2.4% 3.0% 7.1% 7.8% - Downtown TIF 8.0% 6.4% 9.2% 5.8% 74.5% 19.8% - Northeast TIF 14.9% 12.8% -1.5% 28.7% 47.3% 46.1% - North 7th TIF 10.1% 29.1% 26.5% 47.4% 382.9% 68.0% - Mandeville Farm TIF -21.6% 33.1% 15.0% -12.4% - - - City - Net % 2.9% 1.4% 2.1% 2.7% 5.5% 7.5% - TIF's combined growth as a % of Total Growth11.2% 26.8% 18.3% 14.2% 23.7% 4.5%286
287