This resolution establishes the city property tax mill levy rates for the Public Safety Fund (51.92 mills), General Obligation Debt Service Parks (.92 mills), General Obligation Debt Service Streets (2.27 mills), and General Obligation Debt Service Baseball Stadium (5.33 mills) for the 2009 tax year. These levies are based on predetermined dollar amounts and the mills could not be calculated until the City received a copy of the certified taxable valuation from the Montana Department of Revenue.

The total mill levy rate for tax year 2009 will be 169.44, which is 5.68 mills more than tax year 2008. This increase in the total mill levy rate is due to the fifth and final year increase in the Public Safety levy.

The Council must hold a public hearing and then may:

• Approve the resolution; or
• Not approve the resolution,

Applied to a $200,000 home, the 169.44 mills would result in a City property tax of about $440 for 2009.  That includes approximately $135 in property tax dollars on the 51.92 Public Safety mills. The Public Safety levy original projection was 60 mills but, because the 2006 levy was for a specific amount of money and because of growth,  the amount that needs to be levied is only 51.92 mills. This equates to an approximate property tax savings of 8.08 mills, or $21 on a $200,000 home.

The 5.68 mill increase is approximately a $17 levy increase in City property taxes on that home over 2008.

Staff recommends that the City Council hold the public hearing and approve the resolution setting the mill levy rates for tax year 2009.