HomeMy WebLinkAbout2017-07-27 17-256 RESOLVE 700 74:iN\ CITY COUNCIL ACTION 07/27/2017 17-256
Council Meeting Date: 07/27/2017
{,off .Wc Item No: 17-256
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0 Responsible Dept: City Manager
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Action Requested: Resolve Map/Lot: N/A
Title, Resolve
Amending the Fiscal Year 2018 Budget for Impacts of State of Maine Budget and Updated Valuation
Summary
This resolve will amend the FY2018 budget to reflect the impact of the recently adopted State of Maine budget as well as
updated assessed valuation and minor line item adjustments. The following is a summary of the impacts:
1) Reduction in the State reimbursement rate for Homestead Exemption. Statute included a provision to reimburse
municipalities 62.5%of the"tax revenue" lost to the State Homestead Exemption Program. The final adopted State
budget reduced the reimbursement rate to 50%. The impact of this change is a reduction in non-tax revenues to the
City of$279,289, which is an increase to the municipal tax levy.
2)The adopted State Budget increased General Purpose Aid (GPA)to Education funding statewide. As the amount of
funding was unknown at the time the School Budget was approved, the Council approved Council Resolve 17-169,which
directed any additional GPA received to reduce the municipal tax increase to support the school department to zero. If
funds beyond that amount were received up to$500,000 would be placed in a capital reserve fund (which in turn
reduces taxpayer support in future years)and any additional funds would further reduce the tax impact requested
adopted. The Bangor School Department's GPA funding from the State increased $1,290,632. Of that amount$670,632
is included in this amendment to reduce the municipal tax rate, $500,000 will be deposited in the School Capital Reserve
account and $120,000 is MaineCare seed funding, which while allocated to the Bangor School Department is paid to third
party providers to support direct student services of Bangor children.
3) Since the last update on assessed value, an additional $2 million in value has been reported.
4)The attached reflects the savings in diesel fuel for Public Works and the Community Connector based on the
contracted price. Lastly, many of the City's non-tax revenues(BETE revenue, Homestead Revenue) and expenses(tax
increment financing)are based on the City's tax rate. Therefore additional adjustments were necessary based upon the
revised estimated tax rate.
Committee Action
Committee: Meeting Date:
Action: Recommend for passage For: Against:
Staff Comments &Approvals
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City Manager City Solicitor Finance Director
Introduced for: Choose...
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--6014-4---6014-4-c,fCITY OF BANGOR RESOLVE 07/27/2017 17-256 Date: 07/27/2017
o � - 4 Item No: 17-256
`4.44 O,Et'* Assigned to Councilor: Sprague
Amending the Fiscal Year 2018 Budget for Impacts of State of Maine Budget and Updated Valuation
WHEREAS, The State of Maine delayed approval of their 2018-2019 budget; and
WHEREAS, the City of Bangor approved its budget by June 30, 2017; and
WHEREAS, Due to the delay in approving the State Budget, the City was unable to finalize it's budget.
Be it Resolved by the City Council of the City of Bangor that,
The Fiscal Year 2018 is hereby amended for the impact of the State Budget including Homestead and General
Purpose Aid revenues, the updated assessed valuation and minor line item changes related to fuel savings
and the change in the estimated tax rate.
IN CITY COUNCIL
JULY 27, 2017
CR 17-256
MOTION MADE AND SECONDED TO WAIVE SECOND_ READING
PASSED
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
17-256
Estimated Tax Rate
July 27, 2017
Estimated General Fund
Municipal Property Tax Rate Calculation
2017 and 2018
FY 17 FY 18 $Change %Change
1 City Expenses
Operating Expenses 43,511,857 44,429,761 917,903 2.1%
Capital Expenses 957,650 1,011,487 53,837 5.6%
Debt Service/TIF 3,957,372 4,135,907 178,535 4.5%
Pension Obligation Debt Service 2,267,066 2,371,840 104,774 4.6%
Voter Approved Debt Service 225,375 222,375 (3,000) -1.3%
Total City Expenses 50,919,320 52,171,370 1,252,049 2.5%
School Expenses
Operating Expenses 42,915,542 43,800,973 885,431 2.1%
Debt Service 1,546,075 1,606,308 60,233 3.9%
Total School Expenses 44,461,617 45,407,281 945,664 2.1%
Total Expenses 95,380,937 97,578,651 2,197,713 2.3%
Less: Non-Tax Revenues
City 24,401,755 25,486,060 1,084,305 4.4%
School 19,567,117 20,567,969 1,000,852 5.1%
Total Non-Tax Revenues 43,968,872 46,054,029 2,085,157 4.7%
Proposed Tax Levy
City 26,517,565 26,685,309 167,744 0.6%
School 24,894,500 24,839,312 (55,188) -0.2%
County 3,266,411 3,381,124 114,713 3.5%
Overlay 310,000 310,000 - 0.0%
Total Tax Levy 54,988,476 55,215,745 227,269 0.4%
Total Assessed Value 2,745,017,400 2,795,747,700 50,730,300 1.8%
Less Downtown DD 121,425,200 120,835,800 (589,400) -0.5%
Less Homestead 74,536,300 98,457,700 23,921,400 32.1%
Less BETE Exempt 105,332,700 125,198,800 19,866,100 18.9%
Net Available Taxable Assessed Value 2,443,723,200 2,451,255,400 7,532,200 0.3%
Proposed Tax Rate
1 City( Including Overlay) 10.97 11.01 0.04 0.4%
School 10.19 10.13 (0.06) -0.6%
County 1.34 1.38 0.04 3.2%
Total 22.50 22.52 0.02 0.1%