HomeMy WebLinkAboutResolution 4551, Setting Mill Levies_11
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Administrative Services Director
SUBJECT: Commission Resolution No. 4551 – Setting Mill Levies for Fiscal Year
2014-2015 (FY15).
MEETING DATE: September 8, 2014
AGENDA ITEM: Action
RECOMMENDATION: Adopt Commission Resolution No. 4551 – Setting Mill Levies for
Fiscal Year 2014-2015 (FY15).
BACKGROUND: The City’s certification of taxable values for FY15, issued by the
Department of Revenue, puts the value of 1 mill levied on all taxable property in the city =
$87,894. This represents an increase of 2.6% over last year’s certified value. The city was also
informed by the Department that we would be receiving a portion of prior year’s Class 8 tax
revenues in the form of a reimbursement increasing our Entitlement Share from the State of
Montana in FY15. This reimbursement is meant to replace the taxable value of $1,046/mill.
The combined effect of these revenues ($88,940/mill) closely, but not quite, meets our 4.0%
increase in tax revenues and entitlement share as budgeted ($89,062/mill.)
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The State Departments of Administration and Revenue have both issued guidance on how to
calculate the maximum allowable mill levy, factoring in the Class I reimbursement for FY15.
We have made those adjustments on the forms attached.
Under state law, the City’s maximum allowable mill levy for FY15 is calculated to be 200.91
mills. The proposed mill levy for this year is: 188.76 mills.
From FY15 Certified
Value
Levy Purpose Number of Mills
All Purpose Levy 144.77
Community/Workforce Housing 1.00
Permissive Medical Insurance 23.18
Planning 2.00
Senior Transportation 1.00
Fire Equipment 4.00
Stormwater Project – Landfill Loan 1.57
Library GO Bonds 3.11
Park and Trail GO Bonds 8.13
Grand Total Levied 188.76
A levy of 188.76 mills is higher than last year by 15.68 mills; a 9.4% increase in the number of
mills levied for this year over last year.
The full details of prior years’ mill levies can be seen on the attachment to this memo labeled
“Mill Levies & Mill Values.” A number of factors account for the change this year, with the
largest effects coming from:
• New Park & Trail GO Bonds are added to the tax roll for the first time, 8.13 mills.
• Increase in the All Purpose levy of 10.01 mills, coming, in large part, from our
decreased cash-carryover.
• Addition of Landfill Project funding, 1.57 mills
• Decrease of Transportation GO Bonds levy because they are now paid in full,
(5.19 mills)
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With the actual certification and increase in entitlement share slightly less than we estimated, the
recommended tax levy would yield ($17,500) less in revenue for the General Fund. This
amount represents 0.1% of the $16.6 million in total property tax revenue, and is manageable
within the existing budget for FY15. We recommend making no adjustment to the approved
budget due to this amount.
Tax Increment Finance Districts: One of the elements of our certified values that is difficult to
gauge is now much of our new 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.
Also difficult to gauge is how changes in tax policy effect each of these small districts.
This year saw our Tax Increment Finance District certified values yield some unexpected results,
presumably affected by the changes in Class 8 (business equipment) property taxation. We have
contacted the Department of Revenue for the details of the changes in both the Mandeville Farm
and the Northeast TIF. If available, that information will be shared with the Commission prior to
the hearing.
170.19 168.75 166.75 166.75 173.08
188.76
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
FY10 FY11 FY12 FY13 FY14 FY15 Final
City's Total Tax Levy
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Last year, the Districts’ combined growth encompassed approximately 11% of the city’s gross
increase in taxable property that year. This year, the TIF’s growth accounted for 7% of the total
growth of the city.
Taxable Values FY14
City - Gross Dollars of Taxable Value $92,081,322
Less: Downtown TIF Taxable Value 2,718,220
Less: Northeast TIF Taxable Value 190,579
Less: North 7th TIF Taxable Value 1,225,604
Less: Mandeville Farm TIF Taxable Value 52,376
Less: South Bozeman Tech TIF Taxable Value 2
Less: Total of TIF's Taxable Value 4,186,781
City - Net Dollars of Taxable Value $87,894,541
Change in Taxable Value from Previous Year FY15
City - Gross % 2.7%
Downtown TIF 5.1%
Northeast TIF 10.4%
North 7th TIF 2.7%
Mandeville Farm TIF -13.7%
South Bozeman Tech TIF -
City - Net % 2.6%
TIF’s combined growth as a % of Total Growth 7.1%
This year, the Department of Revenue certified incremental value for South Bozeman
Technology TIF. While it is an exceedingly small amount ($2.00), it appears to be in line with
the lack of new development in the district to date. In future years, as taxable property is
constructed, the incremental value should grow.
Difference between Statutory Maximum and amount levied this year:
The city’s FY15 tax levy is 12.15 mills ($1,067,941) below the statutory maximum.
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1. There is a reduction to the maximum levy of 3.14 mills ($276,895) 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 FY2014-2015 City All Purpose levy has been lowered 9 mills
($791,046), again this year.
The attached resolution anticipates levying 188.76 mills.
FY15 Maximum Levy in Mills 200.91
General Fund Cuts (3.15)
County 911-Records (9.00)
FY15 Proposed Levy in Mills 188.76
FY14 Levy in Mills 173.08
Difference between FY14 & FY15 in Mills +15.68
Dollar value of 15.68 Mills +$1,378,177
FISCAL EFFECTS: Adopting a mill levy of 188.76 mills is estimated to generate
$16,590,000 in property tax revenue for FY15. 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 9.4% increase in property taxes
over last year. A typical resident (median home) will pay $680 in annual property taxes to the
city for Tax Year 2015.
ALTERNATIVES: As suggested by the City Commission.
Attachment: Commission Resolution No. 4551 FY15 Mill Levies and Mill Values
Bozeman Taxable Values History
Department of Revenue Certified Value
Report compiled on August 29, 2014
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1 of 4
COMMISSION RESOLUTION NO. 4551
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 2014-2015 (FY15).
WHEREAS, in accordance with 15-10-203 MCA, after due and proper legal notice, at a
regular session of the City Commission on September 8, 2014, 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 2014 Certified
Taxable Valuation on August 4, 2014; and
WHEREAS, the Montana Department of Revenue issued to the City a Corrected 2014
Certified Taxable Valuation on August 18, 2014; 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 144.77 mills to be levied for the
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Resolution No. 4551, Establishing and Affixing the Number of Mills
2 of 4
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.
Section 3 That the City Commission of the City of Bozeman, Montana does hereby establish and
affix a mill levy in the amount of 23.18 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 affix a 1.57 mill levy from the City’s maximum mill levy allowed under Sections 7-6-4451 and 15-10-420 MCA for the general purpose of the stormwater system, to include the stormwater improvement
program for corrective measures at the Bozeman Story Mill Landfill, served by the stormwater
system, with the funds appropriated, to pay a portion of the costs, in accordance with 7-7-4424
(b) 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 3.11 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 the City Commission of the City of Bozeman, Montana does hereby establish and
affix a mill levy in the amount of 8.13 mills to provide for principal and interest payments on
outstanding Trails, Open Space and Parks (TOP) General Obligation Bonds in accordance with Section 7-7-4265 MCA.
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Resolution No. 4551, Establishing and Affixing the Number of Mills
3 of 4
Section 9 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 8th day of September, 2014.
__________________________________
JEFFREY K. KRAUSS Mayor
ATTEST:
_____________________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN City Attorney
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Resolution No. 4551, Establishing and Affixing the Number of Mills
4 of 4
CITY OF BOZEMAN
Mill Levy Fiscal Year 2014-2015 (FY15)
Levy Purpose Number of Mills
All Purpose Levy 144.77 Workforce/Community Housing 1.00
Permissive Medical Insurance 23.18
Planning 2.00
Senior Transportation 1.00
Trails, Open Space, & Parks GO Bonds 8.13 Library GO Bonds 3.11
Stormwater - Story Mill Landfill Project
Fire Capital & Equipment
1.57
4.00
TOTAL LEVY 188.76 mills
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Correction
2014 Certified Taxable Valuation Information
(15-10-202, MCA)
Gallatin County
City of Bozeman
1. 2014 Total Market Value*………………………………………………. $ 3,598,269,877
2. 2014 Total Taxable Value………………………………………………... $ 92,081,322
3. 2014 Taxable Value of Newly Taxable Property………………………. $ 2,642,222
4. 2014 Taxable Value less Incremental Taxable Value**……………. $ 87,894,541
5. 2014 Taxable Value of Net and Gross Proceeds***
(Class 1 and Class 2 properties)…………………………………...
$
6. TIF Districts
Tax Increment
District Name
Current Taxable
Value
Base Taxable Value Incremental Value
Bozeman Downtown 4,046,915 1,328,695 2,718,220
Northeast Urban R.D. 613,633 423,054 190,579
North 7th corridor 4,112,601 2,886,997 1,225,604
Mandeville Farm Ind 64,435 12,059 52,376
S Bozeman Tech Dist 419 417 2
Total Incremental Value 4,186,781
Preparer Melinda Miller 8-19-2014
*Market value does not include class 1 and class 2 value.
**This value is the taxing jurisdiction’s taxable value less total incremental value of all tax increment
financing districts.
***The taxable value of class 1 and class 2 is included in the taxable value totals.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
For Information Purposes Only
2014 taxable value of centrally assessed property having a market value of $1 million or more,
which has transferred to a different ownership in compliance with 15-10-202(2), MCA.
I. Value included in “newly taxable” property $
II. Total value exclusive of “newly taxable” property $
MONTANA
Form AB-72T
Rev. 4-14
262
MILL LEVIES AND MILL VALUES
FISCAL YEAR FY10 FY11 FY12 FY13 FY14 FY15 Final
MILL VALUE (net of TIFD's) 78,290$ 80,399$ 82,062$ 83,226$ 85,637$ 87,894$
*Corrected 9/2011 Issued 9/2011
PERCENTAGE CHANGE 5.5% 2.7% 2.1% 1.4% 2.9% 2.6%
GENERAL FUND:
All-Purpose 111.96 110.16 127.16 127.66 134.76 144.77
SPECIAL REVENUE:
City Planning 2.00 2.00 2.00 2.00 2.00 2.00
Local Government Study Commission 0.00
Police Retirement* 4.34 4.45 0.00 0.00 0.00 0.00
Firefighters' Retirement* 2.85 2.97 0.00 0.00 0.00 0.00
Public Employees' Retirement* 4.75 4.86 0.00 0.00 0.00 0.00
Comprehensive Insurance* 4.61 4.73 0.00 0.00 0.00 0.00
Health/Med Insurance 23.67 24.29 22.53 23.22 22.57 23.18
Fire Capital & Equipment 4.00 4.00 4.00 4.00 4.00 4.00
Transfer to Stormwater - Landfill Project 0.00 0.00 0.00 0.00 0.00 1.57
Senior Transportation 1.00 1.00 1.00 1.00 1.00 1.00
Workforce Housing 1.00 0.50 0.50 0.50 0.50 1.00
TOTAL SPECIAL REVENUE 48.22 48.80 30.03 30.72 30.07 32.75
DEBT SERVICE:
Park & Trail G.O.Bonds, Ser 2013 0.00 8.13
Library G.O. Bonds 4.03 3.94 3.84 3.30 3.06 3.11
Transportation G.O. Bonds 5.98 5.85 5.72 5.07 5.19 0.00
TOTAL DEBT SERVICE 10.01 9.79 9.56 8.37 8.25 11.24
TOTAL ALL LEVIES 170.19 168.75 166.75 166.75 173.08 188.76
Percentage Change in Mills 11.0% -0.6% -1.2% 0.0% 3.8% 9.4%
Property Taxes Levied $13,324,175 $13,567,611 $13,683,839 $13,878,293 $14,821,724 $16,590,871
Percentage Change in Dollars 19.4% 4.9% 0.9% 1.4% 6.8% 11.9%
* These funds are being combined into the All Purpose Levy. They are all subject to MCA 15-10-420.
Tax Authority Authorized but Not Levied
General Fund Reduction 462,720$ 694,976$ 1,263,330$ 1,271,667$ 276,895$
Street & Tree Maintenance Offset 116,270$ -$ -$ -$ -$
Police & Fire Reductions 583000 849,000$ 914,000$ 578,525$ -$ -$
SAFER Grant 303,570 189,720$ 113,985$ -$ -$ -$
911 Mills (Resolution No. 3954) 704,610 723,303$ 738,558$ 749,034$ 770,733$ 791,046$
FY11 Certification Error: 59,753
Total Authorized But Not Levied 1,591,180$ 2,400,766$ 2,461,995$ 2,590,889$ 2,042,400$ 1,067,941$
Number of Mills 13.72 20.32 29.58 31.13 23.85 12.15
FINAL - after 2nd Certification 8/19/2014
MILL LEVIES & MILL VALUES
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City of BozemanTaxable Values HistoryTax Yr 2014 Tax Yr 2013 Tax Yr 2012 Tax Yr 2011 Tax Yr 2010 Tax Yr 2009 Tax Yr 2008 Tax Yr 2007FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08City - Gross Dollars of Taxable Value$ 92,081,322 $ 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 2,718,220 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 190,579 172,608 150,217 133,197 135,162 104,987 71,287 48,790 Less: North 7th TIF Taxable Value 1,225,604 1,193,297 1,084,216 840,137 664,127 450,625 93,316 55,532 Less: Mandeville Farm TIF Taxable Value 52,376 60,693 77,412 58,146 50,554 57,740 - - Less: South Bozeman Tech TIF Taxable Value 2 Less: Total of TIF's Taxable Value 4,186,781 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$ 87,894,543 $ 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:$ 87,895 $ 85,637 $ 83,226 $ 82,062 $ 80,399 $ 78,290 $ 74,178 $ 68,981 Change in Taxable Value from Previous YearTax Yr 2014 Tax Yr 2013 Tax Yr 2012 Tax Yr 2011 Tax Yr 2010 Tax Yr 2009 Tax Yr 2008 Tax Yr 2007 FY15 FY14 FY13 FY12 FY11 FY10 FY09 FY08City - Gross %2.7% 3.1% 1.9% 2.4% 3.0% 7.1% 7.8% - Downtown TIF5.1% 8.0% 6.4% 9.2% 5.8% 74.5% 19.8% - Northeast TIF10.4% 14.9% 12.8% -1.5% 28.7% 47.3% 46.1% - North 7th TIF2.7% 10.1% 29.1% 26.5% 47.4% 382.9% 68.0% - Mandeville Farm TIF-13.7% -21.6% 33.1% 15.0% -12.4% - - - South Bozeman Tech TIF-City - Net %2.6% 2.9% 1.4% 2.1% 2.7% 5.5% 7.5% 9.1%TIF's combined growth as a % of Total Growth7.1% 11.2% 26.8% 18.3% 14.2% 23.7% 4.5% $87,895 $85,637 $83,226 $82,062 $80,399 $78,290 $74,178 $68,981 $-$20,000 $40,000 $60,000 $80,000 $100,000 FY15FY14FY13FY12FY11FY10FY09FY08Taxes Generated from 1 Mill City-Wide264
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