This resolution sets the FY18 City property tax mills for the Public Safety Levy (PS II) at 43.32 mills, General Obligation Debt Service Parks at .61 mills, General Obligation Debt Service Streets at 1.81 mills, General Obligation Debt Service Library at 4.80 mills and General Obligation Debt Service Series A Baseball Stadium at 3.77 mills. These levies are based on the certified taxable valuation from the Montana Department of Revenue.  The table below shows a comparison to last year's mills.  The mills set for the General Obligation Bond Debt Service and Public Safety II are less than the previous year because of new taxable property as well as value growth of existing properties.  The total mills levied by the City of Billings for FY18 are 159.00 mills compared to 160.40 mills for FY17.

The GO debt mills generate enough revenue to pay the principal and interest expense on the debt.   Lowering the number of mills would result in not paying the debt service payment or borrowing money to make the debt service payment.
 

	FY17	FY18
PS II	45.22	43.32
GO Parks	0.71	0.61
GO Streets	1.66	1.81
GO Library	4.93	4.80
GO Ballpark	3.88	3.77
Total	56.40	54.31

The Council must hold a public hearing and then may:

• Approve the resolution; or
• Not approve the resolution, which would result in not making the debt service payments or using General Fund reserves to make debt service payments for FY18.

These mills are set in order to generate the necessary revenues to make the debt service payments and fund Public Safety II.  The total FY18 mills are 54.31 compared to the FY17 mills of 56.40.

Staff recommends that the City Council hold the public hearing and approve the resolution setting the mill levy rates for GO Bonds and Public Safety II levy for FY18.