HomeMy WebLinkAboutResolution No. 2014-362
Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2014-36
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, FIXING THE
RATE OF LEVY OF PROPERTY TAX FOR THE FISCAL YEAR COMMENCING JULY 1,
2014 AND ENDING JUNE 30, 2015.
WHEREAS, the Code of the City of Kenai requires that the rate of levy of property tax
be set annually not later than the tenth day of June; and
WHEREAS, the Council has adopted the "City of Kenai 2015 Annual Budget," which
estimates property tax revenue based upon a tax rate of 4.35 mills.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the rate of levy of property tax for the fiscal year commencing July 1,
2014 and ending June 30, 2015 be fixed at 4.35 mills.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May,
2014.
ATTE
Sandr d g , City Otirk
Approved by Finance: .
PORTER,PAT MAYOR
"Villaye with a Past, G' with a Future"
FINANCE DEPA MENT
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907-283-7535 / FAX: 907-283-3014
To: Rick Koch, City Manager
From: Terry Eubank, Finance Director
Date: May 13, 2014
Re: Establishing the FY2015 (Tax Year 2014) City of Kenai Mill Rate Levy.
Resolution 2014-36 will establish the rate of levy of property tax for FY2015, tax year 2014.
The proposed rate of levy is 4.35 and will result in $435 in taxes being paid for each $100,000 of
assessed property value. The proposed rate is an increase of 0.50 mills from FY14 rate of 3.85
mills and will generate the necessary property taxes to support the adopted FY 15 budget.
The City's mill rate was last changed in FY2011 when it was lowered from 4.00 mills to 3.85
mills. The FY2010 mill rate was set at 4.00 mills after a reduction of the FY09 levy of 4.50
mills. Since the FY2011 reduction the City's General Fund budgeted expenditures have
increased $3,260,541 while sales and property tax revenues have increased $1,785,035 (this
includes the proposed FY2015 increased mill rate). Since the last change in mill rate sales tax
revenue has increased 6.07% while CPI has increased 10.57%. Significant increases to the
City's General Fund budget since FY2011 include:
1. An increase of 3.80 FTE's (full time equivalent positions) including the addition of three
new Firefighters, a Parks, Recreation and Beautification Operator, a Parks, Recreation
and Beautification Laborer, and an IT Manager
2. A $217,179 increase in employee health care costs.
3. A $1,381,723 increase in Public Employee Retirement System (PERS) expenditures
including and increase of $1,128,734 in State of Alaska PERS on -behalf funding.
4. Employee cost of living allowance (COLA) pay increases of 1.0%, 3.6%, 2.0%, and 3.5%
for FY2012, FY2013, FY2014, and FY2015 respectively.
5. An $115,044 increase in General Fund Utility expenditures.
6. An increase of $231,670 in payments to the City's Equipment Replacement Fund due to
new equipment purchases and to assure adequate funding of the fund in the future.
The proposed 0.50 mill rate increase will bring the City's mill rate to 4.35 mills which is 0.15
mills below the FY2009 level of 4.50 mills. Each mill or property tax levy generates
approximately $832,000 of revenue for the City's General Fund. The following is a projection
of what an Kenai citizen with a $250,000 home will pay in FY2015.
The FY2015 Budget will be adopted by Ordinance on June e and Council may want to
postpone adoption of this Resolution until that night if additional budget changes are anticipated.
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