HomeMy WebLinkAboutA4. Resolution 4634, Tax Levy
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Administrative Services Director
SUBJECT: Commission Resolution No. 4634 – Setting Mill Levies for Fiscal Year
2015-2016 (FY16).
MEETING DATE: August 31, 2015
AGENDA ITEM: Action
RECOMMENDATION: Adopt Commission Resolution No. 4634 – Setting Mill Levies for
Fiscal Year 2015-2016 (FY16).
BACKGROUND: The City’s certification of taxable values for FY16, issued by the
Department of Revenue (DOR), puts the value of 1 mill levied on all taxable property in the city
= $86,564. This represents a decrease of 1.5% from last year’s certified value.
The approved budget anticipated a larger decrease in taxable value, based on preliminary
information the DOR had been providing to us and to the legislature. The approved budget was
developed with a mill value estimated = $80,331. With the actual certification being
significantly higher than we projected, the recommended tax levy will yield an additional
$280,000 in revenue for the General Fund.
The City Manager recommends levying this amount to be held in the General Fund for either the
Law & Justice Center project or to fund the Story Mill Landfill efforts. The Commission could
also chose to decrease the All Purpose Levy by up to 3.23 mills and still meet the revenue level
adopted in the FY16 General Fund budget.
Under state law, the City’s maximum allowable mill levy for FY16 is calculated to be 223.35
mills. The proposed mill levy for this year is: 210.16 mills.
From FY16 Certified
Value
Levy Purpose Number of Mills
All Purpose Levy 155.78
Community/Workforce Housing 3.00
Permissive Medical Insurance 27.11
Planning 2.00
Senior Transportation 1.00
Fire Equipment 4.00
Stormwater Project – Landfill Loan 1.62
Library GO Bonds 3.16
Park and Trail GO Bonds 12.49
Grand Total Levied 210.16
A levy of 210.16 mills is lower than our estimate at budget development by 12.04 mills;
approximately 5% lower.
A levy of 210.16 mills is higher than last year by 21.40 mills; a 12.4% 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:
• In general, levy amounts that bring in a fixed number of dollars have been
increased to reflect the decrease in taxable value (floating mills).
• Additional Debt Service levy from the additional Series 2014 Park & Trail GO
Bonds are added to the tax roll for the first time, 12.49 mills total.
• Additional Community/Workforce Housing mills, 3.00 mills total.
• Increase in the All Purpose levy of 11.02 mills (from floating mills, inflationary
increase and decreased cash carry-over.)
• Additional Permissive Medical (Health Insurance) mills, 27.11 mills total.
Difference between Statutory Maximum and amount levied this year:
The City’s proposed levy is lower than the maximum allowable levy by a total of 13.19 mills:
• 9 mills – commitment under Resolution No. 3954, related to the county-wide 911
mill levy, ($779,000.) 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.
• 4.19 mill – reduced during the FY16 Budget adoption, ($363,096.) This is a
result of General Fund budget requests being cut and a desire to not levy the
maximum number of mills.
The attached resolution anticipates levying 210.16 mills.
FY16 Maximum Levy in Mills 223.35
General Fund Cuts (4.19)
County 911-Records (9.00)
168.75 166.75 166.75 173.08 188.76
210.16
0.00
50.00
100.00
150.00
200.00
250.00
FY11 FY12 FY13 FY14 FY15 FY16
City's Total Tax Levy
FY16 Proposed Levy in Mills 210.16
FY15 Levy in Mills 188.76
Difference between FY15 & FY16 in Mills +21.40
Difference in Dollars (decreased mill value, new
construction, etc.)
+$1,259,000
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 and valuation effect each of these small
districts.
This year saw our Tax Increment Finance District certified values yield some unexpected results;
we saw more growth than expected given what DOR had been reporting regarding the valuation
of commercial properties. In fact, the TIF’s had a positive total increase in taxable value;
compared with the City’s negative taxable value growth.
Taxable Values FY16
City - Gross Dollars of Taxable Value $90,787,797
Less: Downtown TIF Taxable Value 2,898,551
Less: Northeast TIF Taxable Value 214,470
Less: North 7th TIF Taxable Value 1,055,385
Less: Mandeville Farm TIF Taxable Value 55,211
Less: South Bozeman Tech TIF Taxable
Value
-
Less: Total of TIF's Taxable Value 4,223,617
City - Net Dollars of Taxable Value $86,564,180
Change in Taxable Value from Previous Year FY16
City - Gross % -1.4%
Downtown TIF 6.6%
Northeast TIF 12.5%
North 7th TIF -13.9%
Mandeville Farm TIF 5.4%
South Bozeman Tech TIF -
City - Net % -1.5%
FISCAL EFFECTS: Adopting a mill levy of 210.16 mills is estimated to generate
$17,849,610 in property tax revenue for FY16. The revenue will be deposited to the funds
described on the attached “Mill Levies & Mill Values” sheet. The additional dollars that will go
to the General Fund can be appropriated in the future with a Budget Amendment, or can remain
as a part of the General Fund’s cash reserve.
Due to the legislative changes and reappraisal cycle, the taxable value of the median residential
home in Bozeman has decreased. This decreased taxable value is applied to the new mill levy
amount to determine the property tax for the median home. A typical resident (median home)
will pay an annual property tax of $725 to the City for Tax Year 2016. This is a $45 increase for
the tax year. This is increase is significantly lower than we originally estimated (an increase
of $80/year) when adopting the budget; and, is the direct result of the higher-than-expected
certified taxable value.
The effect of this levy on the typical residential property owner is an approximate 6.6% increase
in property taxes over last year. (Annual $680 property taxes in FY15.)
ALTERNATIVES: As suggested by the City Commission.
Attachment: Commission Resolution No. 4634
FY16 Mill Levies and Mill Values Bozeman Taxable Values History Department of Revenue Certified Value
Report compiled on August 24, 2015
Page 1 of 4
COMMISSION RESOLUTION NO. 4634
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 2015-2016 (FY16).
WHEREAS, in accordance with 15-10-203 MCA, after due and proper legal notice, at a
regular session of the City Commission on August 31, 2015, 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 2015 Certified
Taxable Valuation received on August 5, 2015; 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 155.78 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.
Resolution No. 4634, Establishing and Affixing the Number of Mills
Page 2 of 4
Section 2 That the City Commission of the City of Bozeman, Montana does hereby affix a 3.00
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 27.11 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 1.62
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 3.16 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 12.49 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.
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
Resolution No. 4634, Establishing and Affixing the Number of Mills
Page 3 of 4
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 31st day of August, 2015.
__________________________________
JEFFREY KRAUSS Mayor
ATTEST:
_____________________________________
STACY ULMEN, CMC City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
Resolution No. 4634, Establishing and Affixing the Number of Mills
Page 4 of 4
CITY OF BOZEMAN
Mill Levy Fiscal Year 2015-2016 (FY16)
Levy Purpose Number of Mills
All Purpose Levy 155.78 8Workforce/Community Housing 3.00
Permissive Medical Insurance 27.11
Planning 2.00
Senior Transportation 1.00
Trails, Open Space, & Parks GO Bonds 12.49 Library GO Bonds 3.16
Stormwater - Story Mill Landfill Project
Fire Capital & Equipment
1.62
4.00
TOTAL LEVY 210.16 mills
MILL LEVIES AND MILL VALUES
FISCAL YEAR FY11 FY12 FY13 FY14 FY15 FY16
MILL VALUE (net of TIFD's) 80,399$ 82,062$ 83,226$ 85,637$ 87,894$ 86,564$
*Corrected 9/2011 Issued 9/2011
PERCENTAGE CHANGE 2.7% 2.1% 1.4% 2.9% 2.6% -1.5%
GENERAL FUND:
All-Purpose 110.16 127.16 127.66 134.76 144.77 155.78
SPECIAL REVENUE:
City Planning 2.00 2.00 2.00 2.00 2.00 2.00
Local Government Study Commission 0.00 0.00
Police Retirement* 4.45 0.00 0.00 0.00 0.00 0.00
Firefighters' Retirement* 2.97 0.00 0.00 0.00 0.00 0.00
Public Employees' Retirement* 4.86 0.00 0.00 0.00 0.00 0.00
Comprehensive Insurance* 4.73 0.00 0.00 0.00 0.00 0.00
Health/Med Insurance 24.29 22.53 23.22 22.57 23.18 27.11
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 1.57 1.62
Senior Transportation 1.00 1.00 1.00 1.00 1.00 1.00
Workforce Housing 0.50 0.50 0.50 0.50 1.00 3.00
TOTAL SPECIAL REVENUE 48.80 30.03 30.72 30.07 32.75 38.72
DEBT SERVICE:
Park & Trail G.O.Bonds 0.00 8.13 12.49
Library G.O. Bonds 3.94 3.84 3.30 3.06 3.11 3.16
Transportation G.O. Bonds 5.85 5.72 5.07 5.19 0.00 0.00
TOTAL DEBT SERVICE 9.79 9.56 8.37 8.25 11.24 15.65
TOTAL ALL LEVIES 168.75 166.75 166.75 173.08 188.76 210.16
Percentage Change in Mills -0.6% -1.2% 0.0% 3.8% 9.4% 12.4%
Property Taxes Levied $13,567,611 $13,683,839 $13,878,293 $14,821,724 $16,590,871 $18,191,892
Percentage Change in Dollars 4.9% 0.9% 1.4% 6.8% 11.9% 9.7%
* These funds are being combined into the All Purpose Levy. They are all subject to MCA 15-10-420.
Tax Authority Authorized but Not Levied
General Fund Reduction 462,720$ 694,976$ 1,263,330$ 1,271,667$ 363,096$
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$ 779,076$
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$ 1,142,172$
Number of Mills 13.72 20.32 29.58 31.13 23.85 13.19
FINAL - AFTER CERTIFICATION
MILL LEVIES & MILL VALUES
City of BozemanTaxable Values HistoryTax Yr 2015 Tax Yr 2014 Tax Yr 2013 Tax Yr 2012 Tax Yr 2011 Tax Yr 2010 Tax Yr 2009 Tax Yr 2008 Tax Yr 2007FY16FY15 FY14FY13 FY12FY11 FY10FY09FY08City - Gross Dollars of Taxable Value 90,787,797 $ 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 2,898,551 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 214,470 190,579 172,608 150,217 133,197 135,162 104,987 71,287 48,790 Less: North 7th TIF Taxable Value 1,055,385 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 55,211 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 4,223,617 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 $ 86,564,180 $ 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: $ 86,564 $ 87,895 $ 85,637 $ 83,226 $ 82,062 $ 80,399 $ 78,290 $ 74,178 $ 68,981 Change in Taxable Value from Previous Year Tax Yr 2015 Tax Yr 2014 Tax Yr 2013 Tax Yr 2012 Tax Yr 2011 Tax Yr 2010 Tax Yr 2009 Tax Yr 2008 Tax Yr 2007 FY16FY15 FY14FY13 FY12FY11 FY10FY09FY08City - Gross %-1.4% 2.7% 3.1% 1.9% 2.4% 3.0% 7.1% 7.8% - Downtown TIF6.6% 5.1% 8.0% 6.4% 9.2% 5.8% 74.5% 19.8% - Northeast TIF 12.5% 10.4% 14.9% 12.8% -1.5% 28.7% 47.3% 46.1% - North 7th TIF-13.9% 2.7% 10.1% 29.1% 26.5% 47.4% 382.9% 68.0% - Mandeville Farm TIF5.4% -13.7% -21.6% 33.1% 15.0% -12.4% - - - South Bozeman Tech TIF--City - Net % -1.5% 2.6% 2.9% 1.4% 2.1% 2.7% 5.5% 7.5% 9.1%TIF's combined growth as a % of Total Growth-2.8% 7.1% 11.2% 26.8% 18.3% 14.2% 23.7% 4.5% $86,564 $87,895 $85,637 $83,226 $82,062 $80,399 $78,290 $74,178 $68,981 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000 $85,000 $90,000FY16FY15FY14FY13FY12FY11FY10FY09FY08Taxes Generated from 1 Mill City-Wide
M-t-).)h^ tfei:^it"<;nl ol2015 Certified Taxable Valuation Information(15-10-202, MCA)Gallatin CountyCITY OF BOZEMAN1. 2015 Total Market Value*...................................................................................................... $2. 2015 Total Taxable Value.3. 2015 Taxable Value of Newly Taxable Property.4. 2015 Taxable Value less Incremental Taxable Value**.5. 2015 Taxable Value of Net and Gross Proceeds***(Class 1 and Class 2).6. TIF DistrictsTax Increment Current Taxable Base TaxableDistrict Name Value ValueBOZEMAN DOWNTOWN 4,227,246 1,328,695NORTHEAST URBAN RENEW; 637,524 423,054NORTH 7TH CORRIDOR 3,942,382 2,886,997MANDEVILLE FARM INDUSTF 67,270 12,059SOUTH BOZEMAN TECHNOU 283 417MONTANAForm AB-72TRev.3-125,698,588,679_$_A_A._$_90,787,7975,030,90686,564,180IncrementalValue2,898,551214,4701,055,38555,211Total Incremental Value $4,223,617PreparerJanice McGuireDate 8/3/2015*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 financingdistricts.***The taxable value of class 1 and class 2 is included in the taxable value totals.For Information Purposes Only2015 taxable value of centrally assessed property having a market value of $1 million or more, which hastransferred to a different ownership in compliance with 15-10-202(2), MCA.I. Value Included in "newly taxable" propertyII. Total value exclusive of "newly taxable" property373,1533,839,862