City to set annual tax levy at Aug. 17 meeting
City Commissioners will set the annual tax levy during their Aug. 17 meeting.
The commission is required to set the levy under state law by setting mills to generate property tax revenues that will balance the general fund and other levy supported funds.
The city received its taxable valuation from the Montana Department of Revenue on Aug. 2 and can now set the annual levy, which for this budget year will be 201.35 mills, totalling $20,864,249.
That figure includes the mills for the general levy, which is previously and newly taxable property; the permissive medical levy and the soccer park bond levy.
Newly taxable will generate an additional $366,758 in revenue this budget year, according to the city. Staff had estimated about $400,000 in newly taxable property for this year.
There is no increase for an inflationary factor or permissive medical levy this year.
The city’s total taxable value is $107,137,157, according to the city finance department.
The taxable value per mill increased from $98,197 in the fiscal year that ended June 30 to $103,622 for the current budget year.
“There is no specific project or development identified that attributes to this increase. Changes to the tax base (e.g. increases from development) are not distinguishable,” according to city staff.
The increase in the mill value means an additional $48,825 in revenue for the Great Falls Public Library, which gets nine mills under its agreement with the city.
Included in the total mill levy of 201.35 are:
- 1.58 mills for the soccer park debt service payments, which will generate $163,722 to cover debt payments and expenses in the Soccer Park Fund. The soccer park bonds were issued June 14, 2004, for $2,500,000 for 20 years and refinanced in April 2014. The outstanding balance of the soccer bonds as of June 30 was $470,000. The bond maturity date is July 1, 2024.
- 32.44 mills for the permissive medical levy, which will generate $3,361,491. This is a minimal decrease in number of mills from last year, but an equal amount of tax revenue generated. Under state law, the city can take 33.13 mills for this levy, but is not using the max this year.
The total mill levy allowable under state law is 205.41. The actual mill levy total for this fiscal year is 201.35, according to the city finance department.
State law requires that the city adopt a budget which includes setting the annual mill levy amounts on or before the first Thursday after the first Tuesday in September or 30 days after receiving taxable valuation from the Montana Department of Revenue, whichever is later.